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Nescafe This print version free essay Nescafe. Category: Business Autor: reviewessays 15 July 2010 Words: 8850 | Pages: 36 TABLE OF CONTENTS TOPIC PAGE I. Market Background 4 II. Objectives 7 III. Market 7 IV. Research Methodology 8 V. Findings 8 A. STEP Analysis 8 B. Market Size Estimation 10 C. Spotting Opportunities 11 1. Opportunities Product Life Recycling and Extension 11 2. Opportunities for Promotional and Product Extension 12 3. Opportunities for Market Development 13 4. Opportunities for Better Brand Loyalty and Switching Strategies 14 5. Opportunities for Improving the Competitive Status of the Brand 17 6. Opportunities for Determining the Brand's Correct Competitors 18 D. Share of Mind vs. Share of Market 19 E. Brand Positioning Behavior 22 1. GAP Analysis 22 2. SWOT Analysis 23 F. Market Segmentation 24 G. Dream Positioning Model 28 1. Activity-based dream position 28 2. Adventure-driven dream position 28 3. Self-identity dream position 28 VI. Summary 28 VII. Recommendation 29 VIII. Appendix 30 A. Sample Survey- English version 30 B. Sample Survey- Tagalog version 34 C. Who else in your household uses coffee 38 D. What else is being used together with instant coffee 38 E. What else is being bought together with instant coffee 38 F. Where instant coffee was last bought 38 G. How often instant coffee is being purchased 39 H. Brands Previously Used Versus Brands Currently Used 39 I. Brand Awareness for Instant Coffee 40 J. Brand Share of Mind vs. Brand Share of Market 41 K. Reach, Conversion & Retention Ratio 41 L. Brand Rating Based on Top 5 Attributes 41 M. Brand Ownership Based Market Segmentation 42 LIST OF FIGURES

Figure 1 Market Size Estimation 10 Figure 2.1 Who else in your household uses coffee 11 Figure 2.2 What else is being used together with instant coffee 12 Figure 2.3 What else is being together with instant coffee 13 Figure 2.4 Where instant coffee was last bought 13 Figure 2.5 How often instant coffee is purchased 14 Figure 2.6 Brands Previously Used vs. Brands Currently Used 15 Figure 2.7 Three Level Product category 18 Figure 2.8 Three Level Product category of instant coffee 18 Figure 3.1 Brand awareness 19 Figure 3.2 Percentage of Mind & Market Share 20 Figure 3.3 Reach, Conversion and Retention Ratio of Top 5 brands 21 Figure 4.1 Brand Rating Based on Top 5 Attributes 22 Figure 4.2 SWOT Analysis 23 Figure 5.1 Market Segmentation- Age 24 Figure 5.2 Market Segmentation-Educational Attainment 25 Figure 5.3 Market Segmentation-Monthly Income 25 Figure 5.4 Market Segmentation-Civil Status 26 Figure 5.5 Market Segmentation- Sex 26 Figure 6 Naturally Occurring Segmentation (NOS) of the instant coffee market in of the s 27 LIST OF TABLES Table 1 Nescafe Prices 5 Table 2.1 Pro-forma Cross Tabulation Table: Previously Used Brands Versus Currently Used Brands 16 Table 2.2 Computed RSOM's of the Twelve Instant Coffee Brands 17 Table 2.3 Who else in the household uses instant coffee 38 Table 2.4 What else is being used together with instant coffee 38 Table 2.5 What else is being bought together with instant coffee 38 Table 2.6 Where the instant coffee was last bought 38 Table 2.7 How often instant coffee is being purchased 39 Table 2.8 Brands Previously Used Versus Brands Currently Used 39 Table 3.1 Brand Awareness for the Instant Coffee Brands 40 Table 3.2 Brand Share of Mind versus Brand Share of Market 41 Table 3.3 Reach, Conversion, and Retention Ratios 41 Table 4.1 Brand Ratings Based on Top 5 Attributes 41 Table 5.1 Brand Ownership Based Market Segmentation 42 I. Market Background Nestlé, one of the most successful companies in the world is well-known in the Philippines for offering diverse products in the market and one of them is Nescafé. Nescafe is now at its maturity stage and is considered as the market leader in the instant coffee industry. The history of Nescafé can be traced back as far as the 1930's. Its coffee guru, Max Morgenthaler, together with his team thought of the need to produce high quality coffee that could be prepared by simply adding hot water while still being able to retain the coffee's natural aroma. It took them seven years of research in their Swiss laboratories until finally, they found the solution. The new generation of instant coffee was first introduced on April 1, 1938 in Switzerland. It was called Nescafé as a combination of Nestlé and café. Although it has been a huge breakthrough in the coffee industry, it didn't become a big success in Europe due to World War II. Shortly after its release in the market, it was exported to other countries like , Great Britain and the USA. It became a huge success in America and because of this Nescafé was able to re-launch itself in Europe. It rapidly grew in popularity and by the 1950's, teenagers were already flocking in to coffee-houses. In 1965, Nescafé unveiled its Gold Blend which introduced freeze-dried soluble coffee. The invention of new technology made it possible for Nescafé to make the ‘full aroma' process which captured more aroma and flavor in every single coffee bean. This is what made the unique quality and character of Nescafé even better.

Nescafé made its grand debut in the Philippines during the 1960's. It captured the attention of the Filipinos due to its huge multimedia exposure. During that time, Nescafé can be seen in prints, TV commercials, and heard on the radio. There signature jingle, originally sung by Zsa Zsa Padilla, is still being used today. "Let's sit and talk awhile, in the one world of Nescafé." Although the lyrics have been slightly altered, this catchy phrase means that coffee isn't just something that you drink during breakfast or when you're tires; rather, Nescafé coffee can be used to socialize and catch up with the people whom you haven't had time to talk to for awhile. You drink coffee when you want to patch up things with your wife, when you want to take a rest, or even when you just want to have fun. Since Nescafé has a vast and diversified target market, they had to launch different varieties of their instant coffee to suit the needs of their customers. Starting from their Nescafé Classic, they now have 15 different variants of instant coffee which come in different sizes. Before, they used to sell Nescafé coffee in a diamond glass which acts as a drinking cup once all the coffee powder was consumed. Now, they sell it in jars and aluminum packs. Their consumers can buy it in different sizes like the family pack, economic pack, sulit pack and gift set. The different variants of Nescafé instant coffee are Nescafé Classic, Nescafé Decaf, Nescafé Gold Blend, Nescafé First Pick, Nescafé Choco Fudge, Nescafé Viva Vanilla, Nescafé Intense 3-in-1, Nescafé Hazalnut, Nescafé Original 3-in-1, Nescafé Sweet ‘n Creamy, Nescafé Sugar Free 3-in-1, Nescafé Decaf 3-in-1, Nescafé Fit with Teavigo, Nescafé Lingzhi with Ganoderma Extract and Nescafé Relax Decaffenaited Coffee with Chamomile, and Nescafé Protect. Nescafé 3-in-1 coffee contains coffee, sugar, and creamer just enough for those who want there coffee in an instant. Price varies depending on the flavor and size. Their price range estimate is from P25.00 to P450.00 depending on the amount of coffee bought. Here are the following prices of Nescafe Coffee products: Table 1 NESCAFE Prices Name Size Price Nescafe Classic Refill 110g P 71.50 50g P 35.95 25g P 18.10 Nescafe Classic Jar 50g P 54.90 200g P 216.25 Nescafe Classic Sulit Pack 12g x 12 pcs. P 114 Nescafe Classic Sticks 26g x 84 pcs P153.50 Nescafe Decaf Jar 200g P 303.50 Nescafe Gold Blend 100g P 262.20 200g P 449.50 Nescafe Gold Jar 100g P249.50 200g P424.50 Nescafe Decaf Refill 25g P 25.15 50g P 49.50 100g P 100.40 Nescafe Protect 100g P 130 50g P 70.50 Nescafe Classic First Pick (limited edition) 100g P 110 50g P 57.25 Nescafe Choco Fudge 15g x 10 pcs. P 67.70 Nescafe Viva Vanilla 15g x 10 pcs. P 67.70 Nescafe Intense 3 in 1 14g x 10 pcs. P 52.30 Nescafe Hazelnut 15g x 10 pcs. P 67.70 Nescafe Original 3 in 1 14g x 10 pcs. P 46.50 Nescafe Sweet n' Creamy 14g x 10 pcs. P 52.30 Nescafe Sugar Free 3 in 1 6g x 10 pcs. P 57.10 Nescafe Decaf 3 in 1 14g x 10 pcs. P 67.70 Nescafe Fit w/ Teavigo 32.5g P 39.25

