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Consumer Research-Nescafe Brand Personality comparison between International and Bangladesh market
The document is a marketing report submitted to a professor at North South University in Dhaka, Bangladesh about a market research study conducted on the Nescafe brand of coffee in Bangladesh. The report includes an executive summary that finds Nescafe has created a strong positioning in people's minds as an exceptional coffee brand. It also discusses Nescafe's history, target markets, positioning, pricing, and promotional strategies. The bulk of the report outlines the results of the market research study on Nescafe consumers in Bangladesh through surveys, including findings on consumption habits, brand perceptions and preferences. It finds that while Nescafe is very popular, there may be opportunities to improve quality and address some brand confusion.
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Consumer Research-Nescafe Brand Personality comparison between International and Bangladesh market
- 1. NORTHSOUTHUNIVERSITY Prepared by: NAME ID MD.ANIK1320236030 MD.RAHADUL ALAM 1321008030 MD.SAIFUL ISLAM 1321462030 MD.ISHTIAK KHAN 1220203030 MUSTAFIZUR RAHMAN 1320937030 Prepared for AUNIMA NAZMUN NAHAR Lecturer School of Business and Economics North South University, Dhaka
- 2. 30th December,2015 Aunima NazmunNahar, Instructor,ConsumerBehavior, Faculty,SBE North SouthUniversity,Dhaka. Subject: Submissionof MKT 344 Report. Dear Miss, In the followingpages,we have done ourmarketingreportonNescafe.We have enjoyedpreparingthe project.Inpreparingwe researchedonconsumerbehavior,we have triedourlevelbesttoinclude all the relevantinformationandtriedtoidentifydifferentproblems.Aswe are beginner,we maymake some mistakes.If youconsiderourmistakesaspardonable,we will be verypleasedanditwill be very helpful forourfuture career. Furthermore,if youhave anyqueryaboutconsumerresearchplease feel free toaskany of our group members. SincerelyYours- Mustafizur Rahman Saiful Islam IstiaqKhan Rahatul Islam Fahad Anik
- 3. Acknowledgment This project hasbeen an eye-opener for each and every member of our group and we have been fortunate to have the support, assistance and encouragement of a number of individuals while preparing this project; without their help and support it would be hard to complete this study. We express our sincere gratitude to our Instructor Aunima Nazmun Nahar, Lecturer, School of Business, North South University, Dhaka for guiding us in completing this study. Our appreciation goes to the team members whose unflagging capacity for creative work and long hours made the project successful – under the pressure of deadlines. And heartiest thanks to those who have helped us to improve this consumer research and behavior with various advice. Executive summery The followingprojectisbasedonone of the mostrenownedbrandinthe marketof coffee in Bangladesh,the Nescafe.The projectisonthe consumerassociationwiththe Nescafebrandin Bangladesh.Tofindthisout,we surveyedoverhundredpeople aroundDhakacity.We made questions whichcan bringout the positionsNescafecreatedinpropelsmind. We sortoutthe data’swe got from the surveyandinquire them.Thenanalyze the inquirytogetan overview of the currentcoffee market.
