Nescafe is an instant coffee brand owned by Nestle that was introduced in 1938. It has a global market share of 22.7% and is sold worldwide. In India, Nescafe has a market share of around 45% and competes primarily with Bru. Nescafe targets urban young professionals through positioning itself as a quality product that keeps them active. It has run various advertising campaigns in India such as "Know Your Neighbors", "My First Cup", and "The Nescafe Moments" to promote bonding and sharing over a cup of Nescafe coffee.

1. Prepared By:
Bhavin Agrawal (02)
Nikita Balar (04)
Malvi Bhatt (08)
Ishani Dave (14)
Nitin Madhavi (28)
Kushal Mehta (31)

2. Introduction
Product Type Instant Cofee
Owner Nestle
Country Switzerland
Introduced 1938
Markets Worldwide
Sales $9.8 Billion
Brand value $17.3 Billion
Website www.nescafe.com
Source: http://www.forbes.com/companies/nescafe

4. 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.
• 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.

5. Market Share of Coffee in India
0%
10%
20%
30%
40%
50%
Nescafe
Bru
others
Market Share
Market Share
45%
47%
8%
http://business.mapsofindia.com/top-brands-india/top-coffee-brands-in-india.html

6. Global Market Share of Coffee
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Market Share
Market Share
22.7
16.3
3.4 2.5 2.3 1.9
http://www.statista.com/statistics/323254/global-retail-coffee-market-share-by-company/

7. NESCAFE
• ‘Nes’ means Miracle ‘café’ – coffee; miracle
with coffee
• Product Range in India:

8. NESCAFE - INDIA
 NESCAFÉ Classic – a 100% natural coffee
 NESCAFÉ Cappuccino- a range of delicious foaming mixes available in 3
delightful flavors Cappuccino, Vanilla Latte and Choco Mocha.
 NESCAFÉ Sunrise Premium-Handpicked Arabica and Robusta beans that
are expertly roasted and granulated to give you richer aroma and a
captivating coffee experience. (Coffee: Chicory = 70:30)
 NESCAFÉ Sunrise-A special blend of select Robusta coffee beans are
specially roasted to give you great, stimulating coffee taste and aroma.
(Coffee: Chicory = 60:40)
 NESTEA ICED TEA - A special blend of natural tea and natural fruit flavor
enriched with the goodness of Vitamin C. Available in Lemon and

9. NESCAFE
• Nescafe’s Aim
– We meet the needs of the present without
compromising the ability of future generations to
meet their own needs.
• Within five years (2011-15), they have doubled
the amount of NESCAFÉ coffee bought directly
from farmers and their associations
– purchasing 180,000 tonnes of coffee from around
170,000 famers.
• Providing advice on farming and post-harvest
practices to over ten thousand coffee farmers per
year.
https://www.nescafe.com/our_ambition_en_com.axcms?ActiveID=1253

10. NESCAFE
• It also comes in varieties such as NESCAFÉ Protect and
NESCAFÉ Green Blend, a new type of coffee, which
contains high levels of naturally occurring polyphenol
antioxidants.
• All in all, Nestlé is investing CHF 500 million in coffee
projects for the ten years (2011-20).
• This includes CHF 350 million for the NESCAFÉ Plan and
builds on the CHF 200 million investment in coffee
projects over the past ten years.
• Around 4,600 cups of NESCAFÉ are consumed every
second.

11. SWOT Analysis

12. Strengths
• Strong brand name as it is associated with
Nestle
• Innovation
• Ability to penetrate tea loving market
• Products diversified into many flavors
• Promotion

13. Weakness
• People avoid caffeine if they are health
conscious
• Nescafe is known to be the choice of common
man and those pose attractive to the
sophisticated palate
• Usage rate low in tea loving country like India.

14. Opportunity
• Reduce their price according to the places
they are selling their products
• Expand their business into the rural areas
• Increase and improvise the distribution
channels in Rural areas
• Highlight health benefits of Coffee as a part of
Marketing campaigns to gain more trust and
loyalty in the brand

15. Threats
• Bru’s marketing and expansion strategies pose a
threat to the market holding of Nescafe in India
• Competitors may reach the rural Indian market
which is still untapped before Nescafe does.
• Competition from beyond hot drinks – the
expansion and diversification of soft drinks, which
are effectively targeting trends towards health
and convenience, pose a notable threat to
Nestlé's hot drinks products.
• Many people avoid coffee due to their health
reasons

16. Market Details

17. Consumer Market Details
• NESCAFÉ is available around the world in
different blends and flavours, which are
adapted to local taste.
• NESCAFÉ comes in different sizes and at
different price points
• From our affordable priced products to
premium products such as NESCAFÉ Gold or
NESCAFÉ Dolce Gusto

18. Consumer Market Details
• Nescafé’s market consists of basically coffee
drinkers, especially people who are in the
need of instant and qualified coffee that
stimulates body within a day.
• Due to its convenience, it is a quick solution
for people who want to enjoy it at home, work
or school accordingly.
– It targets each of them in different ways.

19. Segmentation (pan India)
• Geographic
– Nescafe has divided the country into four segments
Southern, Northern, Eastern and Western
– The Southern Segment consumes the most amount of
Coffee and prefers hard and roasted coffee.
– In Northern region, Nescafe instant coffee is consumed in
higher quantities.
• Demographic
– Nescafe has tried to segment every age group, families,
region, gender and different socio-economic.

20. Several Potential Target
Segments

21. Segment-1
• Geographic
– Density: Urban
• Demographic
– Occupation: Students
– Age: 15-23 years
• Psychographic
– Lifestyle: Busy
– Personality: Ambitious, outgoing
– Occasion: Seasonal (at exam times)
– Benefits: Convenience
– User Status: Potential user, regular user, first-time user
– User rate: Light user
– Loyalty Status: Medium

22. Segment-2
• Geographic
– Density: Urban
• Demographic
– Occupation: Professionals
– Age: 23-31 years
• Psychographic
– Lifestyle: Western
– Personality: Inspired, outgoing
– Occasion: In the mornings
– Benefits: Quality
– User Status: Regular user
– User rate: Medium user
– Loyalty Status: None, medium, strong

23. Segment-3
• Geographic
– Density: Urban
• Demographic
– Occupation: Managers
– Age: 46-60 years
• Psychographic
– Lifestyle: Hard-worker
– Personality: Ambitious
– Occasion: Regular
– Benefits: Speed
– User Status: Regular user
– User Rate: Heavy user
– Attitude toward product: Indifferent

24. Target Market
• When these segments are examined, it is seen
that the second one is the best potential
target market.
– Whose focus is on urban young professional
cosmopolitans with contemporary lifestyles.
– Taste, aroma of the coffee and quality is the
important element for them.
– Nescafé emphasizes on keeping them active
throughout the day.

25. Target
• NESCAFÉ is available around the world in
different blends and flavours, which are
adapted to local taste.
• NESCAFÉ comes in different sizes and at
different price points
• From our affordably priced products to
premium products such as NESCAFÉ Gold or
NESCAFÉ Dolce Gusto

26. Nescafe Overall Postioning
Nescafe’s positioning is “1 coffee cup, 1 good feeling ”
The TVCs and all Promotional Messages focus on passing love between
two person.
Sharing a cup of coffee is shown as a symbol of sharing happiness.
The Red Nescafe mug
is another popular
symbol which
associates the Brand
Nescafe with the
concept sharing
happiness.

27. Nescafe Classic is positioned as
“100% Pure Instant Coffee”
Nescafe Cappuccino is being
positioned as “A true Café”

28. Share your goodness
A film conceptualized by McCann
Erickson
Creative team: Prasoon Joshi,
Pradyumna Chauhan, Rohit Devgun
Media agency: ZenithOptimedia India
In this campaign, Nestlé will motivate
people to look into their own
experiences, share their goodness,
recognize the goodness of others,
engage with each other, and create
conversations that bring alive the
values and emotions that spread
warmth.

29. Share your goodness

30. The Nescafe
Moments

31. The Nescafe Moments
Get stories from users on social
forums to talk about their coffee
memories - how they won their
first coffee date or how they
cracked an interview over a coffee
conversation or how they bonded
with their better half over a good
cup of morning coffee or how they
bonded with their best friends
over long gossip sessions with
coffee.

32. The Nescafe Moments
Nescafe
Basement
 To promote young musical talent.
 Central theme of ‘My Nescafe Moments’
and ‘Nescafe Basement’.
 Auditions would take place in major
metros (Delhi, Mumbai, Bangalore,
Chennai, Kolkata) where we would pick 20
young and talented students having
passion for music.
 Auditions form would have a ‘My Musical
Nescafe Moment’ section keeping in mind
our central theme. Top 20 people selected
would be mentored by Shankar-Ehsaan-
Loy, keeping in mind their association with
them.
 They plan to launch this show on Channel
V to go with the youth-oriented image of
the show.
 Also, they plan potential tie-ups with a
radio station to promote the budding
artists and the show.

