nescafe vs bru

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  • nescafe vs bru

    1. 1. 1
    2. 2. PLANT SETUP IN INDIA : PLANT SETUP IN INDIA : 1961 moga (punjab) 1968TYPE : instant coffee TYPE : instant coffeeOWNER LEVEL : nestle OWNER LEVEL : HULCOUNTRY : switzerland COUNTRY : indiaINTRODUCED : 1938 INTRODUCED : 1961MARKETS : worldwide MARKETS : worldwide 2
    3. 3. TAGLINE/ SLOGAN : One Nescafe TAGLINE/ SLOGAN : Bru se hotimany coffees ;Good Food Good hain khushiyaan shuruLife USP : India’s largest coffeeUSP : 100% pure instant coffee BrandCATEGORY : Beverages CATEGORY : coffeeSECTOR : Food Products SECTOR : Food ProductsLOGO : LOGO : 3
    4. 4. SEGMENT : People looking SEGMENT : People lookingto make coffee instantly to make coffee instantlyTARGET GROUP : All people TARGET GROUP : All peoplein the upper and middle class in the upper and middle classPOSITIONING : 100% pure POSITIONING : Coffee thatcoffee made from finest coffee makes special moments of beans genuine warmth and happiness 4
    5. 5. STRENGTH : STRENGTH :1. Strong Nestle brand name 1. Strong brand name2.Excellent advertising and 2.Excellent advertising andvisibility visibility3.Good product distribution and 3.Good product distribution andavailability availability4.Lots of flavors and varieties 4.Lots of flavors and varietiesavailable available 5
    6. 6. WEAKNESS : WEAKNESS :1.Health conscious people avoid 1.Coffee as a category stillcoffee as it Contains caffeine nascent in many countries like India.OPPORTUNITY : OPPORTUNITY :1. Tie-ups with corporates 1. Tie-ups with corporates2.Cheaper packets for rural areas 2.Cheaper packets for rural areasTHREATS: 1.Health conscious THREATS: 1.Health consciouspeople avoiding coffee people avoiding coffee 6
    7. 7. •Bru is a Leader of filter coffee •Despite of capturing 2.6%whose market share is 3 times market share of Nescafe inover the instant coffee market . R&G coffee sector bru is still the no 2.•Lower prices offered of theproduct than Nescafe . •Coffee outlets and vending machines are missing from the•Strong distribution channel market unlike Nescafe.being a product of HUL S W •Less number or variety of products SWOT •The market of roasted O T and ground coffee is for Rs.511 crore so bru can still •In this competitive era bru do a lot with this market . reduced its prices to an extend which might reduce •Now HLL is HUL hence its profits as well. bru can expand globally 7
    8. 8. • Great leap forward in • Agencies, spent all their time Media,Crm,Pop. fighting each other. • Domination in instant • Adopted a pricing strategy coffee market by 55.3% higher than competitors share • Nescafe sunrise has no distinct • Sustained identity improvement in customer service levels. S W SWOT O T• India’s growing marketnon-traditional coffeedistribution channels by • Amalgamated BeanRs.1900 crore. Coffee Trading Company• Non-trading retailing coming up with R&Gcoffee channel by the coffee chainssale of Rs.600 crore. 8
    9. 9. Instant Coffee 39CSD 38Bottle water 28UHT/Pasteurized drinking yogurt 203 in 1 coffee 17Beer 15UHT/Pasteurized / Sterilized Milk 15Alcoholic drink except beer 14Milo Ovaltine 12Iced coffee hawker 8RTD Coffee 8UHT/Bottle soya milk 7Energy drink 7Milo/ Ovaltine 6UHT/Bottle/Can branded fruit juice 4 9
    10. 10. Milo/ Ovaltine Energy drink UHT/Bottle soya milk RTD Coffee Iced coffee hawker Milo Ovaltine Alcoholic drink except beer Series 2 FEMALEUHT/Pasteurized / Sterilized Milk Series 1 MALE Beer 3 in 1 coffeeUHT/Pasteurized drinking yogurt Bottle water CSD Instant Coffee 0 10 20 30 40 50 10
    11. 11. Segment bases Categories(demo)Geographical SegmentationRegion AhmedabadDensity UrbanClimate WarmDemographic SegmentAge 18+Gender Male, FemaleDisposable Income Rs. 1000 and moreOccupation Students, ProfessionalEducation Graduation, Post GraduationMarital Status Single, Married 11
    12. 12. Segment bases CategoriesSocio cultural SegmentationCulture IndianRace AsianNationality IndianSocial Class Upper and Middle ClassBehavior SegmentationMedia Usage TV, InternetLoyalty Status Intense LoyalUsage Rate LowUsage Situation Home, outing 12