- 4. We alsocollectedoursecondarydata’sfromrenownedwebsitesandNescafeofficial website.Those data’sexplainedushowpeopleare adoptingthe coffeetrendsinBangladeshnow adays.The tea loving countryis gettingintothe newtrendmore now thanbefore theyusedtodo.Althoughthere are many coffee brandsinthe market,Nescafé servesexceptional refreshmentforwhichitcreatedan distinguishedpositioninginpeoplesmind. As an increasingeconomiccountry,Nescafe isrunningitsbusinesssuccessfullyformanyreasons.For instance,there are manyinstantcoffee productsinourmarket.Butthere are no otherinstantcoffee is as strong as Nescafe Nescafeholdsitspositiontotopbycapturingyounggenerationmore significantly. The young people are more intothe coffee trendherebytheyare more likelytopickNescafé whenit comesto coffee.Infactsometimesthe pronounce Nescafeinsteadof coffee toordercoffeesinthe restaurant. INTRODUCTION The newproduct wasnamedNESCAFÉ – a combinationof the Nes-rootof Nestlé andthe wordcafé. NESCAFEwasfirstintroducedinSwitzerland,onApril 1st,1938. For the firsthalf of the nextdecade, however,WorldWarII hindereditssuccessinEurope.NESCAFE wassoonexportedtoFrance,Great Britainand the USA. Americanforcesplayeda keyrole inre-launchingNESCAFEinEurope byvirtue of the fact that it wasincludedintheirfoodrations.Itspopularitygrew rapidlythroughthe restof the decade. Nowa day’scoffee becomespopularinBangladesh.Althoughteaculture existsinthe country,
- 5. Nescafe iscreatingculture ofhavingcoffee daybyday.SoNescafe isthe pioneerbrandinthe coffee market. NowNescafe concentratesonyounggenerationsotheylaunchREDvulationcamping.NESCAFE. Addeda newredaccent totheirbrand name,a brightrediconiccoffee mugand theirnew sloganis now,“It all start withNescafe” Market Overview Nowdays,coffee forBangladeshi peopleisnotnew.The countryhasneverbeenkindtothe coffee loversasfar as popularityconcerned.Peoplepreferteamore thancoffee here.Withthe adoptionof newtrendsnowpeople are switchingintocoffee trendsnow.Butthe frequenciesof switchinginto coffeesare nothighenough.Because of inBangladesh,streetside teashopsandteabusinessesare more than coffee shops.Ourcountryhastea gardensand local teacompanies.The coffee companies here are mostlyfromoutside of country.Socoffeesare available onlyinbigcities.Asoureconomyis growingcoffee trendsare scatteringthroughoutthe country. HISTORY OF NESCAFE The beginningsof NESCAFEcanbe traced all the way back to 1930, whenthe Braziliangovernmentsfirst approachedNESTLE.Our coffee guru,Max Mergenthaler,andhisteamsetoutimmediatelytofinda wayof producinga qualitycupof coffee thatcouldbe made simplybyaddingwater,yetwouldretain the coffee'snatural flavor.Aftersevenlongyearsof researchinourSwisslaboratories,theyfoundthe answer.
- 6. The newproduct wasnamedNESCAFE— a combinationof NESTLEand café.We firstintroduced NESCAFEinSwitzerlandonApril 1,1938. For the firsthalf of the nextdecade,however,WorldWarII hindereditsexpansioninEurope.NESCAFEwassoonexportedtoFrance,GreatBritainandthe United States.Withoutrealizingit,Americansoldiersplayedakeyrole inre-launchingNESCAFEonthe continentbyvirtue of the fact that itwas includedintheirdailyfoodrations.Itspopularitygrew rapidly throughthe rest of the decade.Bythe 1950's, coffee hadbecome the beverageof choice forteenagers, whowere flockingtocoffee housestohearthe new rock'n' roll music. As the needsandwantsof modern coffee drinkerschange,NESCAFEisalwaysreadytoofferyouknew and outstandingcoffeebeverages. NESCAFE'sproductportfoliocurrentlyincludesflavored-coffee mixes and a range of instantproductsto meetyourdesire fornew varietiestocomplementyour life. Company Overview In 1930 the BraziliangovernmentapproachedNestletocreate a new instantcoffee thatwouldgive the consumeranotheroptionandat the same time increase the dwindlingcoffee exportsof Brazil.Ittook eightyearsbutin 1938 Nestle introducedNescafe. Instantcoffee wasnota newidea;it wasoriginallyinventedbyaJapanese chemistnamedSatori Katoin 1901 and had beenmarketedandsoldbyvariouscompanieswithdisappointingresults.Nescafe revolutionizedthe wayinstantcoffeewasmade. Target Market
