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Marketing Coffee consumption Consumer behavior

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Project about Consumer behvior in Coffee consumption. In this project, the study focused on lebanese brands. Cafe Najjar being the leader.
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School of Business Consumer Behavior – MKTG 240 TERM PAPER PROJECT Spring-2007 Presented to : Ms. Maya Farah Prepared by: Nathalie Abou Safi Patricia Bakalian David khairallah Joseph Kharrat Marc Maalouf Presented on : 21/ 05/2007
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Page 1: Marketing Coffee consumption Consumer behavior

School of Business

Consumer Behavior – MKTG 240

TERM PAPER PROJECT

Spring-2007

Presented to : Ms. Maya Farah

Prepared by: Nathalie Abou Safi Patricia Bakalian David khairallah

Joseph Kharrat Marc Maalouf

Presented on : 21/ 05/2007

Oral presentation on :28/05/2007

Page 2: Marketing Coffee consumption Consumer behavior

Executive Summary:

We have been asked to conduct a company study for this course. We chose “Café Najjar”

as it has positioned itself as the leading company in the Lebanese coffee market and

consumer products. Café Najjar is a very dynamic and competitive company with means

of global expansion and everlasting opportunities. Café Najjar has many offerings and it

targets customers from all ages and from different backgrounds.

At the beginning of the report, we conducted research methods to understand the

consumer behavior of Lebanese coffee consumers. The research consisted of a group

interview with three female coffee consumers which allowed us to gain deep insights

about the patterns and behavior behind coffee consumption. In addition, we interviewed

Mr. Elie el Achkar from the Café Najjar Company as we faced difficulties in

interviewing the marketing manager. Mr. Achkar provided us with the essential

information about the different products and services offered by the company as well the

marketing strategy adopted and its different steps in reaching its goals.

As an introduction, we gave some details pertaining to the background and history of the

company concerning the foundation, the offerings and the operations. We then discussed

the marketing plan of the company and how it segments and targets each market

according to different variables. Afterwards, we gave a detailed explanation about the

CDP model used by the Café Najjar Company which allowed us to gain knowledge about

how the company does plans its method to match the customer’s expectations according

to his buying process behavior and pattern.

Finally, we gave our recommendations concerning the company’s current strategies

trying to improve them in order to be able to compete in a more efficient way in the

market and to stay at the top.

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Table of Content

Executive Summary…………………………………………………………………….p. 2

Introduction……………………………………………………………………………..p. 4

a. Founder of the Company…………………………………………………p. 4

b. Company’s Main products……………………………………………………...p. 6

Identification of Target Market(s)…………………………………………………...…p. 8

a. Primary Market Demographic and Psychographics……………………...p.8

b. Recommendation and Potential Target Markets…………………………p.9

Consumer decision making processes……………………………...…………………p. 10

a. Type and Information Used by The consumer……………………………p. 10

b. Evaluation of Other Brands…………………..…………………………..p.11

Recommendations……………………………………………………….…………….p. 15

Conclusion………………...…………………………………………………………..p. 18

Work Cited………………………………………………………………………….…p. 19

Appendixes…………………………………………………………………………... p. 20

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1. Introduction

a. Founder of the Company and Current Status

Café Najjar is a Lebanese coffee company initially founded in 1957 by Ms. Michel Najjar

.It used to sell coffee through vending machines and used to buy all their beans (Robusta

beans) from manufacturers. Café Najjar became a factory only after selling 2000 kilos of

coffee for consumption .The actual owner of the company is Mr. George Najjar, the son

of Mr. Michel; it’s a one-man-show company where all major decisions are taken by him.

It is in his time that the company grew widely.

The company’s main product is coffee; Café Najjar processes its coffee in its owned

factory located in Roumieh. Coffee is consumed and available in the whole world, but it

differs in textures and in its array of flavors, tastes and aromas. At Café Najjar, coffee is

treated with respect, and they consider their coffee making an art that they have mastered

with all means of professionalism, from receiving the valued coffee beans to submitting

them to the special treatment with all the state-of-the-art machines available in their

factory. Their factory is the biggest in the Middle East, from which they provide their

customers with the best coffee and greatest special taste. Their main goal at Café Najjar is

to develop the genuine aroma of coffee and to offer it to their customers.

Café Najjar manufactures many products available in all the Arab countries, satisfying all

the coffee drinkers’ tastes and needs.

The product mix length of café Najjar includes many brands such as: Café Najjar, Star

Café, Carioca, Byblos, American Cup, Beirut Blend, and Espresso. As for the product

mix depth of the brand Café Najjar, many versions are offered under this brand name.