    13. 13. AGE POPULATION0-15 24% of population : 15,462,944 People16-30 21.2% of population : 13,658,934 People31-45 24.2% of population : 15,591,803 People45-60 24.8% of population : 15,978,376 People60 UP 5.8% of population : 3,736,878 People 13
    14. 14. Youth : 16-30 (Spend 70% of their time out of home) KEY INSIGHT • 19 yrs old is the age of having the first cup of coffee • Do not appreciate the taste and Image of HOME coffee • New Coffee Shops are changing the way they lookSCHOOL/OFFICE at coffee. Coffee is becoming more of a social drink •Have a nice place •for lunch Key Need states are •Shopping at MallENTERTAINMENT •Playing sport Quick/energy boost/kick start, •Going to cinema •Hang out with friends Thirst Quenching Snacking (Iced coffee) Key Psychographics Want to Experience life & Want to Grow themeselves Work hard, Play hard 14
    15. 15. Family builder : 31-45 KEY INSIGHT • The age of adapting hot coffee • Coffee is becoming a part of their everyday life • Key Need states are Kick start,HOME Refreshment during the day Mental renewal • Key PsychographicsOFFICE • Key activities : Career and success are the key focus Now they have goals that they want to • Business Dinner • Going to fitness / sports pursue • Going to theaters • Coffee ignites their spirit, gets them • Socializing with friend ; at ready, bring lunch or drinking In eveningKey activity before go home their confidence, lets them focus, • Have a nice place for meal settle their with family thoughts, initiates social bonding • Shopping complex with family 15
    16. 16. No time to dream: 46-60 KEY INSIGHT • Heavy users : More coffee appreciation • Coffee is a part of their everyday lifeHOME • They spend relatively more time at home with familyOFFICE Key Need states are Mental renewal • Business Dinner Relaxing and Rewarding oneself • Deliver / pickup sons from schools Key Psychographics • Going to public park They’ve accomplished certain things and now Key • Socializing with friend ; mostly at looking lunch for life’s small pleasures.activity • Have a nice place for meal with family Appreciate good things in life They have much more focus on the family • More traveling; personal business 16
    17. 17. As breakfast 55 During break 3With breakfast at home 15 As breakfast 2Having snacks at home 8 Before breakfast 2Before breakfast 6 Hanging with friends 2Watching TV/ VDO /listen 4music/ radio / readingAfter meal 4 17
    18. 18. Non-Alcoholic Hot Beverage Market Segmentation 1% 40% Espresso 46% Instant Coffee Other 5% Rost and Ground 8% Tea 18
    19. 19. Segment bases Categories(demo)Geographical SegmentationRegionDensity Urban & ruralClimate MixDemographic SegmentAge 18+Gender Male, FemaleDisposable Income Rs. 1000 and moreOccupation Students, ProfessionalEducation Graduation, Post GraduationMarital Status Single, Married 19
    20. 20. Segment bases CategoriesSocio cultural SegmentationCulture IndianRace AsianNationality IndianSocial Class Upper and Middle ClassBehavior SegmentationMedia Usage TV, InternetLoyalty Status Intense LoyalUsage Rate LowUsage Situation Home, outing 20
    21. 21. Segment bases Categories(demo)Geographical SegmentationRegionDensity Urban & ruralClimate MixDemographic SegmentAge 18+Gender Male, FemaleDisposable Income Rs. 1000 and moreOccupation Students, ProfessionalEducation Graduation, Post GraduationMarital Status Single, Married 21
    22. 22. Segment bases CategoriesSocio cultural SegmentationCulture IndianRace AsianNationality IndianSocial Class Upper and Middle ClassBehavior SegmentationMedia Usage TV, InternetLoyalty Status Intense LoyalUsage Rate LowUsage Situation Home, outing 22
    23. 23. TYPES OF AFFECTIVE RESPONSES Relax Alert 33% 34% Love 33% 23
    24. 24. Cognitive Processes In Consumer Decision Making 24
    25. 25. ENVIRONMENT Advetisement (33.33%), Salesman (33.34%), Family(33.34%), INTRPRETATION PROCESS COGNITIVE PROCESSATTENTION and COMPREHENSIONSales promotion(33.33%), Jingle(66.67%) MEMORYNEW KNOWLEDGE, MEANINGS AND BELIEF New Ingredient (33.33%), Bitter Taste (33.33%), Nice Aroma (33.34%) STORED KNOWLEDGE MEANING AND BELIEF INTEGRATION PROCESS ATTITUDES AND INTENTIONS DECISION MAKING Favourable(66.67%) , Experiment (33.33%) Purchase- 1007% 25
