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  1. 1. IntroductionThe thesis paper is designed based on the practice of IMC program of Nescafe and how thedifferent tools of advertising contribute to the sales of Nescafe and its brand retention. Nescafeis considered as the most trusted and enjoyed coffee around the world. Nescafe is chosen tocarry over the research regarding IMC because it represents the sign of energy and youthwhere it can deliver the whole range of emotional benefits that go beyond taste as a beverageproduct. To identify IMC program of Nescafe and the importance of the specific advertisingtools into the coffee consumption, a research proposal has been prepared where the researchguidelines were articulated. Actually this article is focusing on the activity of consumers ofNescafe in their final buying throughout the persuasive advertising and also to integrate theactivities like-development of information technology, changes in channel power, brand parity,integration of information by consumers and global competition. Nescafe is emphasizing itsbrand through the essence of coffee among the mass people and the research has beenconducted to bear out the implication of IMC program in its promotional activities. Purpose of the StudyNescafe is a very popular brand into the beverage industry. The purpose of the study is toidentify the advertising tools regarding IMC those mostly affect the customers’ perception andmake effective use of those advertising tools. Background of the studyNescafe brand is owned by Nestle and it is worth around 13 billion dollars around the world.Each year approximately 94 billion Nescafe cups are sold around the word, which is around3,000 cups every second. According to the Inter brand study, the brand "has benefitted fromthe increase in demand for premium coffees", and has also educated its consumers about thehealth benefits of the beverage. Several researchers have acknowledged the way ofpromotional activities of Nescafe because of its versatile advantages. According to the businessexperts Nescafe basically try to target young, general people and working executives. So mostlyin their advertisement they show young boy or girl having coffee in Red Nescafe Mug. TheNescafe targets general people who are just looking for a cup of coffee to get them through theday. Coffee is a beverage that can revitalize them. Even Nescafe is promoting in a way that itcan reenergize the working people. According to the findings, Nescafe is using the IMC strategyby enhancing the vending machine network of Nescafe. Nescafe has set up Café Nescafe andCoffee Corners across metros and mini metros. 1|Page
  2. 2. Literature ReviewThe literature review intends to present an integral theoretical framework in order to allow andjustify an in-depth analysis of the observed findings. The literature review is divided into twomain parts. The first part will clarify issues of describing strategic relationship with themarketing activities that have been practiced by Nestle in its Nescafe brand before elaboratingthe customer differential - CRM, including the importance of competitive differentiation, thekey concepts of satisfaction, trust and customer loyalty. The second part will elaborate thedevelopment of the integrated marketing communication and its challenges as well as thedescription of communication Medias to build up the effectiveness. The two main sections willbe subdivided into further points to keep a clear structure and to explain the most relevantaspects. Methodology of this StudyResearch Type:A Quantitative research is conducted among the Nescafe consumers in Bangladesh.Population and Sample:Population of the study is all the Nescafe consumers in Bangladesh. But the sample is limitedwithin a selected group of audiences and the company Unitrend limited, affiliated with McCannand Erickson World group, to acquire the scenario regarding the promotional activities and itsimplications. I have taken this company as a sample because I have done my internshipprogram into here and Unitrend maintains the accounts of Nestle and more specifically theNescafe.Data Type:Primary Data: Discussions with the authorities of Unitrend Ltd regarding the IMC of Nescafe. Completing the questionnaires by Unitrend Ltd’s personnel and the sample of consumers of Nescafe.Secondary Data: IMC plan of Nestle regarding Nescafe. Brochures of the company. Websites based mainly on Nestle. 2|Page
  3. 3. Data Collection Procedures: Interviewing. Printed direct questionnaires. Use of document sources. Company brochures.Statistical Analysis:Multivariate Regression is analyzed to get the outcome regarding the advertising tools’effectiveness from the conducted survey.Variables for Research: Dependent: Customer Perception. Independent: Different advertising tools: TVC, Billboards, Press ads, Magazines, Online Advertising, Radio, Trade Promotion, Consumer Promotion, Point of Purchase, Personal Selling.Software: SPSS 16 has been used to analyze the data. 3|Page