- 7. The target marketsofNescafe are students,professionalsandgeneral people.It’sbeenhardtoreach to illiterateoruneducatedpeople astheystill preferthe substitute of Nescafe whichisTea. Positioning Nescafe uses productdifferentiation and image differentiation in order to gain competitive advantages to build a position by providing superior value compare to competitors. Nescafe has the biggest marketshare in instant coffee market with the features of its products, quality levels, and the satisfaction that it gives to customer as perceived value. To many people who are inspired and trendy about Nescafe think it makes them relax and happy. . Price The price of Nescafe isconsiderablycheaperthanthe competitorswhichis one of the mainreasonswhy mostrestaurantsuse Nescafe insteadof otherbrands.CustomerspreferNescafe becausetheythinkitis withintheirbudgetanditsatisfiestheirneeds. Promotional Strategy Nescafe use differentpromotional strategiesfordifferentcountriesorregions.Nescafe formsitsown strategyto effectivelytargetitsaudience andgeneratesalesforthe growthof the company.Nescafe
- 8. has itsrecognitionforwarmth,exciting,friendly&energy;andNescafe usethese beneficial sightsas promotionsthroughoutcountriesandregions. MARKET RESEARCH OF NESCAFE Research Objectives To conduct a quantitative research, weneed a survey. To identify consumer’s coffeedrinking habits. To identify people’s attitude towards Nescafe. To identify pricing demand of coffee lovers. To identify service activities of Nescafe. To identify satisfaction with Nescafe’s positioning RESEARCH METHODOLOGY Why to undertake research Research objectives To find the loophole of brand personality Compare the brand personality Limitations: The survey was restricted to only 106 people, including male and female. Sample Size: The sample size consisted of 106 respondents. Sample Frame: All the questionnaires were filled within 2 weeks. Targeted Population: Users, Non-users, adults, working people and housewives.
- 9. • Method ofData Collection: Primary Source – Survey was conducted with help of a Questionnaire. The questions were based on Consumer’s buying patterns, Brand Awareness, Brand Preference and General Information. Secondary Data – Internet It was observed that an Exploratory as well as Descriptive research would be required. Nescafe is a successfulpopular brand. When a research on Nescafe was pulled off, these findings were collected. The findings are based on quantitative research. The surveywas mostlybasedonmales;andfemaleswerealsopartof the surveybutfew girlswere askedcomparedto malesasthere were 76.4% malesandonly23.6% females.
- 10. It isshowninthe piechart that responses fromourrespectivebrandare mainlyfromyoungpeopleaged 21-25 yearsoldas assumedand it indicatesthathere younggenerationlovescoffee more asthe more day progresses.84%of our respondentswere 21-25,there were 9.4% respondentswhose age group is 26-30. There were alsosome respondentsof 16-20 and 31-35. Whenthisquestionwasaskedthatdo theylike coffeeornotit got a satisfactoryresultas93.3% people saidthat theylike coffee.And6.7%respondentsansweredthattheydon’tlike coffee.
- 11. TheymeantNescafe whentheywere askedaboutcoffee.94.3%people like Nescafe anditprovesthat Nescafe isnota coffee anymore ratheritisa wayof living.It’salifestyleitself. Between the options of spirit of youth, romantic, bitter taste, breakup, best brand in category and chilling with friends; most people choose chilling with friends. Around 41.9% think Nescafe means to chill with their friends and 28.6% think it Nescafe is a spirit of youth to them. 14.3% rated it as the best brand in category and 12.4% ranked it
- 12. on taste verifyingbitterness. Only 2.9% rated Nescafe as romantic whereas nobody rated it as breakup. Although Nescafe is a way of living and almost everyone like coffee but the buying pattern of the people confuses the research objective.33% people buying it twice a week and 23.6% are buying it 4 times. 20.8% respondents answered that they buy Nescafe around 5 times or above of 5 times in a week. So if it is a lifestyle and people like drinking coffee the consumption should be much higher than the data are shown which is a matter of qualitative research.
