Marketing Research

&
Product Launch
Of
Coffee
“Master Blend”
 Consumption Trend In
India
• Coffee consumption has shown an annual average growth of
2.14% between 1951-2008.

• The domestic market has grown from about 18,400 tonnes to

about 70,000 tonnes during 2008.

• In India coffee consumption is dominated in southern India

including states Tamil Nadu, Karnataka, Andhra
Pradesh.

• Coffee consumption in India is an urban phenomenon with an

urban and rural divide of 71% and 29%
Coffee Consumption by type and per capita consumption (All India)
Per Capita
Year Coffee Consumption(MT) Consumption(
Kg)
  Arabica Robusta Total  
1951 14857 3526 18383 0.051
1961 17293 16580 33873 0.077
1971 20387 17517 37904 0.069
1981 28586 22210 50796 0.074
1991 37500 17500 55000 0.065
2001* 34000 30000 64000 0.062
2002* 34000 34000 68000 0.066
2008* 33800 36500 70300 0.068
 Consumption - Volume and growth rate by states
Tamil Karnata Andhra South Non-
  Period Kerala All India
Nadu ka Pradesh India South
Mean 1974-
19344 13614 3106 3458 39522 3277 42799
(MT) 80
1981-
  26308 14982 5470 5630 52389 3145 55534
90
1991-
  24753 15282 3415 4670 48119 3527 51646
00
1974-
  24040 15025 4602 5283 48951 3506 52456
03
Growth
1974-
Rate 3.40 8.84 27.41 0.14 6.41 -3.17 5.54
80
(%)
1981-
  -0.25 1.41 1.58 9.24 1.37 -1.94 1.16
90
1991-
  1.18 0 5.83 1.74 1.11 4.28 1.30
00
1974-
  0.88 0.90 2.73 2.40 1.25 1.25 1.25
 Consumption and
Attitude of Indian
• Coffee
Coffee Consumers
consumption dips from 11% at home to 6% outside.

• Penetration (Beverage consumed in the past 12 months) of coffee

at 59% is low compared to that of tea.

• Penetration of filter coffee is highest in South India,But In the Rural

areas (South India) instant coffee has a higher level of penetration
than filter coffee.

• Coffee is consumed as a first cup only by 23% of coffee drinkers

even in the traditional market of the South.

• Yesterday's consumption is the highest among the

15-24 and 35-44 age group.
 Attitudes To Coffee
• Coffee at home is significantly different to coffee outside.

• Coffee from vending machines rated significantly more

satisfactory in the North as compared to the East or the West.

• Barriers to coffee are its bitter taste, inconsistent taste outside

& high price.

• Less knowledge about coffee.

• Attitudes differ significantly across regions in India.

 Potential
Opportunities For
Growth
• Filter Coffee in the North.

• Cold Coffee in North.

• Occasional Consumers.

• Rural Areas in South.

 Recommendation &
Outlook
• Development in non-traditional markets .

• The Retail Space: outlets and distribution .

• Product forms .

• Consumer education.

• Focus on the youth .

• Consider competition from tea & cold drinks.

 INTRODUCTION TO
“Master Blend”
- Taste That Makes It
Happen
 MISSION

“Enriching the coffee with aromas, taste & the entire

experience of enjoying coffee & guarantying consistent & high
quality special coffee products”
 VISION

“Through our professional skills & clarity of purpose & values,

we aim to become the Number One Coffee Company in
India”.
Product Profile
MASCOT
 NEW PRODUCT IDEA
&
MARKET OPPORTUNITY
 COFFEE BASICS
• Most Popular Drink.

• Most Consumed Drink After Water.

• Caffein’s Sensory Pleasure & Richness Of The Aroma.

• Gives A Drinker An Uplift.

• Coffee Is Produced From A Small Red Fruit’s Seeds.

• A Complex Process Of Converting A Seed Into The Liquid

Beverage.
 COFFEE PRODUCTION
IN INDIA
• 6th Largest – Producing 4% Of The Total World Production.

• 1,70,000 Coffee Farms & 9,00,000 Acres Of Land Having The

Coffee Trees.

• 90% Of The Production Comes From The Smaller Growers.

• Karnataka.

• Kerala.

• Tamilnadu.
 COFFEE BOARD OF
INDIA
• The Coffee Board Of India Consists

• A Chairman.

• 33 Other Members. (Growers,consumers,traders)

• All Members Are Appointed By The Central Govt.

Representing Different Interests In The Board

• Uptill 1992-93 – Marketing Looked After By The Board

• After The Liberalization

• 1992-93 – Introduction Of Isq- (Internal Sale Quota) Allowing

The Growers To Sell 30% Their Production Directly To The
Consumers.

• 1993-94 – Fsq- (Free Sales Quota) Now Allowing 50% To Be

Sold Directly To The Consumers.

• 1994-95 – Further Liberalisation For The Smaller

Producers Allowing 100% & 70% To The Bigger
Growers.
 IDEA GENERATION
• The Coffee Culture In India.

• People From All Cultures, age, & demographies Drink Coffee.

• Major Inputs In The Metros By Barista, C.C.D In Revolutioning

The Dimension Of Coffee Drinking.

• As They Say That “The Chai Is Out And The “Kafi” Is In”

• Nestle – Nescafe & Hind. Uni. Lever – Bru ,are The Major
Players In The Market Today.
Marketing Mix
of
“Master Blend”
Product
Place/Distribution
Price
Promotion
 ACTIVITES 1st MONTH 2ND AND 3RD 4TH MONTH
MONTH

Fixed cost for Television 16.5 lakhs 16.5 lakhs 16.5 lakhs
& Press advertisement

Full page color 2 lakhs 2 lakhs 2 lakhs

advertisement in
magazines & Filmfare
A3 size color 3.5 lakhs 2 lakhs 1.5 lakhs
advertisement in TOI,
Hindustan Times &
Navbharat Times

Hoardings & Billboards 8 lakhs 8 lakhs 8 lakhs

Ads on Sony, Star Plus & Two 30 sec ads & Two 30 sec ads & Five 10 second
Zee TV from Monday to four 15 second ads four 15 second ads ads – Daily
Saturday. Between 7.30 – Daily – Daily  
pm to 11.30pm   Three 15 sec
  Five 10 sec ads Five 10 sec ads ads during 2 pm
  during 2 pm to 6 pm during 2 pm to 6 to 6 pm – Daily
  - Daily pm - Daily
 
 SWOT
OF
“Master Blend”
 Strength

• Unique Blend.

• Competitive Pricing.

• Easy To Prepare & Easy To Use

 Weakness

• Majority Of People In India Are Tea-drinkers.

• Who Drink Coffee Are Loyal To The Brands They Drink.

• Investment Into Promoting The Coffee.

 Opportunities

• Convert The Tea-drinkers To Coffee Drinkers.

• The Quality Of Both The Beans Are There Hence Its More To
Attract And Change The Brand Preferece.
 Threats

• Coffee Products Face A Stiff Competition From Tea.

• Low Profit Margin Due To Ressession.

• Threat From New Entrents.

 SWOT
OF
STARBUCKS
 STRENGTHS

• Established Logo, Developed Brand

• Company Operated Retail Store
• High Visibility
• Valued And Motivated Employees
• Good Relation With Suppliers
• Industry Market Leader
• Strong Financial Foundation
• Customer Base Loyalty
 WEAKNESSES

• Lack Of Internal Focus

• Ever Increasing Number Of Competitors

• Product Pricing Expensive

 OPPORTUNITIES

• Expansion Into Retail Operations

• Technological Advances

• Brand Extension
 THREATS

• Competition From Restaurents, other Coffee Shops Etc.

• U.S Market Saturation

• Cultural And Political Issues In Foreign Countries.

• Consumer Trends Towards More Healthy Ways.

 Segmentation
&
Future Prospects
 o n
s i
l u
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C o
 o u
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