  4. 4. A Brief History of Nestle Nestle, the worlds largest food and nutrition company, founded by the Henri Nestle (10August 1814 – 7 July 1890); a German confectioner in Vevey, Switzerland in 1866. In the food industry Nestle is the most trusted name with high quality products. Good food Good Life is the mission of Nestle, which drives the company to provide consumers with the best tasting and most nutritious choices in a wide range of food and beverage categories and eating occasions. The vision of Nestle is to create shared value and shape the company culture and made them a reliable investor over 86 countries of the world.Nestle in Bangladesh:Nestle started entering this part of the sub-continent during the British rule and the trendcontinued during the pre-independence days of Bangladesh. After the independence in 1971,Nestle World Trade Corporation, the trading wing of Nestle S.A, sent regular dispatch of Nestlebrands to Bangladesh through an array of indentures and agents and some of the brands suchas NESPRAY, CERELAC, LACTOGEN, and BLUE CROSS etc. became some very common products.Nestlé Bangladesh Limited started its commercial operation in Bangladesh in 1994.Customers in Bangladesh for Nescafe:Nestle Bangladesh Limited markets its productsthroughout the country with the help of thedistributors. A part from that, Nestle Professional is aseparate function which is responsible for theinstitutional sale of Nescafe. There are currently 80distributors of Nestle Bangladesh products of which76 are retail distributors and remaining 4 are NestleProfessional’s distributors providing products for theout of home consumptions. The whole country isdivided into six regions: Dhaka, North Dhaka, SouthChittagong, Bogra, Khulna and Sylhet. 4|Page
  5. 5. Marketing Strategy of NescafeThe effective formulation of Nescafe’s marketing strategy depends on the proper matchbetween the three key elements, Consumer Quality CompetitionOne thing to be mentioned is that the match between consumer and quality is most importantfor Nescafe. Besides there are some other concerns that effect the marketing strategy. Thisconcerns are where to compete, how to compete and when to compete.The current marketing strategy of the company is based on the foundation of the threestrategies which have the following factors: Segmentation Targeting PositioningMarket Segmentation:Nescafe is targeted towards the consumer market. So that it can be treated as consumerproducts.Market Targeting:The main focus is the socio-economic class, which is the company wide target. Nescafe’spotential consumers are those who acknowledge that Nescafe is all about quality and mostimportantly those who can afford the products. The strategy for selecting this target market hascome from the Income level, education and quality realization.Market Positioning:Nescafe’s positioning strategy comprises of the three steps: Identifying the right competitive advantage, Choosing the right competitive advantage, and Selecting the right completive advantage. 5|Page
  6. 6. Marketing Mix of NescafeProduct:Theme:“cholo sobai jibon r ahobane samne egiye jai”Ingredients: Bee Polen Pandan Agaricus Mushrooms Gotu Kola Guavas & CoffeePricing:The pricing strategies for the Nescafe are: Penetration Approach: It is an approach in which a price set firstly low and then as demand increases the price also increases. This approach is used for competition base pricing. In such market position when product is at its peaky demand then some of customers become brand loyal they prefer to purchase prescribed brand products only. Nescafe first introduced its 2 in 1 by the penetration pricing approach. Skimming Approach: It is an approach which is used for pure monopolistic product or service. In this approach firstly we highest ranges of prices are set and then gradually decrease the price of the product or service as any substitute product or service come into the market or demand of the product decrease. In countries like Bangladesh public is not of the level that they can pay any price demanded by the firm so sometimes such kinds of pricing strategies cause failure of the product. 6|Page
  7. 7. Place:The traditional form of distribution channel is used by the marketers to deliver the products. Manufacturer Wholesaler Retailer CustomerPromotion:Promotion activities play an important role in re-launching any product. Increase in targetmarket is possible by personal selling. It includes persons in retail stores telling the benefits topotential customers about importance of coffee in standard packed form. Awareness plays themost important role. They should taste customers on different places. Because they are themain servers of such kind of nutritional diets to their family members TV commercials and BillBoards should be planned to advertise properly.Determining the promotional methods:There are various promotional methods like personal selling, advertising, sales promotions,public relations etc. but the method adopted by Nestle for introducing Nescafe was advertising,outdoor printed media for advertising like hording boards, news papers, posters etc. Nestleattracted the existing customer of the imported brands and potentials customers through itsadvertising campaign. 7|Page