After we visited several stores in Lebanon to check out Café Najjar’s brands we found

these versions available: Café Najjar Classic blue, Café Najjar Classic with cardamom,

Le Brésilien with and without cardamom and Le Gourmet (Check Appendix F for photos

of all products).

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Café Najjar, being the only suppliers of Turkish coffee machines, deals with restaurants,

universities, schools and offices by supplying them with machines and their beans. I.e.

Café Najjar supplies Dunkin Donuts with the machines and coffee beans, but Dunkin

Donuts has the right to sell the products under its name.

Some of the machine brand names we got from the interview were: Barista, Multirama,

and Caférama. (Check Appendix F)

Barista is one of the most famous coffee machines in Lebanon, most of the offices and

cafes are equipped with these machines that are all supplied by Café Najjar. This way

Café Najjar is proving that it’s following its customers everywhere.

Café Najjar expanded its business in coffee making and vending machines and decided to

open its own coffee shop, La Maison du Café. Located in different areas across Lebanon,

it only served hot and cold beverages at first. Due to its success, it started a franchise with

the aid of an American Consultancy Firm; it added complimentary products to the menu

that would go excellently with the coffee. Today, it serves special sandwiches, pastries

and desserts with exceptional tastes to please customers. In addition to Lebanon, it

became available in Saudi Arabia, Bahrain, and Qatar. La Maison du Café grew

successfully because it is known to:

-Offer the best coffee (the aromas are its own secret recipe)

-Be consumer-driven

-Offer superior product

-Present a clean, energetic and friendly image

-Stand behind every word they say

The purpose of La Maison du Café is to offer customers a service that is not available

elsewhere. La Maison du Café is the only place in Lebanon that sells you freshly brewed

coffee in vacuumed bags. Some people buy big quantities when traveling. The service of

selling freshly brewed coffee is exclusive to “la Maison du café” owned by the immediate

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company and not its franchises. Café Najjar owns the branches of: Downtown, Zalka and

Achrafieh .Other “la Maison du café” such as the ones located in BHV, Géant, and ABC

Achrafieh are all franchises.

b. Company’s Main products

La Maison du Café Najjar offers its customers the best coffee available in Lebanon. It

does so by importing its beans from the best countries in the world. Beans from all

around the world are offered:

Café Jamaique Blue Mountain: (these are the most expensive beans, sold for

217000L.L per Kg because the beans grow for only 1 month per year on a tree

situated on an altitude of 2000m with a humid climate which makes it rare and

difficult to bring.)

Café Australien

Café Colombien

Café Costa Rica

Café Cote D’Ivoire

Café Ethiopien

Café Indien

Café Indonisien

Café Nouvelle Ghine

Café Rubio Venezuela

Café Brésilien Santos

Café Mocha (Ethiopia)

Café Harrar

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c. Product life Cycle

“A Product’s Life Cycle is the course that a product’s sales and profits take over its

lifetime” (Kottler 2004). It involves five stages: product development, introduction,

growth, maturity and decline. Café Najjar has been growing at a steady rate for the past

50 years, the owners don’t believe they have reached maturity yet and they believe they

still have many opportunities to benefit from to grow more and more .Today they own a

market share of 47%. They are clearly in the growth stage of the product’s life cycle.

In Lebanon the growth is slow, whereas it is faster in the Arab and worldwide countries.

The company is adding new product features and models to target different markets and

reach different customers by offering different tastes (with and without cardamoms,

American cup to target the youth), and different types of beans coming from abroad. In

addition, it is increasing the number of distribution outlets with more than 15000 points

of sales across Lebanon and using sponsoring for events (Basketball games) and

sampling in the events and in supermarkets. It also reserves big budgets for retailers to

have a considerable place on their shelves. In advertising, billboards are used to remind

consumers of Café Najjar by affecting them on a personal level, with ads containing

themes relevant to the main decision makers of the family, e.g.: the ad of the mother

carrying her baby which affects mothers who usually are the shoppers in the family and

lure them to buy Café Najjar’s products (check appendix C).

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2. Identification of Target Market(s)

a. Primary Market Demographic and Psychographics

Most of the caffeine consumed worldwide is coffee. It reached in some countries a level

of 85%. Coffee is one of the most consumed beverages in the world alongside with tea

and water. However it is an adult drink which should be taken into consideration when it

comes to statistics opposed to water and tea which is consumed by all age segments.

