Nescafe project
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The document presents a marketing plan for Nescafé in Myanmar. It begins with an overview of Nescafé's history and introduction in Myanmar. It then discusses Nescafé's entry strategy in Myanmar, which focused on distribution through partnerships. The marketing mix of product, price, place, and promotion is described. Nescafé segments its customers by demographics and psychographics and targets youth, common consumers, and working people. A SWOT analysis and competitive profile matrix are provided. Integrated marketing communications including advertising, events, and social media are summarized. A survey of customers is presented analyzing Nescafé's market share, competitors, and effectiveness of marketing.
Nescafe project
- 2. THAN NAING AUNG MBA (I)-7 Saw Yu Yu Nwe MBA (I)- 52 (Group Leader) Kaung Satt Paing MBA (I)-61 Group Members and Their Roll Numbers
- 3. Aung Myo Win MBA (I)-88 Hsu Wai Mon MBA (I)-43 Aye Su Khine MBA (I)-25 Ye’ Naing Lin MBA (I)-34 Lin Lin Htet MBA (I)-16 Moe Khant Thu MBA (I)-79 Thiri Shein MBA (I)-70
- 4. Content • Origin and History • Entry Mode strategy • Marketing Mix (4Ps) • Segmentation , Targeting & Positioning • SWOT Analysis • Competitive Profile Matrix • Integrated Marketing Communication (IMC) • Survey • Conclusion
- 5. • Nescafé = Nestlé + Café - ‘Nes’ means Miracle ‘café’ – coffee ; miracle with coffee • In 1930-Brazilian Government approached the multinational Nestle to use surplus crop • Max Morgenthale – In 1938 developed Soluble coffee • Nescafé brand introduced in Pakistan in 90s Nescafe in Myanmar Established in 2013 At early period, did researches and surveys for about two years (distribution channel, market analysis based on PESTEL) Formerly, products imported from Thailand and distributed in all over Myanmar. In 2016, Nestle’ Myanmar corporates with Myanmar Distribution Group (MDG) and produces Nescafe, Milo and other food & beverage products Origin and History of Nescafé
- 6. Mission Our mission is to provide consumers with the best tasting and the most nutritious coffee which would make them something that is so unique that is unexplainable by word-of-mouth. When they drink our coffee , delightful moment shall be sprinkled in their daily life. Vision We are committed to maintaining the same level of personal connection that our consumers have grown to love as we build these qualities into our company culture . Slogan “ It all starts with a NESCAFÉ
- 7. Nescafe’ in Myanmar – Entry Mode Strategy Distribution Nescafe’ Myanmar focuses on distribution to enter Myanmar market Distribution Channel of Nescafe’ in Myanmar Nescafe’ (Nestle) Distributor Wholesaler Retailer Consumer Partners of distribution for Nescafe’ Myanmar 1. MDG (Myanmar Distribution Group) 2. Premium Distribution 3. Pahtama Group
- 8. MDG – Myanmar Distribution Group Nescafe’ Latte Nescafe’ Espresso Roast Nescafe’ Red Cup Nescafe’ Rich and Aroma Nescafe’ Blend & Brew Premium Distribution Nescafe’ Red Cup Nescafe’ Gold
- 9. Pahtama Group -Mostly distributed for Tea Shops and Coffee Shops -Provide shop decorations for banner & paint -Vacuum Flask -Marketing tools like big umbrella, cups, shirts, tissue box, table, etc. Entry Mode Strategy: Pricing Price Skimming : Price is a little higher than local market
- 10. Marketing Mix(4Ps) 1.Products -Nescafé Red cup espresso - Nescafé Protect Pro slim - Nescafé RTD (Ready to drink) - Nescafé 3 in 1 - Nescafé Classic - Nescafé Gold Blend - Nescafé Blend & Blew
- 11. 2.Price - Brand image price - uniform price - Perceived value price - Different pricing depend on the various products 3. Promotion - Generous discount to distributors - Advertising Campaigns - Internet - Television - Public Relation activity - Seasonal promotion
- 12. 4.Place Urban • Supermarket • Convenience Stores • Wholesales and retailed stores • Teashops Rural • Retailed Stores • Wholesales and retailed stores • Teashops Nescafé cooperate with MDG group for the distribution to build a stronger distribution network and sales network
- 13. Segmentation ,Targeting and Positioning Regions Area Geographic : Myanmar Upper MM Lower MM Rural Urban Semi-Urban Demographic Age ( 16-25,26-45, 46 and above) / Gender / Income / Occupation Psychographic Cultured-oriented , Outdoor-oriented
