School of Business
Consumer Behavior – MKTG 240 TERM PAPER PROJECT Spring-2007 Presented to : Ms. Maya Farah Prepared by: Nathalie Abou Safi
Patricia Bakalian David khairallah Joseph Kharrat Marc Maalouf Presented on : 21/ 05/2007 Oral presentation on :28/05/2007
Executive Summary: We have been asked to conduct a company study for this course. We chose “Café Najjar” as it has positioned itself as the leading company in the Lebanese coffee market and consumer products. Café Najjar is a very dynamic and competitive company with means of global expansion and everlasting opportunities. Café Najjar has many offerings and it targets customers from all ages and from different backgrounds. At the beginning of the report, we conducted research methods to understand the consumer behavior of Lebanese coffee consumers. The research consisted of a group interview with three female coffee consumers which allowed us to gain deep insights about the patterns and behavior behind coffee consumption. In addition, we interviewed Mr. Elie el Achkar from the Café Najjar Company as we faced difficulties in interviewing the marketing manager. Mr. Achkar provided us with the essential information about the different products and services offered by the company as well the marketing strategy adopted and its different steps in reaching its goals. As an introduction, we gave some details pertaining to the background and history of the company concerning the foundation, the offerings and the operations. We then discussed the marketing plan of the company and how it segments and targets each market according to different variables. Afterwards, we gave a detailed explanation about the CDP model used by the Café Najjar Company which allowed us to gain knowledge about how the company does plans its method to match the customer’s expectations according to his buying process behavior and pattern. Finally, we gave our recommendations concerning the company’s current strategies trying to improve them in order to be able to compete in a more efficient way in the market and to stay at the top.
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Table of Content Executive Summary…………………………………………………………………….p. 2 Introduction……………………………………………………………………………..p. 4 a. Founder of the Company…………………………………………………p. 4 b. Company’s Main products……………………………………………………...p. 6 Identification of Target Market(s)…………………………………………………...…p. 8 a. Primary Market Demographic and Psychographics……………………...p.8 b. Recommendation and Potential Target Markets…………………………p.9 Consumer decision making processes……………………………...…………………p. 10 a. Type and Information Used by The consumer……………………………p. 10 b. Evaluation of Other Brands…………………..…………………………..p.11 Recommendations……………………………………………………….…………….p. 15 Conclusion………………...…………………………………………………………..p. 18 Work Cited………………………………………………………………………….…p. 19 Appendixes…………………………………………………………………………... p. 20
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1. Introduction a. Founder of the Company and Current Status Café Najjar is a Lebanese coffee company initially founded in 1957 by Ms. Michel Najjar .It used to sell coffee through vending machines and used to buy all their beans (Robusta beans) from manufacturers. Café Najjar became a factory only after selling 2000 kilos of coffee for consumption .The actual owner of the company is Mr. George Najjar, the son of Mr. Michel; it’s a one-man-show company where all major decisions are taken by him. It is in his time that the company grew widely. The company’s main product is coffee; Café Najjar processes its coffee in its owned factory located in Roumieh. Coffee is consumed and available in the whole world, but it differs in textures and in its array of flavors, tastes and aromas. At Café Najjar, coffee is treated with respect, and they consider their coffee making an art that they have mastered with all means of professionalism, from receiving the valued coffee beans to submitting them to the special treatment with all the state-of-the-art machines available in their factory. Their factory is the biggest in the Middle East, from which they provide their customers with the best coffee and greatest special taste. Their main goal at Café Najjar is to develop the genuine aroma of coffee and to offer it to their customers. Café Najjar manufactures many products available in all the Arab countries, satisfying all the coffee drinkers’ tastes and needs. The product mix length of café Najjar includes many brands such as: Café Najjar, Star Café, Carioca, Byblos, American Cup, Beirut Blend, and Espresso. As for the product mix depth of the brand Café Najjar, many versions are offered under this brand name. After we visited several stores in Lebanon to check out Café Najjar’s brands we found these versions available: Café Najjar Classic blue, Café Najjar Classic with cardamom, Le Brésilien with and without cardamom and Le Gourmet (Check Appendix F for photos of all products).
