1. OriginThe story of NESTL coffee begins in Vevey, a small
town in Switzerland, where a pharmacist named Henri Nestl 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 Nestl, and
it soon became popular in much of Europe. It was the birth of one
of the worlds favorite food brands.The NESTL company soon expanded
into chocolate and other food products, but it wasnt until 1930
that they put their expertise into coffee.
2. Soluble coffeeBrazilian coffee meets Swiss science. Thats
how NESCAF was born. It all started in 1930, when the Brazilian
government asked the NESTL 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 coffees natural flavors.Soluble
coffee was introduced to the world on April 1, 1938. The new
product was named NESCAF a combination of NESTL and caf. Nes means
Miracle cafcoffee; miracle with coffeeDuring World War II, it
became the staple beverage of the US armed forces and, from then
on, its popularity really took off. NESCAF has become the favorite
coffee of many generations all over the world.NESCAF 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
3. NESCAF- Improving the world of coffeeA soluble coffee powder
process had been patented as early as 1909 in the USA. So why is
NESCAF soimportant in the world of coffee? The fact is that soluble
coffee only became a product worth drinking with the launch of
NESCAF in1938, 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 duringthe
1960s and 70s with the move from tins to jars. In 1965 NESCAF
pioneered premium freeze dried coffee in Europe with NESCAF GOLD
andone year later decaffeinated NESCAF was launched. NESCAF coffees
are now available to suit all tastes and in a wide range of
packaging. Each countryhas a slightly different taste in coffee
which is reflected in the local varieties of NESCAF products.
Wherever you are, you can trust that stringent quality standards
and diligent coffee masters ensurethat every cup is a delicious
part of your day.
4. Available around the world to suit all tastes and occasions.
NESCAF CLASSIC Their signature coffee and an all-time favorite in
householdsworldwide! NESCAF 3in1 The perfect mix of coffee, milk or
creamer and sugar in an easy way! NESCAF GOLD Range The premium
choice for your special, smooth cup of coffeeeveryday. There are
three different variations:- Gold- Gold Mild- Gold Decaf NESCAF
Espresso Short, dark and intense. NESCAF Super Premium Range:
NESCAF ALTA RICA: A special blend of exclusive Latin American
Arabica. NESCAF CAP COLOMBIE: Made exclusively from Colombian
Arabica beans. NESCAF Kenjara: Kenyan and Costa Rican Arabica
coffee beans, chosen fortheir full depth of refreshing flavors, are
gently roasted to develop a coffee alive withfinesse. NESCAF DECAF
Gives you the great taste and rich aroma youd expect fromNESCAF but
without the caffeine.
5. NESCAF Specialties Range Deliciously frothy and creamy
tasting! Nescaf has a specialtyrange which includes: Nescaf
Cappuccino Under Cappuccino there are other variants such as
Unsweetened, Skinny, CappuccinoDecaffeinated Nescaf Decaffeinated
Nescaf Latte, Nescaf Latte Macchiato, Nescaf Latte Skinny Nescaf
Ice Java Coffee Syrup Nescaf Excella Nescaf has a Caf Flavors range
which includes: Vanilla Irish Cream Mocha Double Choca Mocha Mocha
Skinny
6. Premium
7. Non- premium
8. NESCAF - India NESCAF Classic a 100% natural coffee NESCAF
Cappuccino- a range of delicious foaming mixes available in 3
delightful flavorsCappuccino, Vanilla Latte and Choco Mocha. NESCAF
Sunrise Premium-Handpicked Arabica and Robusta beans that are
expertlyroasted and granulated to give you richer aroma and a
captivating coffee experience. (Coffee:Chicory = 70:30) NESCAF
Sunrise-A special blend of select Robusta coffee beans are
specially roasted togive 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 withthe goodness
of Vitamin C. Available in Lemon and Peach flavors.
9. NESCAF logotype NESCAF a combination of NESTL and caf. Nes
meansMiracle cafcoffee; miracle with coffee . NESCAF in capitals
with a line going from the top of the Nto the accent on the E.
Another well-known brand element is the mug, with itsenergetic red
color. Yet none of these branding elements wouldbe so successful if
the quality of our product didnt contributeto create extraordinary
moments and inspire the simple joys oflife.
10. Nescafe Logo
11. Brand Perception Nescaf logotype was always the same since
its origin. Thelogotype borrowed the same Nestl format, and the
word Nescaf isa combination of the first three letters of Nestl and
caf, whichis coffee in Portuguese. The semantics of the brand name
basically describe the product,and also the phonetics are smooth
for most languages. Basically thelogotype improvements followed the
same improvements made onthe Nestle logotype. The symbol added to
convey the brand meaning was the red mug.Most commercials scenes
show someone holding the red mug withthe Nescaf logotype written in
the vertical position. Probably the red color of the mug was chosen
to emphasize theenergy of the drink, since coffee is a stimulating
drink and red isperfect to describe this state of mind. Therefore,
the semioticstriangle would display on the sign side, the red mug,
on the objectside, the granulated instant coffee, or the product
itself, and on theinterpretant side, the wellness state of a good
cup of coffee.
12. NESCAF Formats NESCAF Classic - pure spray dried coffee
NESCAF Gold - pure freeze dried coffee NESCAF Espresso - short,
dark roast with intensive flavor NESCAF Alta Rica, Cap Colombie,
Kenjara - premium Arabica blendedcoffees NESCAF Decaf/Decaff -
NESCAF without caffeine NESCAF Cappuccino range - foaming, creamy
coffees NESCAF 3in1 - coffee, milk and sugar
14. Coffee Blends What do you get when you take two or more
types of coffee beans and putthem together? A coffee blend! By
combining different types of beans aswell as adding flavors, a
coffee professional can give coffee a morecomplex or balanced
taste. Coffee beans, whether Arabica or Robusta, can have very
different tastes ifthey are from different regions. Some beans may
have a good level ofacidity but lack aroma, body or color. A blend
may be made of up of two orten different types of beans in varying
quantities in order to get a goodbalanced blend. Roasting is also
part of blending, as beans can be heavily roasted to have astrong
flavor or lightly roasted for a milder taste
15. Nescafe Coffee Blends Coffee tastes around the world are so
varied, it only makes sensethat NESCAF blends vary from country to
country. We prideourselves in catering to local tastes which can
differ widely byregion. In the Philippines, for instance, NESCAF
launched the Brown NCreamy variant, which contains muscovado (brown
sugar) to caterto the Filipino palate. In Vietnam, NESCAF CAF VIET
has the strong and bold taste thatVietnamese love. In Mexico,
NESCAF Caffe de Olla is a unique coffee mix withcinnamon and
piloncillo (panela). South Africans adore the fresh percolated
taste and rich aroma ofNESCAF RICOFFY which is made from coffee
beans, chicory andglucose.
16. NESCAF milestones 1938: NESCAF introduced in Switzerland
1965: NESCAF achieved an important breakthrough with thelaunch of
the first freeze-dried coffee in Europe - NESCAF GOLD. 1980: NESCAF
launches the first gourmet soluble coffees -NESCAF President in
Japan, NESCAF ALTA RICA and NESCAF CAPCOLOMBIE in France. 1984:
NESCAF launched trendy coffee products such as coffeemixes, coffee
mixtures, ready-to-drink coffee and flavored solublecoffees.
Instead of asking Would you like a coffee? the questionbecame which
coffee would you like?
17. Nescafe in India The coffee with life in it. Made in just 5
seconds. Thats how Nescafeannounced its entry into India, in 1963.
Before the ad campaign hit bill-boards across the country, Indian
coffee lovers were stuck with the idea thatcoffee is something that
takes minute attention to prepare and cannot beinstant. Nestle
changed that thinking forever as it did elsewhere in the worldmuch
earlier in 1938 which is evident from the fact that more than
4,600cups of Nescafe, the worlds first commercial instant coffee,
are beingconsumed every second. Year 2013 is an important milestone
for Nescafe in India as it completes 50years in a country which
took time to warm up to the idea of instant coffee.
19. Consumer Values This study already shown the history the
changes of Nescafs along the years.During this period, the values
related to the consumer also have developed. During the 50s and
60s, the brand values were more family oriented.Advertisements
usually shown family reunions, special around the table during
thetime of the meals. Initial campaigns created awareness of hot
instant coffee, itsinvigorating qualities, and the easy and fast
way of making it. The period between the 60s and the70s was more
youth oriented. The brand wasmore focused on the young people,
specially groups who had relation with themusic. Hippies and rock
fans were targeted with specific advertisements. The youth oriented
values followed the 80s and 90s, but as the Nescaf productarray
broaden, different values were added, such as sophistication (with
the GoldBlend) 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 thebrand "has a
focus on health and wellness and it is really moving to meet
aconsumer need. So nowadays, this wellness concept, which is based
on ahealthy lifestyle, is the main value that bond Nescaf to
consumers
20. Associative NetworksTags for Nescafe Brandtags
21. Associative Networks The channel used to construct this net
of concepts for Nescaf was basedon the brandtags.net. This website
allows internet surfers to add any wordthey have in their mind to
the brand they see on the screen. After that, aninternal website
database register all words typed to the specific brand,counts them
and constructs a visual tag net, enlarging and bolding the
mostrepeated tags. So far the website has 77,000 tags of hundreds
of brands, and Nescaf isincluded. 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 iscoffee and the second is
instant, after these comes chocolate,cheap, hot and morning. Being
a very basic analysis, the concepts coffee and instant are rootedin
peoples mind, whether if it is good or bad, the brand that
instantlycomes to peoples mind when they think about instant coffee
is Nescaf.
22. SWOT analysis
23. Strengths Strong brand name as it is associated with Nestle
It has fascinating and excellent marketing campaigns Their products
are diversified into many flavors andsegmented accordingly It has a
very strong financial position Globally known brand with a very
good reputation in themarket worldwide It has great Marketing Ps.
Their Promotion, Placement ,Product and Pricing strategies are too
good Health conscious products are made keeping in mind
thenutritious values. Good quality control over the products
24. WeaknessesPeople avoid caffeine if they are health
consciousThey have to pay a lot of sales and indirect taxesThey
have a price point portfolio system
25. OpportunityThey must reduce their price according to the
places they are selling their productsThey can expand their
business into the rural areasThey can simplify their taxing
schemes
26. ThreatsFood inflation causes threats to companies like
NestleCompetitors in the global marketMany people avoid coffee due
to their health reasons
27. CommunicationNESCAFE CLASSICChannels used: TVC, Print Media
Other advertising channels: Product placement in movies, soaps etc.
SamplingTVC 1: One of the very first commercials of Nescafe classic
in India. The TVC hitson every front very clearly regarding the
target statement
28. Message:Throughout the advertisement it can be seen that
the characters in the ad are sipping coffee at thestart of a day or
work, which caters to the most common usage space of coffee in
India ,at themorning. The advertisement starts with a recording
studio starting the recording with a sip of coffee, abook store
being opened with a coffee, an employee rushing through the
traffic, photographerclicking 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. Nescaf has a verypeculiar tune Pa PaRaPa Pa Ra Ra, many brands
use such strategies to market their brand. Forexample Kingfishers
Oo la la la oo le lo or Britannia. The idea is to make the tones o
catchythat people hum it unconsciously, or in the very recent, use
it as ringtones, marketing the brand toothers without knowing. Also
the brand recall becomes high as the person is able to recognize
thebrand 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 PainterThus it
clearly defines its target segment as the urban youth
29. Positioning:Morning drink for the spirited soul,The ad very
clearly depicts the usage and the timeof usage for the product. And
verysuccessfully was able to do so. One very noticeable thing about
the ad is that most of thejingle 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 donenormally to remove any shadow of doubt from the
minds of the consumer when they goto purchase coffee from a local
kirana store.
