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INTRODUCTION
BACKGROUND
Our study is all about the size of customers that we could separate depending on
the brand of coffee they prefer. Our group task is to randomly select 100
participants that would represent the whole population of people in Davao City that
would prefer their desired brand and in which of the factors: price, taste, and
packaging has the greatest impact on why people keep on patronizing their desired
brand of coffee. We have included general marketing information that will guide
us throughout the whole market study: age, gender, profession and marital status.
This information will be explained further and we’ll see if how we could relate
each one and compare its effect to the study.
This market study is very interesting, in a sense that we’re comparing well-known
coffee brands by looking and digging deeper to what makes each one unique and
what promotion strategies they use to the consumers, in keeping its interest and
loyalty to the product. Later on, we will show the very important element in this
study, the market demand, to help us sum-up the entirety of the study. In line with
this, we will be dealing with graphs with the help of statistics to support our
findings in this said study.
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Moreover, we have chosen these brands of coffee because of their head start in and
because of their competitive advantages, compared to other starting brands. These
brands currently show the best potential impact to the market and have proven its
worth to everyone in every part of the country. But before and until now, they
encountered problems they risk to develop and strengthen their products because
market today is an ever rapidly changing and intensely competitive.
Consequently, to a large degree, the growth of the market is unpredictable
nowadays, and our study is just a piece of everything in the real world. We’re not
saying that it is wrong but this is just an overview of the consumption in coffee
drinkers here in Davao, a sample of the total population. With so many brands of
coffee coming in, the question is, are the consumers taking the same established
brands or the competing brands with capabilities?
Finally, from every detail that we are giving we based it in our findings. The
conclusions that we made are merely related to the outcome of our survey and
we’re not just making stories and senseless ideas. This study is again about the
preferred brand of coffee with a participant of 100 randomly selected citizens in
Davao City, to be the representative of the whole City.
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SIGNIFICANCE OF THE STUDY
This study aims to identify what brand/s of coffee are dominating the market, who
of this following brands is well known to the market and what factors greatly affect
the customers choice of purchasing such coffee brand. This would also be helpful
for other future studies to be conducted in any relation to our study.
The report contains the result of a market study about preferred coffee brands and
designed to identify the general characteristics and behaviour of the market based
of coffee consumption. This would benefit marketers who want to know the effects
of these competing brands to the existing market. By understanding the clashing
brands of products readers would learn their history, background and the growth
development where in they are processed and changed through time and evolved
through the needs of the consumers. This would also serve as a future reference to
other group of researchers that wants to widen their ideas on the said study.
And finally, we want to reach to the consumers so that they would assess the
market condition and make some comparison on the real status of the market and
the study conducted, if this holds true because they can tell the real standing of
every products in the market. This would evaluate and inform people in accordance
to the findings that we have they could see the outcomes on what brand that shines
above all.
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STATEMENT OF THE PROBLEM
Our study will be focusing on what coffee brand/s is/are dominating the coffee
market in terms of its price, taste, market share, hobby drink and packaging. We
would be studying what specific part of the sample population in Davao City
prefers what coffee brand and what are their bases for patronizing the coffee. We
would also study the demographics of the population to know how the coffee
brands affect the consumption and the popularity of the product. We will also
tackle what amount of cups of coffee do the Filipinos consume per annum. And
lastly, how can the competitors of the dominating coffee brand/s compete with the
promotional strategies and overall techniques of the company producing the coffee
product.
These problems were identified from the gathered information in the survey we
conducted. With this problem, we can create better tactics on how we could
compete with the dominating coffee brand/s if we are to invent new coffee product
in the market. Aside from this, we can use the gathered information to know how
the companies of these coffee brands play in the coffee market to attract consumers
and how they sustain their stability as a big group company producing coffee
products. This study can also be used in future studies about coffees in the market
specifically the people of Davao city who were very fond of drinking coffee. The
future surveyors can use our data to help those who are planning to put up a coffee
business on how they can increase their sales with regards to the coffee they are
about to sell.
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OBJECTIVES
In order to conduct this study the group agreed that the overall objective is to
evaluate the answers made by the sample set of 100 respondents we have surveyed
in what coffee brand do they purchase and patronize. This objective may be
segregated into the following sub-objectives that will identify the main objective of
the group.
To examine how the brand of coffee and its factors (price, taste, packaging
and hobby dink) affects the consumption of the product.
To determine how the specific coffee brands behave in the market with the
target consumers with ages 18-65 years old.
To segment a total market patronizing each coffee brands by the socio-
demographics the study has collected.
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SCOPE AND LIMITATIONS
Our study will be focusing on the five selected coffee brands which are known and
are creating names in the coffee market. These coffee brands are Nescafe, San
Miguel Coffee, Kopiko, Jimm's and MX3. We conducted our survey within the
vicinity of Davao City to identify which among the five coffee brands are the
choices of Davaoeños. We have distributed survey questionnaires to 100 stratified
randomly selected respondents from different places in Davao City. We will only
limit our study within Davao City since the group do not have enough resources to
go beyond the area of responsibility. Since Davao City is numbered in terms of its
population; we believe that we could gather enough data and information to finish
our study. We expect to gather concise data from our respondents, regarding which
of the coffee brands they usually purchase or drink. With their answers, we can
tally the results in order to identify which among them is the most numbered in
terms of price, taste, hobby drink, market share and packaging.
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COMPETETIVE POSITIONS
NESCAFE
1) Description- is a brand of instant coffee made by Nestlé. It comes in
the form of many different products. Nescafe was not the first to try
their hand at creating instant coffee, but they were the first to do so
successfully. Early attempts date back to 1901, and involved making
extremely concentrated coffee and then collecting the residue after
boiling it dry. This super high heat wiped out the flavor and aroma of
coffee, producing a bitter, foul-smelling drink that could barely be
called coffee. Nescafe created a unique and extremely innovative
process that involved spraying a mist of concentrated coffee into
large, heated towers where the fine drops turned to powder almost
instantly. Carbohydrates were then added to help maintain the flavor
integrity. This instant coffee completely transformed the concept
people had been familiar with and made it not only acceptable to the
taste, but desired!
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2) Market Share- Nescafe has a market share of 55.3%, this evidently
shows that Nescafe has dominated the coffee market. This leads to
their expansion of different kinds of varieties that show the way to
invade the market even more.
3) Current Customer - Nescafe is to target the morning person which is
24 upper people as well, which effect to high growing, also they aims
to attract the younger audience that could bring their product into a
wide spread phenomenon. Moreover this target truly meets the
Nescafe by the help of their television advertisement campaign. The
scene shows the aftermath of a party and an awkward exchange
glances between friends, and it’s up to NESCAFE to get the morning
back on track. It also shows the convenient serving of the product by
introducing their different varieties such as, Nescafe 3 in 1, Nescafe
sweet and creamy, Nescafe decaffeinated, etc. this supports to the
growing trend for more convenient coffee formats among the no-
hassle generation and enhances the current NESCAFE offering by
giving audience a wider selection of products.
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4) Positioning and Promotion Strategies- Nescafe is a widely known
product that it able to join the prestigious best global brand ranking. In
2009 NESCAFE was ranked 25, but in 2010 it goes down two places
that place NESCAFE into the 27th spot. However, Nescafe maintain
to be part of the top 100 best global brands. Nescafe’s brand value
stays high in 12, 753 ($m) even its value depreciated at -4% at the
2010 survey of top 100 best global brands.
Nescafe has built strong brand equity through the use of aggressive
marketing strategies globally. Each country /region's Nescafe forms
its own strategy to effectively target its audience and generate sales
accordingly for the profitability and growth of the company. It is for
this reason that some variants are designed and marketed to cater to
the needs of that particular segment of the market .It has been noted
that Nescafe as a brand is in a intermediary phase from being an
exclusive utilitarian consumption product when it used to be just an
instant coffee to becoming more of a product with hedonic
consumption when it started to create and sell different blends in
different markets.
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The slogan “one moment, one nescafe” of the nestle nescafe made a
big hit all around the world that when people are asked what brand of
coffee comes into their minds, only one answer fits it, Nescafe.
Promotional Strategies:
• Television
• Newspapers
• Internet
• Public relation activity
• Public relation at selling point
The distinctive point of advertising was TV which is special in the
movie style and music marketing strategy. Pull strategy is strategy of
Promotion which pull the consumer to buy the product.
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5) Recent News- Over the next five years, Nestle will double the amount of
Nescafe coffee bought directly from farmers and their associations, eventually
purchasing 180,000 tonnes of coffee from around 170,000 farmers every year.
With the support of the Rainforest Alliance and the 4C Association, all directly
purchased green coffee will meet the internationally-recognized 4C sustainability
standards by 2015. In addition, 90,000 tonnes of Nescafe coffee will be sourced
according to the Rainforest Alliance and SustainableAgriculture Network (SAN) principles by 2020. Under the
Nescafe Plan, Nestle will distribute 220 million high-yield, disease-resistant coffee
plantlets to farmers by 2020. This helps farmers to rejuvenate their plantations,
thus multiplying the yield on existing land and increasing farmers’ income.
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SAN MIG COFFEE
1) Description-
San Miguel Coffee Co. provides its customers with the freshest
and richest beans. Coffee beans are ordered on a weekly basis to
insure the quality and flavor of the coffee. San Miguel uses a
roasting company located in Mount Olympia, Washingto. Batdorff
and Bronson is known in the coffee industry for their quality and
consistency of coffee around the world that produce high quality
coffee cherries. If you are looking for a great cup of coffee at a
reasonable price, San Miguel Coffee Co. is know for exclusively
producing gourmet coffee.
