Necafe 4P's of marketing mix along with data analysis of consumer review through questionnaire of 50 respondants.

1. PRODUCT
NESCAFE
The beginnings of Nescafe can be traced all the way back to 1930,
when the Brazilian government, first approached Nestlé. The agency,
Brazilian Coffee Institute seeks Nestle to preserve the huge coffee
surpluses,by develop coffee that was soluble in hot water.
Coffeeguru, Max Mergenthaler, and his team set out immediately to
find a way of producing a quality cup of coffeethat could be made
simply by adding water, yet would retain the coffee’s natural flavor.
After seven long years of research in
Nestle Swiss laboratories, they found the
answer. The new product was named
Nescafe – a combination of Nestlé and
café. Nestle introduced Nescafe,the first
commerciallysuccessfulsoluble coffee,
in Switzerland, on April 1st, 1938.The
company applied the technologyat its
Hayes factory, west London.
Instant coffee processing was not a new idea; it was invented by a
Japanese chemist in 1901 and had been marketed and sold by
other companies without success. Nestle revolutionized the way

2. instant coffee was made. Nestle developed a new process for
dehydrating the concentrated coffee which vastly improved the
quality. In entailed spraying a fine mist of the solution into a heated
tower where the droplets turned to powder almost instantly.
For the first half of the next decade,however, World War II hindered
its success inEurope.
Nescafe was soon exported to France, Great Britain and the USA. Its
popularity grew rapidly through the rest of the decade.It was so popular
that the entire production of its US plant was reserved formilitary use.
By the 1950s, coffeehad becomethe beverage of choice for
teenagers,who were flocking to coffeehousesto hear the new rock ’n’
roll music.
Over the years the company has kept the emphasis on innovation,
introducing pure soluble coffee (1952)solely using roast coffeebeans,
freeze dried soluble coffee(1965)and coffee granules (1967).In 1994
Nestle invented the full aroma process,which improved the quality of
instant coffee.Such innovations have made sure that Nescafe has remained
the world’s leading coffee. It is also the third most valuable brand in the
entire drinks sector.

3. Brand Perception
• Nescafe logotype was always the same since its origin. The
logotype borrowed the same Nestlé format, and the word
Nescafe is a combination of the first three letters of Nestlé and
café which is coffee in Portuguese.
Packaging and Color
• The symbol added to convey the brand meaning was the red
mug. Most commercials scenes show someone holding the red
mug with the Nescafe logotype written in the vertical position.
• Probably the red color of the mug was chosen to emphasize
the energy of the drink, since coffee is a stimulating drink and
red is perfect to describe this state of mind. Therefore, the
semiotics triangle would display on the sign side, the red
mug, on the object side, the granulated instant coffee, or the
product itself,and on the interpretant side, the wellness state of
a good cup of coffee.
Target Audiences:
1. Working Adults (Primary)
2. Students-University, Academy, High School (Secondary)
3. Senior Citizens (Third party)

4. MISSIONSTATEMENT:
To bring Nescafe to people around the globe,providing a Nescafe to
satisfy every aspectof needs.
Nescafe provides good test,aromatic smells of coffee to people, providing “1
Nescafe with 1 unique moment” so that everyone can enjoy. Wherever you
are, you will be able to find Nescafe around, whether in shopping
complexes, supermarkets/hypermarkets or even grocery stalls.
GOALS/ ACHIEVEMENTS:
Giving people the unique moments (comfort, relaxations) through Nescafe.
Stress, pressures, working overtime has led the people to have at least a cup of
Nescafe coffee to relax them, having chit-chat with friends/colleagues as well, to
prevent from emotional influences.
Vision:
We are committed to maintaining the same level of personal
connection that our consumers have grown to love as we build these
qualities into our company culture .
Slogan:
“ It all starts with a NESCAFÉ

5. Products

6. Price
Nescafe is one of the leading coffee brandsin the world.The price of
products are dependenton the quality of the material supplied by the company.
The marketing mix pricing strategy of Nescafe is dependentupon competitors
and demand. The products are high in quality and they are significantly priced.
But this has slowly made the customerbase small and limited. The people
decided to have these coffeesand was a great a great success.
There after we saw that Nescafe has made several changes
in the portfolio and new products are in. This has increased the customerbase,
as people have a wide variety to choose from.The prices of the followings were
adjusted accordingly. The volume offered to the customers were varied as was
the price. This made it available to a wider set of customers as the products got
pocketfriendly. The sachets are available at a very low price. They are targeted
to the customers who would prefera single cup of coffeeand at a cheap rate.
The various flavours of Nescafe coffee are made available at various quantity
and their prices also set according to the packing.