Nescafe Lingzhi w/ Ganoderma Extract 70g P 49.50 Nescafe Relax Decaffinated Coffee w/ Chamomile 70g P 39.25 Nescafe Gift Set (Classic, Coffeemate, Protect) P 190 Nescafe Gift Set (Decaf, Gold, Protect) P 290 Nesacfe Taster's Choice Decaf 12g P57.50 Nescafe Taster's Choice Hazelnut 6.10 oz/ 172g P449.50 Nescafe Taster's Choice Regular 4 oz/ 113g P311.50 Nescafe Taster's Choice Orig. Blend 4 oz/ 113g P429.00 Nescafe Taster's Choice Vanilla 172g P419.50 Place is very important in marketing because it is how the products get to the consumers. There are many distribution channels, market coverage whether inclusive, exclusive or selective, warehousing, distribution centers, transportation, inventory management, order processing and reverse logistics that needs to be considered. In the case of Nescafe 3in1, it is distributed through warehouses to wholesalers and retailers. It can be bought by the consumers in the supermarkets, convenience stores and sari-sari stores around in different countries around the world. Given that Nescafé caters to a vast number of consumers and that there are a lot of competing brands in the market, they have to continue to promote their product using different media. Nescafé can be seen in billboards, newspapers, magazines, TV commercials, and even the internet. Recently, Nescafé became part of an online game called FLYFF. In the game, the players go on a quest and retrieve the different products that are needed in order to make Nescafé coffee. Drinking the Nescafé coffee will boost the player's health and other special powers. Aside from this, Nescafé also uses celebrities to promote their product. Some celebrities who've endorsed Nescafé are Kim Chiu and Gerald Anderson, John Lloyd Cruz, Bamboo, Toni Gonzaga and Sam Milby, and Francis M. and Ramon Bautista. Nescafé has some of the most interesting commercials in the Television. Recently, they've unveiled a new commercial where in a freshman student was surrounded by aliens. Its message was simple: Nescafé can make you feel at home even if you're in a new environment. Truly, Nescafé's commercials appeal to the heart of their viewers. Also, most of their ments are being shown during rainy seasons. One of their most famous tagline, "Sarap mag-Nescafé classic pag umuulan ‘no?, promotes Nescafé as the perfect drink during rainy days. II. Objectives We feel that it is necessary to investigate how the service workers consume the Nescafe 3-in-1 because we need to know how the market prioritizes drinking coffee. This research should aim to gain a clear understanding of customers' perceptions and experiences. Also, this paper will be useful for those people who might want to invest some time, their potential and expertise, in finding his/her way in the instant coffee world business. After some discussions among the group , we agreed that the overall objective is "to evaluate the response of the service workers to the Nescafe 3-in-1 product". This objective may be segregated into the following sub-objectives which will define the main objective of the group: • To examine how the Nescafe 3-in-1 affect the service workers in their daily consumption of the product. • To gather some information among the selected service workers and their experiences regarding the product using the UAI. • To determine how the Nescafe 3-in-1 behave in the market with the target consumers like the security guards. • To segment a total market patronizing Nescafe 3-in-1 and then describe and profile the different identified market segments by each segment's brand awareness, category usage and purchase practices, category and brand attitudes, and category and brand images, as well as by its socio-demographics • To find out the brand's most distinctive product benefit positioning in the market and relative to competitors. • To spot/explore new opportunities in the instant coffee market. • To measure the brand's share of mind, brand awareness, and the brand share of market. • To analyze the consumers' brand positioning behavior using the GAP and SWOT Analysis. III. Market The study will be conducted to service workers around Metro Manila, specifically to security guards from various establishments from Malate, Manila.

Security guards from establishments which sell coffee products such as Starbucks, McDonalds, Figaro and the like are to be excluded from the sample since their answers might be biased and alter the objectivity of this research. Aside from this segment, there are no more restrictions on the sample population of this study. Generally, the group sets target security guards from banks, schools, convenience stores and restaurants who don't serve coffee. IV. Research Method A quantitative research method would be conducted in order to asses the response of service workers on the new Nescafe 3-in1 coffee mix. The group would conduct a survey to gather information on the different viewpoints of service workers regarding the product. To yield a meaningful response, a sample size of 100 service workers would be needed. Aside from conducting survey, the group would conduct an interview with an individual who has a high interest or experience with regards to the coffee industry of the country. Secondary data about the different promotional activities made by the Nescafe Company would also be studied to know how it affects consumer consumption and how effective do they market their product. V. Findings A. STEP Analysis SOCIAL Increasing numbers of Filipinos are becoming health conscious. According to an article featured in the website of an Islamic organization, Filipinos are indeed starting to take an effort in order to improve their health condition. With this in mind, they are becoming mindful of their daily routines especially when it comes to food intake. Coffee has a lot of health benefits to offer such as it prevents the early signs of aging due to its antioxidants; it stimulates the mind and reduces discomfort and fatigue thus, promoting mental alertness; it also prevents diseases such as Parkinson's, liver illness and heart problems. These are just some of the health benefits of coffee which are not known to many Filipinos. In our study of the instant coffee addressed to service workers specifically security guards, the group learned that security guards care the least to the health benefits of coffee among its product attributes. When they were asked to rate the attributes and health benefits we mentioned, most of them were not actually aware of its health benefits. Moreover, they even hold the traditional misconceptions of coffee being a nerve wracking product that's why non-s have not even tried drinking. TECHNOLOGICAL Technology has created a society which expects instant results. This is very evident in the sprouting of stores, internet cafes and fast food chains that offers 24/7 service. In the urban setting like Manila, instant products are very much appreciated since it lessens the burden of a consumer. Instant products such as coffee and noodles are especially present in these 24/7 stores. The pace of technological change is so fast now and it is utilized by all age groups. Technological findings will continue to evolve and impact on consumer habits and expectations. The instant coffee market must take advantage of the internet and the different media that can encourage new trends in order to live up to the standards of its consumers. Nestle Philippines, for instance, has taken advantage of their spent coffee grounds to generate energy. This is one way for the company to promote technological advancement in a productive way. ECONOMIC Global market of instant coffee is at $17 billion dollars. With this figure, Starbucks coffee, the market leader in the specialty coffee market has ed the instant coffee market. Moreover, this is also caused by the financial downturn happening in the US. With this new participant in the instant coffee market, there are possibilities of having new trends in coffee drinking especially that Starbucks is a respected brand in the coffee market. In the Philippines, the annual growth rate of coffee is at 5%. This is a great opportunity for the participants of the instant coffee market. But with the entrance of Starbucks instant coffee in the scene, the current participants need to exert additional effort in order to stay in competition. Although this doesn't greatly affect minimum wage earners, there is still the possibility of them trying other products. Moreover, their behavior towards coffee drinking might also change when new trends in the instant coffee market come about.