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Café Najjar, being the only suppliers of Turkish coffee machines, deals with restaurants, universities, schools and offices by supplying them with machines and their beans. I.e. Café Najjar supplies Dunkin Donuts with the machines and coffee beans, but Dunkin Donuts has the right to sell the products under its name. Some of the machine brand names we got from the interview were: Barista, Multirama, and Caférama. (Check Appendix F) Barista is one of the most famous coffee machines in Lebanon, most of the offices and cafes are equipped with these machines that are all supplied by Café Najjar. This way Café Najjar is proving that it’s following its customers everywhere. Café Najjar expanded its business in coffee making and vending machines and decided to open its own coffee shop, La Maison du Café. Located in different areas across Lebanon, it only served hot and cold beverages at first. Due to its success, it started a franchise with the aid of an American Consultancy Firm; it added complimentary products to the menu that would go excellently with the coffee. Today, it serves special sandwiches, pastries and desserts with exceptional tastes to please customers. In addition to Lebanon, it became available in Saudi Arabia, Bahrain, and Qatar. La Maison du Café grew successfully because it is known to: -Offer the best coffee (the aromas are its own secret recipe) -Be consumer-driven -Offer superior product -Present a clean, energetic and friendly image -Stand behind every word they say
The purpose of La Maison du Café is to offer customers a service that is not available elsewhere. La Maison du Café is the only place in Lebanon that sells you freshly brewed coffee in vacuumed bags. Some people buy big quantities when traveling. The service of selling freshly brewed coffee is exclusive to “la Maison du café” owned by the immediate 5
company and not its franchises. Café Najjar owns the branches of: Downtown, Zalka and Achrafieh .Other “la Maison du café” such as the ones located in BHV, Géant, and ABC Achrafieh are all franchises. b. Company’s Main products La Maison du Café Najjar offers its customers the best coffee available in Lebanon. It does so by importing its beans from the best countries in the world. Beans from all around the world are offered: •
Café Jamaique Blue Mountain: (these are the most expensive beans, sold for 217000L.L per Kg because the beans grow for only 1 month per year on a tree situated on an altitude of 2000m with a humid climate which makes it rare and difficult to bring.)
•
Café Australien
•
Café Colombien
•
Café Costa Rica
•
Café Cote D’Ivoire
•
Café Ethiopien
•
Café Indien
•
Café Indonisien
•
Café Nouvelle Ghine
•
Café Rubio Venezuela
•
Café Brésilien Santos
•
Café Mocha (Ethiopia)
•
Café Harrar
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c. Product life Cycle “A Product’s Life Cycle is the course that a product’s sales and profits take over its lifetime” (Kottler 2004). It involves five stages: product development, introduction, growth, maturity and decline. Café Najjar has been growing at a steady rate for the past 50 years, the owners don’t believe they have reached maturity yet and they believe they still have many opportunities to benefit from to grow more and more .Today they own a market share of 47%. They are clearly in the growth stage of the product’s life cycle. In Lebanon the growth is slow, whereas it is faster in the Arab and worldwide countries. The company is adding new product features and models to target different markets and reach different customers by offering different tastes (with and without cardamoms, American cup to target the youth), and different types of beans coming from abroad. In addition, it is increasing the number of distribution outlets with more than 15000 points of sales across Lebanon and using sponsoring for events (Basketball games) and sampling in the events and in supermarkets. It also reserves big budgets for retailers to have a considerable place on their shelves. In advertising, billboards are used to remind consumers of Café Najjar by affecting them on a personal level, with ads containing themes relevant to the main decision makers of the family, e.g.: the ad of the mother carrying her baby which affects mothers who usually are the shoppers in the family and lure them to buy Café Najjar’s products (check appendix C).
