Nescafe_Basic Situation Analysis

MMI 3033

DESIGN PROJECT 1

( MEDIA INNOVATION)

[ BASIC SITUATION ANALYSIS]

Product Name: Nescafe

LAI VOON KEAT 1061104071

PROGRAMME: DESIGN PROJECT 1, MEDIA INNOVATION

DATE OF SUBMISSION:

YEAR: DELTA 1, TRIMESTER 2

TABLE OF CONTENT

CHAPTER 1 PROHECT OVERVIEW

1.1 INTRODUCTION1.2 PROBLEM STATEMENT AND ISSUES1.3 OBJECTIVE AND AIMS

CHAPTER2 PROJECT PROFILE

2.1 PRODUCT NAME

2.2 PRODUCT CLASSIFICATION

2.3 PRODUCT CHARACTERISTICS

2.4 PRODUCT RANGE

2.5 DISTRIBUTION

2.6 PRODUCT LIFE CYCLE

2.7 BRAND IMAGE AND IMPLICATION

2.8 STRENGTH AND WEAKNESS

2.9 ADVANTAGES AND DISADVANTAGES

2.10 UNIQUE SELLING PROPOSITION ( USP )

2.11 PROMOTIONAL HISTORY AND ADVERTISING SCHEDULE

2.12 POSITIONING STATEMENT

CHAPTER 3 THE COMPANY

3.1 COMPANY OVERVIEW

3.2 BUSINESS DESCRIPTION

3.3 COMPANY PROFILE

3.4 KEY PEOPLE

3.5 LOCATION AND SUBSIDIARIES

3.6 BRANDS, MAJOR PRODUCTS AND SERVICES

3.7 MISSION

3.8 VISION

3.9 COMPANY’S CURRENT PROMOTIONAL STRATEGY

3.10 PRODUCT SALES’S HISTORY

3.11 CURRENT MARKETING OBJECTIVE

3.12 MEDIA EXPENDITURE

CHAPTER 4 CONSUMERS AND STAKEHOLDERS

4.1 CURRENT CONSUMERS’S CHARACTERISTICS

4.1.1 DEMOGRAPHICS

4.1.2 PHYCHOGRAPHICS

4.2 STAKEHOLDERS’S CHARACTERISTICS

4.2.1 PRIMARY

4.2.2 SECONDARY

CHAPTER 5 INDUSTRY AND MARKETPLACE

5.1 THE INDUSTRY

5.1.1 THE DEFINITION OF THE INDUSTRY

5.1.2 SHAPE OF THE INDUSTRY

5.1.3 DEVELOPMENT AND CURRENT TREND

5.2 THE MARKETPLACE

5.2.1 CURRENT CONDITION OF THE MARKETPLACE

5.2.2 CHANGE IN MARKET PLACE

CHAPTER 6 COMPETITIVE SITUATION

6.1 DIRECT COMPETITORS

6.1.1 OLD TOWN WHITE COFFEE

6.1.2 POWER ROOT

6.1.3 SUPER COFFEEMIX

6.2 INDIRECT COMPETITORS

6.2.1 LIPTON

6.2.2 BOH

6.2.3 DUTCH LADY

CHAPTER 7 SWOT ANALYSIS

7.1 STRENGTHS

7.2 WEAKNESSES

7.3 OPPORTUNITIES

7.4 THREATS

CHAPTER 8 STRATEGIC TARGET AUDIENCE

8.1 PROPOSED PRIMARY TARGET AUDIENCE

8.1.1 DEMOGRAPHIC

8.1.2 PHYSIOGRAPHIC

CHAPTER 9 RESEARCH DEVELOPMENT

9.1 MARKETPLACE RESEARCH

9.2 MARKET OBSERVATION

9.3 ONLINE SURVEY

9.3.1 SURVEY RESULT

9.3.2 SURVEY CONCLUSION

CHAPTER 10 PRECEDENT STUDIES

10.1 ADVETISING STRATEGY

10.2 PRECEDENT STUDIES

CHAPTER 11 REFERENCES

CHAPTER 12 APPENDICES

CHAPTER 1

1.1 INTRODUCTION

Nescafe

Nescafe are one of the brands within Nestle. The beginning of Nescafe can be traced back all the way to 1930 when the Brazilian government first approached Nestle. One of the coffee specialist, Max Morgenthaler and his team set out to find a way of producing a quality cup of coffee and that could be made simply by just adding hot and retain the natural coffee’s flavors. They spend almost seven years to develop and the fist Nestle powdered coffee product was introduced in Switzerland on 1st April 1938.Nescafe named with the combination of Nes-root of Nestle and the word café.

The first half of the next decade, World War II was happened and it hold up the success of Nescafe in Europe. But after that Nescafe was exported to France, The Great Britain and USA. The American forces played a key role in re-launching Nescafe in Europe and its popularity grew rapidly. In the US, Nescafe name was used on its product up until the 1960s and after that Nestle( owners of the Nescafe brand) introduced a new brand in United States and called Taster’s Choice.

By the 1950s, coffee had become one of the beverage choice by teenagers. After that, Nescafe continued to developed the world’s best cup of coffee by introducing freeze-dried soluble coffee with the launch of Gold Blend on the year of 1965. Few years later, Nescafe invented a new technology to capture more aroma and flavour from every single bean and it will enrich the taste of the coffee.

1.2 PROBLEM STATEMENT AND ISSUE

Coffee is considers one of the favorite beverages for the Malaysian. Nescafe had created the first instant coffee with just adding hot water into the coffee powders. The industry of coffee are growing, many company are willing to add in instant coffee as their new product line in order to promote their brand. Good advertising strategy will normally boost up the sales because people buy a product will not only based on the brand and price but the advertising strategy as well. Competitors like Old Town White Coffee , Starbucks, Coffee Bean, Indo Coffee have put their effort on advertising strategy.

Many competitors will add instant coffee as their new product lines. Competitors have good advertising strategy and market strategies to promote their

brand. Nescafe need some innovation on their market strategy and advertising strategy. Purchase on concept store in shopping mall is a trend for customers. Promotion is more to traditional face to face approach and sample distribution.

