A MINOR REPORT
ON
Factors considered while purchasing FMCG product.

Submitted to
Sir Hamid Nawaz

Submitted by
Zohaib Sajid 006
Omer Khalid 005
Ali Qureshi 003

Nescafe
Topics & subtopics.    Page
Number

Executive summary 01

Introduction 02

History of Nescafé 03

Company Overview 04

Target Market 04

Positioning 04

Promotional Strategy

Market Research of Nescafé

Survey

Adding value to the product

Conclusions

References

Appendix
Executive Summary : Nestle is undoubtedly one of the capable sustenance in Pakistan as
well as the whole world. The employees at Nestle have finagled tp hold their standards to the
most contributed level conceivable the market. They ensure that the results of Nestle are
unquestionably the BEST TO USE. Nestle has a variety of items to offer and they all are the best
of their sorts.

Nescafe is a brand of coffee made by Nestle. It comes in many different forms. The name is a
portmanteau of the words “Nestle and Café”. Nestle first introduced their flagship coffee brand
in Switzerland on 1 April 1938. To date, it is a global household favorite . making it to the top
spot in Interbrand ranking of best Swiss brands in 2012.

Introduction : In 1929, Nestlé was challenged to help preserve the surplus coffee beans in
Brazil that resulted from the Wall Street Crash. And Nestlé accepted the challenge.

Our coffee specialist, Max Morgenthaler, was on a mission to create a delicious cup of coffee
simply by adding water. Max and his team worked hard to find a new way to make instant coffee
that would retain the coffee’s natural flavor. In 1938, they found the answer, and NESCAFÉ was
born. Named by using the first three letters in Nestlé and suffixing it with ‘café’, NESCAFÉ
became the new name in coffee.

When we first launched NESCAFÉ in Switzerland on 1 April 1938, it was predicted to be a huge
success. But then WWII started in 1939. During the war, NESCAFÉ was a staple in the food
rations of the US forces, and they loved it. Quick, easy and delicious coffee.

After the war, NESCAFÉ was exported to France, Great Britain and the US, and the American
troops became our brand ambassadors, spreading their love of NESCAFÉ. 

During the rest of the 1940s, the popularity of NESCAFÉ grew. Today, NESCAFÉ is enjoyed in over
180 countries and has become the world’s favorite coffee.

To The Moon and Back.

In 1969, NESCAFÉ joined the crew of Apollo 11, Neil Armstrong, Buzz Aldrin and Michael Collins,
in their pioneering mission. The first coffee to land on the moon.

VALUE ADDITION: Today, a cup of coffee can be found on every house worldwide and with
different kinds of coffee, such as espresso, cappuccino and latte. 'value' is the way in which the
consumer views an organization’s product in comparison with competitive offerings. There are
so many kinds of coffee worldwide, but the most famous one is the instant coffee. and one of
the famous brands on that is Nescafe.

Nescafe is one of the largest brands in instant coffee made in the world made by Nestle.

Nescafe has more than 5,500 items under the brand. It launched its Gold Mix Barista Style in
2013, which targeted to the customers who wanted to make instant coffee at home. There are
in more than 5,000 products under the Nescafe family.

The brand has spread in more than 180 nations and 6,000 cups are consumed by the consumers
each second in those countries.

Nescafé, the world’s leading espresso brand, was positioned third among the best 100
megabrands and has made a mark for itself among the top rankings.
The worldwide statistical surveying organization, Euromonitor listed the best 100 megabrands
revealing the world’s driving FMCG brands by their retail business Euromonitor listed Nescafé’s
retail sales and placed the brand in the range of 10 and 15 billion USD in 2017. The Asia Pacific
was the main market for the brand.

Nescafé coffee is sold in more than 190 nations in the world.

History of Nescafé: Back in the year 1930, the coffee giant was formed and it started off
from an idea. Nestlé, a leader in FMCG industry was asked to help in figuring out how to
increase the consumption of coffee and how to decrease the excess supply of coffee production
from Brazil by a group of Brazilian bankers.

The Initial Days

By the end of 1920, the cost of coffee was at absolute bottom and espresso was at times just
adequate to be utilized as fuel. The Brazilian financiers needed a famous coffee to be built up so
that it could be available at places where a cup of coffee is not available that easily.

From this, the concept of soluble coffee as blocks, or tablets started. This idea was meant to
support sales without hurting the conventional type of coffee usage and the end objective was
to make the coffee production famous and popular.

The Rise of Nescafe

Dr. Max Morgenthaler was involved in long seven years of research and development. Finally,
after his through research, Nescafé came into existence.

On 1 April 1938, Nescafé entered the global markets and was introduced to the global audience
to sale and consumption.

The World War II

During the World War II, Nescafé became the staple drink for the US military and it was from
that point on, the coffee brand gained immense popularity.

By the 1950s, Nescafé coffee became the go-to product for the rock and roll culture audience
who visited to the new bistros and cafes over the western world.
The Present Day

Today around 6,000 cups of Nescafé coffee are consumed by the consumers every second and
the brand has successfully penetrated the coffee market in more than 180 countries in the
world. Furthermore, every cup is loaded up with more than 75 years of the brand’s legacy .

Company Overview: In 1930 the Brazilian government approached Nestle to create a new
instant coffee that would give the consumer another option and at the same time increase the
dwindling coffee exports of Brazil. It took eight years but in 1938 Nestle introduced Nescafe.
Instant coffee was not a new idea; it was originally invented by a Japanese chemist named
Satori Kato in 1901 and had been marketed and sold by various companies with disappointing
results. Nescafe revolutionized the way instant coffee was made.

Target Market: The target markets of Nescafe are students, professionals and general people.
It's been hard to reach to illiterate or uneducated people as they still prefer the substitute of
Nescafe which is Tea.

Positioning: Nescafe uses product differentiation and image differentiation in

order to gain competitive advantages to build a position by providing superior value compare to
competitors. Nescafe has the biggest market share in instant coffee market with the features of
its products, quality levels, and the satisfaction that it gives to and trendy about Nescafe think it
makes them relax and happy.

 Promotional Strategy: Nescafe use different promotional strategies for different

countries or regions. Nescafé forms its own strategy to effectively target its audience and
generate sales for the growth of the company. Nescafe has its recognition for warmth,
exciting, friendly & energy; and Nescafe use these beneficial sights as promotions
throughout countries and regions.

Market research of Nescafé:

Research Objectives.
  To conduct a quantitative research we need a survey.

 To identify consumer's coffee drinking habits.

 To identify people's attitude towards Nescafe.

 To identify pricing demand of coffee lovers.

 To identify service activities of Nescafe.

 To identify satisfaction with Nescafe's positioning

Research Methodology:
Why to undertake research

 Research objectives

 To find the loophole of brand personality

 Sample Size: The sample size consisted of 106 respondents.

 Targeted Population: Users, Non-users, adults, working people