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2. Identification of Target Market(s) a. Primary Market Demographic and Psychographics Most of the caffeine consumed worldwide is coffee. It reached in some countries a level of 85%. Coffee is one of the most consumed beverages in the world alongside with tea and water. However it is an adult drink which should be taken into consideration when it comes to statistics opposed to water and tea which is consumed by all age segments. The primary target market and customers of Café Najjar’s products is “everyone” who drinks coffee. However the Lebanese Coffee market is very rich. Our local coffee industry share a wealthy line of diverse products and in addition to it, the foreign market competes and seizes a good share of the market. After analyzing the marketplace in terms of demographic structure which is by definition “the size, structure, and distribution of the population” (Blackwell, 2007), and observing shoppers in supermarkets, we noticed that most of the people who buy the goods are housewives. In general, they are the ones responsible to go to the supermarkets and buy weekly groceries for the whole family. To be more accurate, our target market is late 20 year old married women and above. They are the decision takers and the choice of purchasing this product is in their hands. However this choice is influenced by family members. In some case, every family member has a different taste, point of view and preference. Cafe Najjar offers a product line that satisfies different age groups, different social classes: Different types of coffee with cardamom or without it, Le gourmet, American Cup (American coffee)… Each product suits a member of the society. The only choice remaining for the shopper will be the brand of coffee. Shadowing shoppers was very helpful and interesting. Observations showed that on average 2 out of 5 women choose Cafe Najjar. Cafe Najjar’s customers are considered to be among the highest social class of the Lebanese community. According to the survey, Café Najjar’s shoppers are educated
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people who consume coffee and a variety of coffee based products. In the morning they would for example drink American coffee then during the office hours Turkish coffee and in the late afternoon a cappuccino with friends. They would consume a minimum of 2 to 3 cups per day (survey: Check appendix A). They are people who can afford to buy good and expensive coffee. These people earn a monthly income of 5000$ and more. This social class isn’t a majority in Lebanon. So, Café Najjar knows exactly the size of their target market and knows exactly where to reach its customers. Café Najjar participates in a lot of Lebanese social events where the elite people of the community attend. This is where the company will be able to reach new customers. b. Recommendation and Potential Target Markets Café Najjar’s most sold products are the Arabic, Turkish coffee (Ahwe terkiye). So they should work on developing the Arabic cup which is the equivalent of Nescafe. A potential target market is young adults ranging from 19 to 25, specifically university students. Coffee has become a student’s best friend. After observation we have noticed that university students consume around 2 coffee cups per day at university. This count is not taking into consideration the coffee consumption at home or outside university. In terms of demographic, they represent an idle target market in size and structure. Students drink coffee to stay awake, have energy and to socialize. They influence each other a lot which is very important for our product. If Café Najjar comes into fashion, students will all drink the same brand. The company should target those grocery stores, “dekken”, next to the Lebanese universities and all the coffee shops that are visited by scholars to maximize their profit and increase their scope. Coffee is part of these students’ lifestyle. Not only at university, they often go out just –to have a coffee- and of course to socialize. If café Najjar reaches this market it would be a great success. A potential target market would also be people who do not have time. Our century is becoming very hectic. Non- time consuming products are dominating the market and customers are very interested in these types of products. Café Najjar should target the business world. Specifically bankers and the work force who work long days in offices.
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However
we
will
develop
this
issue
in
the
recommendation
section.
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Consumer decision making processes a. Type and Information Used by The consumer Simply because customers have recognized the need to buy coffee doesn’t necessarily mean that they will progress through the decision process model. Every customer has at least once experienced the process of search of information when buying their coffee product. Search of information may be internal with it involving, retrieving and scanning decisionrelevant knowledge accumulated in memory; or external with it gathering information from the market place. Interestingly, consumers always rely on personal past experiences and on existing knowledge when making decisions of buying coffee. Our target market, for instance, have a quite considerable experience in coffee consumption. The degree of satisfaction has determined our consumer’s reliance on internal search. A certain degree of external search will always be needed only to evaluate the adequacy of one’s available knowledge. External search occurs when customers collect their information from their surrounding marketplace. An example we heard many times during our group interviews is that during morning ladies gathering, “Brunch”, a frequent topic discussed is the type of coffee they are drinking.(Check appendix D) So when a customer tries a certain brand and feels satisfied he’s now more motivated to go and buy it. The purchase of Café Najjar products is considered a habitual, repeated planned purchase. Low involvement and limited problem solving are involved in these purchases. Brand and company loyalty play a major role in the purchases of Café Najjar products. In fact, consumers have previously built satisfactory expectations about the product in use. Café Najjar offers a brand experience that connects with consumers on an intimate level. In result to the satisfaction delivered; they reward the company with continued use of their products in a highly resistant way. .