1.3 OBJECTIVES

Create a new advertising strategy to enhance the branding. Using different medium like TVC, websites, promotional booth and some on-ground events, enlarge the consumers market.

CHAPTER 2

2.1 PRODUCT NAME

This situation analysis is based on Nescafe as a product.

2.2 PRODUCT CLASSIFICATION

Nescafe is brand of a instant coffee and it is under Nestle.

2.3 PRODUCT CHARACTERISTICS

Product

Instant coffee, coffee

Packaging

Jar, Soft pack, Re-sealable pack

Price

Jar - Soft pack - RM 20.50 - RM 21.90 Premix 3in 1 - RM 11.90 - RM 12.50 Canned Drink - RM1.80 - RM 2.10

Unit of Sale

Jar - 50g, 100g, 200g Re-sealable pack - 170g Soft pack - 25g, 50g, 100g, 200g, 300g Premix 3in 1 - 20 sticks.

2.4 PRODUCT RANGE

Nescafe Classic – PURER AROMA. SMOOTHER TASTE

Give in to pure coffee sensation. Introducing new NESCAFE coffee extraction technology. A new way to slowly and carefully capture the true essence of coffee.

Available in : Jar - 50g, 100g, 200g Soft pack - 25g, 50g,100g,200g,300g

NescafeGold - REWARD YOURSELF MORE OFTEN

The premium blend made from finest selection of Arabica and Robusta beans that serves nothing less than satisfaction with every enticing sip.

Available In : Jar - 50g, 100g, 200gRe-sealable pack - -170gPremix 3in1 - 20 sticks

Nescafe Decaf

A cup of Nescafe Decaf can help you to relax and unwind. So savour a cup of caffeine-free for a perfect ending to your day.

Available in :Jar - 100g

Nescafe 3in1 - LOVE THE COFFEE, LOVE THE FOAM

Improved aroma and taste of your favorite coffee mix in Mild, Regular, or Rich, topped with an appetizing layer of smoother foam

Mild

Unforgettably smooth and creamy coffee experience.

Available in :Soft Pack - 30 sticks

Regular

Delivers a perfectly balanced blend of aroma and taste every time

Available in :Soft pack - 10 sticks, 30 sticks, 40 sticks

Rich

Delivers a deliciously strong and full bodied taste

Available in :Soft Pack - 25 sticks

2in1

A balanced taste of coffee and creamer, with no sugar added.

Available in:Soft Pack - 25 sticks

Nescafe Body Partner - TASTE THE GOODNESS

Enjoy the great taste of quality coffee, with more health benefits

Tongkat Ali & Ginseng

The traditional herbs tongkat ali and ginseng are well- known for being beneficial to men’s health

Available in: Day Pack

Kacip Fatimah & Collagen

A traditional herb combined with collagen, that are proven to look after women’s health


Hi- Calcium Milk

A cup of great- tasting coffee with the added goodness of high calcium milk. Plus, it’s also less sweet


Breakfast

Coffee enriched with malt, cereals, and skimmed milk. It also contain four vitamin and is high in calcium, giving you one great cup of Nescafe with goodness you can taste


.

Nescafe Menu - IT’S THE NEW MALAYSIAN THING

Your favourite Malaysian style coffee is now ready to be served anytime, anywhere

Tarik

Satisfy craving for a delicious foamy cup of coffee and indulge in the authentic taste of Tarik, all in the comforts of wherever you may be.

Available in : Soft Pack 15 sachets

Ipoh White Coffee

Creamy, smooth and aromatic cup of Ipoh white coffee, anytime of the day or night.


Neslo

Nescafe coffee and the goodness of chocolate malt, all served in one delicious blend


Nescafe RTD

Original

The one with the right balance of coffee, sweetness and creaminess

Latte

The one with a deliciously milk mix

Mocha

The one contain coffee and a hint of chocolate

Black Roast

The one which promises that strong and stimulating wake-me-up NOW feeling

Ipoh White Coffee

The one that is deliciously creamy with great local taste

Ice

The one with the Deep Chill Sensation

2.5 DISTRIBUTION

The distribution channel for Nescafe is Indirect.

The type of distribution market is intensive Distribution because Nescafe is available everywhere such as Hyper market, super market, grocery shop, and etc..

2.6 PRODUCT LIFE CYCLE

2.7 BRAND IMAGE AND IMPLICATION

Nescafe is the first company who invented the instant coffee. Now a day, the market of coffee in growing in the world and coffee is ranked the top three beverages in the world. By Nescafe invented the instant coffee, customers can easily make coffee with just adding the hot water into the coffee powder. Nescafe is one of the brand under Nestle, and Nestle is dedicated to provide the best quality of product to the customers.

2.8 STRENGTH AND WEAKNESS

Strength

Strong brand portfolio Reasonable price Global leader in instant coffee

Weakness

Over reliance on mass market Limited presence in tea products Ignore low-margin products

2.9 ADVANTAGES AND DISADVANTAGES

Advantages

Can found everywhere Affordable for customers Good quality of products

Disadvantages

Limited target market except coffee Advertising strategy without insight

2.10 UNIQUE SELLING PROPOSITION ( USP )

Nescafe is the first company who invented the instant coffee powder with just adding hot water into the coffee powders.

2.11 PROMOTIONAL HISTORY AND ADVERTISING SCHEDULE

PROMOTIONAL 2010

1st October 2010 to 31st October 2010

NESCAFE CLASSIC

Free 30g of Nescafe Clasic with every purchase of Nescafe Classic 300g Refill Pack


NESCAFE BODY PATNER

SAVE up RM3.00 with every purchase of NESCAFE BODY PATNER


NESCAFE GOLD

Free 1 NESCAFE GOLD MUG with every purchase of NESCAFE GOLD 200g

September 2010

NESCAFE CLASSIC

Free 1 NESCAFE Glass for every purchase of NESCAFE CLASSIC 100g

September 2010

NESCAFE MENU

FREE 2 sachets with every purchase of any NESCAFE MENU variants.

