INTRODUCING COFFEE

CULTURE IN BANGLADESH:

THE

WAY

TEAM OFFLINE
Fableeha Bushra Choudhury RH19
Rubyat Tasfia Rahman RH29
Nishadul Haque Nihal ZR31
Aanisha Mahmood RH59

Mother Company

1994
Factory
located in

Started its journey

in Bangladesh

GAZIPUR

1650

People employed
directly and indirectly

Bangladesh has never been kind to

the coffee industry as far as
popularity or sales are concerned

Since the British rule, the country

has been predominated by the
taste of tea as the warm beverage
required for many during
breakfast, with the snacks or even
as the beverage for socialization

The real taste of coffee is rather appalling

- Sanjeeda Nusrat, Brand Manager, Nescafe

2. industry and
competitor analysis

MARKET SHARE

6%

Nescaf
Others

Bru, MacCoffee, Coffee Crown and,

Maxwell House and Bean Coffee.

94%

Currently, Nescaf has a business of

around 300 tons annually.

2. industry and
competitor analysis

DEGREE OF BUYER
INVOLVEMENT
INEXPENSIVE

BUYER
BEHAVIOR
habitual
+

therefore,

MARKETING
STRATEGY
shelve stocking
+
reminder ads

3. market analysis

perceived brand difference

WHILE BUYING
Since coffee consumers do not make
heavy decisions about what brand to
buy, non-stop ads serve the purpose
of creating

BRAND FAMILIARITY
rather than BRAND CONVICTION.

Accordingly, if this process is

followed by a purchase, this behavior
is likely to turn into a habit over time
due to the reason that coffee taste is
suitable to have an addiction
towards it.
As a result, consumers act according
to habitual buying behavior if
they keep buying Nescafe Classic
owing to habit formation, a
familiarization or a routine.

3. market analysis

perceived brand difference

WHILE CONSUMING
Significant
perceived
brand
differences: Consumers could buy
Nescaf without much evaluation
but they evaluate the quality of
coffee while consumption.
According to products strength or
taste, next time, a consumer may
switch his/her brand prefer and
can purchase one of the
competitors of Nescafe Classic.

For instance,
they may switch brands between
Nescaf Classic and Bru. Brand
switching occurs because consumers
seek variety and want to try a
different coffee. Therefore,
consumers act according to varietyseeking buying behavior.

3. market analysis

TARGETTING A SEGMENT
2ND SEGMENT is the best fit!
The focus is urban young professional
cosmopolitans
with
contemporary
lifestyles.

Taste and aroma of the coffee, accordingly

quality is the important element for them.
Nescaf emphasizes keeping them active
throughout the day.

3. market analysis


The introduction of coffee in a jar was
initially a failure in Bangladesh. Priced at a
premium and sold in only family packs
formerly, the jar coffee had almost no market
share during the times of introduction in the
Bangladeshi market. A handful of consumers
who were passionate about coffee only
purchased the jars and the company checklisted the launching of Nescaf as a loss
venture.

3. market analysis


Nescaf gained some of the expected
market after the launching of the mini-jars,
but yet it lacked a strong customer base to
ensure a good prospect for the future of the
company. The target market of coffee was
never the low income groups, as the
positioning of coffee is to the youth or to the
upper societal class. In order to penetrate
the market, the primary objective of Nescaf
was to get the people used to the taste of
coffee. Because tea is the main competitor of
coffee and the prevalent beverage, the
objective could not be accomplished
overnight.

3. market analysis

The taste of real coffee is rather bitter to the

normally practiced tea drinks usually served
and drunk all over the country. That the
vending-machine idea was a penetrating
strategy for Nescaf, the taste of coffee was
lightened with a lot of milk and sugar in the
recipe to deem acceptable by the general
public.

3. market analysis

Otherwise known as the on-the-go coffee

pack, the recipe of this pack is also exactly
the same as of the vending-machines. The
only value migration that occurs here is the
idea of do-it-yourself for the customers, to
have a significant increase in their
involvement.. The target population ages
from 17 to 20 years, which is the adaptive
age for tea/coffee drinking as considered by
Nescaf. This market is desirable in order to
be tapped by Nescaf as it is believed that
once a customer becomes brand loyal to
Nescaf, s/he provides a lifetime of revenues
to the company.

