Nescafe Instant Coffee Brand
Table of Contents
Executive Summary 1
1 Introduction 2
2 4P analysis 3
2.1 Product strategies 3
2.2 Place strategies 4
2.3 Pricing strategy 6
2.4 Promotion Strategy 8
2.4.1 Nescafe 8
2.4.2 Moccona vs Robert Timm 9
3 Recommendations 11
3.1 Improve Market Share Strategies 11
3.2 Competitive advantage 12
4 Conclusion 14
Reference List 15
Executive Summary
This report provides the marketing techniques of Australia instant coffee Market by Nescafé to stay competitive against industry giant subsidiaries --- Moccona, and local instant coffee --- Robert Timms. Based on the marketing mix strategy, this report provides the analysis and evaluation of 4P (Product, Place, Price,
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However, the cost of glass jar is higher than cardboard carton, making cost of Moccona production higher than Nescafé and Robert Timms.
Although Nescafé has a lot of different products to meet customer’s needs, Robert Timms has a very special product that both Nescafé and Moccona don’t have in their product line. The Coffee Bag series is Robert Timms’s special product, it is like a tea bag but with coffee, customer only needs to place the coffee bag in a cup, add boiling water and wait for three to four minutes, then, they can have a perfect cup of coffee (Robert Timm, 2014). This coffee bag series is very convenient for customers.
2.2 Place strategies
According to Kotler et al. (2009), the product should be putted on the place that customer can easily get. It is very important, because most of customer will choose the product they can find easily, customer do not like to waste time on seeking product, especially for males. Because of this, the place for products in market can even affect the sales of products. In Coles and Woolworth, Nescafé instant coffee has been put on the place that customer can easily find, they are always in the middle of the shelves. What is more, Nescafé instant coffee even has their own shelves in these markets for promotion, which can be seen in figure 1. This can attract customer’s attention very easily.
Figure 1: Brand location of Moccona and Nestle in Coles, Rundle Mall Figure 2:
The coffee served in Second Cup is also high quality and the drinks available strongly rival those in Starbucks. In the past decade there has been an explosive growth of 157% in the area of coffee shop market. Canadian coffee market share, new companies have limited to no space for growth in North America. Second Cup’s market share at the Canadian market is about 8%.Upon these facts and analysis there is an unlimited growth possibilities in the coffee market in Canada. There are different factors that do influence in the purchase of coffee from these outlets and the the way these coffees are priced. Customers are reluctant to get coffee from these outlets as the prices are too high than the coffees that could be made at home. There is a huge conflict between the pricing of coffees at these places and homemade ones. Coffee shops are determined to serve the best quality coffees which are been imported from South America and Africa, due to the rise in oil prices transportation charges have also been increased. And also due to different global climatic conditions the prices of these gourmet coffee beans have been increased.
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As stated above, we learned that Canadians were not only big time coffee drinkers, but they also enjoyed the specialty type of coffee that Biggby provides. According to the Five Tasks of Foreign Market Attractiveness Assessment, we were able to clearly deduce the strengths and weaknesses entering into the Canadian market. Using this, we first screened Canada’s readiness for foreign entry and decided Biggby had a large market potential due to the large coffee consumption and growth rate. Additionally, we evaluated the industry with Porter’s Five Forces and established our competitive advantages between our competitors and new entrants. Based off of these facts, we recommend that Biggby continues to use franchising because it allows the business to emerge themselves into the culture and uses the same business strategy that Biggby currently employs in the United States. Lastly, Biggby has a high sales potential in Canada because of their competitive advantages and industry growth rates. Therefore, we recommend that Biggby enters the Canadian market with a large selection of specialty coffee, green products, and through
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Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.
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In marketing strategy, Place means distribution of the products. There are the few different forms of distribution which Nestle has. They may sell the La Cremeria, Nestle directly to the end consumer as well as sell to other companies for resale. Nestle regularly introduces trade discounts and various tactics to keep this channel motivated. Nestlé Company is currently the largest food company in the world. The distributions of Nestle product to end consumers are as below: