10 step marketing_plan

10 STEP
Marketing Plan for Nescafe

Maneka B. Malibago
October 2011

manekamalibago.blogspot.com 1

Summary headline of your
PTM and market
1. Nescafe PTM are working individuals
2. Who needs stimulation for every new day
3. Can choose San Mig Coffee & Jimm’s
4. Provide quality coffee without
compromising taste
5. The market size is P 23 billion, Nescafe
niche 20 billion
manekamalibago.blogspot.com

Summary headline of the
marketing mix & strategy

6. Nescafe is a brand of quality instant
coffee
7. Priced higher than its competitors
8. Uses prints, TV & radios, events and
experiences
9. Is distributed nationwide
10. Uses niche approach to win


1. Catering the working group

 20-30 years old, social class B and C,
single and married
 Working individuals
 Drinks coffee twice a day; morning to
awaken weary body and afternoon to
revive spirit


1. Workers pay for alertness

Through the years NESCAFE target market:
2005 ----- Spirit Seekers
2006 ----- Life Seekers
2007 ----- Ambition Flirters
2008 ----- Young Cosmopolitans
2009 To present ---------- working individuals


PTM needs to belong in a
group…
Self-Actualization
Needs
I am happy when I have an (Self-Development
& Realization)
important and worthwhile job
Esteem Needs
(Recognition,
Status)

I want to belong Social Needs (sense of
belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)

Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

6

2. Workers have unique
needs, wants, & demands
Working individuals need to belong, to be loved, gain
self-esteem, and achieve self-actualization.

Working individuals choose Nescafe over other brands
of coffee because of Taste, Quality, Convenience to
make, credibility & awareness of company, brand
promise is keep people active through out the
day.

Working individuals demand quality & tasty coffee
which are convenient to make, maintain alertness
all day.


3a. Nescafe has increasing
competitors
 Direct: San Mig, Jimm’s, Café Puro,
Kopiko, Great Taste, Kraft Maxwell
 Indirect: Teas, Softdrinks, Energy Drinks,
Chocolates Drinks
 Variables: Quality, Price, Packaging,
Variants/Flavors, Taste, Convenience of
Use, Availability, Occasion of use


3. NESCAFE ranks #1 with its
various packaging and high price
as of 2011
Price vs. Packaging Matrix
Packaging/ Jars Pouch Sachet Sticks
Price
Matrix

High price
Nescafe Nescafe
Nescafe Nescafe
Jimm’s
San Mig San Mig San Mig
Great Taste
Low Price Great Taste Great Taste


3. NESCAFE has the same as of 2011
attributes with most coffee
brands
Benefit Positioning vs. Brand Matrix
Great
Decaffei San Mig San Mig Great Taste
Classic nated Healthy San Mig Pro- Sugar- Taste Coffee Jimm's
Functional Benefit Coffee Coffee Coffee Regular health free Regular Mis
Mental Alertness
Improve Cognitive
Performance
Improve Physical
Performance
Antioxidants
Incease Metabolism
Energy Boost
Increase Immunity
Healing Management
Lower Blood Sugar
Lessen Symptoms of
Menopause &PMS
Saves money


4. NESCAFE is a brand of instant
coffee made by *NESTLE

*Nestle ranks no. 8 in the Top 1000 Corporation in the Philippines.
(business World 2010)


4. The NESCAFÉ Brand

It gained Brand Loyalty thru:
Media Mix (TV
Brand Awareness commercials, radio,
newspaper,
sponsorship, etc.
(emotional appeal)

Created Trust Consistent image &
quality of products


4. Nescafe positions strongly in
the supply and distribution
leverage.

Unlike its competing brands, NESCAFE is
available almost in every corner of the
country.
In groceries, large portion in the coffee
section displays the different variants of
NESCAFE.


4. Prospects that will lead to
increase in coffee demand

PROSPECTS
 longer working hours and busier lifestyles for

Filipinos
 desire to streamline operations amongst

foodservice establishments


4. Nescafe may have to consider
opportunities.

In the Philippines, annual coffee growth rate is at
8%.
Opportunities:
Inform the public product health benefits
Tie up with companies/offices
Take advantage of internet and different media
that encourages new trends


5a. Based on a coffee market
study, coffee market size is 20
million
 Total volume sales of coffee achieve 8%
growth in 2010
 Instant coffee mixes continue to gain
popularity in both off-trade & on-trade
channels
 Instant coffee records the strongest total
sales volume at 8% in 2010


5a. Total volume sales of coffee
are expected to reach a 6%
*CAGR over the forecasted period

*CAGR = compounded annual growth rate


5a. Based on a coffee market
study, coffee market size is 20
million.
 Globally, NESCAFÉ coffee is consumed at a rate of
about 4,600 cups every second!