  8. 8. Promotional Strategy:Nestle strongly believes that Nescafe product is specific and so are the product benefits. Ithardly emphasizes on promotion and publicity because consumers in Bangladesh already knowthat ensuring product quality is what Nescafe focuses, not price. Nescafe mainly focuses thetwo possible advertising objectives: Informative advertising Persuasive advertisingSince Nescafe is already an acknowledged and quality beverage product in Bangladesh, it doesnot emphasize much on publicity and promotion. Here are a few points to deliberate aboutadvertising done by Nestle Bangladesh regarding Nescafe: Mass advertising is done for new products only like Nescafe coffee, Nescafe Ice, Nescafe cappuccino. 15% of marketing communication budget has spent for publicity. More indulged into product sampling and test marketing Nestlé had performed test sampling in the year 2003 on Nescafe. The Advertising tools used for Nescafe in BangladeshNestle Bangladesh is associated with the following profiles of major media types for its Nescafebrand: Newspaper, Television, Local Magazine, Billboard, and Radio.Nescafe is trying to integrate their promotional activities and have an integrated marketingapproach for the consumer grabbing. 8|Page
  9. 9. Broadcast Media:Television:Nestle use 40% of their budget on the broadcast media. Television is the major medium usedfor the advertisement. Nestle has been playing commercials on the TV since they havelaunched the Nescafe.Their Ads cover all the lifestyles of the people. In their ads they have shown many situationslike:  Friends sitting together  Executives in good moods  Younger generation in smiling energy form.In the entire above situation they have showed the importance of the coffee, when it’s aboutathlete, he is health conscious, when friends sitting together and having fun what they need.The main thing the NESTLE wanted that people should trust on that Nescafe is purest form ofcoffee.Radio:Nestle is not only advertising on Television but they are also advertising on radio. They play thevocal ads on Fm 89.6. Advertising on radio is basically for the people who are on roads.Print Media:Nescafe is using following print Medias to advertise: Magazines Newspapers Direct Mail Postcards Flyers Brochure 9|Page
  10. 10. Some Snapshots of prevalent advertisement of Nescafe in Bangladesh Nescafe has promoted its coffee brand in the style of the warmth through the press media and billboards in Bangladesh. Nescafe has introduced its cold coffee in the year of 2010 to grab some of the markets from the cold drinks through the TVC and press ads. 10 | P a g e
  11. 11. Some Snapshots of prevalent advertisement of Nescafe in Bangladesh Nescafe was so successful in promoting its coffee brand among the young targets with lots of energy and zeal throughout the TV media and billboards.Nescafe initiated its 3 in 1 productthroughout the TV media, eventmanagement, Print media andonline media to get a finestappeal from the target group inBangladesh. 11 | P a g e
  12. 12. Analysis of the IMC tools to measure Customer PerceptionAdvertising Research:A subset of marketing research, advertising research is the systematic gathering and analysis ofinformation to help develop or evaluate advertising strategies, ads and commercials and mediacampaigns.Following are the types of advertising research:Qualitative Research: Qualitative research seeks in depth, open ended responses, not yes or no answers to get people to share their thoughts and feelings. This research is used more often to give advertisers a general impression of the market, the customer, or the product. The methods used in qualitative research are usually described as Projective Techniques. Nestle does both type of research. They do on going research whole year and on the basis of the results they make their decision for the future.Quantitative Research: Advertisers use quantitative research to measure market situation in hard number. Three basic methods to collect quantitative data are-  Observation  Experiment  SurveyThe quantitative research has been formulated to get the glimpse of the effects of theadvertising tools that best affect the consumers’ perception. A survey had been conductedamong small group of coffee takers of Nescafe to gather the information regarding theimplications of several IMC tools. The following regression analysis will reconcile the matter ofcorrelation between the advertising tools and the consumers’ attention toward the product orservice. 12 | P a g e
