NESTEA Marketing research

Topics: Marketing, Marketing research, Market research Pages: 8 (1659 words) Published: October 3, 2014

NESTEA Marketing Research case
Marketing Research Midterm case study

Submitted to: Dr. Wael Kortam
[Type the author name]

Prepared by:
Karim EL Banna.
Rita Rizkalla.
Sara el demeiery.
Mostafa el faramawy.

What is NESTEA?
NESTEA is a brand of iced tea manufactured by Nestlé and distributed by Nestlé company's beverage department in the United States and by Beverage Partners Worldwide (BPW), a joint venture between The Coca-Cola Company and Nestlé, in the rest of the world. It competes with Unilever/PepsiCo's Lipton Iced Tea (the main competitor). It provides a variety of tea products, in regular and diet forms, including liquid and powdered tea concentrates, refrigeratable teas, and ready-to-drink bottles.

RTD Tea market picture in Egypt:
RTD tea (noncarbonated beverage) in the market remained limited in Egypt with only a small consumer base of affluent households. Despite this narrow consumer profile, the category achieved total volume growth of 4% in 2012, a stronger performance than the review period C AGR of 3%. This growth was in line with the increase in the size of its consumer base rather than any increase in per capita consumption. COMPETITIVE LANDSCAPE

Nestlé Egypt SAE first launched its NESTEA brand, a powdered beverage, across the globe before expanding into Egypt. Nestlé Egypt poses little threat to Pepsi-Lipton International as both companies sell their products in different formats. Pepsi-Lipton sells RTD products in bottles, whilst Nestlé Egypt has selected to sell its products in powder sachets.

Who is the consumer profile of NESTEA drinkers in Egypt? What are targeted segments? Teens (males & females) and Moms (working & household)
Age: 18- 38 years
Focus mainly on urban areas. Special occasions, when there are guests When eating out, at clubs sporting, less sugar (on diet), shopping, lunch breaks & summer times. Available at Supermarkets, Restaurants & Convenience stores. In restaurants, institutional (5-10% of NESTEA’s sales)

In-home (most of their sales).

What're the main drivers for Marketing Research for the company in this case? 1. NESTEA poor Egyptian market penetration & failure to achieve projected market share & share of mind. 2. Other products sales are increasing. Lipton Iced Tea (the main competitor). 3. False selection of target segments that DOES NOT prefer RTD tea (noncarbonated beverage) for their refreshments during daily activities. 4. Almost no preference or Noise on social networks (e.g. Facebook page NESTEA Egypt only 100 likes!!!!!!!!!). 5. Egyptian consumer prefers more Bagged/loose Tea more than RTD tea.

What is the expected value-added of the planned Marketing Research project? 1. Problem diagnosis of NOT achieving projected market share while other products sales are increasing. 2. No repurchases & poor W.O.M.

3. Assess previous target segments preferences & define targeting problem. 4. Re-positioning recommendation of NESTEA at Egyptian market. Marketing Research Needs Assessment:
1. Capacity:
a. In NESTEA case, the Marketing Research is capable of producing required information. b. Already the need for Tea in Egypt appears on wide range. But we need to re-position RTD and target the interested segments. c. Also, Information from successful competitors will be useful to study the gap and figure out more about problem definition. d. Through surveys and Marketing Research tools, we can gain more information regarding RTD customers. Ex: i. Audience Research. Audience research is aimed at discovering who is listening, watching, or reading radio, TV, and print media respectively. Such studies in part profile the audience and in part determine the popularity of the medium or portions of it. ii. Product Research. Product tests, of course, directly relate to use of the product. Good examples are tasting tests used to pick the most popular flavors. iii. Brand...
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