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Project Report on

“A Comparative Study on Customer Preference towards


Nescafe, Bru and Tata Coffee”

BY

Harshitha MV

1NH15MBA57

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES


NEW HORIZON COLLEGE OF ENGINEERING,
OUTER RING ROAD, MARATHALLI,
BANGALORE

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE


Dr.Smita Harwani Chirag Shah
Faculty of M.B.A Department, Director Brand Engagement,
New Horizon College of Engineering DDB Mudra Group

(2015-2017)
CERTIFICATE

This is to certify that Harshitha MV bearing USN 1NH15MBA57 , is a


bonafide student of Master of Business Administration course of the Institute
(2015-2017), autonomous program, affiliated to Visvesvaraya Technological
University, Belgaum. Project report on “A Comparative Study on Customer
Preference towards Nescafe, Bru and Tata Coffee” is prepared by him/her
under the guidance of Dr.Smita Harwani, in partial fulfillment of requirements
for the award of the degree of Master of Business Administration of
Visvesvaraya Technological University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Signature of Principal


DECLARATION

I, student Harshitha MV, hereby declare that the project report entitled “A
Comparative Study on Customer Preference towards Nescafe, Bru and
Tata Coffee” with reference to “DDB Mudra Group” prepared by me under the
guidance of Dr.Smita Harwani, faculty of M.B.A Department, New Horizon
College of Engineering and external assistance by Mr.Chirag Shah, Director
Brand Engagement, DDB Mudra Group.

I also declare that this project work is towards the partial fulfillment of the
university regulations for the award of the degree of Master of Business
Administration by Visvesvaraya Technological University, Belgaum.

I have undergone a summer project for a period of sixteen weeks. I further


declare that this project is based on the original study undertaken by me and has
not been submitted for the award of a degree/diploma from any other
University/ Institution.

Signature of Student

Place:

Date:
ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all those who have been
instrumental in presentation of this project report.

The foremost salvation goes to my parents and teachers for their continuous
support throughout my life and entire endeavor.

I would like to express my sincere thanks to Dr.Manjunatha, Principal, New


Horizon college of Engineering, Dr.Sheelan Misra, HOD, M.B.A Department
for their kind support and encouragement.

I express my profound sense of gratitude to my Guide, Dr.Smita Harwani for


her encouragement and cooperation in all matters pertaining to project work.

I would like to thank and express my heartfelt gratitude to Mr. Chirag Shah,
Director Brand Engagement, DDB Mudra Group for best owing with their
invaluable help, support and educate me with all the relevant industry and
company information which made my dissertation success.

Place: Ms. HARSHITHA MV

Date: USN No. - 1NH15MBA57


TABLE OF CONTENTS

CHAPTER CHAPTER NAME PAGE NO.


NO.

1 INTRODUCTION 1-9

2 2.1 INDUSTRY PROFILE 10-15

2.2 COMPANY PROFILE


16-28

3 THEORETICAL BACKGROUND OF THE 29-45


STUDY

4 DATA ANALYSIS AND INTERPRATATION 46-75

5 5.1 SUMMARY OF FINDINGS 76-79


5.2 SUGGESTIONS 80

5.3 CONCLUSIONS 81

BIBLIOGRAPHY 82-83

ANNEXURE
LIST OF TABLES

PAGE
TABLE No. TITLE OF THE TABLE
No.

Table-4.1 Distribution of respondents according to what they do in their


leisure time 47
Table-4.2 Distribution of respondents according to what Beverage they
like to have 48
Table-4.3 Distribution of respondents according to the number of times they
prefer to have coffee in a day 49
Table-4.4 Distribution of respondents according to the amount of money they
spend on a coffee per month (In Rupees) 50
Table-4.5 Distribution of respondents according to what Brand of coffee prefer 51

Table-4.6 Distribution of respondents according to the rank they would


Choose for a brand 52
Table-4.7 Distribution of respondents according to where they saw the
Advertisment for a particular brand of coffee 54
Table-4.8 Distribution of respondents according to the factors that influence
respondent to purchase a particular brand of coffee 57
Table-4.9 Distribution of respondents according to the different features of each
brand on the scale of 1 to 5 60
Table-4.10 Distribution of respondents according to satisfaction
level of each coffee 67
Table-4.11 Distribution of respondents according to satisfaction level of
respondents based on the advertisements of each brand 69
Table-4.12 Distribution of respondents according to the satisfaction level they get in
terms of Quality and Quantity given for the price they pay 71
Table-4.5(1) Chi Square Test: Based on Table 4.5 Distribution of respondents
according to what Brand of coffee prefer 75
LIST OF CHARTS

GRAPH
TITLE OF THE GRAPH PAGE
NO.
NO.

Chart -4.1 Distribution of respondents according to what they do in their


leisure time 47
Chart -4.2 Distribution of respondents according to what Beverage they
like to have 48
Chart -4.3 Distribution of respondents according to the number of times they
prefer to have coffee in a day 49
Chart -4.4 Distribution of respondents according to the amount of money they
spend on a coffee per month (In Rupees) 50

Chart -4.5 Distribution of respondents according to what Brand of


coffee prefer 51
Chart -4.6 Distribution of respondents according to the rank they would
Choose for a brand 52
Chart -4.7 Distribution of respondents according to where they saw the
Advertisment for a particular brand of coffee 54
Chart -4.8 Distribution of respondents according to the factors that influence
respondent to purchase a particular brand of coffee 57
Chart -4.9 Distribution of respondents according to the different features of each
brand on the scale of 1 to 5
Chart No- 4.9 (a)- Nescafe 60
Chart No- 4.9 (b)- Bru 63
Chart No- 4.9 (c)- Tata Coffee 65
Chart -4.10 Distribution of respondents according to satisfaction
level of each coffee 67
Chart -4.11 Distribution of respondents according to satisfaction level of
respondents based on the advertisements of each brand 69
Chart -4.12 Distribution of respondents according to the satisfaction level they get
in terms of Quality and Quantity given for the price they pay
Chart No- 4.12 (a)- Quality 71
Chart No- 4.12 (b)- Quantity 73
EXECUTIVE SUMMARY

DDB Mudra Group is one of India’s largest integrated marketing communications and
services network. It comprises of agency networks and business units which offer expertise in
disciplines such as Media, OOH, Retail, and Experiential.

Advertising is an audio or visual form of marketing communication that services an openly


sponsored or non-personal message to promote or sell a product, service, or idea. Sponsors of
advertising are often businesses who hope to promote their products or services.

Coffee plantation in India use traditional methods and cultivation. Coffee production is the
industrial process of converting the raw fruit of the coffee plant into the finished coffee.
Coffee production is a major source of income, especially for developing countries where
coffee is grown. By adding value, processing the coffee locally, coffee farmers and countries
can increase the revenue from coffee.

The report is based on three brands of coffee namely Nescafe, Bru, and Tata coffee. In order
study the customer preferences for coffee, to evaluate the factors affecting the preferences, to
compare the brands on different criteria’s and to understand the coffee drinking habits of the
respondents.
INTRODUCTION

1.1 Topic chosen for the study:

A COMPARATIVE STUDY ON CUSTOMER PREFERENCE TOWARDS NESCAFE, BRU


AND TATA COFFEE

1.2 Need of the study:

The customer preference is changing day by day, which as lead to the increase in the
competition of difference brands in the market. Hence we are required to evaluate the various
factors that affect the preferences with the help the competitive analysis to 3 different brands,
to under the coffee drinking habits of the respondents.

1.3 Objectives of the study:

 To study the customer preferences for coffee


 To evaluate the factors effecting the preferences
 To compare the 3 Brands of coffee on different criteria‟s
 To understand the coffee drinking habits of the respondents

1.4 Scope of the study:

The customers:

The desires a customer has with a product influences the amount of mental and
physical efforts a consumer puts into the buying process. Outcomes associated with high
desires and needs include more time and effort spent in search related activities. Consumers
with the strong desires will search for more information before they buy. For example,
consumers with strong desire for unique product will pay more attention to the relevant
criteria‟s Brand name, quality, quantity, taste, price, advertisements and most importantly
easy availability, than the consumers with weak desire for a unique customer product.

1
Therefore, consumers with strong desire for unique products are expected to spend more time
gaining information about the product.

The social media:

The social media sites such as Facebook, Twitter and YouTube and many more play a
vital role in product promotion and advertisement and increasing the product awareness and
to increase the brand positioning in the minds of the customers.

The company:

DDB Mudra Group is one India‟s largest integrated marketing communications and
services network. It comprises of agency networks and business units which offer expertise in
disciplines such as Media, OOH, Retail, and Experiential.

The Brands:

The report is based on three brands of coffee namely Nescafe, Bru, and Tata coffee. In
order study the customer preferences for coffee, to evaluate the factors affecting the
preferences, to compare the brands on different criteria‟s and to understand the coffee
drinking habits of the respondents.

2
1.5 Methodology Adopted:

This chapter details the methods used for data collection for this study, including the
background on data sources, the collection and presentation of data, and the limitations and
delimitations of the study.

Type of Research:

Descriptive Research:

Descriptive studies are used to describe various aspects of the occurrence. In its standard
format, descriptive research is used to describe features and/or behavior of sample
population.

Descriptive studies are closely associated with observational studies, but they are not limited
with observation data collection method, and case studies, as well as, surveys can also be
specified as popular data collection methods used with descriptive studies.

 Observation data collection


 Surveys - Questionnaire

Three main purposes of descriptive studies can be explained as describing, explaining, and
validating research findings.

3
Sampling Plan:

 Sampling unit- They are Individuals and corporate, existing, and prospective
customers.
 Sample Size- 100 unit
 Sampling technique- simple random sampling

Data Sources:

 Primary sources:

The primary data means the data gathering for the first time for the survey directly
from the sample or population as per the requirement.

To obtain primary data through description research which is also called survey method, to
carry out sample survey of existing and prospective customers.

 Questionnaire
 Observation
 Interviews

 Secondary sources:

The secondary data consists of information that has been already exists and has been
collected for some specific purpose previously.

 Websites
 Articles
 Social media
 Annual reports
 Books
 Journals

Data Analysis Tools:

Chi square test is been adopted for the comparative analysis of the study on the
customer preference towards Nescafe, Bru and Tata coffee.

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1.6 Literature Review

Tarun Jain, Reetesh Shukla, Branded Coffee market in India, The growth and
success of these brands have in turn stimulated the appetite of other international players like
Costa, Starbucks, and The Coffee Bean & Tea Leaf to venture into the Indian market. The
surge in the number of cafés has strongly contributed towards making India a “coffee loving
country”.
He states that the emergence of cafés has elevated the urbane image of coffee. With
approximately 70% of the Indian population living in rural areas, it is vital that players
offering packaged brands stress on penetration into the rural market. The encounter lies in
generating plea among the rural consumers, who are traditionally tea drinkers, and in creating
scope for a shift in their preference. However, with the past, and estimated, growth in this
class, the future for packaged coffee brands is promisingly healthy.

Dr Savita Hanspal,(2010), Consumer Survey on Sustainable Tea & Coffee


Consumption, The survey revealed that most consumers drank both tea & coffee but men
consumed more tea and coffee as compared to women. The consumption of coffee in cups
per day was comparatively less than consumption of tea.
The article survey discovered that most consumers drank both tea & coffee but men
consumed more tea and coffee as compared to women. The consumption was usually less
than two cups per day and rarely outdid four cups per day. The consumption of coffee in cups
per day was relatively less than consumption of tea. The largest consumers of tea and coffee
were found in the age group of 18-36 years, but the intake of both the beverages declined
with age. Consumption of tea & coffee was the maximum amongst those who worked in the
private sector, professionals and students. The consumption of tea was higher as compared to
consumption of coffee even amongst consumers reporting high family incomes.

