nescafe presentation

and the French Youth

2017 Operation Plan Proposal

Penetration rate of instant coffee is lowest among the French youth.

CURRENT SITUATIONWhere are we now?

Accelerate the recruitment of young generation of consumers to NESCAFÉ brand

THE CHALLENGEWhere do we want to go?

OUR TARGETWho are we talking to?

Meet Amelie.Amelie is a 21-year old student at the ÉcolePolytechnique. She just recently moved out of herparents’ home and lives independently which is ahuge move for her.

Amelie lives a busy and very active lifestyle, usuallyjuggling school, homework and other personalactivities. She puts high value on convenienceofferings like ready-to-eat meals. The demands ofschool also requires her to have sufficient energy andto always be alert.

As a student, her budget is limited. She is very priceconscious, always on the lookout for the best deals.However, when Anna wants to treat herself, she will goout and socialize over meals, coffee or drinks.

She loves to travel. Traveling is an essential aspect ofher life. Her motivation for traveling is to build lifeexperiences and meet new people. She wants to travelas much as she can so she tries to keep costs downheavily relying on budget travel options and sharingeconomy such as AirBnb, Homestay, SkyScanner, OuiCar, etc.

Amelie loves to share her exceptional travel and diningexperiences and information with her friends on socialmedia.

34% of respondents drink coffeebecause of the energy it gives/keepsthem awake

67% of those who drink instant coffeedo so because it is easy andconvenient to prepare

2nd reason for drinking instant coffee isthe cheaper price

Busier schedules are making Frenchconsumers more dependent onconvenient, easy and quick foodoccasions - PRNewswire

French people continue to travel – butkeep costs down - Euromonitor

Moving out of parents’ house and intonew environments is the second mostsignificant moment in the life ofFrench youth

36% said that traveling is consideredthe most significant moment in the lifeof a French youth.3 of 4 French travel at least once ayear.

Sharing resources has become a trendto save on costs: from peer-to-peeraccommodation, car sharing, couchsurfing.

DESIRED STATEWhere do we want to go?

STRATEGIC OPPORTUNITYFurther establish #itallstarts with NESCAFÉ communication and

penetrate a space no one has taken advantage of yet.

MAIN CONSUMER INSIGHT“The most significant moments in my life always involve a

change in environment.”

STRATEGYMake NESCAFÉ present during one of the most significant moments in the lives

of the French Youth and prove that in whatever phase in life they may be and whatever they decide to start and go into, #itallstarts with NESCAFÉ.

THE BIG IDEA

#m vingplaces

Own the territory of traveling

ACTIVITIESHow do we get there?

Consumer JourneyHow can we reach Amelie while traveling?

Check finances

Online reviews Fly/train Car rental

Tour BusExplore Accommodations

In-store promotion

On-ground event

Partnerships

In-store PromotionsStart your #movingplaces journey with NESCAFÉ

A major barrier for not trying instant coffee among French youth is the negative perception on its taste

(48%).

Consumer Insights

Connecting a brand to something the target market loves will induce trial.

In-store PromotionsStart your #movingplaces journey with NESCAFÉ

Buy a pack of NESCAFÉ and earn "#movingplaces points" which can be converted to free trips for you and two of your loved ones.1

OBJECTIVES: 1) Induce trial and repeat purchase

2) Change the perception and break the barrier to purchase through sampling and promotions

3) Build brand affinity by creating strong emotional connection

University EventsStart your #movingplaces journey with NESCAFÉ

Buy a pack of NESCAFÉ and earn "#movingplaces points" which can be converted to free trips for you and two of your loved ones.1

Buy any NESCAFÉ product.Each pack you buy has

corresponding points that will earn #movingplaces points.

Each pack that you buy has a unique code which you can

enter online to track your points.

Post a creative story on social media via the Nescafe

fanpage on why you deserve a trip. Story has to be about

“making connections”, “reconnecting” or “moving

places”.

Once a specific number of points is reached, you will be

eligible to join the #movingplaces contest that will give you chance to win a free trip abroad with two of your

loved ones.

Top 8 most creative stories will be selected and be given free trips and Go Pro to document

their experience.

Promotional Channels: On-ground brand ambassadors, online video teasers, online posts and ads, flyers, in-store collaterals

University EventsShare your #movingplaces journey

Booths will be installed in major universities around France for 2-3 days near Spring, Summer and Winter breaks.2

I like to ask other people about travel tips before I make plans.

Consumer Insights

The most important travel information source for 55% of French respondents is “recommendations of

friends, colleagues, relatives.”

There are so many students in my university that I do not know and have not talked to before.


OBJECTIVES: 1) Induce trial of Nescafe products during an engaging event

2) Change the perception and break the barrier to purchase through sampling

3) Establish values of Nescafe to the target market (i.e. sharing, conviviality, making connections)




Register for the event and get #movingplaces points (if with

existing account) or create account and get first points.





Sampling of NESCAFÉ products will be done for all

participants.






participants.

A shirt will be given to each participant which they can fill

out to show which places they have been to and they are willing to share with other

participants.






participants.



participants.

