Sei sulla pagina 1di 21

BRM Project Group 8

Nescaf Pakistan
Submitted by: 17010011, 17010018 & 17010059

Submitted to: Rohail Ashraf


Brand Management (MBA 6045)
Contents
1 Introduction....................................................................................................... 1
1.1 History of Nestl Nescaf Coffee.............................................................1
1.2 Nestl Nescafs Coffee Business............................................................1
2 Customer Analysis............................................................................................ 2
3 Competitor Analysis......................................................................................... 2
4 Nescaf as a Brand........................................................................................... 5
4.1 Brand Elements.......................................................................................... 5
4.2 Brand Positioning....................................................................................... 6
4.3 Brand Portfolio............................................................................................ 7
5 Integrated Marketing Communication Strategy..........................................8
6 Proposed Strategy and Rationale................................................................10
6.1 Theory........................................................................................................ 10
6.2 Strategy..................................................................................................... 11
Exhibit-1 - Nescaf brand value growth history from Interbrand website (Website, 2016).................13
Exhibit-2a Person of Nescaf Coffee Consumers.................................................................13
Exhibit-2b Person of Tea Consumers................................................................................ 14
Exhibit-3 Market Share of Tea Industry in Pakistan (Essays, n.d.).............................................14
Exhibit-4a Nescafs recent change in brand Symbol (Armin, n.d.)..........................................15
Exhibit-4b Nescafs relationship between Brand Elements (Armin, n.d.)..................................15
Exhibit-4c Typical portrayal of Nescaf Coffee Consumer.....................................................15
Exhibit-5 REDvolution Marketing Campaign Images...........................................................16
Exhibit-6 Hierarchy-of-Effects Model..............................................................................17
Exhibit-7 Keller's Brand Equity Model.............................................................................17
References................................................................................................................ 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

1 Introduction
1.1 History of Nestl Nescaf Coffee
Nescaf coffee brand is owned by Nestl, a global organization renowned for fast-moving
consumer goods (FMCG) or consumer packaged goods (CPG). The beginnings of Nescaf can
be traced all the way back to 1930, when the Brazilian government first approached Nestl. The
Brazilian Coffee Institute sought Nestl to preserve the huge coffee surpluses, by developing a
coffee that was soluble in hot water. Building on Nestls milk processing expertise, the company
developed soluble coffee. This helped thousands of Brazilian farmers in avoiding hardship and
crop waste. True to the companys heritage, Nestl till date continues to support and work with
farmers around the world. The company sees sustainable development as working along three
dimensions: people, planet and profit. This was in line with Nestls aim to become not only a
food giant but also a company that dealt in nutrition, health and wellbeing. (Valrie, n.d.)

1.2 Nestl Nescafs Coffee Business


Nestl is one of the worlds largest direct purchaser of coffee. From the start, coffee had been at
the core of Nestls success. Nestle introduced Nescaf, the first commercially successful soluble
coffee, in Switzerland on April 1st, 1938. Nestle revolutionized the way instant coffee was made.
Nestl developed a new process for dehydrating coffee which vastly improved the quality.
Initially the product did not sell well, but its timely introduction into soldiers rations in Europe
during World War II built its popularity. Over the years, Nestls Nescaf brand has continued to
innovate and pursue its passion of finding new ways for coffee lovers to enjoy their favorite cup.

According to Interbrand report, Nescaf is ranked 36th as Best Global Brands of 2016 with brand
value of approximately $12,517 million. Exhibit-1 shows Nescaf brand value growth history.
During the period from year 2009 to 2013, Nescafs brand value consistently declined, reason
being that instant coffee market was losing space to the ground coffee brands like Starbucks,
Jamaican Blue Mountain, Hada Del Caf etc. After 2013, the Nescaf brand has continued to rise
because of the increase in demand for premium coffees, and Nestl has also educated its
consumers about the health benefits of the beverage. In addition, the company has introduced a
new packaging shape to replace the current round of composite containers for many in its
product line. Consumers were particularly impressed by the premium feel of the new metal

Page 1 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

packaging, the functionality of its shape, and the re-sealable hinged lid. (Website, Interbrand
Experiences, n.d.)