Another economic aspect that may affect the operating environment of coffee is the booming of the call center industry in the Philippines. This may increase the consumption of coffee especially by call center agents since coffee increases mental alertness especially during late hours. POLITICAL The coffee company has a governing body known as the Common Code of the Coffee Community. It is a global association that engages stakeholders to be responsible in the economic, social and environmental stewardship of the coffee sector to continuously increase the sustainability of coffee. This code is also aimed at ing livelihoods for the community especially the farmers. It has also an advocacy in protecting the environment. This code that governs the coffee market is a way for the participants of the coffee market to perform corporate social responsibility aside from their aim to increase supply and demand for coffee. In the Philippines, coffee advocate such as Nestle Philippines has been ing coffee farmers by investing in farming especially in Mindanao. It also has a training team who advocates on issues concerning the environment. These practices of Nestle Philippines are in accordance to the Common Code for the Coffee Community. Through such code, the public is ensured that the coffee market is operating not only to their advantage but also to the benefit of the whole community. B. Market Size Estimation FIGURE 1 Unit Market Size= [target market segmentation x (% product category/ pack size s)] x (365/ days the pack size lasts) = 17.56 M x 41% x (365/2) = 1.31B Total Market Size= number of segment buyers x spending amount x frequency of purchase = 17.56M x 41% x P5.00 x (365/2) = 6.57B C. Spotting Opportunities Opportunities for Product Life Recycling and Extension FIGURE 2.1 Who else in the household uses instant coffee When we asked our respondents who else in their household drinks coffee, 42% of them said that it was their parents. 29% said that it was their siblings and 24% said that it was their wife/husband. The reason for this is that the generation of our respondent's parents was the time when instant coffee was introduced in the Philippines. Some of our respondents even commented that Nescafe instant coffee has already been part of their life, or as they've said it, "Nakasanayan na e". 3% of our respondent's children drink coffee. This is pretty low because coffee is not marketed as a drink for kids. Opportunities for Promotional and Product Extension FIGURE 2.2 What else is being used together with instant coffee Majority of our respondents said that they use Nescafe with bread or pandesal (50%). They said that they drink coffee in the morning and that for them; bread is the perfect complement for coffee. 31% of our respondents said that they use coffee with sugar and or creamer. This is subjective because it depends on their preference in the sweetness and taste of their coffee. What surprised us was the 5% who answered that they use coffee with cigarettes. According to them, "pampagana ng yosi [ang Nescafe]". This is very unusual because Nescafe is promoting their product as something that has health benefits but some of its s drink it while smoking a cigarette. FIGURE 2.3 What else is being bought together with instant coffee Again, majority of our respondents said that they buy coffee together with bread/biscuit (34%). On the other hand, 31% said that they buy it together with other food and drinks like hotdog, corned beef, and food that they intake during breakfast. This shows that service workers, particularly security guards, drink coffee in the morning in order for them to stay awake. Opportunities for Market Development FIGURE 2.4 Where instant coffee was last bought Majority of our respondents said that they buy their instant coffee products from the sari-sari store (54%). 16% said that they buy it from supermarkets, 11% said that they buy it from department stores, and 10% said that they buy it from grocery stores.

The traditional outlets for coffee products are the supermarkets and grocery stores. However, in the survey that we conducted, it appears that service workers would prefer to buy instant coffee in non-traditional outlets like the sari-sari store and the department store. Since service workers comprise about 50% of the Philippine population, this is something that Nescafe needs to look at. FIGURE 2.5 How often instant coffee is being purchased On average, our target market buys instant coffee either daily or weekly depending on the pack size. Those who said that they buy it daily buy the smallest pack size of instant coffee (12g). Those who said that they buy it weekly also said that they buy the 100g pack size of instant coffee. Opportunities for Better Brand Loyalty and Switching Strategies FIGURE 2.6 Brands Previously Used vs. Brands Currently Used From Figure 2.6 we can see that Nescafe is the market leader and the biggest share gainer. It has the highest percentage for the previously and currently used brand by the consumers of instant coffee. Its s increased by 13% from 37% to 50%. San Miguel follows Nescafe and is considered as the No.2 brand in the market. We can see that both Kaffe de Oro and Complete Coffee Mix are the biggest share losers having 3% of their consumers replace them with other brands. TABLE 2.1 Pro-forma Cross Tabulation Table: Previously Used Brands Versus Currently Used Brands From this Brand (Previously Used) To this Brand (Currently Used) Diagonal: Nes C.P. Kopi K.M. K.D.O. B.E. G.D. Jim B45 G.T. C.C.M. S.M. Total Show brand Nescafe 37 loyalty ratios Café Puro 9 Kopiko 12 Columns: Kraft Maxwell 1 Show ratios Kaffe de Oro 3 from where Barako Energy 4 share-gainers Good Day 1 got their s Jimm's 2 Blend 45 4 Row: Great Taste 6 Show ratios Complete Coffee Mix 3 of to which San Miguel 17 brand s Total 50 8 11 1 0 6 0 1 1 4 1 18 100 went. Legend: Nes = Nescafe; C.P. = Café Puro; Kopi = Kopiko; Urb = Urbon; G.R. = Great Taste; K.M. = Kraft Maxwell; O.T. = Old Town; G.C. = Gold Choice; K.D.O. = Kaffe de Oro; B.E. = Barako Energy; G.D. = Good Day; Jim = Jimm's; B45 = Bland 45; G.T. = Great Taste; C.C.M. = Complete Coffee Mix; B.C. = Bon Café; S.M. = San Miguel Opportunities for Improving the Competitive Status of the Brand RSOM (Leader brand) = Market Share of Leader Brand / Market Share of Follower Brand RSOM (Follower brand) = Market Share of Follower Brand / Market Share of Leader Brand TABLE 2.2 Computed Relative Shares of Market (RSOM's) Of the Twelve Instant Coffee Brands Brands Previous R.S.O.M Current R.S.O.M. Nescafe 2.18 strong market leader 2.78 strong market leader Café Puro 0.24 major contender status 0.16 major contender status Kopiko 0.32 serious challenger status 0.22 major contender status Kraft Maxwell 0.03 minor contender status 0.02 minor contender status Kaffe de Oro 0.08 minor contender status 0 Barako Energy 0.11 minor contender status 0.12 minor contender status Good Day 0.03 minor contender status 0 Jimm's 0.05 minor contender status 0.02 minor contender status

