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SATISFACTION OF CAF
NESCAFE
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Certificate
This is to certify that Mr. Yogesh., student of
Institute of Management Studies & Research, has successfully
carried out the project, Study of Customer Satisfaction of Caf
Nescafe under my supervision and guidance as partial
fulfillment of the requirements of MMS course, Mumbai
University
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TABLEOFCONTENTS
SR.N
O.
TOPIC
PAGE
NO.
1.
EXECUTIVE SUMMARY
2.
3.
INTRODUCTION
4.
CAF NESCAFE
5.
KEY FEATURES
11
6.
PRODUCTS OFFERED
12
7.
CUSTOMER PROFILE
13
8.
COMPETITORS
14
9.
BARISTA
15
10.
16
17.
RESEARCH METHODOLOGY
17
18.
DATA ANALYSIS
19
19.
CONCLUSION
39
20.
LIMITATIONS
41
21.
RECOMMENDATIONS
42
22.
SUMMARY
43
23.
QUESTIONNAIRE
44
24.
BIBLIOGRAPHY
50
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EXECUTIVESUMMARY
The research was conducted to find the satisfaction levels of customers
visiting caf Nescafe outlets across Mumbai. Initially some background
data about the major competitors of caf Nescafe was collected. The main
sources of information were the internet and British Council Library. This
information proved to be very useful in improving the understanding
about the industry and it also gave an insight on how to go about
preparing the questionnaire. One of the main things that emerged from
the
literature
review
was
that
Nescafe
and
coffee
and
used
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RESEARCHPROBLEM
To measure the customer satisfaction of caf Nescafe across Mumbai
RESEARCHOBJECTIVE
1. To understand customer expectations.
2. To understand the likes and dislikes of customers among the
present offerings.
3. To identify problem areas in serving the customers.
DRINKING coffee while hanging out with friends might soon become the
happiest thing to do. Imagine a place where the ambience is comforting
and casual, with some semblance to the legendary European road cafe.
There are trademark white, wooden tables and bright halogens in blue
shades which dot the flaming orange walls. Theres a scrabble board and
books available to keep silent minds busy. The more gregarious are free
to strum the guitar leaning against the corner wall.
WELCOME THEN TO THE WORLD OF COFFEE SHOP THE CAF NESCAFE
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INTRODUCTION
The beginnings of Nescaf can be traced all the way back to 1930, when
the Brazilian government first approached Nestl. The coffee guru, Max
Morgenthaler, and his team set out immediately to find a way of
producing a quality cup of coffee that could be made simply by adding
water, yet would retain the coffees natural flavor. After seven long years
of research in our Swiss laboratories, they found the answer.
The new product was named Nescaf a combination of Nestl and caf.
We first introduced Nescaf in Switzerland, on April 1st, 1938. For the
first half of the next decade, however, World War II hindered its success
in Europe. Nescaf was soon exported to France, Great Britain and the
USA. Without realising it, American played a key role in re-launching
Nescaf on the continent by virtue of the fact that it was included in their
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food rations. Its popularity grew rapidly through the rest of the decade.
By the 1950s, coffee had become the beverage of choice for teenagers,
who were flocking to coffee-houses to hear the new rock n roll music.
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company also opened its cafes at places where the hip and the young
crowd hangs out, as also multiplexes.
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KEYFEATURES
To combat the rapid growth in the out of home fresh coffee market, in
1999 Nescafe launched Cafe Nescafe. This builds on the strong loyalty
of the brand which traditionally is viewed as an in-home product.
Pioneers of the Caf
Essentially a youth oriented brand with majority of its customers falling
in the 15-29 year age bracket
Each caf, depending upon its size attracts between 400 and 800
customers daily
At present it operates 147 cafes across 38 cities
Plans to operate 200 cafes by March 2006
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RANGEOFPRODUCTSOFFERED
Espresso
Strong black coffee ...no frills.
Espresso Americano
Lighter espresso for mellow moods.
Macchiato
Expresso topped with milk foam.
Cappuccino
The hottest selling item,prepared in true Italian style.
Cafe Latte
Espresso with milk. A light coffee.
Chococinno
A sinful combo of chocolate ice & hot coffee.