Nowadays, there are more than 200 different products worldwide under the same umbrella brand
Nescaf. Each product has its own features, but all contribute to the value of the brand.

2 Customer Analysis
Coffee has mainly been perceived as elite product targeting the echelons of SEC A and A+ and a
target group between the ages of 18 to 40. The target group for Nescaf has traditionally been
the youth, with people studying in universities the main target. This has been constantly shown
by the previous advertisements of Nescaf and the various price points of different SKUs that
Nescaf has. Exhibit-2a shows the persona of traditional Nescaf consumers.

There has been a strategic shift in mindset at Nestl with the product now being targeted towards
the masses. Theres a shift from it being an indulgence product to becoming an everyday product.
So now the customer has shifted from the young trendy kids/adults to everyone. The target
market for Nescaf is now the same as that of tea. Its very hard to define the TG of tea, everyone
drinks it from a 6 year old kid to a 70 year old uncle. Nescaf wants to penetrate in to the tea
drinking segment. Exhibit-2b gives the persona tea consumers in Pakistan.

3 Competitor Analysis
Nescaf is currently positioning itself to take on the local tea consumers. Pakistans tea industry
is dominated by 2 large players, 3 medium sized players and multiple unbranded smaller players.
Nescaf attempts to grab a small market share of the current tea industry, with the tea cups to
coffee cups drunk per year at a ratio of 400:1.

Tea has multiple variations in Pakistan (listed below). For the purpose of this report, we
concentrate on the most popular form of tea, and their relative Brands/ Competitors (Table 1)

Types of Teas; Dum ki Chai, Doodh Pati, Masala Chai, Kashmiri Chai, Kahwah (Green Tea),
Butter Tea.

Page 2 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Table 1. Brands/ Competitors

Brand PKR per PKR per PKR per PKR per PKR per PKR per
Name Sachets 95gm 190gm 385gm 475gm 950gm
Tapal 24 (PKR 84 160 350 820
Danedar 580/bag)
Lipton 80 180 380 400 865
Brooke 80 150 370 715
Bond
Tetley Tea 70 150 320
Vital Tea 10 80 160 360 760

As Tea is considered a commodity with all tea brands providing similar functional benefits, most
brands have changed their positioning from being a superior product, to that of a brand which
connects with their TGs societal/cultural values.

Lipton:

The brand has always positioned itself as a premier tea through its premium pricing, packaging
(especially tea bags) and driving its marketing campaigns accordingly. Since 2010, the brand
emphasizes celebration and targets age demographics between 18-60 years and uses Unilevers
financial strength for celebrity endorsements, which appeal to its youth target market. These have
included singers Hadiqa Kayani, Ali Zafar, Misha Shafi crediting their creativity to the brand. In
2016, the brand has re-positioned its marketing campaign towards its functional aspect by
emphasizing its better tasting product compared to other tea brands, with the endorsement of
Hamza Ali Abbasi, a liberal opinionated celebrity whom appeals to the current youth.

Tapal Danedar:

Tapal positions itself as a brand which appeals to its TGs societal/community values. In 2010, the
launch of an advert showing community house wives arguing over rights of ownership for the
months committee, and ending with them coming to an agreement of shared responsibility
after sipping a cup of Tapal tea. In 2014, Tapal shifted from its traditional cultural positioning
and attempted to position itself as more exciting, by finding humor in societal deviations
normally frowned upon i.e. spying on neighbors. The aim was to show how the brand was more
fun, interesting and targeted at the young adults and its existing customers.

Page 3 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

In 2017, Tapal attempts to target a younger customer segment, between ages 20-35, by
emphasizing its products POD by concentrating on color, smell and taste of its tea, whilst still
emphasizing family values and promoting a new belief becoming popular in the youth i.e. the
caring spouse. The aim of this shift hints towards defending its customer base against the
potential threat from lipton and loss of customers to coffee. The brand is a strong competitor
against Nescafe due to its recent marketing TVC as well as the launch of a new all in one tea
sachet, which aims to trump the Nescafe 3-in-1 coffee sachet.

