4. Premium Segment is in introductory stage :
Pioneer Marketing Strategy
Premium Segment
Mixed Segment
R&G Segment
Regular Segment
BCG Matrix Model
5. Coffee is the most popular drink nowadays.
36
Instant Coffee 41
CSD 41
34
Bottle water 31
25
Instant Coffee 39 UHT/Pasteurized 28
drinking yogurt 13
CSD 38
18
Bottle water 28 3 in 1 coffee 16
UHT/Pasteurized drinking yogurt 20 5
Beer 26
3 in 1 coffee 17
Beer 15 UHT/Pasteurized / 18
Sterilized Milk 12
UHT/Pasteurized / Sterilized Milk 15
Alcoholic drink except 4
Alcoholic drink except beer 14 beer 24
Milo Ovaltine 12 15
Milo Ovaltine 8
Iced coffee hawker 8
RTD Coffee 8 Iced coffee hawker 9
6
UHT/Bottle soya milk 7
RTD Coffee 5
Energy drink 7 10
Milo/ Ovaltine UHT 6 UHT/Bottle soya milk
7
7
UHT/Bottle/Can branded fruit juice 4
2
Energy drink 12
Milo/ Ovaltine UHT 8
3
UHT/Bottle/Can Male Female
6
branded fruit juice 2 Source : Coffee U&A study, 2003
6. Coffee is more popular day by day ,
52% of Hot Drinks Value
Mio. Bht
7,000 Market is growing every year.
+14%
+14% Coffee consumption is booming.
6,000 (esp out of home)
+6%
+6%
+11%
+11%
5,000 2,421
1,341 1,777
4,000
200 206 266
People lifestyle is westernized &
3,000
modernized.
2,000
People have less time / work harder.
3,504 3,372 3,410 Coffee is the part of image enhancer.
1,000
0
2002 2003 2004
More players jump into coffee market.
Coffee is their part of life.
Coffee Market Size by segment
7. More opportunity to grow premium segment
Mio. Bht
300 Consumers are more sophisticated.
+29% Premium Coffee is well adopted.
250 +3%
+1%
200
150
266
100 200 206
People spend more on coffee (per
50 transaction & consume more)
Consumers are still looking for and
0 willing to pay for coffee great taste.
2002 2003 2004 Opportunities is there but HOW?
Premium Coffee Market Size
8. How about the premium segment today?
Mio. Bht
Few players with less competitive
300
+29% degree.
No one owns this market.
250 +3%
+1% No one invested the market before,
Nescafe Gold starts in 2004
200
Market size can be doubled in next
3 years!
150
266
100 200 206 + Nescafe Brand is highly accepted.
+ N. Gold is highly recognized and get
50 success in 2004
+ High barrier to enter the market
0
2002 2003 2004 - Green Tea Booming.
-“Health Concern” Perception
Premium Coffee Market Size - Substitute product
9. We need to understand where we are today!
Competitor
Understanding
Ourselves
Consumer/Shopper
10. Main competitors today ...
Sara Lee Trading – Moccona Royal Gold, Moccona Espresso
+Key competitor with total >30% market share.
+Price is a bit lower.
+Before 2004, they lead the market.
-They focus mix segment.
-Brand Image
-Not good product taste
11. Main competitors today ...
Trading companies – Taster Choice, Maxim, UCC etc
+High product image.
+High flexibility.
-Low corporate image.
-Product Supply Fluctuation.
-Not invest in the market.
12. Nescafe Gold is one step ahead the others!
Product Price Brand Image Promotion Distribution Techo.
Nescafe Gold
Moccona
Imported
Nescafe Gold Key priority is to drive the total category
13. Let’s review where we are ....
Strength Weakness
• Positive brand image & product. • Low flexibility
• Big investment to drive.
• Endorsed by Nescafe / Nestle
• Various pack size to serve
• Uniqueness
• High technology in the business
Opportunity Threat
• Coffee is booming. • Substitute product : Green Tea, Tea
• Consumer is more sophisticated. • Health Concern.
