Study of Customer Satisfaction of Caf Nescafe

TABLE OF CONTENTS
SR.N
O.

TOPIC

PAGE
NO.

1.

EXECUTIVE SUMMARY

2.

RESEARCH PROBLEM & OBJECTIVE

3.

INTRODUCTION

4.

CAF NESCAFE

5.

KEY FEATURES

11

6.

PRODUCTS OFFERED

12

7.

CUSTOMER PROFILE

13

8.

COMPETITORS

14

9.

BARISTA

15

10.

CAF COFFEE DAY

16

17.

RESEARCH METHODOLOGY

17

18.

DATA ANALYSIS

19

19.

CONCLUSION

39

20.

LIMITATIONS

41

21.

RECOMMENDATIONS

42

22.

SUMMARY

43

23.

QUESTIONNAIRE

44

24.

BIBLIOGRAPHY

50

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Study of Customer Satisfaction of Caf Nescafe

RESEARCH PROBLEM
To measure the customer satisfaction of caf Nescafe across Mumbai
RESEARCH OBJECTIVE
1. To understand customer expectations.
2. To understand the likes and dislikes of customers among the present offerings.
3. To identify problem areas in serving the customers.

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Study of Customer Satisfaction of Caf Nescafe

WELCOME THEN TO THE WORLD OF COFFEE SHOP THE CAF NESCAFE

INTRODUCTION

The beginnings of Nescaf can be traced all the way back to 1930, when the Brazilian
government first approached Nestl. The coffee guru, Max Morgenthaler, and his team
set out immediately to find a way of producing a quality cup of coffee that could be
made simply by adding water, yet would retain the coffees natural flavor. After seven
long years of research in our Swiss laboratories, they found the answer.
The new product was named Nescaf a combination of Nestl and caf. Nescaf first
introduced in Switzerland, on April 1st, 1938. For the first half of the next decade,
however, World War II hindered its success in Europe. Nescaf was soon exported to
France, Great Britain and the USA. Without realising it, America played a key role in
re-launching Nescaf on the continent by virtue of the fact that it was included in their
food rations. Its popularity grew rapidly through the rest of the decade. By the 1950s,
coffee had become the beverage of choice for teenagers, who were flocking to coffeehouses

to

hear

the

new

rock

roll

music.

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Study of Customer Satisfaction of Caf Nescafe

It is currently estimated that, on average, some 3,000 cups of Nescaf are drunk every
second. We think youll agree, Nescafs come a long way since 1938 and we all owe
a lot to Max Morgenthaler and his team!
Coffee major Nestle launched its globally popular coffee bars, `Cafe Nescafe', all over
India in the year 1999.
The Nescafe brand of coffee has a presence in over a hundred countries. A couple of
years ago, the company launched its coffee bar concept in markets across the world,
including Japan and UK, as a novel method of communication about the brand.
Cafe Nescafe has introduced Indian palates, used to the taste of traditional `filter
coffee', to a variety of ways the drink is enjoyed the world over. The coffee bars have
on offer a range of specialty Italian coffee, like the Cappuccino, Moccacino,
decaffeinated black and white and Nesquik hot chocolate and Nestea among hot
beverages.
The coffee bars also have a range of cold beverages, including cold coffee, iced teas
and coffee in lemon and strawberry flavours, to begin with.
The first Cafe Nescafe was soft-launched at a hip shopping mall in Pune. It has for its
neighbours, Ms Simone Tata's Westside and the old favourite shopping spot,
Dorabjees. The companys concept has grown through franchisees.
Nestle has used the caf concept to tap the large `out-of-the-house, impulse
consumption' by urban families that regularly spend time out at large shopping malls,
combining shopping with entertainment. The company also opened its cafes at places
where the hip and the young crowd hang out, as also multiplexes.

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Study of Customer Satisfaction of Caf Nescafe

Cafe Nescafe is positioned as a premium product by the company. The company plans
to stimulate the coffee market by promoting coffee drinking as a `with it' thing to do
for people across all age groups.
The coffee bars, are also used to increase awareness of Nestle's range of products with
a designated counter which will have on offer its range of confectionery, tentatively in
gift packs.
Globally, the company has a chain of such coffee bars. In the UK, for instance, they
can be found at service stations. The company promotes the coffee bars through
special events and speciality coffee themes.