Brooke Bond Supreme:

Brooke Bonds target market is that of the local house wife, the DMU for purchase of its
Supreme tea, specifically lower middle class and aged 22-70. The brand builds its strength on the
traditional societal opinion of women being the backbone of a family unit, hence associate care
and love by the house wife for their spouse and children with Supreme brand. The brand uses
celebrities ranging from actresses to TV cooking show hosts including Zubaida Apa, which
appeal to their target audience through their inherit credibility as responsible/ capable house
wives. In 2016, the company has driven its marketing campaign towards emphasizing the health
benefits associated with drinking tea (not just Supreme) to enhance their brands credibility in
order to boost usage/ consumption of their tea.

Tetley Tea:

A merger between Lakson Group and Indias Tata Tea, the brand positions itself similarly in
Pakistan as it does in India which is promoting its brand at the DMUs of tea purchase, females in
the middle class aged 18-60. As Tetley tea is a relatively new, foreign brand, it portrays a non-
controversial message by emphasizing on a collective family unit making life decisions after
sharing a cup of its tea. TVCs utilize the celebrities which appeal to a broad range (in terms of
age) of their targeted DMUs, attempting develop loyalty for the brand by establishing its
credibility.

Vital Tea:

The Vital Tea targets the lower middle class and lower class consumer, by emphasizing family
values and promoting cultural norms, rather than its product function. The brands marketing
campaigns push the brands strategy through its adverts i.e. avoiding using celebrities and instead

Page 4 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

using characters in circumstances which are relatable to the common lower income customer and
trade promotions i.e. PKR 10/sachets. The brand attempts to overcome a cultural myth of
elevating ones current position through the consumption of its product through the tag line
Vital Tea piyo, zindagi jiyo.

In 2016, the brand aimed to emphasize its tag line through the use of a TVC commercial
celebrating a lifesaving female doctor, despite struggling with her emotional hurdles. The aim is
to attract a younger, more risk seeking target audience of the same social class as before.

Grey Channel:

Although undocumented, the channels (illegal importing of Nescaf products) is a significant


challenge for Nescaf Pakistan to offset losing their existing coffee market share to Nescaf
products manufactured in other countries (Europe, Middle East etc.). The company continues to
battle through trade promotions to offset lost revenues from this channel.

Market Share:

Lipton is the dominant market leader in Pakistans tea industry, with a market share of 54%,
followed by Tapal Dandar with 28%. In contrast, Tetley, Vital, Brooke Bond Supreme and
unbranded tea manufactures hold the remaining, smaller market shares of 4%, 1%, 1% and 12%
respectively. Exhibit-3 shows the market share of the tea industry.

4 Nescaf as a Brand
4.1 Brand Elements
The word Nescaf is a combination of the three first letters of Nestl and caf, which is
coffee in Portuguese. Besides some packages and products changes, Nescafs brand symbol
has always remained the same from its origin. Nestl has recently made a simple maneuver with
brand symbol by just changing the text style (Exhibit-4a), under its new marketing campaign
called REDvolution. Traditionally, the logotype improvements followed the same
improvements made on the Nestl symbol. The initial symbol was of the same text format of
Nestl. Nescaf has always being associated with a red mug. Now, the new symbol letters have a
smooth curvier finish. And the brand identity element which was present on the final letter E
of the word has changed into a shape which now depicts a mugs handle (Exhibit-4b shows the

Page 5 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

relationship between the new identity elements). Also, the extended line off the N across the
whole word has remained unchanged. Moreover, since coffee is a stimulating drink, the red
colour is perfect to describe this state of mind and red mug is also chosen to emphasize the
energy of the drink. But if one goes deeper into the psychology of color, it relates to persuasion
which is one of the most interesting aspects of marketing. Purchasing intent is greatly affected by
colors due to their effect on how a brand is perceived; colors influence how customers view the
personality of the brand in question. Red colour portrays excitement, being modern, daring,
spirited, and imaginative personality traits. Academic studies on colors and branding have shown
that its far more important for colors to support the personality you want to portray instead of
trying to align with stereotypical color associations (Chiotti, n.d.). As Nescaf have recently
announced a massive global brand campaign that targets a younger generation of coffee drinkers,
these elements are in sync with their target audience. Therefore, almost all commercials show a
young adult consumer holding a red mug with Nescaf symbol written in the vertical position,
enjoying a cup of coffee (Exhibit-4c). Likewise, in Pakistan Nestl brand has its very own
distinct jingle, which normally comes at the end of a commercial. The jingle acts as a hook
which aids in recalling, building awareness and consumer connection with the corporate image
of Nestl. This also reestablishes in the mind of the consumers that Nescaf is one of the brands
owned by Nestl. Consumers who buy other Nestl products can easily trust Nescaf to be a trust
worthy brand.