The primary target market and customers of Café Najjar’s products is “everyone” who

drinks coffee. However the Lebanese Coffee market is very rich. Our local coffee

industry share a wealthy line of diverse products and in addition to it, the foreign market

competes and seizes a good share of the market. After analyzing the marketplace in terms

of demographic structure which is by definition “the size, structure, and distribution of

the population” (Blackwell, 2007), and observing shoppers in supermarkets, we noticed

that most of the people who buy the goods are housewives. In general, they are the ones

responsible to go to the supermarkets and buy weekly groceries for the whole family. To

be more accurate, our target market is late 20 year old married women and above. They

are the decision takers and the choice of purchasing this product is in their hands.

However this choice is influenced by family members. In some case, every family

member has a different taste, point of view and preference. Cafe Najjar offers a product

line that satisfies different age groups, different social classes: Different types of coffee

with cardamom or without it, Le gourmet, American Cup (American coffee)…

Each product suits a member of the society. The only choice remaining for the shopper

will be the brand of coffee. Shadowing shoppers was very helpful and interesting.

Observations showed that on average 2 out of 5 women choose Cafe Najjar.

Cafe Najjar’s customers are considered to be among the highest social class of the

Lebanese community. According to the survey, Café Najjar’s shoppers are educated

people who consume coffee and a variety of coffee based products. In the morning they

would for example drink American coffee then during the office hours Turkish coffee

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and in the late afternoon a cappuccino with friends. They would consume a minimum of

2 to 3 cups per day (survey: Check appendix A). They are people who can afford to buy

good and expensive coffee. These people earn a monthly income of 5000$ and more.

This social class isn’t a majority in Lebanon. So, Café Najjar knows exactly the size of

their target market and knows exactly where to reach its customers.

Café Najjar participates in a lot of Lebanese social events where the elite people of the

community attend. This is where the company will be able to reach new customers.

b. Recommendation and Potential Target Markets

Café Najjar’s most sold products are the Arabic, Turkish coffee (Ahwe terkiye). So they

should work on developing the Arabic cup which is the equivalent of Nescafe. A

potential target market is young adults ranging from 19 to 25, specifically university

students. Coffee has become a student’s best friend. After observation we have noticed

that university students consume around 2 coffee cups per day at university. This count is

not taking into consideration the coffee consumption at home or outside university. In

terms of demographic, they represent an idle target market in size and structure.

Students drink coffee to stay awake, have energy and to socialize. They influence each

other a lot which is very important for our product. If Café Najjar comes into fashion,

students will all drink the same brand. The company should target those grocery stores,

“dekken”, next to the Lebanese universities and all the coffee shops that are visited by

scholars to maximize their profit and increase their scope.

Coffee is part of these students’ lifestyle. Not only at university, they often go out just –to

have a coffee- and of course to socialize. If café Najjar reaches this market it would be a

great success.

A potential target market would also be people who do not have time. Our century is

becoming very hectic. Non- time consuming products are dominating the market and

customers are very interested in these types of products. Café Najjar should target the

business world. Specifically bankers and the work force who work long days in offices.

However we will develop this issue in the recommendation section.

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Consumer decision making processes

a. Type and Information Used by The consumer

Simply because customers have recognized the need to buy coffee doesn’t necessarily

mean that they will progress through the decision process model. Every customer has at

least once experienced the process of search of information when buying their coffee

product.

Search of information may be internal with it involving, retrieving and scanning decision-

relevant knowledge accumulated in memory; or external with it gathering information

from the market place. Interestingly, consumers always rely on personal past experiences

and on existing knowledge when making decisions of buying coffee.

Our target market, for instance, have a quite considerable experience in coffee

consumption. The degree of satisfaction has determined our consumer’s reliance on

internal search. A certain degree of external search will always be needed only to

evaluate the adequacy of one’s available knowledge.

External search occurs when customers collect their information from their surrounding

marketplace. An example we heard many times during our group interviews is that during

morning ladies gathering, “Brunch”, a frequent topic discussed is the type of coffee they

are drinking.(Check appendix D) So when a customer tries a certain brand and feels

satisfied he’s now more motivated to go and buy it.

The purchase of Café Najjar products is considered a habitual, repeated planned

purchase. Low involvement and limited problem solving are involved in these purchases.

Brand and company loyalty play a major role in the purchases of Café Najjar products. In

fact, consumers have previously built satisfactory expectations about the product in use.

Café Najjar offers a brand experience that connects with consumers on an intimate level.

