The document is a marketing report submitted to a professor at North South University in Dhaka, Bangladesh about a market research study conducted on the Nescafe brand of coffee in Bangladesh. The report includes an executive summary that finds Nescafe has created a strong positioning in people's minds as an exceptional coffee brand. It also discusses Nescafe's history, target markets, positioning, pricing, and promotional strategies. The bulk of the report outlines the results of the market research study on Nescafe consumers in Bangladesh through surveys, including findings on consumption habits, brand perceptions and preferences. It finds that while Nescafe is very popular, there may be opportunities to improve quality and address some brand confusion.
1. NORTHSOUTHUNIVERSITY
Prepared by:
NAME ID
MD.ANIK 1320236030
MD.RAHADUL ALAM 1321008030
MD.SAIFUL ISLAM 1321462030
MD.ISHTIAK KHAN 1220203030
MUSTAFIZUR RAHMAN 1320937030
Prepared for
AUNIMA NAZMUN NAHAR
Lecturer
School of Business and Economics
North South University, Dhaka
2. 30th December,2015
Aunima Nazmun Nahar,
Instructor,ConsumerBehavior,
Faculty,SBE
North SouthUniversity,Dhaka.
Subject: Submissionof MKT 344 Report.
Dear Miss,
In the followingpages,we have done ourmarketingreportonNescafe.We have enjoyedpreparingthe
project.Inpreparingwe researchedonconsumerbehavior,we have triedourlevelbesttoinclude all
the relevantinformationandtriedtoidentifydifferentproblems.Aswe are beginner,we maymake
some mistakes.If youconsiderourmistakesaspardonable,we will be verypleasedanditwill be very
helpful forourfuture career.
Furthermore,if youhave anyqueryaboutconsumerresearchplease feel free toaskany of our group
members.
SincerelyYours-
Mustafizur Rahman
Saiful Islam
IstiaqKhan
Rahatul Islam
Fahad Anik
3. Acknowledgment
This project has been an eye-opener for each and every member of our group and we have been
fortunate to have the support, assistance and encouragement of a number of individuals while
preparing this project; without their help and support it would be hard to complete this study. We
express our sincere gratitude to our Instructor Aunima Nazmun Nahar, Lecturer, School of
Business, North South University, Dhaka for guiding us in completing this study. Our
appreciation goes to the team members whose unflagging capacity for creative work and long
hours made the project successful – under the pressure of deadlines. And heartiest thanks to
those who have helped us to improve this consumer research and behavior with various advice.
Executive summery
The followingprojectisbasedonone of the mostrenownedbrandinthe marketof coffee in
Bangladesh,the Nescafe.The projectisonthe consumerassociationwiththe Nescafebrandin
Bangladesh.Tofindthisout,we surveyedoverhundredpeople aroundDhakacity.We made questions
whichcan bringout the positionsNescafecreatedinpropelsmind. We sortoutthe data’swe got from
the surveyandinquire them.Thenanalyze the inquirytogetan overview of the currentcoffee market.
4. We alsocollectedoursecondarydata’sfromrenownedwebsitesandNescafeofficial website.Those
data’sexplainedushowpeople are adoptingthe coffeetrendsinBangladeshnow adays.The tea loving
countryis gettingintothe newtrendmore now thanbefore theyusedtodo.Althoughthere are many
coffee brandsinthe market,Nescafé servesexceptional refreshmentforwhichitcreatedan
distinguishedpositioninginpeoplesmind.
As an increasingeconomiccountry,Nescafe isrunningitsbusinesssuccessfullyformanyreasons.For
instance,there are manyinstantcoffee productsinourmarket.Butthere are no otherinstantcoffee is
as strong as Nescafe Nescafeholdsitspositiontotopbycapturingyounggenerationmore significantly.
The young people are more intothe coffee trendherebytheyare more likelytopickNescafé whenit
comesto coffee.Infactsometimesthe pronounce Nescafeinsteadof coffee toordercoffeesinthe
restaurant.
