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Nescafe

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Nescafe

  1. 1. PRESENTATION BY: ANIKA 06 SHRUTI 59 SONIA 60 TARVINDER 64 PRESENTATION BY: ANKIT 08 MAUSAM 32 MEGHNA 34 VIKAS 67 CORPORATE HEAD: ANSHUL JAIN 09
  2. 2. NESTLE <ul><li>Nestle had setup its first plant in 1961in MOGA (PUNJAB) </li></ul><ul><li>The company is acknowledged as one of the leading companies in the FMCG sector with “ Top rated wealth creators of India” </li></ul><ul><li>It is progressively evolving into food,beverage,nutriton,health, wellness and touching lives of people. </li></ul><ul><li>Nestle India has strong brands like Maggi, Nescafe, Cerelac, Lactogen, kit Kat polo, Milo and Polo. </li></ul><ul><li>It has set up “café nescafe” and “coffee corners” in mini metros. </li></ul><ul><li>Nestle is leveraging the vast consumer base in India. </li></ul><ul><li>There has been continuous focus on values. </li></ul>
  3. 3. NESCAFE In Hebrew, the word ‘NES” means MIRACLE & ‘CAFÉ’ means COFFEE So, together it’s a miracle with coffee. Nescafe leads the market of instant coffee with Rs.361 crore. Nescafe believes in innovation, improvement, thrust on value for money. The company’s beverage products generate 22% of the company’s total revenue. Nescafe has pushed into more diverse media. Global Coffee market is segregated into three segments : Instant coffee roast and ground coffee chicory
  4. 4. Marketing strategies <ul><li>Nescafe FMCG giants wants to be a “preferred client”. </li></ul><ul><li>Strike a balance between tapping into local knowledge of markets and disseminating global practice. </li></ul><ul><li>Communication efforts are directed effectively and with maximum return on investment. </li></ul><ul><li>To work with the limited number of agencies so that they really know the business. </li></ul><ul><li>Encourage its agencies and employees by making changes in remuneration. </li></ul><ul><li>Nescafe has even in the past, resorted to low-key market penetration strategies. </li></ul>
  5. 5. Distribution channel <ul><li>Mc cann and publicis mojo is the lead global agency of Nescafe. </li></ul><ul><li>2. Products are sold throughout India and also are exported to russia,hungary and several other countries. </li></ul><ul><li>3. Visibility and availability of product had been supported by smaller stock keeping units. </li></ul>
  6. 6. <ul><li>NESCAFÉ coffee mate 3 in 1- 50g, 100g, 200g </li></ul><ul><li>NESCAFÉ Blend 43 - 50g, 100g, 150g, 250g, 300g, 500g, 1kg </li></ul><ul><li>NESCAFÉ Espresso - 50g, 150g, 250g, 300g </li></ul><ul><li>NESCAFÉ Cafe Menu Frothy Coffee - Box of 10 sachets  (Caramel & Vanilla, Mocha & Latte, Cappuccino, Hazelnut & Cinnamon)    </li></ul><ul><li>NESCAFÉ Cafe Menu Iced Frappe - Box of 10 sachets (Latte, Mocha, Caramel) </li></ul><ul><li>Nescafe instant coffee classic </li></ul>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. Product
  7. 7. Place <ul><li>Available: Nescafe coffee corners, Nestle consumption zone, </li></ul><ul><li>vending machines - in offices, colleges , Departmental stores and places </li></ul><ul><li>where footfalls are higher. </li></ul><ul><li>Nescafe 3in1a milder version of coffee was firstly launched in Delhi </li></ul><ul><li>and now being introduced to northern and western markets also. </li></ul>
  8. 8. Price Promotion 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 <ul><li>Nescafe has been doing 360 degree promotional activities like </li></ul><ul><li>Crm, pop, vending machine network etc. </li></ul><ul><li>The top companies markets spend 40% of their budget on TV </li></ul>