Blend 45 0.11 minor contender status 0.02 minor contender status Great Taste 0.16 major contender status 0.08 minor contender status Complete Coffee Mix 0.08 minor contender status 0.02 minor contender status San Miguel 0.46 serious challenger status 0.36 serious challenger status This table is used to help us analyze the competitive status of the different brands of instant coffee. We can see that Nescafe is a strong market leader with a 2.78 RSOM. San Miguel is considered as a serious challenger with an RSOM of 0.36. On the other hand, Kopiko became a major contender from being a serious challenger. This table shows us the trend of the RSOM of the companies in the coming years. Some of the companies had a large reduction in the RSOM like Café Puro, Kopoko, Blend 45, Complete Coffee Mix and San Miguel. Opportunities for Determining the Brand's Correct Competitors FIGURE 2.7 FIGURE 2.8 D. Share of Mind vs. Share of Market FIGURE 3.1 Brand Awareness This data presents the level of awareness of the respondent toward the different brands of instant coffee. We divided it into the first mention, other mention and aided mention. For the first mention, Nescafe acquired the highest awareness because of its effective promotional campaign and famous endorsers. For the other mentions, San Miguel has the highest percentage which only shows that people are aware of it but Nescafe is still the first thing that respondents . Overall, Nescafe has an awareness level of 100%, followed by San Miguel, Great Taste and Kopiko with an awareness level of 92%, 88% and 82% respectively. Brands like Urbon, Bon Café, and Good Day got the lowest awareness level. It shows that they are not d well and only a few people have heard about their brand. This is a bad sign for the three brands because brand awareness helps in boosting the sales of a product. FIGURE 3.2 Percentage of Mind and Market Share This figure shows the percentage of the mind share and market share of the different brands of instant coffee. The mind share is the same as the first mention (FM) in Figure 3.1. It shows that Nescafe is the first brand that comes to the respondent's mind whenever the topic is about instant coffee. Although San Miguel is the highest brand in the other mention category, it is not the top of the mind brand that consumers think of. Nescafe still has the highest percentage when it comes to market share. It just shows that a lot of the people who've tried Nescafe are loyal to the product. One reason for this is that Nescafe is the pioneer when it comes to instant coffee products. Also, Nescafe offers a wide variety of instant coffee which suits the different needs of its target market. San Miguel has the second highest market share at 27% followed by Kraft Maxwell, Kopiko and Barako Energy at 22%, 21% and 20% respectively. FIGURE 3.3 Reach, Conversion and Retention Ratio of Top 5 Brands Figure 3.3 shows the reach, conversion, and retention ratio of the top five brands of instant coffee. The first column is the reach ratio. This shows us the level of awareness of the consumers with the brand. Nescafe has the highest reach ratio with 100%. Not far behind is San Miguel who has a 92% reach ratio. Great Taste, Café Puro, and Kopiko have a reach ratio of 88%, 82% and 78% respectively. This implies that the top five brands of instant coffee have been doing well in their ad campaigns. Having a high reach ratio means that the brand has a lot of potential consumers. ment wise, Nescafe is still the best among the other instant coffee. The second column shows the conversion ratio. This shows the percentage of consumers who have tried the product. In the table, it shows that Nescafe has the highest conversion ratio with 90%. San Miguel, Kopiko, Café Puro and Great Taste have a conversion ratio of 53%, 53%, 46% and 39% respectively. Although Great Taste is the third brand when it comes to the reach ratio, it is the fourth brand in the conversion ratio. For Nescafe, this result implies that it has better consumer promo/pricing compared to the other brands. The third column is the retention ratio. This shows the percentage of the consumers who use the brand most often. Again, Nescafe has the highest retention ratio with 74%. This is followed by San Miguel, Kopiko, Café Puro and Great Taste with 48%, 37%, 30% and 15% respectively. This implies the product quality of the brands. The last column shows the market share. It shows how much percentage of the market the brand has. Nescafe has the highest market share with 41%. This is followed by San Miguel, Kopiko, Café Puro and Great Taste. E. Brand Positioning Behavior

FIGURE 4.1 Brand Attributes 1. GAP Analysis Figure 4.1 shows the brand position of the five brands of instant coffee based on the top five attributes chosen by the respondents. Nescafe, which is the market leader, has been able to get the highest ranking in all the five attributes. This means that Nescafe is able to deliver or even sur what the respondents need or expect from an instant coffee. Although there are still some rooms for improvement for Nescafe in of its health benefits and in of the stress relieving factor, its rating is still pretty high compared to its competitors. When it comes to the coffee's aroma, the respondents rated Nescafe and San Miguel equally at 3.6. This is also true when it comes to the most important factor of instant coffee, can keep you awake, wherein both Nescafe and San Miguel got a rating of 3.8. When it comes to the coffee's flavor, health benefits and stress relieving properties, Nescafe has made a gap with its serious competitor which is San Miguel. The respondents favored the flavor of Nescafe instant coffee more than San Miguel with a difference of 0.2 in the ratings. Nescafe has also dominated its market in of its health benefits and stress relieving properties. Nescafe has made a big gap between its other competitors which are Kopiko, Café Puro and Great Taste. This is a good sign for Nescafe because there are less threats for them in the market. 2. SWOT Analysis FIGURE 4.2 Strengths • International Market • Biggest share of mind - The leading market brand of instant coffee • Availability in the market is high • Many variants • Loyalty of the consumers • Has the highest rating in the top five attributes • Introduction of Antioxidants • s coffee farmers • Single serve packets Weaknesses • Price Opportunities • Making known to the public its health benefits • Tie-up with other company/canteen to provide Nescafe Threats • New entrants coffee brands • Coffee shops • Other alternatives for instant coffee like hot drinks (tea, chocolate drinks) • Competitors like San Miguel and other brands Nescafe, the market leader in instant coffee products, has the same attributes as the other coffee brands. Nevertheless, the instant coffee consumers believe that it delivers better taste and quality. The main weakness of Nescafe is its price because the other brands of instant coffee are relatively cheaper. Even though Nescafe has it's weakness, it is still the most dominant instant coffee product in the Philippine market. F. Market Segmentation Brand Ownership Based Segmentation of Instant Coffee Market Selected Socio-Demo Profiler Variable 1. % of segment base in age group: FIGURE 5.1 Market Segmentation- Segmentation-Age 2. % of segment base belonging to: FIGURE 5.2 Market Segmentation - Educational Attainment 3. % of segment base belonging to: FIGURE 5.3 Market Segmentation - Monthly Income 4. % of segment beg to: FIGURE 5.4 Market Segmentation - Civil Status 5. % of segment belonging to: FIGURE 5.5 Market Segmentation - Sex

FIGURE 6 G. Dream Positioning Model 1. Activity-based dream positioning The commercial we chose is the first ever commercial launched in the Philippines. We chose this because Nescafe was launched here in the Philippines with its tagline "Sumasarap and Gising" that made an impact to the consumers. 2. Adventure-driven dream positioning The commercial we chose was the Nescafe commercial starring Bamboo. We chose this commercial because it is actually based on the whole day adventure of Bamboo when he wakes up until he goes to his destinations. As the tagline of this commercial, "One good day coming up". Another commercial we chose was the Nescafe commercial Summer Reggae. It actually showcases the daring experience of a guy in a beach with all of the beautiful and sexy hot chicks. Every guys fantasize beautiful and gorgeous women. 3. Self-identity dream positioning The commercial we chose was the Nescafe commercial wherein John Lloyd was the main endorser. We chose this commercial mainly because John Lloyd now is a very famous matinee idol that they want women to be attached to their brand and John Lloyd would be the best option for the part. Since he has the charisma, it wouldn't be hard for women to notice the commercial. VI. Summary Based on the information we gathered from our respondents, we can conclude that Nescafe is still the leading brand in the market. It is dominating the market in of market share (with a massive lead of a 2.18 share compared to the 0.46 share of the serious contender), brand loyalty (where it is the market leader and also the biggest share gainer), brand awareness (where all respondents are aware of the product and majority having mentioned it first), and brand rating (where it got the highest ranking in all five attributes). It dominates all the four attributes in determining the brand's place in the market. Its closest competition is San Miguel Corporation. Nescafe and San Miguel coffee products dominate supermarket stalls as they have more space dedicated to their different coffee variants. Kopiko is also becoming a serious contender in the social worker department mainly due to the price. Other contenders are Café Puro and Great Taste Coffee. There are various reasons for why Nescafe is the leading brand. First of all, they have more variants. Different variants attract different kinds of customers which just widens their market share. Next is its huge multimedia exposure. Nescafe is the biggest in of advertising with tons of TV commercials, newspaper ads, billboard ads and etc. Since they're also using celebrity endorsers, people their ments more. This boosts brand awareness and is also one of the main reasons why everyone is aware of Nescafe. Lastly, Nescafe has credibility and a lot of people are already loyal with the product. As long as they continue maintaining their quality, for sure Nescafe will continue with its frontrunner status for a long time. VII. Recommendation Nescafe is very popular in the Philippines and according to the service worker we interviewed majority of them prefer Nescafe because according to them Nescafe is the first coffee introduced to them. We have also found that most service workers like their coffee creamy and Nescafe 3in 1 is the best choice of coffee because Nescafe 3in1 contains sugar, cream and coffee of course. If they prefer a much creamier coffee why not try the Nescafe Sweet and Creamy it will surely satisfy them. There are also variety flavors of Nescafe which they can choose from if they want to try something else. If they prefer bitter coffee then Nescafe Classic is the perfect choice. Nescafe 3in1 is made up of high quality coffee that will surely to suit your taste. The aroma of the coffee would make you crave for it. We prefer Nescafe because it has a good and high quality coffee and it's from a good brand, Nestle and the price is affordable. Coffee isn't really healthy but Nestle's Nescafe will guarantee that it is good for the health because their tag line is "choose wellness choose nestle", unless you drink too much it will be bad because too much of anything is bad. Coffee also helps delay signs of aging so it doesn't just keep you awake or suit your taste/cravings it's also good for the body and mind. Given all these, you have more reason to choose Nescafe so as their tagline says "Let's sit and talk awhile, in the one world of Nescafé". VIII. Appendix (Sample Questionnaire)

