Nescafe Project for Marketing Management

1. Presented
by
Group 7

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

20. Integrated Marketing Communication

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.