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10 STEPMarketing Plan for Nescafe     Maneka B. Malibago       October 2011   manekamalibago.blogspot.com   1
Summary headline of your     PTM and market1.   Nescafe PTM are working individuals2.   Who needs stimulation for every ne...
Summary headline of the      marketing mix & strategy6.    Nescafe is a brand of quality instant      coffee7.    Priced h...
1. Catering the working group   20-30 years old, social class B and C,    single and married   Working individuals   Dr...
1. Workers pay for alertnessThrough the years NESCAFE target market:2005 ----- Spirit Seekers2006 ----- Life Seekers2007 -...
PTM needs to belong in a       group…                                        Self-Actualization                           ...
2. Workers have unique needs, wants, & demandsWorking individuals need to belong, to be loved, gain self-esteem, and achie...
3a. Nescafe has increasingcompetitors   Direct: San Mig, Jimm’s, Café Puro,    Kopiko, Great Taste, Kraft Maxwell   Indi...
3. NESCAFE ranks #1 with its   various packaging and high price                                                           ...
3. NESCAFE has the same                                                                                as of 2011  attribu...
4. NESCAFE is a brand of instantcoffee made by *NESTLE*Nestle ranks no. 8 in the Top 1000 Corporation in the Philippines.(...
4. The NESCAFÉ BrandIt gained Brand Loyalty thru:                                Media Mix (TVBrand Awareness             ...
4. Nescafe positions strongly in    the supply and distribution    leverage.Unlike its competing brands, NESCAFE is  avail...
4. Prospects that will lead to increase in coffee demandPROSPECTS longer working hours and busier lifestyles for  Filipin...
4. Nescafe may have to consider  opportunities.In the Philippines, annual coffee growth rate is at  8%.Opportunities:  Inf...
5a. Based on a coffee marketstudy, coffee market size is 20million   Total volume sales of coffee achieve 8%    growth in...
5a. Total volume sales of coffeeare expected to reach a 6%*CAGR over the forecasted period   *CAGR = compounded annual gro...
5a. Based on a coffee marketstudy, coffee market size is 20million.   Globally, NESCAFÉ coffee is consumed at a rate of  ...
5b. Based on Nestle Phils. Salesdate in 2010, 22% of its sales isfrom Nescafe.Nescafe sales data for 2010:   P 20 billion,...
5b. NESCAFE continues todominate the market      manekamalibago.blogspot.com
5b. There are only few players inthe market      manekamalibago.blogspot.com
5c. Consumer data indicatesa size of P 36.5 billionFilipinos consume 65,000 metric tons (MT) of     coffee annually.20 mil...
5. Concluded that coffeemarket is P 23 billionCompany Data = P 23 BillionCustomer Data = P 36.5 Billion       manekamaliba...
6a. NESCAFE PRODUCTS Think globally, Act locally       manekamalibago.blogspot.com
6a. NESCAFE VariantsClassic Coffee                    NESCAFE Flavored MixesNESCAFE Classic                     Choco Fudg...
6a. NESCAFE VariantsHealthy Coffee                                       Premium Coffee  NESCAFE Body Partner             ...
6a. NESCAFE own a superiordisplay of its products on shelf                   San Mig Coffee                               ...
6b. NESCAFE Coffee   coffees flavor is a delicate balance of characteristics, working    together to create a perfect cup...
6b. NESCAFE ProductsSome products have 3x more antioxidants than green tea.  So every cup is deliciously healthy!Sweetened...
6b. NESCAFE packages itsproduct in different sizes                                           Sachet   JarsDoy pack /      ...
7. Coffee prices varyaccording to product sizes                              NESCAFE                                      ...
7. Coffee prices varyaccording to product sizes                         Great Taste                        Nescafe price r...
7. Coffee prices varyaccording to product sizes     Brand          3 n 1 SACHET         Average Price per                 ...
7. NESCAFE is priced 25% higherto the least priced brand.     Brand          3 n 1 SACHET          Average Price per      ...
8a. NESCAFE uses TV ads,events, and songs     manekamalibago.blogspot.com
8a. NESCAFE invests heavily inpromotion compared to itscompetitorsBillboards, newspaper, magazine, TV commercials,   and i...
8a. NESCAFE commercialshave emotional appeal 2011                      Bakit ka nagtitimpla?        manekamalibago.blogspo...
8a. NESCAFE commercialshave emotional appealPara kanina ka bumabangon?Para sa anak. Para sa kaibigan. O sa di mo  kakilala...
