Nescafe Case Study
Essay by review • July 15, 2010 • Case Study • 8,850 Words (36 Pages) • 20,094 Views
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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