CONSUMER BEHAVIOR RESEARCH: NESCAFÉ COFFEE Food Bazaar, Shipra Mall, Ghaziabad

Research Methodology

Technique: Qualitative researchSample: Convenience samplingSample size: 10

How the survey was conducted

• 10 samples taken according to convenience

• A study of product display in the outlet:

☺How products from Nescafé were kept along with other coffee products

☺Offers that were associated with the product “coffee”

☺Difference of selection of product kept in the outlet compared to grocery shops

• A study of purchasing decisions taken at the spot for 3 consumers incl. one of the team members

Questions projected

• Frequency of purchasing coffee• Preference for coffee i.e. strong, mild, etc.• When coffee is generally preferred i.e. time• Why Nescafé

• Source of product information• Feedback• Suggestions (if any)

Objectives• Who buys coffee• Why? ☺offers/discounts, etc. ☺ordinary/regular buyers ☺ambience affects decision• How decisions are taken? ☺pre-determined ☺information search → evaluation of alternative →

decision• Why Nescafé? ☺well-learned consumers ☺study of consumer motivation, perception and attitude

[ quality – status – economy] ☺brand

The world of Nescafé[as found in the place of research]

Nescafé Classic •Hybrid segmentation•to attract young people for its refreshing quality•combo pack included two sachets•a free red coffee mug (signature of the brand)•Little jar with ’25 cups’ coffee making

Nescafé Sunrise Premium •Behavioral Segmentation •to attract coffee freak who generally takes strong coffee•recent offer of free chocolate from Nestle•pouch in selected stores

The world of Nescafé [as found in the place of research]

Nescafé Sunrise Special •Tagged as ‘special brand special price’ •for people with low affordability

Nescafé Cappuccino •For experiencing true café style•Psychological (Lifestyle) segmentation •introduction of sachet for the preparation of 1 mug of coffee.

FINDINGS: QUESTIONNAIRES

Questionnaire & findings...Questionnaire & findings...• Age group of the consumers...Age group of the consumers...

• 18 – 25 (3)• 26 – 35 (5)• 36 – 45 (2)• 46 – 60 (0)• 61 & above (0)

• Sex:Sex:• Male (4)• Female (6)

• Do you buy coffee?Do you buy coffee?• Yes (10)• No (0)

• Why do you buy coffee?Why do you buy coffee?– Taste (3), Goodliness i.e. Feel good factor (5),

Elegance (0), Stress buster (2), Any other (0).

• You buy coffeeYou buy coffee– Regularly (8), Occasionally (2), Seasonally (0).

• You prefer coffee which isYou prefer coffee which is– Strong (4), Mild (4), Cappuccino (2), Nothing

particular (0)

• At what time of the day, you prefer taking At what time of the day, you prefer taking coffee?coffee?– Work hours (2), Relax hours (5), Morning (1), Any

other (2).

• Why Nescafe? Why Nescafe? – Favourite brand (7), Well known brand (1), Promo offers (2)

• Where have you learnt about the product?Where have you learnt about the product?– TV Ad (9), Friends (0), Product display (1)

• Which among the offered range of products is Which among the offered range of products is preferred by you?preferred by you?

- Nescafé Classic (10), Nescafé Premium (0), Nescafé Special (0), Nescafé Cappuccino (0)

• Do you think, price can come between your decision Do you think, price can come between your decision of purchasing your favourite brand?of purchasing your favourite brand?– Yes (3), No (7).

FINDINGS:OBSERVATIONS @

PLACE OF RESEARCH

3 BUYING DECISIONS OBSERVED

• A COUPLE:Busy in their own discussions, selected Nescafé classic and walked away

• A GROUP OF GIRLS: reading the information provided at the label of all the products ↓ selecting Nescafé classic’s jar ↓ two of them whispering on each other’s ear as they keep doing it ↓ kept the jar as it is ↓ walked out smartly!