2010 : Nescafe Philippines continues to dominate
with 81% share of off-trade volume sales & 89%
share of off-trade value sales

Its well-diversified product portfolio captured broad
range of consumers
(from low-income Filipinos to health conscious coffee
drinkers

5b. Based on Nestle Phils. Sales
date in 2010, 22% of its sales is
from Nescafe.
Nescafe sales data for 2010:
P 20 billion, a relatively high percentage
attributable to Nescafe

RIG in 2010 is 8.8% while OG is 12%

The total coffee market size is P 23 Billion of
off-trade value sales


5b. NESCAFE continues to
dominate the market


5b. There are only few players in
the market


5c. Consumer data indicates
a size of P 36.5 billion

Filipinos consume 65,000 metric tons (MT) of
coffee annually.

20 million of 102 million Filipinos drink an
average of 2 cups of coffee everyday which
costs around P2 .50 per cup

20 million X P 2.5 X 365 x 2 =P 36.5 billion


5. Concluded that coffee
market is P 23 billion

Company Data = P 23 Billion

Customer Data = P 36.5 Billion


6a. NESCAFE PRODUCTS

Think globally, Act locally


6a. NESCAFE Variants

Classic Coffee NESCAFE Flavored Mixes
NESCAFE Classic Choco Fudge
NESCAFE Classic First Pick Hazelnutz
Decaffeinated Coffee
Coffee Mixes NESCAFE Decaf

NESCAFE 3n1 NESCAFE 3n1 Decaf
Original
Brown ’N Creamy
Strong ‘N Rich
Sweet ‘N Mild


6a. NESCAFE Variants

Healthy Coffee
Premium Coffee
NESCAFE Body Partner
NESCAFE Gold
Protect
Fit
Ready-to-Drink Coffee
Relax
NESCAFE Mocha
Lingzhi
NESCAFE Latte
NESCAFE 3n1 Sugar Free


6a. NESCAFE own a superior
display of its products on shelf

San Mig Coffee

Lipton Tea

Nescafe at
supermarket shelf


6b. NESCAFE Coffee
 coffee's flavor is a delicate balance of characteristics, working
together to create a perfect cup :
Acidity, aroma and body are all components of flavor.

 The following are some of the more typical flavor
characteristics:

Richness: refers to body and fullness
Complexity: the perception of multiple flavors
Balance: the satisfying presence of all the basic taste
characteristics where no one element overwhelms another


6b. NESCAFE Products
Some products have 3x more antioxidants than green tea.
So every cup is deliciously healthy!

Sweetened with sugar substitute and contains TEAVIGO
that gives a guilt-free coffee experience

Soothing decaffeinated coffee mix with Chamomile

Lingzhi, also know as Ganoderma or Reishi mushrooms,
has been revered by the Chinese for thousands of years


6b. NESCAFE packages its
product in different sizes

Sachet
Jars

Doy pack / Sticks
pouch


7. Coffee prices vary
according to product sizes
NESCAFE SAN MIG COFFEE
Size Item Price Size Item Price
15 g x5 Nescafe Banoffee Blast Php34.50 13 g x5 San Mig Coffee 3 in 1 Pro-Fiber Php47.50
32.5 g Nescafe Body Partner Fit Php41.50
13 g x5 San Mig Coffee 3 in 1 Pro-Fiber Php48.75
70 g Nescafe Body Partner Lingzhi Php51.50
25 g x10 Nescafe Brown & Creamy 3 in 1 Php52.00 14 g x6 San Mig Coffee Classic Orig Php26.50
25 g x30 Nescafe Brown & Creamy 3 in 1 Php152.75 4 g x10 San Mig Coffee Classic Orig Php39.50
15 g x5 Nescafe Chocofudge Php34.50 14 g x10 San Mig Coffee Extra Strong Php46.75
25 g Nescafe Classic Php17.00
50 g Nescafe Classic Php56.50
14 g x6 San Mig Coffee Mild Php31.50
100 g pouch Nescafe Classic Php69.10 14 g x10 San Mig Coffee Mild Php49.50
12 g x12 Nescafe Classic Php111.85 4 g x10 San Mig Coffee Mild Strong Php46.75
2 g x84 Nescafe Classic Php153.50
13 g x6 an Mig Coffee Mild Strong Php30.50
200 g jar Nescafe Classic Php216.65
210 g Nescafe Classic Php220.00 14 g x10 an Mig Coffee Orig Php41.00
50 g Nescafe Classic Jar Php55.00 12 g x10 San Mig Coffee SF Extra Strong Php70.25
25 g pouch Nescafe Classic Refill Php17.60 14 g x10 San Mig Coffee Strong Php49.50
50 g Nescafe Classic Stand Up Pouch Php34.60
12 g x10 San Mig Coffee Sugar Free Extra Strong Php73.50
2 g x84 Nescafe Classic Stick Php144.50
2 g x20 Nescafe Decaf Php48.50 7 g x10 San Mig Coffee Sugar Free Mild Php60.00
80 g pouch Nescafe Decaf Php76.50 7 g x20 San Mig Coffee Sugar Free Orig Php97.50
200 g jar Nescafe Decaf Php254.50 9 g x10 San Mig Coffee Sugar Free Strong Php60.00
14 g x10 Nescafe Decaf 3 in 1 Php64.50
15 g x5 Nescafe Hazelnutz Php34.50
9 g x20 San Mig Coffee Sugar Free Strong Php121.50
16.5 g x10 Nescafe Original 3 in 1 Php42.50 12 g x12 San Mig Grandeur 3 in 1 Hazelnut Php162.50
16.5 g x36 Nescafe Original 3 in 1 Php144.50 12 g x12 San Mig Grandeur 3 in 1 Mocha Php162.50
16.5 x36 Nescafe Original 3 in 1 Php145.00
12 g x20 San Mig Grandeur Flavor Collection Php269.50
100 g Nescafe Protect Php134.50


