Nestlé’s NESCAFÉ Brand Auditing

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ACKNOWLEDGEMENT

We would like to gratefully acknowledge the contribution of all the people who
took active part and provided their valuable support to us in completing this
project. We would like to sincerely thank “Prof. Sanjay Chandwani” for giving
us this project and for his valuable guidance and support.

We would also like to thank BIMTECH for giving us the opportunity to study the
course of “PRODUCT AND BRAND MANAGEMENT” which has helped us to
better understand the intricacies related to marketing and branding.

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TABLE OF CONTENTS

Serial Topic Page

No. No.
1 Introduction 4
2 Nescafe’s Global Strategy 6
3 Market Segmentation 6
4 Brand Inventory 8
5 Marketing Strategy Of Nescafe 12
6 Motivation For Customers To Buy Nescafe 14
7 Customer Value Hierarchy Model 15
8 Perception Of The Brand In The Mind Of Consumers 16
9 Trend Analysis 21
10 Positioning Analysis 23
11 Positioning Of The Product 26
12 Brand Exploratory 26
13 Questionnaire- Customer Perception Analysis 29
14 Brand Equity 33
15 Recommendations 34
16 References 35
17 Plagiarism Report 36

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1. INTRODUCTION
Nescafe is a Nestle-owned brand of immediate coffee. The term 'Nestle' and 'cafe' is a mixture in which
'Nes-' means magic and 'café' mean coffee. On April 1, 1938, after being produced for 7 to 8 years by
Max Rudolf Morgenthaler, the Swiss food chemist deems an inventor of Nescafe, Nestlé’s flagship
powdered coffee product was introduced to Switzerland. The Nescafe brand was used in the USA until the
1960s on their products.

For over 100 years, Nestle has been synonymous with India. The Moga factory in Punjab is particularly
built for the production of Nestle instant coffee. In 2012-13, Nestle was awarded as the leading coffee
exporter from India by the Coffee Board of India. Nestle is following a regional marketing strategy, which
houses numerous instant coffee brands under the Nescafe brand umbrella.

Competition in the coffee industry is steep with already established brands. Tata Coffee and BRU are the
other key players in this section. With Hindustan Unilever Bru in the second position, Nescafe is the
leader of about three fourths.

It is possible to trace Nescafé, which was introduced by Nestlé, back to the 1930. The term Nescafé was
used in the USA until the 1960s on its products. Subsequently in the US, Nestlé launched a new brand
named Taster's Option, which for several years replaced Nescafé. Nescafé is Nestlé’s instant brand coffee.
The product comes in several different shapes. The terms "Nestlé" and "café" are named in the
portmanteau.

1.1 HISTORY

Quality coffee since 1938

In its rich past, you can see a rich taste of your favorite coffee. Products from Nescafe are
manufactured by Nestle. NESCAFÉ started in 1930 when the Brazilian Coffee Institute called on
Nestlé to find a means of safeguarding the enormous coffee surpluses. Nestlé took on the
challenges of making a high quality coffee cup that could be created simply by adding water,
while preserving the natural flavor of a coffee, Max Morgenthaler, and his staff. In Switzerland,
they succeeded to create the first fully soluble coffee extract worldwide after seven long years of
testing, and became rapidly more popular throughout the world. NESCAFÉ is currently the

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world's largest coffee brand with a world widespread supply of more than 4,000 cups of
NESCAFÉ.

NESCAFÉ – a blend of Nes-root and Nestlé coffee – was the name of the new product. On 1
April 1938, NESCAFÉ first came to Switzerland. But World War II hampered its performance in
Europe in the first half of the next decade. NESCAFÉ was soon exported into France, the United
Kingdom and the United States. The US forces played a major role in restarting NESCAFÉ in
Europe since it was included in the food supply. During the rest of the decade, its popularity grew
rapidly. In the 1950s, coffee became the preferred drink for teenagers who flocked to the coffee
houses to hear the fresh music of rock 'n’ roll. In 1965, NESCAFÉ started to offer the best coffee
cup in the world with the launch of Gold Blend. A few years later a new technology was
developed, captured from each coffee bean more flavor and aroma. In 1994 the method of
"absolute aroma" was invented to further improve NESCAFÉ's unique quality and character.