• Needs for premium coffee exist. • Smuggling Product
• Premium coffee is more popular.
• Changing in people lifestyle
15. Having a good start in 2004
(Mio Bht)
300 Market is growing by +29%
While N. Gold sales is about 4 times higher!
250
206 266
200
150 Market
N
. Gold
100
50
99
26
0
2003 2004
Premium Market Size vs Nescafe Gold sales 2003-2004
16. SEGMENTING
Age
0 - 15 24% of population : 15,462,944 People
16 - 30 21.2% of population : 13,658,934 People
31 - 45 24.2% of population : 15,591,803 People
46 - 60 24.8% of population : 15,978,376 People
60 Up 5.8% of population : 3,736,878 People
17. Targeting : Product Specialization
Age
0 - 15 Demographic + Psychographic
16 - 30 • At certain age
• Educated, Modernized
• Socialized, Dynamic
31 - 45 • Out going, Trendy
• Cool
• Confident, Unique
46 - 60
60 Up
19. Youth : 16-30 Spend 70% of their time out of home
KEY INSIGHT
Home • 19 yrs old is the age of having the first cup of coffee
• Do not appreciate the taste and Image of Nescafe
School/Office
• New Coffee Shops are changing the way they look
at coffee. Coffee is becoming more of a social drink
Entertainment • Key Need states are Quick/energy boost/kick start,
• Have a nice place
Thirst Quenching
for lunch
• Shopping at Mall Snacking (Iced coffee)
• Playing sport • Key Psychographics
• Going to cinema Want to Experience life &
• Hang out with friends
Want to Grow themeselves
Work hard, Play hard
20. Family builder : 31-45
KEY INSIGHT
Home
• The age of adapting hot coffee
Office • Coffee is becoming a part of their everyday life
• Key Need states are Kick start,
Key activities : Refreshment during the day
• Business Dinner
Mental renewal
• Going to fitness / sports
• Going to theaters • Key Psychographics
• Socializing with friend ; Career and success are the key focus
at lunch or drinking in
evening before go home Now they have goals that they want to pursue
• Have a nice place for • Coffee ignites their spirit, gets them ready, bring
meal with family
their confidence, lets them focus, settle their
• Shopping complex with
family thoughts, initiates social bonding
21. No time to dream: 46-60
Home KEY INSIGHT
• Heavy users : More coffee appreciation
Office
• Coffee is a part of their everyday life
Key activities : • They spend relatively more time at home with family
• Business Dinner • Key Need states are Kick start,
• Deliver / pickup sons
from schools Mental renewal
• Going to public park Relaxing and Rewarding oneself
• Socializing with friend ; • Key Psychographics
mostly at lunch
• Have a nice place for They’ve accomplished certain things and now looking
meal with family for life’s small pleasures.
• More traveling; personal
Appreciate good things in life
business
They have much more focus on the family
22. Understand consumer is the key to succeed.
All 16-30 yrs 31-45 yrs 46-60 yrs 60 yrs up
Bas : Instant Coffee % % % % %
At home 92 97 89 91 93
Office 8 3 6 11 6
In car/on the way 01 0 5 0 0
Base : 3 in 1 coffee % % % % %
At home 79 85 69 79 82
Office 17 5 23 17 15 - Regular at home
School/Education institution 1 10 2 0 0 - Big opportunity : office
Base : Hot coffee at hawker % % % % %
Street vendors/hawker 63 50 64 76 56
At home 17 43 23 4 20
Office 12 0 0 6 25 - As breakfast
All 16-30 yrs 31-45 yrs 46-60 yrs 60 yrs up - Convenience oriented
Those consuming Instant Coffee yesterday % % % % %
Before breakfast 54 29 54 52 57
During breakfast/as the breakfast 33 43 26 34 34
After lunch till dinner 10 0 5 11 11
Those consuming 3 in 1 coffee powder % % % % %
Before breakfast 42 13 22 42 52
During breakfast/as the breakfast 31 37 31 35 25
After lunch till dinner 20 10 30 20 17
Those consuming Hot coffee at hawker % % % % %
Before breakfast 23 18 20 11 36
During breakfast/as the breakfast 23 10 0 41 17
After lunch till dinner 15 0 0 20 20
After dinner till before bed time 22 9 66 10 25
23. CIRCUMSTANCES OF CONSUMPTION Base: 617
INSTANT COFFEE
HOME (93%) OUTSIDE (10%)
As breakfast 55
With breakfast at home 15
During break 3
Having snacks at home 8 As breakfast 2
Before breakfast 6 Working 2
Watching TV/ VDO /listen music/ radio / reading 4 Hanging with friends 2
After meal 4
Base: 270
3 IN 1 COFFEE
HOME (80%) OUTSIDE (23%)
As breakfast 48 During break 10
With breakfast at home 10 As breakfast 4
Relaxing 7 Having snacks 4
Before breakfast 6
Watching TV/ VDO /listen music/ radio / reading 4
26. We do not sell Coffee,
We sell Best drinking moment
27. More room to grow the business
(Mio Bht)
600
+22%
500
+24%
400
+29%
300
525
200 430
345
266
100 206 Market
0
2003 2004 2005 2006 2007
Market Size of Premium Segment in next 3 years.
