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Module Code : - DipBA01

Module Title : - The Global Business Environment
Module Leader : - Miss Ajjareel Limpamont
Module Lecturer : - Miss Shilpi Sharma
Submission Date : -
Submitted By : - “Group 11”
Diksha Karki <NP02A150011>
Amit Kumar Kamat <NP02A150016>
Abhishek Tamang <NP02S160002>
Satish Chaudhary <NP02A150031>
Poona Thakur <NP02S160011>
Submitted to : - RTE Department

Acknowledgement

The completion of this report may not be successful without the help and support of
those people who have contributed in preparing this report. Their contribution are
honestly appreciate and gratefully acknowledged.

Working on this report “Nescafe coffee” was a source of immense knowledge to me.
We would like to express our sincere gratitude to Miss. Ajjareel Limpamont, who gave
us an opportunity to know about the marketing world. We would like to express our
profound thanks to our module lecturer Miss. Shilpi Sharma for her guidance and
valuable support throughout this report. We would like to acknowledge with a deep
thanks to the encouragement and inspiration received from our team mates and
faculty members who co-operated well to accomplish our report. We would also like to
thank local people of Biratnagar who supported us by filling our survey questionnaires.

All of above, I would like to thank members of MERRYLAND COLLEGE BIRATNAGAR

who gave us field and opportunity as well as supported and guidance to accomplish this
report.

THANK YOU
Table of contents
Executive Summary
Chapter 1: Nescafe and its benefits

 Introduction

The traditional background of coffee reflects its

rich history. Henri Nestle introduced the first
infant baby food in 1867 to save the life of his
friend infant baby who couldn't be breastfed.
From that time, Nestle Company has considered
increasing on a tradition of providing a nutritious
product.

[Link]

After 8 years of research in Swiss lab, max [Link]

2953
Mergenthaler and his group introduced Nescafe
at 1930, in Brazil when his group was requested
to create high quality coffee, which could be set up by basically pouring hot water by
retaining its original fragrance. The final product was called Nescafe, combination of
“Nes” and “Café” which together means “Magical Coffee”. But, it was not an instant
success in Europe due to world war-II, then it was quickly sent out to different nations
like Great Britain, France and the U.S.A. It later turned in to an enormous
accomplishment in the United States and its fame spread further to Europe. With over
80 years of involvement with agriculturists around the globe in selecting best bean,
blending, roasting and making soluble coffee, Nescafe has come a long way consistent
with their legacy to support their work. The value, fragrance, essence, natural goodness
and accessibility of Nescafe can be enjoyed today in different formats by consumers
around the world. [Link]

Key benefits of Nescafe coffee:

 Coffee can help you live longer.

 Coffee is a great source of antioxidants.
 Coffee makes you happier and fights off depression.
 Coffee improves physical performance.
 Coffee may reduce the risk of certain types of cancer.
[Link]
Micro environment:
 The company:
Nescafe operates beneath the brand name of its parent company “Nestle”. Nescafe is
not manufactured in Nepal so it is imported from its neighboring country that is India.
India supplies Nescafe to neighborhood merchants who offer to the suppliers presented
here in Nepal. Since 1938, Nescafe has proved to become the world’s leading coffee
brand, which is available in over 180 countries. [Link]

 Employees:
Nescafe is working with more than 1million farmers who are their foremost employee, to
make sure for their consumer that they can always find their Nescafe at a reasonable
price. Nescafe has also come with the concept of rewarding their employees with their
favorite specialized coffee, as sharing a quality break help their employees to reduce
their work stress so that they can perform their work commendably.
[Link]
impression/reward-your-employees

 Customers:
Nescafe has come up with different flavors like:
Nescafe Classic, Nescafe Gold, Nescafe Latte,
Nescafe Cappuccino, Nescafe Xpress and many
more, to reach their customer demand. Nescafe
served 4,000 cups of coffee each second around the
world. Nescafe frequently conducts customer
[Link]
357117933
research, to help them understand how to match its coffee to consumers’ taste,
preference and habits.

 Competitors:

Nescafe has an immense rivalry with different refreshments like tea and cold drink pops.
Being the country that manufacture tea leaves itself, most individuals in Nepal prefer
tea, so it can be a tremendous danger to Nescafe. Alternate contenders to Nescafe
present in Nepal are Bru, Mac coffee, khao shong, cafe Pele, which are additionally
easily and promptly accessible in market.

SWOT Analysis:

 Strengths [Link]
[Link]
 Strong brand name as it is associated with
Nestle.
 Strong marketing campaigns and skilled
workforce monetary assistance provided.
 Product are diversified into many flavors.
 Good quality and high growth rate.
 Health conscious products are made keeping [Link]
[Link]
nutritious values in mind.

 Weakness
 People avoid caffeine if they are health conscious.
 Small business units.
 Lots of sales and indirect taxes.

 Opportunities
 Global market.
 Growth rate and profitability.
 Income level is at a constant increase.
 Expand business to rural areas.
 They can simplify their taxing schemes.
 They can reduce their price according to area.

 Threats
 Competitors in global market.
 Tax changes and increase in rates of interest.
 Growing competition and low profitability.
 Many people avoid coffee due to their health reasons.
 Change in climate.

Macro environment:
 Political Environment
Political environment is one of the most important factor for any product to be fixed in
any country. As the political state of Nepal is unstable, and because of frequent riots
and strike, it is exceptionally challenging for any dealer and supplier to sale and
distribute Nescafe in Nepal.

 Economic Environment:
As the majority of the family in Nepal belongs to middle class or middle lower class
family, they generally prefer tea instead of coffee. Due to the higher price of coffee
Individuals cannot afford it. Therefore, Nescafe has come up with different sizes so that
every individual can afford it.

 Social Environment:
Many parts of Nepal are prevalently known just for tea. As Nepal itself is assembling
tea, common people in Nepal are mostly attracted towards it. But, according to its
commitment, to support farmer by providing them education in better ways of practicing
farming and agriculture, improve its impact on environment by reducing pollution and
wastage is more than just providing quality and taste to the people but it’s the
responsibility that Nescafe is providing towards the society.

Chapter-2:
Marketing Strategy and Analysis:

1. Segmentation:

The segmentation of Nescafe is undifferentiated. As per the consumers choice there is

no need of segmenting its market. It can be consumed by every people from any
background. Hence, Nescafe has reached to every age group, families, region, and
gender and to the people of different income classes.

2. Target:
Nescafe mainly target the coffee drinker who are
independent and wants to make coffee without any
help. For those working peoples who want instant
coffee before leaving for work and late night workers
who wants stimulant in the form of caffeine to stay
awake. Having a focus on the classic taste of coffee,

[Link]
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it targeted the premium urban consumers aged 17-30 and professional aged 20-30. The
main focus of Nescafe is youngster who are sold Nescafe with the tagline “Coffee at its
best”.

3. Positioning:

Nescafe being a product of nestle has positioned itself as one of the world’s leading
coffee brand. It’s positioning is “1 coffee cup, 1 good feeling”. All the ads of Nescafe had
emotional attachment to share love and fellowship between peoples. Nescafe Classic is
positioned as “100% Pure Instant Coffee”. (Management [Link]). Every
promotional advertisement of Nescafe demonstration ‘sharing a cup of coffee share
happiness’. Nescafe coffee in the Red Nescafe mug is another symbol of brand
Nescafe which mark it standard than other.

4. Differentiation:

Nescafe is different from any other coffee brand

because of its delicious taste and the value of its
parental brand. The packaging is attractive in a
blend of red and coffee color with the front picture
of coffee beans. The ads shown by Nescafe are
different because it touches the emotional aspect
of the people and make people realize that
happiness is always with friends and our beloved. [Link]
hives/nescafe_fb_love_your_new_accent.png
The unique selling point of Nescafe is “100% pure
instant coffee.”

 Marketing Mix of Nescafe Coffee:

Nescafe has its hub in India which is one of the basic distribution channels for Asia-
Pacific region including Nepal. The 4 P’s of marketing mix shows that Nescafe has
made a global appeal through its effective marketing.

