Marketing Management 2 Term Project Phase 2 On Coffee

Presented by: Group 7Gaurav Bhattacherjee(B13026)Krishnan Sethumadhavan (B13029)Neha Sanghvi (B13037)Ram Mohan Paramasivam (B13046)Sagar Kumar (B13051)Marketing Management 2 Term ProjectOn Coffee

AgendaIntroduction Consumer & B2B market sizeProminent coffee manufacturing companies & their brandsProminent Brands In Each SegmentsBrand Positioning: Nestle Nescafe vs its CompetitionSWOT AnalysisSuggestionsLogo of Different BrandsBibliographyIntroduction India is the 6th largest producer of coffee in the world. Around 3 % of the world coffee productionKarnataka, Kerala and Tamilnadu contributes about 99% of total coffee produced in IndiaIn the annual output of 3,00,000 tons, domestic consumption is only one third (i.e. around 100,000 tons)Per capita consumption of coffee is around 85 grams in our countryAs per 2011 data, Indian coffee market is estimated at $230 million, or about 1,400 crore.It is estimated to grow at about 13-14% a year over the next five years.It is forecasted that the coffee market in India will cross INR 5600 Crore by 2017.Consumer & B2B market sizeAirlinesEducational InstitutionsDefense canteensMultiplexesHospitals

B2B market include supply in:- HotelsRestaurants Caf Chains Corporates IRCTCMessesThe B2B market size for coffee in India is 32% and rest of the 68% comes from B2C Prominent coffee manufacturing companies & their brandsNestl and Unilever together have the market share of around 67% in which Nestle accounts for 36% and Unilever accounts for 31%. And rest of the 23% market share is held by TATA COFFEE, AMALGAMATED BEAN COFFEE TRADING CO LTD, NARASUS, LEO and other local players NESTLE Nescafe Classic Nescafe Sunrise Nescafe Sunrise Premium Nescafe MFC Nescafe Cappuccino Nescafe ChocoMocha Nescafe Vanilla Latte TATA COFFEEGreen CoffeeSpray Dried CoffeeAgglomeratedFreeze Dried HUL BRU Gold BRU Exotica BRU Lite BRU Roast Ground BRU Select BRU Ice Cappuccino BRU Cappuccino Range BRU InstantAMALGAMATED BEAN COFFEE TRADING CO LTDFresh N GroundCoffee Day Perfect (Filtered coffee)NARASUSUdhayam LEO LEO (Filter coffee) Prominent Brands In Each Segments Segmentation by Price High Priced Brands

Nestle NescafePrice of 100 gmHUL BRUPrice of 100 gmGold499.00Exotica529.00Classis210.00Gold199.00Sunrise155.00Lite130.00Sunrise Premium146.00Instant174.00Average Price252.50Average Price258.00Price of 100 gmPrice of 100 gmAVT Premium Coffee33.00Green Label Coffee40.00 Mid Priced BrandsNarasus Price of 100 gmCoffee DayPrice of 100 gmLeo CoffeePrice of 100 gmUdhayam Filter Coffee45.00Arabicah106Leo House Blend74.00Narasus Extra Strong Coffee215.00Charge106Leo madras blend65.00Narasus Peabery98.00Perfect106Leo Top Blend92.00Leo Pure Top Blend74.00Average Price119.33Average Price106Average Price76.25 Low Priced BrandsProminent Brands In Each SegmentsContinuedSegmentation by Level of Caffeine

Light Coffee Bru lite, Bru instant, Bru select, Bru cappaccino, Nescafe cappaccino, Nescafe vanilla latte, Nescafe sunrise premiumStrong coffee Bru gold, Bru exotica, Nescafe alta rica, Nescafe cap colombie, Narasus udhayam filter coffee, Narasus Extra Strong Coffee,Narasus Peabery, Leo House Blend,Leo madras blend, Leo Top Blend, Leo Pure Top BlendDecaffeinated Coffee Nescafe original decaff, Nescafe gold blend decaffProminent Brands In Each SegmentsContinuedSegmentation by Product TypeInstant Coffee Prominent Brands: Nestle Nescafe, HUL BRU and Tata Coffee