Satish Y. Deodhar, Vivek Pandey,(2006), Degree of Instant Competition:


Estimation of Market Power in India‟s Instant Coffee Market, states that the market is a
practical duopoly of Nestlé and Hindustan Lever for decades. The companies have branded
their products and product differentiation exits. At the same time, however, Tata Coffee

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seems to offer potential competition to the incumbents. In fact, instant coffee can be
considered as a part of a larger beverage market with numerous competing products.
The new competition policy of the Government of India that replaced MRTP, seeks to
promote competition to protect consumer interests and increase market efficiency. It becomes
imperious; therefore, that one knows the degree of competition in numerous domestic
industries. In fact, the degree of price diffusion between farmers and final consumers also
depends on the degree of competition in the processing sector.

Eugene Jones,(2014), An Empirical Assessment of Consumers‟ Preferences for


Coffee, states that the purchased shares of coffee across the twelve categories show inner-city
shoppers more inclined to purchase lower-priced, private labels and instant coffee.

This research is rooted in the statement that inner-city shoppers have higher levels of price-
sensitivity for all brands, diversities, and categories of coffee. Economics serves as the
foundation for this premise and this researcher has confirmed its validity for products such as
cheese, cheese, breakfast cereals, milk, and orange juice. Results from this study provide
limited support for this principle, as nine of twelve own-price elasticity‟s showed inner-city
shoppers to have price-sensitivity levels statistically insignificant from those of suburban
shoppers.

Monirul I. & Han J. H., (2012), Perceived Quality and Attitude Toward Tea &
Coffee by Consumers, states that the when consumers buy a product they normally consider
different types of attributes. The product examined in this research study was Coffee and Tea.
This paper focused on Korean consumers‟ attitudes toward Coffee vs. Tea. Korean
consumers had an overall more positive attitude toward Coffee over Tea.

When consumers buy a product they usually consider different types of traits which we saw
the same in case of drinks item also. The product inspected in this research study was Coffee
and Tea. This paper concentrated on Korean consumers‟ attitudes toward Coffee vs. Tea.
Korean consumers had an complete more positive attitude toward Coffee over Tea. Findings
from this study should support in filling the large knowledge shortage that exists regarding
Coffee and Tea research in marketing or business field.

6
Satnam Kour Ubeja, Dhara Jain(2013), A Study of Consumers' Preference towards
Branded & Loose Tea: With Reference to Indore City, States that „Market brands that have
provided utilities and presented alternatives to consumers, manufacturer and marketer must
be evaluated accurately‟.

Consumers before make a purchase decision normally consider different types of attributes.
Consumers had a positive attitude towards respective preferred brand in the product class
over the others. Finding from this study assist in filling the substantial knowledge deficit that
exists regarding tea research in marketing or business field.

Market brands that have delivered utilities and presented alternatives to consumers,
manufacturer, and marketer must be estimated accurately. In addition, because of low per
capita income and weakened distribution of income in Indore, it is expected that the share of
loose tea merchant will be increased in the future in respect of Indore city.

Eugene Jones,(2015), Consumer Preferences for Coffee: Hot and Wet, or Quality and
Flavor?, states that the purchasing patterns and levels of price-sensitivity suggest alternative
marketing strategies for retailers.

The article depicts the econometric model which develops and estimates all the brands of
coffee that are sold in the retail supermarkets in Columbus, Ohio.

Where the brands are segmented into 24 categories which are further classified into four
stores and two group. Using estimated results they show the different purchasing patterns and
different levels of price sensitivity for sub-urban and inner city shoppers. Further for which
they suggest alternative marketing strategies for retailers. It also says that the private label
coffee brands are competitive with national brands, and command a market share which is
more than double to that of the nation.

Amit Ahuja, (Feb5,2016), The New Culture of coffee in India, states that the new
cafe culture compared with the traditional coffee bars of the southern states? The two venues
are really quite different: the traditional coffee bars offer standing room only, and the idea is
to drink up and make room for the next customer. With the new style of café, the space is as
important a product as the coffee itself, and a big reason for the success of these businesses.

7
Cafés are much more expensive than kaapi bars, but for the price you also get a valuable
“living” space where you can meet with friends and colleagues. Perhaps the traditional coffee
bars will find a way to adapt their delicious product to this style of venue, offering the best of
both worlds.

Krystal D'Costa(August 11, 2011), The Culture of coffee Drinkers, states that the
newfound freedom to choose and the taste and discrimination he cultivates, have been shaped
by traders and marketers responding to a long-term decline in sales with a move toward
market segmentation along class and generational lines. This is not, of course, to say we enter
the market as mere automatons; clearly, they have and exercise choices, and they (apparently)
have more things to choose from than they once did. But they exercise those choices in a
world of structured relationships, and part of what those relationships structure (or shape) is
both the arena and the process of choice itself.

Coffees offer us a way to look at our relationship to the larger world and see that sometimes
our choices are not really our own, to think about how brands and larger market forces can
help create what appear to be stable icons in our lives. The 'me' that we have come to
emphasize may be less personal than we realize.

Ramesh V Bhat (July-August 2005), Review of Coffee Quality / Safety Management


and Control in India, states that A series of measures are needed to be undertaken mostly by
the Coffee Board for improving the Quality and Safety of Coffee in totality. The measures
suggested include i) ensuring that farmers harvest correctly, traders don‟t buy wet coffee ,
curing works check quality of incoming lots, processors/ exporters have GMP programme,
adequate storage facilities are available ii) programme to control moisture through out the
coffee chain iii) prescribing limits for Ochratoxins in Coffee under the PFA Act iv)
organizing awareness and training programme for stockholders v) Introducing mandatory and
voluntary programs for regulation of coffee quality and safety vi) Enforcing and assisting in
enforcement of Food Safety/ Standardization Bill as applicable to coffee. All stakeholders
need to be involved in prevention, control and participating in Codex matters.

8
1.7 Limitations of the study

 The study was restricted to the working class and home makers coming under the
Bangalore city only. Therefore, the results need not be generalized to all sections or
age or categories of people.
 The study was on the effect of Sales Promotion on consumer based Brand Equity of
only three different brands of coffee products, via, Nescafe instant coffee, Bru Instant
coffee and Tata coffee and I have not done an in- depth analysis of specific brand.
 The study was only on a homogeneous population, via, working class and home
makers and therefore cannot be generalized across heterogeneous groups.
 The survey that had been conducted with the samples that gave more diplomatic
answers.
 Survey was done with limited number of samples so the accuracy of the findings
cannot be judged.
 People did not show much of the interest while answering the questionnaire.
 It was not able to cover all round aspect of our market research.

9
2.1 INDUSTRY PROFILE

ADVERTISING AND MARKETING INDUSTRY INDIA

Advertising is an audio or visual form of marketing communication that services an openly


sponsored or non-personal message to promote or sell a product, service or idea. Sponsors of
advertising are often businesses who hope to promote their products or services. Advertising
is different from public relations in that an advertiser usually pays for and has control over
the message. It is different from personal selling in that the message is none-personal, i.e., not
directed to a certain individual. Advertising is communicated through several mass media,
including old media such as newspapers, magazines, Radio, Television, outdoor advertising
or direct mail; or new media such as search results, websites, blogs or text messages. The
actual arrangement of the message in a medium is referred to as an advertisement or "ad".

Commercial ads often seek to create increased consumption of their products or services
through "Branding," which links a product name or image with certain qualities in the minds
of consumers. On the other hand, ads that propose to provoke an immediate sale are known as
direct response advertising. None-commercial advertisers who spend money to advertise
items other than a consumer product or service enclose political parties, interest groups,
religious organizations and governmental agencies. None-profit organizations may practice
free modes of advice, such as a public service announcement. Advertising may also be used
to support employees or shareholders that a company is viable or successful.

Modern advertising was shaped with the techniques hosted with tobacco advertising in the
1920s, most considerably with the campaigns of Edward Bernays, considered the founder of
modern, "Madison Avenue" advertising.

In 2015, the world spent an estimate of US$592.43 billion on advertising. Its projected
distribution for 2017 is 40.4% on TV, 9% on newspapers, , 33.3% on digital 6.9% on
magazines, 4.3% on radio and 5.8% on outdoor. Internationally, the largest "big four"
advertising conglomerates are Omnicom, Publicis, Interpublic and WPP.

10
Classification:

Advertising may be classified in a variety of ways containing style, medium, target audience,
geographic scope or purpose.

For example, in print advertising, sorting by style can include display advertising (ads with
design components sold by size) vs. classified advertising (ads without design elements sold
by the word or line). Advertising may be local, national or global. An ad campaign may be
directed to consumers or to businesses. The persistence of an ad may to raise awareness
(brand advertising), or to provoke an immediate sale (direct response advertising).

Traditional media:

Practically any medium can be used for advertising. Commercial advertising media can
include billboards, street furniture components, wall paintings, printed flyers and rack cards,
radio and television adverts, cinema, web banners, shopping carts, web popups, skywriting,
bus stop benches, mobile telephone screens, human billboards and forehead advertising,
newspapers, magazines, sides of buses, town criers, banners attached to or sides of airplanes
("logojets"), in-flight advertisements on seatback tray tables or overhead storage bins, roof
mounts, taxicab doors, and passenger screens, subway platforms, musical stage shows, and
trains, elastic bands on disposable diapers, stickers on apples in supermarkets, doors of
bathroom stalls, shopping cart handles (grabertising), the opening section of streaming audio
and video, and the backs of event tickets, posters and supermarket receipts. Any place an
"recognized" sponsor pays to deliver their message through a medium is advertising.

Share of global adspend


Medium 2015 2018(Discuss)
Television advertisement 37.7% 34.8%
Desktop online advertising 19.9% 18.2%
Mobile advertising 9.2% 18.4%
Newspaper Advertising 12.8% 10.1%
Magazines 6.5% 5.3%
Outdoor advertising 6.8% 6.6%
Radio advertisement 6.5% 5.9%
Cinema 0.6% 0.7%
(Source:Wikipedia)
11
 Television:

Television advertising is one of the most costly type of advertising, networks charge large
amount of money for commercial airtime during very popular events. A television
advertisement is a area of television programming produced and paid for, by an organization,
which sends a message, usually to market a product or service. Advertisers and marketers
may refer to television commercials as TVCs. Television advertising includes two main tasks:
creating a television advertisement that meets broadcast standards and then, placing the
advertisement on television through a targeted air time media that reaches the desired
customer.

 Radio:

Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna
and a thus to a receiving device. Airtime is purchased from a station or network in exchange
for airing the commercials. While radio has the constraint of being limited to sound,
proponents of radio advertising often cite this as an advantage. Radio is an growing medium
that can be found on air, and also online.

 Online:

Online advertising is a form of promotion that uses the Internet and World Wide Web for the
articulated purpose of conveying marketing messages to draw customers. Online ads are
carried by an ad server. Examples of online advertising include background ads that appear
on search engine results pages, in pay per click text ads, banner ads, rich media ads,
advertising networks Social network advertising, online classified advertising and e-mail
marketing, including e-mail spam.

 Domain names:

Domain name advertising is most generally done through pay per click web search engines,
though; advertisers often lease space directly on domain names that generally describe their
products.

12
 Product placements:

Covert advertising is when a product or brand is entrenched in entertainment and media. For
example, in a film, the main character can use an item of a certain brand. Product placement
for Omega Watches, VAIO, Ford, Aston Martin and BMW cars are introduced in recent
James Bond films, most notably Casino Royale. In "Fantastic Four: Rise of the Silver
Surfer", the main transport vehicle shows a large Dodge logo on the front. Blade Runner
comprises some of the most recognizable product placement; the whole film halts to show a
Coca-Cola billboard.