30. TVC 2:A slight change in the positioning from the
previousadvertisement. Nescafe released three slightly
differentadvertisements following the same theme.
31. Message:After the successful campaign of inculcating the
use of Nescafe as a daily schedule. Theytried to appeal to a
different side of the consumer, rather than more of a rational
appeal whichwas visible in the previous advertisement it was more
of an emotional connect. To break freefrom the clutter of the daily
camaraderie and enjoy in the moment. The advertisement showsa
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 enjoythe moment, like a
person does when he drinks coffee by taking a break during his
officehours. Even the background score says, Come alive to great
moments", emphasizing our previous viewpoint that this advert
waspositioned to appeal to the emotional consumer. Target
Segment:The target segment remains the same, Urban youth. The
characters portrayed in theadvertisement. A couple, and a group of
friends both of them falling under the youthsegment. Positioning:
Beverage for any moment", this advertisement can also be seen
aspersuasion to increase the usageof 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
theslogan is showing the TVC in the middle of the
advertisement.
32. TVC-3:This advertisement is a continuation of the TVC-2
described inthis 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
competitors consumers to your own consumer.
33. 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 of250 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 sachetof
Nescafe being available. Target segment:As mentioned previously,
the target segment will be mainly Sec B consumers or thelowerhalf
of the pyramid. Also, people who occasionally drink coffee, and are
reluctant topurchase 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 againemphasizing 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
productor by giving it free with other products.
34. TVC-4: After six advertisements they finally signed a
celebrity to endorse theirbrand. DeepikaPadukone was signed to
endorse the brand. Theadvertisement was released in three parts
each stage in continuation to keepup the curiosity quotient of the
consumer.
35. Message: Nescafe started the know your neighbors campaign
and signed DeepikaPadukone for the advertisement. Unlike other
advertisements which use bigstars to just recommend the usage of
product plainly. This advertisementinvolved the celebrity very
cleverly within the advertisement. The ad wasfeatured as a series
of three ads each in continuation with a to becontinued displayed
at the end of the first two advertisements. This was to generate
curiosity amongst the consumers. The message wasvery plain and
simple. The ad shows a young teenager who is ponderingover whether
to approach a celebrity who has come to live as his nextdoor
neighbor. The first ad shows Deepika pondering over the same fact
whether sheshould ask his next door neighbor for a game of
badminton or not. Theproduct is shown as being an ice-breaker or a
conversation-starter, forthe two characters.
36. The final ad shows the two characters talking when the
second celebrityenters, Karan Johar.Initially, the common teenager
Purab feels low onconfidence as the two celebrities engage in
conversation. He feels outcastamongst the two big names. Then
enters our product, Nescafe. The charactertakes a sip while in the
background a voice recites the slogan Switch on thebest in you. And
the character regains his confidence. This advertisement ison a
different track in comparison to the previous advertisements.
Theadvertisement has a humorous touch to it. Positioning: The
advertisement positioned the product as the drink that gives
strength forany challenge. The coffee that instills confidence in
you. Slogan: Switch on the best in you", daring one to take on
challenges and discoverones new self
37. Point of purchaseNescafe products are mainly sold in the
following points. Nescafe Classic being the mostcommonly 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 consumers 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 SKUs 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 Nescafes marketing is
that wherever Nescafes vending machines are present they supply
coffee in special Nescaf paper cups only. Also Nescafe has special
cups
38. Nescafe global website
39. Facebook
40. Twitter
41. NESCAF new initiative
42. NESCAF Green Blend Made from a blend of unroasted green
coffee beans and roasted coffeebeans, NESCAF GREEN BLEND has been
specially created by coffeeexperts to ensure smooth, great tasting
coffee. Although all coffee isnaturally rich in polyphenols, what
makes NESCAF GREEN BLENDdifferent are the unroasted green coffee
beans. These contains higher levelsof polyphenol, which help
maintain your body in good health over time!