- 14. Segmentation ,Targeting and Positioning Coffee is the largest beverage that is consumed worldwide . Nescafé is very popular brand all over the world. Nescafé basically try to target ; Youth : Coffee is very popular among youth .They have tried to associate NESCAFÉ with youthfulness . So mostly in their advertisement they show young girl or boy having coffee in RED NESTCAFÉ MUG . (depend on price / readiness Target products :3 in 1& RTD) The common man :The Nescafé targets common man who is just looking for a cup of coffee to get them through the day . Coffee is a beverage that can revitalize them ( depend on taste Target products : Red cup , classic & Gold ) Working people : Coffee is a beverage that is said to have some properties that can Energize a person easily . So they are targeting working people both white-collar and blue-collar . This beverage can be reenergizer for them. ( depend on income and prefer Target all types of products)
- 15. • Product differentiation - 100% pure coffee made from finest coffee beans • Image differentiation - Nescafe’ is a international brand • Its famous taglines are - “1 coffee cup, 1 good feeling”. Sharing a cup of coffee is shown as a symbol of sharing happiness. Segmentation ,Targeting and Positioning
- 16. Point-of-Parity Similar diversity in product lines Convenient Easy and quick to prepare Affordable and easily available from all shops Point-of-Difference Nescafe Premier Sunday Focus on global taste Focus on local taste Focus on local taste : creamy Focus on creating value on distribution Focus on creating value for manufacturing and distribution Focus on customization Healthier coffee (some products are labelled as the healthier option) Creating Local Brand Value Make advertisements by using brand ambassador Good advertising campaigns Good advertising campaigns Brand Positioning
- 17. High Perceptual Map Comparing Nescafe’ and competitor products Low Growth rate Position (market share) High Low
- 18. STRENGTH -Global recognition and strong brand -Product varieties -Strong distribution channels -Strong direct and integrated marketing -Can influence on most of the people with different ages WEAKNESS -Prices are little higher than competitor’s products -Packaging Design -Taste and aroma is different from Myanmar taste -Amount of kilo per pax -Warehouse storage problems -Imitation OPPORTUNITIES -Increasing demand for healthier food products -The culture of coffee-drinking is raising among people -People prefer brand products THREATS - The local brand, like Premier, gains more market share - The policies of foreign investment and labor Union law can be a threat for production - The quality control of production - Health conscious people avoid instant coffee SWOT SWOT Analysis
- 19. A Competitive Profile Matrix Key Success Factor Nescafe Premier Sunday Weight Rating Weighted Socre Rating Weighted Socre Rating Weighted Socre Market Share 0.15 1.5 0.225 2 0.3 1 0.15 Price Competitivness 0.1 3 0.3 2 0.2 1 0.1 Financial Position 0.25 3 0.75 3 0.75 2 0.5 Product Quality 0.3 3 0.9 2 0.6 2 0.6 Customer Royality 0.2 1 0.2 0.6 2 0.4 Total Weighted Score 1 2.375 2.45 1.75
- 21. Advertising • Use the member of most famous band in Myanmar, Iron Cross, in order to attract most people attentionTV advertisement • Advertise by Billboards at crowded and traffic areas Billboard •Watching movies become one of the favorite ways for relaxation and cinema ads can reach to a huge number of customersCinema ads • Social media also become a MUST advertising way nowadaysSocial Media • For those who are not able to watch TV or social mediaFM Channels • General Trade, modern trade marketing and advertising Other direct or interactive marketing
- 22. Social Media Nescafe’ invited participants for “Nescafe’ 75th Anniversary Photo Contest” In Feb 2016. Grab to refresh Photo Contest , In March ,2016
- 23. Events Nescafe’ sponsor Myanmar Idol Season 1 - 2016 Nescafe’ with Myanmar Water Festival -2016 Nescafe’ at Taunggyi Ta Saung Dine Lantern Festival
- 24. Survey We did a survey to know Nescafe’ market share the competitors the effectiveness of advertising and marketing Nescafe’ strengths and weakness and other feedbacks from customers. ►Survey type – Questionnaires ►Amount of questionnaires – 100 ►Scope – MBA students, families, coffee shops, tea shops, grocery shops and random people
- 25. Summarizing of Survey Result 55% 45% the percentage of male and female Female Male Both male and female are interested in our survey and we found that most of them have coffee drinking habit, by our survey scope. But male are like pure coffee powder than instant coffee. Female are intended to buy instant coffee more.