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Study of Customer Satisfaction of Caf Nescafe

KEY FEATURES

To combat the rapid growth in the out of home fresh coffee market, in 1999 Nescafe
launched Cafe Nescafe. This builds on the strong loyalty of the brand which
traditionally is viewed as an in-home product.
Pioneers of the Caf
Essentially a youth oriented brand with majority of its customers falling in the 15-29
year age bracket
Each caf, depending upon its size attracts between 400 and 800 customers daily
At present it operates 147 cafes across 38 cities
Plans to operate 200 cafes by March 2006
It is a place where customers come to rejuvenate themselves and be themselves.
USP of the Brand
- Affordable Price
- Best Coffee Winner of Platinum, Gold, Silver and Bronze medals at the India
Barista Championship 2002
- World Class Coffee Experience

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Study of Customer Satisfaction of Caf Nescafe

RANGE OF PRODUCTS OFFERED
Espresso
Strong black coffee ...no frills.
Espresso Americano
Lighter espresso for mellow moods.
Macchiato
Expresso topped with milk foam.
Cappuccino
The hottest selling item,prepared in true Italian style.
Cafe Latte
Espresso with milk. A light coffee.
Chococinno
A sinful combo of chocolate ice & hot coffee.
Cafe Mocha
Hot coffee with a swirl of chocolate.
Irish Coffee
Whipped cream tops the flavour of your choice.
Plunge deeper and discover light espresso.
Nestea (lemon/peach)
Lipton iced tea flavoured with lemon or peach
ICE BLENDED COFFEE
Cold coffee blended with ice
Strawberry Colada
Rich strawberry shake. With whipped cream
Nescafe 3 in 1

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Study of Customer Satisfaction of Caf Nescafe

CUSTOMER PROFILE

Research shows that 37% of the customers are between 20 and 24years.
27% of the customers are between the age group of 25-29 years.
60% of the customers who visit the caf are male and 40% are female.
52% of customers who visit the cafes are students.
18% of the customers visit the cafes daily while another 44% visit weekly.
Each caf, depending upon its size attracts between 1000 and 2500 customers daily,
mainly between 4pm and 7 pm.
Customers describe Caf nescafe as the place they frequent most after home and
workplace/college. It is a place where they meet friends and colleagues, in groups of
3 or more.
The prices here are perceived to be reasonable and it is a place where customers come
to rejuvenate themselves and be themselves rather than a place to be seen at vis a vis
other cafes.
Company focuses on placing its product in every market.
It is trying to capture even the rural area by supplying low price packs.
Company has opened is coffee shops at a different places targeting every segment of
market.
o a) Low income group
o b) Middle income group
o c) High income group

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Study of Customer Satisfaction of Caf Nescafe

MAJOR COMPETITORS

BARISTA
The Barista Coffee Company Ltd. operates through a chain of Espresso Bars
under the "Barista" brand name.
Currently, Barista in India has over 130 Barista Espresso Bars and Corners.
Coffee major Barista Coffee Company Limited has been recently listed among
the top 100 brands in India by Super Brands India- the Indian Division of the
globally renowned Super Brands Ltd.
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Study of Customer Satisfaction of Caf Nescafe

The first outlet came up in March 2000 in New Delhi, in the north of India,
generally considered a tough region to crack as far as coffee goes, with tea being
much more of a universal beverage.
In 2001 the company, had 60 coffee bars in 12 urban centres, which went up to
80 by March 2002 in 14 cities. The number of Barista outlets reached 150 by
March 2003, in 25 cities - that's a lot of coffee swirling around!
TYPES OF PRODUCTS AVAILABLE
Coffee is the speciality of Barista. But for the connoisseurs, Barista also offers snacks
and pastries. It also has a vast variety of ice creams to offer its customers.
In coffee,items like Cappuccino, Expresso, Caffe Mocha, Caffe Americano and the
like are consumed more.