1. Product:
Over the years, Nescafe is considered as the market leader of coffee market which is
also very popular in Nepal. The taste differs according to the high quality coffee having
good taste and natural aroma. However, Nescafe has launch its various products like
Nescafe Original, Nescafe Classic, Nescafe Gold, Nescafe Blend, Nescafe Black Gold,
Nescafe Classico, Nescafe Decaff, Nescafe Espresso and Nescafe Latte, but only some
products like Nescafe classic, Nescafe original and Nescafe Gold are available in
Biratnagar despite of having different varieties all over the world. Nescafe is available in
all the sizes: small, medium and large. It is easily affordable by every income class
individual, as it is available in jars and even in small pouches.

2. Price:
Nestle has implemented the strategy of non-price competition. It maintain labor cost and
consider mass production to reduce the price and make it affordable for common
people, it also sustain uniform price for its entire product which ensures that none of its
traders take the advantage of rising prices. The price of the different brand of Nescafe
depends upon the making style of that particular product. Nescafe has different price for
Nepal which ranges like:
0.5 gram pouch- NPR. 10
25gm jar – NPR. 105
50gm jar – NPR. 200
100gm jar – NPR. 430
500gm pouch – NPR. 1550

3. Place:
Nescafe is affordable by every background of individuals, so it is accessible in every
grocery shops but yet it is not available in some rural areas of Nepal. Youngster mostly
prefers coffee to show off the rich attitude among their friends so it is commonly
available in cafe and restaurant. It is the ruling coffee brand in Biratnagar. Thus, for the
mostly every family consumes Nescafe in their kitchen.

4. Promotion:
Nescafe to reach to its success has done realistic advertising with an emotional aspect.
Adding to it, nestle has an another useful tool which is widely known “Nescafe tune”,
which is one of the best advertising campaign launched about 20 years ago. Now
Nescafe has a strong position in the instant coffee industry because of its significant
portion of promotion involving the uses of advertising campaigns, newspapers, internet,
television and public relation activity.
 [Link]

Chapter-3
Marketing Research
Objective:
The main objective of conducting our market research was to know the wider
perspective including the elements of the marketing mix and wider marketing
environment comprising challenger, seller and distributive environments. Marketing
survey research benefited us with reliable and useable data of Nescafe in context of
Biratnagar, Nepal.

Research Tools:
For our marketing research, we have applied both primary research as well as
secondary research, to find out the relevant information about Nescafe in Biratnagar.
We carried our primary research in terms of Survey questionnaire, interview and focus
group which is a commonly used method of collecting information about a population of
interested peoples towards Nescafe.

Primary research:
We used sample random method (SRM) and cluster sampling as Nescafe is consumed
by numerous numbers of people in Biratnagar. In addition we applied following two
types of research:
1. Quantitative research
 survey:
For quantitative research, we prepared a survey questionnaire, where we arranged a
survey with personal overview of 80 peoples and the other 20 individuals through the
online review form.
 Interview:
For interviewing, we communicated with the dealer and different retailers of Nescafe in
Biratnagar, which helped us to know the perception of individuals towards Nescafe. We
got detailed information about the market segmentation, competitor and customer
satisfaction of Nescafe in Biratnagar.

2. Qualitative research
 Focus group:

Secondary research:

We started with secondary research by going through different online journals, official
website of Nescafe, books and social media, where we got the chance to, know about
the outline of Nescafe coffee.

Chapter-4
Analysis of Market Research and Recommendation

We had conducted survey of 100 people from different age group, gender and
background. With the help of our survey questionnaire and online survey, we have
come to the following analysis of Nescafe in the Nepalese market.

1. [Link] intro
2.[Link]
[Link] intro
3. [Link] intro
4. [Link] benefits
Micro
5. Company [Link]
6. Employee [Link]
impression/reward-your-employees
7. [Link] customers

8. Swot [Link]

9. [Link] Pest
10. [Link] 4p