Methodology

One company or a product of that company are taken to study and compare their brands. History and introduction details to be found to study about the company. SWOT analysis, marketing mix, product mix, product lines, and branding, packaging, labeling information of the company was taken. Then a survey both with the dealers and consumers was conducted to know which brand is more popular and why (of that company). For the graph and written work MS-Word and MS-Excel were used. Verbal Conclusion on why the brand and product is popular what are its strength and weakness.

Coffee
Coffee is a brewed beverage with a bitter flavor prepared from the roasted seeds of the coffee plant. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia, South Asia and Africa. Green (unroasted) coffee is one of the most traded agricultural commodities in the world. Coffee can have a stimulating effect on humans due to its caffeine content. It is one of the most-consumed beverages in the world. Wild coffee's energizing effect was likely first discovered in the northeast region of Ethiopia. Coffee cultivation first took place in southern Arabia; the earliest credible evidence of coffee drinking appears in the middle of the 15th century in the Sufi shrines of Yemen. From the Muslim world, coffee consumption and cultivation spread to India,to Italy, and on to the rest of Europe, Indonesia and the Americas.

Coffee berries, which contain the coffee seeds or "beans", are produced by several species of small evergreen bush of the genus Coffea. The two most commonly grown are the highly regarded Coffea arabica, and the "robusta" form of the hardier Coffea canephora. The latter is resistant to the devastating coffee leaf rust (Hemileia vastatrix). Once ripe, coffee berries are picked, processed, and dried. The seeds are then roasted to varying degrees, depending on the desired flavor. They are then ground and brewed to create coffee. Coffee can be prepared and presented in a variety of ways.

INTRODUCTION OF NESTLE

Condensed Milk Company, Type - Socit Anonyme Traded as Industry: Founded: SIX: NESN Food processing Switzerland, Vevey (1866)

Founder(s) : Henri Nestl Headquarters:Vevey, Switzerland Area served: Worldwide Key people : Peter Brabeck-Letmathe (Chairman), Paul Bulcke (CEO) Products : Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods (list... Revenue : 69.6 billion (2011) Operating income : 10.4 billion (2011) Profit : CHF 34.23 billion (2010) Total assets : CHF 111.64 billion (end 2010) Employees : 328,000 (2012) Website www.nestle.com

HISTORY OF NESTLE
Nestl S.A: is one of the largest food and nutrition companies in the world, founded and headquartered in Vevey, Switzerland. Nestl originated in a 1905 merger of the Anglo-Swiss Milk Company, which was established in 1866 by brothers George Page and Charles Page, and the Farine Lacte Henri Nestl Company, which was founded in 1866 by Henri Nestl. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 people.

EARNINGS

In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion. Research and development investment was CHF 2.02 billion. Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from baby milks. Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world.

Products
Nestl has some 8,000 brands, with a wide range of products across a number of markets, including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated foods, and pet food. Nestl's best known brands include: 1. Nescaf 2. Ice Mountain 3. Hagen-Dazs 4. Vittel 5. Nesquik 6. Maggi 7. KitKat 8. Lion Bar 9. Quality Street 10. Perrier 11. Smarties

Product profile of Nescaf

Nescaf is a brand of instant coffee made by Nestl. It comes in the form of many different products. The name is a portmanteau of the words "Nestl" and "caf Nestl's flagship powdered coffee product was introduced in Switzerland on April 1, 1938 after being developed for seven years by Max Morgenthaler and Vernon Chapman. The rich taste of our favourite coffee is reflected in its rich history. The beginnings of NESCAF can be traced all the way back to 1930, when the Brazilian government first approached Nestl. Coffee specialist, Max Morgenthaler, and his team set out to find a way of producing a quality cup of coffee that could be made simply by adding water, yet would retain the coffees natural flavour. After seven long years of research in their Swiss laboratories, they found the answer.
Quality guaranteed since 1938!

