Nescafe, being a product of a famous brand nestle have been successful in capturing a high market share of instant coffee. The word Nescafe is actually the portmanteau of two words that are “Nestle” and “café”. Max Mergenthaler along with his team members had worked hard for almost seven years to make coffee powder. On April 1, 1930 for the first time in Switzerland, they succeeded. It was launched in the United States with a brand name known as Taster’s Choice Nescafe. However, the brand name was once again changed and was then known as Nescafe Taster Choice.
Marketing structure
Marketing strategy
Nestle is one of those products that is considered to be people and brand oriented rather than being system oriented. Their marketing strategy is designed in a way that gives importance to the needs and lifestyles of their consumers. The product is of high quality they also try to improve their pricing strategy and distribution networks. Along with all these priorities they are able to generate annual profits (Wentzand Newbery, 2010).
Table of Contents
- Introduction
- Marketing Structure
- Marketing Strategy
- Target Market
- Positioning Strategy
- Brand Positioning Strategy
- Market Audit
- External Audit
- Internal Audit
- Nestle Nescafe are the pioneers in the soluble coffee
Objectives and Key Themes
This text aims to analyze the marketing strategies employed by Nescafe, a leading brand of instant coffee, to achieve and maintain a significant market share. The analysis explores the company's approach to target market selection, product positioning, and brand building within a competitive global market.
- Nescafe's marketing strategies for achieving and maintaining market share.
- The importance of quality and consumer satisfaction in Nescafe's marketing approach.
- Nescafe's target market selection and positioning strategies.
- The role of innovation and product development in Nescafe's success.
- Analysis of both internal and external factors influencing Nescafe's marketing.
Chapter Summaries
Introduction: This introductory chapter provides background information on Nescafe, highlighting its origins as a Nestle product and its significant market share in the instant coffee industry. It briefly touches upon the brand's evolution and its portmanteau name, "Nestle" and "café," resulting from years of development. The chapter sets the stage for a deeper dive into the company's marketing strategies.
Marketing Structure and Strategy: This section delves into the core principles of Nescafe's marketing approach. Unlike system-oriented strategies, Nescafe prioritizes a people and brand-oriented approach, focusing on consumer needs and lifestyles. The text emphasizes the importance of high-quality products, effective pricing, and robust distribution networks in achieving sustained annual profits. The chapter highlights Nescafe's commitment to consumer satisfaction and brand loyalty as key elements of its success.
Target Market: This chapter examines Nescafe's target market, primarily focusing on socio-economic classes who value high-quality products. While acknowledging the higher price point that limits accessibility for all consumers, the text outlines the strategy employed to select and target specific market segments. Key factors in this selection include quality perception, education levels, and income brackets. This section emphasizes the strategic approach to reach specific consumer demographics.
Positioning Strategy: The chapter details Nescafe's three-step positioning strategy: identifying, choosing, and effectively communicating the brand's unique competitive advantage to its target market. The strategy highlights Nescafe's belief in its product's unique attributes and benefits and the effective communication of this uniqueness. The section is pivotal in outlining Nescafe's approach to stand out in a crowded market.
Brand Positioning Strategy: This section elaborates on the specific elements of Nescafe's brand positioning, highlighting the composition of the product, its distinctive features, the importance of a health-conscious image, and the combination of taste and quality. These factors contribute to the overall brand image and consumer perception, crucial for differentiating Nescafe within the competitive market.
Market Audit (External Audit): This part assesses the external factors influencing Nescafe's market position. Opportunities are identified, including growth in fair trade hot drinks, the increasing demand for premium coffee, and expansion possibilities in Latin America, Eastern Europe, and Asia. Threats such as strong supplier bargaining power, intense competition, price wars, and potential cannibalization of existing products are also discussed. This balanced perspective provides a realistic view of the market landscape.
Market Audit (Internal Audit): This section focuses on Nescafe's internal strengths. These include a product range aligned with consumer preferences and responsive to market trends, a highly motivated and committed workforce, and the brand's pioneering role in the soluble coffee market. The text emphasizes Nescafe’s unique global and local brand strategy, which creates synergistic advantages. The chapter highlights the internal factors that contribute to Nescafe's competitive edge.