29. Our Vision
Lead and Grow the Premium Coffee Market and
Become The Most Preferred/Aspirational
Coffee Beverage Brand in Thailand
30. What to achieve ...
2005 Objective
Achieve 145 Mio. Bht Sales ( 42% market share)
Lead and profitably grow the total premium coffee market
Long Term Objective
Own the premium segment : Think of premium coffee,
Think of Nescafe Gold
Achieve 65% market share in next 5 years.
31. How to achieve ...
3 main strategies
Recruit new user : Regular Segment
(by 15%) : Out of Home
: New new user
Increase consumption : As Breakfast
: 2 cups a day (or more)
Turn competitor user : Expect 20% conversion rate
32. Every single element is ready to strike ..
Great product on earth
Right pricing to tempt the consumers
Full distribution to ensure product availability
Communication and Promotion to drive success
Success is in the arm reach!
33. Nescafe Gold is ready ...
to rock the market.
Nescafe Gold Army
New Affordable Range with Proprietary Packaging
34. Nescafe Gold
Doypack w/ zipper EdenII jar Stick in box
70g 35g 200g 100g 8 sticks x 2g
Price 120 Bht 65 Bht 420 Bht 230 Bht 35 Bht
35. Right product at right time!
Highly accepted brand with positive image – Nescafe Gold.
Premium&Modern Look with reliable quality at proper price range.
Attractive pack size to serve various group & purpose.
Jar Line Pouch Stick in box
Loyal Shopper Recruit new user Increase Consumption
-100g & 200g -70g & 35g -2g.
-X-Citing shape -Trial pack size -Out of Home/Convenience
-Premium / Modern -Zipped Lock -Modern/Cool
-New Design
36. X-Citing to drive $ALES
Innovation : Limited SKUs
Nescafe Gold 3 in 1 in Q3 : Out of home
Nescafe Gold Decaf in Q3 : More cups a day / Health Concern
Nescafe Gold Mocca in Q4 : More cups a day
Renovation : Packaging Modification – Special Packaging
Valentine’s , X’ Mas
Recipe Application – Nescafe Gold Frappe’
37. Pricing reflect high image & reliable quality.
Brand Index
Nescafé Gold 100 Skimming Pricing to build business both
Moccona Royal Gold 77
retailer & vendor.
Price is less sensitive.
Taster’s Choice 74
Establish Price&Quality Relationship
UCC 124
Build Image and Perception while deliver
Maxim 135
promised quality
Others 125
38. Where to find our product : Distribution Channel
Modern Trade contributes 95% of business
Hypermarket Supermarket Convenience
Store
39. Alternative trade channel to widen the
distribution
Out of home / Food Service Channel
- Restaurant, Hotel, QSR
Alternative channels
- Entertainment section, Book store
40. 360 degree of communication to bomb
the town!
