Presented by: Group 7

Gaurav Bhattacherjee (B13026)

Krishnan Sethumadhavan (B13029)
Neha Sanghvi (B13037)
Ram Mohan Paramasivam (B13046)
Sagar Kumar (B13051)
Marketing Management 2 Term Project
On
Coffee
Agenda
Introduction
Consumer & B2B market size
Prominent coffee manufacturing companies & their brands
Prominent Brands In Each Segments
Brand Positioning: Nestle Nescafe vs its Competition
SWOT Analysis
Suggestions
Logo of Different Brands
Bibliography
Introduction
India is the 6th largest producer of coffee in the world. Around 3 % of the world
coffee production
Karnataka, Kerala and Tamilnadu contributes about 99% of total coffee produced in
India
In the annual output of 3,00,000 tons, domestic consumption is only one third (i.e.
around 100,000 tons)
Per capita consumption of coffee is around 85 grams in our country
As per 2011 data, Indian coffee market is estimated at $230 million, or about 1,400
crore.
It is estimated to grow at about 13-14% a year over the next five years.
It is forecasted that the coffee market in India will cross INR 5600 Crore by 2017.
Airlines
Educational Institutions
Defense canteens
Multiplexes
Hospitals




B2B,
32%
B2C,
68%
B2B market include supply in:-
Hotels
Restaurants
Caf Chains
Corporates
IRCTC
Messes
The B2B market size for coffee in India is 32% and rest of
the 68% comes from B2C
Nestl and Unilever together have the market share of around 67% in which Nestle
accounts for 36% and Unilever accounts for 31%. And rest of the 23% market share is
held by TATA COFFEE, AMALGAMATED BEAN COFFEE TRADING CO LTD, NARASUS, LEO
and other local players
NESTLE
Nescafe Classic
Nescafe Sunrise
Nescafe Sunrise Premium
Nescafe MFC
Nescafe Cappuccino
Nescafe ChocoMocha
Nescafe Vanilla Latte
TATA COFFEE
Green Coffee
Spray Dried Coffee
Agglomerated
Freeze Dried
HUL
BRU Gold
BRU Exotica
BRU Lite
BRU Roast Ground
BRU Select
BRU Ice Cappuccino
BRU Cappuccino Range
BRU Instant
AMALGAMATED BEAN COFFEE TRADING CO LTD
Fresh N Ground
Coffee Day Perfect (Filtered coffee)
NARASUS
Udhayam
LEO
LEO (Filter coffee)
Segmentation by Price
High Priced Brands







Nestle
Nescafe
Price of
100 gm
HUL BRU
Price of
100 gm
Gold 499.00 Exotica 529.00
Classis 210.00 Gold 199.00
Sunrise 155.00 Lite 130.00
Sunrise
Premium
146.00 Instant 174.00
Average
Price
252.50
Average
Price
258.00

Price of
100 gm

Price of
100 gm
AVT
Premium
Coffee
33.00
Green Label
Coffee
40.00
Mid Priced Brands
Narasus
Price of
100 gm
Coffee
Day
Price of
100 gm
Leo
Coffee
Price of
100 gm
Udhayam
Filter
Coffee
45.00 Arabicah 106
Leo
House
Blend
74.00
Narasus
Extra
Strong
Coffee
215.00 Charge 106
Leo
madras
blend
65.00
Narasus
Peabery
98.00 Perfect 106
Leo Top
Blend
92.00

Leo Pure
Top
Blend
74.00
Average
Price
119.33
Average
Price
106
Average
Price
76.25
Low Priced Brands
Segmentation by Level of Caffeine

Light Coffee
Bru lite, Bru instant, Bru select, Bru
cappaccino, Nescafe cappaccino,
Nescafe vanilla latte, Nescafe sunrise
premium
Strong coffee
Bru gold, Bru exotica, Nescafe alta rica,
Nescafe cap colombie, Narasus
udhayam filter coffee, Narasus Extra
Strong Coffee,Narasus Peabery, Leo
House Blend,Leo madras blend, Leo
Top Blend, Leo Pure Top Blend
Decaffeinated Coffee
Nescafe original decaff, Nescafe gold
blend decaff
Segmentation by Product Type
1. Instant Coffee
Prominent Brands: Nestle Nescafe, HUL BRU and Tata Coffee

