8/4/2019 Individual Report Nescafe

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About the CompanyNescaf is a brand of instant coffee made by Nestl. It comes in the form of many differentproducts. Nestl's flagship powdered coffee product was introduced in Switzerland on April 1, 1938 afterbeing developed for sevenor eight years by Max Morgenthaler.

Brazilian coffee meets Swiss science. Thats how NESCAFwas born. It all started in 1930, when the Brazilian government

asked the NESTL company to create coffee cubes. TheBrazilians goal was to use their large coffee surplus.

Eight years of research resulted in a coffee that could bemade by simply adding water but which retained the coffee'snatural flavors.

Soluble coffee was introduced to the world on April 1, 1938.The new product was named NESCAF a combination ofNESTL and caf.

During World War II, it became the staple beverage of the USarmed forces and, from then on, its popularity really took off.NESCAF has become the favorite coffee of many generations all over the world.

NESCAF is a brand that is known and trusted around the world. The name is a combination of the firstthree letters of NESTL, our parent company, and caf, which is Portuguese for coffee. (WhyPortuguese? Because it was the Brazilian government which first asked NESTL to develop solublecoffee.) Luckily, its three simple syllables have proven successful in every language.

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In Hebrew, the word NES means MIRACLE & CAF means COFFEE. So, together its a miracle withcoffee. Nescafe has come to symbolize coffee in India. It has a wide range of products in India- original,mocha, gold, premium, 3 in 1 coffee mixes, rich light breakfast. Currently it is the leading coffee brand inIndia followed by Bru.

Nescafe is marketed in India by Nestle India ltd. NESCAFE has targeted almost whole of Indian all age

segments. Majority of Nescafe products are sold in urban areas. The main targets are the youth and themiddle aged Indians.

It has following products:

CLASSIC

SUNRISE Premium

SUNRISE Special

CAPPUCCINO

3in1

Marketing Strategy

urrently, the escafes market share stands at 48%, second to that of HULs BRU which stands at51.5%. However traditionally, Nescafe has been the market leader in Indian markets.

Promotional Mix

You will most probably recognize our logotype: NESCAF in capitals with a line going from the top of theN to the accent on the E. Another well-known brand element is the mug, with its energetic red color. Yetnone of these branding elements would be so successful if the quality of our product didnt contribute tocreate extraordinary moments and inspire the simple joys of life.

Most commercials scenes show someone holding the red mug with the Nescafe logo written in the

vertical position.

Sm as ha bl e El em en ts : The Red Mug with Nescafe written on it

The red color of the mug emphasize the energy of the drink, since coffee is a stimulating drink and red is

perfect to describe this state of mind.

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offee at its best - tagline.

The Red mug represents vibrancy and bliss.ho shuru har din aiseTaste that gets you started out, taste that gets you going.Nescafe promotes drinking of coffee to start a new day Nothing wakes you up as Nescafe does

signify it as a refreshing drink.

Nescafe is packaged in various forms to cater to the needs of various segments of the societyviz.

Nescafe single serve sachetsPaper packstin cansGlass jarPlastic jarStick Pack

Recently launched NESCAFE 3 in 1Instant Coffee is a perfect mix of coffee, cream and sugar.The main mode of promotion is advertisement with popular catchy songs. Deepika Padukone(Actor) hasbeen contracted to endorse Nescafe range of products.

Free Nescafe coffee mugs and merchandise are given away at select stores.Nescafe has been doing 360 degree promotional activities like CRM (Customer RelationshipMgmt), pop (Point of Purchase), vending machine network.Large number of banners are already circulated in India.

Nestle India has made Bollywood actoress Deepika Padukone as the brand ambassador forcoffee brand Nescafe. This would be the first such celebrity association for Nescafe in its

existence in India.

The new strategy will serve two purposes: first to get coffee sales back on track and secondlyto increase its market share in the market.

It is not about the market share but we have to grow the pie, so we have to invest in thecategory just like we are doing in other categories, said Antonio Helio Waszyk, MD of NestleIndia.

But for Nestle, coffee is also one of its only high margin segment in its current portfolio.

With a new brand ambassador and aggressive marketing campaigns, profitability in the short termcould get impacted.Meanwhile, Nestle India is adding on star power to its current Nescafe ad campaigns which features cine

star Deepika Padukone. With the tagline 'Switch on the best in you' Nescafe's new commercial now

features Karan Johar, Purab Kohli and Deepika Padukone.

8/4/2019 Individual Report Nescafe

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a new campaign for its highly successful coffee brand, Nescafe. Armed with a new brand ambassador on

board with charismatic Deepika Padukone, the brand managers at Nescafe went to town with their

creative cells, and came up with a refreshingly fresh concept, with Purab Kohli playing a role as well.

They started with a basic teaser, and followed it up with the complete ad. Watch the ads on the afaqs

links below:

Teaser 1 ; Complete Version

The two ads are well crafted, and project a sense of simplicity, of happiness being present in the

simplest things in life. It introduces a new tagline Bring out the best in you. It also reemphasizes the TG

of the brand, which is the youth.

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The teaser helps build up a suitable buzz, especially given the celebrity quotient of the ad. And the finale

is pretty well done.

The above concept extended the association between Nescafe coffee and happiness. But, it was the

next ad in the campaign which was the real masterpiece. Bringing in Karan Johar, the brand has attacked

its fast emerging competitor : the Cafes. Watch the campaign here: Nescafe takes on Cafes

The CCDs and Costa Coffees of the world have brought in a lot of new and exotic variants of coffee

preparation in India, and were threatening the concept of drinking simple milk/black coffee at home

(the threat at the moment is minor, but has been tackled head on early in its trajectory). With this

campaign, the brand managers have tried to make the customers understand that the exotic names in

the Cafe menus are not a rocket science of preparation. For instance, it shows that Latte is your general

coffee preparation at home, Mocha is merely adding some chocolate powder to it and so on. The

campaign encourages customer to try these on their own at homes. The tagline : One Nescafe, Many

Coffees tops it up nicely

I believe that the attempt is a great one, and leverages Nescafe as a brand to reckon with, both when

competing with players like Bru as well as ones like CCD. (Read my review of current campaign of

Bru here ). The take on Cafes shows that the vision does not suffer from the conventional Marketing

Myopia. Over at Nestle, they realize astutely who all are and can be competitors, and the threats are

tackled in time.

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