4.2 Brand Positioning


Previously the brand had positioned itself as an indulgence product by focusing on university
kids, music and building moments. Keeping in mind the strategic shift, the product is now being
positioned for everyone. The focus has shifted away from Nescafe being an indulgence product
towards Nescafe being an everyday product. The positioning of the product now focuses on
functionality rather than emotional appeals. The product is being targeted towards those who
consume tea as their first drink of the morning. The idea behind using a functional appeal is to
make the customer aware that coffee does a better job of waking you up rather than tea. This can
be seen in their new TVC in which they show people from different walks of lives and how
someone comes up to them and serves them Nescafe. The people in the ads belong to lower SEC
classes than what has previously been used. The ad demonstrates its functional benefit by show
casing the revitalization of your body or how refreshed you feel after youve been up all night by

Page 6 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

consuming Nescafe instead of tea in the morning. This is the point of differentiation that the
company is trying to build upon. If you have tea in the morning to wake yourself up then you are
doing the wrong thing. Coffee does a much better job of waking you up.

In order to strengthen this repositioning the brand has also focused on developing SKUs which
appeal to everyone. The price point of the 3 in 1 SKU was also reduced from Rs. 30 to 20 in
order to make it more accessible to the general public. While at the same time the packaging was
also changed to give it a look of being an everyday persons product. Another important thing
that changed with repositioning was that they introduced these small SKUS strips that they
started to place at Kiryana stores as well as corner shops to make it more accessible for the
public.

Internally as well the brand was shifted towards PPP (popularly positioned portfolio). In PPP you
tend to introduce smaller SKUs in order to make the product more affordable and relatable with
the masses. Previously the PPP mind set wasnt associated with coffee. It was attached with
brands such as Nestle Bunyad, Cerelac and Everyday. But now that has changed, its now being
repositioned towards the masses with a focus on coffee being the first cup of the day.

4.3 Brand Portfolio


Nescafe Pakistans coffee portfolio consists of 4 products, each with its unique value proposition.

Classic: Pakistans most popular coffee, made from traditional coffee beans which can be made
into variations of coffee drinks from simple black to mocha lattes. Available in multiple SKUs
ranging from small to commercial use.

Gold: A premium choice for coffee drinkers with a particular taste and appreciation of their
caffeine. Priced higher than the Classic, this product offers a richer coffee taste, distinguishable
by its packaging, smell, and overall coffee taste. Can be used for variations as well including
simple black to mocha lattes.

3-in-1: The main product in the companys arsenal to take on the tea industry through its coffee
sachets containing coffee, milk & sugar. The POD is convenience, allowing users to save time
making their favorite coffee and instead, simply adding water. Offered at a much lower price
than regular coffee, it allows for one time consumption with the goal to encourage the local
masses to try coffee whilst staying within a comfortable spending limit.

Page 7 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Dolce Gusto: The premium coffee experience, only available in 15 countries. A partnership
between Nescafe and KRUPS to give coffee drinkers a mix of multi-beverage system with coffee
capsules.

5 Integrated Marketing Communication Strategy


Role of a communication program is to foster consumers awareness of the product, knowledge
about the features, interest in purchasing, likelihood of trying the product and/or purchasing it.
Nescaf as compared in other countries has a minute footprint in Pakistan. Nescafs marketing
budgets are quite limited. This is the reason we hardly see Nescafs advertising campaigns in
comparison with other Nestl products. Nescaf prefers focusing on above the line (ATL)
marketing. Mass media is used to promote brands and reach out to the target consumers. These
include conventional media as we know it, television, radio advertising, print and as well as the
internet. At present, Nescafs want to break into the loyalist tea consumers segment by
communicating more functional benefits of coffee and by eradicating the myths or stigma
attached with consuming coffee. An average Pakistani drinks 400 cups of tea year as compared
to 0.6 cups of coffee. Even if Nescaf successfully penetrates 0.025% of tea segment market
share, the sales volume of Nescaf will double. Above mentioned figures clearly show Nescaf is
battling a giant.

Back in year 2014, Nescaf launched a global brand strategy that aimed to appeal to a whole new
generation of coffee drinkers. This new marketing campaign was named REDvolution with
brand slogan It all starts with a Nescaf (Exhibit-5 shows images from the campaign). This
campaign is taken charge by Nestls Swiss head office to create a unified global identity for the
brand, breaking the long standing practice of allowing local businesses to determine marketing.
The companys plan is to reboot the 79-year-old brand to appeal to younger consumers who are
just starting to drink coffee. The unified approach to packaging design, communication and
digital strategy for Nescaf, will feature several key design elements developed with new,
younger consumers in mind. Nescaf believes that the brands bullseye customers are mostly
present of social media platforms. The company has moved most of its focus to digital media
platforms, which Nescaf believes will start conversations with a new wave of consumers.
Nescaf became the first and the biggest brand to transfer its website to Tumblrs social-friendly
platform. Using Tumblr as its primary platform for both communications and e-commerce,

Page 8 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Nescaf can collate positive mentions of its brand, push them out on other social networks (like
Facebook, Instagram etc.), and host content uploaded by the Tumblr community. The new
website serves as a prime source for co-creation and connection. On the social stage, Nescaf is
turning the spotlight from the product to people with campaigns that invite digitally saturated
consumers to indulge in something they crave as much as their coffee: real connections
(Interbrand, n.d.). On digital, Nescaf Pakistan now boasts the biggest Facebook fan base
amongst all Nestl Pakistan brands and is also part of the top three global Nescaf pages in terms
of engagement rates. Nescaf has also expanded its digital presence to Twitter and Instagram.
One of the key digital activations have been the Nescaf Basement talent hunt. Inspiring stories
of different Nescaf Basement band members and sneak peeks have generated a lot of
conversations amongst the younger consumer base. However, this year top management at
Nestl has decided to discontinue with Nescaf Basement, which was costing the company a lot
of money and failing to generate expected increase in sales. The company is now focusing on
utilizing its marketing budget in native advertising, creating engaging content online which can
go viral. Moreover, Nescafs Facebook page regularly posts videos of fitness experts and
celebrities such as Sajal Ali, Anoushey Ashraf's and Mustafa Totana holding a red Nescaf mug
and virtually talking with the consumers. These videos are in the form of Did you Know Facts
that tell the consumers about the functional and health benefits of coffee and how it can help
them in giving a boost to kick start their day.

Nescaf also used conventional media such as television and radio. Under the new campaign
Nescaf has launched 3 notable advisements, in which coffee is highlighted to better
functionality and performance. One particular advertisement shows a young adult getting ready
to go to his office and Nescaf coffee provides him with a much needed boost to help in getting
through a heavy workload routine. Another advertisement depicts how convenient it is to make
coffee in comparison to tea. And in the recent advertisement, we see Nescaf taking tea drinkers
head on and labelling them as old-fashioned. This advertisement has brought a lot of heat to
Nescaf brand via social media, where tea enthusiast were not amused with the claim. Rather
than taking a defensive stance, Nescaf with backing of its top management have gone on to the
offensive by engaging these consumers into conversations online and educating them about the
functional benefits of coffee through scientific proven research. Likewise, Nescaf is using
health experts from famous nationwide morning talk shows, to further emphasize on functional

Page 9 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

benefits of coffee on human health. Furthermore, Nescaf took advantage of the ongoing
Pakistan Super League (PSL), a seasonal cricketing event, to communicate message of the new
marketing campaign. Besides, Nescaf have also partnered with Khalid Malik, a former radio
jockey, famous for his morning radio show to endorse Nescaf coffee as the first cup of the day.
The underlying element which has remained consistent throughout these communication
channels is the red Nescaf mug and the message that coffee helps in kick starting your day in
the right direction.