8a. NESCAFE commercialshave emotional appealParokya ni Edgar – One moment One  Nescafe       manekamalibago.blogspot.com
8a. NESCAFE commercialshave emotional appealBamboo Sunshine– One good day coming  up!            Day of Adventure       ma...
8a. NESCAFE commercialshave emotional appealPalistuhan Challenge Francis M. vs Ramon  Bautista (2008) – Message Nescafe wi...
8b. Great Taste by UniversalRobina Side Lucero ---- Great Taste Coffee       manekamalibago.blogspot.com
8b. San Mig Coffee by San MiguelPureFoods      manekamalibago.blogspot.com
8b. Jimm’s    manekamalibago.blogspot.com
8b. Other forms ofNESCAFE promotionSamples      manekamalibago.blogspot.com
9. NESCAFE is distributednationwide using Nestledistribution network     Hypermarkets, supermarkets, sari-sari      store...
10. Nescafe is a niche leader     Nescafe’s main strategy is to dominate the niche      market of working individuals bet...
SUMMARYmanekamalibago.blogspot.com   48
Summary headline of your     PTM and market1.   Nescafe PTM are working individuals2.   Who needs stimulation for every ne...
Summary headline of the      marketing mix & strategy6.    Nescafe is a brand of quality instant      coffee7.    Priced h...
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10 step marketing_plan

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10 step marketing_plan

  1. 1. 10 STEPMarketing Plan for Nescafe Maneka B. Malibago October 2011 manekamalibago.blogspot.com 1
  2. 2. Summary headline of your PTM and market1. Nescafe PTM are working individuals2. Who needs stimulation for every new day3. Can choose San Mig Coffee & Jimm’s4. Provide quality coffee without compromising taste5. The market size is P 23 billion, Nescafe niche 20 billion manekamalibago.blogspot.com
  3. 3. Summary headline of the marketing mix & strategy6. Nescafe is a brand of quality instant coffee7. Priced higher than its competitors8. Uses prints, TV & radios, events and experiences9. Is distributed nationwide10. Uses niche approach to win manekamalibago.blogspot.com
  4. 4. 1. Catering the working group 20-30 years old, social class B and C, single and married Working individuals Drinks coffee twice a day; morning to awaken weary body and afternoon to revive spirit manekamalibago.blogspot.com
  5. 5. 1. Workers pay for alertnessThrough the years NESCAFE target market:2005 ----- Spirit Seekers2006 ----- Life Seekers2007 ----- Ambition Flirters2008 ----- Young Cosmopolitans2009 To present ---------- working individuals manekamalibago.blogspot.com
  6. 6. PTM needs to belong in a group… Self-Actualization Needs I am happy when I have an (Self-Development & Realization)important and worthwhile job Esteem Needs (Recognition, Status) I want to belong Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological needs (food, water, shelter) Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 6 manekamalibago.blogspot.com
  7. 7. 2. Workers have unique needs, wants, & demandsWorking individuals need to belong, to be loved, gain self-esteem, and achieve self-actualization.Working individuals choose Nescafe over other brands of coffee because of Taste, Quality, Convenience to make, credibility & awareness of company, brand promise is keep people active through out the day.Working individuals demand quality & tasty coffee which are convenient to make, maintain alertness all day. manekamalibago.blogspot.com
  8. 8. 3a. Nescafe has increasingcompetitors Direct: San Mig, Jimm’s, Café Puro, Kopiko, Great Taste, Kraft Maxwell Indirect: Teas, Softdrinks, Energy Drinks, Chocolates Drinks Variables: Quality, Price, Packaging, Variants/Flavors, Taste, Convenience of Use, Availability, Occasion of use manekamalibago.blogspot.com
  9. 9. 3. NESCAFE ranks #1 with its various packaging and high price as of 2011 Price vs. Packaging MatrixPackaging/ Jars Pouch Sachet Sticks Price MatrixHigh price Nescafe Nescafe Nescafe Nescafe Jimm’s San Mig San Mig San Mig Great TasteLow Price Great Taste Great Taste manekamalibago.blogspot.com
