Nescafé With Complete Charts
Nescafé With Complete Charts
Nescafé With Complete Charts
b) Attitude
Post testing: this testing is done after the advertising campaign is fully
run. It finally evaluates whether the advertising campaign has
produced the desirable results or not. It is done through Recall test,
recognition test, Attitude change, sales test, etc.
INDUSTRY PROFILE
The Indian agriculture sector has come a long way since the time of
independence. With the emergence of green revolution, India agricultural
Industries have transformed itself from a country of shortages to a land of
surpluses. With the rapid growth of the Indian economy, a shift is also being
seen in the consumption pattern of the country, from cereals to more varied
and nutritious diet of fruit and vegetables, milk, fish, meat and poultry
products. All these efforts have resulted in the development of a sunrise
industry namely the Food Processing Industries.
Further there was an absolute revenue increase of Rs. 900 billion in food
manufacturing between 1993 and 2000 which is in contrast with Rs. 150
billion and Rs. 300 billion for the pharmaceutical and IT industries,
respectively. Overall, taking everything in accordance the value of the Indian
food industry has increased from Rs. 3.09 trillion in 1993-94 to Rs. 3.99
trillion in 2000-01. The segments which have the largest growth potential
have been identified as dairy, wheat, fruits and vegetables, and poultry. This
report has also identified some of the major challenges for the emerging food
industry in India.
Statistics
India’s food ecosystem offers huge opportunities for investments with
stimulating growth in the food retail sector, favourable economic policies and
attractive fiscal incentives. The food and grocery market in India is the sixth
largest in the world. Food and Grocery retail market in India further
constitutes almost 65% of the total retail market in India.
The Indian Food Processing Industry with its vast potential has emerged as
one of the major driver of economic growth and development. It is
encouraging to make analyses that while the country's GDP growth rate had
increase from 3.5 % in 2002-03 to 9 % in 2006-07; the Food Processing
Industry has grown from 7 % to 13.1 % during the same period .
Food Processing Industry Domestic and Export Share Food Processing Industry
In 2014, the Exports of agricultural products from India are expected to cross
around US$ 22 billion mark and would account for 5 % of the world's agriculture
exports, Even the Exports of floriculture, fresh fruits and vegetables, processed
fruits and vegetables, animal products, other processed foods and cereals rose to
US$ 7891.8 million in 2008-09 from US$ 7877.07 million in 2007-08, according to
the Agricultural and Processed Food Products Export Development Authority
(APEDA).
India has been and is one of the world's major food producers but accounts for
less than 1.5 % of international food trade. This indicates vast scope for both
investors and exporters. In 1998, Indian Food exports stood at US $5.8 billion
whereas the world total was US $438 billion. The Indian food industries sales
turnover is Rs 140,000 crore annually as at the start of year 2000. The industry
has the highest number of plants approved by the US Food and Drug
Administration (FDA) outside the USA.
ITC Limited
Amul
Milkfood
MTR Foods Limited
Unilever
Conagra Foods
Nissin Foods
Walmart
Venky's
Major industries constituting the food processing industry are grains, sugar,
edible, oils, beverages and dairy products.
COMPANY PROFILE
Nestle is the largest food company in the world, in terms of revenue. It is a
Swiss Company established in 1866 by its founder Henri Nestle. While its
main foray is foods and drinks, it has hundreds of products, nearly 2000.
Some of its most famous products and brands include Maggi, Kit Kat,
Nespresso, Nescafe, etc.
The overall turnover for Nestle was approx 90 billion Swiss Franc in 2016. It
operates 418 factories in 86 countries, employing nearly 339,000 people
worldwide. Its products are available in 191 countries of the world.
Mission:
Vision:
Portfolio
Nestle has a large variety of different products and brands in its portfolio. Let
us just take a look at the few important ones,
Nestle Health Science: Nestle has been one of the pioneers in nutritional
sciences. They produce foods such as Boost, Meritene, Nutrin Junio, etc
to promote pediatric care, brain health, etc.
After more than a century-old association with the country, today NESTLÉ
India has presence across India with 8 manufacturing facilities and 4 branch
offices.
NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in 1961
followed by its manufacturing facilities at Choladi (Tamil Nadu), in 1967;
Nanjangud (Karnataka), in 1989; Samalkha (Haryana), in 1992; Ponda and
Bicholim (Goa), in 1995 and 1997; and Pantnagar (Uttarakhand), in 2006. In
2012, NESTLÉ India set up its 8th manufacturing facility at Tahliwal (Himachal
Pradesh).
The company’s four factories were awarded the internationally predictable external
certification ISO 14001 for adherence to environmental processes and OSHAS 18001
for Health and Safety. In the year 2008, the company launched Nestle Nesvita Pro-
Heart Milk with Omega-3 in Mumbai. Nestle Nesvita Pro-Heart is part of daily diet and
has Omega-3 heart friendly nutrients scientifically known to help manage cholestrol.
