Consumer behavior of Nescafe

Presented by

Abdul Mohit Chowdhury 2005-2-13-002 Md. Imran 2005-1-10-149 Sadia Tabassum 2006-2-10-229 Kayema Alam 2006-2-10-232 Lut. Md. Fida Hassan 2005-1-10-124 Shahariar Arifeen 2005-2-10-154

The Brand

Nescafe is one of the most popular brand of coffee all around the world over decades. Its rich flavor, aroma and test makes it different from the other coffee brands. Over the years, NESCAF developed in many ways. Its brand image has had various expressions over time. NESCAF - being enjoyed all around the world... comforting, stimulating, relaxing. Youthfulness, refreshing and fun with friends with a cup of Nescafe is a trend loved by the young generation.

Coffee today

Today, coffee is one of the worlds largest trading commodities second only to oil. It is worth more than $12 billion dollars in trade every year, mainly between developing countries, where it is grown, and industrialized countries, where it is consumed. The price of coffee remains highly volatile. Being an agricultural commodity, coffee suffers from sharp variations in supply as a result of changes in environmental conditions. Most of the worlds coffee crop is produced in Southern and Central America, Asia and Africa.

Marketing Mix

The NESCAF Gold Range: The premium choice from NESCAF for your special cup of coffee every day.

Marketing Mix

NESCAF Classic: The world's favourite coffee! You will find it in just about every country all around the globe.

Marketing Mix

NESCAF Cappuccino: Deliciously frothy and creamy tasting! Why not treat yourself to the smooth, creamy flavour and rich, milky froth of NESCAF Cappuccino. Just add water and enjoy! Enjoy also different flavoured cappuccinos such as Vanilla, Hazelnut or Caramel Cappuccino.

Marketing Mix

NESCAF Espresso - Short, dark and intense. NESCAF Espresso is made from a blend of Latin American Arabica beans, fully roasted for a dark and intense flavour, to bring you the authentic Italian espresso experience.

Marketing Mix

NESCAF Decaff : NESCAF Decaff gives you all the great taste and rich aroma you'd expect from NESCAF but without the caffeine.

Marketing Mix

NESCAF Frapp - Refreshing on hot summer days, or whenever you fancy a cold drink with an interesting twist. Simply stir in cold milk, add some ice and enjoy the taste of NESCAF Frapp for a unique coffee experience.

Marketing Mix

The NESCAF Premium Range offers you the best of coffee: NESCAF Cap Colombie is made exclusively from Colombian Arabica beans, chosen for their aromatic tones and light roasted to retain their aroma while developing the smooth flavour. NESCAF Alta Rica is a special blend of exclusive Latin American Arabicas chosen for their full flavour, and dark roasted to develop the bold, full-bodied taste. NESCAF Kenjara - Kenyan and Costa Rican Arabica coffee beans, chosen for their full depth of refreshing flavours, are gently roasted to develop a coffee alive with finesse.

Target Market
Demographic Factors

Here we are going to determine the age, sex and the income of the consumers that we targeted based on the survey we have done. 1. Age: Generally our main customer of Nescafe are the younger generation, about 45% of the consumers are below 18, student who busy with studies or spend time with friends, 40% of the consumers age is 18 to 28 which means university student or new executives. Maybe at the off time or between the work they prefer coffee instead of tea because of the caffeine that feels them waking up. From our survey we also found that over 38 people usually prefer tea instead of coffee.
28-38 11%

38-48 4%

Age Analysis
more then48 0% less then 18 less then 18 18-28 45% 28-38 38-48

18-28 40%

more then48

Target Market

2. Gender: Majority of the coffee customer are male. They purchase more because they go outside more.

Gender Analysis

Female 38% Male 62%

Male Female

We basically survey on more customer male then female, so the female coffee drinker may be slightly more then the analysis here.

Target Market
Social factors

The social status that we are considering Social class and leisure activity etc. Social class: it identifies the family income of the participants who involved in this survey. From the survey we find that
Family Income
25.00% 20.00% 15.00% % 10.00% 5.00% 0.00% >10 10<>20 20<>30 30<>40 40<>50 Range of Income 50<

From the above chart we can see that about 50% (25% from 20<>30 and 25% from 30<>40) of the coffee consumers income is between 20,000 to 40,000. they are the middle class and the upper middle class section of the society. So we can say that the main target of Nescafe is the middle and upper middle class.

Classical Conditioning

This condition refers that using an established relationship between a stimulus and response with a neutral stimulus for desired response. For example: the Nescafes theme music reminds about the brand Nescafe which is fun and youthful.

UCS Nescafe music

UCR Positive Response/ Emotion

CS Nescafe

CR Positive Response

Figure: Classical conditioning

Operant Conditions:

Operant conditioning is the use of consequences to modify the occurrence and form of behavior. For example: giving free sample of Nescafe on the colleges and universities makes the users more addictive about the Nescafe. Later those users reinforced to buy the same product again and again because of the test and aroma of the brand.
Stimulus (Nescafe) Desired Response (consumption) Reinforcement (Pleasant from)

Increasing Probability of response of stimulus

Figure: Operant Conditioning

Perceptual Mapping
Prestigious, Expensive

Based on the perceptual mapping, Mac coffee is much prestigious but Nescafe is more Non-Traditional and consumers conception about Bru is too traditional and economical.