Cafe Mocha
Hot coffee with a swirl of chocolate.
Irish Coffee
Whipped cream tops the flavour of your choice.
Plunge deeper and discover light espresso.
Nestea (lemon/peach)
Lipton iced tea flavoured with lemon or peach
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CUSTOMERPROFILE
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18% of the customers visit the cafes daily while another 44%
visit weekly.
Each caf, depending upon its size attracts between 1000 and
2500 customers daily, mainly between 4pm and 7 pm.
Customers describe Caf nescafe as the place they frequent
most after home and workplace/college. It is a place where
they meet friends and colleagues, in groups of 3 or more.
The prices here are perceived to be reasonable and it is a place
where customers come to rejuvenate themselves and be
themselves rather than a place to be seen at vis a vis other
cafes.
MAJOR
COMPETITORS
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BARISTA
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Coffee is the speciality of Barista. But for the connoisseurs, Barista also
offers snacks and pastries. It also has a vast variety of ice creams to offer
its customers.
In coffee,items like Cappuccino, Expresso, Caffe Mocha, Caffe Americano
and the like are consumed more.
HOT
COFFEE
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Caf Coffee Day currently owns and operates 147 cafes in all
major cities in India. It is a part of India's largest coffee
conglomerate named Coffee Day, Rs. 200 crore ISO 9002
certified company. Coffee Day's most unique aspect is that it
grows the coffee it serves in its cafes.
RESEARCHMETHODOLOGY
An exploratory research was conducted in order the study the consumer
perception about CAF NESCAFE.
Sample Size
A sample size of 80 respondents was taken for the customer based
Questionnaire.
The
sample
selected
for
customer-based
questionnaire
is
of
60
respondents.
Research Area
The research was carried out at some of the branches of CAF NESCAFE
within mumbai.
Data Collection Tools
Sources of Data
Primary source: Questionnaire.
Secondary Sources: Data was collected from the various websites from
the Internet as well Journals of Marketing.
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Importance
To
enable
the
organizations
to
better
understand
the
customer
DATAANALYSIS
The dominant recalls for the word coffee shop is as follows-
Count
24
20
20
14
10
11
6
3
Caf
nescafe
hanging out
coffee
missing
ambience
The above graph shows that caf Nescafe has attained enough share in
the mind of the consumers to make caf Nescafe as the dominant for
coffee shop.
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40
Percent
39
35
30
25
20
10
0
once
once a week
missing
Caf Nescafe should try to convert the consumers coming once a fort
night to once a week or everyday as people coming once a fort night
forms a major chunk of the consumers.
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Time of visiting
70
65
60
P
er
ce
nt
50
40
30
20
24
10
11
afternoon
evening
night
Time of visiting
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People accompanying
Valid
family
friends
Total
Frequency
5
75
80
Percent
6.3
93.8
100.0
Valid Percent
6.3
93.8
100.0
Cumulative
Percent
6.3
100.0
People consider cafe Nescafe as a place more for fun than for place to
have coffee as a result most of the respondents consider visiting the shop
with friends than for coffee.
Percent
30
20
21
21
1 person
2 people
20
10
0
3 people
It can be seen from the above graph that most often people come in
groups of 4 or more, but there are considerable respondents coming
alone, as couples and in groups of 3 too.
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Time spend
60
55
Percent
50
40
39
30
20
10
0
6
less than 30 mins
30 mins - 1 hr
more than 1 hr
Time spend
The graph depicts that most of the people prefer to spend quite a lot of
time at the store ranging from 30 mins to more than an hour.
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Purpose of visiting
50
Percent
40
40
33
30
20
20
10
8
0
drinking coffee
spending time
relaxation
others
Purpose of visiting
The graph shows, that the purpose of visiting caf Nescafe is more often
to spend time as compared to drinking coffee. Relaxation, as a purpose,
comes a close second.
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Coffee
Cold Beverages
39.2%
19.9%
Pastries
Ice cream
19.3%
10.8%
Coffee is the product consumed most often among the products being
offered followed by cold beverages.