2) Market Share- even when it just started way back in June of 2005 a
remarkable journey for it is by San Mig coffee to be on the top list
of Filipino’s favourite instant coffees. The San Mig Coffee brand
has gained considerable share of the instant coffee market with the
introduction of Sugar Free variants in the 3-in-1 segment and San
Mig Super Coffee Instant Black Coffee in the mainstream.
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3) Current Customer-
adult coffee drinkers
people who want pure, unadulterated black coffee, without
creamers, milks, or flavorings
4) Positioning and Promotion Strategies-
‘Bagay sa Taste Mo!’
Television
News Papers
Internet
Billboard Commercials
5) Recent news-
San Mig Coffee Pro-Health sponsored this year's Metro
Magazine's 'Metrowear YDG / FDCP Show'. The first 'defile de
mode' shared by Young Designers' Guild and Fashion and Design
Council of the Philippines was held last July 30 at NBC Tent
wherein the designers presented their fashion forecasts for the
coming holiday 2009 season such as Techno Folk, inspired by
Shakespeare, Guggenheim, Enchantment and House on the
Prairie.
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San Mig Coffee Pro-Health supported Metro Magazine because
they have the same objective -to set the bar on fashion and
beauty. San Mig Coffee Pro-Health variants - Pro-Power, Pro-
Beauty, Pro-Slim and Pro-Fiber, have health components that can
actually improve and enhance digestion, energy, figure and
beauty. A perfect coffee drink that gives you something more
than the usual cup of coffee.
6) Strengths- Compare it to the instant coffees you grew up with, the
coffee taste is stronger, the aroma is richer, and the aftertaste is
smoother & cleaner. Combine these three attributes and you get
the perfect black coffee, good enough to stand on its own without
creamer or milk.” (refer to page 19)
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KOPIKO
1. Description- The aroma and the taste in every coffee are
determined by their beans quality and the way the beans are being
processed and blended. Kopiko 3 in 1 instant coffee is made from best
selected coffee beans, blended and processed in the finest way. Kopiko
3 in 1 instant coffee. Experience the difference, taste the greatness.
2. Market Share- market share of Kopiko in terms of being a
coffee candy gained an outstanding market share in Philippines
market and other countries. Though no specific figures were shown
about their market share.
3. Current Customer-
The mass, the Filipino people who desires a real
taste of coffee combined with brown sugar.
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4. Positioning and Promotion Strategies-
“Astig na Kape!”
TV commercials
Newspapers
Public Relations Activity
5. Strengths- Kopiko is known for being a candy with a true taste
of coffee. Since the launch of kopiko brown coffee, it made a big hit in the
market. Capturing the taste of most people around Asia looks for; we can
surely say they are a success in the making.
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MARKET DEMAND
Q= n x q x p
97,976,603- Total population of Philippines
1,366,153 - Total population of Davao city
1.39% - percentage of Davao city’s population in Philippines
49 % - total population of 18-65 years old as potential buyers in Davao city
(1,366,153 * 49%) = 670,986 - Total population of 18-65 years old as potential buyers
63,600 - metric tons of total coffee consumption in Philippines
To convert in Litres:
(63,600 tonne x 1000 Kg/tonne) = 63,600,000 Kg
(63,600,00 Kg x 0.850 L/ Kg) = 74, 823, 529 L
74,823,529-litres of consumed coffee per annum in Philippines
(74,823,529 x 1.39%)= 1,043,318.28
(1,043,318.28 x 49%) = 512,423.77 -litres of consumed coffee per annum in Davao city
with the potential consumers of ages 18-65 years of age
To get the Market Demand:
Q= 670,986 x 512,423.77 x 10
= 3,438,291,767,544.91 Litres
The Total Market Demand of coffee in the Philippines given that n is 670,986 as the potential consumers of
coffee, q is 512,423.77 litres of coffee consumed per annum in Davao city with their potential consumers of 18-65 years old and p for the price that consumers usual purchased price.
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REVIEW OF RELATED LITERATURE
NESCAFE
The history of Nescafé can be traced back as far as the 1930's. Its coffee guru, Max
Morgenthaler, together with his team thought of the need to produce high quality
coffee that could be prepared by simply adding hot water while still being able to
retain the coffee's natural aroma. It took them seven years of research in their
Swiss laboratories until finally, they found the solution.
The new generation of instant coffee was first introduced on April 1, 1938 in
Switzerland. It was called Nescafé as a combination of Nestlé and café. Although it
has been a huge breakthrough in the coffee industry, it didn't become a big success
in Europe due to World War II. Shortly after its release in the market, it was
exported to other countries like France, Great Britain and the USA. It became a
huge success in America and because of this Nescafé was able to re-launch itself in
Europe. It rapidly grew in popularity and by the 1950's, teenagers were already
flocking in to coffee-houses. In 1965, Nescafé unveiled its Gold Blend which
introduced freeze-dried soluble coffee. The invention of new technology made it
possible for Nescafé to make the ‘full aroma' process which captured more aroma
and flavor in every single coffee bean. This is what made the unique quality and
character of Nescafé even better.
