““MASTER BLEND”MASTER BLEND”- TASTE THAT MAKES IT - TASTE THAT MAKES IT

HAPPENHAPPEN

Presented By Presented By Ruben R NairRuben R Nair

CONTENTSCONTENTS• Introduction Introduction • Mission & VisionMission & Vision• Product ProfileProduct Profile• Consumption Trend In IndiaConsumption Trend In India• New Product Idea and Market opportunityNew Product Idea and Market opportunity• Coffee basicsCoffee basics• Marketing MixMarketing Mix• Consumption and Attitude of Indian Coffee ConsumersConsumption and Attitude of Indian Coffee Consumers• Potential Opportunities For GrowthPotential Opportunities For Growth• Recommendation & OutlookRecommendation & Outlook

INTRODUCTION TO INTRODUCTION TO “MASTER BLEND”“MASTER BLEND”

- TASTE THAT MAKES IT - TASTE THAT MAKES IT HAPPENHAPPEN

MISSIONMISSION

““Enriching the coffee with aromas, taste & the entire Enriching the coffee with aromas, taste & the entire experience of enjoying coffee & guarantying consistent & experience of enjoying coffee & guarantying consistent & high quality special coffee products”high quality special coffee products”

VISIONVISION““Through our professional skills & clarity of purpose & Through our professional skills & clarity of purpose & values, we aim to become the Number One Coffee values, we aim to become the Number One Coffee Company in India”.Company in India”.

CONSUMPTION TREND CONSUMPTION TREND IN INDIAIN INDIA

• Coffee consumption has shown an annual average growth of 2.14% Coffee consumption has shown an annual average growth of 2.14% between 1951-2008.between 1951-2008.

• The domestic market has grown from about 18,400 tonnes to about The domestic market has grown from about 18,400 tonnes to about 70,000 tonnes during 2008.70,000 tonnes during 2008.

• In India coffee consumption is dominated in southern India including In India coffee consumption is dominated in southern India including

states states Tamil NaduTamil Nadu, Karnataka,, Karnataka, Andhra Pradesh. Andhra Pradesh. • Coffee consumption in India is an urban phenomenon with an urban and Coffee consumption in India is an urban phenomenon with an urban and

rural divide of 71% and 29%rural divide of 71% and 29%

Coffee Consumption by type and per capita consumption (All India)

Year Coffee Consumption(MT)Per Capita

Consumption(Kg)

  Arabica Robusta Total  1951 14857 3526 18383 0.0511961 17293 16580 33873 0.0771971 20387 17517 37904 0.0691981 28586 22210 50796 0.0741991 37500 17500 55000 0.0652001* 34000 30000 64000 0.0622002* 34000 34000 68000 0.0662008* 33800 36500 70300 0.068

Consumption - Volume and growth rate by states

  Period Tamil Nadu

Karnataka Kerala Andhra

PradeshSouth India

Non-South All India

Mean (MT)

1974-80 19344 13614 3106 3458 39522 3277 42799

  1981-90 26308 14982 5470 5630 52389 3145 55534

  1991-00 24753 15282 3415 4670 48119 3527 51646

  1974-03 24040 15025 4602 5283 48951 3506 52456

Growth Rate (%)

1974-80 3.40 8.84 27.41 0.14 6.41 -3.17 5.54

  1981-90 -0.25 1.41 1.58 9.24 1.37 -1.94 1.16

  1991-00 1.18 0 5.83 1.74 1.11 4.28 1.30

  1974-08 0.88 0.90 2.73 2.40 1.25 1.25 1.25

CONSUMPTION AND ATTITUDE CONSUMPTION AND ATTITUDE OF INDIAN COFFEE CONSUMERSOF INDIAN COFFEE CONSUMERS

• Coffee consumption dips from 11% at home to 6% outside.Coffee consumption dips from 11% at home to 6% outside.

• Penetration (Beverage consumed in the past 12 months) of coffee at 59% is Penetration (Beverage consumed in the past 12 months) of coffee at 59% is low compared to that of tea.low compared to that of tea.

• Penetration of filter coffee is highest in South India, But In the Rural areas 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. (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 Coffee is consumed as a first cup only by 23% of coffee drinkers even in the traditional market of the South.traditional market of the South.

• Yesterday's consumption is the highest among the Yesterday's consumption is the highest among the

15-24 and 35-44 age group.15-24 and 35-44 age group.

ATTITUDES TO COFFEEATTITUDES TO COFFEE

• Coffee at home is significantly different to coffee outside.Coffee at home is significantly different to coffee outside.

• Coffee from vending machines rated significantly more Coffee from vending machines rated significantly more satisfactory in the North as compared to the East or the West.satisfactory in the North as compared to the East or the West.

• Barriers to coffee are its bitter taste, inconsistent taste outside & Barriers to coffee are its bitter taste, inconsistent taste outside & high price.high price.

• Less knowledge about coffee.Less knowledge about coffee.

• Attitudes differ significantly across regions in India.Attitudes differ significantly across regions in India.

POTENTIAL POTENTIAL OPPORTUNITIES FOR OPPORTUNITIES FOR

GROWTHGROWTH• Filter Coffee in the North.Filter Coffee in the North.

• Cold Coffee in North.Cold Coffee in North.

• Occasional Consumers.Occasional Consumers.

• Rural Areas in South.Rural Areas in South.

PRODUCT PROFILE PRODUCT PROFILE

MASCOTMASCOT

NEW PRODUCT IDEA NEW PRODUCT IDEA & &

MARKET OPPORTUNITYMARKET OPPORTUNITY

COFFEE BASICSCOFFEE BASICS• Most Popular Drink.Most Popular Drink.