1st August until 31st August 2010

NESCAFE 3in1

FREE 5 sticks NESCAFE 3in1 for every purchase of NESCAFE 3in1 Mild (35x20g) or NESCAFE 3in1 Regular (35x20g) or NESCAFE 3in1 Rich ( 35x20g)

FREE 7 Sticks NESCAFE 3in1 for every purchase of Nescafe 3in1 Regular (47x20g)

1st August until 31st August 2010

NESCAFE CLASSIC

FREE limited edition NESCAFE Sugar bowl for purchase of NESCAFE CLASSIC 200g Refill Pack

FREE limited edition NESCAFE Spoon for every purchase of NESCAFE CLASSIC 50g Refill Pack.

1st June until 30th June 2010

NESCAFE CLASSIC

FREE coffee-Mate 200g for every purchase of NESCAFE Classic 300g

FREE Coffee-Mate 80g for every purchase of NESCAFE Classic 100g

1st May until 31st May 2010

NESCAFE CLASSIC

FREE 1 Red Mug for every purchase of NESCAFE CLASSIC 200g

EXTRA 10g for every purchase of NESCAFE Classic 50g Bonus Pack

1st May until 31st May 2010

NESCAFE 3in1

FREE NESCAFE 3in1 Environmental Shopping Bag for every purchase of NESCAFE 3in1 Mild or Regular or Rich

January 2010

NESCAFE CAN

SAVE 20cents with every purchase of 240ml NESCAFE Can Original/NESCAFE Can Latte/NESCAFE Can Mocha and MILO Can Original

January 2010

NESCAFE CLASSIC

FREE 25g with every purchase of NESCAFE CLASSIC 200g

PROMOTIONAL 2009

December 2009

NESCAFE CLASSIC

FREE 1 NESTLE COFFEE MATE 200g with every purchase of NESCAFE CLASSIC 300g

November 2009

NESCAFE CLASSIC

FREE 80g NESTLE COFFEE-MATE with every purchase of NESCAFE CLASSIC 100g

FREE 20g with every purchase of NESCAFE CLASSIC 200g

October 2009

NESCAFE CLASSIC

FREE 1 NESTLE COFFEE-MATE 80g with every purchase of NESCAFE CLASSIC 100g

SAVE 50cents with every purchase of NESCAFE CLASSIC 50g

September 2009

NESCAFE 3in1

FREE 5 Sticks with every purchase of NESCAFE 3in1 Mild or NESCAFE 3in1 Regular or NESCAFE 3in1 Rich

July 2009

NESCAFE 2in1

FREE 5 Sticks with every purchase of NESCAFE 2in1 25sticks.

July 2009

NESCAFE 3in1

FREE 2 Sticks with every purchase of NESCAFE 3in1 Regular 10 sticks.

May 2009

NESCAFE GOLD

SAVE RM5.00 with every purchase of NESCAFE GOLD 200g


May 2009

NESCAFE 3in1

FREE 5 sticks with every purchase of NESCAFE 3in1 Mild ( 30 sticks )

FREE 5 sticks with every purchase of NESCAFE 3in1 Regular ( 30 Sticks )

FREE 5 sticks with every purchase of NESCAFE 3in1 Rich ( 30 Sticks )

FREE 7 Sticks with every purchase of NESCAFE 3in1 Regular ( 40 Sticks)

April 2009

NESCAFE CLASSIC

SAVE 50 cents with every purchase of NESCAFE CLASSIC 50g

SAVE RM1.20 with every purchase of NESCAFE CLASSIC 200g

February 2009

NESCAFE GOLD



NESCAFE 2in1

FREE NESCAFE Red Mug with every purchase of NESCAFE 2in1 Sticks Pack

NESCAFE 3in1

FREE 5 Sticks with every purchase of NESCAFE 3in1 Mild 30 sticks pack

FREE 5 sticks with every purchase of NESCAFE 3in1 Regular 30 sticks pack

FREE 5 sticks with every purchase of NESCAFE 3in1 Rich 25 sticks pack

NESCAFE Body Partner

SAVE RM1.50 with every purchase of NESCAFE Body Partner.

NESCAFE 3in Regular

FREE 2 sticks with every purchase of NESCAFE 3in1 Regular 10 sticks pack

2.12 POSITIONING STATEMENT

Nescafe is the first instant coffee in the world which target the age from 17-50.

CHAPTER 3

3.1 COMPANY OVERVIEW

Nestle is the largest food and beverages company in the world founded and headquartered in Vevey, Switzerland. Nestle began in Switzerland in mid 1860 when founder Henri Nestle created one of the first baby formulas. The products first used on a premature baby who could not tolerate his mother’s milk or other alternative products of that time. Today, Nestle operates in 86 countries around the world and employs nearly 283,000 people.

3.2 BUSINESS DESCRIPTION

Nestle ( Malaysia ) Bhd ( Nestle Malaysia ) is one of the food and beverages company in Malaysia. The product line for Nestle include instant noodles, chocolate confectionery products, cereals, culinary products, yogurt and related ice-cream, liquid milk and juices, powdered milk and drinks and instant coffee. Nestle market its products under various brand names, which include Nescafe, Milo, Maggie, Kit Kat, and Nespray. It principally operates and markets its products in Malaysia as well as exports then to middle East and South East Asian countries.

3.3 COMPANY PROFILE

Nestle

In the 1860s, a pharmacist named Henri Nestle developed a food for babies who were unable to tolerate his mother’s milk or any of the usual substitutes. This is the key factor which drove the early history of the enterprise. The ultimate goal for Henri Nestle was to help the infant mortality due to malnutrition. The product named as Farine Lactee Henri Nestle and it was a formulated mixture of cow’s milk, flour and sugar. After few years, people found out that the new Nestle’s formula can solved the problem of malnutrition and it can saved child’s life. Soon, Farine Lactee Henri Nestle was being sold in much in Europe market.

Henri Nestlé also showed early understanding of the power of branding. He hadadopted his own coat of arms as a trademark; in Swiss German, Nestlé means 'littlenest'. One of his agents suggested that the nest could be exchanged for the whitecross of the Swiss flag. His response was firm: "I regret that I cannot allow you tochange my nest for a Swiss cross .... I cannot have a different trademark in everycountry; anyone can make use of a cross, but no-one else may use my coat of arms."

In the 1874s, Nestle company was purchased by Jules Monnerat. Nestle was developed its own condensed milk to content with its competitor, the Anglo-Swiss Condensed Milk company. The Anglo-Swiss Condensed Milk Company produced Cheese and instant formulas. The two companies remained fierce competitors until their merger in 1905.

During the World War I, Nestle have the difficulty to buy raw ingredients and distribute products. Factories rather sell milk to the public instead of using it as an ingredient in foods. After the war, price of ingredients was increasing. There is an expert banker helped Nestle to reduce its debt. By 1920, Nestle was adding chocolate as their new product line. Nescafe was developed by Nestle in the 1930s and Nestea was the after.

Nestle In Malaysia

Nestlé's commitment to providing quality products to Malaysians dates back more than 90 years ago. Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and expansion made a move to Kuala Lumpur necessary in 1939.

Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures its products in 7 factories and operates from its head office in Mutiara Damansara, and 6 sales offices nationwide.

The Company was publicly listed on the KLSE on 13 December, 1989. Today, the Company employs 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has MILO, NESCAFÉ, MAGGI, NESPRAY and KIT KAT have become trusted household names and enjoyed for generations.

3.4 KEY PEOPLE

Tan Sri Dato' Seri Syed Zainol Anwar Ibni Syed Putra Jamalullail Independent, Non-Executive Director Chairman of the Board of Directors Chairman of the Audit Committee

Datuk Rafiah Binti Salim Independent, Non-Executive Director Member of the Audit Committee

Tengku Tan Sri Dr. Mahaleel bin Tengku Ariff Independent, Non-Executive Director Member of the Audit Committee

Mohd. Rafik bin Shah Mohamad Independent, Non-Executive Director Member of the Audit Committee

Dato' Frits van Dijk Non-Independent, Non-Executive Director

Peter Vogt Managing Director Alternate Director to Marc Seiler

Marc Seiler Executive Director Alternate Director to Peter Vogt

Detlef Krost Alternate Director to Dato’ Frits Van Dijk

3.5 LOCATION AND SUBSIDIARIES

Nestlé (Malaysia) Berhad 22-1, 22nd Floor, Menara Surian No. 1, Jalan PJU 7/3 Mutiara Damansara 47810 Petaling JayaSelangor, Malaysia.

By Phone or Fax:Tel : +603-7965 6000 Fax : +603-7965 6767

Nestlé Consumer Services Free Phone : 1-800-88-3433

3.6 BRANDS, MAJOR PRODUCTS AND SERVICES

1. Junior FoodsNestle expertise as the world’s leading infant food manufacturer, gained over more than 125 years, is put the disposal of health authorities, the medical profession and mother and children everywhere.

o NESTLE BABY CEREALS

2. MilkIn 1953 a scientist working in California created a non-fat dry milk powder that dissolved instantly in water and tasted much like real milk. Today, more than million tones of powdered milk are produced worldwide.

o GROWING MILK- NESPRAY- NESLAC Excella Gold

o FULL CREAM/FILLED MILK

o ADULT MILK

3. Nestle Breakfast CerealsNestle breakfast cereals are now made with whole grain. A grain is the seed of a plant such as wheat, corn or oat. A whole grain consists of three parts, the bran, endosperm and germ.

o KID CEREALSo ADULT CEREALSo FAMILY CEREALSo HOT CEREALS

4. Powder CreamersCOFFEEMATE is the No.1 powdered creamer brand in Malaysia. It comes in 2 types of packs: an economic pouch pack for more savings and new convenient stick pack.

o COFFEEMATE

5. BeveragesEnjoying a favorite Nestle beverage has become part of Malaysian life, whether it’s at the local ‘ mamak’ stall or at a fancy restaurant.

o Powder- MILO- NESCAFE

o Ready to Drink ( RTD )- CANNED DRINK- UHT ( in Tetra Pak )

6. Prepared FoodConvenience foods- Packaged soups, frozen meals, prepared sauces and flavorings.

o Noodles- MAGGI- BUITONI

o Sauces- MAGGI

o Meal Solutions- MAGGI

7. Chilled DairyNestle currently producing the No.1 range of yogurt and yogurt drink in the market. All chilled dairy products are being developed using the finest quality ingredients.

o YOGURT DRINK

o YOGURT

8. Cultured DrinksCultured Milk Drinks with Calcium to strengthen children bones and teeth and intake of good bacteria/ live culture.

o NESTLE YOCO

9. Ice creamSince its debut in 1994, Nestle ice cream has grown into one of the most popular ice cream brands. People just loves its high quality and tantalizing variety which cater to local tastes.

o Take Home Tubs- LA CREMERIA “ LOADED”- NESTLE LA CREMERIA NEW FLAVOURS- NESTLE 1.5L ICE CREAM- NESTLE ICE CREAM

o Specially For Kids.- MATKOOL

o Specially For Adult- DRUMSTICK- TROPHY

10. Confectionery & ChocolatesChocolates was one of the Products line of Nestle

o KIT KATo SMARTIESo MILKYBARo MILO CHOCO BARo NESTLE CRUNCH

11. Healthcare NutritionA range of delicious products and meal replacement that provide support for medical conditions

o NUTREN OPTIMUMo NUTREN FIBREo NUTREN UNTUK DIABETIKo NUTREN JUNIORo PEPTAMENo PEPTAMEN JUNIOR

12. Performance NutritionProvide instant energy, refuel your energy and rebuild your muscle

o POWERBAR performanceo POWERBAR Gelo POWERBAR Protein Pluso POWERBAR Beverage System

13. WaterThe world’s No.1 Sparkling mineral Water.

o PERRIER

14. Nestle ProfessionalServices provided by Nestle

o Innovative & Comprehensive Solutionso Captivate your customerso Rich Taste & Aromas

3.7 MISSION

Nestle is dedicated to providing the best food to people throughout the day, throughout their lives throughout the world with the unique experience of anticipating consumers needs and creating solutions. Nestle contributes to public well being and enhances the quality of life

3.8 VISION

Nestle’s vision is to be the leading food and beverages company in the world providing customers with healthy food at affordable prices.