3. market analysis

Nescaf uses a premium pricing strategy to

signal its quality and strong brand attributes.
The pricing strategy is different for each pack
size.
Package pricing is done for Nescaf Classic
Jar, Nescaf Bondhu Classic Sachet and
Nescaf 3 in 1 Coffee.
Other than these three products, Nescaf has
some other products like Coffee mate,
Nescaf 200 gm pillow pouch etc. These
products are imported and are available in big
chain stores.

460
Tk

Nescaf 200gm jar

260
Tk

Nescaf 100gm jar

135
Tk

Nescaf 50gm jar

3. market analysis

8
Tk
5
Tk
2
Tk

Nescaf 3 in 1

Nescaf 1.8 gm Bondhu Pack

Nescaf 0.9 gm sachet

3. market analysis

pricing strategies
VALUE ADDED PRICING

This involves attracting valueadded service to differentiate the

companys offers and to support
charging higher prices.

The price of Nescaf 3 in 1 has a

higher/cup price than any other
Nescaf pack.
Yet people tend to buy it more and 3 in
1 pack is very popular among the
young generation as it is easy to make
without any hassle, and it gives extra
value to that product as milk and sugar
is mixed with the classic Nescaf.

3. market analysis

pricing strategies
COST BASED PRICING

It is setting prices based on the

costs of production, distribution,
and selling the product with a fair
rate for effort and risk.

As Nescaf imports their product

and raw materials mainly from
abroad, they cannot sell it at a low
price. So, they sell their product
based on expenses they need to
bear after the import

3. market analysis

PLACE AND SALES POINT

Nescafe products, in most cases, are found on

shelves of various departmental stores and
the smaller packs are found even on roadside
tea stalls.

3. market analysis

PLACE AND SALES POINT

Pack Size

Target Users
Out of home pack mostly serving the bulk users, i.e. fast fo ods,
restaurants etc.
In- home pack, mainly for the relatively frequent coffee drinkers.
In-home pack, meeting the daily usage need of households in an
affordable way.
Containing right mix of coffee, creamer and sugar to have right taste of
coffee just by adding hot water,convenient pack size of 14 gm allowing
the consumers to carry it with them and have coffee anytime, anywhere.
For 2 persons, affordable pack with broader consumer base.

3. market analysis

PROMOTIONS - TVC

Anytime, Anywhere
Jaago
Cholo shobai

Get, Set, Rock

3. market analysis

PROMOTIONS Print Media

NESCAF has been advertising in

Prothom Alo, The Daily Star, Star
Weekend Magazine etc. to
generate awareness among the
consumers.

3. market analysis

PROMOTIONS In Store Communication

Trade posters, Shelf talkers, Bunting, Danglers are

the main elements used for in-store
communication. Nestl appoints merchandisers for
installing these materials. These are also called Point
of Sales Materials (POSM).

3. market analysis

PROMOTIONS Outdoor Activities

NESCAF is currently using shop signage as

outdoor promotion. These help shoppers
remember the brand while they are making
purchases.

3. market analysis

PROMOTIONS Sampling
Sampling is a very useful tool to ensure trial of
coffee. Wet sampling is basically providing samples
to consumers in ready to drink form. It is done
through vending machines and also through
different agencies. NESCAF has yearly budget for
free sampling and is actively utilizing it with a view
to familiarizing people with coffee taste.

3. market analysis

PROMOTIONS Consumer Promotions

Till now NESCAF has adopted two ways of consumer
promotion. 1. Through sponsoring different events
related to the target consumers, i.e. NESCAF
Unplugged, NESCAF Campus Carnival and NESCAF
Battle of the Giants. 2. Through providing specific
incentives with the pack, i.e. NESCAF mug, NESCAF
branded spoons, T-shirts, Caps etc. Besides, the company
has also tried out some cross brand promotional
activities like promoting NESCAF and Coffeemate
together in the NESCAF dream couples contest.

3. market analysis

TO END WITH
Nescafe has seen a steady growth in market demand for its products.
It has successfully been able to change customers attitude towards
coffee and has been able to convert tea drinkers to coffee drinkers
however,
with the entry of international coffeehouse franchises in to the market
that Nescafe has worked so hard to build, the future of Nescafe
products are at stake
as such,

Nescafe has resort to even more creative means to compete and

gain market share or even retain its current turnover..
Will this be the start of a new era of marketing for Nescafe?