  10. 10. 3. NESCAFE has the same as of 2011 attributes with most coffee brands Benefit Positioning vs. Brand Matrix Great Decaffei San Mig San Mig Great Taste Classic nated Healthy San Mig Pro- Sugar- Taste Coffee Jimms Functional Benefit Coffee Coffee Coffee Regular health free Regular MisMental AlertnessImprove CognitivePerformanceImprove PhysicalPerformanceAntioxidantsIncease MetabolismEnergy BoostIncrease ImmunityHealing ManagementLower Blood SugarLessen Symptoms ofMenopause &PMSSaves money manekamalibago.blogspot.com
  11. 11. 4. NESCAFE is a brand of instantcoffee made by *NESTLE*Nestle ranks no. 8 in the Top 1000 Corporation in the Philippines.(business World 2010) manekamalibago.blogspot.com
  12. 12. 4. The NESCAFÉ BrandIt gained Brand Loyalty thru: Media Mix (TVBrand Awareness commercials, radio, newspaper, sponsorship, etc. (emotional appeal)Created Trust Consistent image & quality of products manekamalibago.blogspot.com
  13. 13. 4. Nescafe positions strongly in the supply and distribution leverage.Unlike its competing brands, NESCAFE is available almost in every corner of the country.In groceries, large portion in the coffee section displays the different variants of NESCAFE. manekamalibago.blogspot.com
  14. 14. 4. Prospects that will lead to increase in coffee demandPROSPECTS longer working hours and busier lifestyles for Filipinos desire to streamline operations amongst foodservice establishments manekamalibago.blogspot.com
  15. 15. 4. Nescafe may have to consider opportunities.In the Philippines, annual coffee growth rate is at 8%.Opportunities: Inform the public product health benefits Tie up with companies/offices Take advantage of internet and different media that encourages new trends manekamalibago.blogspot.com
  16. 16. 5a. Based on a coffee marketstudy, coffee market size is 20million Total volume sales of coffee achieve 8% growth in 2010 Instant coffee mixes continue to gain popularity in both off-trade & on-trade channels Instant coffee records the strongest total sales volume at 8% in 2010 manekamalibago.blogspot.com
  17. 17. 5a. Total volume sales of coffeeare expected to reach a 6%*CAGR over the forecasted period *CAGR = compounded annual growth rate manekamalibago.blogspot.com
  18. 18. 5a. Based on a coffee marketstudy, coffee market size is 20million. Globally, NESCAFÉ coffee is consumed at a rate of about 4,600 cups every second!2010 : Nescafe Philippines continues to dominate with 81% share of off-trade volume sales & 89% share of off-trade value salesIts well-diversified product portfolio captured broad range of consumers(from low-income Filipinos to health conscious coffee drinkers manekamalibago.blogspot.com
  19. 19. 5b. Based on Nestle Phils. Salesdate in 2010, 22% of its sales isfrom Nescafe.Nescafe sales data for 2010: P 20 billion, a relatively high percentage attributable to NescafeRIG in 2010 is 8.8% while OG is 12%The total coffee market size is P 23 Billion of off-trade value sales manekamalibago.blogspot.com
  20. 20. 5b. NESCAFE continues todominate the market manekamalibago.blogspot.com
  21. 21. 5b. There are only few players inthe market manekamalibago.blogspot.com
  22. 22. 5c. Consumer data indicatesa size of P 36.5 billionFilipinos consume 65,000 metric tons (MT) of coffee annually.20 million of 102 million Filipinos drink an average of 2 cups of coffee everyday which costs around P2 .50 per cup20 million X P 2.5 X 365 x 2 =P 36.5 billion manekamalibago.blogspot.com
  23. 23. 5. Concluded that coffeemarket is P 23 billionCompany Data = P 23 BillionCustomer Data = P 36.5 Billion manekamalibago.blogspot.com
  24. 24. 6a. NESCAFE PRODUCTS Think globally, Act locally manekamalibago.blogspot.com
  25. 25. 6a. NESCAFE VariantsClassic Coffee NESCAFE Flavored MixesNESCAFE Classic Choco FudgeNESCAFE Classic First Pick Hazelnutz Decaffeinated CoffeeCoffee Mixes NESCAFE DecafNESCAFE 3n1 NESCAFE 3n1 Decaf Original Brown ’N Creamy Strong ‘N Rich Sweet ‘N Mild manekamalibago.blogspot.com