The new product was named NESCAF a combination of the Nes-root of Nestl and the word caf. NESCAF was first introduced in Switzerland, on April 1st, 1938. For the first half of the next decade, however, World War II hindered its success in Europe. NESCAF was soon exported to France, Great Britain and the USA. American forces played a key role in re-launching NESCAF in Europe by virtue of the fact that it was included in their food rations. Its popularity grew rapidly through the rest of the decade. By the 1950s, coffee had become the beverage of choice for teenagers, who were flocking to coffee-houses to

hear the new rock n roll music. In 1965 NESCAF continued to bring you the worlds best cup of coffee by introducing freeze-dried soluble coffee with the launch of Gold Blend. In 1994 the full aroma process was invented to make the unique quality and character of NESCAF even better.Today, our NESCAF coffees are available to suit all tastes and in a wide range of packaging. NESCAF now produces many different types.

MARKETING MIX
Product mix
NESCAF coffees NESCAF Classic The world's favorite coffee! You will find it in just about every country all around the globe.

NESCAF Gold Range The premium choice from NESCAF for your special cup of coffee every day. There are three different variations: - Gold - Gold Mild - Gold Decaf/Decaff

NESCAF Espresso Short, dark and intense. NESCAF Espresso is made from a blend of Arabica beans, fully roasted for a dark and intense flavour, to bring you the authentic Italian espresso experience with a fine crema.

NESCAF Premium Range NESCAF Alta Rica is a special blend of exclusive Latin American Arabicas chosen for their full flavour, and dark roasted to develop the bold, full-bodied taste. NESCAF Cap Colombie is made exclusively from Colombian Arabica beans, chosen for their aromatic tones and light roasted to retain their aroma while developing the smooth flavour. NESCAF Kenjara - Kenyan and Costa Rican Arabica coffee beans, chosen for their full depth of refreshing flavours, are gently roasted to develop a coffee alive with finesse.

NESCAF Decaf/Decaff NESCAF DECAFDecaff gives you all the great taste and rich aroma you'd expect from NESCAF but without the caffeine.

NESCAF Specialities range (Cappuccino, Latte Macchiatos) Deliciously frothy and creamy tasting! Why not treat yourself to the smooth, creamy and rich coffee flavour of NESCAF Cappuccino or the milky froth of NESCAF Latte Macchiato. Just add water and enjoy! Enjoy also different flavours such as Vanilla, Hazelnut or Caramel Cappuccino.

NESCAF Frapp
Refreshing on hot summer days, or whenever you fancy a cold drink with an interesting twist. Simply stir in cold milk, add some ice and enjoy the taste of NESCAF Frapp for a unique coffee experience.

NESCAF 3in1 Enjoy the perfect mix of coffee, milk or creamer and sugar in an easy way! Just add water.

NESCAF Dolce Gusto NESCAF Dolce Gusto available in 15 countries. NESCAF and KRUPS have joined forces and launched NESCAF Dolce Gusto, a unique, multi-beverage system combining a stylish high pressure machine with smart coffee capsules delivering high quality beverages from Espresso to Cappuccino and Latte Macchiato.

NESCAF coffee mate 3 in 1- 50g, 100g, 200g NESCAF Blend 43 - 50g, 100g, 150g, 250g, 300g, 500g, 1kg NESCAF Espresso - 50g, 150g, 250g, 300g N ESCAF Cafe Menu Frothy Coffee - Box of 10 sachets (Caramel & Vanilla, Mocha & Latte, Cappuccino, Hazelnut & Cinnamon) NESCAF Cafe Menu Iced Frappe - Box of 10 sachets (Latte, Mocha, Caramel)

Nescafe instant coffee classic Best Product: instant coffee Nescafe has a wide range of products (Espresso, Cappuccino, frappe etc.) Nescafe launched a new product -Nescafe 3in1 which is a blend of coffee, dairy creamer & sugar.