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b. Evaluation of Other Brands A favorable evaluation of a product by a consumer leads to its purchase. How do customers evaluate products? Relying on personal evaluation of alternatives, disliked alternatives are immediately rejected and liked alternatives will be considered and judged. Alternatives considered during a decision making process make up the consideration set : the consideration set only contain a subset of the number of the total number of options .The average size of consumer’s consideration set of coffee is 4 (Hauser , 1990 ) . From surveys, the consideration set of most of our target market include: Café Najjar, Café super Brazil, Café Abi Nasr and Café Rio. Café Najjar’s goal is to be always considered in customers’ evoked set. For habitual buyers , evaluation of alternatives is not much needed , because they rely on pre-existing evaluation that are based on prior consumption experience and purchase of the product .Cafe Najjar work hard to keep customers loyal fans of their products. As for first time buyers, the evaluation usually is under a piecemeal process. In piecemeal processes two different evaluation strategies may be used: compensatory and noncompensatory. Criteria used during evaluation of coffee are: Quality, Price, Availability, Good Taste, Beautiful Aroma- perfume, Brand name and Packaging. Yes, packaging is sometimes important to coffee shoppers because coffee is sold in supermarkets either freshly brewed or in plastic vacuumed bags. Some plastic bags may not preserve the quality of coffee or may diffuse some air which will ruin the coffee, and some packages may serve as signals of the product’s quality. Each considered criteria is evaluated by its strength and its weakness. Consumers rely on stored knowledge for evaluation and for some that are lacking such stored knowledge may rely on some external search for information to form beliefs and attitudes towards an alternative’s performance. Attitudes towards a product’s attributes play a major role in evaluation of alternatives. How are attitudes formed?
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According to Fishbein’s multi attribute attitude model, the evaluation of each of these following attributes turned out in our following example: •
when asked about if buying a high quality coffee is important or not: Very important +3 +2 +1 0 -1 -2 -3 Not important
•
Buying a famous brand name : Very important +3 +2 +1 0 -1 -2 -3 Not important
•
Buying a coffee product that have a good taste Very important +3 +2 +1 0 -1 -2 -3 Not important
•
Buying a coffee product that has a beautiful package Very important +3 +2 +1 0 -1 -2 -3 Not important etc…
Based on survey and group interview results the evaluation on each of the following salient attributes turned out to be: Good Quality = + 3 ; Low Price= -2; Availability = +1; Good Taste= +3; Beautiful Aroma, Perfume = +2; Brand Name = + 1; Packaging= 0 Attribute
Evaluation
Good quality
+3
Low price
-2
After evaluating each
Availability
+1
attribute, beliefs about each
Good taste
+3
brand possessing the
Beautiful aroma, perfume
+2
attributes are measured.
Brand name
+1
Similar questions were
Packaging
-1
asked to people in order to find out beliefs towards
each attribute of a brand:
•
How likely is it that brand X’s coffee is good in quality?
•
How likely is it that brand X’s coffee is found at low price? 13
•
How likely it that brand Y’s coffee is is available in the store near you?
•
How likely is it that brand Z’s coffee having a beautiful aroma, perfume?
Attribute
Evaluation Café
Good quality Low price Availability Good taste Beautiful aroma,
3 -2 1 3
perfume Brand name Packaging
Café
Café Super
Najjar 3 -2 2 3
Tafech 1 2 2 -1
Brasil 3 -1 3 1
2
3
0
3
1 -1
3 3
1 -1
2 3
30
0
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People surveyed, questioned and interviewed have shown the following results which prove the success of Café Najjar on gaining positive attitudes between its customers. To summarize, most of Café Najjar’s customers rely on internal search, which is highly affected by attitudes and beliefs towards a certain brand. Those positive results of attitudes prove the success of Café Najjar in succeeding to be the consumer’s choice. It all starts with the need recognition, the need to go shop for coffee. As the surveys show, most
of
the
purchase
of
café
Najjar’s
products
occurs
in
supermarkets.