The new Nescaf 3in1 sachet is the most heavily advertised product from the portfolio. This
product priced at PKR.20 plays the role of induction SKU for new users to coffee, which are the
target segment for the company. Taste and method of preparation are a key barrier to coffee
usage for most coffee trialists. The product taste profile has been tailored to suit the Pakistani
palate. The 3in1 sachet has a higher coco powder content to make new consumers comfortable
with the taste of Nescaf coffee. The packaging of the new 3in1 sachet has been changed from
long vertical shape to a square shape, which Nestl refers to as PPP (popularly positioned
portfolio). Usually PPP product are value for money sachets. These new 3in1 sachet is placed
close or near by the shopping counters, along with other Nestl product to encourage consumers
to try out the product. For Nescaf classic, premium consumer promotion, competitive pricing
and strong focus on gaining in-store share of shelf are more focused on. The RED Mug promo on
100 grams, helped Nestl differentiate its offering on shelf, gain consumers from parallel imports
and aided in upgrading existing 50 grams users.

6 Proposed Strategy and Rationale


6.1 Theory
A general model of the steps that a consumer go through is called hierarchy-of-effects model
(Exhibit-6). Nestl is stuck in the cognitive stage, consumers are aware of Nescaf coffee, as it is
a global brand owned by Nestl. Now focus should be towards conveying information and
benefits about the product. Once Nescaf is successful in doing this, consumers will move into
the affective stage where they will have the Nescaf brand in their list of considerations which
will help in generating trial and repeat purchase for the product. Furthermore, if we look at the
Keller's Brand Equity Model (Exhibit-7), tea comfortably sits at the resonance stage. This stage
is achieved when consumers feel a psychological link with the product. As tea is being consumed

Page 10 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

for decades in Pakistani households, it has built behavioral loyalty (repeat purchases) and a sense
of community for people consuming it with friends and family at various gathering and
occasions. As for Nescaf brand in Pakistan is at the brand meaning stage. At this stage, goal of
the company is to identify and communicate what brand stands for. It is divided into 2 parts
performance and imagery. At present Nescaf should be focused on promoting how well the
product meets consumers needs as compared to tea.

6.2 Strategy
Nescafes value proposition is of coffees functionality to help the consumer wake up in the
morning. Our proposed strategy emphasizes promoting coffees ability to keep one active.
Studies have shown that traditional coffee & tea drinkers, both exhibited similar signs of
alertness for their preferred beverage, however, coffee drinkers had a difficult time sleeping
compared to tea drinkers. Currently, Nescafe has repositioned itself, with a focus on the masses
and taking on tea directly. The idea is to make Nescafe the first cup of the day rather than tea.
Keeping this in mind, we feel that the future strategy of the brand should help it build on its
existing narrative.

We propose that the brand continue to build on its existing functional strategy by showcasing the
potential benefits of having coffee versus tea. The idea is to encourage users to substitute tea
with coffee, with Nescafe being the first choice. Marketing strategy will promote a message
which revolves around giving a much higher boost to consumers at the end of their day, along
with the existing message of waking up in the morning. To ensure this strategy is successful,
Nescafe must ensure that the composition of the product is not altered so much that it
significantly impacts the functional message of alertness/ activeness, as well as incur negative
feedback from its existing consumers of diluting the taste of the product. Once the composition
of the product can ensure functionality, the IMC strategy must revolve around TVs, trade
promotions and the companys digital marketing.

Trade Promotions:

The biggest hurdle for converting tea drinkers to coffee drinkers (share of throat) is of
convincing consumers to try their first cup. Studies have shown that sampling can create
credibility for a products quality, which in this case, can help boost Nescafes message of being

Page 11 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

more functional, in terms of alertness/ activeness. Nescafes biggest hurdle in this context
would be whether to give away these samples for free, or as a bundled product promotion. Both
options present their separate concerns; in the former the consumption of inventory without sales
can lead to declining profits but this can be offset by the positive/ improved public image of the
Nescafes 3 in 1 sachet and promise of future new customers. The latter has the problem of first
finding a potential product which can be associated successfully with the Nescafe brand and
secondly promoting both products without diluting the image of both brands. To both questions,
we emphasize recognizing the benefits of successful trade promotions i.e. improved market
share. 2015 statistics show the Pakistan tea market size at 155,000 tons. If Nescafe were grab a
0.025% share of tea drinkers, it would double its current market consumption (current estimate:
400 tons). Hence the potential benefits significantly outweigh the cost of such trade promotions.