Promotion mix
Promotion management: for Promotion management Nescafe has different brand managers for there different product at their head office in India and they are busy in bringing up new ideas , Products, new Promotional technique for there respective brands also Bringing some changes in Taste Design Features Quality packing Elements of promotion mix used by Nestl. - Advertising - Personal Selling - Sales-Promotion - Publicity Nescafe Promotion Strategy: It uses above-the-line promotion as well as below the line Above the line promotion are the promotional activities carried out through mass media. Nescafe does it promotion thorough advertising campaigns like television, newspapers, Internet, pubic relation activity etc. Below the line promotion refers to non-media communication. Example: sales promotion, point of display etc.
ADVERTISING: ADVERTISING Eye catch advertisements. Bill boards.

TV adds. Posters. Use Every medium which convey their product massage.

Personal Selling: Personal Selling There is no personal-selling used in case of Nescafe because The product is of low unit value. They do not have their own chain of retail stores. Interviews, etc., with people and tell them about the high quality of Nescafe. If any laboratory, doctor, nutritionist, or any organization wants to test the product, they are always most welcome, because they know very well about the best quality of their products. Journalists are also welcomed to see such tests. In this way, Nescafe is publicized.

PRICE MIX
Nescafe has moved from cost based pricing to value based pricing. Due to its R&D, product innovations and from its people Nescafe adapts competitive advantage Pricing strategy used in Dubai Nescafe 200 g 30 dhs Nescafe 50 g 9 dhs Nescaf gold 200 g 40 dhs Nescafe coffee mate 400 g 17 dhS

Place mix
Nescafe is available in all small retails shops and supermarkets outlets. Its the same distribution channel they follow as in worldwide. Nescafe target teenagers and elderly people - Through vending machines in colleges, offices, departmental stores and restaurants. - Available in all kinds of markets, grocery shops, departmental stores. Place mix of Nescaf

Packaging
Packaging protects food products from spoilage and keeps it safe, all the way from the manufacturing stage right to storage, distribution and consumption. Nestle is committed to contributing to environmental sustainability and improve the packaging of the product. Nescafe is committed to continuously improving the environmental performance by packaging. Nescafe objective into develop safe and wholesome food packaged foods using the most appropriate and efficient material available and at the same time satisfying consumer requirement and expectations.

The time spent by a customer for picking up a product from a retail outlet is a few seconds; therefore a package should appeal to a customer with in such a small interval of time. In this, both packaging & labeling play an important role in attracting customers both visually & psychologically. For NESCAFE: NESCAFE was initially recognized by its COFFEE MUG WITH BROWN COLOUR. Many competitors have tried to sell their lower quality products by copying the packaging. Due to increasing competition , NESCAFE is available in small sachets comes in different sizes.

LABELLING
Consumers are becoming increasingly health conscious. So it is essential to display the contents of every product. Every packet of NESCAFE has information about the ingredients used, nutrition facts, mailing & emailing addresses asking for feedback, phone number, packaging date etc. All this along with the brand name and directions are printed in Arabic too.

Consumer psyche and NESCAFE

NESCAFE is consumed by people of all ages, from the rich to the

poor, living In cities & in villages. While some have it for breakfast, for others it is a complete wholesome Meal. For some it's the best SUBSTITUE for chai While for some it's a way of getting charged whenever they are low on energy.