Nestle Nescafe are the pioneers in the soluble coffee: This chapter delves into the historical context of Nescafe's creation, tracing its origins to Nestle's response to the financial challenges of World War II. The introduction of Nescafe as a soluble coffee is presented as a key innovation that helped revive the company's profits and establish its dominance in the market. The chapter illustrates the significance of innovation in sustaining market leadership.
Keywords
Nescafe, Nestle, instant coffee, marketing strategy, market share, brand loyalty, consumer satisfaction, target market, product positioning, competitive advantage, innovation, soluble coffee, market audit, global brand, external factors, internal factors, quality, pricing, distribution.
Nescafe Marketing Strategy: A Comprehensive Analysis - FAQ
What is the purpose of this text?
This text provides a comprehensive analysis of Nescafe's marketing strategies, examining how the brand achieved and maintained a significant market share in the global instant coffee market. It explores various aspects, including target market selection, product positioning, brand building, and the influence of both internal and external factors.
What are the key themes explored in this analysis?
The key themes include Nescafe's marketing strategies for market share dominance, the role of quality and consumer satisfaction, target market selection and positioning, the importance of innovation and product development, and the analysis of internal and external factors impacting Nescafe's marketing efforts.
What topics are covered in the table of contents?
The table of contents includes an introduction, marketing structure and strategy, target market analysis, positioning strategies (both brand and overall), a market audit (divided into internal and external factors), and a section on Nescafe's pioneering role in the soluble coffee market.
What is Nescafe's approach to marketing structure and strategy?
Unlike system-oriented strategies, Nescafe prioritizes a people and brand-oriented approach, focusing on consumer needs and lifestyles. High-quality products, effective pricing, and robust distribution networks are highlighted as crucial for sustained profitability and consumer satisfaction and brand loyalty.
How does Nescafe define and target its market?
Nescafe primarily targets socio-economic classes who value high-quality products. The strategy considers factors like quality perception, education levels, and income brackets, while acknowledging the higher price point limits accessibility for all consumers.
What is Nescafe's positioning strategy?
Nescafe employs a three-step positioning strategy: identifying, choosing, and effectively communicating its unique competitive advantage to its target market. This involves highlighting the product's unique attributes and benefits and communicating this uniqueness effectively.
What are the key elements of Nescafe's brand positioning?
Nescafe's brand positioning emphasizes product composition, distinctive features, a health-conscious image, and the combination of taste and quality. These factors contribute to the overall brand image and consumer perception.
What external factors influence Nescafe's market position?
The external audit identifies opportunities such as growth in fair trade hot drinks, increasing demand for premium coffee, and expansion possibilities in various regions. Threats include strong supplier bargaining power, intense competition, price wars, and potential product cannibalization.
What are Nescafe's internal strengths?
Nescafe's internal audit highlights strengths such as a product range aligned with consumer preferences, a highly motivated workforce, and its pioneering role in the soluble coffee market. Its unique global and local brand strategy also creates synergistic advantages.
What is the significance of Nescafe's role as a pioneer in soluble coffee?
Nescafe's creation is linked to Nestle's response to World War II financial challenges. The introduction of soluble coffee was a key innovation that revived the company's profits and established its market dominance, highlighting the significance of innovation in sustaining market leadership.
What are the key words associated with this analysis?
Key words include Nescafe, Nestle, instant coffee, marketing strategy, market share, brand loyalty, consumer satisfaction, target market, product positioning, competitive advantage, innovation, soluble coffee, market audit, global brand, external factors, internal factors, quality, pricing, and distribution.
What are the chapter summaries included in this analysis?
The document provides detailed summaries for each chapter, outlining the key information and findings presented in each section, from the introduction to the analysis of Nescafe's pioneering role in the soluble coffee market.
- Quote paper
- Kelvin Cherry (Author), 2011, Nescafé. A Marketing analysis, Munich, GRIN Verlag, https://www.grin.com/document/271463
