1.1 Product Background
1.1.1Why do people drink coffee?
A cup of coffee is what most people reach for at the start of each day. Some people pursue coffee just to indulge in the taste and aroma. Coffee is also considered to be a social drink; some people develop a taste for it just because they meet up in coffee shops with their friends to socialize and at some point are obliged to drink coffee. But most importantly, the caffeine… It’s responsible for the empowering and energizing effect of coffee pumping up blood and making the person drinking it feel awake. It also has addictive properties if taken in excessive amounts. Last and oddly enough some people actually find that it helps them relax and unwind after a long day of work and stress. On top of those entire brands you can find Nescafe.
1.1.2Why Nescafé in particular?
Nestle began developing a coffee brand in 1930 in Brazil. It took nestle 8 years to introduce the new product under the brand name Nescafe on the 1st of April 1938.Nescafe is the number one coffee brand in the whole world with its iconic slogan “It all starts with a Nescafé”. “Life is full of amazing possibilities, but in order to achieve them you need to get started,” says Erin Matier, Marketing Manager, at Nestlé Canada. Nescafé is a brand that encourages you to seize opportunities and make the most of every day.”Nescafe has a rich history that reflects the rich taste and aromatic smell it provides since 1938, you’ll always find the unmistakable taste of NESCAFÉ which has been the everyday choice of coffee fans all over the world for generations. But why do people love Nescafé so much?
With this outlook, Nescafé connects with new fans that can still discover Nescafé as well as give a whole new experience to its already existing fans though it’s various interesting campaigns. NESCAFÉ brings together coffee lovers & fans from around the world.
NESCAFÉ offers a full range of coffee products to satisfy the coffee lover in you, and since it’s so well-known and trusted, whoever you are and wherever, you will always be able to find Nescafé. Whether you’re in a shopping mall, in a supermarket or even stalls, Nescafé is almost always around. “Because the individual tastes of coffee drinkers around the world can be so different, there are an unlimited number of coffee products created to cater to those tastes. It all starts with the coffee plant and the coffee beans. Coffee professionals mix coffee beans from different plants to come up with exotic, gourmet and just plain tasty products.” Via Nescafe.co the official Nescafé brand site. There are pure coffee blends and coffee mixes, caffeinated and decaffeinated, regular and premium. You’ll find cappuccino, latte and espresso products with and without flavors such as hazelnut, chocolate, vanilla, and mint. And coffee products vary by country and region to cater to local tastes. Each product satisfies different segments of coffee lovers. “But it’s not just coffee, it contains even more – flavors, sugar , milk powder and many other ingredients added to set one blend form another. Nescafe has become a leading brand with loyal customers and strong brand recognition. Nescafe’s variety of products makes it convenient and a first choice when it comes to coffee.
2.0 Targeted Customers Segments:
Nescafe’s instant coffee targets busy people with no time to spare whether it’s employees or students or anyone else who needs instant coffee that can actually make them feel awake and energized throughout the day. It’s a quick solution and is considered effective and efficient. Accordingly, each of them is targeted in a different way using advertisements, sales promotions and recently hitting the road with its Nescafé 3 in one campaign which will be the focus in this paper.
2.1Bases for segmentation
Nescafe divides consumers on the basis of these segments;
• Age and life cycle: (17 – 24 year Students, 25 – 30 years fresh graduates or individuals who has just started working. Above 30 years with stable career and occupation) .According to Nescafé, it’s the 18-30s segments that shall be the future potential of coffee drinkers which is why it tries to appeal to them. The primary focus is on teens to early thirties while the secondary target is late 30s workers.
• Gender: Both males and females that are busy and have no time to waste.
• Income: males and females who earn more than 1200 LE Nescafe’s income based segmentation is effective. It targets almost everyone income wise since it made the prices lower through mass production, making the product affordable to almost everyone and all classes compared to other competitors while still maintaining the profit-cost margin.
• Occupation: Office employees, workers, students or housewives. Nestle segmented the market based on their user’s occupation. The 3 in one product targeted people with busy lifestyles, workers and students with not enough time on their hands and in need for convenience those who work busy and hard and requires more freshness.
• Education stages: high school till college.
• Life style and personality: Nescafe users or potential users are assessed to be individuals with active lifestyles and hence Nescafe produced its line of Instant beverages. Nescafe 3 in 1 is for specially those users and customers who are really busy and do not have time to spare. Nescafé’s 3 in one containing sugar, milk and coffee: Coffee for customers who are busy in life.
3. Geographic: Urban & Sub-urban areas.
• Benefits sought: time saving alternative for coffee which consumers find in Nescafe 3in1.
Nescafe targets loyal customers who already know the brand as well as customers who have yet to discover it.
Nescafe has become a franchise with its large variety of coffee products and powerful brand with more than 5500 cups of coffee consumed every second of every day. Which is why, to some people, there’s no alternative to Nescafé and it’s become a product people always keep stocked at home or at work. It has become a leading brand with loyal customers and strong brand recognition.