BRANDING AND MARKETING

Nescaf is a brand within Nestl. Nescaf can be traced back to the 1930s. In the US, the Nescaf name was used on its products up until the 1960s, Later, Nestl (owners of the Nescaf brand) introduced a new brand in the United States called Taster's Choice, which supplanted Nescaf for many years. In the United Kingdom, a television advertisement campaign starring Anthony Head and Sharon Maughan ran in 12 instalments between 1987 and 1993. The first 11 episodes were released as a promotional compilation video called Love Over Gold in 1993. A novelisation of the same name written by Susan Moody (under the pseudonym Susannah James) was released in the same year. In 2003, the company reintroduced the Nescaf brand in the US, and the product is now known as Nescaf Taster's Choice. It is sold in US supermarkets such as Safeway in both glass and plastic packaging. While the Nescaf brand was created for soluble coffee, it has subsequently been used as an umbrella brand on a number of instant coffee products, including, in the UK, Gold Blend and Blend 37 freezedried coffees. In 2006, Nescaf launched the new coffee machine system "Dolce Gusto" ("sweet taste" in Italian). The system allows consumers to make various styles of coffees themselves (Cappuccino, Latte Macchiato, Espresso, Lungo, etc.). Additionally, hot chocolate and cold drinks can be prepared with the machine. The machines are now sold in more than 15 countries worldwide. Unlike other Nescaf products, most Dolce Gusto beverages use roasted and ground coffee, instead of instant coffee. Other marketing activity included Experiential Marketing/Relationship Marketing, which led Nescaf to become the headline sponsor of Good

Food show 2008 at Birmingham NEC as part of their campaign to drive awareness of the increased Nescaf collection. 95% of consumers at this popular event rated the Nescaf Collection stand the best at the show. Nescaf used advanced 3D technology to engage their consumers, led by id Experiential. In the UK in August 2009, Nescaf unveiled a 43m ad campaign for Nescaf, focusing on the purity of its coffee and featuring the strapline "Coffee at its brightest".

SWOT ANALYSIS
Strengths
Broad geographic coverage Nestl is the leading player in hot drinks in every regional market, except North America (in which it ranked sixth in 2007), insulating it against downturns in particular markets. Global leader in instant coffee the company has a clear global lead in the important coffee sector, which is growing significantly in emerging markets, accounting for 21% of global value in 2007. World number one in other hot drinks Nestl's portfolio of chocolate and malt milk products have established it as the leading player in global other hot drinks, in which it held a 23% share in 2007. Strong brand portfolio the company's hot drinks portfolio includes a number of high-recognition brands supported by considerable marketing and research and development resources, including Nescaf, Nesquik and milo.

High levels of research and development expenditure Nestl's high levels of investment in research and development offer significant opportunities to develop its operations beyond the Nestl Nutrition division, including hot drinks. Solid financial base Nestl has a number of cost-savings programmes (notably GLOBE) in place and as a result, has been able to place itself in a position where it is able to afford sizeable investment in brand development. Capacity to pass on costs Nestl's size and marketing power enable it to pass on a significant proportion of the rising costs resulting from increasing coffee and cocoa prices to retailers and consumers. Moreover, the economies of scale and synergies available to the company increase its capacity to make internal cost savings to offset the remainder of the increases.

Weaknesses
Reliance on mass market the mass-market positioning of Nestl's core hot drinks brand, Nescaf, presents significant difficulties in terms of tapping into the growing demand for premium coffee products. Limited presence in tea Nestl has developed only a minimal presence in tea, a sector which is benefiting notably from the rise in consumer health-consciousness and would therefore seem to fit with the company's efforts to reposition itself as a health-orientated manufacturer. Increasing bias towards low-margin products the relatively strong growth registered by emerging markets, where the company is largely represented by lower margin brands, is negatively impacting Nestl's beverages' operating margin. Meanwhile, higher margin Western European markets are being hit by challenging trading conditions. Bias towards caffeine-based products Nestl's hot drinks portfolio is biased towards products containing caffeine, a substance which has gained a negative image amongst many health-conscious consumers.