INTRODUCTION
The newproduct wasnamedNESCAFÉ – a combinationof the Nes-rootof Nestlé andthe wordcafé.
NESCAFEwasfirstintroducedinSwitzerland,onApril 1st,1938. For the firsthalf of the nextdecade,
however,WorldWarII hindereditssuccessinEurope.NESCAFE wassoonexportedtoFrance,Great
Britainand the USA. Americanforcesplayeda keyrole inre-launchingNESCAFEinEurope byvirtue of
the fact that it wasincludedintheirfoodrations.Itspopularitygrew rapidlythroughthe restof the
decade. Nowa day’scoffee becomespopularinBangladesh.Althoughteaculture existsinthe country,
5. Nescafe iscreatingculture of havingcoffee daybyday.SoNescafe isthe pioneerbrandinthe coffee
market.
NowNescafe concentratesonyounggenerationsotheylaunchREDvulationcamping.NESCAFE.
Addeda newredaccent totheirbrand name,a brightrediconiccoffee mugand theirnew sloganis
now,“It all start withNescafe”
Market Overview
Nowdays,coffee forBangladeshi peopleisnotnew.The countryhasneverbeenkindtothe coffee
loversasfar as popularityconcerned.Peoplepreferteamore thancoffee here.Withthe adoptionof
newtrendsnowpeople are switchingintocoffee trendsnow.Butthe frequenciesof switchinginto
coffeesare nothighenough.Because of inBangladesh,streetside teashopsandteabusinessesare
more than coffee shops.Ourcountryhastea gardensand local teacompanies.The coffee companies
here are mostlyfromoutside of country.Socoffeesare available onlyinbigcities.Asoureconomyis
growingcoffee trendsare scatteringthroughoutthe country.
HISTORY OF NESCAFE
The beginningsof NESCAFEcanbe traced all the way back to 1930, whenthe Braziliangovernmentsfirst
approachedNESTLE.Our coffee guru,Max Mergenthaler,andhisteamsetoutimmediatelytofinda
wayof producinga qualitycupof coffee thatcouldbe made simplybyaddingwater,yetwouldretain
the coffee'snatural flavor.Aftersevenlongyearsof researchinourSwisslaboratories,theyfoundthe
answer.
6. The newproduct wasnamedNESCAFE — a combinationof NESTLEand café.We firstintroduced
NESCAFEinSwitzerlandonApril 1,1938. For the firsthalf of the nextdecade,however,WorldWarII
hindereditsexpansioninEurope.NESCAFEwassoonexportedtoFrance,GreatBritainandthe United
States.Withoutrealizingit,Americansoldiersplayedakeyrole inre-launchingNESCAFEonthe
continentbyvirtue of the fact that itwas includedintheirdailyfoodrations.Itspopularitygrew rapidly
throughthe rest of the decade.Bythe 1950's, coffee hadbecome the beverageof choice forteenagers,
whowere flockingtocoffee housestohearthe new rock'n' roll music.
As the needsandwantsof modern coffee drinkerschange,NESCAFEisalwaysreadytoofferyouknew
and outstandingcoffeebeverages. NESCAFE'sproductportfoliocurrentlyincludesflavored-coffee mixes
and a range of instantproductsto meetyourdesire fornew varietiestocomplementyour life.
Company Overview
In 1930 the BraziliangovernmentapproachedNestletocreate a new instantcoffee thatwouldgive the
consumeranotheroptionandat the same time increase the dwindlingcoffee exportsof Brazil.Ittook
eightyearsbutin 1938 Nestle introducedNescafe.
Instantcoffee wasnota newidea;it wasoriginallyinventedbyaJapanese chemistnamedSatori Katoin
1901 and had beenmarketedandsoldbyvariouscompanieswithdisappointingresults.Nescafe
revolutionizedthe wayinstantcoffeewasmade.
