Ankit Sujeet

Arpita Manjari

Team Heroes- IIM Calcutta

Defining the Target

To increase consumption of coffee in North India

Our Aim

Problem Statement

Limits regular consumption

Challenges for Nescafe

Lack of incentive for customers to start drinking coffee

Marketing focused on increasing consumption than penetration

Lack of consumption of coffee in summers

Market Analysis

Coffee is something special to be drunk on special occasions

Customer’s Thoughts

Functional benefit of rejuvenation as the major driver

Not fit for drinking in summers

Causes acidity and gastronomic problems

Gets wasted due to formulation of lumps

Triggers

Not very well entrenched beverage habits

Openness to new products

Open to idea of coffee outlets for example CCD and Barista

Building up coffee aficionados at young age to drive growth

Coffee as a rejuvenating drink

Coffee as an instrument of bonding and socializing

Insights

Focus on people having a high propensity to try new products

Building up on the new age mantra of effectiveness

Building up the need to be fresh and active

Focus on less entrenched taste among consumers

Connecting with Indian nature of coffee through advertisements

Barriers

Tea has become a part of routine

Majority of the population has grown up drinking tea

Easy access to tea as compared to coffee

Tea being considered as an Indian drink

Coffee lacking Indian nature in naming convention and flavors

Ability to try new products

Entr

ench

ed d

rin

kin

g h

abit

s

Customer Analysis

LOW HIGH

HIGH

16-22 Years

30-40 Years 22-30 Years

>40 Years

Order of Suitability

16-22 Years

22-30 Years

30-40 Years

>40

HIGH

LOW

Target Group

Target Group Characteristics

A young male/female who wants work done more efficiently

Maintains a perfect balance between work and personal life

Whenever stuck with something, Nescafe helps the customer relax

Coffee will help him get better ideas

Coffee is his companion in work when he is struggling with

monotony and wants new ideas

Coffee is his companion, when he is burning his midnight oil to

succeed

For all the times when the customer is tired, Nescafe

increases efficiency by keeping them focused

Value Proposition of Nescafe Portfolio

Nescafe Classic: Instant coffee with rich taste which gives you awesome start in morning and keeps you going

Nescafe Gold: Premium Coffee with high valued taste mainly for people who savours taste and smell of coffee

Nescafe Cappuccino: Instant Cappuccino coffee available

in form of sachets to give you café like coffee feel at

home

Nescafe Choca Mocha: Instant-Mix drink ;Intense and luxurious drinking chocolate flavour with a hint of coffee

Nescafe Sunrise: Slow roasted aroma granules with a strong aroma to aromatise your mornings

Nescafe Sunrise Premium: Premium Version of Sunrise with richer taste and smell

of coffee

Existing Nescafe Portfolio Brand is Targeted to?

Flaws in the Current State?

Emotional benefit

Relieves frustration

and changes mood

Taste and aroma, helps

with drowsiness

Desire to work smarter, to not waste

time

Lets you work in a more efficient manner than others, coffee

makes you think on your feet

Rational benefit

Consumer Insight Product benefit

Value proposition

“I drink cold coffee when my mood is off, makes me feel relaxed”

“I drink coffee only when I have to stay up night long, be attentive, or work late”

Customers with a intellectual and trendy

lifestyle

Regular drinkers of coffee with a special focus on South India

Customers who appreciate the taste, aroma, and smell of

coffee

Customers having a aspirational/luxurious

lifestyle

Tea liking people

Indian taste buds

Converting a non-customer into a customer

Not being able to educate or attract customers who have rudimentary knowledge of coffee

Not being able to communicate “Indianness” in coffee to the customer

What do customers say?

“Nescafe with its unique taste and aroma, improves your mood and allows you to work

in a smarter manner”

“I do not get the difference between different types of coffee”

Product – Nescafe cold coffees

• Format – The product will come in a light pet tumbler format to give feel of drinking from a glass with a seal which can be rotated and removed and can be put back for temporary purpose

• The SKU size will be 200 ml • Shelf life would be 4-6 months • Tumbler will be transparent as Indians love to see

the color and nature of drink before buying

Product SKU size Price

Paperboat 250 ml 20

Amul Kool 200 ml 20

Fruit juices(real) 200 ml 20

Cold coffee (vending machine) 300 ml 25

Café cuba 200 ml 25

Gatorade 500 ml 40

Tzinga 250 ml 30

• With other beverages priced at 20/-, we suggest to include a premium owing to thick milk, coffee and dry-fruits/chocolate in our product

• Placing it above 20/- will also give a premium perception for the brand

• Hence pricing at 25/- is the optimal strategy for 250 ml

Packaging

• Nescafe cold coffees, give you more time to spend with loved ones

• Product is a ready-made cold coffee, with a local Indian taste

• We suggest 3 flavors –Nescafe Badam, Nescafe Pista, & Nescafe Choco

• The product would be ready to use and needs to be refrigerated

• It will best suitable for summers in North India • Our customer would stock small bottles in a refrigerator • These bottles can be used while travelling, class, meeting,

working late night, shopping.

Product Description

• Almonds and Pistachio are Indian flavors, widely used in Indian foods and sweets

• Pistachio and almonds are well accepted in Indian society for their benefits

• Almonds are perceived to be memory boosters and reduce cholesterol levels

• In north India mothers gives out almonds to their children as nourishment

• Pista mixed with milk is very much cherished by milk lovers and reduces the risk of diabetes and increases immunity levels

The Three Flavours

• We need a connect with the local taste of Indian customer • A product that matches the fast paced lives of our target

customer • With the smaller SKUs, the trial appeal of our products will

increase greatly • Multiple flavors for customer flexibility • Induced trials will develop a taste for coffee in the minds of

young customers • These customers will grow as coffee lovers and will help in

increasing the coffee consumption in the country

Why This Product?

Price

Ph

ase

1

Nescafe Choco, Badam and Pista flavor

The first phase looks at increasing trials by the population P

has

e 2

Nescafe coffee mixes, Nescafe honey

The second phase is to appeal to a larger audience, increase penetration and acceptability

Growth Strategy

• Young college Students, Professionals (15-30 years old) • For younger generation, which wants quick solution • People with busy lifestyle & living away from family

Target Segment