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20
yes
20
10
11
10
10
3
4
2
5
Freshness of coffee
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10
missing
yes
35.0%
no
63.7%
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61
Percent
50
40
30
20
23
10
13
4
0
more variety in snac
others
heavy meals
missing
Majority of the respondents did not want additional products, other than
the ones being already offered, to be offered. And those who did want
them primarily wished for more variety in the products.
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Flavour offered
16.25%
16%
26.25%
26%
extremely dissatisfied
somewhat dissatisfied
neither satisfied nor dissatisfied
somewhat satisfied
extremely satisfied
missing
51.25%
51%
3000 - 5000 pm
11.2%
11.2%
5000 - 10000 pm
13.8%
nil
35.0%
above 10000 pm
28.7%
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Taste of coffee
8.75%
9%
18.75%
19%
5.00%
5%
8.75%
9%
extremely dissatisfied
somewhat dissatisfied
neither satisfied nor dissatisfied
somewhat satisfied
extremely satisfied
Pies show percents
58.75%
59%
The taste of coffee has also found favour with the customers as has been
reflected by the above graph.
Aroma of coffee
1.25%
2.50%
4%
15.00%
31.25%
extremely dissatisfied
somewhat dissatisfied
neither satisfied nor dissatisfied
somewhat satisfied
3.75%
15%
extremely satisfied
missing
Pies show percents
46.25%
46%
The aroma of coffee is in line with the flavour and is positively rated.
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Looks of coffee
3.75%
1.25%
5.00%
1%
5%
extremely dissatisfied
somewhat dissatisfied
neither satisfied nor dissatisfied
somewhat satisfied
extremely satisfied
missing
16.25%
4%
16%
36.25%
36%
37.50%
38%
The appearance of coffee has also been liked by the customers and
thus carries a positive image.
60
Count
50
40
30
20
10
16
yes
no
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mins
15.0%
10-15 mins
7.5%
missing
65.0%
Most of the respondents feel that the service is quick and efficient as is
evident from above two graphs. Most of the respondents feel that the
time lag is between 5 and 10 mins.
43.8%
1.3%
neither satisf ied no
15.0%
Caf Nescafe comes out strong with the friendliness of the sales
representatives as the majority of customers go with being extremely
satisfied.
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neither satisf i
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40.0%
3.8%
neither satisf ied no
11.2%
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The salesmen have come across as being very courteous to all the
customers.
40
Count
40
30
24
20
9
10
extremely satisfied
somewhat dissatisfied
somewhat satisfied
Current level of service
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extremely dissatisfi
12.5%
15.0%
somewhat satisfied
somewhat dissatisfie
17.5%
17.5%
neither satisfied no
37.5%
The data about the complaints being handled by caf nescafe is too
fragmented to draw any definite conclusions, but it does reflect an
area of probable improvement.
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female
male
60.0%
definity not
2.5%
8.7%
probably not
11.2%
definitely
47.5%
probably
30.0%
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probably
35.0%
The probability of the next visit is extremely high among most of the
respondents reflecting a positive over all experience of the customers
with CAF NESCAFE. This is also seen through the data of the above
graph
where
the
respondents
show
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positive
bend
towards
22-27 yrs
28-33 yrs
16
10
14
34 yrs &
above
Total
22
19
26
8
Total
25
48
80
Total
22-27 yrs
28-33 yrs
10
13
14
34 yrs &
above
2
Total
21
20
24
11
4
25
48
4
2
80
People across all age groups are generally satisfied with the product
quality.
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Total
22-27 yrs
28-33 yrs
34 yrs &
above
Total
11
11
22
23
33
11
25
48
80
Total
22-27 yrs
28-33 yrs
10
11
15
25
48
34 yrs &
above
Total
10
3
1
17
18
21
14
80
Majority of the respondents in the age group of 22-27 yrs for whom
privacy is one of the attractions are slightly dissatisfied and expect more
on this front.
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FINDINGS/CONCLUSION
People have developed a perception about the coffee shop that the
primary motive behind visiting caf Nescafe is that of spending
time rather than consuming the product. This perception seems to
primarily influence their decision to visit.
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the
general
feeling
is
that
caf
Nescafe
charges
Although consumers are fairly satisfied with the present level of the
service there is still scope for improvement to ensure complete
customer satisfaction. Apart from the products offered consumers
also foresee a coffee shop providing services like free internet, bill
payment through credit cards, more working hrs. And quiet corners
and in turn offering privacy.