2. Filtered coffee
Prominent Brands: Amalgamated Bean Coffee Trading Co Ltd, Leo Coffee , AVT Premium
Coffee and Green Label Coffee

Segmentation by SKU
1. Sachet
Nescafe, Bru 3 gms, 8 gms, 50 gms, 100 gms, 200 gms and 500 gms
Narasus filter coffee, Leo filter coffee, AVT premium 100 gms, 200 gms and 500 gms
2. Jar
Nescafe, Bru 50 gms, 100 gms, 200 gms and 500 gms
Narasus filter coffee, Leo filter coffee, AVT premium 100 gms, 200 gms and 500 gms
Segmentation by Geography
South India
Prominent Brands: Amalgamated Bean Coffee Trading Co Ltd, Leo Coffee, AVT
Premium Coffee and Green Label Coffee
Rest of the country
Prominent Brands: Nestle Nescafe and HUL BRU
Consumer Buying Behaviour
Rural Sachets, small SKUs like 5 gms and 10 gms
Urban Large size sachets and jar like 100 gms, 200 gms, 500 gms
Prominent Brands: Nestle Nescafe and HUL BRU
Segmentation by Price:
In price category BRU is the main competitor of Nescafe.
Both operate in high price segment.
Both BRU and Nescafe have their products starting from rupee 1, so even though they belong to
high price segment they are trying to cater to the needs of low income group.
Both Nescafe and BRU portray that they are high priced products through their ads.
Their ads are themed around the upper middle class youth.
Segmentation by Product Type
Instant coffee: Bru, Nescafe, Tata Coffee.
Instant coffee mainly concentrates on the attributes of fast and easy to make and convenient.
Filter coffee: Leo coffee, Tata Coffee's Mr Bean, Narasus coffee, Coffee Day Perfect.
Filter coffee concentrates more on taste and culture.
Unlike instant coffee, making filter coffee is a time consuming process.
Local players are involved more in Filter coffee segment.
Brand Positioning: Nestle Nescafe vs its Competition
Continued
Segmentation by Geography
North: Nescafe and Bru
Nescafe and BRU revolve around the theme of freshness and youth.
In Northern region, instant coffee is consumed in higher quantities.
South: Narasus coffee, Leo coffee, AVT, Green label.
Narasus and Leo coffee mainly concentrates on culture and tradition of south India.
The southern part of the country consumes more amount of coffee and prefers hard and roasted
coffee.
Segmentation by SKU:
Nescafe and Bru are trying to cater to low income group people by introducing sachets from as
low quantity as 3 gms.
A Bru ad also wanted to project that the amount of coffee one get from a Re.1 pack is more.
Most of the local brands have not introduced low SKU packs.
Brand Positioning: Nestle Nescafe vs its competition
Continued
Segmentation by Level of Caffeine (Nescafe & Bru):
Since Caffeine is considered to be unhealthy, Nescafe doesnt highlight the caffeine content in their
ads whereas in filter coffee caffeine content is mostly shown in ads.
Instant coffee contains 60% coffee and 40% chicory whereas filtered coffee contains 7080%
and chicory 3020%





B2B centric brands:
In terms of B2B institutional, Major coffee brands are Nescafe, Bru and Tata Coffee.
Nescafes B2B sales is mostly concentrated into coffee vending machines.
Tata Coffees B2B sales is mostly concentrated in Tata group of hotels and caf chains.

Coffee Size of cup Caffeine content
Instant 125 ml 50-60 mg
Filter coffee 125 ml 60-100 mg
SWOT Analysis
STRENGTHS:
Brand Name
Nestl, which is the parent brand of Nescaf is a Swiss multinational food and beverage company
headquartered in Vevey, Switzerland is the largest food company in the world by revenues. Nestl
took the risk of entering the Indian market dominated by Tea drinkers only because of the
strength they saw in their brand name.
Entered in Indian market with the tagline Coffee with life in it, Ready in just 5 seconds.
Positioning
Name : Nescaf is a combination of Nestl and Caf. Nes means miracle and Caf means
coffee in Portuguese that positioned the brand as Miracle with Coffee.
Nescaf positioned itself more than a coffee manufacturer and tried to portray its users as
people who seek to be recharged, people who want to let others know that they have
important stations in life, those who want to start their day with something positive, etc.
Nescaf promoted its beverages as ideal for all occasions such as breakfast, midday, evening,
night (when you want to stay awake), important days such as Valentines Day, etc.

SWOT Analysis Continued
Creativity
Launched Instant Coffee in 1963 in a market where Indian coffee lovers were stuck with the idea that
coffee is something that takes minute attention to prepare and cannot be instant.
The first company to launch Coffee Machines for SMEs and Corporates in India.
Redefined Coffee Blending.
Creative Positioning by making it more than coffee with the Our look beyond the cup initiative.
Availability
Available in more than 10 variants like Nescaf classic, Gold, Alta Rica etc.
Available in various price ranges starting from Re.1/- sachets that makes coffee available for almost
anyone.
Promotion
Nescafs red mug and jingle pa parara pa ra ra adds to brand value and unique identity to its products.
Nescaf chose celebrities like Deepika Padukone, Karan Johar, Purab Kohli as its ambassadors when they
were at the peak of their Carrier.
SWOT Analysis Continued
WEAKNESSES:
India, still a country dominated by Tea drinkers.
Coffee not being a healthy drink is avoided by health conscious people
Promotions are limited for various varieties as there as many products which are still
unknown to people, which portrays Nescaf as a sole brand.
Still unable/did not enter the filter coffee segment.
90% of coffee consumed in India is in three south Indian states dominated by filter coffee
and local players.
Have to manage a huge portfolio.
The company has a complex supply chain management and the main issue for Nescaf
India is traceability. The food industry requires high standards of hygiene, quality of
edible inputs and personnel. The fragmented nature of the Indian market place
complicates things more.
SWOT Analysis Continued
OPPORTUNITIES:
Can enter the filter coffee segment as the brand value is very strong all over the world.
B2B market can be expanded by going beyond coffee machines in theatres & corporate.
Highlight the health benefits of coffee.
Target House wives and old aged people as coffee consumers are high in this segment.
Focus on rural areas as their promotion is subject to urban lifestyle.
Increase the number of Caf Nescaf outlets as average bill value in cities is app Rs(250-300)
Can widen the cake by focussing more on the caf outlets as Caf coffee day and Barista are major
market leaders in that segment.
THREATS:
Bru is a big threat as Bru is second in most of the segments.
Bru, being an HUL product has a very strong distribution in rural areas.
Coffee not being a health drink cannot target students below the age of 14.
Private labels can cause trouble as coffee is still treated as commodity in most of the rural areas.
Other hot beverages like health drinks can draw source of business from coffee drinkers by
promoting health consciousness.
Targeting only youth can prove to be a threat.
Nescafe can venture into Filtered Coffee market and it should be in south India first
They could launch a preserved filtered brew of filtered coffee beans as a new
product to make filtered coffee instantly
Launch a new product NesNico nicotine gum to attract smokers who want to quit
smoking
They can also launch Coffee flavored candy, health drinks, soft drink under the
Nescafe brand.
They can give small sized SKUs of premium and less aware brands as freebees to
strengthen these brands.
Nescafe can change the way of promotion to attract new consumers

Suggestions
Nestle Nescafe
HUL Bru
TATA Coffee
Narasus Coffee
Leo Coffee
Green Label Coffee
AVT Premium Coffee
Bibliography
www.indiacoffee.org
www.casestudyinc.com
www.coffee.wikia.com
www.timesofindia.indiatimes.com
www.slideshare.net
www.techsciresearch.com
www.youtube.com
Thank You