Market Analysis

2. Origin
The story of NESTLÉ coffee begins in Vevey, a small town in Switzerland,
where a pharmacist named Henri Nestlé was searching for a healthy,
economical alternative to breastfeeding for mothers who could not feed their
infants at the breast.
In 1866, his solution was ready. He called it Farine Lactee Henri Nestlé, and it
soon became popular in much of Europe. It was the birth of one of the world‘s
favorite food brands.
The NESTLÉ company soon expanded into chocolate and other food products,
but it wasn‘t until 1930 that they put their expertise into coffee.

3. Soluble coffee
Brazilian coffee meets Swiss science. That‘s how NESCAFÉ was born. It all started in
1930, when the Brazilian government asked the NESTLÉ company to create ―coffee
cubes‖. The Brazilians‘ goal was to use their large coffee surplus.
Eight years of research resulted in a coffee that could be made by simply adding water but
which retained the coffee's natural flavors.
Soluble coffee was introduced to the world on April 1, 1938. The new product was named
NESCAFÉ – a combination of NESTLÉ and café. „Nes‟ means Miracle „café‟–coffee;
miracle with coffee
During World War II, it became the staple beverage of the US armed forces and, from then
on, its popularity really took off. NESCAFÉ has become the favorite coffee of many
generations all over the world.
NESCAFÉ has over 70 years of expertise in selecting the best beans, blending, roasting
and extracting the flavor of coffee. Our commitment to quality is tested millions of times
every day by millions of coffee lovers around the world

4. NESCAFÉ- Improving the world of coffee
A soluble coffee powder process had been patented as early as 1909 in the USA. So why is NESCAFÉ so
important in the world of coffee?
 The fact is that soluble coffee only became a product worth drinking with the launch of NESCAFÉ in
1938, after eight years of dedicated work in Switzerland.
 Continuous quality improvements have gone hand in hand with the growth of their popularity.
Technical developments have helped retain the coffee aroma. Packaging was also improved during
the 1960s and 70s with the move from tins to jars.
 In 1965 NESCAFÉ pioneered premium freeze dried coffee in Europe with NESCAFÉ GOLD and
one year later decaffeinated NESCAFÉ was launched.
 NESCAFÉ coffees are now available to suit all tastes and in a wide range of packaging. Each country
has a slightly different taste in coffee which is reflected in the local varieties of NESCAFÉ products.
 Wherever you are, you can trust that stringent quality standards and diligent coffee masters ensure
that every cup is a delicious part of your day.

6. Available around the world to suit all tastes and occasions.
 NESCAFÉ CLASSIC – Their signature coffee and an all-time favorite in households
worldwide!
 NESCAFÉ 3in1 – The perfect mix of coffee, milk or creamer and sugar in an easy way!
 NESCAFÉ GOLD Range – The premium choice for your special, smooth cup of coffee
everyday. There are three different variations:- Gold- Gold Mild- Gold Decaf
 NESCAFÉ Espresso – Short, dark and intense.
 NESCAFÉ Super Premium Range:
 NESCAFÉ ALTA RICA: A special blend of exclusive Latin American Arabica.
 NESCAFÉ CAP COLOMBIE: Made exclusively from Colombian Arabica beans.
 NESCAFÉ Kenjara: Kenyan and Costa Rican Arabica coffee beans, chosen for
their full depth of refreshing flavors, are gently roasted to develop a coffee alive with
finesse.
 NESCAFÉ DECAF – Gives you the great taste and rich aroma you'd expect from
NESCAFÉ but without the caffeine.

