Group 1

Abhishek Ghosh

Anamika Bharti

Archana Agrawal

Anisha Bihani

Ankit Ganatra

Alankar Chakraborty

Arijit Samanta

Alfia Tarannum
Background HISTORY

Nescaf is a brand of instant coffee

The name is a portmanteau of the words
"Nestl" and "caf"
Introduced in Switzerland on April 1,
1938 after being developed for seven
years by Max Morganthaler and
Vernon Chapman
1966 Nestl introduced a new brand in
the United States called Taster's Choice,
which supplanted Nescaf for many years
till 2003.
 Instant coffee had been
around since the 30s,
But was not a big seller in the
UK or the US
Most Americans preferring the
taste of ground coffee
US war soldiers drank coffee
during war when they came
back home they gradually
propagated the habit among
the fellow Americans.
Major advantages offered by Nescafe

Readily usable
Reasonable taste, color and smell
Ideal for money conscious and time conscious
busy housewives:-

As a conscientious, dutiful wife

As a loving mother
As a busy 8 AM 8 PM Executive(s)

Different sized containers

A very enterprising advertising publicity public
relations agency (M/s. XYZ), with head office in Boston
was hired to reinforce the already created positive
image in the six major cities of USA

Advertising program was aimed to illustrate, via

newspapers, hoardings, bill boards, point(s) of
purchase, radios, subliminal ads etc.
the uniqueness of this consumer
perishable product line(s)
SWOT
Strength
Instant nature
Value for money, price fixed and standard
Strong distribution channels
Readily usable ( hard physical labour not
required).
Quality
Good, hard-working professionals
(Nescafe, retailers)
Already positive image in
different parts of USA
Weakness
Aimed at middle class
and low-medium
income strata of busy
housewives

Wrong promotional
activity adopted
Opportunities
Market development.
Optimum time management for the
Time-stressed housewives.(potential
customers)
No major competitor till now
Approximately six lakh households in
sixty cities towns suburban areas
Threat
People mind-set of resistance to
change.

Substitutes
Tea- refreshing drink
Beer- hangout drink

Competition from Lyon

PREVALING
SCENARIO
IN 1960s
Economical
Europe being devastated by war, Nestle fell
short of resources, shifted to US
The US is by far the most heavily invested-into
country in the world, with foreign investments
measuring $2.4 trillion
By 1956, a majority of U.S. workers held
white-collar rather than blue-collar jobs
3,840 shopping malls in 1960
Economy was expanding up around 6 per cent
per year,
Brazil had excess coffee production
Social
American society had always been more
open and fluid than that of the nations in
most of the rest of the world

Increase in African Americans, Native

Americans, the white ethnic offspring of the
new immigration, and Latinos

70 million youth population.

enjoy coffee listening to rock n roll music

Influence of Hippie and Psychedelic culture

Technological
Post-war technological
boom in USA

New spray drying

process, which could be
used to create instant
coffee,

Political
Environmental
WHY ?
Study by Mason Haire of the University of California
1950
Two groups of US housewives were shown two
shopping lists and asked to guess the personality
of the shopper.
One group used 'lazy', 'poor planner' and 'bad
wife to describe the first list.
The other group had no such negative comments...

How were the lists different?

Only in one item.
On the first list was a jar of Nescaf,
on the second 1lb of ground coffee.

US citizens thought instant coffee was for lazy people

 Perception Attitude
Belief ( - or + ) ( - or + )
Behavior

Again it was seen housewives choosing

instant coffee were seen as busy, modern and
outgoing, whilst those preferring traditional
coffee were viewed as dull and traditional
(typically the housewives)

Price may also be a reason

for the switch
 When Nescafe came with the product it
created a perception that the women were
more time conscious rather than their family

Aggravated Guilt feeling by the ads

Rather than focusing on their lifestyle or

standard they focus more on convenience
 Same product was served to the family members
and to the pets
Change of Brand Name
Instant coffee was also called The Demon
Drink
 Self For Hippies and
actuali Psychedelics
zation ( to explore alternative
states of consciousness)
Self
esteem

Social needs

Safety/security

Physiological needs
For busy
housewives
Symptoms
Sales fell drastically
and went on falling

Instant coffee

Nescafe
Problem Formulation
Change in product quality, availability, price,
appearance etc.
Change in advertising or promotion and
publicity strategy.
Competitor may come with a better product.
Any health hazard detected in coffee.
Wrong interpretation of customer behavior
and need and wants.
Wrong STP
Problem Identification
Wrong interpretation of customer
behavior , need and wants
Change in advertising or promotion and
publicity strategy
More stress on time management rather
than family value
Major psychological problems
The U.S. Top 20 food companies enjoy a 76 % success rate
for their new product introductions;
*The "Bottom 20,000" U.S. food companies have an
11.6% success rate for new product introductions

*A major difference between Top

20 new product introductions and
Bottom 20,000 introductions is the
apparent lack of research and
strategic marketing done by the
Bottom 20,000.
Thank You