Target Market
7. The target marketsof Nescafe are students,professionalsandgeneral people.It’sbeenhardtoreach to
illiterateoruneducatedpeople astheystill preferthe substitute of Nescafe whichisTea.
Positioning
Nescafe uses productdifferentiation and image differentiation in order to gain
competitive advantages to build a position by providing superior value compare
to competitors. Nescafe has the biggest marketshare in instant coffee market
with the features of its products, quality levels, and the satisfaction that it gives to
customer as perceived value. To many people who are inspired and trendy about
Nescafe think it makes them relax and happy.
.
Price
The price of Nescafe isconsiderablycheaperthanthe competitorswhichis one of the mainreasonswhy
mostrestaurantsuse Nescafe insteadof otherbrands.CustomerspreferNescafe becausetheythinkitis
withintheirbudgetanditsatisfiestheirneeds.
Promotional Strategy
Nescafe use differentpromotional strategiesfordifferentcountriesorregions.Nescafe formsitsown
strategyto effectivelytargetitsaudience andgeneratesalesforthe growthof the company.Nescafe
8. has itsrecognitionforwarmth,exciting,friendly&energy;andNescafe use these beneficial sightsas
promotionsthroughoutcountriesandregions.
MARKET RESEARCH OF NESCAFE
Research Objectives
To conduct a quantitative research, weneed a survey.
To identify consumer’s coffeedrinking habits.
To identify people’s attitude towards Nescafe.
To identify pricing demand of coffee lovers.
To identify service activities of Nescafe.
To identify satisfaction with Nescafe’s positioning
RESEARCH METHODOLOGY
Why to undertake research
Research objectives
To find the loophole of brand personality
Compare the brand personality
Limitations: The survey was restricted to only 106 people, including male and female.
Sample Size: The sample size consisted of 106 respondents.
Sample Frame: All the questionnaires were filled within 2 weeks.
Targeted Population: Users, Non-users, adults, working people and housewives.
9. • Method of Data Collection:
Primary Source – Survey was conducted with help of a Questionnaire.
The questions were based on Consumer’s buying patterns, Brand Awareness, Brand
Preference and General Information.
Secondary Data – Internet
It was observed that an Exploratory as well as Descriptive research would be required.
Nescafe is a successfulpopular brand. When a research on Nescafe was pulled off,
these findings were collected.
The findings are based on quantitative research.
The surveywas mostlybasedonmales;andfemaleswerealsopartof the surveybutfew girlswere
askedcomparedto malesasthere were 76.4% malesandonly23.6% females.
10. It isshowninthe pie chart that responses fromourrespectivebrandare mainlyfromyoungpeopleaged
21-25 yearsoldas assumedand it indicatesthathere younggenerationlovescoffee more asthe more
day progresses.84%of our respondentswere 21-25,there were 9.4% respondentswhose age group is
26-30. There were alsosome respondentsof 16-20 and 31-35.
Whenthisquestionwasaskedthatdo theylike coffeeornotit got a satisfactoryresultas93.3% people
saidthat theylike coffee.And6.7%respondentsansweredthattheydon’tlike coffee.
11. TheymeantNescafe whentheywere askedaboutcoffee.94.3% people like Nescafe anditprovesthat
Nescafe isnota coffee anymore ratheritisa wayof living.It’salifestyleitself.
Between the options of spirit of youth, romantic, bitter taste, breakup, best brand in
category and chilling with friends; most people choose chilling with friends. Around
41.9% think Nescafe means to chill with their friends and 28.6% think it Nescafe is a
spirit of youth to them. 14.3% rated it as the best brand in category and 12.4% ranked it
12. on taste verifying bitterness. Only 2.9% rated Nescafe as romantic whereas nobody
rated it as breakup.
Although Nescafe is a way of living and almost everyone like coffee but the buying
pattern of the people confuses the research objective.33% people buying it twice a week
and 23.6% are buying it 4 times. 20.8% respondents answered that they buy Nescafe
around 5 times or above of 5 times in a week. So if it is a lifestyle and people like
drinking coffee the consumption should be much higher than the data are shown which is
a matter of qualitative research.