  13. 13. Regression AnalysisModel Summary b Adjusted R Std. Error of theModel R R Square Square Estimate1 .900a .810 .600 .19469a. Predictors: (Constant), Personal Selling is good for Nescafespromotion., Radio media attracts you for the product learning., Onlinepromotion is effective for Nescafe., TVC plays role in promoting brand.,Magazine helps you in finding Nescafe and its importance., Billboardattracts you to learn about Nescafe., Newspaper attracts you in takingNescafe., Consumer promotion attracts you for the product promotion.,Trade promotion helps to promote product., Point of purchase salesassists in product branding.b. Dependent Variable: The IMC of Nescafe hits your mind. bANOVAModel Sum of Squares df Mean Square F Sig.1 Regression 1.459 10 .146 3.849 .027a Residual .341 9 .038 Total 1.800 19a. Predictors: (Constant), Personal Selling is good for Nescafes promotion., Radio media attracts you for the productlearning., Online promotion is effective for Nescafe., TVC plays role in promoting brand., Magazine helps you in findingNescafe and its importance., Billboard attracts you to learn about Nescafe., Newspaper attracts you in taking Nescafe.,Consumer promotion attracts you for the product promotion., Trade promotion helps to promote product., Point ofpurchase sales assists in product branding.b. Dependent Variable: The IMC of Nescafe hits your mind. 13 | P a g e
  14. 14. Coefficients Standardized Unstandardized Coefficients CoefficientsModel B Std. Error Beta t Sig.1 (Constant) 4.839 1.103 4.387 .002 Magazine helps you in finding Nescafe and its -.079 .095 -.165 -.835 .425 importance. Billboard attracts you to .038 .055 .122 .699 .502 learn about Nescafe. Newspaper attracts you in -.113 .079 -.303 -1.445 .182 taking Nescafe. TVC plays role in .169 .062 .469 2.731 .023 promoting brand. Online promotion is effective .032 .112 .072 .285 .782 for Nescafe. Radio media attracts you for -.175 .126 -.234 -1.390 .198 the product learning. Trade promotion helps to .111 .117 .244 .943 .370 promote product. Consumer promotion attracts you for the .316 .089 .773 3.556 .006 product promotion. Point of purchase sales -.020 .136 -.054 -.148 .886 assists in product branding. Personal Selling is good for -.152 .129 -.436 -1.182 .267 Nescafes promotion.a. Dependent Variable: The IMC of Nescafe hits your mind.Here the TVC and Consumer promotion have become significant whish indicates that thesetwo advertising tools typically influence the consumers’ perception in taking Nescafe. 14 | P a g e
  15. 15. Residuals Statistics Minimum Maximum Mean Std. Deviation NPredicted Value 4.0989 5.2287 4.9000 .27709 20Residual -.24224 .20627 .00000 .13400 20Std. Predicted Value -2.891 1.186 .000 1.000 20Std. Residual -1.244 1.059 .000 .688 20a. Dependent Variable: The IMC of Nescafe hits your mind. 15 | P a g e
  16. 16. Key Findings regarding the Statistical AnalysisA quantitative research has been applied to get the essence of the several advertising toolsinfluence on the final buying of Nescafe. A survey has been conducted among a sample of theNescafe users to get the glimpse. The proposed advertising tools regarding IMC of Nescafewere identified as follows: TVC Magazine Newspaper Billboard Radio Online advertisement Personal Selling POP Trade Promotion Consumer PromotionFrom the regression analysis mentioned above pages, it is clearly proved that the two tools ofadvertisement became significant which indicates the direct influence of these twos in the finalbuying of Nescafe coffee in Bangladesh. A group of customers filled up the surveyquestionnaires with their viewpoint to assist the activities of this research article. The otheradvertising tools like magazine, newspaper, personal selling, billboard etc were not signified bythe regression analysis. So the Nestle Bangladesh should emphasize more on the abovementioned advertising tools according to the statistical measurement upon the consumers’perception. There were noteworthy appeals toward the TV and consumer promotionadvertising media. The analysis showed that 0.006 and 0.023 values for Consumer promotionand TV accordingly which is below the 0.05 significance level. 16 | P a g e
  17. 17. Recommendations regarding the IMC tools of NescafeNescafe is very popular brand in beverage category in Bangladesh. Nestle is occupied with a richcommunication pattern. But still there needs some changes according to the consumers’perception that brought out from a research activity. Some recommendations regarding theNescafe’s IMC practice can be mentioned as follows: Nescafe should occupy more of its promotion into the sales and consumer promotion sector by offering free sample, coupons, price rebates etc to pull up a mass consumer group from the market place. Nescafe should maintain more creative and fascinating messages in its TV commercial. Nescafe should arrange gaming contest for its mass consumers which was rather suggested from the consumer groups when the survey was conducted. Nescafe should emphasize on the specified target groups with the specific communication. Nescafe can also make trade allowances to stir up its sales for the long run. As the numbers of working people are increasing day by day the importance of billboards has become an integral part. So from my view-point Nestle should emphasize on this to make it more articulate. 17 | P a g e
  18. 18. ConclusionTo put the pre-going discussion in a nut-shell, it can be safely be ventured to opine that Nestlecompany has much potential at that time but if they use the above promotional strategy inproper manner it can be easily concluded that they will be able to lead the industries in theBangladesh and abroad. Nescafe should implement these IMC activities as me proposed in thethesis paper to grab the attention of huge audiences and earn the profitability. 18 | P a g e