One of the research methods we used was observations because people actions are more reliable from what they say. Their behavior includes conscious and unconscious impulses. Once the customer arrives to the coffee section in the supermarket, he is exposed to numerous competing coffee products (Check appendix). Since the purchase is planned, the consumer’s conscious behavior leads him/her directly to cafe Najjar’s product. Their products are efficiently placed on shelves in a way to attract the consumer’s attention on the eye level. Café Najjar reserves an important budget to their retailers to ensure the best 14
appearance. As we stated earlier, the consumer unconsciously may be distracted by the clutter, the noise of the competitive brands through promotions (price, gifts, and sweepstakes) and advertisements (Check Appendix). Moreover, café Najjar works hard on improving its POP displays in all its retailing POS. Though, the consumer might check out the lowered prices, promotions offered by their neighbors on shelves; the final decision will always turn out to be café Najjar, because previous satisfaction lowers consumer’s price sensitivity. Survey’s results also show that availability of coffee products in shopping locations (supermarkets, mini-markets …) affects the consumer’s decision. Interviewers have admitted that they are willing to drop their loyalty when it comes to unavailability of their chosen product; in other words they claimed that they are not willing to go visit another store just to buy Café Najjar. Café Najjar also offers its customers specialty coffee shops “La Maison Du Café”, where customers can go and buy freshly brewed coffee and enjoy a cup of coffee with friends. Most of La maison du café customers are loyal to Café Najjar .The issues of availability and freshness is optimized. Disposal of café Najjar product is the last stage in the consumer’s consumption process. Customers usually throw out the plastic bags after usage. Some households immediately open the purchased plastic bag and move the content into a special house coffee jar, others may keep the coffee inside the bag.
4. Recommendations Café Najjar’s performance over the last 50 years speaks for itself. They have been growing at a steady rate and always trying to attract more and more customers .Their goal is to reach YOU where ever YOU are: supermarkets , streets , offices , universities ,
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schools , playgrounds etc… from basketball courts to your office café Najjar always tries to be near you. Our recommendations concerning café Najjar’s target market are to increase customer awareness of different available coffee products, such as products targeted for young coffee drinkers. Turning these young coffee drinkers today into fans will increase long run market share and sales. Café Najjar might also position itself more as the gourmet’s coffee, the high class product, and work also more on creating another café Najjar product,
lower
in
quality
that
targets
middle
social
class
people.
Other than customer awareness and positioning, Café Najjar should start considering competing more in Lebanon in the instant American coffee. Their product “American Cup” needs much more marketing and advertising campaigns to increase customer awareness. That way they would accomplish the goal of gaining the new young target market. American Cup may introduce an instant sachets coffee products similar as to “Nescafe’s “ 3 in one product .This new product would target busy ,time pressed people who don’t have the time to prepare their own cup of coffee. We also recommend to introduce the mocha coffee blend to the national Lebanese market because first of all coffee drinkers are always ready to try new coffee blends, something not previously experienced. Secondly, La Maison Du Café’s mocha sales have showed that customers are becoming more and more accepting of this blend that is high in quality and distinct in taste. This unique product might increase their market share with capturing a new target market consisting of people who don’t like bitter traditional coffee, who prefer a flavored mix coffee base product. These products decisions modifications or addition will help Café Najjar even more in staying at the top of the Lebanese industry. Café Najjar’s image as the best and finest coffee brand in the region should be maintained for the upcoming years. There are no new recommendations to the pricing decisions of Café Najjar products. The current strategy will stay “on target” on the foreseeable future. Café Najjar’s prices today are considered a bit higher than competitors, but fair enough for the high quality offered .If any modifications to the pricing strategy occurs , damage to
the
company’s
image
may
take
place.
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Café Najjar’s products can be found in almost all Lebanese regions, in every small and big store. Distribution may be improved in increasing the use of technological devices (palm devices, bar code readers …) in the distribution vans and also increase communication levels with their distributors, retailers. Orders should be taken online through café Najjar’s website (www.cafenajjar.com) , thus enhancing their e-commerce activities. Café Najjar’s products are available in almost the four corners of the world .Growth and expansion strategies should be boosted in all countries where the Lebanese Diaspora is enlarging. Café Najjar’s current target markets are Arab and Middle Eastern countries, however today Europe should be considered more and more of a potential market in their evolving strategies. Café Najjar is a brand known in the consumer’s mind as a good quality-price coffee. However, café Najjar have to use consumer promotion because there are several brands available to wholesalers and retailers (the trade) to choose among and for consumers ultimately to select or reject for personal or family consumption. In fact, this requires getting consumers to try café Najjar coffee, in case they still haven’t, and make them purchase it regularly. Concerning the loyal customers, café Najjar should incur better CRM by in-store sampling at “La Maison du Café” and other coffee shop owned or franchised by Café Najjar. This kind of sampling should be used to show the distinct relative advantages of the fresh bean of café Najjar. In addition, premiums should be offered in some period when introducing a new coffee product. A free-with-purchase premium like a branded set of coffee cups or a branded coffeepot should be offered to the consumer. As well, in- and on-pack premiums are good mediums to affect the consumer behavior to buy the café Najjar coffee. Indeed, after conducting our marketing research, we found out that the Lebanese consumer care about the package and other kind of premiums. Continuity promotion programs can affect in a big portion the loyal customer because café Najjar has many Arab customers who come especially to Lebanon to have their fresh brewed coffee.