• Usage based: the main target of 3in1 is heavy users who got used to drinking coffee but have no time to spare.
3.0 Nescafe’s promotional campaign
Their promotional campaigns have always remained popular they gain visibility very quickly, their advertisements are meant for common people and they resonate with their daily problems.
3.1 Advertising Objectives
• Increase perception of Nescafe 3 in 1 as best quality and best value instant coffee in target audience by 10%.
• Increase perception in target audience that Nescafe 3 in1 is a beverage that may be consumed at any time throughout the day by 15%.
• Fight competition from other coffee brands like Starbucks, etc.
• Using advertising to grow demand for premium coffee products and growing a market for Fair-trade hot drinks
4.0 Media’s used by Nescafe:
4.1. Social media:
The world wakes up to a Nescafe cup of coffee so it’s vital that the brand has a social media presence in every market, each social media profile serves up localized content, specially made for its audience. Nescafe’s social media strategies across Facebook, Twitter, Instagram and YouTube show how they engage their audience. Nescafe is able to exhaust all avenues to communicate with millennial audience by making its brand relevant in all platforms.
Nescafe use their social media accounts to publish an interesting mix of stunning illustrations, interactive GIFs and user-generated videos.
Nescafe used facebook videos ads to drive awareness and sales of Nescafe 3in1 amongst young adults resulting in 14% higher sales uplift than TV, their page on Facebook and Instagram got more than 37 million followers; they post on their Facebook wall regularly about their new products and other information about the importance of coffee and distributions areas
On Instagram they post pictures of Nescafe’s red mug with relevant hashtags to draw the attention of the people, people also started to take pictures of their morning coffees and tag Nescafe in their posts which encourages more people to do the same which helped Nescafe with their campaign causing a 15% increase in profit.
The company’s twitter account has about 70k followers and they tweet about Nescafe’s products and keep good interactions with the followers by replying to their tweets and listen to the followers opinions carefully
Nescafe also used apps like Anghami to play their ads between songs and used pop-out ads in banners which Anghami users can tap on and learn more about Nescafe.
Nescafe designed the media plan in a way where it reaches the majority of the target audience at least four times during the chosen period for the campaign. Using the selected media, the target audience will be familiarized with the campaign’s message and inspired to take actions as key events during the campaign promotion approach. By using different media platforms and shaping them according to consumer’s lifestyles and reducing wastage and making sure the target is exposed to the message as many times as possible is achieved while avoiding pushing the message using traditional media only which may have a negative impact on the target’s perception of the advertisement’s focus.
National newspapers played a distinct and cost effective role in Nescafe’s successful multimedia campaign demonstrating specific strengths in driving sales and building both purchase intent and emotional involvement brand metrics
Both the heaviest commercial TV viewers and frequent newspaper readers spend heavily on instant coffee-making the two media ideal and complementary partners for advertising frequent newspaper readers are the heaviest category buyers
.newspapers delivered the highest overall return on investment for Nescafe
.newspapers were the most efficient medium for driving brand consideration
.newspapers were twice as efficient as TV in creating emotional brand involvement
.TV and newspapers worked in complementary ways to build brand images
• Flexible. Ads Have Many Different Sizes
• Possible to Track With Coupons
• Ads Are Tangible
• High Reach With 35+ Demographics
• Ads Are Transportable
• Some Print Has a Very Long “Shelf Life
• local credibility and low cost production expense
• Multiple Options. It offers a variety of display options for the ads themselves. Some are cost-effective and moderate, while others are more expensive and elaborate.
• Trust More than half of consumers find print marketing (i.e., newspapers and magazines) to be the most trustworthy type of marketing in general.
• Decreasing readership. Print isn’t dead, but newspapers do appear to reduce.
• Short shelf life
• Limited audience. You’re also very unlikely to reach younger generations: only about 6% of grown-ups 18 to 24 get day by day papers, and only reach about 10% of grown-ups 25 to 45.
• Weak for branding. Between the same page clutter and the fact that readers rarely go through the entire paper, branding can be extremely weak for this format.
• Poor print quality
• Difficult to convey emotion: Warmth, Emphasis, Excitement
• Good position is hard to get.
4.3 TVs and radios:
Nescafe focused on commercials airing on TV and radio stations because they are the easiest ways to reach targeted audience, most of Nescafe’s commercials were able to fit in many culture and succeed to be aired and used world widely. For this campaign to have a significant effect, the intensity of the adverts should be hard, Radio is most likely not the primary thing that comes to mind when you are thinking of ways to advertise your business. Too many radio ads may alienate listeners. With the arrival of satellite TV came lowered production costs and the chance to reach smaller, more focused markets, making it a viable option for small to medium-size businesses as well. Products and services it allows you to really show the advantages of ownership. Nescafe showed how their product or service works and how it’s packaged so prospective customers will know what to look for at the point of sale.
• Low production costs.
• Low per commercial costs.
• Radio is flexible.
• Not seasonal.
• Good suburban coverage.