Filtered coffee Prominent Brands: Amalgamated Bean Coffee Trading Co Ltd, Leo Coffee , AVT Premium Coffee and Green Label Coffee

Segmentation by SKUSachet Nescafe, Bru 3 gms, 8 gms, 50 gms, 100 gms, 200 gms and 500 gmsNarasus filter coffee, Leo filter coffee, AVT premium 100 gms, 200 gms and 500 gmsJarNescafe, Bru 50 gms, 100 gms, 200 gms and 500 gmsNarasus filter coffee, Leo filter coffee, AVT premium 100 gms, 200 gms and 500 gmsProminent Brands In Each SegmentsContinuedSegmentation by GeographySouth IndiaProminent Brands: Amalgamated Bean Coffee Trading Co Ltd, Leo Coffee, AVT Premium Coffee and Green Label CoffeeRest of the countryProminent Brands: Nestle Nescafe and HUL BRUConsumer Buying BehaviourRural Sachets, small SKUs like 5 gms and 10 gmsUrban Large size sachets and jar like 100 gms, 200 gms, 500 gmsProminent Brands: Nestle Nescafe and HUL BRUBrand Positioning: Nestle Nescafe vs its CompetitionSegmentation by Price:In price category BRU is the main competitor of Nescafe. Both operate in high price segment.Both BRU and Nescafe have their products starting from rupee 1, so even though they belong to high price segment they are trying to cater to the needs of low income group.Both Nescafe and BRU portray that they are high priced products through their ads. Their ads are themed around the upper middle class youth.Segmentation by Product Type Instant coffee: Bru, Nescafe, Tata Coffee.Instant coffee mainly concentrates on the attributes of fast and easy to make and convenient.Filter coffee: Leo coffee, Tata Coffee's Mr Bean, Narasus coffee, Coffee Day Perfect.Filter coffee concentrates more on taste and culture. Unlike instant coffee, making filter coffee is a time consuming process.Local players are involved more in Filter coffee segment.Brand Positioning: Nestle Nescafe vs its Competition ContinuedSegmentation by Geography North: Nescafe and BruNescafe and BRU revolve around the theme of freshness and youth. In Northern region, instant coffee is consumed in higher quantities.South: Narasus coffee, Leo coffee, AVT, Green label.Narasus and Leo coffee mainly concentrates on culture and tradition of south India.The southern part of the country consumes more amount of coffee and prefers hard and roasted coffee.Segmentation by SKU:Nescafe and Bru are trying to cater to low income group people by introducing sachets from as low quantity as 3 gms. A Bru ad also wanted to project that the amount of coffee one get from a Re.1 pack is more.Most of the local brands have not introduced low SKU packs. Brand Positioning: Nestle Nescafe vs its competition ContinuedSegmentation by Level of Caffeine (Nescafe & Bru):Since Caffeine is considered to be unhealthy, Nescafe doesnt highlight the caffeine content in their ads whereas in filter coffee caffeine content is mostly shown in ads.Instant coffee contains 60% coffee and 40% chicory whereas filtered coffee contains 7080% andchicory 3020%

B2B centric brands:In terms of B2B institutional, Major coffee brands are Nescafe, Bru and Tata Coffee.Nescafes B2B sales is mostly concentrated into coffee vending machines.Tata Coffees B2B sales is mostly concentrated in Tata group of hotels and caf chains.