In result to the satisfaction delivered; they reward the company with continued use of

their products in a highly resistant way. .

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b. Evaluation of Other Brands

A favorable evaluation of a product by a consumer leads to its purchase. How do

customers evaluate products? Relying on personal evaluation of alternatives, disliked

alternatives are immediately rejected and liked alternatives will be considered and

judged. Alternatives considered during a decision making process make up the

consideration set : the consideration set only contain a subset of the number of the total

number of options .The average size of consumer’s consideration set of coffee is 4

(Hauser , 1990 ) . From surveys, the consideration set of most of our target market

include: Café Najjar, Café super Brazil, Café Abi Nasr and Café Rio. Café Najjar’s goal

is to be always considered in customers’ evoked set. For habitual buyers , evaluation of

alternatives is not much needed , because they rely on pre-existing evaluation that are

based on prior consumption experience and purchase of the product .Cafe Najjar work

hard to keep customers loyal fans of their products. As for first time buyers, the

evaluation usually is under a piecemeal process. In piecemeal processes two different

evaluation strategies may be used: compensatory and noncompensatory.

Criteria used during evaluation of coffee are: Quality, Price, Availability, Good Taste,

Beautiful Aroma- perfume, Brand name and Packaging. Yes, packaging is sometimes

important to coffee shoppers because coffee is sold in supermarkets either freshly brewed

or in plastic vacuumed bags. Some plastic bags may not preserve the quality of coffee or

may diffuse some air which will ruin the coffee, and some packages may serve as signals

of the product’s quality.

Each considered criteria is evaluated by its strength and its weakness. Consumers rely on

stored knowledge for evaluation and for some that are lacking such stored knowledge

may rely on some external search for information to form beliefs and attitudes towards an

alternative’s performance.

Attitudes towards a product’s attributes play a major role in evaluation of alternatives.

How are attitudes formed?

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According to Fishbein’s multi attribute attitude model, the evaluation of each of

these following attributes turned out in our following example:

when asked about if buying a high quality coffee is important or not:

Very important +3 +2 +1 0 -1 -2 -3 Not important

Buying a famous brand name :

Very important +3 +2 +1 0 -1 -2 -3 Not important

Buying a coffee product that have a good taste

Very important +3 +2 +1 0 -1 -2 -3 Not important

Buying a coffee product that has a beautiful package

Very important +3 +2 +1 0 -1 -2 -3 Not important

etc…

Based on survey and group interview results the evaluation on each of the following

salient attributes turned out to be:

Good Quality = + 3 ; Low Price= -2; Availability = +1; Good Taste= +3; Beautiful

Aroma, Perfume = +2; Brand Name = + 1; Packaging= 0

After evaluating each attribute, beliefs about each brand possessing the attributes are

measured. Similar questions were asked to people in order to find out beliefs towards

each attribute of a brand:

Attribute Evaluation

Good quality +3

Low price -2

Availability +1

Good taste +3

Beautiful aroma, perfume +2

Brand name +1

Packaging -1

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How likely is it that brand X’s coffee is good in quality?

How likely is it that brand X’s coffee is found at low price?

How likely it that brand Y’s coffee is is available in the store near you?

How likely is it that brand Z’s coffee having a beautiful aroma, perfume?

Attribute Evaluation Café

Najjar

Café

Tafech

Café Super

Brasil

Good quality 3 3 1 3

Low price -2 -2 2 -1

Availability 1 2 2 3

Good taste 3 3 -1 1

Beautiful aroma,

perfume2 3 0 3

Brand name 1 3 1 2

Packaging -1 3 -1 3

30 0 22

People surveyed, questioned and interviewed have shown the following results which

prove the success of Café Najjar on gaining positive attitudes between its customers.

To summarize, most of Café Najjar’s customers rely on internal search, which is highly

affected by attitudes and beliefs towards a certain brand. Those positive results of

attitudes prove the success of Café Najjar in succeeding to be the consumer’s choice.

It all starts with the need recognition, the need to go shop for coffee. As the surveys

show, most of the purchase of café Najjar’s products occurs in supermarkets.