33. Know your neighbors
• “Know your neighbors”- Launched in Jan 2011
• Agency: Mc Cann Erickson
• Part-1
– Featuring: Deepika Padukone and Purab Kohli
– Tagline: Bring out the best in you
• Part-2
– Featuring: Deepika Padukone , Karan Johar and
Purab Kohli
– Tagline: One Nescafe Many coffee

34. Know your neighbors

35. Know your neighbors
• Part-1
– TG: Coffee drinking youth
– Positioning: liven up every moment in life;
positions coffee as a conversation starter
Competitor: Bru and other beverage brands
• Part-2
– TG: Coffee drinking youth/café goers
– Positioning: One can do wonders with coffee and
prepare café like coffee at home
– Competitors: Cafes/coffee lounges

36. My First Cup

37. My First cup
• Featuring: Deepika Padukone , Karan Johar , Vir Das
and Purab Kohli
• Product: Nescafe My First Cup
• Tagline: Its time you started
• TG: Non Coffee drinkers/ occasional drinkers
• Positioning:Urging consumers to try coffee by
positioning it as the preferred drink of urban India
• Competitor: primarily tea drinkers/ beverage
consumers.

38. Communication

39. • Slogan:
– “100% Pure”
– Remove any shadow of doubt from the minds of the
consumer when they go to purchase coffee from a
local Kirana store.
• Positioning:
– “Morning drink for the spirited soul”
– The ad very clearly depicts the usage and the time of
usage for the product
– One very noticeable thing about the ad is that most of
the jingle in the background is in English, thus ruling
out the rural sector consumers totally

40. • One of the very first commercials of Nescafe
classic in India
• Throughout the advertisement it can be seen that
the characters in the ad are sipping coffee at the
start of a day or work (Targeting morning time)
• Target People
– Youngsters
– Artists
– A book store owner
– A corporate rushing for a meeting

41. • Slogan:
– “Coffee at its best“
– This advertisement can also be seen as persuasion
to increase the usage of the product
• Positioning:
– “Beverage for any moment“
– Use Nescafe anytime in your daily schedule

42. • A slight change in the positioning from the previous
advertisement.
• Nescafe released three slightly different
advertisements following the same theme.
• The ad shows a couple enjoying the moment in the
rain, a group of friends chatting while enjoying coffee.
• Target People
– A Couple
– Friends
(Urban Youth)

43. • Slogan:
– “Behtereen Coffee, Behtereen Daam”
– Which means excellent coffee at excellent price
– This slogan is in Hindi compared to the previous
ads
• Positioning:
– This objective of this advertisement was to
generate awareness about a 1 rupee sachet of
Nescafe being available.

44. • Increase usage of the product amongst the current
users
• Convert non users to users
• Convert the competitor’s consumers to
your own consumer.
• Target People
– Mainly SEC B consumers or the lower half of the pyramid
– Also, people who occasionally drink coffee, and are
reluctant to purchase the bigger pack.

45. • Slogan:
– “Switch on the best in you“’
– Daring one to take on challenges and discover
one’s new self
• Positioning:
– The advertisement positioned the product as “the
drink that gives strength for any challenge”
– The coffee that instills confidence in you.

46. • After six advertisements they finally signed a
celebrity to endorse their brand.
• Deepika Padukone and Purab Kohli
• The advertisement was released in three parts each
stage in continuation to keep up the curiosity
quotient of the consumer.
• The product is shown as being an “ice-breaker or a
conversation-starter” for the two characters.

47. Social Media
Objective
“The main objective of the campaign is TO IMPROVE THE ONLINE
PRESENCE OF THE NESCAFE.”

48. Facebook
• Facebook page: 15,226,512 likes with 2,80,142
people talking about it
– High engagement rate
– Presence of a lot of fake fans
– No emotional connection with the brand in terms of
engagement
– Lack of content that holds “Share value”
– Lack on campaigns infusing people to participate
– Spammy: Too many posts around “like it , hit it , tag
your friends”

51. Pinterest
• With more than 509 followers, Nescafe is doing a
average job on Pinterest
• Filled with visually stimulating images, the page is a
treat for any coffee fan.
• Item level Promotions
• No emotional connection with the brand in terms of
engagement
• Lack on campaigns infusing people to participate

53. Twitter
• Can’t imagine a brand not utilizing the the power of
twitter. More so when they have a good following of
27,100.
• It seems their goal is to copy-paste certain tweets
between 9 AM to 2 PM and nothing else.
• There are no conversations.
– Apart from ‘regret’ tweets addressing complaints
from contest winners who have not received their
prizes even after 45 days!
• And there are so many coffee lovers but Nescafe hasn’t
reached out to them for conversations.

55. YouTube
• Some of their latest videos have got some good
number of views
– High engagement rate
– Emotional connection with the brand in terms of
engagement
– Frequent Postings of videos
– Use of contents that holds “Share value”
– HD videos
– Videos of 1-2 min time duration
• Frequent posting of videos