13. A satisfactory result was found as most people (34%) choose “I like Nescafe and my mind
satisfies only when I buy it” from the options. But 26.4% choose Gloria Jean’s Bean and that
means they are catching up quickly. 22.6% choose MacCoffee, 15.1% choose Bru Coffee, and
only 1.9% choose others. It is quite clear that Nescafe should improve themselves or there is a
high chance they will be lagging behind in future.
14. Their positioning was under and sometimes confused but new positioning of Nescafe is for the
people of all ages. Nescafe is trying to give the world what is needs and 86.7% is the proof.
In the survey, among the option of homemade, coffee shop and kiosk; homemade ranks higher in
percentage with 54.7%. Nescafe mini packs are paving the way for homemade consumers. On
the other hand, 28.3% consumers prefer coffee shops for consuming Nescafe whereas 17%
consumers prefer Kiosk to buy Nescafe.
15. Redrepresentsbeautyinmanylanguagesandcultures.Nescafe redmughasbeenitssignature mark
fromthe beginningandasthe data shows93.3% people alwaysassociate itwiththe Nescafe.
Though Nescafe is doing brilliant but still people t
There are no sources in the current document.hink they need to improve their quality as
87.6% choose Yes as their opinion. Only 12.4% think Nescafe is doing fine.
16. The taste of real coffee is rather bitter to the normally practiced tea drinks usually served and
drunk all over the country. That the vending-machine idea was a penetrating strategy for Nescafe
,the taste of coffee was lightened with a lot of milk and sugar in the recipe to deem acceptable by
the general public(95.2%). It is clearly shown in the data
17. Nescafe is well known for its availability and their price. It is less pricy compared to other brands
in the category. 78.1% think it is not pricy and 21.9% still think Nescafe should reduce their
price.
There isclearlya lotof confusionregardingfriendshipwhichisthe brandpersonalityof Nescafe.Half of
the people(51.4%) agree withthe friendshipbutthe otherhalf is divided.Sothe there ismismatchisnot
onlyininternational level butalsoindomesticlevel too.
18. A nice cup of Nescafe can make the conversation more enjoyable. According to respondents,
65.7% choose the option obviously, and those we are neutral or thinks sometimes Nescafe helps
the conversation choose the option to some extent that is 29.5%. And only 4.8% people think
Nescafe has nothing to do with making conversation more enjoyable.
19. As there isclearloophole indomesticlevel aswell asinternationallevel itisveryclearthatpeople are
alsoconfusesaboutthe ‘friendship’personalityof Nescafe andthe previousandnew positioningmakes
people(54.3%) getintothe mix tothinkthatitruns on It’spersonality.
International Brand Personality of Nsecafe
One of the world’smostlovedcoffeebrands- NESCAFEhasmade itselfknowntoasmanyas six
generations!Itisa productas oldas George biro’sball pointandpre datesthe pocketcalculator,the
remote control,the personal computerandthe mobile phone.Ithaslivedthroughaworldwarand a
coldwar and evenbeensenttothe moon.
Overthe past 75 years,NESCAFEhas grownon the commitmenttoa promise- tomaximizethe
enjoymentandease of preparingacupof coffee.Backedbya pipeline full of breakthroughinnovation
and a strong commitmenttowardsenhancingthe coffeeexperience of ourconsumers,NESCAFEhas
become one of the most popularglobal brands.Itslongevityhasbeenbuiltonconnectingwithnew
customersandon earningandretainingtheirtrust.The commitmenttoqualitygoeswell beyondthe
product.Theyhelpcoffee farmers andare alwayslookingtogo“Beyondthe cup”.