7. 1. Pricing Strategy
Marketentry strategy:
Nescafe is using marketing Skimming strategy when they enter into the market in
a country, because at that time they believe that their target customerfor coffee
belonged to upper class, after that with the success of this strategy they reduce
their prices and target the upper middle class, but that strategy doesn’t form into
penetration.
Pricing strategyfor establishing products:
For Nescafe,the focus is focus on the maintaining prices because in
circumstances where a price change may be desirable,but the magnitude of
change is undeterminable. It is found the competitorsof Nescafe are very week in
terms of having market share, so it give company a edge on competitors to
maintain prices while introducing new product.
Price leadershipstrategy:
Nescafe is at the moment having a price leadership strategy and it is because it
fulfills all the requirements of a successfulprice leadership.
Flexibility in pricing strategy:
They have flexibility in their pricing strategy but only for the Institutional
businesses,otherwise they stick on with same prices in market. And this is
because their competitors are not powerful and not in a positionto dictate
Nescafe to create flexibility in pricing.

8. 2. Marketand DemandStructure
The instant coffemarket is absolutely oligapolistic but Nescafe has a few
competitors eg.Jacobs,Cafe Crown and Tchibo.In this market the demand
structure is elastic.
3. ProductMix Pricing Strategy
Product line pricing strategy; Nescafe has a full line of instant coffee products and
because of differencesin customerperceptions ofthe value of differentfeatures,
they use productline pricing strategy. Each of Nescafe Classic,Nescafe 3in1,
Nescafe Gold etc. Has differentprice in differentsizes.
4. Price AdjustmentStrategy
Geographicalpricing; differentprices forcustomers located in differentpart of the
World.

9. Place
The brand Nescafe has become a household name with respectto its growth.
Nescafe makes sure that the people all around the world are happy to have their
products.They know the demand of the products and they because of that make
sure that they reach to the areas where they expecttheir target customers to be.
Nescafe maintain a huge cycle of distribution and in the due course, with its
increase in brand name the made themselves available in almost all the areas
where their targeted customers are. The distribution is similar to any typical fmcg
company. They follow the process ofretailers who supply to the customer.
Nescafe is making use of the Dual Distribution, it is not possibleforthe consumer
to purchase coffee directlyfrom Nestle. Although, Nescafe have differentsites in
differentlanguages those site is made only for the country in which language it is
written.

10. CHANNEL PARTICIPANTS AND
CHANNEL STRUCTURE OF NESCAFE
Channel Partners
There are various channel partners involved in the distribution of Nescafe.Nestle
has 8 factories in India. From these factories,Nescafe coffee passes on through
several channel partners:
DC (Distribution Centers): Nestlé’s distribution centers are specialized buildings,
with refrigeration and air conditioning where many Nestle products along with
Nescafe are stored for distribution other channel members.It is one of the most
basic parts of the order processing and fulfillment process.Itcan be said that
these distribution centers are
company owned warehouse. It is important to note that distribution centers can
be of many types such:
Retail Distribution Center-distributes goods to retail store
Order FulfillmentCenter – distributes goods directlyto consumers
Cross-Dock facility – doesn’tnot stockthe products but distributes to other
destinations
Super Stockiest – The Company keeps their stock with super stockiestto pass it
on next channel members like wholesalers, retailers and consumers.Usually
there is a separate super stockiestfor every district.