 Print:

Print advertising defines advertising in a printed medium such as a magazine, newspaper or


trade journal. This includes everything from media with a very broad readership base, such as
a major magazine or national newspaper, to more narrowly directed media such as local
newspapers and trade journals on much specified topics. One form of print advertising is
classified advertising, which permits private individuals or companies to purchase a small,
narrowly directed ad paid by the word or line. Another form of print advertising is the
exhibition ad, which is usually a larger ad with design elements that typically run in an article
section of a newspaper.

 Outdoor:

Billboards are huge structures placed in public places which display advertisements to
passing pedestrians and motorists. Most often, they are placed on main roads with a large
number of passing motor and pedestrian traffic; however, they can be placed in any locality
with large number of viewers, such as on mass transit vehicles and in shopping malls,
stations, or office buildings, and in stadiums.

 Point-of-sale:

In-store advertising is any advertisement positioned in a retail store. It includes setting up of a


product in visible locations in a store at eye level, at the ends of corridors and near checkout
counters, eye-catching displays and advertisements in such places as shopping carts and in-
store video displays.

13
 Novelties:

Advertising printed on small tangible items such as T-shirts, coffee mugs, bags, pens and
such is known as novelty advertising. Some printers focus in printing novelty items, which
can then be circulated directly by the advertiser, or items may be distributed as part of a cross
promotion, such as ads on fast food containers.

14
COFFEE INDUSTRY

Coffee production is the industrial process of converting the raw fruit of the coffee plant into
the finished coffee. Nevertheless, it is not what one would call a processed product. The
cherry has the fruit or pulp removed leaving the seed or bean which is then dried. While all
green coffee is processed, the method that is used varies and can have a significant effect on
the flavor of roasted and brewed coffee. Coffee production is a major source of income,
especially for developing countries where coffee is grown. By adding value, processing the
coffee locally, coffee farmers and countries can increase the revenue from coffee.

Coffee production in India is dominated in the hill tracts of South Indian states, with the state
of Karnataka accounting 71% followed by Kerala 21% and Tamil Nadu 5% of production of
8,200 tonnes.

Coffee is grown in three regions of India with Karnataka, Kerala and Tamil Nadu forming the
traditional coffee growing region of India, followed by the new areas developed in the none-
traditional areas of Andhra Pradesh and Orissa in the eastern coast of the country and with a
third region comprising the states of Assam, Manipur, Meghalaya, Mizoram, Tripura,
Nagaland and Arunachal Pradesh of Northeastern India, popularly known as “Seven Sister
States of India".

15
2.2 COMPANY PROFILE

Profile-

Type Marketing Communications Network


Industry Advertising, marketing, brand management
Founded India, 1980
Headquarters Mumbai, Maharashtra
Key people A.G. Krishnamurthy, Madhukar Kamath : Group CEO & Managing
Director
Sonal Dabrai : Chairman & Chief Creative Officer
Subsidiaries DDB Mudra, DDB Mudra Max, 22feet Tribal Worldwide, Tracy Locke,
TRACKDDB, DDB Remedy
Website www.ddbmudragroup.com

Introduction-

The DDB Mudra Group, is a part of the Omnicom/DDB Worldwide Group, it is India‟s
largest integrated marketing communications and services network.

DDB Mudra Group comprises-

-3 agency networks

-6 specialist agencies-

-11 strategic business units which offer their expertise under four disciplines (Media, OOH,
Retail and Experiential).

DDB Mudra Group operates out of its offices in 15 leading cities and is represented in more
than 20 other locations, giving it a comprehensive presence across the length and breadth of

16
the country. It has more than 1,100 employees and a reaches across 1, 75,000 villages, 4000
towns, 3500 schools and nearly 7 million students.

The scope of services of DDB Mudra Group run the gamut through Advertising, Media
Planning and Buying, Digital and New Media, Data-driven Marketing, Health & Lifestyle,
OOH, Retail Design and Visual Merchandising, Navigation Solutions, Experiential
Marketing (Events ,Promotions, Rural), Trade Marketing, Youth Marketing, Localization
Pre-Media Services, Content Creation, Strategy and Design Consultancy.

DDB Mudra Group is India‟s most awarded agencies which picked numerous awards at top
national and international award festivals including Cannes, Spikes Asia, Clio, Adfest,
ABBYs, OAA (Outdoor Advertising Awards), WOW (Experiential Awards) and PMAA –
Dragons of Asia (Promotion Marketing Awards of Asia). The Group has also won a number
of metals in the IT and LLC (HR) award forums.

About Omnicom Group Inc.-

Omnicom Group Inc. (NYSE-OMC) is the leading global marketing and corporate
communications company. Omnicom‟s branded networks and numerous specialty firms
provide advertising, strategic media planning and buying, direct and promotional marketing,
digital and interactive marketing, public relations and other specialty communications
services to over 5,000 clients in more than 100 countries.

The DDB Mudra Group’s clients includes-

Abbott Nutrition, ACC, Adani, Aditya Birla Group, Aircel, Arvind Stores, Ashok Leyland,
Asian Paints, AVT, Bata, BPCL, Bharati Walmart, Carrier Midea, Castrol, Cisco, Colgate,
Crompton Greaves, DBS, Dabur, Eenadu, Eicher, Emirates, Experion, Federal Bank, Future
Group, Grasim, Gillette India, Godrej, Gulf Oil, HDFC Bank, HPCL, Hindustan Times,
Hindustan Unilever, HP, HUL, ICICI Bank, IDBI Bank Group, Idea Cellular, ITC, Jaypee,
Jindal Steel, Jyothy Laboratories – Henkel, Johnson & Johnson, L&T, Lafarge India, Lavasa,
Lenovo, LG, LIC, Linen Club, Malayala Manorama, Marico, McDonalds, Ministry of
Tourism, Mother Dairy, MSD, National Textile Corporation, Nerolac, Nestle, Nirmal

17
Lifestyle, Novartis, Panasonic, PepsiCo, Peter England, Philips Healthcare, Puma, Reebok,
Rotomac, Sab Miller, Shell, Simplymarry.com, Sony Mobile, Star India, Standard Chartered
Bank, Symphony, Tata Communications, Tata Nano, TTK Prestige, Times of India,
UNICEF, Union Bank of India, United Spirits, Usha International, Videocon, Volkswagen,
Western Union, World Gold Council, Worldwide Media, Wipro, Wrigley, YOU Broadband
and Zydus Wellness.

18
Clients-

19
Agencies:

DDB mudra group

1. DDB Mudra Max-

DDB mudra max Experiential

DDB Mudra Max Media

DDB Mudra Max OOH

2. DDB Mudra-

DDB mudra North

DDB mudra South & East

DDB Mudra West

3. 22feet Tribal Worldwide

4. DDB Remedy

5. TracyLocke

6. TrackDDB

20
Mudra Creative:

 Youtube

 Print

 OOH

 Events & Retails

21
 Digital

22
Awards:

 PMAA- Dragons of Asia 2015-


DDB MudraMax won the prestigious „Best promotinal Marketing Agency in Asia‟ at
the coveted 15th Dragons of Asia Awards by PMAA.
 Spikes Asia 2015-
Mudra returned from 2015 Spikes Asia with a total tally of three awards- one silver
for Misunderstood Scoreboard, in the Promo and activation, one bronze for
Volkswagen‟s „Don‟t drink and Drive- Vodka‟ in Film category and one for Health
Cha Shree Ganesh in Branded Content & Entertainment category.
 Kyoorius Design Awards 2015-
DDB Mudra Group emerged triumphant with a Blue Elephant at the Kyoorius Design
Awards for Volkswagen‟s Identity Bi- Xenone Headlamp campaign along with two
in-book shortlists for Health Cha Shree Ganesh.
 Campaign for Dignity Awards 2015-
Out of hundreds of entries received from across India, eight shortlists were chosen
from DDB Mudra Group. From those, DDB Mudra North was presented a silver
award for its poster submission called „Buddha‟.
 WOW Awards 2015-
With two Golds for „Health Cha Shree Ganesh‟ and „Misunderstood Scoreboard‟ and
two Silvers for Green Batti Project, we were all smiles at WOW Awards 2015.
 DMA Echo Awards 2015-
RAPP India‟s well received HP Bend The Rules campaign starring Abish Mathew
was awarded a Bronze along with the Direct mailing campaign for HDFC Bank
Commercial Vehicle Loan at these coveted awards.
 EMVIES 2015-
DDB Mudra Group was awarded a silver for Misunderstood Scoreboard and a bronze
for Health Cha Shree Ganesh at the coveted EMVIES 2015.
 CLIO Awards 2015-
We brought a bronze in the Out of Home category for „The Misunderstood Score
Board‟ done for Zee News. The Clio Awards is an annual award program that
recognizes innovation and creative excellence in advertising, design and
communication.

23
And many more-
 AMES 2015 (Asian Marketing Effectiveness Strategy conference & Awards)
 FAB Awards 2015
 Cannes Lions 2015
 D&AD Awards
 NEON Awards 2015
 Kyoorius 2015
 ABBY 2015
 ADFEST 2015
 Campaign India Agency of the Year 2014
 EFFIES 2014
 Spikes Asia 2014
 CNBC TV 18 OverDrive 2013 & 2014
 PMAA Awards 2013-2014
 E4M OOH & Conference awards 2013-2014
 Creative & Media ABBY 2013-2014
 Big Bang Awards 2013-2014
 OAA OAC 2013
 Kyoorius Design Yatra 2013 & Kyoorius D&AD Awards 2014 2013-2014
 Pepper Awards 2013
 World HRD Congress 2013
 India Innovations Award 2013
 Cannes Lions 2013

Campaign Agency of the year 2013

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Vision:

To be India‟s most influential

Communications Company

Mission:

Build brands that create conversations,

Inspire movements and influence changes.

Values:

Unleash Creativity.

Be daring,Be fresh,Be fun.

Celebrate Humanity.

In all its glory. With respect,empathy and honesty.

Collaborate,Co-create,Cross-pollinate.

Together,I am better.

Nurture the four freedoms.

From Fear. From Chaos. To Fail. To Be.

People. Product. Profit.

In that order.

25
Competitor’s Information

 WPP group:
WPP plc, (Wire and Plastic Products) is a British multinational advertising company
and public relations company with its main management office in London, England,
and its executive office in Dublin, Ireland. It‟s the world‟s largest advertising
company by revenues, and employs approximately 190,000 people in 3,000 offices
across 112 countries. It owns a number of advertising, public relations and market
research networks, including IMRB, Grey, Burson-Marsteller, Millward Brown, Hill
& Knowlton, JWT, Ogilvy & Mather, TNS, Young & Rubicam and Cohn & Wolfe. It
is now one of the four big agency companies, along with Publicis, Omnicom and
Interpublic Group of Companies. WPP has a primary listing on the London Stock
Exchange and is a constituent of the FTSE 100 Index. It has a secondary listing on
NASDAQ.

 Publicis Group:
Publicis Groupe is a French multinational advertising company and public relations
company and is one of the largest marketing and communications companies in the
world, by revenue, headquartered in Paris. After 1945 the not so well known Paris
based advertising agency grew at a rapid speed, becoming the world's fourth largest
agency. It was a leader in promoting France's post-war economic boom, especially the
expansion of the advertising industry was successful because of its close tie ups with
top officials of the French government, its clever use of symbols to promote itself and
has the ability to attract clients from its widely diverse growing industries.

It is now one of the "Big Four" agency companies, alongside WPP, Interpublic and
Omnicom. Publicis Groupe S.A. is led by Maurice Lévy, and its agencies provide
digital and traditional advertising, media services and marketing services (SAMS) to
national and multinational clients.

Although it was announced in July 2013 that Omnicom Group and Publicis Groupe
would merge to form Publicis Omnicom Group, by May 2014 it was announced that
the deal had fallen through and the Publicis-Omnicom merger would not happen.