7.  NESCAFÉ Specialties Range – Deliciously frothy and creamy tasting! Nescafé has a specialty
range which includes:
• Nescafé Cappuccino
– Under Cappuccino there are other variants such as – Unsweetened, Skinny, Cappuccino
Decaffeinated
• Nescafé Decaffeinated
• Nescafé Latte, Nescafé Latte Macchiato, Nescafé Latte Skinny
• Nescafé Ice Java Coffee Syrup
• Nescafé Excella
 Nescafé has a Café Flavors range which includes:
• Vanilla
• Irish Cream
• Mocha
• Double Choca Mocha
• Mocha Skinny

8. Premium

9. Non- premium

10. NESCAFÉ - 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 Peach flavors.

11. NESCAFÉ logotype
 NESCAFÉ – a combination of NESTLÉ and café. ‗Nes‘ means
Miracle ‗café‘–coffee; miracle with coffee .
 NESCAFÉ in capitals with a line going from the top of the N
to the accent on the E.
 Another well-known brand element is the mug, with its
energetic red color. Yet none of these branding elements would
be so successful if the quality of our product didn‘t contribute
to create extraordinary moments and inspire the simple joys of
life.

12. Nescafe Logo

13. Brand Perception
 Nescafé logotype was always the same since its origin. The
logotype borrowed the same Nestlé format, and the word Nescafé is
a combination of the first three letters of Nestlé and ―café‖, which
is ―coffee‖ in Portuguese.
 The semantics of the brand name basically describe the product,
and also the phonetics are smooth for most languages. Basically the
logotype improvements followed the same improvements made on
the Nestle logotype.
 The symbol added to convey the brand meaning was the red mug.
Most commercials scenes show someone holding the red mug with
the Nescafé 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.

14. NESCAFÉ Formats
 NESCAFÉ Classic - pure spray dried coffee
 NESCAFÉ Gold - pure freeze dried coffee
 NESCAFÉ Espresso - short, dark roast with intensive flavor
 NESCAFÉ Alta Rica, Cap Colombie, Kenjara - premium Arabica blended
coffees
 NESCAFÉ Decaf/Decaff - NESCAFÉ without caffeine
 NESCAFÉ Cappuccino range - foaming, creamy coffees
 NESCAFÉ 3in1 - coffee, milk and sugar

15.  Nescafé Frappe- Premix
 Nescafe Espresso Roast, Nescafe Original, Nescafe
Mocha- Ready to drink

17. Coffee Blends
 What do you get when you take two or more types of coffee beans and put
them together? A coffee blend! By combining different types of beans as
well as adding flavors, a coffee professional can give coffee a more
complex or balanced taste.
 Coffee beans, whether Arabica or Robusta, can have very different tastes if
they are from different regions. Some beans may have a good level of
acidity but lack aroma, body or color. A blend may be made of up of two or
ten different types of beans in varying quantities in order to get a good
balanced blend.
 Roasting is also part of blending, as beans can be heavily roasted to have a
strong flavor or lightly roasted for a milder taste

18. Nescafe Coffee Blends
 Coffee tastes around the world are so varied, it only makes sense
that NESCAFÉ blends vary from country to country. We pride
ourselves in catering to local tastes which can differ widely by
region.
 In the Philippines, for instance, NESCAFÉ launched the Brown 'N
Creamy variant, which contains muscovado (brown sugar) to cater
to the Filipino palate.
 In Vietnam, NESCAFÉ CAFÉ VIET has the strong and bold taste that
Vietnamese love.
 In Mexico, NESCAFÉ Caffe de Olla is a unique coffee mix with
cinnamon and piloncillo (panela).
 South Africans adore the fresh percolated taste and rich aroma of
NESCAFÉ RICOFFY which is made from coffee beans, chicory and
glucose.

19. NESCAFÉ milestones
 1938: NESCAFÉ introduced in Switzerland
 1965: NESCAFÉ achieved an important breakthrough with the
launch of the first freeze-dried coffee in Europe - NESCAFÉ GOLD.
 1980: NESCAFÉ launches the first gourmet soluble coffees -
NESCAFÉ President in Japan, NESCAFÉ ALTA RICA and NESCAFÉ CAP
COLOMBIE in France.
 1984: NESCAFÉ launched trendy coffee products such as coffee
mixes, coffee mixtures, ready-to-drink coffee and flavored soluble
coffees. Instead of asking “Would you like a coffee?” the question
became “which coffee would you like?”