RFID bands will be given which are linked to their FB and Twitter accounts and to

their #movingplaces account. Each participant will

accumulate points for every person they talk to.






participants.



participants.




NESCAFÉ premium coffee kits will be raffled off to the

participants which can encourage repeat purchase of

products and communicate convenience.






participants.



participants.




NESCAFÉ premium coffee kits will be raffled off to the

participants which can encourage repeat purchase of

products and communicate convenience.

Promotional Channels: School events boards, flyers, online campus community, NESCAFÉ Facebook and Twitter, on-ground banners

Travel PartnershipsEnjoy NESCAFÉ while you are #movingplaces

Partner with companies related to “sharing economy” and make NESCAFÉ available through these channels 3

Sharing economy takes off for French consumers (Euromonitor)

Consumer Insights

I am willing to try new things when I’m in a new environment.

A major barrier for not trying instant coffee among French youth is the negative perception on its taste.


NESCAFÉ to partner with car sharing sites to induce trial of products and be part of the

journeyi


NESCAFÉ to partner with AirBnb, Homestay or B&B hosts to greet their guests with NESCAFÉ

packs.ii


Thermos/mugs will be given to tourists and a vending machine will be installed in tour buses

for cheap and accessible coffee.iii

Timeline of Activities2017

IN-‐STORE PROMOTIONS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECPromo roll outDeployment of brand ambassadorsFlyeringIn-‐store collateralsOnline video teasersOnline posts and adsOnline posts

UNIVERSITY EVENT JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECEvent roll outOn-‐ground bannersOnline promotions

TRAVEL PARTNERSHIPS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECCar sharing sitesAccommodation PartnershipsTravel Agencies

Financial ProjectionCosts and Revenues

IN-STORE PROMOBUDGET €525,000Conversion rate 6%Average lifetime value per customer €22Value per sample €1# of trials 1,500,000% of target market 6%# of trials by targeted market 90,000

BUDGET €525,000Total

Sales:Sales from Promo €101,411

# of Boxes Sold 25,870Miles earned 517,405

On-ground brand ambassadors €121,339Online video teasers €247,646

Reach (Facebook and Twitter) 332,500Conversion Rate 19%

Online posts and ads €65,170Reach (Facebook and Twitter) 332,500Conversion Rate 5%

Flyers €392Reach 2,000Conversion Rate 5%

In-store collaterals €392Reach 2,000Conversion Rate 5%

Net Sales €536,350

Operating Expenses:2x Domestic, 2x Barcelona, 2x Italy, 2x Argentina, 2x New York

€46,636

Miles @ .1 EUR/mi €60,000# of Miles 600,000Total Points 600,000

On-ground brand ambassadors €400,000Online video teasers €3,000Online posts and ads €3,000Vending Machine €6,000

# of vending machines 20Sharing eco company merch 5,000Flyers €500In-store collaterals €500Total Expenses: €524,636

ROI 2.23%

Financial ProjectionsCosts and Revenues

Miles * # of tripsBarcelona 600 1,200 Italy 900 1,800 Argentina 7,000 14,000 New York 3,500 7,000 Total 12,000 24,000

Average Vacation Expenses per Trip

International Trip (12 nights)

Domestic Trip (4 nights)

Transportation 1,755.00 224.00 Lodging 683.00 150.00 Food/Drinks 520.00 155.00 Entertainment 293.00 52.00 Total 3,251.00 581.00 Cost-per-day 271.00 144.00 Total 6,773.00 1,306.00

Financial ProjectionsBUDGET €100,000

TotalSales:Sales from Promo €31,000

Reach 20,000Conversion Rate 30%

School events boards €784Reach 4,000Conversion Rate 5%

NESCAFÉ Facebook and Twitter €65,170Reach (Facebook and Twitter) 332,500Conversion Rate 5%

On-ground banners €1,039Reach (Facebook and Twitter) 5,300Conversion Rate 5%

Flyers €294Reach 1,500Conversion Rate 5%

Online campus community €225Reach 1,150Conversion Rate 5%

Net Sales €98,512

Operating Expenses:Event Costs €60,000

Sampling cost/person €3Shirts €25,000Premium coffee kits €1,200

Cost per kit €100Number of kits for giveaway 12

On-ground banners €400Flyers €500Sampler Salary €10,000Total Expenses: €97,100

ROI 1.45%

WHY WILL IT WORK?

No previous campaign that focuses on travels or moving

to new places.

The #movingplaces theme is expandable to other themes aside from travel: moving to college, moving out of the parents’ house, or starting a new job. #moving places can

also connote moving to a new state of mind.

Unique, rooted in a strong consumer insight and aligned with the NESCAFÉ

values (convivial, authentic, sharing, smart).

Own the territory of making significant

life changes

WHY WILL IT WORK?

The #movingplaces theme is expandable to other themes aside from travel: moving to college, moving out of the parents’ house, or starting a new job. #moving places can

also connote moving to a new state of mind.

Unique, rooted in a strong consumer insight and aligned with the NESCAFÉ

values (convivial, authentic, sharing, smart).

Thank you.

nescafe presentation

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