“It all starts witha Nescafe”.The international personalityof Nescafeisfriendship.The Nescafebrand
usuallyhada close relationwithanatmosphere of tastefulcoffee pleasure,warmandfriendly.The
Nescafe saysthattheylove makingnewconnections,friendshipandrelationships.It’soutof theirlove
of connectingandinnovatingthat“It’sall startswitha Nescafe”wasborn.Whetherit’snew ideas,new
friendshipsorjusta newday-Nescafe isexcitedtobe there withthe customers.Nescafeisnotjusta cup
of coffee tothe customersratherit’sthe start of the new relationshipamongthe friends,family,
20. colleaguesand,peers.Internationallyithasacceptedthatwhenpeoplehavingacupof Nescafe they
feel verymuchfriendlywiththeirfriendsandthusNescafe helpstostrengthenthe friendships.
Comparison of International Brand
Personality and local Survey :
In our surveyof Nescafe we have foundoutthatmost of our respondentssaysthatwhen theyfirstsee
the “Nescafe”the firstthingcome to theirmindthattheyare chillingwiththeirfriendsasa resultthe
friendshipgetstrongerthanbefore andtheycancreate outstandingrelationwiththeirfriends.
In our surveythe questionnumber5is that “Whenyouhear the word“NESCAFE"what isthe firstthing
come to your mind?”So,inour surveyresultwe foundthataround28.6 %( 30) people findNescafeasa
Spiritof Youth where 2.9 %( 3) finditself Romantic.12.4%(13) feel itself asaBittertaste where there is
no one whofounditself asa Breakupsign.14.35 (15) people see itself asaBestBrand Categoryand
41.9% (44) the most findNescafe asanopportunitytoChillingwithFriends.Sowe caneasilysee that
mostof them(41.9%) people thinkaboutchillingwithfriendswhentheysee Nescafe.
In our surveythe questionnumber14 is“ The brand personalityof Nescafe is“Friendship”.Doyouthink
it isappropriate forNescafe?”In thissurveyalmost51.4% (54)expressthatNescafe representsthe
personalityof friendshipitshowsthatNescafe playavital role tomake friendshipperfectlymatched.
11.4% (12) disagree tothat andtheythinkneutral theydon’tknow andtheydidn’ttookanyside
whethertheyare quite happytoenjoythe coffee itself thatitdoesn’tmake anysense tobe relatedwith
friendshipwhere 37.1%(39) of people are quite neutral.Theydon’tknow andtheydidn’ttake anyside
whethertheyare quite happytoenjoythe coffee itself.Sothe overall findingof oursurveyaboutthe
ultimate personalityof Nescafe ismostlyfriendshipstaffswhichconcludesthatthe international brand
21. personalitymatchedwiththe resultof oursurveywhichwe have foundoutthatthe consumersof
Nescafe considerthatNescafe hasthe personalityof friendship.
Loophole
Nescafe isa leadingglobal brandthatsuccessfullyspread it'sreputation worldwideresponding to
consumerneeds, inanadvancedandcreative way.Besideshavingaconsiderable varietyof product,
Nescafe goesonwithits conceptof unity.The brand isstrong andit has, byfar, the biggestmarketshare
amongits instantcoffee manufacturingcompetitors.Nescafe holds80% of the sharesof the world
market.But thisdoesnot indicate thatNescafe hasbeenable tosatisfy andgrab the entire market
existinginthe world.In the Bangladeshimarket,Nescafe hastoimprove theirmarketingstrategy.In
Bangladeshthere existsateaculture and itis veryhard to establish coffeeasa substitute productto
take that market.Nescafe enteredthe marketsuccessfullybutit isnot beingable to coverall the area of
Bangladesh.There isanotherissue thatNescafe cangetridof.Many people of Bangladeshdonotgo to
coffee shopsordo notknowabout coffee speciallyinrural area.Nescafe shouldimprovetheir
promotionanddistributionchannel inBangladeshimarket.
Accordingto consumptionbehaviorNescafe launched variousquantityof coffeebottle orpack.