INTRODUCTION Good morning/afternoon/evening. My name is _______ from the De La Salle University-Manila. We are currently conducting a survey here in your community about people's opinions and experiences regarding how they patronize instant coffee. Can we have 15 minutes of your time? If respondent is willing and is busy at the time you called on him or her, haggle for an agreed time later in the day. Let's start. SCREENING 1. What are things that you do during your break? Drink Coffee Eat Take a nap Others: ____ If respondent doesn't mention anything about drinking coffee close the interview and thank the respondent for their time. 2. To what age group do you belong? 24 years old and below 1 25-29 years old 2 30-34 years old 3 35-39 years old 4 40-44 years old 5 45-49 years old 6 50 years old and above 7 3. Have you ever worked for a coffee company? 1 Have 2 Not have 4. Do you have a member of the family or a close relative working for a coffee company? 1 Have 2 Not have 5. Do you have a member of the family or a close relative working for an advertising company? 1 Have 2 Not have 6. Do you have a member of the family or a close relative working for a market research agency? 1 Have 2 Not have CORE DATA PORTION Q7 Q8 FM OM Aided Nescafe 1 1 1 Cafe Puro 2 2 2 Kopiko 3 3 3 Urbon 4 4 4 Gold Roast 5 5 5 Kraft Maxwell 6 6 6 Old Town 7 7 7 Gold Choice 8 8 8 Kaffe de Oro 9 9 9 Barako Energy 10 10 10 Good Day 11 11 11 Jimm's 12 12 12 Blend 45 13 13 13 Great Taste 14 14 14 Complete Coffee Mix 15 15 15 Bon Cafe 16 16 16 San Miguel 17 17 17 7. When thinking about coffee, what brands come to your mind? What else? 8. [FOR BRANDS NOT MENTIONED]

What about (brand not mentioned)? Do you know this brand? Others: (specify) _________________ ( ) ( ) _________________ ( ) ( ) 9. [FOR THE FIRST MENTIONED BRAND, ASK:] Where did you learn about this brand? Where else? Television 1 Radio 2 Newspaper 3 Magazines 4 Friends/relatives/neighbors 5 Stores 6 Others: (specify) ______________ ( ) ______________ ( ) Q10 Q11 FM OM Aided Nescafe 1 1 1 Cafe Puro 2 2 2 Kopiko 3 3 3 Urbon 4 4 4 Gold Roast 5 5 5 Kraft Maxwell 6 6 6 Old Town 7 7 7 Gold Choice 8 8 8 Kaffe de Oro 9 9 9 Barako Energy 10 10 10 Good Day 11 11 11 Jimm's 12 12 12 Blend 45 13 13 13 Great Taste 14 14 14 Complete Coffee Mix 15 15 15 Bon Cafe 16 16 16 San Miguel 17 17 17 10. What about ments for coffee brands? What coffee brand ments have you seen, heard or read in the past six months? What else? 11. [FOR THOSE NOT MENTIONED, ASK:] What about this brand's ad? Others: (specify) _________________ ( ) ( ) _________________ ( ) ( ) 12. Will you tell me if you drink coffee or not? [GO TO Q14] ←Yes (2) No (1) 13. Will you please let me know why you do not drink coffee? Why else? [Interviewer: PROBE FOR SPECIFICS.] ____________________________________________________________ ____________________________________________________________ _______________ [PROCEED TO THE CLASSIFICATION PORTION.] Q14 Original 1 Decaf 2

Unsweetened 3 Black 4 Sugar Free 5 Sweet n' Creamy 6 14. What type of coffee do you now drink? Others: (specify) ____________ ( ) ____________ ( ) Sachet 6g 1 12g 2 14g 3 15g 4 25g 5 32.5g 6 50g 7 70g 8 100g 9 110g 10 200g 11 15. What pack side do you now use? Others: (specify) ____________ ( ) ____________ ( ) 16. How long (in days or weeks) does this last with you? _______ # of days/weeks 17. When on for what occasions and purpose do you drink coffee? When or for what else? [Interviewer: PROBE FOR SPECIFICS.] ____________________________________________________________ ____________________________________________________________ _______________ Parent(s) 1 Brother(s)/Sister(s) 2 Baby/ Infant 3 Maid(s) 4 18. Who else in the family besides yourself drink coffee? Others: (specify) ____________ ( ) ____________ ( ) 19. During the last time you drink coffee, where did you get your supply of coffee? ____________________________________________________________ ______________________________ 20. With what other product/s do you drink coffee? With what else? ____________________________________________________________ ______________________________ 21. What brands of coffee you ever used? What else? Q21 Q22 Q23 Q24 Nescafe 1 1 1 1 Cafe Puro 2 2 2 2 Kopiko 3 3 3 3 Urbon 4 4 4 4 Gold Roast 5 5 5 5 Kraft Maxwell 6 6 6 6

Old Town 7 7 7 7 Gold Choice 8 8 8 8 Kaffe de Oro 9 9 9 9 Barako Energy 10 10 10 10 Good Day 11 11 11 11 Jimm's 12 12 12 12 Blend 45 13 13 13 13 Great Taste 14 14 14 14 Complete Coffee Mix 15 15 15 15 Bon Café 16 16 16 16 San Miguel 17 17 17 17 22. What brand did last use? 23. What brand did you use previous to this last one? 24. What brand do you use most often? Others: (specify) ______________________ ( ) ( ) ( ) ( ) ______________________ ( ) ( ) ( ) ( ) Q25 Q26 Supermarket 1 1 Drugstore 2 2 Department Store 3 3 Grocery store 4 4 Sari-sari store 5 5 25. When you last bought coffee, where did you buy it? 26. Where do you buy coffee most often? Others: (specify) ____________________ ( ) ( ) ____________________ ( ) ( ) 27. How often do you usually buy coffee? Every _____ weeks 28. What type of coffee did you last buy? ____________ 29. What pack size was that? _____________________ 30. How many of that size did you last buy? __________ 31. What price did you pay in the last purchase? P_____ 32. What else did you buy to go along with your coffee when you last bought coffee? _____________________________________________ 33. The last time you bought coffee, did you have a brand in mind? Yes (2) [GO TO Q37] ←No (1) 34. What was that brand? ________________________ 35. Did you find that brand in the store you went to? [GO TO Q37] ←Yes (2) No (1) 36. What did you do then? Did you: Buy whatever brand was available 1 Look for the brand in another store 2 Postponed buying until next trip 3 Others: (specify) __________________________________ ( ) 37. In buying coffee, what product qualities do you look for? What else? [Interviewer: PROBE FOR SPECIFICS.] ____________________________________________________________ ______________________________ 38. What is it about the brand of coffee that you last bought which you specifically did not like? What else? [Interviewer: PROBE FOR SPECIFICS.]

