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Nescafe

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Autor:   •  July 15, 2010  •  8,850 Words (36 Pages)  •  15,379 Views

Page 1 of 36

TABLE OF CONTENTS

TOPIC PAGE

I. Market Background 4

II. Objectives 7

III. Market 7

IV. Research Methodology 8

V. Findings 8

A. STEP Analysis 8

B. Market Size Estimation 10

C. Spotting Opportunities 11

1. Opportunities Product Life Recycling and Extension 11

2. Opportunities for Promotional and Product Extension 12

3. Opportunities for Market Development 13

4. Opportunities for Better Brand Loyalty and Switching Strategies 14

5. Opportunities for Improving the Competitive Status of the Brand 17

6. Opportunities for Determining the Brand's Correct Competitors 18

D. Share of Mind vs. Share of Market 19

E. Brand Positioning Behavior 22

1. GAP Analysis 22

2. SWOT Analysis 23

F. Market Segmentation 24

G. Dream Positioning Model 28

1. Activity-based dream position 28

2. Adventure-driven dream position 28

3. Self-identity dream position 28

VI. Summary 28

VII. Recommendation 29

VIII. Appendix 30

A. Sample Survey- English version 30

B. Sample Survey- Tagalog version 34

C. Who else in your household uses coffee 38

D. What else is being used together with instant coffee 38

E. What else is being bought together with instant coffee 38

F. Where instant coffee was last bought 38

G. How often instant coffee is being purchased 39

H. Brands Previously Used Versus Brands Currently Used 39

I. Brand Awareness for Instant Coffee 40

J. Brand Share of Mind vs. Brand Share of Market 41

K. Reach, Conversion & Retention Ratio 41

L. Brand Rating Based on Top 5 Attributes 41

M. Brand Ownership Based Market Segmentation 42

LIST OF FIGURES

Figure 1 Market Size Estimation 10

Figure 2.1 Who else in your household uses coffee 11

Figure 2.2 What else is being used together with instant coffee 12

Figure 2.3 What else is being together with instant coffee 13

Figure 2.4 Where instant coffee was last bought 13

Figure 2.5 How often instant coffee is purchased 14

Figure 2.6 Brands Previously Used vs. Brands Currently Used 15

Figure 2.7 Three Level Product category 18

Figure 2.8 Three Level Product category of instant coffee 18

Figure 3.1 Brand awareness 19

Figure 3.2 Percentage of Mind & Market Share 20

Figure 3.3 Reach, Conversion and Retention Ratio of Top 5 brands 21

Figure 4.1 Brand Rating Based on Top 5 Attributes 22

Figure 4.2 SWOT Analysis 23

Figure 5.1 Market Segmentation- Age 24

Figure 5.2 Market Segmentation-Educational Attainment 25

Figure 5.3 Market Segmentation-Monthly Income 25

Figure 5.4 Market Segmentation-Civil Status 26

Figure 5.5 Market Segmentation- Sex 26

Figure 6 Naturally Occurring Segmentation (NOS) of the instant coffee market in terms of the users 27

LIST OF TABLES

Table 1 Nescafe Prices 5

Table 2.1 Pro-forma Cross Tabulation Table: Previously Used Brands Versus Currently Used Brands 16

Table 2.2 Computed RSOM's of the Twelve Instant Coffee Brands 17

Table 2.3 Who else in the household uses instant coffee 38

Table 2.4 What else is being used together with instant coffee 38

Table 2.5 What else is being bought together with instant coffee 38

Table 2.6 Where the instant coffee was last bought 38

Table 2.7 How often instant coffee is being purchased 39

Table 2.8 Brands Previously Used Versus Brands Currently Used 39

Table 3.1 Brand Awareness for the Instant Coffee Brands 40

Table 3.2 Brand Share of Mind versus Brand Share of Market 41

Table 3.3 Reach, Conversion, and Retention Ratios 41

Table 4.1 Brand Ratings Based on Top 5 Attributes 41

Table 5.1 Brand Ownership Based Market Segmentation 42

I. Market Background

Nestlé, one of the most successful companies in the world is well-known in the Philippines for offering diverse products in the market and one of them is Nescafé. Nescafe is now at its maturity stage and is considered as the market leader in the instant coffee industry.

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

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