Print
Quality coffee
In-store activity
TVC
$ Market Growth $
Cinema
Sampling OOH
P/R
42. Rapidly increase Awareness through Mass Media
Prime Time
Channel 3 / 7 / 9
Soft Opera after news
News Program
Morning News Program
+ Increase awareness
+ Direct to target group
+ Induce Trial
Hit > 9,000,000 people
TVC : Prime Time (Throughout the year)
43. Rapidly increase Awareness through Mass Media
Alternative but Attractive Media
Tie-in Program
Magazine Ads
Cinema
& Internet
+ In line with target lifestyle
Unique and strong communication + Increase awareness
+ Build positive image
+ > 800,000 people
49. Product Trial by continuous Sampling
In store
350,000 Wet sampling - in Modern Trade : AM / PM Consumption
50. Product Trial by continuous Sampling
In Office
Dry
200,000 wet and dry sampling - in offices Sampling
: AM / PM Consumption
51. Product Trial by continuous Sampling
Cinema
- Fit to target group lifestyle.
- > 120,000 people
52. Attract Opinion Leaders through targeted
PR and CRM activities
PR CRM Activities
Special Gold kit sent
to 400 opinion leaders
(CEO, government officer, celebrities)
53. Ensure product availability by sales incentives
Special Incentive in Q1
• Achieve stretched target
• Make sales team having more focus in Nescafe Gold
• Drive distribution to ensure having no OOS in store
• Part of total integrated campaign to ensure success
54. Action & Strategy to drive the business
Achieve 145 Mio sales
and grow the category
Increase Turn Competitor’s
Recruit new user
Consumption User
- Create awareness by TVC, - New product Launch : Decaf, - Create awareness by TVC,
Magazine Ads, other Media Limited Edition : Mocca Magazine Ads, other media
- Sampling in store, office, - No OOS in store - Sampling in store, office,
cinema cinema
- Sampling in store, office,
- P/R and CRM Activities cinema - Impactful merchandising
at store
- New Product Launch :
Decaf, 3 in 1 - New Product Launch
- In store Promotion - New packaging
55. It is time to drive great beverage on earth.
Type Detail Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Total Cost
Media TVC 29,800,000
PRINT 2,700,000
Cinema 2,400,000
Sampling In store 17,000,000
Office 13,000,000
P/R 600,000
Promotion 6,000,000
Innovation Limited/New Product 700,000
Packaging 600,000
Incentives 1,200,000
Others 3,000,000
Total 77,000,000
Integrated activities to ensure the success
56. Awareness & Trial are the key driver!
Incentives
84% of investment is spent to ensure awareness & Trial.
Innovation
Other Media
TVC & Sampling are key to succeed.
Promotion
Sampling
TVC
0 5 10 15 20 25 30 35
Investment grouped by spend type
57. We invest for the future .....
(Mio. Bht)
16 10
9
14
8
12
7
10
6
Sales
8 5
Spending
4
6
3
4
2
2
1
0 0
Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec
2005 Monthly sales & Spending
62. Nescafe Gold is ready ...
Market
300
250
200
• Coffee premium segment is growing by > + 20% every year. 150
266
• Out of home consumption is booming. 100
50
200 206
• Consumer is opened to premium coffee. 0
2002 2003 2004
Competition
• No one drives the market seriously today, but Nescafe Gold.
• Nescafe Gold gain many competitive advantages.
• Competition is not aggressive today.
Consumer
• Age 30 – 60 Years with modern lifestyle
• They are looking for great taste of coffee.
• They are opened to many kinds of media.
63. Nescafe Gold is ready ...
Tools to hit
• Attractive Product to serve consumers needs.
• Right pricing to make people buy.
• Full distribution to ensure sales.
• Communication & Promotion to drive success.
Print
Quality coffee
In-store activity
TVC $ Market Growth $
Cinema
Sampli OOH
P/R
64. Nescafe Gold is ready ...
Future Outlook
• Market is expected to grow by > +20% for next 3-5 years.
• Nescafe Gold will grow > +30% in next couple years.
• The 1st comer always enjoy the big piece of cake.
We invest for the future ...