3.9 COMPANY’S CURRENT PROMOTIONAL STRATEGY

Nestle current promotional strategy is organized some event and promotional contest in order to promote the their brands.

Promotional Cuti Riang NESTLE MAT KOOL

1st October until 30th November 2010

150 unit of bicycle LeRun Prius and 5000 units of MAT KOOL balls are the prizes for the contest winner.

NESTLÉ CHARITY BREAKFAST: Malaysia’s Biggest Breakfast

Date : 15th October 2010, Friday

Time : 8.00 am - 11.30 am

Venue : Lower Palm Square (next to Old Town White Coffee), Jaya One, Jalan Universiti

Donate to a good cause while enjoying a scrumptious breakfast sponsored by Nestlé!

Donation of above RM40 will also entitle you to a Nestlé goody bag worth more than RM25 and a tax-exempt receipt from NASAM.

Parenting Talk

Date : 16th October 2010, Saturday

Time : 10.00 am - 12.00 pm

Registration Time : 9.30 am

Venue : Armada Hotel - Nakhoda Room 2 & 3, level 3, Lorong Utara C, Section 52, 46200 Petaling jaya, Selangor.

Admission : RM15 per person.

Hurry! Limited seats available. Sign up now to avoid disappointment!

NESTLÉ Healthy Kids Parent-child Nutrition Workshop.

Date and Time : 7 August 2010 (1.00pm-5.45pm)

Venue : Ballroom, Royale Bintang Hotel, Mutiara Damansara

Admission : RM10 per family. (Exchangeable with a goodie bag from Nestlé worth more than RM25)

Get the expert opinion on the best nutrition for your child.

NESTLÉ NOURISHING MALAYSIA SHOWCASE

Date & Time : 3 & 4 July 2010 (10am-9pm)

Venue : AEON Bukit Indah Shopping Centre, Johor Bahru

Admission : Free

During our showcase on 3 & 4 July 2010, there will be 4000 mystery gifts to be won.

3.10 PRODUCT SALES’S HISTORY

3.11 CURRENT MARKETING OBJECTIVE

Short Term Objective

Maximize the use of good quality local raw materials Improve product quality and in order to increase the sales of products Improve advertising strategy to promote new products

Long Term Objective

Be the leading multinational company in food, nutrition and wellness Developing on brand image and implication to increase good publicity

CHAPTER 4

4.1 CURRENT CONSUMERS’ CHARACTERISTICS

4.1.1 DEMOGRAPHICS

Age : 17-50 years old

Gender : Male and Female

Education : Secondary undergraduate, college or University

Occupation : Allowance and working salaries range

Income : Allowance to RM 3000

Race & Ethnicity : For all race and ethnicity

Geographic Location : Rural, Sub-Urban and Urban

4.1.2 PHYCHOGRAPHICS

Perception : People who looking for good quality of coffee

Learning : Friend and Family, TV advertisement, Newspapers

Motivation and Needs : Looking for good quality of coffee

Attitude & Personality : Brand conscious, taste conscious

Lifestyle : Leisure, Relaxing, Spirited, Enjoyment

4.2 STAKEHOLDERS’ CHARACTERISTICS

4.2.1 PRIMARY

Chairman Setting up Company goals and supervising company development in collaboration with the board of directors.

Boards of Directors Directing the employees of the company to achieve goals, control resources and expenditures.

ShareholdersInvesting money to the company in interest of a share on its profit

EmployeesContributing to the company in cooperation with their directors, in exchange for the salary.

ConsumersSpending money for the goods produced by the company if they are in good quality or with a good branding, which contributes to the company revenue.

4.2.2 SECONDARY

RetailersThe organization or outlet that sells the product or service to the trade or end consumers

DistributorsAids the distribution of the goods produced while earning from the service provided

MediaHelp advertising the brand or the products and create awareness among consumers

BankProvides loan as funding backup to the company.

CHAPTER 5

5.1 THE INDUSTRY

5.1.1 THE DEFINITION OF THE INDUSTRY

Starting from 2008 to 2010, Malaysia had experienced a boom in coffee industry. There are a lot of company provide fresh brewed or instant coffee to the consumers such as Old Town White Coffee, Alicafe, Starbucks, Nescafe, Coffee Bean, and etc. Coffee products are consumed on a daily basis for the Malaysian. Rural Consumers prefer economy fresh ground coffee, either branded or unbranded, while urban consumers, especially the younger generation, they tend to choose instant standard coffee or fresh ground coffee mixes,z

5.1.2 SHAPE OF THE INDUSTRY

Coffee is a popular brewed drink in the world, and it ranked the top three most consumed beverages in the world. The reason why coffee became popular because it contained caffeine and it has a stimulating effect on humans. The energizing effect of the coffee bean first discovered in the northeast region of Ethiopia, and the cultivation of coffee first expanded in the Arab world.

Malaysia has a long history of coffee production and consumption. Arabica first was introduced by British colonists in the late 18th century and now covers about 25,000 hectares in Malaysia’s northern frontier with Thailand, and on the northernmost tip of the Borneo. Malaysia produces less than 10,000 tons of coffee annually. Malaysia exports very little coffee, most of what it grows is consumed locally. In 1930, Nestle took up the challenge to seek a better way to preserve the huge coffee surpluses by the Brazilian Coffee Institute. Nestle spend around 7 years in research and finally succeeded in producing the world’s first fully soluble coffee. In 1938, Nescafe was launched in Switzerland in Powdered form, packaged in tin and available in both regular and decaffeinated varieties. Nescafe made its way to Malaysia in the late 1950s and since established itself as the leading instant coffee brand in Malaysia. The local production of Nescafe Classic Commenced in 1987 at the Raja Muda Factory, Shah Alam

According to a report from ACNeilsen, coffee industry are ranked the top 10 growth category in 2006. In 2005, Coffee growth rate is 27,771 but one year later It increase to 42,342 and the between is 14,571. The shape of the industry for Coffee in Malaysia is in the growing stage. Now a days, people will not only concerned about the taste of the coffee, but the quality of the coffee. People will care about what the selection of the coffee bean and the also the blending, roasting process. Many company are added coffee as their new product line. Due to the high demand of consumer, the market sales of the product are increasing too.