As part of their ongoing dedication to offering best in class nutrition products to Indian
consumers, the company launched NESTLE NAN 3, a follow-up formula for older
infants. During the year, MAGGI PICHKOO Tomato Ketchup was launched in a unique
easy to handle day pack to drive affordability, taste and convenience for a larger
number of consumers.
Milestones achieved
CNBC Awaaz Consumer Awards has honoured Nescafe as the most preferred coffee
brand.
In 2011-2012 Nestle India was awarded the ‘Best Exporter of Instant Coffee’, ‘Highest
Exporter to Russia and CIS”, ‘Highest Exporter to Far East Countries’.
Recent developments
The company has introduced products in milk segment for daily consumption and use
such as Nestle Milk, Nestle Slim Milk, Nestle Fresh ‘n’ Natural Dahl and Nestle Jeera
Raita.
Growth of nestle
In 2008 profit growth are increase 29.06%, in 2009 profit growth are increase 22.64%,
in 2010 profit growth are increase 24.99%, in 2011 profit growth are increase 17.45%,
in 2011 profit growth are increase 11.06%.
In 2008 sales are increase 23.40%, In 2009 sales are increase 18.62%, In 2010 sales
are increase 21.94%, In 2011 sales are increase 19.76%, In 2011 sales are increase
10.83%.
The lower net profit growth is also due to a reduction in the tax benefits enjoyed by the
company at its Pantnagar plant in the March 2012 quarter. net profits expanded just 9
per cent in the March 2012 quarter; growth in the March 2011 quarter stood at 27 per
cent.
The Nestle scrip closed at Rs 4,938.10 up by 0.92% while the Bombay Stock
Exchange marginally declined by 0.33% to close at 17,151.29.
In 2010 operating profit are 1015.39 crore, In 2011 operating profit are 1245.42 crore,
In 2012 operating profit are 1537.96 crore. Nestle company every year increase the
profit because of the customer are purchased from the different product in the market.
Customer are satisfied for the all the products.
Nestle Nescafé
We are engaged in offering Instant Nescafe Premix, which is prepared by just adding
hot water. It is instant to prepare, and additional sugar or milk is not required. We
procure these instant Nescafe premix from reliable vendors of the market, keeping in
mind the varied requirements of our clients. These are made using perfect proportions
ensuring rich taste and pleasant aroma
Marketing department
Product:
Milkmaid
Lacto gain
Nestle cerelac
Nestle Nescafe
Nestle munch
Nestle kitkat
Nestle magi
Nestle nestogen
Distribution channel:
manufacturer
agent
distributor
retailer
end customers
Segmentation:
Geographic segmentation:
It is compare the spending levels, income levels, employment levels and buying
lifestyle.
Demographic segmentation:
This refers to ways of separating people according to age, gender and income.
Psychographic segmentation:
There are no. of important issue to not regarding the use of socio – economic groups.
They refer to the head of household. They do not refert to income levels.
Behaviouristic segmentation:
It is considered consumer behavior patterns.
SWOT ANALYSIS
Strengths in the SWOT Analysis of
Nescafe:
Brand Equity: Nescafe’s brand value is $17.4 billion and is the largest brand
in the Swiss giant portfolio. Also, it is the brand of Nestle so it also possesses
a strong financial backing and availability of resources.
Quality: Nescafe is a good quality product and has managed to stay away
from controversies. They have stringent quality control techniques and have
managed to develop a strong bond with its customers.
Economies of scale: They are quite simply the largest coffee brand in the
world. Furthermore, they are from the house of Nescafe due to which they
enjoy the enormous resources at their disposal. They use the same distribution
channel which exists for Nescafe and hence their expenses on distribution are
very less also. Nestle has a good ROI and margin due to the economies of
scale,
The Nescafe jingle: Nescafe has one of the most loved advertising jingle.
Health Consciousness: People who are more considerate about health they
tend to move away from caffeine content drinks.
Tie-ups: It can tie-up with different corporate, educational institutes and other
public enterprises to gain market share and drive profits.
Biscuits: Nescafe can plan on biscuits or cookies which can be sold with the
coffee or which goes very well with the coffee flavor. They can also make
these biscuits as premium biscuits in the market.
Direct Competition: In India Bru is the market leader in the beverage category
and is giving a hard time to Nescafe. This competition is getting more and
more intense with other brands growing as well like Tata Coffee etc.
LITERATURE REVIEW
According to Wheeler, “Advertising is any form of paid non-personal
presentation of ideas, goods or services for the purpose of inducing people to
buy”.
Erdem and Keane (1996) observed that “the higher the advertising
frequency, the higher the brand choice probability”.