Nescafé made its grand debut in the Philippines during the 1960's. It captured the
attention of the Filipinos due to its huge multimedia exposure. During that time,
Nescafé can be seen in prints, TV commercials, and heard on the radio. There
signature jingle, originally sung by ZsaZsa Padilla, is still being used today.;
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Let's sit and talk awhile, in the one world of Nescafé. Although the lyrics have
been slightly altered, this catchy phrase means that coffee isn't just something that
you drink during breakfast or when you're tires; rather, Nescafé coffee can be used
to socialize and catch up with the people whom you haven't had time to talk to for
awhile. You drink coffee when you want to patch up things with your wife, when
you want to take a rest, or even when you just want to have fun.
Since Nescafé has a vast and diversified target market, they had to launch different
varieties of their instant coffee to suit the needs of their customers. Starting from
their Nescafé Classic, they now have 15 different variants of instant coffee which
come in different sizes. Before, they used to sell Nescafé coffee in a diamond glass
which acts as a drinking cup once all the coffee powder was consumed. Now, they
sell it in jars and aluminum packs. Their consumers can buy it in different sizes
like the family pack, economic pack, sulit pack and gift set.
Its closest competition is San Miguel Corporation. Nescafe and San Miguel coffee
products dominate supermarket stalls as they have more space dedicated to their
different coffee variants. Kopiko is also becoming a serious contender in the social
worker department mainly due to the price. Other contenders are Café Puro and
Great Taste Coffee.
There are various reasons for why Nescafe is the leading brand. First of all, they
have more variants. Different variants attract different kinds of customers which
just widens their market share. Next is its huge multimedia exposure. Nescafe is
the biggest in terms of advertising with tons of TV commercials, newspaper ads,
billboard ads and etc. Since they're also using celebrity endorsers, people
remember their advertisements more. This boosts brand awareness and is also one
of the main reasons why everyone is aware of Nescafe. Lastly,
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Nescafe has credibility and a lot of people are already loyal with the product. As
long as they continue maintaining their quality, for sure Nescafe will continue with
its frontrunner status for a long time.
Nescafe is very popular in the Philippines and according to the service worker we
interviewed majority of them prefer Nescafe because according to them Nescafe is
the first coffee introduced to them. We have also found that most service workers
like their coffee creamy and Nescafe 3in 1 is the best choice of coffee because
Nescafe 3in1 contains sugar, cream and coffee of course. If they prefer a much
creamier coffee why not try the Nescafe Sweet and Creamy it will surely satisfy
them. There are also variety flavours of Nescafe which they can choose from if
they want to try something else. If they prefer bitter coffee then Nescafe Classic is
the perfect choice.
Nescafe 3in1 is made up of high quality coffee that will surely to suit your taste.
The aroma of the coffee would make you crave for it. We prefer Nescafe because it
has a good and high quality coffee and it's from a good brand, Nestle and the price
is affordable. Coffee isn't really healthy but Nestlé’s Nescafe will guarantee that it
is good for the health because their tag line is “wellness choose nestle” unless you
drink too much it will be bad because too much of anything is bad. Coffee also
helps delay signs of aging so it doesn't just keep you awake or suit your
taste/cravings it's also good for the body and mind.
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VARIANTS:
The different variants of Nescafé instant coffee are:
Nescafé Classic
Nescafé Decaf
Nescafé Gold Blend
Nescafé First Pick
Nescafé Choco Fudge
Nescafé Viva Vanilla
Nescafé Intense 3-in-1
Nescafé Hazalnut
Nescafé Original 3-in-1
Nescafé Sweet ‘n Creamy
Nescafé Sugar Free 3-in-1
Nescafé Decaf 3-in-1
Nescafé Fit with Teavigo
Nescafé Lingzhi with Ganoderma Extract
Nescafé Relax Decaffenaited Coffee with Chamomile
Nescafé Protect
Nescafé 3-in-1
PRICES
Price varies depending on the flavor and size. Their price range estimate is from
P25.00 to P450.00 depending on the amount of coffee bought.
