Assignment No.1

Consumer BehaviorSubmitting Date: Tuesday, March 09, 2010

SUBMITTED TO:

Mr. NASIR ALI KHAN

SUBMITTED BYSYED HASSAN ASKARI 073605-098RAJA QASIM JAMIL 073605-086KHAWJA NAVEED HAIDER 073605-085Malik Allah Razi 073605-087

SECTION: CBATCH : 36

Topic

Effect Of Consumer Behavior About

In Pakistan

NESCAFE

Introduction:The beginnings of NESCAFÉ can be traced all the way back to 1930 when the Brazilian government first approached Nestlé to find a way to preserve its huge coffee surpluses.Nescafe is a brand of instant coffee made by Nestlé. It stimulates our mind and also awakens our soul. Every great tasting cup of Nescafe is rich, aromatic and favorable. It is frothy, intense and indulging; bold and satisfying. Nescafe experiences are as diverse and unique as its many blends and varieties. It stimulates one physically, mentally and emotionally touching the body, mind and soul.

4 P’s for instant Nescafe in Pakistan:

We will discuss now 4 P’s of Nescafe in Pakistan and we will also describe its effects on people.

Product Price Placement Promotion

Now we will describe products of Instant Nescafe

Product:Nescafe has introduced three types of Nescafe in its quantities and taste in Pakistan. It has increased size of the products for customers so that they can have more choices accordingly. These are given below.

NESCAFÉ CLASSIC (500,100,50gs) NESCAFÉ GOLD (100,50gs) NESCAFÉ 3in1 (18gs)

NESCAFE CLASSIC: NESCAFE Classic starts your day and keeps you going and going. It has further 3 types in quantities.

NESCAFE GOLDThe premium blends of coffee that gives you rich taste. It has two further sizes.

 

NESCAFE 3in1: Sugar, Creamer & Coffee; all you need is love and a little hot water. It makes every cup’s taste great. Easy to make, convenient to store.

 

Affect of Products on people:As it has introduced different tastes and flavors in coffee in Pakistan, so it’s getting more market share in this beverages industry. It’s going to be common now in all over Pakistan. The more important need is to identify culture in Pakistan. But still it is having gap to consumers. It should create awareness among people so that they can know about this product and can make its more use. Only app 25% people know about this product. So if it does, then consumers will more likely to go for this instant coffee instead of tea which is already common in Pakistan.

Price Strategy:

As regards pricing strategy, mostly people in Pakistan belong to middle-class, so it needs to create reasonable pricing strategy. Now coffee is more expensive as compared to tea. We can see that tea industry has captured more market in Pakistan against coffee. If Nescafe will introduce reasonable price with quality product, then people can be attracted towards instant coffee of Nescafe.

If we look at the prices of Nescafe, then we can easily get to know that it’s much expensive and for elite class only. So if it doesn’t concentrate on that pricing strategy, it can loose market share in this beverages industry.

As few people in Pakistan are elite class, app 5-10%. So if they are targeting this segment, then it’s well pricing strategy. But to get middle-class people as their market, they need to fix reasonable pricing strategies.

Placement:

If we look at its placement strategy, it’s available in superstores & general stores all over Pakistan. It’s very easily accessible for people to get it in more convenient way. So this part is also affecting some people, because it’s being placed in major areas of Pakistan.

But if compare it with tea it’s not available in each shop. Tea industry is growing in Pakistan, because it’s cheaper and conveniently accessible to people.

As a result, we can say that it’s easily accessible to the customers if they want to use it.

Promotion:

We can hardly see its advertising campaign to improve its awareness in Pakistan. Although it has increased its product line, its tastes but still it’s lacking marketing and promotion strategies in Pakistan. To compete in the market it has also introduced Sachet in the market. Nescafe needs more marketing through media ads, billboards and different campaigns. It can improve its awareness in the market by giving ads of Nescafe through media channels.

It should plan different promotional activities in the market to introduce this product by different methods. Like through this offer, they can increase its sales and also awareness.

Promotional Campaign

Now this campaign can also increase sales and its awareness in the people. People will more attract towards this product if they see these kinds of promotional campaigns and changes.

It’s lacking promotional activities in Pakistan. If it focuses on these promotional tools as it is described and shown above, then it can have distinct increase in its sales, market share and also awareness to the people of Pakistan.

Conclusion:

As a result, Nescafe is unique product in Pakistan; all four P’s including Price, Products, placement and promotion are affecting people in different way. But major P’s Promotion and price segments needs to be focused more in order to capture more market in beverages industry and also to enhance its customers all over Pakistan.

As far as we discuss about the consumer behavior about the nescafe, we came to know that in pakistani culture, coffee is being used as the symbol of status. There are some misconceptions that has been created by the elders for youngers that coffee is harmful for the people under the age of 40. That is why, the nescafe is not more in into the market. You can easily observe in Lahore that there are special coffee bars located with high prices. Only those people go there who are rich and take care about their status.