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Finally, we do not recommend to café Najjar to use any price-offs promotions because it will lower the image of the brand and can change the loyal customer opinion towards the brand.
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Conclusion Finally, Café Najjar proved itself as the chief company in the Lebanese coffee industry. Café Najjar is providing its customers with exquisite and premium quality coffee to satisfy all its loyal customers from different segments, tastes and needs. Café Najjar is present in the Arab world and worldwide. It is a very dynamic company differentiated from other competitors by its unique products and services. It is constantly innovating and introducing new ideas to the Lebanese market. The company is adding new product features and models to target different markets and reach different customers by offering different tastes. Café Najjar gets closer to its customers and to the Lebanese society by the means of sponsoring and sampling events in addition to successful and seducing advertising campaigns. Furthermore, Cafe Najjar offers a product line that satisfies different age groups, different social classes: Café Najjar participates in a lot of Lebanese social events where the elite people of the community attend. This is where the company will be able to reach new customers. Café Najjar believes that it hasn’t matured yet and is constantly foreseeing many opportunities to expand its target market. For example, a potential target market would be people who do not have time to go shop for coffee or the younger generation ranging from the age of 19 to 25 and the company offered them a new product called “American Cup” that matched their taste. We noticed that the consumers based their buying process on personal past experiences and on existing knowledge. The purchase of Café Najjar products is considered a habitual, repeated planned purchase. Low involvement and limited problem solving are involved in these purchases. Brand and company loyalty play a major role in the purchases of Café Najjar products. Criteria used during evaluation of coffee are: Quality, Price, Availability, Good Taste, Beautiful Aroma- perfume, Brand name and Packaging. Café Najjar’s positive image in the consumers’ minds will be maintained for the upcoming years and will allow the company to evolve as Café Najjar offers both premium coffees to its loyal customers and a unique and memorable experience.
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WORKS CITED: Molaro, R. (2005). Emotional Impact. License!, 8(6), 26-28. Retrieved Tuesday, May 15, 2007 from the Business Source Premier database. Fader, P., & McAlister, L. (1990). An elimination by aspects model of consumer response to... Journal of Marketing Research (JMR), 27(3), 322. Retrieved Monday, May 14, 2007 from the Business Source Premier database.
Hauser, J.R., Wernerfelt, B. (1990), "An evaluation cost model of consideration sets", Journal of Consumer Research, Vol. 16 No.4, pp.393-408. Blackwell, R (2006). Consumer behavior. Thompson Higher Education.
Kottler, P (2004). Principles of marketing. Pearson Education. Interview with Mr. Elie El Achkar ( appendix 0 )
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Appendix 0 : Elie Al Achkar , Coffee Machine Supplies Dept. Mob. (03)262620 Founded 1957 1 man show, 180 employees m, 100 cars m G Najjar manager of dept , captained ( asst manager) (+ mas2oul distribution in an area ) Turkish coffee machine (copyrighted) Machine star café, carioca … ( is ) Café Najjar: Dubai , Riyadh , All GCC Moka for travel: blended + vacuum In supermarkets: Brazil with or without Hal Turkish as serving Harrar – rubio Venezuela – 1992 : maison du café 1990 : brand created Fresh in zalka Georges Najja,r Manufacture in fanar . Products related to coffee Achrafieh is for the owner. Expectations: machines of coffee ,Franchise to serve same coffee but