Project Marketing Research

According 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 the capsules 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 doesnt know which one would be more comfortable for the customers. Thats why its necessary to make a marketing research.

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 future behavior. When we know the response of the customers, we can start with improving the recycling system and with that to achieve our goals.

Thats 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.

Nespresso Marketing Project Market Analysis

DEVELOPING THE RESEARCH PLAN:

DEMOGRAPHY
Occupation Student Employee Retired Unemployee Others (precise) Age < 25 26 / 35 36 / 45 46 / 60 > 61

Monthly Income < 500 500 / 1000 1000 / 1200 1200 / 1500 1500 / 2000 > 2000

Do you drink coffee ?

Yes
How many cups per day? 1, 2, 3, 4 or more than 4 Do you have a capsule machine ?

No

Yes
Wich one ? Nespresso ; Senseo ; Tassimo ; Nescaf Dolce Gusto ; Other (precise)s

No

Do you recycle ? Yes No

Nespresso Marketing Project Market Analysis

What do you think about the coffee capsules? They... are well-designed have a right coffee quantity have a good quality-price relation are eco-friendly
taste good

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 dont care

How would you prefer to recycle your capsules? In the store By post (paid by the Nespresso, Tassimo ect.) In a supermarket I wouldnt recycle them

Does the capsules' recycle system determine you to buy one brand or another (Nespresso, Tassimo, Senseo...)?

Yes

Nespresso Marketing Project Market Analysis

No

I doesnt matter

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 Nespressos future strategy. This structured survey also brings us information about competitors customers. So we can also say thats a competitive 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 easier too. 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.

Nespresso Marketing Project Market Analysis

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.

Age range
31-40 24%

Monthly Income
> 1200 19%

25-30 16%

<25 60%

7501200 22%

< 750 59%

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:

Recycling success between coffee drinkers

Will bring the capsules to the store

10% Yes No

Don't Recycle 25% Recycle 75%

4%

86%

Don't care

Nespresso Marketing Project Market Analysis

 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 Nespresso clients have expressed their motivation about recycling the capsules:

80% 60% 40% 20% 0%

75%

15%

6%

5%

Nespresso clients demonstrate that: - 70% of them recycle. - 80% of them would bring the capsules to the store for recycling.

Nespresso

People that drink coffee and recycle

Dolce Gusto Tassimo

Other

We deduce from this data the success of Nespresso in Spain. Official Nestl 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. 2. 3. 4. Nespresso: 79% Dolce Gusto: 16% Tassimo: 5% Other: 4%
Nestl leadership on the capsules' machines market

Nespresso Marketing Project Market Analysis

 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.

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

90 80 70 60 50 40 30 20 10 0 are well designed have a right coffee quantity taste good are eco-friendly have a good quality-price relation

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.

Nespresso capsules are made of aluminum. Would they be better if they were made of...?
Plastic Tetra brick (paper and aluminum) Filter paper 72% Aluminum is OK

15%

25%

50%

Plastic

Tetra brick (paper and aluminum)

Filter paper

Aluminum is OK

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

Nespresso Marketing Project Market Analysis

 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.

Does the recycle system determines you to buy one brand or another (Nespresso, Tassimo...)?
It doesn't matter: 38% Yes: 52%

No: 55%

Conclusions (Interpreting data)

The objective of our survey is to know our customers 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.

Nespresso Marketing Project Market Analysis

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 called Ecolaboration where it explains all its recycling politics and projects. Contents are constantly uploaded in order to create discussion 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 or Nespresso 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; customers 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 Marketing Project Market Analysis

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.

Nespresso Marketing Project Market Analysis

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