1.2 MISSION

In order to introduce Nescafe to people all over the world and have a Nescafe to fulfil every part
of their needs.

Nescafe gives people a strong taste and aromatic smells of coffee, providing “1 Nescafe with 1
unique moment” so that everyone can enjoy it. Either in shopping malls, supermarkets /
hypermarkets or even in food stalls, you can find Nescafe anywhere.

1.3 GOALS/ ACHIEVEMENTS

Offer people the special moments in the Nescafe (Comfort, Relax). Stress, pressure and overtime
have led people to have at least one cup of Nescafé coffee to calm them, speak to friends and
colleagues, so that emotional factors are avoided.

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2. NESCAFE’S GLOBAL STRATEGY

Through using aggressive marketing tactics internationally, Nescafe has created a high brand share.
Nescafe shapes its own strategy in each country / region to effectively target its audience and thus
generate revenue for the company's profitability and growth. It has also been noted that Nescafe as a
brand is in an intermediate process from becoming an exclusive utilitarian consumption commodity that
used to be an instant coffee to being more of a commodity with hedonic consumption as it started to grow
and sell another ble. It is not only a part of this market, but also a part of this industry. The unique
characteristics and personality of each version add value to the brand under the same name. The
enterprise aims, whenever and whenever it is required, to provide products to consumers.

Nescafe focuses on the history and coffee rituals. The global brand personality of Nescafe can be sincere,
down-to-earth, warm and truthful, polite, young, and energy-related excitement but it can only be one of
the above listed or both in functioning of the target market and variation.

In addition, with NESTLÉ being part of, with its 'NESCAFÉ Programme' CSR initiative NESCAFÉ has
taken steps to return to society. Under this system, farmers and businesses are set to decrease their
environmental footprint by minimizing wastage and waste, by educating and supplying farmers with
resources and information to increase crop yield while ensuring quality goods for their customers,
wherever they are.

2.1 VISION

Nescafe is committed to the same degree of personal relation as its customers have become
beloved by integrating these values into the culture of the business.

Imagine that Nescafe becomes a customer of excellence by offering exciting goods, sensation and
experience to a growing number of admirers in the country.

3. MARKET SEGMENTATION
3.1 GEOGRAPHIC SEGMENTATION:

The country has been divided into two sectors by Nescafe that is North and South.

The Southern Section drinks the most coffee and prefers tough and roasted coffee.

Nescafe instant coffee is eaten in higher amounts, as it has been in the North region.

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Segmentation of urban scale: cities segment by scale and population. Nescafe segment by
population level. They have many more quotes like Dhaka, Khulna, Chittagong and so on.

Urban, suburban and rural people: Nescafe offers different kinds of coffee, according to city,
suburban and rural populations.

Density: Nescafe focuses all its efforts on attracting the urban population. The organization
considers that because of its limited resources it would no longer be cost-effective to redirect
resources to rural areas.

3.2 DEMOGRAPHIC SEGMENTATION:

The populations for the segmentation of consumer groups are demographic considerations. One
explanation is that customers also have very similar needs, preferences and rates with
demographic variables.

Another explanation is that it is easier to calculate demographic variables compared to other

variables. Nescafe has demographically well divided its market. Every age group, families,
country, gender, and other socio-economic groups were segmented by the Nescafe. They are
primarily based on age and sales. Those are the following:

Age and life cycle stage: Nescafe is aimed at late teens in the early 30s. It focuses on the 30 +
segments as its secondary target market. According to Nescafe, it is Bangladesh's 18-30 segment
that is to become its potential future coffee drinkers.

Young adult café: this division with its latest range of latte items is aimed to win the lounge in
advertisement, sales promotion and competition.

Revenue: Nescafe has accordingly split its business on incomes. The other coffee brand’s price
reference. Because of its lower price than most current brands, Nescafe is extremely affordable to
all groups of people. All persons with monthly income greater than or equal to Tk.10000 are
included in the target market.