• Most Consumed Drink After Water.Most Consumed Drink After Water.

• Caffeine's Sensory Pleasure & Richness Of The Aroma.Caffeine's Sensory Pleasure & Richness Of The Aroma.

• Gives A Drinker An Uplift.Gives A Drinker An Uplift.

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

• A Complex Process Of Converting A Seed Into The Liquid Beverage. A Complex Process Of Converting A Seed Into The Liquid Beverage.

COFFEE PRODUCTION IN COFFEE PRODUCTION IN INDIAINDIA

• 6th Largest – Producing 4% Of The Total World Production.6th Largest – Producing 4% Of The Total World Production.• 1,70,000 Coffee Farms & 9,00,000 Acres Of Land Having The 1,70,000 Coffee Farms & 9,00,000 Acres Of Land Having The

Coffee Trees.Coffee Trees.• 90% Of The Production Comes From The Smaller Growers.90% Of The Production Comes From The Smaller Growers.• Karnataka.Karnataka.• Kerala.Kerala.• Tamil Nadu.Tamil Nadu.

COFFEE BOARD OF COFFEE BOARD OF INDIAINDIA

• The Coffee Board Of India ConsistsThe Coffee Board Of India Consists

• A Chairman.A Chairman.

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

• All Members Are Appointed By The Central Govt. All Members Are Appointed By The Central Govt. Representing Different Interests In The BoardRepresenting Different Interests In The Board

• Until 1992-93 – Marketing Looked After By The BoardUntil 1992-93 – Marketing Looked After By The Board

• After The LiberalizationAfter The Liberalization

• 1992-93 – Introduction Of Isq- (Internal Sale Quota) Allowing 1992-93 – Introduction Of Isq- (Internal Sale Quota) Allowing The Growers To Sell 30% Their Production Directly To The The Growers To Sell 30% Their Production Directly To The Consumers.Consumers.

• 1993-94 – Fsq- (Free Sales Quota) Now Allowing 50% To Be 1993-94 – Fsq- (Free Sales Quota) Now Allowing 50% To Be Sold Directly To The Consumers.Sold Directly To The Consumers.

• 1994-95 – Further Liberalization For The Smaller 1994-95 – Further Liberalization For The Smaller

Producers Allowing 100% & 70% To The Bigger Producers Allowing 100% & 70% To The Bigger

Growers.Growers.

IDEA GENERATIONIDEA GENERATION• The Coffee Culture In India.The Coffee Culture In India.

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

• Major Inputs In The Metros By Barista, C.C.D In Revolutioning Major Inputs In The Metros By Barista, C.C.D In Revolutioning The Dimension Of Coffee Drinking.The Dimension Of Coffee Drinking.

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

• Nestle – Nescafe & Hind. Uni. Lever – Bru ,are The Major Nestle – Nescafe & Hind. Uni. Lever – Bru ,are The Major Players In The Market Today.Players In The Market Today.

MARKETING MIXMARKETING MIX OF OF

“MASTER BLEND” “MASTER BLEND”

PRODUCTPRODUCT

PLACE/DISTRIBUTION PLACE/DISTRIBUTION

PRICEPRICE

PROMOTIONPROMOTION

ACTIVITES 1st MONTH 2ND AND 3RD MONTH

4TH MONTH

Fixed cost for Television & Press advertisement

16.5 lakhs 16.5 lakhs 16.5 lakhs

Full page color advertisement in magazines & Filmfare

2 lakhs 2 lakhs 2 lakhs

A3 size color advertisement in TOI,

Hindustan Times & Navbharat Times

3.5 lakhs 2 lakhs 1.5 lakhs

Hoardings & Billboards 8 lakhs 8 lakhs 8 lakhs

Ads on Sony, Star Plus & Zee TV from Monday to Saturday. Between 7.30 pm to 11.30pm   

Two 30 sec ads & four 15 second ads

– Daily

Five 10 sec ads during 2 pm to 6 pm

- Daily

Two 30 sec ads & four 15 second ads – Daily Five 10 sec ads during 2 pm to 6 pm - Daily 

Five 10 second ads – Daily Three 15 sec ads during 2 pm to 6 pm – Daily

SWOT SWOT OF OF

“MASTER BLEND”“MASTER BLEND”

STRENGTHSTRENGTH

• Unique Blend.Unique Blend.

• Competitive Pricing.Competitive Pricing.

• Easy To Prepare & Easy To UseEasy To Prepare & Easy To Use

WEAKNESSWEAKNESS

• Majority Of People In India Are Tea-drinkers.Majority Of People In India Are Tea-drinkers.

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

• Investment Into Promoting The Coffee.Investment Into Promoting The Coffee.

OPPORTUNITIESOPPORTUNITIES• Convert The Tea-drinkers To Coffee Drinkers.Convert The Tea-drinkers To Coffee Drinkers.

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

THREATSTHREATS•Coffee Products Face A Stiff Competition From Tea.Coffee Products Face A Stiff Competition From Tea.

•Low Profit Margin Due To Recession.Low Profit Margin Due To Recession.

•Threat From New Entrents.Threat From New Entrents.

CONCLUSIONCONCLUSION

• Development in non-traditional markets .Development in non-traditional markets .

• The Retail Space: outlets and distribution .The Retail Space: outlets and distribution .

• Product forms .Product forms .

• Consumer education.Consumer education.

• Focus on the youth .Focus on the youth .

• Consider competition from tea & cold drinks.Consider competition from tea & cold drinks.

THANK YOU THANK YOU