- 13. A satisfactory resultwas found as most people (34%) choose “I like Nescafe and my mind satisfies only when I buy it” from the options. But 26.4% choose Gloria Jean’s Bean and that means they are catching up quickly. 22.6% choose MacCoffee, 15.1% choose Bru Coffee, and only 1.9% choose others. It is quite clear that Nescafe should improve themselves or there is a high chance they will be lagging behind in future.
- 14. Their positioning wasunder and sometimes confused but new positioning of Nescafe is for the people of all ages. Nescafe is trying to give the world what is needs and 86.7% is the proof. In the survey, among the option of homemade, coffee shop and kiosk; homemade ranks higher in percentage with 54.7%. Nescafe mini packs are paving the way for homemade consumers. On the other hand, 28.3% consumers prefer coffee shops for consuming Nescafe whereas 17% consumers prefer Kiosk to buy Nescafe.
- 15. Redrepresentsbeautyinmanylanguagesandcultures.Nescafe redmughasbeenitssignature mark fromthebeginningandasthe data shows93.3% people alwaysassociate itwiththe Nescafe. Though Nescafe is doing brilliant but still people t There are no sources in the current document.hink they need to improve their quality as 87.6% choose Yes as their opinion. Only 12.4% think Nescafe is doing fine.
- 16. The taste ofreal coffee is rather bitter to the normally practiced tea drinks usually served and drunk all over the country. That the vending-machine idea was a penetrating strategy for Nescafe ,the taste of coffee was lightened with a lot of milk and sugar in the recipe to deem acceptable by the general public(95.2%). It is clearly shown in the data
- 17. Nescafe is wellknown for its availability and their price. It is less pricy compared to other brands in the category. 78.1% think it is not pricy and 21.9% still think Nescafe should reduce their price. There isclearlya lotof confusionregardingfriendshipwhichisthe brandpersonalityof Nescafe.Half of the people(51.4%) agree withthe friendshipbutthe otherhalf is divided.Sothe there ismismatchisnot onlyininternational level butalsoindomesticlevel too.
- 18. A nice cupof Nescafe can make the conversation more enjoyable. According to respondents, 65.7% choose the option obviously, and those we are neutral or thinks sometimes Nescafe helps the conversation choose the option to some extent that is 29.5%. And only 4.8% people think Nescafe has nothing to do with making conversation more enjoyable.
- 19. As there isclearloopholeindomesticlevel aswell asinternationallevel itisveryclearthatpeople are alsoconfusesaboutthe ‘friendship’personalityof Nescafe andthe previousandnew positioningmakes people(54.3%) getintothe mix tothinkthatitruns on It’spersonality. International Brand Personality of Nsecafe One of the world’smostlovedcoffeebrands- NESCAFEhasmade itselfknowntoasmanyas six generations!Itisa productas oldas George biro’sball pointandpre datesthe pocketcalculator,the remote control,the personal computerandthe mobile phone.Ithaslivedthroughaworldwarand a coldwar and evenbeensenttothe moon. Overthe past 75 years,NESCAFEhas grownon the commitmenttoa promise- tomaximizethe enjoymentandease of preparingacupof coffee.Backedbya pipeline full of breakthroughinnovation and a strong commitmenttowardsenhancingthe coffeeexperience of ourconsumers,NESCAFEhas become one of the most popularglobal brands.Itslongevityhasbeenbuiltonconnectingwithnew customersandon earningandretainingtheirtrust.The commitmenttoqualitygoeswell beyondthe product.Theyhelpcoffee farmers andare alwayslookingtogo“Beyondthe cup”. “It all starts witha Nescafe”.The international personalityof Nescafeisfriendship.The Nescafebrand usuallyhada close relationwithanatmosphere of tastefulcoffee pleasure,warmandfriendly.The Nescafe saysthattheylove makingnewconnections,friendshipandrelationships.It’soutof theirlove of connectingandinnovatingthat“It’sall startswitha Nescafe”wasborn.Whetherit’snew ideas,new friendshipsorjusta newday-Nescafe isexcitedtobe there withthe customers.Nescafeisnotjusta cup of coffee tothe customersratherit’sthe start of the new relationshipamongthe friends,family,
- 20. colleaguesand,peers.Internationallyithasacceptedthatwhenpeoplehavingacupof Nescafe they feelverymuchfriendlywiththeirfriendsandthusNescafe helpstostrengthenthe friendships. Comparison of International Brand Personality and local Survey : In our surveyof Nescafe we have foundoutthatmost of our respondentssaysthatwhen theyfirstsee the “Nescafe”the firstthingcome to theirmindthattheyare chillingwiththeirfriendsasa resultthe friendshipgetstrongerthanbefore andtheycancreate outstandingrelationwiththeirfriends. In our surveythe questionnumber5is that “Whenyouhear the word“NESCAFE"what isthe firstthing come to your mind?”So,inour surveyresultwe foundthataround28.6 %( 30) people findNescafeasa Spiritof Youth where 2.9 %( 3) finditself Romantic.12.4%(13) feel itself asaBittertaste where there is no one whofounditself asa Breakupsign.14.35 (15) people see itself asaBestBrand Categoryand 41.9% (44) the most findNescafe asanopportunitytoChillingwithFriends.Sowe caneasilysee that mostof them(41.9%) people thinkaboutchillingwithfriendswhentheysee Nescafe. In our surveythe questionnumber14 is“ The brand personalityof Nescafe is“Friendship”.Doyouthink it isappropriate forNescafe?”In thissurveyalmost51.4% (54)expressthatNescafe representsthe personalityof friendshipitshowsthatNescafe playavital role tomake friendshipperfectlymatched. 11.4% (12) disagree tothat andtheythinkneutral theydon’tknow andtheydidn’ttookanyside whethertheyare quite happytoenjoythe coffee itself thatitdoesn’tmake anysense tobe relatedwith friendshipwhere 37.1%(39) of people are quite neutral.Theydon’tknow andtheydidn’ttake anyside whethertheyare quite happytoenjoythe coffee itself.Sothe overall findingof oursurveyaboutthe ultimate personalityof Nescafe ismostlyfriendshipstaffswhichconcludesthatthe international brand
- 21. personalitymatchedwiththe resultof oursurveywhichwehave foundoutthatthe consumersof Nescafe considerthatNescafe hasthe personalityof friendship. Loophole Nescafe isa leadingglobal brandthatsuccessfullyspread it'sreputation worldwideresponding to consumerneeds, inanadvancedandcreative way.Besideshavingaconsiderable varietyof product, Nescafe goesonwithits conceptof unity.The brand isstrong andit has, byfar, the biggestmarketshare amongits instantcoffee manufacturingcompetitors.Nescafe holds80% of the sharesof the world market.But thisdoesnot indicate thatNescafe hasbeenable tosatisfy andgrab the entire market existinginthe world.In the Bangladeshimarket,Nescafe hastoimprove theirmarketingstrategy.In Bangladeshthere existsateaculture and itis veryhard to establish coffeeasa substitute productto take that market.Nescafe enteredthe marketsuccessfullybutit isnot beingable to coverall the area of Bangladesh.There isanotherissue thatNescafe cangetridof.Many people of Bangladeshdonotgo to coffee shopsordo notknowabout coffee speciallyinrural area.Nescafe shouldimprovetheir promotionanddistributionchannel inBangladeshimarket. Accordingto consumptionbehaviorNescafe launched variousquantityof coffeebottle orpack. Nescafe launched 2Tkinstantcoffee packwhichwas of verylow qualityforwhichmanyconsumersdid not buythat. Whichdestroymanycoffee consumers.Nescafe alreadytook95% of the coffee market
- 22. and has spreadtheiravailabilityof productespeciallyinmetropolitanarea.Those whoconsume coffee by theirhabittheyare sort of bound to buy Nescafe.InBangladeshNescafe cannotserve theirbest productor differentflavorcoffee,they only selltheir classicflavored productwhichare mass distributedin the market.Nescafecannotprovide sufficientamountof coffee makingmachine inall marketso the taste of the coffee variesfromshoptoshopor place to place . NESCAFEdoesnot run heavypromotioninrural or Sami rural area inBangladesh.Nescafecannotcreate astrong positionin seniorcitizens’inBangladesh.InIslamicculture some oldcitizensdonotlike westernculture ascoffee is a part of westernculture.There isanotherhealth conscious issuebecause of the caffeine the products of NESCAFEcontain. Things “Nescafe” is missing: Noteverythinginthisworldisafullya hundredscorer.AlthoughNescafe isholdingastrongbrand positioningaroundthe world,aswell asincoffee loversmind,there are some negativesidesof this brand as well.The thingsthe brandismissingisgivenbelow, 1. Lack of drawn between other companies: Currently many instant coffee chains are entering in the instant coffee category market. Their instant coffee tastes are almost coping with the taste of Nescafe. So some people are likely to choose other brands over Nescafe.