43. NESCAF Ipoh White Coffee The all new NESCAF Ipoh White
Coffee thats TraditionallyYours. Its the Smoothest, Creamiest, Most
Aromatic Coffee. NESCAF Ipoh White Coffee Original now comes in a
new lookand improved recipe to produce a richer aroma and asmoother
taste. Whats more, NESCAF has also introduced 2new flavors: Brown
Sugar and Hazelnut to further delight you!Whether its the NESCAF
Ipoh White Coffee with Brown Sugarwith its distinctive caramel
taste or the NESCAF Ipoh WhiteCoffee. Hazelnut with its creamy
nuttiness and irresistible aroma, you can be sure to find the
perfect cup of Ipoh white coffee.
44. In 2010, NESTL launched theNESCAF PLAN!The plan brings
together responsible coffee farming, production andconsumption
practices throughout the value chain
45. Future generations of coffee For a business to be
successful in the long term it has to create value, not only for
itsshareholders but also for society. We call this Creating Shared
Value. It is not philanthropy oran 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 thisstrategy
and even to strengthen it. We are faced with economic, social and
environmentalchallenges such as diversifying developing economies,
aging of coffee farmers andcompetition for land & water use to
name just a few. And we are willing and capable to findsolutions.
Today, NESCAF is the worlds leading coffee brand. With great
heritage, size, expertise,people and passion come great
responsibilities, but also the power to initiate change.
Togetherwith our partners we create value for everyone who is
involved in the process of coffeeproduction and processing - from
farmers to consumers - following 3 pillars.
46. Responsible farming Our aim is that we meet the needs of
the present without compromising the ability of futuregenerations
to meet their own needs.We plan to double the amount of NESCAF
coffee bought directly from farmers and theirassociations,
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 compliantwith the internationally
recognized 4C sustainability standards by 2015.In addition, 90,000
tonnes of NESCAF 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
andpost-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 ofcommunity 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 inthe past ten years. New propagation centres will
open in coffee producing countries, starting with Mexico.
47. Responsible Consumption NESCAF is the worlds leading coffee
brand, with sales of over CHF 10 billion in 2009. Around 4,600cups
of NESCAF are consumed every second. NESCAF is available around the
world in different blends and flavors, which are adapted to
localtaste. NESCAF comes in different sizes and at different price
points, from our affordably priced productsto premium products such
as NESCAF Gold or NESCAF Dolce Gusto. It also comes in varieties
suchas NESCAF Protect and NESCAF Green Blend, a new type of coffee,
which contains high levels ofnaturally occurring polyphenol
antioxidants. To help reduce energy consumption while preparing
NESCAF coffee, Nestl is launching newinitiatives, such as improving
the energy efficiency of NESCAF Dolce Gusto machines or
facilitatingthe preparation of soluble NESCAF coffee with, for
example, a new eco-kettle which helpsconsumers prepare the right
amount of water at the right temperature. All in all, Nestl is
investing CHF 500 million in coffee projects over the next ten
years (2011-20).This includes CHF 350 million for the NESCAF Plan
and builds on the CHF 200 million investment incoffee projects over
the past ten years.
48. Nestle: Creating Shared Value NESCAF is in fact only one
brand within the Nestl family where quality goes well beyondthe
product itself. Throughout the world and across Nestl brands, were
involved in a broadrange of social and environmental initiatives
that together make quite a difference. Actually, its how weve
always done business at Nestl and is part of what we call
CreatingShared Value. For us, caring about the wellbeing of others
and the environment is integral toour 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 ourrespect for the environment and the people we
work with, including the farmers who supplyus, our employees, our
consumers and the communities where we operate. At Nestl
qualitymeans more.