(NAME SIZE and PRICE)
Nescafe Classic Refill
110g P 71.50
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50g P 35.95
25g P 18.10
Nescafe Classic
Jar 50g P 54.90
200g P 216.25
Sulit Pack 12g x 12 pcs. P 114
Nescafe Classic Sticks
26g x 84 pcs P153.50
Nescafe Decaf Jar
200g P 303.50
Nescafe Gold Blend
100g P 262.20
200g P 449.50
Nescafe Gold Jar
100g P249.50
200g P424.50
Nescafe Decaf Refill
25g P 25.15
50g P 49.50
100g P 100.40
Nescafe Protect
100g P 130
50g P 70.50
Nescafe Classic First Pick (limited edition)
100g P 110
50g P 57.25
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Nescafe Choco Fudge
15g x 10 pcs. P 67.70
Nescafe Viva Vanilla
15g x 10 pcs. P 67.70
Nescafe Intense 3 in 1
14g x 10 pcs. P 52.30
Nescafe Hazelnut
15g x 10 pcs. P 67.70
Nescafe Original 3 in 1
14g x 10 pcs. P 46.50
Nescafe Sweet n' Creamy
14g x 10 pcs. P 52.30
Nescafe Sugar Free 3 in 1
6g x 10 pcs. P 57.10
Nescafe Decaf 3 in 1
14g x 10 pcs. P 67.70
Nescafe Fit w/ Teavigo
32.5g P 39.25
Nescafe Lingzhi w/ Ganoderma Extract
70g P 49.50
Nescafe Relax Decaffinated Coffee w/ Chamomile
70g P 39.25
Nescafe Taster's Choice Decaf
12g P57.50
Nescafe Taster's Choice Hazelnut
6.10 oz/ 172g P449.50
Nescafe Taster's Choice Regular
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4 oz/ 113g P311.50
Nescafe Taster's Choice Orig. Blend
4 oz/ 113g P429.00
Nescafe Taster's Choice Vanilla
172g P419.50
(http://reviewessays.com/print.html?essay=44)
MANUFACTURING PROCESS
Only 100% pure coffee goes into NESCAFÉ but have you wondered just how it
gets from the tree to your cup?
ON THE PLANT
Your coffee starts life on a small, evergreen tree that grows across South and
Central America, Africa and Asia. The young coffee tree needs exactly the right
amount of shaded sunlight, regular watering, fertilising, and pest and weed control,
as well as constant attention, and it will be four years before its’ productive. Well
managed, it will carry on producing for another 40.
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WHICH BEAN?
There are about 60 species of coffee but Arabica and Robusta are the main two
grown commercially. Robusta is characterized by strong flavour and low acidity
and grows mainly in Vietnam, Brazil and Indonesia. Arabica boasts a delicate
aroma and pleasant acidity and is grown in Brazil, Colombia, Ethiopia, Central
America, Mexico, India and Eastern Africa. To guarantee consistent quality of
flavour and aroma, the experts at NESCAFÉ blend Arabica and Robusta beans
from the world over.
THE PICK OF THE BEANS
The red coffee ‘cherries’ (with the coffee bean inside) take about nine months to
ripen. They are then picked by hand. After drying and preparation, the ‘green
beans’ , with almost no coffee aroma or taste, are sorted, graded and checked for
quality. Imperfect beans (called stinkers, blacks, sours and foxes amongst other
names) are rejected and the quality beans are packed and shipped.
MAKING THE PERFECT CUP OF COFFEE
Roasting, to release that familiar coffee aroma and flavour, can take from three to 12 minutes, depending on the desired flavour. The roasted coffee is then ground to make it easier for the full flavour to be unlocked in the brewing process.Finally, the fresh coffee brew is specially dried to leave 100% pure, soluble coffee. Just waiting for you to add freshly boiled water, for the perfect cup of NESCAFÉ.
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SAN MIG COFFEE
San Miguel Coffee Co. provides its customers with the freshest and richest beans.
Coffee beans are ordered on a weekly basis to insure the quality and flavor of the
coffee. San Miguel uses a roasting company located in Mount Olympia,
Washington, Batdorff and Bronson is known in the coffee industry for their
quality and consistency of coffee around the world that produce high quality coffee
cherries. If you are looking for a great cup of coffee at a reasonable price, San
Miguel Coffee Co. is known for exclusively producing gourmet coffee.
A new standard to discover in black coffee
San Mig Coffee 100% Premium launched
12/6/2006
True to the San Mig Coffee tradition of creating coffee that’s ‘Bagay sa Taste
Mo!’, ‘San Mig Coffee 100% Premium’ is specially formulated to suit the tastes of
no-frills adult coffee drinkers. These individuals are the purist types who want
pure, unadulterated black coffee, without creamers, milks, or flavorings.
“This is how instant coffee is supposed to be,” says Vince de la Cruz, San Mig
Coffee Brand Manager. “What’s exciting about ‘San Mig Coffee 100% Premium’
is that if you compare it to the instant coffees you grew up with, the coffee taste is
stronger, the aroma is richer, and the aftertaste is smoother & cleaner. Combine
these three attributes and you get the perfect black coffee, good enough to stand on
its own without creamer or milk.”