Great Taste Nescafe price ranges from
25 g
Size Item
Great Taste Premium
Price
Php15.50
P17 to P254
25 g
pouch Great Taste Premium Php16.65
100 g
12
Great Taste Premium Php61.00
San Mig Coffee price ranges
g x12
6 g x6
Great Taste Premium
Great Taste Sugar Free
Php99.50
Php27.50
from P30.50 to P269.70
20
g x36 Great Taste Trio 3 in 1 Original Php122.50

Size
Jimm's
Item Price
Great Taste price ranges
21
g x12 Jimms 4 in 1 Php86.50
from P15.50 to P122.50
21
21
g x20 Jimms 5 in 1 Sugar Free Php259.50
Jimm’s price ranges from
21
P86.50 to P259.50
*Prices of products were based on Pure Gold and SM Supermarkets


Brand 3 n 1 SACHET Average Price per
original flavor Sachet
Jimm’s 21 g X 12 @ 86.50 4.11
NESCAFE 16.5g X 10 @ 42.50 4.25
SAN MIG 14 g X 10 @ 41.50 4.15
Great Taste 20 g X 36 @ 122.50 3.40

•Since not all brands have the same packaging sizes, for price
comparison purposes, average price per sachet was used.
•Prices were based on SM grocery price.


7. NESCAFE is priced 25% higher
to the least priced brand.

Brand 3 n 1 SACHET Average Price per
original flavor Sachet
Jimm’s 21 g X 12 @ 86.50 4.11
NESCAFE 16.5g X 10 @ 42.50 4.25
SAN MIG 14 g X 10 @ 41.50 4.15
Great Taste 20 g X 36 @ 122.50 3.40

4.25-3.40/3.40 = 25%

*Base price is that of great taste

Based on the data above, NESCAFE has the highest price in
3n1/4n1 original flavor sachet.


8a. NESCAFE uses TV ads,
events, and songs


8a. NESCAFE invests heavily in
promotion compared to its
competitors
Billboards, newspaper, magazine, TV commercials,
and in the internet (online games & social
networks)

Although the leading brand for instant coffee,
NESCAFE spends much on TV commercials
compared to its competitor

It uses celebrities in its TV commercials from Ramon
Bautista & Francis M, Sarah Geronimo, Parokya ni
Edgar, Coco Martin, etc.


8a. NESCAFE commercials
have emotional appeal
2011

Bakit ka nagtitimpla?


Para kanina ka bumabangon?

Para sa anak. Para sa kaibigan. O sa di mo
kakilala.Para sa bata. O sa isip bata. Para
sa marami. Para sa sarili



Parokya ni Edgar – One moment One
Nescafe



Bamboo Sunshine– One good day coming
up!
Day of Adventure



Palistuhan Challenge Francis M. vs Ramon
Bautista (2008) – Message Nescafe will
make a person alert!!!


8b. Great Taste by Universal
Robina

Side Lucero ---- Great Taste Coffee


8b. San Mig Coffee by San Miguel
PureFoods


8b. Jimm’s


8b. Other forms of
NESCAFE promotion

Samples


9. NESCAFE is distributed
nationwide using Nestle
distribution network
 Hypermarkets, supermarkets, sari-sari
stores, convenience stores, offices and
schools
 Nationwide
 Pick-up by customers
 Cash and credit transaction


10. Nescafe is a niche leader

 Nescafe’s main strategy is to dominate the niche
market of working individuals between ages 20 to
30
 It benefits from the distribution leverage of Nestle.
 Has a relatively high price compared to its
competitor, however because of brand loyalty it
still dominates
 Distributed nationwide


SUMMARY

manekamalibago.blogspot.com 48

Summary headline of the
marketing mix & strategy

6. Nescafe is a brand of quality instant
coffee
7. Priced higher than its competitors
8. Uses prints, TV & radios, events and
experiences
9. Is distributed nationwide
10. Uses niche strategy to win


10 step marketing_plan

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