Opportunities Strong growth forecast in Asia-Pacific Euromonitor International forecasts that Asia-Pacific will be the fastest growing market for hot drinks over the 2007-2012 period. As Nestl's largest regional market, Asia-Pacific therefore presents significant opportunities for the company in spite of poor conditions in major Western European markets. The premium trend while the mass-market positioning of Nescaf is an obstacle, the growing demand for premium coffee products is

creating opportunities for the company to generate growth in mature markets through the development of brands and extensions, such as Nespresso and Nescaf Dolce Gusto. The health trend While coffee has not received the positive healthrelated publicity of tea, its image became less resolutely unhealthy in recent years, with suggestions that it can help to prevent various conditions, including Parkinson's disease. Moreover, the company's repositioning and substantial research and development infrastructure place it in a strong position to develop health-orientated new products Ethical consumerism fair-trade products are growing strongly in hot drinks markets such as the UK, offering a potentially important way to counter maturity in developed regions. Cross-branding Nestl's diversified packaged food and beverage portfolio offers it the opportunity to develop brands from other categories in hot drinks. Notably, it could further develop its confectionery brands in other hot drinks along the lines of existing products such as Aero Hot Chocolate.

Threats Inactive prospects in developed markets market maturity and aggressive competition amongst retailers are set to constrain hot drinks growth severely in major developed markets during the forecast period. Coffee machine competition Nestl's efforts to attract younger consumers and tap into the growing demand for premium coffee in developed markets with the introduction of the Nespresso and Nescaf Dolce Gusto coffee systems could come under threat from the

development of rival cheaper models. Rising costs increasing transport and raw material costs, mainly relating to rising bean, oil and packaging prices, are placing significant pressure on margins in the company's beverage operations. Competition from beyond hot drinks the expansion and diversification of soft drinks, which are effectively targeting trends towards health and convenience, pose a notable threat to Nestl's hot drinks products.

MARKETING STRATEGIES
Nescafe FMCG giants want to be a preferred client. Strike a balance between tapping into local knowledge of markets and disseminating global practices. Communication efforts are directed effectively and with maximum return on investment. To work with the limited number of agencies so that they really know the business. Encourage its agencies and employees by making changes in remuneration. Nescafe, even in the past, resorted to low-key market penetration strategies.

New product introduced by Nescaf

- Perfect combination Nescafe 3 in 1 Each single serve sachet has the right balance of coffee, whitener and sugar so that u get a creamy and sweet tasting coffee every time. Aroma of this newly introduced coffee is very comforting and intense.

SAMPLE OF CONSUMER QUESTIONNAIRE 1) Do you drink coffee? o Yes o No 2) Which edible product amongst these do you prefer /use ? o Nescafe o Davidoff Caf o Starbucks instant coffee 3) For how much time are you using this product? o o o o 1 Year >1 Year 4 Years > 4 Year

4) Would you choose another product if given an option? o Yes o No o Not Sure 5) How Satisfied are you with your Product > o Very Satisfied o Moderately satisfied o Unsatisfied 6) How did you become aware of this product ? o Word of Mouth o Advertisements

o Celebrity brand ambassador

Choice of products by surveyed respondents ( CONSUMER )

Product Preferred

nescafe davidoff starbucks

usage of the product Graph

1 year > 1 year 4 years >4year

Promotional tool Graph

Word of Mouth advertisements celebrity brand ambasador

Satisfaction Graph

Very Satisfied moderately satisfied unsatisfied

how many drink coffee Graph

Yes No

SAMPLE OF DEALER QUESTIONNAIRE 1) Do u sell nestle products? o Yes o No 2) Which product under the Nescaf product line sold most? o o o o Nescafe red mug Nescafe gold Nescafe 3 in 1 Nescafe frappe

3) What is the estimated sales (in nos) of Nescaf products (per month) ? o o o o <20 20-80 80-120 >120

4) Which one you think is the best ? o Davidoff Caf o Starbucks instant coffee o Nescaf 5) Which age group people buy this products the most ? o Teenagers o Middle age o Elderly

Choice of products by surveyed respondents (dealer)

sale of nestle products

yes no

nescafe's most sold products

nescafe red mug nescafe gold nescafe 3 in 1 nescafe frappe

Estimated sales graph

<20 20-80 80-120 >120

best product

davidoff starbucks nescafe

preference of age group

teenagers middle age old age