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Cholesterol-free and Halal-certified, San Mig Coffee 100% Premium is available
in 20 and 40 gram pouches. The latter makes approximately 10-12 cups while the
former, about 20-23 cups.
San Mig Super Coffeemix Co. Inc popularized the 3-in-1 coffee mix concept in the
country with its hugely popular variants of original, mild, strong, extra strong and
sugar-free. The introduction of the San Mig Coffee 100% Premium will surely be
an added boost for the company, not only in terms of its position in the Philippine
coffee market, but in its place in the hearts and minds of Filipino consumers as
well.
Piolo’s San Mig Coffee billboards a welcome sight
April 30, 2009, 9:30am
Piolo Pascual’s bronzed and well-chiseled body as shown by the San Mig Coffee Sugar Free billboards along EDSA and Katipunan are a welcome sight for motorists who brave the usual Metro Manila traffic everyday.
Pascual remains in tip-top shape despite his many engagements, including the taping of the remake of hit Korean television series “Lovers in Paris” over ABS-CBN set to be shown in July.
“I’m in the process of taping the remake of ‘Lovers in Paris.’ We stayed in Paris for almost a month. I’m pretty excited about this new series since it’s filmed at the Romance Capital of the World and it’s been a while since my last series, ‘Lobo.’ Of course, there’s still the ‘ASAP’ every Sunday and I’ve also been making indie films on the side,” he said.
San Mig Coffee put up the billboards at these busy thoroughfares to announce that it remains to be the No.1 Sugar Free Coffee mix in the country today, with much of the credit going to Piolo’s effective endorsement. He is joined by Fil-Am commercial model Michelle Paloma.
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“That’s right, the billboard says ‘Be # 1 in hotness with the # 1 sugar free coffeemix’ and I have to say that it’s really true – San Mig Coffee Sugar Free is the perfect product not just for me, but for anyone who wants to look good this summer. The 3-in-1 Sugar Free line, for example, has only half the calories than regular coffee mixes while the 2-in-1 Sugar Free products have zero fat and only 10 calories.”
“Besides drinking San Mig Coffee Sugar Free to keep down the calorie intake, just keep in mind that there’s no ‘magic’ or ‘instant’ formula when it comes to looking good – it’s all about making healthy food and beverage choices everyday and making sure that you do some sort of workout weekly. If you do these things consistently, then you’ll get a great-looking body in no time,” he said.And what better proof there is than Piolo’s physique itself.
(http://mb.com.ph/articles/204276/piolo-s-san-mig-coffee-billboards-a-welcome-sight)
VARIANTS:
San Mig Coffee Instant 3-in-1 Regular Coffeemix
Mild
Original
Strong
Extra Strong
San Mig Coffee Instant 3-in-1 Sugar-Free Coffeemix
Mild
Original
Strong
Extra Strong
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San Mig Coffee Instant 2-in-1 Regular Coffeemix
Mild
Original
Strong
San Mig Coffee Instant 2-in-1 Sugar-Free Coffeemix
Mild
Original
Strong
San Mig Coffee Pro-Health
San Mig Coffee Pro-Beauty
San Mig Coffee Pro-Fiber
San Mig Coffee Pro-Power
San Mig Coffee Pro-Slim
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KOPIKO
Monday, December 27, 2010
Kopiko Brown Coffee
Contrary to old belief, coffee-drinking has a lot of health benefits. Studies claim
that it provides anti-oxidant to the body and even prevent heart disease. One thing
is certain, I can assure, coffee is delicious. And it is divine to drink. Kopiko Brown
Coffee. I just love this coffee. It is a coffee mix with brown sugar. It is so tasty. I
gave up Starbucks coffee and have this cheap and delicious alternative instead. It is
only P6 per sachet.
Kopiko Brown Coffee
By: grecy
I am a fan of Nescafe Trio Coffee. I bought a box that contains 6 sachets of 25g
every week. I usually have my coffee at work in the afternoon because it is less
pressure during afternoon. Coffee keeps me awake and alert. Just recently I shifted
on drinking Kopiko because of their new flavor, Kopiko Brown Coffee.
It is just a regular coffee with cream but the difference is it uses brown sugar
instead of white. I believe brown sugar is better compare to white sugar as the
latter is refined and re produced so many times. White sugar in turn is bad for our
health. That is the reason I shifted on Kopiko Brown Coffee.
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Kopiko is first on this one, as recently Nescafe launched this kind of flavor;
however, Kopiko is much better. It tastes like pure coffee, with slight taste of
mocha, but there is no mocha flavor in it. The aroma is not that strong but as you
zip it while it is hot the aroma enters your nostril. It makes you smell how slightly
strong the coffee is.
Actually, the taste is not strong, it is creamy and the taste of brown sugar is well
tasted. It is not sweet either. It only contain right amount of sugar. Once it enters
my mouth, the first thing that I got to taste is the coffee and second is its
creaminess and last is the little amount of sweetness.
