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MASTER BLEND

- TASTE THAT MAKES IT


HAPPEN

Presented By
Ruben R Nair

CONTENTS
Introduction
Mission & Vision
Product Profile
Consumption Trend In India
New Product Idea and Market opportunity
Coffee basics
Marketing Mix
Consumption and Attitude of Indian Coffee Consumers
Potential Opportunities For Growth
Recommendation & Outlook

INTRODUCTION TO
MASTER BLEND
- TASTE THAT MAKES IT
HAPPEN

MISSION
Enriching the coffee with aromas, taste & the entire
experience of enjoying coffee & guarantying consistent &
high quality special coffee products

VISION
Through our professional skills & clarity of purpose &
values, we aim to become the Number One Coffee
Company in India.

CONSUMPTION TREND
IN INDIA
Coffee consumption has shown an annual average growth of 2.14%
between 1951-2008.
The domestic market has grown from about 18,400 tonnes to about
70,000 tonnes during 2008.
In India coffee consumption is dominated in southern India including
states Tamil Nadu, Karnataka, Andhra Pradesh.
Coffee consumption in India is an urban phenomenon with an urban and
rural divide of 71% and 29%

Coffee Consumption by type and per capita consumption (All India)


Year

Coffee Consumption(MT)

Per Capita
Consumption(
Kg)

Arabica

Robusta

Total

1951

14857

3526

18383

0.051

1961

17293

16580

33873

0.077

1971

20387

17517

37904

0.069

1981

28586

22210

50796

0.074

1991

37500

17500

55000

0.065

2001*

34000

30000

64000

0.062

2002*

34000

34000

68000

0.066

Consumption - Volume and growth rate by states

Period

Tamil
Nadu

Karnata
Andhra South
Kerala
ka
Pradesh India

NonAll India
South

Mean
(MT)

197480

19344

13614

3106

3458

39522

3277

42799

198190

26308

14982

5470

5630

52389

3145

55534

199100

24753

15282

3415

4670

48119

3527

51646

197403

24040

15025

4602

5283

48951

3506

52456

Growth
Rate
(%)

197480

3.40

8.84

27.41

0.14

6.41

-3.17

5.54

198190

-0.25

1.41

1.58

9.24

1.37

-1.94

1.16

1991-

CONSUMPTION AND ATTITUDE


OF INDIAN COFFEE CONSUMERS
Coffee consumption dips from 11% at home to 6% outside.
Penetration (Beverage consumed in the past 12 months) of coffee at 59% is
low compared to that of tea.
Penetration of filter coffee is highest in South India, But In the Rural areas
(South India) instant coffee has a higher level of penetration than filter coffee.
Coffee is consumed as a first cup only by 23% of coffee drinkers even in the
traditional market of the South.
Yesterday's consumption is the highest among the
15-24 and 35-44 age group.

ATTITUDES TO COFFEE
Coffee at home is significantly different to coffee outside.
Coffee from vending machines rated significantly more
satisfactory in the North as compared to the East or the West.
Barriers to coffee are its bitter taste, inconsistent taste outside &
high price.
Less knowledge about coffee.
Attitudes differ significantly across regions in India.

POTENTIAL
OPPORTUNITIES FOR
GROWTH
Filter Coffee in the North.
Cold Coffee in North.
Occasional Consumers.
Rural Areas in South.

PRODUCT PROFILE

MASCOT

NEW PRODUCT IDEA


&
MARKET OPPORTUNITY

COFFEE BASICS
Most Popular Drink.
Most Consumed Drink After Water.
Caffeine's Sensory Pleasure & Richness Of The Aroma.
Gives A Drinker An Uplift.
Coffee Is Produced From A Small Red Fruits Seeds.
A Complex Process Of Converting A Seed Into The Liquid Beverage.

COFFEE PRODUCTION IN
INDIA
6th Largest Producing 4% Of The Total World Production.
1,70,000 Coffee Farms & 9,00,000 Acres Of Land Having The
Coffee Trees.
90% Of The Production Comes From The Smaller Growers.
Karnataka.
Kerala.
Tamil Nadu.

COFFEE BOARD OF
INDIA
The Coffee Board Of India Consists
A Chairman.
33 Other Members. (Growers,consumers,traders)
All Members Are Appointed By The Central Govt.
Representing Different Interests In The Board
Until 1992-93 Marketing Looked After By The Board

After The Liberalization


1992-93 Introduction Of Isq- (Internal Sale Quota) Allowing
The Growers To Sell 30% Their Production Directly To The
Consumers.
1993-94 Fsq- (Free Sales Quota) Now Allowing 50% To Be
Sold Directly To The Consumers.
1994-95 Further Liberalization For The Smaller
Producers Allowing 100% & 70% To The Bigger
Growers.

IDEA GENERATION
The Coffee Culture In India.
People From All Cultures, age, & demographic Drink Coffee.
Major Inputs In The Metros By Barista, C.C.D In Revolutioning
The Dimension Of Coffee Drinking.
As They Say That The Chai Is Out And The Kafi Is In
Nestle Nescafe & Hind. Uni. Lever Bru ,are The Major
Players In The Market Today.

MARKETING MIX
OF
MASTER BLEND

PRODUCT

PLACE/DISTRIBUTION

PRICE

PROMOTION

ACTIVITES

1st MONTH

2ND AND 3RD


MONTH

4TH MONTH

Fixed cost for Television &


Press advertisement

16.5 lakhs

16.5 lakhs

16.5 lakhs

2 lakhs

2 lakhs

2 lakhs

3.5 lakhs

2 lakhs

1.5 lakhs

Hoardings & Billboards

8 lakhs

8 lakhs

8 lakhs

Ads on Sony, Star Plus &


Zee TV from Monday to
Saturday. Between 7.30
pm to 11.30pm

Two 30 sec ads &


four 15 second ads
Daily

Full page color


advertisement in
magazines & Filmfare
A3 size color
advertisement in TOI,
Hindustan Times &
Navbharat Times

Two 30 sec ads &


four 15 second ads
Daily

Five 10 sec ads


Five 10 sec ads
during 2 pm to 6 pm during 2 pm to 6
- Daily
pm - Daily

Five 10 second
ads Daily

Three 15 sec
ads during 2 pm
to 6 pm Daily

SWOT
OF
MASTER BLEND

STRENGTH
Unique Blend.

Competitive Pricing.
Easy To Prepare & Easy To Use

WEAKNESS
Majority Of People In India Are Tea-drinkers.
Who Drink Coffee Are Loyal To The Brands They Drink.
Investment Into Promoting The Coffee.

OPPORTUNITIES
Convert The Tea-drinkers To Coffee Drinkers.

The Quality Of Both The Beans Are There Hence Its More
To Attract And Change The Brand Preference.

THREATS
Coffee Products Face A Stiff Competition From Tea.

Low Profit Margin Due To Recession.

Threat From New Entrents.

CONCLUSION
Development in non-traditional markets .
The Retail Space: outlets and distribution .
Product forms .
Consumer education.
Focus on the youth .
Consider competition from tea & cold drinks.

THANK YOU