• NEHA

Case 1

• Buyers were pre determined in purchasing the product

• Seems like they were shopping for the purpose of their household

• Nescafé forms a part of their choice already made before

• HABITUAL BUYING DECISION

Case 2

• Complicated analysis• Might thought of buying coffee as a choice

between “lifestyle” factor (a brand – Nescafé) & “economical”, or both

• In terms of product information, it could be said that they were not aware about the product specifications i.e. Net Wt., Price, etc.

• They were comparing with different products

2 cont..

• They might be impulsively selecting the product• Red mug that has become a signature for the

company could be the “queen bee”• After evaluating alternatives, economic factors

led to the decision of not buying the product• Also, the offer for free cup came along with the

large pack which is generally purchased by Rank 1 consumers

Case 3

• Neha bought and we watched silently• Her spontaneity in purchase decision proved

her attachment with the product• But case was different• Neha said when asked: she wanted to get the

red mug and that only triggered her need to buy the combo pack

Observation: Displays in the outlet

• In front was the combo pack itself• Only a few Cappuccino products were kept• Sunrise premium was in small pouches

[50gms.]• Sunrise Special were offered free with Nescafé

Classic

♦Age group => 18-45 majority ~ symbolizes “youth”, family buy♦Overall goodliness i.e. feel good factor is 50%♦Regular buyer is 80% i.e. high demand♦Both strong + mild is considerable i.e. product is able to cater to various needs of the consumers♦Relax hours are preferred by 50% i.e. taken as rejuvenator or stimulant♦Nescafé is preferred by all i.e. it is successful as a brand as - • majority of the demography has opted Nescafé • preferred by both strong & mild drinkers • overall goodliness i.e. feel good factor got majority vote

♦Learnt from TV ad=>9/10 •Ad has a huge effect on the consumers featuring working girls/women in various professions, just married couples, etc.♦PRICE IS NOT A FACTOR • Indicates the exclusiveness of the product • Made an universal appeal in the minds♦NESCAFÉ Classic preferred by all • Proves the success of the product incl. price, promotion and positioning • Might also be the lack of awareness about offered product line

Arousal of Motive: Environmental/Situational Arousal

• Music director busy in recording session• Woman in charge of her own shop• Showing coffee beans• Business discussions• Enjoying coffee in the morning with a breeze around• Opening the lid of the jar, removing foil• Photographer busy in his own world of ‘fixing angles’ for the best shot• Woman busy in her professional life hurries to get to the car quickly after she finishes desk work• Painter lost in his own world of colors• Woman walking in street with expression of contentment

• Preparing coffee with water and milk in the RED MUG •Woman taking coffee from the vending machine, opens her mail inbox and sighs• Teenager boy thinking of something as he writes• The same photographer now sits with his ‘object’ of photography probably to evaluate how it was• Coffee is ready• The same girl chatting• Another girl trying to catch taxi (cab)

Consumer Learning

• CUES: Combo Pack with red mug, affordable range

• Motive was situational arousal and cues provided directions to these motives

• Food Bazaar also planned to work as catalyst to this drive by featuring COMBO Pack among its diverse product line

CONSUMER MOTIVATION

• Set to evoke Self Actualization Needs (self fulfillment)

• Majority voted for feel-good factor followed by regular buying with price not being an obstacle

• Ad featured Social needs (warmth of relationship, etc.) and Egoistic Needs (self esteem, success, independence)

Consumer Personality

• Non Freudian personality theory explaining social relationships and style of life

• DETACHED INDIVIDUALS: desires independence, self reliant, self

sufficiency, individualism

Generating CONSUMER ATTITUDE

• Nescafé ’s idea is successful with attaching it to the LIFESTYLE factor of the consumers

• Nescafé Classic earned such image also for the color combinations:

☺RED – hot, strong, color of coffee beans ☺ BROWN – informal, relaxed, masculine• Explains why Nescafé Sunrise Premium & Nescafé special

couldn’t be successful as they features YELLOW and GREEN colors – generally taken as color of tea leaves, coffee has nothing to do with GREEN & Yellow

What query????What query????sip Nescafé sip Nescafé