This one is a perfect blend of coffee for me. I do not care about Starbucks coffee
now that I got to taste it. It only cost $ 0.16 for 25g sachet, very affordable and
always available from small store to groceries. I prefer to drink it while it is hot
because I do not enjoy the less sweetness when it is cold already. In the afternoon,
even if I only have this coffee, I do not feel any hunger. For me this one is enough
to ease my hunger. This coffee is perfect to drink any time, but I prefer the hot mix
rather than cold.
Rating: 10
VARIANTS:
Kopiko 3 in 1
20gX10pcs P41.00
Kopiko Brown Coffee more in 125gX10 pcs. P 50.45
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METHODOLOGY
In conducting our study, we asked our respondents to answer our survey in the best
way that they can. Our sampling plan was to use stratified random sampling to be
used. We also used survey questionnaire as means for obtaining the answers we
would want to get in order to attain our desired outcome with our respondents and
from Davao City who were the primary source of our data in our market study. Our
group agreed to release 100 survey questionnaires to be answered by 100
respondents with the age of 18 to 65 years old and with the age group of 18-24, 25-
29, 30-34, 35-44, and 45-65. With the age limit of our study, we can be sure that
the respondents were in their mature thinking to answer every question in our
survey. These age groups will represent a sample population in their said age
groups. We asked them to choose which among of the five coffee brands they
drink or purchase and how often do they do it. We also asked them to rate the
following factors from 1 to 5; price, hobby drink, taste, market share and
packaging. We also included in our survey their civil status, occupation, gender
and price they are willing to pay for a cup of coffee. To tally the results on which
among the gender drinks more coffee, which among the prices listed they are
willing to pay, which among those who are Upon the collection of the data
gathered, we used the IBM SPSS Statistics v19.0 program for an error free output
on our desired outcome of report.
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FINDINGS
Based on the information we gathered from our respondents, Nescafe is the brand
leading the market. It is dominating the market in terms of brand consciousness
(which every age group prefers Nescafe above all other brands) and brand rating
(where it got the highest rates there is for the four factors taste, price, packaging,
and even as a hobby drink we have given to our respondents). It dominates all the
four attributes in determining the brand's place in the market. Its closest
competition is Kopiko. Nescafe and Kopiko instant coffee products dominate
supermarket stalls though Kopiko is known for being a coffee candy it didn’t stop
consumers to buy their coffee products. Though it didn’t have as many variants
there is compared to Nescafe but because of the very affordable price offered to the
mass Kopiko made a hit. San Miguel Coffee is also becoming a contender of the
two leading coffee brand. The coffee itself is costly but Piolo Pascuals’s
advertisement (see reference pp.21-22) the people were convince to purchase their
product. San Miguel coffee is making a name for itself and also this brand has
many variants that could readily compete with the leading brands, though they
have a problem on their pricing that consumers are not appreciating. On the other
hand, MX3 and Jimm’s Coffee an all natural organic coffee drink made of
Mangosteen and herbs are becoming a brand contender of Nescafe. Since coffee
drinkers are getting old by the minute, more and more coffee drinkers are getting
health conscious. Looking for benefits that will give them the needs of the aging
people, these two coffee brands are surely making a great triumph in the market.
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Though not that well known, these brands need to be more wide-open more in the
market to have their fair stake of the market share.
There are several reasons why Nescafe stays to be the leading brand. First is their
wide set of coffee variants (see reference pp.14-15). Different variants would most
likely to attract different kinds of costumers which widens their industries market
share (see market share graph p. 29). Next in line is the company’s huge
multimedia exposure. Nescafe is the biggest in terms of advertising with loads of
TV commercials, newspaper ads, and billboard ads. Since they're also using
celebrity endorsers and regular people in their commercials, people will most
likely remember their advertisements more than its competitors. Also, their very
catchy tagline “let’s sit let’s talk one moment, one Nescafe” sinks in to the souls of
each and every one of their consumers as they sip a cup of Nescafe. This is one of
the main reasons why everyone is aware of Nescafe. Lastly, Nescafe already has
many loyal customers. As long as the quality of their product is maintained, no
doubt Nescafe will continue to be the leading coffee brand in the long run.
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This chart illustrates the break down of our respondents based on what age group
they belong to. As we can see that almost half of our respondents are in the ages of
18-24 years old. This indicates that coffee drinkers are by far getting younger and
younger. Also the older the people get the less coffee they consume. This is
because the older people get the less sleeping hours they have so older people do
not take coffee anymore because it will only interrupt their sleeping hours.
