This document provides information about Nescafe, a coffee brand owned by Nestle. It discusses Nescafe's history, financial information, product portfolio, target markets, and marketing strategies. Some key points include: Nescafe is one of the top 35 most valuable brands globally, generating $11 billion annually for Nestle; it was created in 1938 and became popular in the 1950s; the brand has a wide range of coffee products and targets upper and middle class consumers ages 16-24.

1. Atta Ullah
University of Management and
Technology
Program:M.COM

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.

11. PERCEPTUAL POSITIONING
MAP
Convenience
PerceivedQuality

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.

14. 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-
target-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

15. THANK YOU