Size, quality oriented, higher revenues: the Nescafe gold and exotic tastes like Alta Rice are
targeted at customers with higher prices and quality than the general mixes.

3.3 PSYCHOGRAPHIC SEGMENTATION:

Social Class: The wealthy section of society drinks coffee. The upper strata of society was
Nescafe as such.

Nescafe's middle class (no age target), with its Blend 43, Mild Roast and Espresso items, aims for
such a big market. The customer provides both an economic profit and a better product.

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Lifestyle: Coffee consumption is thought by people to be a symbol of its wealthy and affluent
standard of living. Nescafe users or potential users are evaluated as individuals with active
lifestyles and thus Nescafe has developed its instant drinks range.

Personality: Nescafe has given its goods a brand personality that is aligned with its current and
future customers. Some of Nescafe’s personalities are: calm, ambitious, efficient, versatile and
enthusiastic.

3.4 BEHAVIORAL SEGMENTATION:

 Benefits: Nescafe users can be listed as 'People who want to be reloaded,' 'People who
want others to know that they have essential life stations,' 'People who want something
good for their day' and so on.
 Customer status: Nescafe’s markets can be categorized into non-users, prospective users,
first time users and daily coffee users.
 Usage rate: Markets are divided into medium to light coffee-drinkers. Nescafe aims to
catch the product's high to medium users.
 Occasions of purchase: Nescafé promotes its drinks as a perfect option for all occasions
such as breakfast, lunch, school, school, and important days like Valentine's Day etc.

4. BRAND INVENTORY

4.1 BRAND ELEMENTS

Brand Elements are those “trademark able devices that serve to identify and differentiate the
brand”. Brand elements including the Nescafe logo and symbol, packaging, and spokespeople
work together concurrently to allow consumers to be able to distinguish the Nescafe brand from
the competition.

4.2 LOGO

Market feedback reveals that many do not care for the Nescafe logo in particular.

Many persons keep the iconic and original logo more emotionally.

The following user feedback summarizes the majority opinion on the Nescafe logo: "I don't
simply see the reasoning behind this initiative, emotional brand relations aside. Keeping your
picture young and new is one thing, and losing millions of dollars is another? I didn't totally
oppose Nescafe's reverting to a more basic design, but they had a really powerful and
recognizable logo to revert to and I'm not sure that it would be so much required or so efficient”.

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The latest Nescafé logo updates are very subtle. Their choice was to use a new, more
contemporary, rounded, serif font, a refreshing modern change of the old and tired serif font that
they have been using for years in their logo. They have also added the last 'e' in their brand name
with a more styling red accent. This new accent is strongly underlined in all their new
promotional campaigns and is allegedly influenced by the handle of the current classic red coffee
mug.

Nescafé is also trying new things by making a bright red coffee cup and concentrating a lot of its
attention. This latest mug is supposed to be iconic and hopefully it will become a staple that can
be easily recognized worldwide. Many of their latest marketing campaigns take an aerial look at
this famous red mug. Any of these pictures are fantastic and a nice way to introduce the Nescafé
brand to new media.

4.3 SYMBOL
Nescafé's current symbol confuses many consumers with its meaning and purpose. Consumers
describe the symbol as dynamic, copious, tasty and energetic. Some have even described the
symbol in rectangular and circular shapes of the logo, a completely different brand. The colors,
shape, and pattern of the Nescafé are compared to other coffee brands like Bru, Tata Coffee etc. A
comparison of the logos is listed below.

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4.4 PACKAGING
Consumers have mixed views on Nescafe products' smart and new packaging. Nescafe packaging
decisions are affected by various factors and education. The preferences of their customers are
important among them. As consumers become increasingly conscious of the environment,
adequate packaging remains an essential priority, particularly in the freshness and protection of
all goods.
There is also an increasing phenomenon in New Zealand and Australia for smaller packages and
multi-package packages. There are smaller families here. This in turn allows us to use more
packaging per product.
Packaging: -
(i)Sustainable packaging with 200 Gr glass bowls, 100 Gr Bags or 5 G Bags, Easy to use.
(ii)Merge the iconic Nescafe logo with the red, white and black.
(iii)Creative product concept that is comfortable and environmentally friendly.