Caf Coffee Day

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Study of Customer Satisfaction of Caf Nescafe

A lot can happen over coffee

HOT
COFFEE

It was in the golden soil of Chikmagalur that a traditional family owned a

few acres of coffee estates, which yielded rich coffee beans.
Soon Amalgamated Bean Coffee Trading Company Limited, popularly
known as Coffee Day was formed. With a rich coffee growing tradition since
1875 behind it coupled with the opportunity that arose with the deregulation
of the coffee board in the early nineties.
Coffee Day began exporting coffee to the connoisseurs across USA, Europe
& Japan. In the calendar year 2000, Coffee Day exported more than 27000
tonnes of coffee valued at US$ 60 m to these countries and, for the second
time in its short career of 7 years retained the position as the largest coffee
exporter of India.
Caf Coffee Day currently owns and operates 147 cafes in all major cities in
India. It is a part of India's largest coffee conglomerate named Coffee Day,
Rs. 200 crore ISO 9002 certified company. Coffee Day's most unique aspect
is that it grows the coffee it serves in its cafes.

Nescafe sales and Pricing

Strategy
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Study of Customer Satisfaction of Caf Nescafe

Nescafe classic:

Small packet of 1 rupee, 10 rupees.

Jar or Bottle for 54 rupees.

Nescafe mild is now also available in small sachet of 1 rupee.

Following is a comparative study of prices of basic products between Nescafe and its

competitors:
Product

Nescafe

Barista

CCD

Cappuccino

Rs . 35

Rs . 56

Rs . 52

Caf viennois

Rs. 38

Rs . 64

Rs . 61

Esppresso

Rs. 42

Rs . 62

Rs . 59

RESEARCH METHODOLOGY
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Study of Customer Satisfaction of Caf Nescafe

An exploratory research was conducted in order the study the consumer perception
about CAF NESCAFE.
Sample Size
A sample size of 40 respondents was taken for the customer based Questionnaire.
The sample selected for customer-based questionnaire is of 30 respondents.
Research Area
The research was carried out at some of the branches of CAF NESCAFE within
mumbai.
Data Collection Tools
Data was collected using Questionnaires. The Questionnaire consisted of suitable
combination of Rating Scale, Ranking Scale and open-ended Questions in the level
of importance.
An in depth interview was also conducted while administering the questionnaire.
Sources of Data
Primary source: Questionnaire.
Secondary Sources: Data was collected from the various websites from the Internet as
well Journals of Marketing.
Importance
To enable the organizations to better understand the customer expectations and
develop further strategies based on the findings of this study.
LIMITATIONS OF THE PROJECT
Limited Sample Size
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Study of Customer Satisfaction of Caf Nescafe

This study is restricted to the geographical limits of Mumbai
Time constraint

Respondent biasness

RECOMMENDATIONS

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Study of Customer Satisfaction of Caf Nescafe

Caf Nescafe should try to convert the consumers coming once a fort night to
once a week or everyday as people coming once a fort night forms a major
chunk of the consumers.
Caf Nescafe should try to attract more number of consumers during the
morning and post evening hours by providing flexible timings or using happy
hour schemes.
It is quite evident that people visit the caf to spend time with friends rather than
consuming coffee. So seating capacity at most take away outlets should be
installed and increased.
Cabin type sitting arrangement could be provided to offer more privacy
Prices of items with less food cost and more margins could be lowered slightly,
to make them fast moving items.
Ambience of most outlets needs to be worked upon.
Service time to be reduced by doing maximum mis-en-place.
Offer more discounts and offers to attract customer.
Start concept of economeals or buy two get one free

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Study of Customer Satisfaction of Caf Nescafe

Conclusion
Having coffee while freaking out with friends has become a thing in vogue. The
concept has come to India from Europe where road side cafs are a part of day to day
life. Coffee shops in India were pioneered by Barista Coffee house, followed by caf
coffee day and caf Nescafe. Caf Nescafe opened in India in 1999. The project was
undertaken to find the customer satisfaction levels for caf Nescafe across the city of
Mumbai.
After conducting a pilot study, the opinion was that caf Nescafe has top mind share
amongst coffee lovers in Mumbai. But after completion of the project some startling
facts were unearthed. For example respondents who preferred caf Nescafe preferred
its coffee more for its quality and freshness and came to visit the coffee shop for
passing time with friends rather than consuming coffee. It was observed that majority
of the customers were in the age
group of 22-27yrs who prefer
spending their days off from their
daily schedules with friends.
Customers preferred caf Nescafe for
the pleasant atmosphere it offers and
it has been offering the expected level
of service to its customers.