26
 Interpublic Group:
The Interpublic Group of Companies, Inc. (IPG) is a publicly traded advertising
company.

The company consists of three major networks- Lowe and Partners, McCann
Worldgroup, and FCB. Its media agencies are pushed under the IPG Mediabrands
entity. It also owns a number of specialty agencies, including public relations, sports
marketing, talent illustration, and healthcare. It is now one of the "Big Four" agency
companies, alongside WPP, Publicis and Omnicom. Michael Roth is the current CEO.

27
SWOT Analysis:

Strengths:

1. Strong network in India


2. Satisfying the need of the clients
3. Meeting up the client requirement in time
4. Innovation & creative in advertisement segment
5. Quality in advertisement
6. Global exposure with higher rewards & appreciation
7. Efficient team work environment
8. Expertise and experienced workforce

Weaknesses:

1. Market share is limited due to many competitors


2. Geographic penetration is also limited

Opportunities:

1. Online advertising is a new source of revenue


2. Adapting new strategies for market research brings in more revenues
3. Decentralized decision making is helpful as local marketing needs vary from one
region to another
4. Entering in global market to attract global clients

Threats:

1. Increasing lawsuits due to sheer negligence in preparation of ads


2. Recession may hit the industry as cut is primarily on marketing budget of corporates
3. Cut-throat competition offered by other players in the industry
4. Challenging stiff competition from its competitors from both domestic and
international levels
5. Changes in the taste and preferences of clients

28
THEORETICAL BACKGROUND OF THE STUDY

Commercial plantations of coffee started in India during the 18th century. Over the years, the
Indian coffee industry has earned a distinct identity on the coffee map of the world. India is
the only country in the world where all coffees are grown under a „well-defined two-tier
shade canopy of evergreen leguminous trees‟. India is today home to 16 unique varieties of
coffees sourced from 13 distinct coffee growing regions; most of them in the southern part of
the country. The different varieties of Indian coffees are well suited for cappuccinos and
espressos alike and have no parallel in any other coffee growing nation globally. India‟s
coffee regions are one of the 25 biodiversity hotspots in the world.

India is the world‟s sixth largest producer of coffee, with a production of 304 thousand metric
tons (MT) in 2013, of which 125 thousand MT is the domestic consumption1 with the per
capita consumption being ~90 gm per year. The major channels for domestic trade are
modern, traditional retail, and national and international café chains. The retail coffee trade is
largely dominated by branded players, with Nestlé and Hindustan Unilever being the
category‟s leaders accounting for approximately 60-70% of the retail market (by value) in
2012. Other brands include Tata Coffee and regional players like Narasus, Cothas, and Leo‟s
which compete strongly in the respective markets.

Instant Coffee:

Instant coffee, also called soluble coffee, coffee crystals and coffee powder, is a beverage
derived from brewed coffee beans that enables people to quickly prepare hot coffee by adding
hot water to the powder or crystals and stirring. Instant coffee is commercially prepared by
either freeze-drying or spray drying, after which it can be rehydrated. Instant coffee in a
concentrated liquid form is also manufactured.

Advantages of instant coffee include speed of preparation (instant coffee dissolves quickly in
hot water), lower shipping weight and volume than beans or ground coffee (to prepare the
same amount of beverage), and long shelf life though instant coffee can spoil if not kept dry.
Instant coffee also reduces cleanup since there are no coffee grounds.

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Consumer Preference:

The underlying foundation of demand, therefore, is a model of how consumers behave. The
individual consumer has a set of preference and value whose determination are outside the
realm of economies. They are no doubt dependent upon culture, education, and individual
tastes, among a plethora of other factors. The measure of these values in this model for a
particular good is in terms of the real opportunity cost to the consumer who purchases and
consumes the product. If an individual purchases a particular product, then the opportunity
cost of that purchase is the forgone goods the consumer could have bought instead.

We develop a model in which we map or graphically derive consumer preferences. These are
measures in terms of the level of satisfaction the consumer obtains from consuming various
combinations or bundles of goods. The consumers objective is to choose the bundle of goods
which provides the greatest level of satisfaction as the consumer defines it. But consumers
are defined by the consumers income, and the prices the consumer pays for the product.

Types of instant coffee:

The study is based on three different instant coffees namely:

 Nescafe instant coffee


 Bru instant coffee
 Tata coffee

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HISTORY:

NESCAFE was launched on a crisp spring day in Switzerland. But the story of NESCAFE
actually starts a few years earlier, in 1929, when Nestlé was asked to find a solution to
Brazil‟s large supply of surplus coffee resulting from the Wall Street Crash. This request
wasn‟t just the start of creating a brand new coffee experience; it was the start of a lasting
relationship with Brazil‟s coffee farmers and our pioneering future with coffee.

And so, on April 1st 1938, after several years of innovation and hard work, we shared our
creation, and introduced the world to a deliciously rich coffee they could create in an instant.
Since then, we‟ve become the world‟s leading coffee brand - available in over 180 countries
and with 5,500 cups consumed every second.

Marketing mix of Nescafe:

The 4P‟s that make Nescafe‟s marketing mix a success:

Products:

There are over 5000 different products within the Nescafe family. The following are a few
brands under the umbrella name:

 Nescafe Original Blend  Nescafe Black Gold


 Nescafe Classic  Nescafe Blend 43
 Nescafe Clasico  Nescafe Blend 37
 Nescafe Dolca  Nescafe Decaff

 Nescafe Fine Blend

and many more.

31
Promotion:

Nestle has used a number of advertising strategies throughout the years to make the product
Nescafe appealing.

Such as:

 Television commercials  Internet- social networking sites


 Advertising Campaigns  Public relation activity
 Newspapers/Magazines  Quantity Discounts
 Print ads  Etc

Price:

Nestle has adopted the strategy of none-price competition. It ensures that traders don‟t take
advantage and hike prices by maintaining uniform pricing for all its products, including
Nescafe. It offers generous discounts to its distributors. Different Nescafe brands come with
different prices depending on how they are made. Nescafe has estimated other cost factors
such as labor and considered mass production in order to reduce the price and make it more
affordable in India. However, being one of the premium brands it enjoys a high stature and
acceptability at a relatively high cost than its nearest competitors.

 Skimming strategy  Price leadership strategy


 Product mix Pricing strategy  Price flexibility strategy
 Price adjustment strategy
Place:

Nestle company follows the FMCG strategy of distribution. The two channels are:

 Manufacturer - Agents - Distributors - Retailers


 Manufacturer – Bulk buyers - Consumers

Availability:

 Retail shops
 Malls
 Departmental stores
 Corporates and media Houses

32
NESCAFE ANALYSIS
Parent Company Nestle
Category Beverages
Sector Food Products
Tagline/ Slogan One Nescafe many coffees ;Good Food Good Life
USP 100% pure instant coffee

STP ANALYSIS

Segment People looking to make coffee instantly


Target Group All people in the upper and middle class
Positioning 100% pure coffee made from finest coffee beans

SWOT ANALYSIS

Strengths:

 Strong Nestle brand name


 Excellent advertising and visibility
 Good product distribution and availability
 Lots of flavors and varieties available

Weaknesses:

 Health conscious people avoid coffee as it Contains caffeine

Opportunities:

 Tie-ups with corporates


 Cheaper packets for rural areas

Threat:

 Health conscious people avoiding coffee

33
Nescafe Advertisements

 TV commercials:
 #StayStarted with NESCAFÉ | RJ Rishi‟s story | 2016

 NESCAFÉ Cartoonist | #ItAllStarts | New Ad 2015

 NEW NESCAFÉ AD 2014 | #ItAllStarts

 Campaigns/ Exhibitions/Events:

34
(Source facebook)

 Facebook:

 Twitter:

35
 Print Ads:

 Road Ads:

 Billboards:

36
History:

A part of Hindustan Lever, BRU Coffee is India's largest and favourite coffee brand that
offers a range of Indian and international coffee products. Since 1968, BRU has constantly
endeavored to bring varied types of authentic coffee with premium tastes to Indian
consumers. After conducting innumerable coffee trials with coffee samples, we personally
select the best coffee beans and freshly roast them to serve you a great cup of rich aromatic
coffee, whether it's coffee at home or at BRU World Café. BRU-ed with love and blended
with passion to make a perfect coffee recipe, BRU Coffee lets you discover the lovely
moments of your life, with a flavour of happiness.

Marketing Mix of Bru coffee:

The 4P‟s of Bru instant coffee:

Products:

Bru Coffee is leading coffee brand in India and offers several varieties like:

 Bru Lite
 Bru Exotic
 Bru Cappuccino
 Bru Gold
 Bru Roast & Ground
 Bru Instant
 Bru Select

Promotion:

Bru Coffee has established itself as a strong brand because of high standards in advertising.

37
Such as:

 Television commercials
 Advertising Campaigns
 Newspapers
 Print ads
 Internet- social networking sites
 Public relation activity
 Etc

Price:

Bru Coffee has always maintained a reasonable pricing policy for its product that has resulted
in keeping its prices low and affordable. Its penetration pricing policy has helped it to capture
urban markets and has resulted in high product sales. Bru has launched large and economic
packs, medium packs and single-serve packs that have allowed consumers to try it and later
purchase the products according to their necessity and prices. The company has kept its
prices knowingly lower than that of its main competitors under competitive pricing policy to
take over its consumer base. This has resulted in an increased number of customers and thus
bigger sales and higher profit margins.

 Penetration pricing policy


 Competitive pricing policy

Place:

Availability:

 Retail stores
 Corporates and media houses
 Bru Café World

38
BRU ANALYSIS
Parent Company HUL
Category Coffee
Sector Food Products
Tagline/ Slogan Bru se hoti hain khushiyaan shuru
USP India‟s largest coffee brand

STP ANALYSIS

Segment People looking to make coffee instantly


Target Group All people in the upper and middle class
Positioning Coffee that makes special moments of genuine warmth and
happiness

SWOT ANALYSIS

Strengths:

 Strong brand name


 Excellent advertising and visibility
 Good product distribution and availability
 Lots of flavors and varieties available

Weaknesses:

 Coffee as a category still nascent in many countries like India

Opportunities:

 Tie-ups with corporates


 Cheaper packets for rural areas

Threats:

 Health conscious people avoiding coffee

39
Bru Advertisements

 TV commercials:
 BRU Instant TV ad - 'Love is BRU'

 Bru TV ad Kannada

 Campaigns/ Exhibitions/Events:

(Source Facebook)

40
 Facebook:

 Twitter:

 Print Ads:

41
History:

Tata Coffee is coffee company owned by the Tata Group. The company owns 19 coffee
estates in southern India. The estates are spread across the districts of Coorg, Chickmaglur,
and Hassan in Karnataka and Valparai district in Tamil Nadu. Tata Coffee is the largest
integrated coffee plantation company in the world.

Tata Coffee entered into a coffee sourcing and roasting agreement with Starbucks Coffee
Company to supply coffee beans to its coffee chains in India. Both agreed to work toward
developing and improving the profile of Indian-grown arabica coffees around the world by
elevating the stature of Indian coffee, as well as improving the quality of coffee through
sustainable practices and advanced agronomy solutions.