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This illustration shows the market share of each coffee brands based on what
brand of coffee consumers usually purchase. As we can see the highest share in
the market is Nescafe with a topping spot in the market share of 70%. The 14% of
the share goes to Kopiko. Though it did not made any big of a share compared to
Nescafe, for a starting brand to have such success, is good. The 6% of the market
share was given to San Miguel coffee who ranks 3rd in the market share. The 5% of
never in this chart represents the number of people in this age group that does
not take part in the coffee consumption. This illustration also shows the
percentage of the coffee brands based on the consumers choice in terms of taste,
price, packaging and hobby drink.
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This chart represents the price that consumers are willing to pay for their
consumption. 62% of the consumers want to spent less 10 pesos on coffee as much
as possible and 27% said that they can afford a much higher price og Php11-70 for
their coffee consumption. 10% said that they buy coffee above the range of other
consumers and only 1% said that he/she is willing to pay Php101-150 worth of
coffee.
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RECOMMENDATION
Nescafe is very popular in the Philippines specifically Davao city where we
conducted our study. According to the data we have gathered majority of them
preferred Nescafe may it be single or married, female or male, teens or adults and
even by profession, may it be a student, employed worker, unemployed, or self
employed people, not only because of its taste but also of its affordable and very
reasonable prices (see pp.15-17) and the name itself. Nescafe is already an
established brand and is also well-known around the globe with its mother brand,
Nestle. Nescafe has already proven its quality and name in its long years of
existence. Aside from this, it has a taste preferred by many.
With these facts about Nescafe, we would like to recommend Kopiko, San Miguel,
MX3 and Jimms coffee to have a Differentiated strategy.This is also referred to
multi-segment or selective specialization plan. In this way, more than one target
market is offered the product and service. The product may be the same or it might
be different. But the branding, advertising campaign and even promotional
message will be different for each target customer group. For other coffees they
could sell different kinds of coffee to different set of customers. In this way more
products is introduced and customers can pick different kinds of variants on one
brand.
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APPENDIX
Name (optional): ___________________________________
Gender: __ Male __ Female
Marital status:__ Single __ Married
Q1: How often do you drink coffee? __ Everyday __ Every other day
__ Occasionally __Sometimes
__ Never*
*If you have answered never, please do not answer the remaining
questions. Thank you for your time.
Q2: What brand of coffee do you usually drink?
__ Nescafe __ MX3 __ San Mig
__ Kopiko __ Jimm’s Others(Please
specify):______
Q3: Concerning on your answer to Q2. How would
you rate the 4 factors given below? Rate it
from 1-5. 1 is lowest and 5 is the highest.
(Please circle the number)
Age: __18-24 __ 35-44__25-29 __45-64__ 30-34__65-and over
Profession:__ Employee __ Student__Self Employed __ Unemployed
Q4: Where do you usually drink Coffee?
__Sari-Sari Stores __Super Markets
Q5: Do you drink the same type of coffee every
time?
__ Yes __ No
Q6: At what price is coffee affordable?
__ Less than P10.00 __ P101.00- P150.00
__ P 11.00 – P70.00 Others: _____
__ P 71.00 – P100.00
Thank you very much! ^_^
We are students of Ateneo de Davao University 2 nd year Business Management. We are conducting a survey regarding which coffee brands customers usually purchase. This market study will take part in the
partial fulfillment of our Marketing 310.
Price 1 2 3 4 5
Strength (taste) 1 2 3 4 5
Packaging 1 2 3 4 5
Great as hobby drink 1 2 3 4 5
Very ImportantNot Important
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BIBLIOGRAPHY
(http://ezinearticles.com/?Nescafe-Coffee&id=5799162) (http://www.interbrand.com/en/best-global-brands/best-global-brands-
2008/best-global-brands-2010.aspx) http://www.mightystudents.com/essay/global.promotion.strategies.164615 (http://kwiniepooh.blogspot.com/2009_07_26_archive.html) (http://foodanddrinkbusiness.com/?tag=nescafe) (Best Global Brands Ranking for 2010 www.interbrand.com) Best Global
Brands Ranking for 2010 (http://sanmigcoffee.blogspot.com/feeds/posts/default?orderby=updated) (http://www.sanmiguel.com.ph/Articles.aspx?MID=1&ID=1&a_id=427) (http://bs-ba.facebook.com/topic.php?uid=2378668741&topic=3728)
(http://www.reviewstream.com/reviews/?p=143155)
(http://www.indexmundi.com/g/r.aspx?c=rp&v=21) (http://www.zappafly.com/zapaframe.php?
url=aHR0cDovL3d3dy5pbmRleG11bmRpLmNvbS9waGlsaXBwaW5lcy9wb3B1bGF0aW9uLmh0bWw=&title=UGhpbGlwcGluZXMgUG9wdWxhdGlvbiAtIERlbW9ncmFwaGljcw==&searchid=997020&zapurl=latest+total+population+of+the+philippines+2009)
( http://chartsbin.com/view/581 )
( http://caryle.blogspot.com/2010/12/kopiko-brown-coffee.html )
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EXAM
PERMITS
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