The presentation was a part of our IMC project , describing a proposed communication plan for Nescafe as a brand in India dated March 2014.
- 1. Instant coffee market is only Rs. 300 crores Penetration: Coffee – 15%; Tea – 96% Branded Coffee sector – Rs. 2000 crore. Instant Coffee sector, - Rs. 300 crore 90% of coffee consumption is by three states ofSouthern India. Market Share in terms of volumeNescafe – 51.9% to 47.9%Bru – 47.9% to 51.1%INDIANCOFFEEMARKETEXPORT MARKETMAIN STREAMCOFFEEDIFFERENTIATEDCOFFEEDOMESTICMARKETHOMECONSUMPTIONFILTERCOFFEEINSTANTCOFFEEOUT OF HOMECONSUMPTIONRESTAURANTS,TEA STALLS,CANTEENS ETC.COFFEE BARS/CAFES Role and success factors of coffee:- Image change towards a youthful and trendy beverage- Growth of coffee category in visibility, interest and popularity- India’s development as an emerging country with higher incomes- Increased urbanization In domestic consumption, 80% of coffee is consumed at home, out of which35% is filter coffee and 65% is instant coffee.
2. Nescafe has been a very salient brand but limited by the smallcategory size Owned by Swiss food processing unit Nestle Nescafe as a brand was launched in the 1930s Came into India in 1963 Revenue:Nestle India revenue in 2012 : 8.3 BillionNescafe : 13% contribution Nescafe faulted on its India strategy with the countrycontributing 1.5% to global sales specially during times whencoffee consumption is on the rise in IndiaCurrent tagline: “Switch on your mornings”“Switch on the best in you”TVC: Morning band TVC with Deepika , purab and ShankarEhsaan Loy reinventing the paparappa pa ra ra jingle Presenting sponsor for Koffee with KaranGoogle+: Valentine’s day campaign with Deepika on GoogleHangout asking her questions about her previous dates ,coffee dates and coffee specific questionsEvents: On going event sponsorships at college fests runningcampaigns around jingle creation. History that worked well for them: 1999: Taste that gets youstartedAs the company experts quote -“We basically focused on driving the mass market (in India), and we really ignored a little bit the emerging affluent segment” Distressed distributors, low returns on investment and no visibility on new launches Lack of innovation as Nestle’s biggest problem 3. Past CampaignsPast campaigns: Know your neighbour Using Karan Johar,Deepika Padukone, Vir Das and Purab KohliEffective insight: Fresh and well ideated campaign with well liked advertisements Led to volume jump though coupled with price increase Downside: Failed to stay in the mind of the consumers at the pointof purchasePositioning : Something Special in oureveryday moments 4. High engagement on Social MediaFacebook page: 1,52,26,512 likes with 2,80,142 peopletalking about it“So irresistible ““Switch on your mornings campaign” High engagement rate Presence of a lot of fake fans No emotional connect with the brand in terms ofengagement Lack of content that holds “Share value” Lack on campaigns infusing people to participate Spammy: Too many posts around “like it , hit it , tagyour friends” Contest : They asked users to share the link of theirjingle and tag friends with luck deciding the winner. 5. Contests on Social Media to engage with usersCurrent ContentOur target :• Targetting Influencers• Targetting people already talking about our product , related emotions 6. Bru a strong competitor Even though Nescafe was the first one to enter the instant coffee market and had been a market leader for decades, HUL’s Bru has grown ontobecome its single biggest competitor in the recent past. Tata Coffee, though a very late entrant in this market, is also making strides. Analysis of Nescafe’s biggest competitor – BRU Seen as strong alternative to filter coffee Adapted well to consumer lifestyles Created lifestyle associations by linking brand, category and consumer habits Strong presence in Southern India, where consumption of coffee is higher Coffee powder available in a lot of variants and price is marginally cheaper than Nescafe Influential television campaigns with Shahid Kapoor and Priyanka Chopra in the past. Current brand ambassadors are Imran Khan and Anushka Sharma. Bru has recently opened Bru World Café’s in Mumbai as an entry into coffee retailing.Brand Challenges Losing brand loyalty to Bru Gaining new potential customers Recall value Volume Growth Market share despite premium pricing in their segment Reviving the long lost glory of the BrandTarget Market Our TG comprises of teenagers and college goers (16-24 years), who have newlyacquired the taste of coffee and consume around 2 glasses of cold coffee each day. Adults i.e. Our already existing customers, the aim is to promote brand loyalty amongstthem. The avid coffee drinkers or coffee lovers. The office goers or the corporates who have less time in hand and work understressful environments . MBA students or the late nighters who stay up at odd hours in the night People who do not wish indulge in the time consuming process of making coffee andrely on easy options such as an instant mix. 7. Attract new instant coffee consumersThe NescafeMoments 8. Big Campaign Idea#NescafeMomentsGet stories from users on social forumsto talk about their coffee memories -how they won their first coffee date orhow they cracked an interview over acoffee conversation or how they bondedwith their better half over a good cup ofmorning coffee or how they bonded withtheir best friends over long gossipsessions with coffee. 