Marketing Mix of Tata Coffee:

Products:

 Mr.Bean
 Coorg Pure
 Coorg Double Roast
 Instant Coffee-Freeze dried/Spray dried/Agglomorated
 Green bean-Commodity/Specialty

Promotion:

 Television commercials
 Advertising Campaigns
 Print ads
 Internet- social networking sites
 Etc

42
Price:

 Penetrating pricing strategy

Place:

Availability:

 Retail stores
 Online apps

TATA COFFEE ANALYSIS

Parent Company Tata Group


Category Food Processing
Sector Food and Beverages
Tagline/ Slogan Discover the refreshing world of Tata Coffee
USP Refreshing taste of coffee

STP ANALYSIS

Segment People looking to have quality coffee


Target Group All people in the upper and middle class
Positioning Experience the best refreshing coffee

SWOT ANALYSIS

Strengths:

 Strong brand name and one of the largest integrated coffee plantation in the world
 Has brought about continuous improvement in harvesting and processing techniques
by working with Starbucks
 Has diversified into timber business as well under brand name “Conswood”
 Strong backing by parent company

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 Good distribution and availability
 Good visibility through print ads

Weaknesses:

 Intense competition means limited market share


 Health conscious people avoid coffee as it Contains caffeine

Opportunities:

 Also, domestic consumption being very small, there lies a huge opportunity to expand
the market with the help of intensive coffee promotion
 Opportunity in terms of diversification into other businesses

Threats:

 Cheap labour is one of the most critical cost factors in coffee production. Substantial
increase in labour cost can erode competitiveness of Indian coffee in the international
markets
 Coffee is one of the few agricultural crops in India which is subject to taxes
 Russia, the largest importer of coffee from India, is undergoing an economic crisis. As
a result, it has suspended coffee imports

44
Tata Coffee Advertisements

 TV commercials:
 Tata Coffee Grand - TVC

 Tata Coffee Grand

 Twitter:

 Print Ads:

(Source Twitter)

45
ANALYSIS AND INTERPRETATION

OF THE DATA

The Study was structured based on research questions relevant to the industry standards and
research. The questions determine the various sources used by the brands to advertise and
promote their products in the market giving its measured effectiveness in promotions and
brand ranking.

Each question was designed to compare which brand is doing good in the market and to know
its draw backs and the areas its need to work on in order to face its competitors in the market.

In order to compare the three brands, 15 questioned were framed and were compared based
on various factors such as Advertisements, Quality, Quantity, Brand name, Taste, Price, and
Easy Availablity and also on various sources or medium of advertisements.

The samply size used for the research study was 100 respondents only, due to time contrait
and focused majorly no the group of respondents who are 23 yrs of age and above.

46
Table No- 4.1

Distribution of respondents according to what they do in their leisure time

Particulars Respondent‟s
Sports 15
Surfing net 44
Watching T.V 31
Going for a walk 16
Go out with friends(to Café, malls, movies) 36
Make a cup of coffee and spend some time with
your own self or family 15

Chart No- 4.1

Distribution of respondents according to what they do in their leisure time

Repondents
60

40

20

Source : Primary data

Inference:

From the above table, out of 100 respondents, 44 of them spend their leisure time surfing net
which being the highest, followed by 36 repondents who spend their time going out with
friends to cafes,malls and movie, and the third highest being, 31 of them who watch televison
during their leisure time and the rest of the respondents prefer to play some sport , few go out
to walk and few love to make a cup of coffee and spend some time with your own self or
family.

47
Table No- 4.2

Distribution of respondents according to what Beverage they like to have

Particulars Respondent‟s
Coffee 58
Tea 13
Both 29
Total 100

Chart No- 4.2

Distribution of respondents according to what Beverage they like to have

Repondents
60
50
40 Coffee
30 Tea
20 Both
10
0
Coffee Tea Both

Source : Primary data

Inference:

From the above table, out of 100 respondents 58 of the them prefer to have coffee, and 13 of
them drink tea and 29 of the respondents prefer both tea and coffee.

Based on the sample research we can say that the highest percentage of respondents prefer to
drink coffee which sum up to more then 50% of the respondents making it the most preferred
beverage.

48
Table No- 4.3

Distribution of respondents according to the number of times they

prefer to have coffee in a day

Particulars Respondent‟s
Once a day 32
Twice a day 49
More than 2 times 10

Chart No- 4.3

Distribution of respondents according to the number of times they

prefer to have coffee in a day

Repondents

50
40
30 Once a day

20 Twice a day
More than 2 times
10
0
Once a day Twice a day More than 2
times

Source : Primary data

Inference:

From the above table, we can say that 49 respondent perfer to drink coffee twice a day, which
sum up to nearly 50% of them, making it the highest percentage. Followed by 32 of them
who choose to have coffee only once a day and very few of them i.e, 10 of them prefer to
drink coffee more then twice a day,which is the lowest percentage.

49
Table No- 4.4

Distribution of respondents according to the amount of money they

spend on a coffee per month (In Rupees)

Particulars Respondent‟s
50 20
50-150 31
150-300 29
300 Above 16

Chart No- 4.4

Distribution of respondents according to the amount of money they

spend on a coffee per month (In Rupees)

Respondent’s
50 50-150 150-300 300 Above

31 29
20
16

50 50-150 150-300 300 Above

Source : Primary data

Inference:

From the above table we can say that the 31 respondents are ready to spend around 50 to 150
rupees per month on coffee, which is the highest percentage out of other catogary of
respondents. The second highest been respondents who spend around 150-300 on coffee.
Followed by 20 of them who spend 50 or less than 50 rupees per month and very few of them
spend 300 or more, making it the lowest of them all.

50
Table No- 4.5

Distribution of respondents according to what Brand of coffee prefer

Particulars Respondent‟s
Nescafe 21
Bru 53
Tata Coffee 4

Chart No- 4.5

Distribution of respondents according to what Brand of coffee prefer

60

50

40 Nescafe

30 Bru
Tata Coffee
20

10

0
Nescafe Bru Tata Coffee

Source : Primary data

Inference:

From the above table, we can say that more then 50% of the respondents, to be exact 53 of
them prefer to drink bru instant coffee, making it the most highest preferred coffee among
nescafe and tata coffee. Followed by 21 of them who would like to drink nescafe, making it
the second most preferred coffee and tata coffee being the least by only 4 respondents who
drink tata coffee out of 100 respondents.

51
Table No- 4.6

Distribution of respondents according to the rank they would

Choose for a brand

Particulars/ Respondent‟s
Ranks 1 2 3 4 5
Nescafe 0 2 24 27 14
Bru 0 2 31 37 15
Tata Coffee 8 14 14 4 2

Chart No- 4.6

Distribution of respondents according to the rank they would

Choose for a brand

40 37

35 31
30 27
24
25
20
14 14 14 15
15
8
10
4
5 2 2 2
0 0
0
1 2 3 4 5

Nescafe Bru Tata Coffee

Source : Primary data

Inference:

From the table , the respondents have ranked all the coffee brands on the scale of 1 to 5, 1
being the lowest and 5 being the highest.

Based of the ranking given by the respondents we can say that 27 respondents have given 4th
rank to nescafe, which means that 27 of them are satisfied with nescafe brand, followed by 24

52
of them who placed nescafe at 3th rank and only 14 of them have ranked it at 5th rank which
means that only 14 of them are highly satisfied with nescafe coffee brand. We also can see
that only 2 of the respondents have given 2nd rank and none of the respondents have placed
nescafe at 1st , which is the lowest rank. Hence we can say that 27 of them are satisfied and
none are dissatisfied with nescafe brand, which is a good response in all.

Coming to bru instant coffee, the ranking given by the respondents based on research we can
say that 37 respondents have given 4th rank to bru, which means that 37 of them are satisfied
with nescafe brand, followed by 31 of them who placed bru at 3th rank, which is close
enough to respondents ranking bru at 4 and only 15 of them have ranked it at 5th rank which
means that only 15 of them are highly satisfied with bru coffee brand. We also can see that
only 2 of the respondents have given 2nd rank and none of the respondents have placed bru at
1st , which is the lowest rank. Hence we can say that 37 of them are satisfied and none are
dissatisfied with bru brand, which is a good news for the brand.

Coming to Tata coffee, only 14 respondents have placed tata coffee at 3rd rank, which is a
neutral level where the respondent is neither satisfied nor is dissatisfied and also equal
number of them i.e; 14 of them have given 2nd rank which is level of disstisfaction. We can
see that 8 of them have given 1 rank to tata coffee which is the lowest rank where the
respondent is highly dissatisfied with the brand. From the research we see that only 4 of them
have given 4th rank and only 2 have them have given 5th rank to tata coffee which means that
out of 100 respondents only 2 of them are highly satisfed with the brand which surely is a bad
news for the brand.

Based on the above analysis we can say that Bru coffee is doing well among the other two
brands with 37 of the respondents being satisfied with the Bru compared to nescafe with 27
respondents and the lowest being Tata coffee with only 4 respondents.

Also, we can say that Bru and Nescafe are doing good as none of the respondents have place
them on rank 1 whereas, 8 of them have placed Tata coffee at rank 1 which is not so good for
Tata coffee brand.

53
Table No- 4.7

Distribution of respondents according to where they saw the

Advertisment for a particular brand of coffee

Respondent‟s
Particulars Nescafe Bru Tata Coffee
TV commercials 63 77 18
Facebook/Twitter 15 14 4
Campaigns 11 4 2
Print Ads 22 31 4
Coffee corners 13 13 4
Exhibitions 2 7 6
YouTube videos and Ads 13 22 4

Chart No- 4.7

Distribution of respondents according to where they saw the

Advertisment for a particular brand of coffee

Source : Primary data

Inference:

From the above,we can see the various sources of advertisments and promotions used by the
three brands on how they reach out to their customers,

54
Firstly coming to T.V Commercials, we can see that Bru commercial have been able to leave
a good impression on the respondents as 77 out of 100 respondents have seen the Bru ads that
means Bru ads have be successful in creating a good positioning for the brand in the minds of
the respondents. Nescafe is also been successful as 63 respondents have seen and are well
known with the brand and coming to Tata coffee only 18 respondents have seen the
commercial which shows that tata coffee has not been able to place itself successfully in the
minds of the respondents. Hence when it comes to T.V commercials Bru is doing when
compared to Nescafe and Tata coffee.

Coming to Social media advertising such as Facebook and Twitter, 15 respondents have seen
Nescafe ads on these sites and Bru not being too far, with 14 of them seing Bru ads on these
sites and the lowest again being Tata coffee with only 4 of them. Hence, when it comes to
facebook and twitter advertising of brands Nescafe is on lead and Tata coffee is the least.

Campaigns advertising is been successfully run by Nescafe as 11 respondents have seen their
campaigns, where as only 4 and 2 of them have seen Bru and Tata Coffee campaigns. Hence,
comparing the percentage we can say that Nescafe is doing well compared to other two when
is comes to campaign advertising.

Prints Ads are than most common and highly used source of advertising products and
services, based on research Bru print ads have been more successful than other two brands
with 31 respondents being more familiar with the Bru print ads and 22 of them have seen and
noticed Nescafe Prints ads and again the lowest being Tata coffee with only 4 respondents.
Hence, comparing all three of them Bru in more successful than the other two.

Coffee corners and best hang out place for a lot of them who want to spend there leisure time
with family and friends, when it comes to promoting or advertising the brand Nescafe and
Bru coffee both stand equal with 13 respondents each, followed by only 4 respondents to Tata
Coffee.

Exhibitions are also a source of promoting products and service to the public and when it
comes to promoting coffee brand, 7 respondents have seen Bru coffee at exhibitions and Tata
Coffee at 2nd place with 6 respondents and the least to Nescafe with only 2 respondents.
Hence, Bru and Tata coffee are doing good compared to Nescafe. This could be because
Nescafe does not really do much of advertising throught exhibitions.

55
YouTube videos and Ads are most preferred form of advertising as more percentage of
people are seen surfing net in their leisure time through are study, hence advertising on
YouTube would help reach out to a larger group of customers. From the above table we can
see that 22 respondents have seen Bru Ads on Youtube and 13 of them have seen Nescafe
and only 4 of them have seen Tata Coffee ads. Again making Bru more successful than the
other two.

Hence over all research shows that Bru coffee has been more successful in advertising its
products through T.V Commercials,Prints Ads, coffee corners,Exhibitions and Youtube Ads.
Nescafe stands on second and Tata Coffee standing on the last.

56
Table No- 4.8

Distribution of respondents according to the factors that influence respondent to

purchase a particular brand of coffee

Respondent‟s
Particulars Nescafe Bru Tata Coffee
Brand Name 20 31 2
Quality 36 38 2
Taste 31 50 4
Price 22 26 2
Advertisements 18 29 0
Easily available 18 28 0

Chart No- 4.8

Distribution of respondents according to the factors that influence respondent to

purchase a particular brand of coffee

Nescafe Bru Tata Coffee


50

36 38
31 31 29
26 28
20 22
18 18

2 2 4 2 0 0

Source : Primary data

Inference:

From the above,we can see the various factors that influence that customer to purchase a
praticular brand of coffee.

57
Firstly coming to Brand name, we can see that Bru coffee has been able to leave a good
impression on the respondents as 31 out of 100 respondents have influnced by the brand
name of Bru that means Bru coffee has be successful in creating a good positioning for the
brand in the minds of the respondents. Nescafe is also close in race with 20 respondents who
are well known with the brand and coming to Tata coffee only 2 respondents are influenced
with the Tata brand which shows that tata coffee has not been able to place itself successfully
in the minds of the respondents. Hence when it comes to Brand name Bru is doing when
compared to Nescafe and Tata coffee.

Coming to Quality of the coffee, 38 respondents are influenced to purchase Bru coffee and
Nescafe not being too far, with 36 of them purchasing Nescafe and because of the quality of
coffee it offers and the lowest again being Tata coffee with only 2 of them. Hence, when it
comes to quality of coffee being offered Bru coffee is on lead and Tata coffee is the least.

At the end of the day what satisfies any customer is the taste of the coffee, when it comes to
taste Bru coffee is been successfully with 50 respondents who have been influenced with the
taste of the coffee, and 31 respondents prefer to have Nescafe, where as only 4 of them like to
have Tata Coffee. Hence, comparing the percentage we can say that Bru is doing well
compared to other two when is comes to Taste of the coffee.

Pricing i.e, the Price of the product has a huge influence on purchase decision and is the most
common factor of them all. Based on research the price of Bru coffee has influenced the
customers more successful than other two brands with 26 respondents being more influenced
with the Price of Bru and 22 of them with prices of Nescafe coffee and again the lowest being
Tata coffee with only 2 respondents. Hence, comparing all three of them Bru in more
successful in influencing the customers with its attractive and affordable pricing stratergy
than the other two.

Advertisements today also have a huge role to play in influencing the customers to purchase a
particular product or service, when it comes to advertisement the Bru coffee advertising has
influenced 29 respondents and Nescafe advertisements has influenced 18 respondents to
purchase its product, coming to Tata Coffee,it has failed to attract or influence zero
respondents to purchase it product.

The Availability of the products and service to the public also influences the customers to
purchase a particular coffee brand, 28 respondents find Bru coffee more easily available than

58
and Nescafe with 18 respondents and Zero percent f respondents do not find Tata coffee
easily available at all. Hence, Bru and Nescafe coffee are doing good compared to Tata
Coffee.

Hence over all research shows that Bru coffee has been more successful in Influencing
customers to purchase its products considering various factor suchn as Brand name,Quality,
Taste, Price, Advertising and Easy availability, Nescafe stands on second and Tata Coffee
standing on the last.

59
Table No- 4.9

Distribution of respondents according to the different features of each

brand on the scale of 1 to 5

Respondents
Particulars Nescafe Bru Tata Coffee
Ranking 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Brand Name 0 2 18 25 18 2 2 30 23 18 7 18 16 2 4
Quality 0 6 17 27 14 2 7 28 24 14 8 16 18 0 0
Taste 0 2 20 21 14 0 1 29 27 12 6 12 10 4 0
Price 4 11 17 19 10 6 10 28 19 10 8 16 6 6 0
Advertisements 0 4 18 16 19 0 2 17 29 18 10 14 8 4 0
Easily Avaliable 0 7 10 20 18 0 0 30 20 20 12 16 8 2 0

Chart No- 4.9 (a)

Distribution of respondents according to the different features of each

brand on the scale of 1 to 5

Nescafe

30

20

10

0
Brand Name Quality Taste Price Advertiseme Easily
nts available
1 0 0 0 4 0 0
2 2 6 2 11 4 7
3 18 17 20 17 18 10
4 25 27 21 19 16 20
5 18 14 14 10 19 18

Source : Primary data

60
Inference:

From the table , the respondents have ranked all the coffee brands on the scale of 1 to 5, 1
being the lowest and 5 being the highest.

Firstly coming to Brand name , based of the ranking given by the respondents we can say that
25 respondents have given 4th rank to the Brand name of Nescafe coffee , followed by 18 of
them who placed nescafe at 3th rank and equal number , i.e, 18 of them have ranked it at 5th
rank when it comes to Brand name of nescafe coffee. We also can see that only 2 of the
respondents have given 2nd rank and none of the respondents have placed nescafe at 1st ,
which is the lowest rank.

Secondly coming to Quality of the coffee , based of the ranking given by the respondents we
can say that 27 respondents have given 4th rank to nescafe, which means that 27 of them are
satisfied with the quality of nescafe coffee, followed by 17 of them who placed nescafe at 3th
rank and with 14 of them who have ranked it at 5th rank which means that 14 of them are
highly satisfied with quality of nescafe coffee. We also can see that only 6 of the respondents
have given 2nd rank and none of the respondents have placed nescafe at 1st , which is the
lowest rank.

At the end of the day what satisfies any customer is the taste of the coffee, when it comes to
taste, based of the ranking given by the respondents we can say that 21 respondents have
given 4th rank to nescafe, which means that 21 of them are satisfied with the taste of nescafe
coffee, followed by 20 of them who placed nescafe at 3th rank which is close to 4th rank and
with 14 of them who have ranked it at 5th rank which means that 14 of them are highly
satisfied with the taste of nescafe coffee. We also can see that only 2 of the respondents have
given 2nd rank and none of the respondents have placed nescafe at 1st. Hence we can say that
21 of them are satisfied and none are dissatisfied with the taste of the nescafe coffee, which
is a good response in all.

Pricing i.e, the Price of the product has a huge influence on purchase decision and is the most
common factor of them all. Based on the ranking given by the respondents we can say that 19
respondents have given 4th rank to nescafe, which means that 19 of them are satisfied with
the Price of nescafe coffee, followed by 17 of them who placed nescafe at 3th rank which is
close to 4th rank and with 10 of them who have ranked it at 5th rank which means that 10 of
them are highly satisfied with the pricing of nescafe coffee. We also can see that 11 of the

61
respondents have given 2nd rank which is close to the number of respondents who are highly
satisfied with the prices and 4 of the respondents have placed nescafe at 1st which means that
they are highly dissatisfied with the pricing of Nescafe coffee.

Advertisements today also have a huge role to play in influencing the customers to purchase a
particular product or service, based on the ranking given by the respondents we can say that
19 respondents have given 5th rank to the advertisements of the nescafe coffee and 18 have
placed them on 3rd followed by 16 of them on 4th and we can see that none of them have
placed Nescafe advertisements on 1st which mean that Nescafe is going good in its
advertisements with more respondents in 4th and 5th rank.

Easy availablity is important for any product to reachout to the customers, 20 respondents
have given 4th rank to nescafe, followed by 10 of them who placed nescafe at 5th rank which
is close to 4th rank and is the highest rank and with 10 of them who have ranked it at 3rd rank.
We also can see that only 7 of the respondents have given 2nd rank and none of the
respondents have placed nescafe at 1st. Hence we can say that 2 of them are satisfied with the
easy availablity of the product in their locality and none are dissatisfied which is a good
response in all.

62
Chart No- 4.9 (b)

Distribution of respondents according to the different features of each

brand on the scale of 1 to 5

Bru

30
25
Axis Title

20
15
10
5
0
Brand Name Quality Taste Price Advertisemen Easily
ts available
1 2 2 0 6 0 0
2 2 7 1 10 2 0
3 30 28 29 28 17 30
4 23 24 27 19 29 20
5 18 14 12 10 18 20

Source : Primary data

Inference:

From the table , the respondents have ranked all the coffee brands on the scale of 1 to 5, 1
being the lowest and 5 being the highest.

Firstly coming to Brand name , based of the ranking given by the respondents we can say that
30 respondents have given 3rd rank to the Brand name of Bru coffee which is not too good
nor too bad, followed by 23 of them who placed Bru at 4th rank and 18 of them have ranked
it at 5th rank when it comes to Brand name of nescafe coffee which is the highest rank. We
also can see that only 2 of the respondents have given 2nd rank and also 2 of the respondents
have placed Bru at 1st , which is the lowest rank. Hence, the Brand name of Bru coffee stands
on neutral level.

Secondly coming to Quality of the coffee , based of the ranking given by the respondents we
can say that 28 respondents have given 3rd rank to quality of Bru coffee, which is not too
good nor too bad quality of Bru coffee, followed by 24 of them who placed Bru at 4th rank
and 14 of them have ranked it at 5th rank when it comes to quality of Bru coffee which is the
highest rank. We also can see that only 7 of the respondents have given 2nd rank and 2 of the
63
respondents have placed Bru at 1st , which is the lowest rank. Hence, the Quality of Bru
coffee stands on neutral level which is same as the level of Brand name.

At the end of the day what satisfies any customer is the taste of the coffee, when it comes to
taste, based of the ranking given by the respondents we can say that 29 respondents have
given 3rd rank to taste of Bru coffee, which is not too good nor too bad taste, followed by 27
of them who placed Bru at 4th rank and 12 of them have ranked it at 5th rank when it comes
to taste of Bru coffee which is the highest rank. We also can see that only 1 respondent has
given 2nd rank and none of the respondents have placed Bru at 1st , which is the lowest rank.
Hence, the taste of Bru coffee stands on neutral level which is same as the level of Brand
name and quality of the Bru coffee.

Pricing i.e, the Price of the product has a huge influence on purchase decision and is the most
common factor of them all. Based on the ranking given by the respondents we can say that 28
respondents have given 3rd rank to price of Bru coffee product, which is neutral level of
satisfaction, followed by 19 of them who placed Bru at 4th rank and 10 of them have ranked
it at 5th rank which is the highest rank. We also can see that same number of respondents have
also ranked the price at 2nd, i.e, 10 respondent has given 2nd rank and 6 of the respondents
have placed Bru at 1st , which is the lowest rank. Hence, the pricing of Bru coffee stands on
neutral level which is same as the level of Brand name and quality of the Bru coffee.

Advertisements today also have a huge role to play in influencing the customers to purchase a
particular product or service, based on the ranking given by the respondents we can say that
29 respondents have given 4th rank to the advertisements of the Bru coffee and 18 have
placed them on 5th which is the highest rank, followed by 17 of them on 3rd and we can see
that only 2 of them have placed Bru advertisements on 2nd and none on 1st rank hence
advertisements are reaching out successfully to the customers.

Easy availablity is important for any product to reachout to the customers, 30 respondents
have given 3rd rank to Bru, followed by 20 respondents each to 4th and 5th rank.We also can
see that none of them have ranked them on 1st nor 2nd place when it comes to easy
availability.

64
Chart No- 4.9 (c)

Distribution of respondents according to the different features of each

brand on the scale of 1 to 5

Tata coffee

18
16
14
Axis Title

12
10
8
6
4
2
0
Brand Name Quality Taste Price Advertisemen Easily
ts available
1 7 8 6 8 10 12
2 18 16 12 16 14 16
3 16 18 10 6 8 8
4 2 0 4 6 4 2
5 4 0 0 0 0 0

Source : Primary data

Inference:

From the table , the respondents have ranked all the coffee brands on the scale of 1 to 5, 1
being the lowest and 5 being the highest.

Firstly coming to Brand name , based of the ranking given by the respondents we can say that
18 respondents have given 2nd rank to the Brand name of Tata coffee which is highest
number of respondents which is not a good sign, followed by 16 of them who placed it at 3th
rank, next we can see that 7 of the respondents have placed nescafe at 1st , which is the lowest
rank. Followed with 4 of them who have ranked it at 5th rank when it comes to Brand name of
Tata coffee. We also can see that only 2 of the respondents have given 4th rank. Hence, we
can say that the Tata coffee is not been able to create a good brand name in the market.

Secondly coming to Quality of the coffee , based of the ranking given by the respondents we
can say that 18 respondents have placed it at 3rd place which is a not too good or too bad
level of satisfaction. Followed with 16 of them ranking it at 2nd and 8 of them at 1st which is
the lowest level. Its sad to know that none of the respondent have given it 4th nor 5th rank.
Hence, when it comes to quality of the tata coffee it has failed the level of satisfaction.

65
At the end of the day what satisfies any customer is the taste of the coffee, when it comes to
taste, based of the ranking given by the respondents we can say that 12 respondents have
placed it at 2nd rank which is less than the neutral level. Followed with 10 of them ranking it
at 3rd which is the neutral level and 6 of them at 1st which is the lowest level. Its sad to know
that only 4 respondents have given 4th rank and none of the respondent have given it 5th rank.
Hence, when it comes to taste of the tata coffee it not doing to good.

Pricing i.e, the Price of the product has a huge influence on purchase decision and is the most
common factor of them all. Based on the ranking given by the respondents we can say that 16
respondents have placed it at 2nd rank which is less than the neutral level and with 8 of them
ranking it at 1st which is the lowest level, followed with 6 respondents each who have ranked
it at 3rd and 4th which is the neutral level and a satisifaction level respectivily. Its sad to know
that none of the respondent have given it 5th rank. Hence, when it comes to Pricing as well
tata coffee it not doing to good.

Advertisements today also have a huge role to play in influencing the customers to purchase a
particular product or service. Based on the ranking given by the respondents we can say that
14 respondents have placed it at 2nd rank which is less than the neutral level and with 10 of
them ranking it at 1st which is the lowest level, followed with 8 respondents who ranked it at
3rd and 4 of them who have ranked it 4th rank a satisifaction level. Its sad to know that none of
the respondent have given it 5th rank. Hence, when it comes to advertising as well tata coffee
it not lived up to the expectation of the customers.

Easy availablity is important for any product to reachout to the customers, based on the
ranking given by the respondents we can say that 16 respondents have placed it at 2nd rank
which is less than the neutral level and with 12 of them ranking it at 1st which is the lowest
level, followed with 8 respondents who ranked it at 3rd and 2 of them who have ranked it 4th
rank a satisifaction level. Its sad to know that none of the respondent have given it 5 th rank.
Hence, when it comes to easy availability as well tata coffee it not lived up to the expectation
of the customers.

66
Table No- 4.10

Distribution of respondents according to satisfaction level of each coffee

Respondent‟s
Particulars Nescafe Bru Tata Coffee
Highly Satisfied 17 23 2
Satisfied 40 36 6
Neutral 18 26 24
Dissatisfied 0 0 14
Highly dissatisfied 0 0 10

Chart No- 4.10

Distribution of respondents according to satisfaction level of each coffee

40
35
30
25
Nescafe
20
Bru
15
Tata Coffee
10
5
0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied dissatisfied

Source : Primary data

Inference:

From the table , the respondents have ranked all the coffee brands based on the satisaction
level.

When it comes to Nescafe coffee, 40 respondents out of 100 respondents are satisfied with
the Nescafe coffee and 18 of them are stand neutral i.e, neither satisfied nor dissatisfied with

67
coffee. Followed with 17 respondents who are highly satisfied with the Nescafe coffee. Its
good to know that none of them neither disssatisfied nor highly dissatisfied with the Brand.

Coming to Bru instant coffee, 36 respondents out of 100 respondents are satisfied with the
Bru coffee and 26 of them are stand neutral i.e, neither satisfied nor dissatisfied with coffee.
Followed with 23 respondents who are highly satisfied with the Bru coffee. Its good to know
that none of them neither disssatisfied nor highly dissatisfied with the Brand.

Coming to Tata coffee, 24 respondents out 100 respondents stand on neutral level of
satisfaction where they are neither staisfied nor are dissatisfied with the brand. Followed with
14 respondents who are dissatisfied with the brand and 10 of them being highly dissatisfied.
We see that only 6 of the respondents are satisfied and only 2 are highly satisfied with the
Tata coffee brand. This is sad thing to know that customers are not really satisfied with the
Tata coffee.

Based on the above analysis we can say that Nescafe coffee is doing well among the other
two brands with 40 of the respondents being satisfied with the Nescafe compared to Bru with
36 respondents and the lowest being Tata coffee with only 6 respondents.

Also, we can say that Bru and Nescafe are doing good as none of the respondents have place
them on dissatisafaction nor highly dissatisfaction level whereas, 14 of them have placed Tata
coffee on dissatisafaction level and 10 of them on highly dissatisafaction level which is not so
good for Tata coffee brand.

68
Table No- 4.11

Distribution of respondents according to satisfaction level of respondents

based on the advertisements of each brand

Respondent‟s
Particulars Nescafe Bru Tata Coffee
Highly Satisfied 25 19 2
Satisfied 25 42 8
Neutral 19 18 16
Dissatisfied 2 0 13
Highly dissatisfied 0 0 10

Chart No- 4.11

Distribution of respondents according to satisfaction level of respondents

based on the advertisements of each brand

45
40
35
30
25 Nescafe
20 Bru
15 Tata Coffee
10
5
0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied dissatisfied

Source : Primary data

Inference:

From the table , the respondents have ranked all the coffee brands based on the satisaction
level of respondents based on the advertisements of each brand.

69
When it comes to Nescafe coffee, 25 respondents out of 100 respondents are satisfied and
equal number are highly satisfied as well with the Nescafe coffee advertisements and 19 of
them are stand neutral i.e, neither satisfied nor dissatisfied with coffee advertisements.
Followed with only 2 respondents who are dissatisfied with the advertisements. Its good to
know that none of them highly dissatisfied with the advertisements of Nescafe Coffee.

Coming to Bru instant coffee, 42 respondents out of 100 respondents are satisfied with the
Bru coffee and 19 of them are highly satisfied with the Bru coffee advertisements,followed
with 18 of them who stand neutral i.e, neither satisfied nor dissatisfied with coffee.Its good to
know that none of them neither disssatisfied nor highly dissatisfied with the advertisements
Brand.

Coming to Tata coffee, 16 respondents out 100 respondents stand on neutral level of
satisfaction where they are neither staisfied nor are dissatisfied with the advertisements.
Followed with 13 respondents who are dissatisfied with the advertisements and 10 of them
being highly dissatisfied. We see that 8 of the respondents are satisfied and 2 are highly
satisfied with the Tata coffee advertisements. This is sad thing to know that customers are not
really satisfied with the Tata coffee advertisements.

Based on the above analysis we can say that Bru coffee is doing well among the other two
brands with 42 of the respondents being satisfied with the Bru advertisements compared to
Nescafe with only 25 respondents and the lowest being Tata coffee with only 8 respondents.

Also, we can say that Bru and Nescafe are doing good as none of the respondents or very few
of them have place them on dissatisafaction nor highly dissatisfaction level whereas, 13 of
them have placed Tata coffee on dissatisafaction level and 10 of them on highly
dissatisafaction level which is not so good for Tata coffee brand.

70
Table No- 4.12

Distribution of respondents according to the satisfaction level they get in terms of

Quality and Quantity given for the price they pay

Quality Quantity
Particulars Nescafe Bru Tata Coffee Nescafe Bru Tata Coffee
Highly Satisfied 10 18 0 12 16 0
Satisfied 47 49 8 25 33 10
Neutral 14 16 18 22 26 16
Dissatisfied 0 0 13 4 6 7
Highly dissatisfied 0 0 6 0 0 10

Chart No- 4.12 (a)

Distribution of respondents according to the satisfaction level they get in terms of

Quality and Quantity given for the price they pay

Quality

50
45
40
35
30
25
20
15
10
5
0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied dissatisfied
Nescafe 10 47 14 0 0
Bru 18 49 16 0 0
Tata Coffee 0 8 18 13 6

Source : Primary data

Inference:

From the table , the respondents have ranked all the coffee brands based on the satisaction
level of respondents based on the Quality of each brand.

71
When it comes to Nescafe coffee, 47 respondents out of 100 respondents are satisfied and 10
are highly satisfied with the quality Nescafe coffee and 14 of them stand neutral i.e, neither
satisfied nor dissatisfied with the quality of the coffee. Its good to know that none of them
dissatisfied nor are highly dissatisfied with the quality of Nescafe Coffee.

Coming to Bru instant coffee, 49 respondents out of 100 respondents are satisfied with the
quality of Bru coffee and 18 of them are highly satisfied with the quality of Bru coffee,
followed with 16 of them who stand neutral i.e, neither satisfied nor dissatisfied with
coffee.Its good to know that none of them neither disssatisfied nor highly dissatisfied with the
quality the Brand offers.

Coming to Tata coffee, 18 respondents out 100 respondents stand on neutral level of
satisfaction where they are neither staisfied nor are dissatisfied with the quality offered.
Followed with 13 respondents who are dissatisfied with the quality and 6 of them being
highly dissatisfied. We see that 8 of the respondents are satisfied and none are highly satisfied
with the quality of Tata coffee either. This is sad thing to know that customers are not really
satisfied with the quality of Tata coffee.

Based on the above analysis we can say that Bru coffee is doing well among the other two
brands with 49 of the respondents being satisfied with the quality of the Bru coffee compared
to Nescafe with 47 respondents which is a close response and the lowest being Tata coffee
with only 8 respondents.

Also, we can say that Bru and Nescafe are doing good as none of the respondents have place
them on dissatisafaction nor highly dissatisfaction level whereas, 13 of them have placed Tata
coffee on dissatisafaction level and 6 of them on highly dissatisafaction level which is not so
good for Tata coffee brand.

72
Chart No- 4. (b)

Distribution of respondents according to the satisfaction level they get in terms of

Quality and Quantity given for the price they pay

Quantity

35
30
25
20
15
10
5
0
Highly Satisfied Neutral Dissatisfied Highly
Satisfied dissatisfied
Nescafe 12 25 22 4 0
Bru 16 33 26 6 0
Tata Coffee 0 10 16 7 10

Source : Primary data

Inference:

From the table , the respondents have ranked all the coffee brands based on the satisaction
level of respondents based on the Quantity being offer for the price we pay for each brand.

When it comes to Nescafe coffee, 25 respondents out of 100 respondents are satisfied and 12
are highly satisfied with the quantity ofeered in Nescafe coffee and 22 of them stand neutral
i.e, neither satisfied nor dissatisfied with the quantity of the coffee. Its good to know that only
4 of them dissatisfied and none are highly dissatisfied with the quantity offered Nescafe
Coffee.

Coming to Bru instant coffee, 33 respondents out of 100 respondents are satisfied with the
quantity of Bru coffee and 16 of them are highly satisfied with the quantity offered in Bru
coffee, followed with 26 of them who stand neutral i.e, neither satisfied nor dissatisfied with
coffee.Its good to know that only 6 of them are disssatisfied and none highly dissatisfied with
the quantity being offered by the Brand.

73
Coming to Tata coffee, 16 respondents out 100 respondents stand on neutral level of
satisfaction where they are neither staisfied nor are dissatisfied with the quantity offered.
Followed with 10 respondents who are highly dissatisfied and with equal number of them
being satisfied with the quantity offered and 7 of them being dissatisfied. We see that none of
the respondents are highly satisfied with the quantity of Tata coffee being offered. This is sad
thing to know that customers are not really satisfied with the quantity of Tata coffee.

Based on the above analysis we can say that Bru coffee is doing well among the other two
brands with 33 of the respondents being satisfied with the quantity offered by Bru coffee
compared to Nescafe with 25 respondents and the lowest being Tata coffee with only 10
respondents.

Also, we can say that Bru and Nescafe are doing good as none of the respondents have place
them on highly dissatisfaction level whereas, 10 of them have placed Tata coffee on highly
dissatisafaction level which is not so good for Tata coffee brand.

74
CHI SQUARE TEST:

Based on Table 4.5 Distribution of respondents according to what Brand of

coffee prefer

NULL HYPOTHESIS:

Ho: The frequencies for the preferences are equally distributed for the brands Nescafe, Bru
and Tata coffee.

ALTERNATIVE HYPOTHESIS:

H1: The frequencies for the preferences are not equally distributed for the brands Nescafe,
Bru and Tata coffee.

Table 4.5(1)

Observed Expected (O - E)2


Particulars Frequency Frequency O–E (O - E)2 _____
(O) (E) E
Nescafe 21 26 5 25 0.96
Bru 53 26 -27 729 28.03
Tata Coffee 4 26 22 484 18.61
Total 78 78 47.6

Expected Frequency: E = Number of respondents/Number of options = 78/3 = 26

Degree of Freedom: 3-1 = 2

Level of significance: = 5%

Level value: = 5.991

Calculated value = 47.6

Note:

Since the calculated value 47.6 is greater than tabulated value 5.991, the significant and
Alternative hypothesis is accepted and Null hypothesis has been rejected at 5% level of
significance. Hence it is concluded that the frequencies for the preferences are not equally
distributed for the brands Nescafe, Bru and Tata coffee.It is very clearly identified that
customer preference towards Bru coffee is more than Nescafe and Tata coffee.

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5.1 SUMMARY OF FINDINGS

 People prefer to spend their leisure time surfing net rather than making a cup of coffee
 Based on research we can say that more than 50% of respondents prefer to drink coffee
over tea
 Nearly 50% of the population drink coffee twice a day
 Around 30% of the population are ready to spend around 50-150 rupee on coffee per
month
 Through research we can say that Bru instant coffee is the most preferred with more than
50% of population which is more than people who drink Nescafe and Tata coffee
 Based on the ranks given by the respondents to each coffee brand, we can say that Bru
coffee is doing well among the other two brands with 37 of the respondents being
satisfied with the Bru compared to nescafe with 27 respondents and the lowest being Tata
coffee with only 4 respondents.
Also, we can say that Bru and Nescafe are doing good as none of the respondents have
place them on rank 1 whereas, 8 of them have placed Tata coffee at rank 1 which is not so
good for Tata coffee brand.(1-Lowest,5-Highest)
 When it comes to advertising the product through various sources such as,
 T.V Commercials-
Bru T.V Ads have been successful in creating a good positioning of the brand in
the minds of the respondents. Second being Nescafe, it is also been able to create
good image as the percentage difference between the two is not too much. Tata
coffee commercials have not really been able to make good positioning.
 Facebook and twitter-
Nescafe and Bru Ads on the social networking sites are almost equal and Tata
coffee has again failed to make a mark.
 Campaigns-
We can see that campaign advertising or promotions are very popular among any
of the brand. Hence all of them can improve on it to increase their brand
awareness and good will of the brand.

76
 Print Ads-
Bru print Ads have been more popular among the respondents with Nescafe not
too far behind and again Tata coffee being the lowest in grading customers
attention through print ads.
 Coffee Corners-
Coffee Corners being most known hang out is not been utilized by the brands for
their promotions.
 Exhibitions-
Exhibitions have also not been too popular for the purpose of advertising or
promoting the brand.
 YouTube videos and Ads-
YouTube videos and Ads are higly used form of advertising for any company. Bru
has been to utilize this opporunity but can work on it even more for increasing its
good will. Nescafe and Tata coffee can also focus on it in order to improve its
sales and awareness.
Hence, when it comes to utilizing the various sources of advertising Bru Instant
coffee is being doing well.

 Coming to the Factors influencing the respondent to purchase a particular brand-


 Brand name-
Bru Coffee has a better brand name than Nescafe and Tata coffee.
 Quality-
Bru Coffee offers a better quality of the coffee powder than Nescafe and Tata
coffee. The quality of Nescafe is not lower than Bru coffee either.
 Taste-
Coming to taste we can see that Bru coffee has 50% of respondents who are
satisfied with the taste of the coffee, Nescafe is also doing good but can still work
towards it and Tata coffee need to work on it a lot more.
 Price-
Bru has been able to attract the customers by making it more affordable to all the
income groups. Second being Nescafe and the least being Tata coffee which need
to work on it pricing strategy.

77
 Advertisement-
Bru has been very successful in attracting its customers through its advertisements
whereas, Nescafe has also been good but has not created an impression like that of
Bru. Tata coffee has just failed to do any.
 Easily Available-
Again Bru has been able to reach out to its customers easily with the help of good
distribution channels and supply chain. Nescafe again standing on second can do
better and Tata coffee needs to do something about it in order to face its
competitions.
Hence, coming to over all factors that influence the customers to buy its product,
Bru coffee is been very successful than the other two coffee brands.

 Features of each brand and the ranks given to each by the respondent-
 Brand name-
25 respondents have ranked Nescafe at 4, we can say that most of them are
satisfied the brand name of Nescafe.
30 respondents have ranked Bru at 3, which is the neutral level of satisfaction
where the respondents are neither to satisfied nor are too dissatisfied with the
Brand name of Bru.
18 respondents have ranked Tata coffee at 2nd, which is a dissatisfaction level
which means they need to work on it a lot to build a good brand name.
 Quality-
27 respondents are satisfied with the quality of coffee offered by Nescafe.
28 respondents have ranked Bru at 3rd which is the neutral level of satisfaction.
18 respondents have ranked Tata coffee on 3rd as well.
 Taste-
Coming to taste Nescafe has got 21 respondents who are satisfied with the taste of
the coffee, 29 of them have ranked Bru at 3rd which is a neutral level and with 12
of them ranking Tata coffee at 2nd which means 12 of them are dissatisfied with
the taste of the coffee.
 Price-
Nescafe has got 19 of them who are satisfied with the prices of the coffee, 28 of
them neither satisfied nor are dissatisfied with the prices of Bru coffee and we see
that 16 respondents are dissatisfied with the prices of Tata coffee.
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 Advertisements-
Coming to advertising 19 respondents are highly satisfied with the nescafe coffee
advertisements, 29 of them are satisfied with the Bru advertisements and coming
to Tata coffee 14 of them are dissatisfied with the advertisements of their Brand.
 Easily Available-
We see that 20 respondents are satisfied with the availability of Nescafe coffee,
Bru has 30 of them who are neither satisfied nor are dissatisfied with the ease of
availability, and Tata coffee has got 16 of them who are dissatisfied.
 Respondents satisfaction level towards each coffee-
We see that Nescafe has been able to satisfy 40 respondents out of 100 and 36
respondents are satisfied with Bru Coffee and coming to Tata coffee 24 respondents have
neutral level of satisfaction.
 Satisfaction level based on the Advertisements related to each brand-
We see that equal number of respondents (25 each) is highly satisfied and equal number
is just satisfied with the Nescafe advertisements, we have 42 of them who are satisfied
with Bru coffee advertisements and Tata coffee has 16 of them who stand neutral with
their satisfaction level.
 Satisfaction level related to Quality and Quantity-
 Quality-
Nescafe has 47 respondents who are satisfied with the quality of coffee offered to
them, we see that 49 of them are also satisfied with Bru coffee and Tata coffee has
18 respondents who stand neutral.
 Quantity-
Coming to the Quantity of coffee offered for the price you pay, Nescafe has got 25
respondents who are satisfied, 33 respondents are satisfied with Bru coffee and
has got 16 of them who stand neutral for quantity offered by Tata coffee.

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5.2 SUGGESTIONS

For Nescafe:

 When compared to Bru, Nescafe is doing well when it comes to T.V commercial
advertising, it can work on improving their social media advertising on Facebook and
Twitter, and it can make its Print Ads more attractive in order to grab the attention of
its customers. Pricing should be designed based on the quantity offered. The product
needs to be made more easily available as we see that the customers easily switch
between brands due to non-availably of the product.
 Since Nescafe is a global brand, it is easily available in the metropolitan cities but, it‟s
not much aware in the rural part of India as a result of this Nescafe should increase
their awareness campaign towards rural customers.

For Bru:

 Bru is been more successful when compared to the other two brands according to our
study, but we also see that Nescafe is a close competitor of Bru, hence bru can
innovate and work on R&D in order to improve Quality and fluctuate its price for the
quantity offered.
 Though Bru is leading from front compared to Nescafe and Tata coffee, still Nescafe
is the close competitor. Brucan think over in updating their packaging design and
quantity. Since they are competing with global product.

For Tata Coffee:

 Based on the respondents review it is seen that more than 70% of the respondents are
not aware of the Brand Tata coffee. Hence they must work on building their brand
image, bring in more creativity in their advertising like T.V commercials, Social
media sites such as Facebook and Twitter, more attractive Print Ads to create a good
positioning for the brand in the minds of the customers. Price and easy availability of
the product are another two most important areas that the brand needs to work on.
 The major drawback of Tata coffee is brand awareness, this is because Tata is famous
for tea product which very strongly positioned in the minds of consumers as a result
of the Tata should try to promote and advertise on Tata coffee in order to sustain in
the market.
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5.3 CONCLUSION

When customers buy a product they normally consider different types of attributes which we
saw during are research study. The products examined in this research study were Nescafe,
Bru and Tata coffee offered by Nestle, Hindustan Unilever Limited (HUL) and Tata Group
respectively. This paper focused on the Comparative Study on Customer Preference towards
Nescafe, Bru and Tata Coffee.

Respondents had an overall positive attitude and preference towards their respective preferred
brand of coffee.

According to this research 58 respondents out of 100 respondents prefers coffee, and 13 of
them prefer tea and 29 prefer to have both coffee and tea. Coming to the brands 53 of them
prefer Bru coffee, 21 prefer Nescafe coffee, and only 4 prefer Tata coffee. One reason is that
people like Bru because its brand name, quality, taste and importantly its easily available.
Price and Advertisements are also very important factors that influence to choose their
preferred brand of coffee. Frequency of advertisements is an important factor for customers
to choose their coffee brand. It is noticed in our study that making the best use of various
sources or mediums of advertising such as T.V commercials, Social media marketing, Print
Ads, Campaigns and YouTube videos and Ads and many more helps the brands to reach out
to their customers and helps build brand image and brand awareness.

In addition to this Bru and Nescafe brands must keep their quality, service on track as such no
much differences are found in customer prefers for these brands, hence customers can switch
between these two brands easily.

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BIBLIOGRAPHY
BOOKS:

1. Philip Kotler, K. L. (2006). Promotional management, A South Asian


Perspection
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1. Eugene Jones, An Empirical Assessment of Consumers‟ Preferences for Coffee,


Journal of Food Distribution Research Volume 45 Issue 2 (2014)
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WEBLIOGRAPHY

1. DDB Mudra Group, http://ddbmudragroup.com/

2. Wikimedia Foundation, Inc., Coffee culture, 7 Mar 2017,


https://en.wikipedia.org/wiki/Coffee_culture

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https://en.wikipedia.org/wiki/Coffee_production

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https://en.wikipedia.org/wiki/Economics_of_coffee

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BrandGuide, www.mbaskool.com

6. Marketing Mix Of Bru Coffee – Bru Coffee Marketing Mix, 6 Dec 2016,
http://www.marketing91.com/marketing-mix-bru-coffee/

7. Hitesh Bhasin, marketing mix of Nescafe, 1 Dec 2016,


http://www.marketing91.com/marketing-mix-nescafe/

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