Nescafe launched 2Tkinstantcoffee packwhichwas of verylow qualityforwhichmanyconsumersdid
not buythat. Whichdestroymanycoffee consumers.Nescafe alreadytook95% of the coffee market
22. and has spread theiravailabilityof productespeciallyinmetropolitanarea.Those whoconsume coffee
by theirhabittheyare sort of bound to buy Nescafe.InBangladeshNescafe cannotserve theirbest
productor differentflavorcoffee,they only selltheir classicflavored productwhichare mass
distributedin the market.Nescafecannotprovide sufficientamountof coffee makingmachine inall
marketso the taste of the coffee variesfromshoptoshopor place to place . NESCAFEdoesnot run
heavypromotioninrural or Sami rural area inBangladesh.Nescafecannotcreate astrong positionin
seniorcitizens’inBangladesh.InIslamicculture some oldcitizensdonotlike westernculture ascoffee is
a part of westernculture.There isanotherhealth conscious issuebecause of the caffeine the products
of NESCAFEcontain.
Things “Nescafe” is missing:
Noteverythinginthisworldisafullya hundredscorer.AlthoughNescafe isholdingastrongbrand
positioningaroundthe world,aswell asincoffee loversmind,there are some negativesidesof this
brand as well.The thingsthe brandismissingisgivenbelow,
1. Lack of drawn between other companies: Currently many instant coffee chains are
entering in the instant coffee category market. Their instant coffee tastes are almost
coping with the taste of Nescafe. So some people are likely to choose other brands over
Nescafe.
23. 2. The weak breadth of brand salience: Nescafe appears to be excelling at the depth of
attracting its consumers. But the brand does not surface in consumers mind that easily or
frequently in general coffee purchase and consumption situation.
3. The lack of strong and unique compared to other brands: Nescafe is generally
described as a brand consumers are neutral about. Even though they are aware about
Nescafe, the brand held a little importance or significance to them. They are losing
favorable associations as well than other brands.
4. Lack of relationship with young generation: In spite of having a significant portion of
young consumer, Nescafe is falling behind to create a significant relation with the
consumers. This is costing the brand to some extinct in the market.
5. Lagging behind Consumer Trends: Different people in different region follow different
trends. Some people are facing difficulties that the company is currently creating
miscommunications in some portions of their business areas.
6. Incongruence in Brand Communication: Despite efforts to reach out to consumer via
events, NESCAFÉ’ has not been leveraging on these efforts to its full potential.
Sometimes it makes its appearances at events of no relevance (e.g. Gaming roadshows,
etc), making it hard for people to associate the brand with anything in particular.
24. Conclusion
Nescafe isa popularglobal brand.Nescafe runstheirbusinessaround 160 countries.Althoughtestand
preference are differentfromeachcountryNescafe adopteachcountriesculture,peoplebehavior,test,
preference andruntheirbusinesssmoothly.Nescafe make itpossible because of theirabilityto
understandtheircustomerbehavior,attitude,testandpreference.Theyserve coffee atacheaperprice
rate thanits competitorsandstill itismuchmore preferable becauseof itstaste andpositioning.
Nescafe isstill tryingtoreachthe countrieswhere coffeeisnotvery popular,theyare tryingtoposition
theircompanyineverypart of the worldwhichmay be possible inthe comingyears.Nescafegivesa
vibe of friendliness,togetherness,warmth,relaxation.Ithasreachedtoa situationwhere peoplerelate
coffee withNescafe.Asglobal brand,itcannotaskmore fromitsconsumers.Now Nescafe standsfirst
positionininstantcoffee industry.
26. http://www.nescafe.com/our-world
Appendix :
Table of content
Subject Page No
Executive summary
Introduction
History Of Nescafe
Company Overview
Target Market
Positioning
PromotionalStrategy
Market Research Of Nescafe
InternationalBrand Personality Of
Nescafe
Comparison Of InternationalBrand
1
2
3
4
4
4
5
5
16
17
27. Personality and Local Survey
Loophole
Things The Brand Is Missing
Conclusion
References
Appendix
19
20
21
22
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