20. Nescafe in India
• ―The coffee with life in it. Made in just 5 seconds‖. That‘s how Nescafe
announced its entry into India, in 1963. Before the ad campaign hit bill-
boards across the country, Indian coffee lovers were stuck with the idea that
coffee is something that takes minute attention to prepare and cannot be
instant.
• Nestle changed that thinking forever — as it did elsewhere in the world
much earlier in 1938 — which is evident from the fact that more than 4,600
cups of Nescafe, the world‘s first commercial instant coffee, are being
consumed every second.
• Year 2013 is an important milestone for Nescafe in India as it completes 50
years in a country which took time to warm up to the idea of instant coffee.

21. Nescafe Semiotics Triangle
Object Product
Nescafe
Instant
coffee
Person enjoying Interpretant
Sign Image Nescafe Red Mug
coffee meaning

22. Consumer Values
 This study already shown the history the changes of Nescafé‘s along the years.
During this period, the values related to the consumer also have developed.
 During the 50‘s and 60‘s, the brand values were more family oriented.
Advertisements usually shown family reunions, special around the table during the
time of the meals. Initial campaigns created awareness of hot instant coffee, its
invigorating qualities, and the easy and fast way of making it.
 The period between the 60‘s and the70‘s was more youth oriented. The brand was
more focused on the young people, specially groups who had relation with the
music. Hippies and rock fans were targeted with specific advertisements.
 The youth oriented values followed the 80‘s and 90‘s, but as the Nescafé product
array broaden, different values were added, such as sophistication (with the Gold
Blend) and differentiation (with cappuccinos and mochas).
 The brand has built tradition for being such a longtime in the market. In addition,
when the head of marketing for beverages at Nescafe in Australia, Tanya Marled,
talks about the instant coffee taking over the green tea market, she says that the
brand "has a focus on health and wellness and it is really moving to meet a
consumer need.‖ So nowadays, this ―wellness‖ concept, which is based on a
healthy lifestyle, is the main value that bond Nescafé to consumers

23. Associative Networks
Tags for Nescafe Brandtags

24. Associative Networks
 The channel used to construct this net of concepts for Nescafé was based
on the brandtags.net. This website allows internet surfers to add any word
they have in their mind to the brand they see on the screen. After that, an
internal website database register all words typed to the specific brand,
counts them and constructs a visual tag net, enlarging and bolding the most
repeated tags.
 So far the website has 77,000 tags of hundreds of brands, and Nescafé is
included. Besides that, is also possible to divide the tags by nationality,
giving a different perspective over the concepts associated to the brand.
Over a global perspective, the main concept associated to the brand is
―coffee‖ and the second is ―instant‖, after these comes ―chocolate‖,
―cheap‖, ―hot‖ and ―morning‖.
 Being a very basic analysis, the concepts ―coffee‖ and ―instant‖ are rooted
in people‘s mind, whether if it is good or bad, the brand that instantly
comes to peoples mind when they think about instant coffee is Nescafé.

25. SWOT analysis

26. Strengths
 Strong brand name as it is associated with Nestle
 It has fascinating and excellent marketing campaigns
 Their products are diversified into many flavors and
segmented accordingly
 It has a very strong financial position
 Globally known brand with a very good reputation in the
market worldwide
 It has great Marketing P‘s. Their Promotion, Placement ,
Product and Pricing strategies are too good
 Health conscious products are made keeping in mind the
nutritious values.
 Good quality control over the products

27. Weaknesses
People avoid caffeine if they are health
conscious
They have to pay a lot of sales and indirect
taxes
They have a price point portfolio system

28. Opportunity
They must reduce their price according to the
places they are selling their products
They can expand their business into the rural
areas
They can simplify their taxing schemes

29. Threats
Food inflation causes threats to companies like
Nestle
Competitors in the global market
Many people avoid coffee due to their health
reasons