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LIMITATIONSOFTHEPROJECT
Time constraint
Respondent biasness
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RECOMMENDATIONS
It is quite evident that people visit the caf to spend time with
friends rather than consuming coffee. So seating capacity at most
take away outlets should be installed and increased.
Prices of items with less food cost and more margins could be
lowered slightly, to make them fast moving items.
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SUMMARY
Having coffee while freaking out with friends has become a fad. The
concept has come to India from Europe where road side cafs are a part
of day to day life. Coffee shops in India were pioneered by Barista Coffee
house, followed by caf coffee day and caf Nescafe. Caf Nescafe
opened in India in 1999. The project was undertaken to find the customer
satisfaction levels for caf Nescafe across the city of Mumbai.
After conducting a pilot study, the opinion was that caf Nescafe has top
mind share amongst coffee lovers in Mumbai. But after completion of the
project some startling facts were unearthed. For example respondents
who preferred caf Nescafe preferred its coffee more for its quality and
freshness and came to visit the coffee shop for passing time with friends
rather than consuming coffee. It was observed that majority of the
customers were in the age group of 22-27yrs who prefer spending their
days off from their daily schedules with friends.
Customers preferred caf Nescafe for the pleasant atmosphere it offers
and it has been offering the expected level of service to its customers.
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QUESTIONNAIRE
CONCEPT OF COFFEE SHOP
1. Do you like the concept of coffee shop?
Yes
No
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PRODUCT RELATED
9. Which products do you consume in a coffee shop?
Coffee
Ice cream
Pastries
Cold beverages
Snacks
10. If its coffee, then on a scale of 10 how would you rate the freshness associated
after consuming coffee.
10
11. Would you like to add any product category?
Yes
No
13. How much satisfied are you with various properties / qualities of the products
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Extremely
somewhat
extremely
dissatisfied dissatisfied
satisfied
a) Number of
flavours offered
b)
Taste
c) Aroma / smell
d) Looks / appearance
14. Do you feel that the quantity provided is value for money?
Yes
No
SERVICE RELATED
15. Do you think the time between placing the order and receiving the product/service
is too long?
Yes
No
18. Do you want any additional service to be offered? (if any, please specify)
___________________________________________________________________
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19. Rate the following products/services according to your preference for them, if they
are offered by Barista (1=most important, 5=least important)
1
a) Free internet
b) Tea
c) More outlets
d) 24 hrs working
e) Quiet corners
f) Payment through
Credit cards
SALES PERSONNEL
20. Rate your experience about the sales services in the coffee shop
Extremely somewhat neither satisfied somewhat extremely
Dissatisfied Dissatisfied nor dissatisfied satisfied satisfied
a) Friendliness of sales
reps.
b) Responsiveness
c) Sales reps. Appearance
and neatness
d) Communication skills
e) Courtesy
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somewhat
extremely
Dissatisfied dissatisfied
satisfied
a) fixtures / furniture
b) display
c) cleanliness of the shop
d) store timing
e) seating arrangement
22. How was your experience during your first visit (on the following factors)?
Much more somewhat
about what
somewhat
much
less
Than I
more I
Expected
Expected
less than I
than
I
Expected
Expected
Expected
a) Product Quality
b) Service Quality
c) Ambience
d) Privacy
23. Are you satisfied with the way the complaints are handled by the coffee shop?
Extremely
somewhat
extremely
Dissatisfied dissatisfied
Probably
Not
Probably
satisfied
Definitely
b) your recommending
the coffee shop
to others.
CUSTOMER PROFILE
25. Age :
16- 21 yrs
22 - 27yrs
28 -33 yrs
34 & above
26. Income
3000 5000 p.m
5000 10000 p.m
above 10000 p.m
27. Gender
Male Female
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BIBLIOGRAPHY
BRITISH COUNCIL LIBRARY JOURNALS
INTERNET:
www.indiainfoline.com
Page 49 of 50
www.economictimes.com
www.nescafe.co.in
www.cafecoffeeday.com
www.barista.co.in
www.google.com
www.businessline.com
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