One of the research methods we used was observations because people actions are more

reliable from what they say. Their behavior includes conscious and unconscious

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impulses. Once the customer arrives to the coffee section in the supermarket, he is

exposed to numerous competing coffee products (Check appendix). Since the purchase is

planned, the consumer’s conscious behavior leads him/her directly to cafe Najjar’s

product. Their products are efficiently placed on shelves in a way to attract the

consumer’s attention on the eye level. Café Najjar reserves an important budget to their

retailers to ensure the best appearance. As we stated earlier, the consumer unconsciously

may be distracted by the clutter, the noise of the competitive brands through promotions

(price, gifts, and sweepstakes) and advertisements (Check Appendix). Moreover, café

Najjar works hard on improving its POP displays in all its retailing POS. Though, the

consumer might check out the lowered prices, promotions offered by their neighbors on

shelves; the final decision will always turn out to be café Najjar, because previous

satisfaction lowers consumer’s price sensitivity.

Survey’s results also show that availability of coffee products in shopping locations

(supermarkets, mini-markets …) affects the consumer’s decision. Interviewers have

admitted that they are willing to drop their loyalty when it comes to unavailability of their

chosen product; in other words they claimed that they are not willing to go visit another

store just to buy Café Najjar.

Café Najjar also offers its customers specialty coffee shops “La Maison Du Café”, where

customers can go and buy freshly brewed coffee and enjoy a cup of coffee with friends.

Most of La maison du café customers are loyal to Café Najjar .The issues of availability

and freshness is optimized.

Disposal of café Najjar product is the last stage in the consumer’s consumption process.

Customers usually throw out the plastic bags after usage. Some households immediately

open the purchased plastic bag and move the content into a special house coffee jar,

others may keep the coffee inside the bag.

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4. Recommendations

Café Najjar’s performance over the last 50 years speaks for itself. They have been

growing at a steady rate and always trying to attract more and more customers .Their goal

is to reach YOU where ever YOU are: supermarkets , streets , offices , universities ,

schools , playgrounds etc… from basketball courts to your office café Najjar always tries

to be near you.

Our recommendations concerning café Najjar’s target market are to increase customer

awareness of different available coffee products, such as products targeted for young

coffee drinkers. Turning these young coffee drinkers today into fans will increase long

run market share and sales. Café Najjar might also position itself more as the gourmet’s

coffee, the high class product, and work also more on creating another café Najjar

product, lower in quality that targets middle social class people.

Other than customer awareness and positioning, Café Najjar should start considering

competing more in Lebanon in the instant American coffee. Their product “American

Cup” needs much more marketing and advertising campaigns to increase customer

awareness. That way they would accomplish the goal of gaining the new young target

market. American Cup may introduce an instant sachets coffee products similar as to

“Nescafe’s “ 3 in one product .This new product would target busy ,time pressed people

who don’t have the time to prepare their own cup of coffee.

We also recommend to introduce the mocha coffee blend to the national Lebanese market

because first of all coffee drinkers are always ready to try new coffee blends, something

not previously experienced. Secondly, La Maison Du Café’s mocha sales have showed

that customers are becoming more and more accepting of this blend that is high in quality

and distinct in taste. This unique product might increase their market share with capturing

a new target market consisting of people who don’t like bitter traditional coffee, who

prefer a flavored mix coffee base product.

These products decisions modifications or addition will help Café Najjar even more in

staying at the top of the Lebanese industry.

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Café Najjar’s image as the best and finest coffee brand in the region should be

maintained for the upcoming years. There are no new recommendations to the pricing

decisions of Café Najjar products. The current strategy will stay “on target” on the

foreseeable future. Café Najjar’s prices today are considered a bit higher than

competitors, but fair enough for the high quality offered .If any modifications to the

pricing strategy occurs , damage to the company’s image may take place.

Café Najjar’s products can be found in almost all Lebanese regions, in every small and

big store. Distribution may be improved in increasing the use of technological devices

(palm devices, bar code readers …) in the distribution vans and also increase

communication levels with their distributors, retailers. Orders should be taken online

through café Najjar’s website (www.cafenajjar.com) , thus enhancing their e-commerce

activities.

Café Najjar’s products are available in almost the four corners of the world .Growth and

expansion strategies should be boosted in all countries where the Lebanese Diaspora is

enlarging. Café Najjar’s current target markets are Arab and Middle Eastern countries,

however today Europe should be considered more and more of a potential market in their

evolving strategies.

Café Najjar is a brand known in the consumer’s mind as a good quality-price coffee.

However, café Najjar have to use consumer promotion because there are several brands

available to wholesalers and retailers (the trade) to choose among and for consumers

ultimately to select or reject for personal or family consumption. In fact, this requires

getting consumers to try café Najjar coffee, in case they still haven’t, and make them

purchase it regularly.