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Nescafe & Bru: Brand Mantra, POP and POD

As the competition between the two brands has become increasingly greater, we have agreed to use one of
the techniques of brand positioning to advance our research in this field and to collect more material in
order to better assess the situation.
Brand Mantra is a step of this study, it will allow us to collect some information about how Nescafe &
Bru are seen by the consumers.
So we asked people to tell us through 3 to 5 independent words, what the two brands inspires to them.
The most repeated and relevant words for Nescafe are:
 Sharing
 Happiness
 Tasty
 Friendship
 Energizing

For Bru it was:

 Motivating
 Aroma
 Fresh

The point of parity is that they are two very famous coffee brands.
The point of difference is the image that they reflect: 100% pure coffee made from finest coffee beans is
the image portrayed by Nescafe whereas Bru portrays it as a coffee brand that makes special moments of
genuine warmth and happiness.

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5. MARKETING STRATEGY OF NESCAFE

Nescafe is being operated in more than 180 countries. Nescafe forms its own strategy for each country or
region to efficiently target its audience and generate revenue for the company's profitability and growth
accordingly.
In an effort to concentrate on a more direct interaction with consumers, Nescafé is the first global brand to
shift its entire online presence to Tumblr as it shifts away from a conventional website.
The brand mostly targets the younger generation and also middle aged people.
The convenience of purchasing, availability, Low-price, favorable taste are some of the things a customer
expect in a competitive non-alcoholic beverages market and that’s what offered by
Nescafe which makes it a leader in its segment fighting neck- on the neck with Bru.

5.1 SEGMENTATION, TARGETING AND POSITIONING OF NESCAFE

Nescafe uses a mix of psychographic, geographic and demographic segmentation strategies so as

to cater to the various different segments all around the world. It uses both differentiated and
mass targeting and has different offerings available for retail customers and corporate customers
(in the form of coffee vending machines).For positioning it has used value based and usage based
positioning strategies.

5.2 COMPETITIVE ADVANTAGE IN THE MARKETING STRATEGY OF

NESCAFE

High top of mind awareness:

One of the major competitive advantages of Nescafe is the high top of mind awareness it
enjoys. Being one of the most renowned brands globally it has a huge market share and
presence in almost 182 countries. As a result it enjoys high visibility and top of mind
recall.

Strong parent company:

Nestle, the parent company of Nescafe is the world’s biggest food company. It has rich
experience in the FMCG industry and a wide reach across various countries around the
world. All this has helped Nescafe to become the brand it has become today.

Wide variety of Coffee variants:

Nescafe is one the oldest coffee brands in the world. It sells more than 5000 varieties of
coffee beans. All these variants are available in standard packaging and also in small
sachets.

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5.3 COMPETITIVE ANALYSIS IN THE MARKETING STRATEGY OF

NESCAFE

With the emergence of coffeehouses like Starbucks, Costa Coffee and Café coffee day the
beverage market has surely expanded but it has also changed the customer behavior of consuming
coffee. Brands like Starbucks have successfully built strong brand image and positive
associations towards their brands which have helped them to become so popular around the
world. But when it comes to the instant coffee segment Nescafe has been able to hold its ground
effectively competing with other brands like Bru and Tata coffee.

5.4 MARKET ANALYSIS IN THE MARKETING STRATEGY OF NESCAFE

The coffee market is a highly competitive one with the increasing number of local as well as
international players entering the market, changing climatic costs, rising labor costs, rising raw
material costs, changes in consumption pattern of consumers have significant influence over this
industry.