- 26. 16 - 25 46% 26 - 35 17% 36 - 45 10% 46 - 55 15% 55 & above 12% Ages of survey participants 16 - 25 26 - 35 36 - 45 46 - 55 55 & above 16 - 25 Rising coffee drinking habit Potential market Choose instant coffee because of their income 26 - 45 Fans of coffee Nescafe’ advertisement has huge influence on them 46 – above 55 Drink coffee regularly Most of them choose Nescafe’ because of taste
- 27. 0% 10% 20% 30% 40% 50% 60% 70% 80% Taste can buy easily because of advertisement other Why choose Nescafe’ About 68% of the participants choose Nescafe’ 3 in 1 instant coffee as their favorite , as it is their most focus product for distribution and marketing.
- 28. 0% 50% 100% Cash Lucky Draw Presents Discount Extra packages Which promotion program of Nescafe’ do you like the most? Nescafe’ promotion program of giving presents on Sept 2016 (Thadinkyut Festival special) Source: Nescafe’ facebook
- 29. We found that age between 16 – 25 years customers may become potential market by their rising habits of drinking coffee. Customers from age 26 – 45 years old are influenced by Nescafe’ advertisement, than other segments. Nescafe’ has unique taste and aroma that can attract customers. Most of the customers notice Nescafe’ advertisement s but these advertisements are not likely much influence on customer buying decision for all segments. Customers are mostly interested in cash lucky draw program, but Nescafe’ is mostly focus on “Giving Presents Promotion” and extra packages. Executive Summary of Survey Result
- 30. According to the survey that we did on the one hundred people, customers who are around “16-25” ages have a drinking habit and drinking coffee become a culture in Myanmar. Since the majority of the people around “16-25” ages do not earn much income, they prefer drinking “instant coffee”. As Nescafe’ advertising strategy is “To reach everyone, for everyday” , their target is so general. Nescafe promote their advertisement with Lay Phyu as a brand ambassador. Although advertising with “Lay Phyu” could promote a huge amount of people from the different layers of living, Nescafe’ still had less impact for the youth people aged between “16-25”. Conclusion
- 31. The people aged between “26-35 and 36-45” have been greatly influenced by the advertisement of Nescafe’ by Lay Phyu. - The results show that these people drink coffee because of the influence of the advertisement. - But, that advertisement still couldn’t influence the young people of “16-25” Conclusion
- 32. So, Nescafe’ change their advertisement strategy to influence on youths in 2017 . They hired “Myat Thiri Lwin (Bella Victor) who is Miss Myanmar World 2016” as a billboard advertising model for Nescafe’ advertisement But, the new advertisement by Bella Victor hasn’t got much attention by young people and that advertisement still don’t meet the expectations of Nescafe’. In 2017, they made a new advertisement for Nescafe’ by using teenager celebrity “Pan Yaung Chel” and Kyaw Htet Aung who is a famous presenter in Myanmar Idol. Nescafe’ uses these two celebrity to promote the interest to drink Nescafe’ coffee among the young people.