COFFEE ANALYSIS .pdf

COFFEE ANALYSIS Name: Vrunda Pakhadiwala Organization: Numerator Ind Pvt Ltd. Date: 23rd, Aug’24 Designation: Data Classification Associate OVERVIEW  Introduction to coffee analysis What is Nescafe ? What is Starbucks ? Consumers characteristics Consumers Preference Difference between two sh...

COFFEE ANALYSIS Name: Vrunda Pakhadiwala Organization: Numerator Ind Pvt Ltd. Date: 23rd, Aug’24 Designation: Data Classification Associate OVERVIEW  Introduction to coffee analysis What is Nescafe ? What is Starbucks ? Consumers characteristics Consumers Preference Difference between two shoppers: Nescafe and Starbucks Q&A BRIEF BACKGROUND OF THE COFFEE INDUSTRY India is among the top 10 coffee-producing countries, with about 3% of output in 2020. Indian coffee is one of the best coffee in the world due to its high quality and gets a high premium in the international market. India produces two types of coffee: ARABICA and ROBUSTA. Coffee is largely produced in southern part of India. Coffee was originally consumed in the Islamic world, as it was helped its consumers fast in the day and stay awake at night, during their festival celebration. Coffee is one of the world’s three most popular beverage in the world (along with water and tea). It has the highest sales n the world market for hot drinks.  WHAT IS NESCAFE ? Nescafe is a popular brand of instant coffee made by Nestle. It was first introduced in 1938 and has since become one of the most recognized coffee brands in the world. Nescafe offers a wide range of instant coffee products, including different roasts, flavours, and specialty blends, catering to various consumer preferences. Here are some key points about Nescafe. Instant Coffee: Nescafe is primarily known for its instant coffee, which is made by brewing coffee beans. Varieties: classic instant coffee, espresso, cappuccino, decaffeinated options, and flavoured. Global Presence: Nescafe is available in over 180 countries and is particularly popular in Europe, Asia, and Latin America. Brand Legacy: The brand name "Nescafe" is a combination of "Nestlé" and "cafe," reflecting its origins with the Nestle company.  WHAT IS STARBUCKS ? Starbucks is a globally recognized coffeehouse chain and one of the world's largest coffee brands. Founded in 1971 in Seattle, Washington, Starbucks has grown into an iconic brand synonymous with premium coffee and a café experience that has influenced coffee culture worldwide. Starbucks is more than just a coffee brand; it represents a lifestyle and a cultural phenomenon that has reshaped how people around the world experience coffee. Key Points About Starbucks: Global Presence: Starbucks operates over 34,000 stores in more than 80 countries, making it one of the most widespread coffeehouse brands globally. Cafe Experience: A key part of Starbucks' brand is the "third place" concept space between home and work where customers can relax, socialize, or work. Cultural Influence: Starbucks has had a significant impact on global coffee culture, introducing many people to specialty coffee drinks and popularizing concepts like the "latte" and "Frappuccino.“ Who are the Nescafe Buyers and what are their characteristics ? NESCAFE 's primary target market are coffee drinkers, specifically those whom are looking for a quick solution to quality coffee. Known for its affordability and convenience, here are some specified buyers. i.e. Traditional demographic, subscription membership focused, life stages/lifestyle. And that are define by their characteristics by there age, gender, education, employment, ethnicity, household size, income, marital status, and amazon prime membership as well. % of Nescafe Shoppers 70.0% 60.2% 60.0% 44.2% 47.8% 49.1% 50.0% 32.4% 32.7% 34.9% 40.0% 26.3% 27.1% 30.0% 20.0% 10.0% 0.0% Millennials [1982- Gen X [1965- Middle Income Married 2 Prime White/Caucasian Employed Full- (Under $40k) ($40k-$125k) Low Income 1981] Time 1995] Household Ethnicity Age Age Income Income Marital Employment Amazon Size (Generation) (Generation) Bucket Bucket Status Prime Who are the Starbucks Buyers and what are their characteristics ? Starbucks attracts a diverse customer base, but there are several key demographics and characteristics that define its primary buyers. Starbucks largest market derived from the adults to aged generation as well. Starbucks buyers are typically urban, young to middle-aged professionals and students who value convenience, quality, and the social experience that the brand provides. They are often tech-savvy, health- conscious, and willing to pay a premium for a product that aligns with their lifestyle and values. % of Starbucks Shoppers 80.0% 65.4% 68.8% 70.0% 54.2% 51.9% 60.0% 45.8% 50.0% 34.5% 33.3% 27.4% 40.0% 20.7% 30.0% 20.0% 10.0% 0.0% Middle Income Gen X [1965- Married 2 Millennials [1982- Prime White/Caucasian Employed Full- (Under $40k) ($40k-$125k) Low Income 1981] Time 1995] Household Ethnicity Age Age Income Income Marital Employment Amazon Size (Generation) (Generation) Bucket Bucket Status Prime  0.0% 20.0% 30.0% 40.0% 50.0% 60.0% 10.0% Saves me time Online Mobile Device In-Store Takes vitamins /… Saves me money Seeks relevance Ad checker Reading Uncomfortable with debt Grocery shopping is a… Somewhat active global customer base. Arts and craft projects Somewhat enjoyable Quality-driven Gardening and… Creature of habit Saves first for large… Very enjoyable I am savvy when I buy PL Gym / Fitness classes Hiking Tries new things Doubts advertising claims Prefers physical stores Impulse buyer Watches diet Watch sports on TV What are the Nescafe shoppers preference ? Entertaining in my home Picnics Social media Committed Outdoor advertising % of Nescafe Shoppers have attracted by the product and there preferences. Advertising is entertaining Fishing Values-driven Slightly active such as convenience, affordability, taste, and brand loyalty. I prefer popular brand… Deal-focused, brand… Golf Backpacking Scrapbooking / Photo… Online deals are sub-par Here’s a breakdown of key preferences among Nescafé consumers: Catalogs / Brochures Climbing (indoor or… Crossfit / Bootcamp etc. Print media Play fantasy sports Racquetball, Pickleball, etc. Vegan Woodworking Spinning (indoor cycling) Vegetarian (w/Eggs) Grain-free Marathons (Half or Full) Snowmobiling Triathlons / Ironman Nescafe’s wide product range and established brand reputation meet the diverse needs of its Nescafe shoppers have distinct preferences that shape their buying behaviour, driven by factors According to the survey, there have different kind of response from the different categories who  0.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 10.0% Saves me time Online Mobile Device In-Store Takes vitamins /… Saves me money Seeks relevance Ad checker Reading Uncomfortable with debt Grocery shopping is a… Somewhat active Arts and craft projects Somewhat enjoyable Quality-driven among Starbucks consumers: Gardening and… Creature of habit Saves first for large… Very enjoyable I am savvy when I buy PL Gym / Fitness classes Hiking Tries new things Doubts advertising claims Prefers physical stores Impulse buyer Watches diet Watch sports on TV Entertaining in my home What are the Starbucks shoppers preference ? Picnics Social media Committed Outdoor advertising Advertising is entertaining % of Starbucks Shoppers Fishing Values-driven Slightly active I prefer popular brand… Deal-focused, brand… Golf Backpacking Scrapbooking / Photo… Online deals are sub-par Catalogs / Brochures Climbing (indoor or… Crossfit / Bootcamp etc. Print media Play fantasy sports Racquetball, Pickleball, etc. Vegan Woodworking Spinning (indoor cycling) Vegetarian (w/Eggs) Grain-free Marathons (Half or Full) Snowmobiling Starbucks shoppers have distinct preferences that reflect their lifestyle, values, and Triathlons / Ironman expectations for quality and experience. Here’s a breakdown of the key preferences  How do Nescafe shoppers different from Starbucks shoppers ? Nescafe and Starbucks shoppers differ in several key ways, reflecting their distinct brand identities, product offerings, and consumer experiences. Here’s a comparison of the two types of shoppers: Product Preference Nescafe shoppers Instant Coffee: Nescafe shoppers