QUESTIONNAIRE
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Study of Customer Satisfaction of Caf Nescafe

CONCEPT OF COFFEE SHOP
1. Do you like the concept of coffee shop?
Yes

No

2. What comes to your mind when you think of coffee shop?

_________________________________________________________
_________________________________________________________
__________________________
VISIT TO THE SHOP
3. How many times have you visited the coffee shop in the last
month?
Once Once a week Once a fort-night
4. At what time do you normally visit the coffee shop?
Morning Afternoon Evening Night
5. With whom do you normally visit the coffee shop?
Family Friends Office /Business colleagues Alone
6. How many people generally accompany you to the coffee shop?
1 person 2 persons 3 persons More than 3
7. On an average how much time do you spend in the coffee shop
in one visit:

Less than 30 minutes

30 minutes to 1 hour

More than 1 hour

8. I usually visit the coffee shop for ..

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Study of Customer Satisfaction of Caf Nescafe

Drinking coffee Business/ Professional reasons

Spending time

Relaxation Any other(please

specify)_____________

PRODUCT RELATED
9. Which products do you consume in a coffee shop?
Coffee
Snacks

Ice cream

Pastries

Cold beverages

10. If its coffee, then on a scale of 10 how would you rate the
freshness associated after consuming coffee.
10

11.Would you like to add any product category?

Yes

No

12. If Yes, please specify

_________________________________________________________
____
_________________________________________________________
_________________

13.How much satisfied are you with various properties / qualities of

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Study of Customer Satisfaction of Caf Nescafe

the products

14.Do you feel that the quantity provided is value for money?
Yes

No

SERVICE RELATED
15.Do you think the time between placing the order and receiving
the product/service is too long?
Yes

No

16.If yes, how long?

Less than 5 mins.
5 10 mins.
10-15 mins
More than 15 mins
17.Rate the current level of service at the coffee shop

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Study of Customer Satisfaction of Caf Nescafe

18.Do you want any additional service to be offered? (if any, please
specify)

19.Rate the following products/services according to your

preference for them, if they are offered by Barista (1=most
important, 5=least important)
1

a) Free internet
b) Tea
c) More outlets
d) 24 hrs working
e) Quiet corners
f) Payment through
Credit cards

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Study of Customer Satisfaction of Caf Nescafe

SALES PERSONNEL
20.Rate your experience about the sales services in the coffee shop
Extremely somewhat Neutral
Dissatisfied Dissatisfied

somewhat extremely
satisfied satisfied

a) Friendliness of sales
reps.
b) Responsiveness
c) Sales reps. Appearance
and neatness
d) Communication skills
e) Courtesy

21.Rate your experience on the following fronts:1

2
3
a) fixtures / furniture

b) display
c) cleanliness of the shop
d) store timing
e) seating arrangement

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Study of Customer Satisfaction of Caf Nescafe

22.How was your experience during your first visit (on the
following factors)?
1
a)

Product Quality

b) Service Quality
c) Ambience

d) Privacy

23.Are you satisfied with the way the complaints are handled by the
coffee shop? Rate your satisfaction from extremely satisfied to
extremely dissatisfied.
1

24.What is your probability of Definitely

Probably
Not

Probably
Not

Definitely

a) Your visit to this

coffee shop in next
one month

b) your recommending
the coffee shop
to others.
CUSTOMER PROFILE
25.Age :
16- 21 yrs
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Study of Customer Satisfaction of Caf Nescafe

22 - 27yrs
28 -33 yrs
34 & above

26.Income
3000 5000 p.m
5000 10000 p.m
above 10000 p.m
27.Gender
Male Female

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Study of Customer Satisfaction of Caf Nescafe

BIBLIOGRAPHY
BRITISH COUNCIL LIBRARY JOURNALS

SPSS MANUAL ON www.spss.com

INTERNET:
www.indiainfoline.com
www.economictimes.com
www.nescafe.co.in
www.cafecoffeeday.com
www.barista.co.in
www.google.com

www.businessline.com

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