Brand Extension Analysis : Nescafe Sunrise

Submitted by : Shrey Vig (PGP/30/281 )

Manufacturer : Nestle

• World’s leading company in the ‘Nutrition, Health and Wellness’ space

• Portfolio offering tasty nutritious products in Food and Beverages categories

• One of the leading F&B companies in India with strong brands like : • Nescafe• Maggi• Nestea• EveryDay• A+

• KitKat • Munch• Bar One• Alpino• Milkybar

• Neslac• Baby & me• Polo• Eclairs

Revenue (2014) = ₹ 101.3 Bn

Earnings after Tax (2014) = ₹ 11.9 Bn

Category : Coffee• Market Size (2014) : INR 38.9 million

Expected Market Size (2019) = INR 46.5%

• CAGR (2009/2014) 35.5 % (Volume)124.1 % (Value)

• Main categories of Coffee :• Freshly Ground Coffee• Instant Coffee

• Main Players :Nestle

HUL

Narasu

Others

Parent Brand : Nescafe• Brand Share ( Coffee ) : 37 %• Share Growth

2010 2011 2012 2013 201430.00%

32.00%

34.00%

36.00%

38.00%

33.10%

34.50%

35.90%36.80% 36.80%

Nescafe Market Share

• Revenue (2014) = ₹ 14.32 Bn • One of the Most loved Brands in the

world

Brand Extension : Nescafe Sunrise • Fine blend of Coffee and Chicory

Coffee (70%) and Chicory (30%)• Slow Roasted for Rich Aroma in ‘Aroma

Granules’• Stronger blend of coffee• Introduced in South Indian markets

4 P’s : Product• Instant Soluble Coffee• Fine blend of Coffee and Chicory ( 70:30 and 60:40 (Sunrise Strong))• What Chicory adds to the Coffee ?

• More bitterness• Woody Aroma• Mellowing affect

• Slow Roasted Coffee for more Aroma• Granulated Coffee with – ‘Aroma Granules’• Available in – Saches ; Bottles ; Refill packs( 10g , 50g, 100g, 200g, 500g )

4 P’s : PriceComparing Prices of Different Coffee’s in Instant Soluble Coffee Category ( taking Nescafe and Bru – total 68% market share )

Nescafe

Bru

Sunrise

Classic

Gold

Instant

Gold Instant Narasu’s Instant Coffee

Granulated instant Coffee

100

207.5

460

160

214

160

210

Sunrise Premium 154Lowest Price Point in Instant Coffees

4 P’s : Place• Launched in Andhra Pradesh• Expanded to other South Indian markets• Available in Channels :• Kirana/Convenience Stores• E-Commerce sites• Modern Retail

4 P’s : Promotions• Online Facebook Page• https://www.facebook.com/NescafeSunrise/

info?tab=page_infoSlow Roasted Coffee for more Aroma

• Commercials : TV, Cinema• https://www.youtube.com/watch?v=WnuKjwD-QbI• https://www.youtube.com/watch?v=zotot3XZYjU• https://www.youtube.com/watch?v=sil-BRYExvE

• Posters ( Point of Sale , Outdoors)• Offers : Celebrity Ambassador:

Suriya

Segmentation and Targetting

• Segmentation Bases used :• Geographic : launched and available in South India• Behavioural : for people who like strong taste and aroma• Age : young characters ( a couple ) depicted in all ads• Affordability : lowest price point for people who aren’t willing to spend a lot

on coffee

Target Segment Characterization Young people ( couples ) in southern India who prefer strong and aromatic coffee but are not willing to spend a lot on coffee

Competition• Coffee Category• Out of home consumption : All Cafés and canteens• In-home consumption :

Roasted and Ground Coffee with Chicory (sold packaged and unpackaged) Offered by local players like – Café Coffee Day , Narasu’s, BRU, Cotha, Leo etc.

• Instant Coffee Category In-home consumption :

Bru Instant Coffee Narasu’s Instant CoffeeTATA Mr.Bean Coffee

Points of Parity

• Instantly Soluble in Water

• Good taste

• Available in a range of volumes ( from 10g Sachet to 500g bottle )

• Rejuvenating

Points of Difference

• Richer Aroma• Low Price

Slogan on Facebook :

Aromatise your Mornings

References

• Euromonitor :• https://www.portal.euromonitor.com/portal/statistics/changemeasure• https://www.portal.euromonitor.com/portal/analysis/related

• Nestle :• https://

www.nestle.in/investors/stockandfinancials/documents/nestle-india-annual-report-2014.pdf• www.nestle.in