2. 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.
3. 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.
4. 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.
5. BRAND DEVELOPEMNENT
Line Extension: Nescafe 3 in 1, Nescafe Irish
Latte, Cappuccino, Mocha.
Brand Extension: Café Nescafe, Nescafe
Gold Blend, UK Nescafe, Nescafe Cold
Coffee.
6. 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.
7. 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/-
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).
9. 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.
10. POSITIONING STATEMENT
To middle and upper class people for their our Nescafe is
coffee that helps you feel good and refreshed.
12. 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.
13. 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.