typically prefer instant coffee due to ease of preparation. Affordable Options: Nescafe is known for its affordability, and shoppers often choose it for its cost-effectiveness and value for money, especially compared to premium coffee brand. Starbucks Shoppers: Specialty Coffee: Starbucks shoppers tend to prefer freshly brewed, high-quality specialty coffee. Willing to Pay More: Starbucks customers are generally willing to pay more for higher quality and a more luxurious coffee experience. Brand Loyalty and Image Nescafe shoppers Brand Trust: Nescafé shoppers are often loyal due to the brand’s long-standing reputation for reliability as well as product quality. Strong Brand Loyalty: The Nescafe Rewards program further strengthens brand loyalty, with customers frequently returning to earn rewards and access personalized offers. Starbucks Shoppers: Brand Prestige: Starbucks shoppers are often influenced by the brand’s prestige and the iconic Starbucks logo of the brand make it a symbol of modern, urban lifestyles. Nescafe shoppers prioritize convenience, affordability, and practicality, with a focus on quick and easy coffee solutions, which can easily prepared at home. They tend to be more price-sensitive and less concerned with brand prestige. On other way, Starbucks shoppers are drawn the premium quality, customization and social experiece How Nescafe attract/capture Starbucks shoppers ? To attract or capture Starbucks shoppers, Nescafe would need to adapt its offerings and marketing strategies to appeal to the preferences and expectations of this demographic. Below are some strategies Nescafe can consider. Elevate Product Quality and Variety: Nescafe could expand its range of premium instant coffees, similar to the Nescafe Gold line, emphasizing high-quality beans, richer flavours, and more refined roasting processes so that they can attract Starbucks quality-conscious consumers. Enhance the Brand Experience: Nescafe could develop packaging that mimics the cafe experience, such as creating single-serve products that come with premium sugar or creamer options, or even reusable cups that replicate the Starbucks experience at home. Nescafe could offer “do-it-yourself” barista kits, including high-quality instant coffee, flavour syrups, and toppings, allowing consumers to create their own cafe-style beverages at home. This would appeal to Starbucks shoppers who enjoy customized drinks. Expand into the Ready-to-Drink Market: Nescafe could introduce or expand its line of ready-to-drink specialty coffees, offering products like cold brews, lattes, and flavored iced coffees that can compete with Starbucks’ bottled beverages. Introducing low-calorie, plant-based, or organic ready-to-drink options could capture the health-conscious segment of Starbucks shoppers. Develop a Loyalty Program: Nescafe can introduce a loyalty program similar to Starbucks Rewards. Target Marketing and Advertising: To reach younger generation - Starbucks shoppers, Nescafe could partner with influencers and use social media platforms to promote new premium products, DIY coffee kits, and sustainability initiatives. Providing recipes, tutorials, and tips on social media could attract Starbucks shoppers who enjoy the personalization aspect of their coffee. Collaborations and Partnerships: Partnering with designers or celebrities to create limited-edition packaging or flavors could generate buzz and attract Starbucks shoppers looking for something unique and exclusive. Health and Wellness Offerings: Nescafe could introduce more products that cater to the health-conscious market, such as organic, low-calorie, or functional coffees. This would appeal to Starbucks shoppers who prioritize health in their food and beverage choices. Emphasize Value without Compromising Quality: Providing free samples or trial packs of premium products could encourage Starbucks shoppers to try Nescafe, potentially converting them into regular customers. To capture Starbucks shoppers, Nescafe should focus on elevating its brand to meet the expectations of premium quality, customization, and experience that Starbucks customers value.