Concerning the loyal customers, café Najjar should incur better CRM by in-store

sampling at “La Maison du Café” and other coffee shop owned or franchised by Café

Najjar. This kind of sampling should be used to show the distinct relative advantages of

the fresh bean of café Najjar. In addition, premiums should be offered in some period

when introducing a new coffee product. A free-with-purchase premium like a branded set

of coffee cups or a branded coffeepot should be offered to the consumer. As well, in- and

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on-pack premiums are good mediums to affect the consumer behavior to buy the café

Najjar coffee. Indeed, after conducting our marketing research, we found out that the

Lebanese consumer care about the package and other kind of premiums.

Continuity promotion programs can affect in a big portion the loyal customer because

café Najjar has many Arab customers who come especially to Lebanon to have their fresh

brewed coffee.

Finally, we do not recommend to café Najjar to use any price-offs promotions because it

will lower the image of the brand and can change the loyal customer opinion towards the

brand.

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Conclusion

Finally, Café Najjar proved itself as the chief company in the Lebanese coffee industry.

Café Najjar is providing its customers with exquisite and premium quality coffee to

satisfy all its loyal customers from different segments, tastes and needs. Café Najjar is

present in the Arab world and worldwide. It is a very dynamic company differentiated

from other competitors by its unique products and services. It is constantly innovating

and introducing new ideas to the Lebanese market. The company is adding new product

features and models to target different markets and reach different customers by offering

different tastes. Café Najjar gets closer to its customers and to the Lebanese society by

the means of sponsoring and sampling events in addition to successful and seducing

advertising campaigns. Furthermore, Cafe Najjar offers a product line that satisfies

different age groups, different social classes: Café Najjar participates in a lot of Lebanese

social events where the elite people of the community attend. This is where the company

will be able to reach new customers.

Café Najjar believes that it hasn’t matured yet and is constantly foreseeing many

opportunities to expand its target market. For example, a potential target market would be

people who do not have time to go shop for coffee or the younger generation ranging

from the age of 19 to 25 and the company offered them a new product called “American

Cup” that matched their taste. We noticed that the consumers based their buying process

on personal past experiences and on existing knowledge.

The purchase of Café Najjar products is considered a habitual, repeated planned

purchase. Low involvement and limited problem solving are involved in these purchases.

Brand and company loyalty play a major role in the purchases of Café Najjar products.

Criteria used during evaluation of coffee are: Quality, Price, Availability, Good Taste,

Beautiful Aroma- perfume, Brand name and Packaging.

Café Najjar’s positive image in the consumers’ minds will be maintained for the

upcoming years and will allow the company to evolve as Café Najjar offers both

premium coffees to its loyal customers and a unique and memorable experience.

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WORKS CITED:

Molaro, R. (2005). Emotional Impact. License!, 8(6), 26-28. Retrieved Tuesday, May 15,

2007 from the Business Source Premier database.

Fader, P., & McAlister, L. (1990). An elimination by aspects model of consumer

response to... Journal of Marketing Research (JMR), 27(3), 322. Retrieved

Monday, May 14, 2007 from the Business Source Premier database.

Hauser, J.R., Wernerfelt, B. (1990), "An evaluation cost model of consideration sets",

Journal of Consumer Research, Vol. 16 No.4, pp.393-408.

Blackwell, R (2006). Consumer behavior. Thompson Higher Education.

Kottler, P (2004). Principles of marketing. Pearson Education.

Interview with Mr. Elie El Achkar ( appendix 0 )

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Appendix 0 :

Elie Al Achkar , Coffee Machine Supplies Dept.Mob. (03)262620

Founded 19571 man show, 180 employees m, 100 cars mG Najjar manager of dept , captained ( asst manager) (+ mas2oul distribution in an area )Turkish coffee machine (copyrighted)

Machine star café, carioca …( is )Café Najjar:Dubai , Riyadh , All GCC

Moka for travel: blended + vacuumIn supermarkets: Brazil with or without HalTurkish as servingHarrar – rubio Venezuela – 1992 : maison du café1990 : brand created Fresh in zalkaGeorges Najja,r Manufacture in fanar . Products related to coffee

Achrafieh is for the owner.Expectations: machines of coffee ,Franchise to serve same coffee but not coffee packs

Targets: businessman, women, teenajers217500-11500 L.L/kgStar Café: Stores increased in top of mind, then decreased Café Najjar is growing in Europe, Canada, States… Franchise difficultCafé Brazilian: Santos Moka Brand: EthipioanMaher Sayah 03-535692, waiter la maison Du café najar (interview in café Najjar zalka).