Digital Marketing

Pakistans tea consumers have a cultural myth surrounding coffee as being garam i.e. unhealthy
for ones health. The current digital marketing team must continue its efforts to de-bunk such
cultural myths in order to ensure that TVCs and trade promotions meet their intended objective
and do not suffer set-backs due to these cultural myths existing. Although these promotions tend
to be short lived and cultural myths take years (even decades) to overturn, the aim is to establish
a credibility of Nescafes product as being part of ones regular diet to ensure healthy living. We
must note 2 points here:

Cultural myths can only be overcome through societal/ cultural change (a shift in consumers
perception) which can only be achieved when consumers begin talking/ discussing these
cultural myths and exposing them.
Considering the majority of tea drinkers are loyal to certain brands, and the financial muscle
of some existing competitors may be overwhelmingly strong.

Nescafe must utilize its digital marketing efforts to reinforce as well as debunk competitors
attempts to negate Nescafes message of coffees functionality.

TVC:

A TVC which shows this exact functionality e.g. a lower middle class consumer, aged 24-45,
sitting late at night in their office with piles of projects due in the coming morning. After

Page 12 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

consuming a sachet of NesCafes 3-in-1 to complete his work, the consumer has sufficient
energy to not only complete the required projects, rather sufficient energy to drive home, make
breakfast for the entire family and be back in the office in time to give a presentation.

Exhibit-1 - Nescaf brand value growth history from Interbrand website (Website, 2016)

Exhibit-2a Person of Nescaf Coffee Consumers

Coffee Antagonists Fun loving, Fun loving


Exciting

Spirited, Cool,
Health Conscious
Youthful

Trendy, Brand Fashionable


Conscious

Page 13 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Exhibit-2b Person of Tea Consumers


Cheerful
Traditional
Habitual Drinkers

Followers
Go-Getters, Fun
Loving

Perceive coffee to
Dont Care have strong taste

Page 14 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Exhibit-3 Market Share of Tea Industry in Pakistan (Essays, n.d.)

Market Share 2015

1% 12%
1%
4%
54%
28%

Lipton Tapal Danedar


Tetley Brooke Bond Supreme
Vital Tea Others

Exhibit-4a Nescafs recent change in brand Symbol (Armin, n.d.)

Page 15 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Exhibit-4b Nescafs relationship between Brand Elements (Armin, n.d.)

Exhibit-4c Typical portrayal of Nescaf Coffee Consumer

Page 16 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Exhibit-5 REDvolution Marketing Campaign Images

Page 17 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

Exhibit-6 Hierarchy-of-Effects Model

Exhibit-7 Keller's Brand Equity Model

Page 18 of 18
17010011, 17010018 & 17010059
BRM
BRM_Project_Grp8.docx

References
Armin. (n.d.). Brand New. Retrieved from Under Consideration:
http://www.underconsideration.com/brandnew/archives/new_logo_and_global_
branding_for_nescaf_by_various.php
Chiotti, G. (n.d.). The Psychology of Color in Marketing and Branding. Retrieved from
Help Scout : https://www.helpscout.net/blog/psychology-of-color/
Essays, U. (n.d.). UK Essays. Retrieved from UK Essays:
https://www.ukessays.com/essays/marketing/tapal-and-the-tea-industry-in-
pakistan-marketing-essay.php
Interbrand. (n.d.). Interbrand Nescafe Report. Retrieved from Interbrand :
http://interbrand.com/best-brands/best-global-brands/2015/ranking/nescafe/
Valrie, A. (n.d.). HBS Nestle Case Agriculture. Retrieved from LMS:
https://lms.lums.edu.pk/access/content/group/932ff6f7-6884-4081-83ce-
8789e0935fc9/13.0.pdf
Website, I. (2016). Interbrand Nescafe. Retrieved from Interbrand:
http://interbrand.com/best-brands/best-global-brands/2016/ranking/nescafe/
Website, I. (n.d.). Interbrand Experiences. Retrieved from Interbrand:
http://interbrand.com/best-brands/best-global-brands/2016/sector-
overviews/refreshing-experiences-yield-growth-for-beverages/

Page 19 of 18

Potrebbero piacerti anche