30. Communication
NESCAFE CLASSIC
Channels used:
• TVC, Print Media
• Other advertising channels: Product placement in movies, soaps etc. Sampling
 TVC 1:
• One of the very first commercials of Nescafe classic in India. The TVC hits
on every front very clearly regarding the target statement

31.  Message:
Throughout the advertisement it can be seen that the characters in the ad are sipping coffee at the
start of a day or work, which caters to the most common usage space of coffee in India ,at the
morning.
The advertisement starts with a recording studio starting the recording with a sip of coffee, a
book store being opened with a coffee, an employee rushing through the traffic, photographer
clicking pictures, a painter etc. In the background a tone keeps on playing constantly, "I just need,
need to get started and I will be on my way ‖, symbolizing the start of the day. Nescafé has a very
peculiar tune ―Pa PaRaPa Pa Ra Ra‖, many brands use such strategies to market their brand. For
example Kingfisher‘s ―Oo la la la oo le lo‖ or Britannia. The idea is to make the tones o catchy
that people hum it unconsciously, or in the very recent, use it as ringtones, marketing the brand to
others without knowing. Also the brand recall becomes high as the person is able to recognize the
brand just by the tune used in the ad.
 Target Segment:
The advertisement clearly features the following characters-
 A composer2.
 A book store owner3.
 A corporate rushing for a meeting4.
 A girl waking up to a coffee5.
 A photographer6.
 A Painter
Thus it clearly defines its target segment as the urban youth

32.  Positioning:
―Morning drink for the spirited soul‖,
The ad very clearly depicts the usage and the timeof usage for the product. And very
successfully was able to do so. 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.
 Slogan:
―100% Pure", an age-old tactic of claiming that their product is pure or safe. This is done
normally to remove any shadow of doubt from the minds of the consumer when they go
to purchase coffee from a local kirana store.

33.  TVC 2:
A slight change in the positioning from the previous
advertisement. Nescafe released three slightly different
advertisements following the same theme.

34.  Message:
After the successful campaign of inculcating the use of Nescafe as a daily schedule. They
tried to appeal to a different side of the consumer, rather than more of a rational appeal which
was visible in the previous advertisement it was more of an emotional connect. To break free
from the clutter of the daily camaraderie and enjoy in the moment. The advertisement shows
a couple enjoying the moment in the rain, a group of friends chatting while enjoying coffee.
Thus successful in communicating the correct use of the product, ―To break free. and enjoy
the moment‖, like a person does when he drinks coffee by taking a break during his office
hours. Even the background score says, ―
Come alive to great moments", emphasizing our previous viewpoint that this advert was
positioned to appeal to the emotional consumer.
 Target Segment:
The target segment remains the same, ―Urban youth‖. The characters portrayed in the
advertisement. A couple, and a group of friends both of them falling under the youth
segment.
 Positioning: ―Beverage for any moment", this advertisement can also be seen as
persuasion to increase the usage
of the product. Since the market usage as a morning beverage might have become stagnant,
they tried to position it in the moments of a day.
 Slogan: ―Coffee at its best", they do not let go of the 100% pure coffee slogan as the
slogan is showing the TVC in the middle of the advertisement.

35.  TVC-3:
This advertisement is a continuation of the TVC-2 described in
this report, as it follows the same background score throughout.
 Message:
• If the market is stagnant there are three ways in which you can
increase your sales.
• Increase usage of the product amongst the current users
• Convert non users to users
• Convert the competitor‘s consumers to
your own consumer.

36. Nescafe achieved the first step with TVC -2; the second step was achieved by this advert.
Who were the non users?
 People belonging to lower half of the pyramid who cannot afford a Nescafe pack of
250 gm.2.
 People who are not willing to purchase a 250 gm bottle to try out Nescafe as a product.
 This objective of this advertisement was to generate awareness about a 1 rupee sachet
of Nescafe being available.
 Target segment:
As mentioned previously, the target segment will be mainly Sec B consumers or thelower
half of the pyramid. Also, people who occasionally drink coffee, and are reluctant to
purchase the bigger pack.
 Slogan:
―Behtereen Coffee, Behtereen Daam‖, which means excellent coffee at excellent price.
Also notice that this slogan is in Hindi compared to the previous adverts, thus again
emphasizing on our viewpoints on the target segment for the product.
 Other information:
The sachet also helped Nescafe in sales promotion by distributing samples of the product
or by giving it free with other products.