classic m, le bresilien , gourmet , Beirut blend , carioca , byblos , star café , American cup ( youth … more POS .. for American coffee ,… - café Najjar basket )

Multirama , café rama ( machines … schools bureaux .. BARISTA.. nestle competitors , lower prices … adv . Turkish coffeespineys , dunkin donuts …

Biggest factory. And in the middle east

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In Europe, US take product and expand.POS in supermarket: stand gourmet coffee shop + taste + take away (in BHV)Speciality shop in zalka the most imp.5 blend.Robusta and Arabica ( in hot places and high altitude) acidity but smallJamaica: At 2000m and special trees + seasonal , Brezil: all season long … lot of supply

stage life cycle , Lebanon small growth World : high growth

improve.. ban : beans roasted , to minimarket … + makana …hala2 vacuum on shelves …

FOCH + Achrafieh + jal el dib : for company

N.B :folllowwww customersssssssssssssss

dept : OOH , out of home , bureaux , univ. , uncle deek …

disctribution : palm visits , scan …improve technology … scanner palmimprove sales and after sales ( visit by captain …

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Appendix A :

CONSUMER ATTITUDES TOWARDS COFFEE CONSUMPTION

L’ATTITUDE DES CONSOMMATEURS VIS-A-VIS DE LA CONSOMMATION DU CAFÉ

The following survey was prepared as part of a study conducted at the American

University of Beirut. The results of the survey are strictly for research basis and will

remain confidential. The purpose of this survey is to discover Lebanese consumers.

Please fill out the survey to the best of your knowledge.

Le questionnaire suivant est dans le but de mener une étude à L’Université Américaine

de Beirut (AUB). Les réponses feront strictement l’objet de cette étude et seront

confidentielle. Le but de cette étude est de découvrir le consommateur libanais.

Veuillez compléter ce questionnaire à l’aide de vos connaissances.

Q.1.Gender / Genre

1Male / Masculin 2 Female / Féminin

Q.2.What is your age ? / Quel âge avez-vous? : …………

Q.3.Which level of education did you reach? / Quel niveau d’éducation avez-vous atteint ?

1Elementary or less

/ Primaire ou moins

2 Intermediate / Brevet

3 Secondary/ Diploma –

Secondaire/ Baccalauréat

4 University / Universitaire

Q.5.What is your type of work? / Quel type d’emploie avez vous?

1Student / Etudiant 3 employed

2House wife / Femme au Foyer 4 Unemployed / Sans travail

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Q.6.To which category does your monthly personal income belongs? (In $) / Dans

quelle catégorie de salaire mensuel appartenez-vous? (En $)

1Less than 500 / Inférieur à 500 4

From 3000 to 5000 / Entre 3000 et5000

2From 500 to 1000 / Entre 500 et 1000

5 From 5000 to 10000 / Entre 5000 to 10000

3From 1000 to 3000 / Entre 1000 et 3000

6 10000 and above / 10000 et plus

Q.7. Do you drink Coffee? Consommer vous du café?

1Yes / Oui 2 No / Non

Q.9. What is your average consumption of coffee per day ? Combien consommez-

vous de café en moyenne par jour?

11 cup / 1 tasse

33 cups / 3 tasse

22 cups / 2 tasse

4More than 3 cups / plus que 3 tasse

Q.10. What kind of Coffee do you prefer? / Quel genre de vin préférez-vous?

1Lebanese with cardamom (hal ) / Libanais avec cardamon (hal) 3

Lebanese without cardamom (hal) / Libanais avec cardamom (hal)

2Espresso

4Other

Q.11. Where do you buy your coffee from? D’où acheter vous votre vin?

1Supermarkets / Supermarchés 3

Internet /Internet

2

Special coffee shops / Café

4

Others (Please Specify) / Autres (Spécifier SVP)…………………………..

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Q. 13. How often do you use the following information sources for buying coffee? / Utilisez-

vous fréquemment les informations suivantes à l’achat de votre café?

never / Jamais

Rarely/ Rarement

Sometimes / Quelques

fois

Often / Souvent

Very Often /

Très Souvent

Experiential Knowledge / Par expérience

1 2 3 4 5

Friend’s Opinion/ Avis de vos amis 1 2 3 4 5Label of Product / Etiquette du produit

1 2 3 4 5

Media / Les Medias 1 2 3 4 5Internet / Internet 1 2 3 4 5Sales Representatives / Représentants de vente

1 2 3 4 5

Q.14. What is your monthly budget for buying coffee? ………….L.L / Quel est

votre budget mensuel pour l’achat de votre vin? …………L.L)

Q.15. What is the country of origin you are most likely to consume coffee from ?

