07.s nescafe

Atta UllahUniversity of Management and

TechnologyProgram:M.COM

S

INTRODUCTION

Rank: 35 in 2012 (interbrand.com)

Brand equity: $11,089 $m

NESCAFÉ is owned by Nestle.

Country of origin: Switzerland.

The company’s beverage products generate 22% of the

company’s total revenue.

Product Category: Beverages.

HISTORY OF NESCAFE

1938: First introduced

Max Morgenthaler and Vernon Chapman took 7 years to research and made Nescafe.

NESCAFÉ = nestlé + café

By the 1950s, coffee had become the beverage of choice for teenagers.

In 2004 Nestles’ share grew immensely to be the world’s largest direct purchaser of coffee

Now, NESCAFE is offering its worldwide chains in 32 countries; for example, France, China, Canada, Greece, and Thailand.

SWOT ANALYSIS

Strengths: Target Marketing– Nescafé caters to the

needs of all its customers around the world

Weakness: Brand Name– Nestlé had a number of

recalls in 2008.– Recalls affect all

products of Nestlé

Opportunities: Emerging Markets– China and India have the

fastest growing coffee markets

Threats: Changing climate

predictions– Coffee is the world’s 2nd

most production– Fall of it due to climate

change is a threat to Nescafe as well.

BRAND DEVELOPEMNENT

Line Extension: Nescafe 3 in 1, Nescafe Irish Latte, Cappuccino, Mocha.

Brand Extension: Café Nescafe, NescafeGold Blend, UK Nescafe, Nescafe ColdCoffee.

PRODUCT MIX WIDTH, LENGTH, DEPTH

Width: 9 for Nestle Pakistan(Ambient Dairy, Chilled Dairy, Beverages(Nescafe category), Bottled water, Culinary & food, Baby Food, Breakfast cereals, Confectionary, Nestle professional)

Depth: Nescafe Classic is available in 500g pack, 100g bottle and

50g bottle. Nescafe Gold is available in 100g and 50g bottle. Nescafe 3 in 1 in sachets. Nescafe Cold Coffee available in 200ml pack.

PRICING STRATEGY

Product line pricing: For 50g bottle Rs.75/- compared with Maxwell Rs. 80/- For 100g bottle Rs.135/- compared with Maxwell Rs. 150/- For 200g bottle Rs. 265/- compared with Maxwell Rs. 265/- For Sachet of Frothe Rs.8/-

STP

Geographical Segmentation: Nestle promotes Nescafe through out the year in cold

states of the country as compared to the places which have well defined summer and winter climate.

Demographical Segmentation: Nescafe segmentize market on the basis of Income and age

factors. Target Market:

Upper class. A part of middle class consumers as well.16-24 years age people (students and young

professionals).

Positioning: “1 coffee cup, 1 good feeling ”. The Red Nescafe mug is another popular symbol which

associates the Brand Nescafe with the concept sharing happiness.

To be the Pakistan’s favorite coffee, Nescafe must be the best at the two fundamental basics i.e. Quality and Brand while providing great value via reasonable prices.

POSITIONING STATEMENT

To middle and upper class people for their our Nescafe is coffee that helps you feel good and refreshed.

PERCEPTUAL POSITIONING MAP

Convenience

Perceived Quality

ARTICLES Higher prices of Nescafe raised company’s 2011 sales. Sales

also boosted growth in Europe; revenue climbed 3.8 percent. Nescafe is recalling jars because it has come to attention that

it contains pieces of glass; the Food Standard Agency reported.

Nestle introduced Nescafe Dolce Gusto in Australia (Geographical segmentation and technological factor).

Nescafe’s Hayes plant can not be developed for the firm’s future need. About 400 jobs at Tutbury might save the employees of Hayes.

An entire day production has been recalled due to presence of metal shavings.

LESSONS

Positive: New findings have shown that coffee is a rich source of

antioxidants (like vitamin A, E, C and Beta Carotene) that contribute significantly to your daily total antioxidant intake.

3-5 cups of coffee a day provide you with around 60% of your average daily antioxidant intake.

REFERENCES http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012

-Brand-View.aspx http://www.bbc.co.uk/news/science-environment-20252472 http://www.nestle.pk/brands/beverages/nescafe#.UOAoiIlevvg http://www.businessweek.com/news/2011-10-20/nestle-says-revenue-will-beat-ta

rget-on-higher-nescafe-prices.html

http://www.dailymail.co.uk/news/article-1280048/Nescafe-recall-fears-coffee-mixed-glass.html

http://www.nestle.com/Media/NewsAndFeatures/Pages/Dolce-Gusto-Australia.aspx

http://www.bbc.co.uk/news/uk-england-16581754 http://www.nestle-family.com/nescafe/english/articles/big-news-about-coffee-full-

of-antioxidants.aspx

http://news.bbc.co.uk/2/hi/uk_news/1296131.stm

THANK YOU