37. • TVC-4:
• After six advertisements they finally signed a celebrity to endorse their
brand. DeepikaPadukone was signed to endorse the brand. The
advertisement was released in three parts each stage in continuation to keep
up the curiosity quotient of the consumer.

38.  Message:
• Nescafe started the ―know your neighbors‖ campaign and signed Deepika
Padukone for the advertisement. Unlike other advertisements which use big
stars to just recommend the usage of product plainly. This advertisement
involved the celebrity very cleverly within the advertisement. The ad was
featured as a series of three ads each in continuation with a ―to be
continued …‖ displayed at the end of the first two advertisements.
• This was to generate curiosity amongst the consumers. The message was
very plain and simple. The ad shows a young teenager who is pondering
over whether to approach a celebrity who has come to live as his next
door neighbor.
• The first ad shows Deepika pondering over the same fact whether she
should ask his next door neighbor for a game of badminton or not. The
product is shown as being an “ice-breaker or a conversation-starter”, for
the two characters.

39. • The final ad shows the two characters talking when the second celebrity
enters, Karan Johar.Initially, the common teenager ‗Purab‘ feels low on
confidence as the two celebrities engage in conversation. He feels outcast
amongst the two big names. Then enters our product, Nescafe. The character
takes a sip while in the background a voice recites the slogan ―Switch on the
best in you‖. And the character regains his confidence. This advertisement is
on a different track in comparison to the previous advertisements. The
advertisement has a humorous touch to it.
 Positioning:
• The advertisement positioned the product as ―the drink that gives strength for
any challenge‖.
• The coffee that instills confidence in you.
• Slogan:
• “Switch on the best in you", daring one to take on challenges and discover
one’s new self

40. Point of purchase
Nescafe products are mainly sold in the following points. Nescafe Classic being the most
commonly used Nescafe coffee line extension.
 Kirana Store : The most common and the most widespread form of sales point in India.
 Modern Retail: Present mostly in cities are increasingly becoming the most important
points of purchase. There are many factors that may influence the consumer‘s decision at the
last moment of purchase. Most important of which area.
 Visibility: Whether the product is at eye-level or not impacts the number of SKU‘s sold.
 Accessibility: Where the SKU stack is located in comparison to the entrance of the mall
matters as most of the SKUs sold today are impulsive purchases, so if the SKU stack is
located near the entrance and is visible, it will impact the sales'.
 Vending Machines: Nescafe has its own vending machines installed at various locations
namely College canteens, Offices, restaurants etc. This is a very efficient form of OOH
marketing too.
Other forms of Promotion:
• One very important and usually overlooked form of Nescafe's marketing is that wherever
Nescafe‘s vending machines are present they supply coffee in special Nescafé paper cups
only. Also Nescafe has special cups

42. Nescafe global website

43. Facebook

44. Twitter

45. NESCAFÉ new initiative

46. NESCAFÉ Green Blend
• Made from a blend of unroasted green coffee beans and roasted coffee
beans, NESCAFÉ GREEN BLEND has been specially created by coffee
experts to ensure smooth, great tasting coffee. Although all coffee is
naturally rich in polyphenols, what makes NESCAFÉ GREEN BLEND
different are the unroasted green coffee beans. These contains higher levels
of polyphenol, which help maintain your body in good health over time!