____________________________________________________________ ______________________________ ( ) none 39. What is it about the brand that you last bought which you specifically liked? What else? [Interviewer: PROBE FOR SPECIFICS.] ____________________________________________________________ ______________________________ ( ) none 40. I will now read to you a list of coffee product qualities and characteristics which I would like you to rate according to how important each of them to you when you have to buy a particular brand. Would you say that (start with the attribute with a tick-off) is to you: 4 = extremely important 3 = quite important 2 = a little important, or 1 = not that important? EI QI LI NI 1. coffee aroma 4 3 2 1 2. can keep you awake 4 3 2 1 3. flavor 4 3 2 1 4. health benefits 4 3 2 1 5. stress reliever 4 3 2 1 6. thirst quencher 4 3 2 1 7. satisfies hunger 4 3 2 1 8. better digestion 4 3 2 1 41. Now, may I ask you for your opinion about each of the following four coffee brands? Will you rate each of them on each of the attributes that you just rated in importance? Let us start with the (brand with tick-off) and rate it on (attribute with tick-off). Would you rate (brand) on (attribute): 5 = very highly, 4 = generally highly, 3 = neither highly nor poorly, 2 = generally poorly, or 1 = very poorly? 1. coffee aroma ( ) ( ) ( ) ( ) 2. can keep you awake ( ) ( ) ( ) ( ) 3. flavor ( ) ( ) ( ) ( ) 4. health benefits ( ) ( ) ( ) ( ) 5. stress reliever ( ) ( ) ( ) ( ) 6. thirst quencher ( ) ( ) ( ) ( ) 7. satisfies hunger ( ) ( ) ( ) ( ) 8. better digestion ( ) ( ) ( ) ( ) 42. May I please see whatever coffee brand packages you may have? On-Hand Not Seen Not Recognized Nescafe 1 1 1 Cafe Puro 2 2 2 Kopiko 3 3 3 Urbon 4 4 4 Gold Roast 5 5 5 Kraft Maxwell 6 6 6 Old Town 7 7 7 Gold Choice 8 8 8 Kaffe de Oro 9 9 9 Barako Energy 10 10 10

Good Day 11 11 11 Jimm's 12 12 12 Blend 45 13 13 13 Great Taste 14 14 14 Complete Coffee Mix 15 15 15 Bon Cafe 16 16 16 San Miguel 17 17 17 Others: (specify) ____________________ ( ) ____________________ ( ) ____________________ ( ) ____________________ ( ) CLASSIFICATION DATA PORTION Before we end, may I ask you a few questions about yourself? This is to enable us to classify in what group of people we will count your answers to complete averages and percentages. Married 1 Not married 2 43. Are you married? 44. What schooling did you finish? a. No schooling 1 b. Elementary 2 c. High School 3 d. College 4 e. Graduate School 5 45. Which of the following household facilities and devices do you have in your house? Running water 1 Electricity 2 Radio: Transistor 3 Radio: power 4 TV: black & white 5 TV: color 6 TV: cable 7 VCR: Betamax 8 VCR: VHS 9 Laserdisc player 10 Stereo phono 11 Piano 12 Air conditioner 13 Refrigerator 14 Freezer 15 Gas range 16 Car 17 Telephone 18 Cellular phone 19 Pager 20 Washing Machine 21 Water heater 22 Floor polisher 23 Vacuum Cleaner 24 Personal computer 25 Computer: Laptop 26 46. Considering what all the working household earn, in which category of total monthly household income do you belong? Just give me the letter of your answer. a. P3,000 or less 1 b. P3,001-P7,500 2 c. P7,501-P15,000 3 d. P15,001-P30,000 4 e. P30,001-P50,000 5 f. More than P50,000 6 Own 1 Rent 2 Other: Specify ______________ () 47. Do you or your household head own this house you are living in? Class AB 1

Class C 2 Class D 3 Class E 4 48. Record socio-economic classification. Male 1 Female 2 49. Respondent's sex THANK YOU VERY MUCH FOR YOUR COOPERATION! Interviewer: ANSWER THESE QUESTIONS ABOUT THE RESPONDENT BASED ON YOUR OBSERVATIONS. Do you think or feel that in answering your questions, this respondent was Yes No Honest with his/her answer? 1 2 More like he/she was trying to impress you? 1 2 Impatient with the interview 1 2 Negative in his/her attitude toward you and the interview? 1 2 Sample Questionnaire (Tagalog Version) INTRODUCTION Magandang umaga/tanghali/gabi. Ako po si ____________ mula sa De La Salle University-Manila. Kami ay kasalukuyang nagsasagawa ng sarbey mula dito sa komunidad ninyo tungkol sa mga opinion at karanasan ng bawat security guard patungkol sa pag-inom ng instant coffee. Maaari po ba naming mahingi ang 15 na minute ng inyong oras? Kung ang respondent ay sang-ayon at maraming gagawin sa oras na iyong sinabi, magbigay ng oras na mapapagkasunduan mula sa araw na iyon. Tayo nang magsimula. SCREENING 1. Anong ginagawa mo tuwing oras ng pahinga? Umiinom ng kape Kumakain Natutulog Iba pa: ____ Kung ang respondent ay hindi nagsabi ng kahit ano tungkol sa kape tapusin na ang interbyu at magpasalamat sa respondent sa kanilang oras. 2. Ilang taon ka na? 24 years old and below 1 25-29 years old 2 30-34 years old 3 35-39 years old 4 40-44 years old 5 45-49 years old 6 50 years old and above 7 3. Nakapagtrabaho ka nab a sa isang kumpanya ng kape? 1 Meron 2 Wala 4. May malapit ka ban a kamag-anak na nagtatrabaho sa kumpanya ng kape? 1 Meron 2 Wala 5. May malapit ka ban a kamag-anak na nagtatrabaho sa "advertising company"? 1 Meron 2 Wala 6. May malapit ka na kamag-anak na nagtatrabaho sa isang "market research agency"? 1 Meron 2 Wala CORE DATA PORTION Q7 Q8 FM OM Aided Nescafe 1 1 1

Cafe Puro 2 2 2 Kopiko 3 3 3 Urbon 4 4 4 Gold Roast 5 5 5 Kraft Maxwell 6 6 6 Old Town 7 7 7 Gold Choice 8 8 8 Kaffe de Oro 9 9 9 Barako Energy 10 10 10 Good Day 11 11 11 Jimm's 12 12 12 Blend 45 13 13 13 Great Taste 14 14 14 Complete Coffee Mix 15 15 15 Bon Cafe 16 16 16 San Miguel 17 17 17 7. Kapag nasabi ang kape, anong tatak ang unang pumapasok sa isip mo? Ano pa? 8. [PARA SA MGA TATAK NA HINDI NABANGGIT] What about (brand not mentioned)? Narinig mo nab a ang tatak na ito? Iba pa: (pakitiyak) _________________ ( ) ( ) _________________ ( ) ( ) 9. [PARA SA MGA FIRST BRAND MENTIONED, ITANONG:] Kanino/Saan monalaman ang tungkol sa tatak na ito? Saan pa? Television 1 Radio 2 Newspaper 3 Magazines 4 Friends/relatives/neighbors 5 Stores 6 Iba pa: (pakitiyak) ______________ ( ) ______________ ( ) Q10 Q11 FM OM Aided Nescafe 1 1 1 Cafe Puro 2 2 2 Kopiko 3 3 3 Urbon 4 4 4 Gold Roast 5 5 5 Kraft Maxwell 6 6 6 Old Town 7 7 7 Gold Choice 8 8 8 Kaffe de Oro 9 9 9 Barako Energy 10 10 10 Good Day 11 11 11 Jimm's 12 12 12 Blend 45 13 13 13 Great Taste 14 14 14 Complete Coffee Mix 15 15 15 Bon Cafe 16 16 16