Reforms in health literacy, evolving demand trends, rising labor costs, socio-economic and
cultural shifts are some of the factors that have a significant impact on the market for non-
alcoholic beverages. While demands have already been saturated in developed countries due to
the presence of a large number of alcoholic and non-alcoholic beverage companies, growth is
evident in developing countries due to the increase in companies' penetration into rural and
distant areas and due to changing lifestyles, economic conditions and changing purchasing habits.
The chances of consumers moving to another brand or complementary items such as mineral
water, tea/ coffee are very high in the non-alcoholic beverage industry.

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6. MOTIVATION FOR CUSTOMERS TO BUY NESCAFE

Some of the factors which drive customers to buy Nescafe products are listed below:

Taste

Out of the total responses recorded 46.6 % people said that taste was the driving factor behind
their decision to buy Nescafe. Nescafe offers a range of coffee variants from mild to strong each
having the special full flavor taste of Nescafe which makes their coffee so loved all over the
world. Also when asked which brand’s coffee tastes the best 72.4% people responded in
Nescafe’s favor which clearly shows that taste is the biggest motivating factor behind people’s
decision to buy Nescafe. The rich aroma of Nescafe also plays an important role in a customer's
decision to buy Nescafe.

Price

Another motivating factor behind the purchase of Nescafe is the price with 29.3 % respondents
placing it as the factor driving their purchase for Nescafe products. Nescafe has reasonably priced
its products when compared with its competitors like Bru and Nescafe making it one of the most
affordable packaged coffee brands in the world.

Accessibility

Another motivating factor behind the purchase of Nescafe products was the wide accessibility of
its products. Having Nestle as its parent company Nestle enjoys access to a wide global
distribution network. It currently has a presence in more than 182 countries making it one of the
most easily accessible coffee brands around the world.

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7. CUSTOMER VALUE HIERARCHY MODEL

This model shows that goals are organized hierarchically with the buyer’s end goals or customer values at
the highest level, the consequences in the middle, and the product attributes at the lowest level.

In conclusion it can be said that the perceived attributes by consumers are concrete descriptions which
Nescafe products possess or entail. Consequences denote the outcomes from these product attributes and
the values which are linked with the consequences. These consequences refer to the perceived benefits
and the perceived sacrifices consumers get/make in order to buy a Nescafé product.

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8. PERCEPTION OF THE BRAND IN THE MIND OF CONSUMERS

Perception of customers in the global market of coffee:

Let’s identify how both brands Nescafe and Bru are perceived around 4 main topics:

The brand as a product: What do people prefer about the taste and which of the 2 is the most qualitative
one, the reliable one?

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Dig: Nescafe as a product

Nescafe is tastier than Bru, consumers clearly prefer the taste of Nescafe over Bru.

The brand as a person: what do people prefer regarding the value and identity of both brands? Which of
the 2 brands makes people dream the most? What are the best perceived values and which one of the 2
brands make people feel passion?

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Dig: Coffee as a person

Both brands' cultures are not really clear in people’s mind.

The brand as an organization: what is the culture of the brand, the universe of the brand, its
engagement through other topics.

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Dig: Nescafe as an organization

Nescafe is perceived to be a better brand in terms of engagement through social or environmental

concerns for example, with a strong brand universe, whereas Bru doesn’t seem to have a specific universe
that makes people dream.

The brand as a symbol: What brand is a myth and a symbol in people’s mind? Which logo do they
remind first?

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Dig: Nescafe as a Symbol

Once again, Nescafe’s logo is much more known than Bru’s, as well as regarding the fact that the brand is
quite a myth in people’s mind. As these 4 maps show up, Nescafe is clearly better in each topic as a brand
in people’s mind. Only the culture of the brand seems not to be really clear for consumers, who might not
have understood well the values of both brands, even if these last ones still make people dream and
belong to.
Once again, Nescafe is the top ranked brand, unfortunately for Bru.
Perceived attributes about core product “Nescafe” are:
 Convenience: Nescafe has a wide range of availability for its customers.
 Money: Customers find Nescafe products are more affordable and tasty than Bru.
 Time: time spent looking for Nescafe products are convenient.
 Taste: People perceived Nescafe tastier and a bit less bitter than Bru and better quality.

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9. TREND ANALYSIS
9.1 TWITTER

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9.2 SOME RECENT POPULAR TWEETS AND CONTRIBUTORS RELATED TO

NESCAFE

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10. POSITIONING ANALYSIS

Brand Mission: ‘Responsibly & continuously work to make coffee available to those who love
drinking it and help those who earn their bread & butter by producing it’.

Brand Tag Line: ‘It all starts with a Nescafé.’

Category: - Hot Beverages, more specifically Coffee

Target market: -

Students, youth, professionals

Middle class and above

Outgoing attitude, inspired

Light, medium user

Age group 18-35 years

Nescafe’s brand positioning has always been an instant coffee drink mix for the youth and motivated
individuals, suitable during working flows or period of relaxing. The brand positioning has more or less
remained the same since its inception in 1930s in Switzerland. Nescafe faces tremendous competition
from competing coffee, tea and hot chocolate producers. In targeting younger customers, it has also had to
compete with the soft drinks industry.

With its decaffeinated and organic products, it has continued to target health conscious individuals. The
target market for Nescafé consists essentially of coffee drinkers, especially individuals in need of instant
and skilled coffee that stimulates the body within a day. For people who want to enjoy it at home, work or
school, it is a simple solution because of its simplicity.

While coffee drinkers are far less than 1 percent of the population, 9 percent of young people are coffee
drinkers, one survey showed. More notably, almost 40% drink both tea and coffee. Owing to the extensive

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media marketing of Nescafe, this large group is very likely to be affected in the future. All of this shows
that the young generation is becoming more and fonder of coffee and the change from tea to coffee has
begun.

Nescafe has a wide range of offerings to fit everyone’s needs and lifestyle.

Pure Soluble Coffee

 NESCAFÉ Classic – medium strength

 NESCAFÉ Gold – rich & smooth
 NESCAFÉ Gold Decaf – rich & smooth
 NESCAFÉ Sunrise – medium strength

NESCAFÉ Mixes

 NESCAFÉ Latte – tasty & creamy

 NESCAFÉ Gold Cappuccino – frothy & indulgent
 NESCAFÉ Gold Choco Mocha – frothy & decadent

Ready to Drink

 NESCAFÉ Chilled Latte – thick & creamy

 NESCAFÉ Intense Café – thick & creamy
 NESCAFÉ Hazelnut – thick & creamy
 NESCAFÉ Iced Latte Can – thick & creamy
 NESCAFÉ Intense Can – thick & creamy

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10.1 POINTS OF PARITY (POP): -

 Quality ingredients
 Similarly diversified product lines
 Convenient and quick to make
 Affordable and easy accessibility from general stores and supermarkets

10.2 POINTS OF DIFFERENCE (POD): -

 Globally recognized West-influenced brand

 Healthier ingredients make coffee healthier.
 Focus on bringing users together and building a sense of well-being to share in the
user experience.
 Corporate social responsibility through the NESCAFE programme, carried out by the
parent company and NESCAFE. For the entire coffee supply chain, the emphasis is
on building value.

11. POSITIONING OF THE PRODUCT

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12. BRAND EXPLORATORY

12.1 BRAND ASSOCIATION

12.2 MEMORABILITY SOURCE

Achieving a high level of brand recognition is a required condition for building brand equity.
Nescafe has an internationally widely recognized brand name and is generally distinctive and

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attention-getting, adding to overall consumption. The brand has effectively positioned itself in the
marketplace so that customers can quickly remember the Nescafe brand name.