De quel pays d’origine préférez-vous consommer votre café?

1Brazil / Brézil 3 Colombia

2Ethiopia 4 Other / Autres

Q.16. If you buy Lebanese Coffee, please rank the following brand(s) according to

your preference (1: most preferred ………3: least preferred) /

Si vous consommez du vin libanais, veuillez mettre par ordre de préférence les

marques suivantes (1: préférable ………3: moins préférables)

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Café Rio Star Café

Café super brazil Abi Nasr

Café bon brazil Brazilia

Café Najjar Café Tafech

Q.17. How important the following factors when you choose coffee? / Quel est

l’importance de ces facteurs lors de l’achat de votre café?

Not Important Very At All / Important /

Pas important Très important

Quality / Qualité -3 -2 -1 0 1 2 3Low Price / Bas Prix -3 -2 -1 0 1 2 3Availability / Disponibilité -3 -2 -1 0 1 2 3

Taste / Goût -3 -2 -1 0 1 2 3Aroma – Perfume / Arome -Parfum -3 -2 -1 0 1 2 3Brand name / Marque -3 -2 -1 0 1 2 3Packaging / Paquet -3 -2 -1 0 1 2 3

Q. Rate Cafe Najjar on the following attributes

Quality / Qualité -3 -2 -1 0 1 2 3

Low Price / Bas Prix -3 -2 -1 0 1 2 3

Availability / Disponibilité -3 -2 -1 0 1 2 3Taste / Goût -3 -2 -1 0 1 2 3Aroma – Perfume /

Arome -Parfum-3 -2 -1 0 1 2 3

Brand name / Marque -3 -2 -1 0 1 2 3

Packaging / Paquet -3 -2 -1 0 1 2 3

Q. Rate Cafe Tafech on the following attributes

Quality / Qualité -3 -2 -1 0 1 2 3

Low Price / Bas Prix -3 -2 -1 0 1 2 3

Availability / Disponibilité -3 -2 -1 0 1 2 3

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Taste / Goût -3 -2 -1 0 1 2 3Aroma – Perfume /

Arome -Parfum-3 -2 -1 0 1 2 3

Brand name / Marque -3 -2 -1 0 1 2 3

Packaging / Paquet -3 -2 -1 0 1 2 3

Q. Rate Cafe Super Brazil on the following items

Quality / Qualité -3 -2 -1 0 1 2 3

Low Price / Bas Prix -3 -2 -1 0 1 2 3

Availability / Disponibilité -3 -2 -1 0 1 2 3Taste / Goût -3 -2 -1 0 1 2 3Aroma – Perfume /

Arome -Parfum-3 -2 -1 0 1 2 3

Brand name / Marque -3 -2 -1 0 1 2 3

Packaging / Paquet -3 -2 -1 0 1 2 3

Thank you!! Merci!!

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Attribute Importance Ranking

Café Najjar

Café Tafech

Café Super Brasil

Good taste 1 excellent poor excellent

Good quality 2 excellent good very good

Beautiful aroma, perfume

3 very good good very good

Availability 4 excellent poor excellent

Brand name 5 excellent good very good

Low price 6 fair very good good

Packaging 7 excellent good very good

APPENDIX B :

High

Price

Low

Star cafe

Super Brazil

Café Najjar

CaféDaniel

Cafétafech

Café rio

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low high quality

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APPENDIX C :

Café Najjar’s Ad in Charcutier Aoun Rabieh : Café Najjar classic … toujours par amour

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Café Najjar Basketball team logo

La maison du Café Turkish coffee : served with a cup of water and Lebanese “raha” .

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APPENDIX D : INTERVIEWS

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Group interview in Colombus café-ABC Achrafieh

Group interview with 3 housewives from different age groups

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APPENDIX E : Observations in supermarkets

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Woman choosing Café Najjar’s product in Charcutier Aoun- Rabieh

Café Najjar’s product in the coffee section of Spinneys -Dbayeh

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APPENDIX F :

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Café Najjar Product mix length :

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Café Najjar Star Cafe

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Carioca Cafe

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American Cup

Beirut Blend

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Café Najjar product mix depth :Classic with Cardamom Classic Without Cardamom

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Café Najjar Gourmet

Le BresilienWith Cardamom without Cardamom

Café Najjar Machines :Multirama in this picture , Charcutier Aoun Rabieh


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