  26. 26. 6a. NESCAFE VariantsHealthy Coffee Premium Coffee NESCAFE Body Partner NESCAFE Gold Protect Fit Ready-to-Drink Coffee Relax NESCAFE Mocha Lingzhi NESCAFE Latte NESCAFE 3n1 Sugar Free manekamalibago.blogspot.com
  27. 27. 6a. NESCAFE own a superiordisplay of its products on shelf San Mig Coffee Lipton Tea Nescafe at supermarket shelf manekamalibago.blogspot.com
  28. 28. 6b. NESCAFE Coffee coffees flavor is a delicate balance of characteristics, working together to create a perfect cup : Acidity, aroma and body are all components of flavor. The following are some of the more typical flavor characteristics: Richness: refers to body and fullness Complexity: the perception of multiple flavors Balance: the satisfying presence of all the basic taste characteristics where no one element overwhelms another manekamalibago.blogspot.com
  29. 29. 6b. NESCAFE ProductsSome products have 3x more antioxidants than green tea. So every cup is deliciously healthy!Sweetened with sugar substitute and contains TEAVIGO that gives a guilt-free coffee experienceSoothing decaffeinated coffee mix with ChamomileLingzhi, also know as Ganoderma or Reishi mushrooms, has been revered by the Chinese for thousands of years manekamalibago.blogspot.com
  30. 30. 6b. NESCAFE packages itsproduct in different sizes Sachet JarsDoy pack / Sticks pouch manekamalibago.blogspot.com
  31. 31. 7. Coffee prices varyaccording to product sizes NESCAFE SAN MIG COFFEE Size Item Price Size Item Price15 g x5 Nescafe Banoffee Blast Php34.50 13 g x5 San Mig Coffee 3 in 1 Pro-Fiber Php47.5032.5 g Nescafe Body Partner Fit Php41.50 13 g x5 San Mig Coffee 3 in 1 Pro-Fiber Php48.7570 g Nescafe Body Partner Lingzhi Php51.5025 g x10 Nescafe Brown & Creamy 3 in 1 Php52.00 14 g x6 San Mig Coffee Classic Orig Php26.5025 g x30 Nescafe Brown & Creamy 3 in 1 Php152.75 4 g x10 San Mig Coffee Classic Orig Php39.5015 g x5 Nescafe Chocofudge Php34.50 14 g x10 San Mig Coffee Extra Strong Php46.7525 g Nescafe Classic Php17.0050 g Nescafe Classic Php56.50 14 g x6 San Mig Coffee Mild Php31.50100 g pouch Nescafe Classic Php69.10 14 g x10 San Mig Coffee Mild Php49.5012 g x12 Nescafe Classic Php111.85 4 g x10 San Mig Coffee Mild Strong Php46.752 g x84 Nescafe Classic Php153.50 13 g x6 an Mig Coffee Mild Strong Php30.50200 g jar Nescafe Classic Php216.65210 g Nescafe Classic Php220.00 14 g x10 an Mig Coffee Orig Php41.0050 g Nescafe Classic Jar Php55.00 12 g x10 San Mig Coffee SF Extra Strong Php70.2525 g pouch Nescafe Classic Refill Php17.60 14 g x10 San Mig Coffee Strong Php49.5050 g Nescafe Classic Stand Up Pouch Php34.60 12 g x10 San Mig Coffee Sugar Free Extra Strong Php73.502 g x84 Nescafe Classic Stick Php144.502 g x20 Nescafe Decaf Php48.50 7 g x10 San Mig Coffee Sugar Free Mild Php60.0080 g pouch Nescafe Decaf Php76.50 7 g x20 San Mig Coffee Sugar Free Orig Php97.50200 g jar Nescafe Decaf Php254.50 9 g x10 San Mig Coffee Sugar Free Strong Php60.0014 g x10 Nescafe Decaf 3 in 1 Php64.5015 g x5 Nescafe Hazelnutz Php34.50 9 g x20 San Mig Coffee Sugar Free Strong Php121.5016.5 g x10 Nescafe Original 3 in 1 Php42.50 12 g x12 San Mig Grandeur 3 in 1 Hazelnut Php162.5016.5 g x36 Nescafe Original 3 in 1 Php144.50 12 g x12 San Mig Grandeur 3 in 1 Mocha Php162.5016.5 x36 Nescafe Original 3 in 1 Php145.00 12 g x20 San Mig Grandeur Flavor Collection Php269.50100 g Nescafe Protect Php134.50 manekamalibago.blogspot.com
  32. 32. 7. Coffee prices varyaccording to product sizes Great Taste Nescafe price ranges from 25 g Size Item Great Taste Premium Price Php15.50 P17 to P254 25 g pouch Great Taste Premium Php16.65 100 g 12 Great Taste Premium Php61.00 San Mig Coffee price ranges g x12 6 g x6 Great Taste Premium Great Taste Sugar Free Php99.50 Php27.50 from P30.50 to P269.70 20 g x36 Great Taste Trio 3 in 1 Original Php122.50 Size Jimms Item Price Great Taste price ranges 21 g x12 Jimms 4 in 1 Php86.50 from P15.50 to P122.50 21 g x12 Jimms 5 in 1 Php132.50 21 g x20 Jimms 5 in 1 Sugar Free Php259.50 Jimm’s price ranges from 21 g x12 Jimms 7 in 1 Php144.50 P86.50 to P259.50*Prices of products were based on Pure Gold and SM Supermarkets manekamalibago.blogspot.com