Radio advertising is relatively cheap compared to print or television advertising, Production costs are lower, and you can rent a cabin sound for a couple of hours to make an announcement passable through the radio. You additionally need to pay less to promote time to achieve indistinguishable number of individuals from you would with a TV or print advertisement.
• No pictures
• Information isn’t retrievable.
• You can’t go back.
• The audience is divided.
• Lots of commercials in a row.
• Lack of permanence
• Half of the advert
If your ad shows up immediately after a hit song, bravo. But what if comes amid expanded block ads – ads that direct listeners to change the station after a couple of minutes?
• TV reaches a much larger audience than local newspapers and radio stations, and it does so during a short period of time.
• Grabs attention.
• It enables you to pass on your message with sight, sound, and movement.
• It gives you an opportunity to be creative and attach a personality to your business, which can be particularly effective for small businesses that rely on repeat customers
• Production techniques make commercials memorable
• Fosters emotions and empathy. You determine how you want your audience to react, smile, laugh, cry, and take action.
• Changes can be difficult and costly. How difficult it can be to make improvements. While with newspaper advertising, updating sale pricing or a special offer is often as simple as swapping out a coupon, with television advertising it implies updating your script and reshooting the whole advertisement, which costs extra cash. It’s difficult to pick up action in the middle of an ad and to come away with the same feel of the ad as the first time.
• It can be hard to successfully target your core audience with television advertising, in spite of the fact that there are a couple of best practices that can help.
• Expensive and high production costs.
• Time shifting
• TV is seasonal.
5.0 “Coffee for Egyptian Students”:
Nescafe Egypt hit of “Coffee for Egyptian Students” campaign was addressing the ultimate confusion between the two generations. There are many things that we don’t necessarily agree on with our parents and relatives. The idea revolves around revamping the 3in1 sachets with characters representing over 28 majors; not only that but Nescafe creates 3 anthems for 3 of the most popular majors, targeting the student market segment in Egypt. It will always be the number one support system for university students.
With limited locations and using only flags on selected roads of the city, the ads feature the 3in1 individual sachet with cartoon artwork that represents students from varied college degrees.
The campaign also used booths in collages to encourage the students to buy the packages which has their major description written on, they also made a small section in their booths for students to take photos holding Nescafe’s red mugs with their major written on it, that way helped Nescafe increase their sales by relying on their consumers as their marketers.
The product itself reduced wastage from production using the 3in1 sachets.
By July, 2011 the product was implemented and helped prevent an estimated 1.4 tons of laminate losses annually.
The campaign succeeded in bringing back the nostalgia in the form of something tangible
Nescafe succeeded in implementing their product in its consumers’ routine, which is why, to some people, there’s no alternative to Nescafe and it’s become a product people always keep stocked at home or at work.. Especially in a busy life where people long for a good cup of coffee but can’t afford to lose time or exert effort. That’s where Nescafe’s 3 in 1 product succeeds
Nescafe’s instant coffee blend is loved by millions when a cup of coffee is needed between meetings or to pull an all-nighter they give people the short break they deserve along with an energy boost, especially for students when it comes to studying. The social media campaign played a big role in improving sales , Instagram and Facebook proved that they were the right platforms to target the right audience bring new customers and increase the buying frequency of existing customers.
7.0 Threats and weaknesses:
• Intense competition from other competitors’ campaigns. Indirect competition like Tea and other beverages takes a lot of market share from Nescafe.
• Price war between competitors.
• Cannibalizing: Nescafe’s other product lines are eating up some of Nescafe’s 3in1 Sales (Nescafe’s gold, gold blend, Nescafe’s express, etc.)
• Health consciousness: People who are more considerate about health they tend to move away from caffeine drinks. It has been claimed that caffeine is a central nervous system and metabolic stimulant and it has physically and psychological effect on people if consuming too much; and this can be found in coffee, thus, it may cause a decrease in consumption.
• The taste of coffee is not good especially in the 3in1 product which can be solved by quality improvement of coffee beans used.
• Weak flavors (caramel, chocolate) that need enhancement.
• The threat that competitors could copy the campaign idea.
• More customer engagement using social media and listening to customers’ requests about flavors they would like to have.
• The brand could position itself as a huge student supporter by sponsoring students’ projects.
• Redesign the advertisement to appeal to and engage larger groups.
• Readjust the product to appeal to elders.(i.e. Decaf )
• Conducting surveys about the product itself and how they can improve it.
• Planning health awareness related events to offset the way people view Nescafe’s coffee as an unhealthy product.
The 3in1 campaign was a huge success among students and the young workforce. The success of the product lies in the organization and coordination of 4ps, Nescafe attracts customers by the brand name, product packaging and advertisements, the promotion activities done by Nescafe covers all means of promotion tools like online advertisements, television, radio, social media etc, through the publicity campaign they are able to improve their brand name into a higher level and now, they’re the top coffee manufacturer in the world. The result of the campaign was an increase in sales and customer engagement as well as customer loyalty and improved the customer’s experience.