 Advertisements: - Per year, Nestle spends an average of $2.3 billion on advertising

stands alone. As Nescafe is one of Nestlé’s flagship brands, the advertising budget for
it will be big. Every now and then, with the catchy and new media advertising,
Pepsi's advertising are considered to be very creative.
 Brand Ambassadors: - Young and talented Bollywood actress Disha Patani is the
new brand ambassador of this brand. In their new brand campaign and
advertisements, she can be seen. For a long time, the brand ambassador for this
coffee giant was Deepika Padukone. While she was on board, there were some
unforgettable promotions that included some other biggies, such as Karan Johar, Vir
Das, Imran Khan and Purab Kohli.
 Creating memorable experiences: - The campaign was launched to support the 'It
All Begins with Nescafé' tag line and how coffee can be a perfect way to build a new
bond with individuals. Nescafé has a very distinctive melody and jingle that has long
been part of most of their television advertisements. They are known to make
brilliant coffee and this is beautifully demonstrated in most of their advertising.
 Engaging customers in fun, interactive ways: - The current fan group of Nescafe
had already posted photos with brand images on social media, and these images
outperformed owned social content. Curation of user-generated content is a
cornerstone of the current social strategy focused on this knowledge. Nescafe has
succeeded in brewing brand love and discovering true business value from the
immense potential of social listening through motivating graphics, innovative content
and events to inspire user-generated content.

12.3 MEANINGFUL SOURCE AND DESCRIPTION

Nescafe knows best how, through the right channel and initiatives, to tap and engage the target
market to trigger people to purchase their product. Nescafe has proved to be very popular, from
ads and other promotional events to their campaigns. The supply chain management was also at
its best when positioning their brand. The brand's ubiquity and simple accessibility make it
number one among coffee brands. The continuing trends are specifically targeted by campaigns
like '#CHILLkarophirSTARTkaro' or '#BadalLifeKiRaftaar'.

12.4 LIKEABILITY SOURCE

It can be evaluated by different methods, such as brand attractiveness, brand attitude, ads and
promotions, and Nescafe is considered to be a very friendly product as well as a brand. The
packaging is modern and elegant and aesthetically appealing, which helps to identify the brand,
convey compelling descriptive detail, promote transportation and security, assist in home storage,
and assist in the consumption of goods. In addition, Nescafe uses celebrities as its spokespeople
to make the brand more pleasant and interesting.

12.5 EXTENT OF TRANSFERABILITY

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Nescafe is a multinational brand; it must be able to transfer its brand elements through different
cultures and regions. The iconic emblem and logo of Nescafe, the red cup, as well as its slogan,
are easily transferable across different types of goods and across regional boundaries and cultures.
To successfully launch the Nescafe brand into new markets, all three components function
together synonymously.

12.6 ADAPTABILITY

In India, Nescafe has a market share of 52 percent in the coffee sector and is the market leader,
indicating that it is more embraced by consumers. To assist with product use, it has adapted its
image as well as its logo. Nescafe has welcomed change as obvious in its numerous font and logo
changes to remain contemporary and important to customers and has shown its ability to adapt
over time.

13. QUESTIONNAIRE – CONSUMER PERCEPTION ANALYSIS

SAMPLE SIZE - 58
LOCATION - DELHI NCR

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AGE GROUP - 18-35 years

In the survey, 50% of the responses reflected a clear preference of beverage that is coffee to serve to their
guests. Even though the choice of beverage to welcome your guest depends upon religious, ethnic and
cultural background, in our survey coffee seemed to be the most prevalent one.

77.6% of the responses suggest that coffee is a much liked beverage.

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In a price sensitive country like India, one would imagine that price and accessibility will be more
prevalent factors over taste. But in the survey this finds that 46.6% of the respondents preferred Nescafe
because of its taste and the second most prevalent factor is the price.

There are many brands of coffee which are retailed in the market for around the same price range. Three
such brands are Nescafe, Bru and Tata Coffee were selected for the survey, as these are the most widely
sold coffee brands and major competitors in the Indian market. An attempt to draw a conclusion about the
preference of brands based on taste, Nescafe got the majority share of preference over the other two
brands in this survey.

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Preference of taste and brand of coffee can often be biased based on availability right off the shelf.
Keeping that in mind, in the next question, we tried to figure out visibility of the brands. Nescafé again
claimed to share a majority percentage of votes in favor of more visibility over other brands.

The frequency of buying of the product varies between multiple time frames. More than 30% responses
suggest a buying frequency of 2 times a week, followed by 5 or more times a week. Many (aggregated
24.1%) responses suggested that they wouldn’t buy Nescafé.

