Marketing Research

Research Report on
“Nescafe - Mild”
Presented By
 Our Client Nestle India
approached us to do a
market research on their
recently launched
product Nescafe – Mild.
They wanted a detailed
description about the
consumers attitude
towards the product.

The reasons for the

survey will be explained
as we move ahead.
…A new direction to your business
 Our Client
Nestle India
§ Nestle India is a subsidiary of Nestle S. A. Switzerland.

§ Nestlé’s relationship with India dates back to 1912, when it began trading as The
Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and
selling finished products in the Indian market.

§ After India’s independence in 1947, the economic policies of the Indian

Government emphazised the need for local production.

§ Nestle set up its first factory in 1961 at Moga, Punjab to develop milk economy.
§ Nestlé India manufactures
products of truly international
quality under internationally famous
brand names such as NESCAFÉ,
MAGGI, MILKYBAR, MILO, KIT
KAT, etc.

§ Nestle has its head office at

Gurgaon, Haryana and its factories
located in Tamil Nadu, Karnataka,
Goa, etc.
 Nestlé's Nescafe
§ Beginnings of NESCAFE

§ NESCAFÉ was first introduced in Switzerland, on April 1st, 1938.

§ In India, Nestle was incorporated at New Delhi on 28th March, 1959.

§ Two years later they invented a new technology to capture more ‘aroma’ and
‘flavour’ from every single coffee bean.

§ In 1994 the 'full aroma' process was invented

to make the unique quality and character of
NESCAFÉ even better.
Variants of Nescafe

Nescafe Gold Nescafe Classic Nescafe Espresso

Nescafe Sunrise Nestle Milo Nescafe Cappuccino

 Product
Nescafe - Mild
§ Nestle Co. recently launched a new coffee product named Nescafe – Mild

§ It was introduced in July, 2007 and was successful only in the first two months.

§ ''''Nescafe Mild'''‘ was targeted specifically at the mass market of tea drinkers. It has
light roasted flavour

§ It was available in 1 Re. sachets. Also available in 100 and 500 g.packs

§ Its tagline is, “ek cup baaton bhara…..”

 Market Research on Nescafe - Mild
Research Methodology

• Why to undertake research?

Research Problem
§ To find out why the Brand failed?
§ The reasons for declining sales

Research Objectives
§ To create awareness about the product.
§ To know consumers(users & non-users) reactions towards the product.
§ To know future expectations.
• Limitations: The survey was restricted to only 70 people, including male and
female.
• Sample Size: The sample size consisted of 70 respondents.
• Sample Frame: All the questionnaires were filled within 2 weeks.
• Place of survey: Bandra to Borivali
• Targeted Population: Users, Non-users, adults, working people and
housewives.
• Age Group: 18 – 40 years.
• Method of Data Collection:

 Primary Source – Survey was conducted with help of a Questionnaire.

The questions were based on Consumer’s buying patterns, Brand Awareness,
Brand Preference, General Information.

 Secondary Data – Internet

It was observed that an Exploratory as well as Descriptive research would

be required.
Break- up of Sample Size

 We targeted both the sexes of population as coffee is

an FMCG product which is preferred by all age groups.

 Since it’s the woman who goes for shopping for the
household items, here they are a majority.

 We surveyed 38 females (in nos.) and 32 males

46%

54% Male
Female
 Brand Awareness 120%

98%
100% 92%

80%
60%
60%

40%
28%
20%
20%

0%
Nescafe Bru Sunrise MR Coffee TATA Tetley

90% 87%
80% 67%
70%
60%
50%
40%
40% 24%
30%
20%
10%
0%
Nescafe Classic Nescafe Milo Nescafe Dolce Nescafe
Gusto Sunrise
Brand Awareness(nescafe)
 Aware of Nescafe Mild

48%
52%

Yes

No

1%

12% Media

4% Family
31%
Friends, colleagues
Relatives

Source of Awareness
 Frequency of usage 40%
40% 33%
35%
30% 24%
25%
20%
15%
10% 3%
5%
0%
Twice in a day Thrice in a day Twice a week Once a day

50% 50%
48%
45%
40%
35%
30%
25% 17%
20%
10%
15%
10%
5%
0%
Quality Taste Feels relaxing
& energetic
Any other
Reason to drink coffee
 Brand Preference
11%

11%

78%

57%
60%
Nescafe Bru Sunrise
50%

40%

30%

20% 10%
6%
10% 1%

0%
Nescafe Classic Nescafe Mild Nescafe Milo Nescafe
Sunrise Brand Preference(Nescafe)
 Users & Non-users of Mild

20%

80%
Yes
No

50% 50%
45%
40% 30%
35%
30% 19%
25%
20%
15%
10% 1%
5%
0%
Strong Coffee Cold over Espresso or hot Mild/Light
over others strong choclate Preferred coffee types
Most important reason for using the type of coffee specified before

58%
60%
50%
40%
30% 18%
20%
10% 10%
4%
10%
0%
 Analysis
What went wrong with the product?

Promotion

Advertisements
No outdoor publicity

Place

Campaigns outside Mumbai

Distribution Strategy
Sampling of Nescafe – Mild at Nasik, Pune, Aurangabad
Nescafe opened small shops in college campus at Nagpur
 Targeting and Focusing small towns & cities.
 Introduce the product in Rural Areas.
 Publicize the product
 Distribute free sachets
 Conduct more campaigns in Mumbai
 Construct Nescafe stalls in College canteens
 Coffee Business Seminars