Dr. Naveen Kumar, Kirti Singh (2011) Consumers are highly influenced by
advertising in their preference for the brand. The mean value of the
consumer’s preference for Nestle is 4.36 which is the highest in comparison to
various brands. The major reasons for this preference are its attractive
advertising policies and rich quality. The survey reveals that TV
advertisements of Nestle influence the buying of consumers the most. The
creative presentation and language of TV advertisements of Nestle are
successful to convey message, emotion, value system regarding the product.
The study clearly reveals that the advertisement has its impact on buying
behaviour of consumers.
Adekoya Olusola (2011), the role of advertising on the sales volume of a
product is very important because oftentimes consumers’ decisions as regards
what to buy is motivated by what has been seen heard of or practically used.
RESEARCH METHODOLOGY
Research Problem
A research problem is a statement about an area of concern, a condition to be
improved, a difficulty to be eliminated, or a troubling question that exists in
scholarly literature, in theory, or in practice that points to the need for
meaningful understanding and deliberate investigation. In some social science
disciplines the research problem is typically posed in the form of a question. A
research problem does not state how to do something, offer a vague or broad
proposition, or present a value question.
Types of
Research Design
Exploratory Conclusive
Research Design Research Design
Longitudnal Cross-Sectional
Research design Research Design
Sampling
Sample Unit: Each and every member of sample is called sampling unit.
Population: It refers to group of people or objects that form the subject of
study in a particular survey and are similar in one or more ways.
Primary data: Primary data has been collected directly from sample
respondents through questionnaire.
Description of Questionnaire
A questionnaire is a research instrument consisting of a series of questions for
the purpose of gathering information from respondents.
15 -20
21 - 40
31% 41 -60
60%
Inference:
Above chart reveals that 60% of the respondents are in the age group of 15-20,
31% are in the age group of 21-40, and 9% are in the age group of 41-60.
Gender No. of respondents Percentage
Male 22 63
Female 13 37
Others 0 0
Total 35 100
Respondent’s classification according to their gender.
Gender
37% Male
Female
Others
63%
Inferences:
Above Chart reveals that 63% of the respondents are males, 37% of them are
females, and 0% are others.
Income (in Rupees) No. of respondents percentage
Below 15,000 28 80
15,000-30,000 4 11
30,000-60,000 1 3
Above 60,000 2 6
Total 35 100
Respondents classification according to their income.
11%
less than 15,000
15,000-30,000
30,000-60,000
Above 60,000
80%
Inferences:
Above chart reveals that 80% of the respondents have income below 15,000,
11% of them have income between 15,000-30,000, 3% of them have income
between 30,000-60,000, and 6% of them have income above 60,000.
How often do you consume coffee?
Particulars No. of respondents Percentage
Once in a day 12 34
Twice in a day 7 20
More than twice in a 4 12
day
Not regularly 12 34
Total 35 100
34% 34%
Once in a day
Twice in a day
More than twice in a day
Not regularly
11%
20%
Inferences:
Above chart reveals that among 35 respondents, 34% consume
coffee once in a day, 20% of them consume it twice in a day,12%
more than twice, and 34% consume it irregularly.
Coffee Advertisements are essential.
Particulars No. of respondents Percentage
Agree 17 48
Somewhat agree 8 23
Neutral 9 26
Somewhat disagree 0 0
Disagree 1 3
Total 35 100
3%
26%
Agree
Somewhat agree
49% Neutal
Somewhat disagree
Disagree
23%
Inference:
Above chart reveals that among 35 respondents, 48% of respondents
agree that coffee advertisements are essential, 23% of them slightly
agree, 26% are neutral, 0% slightly disagree, and 3% show
disagreement with the statement.
How familiar are you with Nescafé coffee?
Particulars No. of respondents Percentage
Extremely familiar 16 46
Very Familiar 12 34
Somewhat familiar 5 14
Not so familiar 2 6
Not at all familiar 0 0
Total 35 100
6%
14%
Extremely familiar
46% Very familiar
Somewhat familiar
Not so Familiar
Not at all familiar
34%
Inferences:
Above chart reveals that among 35 respondents, 46% of the
respondents are extremely familiar with Nescafé brand,34% of them
are very familiar, 14% of them are somewhat familiar, 6% are Not
so familiar, and 0% respondents are not at all familiar.
Through which media have you seen the advertisements of
Nescafé?
Particulars No. of Respondents Percentage
Newspapers, Television, 2 6
Others (NTO)
Newspaper and Television 5 14
(NT)
Television (T) 24 68
Television and Others (TO) 2 6
Newspaper, Television, and 2 6
Magazines (NTM)
Total 35 100
6% 6%
6%
14%
NTO
T
NT
TO
NTM
69%
others
Billboards
Social Media
Magazines
Television
Newspapers
0 5 10 15 20 25 30
Inferences:
Above Bar graph reveals that 7 respondents are of the opinion that Nescafé
advertisements should be shown in Newspapers, 27 respondents suggest
Television, 4 respondents suggest Magazines, 17 respondents suggest social
media, 3 respondents suggest Billboards, 3 respondents suggest Other media
vehicles.
