Marketing Research Project Final

8/3/2019 Marketing Research Project Final

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Nespresso Marketing Project – Market Analysis1

Project Marketing ResearchAccording to our objectives, we need to know the acceptance and opinion of our

customers to it: Coffee Sustainability. In order to develop action plans and other

strategies we want to know how they will react and if they will be successful, and

therefore will increase the brand value and profits.

We prepare the marketing research following this process:

First: define the problem and our research objectives. Second: develop the plan in order to collect the information (the survey).

Third: Implement the plan (collect data).

Fourth: Interpreting the findings.

DEFINING THE PROBLEM AND THE RESEARCH OBJECTIVES

The problem is that the company wants to improve their recycling system of thecapsules in order to achieve one of its most important objectives - the sustainability.

There are different ways how to change the recycling system, but the company doesn’t

know which one would be more comfortable for the customers. That’s why it’s

necessary to make a marketing research.

That’s why our marketing research will be exploratory research because we need

the basic information to help us resolve our problem and suggest a hypothesis, which

kind of recycling system would be the most effective and efficient.

We need to ask the customers which kind of recycling

system would be more comfortable for them, to get

their opinion and at the same time to predict their futurebehavior. When we know the response of the customers,

we can start with improving the recycling system and

with that to achieve our goals.




DEVELOPING THE RESEARCH PLAN:

NoYes

How many cups per day?

1, 2, 3, 4 or more than 4

Do you have a capsule machine ?

Yes No

Wich one ?

Nespresso ; Senseo ;

Tassimo ; Nescafé Dolce

Do you drink coffee ?

Do you recycle ?

Yes No

DEMOGRAPHY

Occupation

Student

Employee

Retired

Age

< 25

26 / 35

36 / 45

Monthly Income

< 500€

500 / 1000€

1000 / 1200€




What do you think about the coffee capsules? They...

are well-designed are eco-friendlyhave a right coffee quantity taste good

have a good quality-price relation

Nespresso capsules are made of aluminum. Would they be better if they are

made of...?

Paper Filter paper Tetra- Brick (paper & aluminium) Aluminium is ok

In exchange of a discount or a special offer, would you bring the used

capsules to the store for recycling?

Yes No I don’t care

How would you prefer to recycle your capsules?

In the store

By post (paid by the Nespresso, Tassimo ect.)

In a supermarketI wouldn’t recycle them

Does the capsules' recycle system determine you to buy one brand or

another

(Nespresso, Tassimo, Senseo...)?




We have decided to build this questionnaire on this way for several reasons.

The first one was to split it into 3 distinguished parts: one about the personals

information, one other about the coffee and their customer behavior, and a final one

about the recycle concept.

We decide to go deeper inside of the second part, in order to better know our

customers. In fact, this survey is made not only for our customers as non drinkers of

coffee can answer it. However, we thought it was a good opportunity to collect some

data about our customers.

Thanks to that, we can also know the feeling and opinions of our customers about

the recycle Nespresso’s future strategy. This structured survey also brings us

information about competitors’ customers. So we can also say that’s a compet itive

intelligence.

After this process we had to think about the number of responses we want to reach.

Our goal was to achieve approximately 50 respondents but at the time of running the

questionnaire, which was between the 29th of October 2011 till the 4th of November,

we have hit 171 respondents.

The questionnaire has been completed online. Using internet has a lot of positive

factors. It is a cheap way to get the information, the speed of data collection is

excellent as well as the answers are more honest and truly. There is also a good

quantity of data that can be collected and the use of computer tools makes it easiertoo.

On the duty of distributing the questionnaire we have decided to use the social

network site Facebook, also a Spain based social network website called Tuenti, and

personal e-mailing.

Collecting and analyzing data

Collecting and analyzing data is one of the most important steps of the marketing

research process. We decided that we will use the internet (social networks and e-mail)

to collect the customers’ opinions, attitudes and behaviors.

From the data that has been gathered we made an analysis by using different types

of charts and tables because we think that the visual representation is the best way

how to understand the information. The obtained data from a small group can be used

to make judgments about a larger group.




<25

60%25-30

16%

31-40

24%

Age range

< €750

59%

€750-

€1200

22%

> €120019%

Monthly Income

Recycle

75%

Don't

Recycle

25%

Recycling success between

coffee drinkers

86%

4%10%

Will bring the capsules to the

store

Yes

No

Don't care

We launched the survey through www.encuestafacil.com, a web-tool that helped

us in the duties of collecting and summarizing data.

171 people answered the survey, from which only 145 ended it up.

60% of them are under 25, and the rest are between 25 and 40 years old.

59% declared that have a monthly income lower than €750, while 22%

have an income between €750 and €1200 and the rest 19% have higher

incomes than €1200.

After analyzing general data about demographics and participation, we will get

deeper in the questions that interest us the most: Coffee capsules and recycling.

The percentage of people that drink coffee and recycle at the same time is

75%, but the most interesting is that 86% of them will bring the capsules

to the store for recycling:




Nespresso clients

demonstrate that:

- 70% of them recycle.