    26. 26. RELAX CHEERFUL CELEBRATION DELHI TRIP GET TOGETHER COLD WINTER DAYSUCCESSFUL TASK ACTIVATES BRAIN 26
    27. 27. Consumer Characteristic•Young, SelfConfident, Passionate, Socialising, (100%) Involvement•Achiever (33.33%), Strivers(66.67%) •Affective Intrinsic Self- responses & Product Characteristic relevance activated•Strong Taste knowledge•Price about•Strong Aroma attributes, co•Variants nsequences•Packaging and values Situational Self-relevance Situational context•Free samples•Sales promotion Interpretation•Celebrations & integration•Less time to decide process 27
    28. 28. S. No. Statements Place of Usage Communities Source The places where Businessmen, People enjoy coffee the coffee is served coffeetea.about.co 1 Youngsters who like as a cocktail drink. alongwith cocktail m to hang out at bars drink Companies have started pairing premium coffee with Locations providing Anyone who enjoys ineedcoffee.com, 2 individual the customized a customized coffee gourmetcoffee.com personality or coffee drink individual needs depending on mood 28
    29. 29. Any beverage outlet www.positivelycoffe Messages Athletes, fitness3 that is positioned to e.org, pertaining to health conscious people sell healthy drinks www.nescafe.com Caffeine supports Any place selling www.positivelycoffe Athletes, fitness4 physical healthy beverage e.org, consicous people performance products www.nescafe.com Any place or Coffee may reduce website where www.positivelycoffe Women suffering5 colon cancer risk people with this e.org, from colon cancer among women disease can www.nescafe.com congregate 29
    30. 30. Any place or website Caffeine and exercise may www.positivelycoffe where people with this population suffering6 help against sun-induced e.org, disease can from skin cancer skin cancer www.nescafe.com congregate Any place or website www.positivelycoffe Coffee associated with where people with this population suffering7 e.org, lower liver cancer risk disease can from liver cancer www.nescafe.com congregate Any place or website www.positivelycoffe Coffee may lessen after- where people with this people visiting8 e.org, exercise muscle soreness disease can ortheopaedist www.nescafe.com congregate 30
    31. 31. Any place or website Coffee drinkers are where people with this Population suffering www.positivelycoffee.or9 less likely to develop disease can from parkinson disease g, www.nescafe.com Parkinson’s disease congregate Any place or website Coffee consumption where people with this Persons treated for www.positivelycoffee.or10 lowers diabetes risk disease can diabetes g, www.nescafe.com congregate Coffee reduces www.positivelycoffee.or11 cognitive decline in age group bove 40 g, www.nescafe.com elderly men Coffee can lower the www.positivelycoffee.or12 risk of serious illnesses g, www.nescafe.com 31
    32. 32. Coffee can ease www.positivelycoffee.or13 headaches, prevent all classes g, www.nescafe.com diseases Church Goers drink coffee to keep Café shops located in14 church goers ineedcoffee.com themselves awake or around church during the sermons. Creation of artistic Various museums,art15 centers attracts coffee Tourists, Adults auburncoffee.com galleries etc. drinkers. People drink coffee at Any business16 the various business conference where lots Business persons conferences. of people meet together 32
    33. 33. Coffee lovers, business Coffee is consumed at The places where the people that frequent these17 International Coffee Festivals. international festival occurs festivals classes.bus.oregonstate.edu/ Places located on high street Summer- High Street locations are Business people, Shoppers,18 locations where beverages 05/ba469/Elton/Sector%20An places to which people’s visit. etc. can be sold alysis/Starbucks_compiled.pp t classes.bus.oregonstate.edu/ Summer- Amphitheaters,community19 During Public performances Art lovers/Theatre lovers 05/ba469/Elton/Sector%20An halls, opera houses etc. alysis/Starbucks_compiled.pp t classes.bus.oregonstate.edu/ Summer- Charitable organisations and Charitable organizations,20 Charitable places 05/ba469/Elton/Sector%20An their events Charitable events etc. alysis/Starbucks_compiled.pp t classes.bus.oregonstate.edu/ Places on rural and off Summer- Rural and off highway21 highway location selling youngsters,tourists 05/ba469/Elton/Sector%20An locations beverages alysis/Starbucks_compiled.pp t At places that have kids Any place with a secure kids Married Couple…Persons in22 kimboal.ba.ttu.edu playing area. playing area Parenthood23 At opera theaters. Opera theatres Opera goers 33