Non- Traditional, Fun

Mac coffee

Traditional, Dull

Nescafe

Bru

Common, Economical

Figure: Perceptual Mapping

Leisure activity

Thought our survey we found that, most of the participants38% usually watch TV in their leisure time, 31% listen to music, 11% play outdoor games, 8% says they read storybooks and only 5% said they regularly goes to concerts, it shows the people are not so active at their leisure.

Leisure Activity
game 11% story 8% TV 38% concert COM game 5% 7% COM game TV music story game concert music 31%

Perception about Nescafe

During the survey we ask people about what do they think about the brand Nescafe and what comes to their mind each time they heard of the brand, about 47% participants told they feel refresh, 16% says youthful and only 11% thought they feel stylish and 10% Friends, 9% cost and 3% portability.

stylish 11% portable 3% cost 9%

youth 16% youth refresh creative friend

friend 10% creative 4%

cost portable stylish refresh 47%

Tea VS Coffee

Still majority of Bangladeshi consumer believes that tea is better then the coffee. About 43% of the survey participants told they think tea is a better option comparing to coffee. One of the reason maybe the climate and the other is the habit of preferring tea rather then coffee.

Tea VS Coffee

yes 43% no 57%

yes no

Nescafe VS Ideal Coffee

Nescafe

On the two charts shows what people think about the ideal coffee and the brand Nescafe from our survey. Our basis was the test, price, status, calorie and caffeine. The caffeine and the calorie are the same but people have different perception about the status, test and price

caffeine Calorie Status Taste Price 0 0.5 1 1.5 2 2.5 3

Series1

Ideal Coffee

caffeine Calorie Status Taste Price 0 0.5 1 1.5 2 2.5 3

Series1

Cognitive Component

The cognitive component consists of the belief that people have towards different coffee brands.
ATTITUDE COMPERISION Nescafe 3.5 3.17 3 2.5 2.95 2.9 2.65 2.7 2.37 2.02 1.58 1.95 3.03 2.93 2.85 2.97 2.7 2.68 Mac coffee Ideal coffee

Range

2 1.5 1 0.5 0 Price

Taste

Status Attributes

Calorie

caffeine

We try to measure peoples attitude comparison to Nescafe with the main competitor Mac Coffee and the Ideal Coffee.

Affective Component

It is the emotional and feelings of the consumer to the product. They express their likings and perception about Nescafe in the survey given below.
3.5 3 2.5

RANGE

2 1.5 1 0.5 0

Series1

TH FU L

AS E

IS E

RE FR EA

RC H

YO U

O VE

&

AL

AD IT IO N

TR

NO

Figure: Affective component

CO

NV EN

IE NT

TO

PU

LI K

PR

EI NG

SH

Behavioral component
Last time consumption

About 96% of the participants said their last consumption was Nescafe and only 4% said Mac coffee and 0% Bru.
Behavirol component

macbru 4% 0% nescafe mac bru nescafe 96%

Although our survey shows that Mac coffee has the higher status but people usually prefer Nescafe because of the price and the availability.

Behavioral component
Future consumption
About 92% said they want to buy Nescafe in the future, 6% said Mac Coffee and 2% told they would like to try bru.
Behaviroral component
mac 6% bru 2% nescafe mac bru nescafe 92%

Self-Concept

Rugged ____ Excitable ____ Dominating ____ Thrifty ____ Organized ____ Rational ____ Formal ____ Traditional ____ Colorless ____

____ 3.06 ____ ____ _3.20 ____ ____2.86___ ____ ____ _3.23 ____ _2.3 ____ ____ ____ 3.00 ____ ____2.81___ ____ ____ ___3.48___ ____ ____ 4.00

____ Delicate ____ Calm ____ Submissive ____ Indulgent ____ Unorganized ____ Emotional ____ Informal ____ Changing ____ Colorful

Recommendations

Majority of our the consumers are below 18. so Nescafe should focus more on that segment. Also we find that 40% of the consumers are 18 to 28 years old, consumers who maybe the university students or the new executives so also this is a potential segment for the Nescafe. Based on the perpetual mapping, our product falls under the non traditional, fun criteria, and people think preferring Mac Coffee is prestigious so it can be a threat for us, so we should more consider on the expensive, prestigious section. By using high profile celebrities Nescafe should build up a status. As from the Ideal coffee survey we find that people want economical product then the test and status, but reducing the price may be a risky decision because of the status of Mac coffee. Giving 20% extra as a promotion may good decision. The possible new threat is Mac coffee for the Nescafe, recently we see the immerging advertising on the university and college campuses which may harm the market share of the product. So our recommendation is to set a bigger campaign against our competitor where they are targeting.

Thank you