Nescafe: Marketing And Marketing Strategy: Nescafe

Almost everyone drinks coffee. Most people view it as part of their basic needs. It is normally the first to be consumed whenever a day starts. It is commonly believed that a cup of coffee makes someone brighter and so able to perform his or her duties actively. This is therefore my chosen product. The following sections describes the path the product takes from the producer to reach me as well as to another consumer in another country which will be Brazil in this case.

There are a number of significant competitive barriers within the coffee bean and coffee grind industry. While virtually any firm can purchase the raw materials or even the finished product in the form of ground coffee, the packaging and distribution of the product is a much more sophisticated endeavor. The most significant

Launched 30 years ago, Nespresso is a subsidiary of Nestlé and one of the worldwide leaders of coffee market. The brand became very famous thanks to the coffee maker based on capsules. More than a simple coffee, Nespresso managed to create litterally a “Nespresso experience” by its innovative concept.

Coffee drinkers all have one thing in common; they want their coffee made to their specification. Most soft drinks, milkshakes, and draft beer are ready made. Coffee has many flavors and that can be an operational nightmare. Starbucks has 10 different types of coffee beans, 12 blends of flavors and loads of special toppings.

Coffee beans vary from different countries to regions they can usually be characterized by their differences in aroma, acidity, body, and aroma. Coffee history embellishes the culture of not only one country but basically different cultures and histories worldwide. Coffee is both produced by small farmers and large plantations, one-thousand to three-thousands pounds of

According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.

The Nespresso was established in 1986 and it has been serving its esteemed customers ever since. Its story started with a very simple plan, that every person

Starbucks’ full control of the roasting process allows the company to ensure that the beans are roasted at a high quality. Consequently, Starbucks is able to offer a product that satisfies the demand for premium coffee. Moreover, the resulting difference in quality between Starbucks’ coffee and their competitors’ allows Starbucks to differentiate itself and gain market share.

A recent primary research survey has found that 70% of occasional coffee drinkers view the Mr. Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey).

can order and pay for their drinks in a flash while stacking up rewards for each purchase made. This Strategy has significantly drawn people to Starbucks due to its highly anticipated services, products, and marketing strategies that differ from most fast food restaurants. The next service is the Starbucks webpage where the customers can go onto the site and view product and also make purchases. This service is quite excellent for those that want to checkout items online through the site, because it incorporates a similar process as the application on your smartphone. Starbucks also incorporates equipment and drinkware to their massive line of products. First their Drinkware consists of cups and mugs that are affordable to the customers. These cups come in many colors and aesthetic values, which make people interested in purchasing. Starbucks had the right idea when they decided to manufacture these cups out to their customers because not only were they a huge success for the business, but it also made Starbucks distribute more merchandise. Cold cups, which were from stainless steel containers. These containers made a rise once the popularity rose for other merchandise. These containers were sold very often to customers and once again made a surprise since it was from the same line of cups and mugs category. As more popularity grew in their products so did the equipment used to make customers coffee. First Starbucks decided to manufacture coffee makers, presses, and expresso

However, Nescafe’s product involvement strategy goes even further; it wants consumers to experience the aesthetic perception of the nice packaging and hedonically enjoy various tastes and preparing options it offers (Montgomery, 2014). By carefully paying attention to the latest changes in consumer preferences, Nescafe was successful in making its consumers feel highly involved with its products. Due to its presence all over the world, the brand learned that acculturation is a much better strategy than global standardization. Thus, when it comes to Nescafe there is no global mass customization, but rather a regional-based mass customization. Nescafe has an almost aggressive worldwide strategy when it comes to consumers experiencing the product. The consumer is supposed to be able to consume Nescafe products everywhere, whenever possible and the way she/he wants to consume it. Nescafe is present in most of the Croatian bars/coffee shops in either coffee-to-go or in a regular consuming option . Nescafe is also present in most vending machines allowing the consumer to choose from various tastes and choices to satisfy her/his needs. All things

The question is what exactly goes into the process from cocoa beans in a field to a steaming cup of delicious coffee. Starbucks has created an amazing strategy of Supply Chain Management that spans across almost nineteen countries, that means cocoa beans can come from one country while milk could come from an entirely different nation hundreds of miles away. Through this global resource span Starbucks can expand the company and reach more countries than ever before. Starbucks also makes sure that they supply the best ingredients to their coffee drinkers for a lower price. All raw materials are sent to roasting manufacturing and packaging plants. Starbucks itself has six roasting manufactories, which seems very few for such a big company, but they are using a very effective centralized system.

To further develop, produce and market the Nespresso system, a separate company was created. The new business involved selling coffee, something Nestle were already the market leader. The company’s top management decided early on that the similarities between the two businesses were more illusory than real. Nestle were selling instant coffee to the mass market but Nespresso specifically targeted wealthy and young urban professionals, positioning itself as an upmarket brand. Nespresso adopted a business model more akin to a luxury goods manufacturer, not only were the two business models different, they potentially conflicted as Nespresso could be cannibalizing the sales of Nescafe, while the values and attitudes of the Nespresso organization were the exact opposite of those in the traditional Nestle organization.

A coffee industry is a growing market as recent studies show that the world coffee demand growth are considerable potential for more dramatic increases. ‘An initial estimate of world coffee consumption in calendar year 2014 comes to 149.3 million bags. This represents an average annual growth rate of 2.3% over the last 4 years. The strongest growth over this time has been found in emerging markets, averaging 4.6% since 2011, with particularly strong demand in Russia, South Korea, Algeria and Turkey’1 .Nespresso company is one of nestle group which is located in Switzerland. An employee of Nestle invented the Nespresso machine. The Nespresso Company manufactures both machines and the capsules they use, and makes most of its revenues from these capsules. Nespresso sells their pure coffee in capsules which has been

Although these beans will come at a premium price, it ensures high quality coffee that is economically exploitation free. All beverages will be available in medium or large size cups only.