CoffeeSize of cupCaffeine contentInstant 125 ml 50-60 mgFilter coffee125 ml60-100 mgSWOT AnalysisSTRENGTHS:Brand NameNestl, which is the parent brand of Nescaf is a Swiss multinationalfood and beverage company headquartered inVevey, Switzerland is the largest food company in the world by revenues. Nestl took the risk of entering the Indian market dominated by Tea drinkers only because of the strength they saw in their brand name.Entered in Indian market with the tagline Coffee with life in it, Ready in just 5 seconds.PositioningName : Nescaf is a combination of Nestl and Caf. Nes means miracle and Caf means coffee in Portuguese that positioned the brand as Miracle with Coffee.Nescaf positioned itself more than a coffee manufacturer and tried to portray its users as people who seek to be recharged, people who want to let others know that they have important stations in life, those who want to start their day with something positive, etc.Nescaf promoted its beverages as ideal for all occasions such as breakfast, midday, evening, night (when you want to stay awake), important days such as Valentines Day, etc.

SWOT Analysis ContinuedCreativityLaunched Instant Coffee in 1963 in a market where Indian coffee lovers were stuck with the idea that coffee is something that takes minute attention to prepare and cannot be instant.The first company to launch Coffee Machines for SMEs and Corporates in India.Redefined Coffee Blending.Creative Positioning by making it more than coffee with the Our look beyond the cup initiative.AvailabilityAvailable in more than 10 variants like Nescaf classic, Gold, Alta Rica etc.Available in various price ranges starting from Re.1/- sachets that makes coffee available for almost anyone.Promotion Nescafs red mug and jingle pa parara pa ra ra adds to brand value and unique identity to its products.Nescaf chose celebrities like Deepika Padukone, Karan Johar, Purab Kohli as its ambassadors when they were at the peak of their Carrier.SWOT Analysis ContinuedWEAKNESSES:India, still a country dominated by Tea drinkers.Coffee not being a healthy drink is avoided by health conscious peoplePromotions are limited for various varieties as there as many products which are still unknown to people, which portrays Nescaf as a sole brand.Still unable/did not enter the filter coffee segment.90% of coffee consumed in India is in three south Indian states dominated by filter coffee and local players.Have to manage a huge portfolio.The company has a complex supply chain management and the main issue for Nescaf India is traceability. The food industry requires high standards of hygiene, quality of edible inputs and personnel. The fragmented nature of the Indian market place complicates things more.SWOT Analysis ContinuedOPPORTUNITIES:Can enter the filter coffee segment as the brand value is very strong all over the world.B2B market can be expanded by going beyond coffee machines in theatres & corporate.Highlight the health benefits of coffee.Target House wives and old aged people as coffee consumers are high in this segment.Focus on rural areas as their promotion is subject to urban lifestyle.Increase the number of Caf Nescaf outlets as average bill value in cities is app Rs(250-300) Can widen the cake by focussing more on the caf outlets as Caf coffee day and Barista are major market leaders in that segment.THREATS:Bru is a big threat as Bru is second in most of the segments.Bru, being an HUL product has a very strong distribution in rural areas.Coffee not being a health drink cannot target students below the age of 14.Private labels can cause trouble as coffee is still treated as commodity in most of the rural areas.Other hot beverages like health drinks can draw source of business from coffee drinkers by promoting health consciousness. Targeting only youth can prove to be a threat.Nescafe can venture into Filtered Coffee market and it should be in south India firstThey could launch a preserved filtered brew of filtered coffee beans as a new product to make filtered coffee instantlyLaunch a new product NesNico nicotine gum to attract smokers who want to quit smokingThey can also launch Coffee flavored candy, health drinks, soft drink under the Nescafe brand.They can give small sized SKUs of premium and less aware brands as freebees to strengthen these brands.Nescafe can change the way of promotion to attract new consumers

SuggestionsLogo of Different BrandsNestle NescafeHUL BruTATA CoffeeNarasus CoffeeLeo CoffeeGreen Label CoffeeAVT Premium Coffee

Bibliography www.indiacoffee.org www.casestudyinc.com www.coffee.wikia.comwww.timesofindia.indiatimes.com www.slideshare.net www.techsciresearch.com www.youtube.comThank You