  33. 33. 7. Coffee prices varyaccording to product sizes Brand 3 n 1 SACHET Average Price per original flavor SachetJimm’s 21 g X 12 @ 86.50 4.11NESCAFE 16.5g X 10 @ 42.50 4.25SAN MIG 14 g X 10 @ 41.50 4.15Great Taste 20 g X 36 @ 122.50 3.40 •Since not all brands have the same packaging sizes, for price comparison purposes, average price per sachet was used. •Prices were based on SM grocery price. manekamalibago.blogspot.com
  34. 34. 7. NESCAFE is priced 25% higherto the least priced brand. Brand 3 n 1 SACHET Average Price per original flavor SachetJimm’s 21 g X 12 @ 86.50 4.11NESCAFE 16.5g X 10 @ 42.50 4.25SAN MIG 14 g X 10 @ 41.50 4.15Great Taste 20 g X 36 @ 122.50 3.40 4.25-3.40/3.40 = 25% *Base price is that of great taste Based on the data above, NESCAFE has the highest price in 3n1/4n1 original flavor sachet. manekamalibago.blogspot.com
  35. 35. 8a. NESCAFE uses TV ads,events, and songs manekamalibago.blogspot.com
  36. 36. 8a. NESCAFE invests heavily inpromotion compared to itscompetitorsBillboards, newspaper, magazine, TV commercials, and in the internet (online games & social networks)Although the leading brand for instant coffee, NESCAFE spends much on TV commercials compared to its competitorIt uses celebrities in its TV commercials from Ramon Bautista & Francis M, Sarah Geronimo, Parokya ni Edgar, Coco Martin, etc. manekamalibago.blogspot.com
  37. 37. 8a. NESCAFE commercialshave emotional appeal 2011 Bakit ka nagtitimpla? manekamalibago.blogspot.com
  38. 38. 8a. NESCAFE commercialshave emotional appealPara kanina ka bumabangon?Para sa anak. Para sa kaibigan. O sa di mo kakilala.Para sa bata. O sa isip bata. Para sa marami. Para sa sarili manekamalibago.blogspot.com
  39. 39. 8a. NESCAFE commercialshave emotional appealParokya ni Edgar – One moment One Nescafe manekamalibago.blogspot.com
  40. 40. 8a. NESCAFE commercialshave emotional appealBamboo Sunshine– One good day coming up! Day of Adventure manekamalibago.blogspot.com
  41. 41. 8a. NESCAFE commercialshave emotional appealPalistuhan Challenge Francis M. vs Ramon Bautista (2008) – Message Nescafe will make a person alert!!! manekamalibago.blogspot.com
  42. 42. 8b. Great Taste by UniversalRobina Side Lucero ---- Great Taste Coffee manekamalibago.blogspot.com
  43. 43. 8b. San Mig Coffee by San MiguelPureFoods manekamalibago.blogspot.com
  44. 44. 8b. Jimm’s manekamalibago.blogspot.com
  45. 45. 8b. Other forms ofNESCAFE promotionSamples manekamalibago.blogspot.com
  46. 46. 9. NESCAFE is distributednationwide using Nestledistribution network  Hypermarkets, supermarkets, sari-sari stores, convenience stores, offices and schools  Nationwide  Pick-up by customers  Cash and credit transaction manekamalibago.blogspot.com
  47. 47. 10. Nescafe is a niche leader  Nescafe’s main strategy is to dominate the niche market of working individuals between ages 20 to 30  It benefits from the distribution leverage of Nestle.  Has a relatively high price compared to its competitor, however because of brand loyalty it still dominates  Distributed nationwide manekamalibago.blogspot.com
  48. 48. SUMMARYmanekamalibago.blogspot.com 48
  49. 49. Summary headline of your PTM and market1. Nescafe PTM are working individuals2. Who needs stimulation for every new day3. Can choose San Mig Coffee & Jimm’s4. Provide quality coffee without compromising taste5. The market size is P 23 billion, Nescafe niche 20 billion manekamalibago.blogspot.com
  50. 50. Summary headline of the marketing mix & strategy6. Nescafe is a brand of quality instant coffee7. Priced higher than its competitors8. Uses prints, TV & radios, events and experiences9. Is distributed nationwide10. Uses niche strategy to win manekamalibago.blogspot.com

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