5.1.3 DEVELOPMENT AND CURRENT TREND

Now a days, more people will be ordering just regular coffee and espresso without the syrups, whipped cream and mocha flavorings. The trend is due to dietary concerns. People who staying in Urban city normally are health conscious and they know that sugar that we take everyday can cause fat and diabetes. Company that produced instant coffee like Nescafe promoted their 2in1 instant coffee that contain no sugar.

Coffee drinkers from across the world are now flocking to Malaysia’s Ipoh city to taste a beverage created there for the first time – white coffee. The name white had nothing to do with the color of the coffee. The world “ white” actually means “ without” and “ nothing added” in the roasting process. White café sdn bhd became the first company in Malaysia to launch a new successful differential product- OLDTOWN white Coffee 3in1 in the highly competitive coffee industry.

The coffeehouse business had grown every year. Coffeehouse provide calm, invigorating ambiance for people to socialize, relax or catch up on work. People in Urban city especially young generation they are more willing to buy coffee at those coffeehouse such as Starbucks,

Coffee bean and etc. The reason is those Coffeehouse are chain restaurant in worldwide, young generation of people are like to show off that they know coffee.

5.2 THE MARKETPLACE

5.2.1 CURRENT CONDITION OF THE MARKETPLACE

Due to the high demand of consumers, the market of coffee currently in an intensive competition, there are a lot of company competing each other in both direct and indirectly. Each and every market players have come up with different advertising strategy, in order can survive in the market. Company like Old Town White coffee, they combine the instant coffee powder with the concept of Chain restaurant.

5.2.1 CHANGE IN MARKETPLACE

Positive

In order to survive in the competition, each and every company have to put more effort in innovation, to boosting the growth of the industry.

Negative

Product sales decrease because of many direct or indirect competitor produced the same product.

CHAPTER 6

6.1 DIRECT COMPETITORS

6.1.1 Old Town White Coffee

Old Town White Coffee is the largest kopitiam chain restaurant in Malaysia. They commercialized instant 3in1 coffee mix under the “ OLDTOWN” brand name. OLD TOWN WHITE COFFEE not only produced Instant coffee but milk tea as well. OLD TOWN WHITE COFFEE have a huge international, not only in Malaysia but Singapore and Hong Kong as well.

Market Share :

Strengths : Malaysia largest kopitiam chain restaurant, quality guarantee.

Product ranges : Old Town White Coffee 3in1 Blends

Nan Yang White Coffee ‘ o ‘

Simply Pure White Coffee

Ready To Drink Product

Unit : Soft Pack, Carton, Bottled

Positioning : OLD TOWN WHITE COFFEE is Malaysia largest chain restaurant

Produced good quality of coffee.

Advertising Campaign : Old Town “Machine Gun” TVC

Old Town “Marathon” TVC

Old Town “Hey, Morning “radio ads

Old Town “Reason” radio ads

6.1.2 Power Root

POWER ROOT (M ) SDN. BHD was a company who develop and promote herbal energy drink fortified with two main rainforest herbs : Eurycoma Longifolia Jack ( Tongkat Ali ) and Labisia Pumilia and Pathoina ( Kacip Fatimah ). POWER ROOT produced instant coffee blend of Arabica & Robusta coffee beans with Tongkat Ali and Kacip Fatimah.

Market Share :

Strengths : Combined instant coffee with herbs

Product ranges : Ali café (coffee with Tongkat Ali )

Perl Café( coffee with Kacip Fatimah )

Ali Tea ( Tea with Tongkat Ali )

Oligo ( Chocolate Malt Drink )

RTD Products

Unit : Soft pack, can

Positioning : Power Root produced instant Coffee combined with herbs,

targeted at health conscious people.

Advertising Campaign : “Alicafe Premium Gold TVC”

Contest “You Can Be A Millionaire”

6.1.3 Super CoffeeMix

Super is a pioneer in the development of the 3 in 1 Instant Coffee concept. Complementing the finest Arabican Coffee beans , delivers the premium taste and robust aroma that is preserved through and arduous freeze-drying process.

Market Share :

Strengths : Premium taste and aroma though freeze-drying process.

Product ranges : Regular Coffemix, Rich Coffeemix, Reduced Sugar Coffeemix,

Diet coffeemix and 2 in 1 instant coffeemix, RTD products.

Unit : Soft Pack, Carton, box, can

Positioning : Power Root produced instant Coffee combined with herbs,

targeted at health conscious people.

Advertising Campaign : SUPER “ Ipoh Charcoal Roasted Coffee” TVC

SUPER POWER TVC

6.2 INDIRECT COMPETITORS

6.2.1 Lipton

Lipton is a brand of tea under the company of Unilever. Lipton is the world’s best-known and best-selling brand of tea. Lipton is the global market leader in both leaf and ready-to-drink tea. Lipton available in over 110 countries.

Market Share :


Product ranges : Milk tea, Black tea, Ready to drink product

Unit : Soft pack, Box, Carton, Bottle

Positioning : Lipton produced tea based product and available in over 110

Countries

Advertising Campaign : Lipton “Pure Green” TVC

6.2.2 BOH

BOH Plantation SDN. BND is Malaysia’s largest producer of premium black tea and the country No.1 Preferred brand of tea. BOH produced tea based product and available not only in Malaysia but Japan, Denmark and Germany as well.

Market Share :

Strengths : Grown in the cool climates of Cameron Highland.