11. Wholesalers: They buy in bulk. The company usually provides them
discounts on the bulk purchases.Wholesalers help the company break the bulk
quantities by further selling the product to retailers in small quantities.
Retailers: Retailers sell the coffeedirectlyto consumers through retail shops.
These retail shops can be traditional Kirana stores (also known as General
Trade) or Supermarkets and Hypermarkets ( known as Modern Trade). E.g. Spar
Hypermarket. Here it is important to note that because of the bulk purchases
done by hypermarkets, the company may sell its productdirectly to such channel
memberengaged in modern trade, thereby reducing number of level of channel
distribution and costs.
NESTLE primarily uses two types of product channel distribution structures in
order to deliver the NESCAFE COFFEEproducts from manufacturer to
consumers.The channel structures are as follows:
A B ConsumersRetailer(Modern Trade)
DC (Distribution Center)
ConsumersRetailer(General Trade)
WholesalerCashDistributor(Super Stockiest)
ManufacturerDC (Distribution Center)Manufacturer
In the above, we can see that Nestle uses two kinds of channel structure to
distribute Nescafe coffee to the consumers,depending on the area of operations
and available resources in that area. In the structure A, we can see that from the
factories,the product does to the distribution center (DC) where it is stocked for
further distribution. From DC to productmoves to super stockiest,who further
supply it to wholesalers? From wholesalers the product moves to retailers. In
structure A, these are traditional retailers having Kirana or traditional stores.Such

12. structure is more successfulin unorganized market. Nescafe coffee is then sold
to end consumers through such stores,where it is put to display.
In structure B, the coffee moves directlyto retailers from distribution centers.
From retailers the productis then sold to consumers.This structure is more
successfulin modern trade where retailers sell the products through
supermarkets and hypermarkets in an organized retail market. Eg. Big Bazaar,
Spar Hypermarket, Reliance Fresh etc.
Bru a strong competitor in India
Even though Nescafe was the first one to enter the instant
coffee market and had been a market leader for decades,
HUL’s Bru has grown onto become its single biggest
competitorin the recent past.
TataCoffee,though a very late entrant in this market, is also making
strides.
Analysis of Nescafe’s biggestcompetitor – BRU
 Seen as strong alternative to filter coffee
 Adapted well to consumer lifestyles
 Created lifestyle associations by linking brand, category and
consumer habits
 Strong presence in Southern India, where consumptionof coffee is
higher
 Coffeepowderavailable in a lot of variants and price is marginally

13. cheaper than Nescafe
 Influential television campaigns with Shahid Kapoor and Priyanka
Chopra in the past.
 Current brand ambassadors are Imran Khan and Anushka Sharma.
Bru has recently opened Bru World Café’s in Mumbai as an entry into coffee
retailing
Brand Challenges
Losing brand loyalty to Bru
Gaining new potential customers
Recall value
Volume Growth
Market share despite premium pricing in their segment
Reviving the long lost glory of the Brand

14. Promotion
Nescafe emphasises onthe promotionof products in all differentkinds of way.
They make sure they have make all possible communicationpossible forthe
customers to know what the products are. Nescafe make the products advertise
through radio, television, papers,PR activity, newspaper,internet, etc. The
company has made one thing sure that their logo remains the same since the
origin. This in a way made the people recognise the logo and they could
recognise the brand just by the logo,as the logo has been imprinted in the mind
of the people.The advertisementof Nescafe also are innovative and make sure
that they catch the attention of the customers and they kind of get attracted to the
products.Online promotionand PR activity also enhances the connections with
the customers and they get to know the products closely.This gives an overview
of Nescafe marketing mix.
For Ads
Nescafe Classic uses TV ads for generally remind purpose because it’s the best
known company among the instant coffee companiesso does not need to spend
on information.
For PR
In website of Nescafe,quality of their coffeeand the theme of coffee forwell
being are emphasized which can be considered as marketing PR. Moreover, they
give information about coffee farmers and praises them to show that workers and
their rights are important for the company and it builds a good relation between
public and firm.

15. For Sales Promotion
The item mostly used for sales promotion is Nescafe Mugs. Nescafe generally
offers these mugs to the one who buy one package Nescafe classic so it’s very
common.Nescafe Classic also offerssome kinds of premium for its for its 2 gr
products.
For DirectMarketing
Direct marketing for Nescafe Classic mostly appears in kiosk, vending machines.
These machines are very important because they are very fast and used by
people who do not have time to prepare coffee.
CommunicationObjective Stages
Liking
In the ads of Nescafe Classic,Nescafe emphasize on its taste to the one who
preferintense taste for the coffee.
Preference
Nescafe Classic mostly emphasize on its intense taste and its missionwhich is
waking up people in the ads. Its high quality coffee beams and their experience
for the years are also reflected.
Conviction
Nescafe Classic convinces customers by showing that it has higher quality and it
is better in waking up than the other competitors.
Purchase
Being the most known instant coffeebrand and its good promotions and taste are
the factors which make customers to buy Nescafe Classic.