47. NESCAFÉ Ipoh White Coffee
• The all new NESCAFÉ Ipoh White Coffee that’s Traditionally
Yours. It’s the Smoothest, Creamiest, Most Aromatic Coffee.
• NESCAFÉ Ipoh White Coffee Original now comes in a new look
and improved recipe to produce a richer aroma and a
smoother taste. What’s more, NESCAFÉ has also introduced 2
new flavors: Brown Sugar and Hazelnut to further delight you!
Whether it’s the NESCAFÉ Ipoh White Coffee with Brown Sugar
with its distinctive caramel taste or the NESCAFÉ Ipoh White
Coffee.
• Hazelnut with its creamy nuttiness and irresistible aroma,
• you can be sure to find the perfect cup of Ipoh white coffee.

48. In 2010, NESTLÉ launched the
NESCAFÉ PLAN!
The plan brings together responsible coffee farming, production and
consumption practices throughout the value chain

49. Future generations of coffee
• For a business to be successful in the long term it has to create value, not only for its
shareholders but also for society. We call this Creating Shared Value. It is not philanthropy or
an add-on, but a fundamental part of our business strategy.
• Over the past few years, it has become evident that it is increasingly important to stand by this
strategy and even to strengthen it. We are faced with economic, social and environmental
challenges such as diversifying developing economies, aging of coffee farmers and
competition for land & water use – to name just a few. And we are willing and capable to find
solutions.
• Today, NESCAFÉ is the world‘s leading coffee brand. With great heritage, size, expertise,
people and passion come great responsibilities, but also the power to initiate change. Together
with our partners we create value for everyone who is involved in the process of coffee
production and processing - from farmers to consumers - following 3 pillars.

50. Responsible farming
• Our aim is that we meet the needs of the present without compromising the ability of future
generations to meet their own needs.
We plan to double the amount of NESCAFÉ coffee bought directly from farmers and their
associations, purchasing 180,000 tonnes of coffee from around 170,000 famers.
• With the support of Rainforest Alliance and 4C, all directly purchased green coffee will be compliant
with the internationally recognized 4C sustainability standards by 2015.
In addition, 90,000 tonnes of NESCAFÉ coffee will be sourced according to Rainforest Alliance (SAN)
principles by 2020.
We will expand our technical assistance programmes for farmers, providing advice on farming and
post-harvest practices to over ten thousand coffee farmers per year.
• We will also set up new microfinance schemes for coffee farmers and increase the number of
community projects focused on education, public health and water supply.
• We will distribute 220 million high-yielding, disease-resistant coffee plantlets to farmers by 2020,
through partnerships with public and private institutions in countries such as Mexico, Thailand,
Indonesia and the Philippines, where we have already distributed over 16 million coffee plantlets in
the past ten years.
• New propagation centres will open in coffee producing countries, starting with Mexico.

51. Responsible Consumption
• NESCAFÉ is the world’s leading coffee brand, with sales of over CHF 10 billion in 2009. Around 4,600
cups of NESCAFÉ are consumed every second.
• NESCAFÉ is available around the world in different blends and flavors, 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. 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.
• To help reduce energy consumption while preparing NESCAFÉ coffee, Nestlé is launching new
initiatives, such as improving the energy efficiency of NESCAFÉ Dolce Gusto machines or facilitating
the preparation of soluble NESCAFÉ coffee with, for example, a new eco-kettle which helps
consumers prepare the right amount of water at the right temperature.
• All in all, Nestlé is investing CHF 500 million in coffee projects over the next 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.

52. Nestle: Creating Shared Value
• NESCAFÉ is in fact only one brand within the Nestlé family where quality goes well beyond
the product itself. Throughout the world and across Nestlé brands, we‘re involved in a broad
range of social and environmental initiatives that together make quite a difference.
• Actually, it‘s how we‘ve always done business at Nestlé and is part of what we call Creating
Shared Value. For us, caring about the wellbeing of others and the environment is integral to
our promise of improving the quality of life through good food and beverages everywhere.
• Our commitment to great tasting and trusted products has and always will be tied to our
respect for the environment and the people we work with, including the farmers who supply
us, our employees, our consumers and the communities where we operate. At Nestlé quality
means more.

54. Thankyou!