Professional Documents
Culture Documents
Premium Segment
Mixed Segment
R&G Segment
Regular Segment
36
Instant Coffee 41
CSD 41
34
Bottle water 31
25
Mio. Bht
7,000 Market is growing every year.
+14%
+14% Coffee consumption is booming.
6,000 (esp out of home)
+6%
+6%
+11%
+11%
5,000 2,421
1,341 1,777
4,000
200 206 266
People lifestyle is westernized &
3,000
modernized.
2,000
People have less time / work harder.
3,504 3,372 3,410 Coffee is the part of image enhancer.
1,000
0
2002 2003 2004
More players jump into coffee market.
Coffee is their part of life.
Coffee Market Size by segment
More opportunity to grow premium segment
Mio. Bht
300 Consumers are more sophisticated.
+29% Premium Coffee is well adopted.
250 +3%
+1%
200
150
266
100 200 206
People spend more on coffee (per
50 transaction & consume more)
Consumers are still looking for and
0 willing to pay for coffee great taste.
2002 2003 2004 Opportunities is there but HOW?
Mio. Bht
Few players with less competitive
300
+29% degree.
No one owns this market.
250 +3%
+1% No one invested the market before,
Nescafe Gold starts in 2004
200
Market size can be doubled in next
3 years!
150
266
100 200 206 + Nescafe Brand is highly accepted.
+ N. Gold is highly recognized and get
50 success in 2004
+ High barrier to enter the market
0
2002 2003 2004 - Green Tea Booming.
-“Health Concern” Perception
Premium Coffee Market Size - Substitute product
We need to understand where we are today!
Competitor
Understanding
Ourselves
Consumer/Shopper
Main competitors today ...
Nescafe Gold
Moccona
Imported
Strength Weakness
Opportunity Threat
50%
45%
45%
43%
40%
37%
35%
30%
25%
21%
20% 18% 19%
17%
15% 12% 13% 13%
12% 13%
12%
10% 13%
12%
5%
0%
2002 2003 2004
Nescafe Gold Moccona Royal Gold Tasters Choice green
Moccona Expresso Others
Having a good start in 2004
(Mio Bht)
300 Market is growing by +29%
While N. Gold sales is about 4 times higher!
250
206 266
200
150 Market
N
. Gold
100
50
99
26
0
2003 2004
0 - 15 Demographic + Psychographic
16 - 30 • At certain age
• Educated, Modernized
• Socialized, Dynamic
31 - 45 • Out going, Trendy
• Cool
• Confident, Unique
46 - 60
60 Up
Getting to know consumer is vital
Youth : 16-30 Spend 70% of their time out of home
KEY INSIGHT
Home • 19 yrs old is the age of having the first cup of coffee
KEY INSIGHT
Home
• The age of adapting hot coffee
Office • Coffee is becoming a part of their everyday life
• Key Need states are Kick start,
Key activities : Refreshment during the day
• Business Dinner
Mental renewal
• Going to fitness / sports
• Going to theaters • Key Psychographics
• Socializing with friend ; Career and success are the key focus
at lunch or drinking in
evening before go home Now they have goals that they want to pursue
• Have a nice place for • Coffee ignites their spirit, gets them ready, bring
meal with family
their confidence, lets them focus, settle their
• Shopping complex with
family thoughts, initiates social bonding
No time to dream: 46-60
INSTANT COFFEE
HOME (93%) OUTSIDE (10%)
As breakfast 55
With breakfast at home 15
During break 3
Having snacks at home 8 As breakfast 2
Before breakfast 6 Working 2
Watching TV/ VDO /listen music/ radio / reading 4 Hanging with friends 2
After meal 4
Base: 270
3 IN 1 COFFEE
HOME (80%) OUTSIDE (23%)
500
+24%
400
+29%
300
525
200 430
345
266
100 206 Market
0
2003 2004 2005 2006 2007
2005 Objective
3 main strategies
Valentine’s , X’ Mas
Brand Index
Alternative channels
- Entertainment section, Book store
360 degree of communication to bomb
the town!
Print
Quality coffee
In-store activity
TVC
$ Market Growth $
Cinema
Sampling OOH
P/R
Rapidly increase Awareness through Mass Media
Prime Time
Channel 3 / 7 / 9
Soft Opera after news
News Program
Morning News Program
+ Increase awareness
+ Direct to target group
+ Induce Trial
Tie-in Program
Magazine Ads
Cinema
& Internet
PRINT
Event to create excitement.
- Excite consumer
- Create Loyalty
- Nescafe Gold consumer > 1,000 people
join the activities
Promotion to drive sales
Impactful Merchandising drives sales & visibility : Home shelf & Out of shelf.
Dominate Visibility on Shelf and in Store
Product Trial by continuous Sampling
In store
In Office
Dry
200,000 wet and dry sampling - in offices Sampling
: AM / PM Consumption
Product Trial by continuous Sampling
Cinema
PR CRM Activities
Special Incentive in Q1
- Create awareness by TVC, - New product Launch : Decaf, - Create awareness by TVC,
Magazine Ads, other Media Limited Edition : Mocca Magazine Ads, other media
Type Detail Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Total Cost
Media TVC 29,800,000
PRINT 2,700,000
Cinema 2,400,000
Sampling In store 17,000,000
Office 13,000,000
P/R 600,000
Promotion 6,000,000
Innovation Limited/New Product 700,000
Packaging 600,000
Incentives 1,200,000
Others 3,000,000
Total 77,000,000
Incentives
84% of investment is spent to ensure awareness & Trial.
Innovation
Other Media
Sampling
TVC
0 5 10 15 20 25 30 35
(Mio. Bht)
16 10
9
14
8
12
7
10
6
Sales
8 5
Spending
4
6
3
4
2
2
1
0 0
Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec
Market
Share
12.6% 37% 42% 45% 47%
COGS 8 45 65 87 124
MC 18 54 80 107 124
Commercial
Fund
4 55 77 82 85
Profit 14 (1) 3 25 39
We invest for the future .....
600Mio Bht. 45
500
jump up high! 35
30
400
25
Market
300 20 Sales
Profit
15
200
10
5
100
0 -5
2004 2005 2006 2007
Projected Market size & Nescafe Gold sales & Profit in next 3 years
N. Gold market share continuously fly high and higher...
35%
30%
25%
19% 19%
20% 18% 20%
15%
15% 12% 12%
12% 11%
12% 11%
13%
13%
10% 13%
12%
9%
5%
0%
2002 2003 2004 2005 2006 2007
Nescafe Gold Moccona Royal Gold Tasters Choice green
Moccona Expresso Others
How to ensure the result?
Market
12.6% 37% 42% 45% 47%
300 Share
50% 47%
45%
45%
250
40%
42% 45% Sales 26 99 145 194 248
35%
200
30% COGS 8 45 65 87 124
25%
150
266 20% 18% 19% 19%
20% MC 18 54 80 107 124
15%
15% 12% 12%
100 200 206 12%
12% 11%
13%
10% 13%
11%
13%
12%
Comm
9%
50 5% ercial 4 55 77 82 85
0% Fund
2002 2003 2004 2005 2006 2007
0
Nescafe Gold Moccona Royal Gold Tasters Choice green
2002 2003 2004 Moccona Expresso Others
Profit 14 (1) 3 25 39
Market
300
250
200
50
200 206
Competition
Consumer
Print
Quality coffee
In-store activity
TVC $ Market Growth $
Cinema
Sampli OOH
P/R
Nescafe Gold is ready ...
Future Outlook