  9. 9. SWOT S W O T <ul><li>Great leap forward in Media,Crm,Pop. </li></ul><ul><li>Domination in instant coffee market by 55.3% share </li></ul><ul><li>Sustained improvement in customer service levels. </li></ul><ul><li>Agencies, spent all their time fighting each other. </li></ul><ul><li>Adopted a pricing strategy higher than competitors </li></ul><ul><li>Nescafe sunrise has no distinct identity </li></ul><ul><li>Amalgamated Bean Coffee Trading Company coming up with R&G coffee chains </li></ul><ul><li>India’s growing market non-traditional coffee distribution channels by Rs.1900 crore. </li></ul><ul><li>Non-trading retailing coffee channel by the sale of Rs.600 crore. </li></ul>
  10. 10. Hindustan uni lever <ul><li>HUL formed in 1933 and earlier known as lever brothers India ltd. </li></ul><ul><li>HUL’s distribution network is recognized as one of its key strength. </li></ul><ul><li>HUL mission is to “ add vitality to life” </li></ul><ul><li>It touch consumers with three way convergence- </li></ul><ul><ul><ul><li>Product availability </li></ul></ul></ul><ul><ul><ul><li>Brand communication </li></ul></ul></ul><ul><ul><ul><li>High level of brand experience </li></ul></ul></ul>
  11. 11. <ul><li>BRU the coffee brand from the HUL stable and was launched in 1969 . </li></ul><ul><li>Bru green label, the largest brand in filter coffee gives you original taste of filter coffee. </li></ul><ul><li>The patrons of this 40 yrs old brand would say its “the aroma to come home&quot;. It gives the real taste of coffee. </li></ul><ul><li>Growth through power brands – bru is one of them. </li></ul><ul><li>At forefront it has innovated instant coffee category- coffee chicory blends, refill packaging , vending operations and low price unit packs etc. </li></ul>Introduction “ Happiness begins with Bru”
  12. 12. PRODUCT PLACE <ul><li>Varieties of coffee: Bru frothy coffee, bru iced frappe, bru instant coffee and bru Malabar roast and ground coffee. </li></ul><ul><li>HUL has just came up with a premium brand of R&G coffee, Bru Malabar (Blend of 90% coffee & 10% chicory). </li></ul><ul><li>Bru is available in leading general stores, & in any HUL’s exclusive Shoppe etc. </li></ul><ul><li>The roasted & ground coffee is mostly consumed in southern India hence BRU has a big market over there. </li></ul><ul><li>Bru Malabar is also targeting southern market, Tamilnadu & Karnataka </li></ul>
  13. 13. PRICE PROMOTION <ul><li>Price leaders being low cost products. </li></ul><ul><li>BRU malabar200gms is available for Rs.38 which is Rs.9 less than its own brand green label. </li></ul><ul><li>Instant coffee: </li></ul><ul><li>Weight Price </li></ul><ul><li>promotion by the mean of live holdings . </li></ul><ul><li>Print media, electronic media, internet & many other promotional activities like kiosk, free samples in shopping malls & public places. </li></ul>
  14. 14. S W O T SWOT <ul><li>Bru is a Leader of filter coffee whose market share is 3 times over the instant coffee market . </li></ul><ul><li>Lower prices offered of the product than Nescafe . </li></ul><ul><li>Strong distribution channel being a product of HUL </li></ul><ul><li>Despite of capturing 2.6% market share of Nescafe in R&G coffee sector bru is still the no 2. </li></ul><ul><li>Coffee outlets and vending machines are missing from the market unlike Nescafe. </li></ul><ul><li>Less number or variety of products </li></ul><ul><li>The market of roasted and ground coffee is for Rs.511 crore so bru can still do a lot with this market . </li></ul><ul><li>Now HLL is HUL hence bru can expand globally </li></ul><ul><li>In this competitive era bru reduced its prices to an extend which might reduce its profits as well. </li></ul>
  15. 15. COMPARITIVE ANALYSIS

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