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In the survey, it was clearly observed that, given a more varied choice of flavors or a more bargain price,
customers are open to try out other products of other brands.

In the survey, the majority feedback of the respondent was that Nescafé should try to improve their
quality of products.

14. BRAND EQUITY

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Aaker’s brand equity model for Nescafe

14.1 BRAND AWARENESS

Nescafe is one of the most popular brands across the world .It is the largest brand in
Nestlé’s portfolio which itself is the world’s largest food company. It has a very strong
customer base in the instant coffee market which is its main product category. In India it
is the market leader in the instant coffee segment and has always had exceptional
advertisement campaigns roping in some of the most famous celebrities like Deepika
Padukone and Karan Johar.

14.2 BRAND ASSOCIATION

In order to increase its brand equity Nescafe has always worked on creating positive
associations with its brand. In India its brand campaigns have always been centered on
youth, mostly depicting young people grabbing a cup of coffee and going for their day to
chase their dreams. Another campaign “switch on the best in you” represents the product
as an ice breaker between two strangers and bringing out the best in oneself. One of the
most recent campaigns “Karne se hi hona hai” which comes during the coronavirus
pandemic shows young people grabbing a cup of coffee and getting up once again amid
the pandemic situation to chase their dreams. As a result of these campaigns people
associate Nescafe as a booster they need to get up and start their day. It is seen as
pushing people to pick themselves up and show their best side in order to achieve their
dreams.

14.3 BRAND LOYALTY

On a global level Nescafe enjoys a fairly loyal customer base with most of the customers
not willing to switch to another coffee brand. This massive brand loyalty can be attributed
to the rich lineage and presence of Nescafe since the 1930s.As a result of this,
generations of people have been attached with the brand and everyday new customers are
getting added to their customer base. However with the emergence of more and more
competitors like Starbucks, cafe coffee day, Bru, Tata coffee etc. and changes in the
consumption pattern of coffee, customers are not completely loyal to a particular brand.
They may switch to another brand if it is being offered at a cheaper price and is easily
available to them.

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15. RECOMMENDATIONS

There are many things that Nescafe is doing well at and should consider doing in the future. On
the other hand, there are multiple things that Nescafe could work on and improve in the future.
One thing that Nescafe does well and should continue doing in the future is making wise
decisions. In order to continue to grow their business. Nescafe has spent a large amount of
money on marketing and advertising campaigns. These campaigns have been successful and
resulted in growing market share over the company's competitors. Nescafe should be linked with
the current agencies to build products from a global and local perspective to catch and take
market share in different markets. However, the promotions of coffee-drinkers in future should
not be totally redirected and should also be carried out for adults and the elderly. Using 360-
degree marketing strategies ensures that the target customers can be met very easily and should
be continued.

Further they can work on the following points:

 It is recommended that Nescafe boost its branding by developing more sources of

relationships with its clients
 The health benefits of coffee along with economy during branding are rated in the
Nescafe prices
 By designing referral strategies and social media initiatives to boost revenue, the business
will gain a competitive advantage
 In order to rapidly transfer goods, prices of goods with lower food costs and more
margins may be marginally reduced.
 Provide extra discounts and consumer attractions.
 Launch economics definition or "buy two free"
 Enhance recycling efforts to address environmentalism

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16. REFERENCES

https://unionmetrics.com/free-tools/twitter-snapshot-report/
https://www.nescafe.com/in/our-coffees
https://www.indiantelevision.com/mam/marketing/brands/nestle-india-ad-
and-sales-promotion-expenses-up-44-in-2018-190315
https://brandyuva.in/2018/09/marketing-strategy-of-this-premium-coffee-
brand-nescafe.html
https://www.talkwalker.com/blog/how-nescafe-dolce-gusto-quadrupled-
engagement-by-listening-to-coffee-lovers-on-social
https://www.marketing91.com/marketing-strategy-nescafe/

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17. PLAGIARISM REPORT

SOURCE: Small Seo Tools

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