Product ranges : BOH Tea Leaves, BOH Ice Tea, BOH Teacino, BOH Teamix,

BOH Garden Teas, BOH Cameron Gold Blend, BOH Alternative

Tea, BOH Seri Songket Teas, BOH Teh Tarik Kurang Manis,

BOH Gift Box

Unit : Soft Pack, Box, carton

Positioning : BOH Produced tea baesd product targeted to tea drinker.

Advertising Campaign : BOH “Puts the Ummph in Life” TVC

BOH “Cameronian Gold Blend” TVC

BOH “Teh Tarik Kurang Manis” TVC

6.2.3 Dutch Lady

Dutch Lady is top selling milk brand in Malaysia that enriched with protein, Calcium and Vitamin B2. Dutch Lady’s products have complete combination of nutrients that helps you and your family stay active and alert.

Market Share :


Product ranges : Ready to drink milk, yogurt, juice, creamer, milk powder

Unit : Soft Pack, Carton, box, can

Positioning : Dutch Lady produced milk that enriched with protein, calcium

And Vitamin B2 targeted to health conscious people.

Advertising Campaign : Dutch Lady “Growing Up Milk 123 and 456” TVC

Dutch Lady “Let’s hear from the Kids” contest

Dutch Lady “Spread The Goodness of Milk” Event

CHAPTER 7

SWOT ANALYSIS

7.1 STRENGTHS

High quality and safe food products at affordable prices Strong equity with consumers as a company with “High quality” brands Product innovation and renovation with local taste to convert consumer insights Global leader in instant coffee Strong brand portfolio

7.2 WEAKNESSES

Limited target market Limited presence in tea products Pricing are different in small grocery shop and Hypermarket. Product price are not at the

flat rate.

7.3 OPPORTUNITIES

Strong growth forecast in Asia –Pacific The premium trend, like the concept of OLD TOWN WHITE COFFEE chain restaurant. The health trend, now a day people are health conscious. Enlarge target market by producing different product, like tea, or milk.

7.4 THEREATS

Rising prices of raw materials and fuels Competition beyond hot drinks

CHAPTER 8

STRATEGIC TARGET AUDIENCE

8.1 PROPOSED PRIMARY TARGET AUDIENCE

8.1.1 DEMOGRAPHIC

Age : 18 to 29 years old Gender : Male and Female Education : University/College Occupation : Student and white collar Income : Allowance to RM 3000 Race and ethnicity : All races Geographic Location : Urban and Sub-urban

8.1.2 PHYSIOGRAPHIC

Perception : Consumers who living within the stress Learning : TVC, Internet, Friend and family Motivation and needs : Looking for a better way to release the stress Attitude & personality : tension, bloodless, hot temper Lifestyle : pressure, rushing, busy

CHAPTER 9

9.1 MARKETPLACE RESEARCH

Jusco Seri Kembangan Giant Sunway Piramid Jusco Seri Kembangan

KK Mark Seri Kembangan Jusco Sei Kembangan Giant Puchong

Nescafe available almost all around Malaysia either is small village grocery shop or Hypermarket in Klang Valley. I visited some of the location to do the research on the pricing and placement between Nescafe and its competitors.

9.2 MARKET OBSERVATION

Beside marketplace research, I observed on how long the staff will refill the shelf of coffee.

9.3 ONLINE SURVEY

This online survey was conducted with a total 45 participants. The survey aims to investigate coffee industry in Malaysia and what is the behavior of consumers when they choosing coffee brand.

9.3.1 Survey Result

Question 1 - Gender

This question is to find out what genders are taking this survey. The result shows that 58% of female and 42 % of male are taking this survey.

Question 2 – Age

This question is finds out what is the age of the people who are taking this survey. The result show that 82% of people who are aged between 21-30, 16% of people who are aged between 15-20 and2 % of people who are aged 40 above.

Question 3 – Race

This question is to find out what is the races of people that taking this survey. The result show that 78% of people are Chinese, 16 % of people are Malay, 2% are India and 4% are Bangladesh and African.

Question 4 – Education Level

This question is to find out what is the education level of the current consumers. The result show that majoring consumers are having education in University/ College and its about 94% among the participant. 4% of the consumers are having education in secondary school and 2% of people are still having education in primary school.

Question 5 – Income

This question is to find out that is that Nescafe are affordable for consumers with different income. The result shows that 74% of consumers are student with no income but allowance from parents. 13% of consumers have the income range from RM1000-RM2000 per month. 7% of consumers have the income range from RM2000- RM 3000. 2% of consumers have the income range from RM 3000- RM 4000 per month. 4% of the consumers have RM4000 income per month.

Question 6 – Do you love coffee?

This question is to find out how many percent of people are love coffee or consider coffee drinkers. The result shows that 73% of people are coffee drinker and 27% of people are just do not like coffee.

Question 7 - When you first tasting coffee ( Nescafe )

This question is to find out that consumers had tasted coffee for how long. The result shows that 64% of consumers are just started to taste Nescafe when they are in the primary school. 27% of consumers first tasting Nescafe when they are in secondary school. 7% of consumer first tasted Nescafe when they entry University/ College. 2 % of consumers first tasted Nescafe during their working time.

Question 8 – You buy coffee

This question is to find out that how constancy of the consumers buying coffee.29% of people said that they buy coffee once a week. 27% of people said that they buy coffee few in a month. 15% of people said that they buy coffee everyday and the other 15% of people dun like to buy coffee. 14 % of people said that they buy coffee once in a month.

Question 9 – You prefer coffee which is

This question is to find out that consumers prefer coffee in what flavour. The result show that 31% of people like Cappuccino, 24% of people like the strong coffee, and18% of people like Mild coffee. 24% of people have no nothing particular in coffee flavour.

Question 10 – At what time of the day, you prefer taking coffee

This question is to find out that when the consumers normally drink coffee. The result show that 21 of people like to drink coffee during working hours, 16 of people like to drink coffee when they in relaxing times, 15 of people drink coffee anytime they want,11 of people drink coffee during night time,8 people drink coffee during day time and also during their entertainment time. There also 5 people said that they drink coffee when they are stressed out.