9. Big Campaign Idea#NescafeMoments“Aditi was stuck on “we are just good friends”.School never gave us an opportunity to havea conversation in isolation .One day she missed her bus and we went tonearby Nescafe store to share a cup of coffeeand that was the beginning of a trail ofconversations .Its been decade that we’ve been together butthe memory of 9th September still remainsintact” 10. Big Campaign Idea#NescafeMoments“I was preparing for CAT withthree of my friends and we usedto spend nights solving mocks.We used to get up in the morningand rush to our IT hub for ourdaily jobs.The Nescafe dispenser at workwas the only thing that kept thesame moments of randomnessalive each morning.” 11. Nationwide EventNescafe Basement To promote young musical talent. Central theme of ‘My Nescafe Moments’ and ‘Nescafe Basement’. Auditions would take place in major metros (Delhi, Mumbai,Bangalore, Chennai, Kolkata) where we would pick 20 young andtalented students having passion for music. Auditions form would have a ‘My Musical Nescafe Moment’ sectionkeeping in mind our central theme. Top 20 people selected would bementored by Shankar-Ehsaan-Loy, keeping in mind their associationwith them. We plan to launch this show on Channel V to go with the youth-orientedimage of the show. Also, we plan potential tie-ups with a radio station to promote thebudding artists and the show. 12. Social Media – Leverage #NescafemomentsReward: Nescafe wants to make a day special for the best entriesthat we receive from “My Nescafe moments” The idea is to bring back the nostalgia in the form ofsomething tangible for someone you love. All of the entries received will later be compiled in the formof a coffee table book under the tag My Nescafe Memoriesthat would be sent across to the winners and chosencontributors from the Brand’s endFacebook:The stories collected from our influencers will be used to inviteentries across social forums.5 of the best entries of every daywould make it as pictures with the content on it for the nextday.Twitter: The twitter campaign will be similar to the Facebookone centered around #nescafemoments .Instagram: In the age of #instamoments we would inviteentries about #nescafememories via hashtags on Instagram ,the best selected pictures out of the hashtags will later findspace in that week’s Nescafe Basement . The show wouldhave a marquee of these pictures during the first and the last10 minutes. 13. AppendixCreative BriefWhy are we advertising?We are advertising to create recall value for our brand while making the purchase. The purpose is for the consumer to remember theemotion attached with our communication while buying coffee powder or taking a cup of coffee at home, work or elsewhere. Currently thebrand is suffering volume growth against its competitor Bru and with Tata coffee entering the league; their challenge is expected to increase.Our goal is to increase our Engagement and Brand Interaction SalesWho are we talking to (and what do we know about them)?We are talking to young coffee drinkers (teenagers and young adults) because this is more of a habitual thing and our brand objective is tocapture their taste buds at the earliest to ensure brand loyalty. Also we are talking to young people working in corporates who go for regularcoffee breaks. This segment is the right TG for instant coffee as they are packed with time and look for easy solutions in the morning.Traits visible that match our brand personality: Conversational in nature Look for variations in taste / products and advertising Cold coffee drinkers Get habitual of coffee over a period of time and look for cool hangout zones to share that cup of coffee Look for easy solutions A major chunk of our TG is shifting the trend towards working at night 14. AppendixCreative BriefWhat do we want them to think or do?Our purpose is create that nostalgia in the mind of the viewers and contributors to build on the campaign “My Nescafe Moments”.Main message is for a kirana store; Nescafe store; a Nescafe vending machine or us to sustain this emotion in the mind of the viewers whenthey go and make a purchase at a departmental store. The happiness associated with a coffee moment; the love or bond that we share witha friend, a lover or a family member remains to be our focus.The implicit purpose is for them to share their moment via Social Media Platforms and increase engagementWhat should the advertising say?The advertising needs to put forth the concept of the “My Nescafe Moments” campaign. It should focus on happy, emotional moments linkedwith a cup of coffee that people have experienced in real time. This linkage and the nostalgia associated with it should help people inexperiencing positive emotions when they have a Nescafe cup of coffee.Why should anyone believe it?The concept of this campaign is based on real life people sharing real life moments. People can connect in a much more effective mannerwhen they see people from similar walks of life talking about their happy moments. The connect with these advertisements would be morethan a celebrity endorsement as it would be more relatable.What is the desired tone and manner of the advertising?The desired tone and manner of the advertising will focus on appealing to the positive emotions of the target audience.and conversations about the brand.