San Miguel 17 17 17 10. Sa mga ments ng kape, anong tatak ang nakita/narinig/nabasa mo sa nakaraang anim na buwan? Ano pa? 11. [FOR THOSE NOT MENTIONED, ASK:] Ang mga ments nito? Iba pa: (pakitiyak) ________( ) ( ) ________( ) ( ) 12. Umiinom ka ban g kape o hindi? [PUMUNTA SA Q14] ←Oo (2) Hindi (1) 13. Kung hindi, ano ang iyong dahilan sa hindi paggamit? [Interviewer: PROBE FOR SPECIFICS.] ____________________________________________________________ ____________________________________________________________ _______________ [PUMUNTA SA CLASSIFICATION PORTION.] Q14 Original 1 Decaf 2 Unsweetened 3 Black 4 Sugar Free 5 Sweet n' Creamy 6 14. Anong klaseng kape ang iniinom mo ngayon? Iba pa: (pakitiyak) ____________ ( ) ____________ ( ) Sachet 6g 1 12g 2 14g 3 15g 4 25g 5 32.5g 6 50g 7 70g 8 100g 9 110g 10 200g 11 15. Anong pakc size ang ginamit mo ngayon? Iba pa: (pakitiyak) ____________ ( ) ____________ ( ) 16. Mga ilang araw tumatagal ang pack size na ito sa iyo? _______ bilang ng araw 17. Bakit ka umiinom ng kape? Tuwing kailan? [Interviewer: PROBE FOR SPECIFICS.] ____________________________________________________________ ____________________________________________________________ _______________ Magulang 1 Mga Kapatid) 2 Batang Anak 3

Katulong 4 18. Sino pa sa iyong pamilya, maliban sa iyo, ang umiinom ng kape? Iba pa: (pakitiyak) ____________ ( ) ____________ ( ) 19. Noong hiling beses na uminom ka ng kape, saan galling ang kape na ininom mo? ____________________________________________________________ ______________________________ 20. Kapag umiinom ka ng kape, sinasamahan mo ba ito ng iba pang prdukto? (Kung oo) Anong mga produkto ang mga ito? ____________________________________________________________ ______________________________ 21. Anong mga kape ang nagamit mo na? Ano pa? Q21 Q22 Q23 Q24 Nescafe 1 1 1 1 Cafe Puro 2 2 2 2 Kopiko 3 3 3 3 Urbon 4 4 4 4 Gold Roast 5 5 5 5 Kraft Maxwell 6 6 6 6 Old Town 7 7 7 7 Gold Choice 8 8 8 8 Kaffe de Oro 9 9 9 9 Barako Energy 10 10 10 10 Good Day 11 11 11 11 Jimm's 12 12 12 12 Blend 45 13 13 13 13 Great Taste 14 14 14 14 Complete Coffee Mix 15 15 15 15 Bon Café 16 16 16 16 San Miguel 17 17 17 17 22. Anong tatak ang huli mong ginamit? 23. Bago ito, anong tatak ang ginamit mo? 24. Anong tatak ang madals mong gamitin? Iba pa: (pakitiyak) ______________________ ( ) ( ) ( ) ( ) ______________________ ( ) ( ) ( ) ( ) Q25 Q26 Supermarket 1 1 Drugstore 2 2 Department Store 3 3 Grocery store 4 4 Sari-sari store 5 5 25. Noong huling beses kang bumili ng kape, saan ka bumili? 26. Saan ka madals bumili ng kape? Iba pa: (pakitiyak) ____________________ ( ) ( ) ____________________ ( ) ( ) 27. Kada ilang araw/lingo ka bumili ng kape? Tuwing _____ linggo 28. Anong klaseng kape ang iyong binili? ____________ 29. Anong pack size iyon? _______________________ 30. Ilang pack size ang iyong huling binili? ___________ 31. Magkano ang ibinayad mo para doon? P_____

32. Ano pa ang binili mo kasama ng kape noong huli kang bumili? _____________________________________________ 33. Noong huli mong bili, may tatak ka na bang iniisip bilhin? Oo (2) [PUMUNTA SA Q37] ←Hindi (1) 34. (Kung oo) Anong tatak nito? __________________ 35. Natagpuan mo ba ito sa pagbibilhan mo? [PUMUNTA SA Q37] ←Oo (2) Hindi (1) 36. (Kung wala) Anong ginawa mo noon? : Bumili ng tatak na mayroon sa tindahan 1 Pumunta sa ibang tindahan 2 Ipagpaliban ang pagbili hanggang sa susunod 3 Iba pa: (pakitiyak) __________________________________ ( ) 37. Sa pagbili ng kape, anong katangian ang hinahanap mo? Ano pa? [Interviewer: ITANONG ANG MGA PARTIKULAR.] ____________________________________________________________ ______________________________ 38. Anong hindi mo nagustuhan sa huling kapeng nabili mo? Ano pa? [Interviewer: ITANONG ANG MGA PARTIKULAR.] ____________________________________________________________ ______________________________ ( ) wala 39. Anong nagustuhan mo sa huling kapeng nabili mo? Ano pa? Interviewer: ITANONG ANG MGA PARTIKULAR.] ____________________________________________________________ ______________________________ ( ) wala 40. Babasahan kita ngayon ng mga katangian ng kape. Maaari markahan ito ayon sa importansyang nito sa pagbili mo ng kape? Maaari mo bang sabihin na (magsimula sa attribute na may tick-off) nito sa iyo: 4 = napakaimportante 3 = medyo importante 2 = important eng kaunti, or 1 = hindi importante? EI QI LI NI 1. amoy 4 3 2 1 2. nakakagising 4 3 2 1 3. lasa/klase 4 3 2 1 4. benepisyong pangkalusugan 4 3 2 1 5. pampaalis ng pagod 4 3 2 1 6. nakakapawi ng uhaw 4 3 2 1 7. nakakabusog 4 3 2 1 8. tulong sa pagtunaw 4 3 2 1 41. Ngayon, maaari ko bang malaman ang iyong opinion tungkol sa mga tatak na ito? Maaari mo bang markahan ang mga sumusunod na tatak sa kalidad ng kanilang kape? Atin nang simulan ang mga (brand na may tick-off) at markahan ito sa (attribute na may tick-off). Maaari mo bang markahan ang (brand) na (attribute): 5 = pinakamataas, 4 = karaniwang mataas, 3 = hindi gaanong kataasan at hindi gaanong mababa 2 = karaniwang mababa, or 1 = pinakamababa? 1. amoy ( ) ( ) ( ) ( )