Do you like advertisements of Nescafé?
Particulars No. of Respondents Percentage
Yes 35 100
No 0 0
Total 35 100
Yes
No
100%
Inferences:
Above chart reveals that among 35 respondents, 100% of the respondents like
the advertisements of Nescafé and 0% of them dislike the advertisements of
Nescafé.
0 5 10 15 20 25
Inferences:
6%
17%
Agree
Somewhat agree
Neutal
Somewhat disagree
Disagree
14%
63%
Inferences:
Above chart reveals that among 35 Respondents, 63% agree that Nescafé
Advertisements are memorable, 14% slightly agree, 17% stay neutral, 0%
slightly disagree, and 6% disagree.
Nescafé advertisements are eye-catching.
Particulars No. of Respondents Percentage
Agree 17 48
Somewhat agree 10 29
Neutral 7 20
Somewhat disagree 0 0
Disagree 1 3
Total 35 100
3%
20%
Agree
Somewhat agree
49% Neutral
Somewhat disagree
Disagree
29%
Inferences:
Above chart reveals that among 35 Respondents, 48% agree that Nescafé
Advertisements are eye-catching, 29% slightly agree, 20% stay neutral, 0%
slightly disagree, and 3% disagree.
Nescafé Advertisements match with the company’s image.
Particulars No. of respondents Percentage
Agree 14 40
Somewhat agree 16 46
Neutral 4 11
Somewhat disagree 1 3
Disagree 0 0
Total 35 100
3%
11%
40%
Agree
Somehwhat agree
Neutal
Somehwhat disagree
Disagree
46%
Inferences:
Above chart reveals that among 35 respondents, 40% agree that Nescafé
advertisements match with the company’s image, 46% slightly agree, 11%
stay neutral, 3% slightly disagree, and 0% disagree with the statement.
Do you remember the slogan or tagline of Nescafé?
Particulars No. of Respondents Percentage
Yes 15 43
No 10 28
Somewhat 10 29
Total 35 100
29%
43%
Yes
No
Somewhat
29%
Inferences:
Above chart reveals that among 35 respondents, 43% remember the tagline of
Nescafé, 28% do not remember, and 29% somewhat remember it.
Does the presence of famous personalities in the advertisement
affect your choice of brand?
Particulars No. of Respondents Percentage
A lot 5 14
A moderate amount 11 32
A little 12 34
Not at all 7 20
Total 35 100
14%
20%
A lot
A moderate amount
A little
Not at all
31%
34%
Inferences:
Above chart reveals that among 35 respondents, 14% say that the presence of
famous personalities in the advertisements affects their brand preference a lot,
32% say that they are affected moderately, 34% say that they are affected a
little, and 20% say that they are not at all affected.
Does Nescafé Advertisements affect your consumption of
Coffee?
Particulars No. of Respondents Percentage
Yes 21 66
No 14 34
Total 35 100
40%
Yes
No
60%
Inferences:
Above chart reveals that among 35 respondents, 60% say that Nescafé
advertisements affect their advertisements affect their consumption of coffee,
40% say that it does not affect them.
Do you feel satisfied with the quality of product shown by the
Nescafé coffee advertisements?
Particulars No. of respondents Percentage
Extremely satisfied 12 34
Quite satisfied 13 37
Somewhat satisfied 10 29
Somewhat dissatisfied 0 0
Quite dissatisfied 0 0
Extremely dissatisfied 0 0
Total 35 100
29%
34%
Extremely satisfied
Quiet satisfied
Somewhat satisfied
Somewhat dissatisfied
Quite dissatisfied
Extremely dissatisfied
37%
Inferences:
Above chart reveals that among 35 respondents, 34% are extremely satisfied
with the product quality shown in advertisements and its real quality, 37% are
quite satisfied, 29% are somewhat satisfied.
How would you compare Nescafé advertisements with
competing advertisements for similar products?
Particulars No. of respondents Percentage
Much better 9 26
Better 18 51
About the same 7 20
Worse 1 3
Much worse 0 0
Total 35 100
3%
20% 26%
Much better
Better
About the same
Worse
Much worse
51%
Inferences:
Above chart reveals that among 35 respondents, 26% are of the view that
Nescafé Ads are much better than the competitors’ Ads, 51% believe Nescafé
Ads are better, 20% believe it to be about the same as competitor’s, 3% say
that Nescafé Ads are worse than the competitors’ Ads.