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
1. Introduction
2. Marketing structure
2.1 Marketing strategy
3. Target market
4. The positioning strategy
5. Brand Positioning Strategy
6. Market Audit
6.1 External Audit
6.2 Internal Audit
7. Marketing Strategies
8. Recommendations
Objectives & Topics
The primary objective of this work is to analyze the marketing strategy of Nestlé's Nescafe, evaluating how the brand maintains its leadership in the instant coffee market through customer-oriented innovation and strategic positioning. The research investigates how Nescafe leverages its brand identity and quality commitment to sustain market share against both existing and potential competitors.
- Analysis of Nestlé’s marketing structure and strategy.
- Evaluation of target market selection and brand positioning.
- Execution of a comprehensive market audit (SWOT analysis).
- Assessment of the product life cycle and innovation impact.
- Strategic recommendations for future brand competitiveness.
Excerpt from the Book
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).
Nestle Nescafe has been able to satisfy its customers by providing them with products of good quality. This is given intense value. Nescafe seeks to have loyal customers for which they renovate and innovate their products. Nestle prefers to have increased flexibility in its business for which it has become decentralized. To gain the satisfaction of its customers it involves itself in improving its activities along with segmenting its market, targeting different group of customers and positioning. The market of coffee is intense around the world. Out of 73% of the instant coffee market nestle has been able to occupy around 72%. This shows the brand loyalty and their marketing strategy that Nescafe adopts around the world (Greff, 2010).
Chapter Summary
Introduction: Provides the historical background of Nescafe, detailing its origins as a result of years of research to create a soluble coffee product.
Marketing structure: Examines Nestlé's people-oriented marketing philosophy and its focus on consumer needs and high-quality distribution.
Target market: Explains how the company targets specific socio-economic classes based on quality realization, education, and income levels.
The positioning strategy: Outlines the three-step approach used by Nescafe to identify, choose, and select its competitive advantages.
Brand Positioning Strategy: Highlights the core pillars of the brand, including product composition and a commitment to consumer health.
Market Audit: Conducts an internal and external assessment of the brand, identifying key opportunities and threats in the global market.
Marketing Strategies: Discusses the global success of Nescafe and the continuous need for innovation to retain consumer loyalty.
Recommendations: Offers strategic advice on project management, customer service improvement, and maintaining brand identity through effective advertising.
Keywords
Nescafe, Nestlé, Marketing Strategy, Instant Coffee, Brand Positioning, Market Audit, Product Life Cycle, Consumer Satisfaction, Quality, Innovation, SWOT Analysis, Competitive Advantage, Market Segmentation, Customer Service, Global Marketing.
Frequently Asked Questions
What is the primary focus of this work?
This work provides an in-depth analysis of the marketing strategies employed by Nestlé for its Nescafe brand to maintain its dominant position in the global instant coffee market.
What are the core thematic areas covered?
The analysis covers marketing structure, target market segmentation, brand positioning, market audit (SWOT), and strategic recommendations for sustained growth.
What is the main objective of the research?
The primary goal is to evaluate how Nescafe uses product quality, innovation, and consumer-centric marketing to remain competitive and extend its product life cycle.
Which scientific methods are applied in this study?
The study utilizes secondary research, including SWOT analysis, Boston Matrix analysis, and an evaluation of product life cycles to assess market performance.
What does the main body of the document address?
The main body examines internal and external business environments, current marketing initiatives, and operational strengths and weaknesses of the Nescafe brand.
Which keywords characterize this paper?
Key terms include Nescafe, Marketing Strategy, Brand Positioning, Innovation, Competitive Advantage, and Market Audit.
How does Nestlé handle market saturation?
Nestlé focuses on continuous product innovation and quality improvement to avoid reaching the decline stage of the product life cycle, ensuring the brand remains relevant to consumers.
What role does customer service play in the marketing strategy?
Customer service is identified as a critical area for improvement; the author argues that better handling of complaints and feedback is essential for shaping future strategies.
Why did the author mention the launch of LC1 GO?
This example is used to illustrate the risks of entering already saturated markets where powerful competitors, such as Yakult, already hold a significant market share.
- Quote paper
- Kelvin Cherry (Author), 2011, Nescafé. A Marketing analysis, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/271463