not coffee packs Targets: businessman, women, teenajers 217500-11500 L.L/kg Star Café: Stores increased in top of mind, then decreased Café Najjar is growing in Europe, Canada, States… Franchise difficult Café Brazilian: Santos Moka Brand: Ethipioan Maher Sayah 03-535692, waiter la maison Du café najar (interview in café Najjar zalka). classic m, le bresilien , gourmet , Beirut blend , carioca , byblos , star café , American cup ( youth … more POS .. for American coffee ,… - café Najjar basket ) Multirama , café rama ( machines … schools bureaux .. BARISTA.. nestle competitors , lower prices … adv . Turkish coffee spineys , dunkin donuts … Biggest factory. And in the middle east 21
In Europe, US take product and expand. POS in supermarket: stand gourmet coffee shop + taste + take away (in BHV) Speciality shop in zalka the most imp. 5 blend. Robusta and Arabica ( in hot places and high altitude) acidity but small Jamaica: At 2000m and special trees + seasonal , Brezil: all season long … lot of supply stage life cycle , Lebanon small growth World : high growth improve.. ban : beans roasted , to minimarket … + makana … hala2 vacuum on shelves … FOCH + Achrafieh + jal el dib : for company N.B :folllowwww customersssssssssssssss dept : OOH , out of home , bureaux , univ. , uncle deek … disctribution : palm visits , scan … improve technology … scanner palm improve sales and after sales ( visit by captain …
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Appendix A :
CONSUMER ATTITUDES TOWARDS COFFEE CONSUMPTION L’ATTITUDE DES CONSOMMATEURS VIS-A-VIS DE LA CONSOMMATION DU CAFÉ
The following survey was prepared as part of a study conducted at the American University of Beirut. The results of the survey are strictly for research basis and will remain confidential. The purpose of this survey is to discover Lebanese consumers. Please fill out the survey to the best of your knowledge. Le questionnaire suivant est dans le but de mener une étude à L’Université Américaine de Beirut (AUB). Les réponses feront strictement l’objet de cette étude et seront confidentielle. Le but de cette étude est de découvrir le consommateur libanais. Veuillez compléter ce questionnaire à l’aide de vos connaissances. Q.1.Gender / Genre 1
Male / Masculin
2
Female / Féminin
Q.2.What is your age ? / Quel âge avez-vous? : ………… Q.3.Which level of education did you reach? / Quel niveau d’éducation avez-vous atteint ? 1
Elementary or less / Primaire ou moins
2
Intermediate / Brevet
3
Secondary/ Diploma – Secondaire/ Baccalauréat
4
University / Universitaire
Q.5.What is your type of work? / Quel type d’emploie avez vous? Student / Etudiant
3
employed
House wife / Femme au Foyer
4
Unemployed / Sans travail
1 2
23
Q.6.To which category does your monthly personal income belongs? (In $) / Dans quelle catégorie de salaire mensuel appartenez-vous? (En $) 1 2 3
Less than 500 / Inférieur à 500 From 500 to 1000 / Entre 500 et 1000 From 1000 to 3000 / Entre 1000 et 3000
From 3000 to 5000 / Entre 3000 et5000
4 5
From 5000 to 10000 / Entre 5000 to 10000
6
10000 and above / 10000 et plus
Q.7. Do you drink Coffee? Consommer vous du café? 1
Yes / Oui
2
No / Non
Q.9. What is your average consumption of coffee per day ? Combien consommezvous de café en moyenne par jour? 1
1 cup / 1 tasse
3
2 cups / 2 tasse 4
2
3 cups / 3 tasse More than 3 cups / plus que 3 tasse
Q.10. What kind of Coffee do you prefer? / Quel genre de vin préférez-vous? 1 2
Lebanese with cardamom (hal ) / Libanais avec cardamon (hal) Espresso
3 4
Lebanese without cardamom (hal) / Libanais avec cardamom (hal) Other
Q.11. Where do you buy your coffee from? D’où acheter vous votre vin? 1 2
Supermarkets / Supermarchés Special coffee shops / Café
3
Internet /Internet
Others (Please Specify) / 4 Autres (Spécifier SVP) …………………………..
24
Q. 13. How often do you use the following information sources for buying coffee? / Utilisezvous fréquemment les informations suivantes à l’achat de votre café?
Experiential Knowledge / Par expérience Friend’s Opinion/ Avis de vos amis Label of Product / Etiquette du produit Media / Les Medias Internet / Internet Sales Representatives / Représentants de vente
never /
Rarely/
Jamais
Rarement
Sometimes / Quelques fois
Often / Souvent
1
2
3
4
Very Often / Très Souvent 5
1 1
2 2
3 3
4 4
5 5
1 1 1
2 2 2
3 3 3
4 4 4
5 5 5
Q.14. What is your monthly budget for buying coffee? ………….L.L / Quel est votre budget mensuel pour l’achat de votre vin? …………L.L) Q.15. What is the country of origin you are most likely to consume coffee from ? De quel pays d’origine préférez-vous consommer votre café? 1 2
Brazil / Brézil
3 4
Colombia Other / Autres
Ethiopia
Q.16. If you buy Lebanese Coffee, please rank the following brand(s) according to your preference (1: most preferred ………3: least preferred) / Si vous consommez du vin libanais, veuillez mettre par ordre de préférence les marques suivantes (1: préférable ………3: moins préférables) 25
Café Rio
Star Café Abi Nasr Brazilia Café Tafech
Café super brazil Café bon brazil Café Najjar
Q.17. How important the following factors when you choose coffee? / Quel est l’importance de ces facteurs lors de l’achat de votre café? Not Important All / Pas important Quality / Qualité Low Price / Bas Prix Availability / Disponibilité Taste / Goût Aroma – Perfume / Arome -Parfum Brand name / Marque Packaging / Paquet
-3 -3 -3 -3 -3 -3 -3
-2 -2 -2 -2 -2 -2 -2
Very At Important / Très important -1 -1 -1 -1 -1 -1 -1
0 0 0 0 0 0 0
1 1 1 1 1 1 1
2 2 2 2 2 2 2
3 3 3 3 3 3 3
Q. Rate Cafe Najjar on the following attributes Quality / Qualité
-3
-2
-1
0
1
2
3
Low Price / Bas Prix
-3
-2
-1
0
1
2
3
Availability / Disponibilité Taste / Goût Aroma – Perfume / Arome -Parfum Brand name / Marque
-3 -3 -3
-2 -2 -2
-1 -1 -1
0 0 0
1 1 1
2 2 2
3 3 3
-3
-2
-1
0
1
2
3
-3
-2
-1
0
1
2
3
Packaging / Paquet
Q. Rate Cafe Tafech on the following attributes Quality / Qualité
-3
-2
-1
0
1
2
3
Low Price / Bas Prix
-3
-2
-1
0
1
2
3
Availability / Disponibilité
-3
-2
-1
0
1
2
3 26
Taste / Goût Aroma – Perfume / Arome -Parfum Brand name / Marque
-3 -3
-2 -2
-1 -1
0 0
1 1
2 2
3 3
-3
-2
-1
0
1
2
3
Packaging / Paquet
-3
-2
-1
0
1
2
3
Q. Rate Cafe Super Brazil on the following items Quality / Qualité
-3
-2
-1
0
1
2
3
Low Price / Bas Prix
-3
-2
-1
0
1
2
3
Availability / Disponibilité Taste / Goût Aroma – Perfume / Arome -Parfum Brand name / Marque
-3 -3 -3
-2 -2 -2
-1 -1 -1
0 0 0
1 1 1
2 2 2
3 3 3
-3
-2
-1
0
1
2
3
-3
-2
-1
0
1
2
3
Packaging / Paquet
Thank you!! Merci!!
27
APPENDIX B :
Café Najjar
Importance Ranking
Attribute Good taste Good quality Beautiful aroma, perfume Availability Brand name Low price Packaging
Café Tafech
Café Super Brasil
poor
excellent
2
excellent excellent
good
very good
3
very good
good
very good
4 5 6 7
excellent excellent fair excellent
poor
excellent
good
very good
very good
good
good
very good
1
High
Café Najjar Super Brazil
Price Star cafe
Café Daniel
Café rio
Café tafech
Low low
high
quality 28
APPENDIX C :
Café Najjar’s Ad in Charcutier Aoun Rabieh : Café Najjar classic … toujours par amour
Café Najjar Basketball team logo
La maison du Café Turkish coffee : served with a cup of water and Lebanese “raha” .
29
APPENDIX D : INTERVIEWS
Group interview in Colombus café-ABC Achrafieh
Group interview with 3 housewives from different age groups
30
APPENDIX E : Observations in supermarkets
Woman choosing Café Najjar’s product in Charcutier Aoun- Rabieh
Café Najjar’s product in the coffee section of Spinneys -Dbayeh
31
APPENDIX F :
32
Café Najjar Product mix length :
Café Najjar
Star Cafe
33
Carioca Cafe
American Cup
34 Beirut Blend
Café Najjar product mix depth : Classic with Cardamom
Classic Without Cardamom
Café Najjar Gourmet
Le Bresilien With Cardamom
without Cardamom
Café Najjar Machines : Multirama in this picture , Charcutier Aoun Rabieh
35