2. nakakagising ( ) ( ) ( ) ( ) 3. lasa/klase ( ) ( ) ( ) ( ) 4. benepisyong pangkalusugan ( ) ( ) ( ) ( ) 5. pampaalis ng pagod ( ) ( ) ( ) ( ) 6. nakakapawi ng uhaw ( ) ( ) ( ) ( ) 7. nakakabusog ( ) ( ) ( ) ( ) 8. tumutulong sa pagtunaw ( ) ( ) ( ) ( ) 42. Maaari ko bang Makita kung anumang kape ang meron ka ngayon? On-Hand Not Seen Not Recognized Nescafe 1 1 1 Cafe Puro 2 2 2 Kopiko 3 3 3 Urbon 4 4 4 Gold Roast 5 5 5 Kraft Maxwell 6 6 6 Old Town 7 7 7 Gold Choice 8 8 8 Kaffe de Oro 9 9 9 Barako Energy 10 10 10 Good Day 11 11 11 Jimm's 12 12 12 Blend 45 13 13 13 Great Taste 14 14 14 Complete Coffee Mix 15 15 15 Bon Cafe 16 16 16 San Miguel 17 17 17 Iba pa: (pakitiyak) ____________________ ( ) ____________________ ( ) ____________________ ( ) ____________________ ( ) CLASSIFICATION DATA PORTION Bago tayo magtapos, maari ba akong magtanong sa inyo ng ilang personal na bagaytungkol sa inyo? Ito ay makatutulong sa pagtukoy kung anong grupo ng tao nabibilang ang iyong mga kasagutan upang makumpleto ang "averages" at "percentages". Kasal 1 Hindi pa kinakasal 2 43. Kasal na ba kayo? 44. Ano ang natapos mo? a. Hindi nakapag-aral 1 b. Elementarya 2 c. Sekondarya 3 d. Kolehiyo 4 e. Graduate School 5 45. Alin sa mga sumusunod ang mayroon ka? Running water 1 Electricity 2 Radio: Transistor 3 Radio: power 4 TV: black & white 5 TV: color 6 TV: cable 7 VCR: Betamax 8 VCR: VHS 9 Laserdisc player 10 Stereo phono 11 Piano 12 Air conditioner 13 Refrigerator 14 Freezer 15 Gas range 16

Car 17 Telephone 18 Cellular phone 19 Pager 20 Washing Machine 21 Water heater 22 Floor polisher 23 Vacuum Cleaner 24 Personal computer 25 Computer: Laptop 26 46. Mga magkano ang buwanang kita ng pamilya mo? (kasama ang lahat ng nagtatrabaho) Just give me the letter of your answer. a. P3,000 or less 1 b. P3,001-P7,500 2 c. P7,501-P15,000 3 d. P15,001-P30,000 4 e. P30,001-P50,000 5 f. More than P50,000 6 Own 1 Rent 2 Iba pa: (pakitiyak) ______________ () 47. Ang bahay na tinitirhan mo ba ngayon ay binili mo o nirerentahan? (Kung hindi, ano?) Class AB 1 Class C 2 Class D 3 Class E 4 48. Record socio-economic classification. Male 1 Female 2 49. Respondent's sex MARAMING SALAMAT SA INYONG KOOPERASYON! Interviewer: PAKISAGOT ANG MGA KATANUNGAN TUNGKOL SA MGA SUMAGOT BASE SA IYONG OBSERBASYON. Sa tingin o pakiramdam mo ba na sa pagsagot nila ng mga katanungan, ang nagsagot ay Oo Hindi Tapat sa kanyang sagot? 1 2 Maaaring pinapahnga ka niya? 1 2 Hindi makapagtimpi sa pag-iinterbyu 1 2 Negatibo sa kanyang pag-asal sa iyo at sa interbyu? 1 2 TABLE 2.3 Who else in the household uses instant coffee Who else in your household drinks coffee? Percentage Wife/Husband 24 Siblings 29 Parents 42 Children 3 Other Relatives 1 TABLE 2.4 What else is being used together with instant coffee What else do you use together with this product? Percentage Bread/Biscuits 50 Cigarettes 5 Sugar/Creamer 31 Other Food and Drinks 13 TABLE 2.5 What else is being bought together with instant coffee What else do you buy together with this product? Percentage

Bread/Biscuits 34 Cigarettes 10 Sugar/Creamer 13 Personal Care Product 3 Other food and drinks 31 Other products 8 TABLE 2.6 Where instant coffee was last bought Where did you last buy? Percentage Supermarket 16 Drugstore 7 Department Store 11 Grocery store 10 Sari-sari store 54 Convenience Store 2 Canteen 1 TABLE 2.7 How often instant coffee is being purchased How often do you purchase coffee? Percentage Daily 31 2-4 times a week 11 Once a week 31 Twice a week/Monthly 27 TABLE 2.8 Brands Previously Used Versus Brands Currently Used Conventional Treatment of Sample Data Base= Total of 179 Respondents Interviewed in Percentage Percent Base Brands Currently Previously Nescafe 50 37 Market Leader and Biggest Share Gainer Café Puro 8 9 Kopiko 11 12 Kraft Maxwell 1 1 Kaffe de Oro 0 3 Biggest Share Loser Barako Energy 6 4 Good Day 0 1 Jimm's 1 2 Blend 45 1 4 Great Taste 4 6 Complete Coffee Mix 1 3 San Miguel 18 17 No.2 Brand Total 100 100 TABLE 3.1 Brand Awareness for the Instant Coffee Brands Brand Awareness for the Instant Coffee Brands (Base= 179 total respondents) Percentage Base with this Awareness FM OM Unaided Aided TOTAL Nescafe 68 30 98 2 100 Café Puro 9 45 55 27 82 Kopiko 9 48 58 20 78 Urbon 0 0 0 1 1 Gold Roast 0 2 2 22 24 Kraft Maxwell 1 10 11 22 32 Old Town 0 3 3 11 15 Gold Choice 0 9 9 36 45

Kaffe de Oro 0 7 7 24 31 Barako Energy 0 27 27 29 56 Good Day 0 6 6 7 13 Jimm's 1 11 12 10 22 Blend 45 2 24 26 27 53 Great Taste 2 39 41 47 88 Complete Coffee Mix 2 18 21 23 44 Bon Café 0 1 1 3 4 San Miguel 6 59 64 27 92 TABLE 3.2 Brand Share of Mind versus Brand Share of Market Brand Share of Mind versus Brand Share of Market (Base= 179 total respondents) Share Indicators in Percentage Mind Share Market Share Nescafe 68 41 Café Puro 9 17 Kopiko 9 21 Kraft Maxwell 1 22 Barako Energy 0 20 Jimm's 1 14 Blend 45 2 6 Great Taste 2 8 Complete Coffee Mix 2 6 San Miguel 6 27 TABLE 3.3 Reach, Conversion, and Retention Ratios Reach, Conversion, and Retention Ratios Nescafe vs. Café Puro vs. Kopiko vs. Great Taste vs. San Miguel Brands Reach Ratio Conversion Ratio Retention Ratio Market Share Nescafe 100 90 74 41 Café Puro 82 46 30 17 Kopiko 78 53 37 21 Great Taste 88 39 15 8 San Miguel 92 53 48 27 TABLE 4.1 Brand Ratings Brand Ratings of the Five Instant Coffee Brands On the Five Top Priority Instant Coffee Attributes (Base= Total 179 Respondents interviewed) Product Attributes (in descending order of Brand's Average Rating on Attribute Nescafe San Miguel Kopiko Café Puro Great Taste importance: along a 4-point scale) Coffee Aroma (3.5) 3.6 3.6 3.2 3.1 3.2 Can Keep You Awake (3.6) 3.8 3.8 3.6 3.6 3.6 Flavor (3.5) 3.6 3.4 3.0 3.1 3.3 Health Benefits (2.7) 3.0 2.9 2.5 2.4 2.5 Stress Reliever (3.0) 3.0 2.8 2.6 2.5 2.7 TABLE 5.1 Market Segmentation Brand Ownership BasedSegmentation of Instant Coffee Market Selected Socio-Demo Profiler Variable 1. % of segment base in age group: 24 years old and below 6 25-29 years old 17 30-34 years old 31 35-39 years old 22

40-44 years old 13 45-49 years old 6 50 or more years old 4 2. % of segment base belonging to: Elementary graduate 1 High school graduate 70 College graduate 28 3. % of segment base belonging to: P3,001-P7,500 income per month 11 P7,501-P15,000 income per month 38 P15,001-P30,000 income per month 41 P30,001-P50,000 income per month 8 P50,000 and above income per month 2 4. % of segment base belonging to: Single 26 Married 73 Widowed 1 5. % of segment base belonging to: