Nestles

4PS Challenge
PHASE II

Team Hide n Seek

Abhishek Besera +91-8175064012
Sakshi Gupta
+91-7054246538
Shipra Saini
+91-9968012342
Udit S. Hembram +91-9771529774
POC Email ID- pgp30048@iiml.ac.in
Adventure in life is good, Consistency in coffee even better

Identify the right target segment for brand

Research Methodology
Secondary
Research
Research
Papers
Hewlett, P., &
Wadsworth, E.
(2012). Tea, coffee
and associated
lifestyle factors.
British Food
Journal, 114(3), 1.

Characteristics
Gender
Age

Profession

Family income

Home region

Category
Choice of drinks

Primary Research
Qualitative
Research
In-depth
interview
Focus Group
Discussions
Observing
consumers

Quantitative
Research
Online
Survey

Consumption frequency
(Per day)

Place of consumption

43 surveyed
Age: 15-45
(Pan India)

Classification
Frequency Percent
Male
29
69%
Female
13
31%
<20
3
7.14%
20-25
33
78.57%
>25
6
14.29%
Student
31
74%
Housewife
0
0%
Service/jobs
7
17%
Business
2
5%
Other
2
5%
Up to 20000
5
12%
20000-40000
4
10%
40000-60000
10
24%
60000-80000
4
10%
More than 80000
19
45%
North
34
81%
South
2
5%
East
2
5%
West
4
10%

Consumption patterns
Classification
Hot coffee
Cold coffee
Hot tea
Ice tea
1-2 cups
2-4 cups
4-6 cups
More than 6 cups
At work
At home
During commute
At coffee shop

Responses Percentage
11
26%
28
67%
14
33%
12
29%
29
69%
8
19%
4
10%
1
2%
14
33%
15
36%
1
2%
12
29%

Segment

Time

Attributes ( acc.
to ranking)

Perceived
Benefits

Light
Drinkers

Evening
snacks

Taste, Flavor,
Aroma, Brand

Awake,
Prefer Tea,
Freshen up

Medium
Drinkers

Breakfast
and Nights

Flavor, Taste,
Aroma,
Availability

Freshen up,
Awake

Heavy
Drinkers

Breakfast

Flavor, Aroma,
Taste, Impact on
health

Freshen up,
Socialize

Cluster Analysis
ANOVA

To understand the demographic &

psychographic characteristics
consumers of Nescafe

KEY HYPOTHESIS

A/R

H1: The caf visitors typically belong to 3 segments:

trendy lot, value seekers, taste aspirants
H2: For the trendy lot ambience & variety of beverage
are the top 2 criteria for choosing a cafe
H3: For the value seekers promotional offers & value
for money are the top 2 criteria for choosing a cafe

Based on frequency of coffee consumption

Light drinkers (69%) : 1-2 cups per day
Medium drinkers (19%) : 2-4 cups per day
Heavy drinkers (10%) : 4-6 cups per day
Based on place of consumption
Light drinkers: who drinks at home- 36%
Medium drinkers: who drink at work- 33%
Heavy drinkers: who drink at coffee shops- 29%
(Looking for variety and experience)

20%

30%

Fashionable (29.9%)
Follow latest fashion
Love to socialize and hang out with friends
Do not hesitate to try new products

50%

Value Seekers (50.18%)

Make proper planning before
buying
Price sensitive
Actively seek promotional offers
and discounts during purchase
21%

51%

28%

26%

27%

47%

Taste Inclined (19.85%)

Have specific preference to likes and
dislikes
Little hesitate to try out new
products
Brand loyal

Light Drinkers
Heavy Drinkers
Medium Drinkers

Define a consumer proposition for the existing

portfolio
Brand Proposition

Key Insights
Tea is a customary beverage. Preferred by all family
members and it is economical.
People who prefer Tea said that Coffee lacks the variety.
People preference of coffee based on seasons. Teenagers
preferred cold coffee.
People perceived benefits from coffee are it tastes good,
it is easy to make, it boost your energy and it is a great
way to socialize.
Milk is a key ingredient of coffee. While milk has a
perceived benefit of health coffee does not have any
synergy with it.

12 consumer interviews
Age: 20-50 Years
7 Males, 5 females
Location: Lucknow

First FGD: 5 Males

Age: 21- 26 Years
Respondents: Orissa,
Mumbai, Delhi,
Hyderabad, Kochi

Second FGD: 4 Females

Age: 21-25 Years
Respondents: Delhi,
Jaipur, Kerala, Pune,
Gujarat

When I want to
hangout with my
friends, I always
prefer coffee
I need coffee to start
my day, it gives me
freshness and energy for
the entire day

Voice of Customer

Attribute Analysis
Nescafe is premium
to me so I buy it for
my special guests
I tried Bru but
Nescafe has a
better taste and
love it

Brand Recognition Test

FGD
IDI

Attributes

Nescafe

Bru

Narasu

A distinct taste with

each offering from
strong to mild coffee

Energizing

Taste

Evidence

Promisor

Freshness

Aroma

Compelling

Differentiator

Every time the

consumer makes coffee
the content in package
should not stick/harden
Mr.Bean
on exposure

Taste

Smell should be
stimulating and
similar to fresh cocoa
beans

Perceptual Map

Aroma(smell)

Strong Aroma

5.5

Flavor

nescafe
bru

Price

tata caf

4.5

Availability

narasu

Rich quality coffee

beans

Nescafe

Bru

60% Wrongly identified

70% Wrongly identified

75% Wrongly identified

Mean value

Appropriate caffeine level

to energize the senses
Health related benefits
substantiated by 3rd party
health officials

50% Wrongly identified

Dis-Balance is people perception and the Brand recognition test

People perceived that Nescafe is better than Bru in taste but

according to brand recognition test most of the people
wrongly identified the brand
Highest
Second Highest

Advertisement
creativity
Freshness
Natural( free from
preservatives)
Ease of preparation

3.5

High Price

3
0

0.5

1.5

2.5

3.5

4.5

5.5

2.5

Low Price

2
1.5
1
0.5
0

Weak Aroma

Provide suggestions for new product offering. Including 1)Target segment 2)Product information 3)Format
4)Pricing strategy
Why NOT Repositioning?
Pricing
Product

With 36.6% market share we are the market leader

High Brand Recall
Among all the 10 attributes compared with its
competitor, Nescafe outscored on all parameters

Emphasis on taste as it is the most important attribute for Price is not a demotivating factor for coffee consumption
consumers but there is no differentiation within the
Nescafe cold coffee must follow high value strategy
brand
( product is high on quality and medium on price)
Premium product which has rich quality
This should help penetrate the market
Focused on cold coffee offering
New products benefits- energizing and have a caffeine
level which is beneficial for health

GAP
Need Gap Analysis

Coffee consumption habit is under

developed
No taste distinction from its
competitor brand
Health related concerns towards
coffee consumption
Fewer option in cold beverage

Promotion
Nescafe cold coffee variant should be promoted
as an alternative other cold beverages
Youth icon especially sportsmen promoting Nescafe
cold coffee as energizing and rejuvenating drinks
Advertisements that establish coffee ingredients
causes no health concerns
Packaging should be sleek and accompanied with
shaker.
Brand mantra for every man who doesnt like to
race blindly and likes his drinks cold
Sponsor talk shows or music shows on youth
channels(MTV,BINDASS)

New Product Offering

Market Penetration

Target segment : Light

drinkers

They drink at home

Largest share of 69%
Cold coffee preparation easier at home

Packaging

Nescafe
Bright

Place
Intensive distribution strategy
Covering convenience stores, super/hyper markets and
departmental stores in metropolitan cities and Tier 1 and Tier 2
Since similar category product thus follow the current
distribution channel

Conducted IDI and asked about their buying behavior for Nescafe and Bru gold

Bru has much attractive packaging then Nescafe

Triangular shape and packaging is better in Bru Gold

Bru is perceived as expensive for this particular SKU

Nescafe packaging cannot resemble coffee, it looks like almond oil

Nescafe looks unnatural

I will prefer Nescafe because I love this brand

I am a price sensitive consumer and Bru is much attracted then nescafe so I will go for Bru

Limitations
of the study
Majorly data is from north
India (almost 90%)
No direct competitors of
Nescafe apart from Bru
Sample size of in-depth
interview and focused group
discussions are small and
limited to Lucknow

Media Strategy | Budget Allocation of Rs. 34,35,96,960 | BookMark Campaign for Increased Brand Recall | Product Placement In Movies

Budget Allocation

Final Budget = Rs. 34,35,96,960

Total Sampling Cost = Rs.64,03,040
Regional National Radio
Weighted
Average
Weighted
Percentage
Final Allocation
Millions(Rs)

TV

Facebook Twitter YouTube Total

68.18

81.82

1.00

38.46

36.0%

43.2%

0.5%

20.3%

123.62 148.35

1.81

69.74

0.018
0.016 189.50
0.0095
0.0037%
% 0.0084% 100.0%

buses, trains and

platforms to cater the
larger audience

0.0288 343.60

Communication Objective

Youth

Pull strategy, Use of celebrity, social media

Males

Sports events sponsorship

Young adults

Push strategy, Cafes and restaurants

Large audience

TV commercials and cinema

Elder people

Print media and radio

Introduction of movies with brought to

you by Nescafe bright
Decision factor: Movie target audience,
youth based story

5 Other banners will be

displayed in office/school
canteens and near cafs

TV Theme: Refreshing, Fashionable and Fun

Communication strategy

Non integrated
explicit
product
placement

Target audience

CINEMA

To increase the awareness of the benefits of coffee to the target

audience
Create the awareness about the POD from its competitors
Focus on brands value awareness
Reposition of brand as younger, fun, fashionable and refreshing
To maintain the preference of brand in consumers (as it is considered as
a synonym of coffee)

Intensive marketing in the

month of March and April

3 It will be displayed in

0.007

0.0127 0.0326

Banner

TV

Reinforce the TV
commercial with similar
theme but will not be
detailed

4 Focused on

school/University and
office commuters
General banners
will be displayed
in major cities
like Delhi,
Gurgaon,
Mumbai,
Kolkata
Chennai

a refresh start with

Take
Nescaf
For office goers: new day,
new project or a new start
must have a Nescaf

Communicate the events when they can have Nescaf:

Press
2 Target audience: :

Place ad on front
page of
newspaper for
larger audience

Young Adults &

Adults
Young audience:
colorful with more
visual effect

Place ad on journal
on last cover page
as it will be more
visual
4
Back page Idea: Nescafe
Bookmarks
Rationale:
Book reading during
free time &
preference to drinks
during that time
Focus on Spring &
Collection of
Magazines
Media: Newspaper &
Travel, Food Magazines

Sports and Talk shows ,

a night before exam- to feel fresh concentrate better
5 Sponsorship in IPL &Association
after a hot day: have Nescaf cold coffee and refresh yourself
with talk shows and youth shows
Chilling in your home with your friends and having Nescaf
mainly MTV, Channel V
Summer season: offering
different flavors for cold coffee
Winter season: Advertising
related on hot coffee

4 For youth
Follow your passion, try something
new today, but first have your cup
of Nescaf

Channel Identification | Point of Sale execution Idea | Lean Marketing

| Guerilla Marketing Ideas

Current rating

Channel structure requirement

Replacement rate

High

Product must be in higher weighing S.K.U to last

longer and reduce frequent purchase

Gross margin

Low

Consumer products like coffee usually have lower

margin, so pricing of SKU should be high enough to
be affordable yet providing higher margin

Adjustment

Low

There are no value added services required in this

product category

Time of consumption

Low

5 minutes

Searching time

low

Product should be available in nearest retail shop to

enable reduced search time

Point of sale execution (1)

1 Alignment with objective: Increasing visibility of
2

Nescafe Bright
Dept. store/Supermarket/hypermarket
A new product launch will need a separate
floor stand which will have only Nescafe
SKUs to increase brand recall
A counter display should be around cash
counter with small SKUs for impulsive buyers

Consistency in shelf display

3 At community retailer, 5
small SKUs will be
pushed so that it will
increase the trial of the
new product

6
4 Display of products in
community retailer on
the cash counter

will lead to brand

association with customer
irrespective of channel
Retailer incentive scheme in
order to increase the
throughput from the stores(
Nescaf own outlets)

B2C

Margins

Nescafe

Sale price

C&F Agent

4%

Regional distributor
Retailer

7%

Consumer

Market
price

Lean marketing and guerilla marketing

Use the cups of coffee with

different amount of coffee in it
It will give various colors for
every cup of coffee
Make a mosaic using these cups
Shoot the activity and publish it on YouTube

Margins

Nescafe

Sale price

C&F Agent

4%

Businesses/ organization

5%

CAFEs, RESTAURANT, BAKERIES, NESCAFE

OUTLETS

At the P.O.S during scanning of The billing will add 2 sachet packs of
product for billing
Nescafe bright free of cost that can be
If the product in basket had any
taken from Nescafe counter display
of the following product of any This will lead to trail of our product
brand : tea packets, bags or
Basic requirement- integration
competitor coffee brands
with billing system
That sachet will have discount Basic premise-consumers would
codes that can be redeemed in like to try a product thats for free
next purchase for a higher
given at the P.O.S billing counter
weighing S.K.U
Target channel supermarket

B2B

5%

Timeline

Aspin wall approach

Channel structure

Channel structure

Channel Design Criteria

Choice of Point of Sale

S.K.U
2.5 gm. sachet
4.5 gm. sachet
25 gm.
50 gm.
200 gm.
500 gm.

Point of sale
Community retailer
community retailer &
department store
Dept.store/Supermarket/
hypermarket/online
grocery store

Roadmap for sampling | Total Sampling Budget 1,32,08,000 (4% of 350) | Target Cities: Delhi, Gurgaon, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Pune
Phase 3: Colleges & universities

Try something new today

Put kiosks of Nescafe at each touch points( with tagline: Try something new today
Provide options of 3 variants of Nescafe BRIGHT as hot and cold coffee
Take feedbacks about the experience, by providing them with feedback cards
To induce coffee trial among the regular tea drinker

Cost of 8
cities

5000

5000

50000

4,00,000

Coffee vending
machine

12000*2

24000

240000

1,920,000

Sales personnel

500*2

3000

30000

2,40,000

300

7*300

2100

21000

1,68,000

Cup per cost

27,28,000

Kiosk

Cost head

Cost
for 3
days

Cost of 5
touch
point

Cost of 8
cities

1000*2

2000

10000

80,000

Coffee vending
machine

Sales personnel

500*2

3000

15000

1,20,000

Service cost

5000

15000

75000

6,00,000

Cup per cost

7*500

3500

17500

1,40,000

Standee

Cost
unit

Total Cost 940000

Approx. targeted customer 500

Days : 3 Touch Points : 20 Cities : 8

Phase 2: Office canteen and at the gate of the office

Press

Cost of
10
touch
point

Photograph To Autograph

Cost of 8
cities

Approx. targeted customer 300

Days : 3 Touch Points : 20 Cities : 8

Cost
for 3
days

Total Cost

Approx. targeted customer 300

Days : 3 Touch Points : 10 Cities : 8

Cost unit

Cost of
10 touch
point

10,08,000

No.

Cost for
3 days

Total Cost

Consumer: Working professionals and college students who are

predominantly male (influencers in purchase decision for being major
consumers of coffee)
Household: Females go to buy the daily products (customer)but
buying decision is influenced by the preferences of males & teens
(consumer)
Phase 1: Gate of famous park and housing societies
Cost head

Cost
unit

Purpose:To drive brand awareness and

enhance involvement of consumers with the
Standees(2)
0
0
0
0 brand
Put a stall of Nescaf with a
Coffee vending
0
0
0
0
mannequin/human like sculpture of
machine(hot and
celebrity brand endorser like Deepika
cold)
Padukone in a round table setting having
Sales personnel(2)
500*2
3000
15000 1,20,000
coffee, people can come an click their
photograph with her.
Service cost
3000
9000
90000 7,20,000
One day event with prior advertisement In the local news and social
Cup per cost
7*300
2100
21000 1,68,000
media about the affair
This will be an offline campaign associated with online campaign
Also, sampling in the Office and student canteens will help us focusing on B2B
Put the photograph on social media, maximum Likes, share and
channel. If the sampling will be successful then we can negotiate with these
companies and institution for bulk ordering.
comment in total will get the chance to have a sip of Nescafe with their
favourite actress Deepika Padukone
Concept Connect Propensity
Idea
Idea
appeal
with
to consume uniquen recall
Touch Points: 10 Malls
idea
in future
ess
Late teens and young adults who visits malls frequently and love to click
and share photographs . People who aspires their favourite stars will be
TV ad
6
7
7
5
7
the target.
Bookmark 7
7
5
7
7

Cost head

Cost unit

Cost at 10
touch points

Total
cost at 8
cities

Ad

Banner

Photograph to
autograph

Mannequin/ Life size

Sculpture

6000

60000

4,80,000

Sports and talk

show

Round Table

4000

40000

3,20,000
1,67,040

6960/(33*25cm)half
page

20,800

Kiosk

Advertisement in (3)
newspaper

5000

50000

4,00,000

7*500

35000

2,80,000

2*500

10000

80,000

Result Analysis

Cost head

Selected 10 resident of Lucknow to conduct feasibility study

TGs asked to rate parameters on 1-7 scale
Service cost at malls
All product have a high on propensity to consume and connect with
the idea, solving two major challenges of consumption and awareness Cost per cup
Other factors also suggesting high appeal, recall and likability by our
Sales personnel
TG