Question 11 – Which of the following brand of coffee you had tried or purchased

This question is to find out that who is the competitors of Nescafe. The result show that 41 of people know about Nescafe, 30 people know about Starbucks, 28 of people know about OLD TOWN WHITE COFFEE,20 people knows about coffee bean, 12 of people had tried Alicafe, and 6 people know about Indo café. There are also 6 people love to purchase Super charcoal Roasted Ipoh White coffee abd San Francisco coffee.

Question 12 – Why you choose Nescafe

This question is to know about what is the motivation of consumers who buy Nescafe. The result show that 49% of people buy Nescafe because it is well known brand, 25% of people buy Nescafe because it is quality brand, 13% of people buy Nescafe because Nescafe are having promotion offer. 9% of people buy Nescafe because Nescafe is their favourite brand. 4% of

people buy Nescafe because they are not brand conscious, they just grab and pay at the counter.

Question 13 – Which among the offered range of product is preferred to you ?

This question is to find out the most consumed product by Nescafe. The result shows that, 47% of people buy the Nescafe Instant 3in1, 16% of people buy the premium Nescafe Gold, 11% of people buy the Nescafe Classic, 11% of people buy the Nescafe Menu which have the local taste like Neslo, Tarik, Ipoh white coffee and the other 11% of people love to buy the ready to drink product by Nescafe. There are also have 4% of people are health conscious, they love to buy the Nescafe Partner with contain the rainforest herb, Tongkat Ali and kacip Fatimah.

Question 14 – What factors can between your decision of purchasing your favourite brand

This question is to find out that what is the factors of consumers when they are buying favourite brand. The result shows that 33 people will first go to their flavor they like, secondly, 29 people will go for the quality of the product. After the quality, 23 people will care about the product price. Two group peoples which is 12 in one group will go based on the packaging design and promotion. There are also 6 people will buy the brand after the saw the advertisement and 1 people buy the brand because it recommendation by their family members.

Question 15 – Which type of promotion will attract you to buy more coffee

This question is to find out that what kind of promotion strategy will boost up the sales. The result shows that 62% of people will buy more under the promotion of buy one free one. 22% of people will buy more if they are a free gift given. 14% of people will buy more if they having discount vouchers. 2% of people will buy more under the membership privileges.

Question 16 - Where you usually buy Nescafe

This question is to find out where is the place of people normally buying Nescafe so that there is a better place to launch some promotion strategy. The result shows that 73% of people bought Nescafe at the shopping mall which have Hypermarket inside the mall. 14% of people bought Nescafe at the petrol Kiosk when they are refill the petrol. 11% of people bought Nescafe at the Mini market like 7-eleven, KK Mark and etc. 2% of people just bought Nescafe at the grocery shop nearby their living area.

Question 17 - What is your rate for Nescafe

This question is to find out that how is the satisfaction of consumers about Nescafe. The result shows that 40% of people think that Nescafe are at the average range. 38% of people think that Nescafe are good. 16% of people think that Nescafe are Prefect. 4% of people think that Nescafe are bad and they just dun like it. 2 % of people think that Nescafe are poor and have to improve.

Question 18 – Please state your reason here

This question is to find out that why people think that Nescafe are prefect and bad. Here is the result.

It’s smooth, strong smell, tasty I do not like coffee, tea is better Suit my taste I see it everywhere..so just buy it..it’s convenient Nescafe has the right amount of sweetness and never fails to perk me up when I’m

feeling sleepy or drowsy Starbuck coffee is the most nice café Coffee have this after-taste that really makes me hate it Not concentrate/ Gao enough Exist long time in the market, familiar brand

The quality is good It would better if it come out a new product with less caffeine. Everyone know Nescafe, it is famous, the advertising is better than other same range of

coffee, they do lot of promotion and discount. However, the taste is not so well especially the normal one. The taste even different when you try in the shopping mall, I cant deny that it is taste when they provide the testing section in shopping mall, but it is so much different when you make it yourself in home

9.3.2 SURVEY CONCLUSION

Throughout the survey, we can see that majority of Malaysian are accepted coffee and they like coffee. The main reason people choose Nescafe because Nescafe is well known brand in Malaysia. Consumers will first go to flavour they like when they buying the products. In order to boost up the sales, Nescafe can launch more new product with different flavour and produced some tea based product and it can enlarge the market to different industry not just stick into coffee industry.

CHAPTER 10

PRECEDENT STUDIES

10.1 ADVERSTISING STRATEGY

NESCAFÉ® MENU™ TVC

NESCAFÉ® MENU™ POSTER

NESCAFÉ 3 IN 1® TVC

NESCAFE 3 IN 1 POSTER

NESCAFE GOLD TVC

NESCAFE GOLD MUG CONTEST

10.2 PRECEDENT STUDY

OLD TOWN WHITE COFFEE ADVERTISING STRATEGY

OLD TOWN WHITE COFFEE “ MACHINE GUN “ TVC

POWER ROOT, ALI CAFÉ

POWER ROOT ALICAFE, PREMIUM GOLD TVC

SUPER COFFEMIX, IPOH

SUPER CHARCOAL IPOH WHITE COFFEE, “ I WANT YOU TO TRY “ TVC

CHAPTER 11

REFERENCES

Nestle Malaysia official website

http://www.nestle.com.my/

Nescafe worldwide official website

http://www.nescafe.com/worldwide/en/Pages/Home.aspx

Nescafe Malaysia Official website

http://www.nescafe.com.my/

OLD TOWN WHITE COFFEE official website

http://www.oldtown.com.my/

SUPER COFFEEMIX official website

http://www.super.com.sg/

Power Root official website

http://www.powerroot.com.my/

Online survey

http://FreeOnlineSurveys.com/rendersurvey.asp?sid=r5ivm8j2dbnz3wu835255

Nestle History

http://www.englishteastore.com/nestle-history.html

Scribd – Starbuck Instant Coffee in Malaysia : Marketing Plan

http://www.scribd.com/doc/25183636/Starbucks-Instant-Coffee-In-Malaysia-Marketing-Plan

International Coffee Organization

http://www.ico.org/

CHAPTER 12

APPENDICES

Nescafe_Basic Situation Analysis

Documents

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