16. Messagedesign
In Nescafe Classic ads, content are generally emotional and rational. They use
emotional content because they want to aware good feelings inside of people
when they see the productof Nescafe.Their purpose of using rational content is
to show product’s features like intense taste or giving energy. For structure of
ads, they generally use one-sided structure and generally draw a conclusion
which is getting energy at the end of the ads. In the ads, the color of red is very
dominant because it’s a reminder of Nescafe and also people’sbodylanguage
demonstrate that they have more energy and they are pleasure with drinking
coffee.
Personal or Non-personal communication
Because Nescafe Classic has a high market share, word of mouth is very
effective way of advertising product. Opinion leaders are also important for
Nescafe Classic because it is used by the ones who are important for regular
people.For non-personal communication, usage of major media is very high and
it is possible to see an ads related with Nescafe Classic in TV, news or
magazines every time.
MessageSource
Nescafe Classic uses differenttypes of source for its ads. In general content,
non-celebrity people are acting in ads but celebs are part of advertisements some
times, as well. They also use their mug and make them speak and reflectsome
specialties of product which can be consideredas character.

17. SOURCES OF DATA COLLECTION
 PRIMARY DATA SOURCE:
The primary data means the data gathering for first time for the
problem solution directly from the sample or population as per the
requirement.
Questionnaires
Observation
 SECONDARY DATA SOURCE:
The secondary data consists of information that has been already
exists somewhere and has been collected forsome specificpurpose.
 Website
For this research, we used Primary data (Questionnaires) as
well as secondary data (Website)

18. RESEARCH
RESEARCH INSTRUMENT:
Questionnaire-
SAMPLE SIZE:
Sample Size is taken 50

19. DATA ANALYSIS
Q1. What do you prefer the most?
Particular Responden
ts
Coffee 18
Tea 8
Both 24
TOTAL 50
Preference
Coffee
Tea
Both

20. Q2. How many times in a day would you prefer it to drink?
Particular Responden
ts
One time
24
2 times
18
More than 2 times
8
TOTAL 50
INTERPRETATION
Major of the sample size use to have coffee one time in a day.
One Time
Two Times
More Than 2 times

21. SKPIMC
S
Page 17
Q3.Why choose Nescafe?
Particular Responden
ts
Taste 37
Can buy
easily
5
Advertise
ment
4
Other 4
TOTAL 50
INTERPRETATION = From the data we can see that most of the
people drink Nescafe because of it’s taste.
Taste
Can buy easily
Advertisement
Other

22. SKPIMC
S
Page 18
Q4. Which coffee brand do you prefer the most?
Particular Responden
ts
Nescafe 39
Bru 7
Other 4
TOTAL 50
INTERPRETATION = Majority of choice about coffee is given to Nescafe.
Nescafe
Bru
Other

23. SKPIMC
S
Page 19
Q5. From where did you see this product?
Particular Respondent
s
Advertisement 20
Reference
8
Own
experience 22
TOTAL 50
INTERPRETATION = Majority of people are choice Nescafefrom their own
experience.
Advertisement
Reference
Own experience

24. SKPIMC
S
Page 20
Q6.Are you satisfied with the productand advertisement?
Particular Responden
ts
Yes 35
No 15
TOTAL 50
INTERPRETATION = Most of the people of our survey are satisfied
with the productand its advertisement.
Sales
Yes
No

25. SKPIMC
S
Page 21
30
25
20
15
10
5
0
Yes No
Q7.Were you influenced by the brand ambassador
of our product and started drinking it?
Particular Responden
ts
Yes 30
No 20
TOTAL 50

26. SKPIMC
S
Page 22
Q8. How frequently do you buy it?
Particular Responden
ts
Every
week
19
15 days 23
1 month 8
TOTAL 50
INTERPRETATION = The area which we have survey we found that
23 out of 50 are buying coffeein 15 days.
Every week
15 days
1 month

27. SKPIMC
S
Page 23
Q9.Where do you prefer drinkingit?
Particular Responden
ts
At home 22
In café 13
Roadside 15
TOTAL 50
INTERPRETATION = Most of the people are prefer to drink coffee at home.
At home
In café
Roadside

28. Q10. Which one does you prefer ?
Particular Respondents
Caffeinated 14
De-
Caffeinate
d
36
TOTAL 50
INTERPRETATION = Most of the people love to drink de-caffeinated
coffee.
Caffeinated
De-Caffeinated