    34. 34. EFFECT OF INVOLVEMENT AND PRODUCTKNOWLEDGE ON CONSUMERS’ PROBLEMSOLVING PROCESSES Basic Motivation • Choose best product: optimize satisfaction End Goal • Obtain desired value satisfaction • Complex Hierarchy, Clear, well-defined sub goals, Goal Hierarchy • Certainty about goals Consideration Set • Several alternatives known and considered • Wide range of product knowledge is available for Choice Criteria use Decision Process • Limited (moderate) Problem Solving 34
    35. 35. ADOPTION/PURCHASE PROCESS Awareness Interest Evaluation Trial Adoption 35
    36. 36. Measure Consumer BehaviorConsumption stage Types of behavior Example of behaviors Sales Promotion Information contact WOM Pre purchase Advertisement Funds Cash in Hand Locate outlet Store contact Enter Outlet Purchase Product contact Obtain Product Transaction Take product at home Consumption & Consumption Disposition Post purchase Communication Tell others about product 36
    37. 37. 37
    38. 38. 38 Exhibit 3.6 CURRENT SCHEMA
    39. 39. 39
    40. 40. 40 DESIRED SCHEMA
    41. 41. Packaging bi= 9 ei= 3 Ingredient Variety Total= 27 bi= 6 bi= 7 ei= 2 ei= 3 Total= 12 Total= 21Strong taste Price bi= 8 BRU bi= 7 ei= 2 Total= 16 A0 = 90 ei= 2 Total= 14 41
    42. 42. 36. Packaging bi= 7t ei= 3 Ingredient Variety Total= 21 bi= 9 bi= 7bi ei= 2 ei= 2 Total= 27 Total= 14hi Strong taste Pricex bi= 9 NESCAFE bi= 7E ei= 3 A0 = 103 ei= 2 Total= 27 Total= 14 42
    43. 43. helps reinforce the message and the recognition of the brand the little stroke above the letter E suddenly The words “NESTLE” N’s stroke covers makes the word café combines with the sense all the rest of the be seen as one of fun and warmth of a letters to create separated word “CAFÉ” unity white on a contrast background letter style is strong and bold, thus color which can be slightly represents the strength of its quality, but altered to suit the packaging of yet also implies sophistication of its taste any product through the use of Serif font. 43
    44. 44. 1. Nescafe FMCG giants wants to be a “preferred client”.2. Strike a balance between tapping into local knowledge of markets and disseminating global practice.3. Communication efforts are directed effectively and with maximum return on investment.4. To work with the limited number of agencies so that they really know the business.5. Encourage its agencies and employees by making changes in remuneration.6. Nescafe has even in the past, resorted to low-key market penetration strategies. 44
    45. 45. • NESCAFÉ coffee mate 3 in 1- 50g, 100g, 200g• NESCAFÉ Blend 43 - 50g, 100g, 150g, 250g, 300g, 500g, 1kg• NESCAFÉ Espresso - 50g, 150g, 250g, 300g• NESCAFÉ Cafe Menu Frothy Coffee - Box of 10 sachets (Caramel & Vanilla, Mocha & Latte, Cappuccino, Hazelnut & Cinnamon)• NESCAFÉ Cafe Menu Iced Frappe - Box of 10 sachets (Latte, Mocha, Caramel)• Nescafe instant coffee classic Best Product: instant coffee Nescafe has a wide range of products (Espresso, Cappuccino, frappe etc.) Nescafe launched a new product -Nescafe 3in1 which is a blend of coffee, dairy creamer & sugar. 45
    46. 46. •Available: Nescafe coffee corners, Nestle consumption zone,vending machines - in offices, colleges , Departmental stores and placeswhere footfalls are higher.•Nescafe 3in1a milder version of coffee was firstly launched in Delhiand now being introduced to northern and western markets also. 46
    47. 47. Nescafe is playing a price game in coffee Weight: price: classic 300gms Rs.315 200gms Rs.230 50gms(mostly consumed) Rs.65 13gms Rs.10 sunrise 50 gm Rs.33.50 choco café 50gms Rs.19•Nescafe has been doing 360 degree promotional activities likeCrm, pop, vending machine network etc.The top companies markets spend 40% of their budget on TV 47
    48. 48. 48

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