- 80% of them would bring

the capsules to the store for

recycling.

It is also important the age range in terms of wiliness to recycle. As

expected, the younger the more recycle culture:

The ones that answered positively to the questions "Do you recycle?"

and "Would you bring the used capsules...?" were mostly (70%)

people under their 30. In the same way Students (76%) were the

more conscious about recycling.

It is surprising how Nespressoclients have expressed their

motivation about recycling the

capsules:

We deduce from this data the success of Nespresso

in Spain. Official Nestlé sources already placed it as the

leader in Spain, and we have confirmed by our survey

that it is true:

Which capsule machine do you have?

1. Nespresso: 79%

2. Dolce Gusto: 16%

3. Tassimo: 5%

4. Other: 4%

0%

20%

40%

60%

80%

People that drink coffee

and recycle

75%

15%6%

5%

Nespresso Dolce Gusto Tassimo Other

Nestlé leadership on the

capsules' machines market




If we look at the success of Nespresso in Spain from the coffee capsules point

of view we see that people that people buy them because of the design more

than the taste of the coffee.

Almost half of the people questioned agreed with the Nespresso choice to use

aluminum for their coffee capsulas and wouldn`t change for other material.

The next important option would be filter paper like some of the

competition do.

PlasticTetra brick

(paper and

aluminum)

Filter paperAluminum is

OK

15% 25%50%

72%

Nespresso capsules are made of aluminum. Would they be better if they

were made of...?

Plastic Tetra brick (paper and aluminum) Filter paper Aluminum is OK

0

10

20

30

40

50

60

70

80

90

are well designed have a right coffee

quantity

taste good are eco-friendly have a good

quality-price

relation

What do you think about the coffee capsules?They...




As we can see in the graph the capsules recycle system is not an important

detail in the costumer choice for the brand of the coffee machine.

Conclusions (Interpreting data)

The objective of our survey is to know our customer’s point of view of the

sustainability of Nespresso capsules, the result is flattering. Nespresso recycling

campaign is a success, the company is in the right place. This survey has provided a lot

of new information to Nespresso and will lead the company to new possible marketing

strategies and decisions.

Though we want to know how our customers react to our recycling strategy we also

wanted to know the worry of the people in general for recycling, it is really interesting

to see that 70% of the people who recycle and would bring the capsules are under

theirs 30s. Young people are more concerned about recycling, so here comes for us a

new challenge: involve our oldest customers to the recycling habit.

The company should focus on making recycling not a bother but a commitment

with Nespresso and with the world; it should make the customer feel happy when

keeping the capsules until returning them into the stores.

Yes: 52%

No: 55%

It doesn't

matter: 38%

Does the recycle system determines you to buy one

brand or another (Nespresso, Tassimo...)?




As we know from the survey, Nespresso has a high percentage of customers

between its 20s and 30s, by facebook, twitter and other social networks Nespresso

tries to approach them. The company works hard to pass on its recycling image and

brand values .It has on facebook a section ca lled “Ecolaboration” where it explains all

its recycling politics and projects. Contents are constantly uploaded in order to creatediscussion among its 1.312.450 facebook fans.

Another important area is the application world for smartphones; Nespresso is able

to keep updating and has created an app for iPhones, with which you can:

- Order your Grands Crus, Nespresso Machines and Les Collections.

- Find your nearest collection point for your used capsules, Boutique orNespresso stockist.

- Discover the latest Nespresso news.

In order to approach recycling to the customers in their 40s-50s-60s who are less

conscious in the matter, Nespresso should implement marketing techniques such as:

creating a virtual visit (public relations) of the recycling process so as to convince the

customers they are supporting a real cause; creating some sort of benefits for the

capsules that are brought back to the store, for instance a reduction in the following

purchase; extending rumours of how Nespresso is well recycling; creating a notice

board with all the events and data that will incite customers to recycle and will make

them feel the culture in deep.

Nespresso is clearly the leader nowadays in the

Spanish market. 79% of coffee machine drinkers

have a Nespresso machine; customer’s first words

about Nespresso that come to their minds are

“excellent”, “unique”, “best taste ever”, “fancy”,

however a few say “too expensive”. Our customers

love the uniqueness of our brand, they love the

boutique but some of them would like to buy the

capsules in supermarkets.




Nespresso has the audience preference because of a well defined market image.

Nestle has the highest percentage of capsule machines in Spain almost 96% of

customer drinkers own one.

We know that Nespresso is seen as a luxurious brand, very interesting data is given

to us: only 19% of people that answered the survey have an income higher than 1200 €,

that means that 81% earn less than 1200€. Nespresso is in comparison with other

brands expensive, capsules from Senseo or dolce gusto cost 0.24 or 0.17, however ours

is 0.33.

This reflects the positioning and differentiation of our product, even though

Nespresso is one of the most expensive coffee capsules in the market, people who are

“mileuristas” still buy it, in this cases Nespresso is used as a pleasant drink not maybe

for everyday but for special occasions. The quality, taste, form, image, flavour prevails

over the price.

Marketing Research Project Final

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