- 23. 2. The weakbreadth of brand salience: Nescafe appears to be excelling at the depth of attracting its consumers. But the brand does not surface in consumers mind that easily or frequently in general coffee purchase and consumption situation. 3. The lack of strong and unique compared to other brands: Nescafe is generally described as a brand consumers are neutral about. Even though they are aware about Nescafe, the brand held a little importance or significance to them. They are losing favorable associations as well than other brands. 4. Lack of relationship with young generation: In spite of having a significant portion of young consumer, Nescafe is falling behind to create a significant relation with the consumers. This is costing the brand to some extinct in the market. 5. Lagging behind Consumer Trends: Different people in different region follow different trends. Some people are facing difficulties that the company is currently creating miscommunications in some portions of their business areas. 6. Incongruence in Brand Communication: Despite efforts to reach out to consumer via events, NESCAFÉ’ has not been leveraging on these efforts to its full potential. Sometimes it makes its appearances at events of no relevance (e.g. Gaming roadshows, etc), making it hard for people to associate the brand with anything in particular.
- 24. Conclusion Nescafe isa popularglobalbrand.Nescafe runstheirbusinessaround 160 countries.Althoughtestand preference are differentfromeachcountryNescafe adopteachcountriesculture,peoplebehavior,test, preference andruntheirbusinesssmoothly.Nescafe make itpossible because of theirabilityto understandtheircustomerbehavior,attitude,testandpreference.Theyserve coffee atacheaperprice rate thanits competitorsandstill itismuchmore preferable becauseof itstaste andpositioning. Nescafe isstill tryingtoreachthe countrieswhere coffeeisnotvery popular,theyare tryingtoposition theircompanyineverypart of the worldwhichmay be possible inthe comingyears.Nescafegivesa vibe of friendliness,togetherness,warmth,relaxation.Ithasreachedtoa situationwhere peoplerelate coffee withNescafe.Asglobal brand,itcannotaskmore fromitsconsumers.Now Nescafe standsfirst positionininstantcoffee industry.
- 25. References : Journal Reference: RugBulter.(1999). Tea & CoffeeTradeJournal BookReferences: IdrisMootee.(2006). 60 MinutesBrand strategies.Retrievedfrom http://www.amazon.com/60-Minute- Brand-Strategist-Essential-Professionals/dp/1118625161 Online Sources: http://www.nescafe.com/ https://lifequeen888.wordpress.com/2010/06/26/nescafe-introduction-nescafe-cts7/ https://en.wikipedia.org/wiki/Nescaf%C3%A9 http://www.scribd.com/doc/21248912/nescafe-brand-study#scribd http://www.nestle.com/brands/allbrands/nescafe
- 26. http://www.nescafe.com/our-world Appendix : Table ofcontent Subject Page No Executive summary Introduction History Of Nescafe Company Overview Target Market Positioning PromotionalStrategy Market Research Of Nescafe InternationalBrand Personality Of Nescafe Comparison Of InternationalBrand 1 2 3 4 4 4 5 5 16 17
- 27. Personality and LocalSurvey Loophole Things The Brand Is Missing Conclusion References Appendix 19 20 21 22 23