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Marketing Strategy of NESCAFÉ
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Submitted to
Tilka Farzana
Lecturer
Department of Marketing and Internal Business
North South University
Submitted by
Group Number 07
Serial
No
Name
ID
03
Md Tanzimul Sahad
1621058630
09
Omar Hasan Rehan
1912300630
10
Safwan Shams
1912434630
12
Nasif Islam Abir
1931571630
16
M Rahik Roadh Chowdhury
2031062630
42
Md Sadman Sakib
2112364630
Letter of Transmittal
5th September, 2021
Tilka Farzana
Lecturer, School of Business & Economics,
North South University,
Bashundhara R/A, Dhaka.
Subject: Submission of the group project for principle of marketing.
Ma’am,
we
are
pleased
to
apply
the
attached
Group
Project
on
"Marketing
Principles" as part of the MKT 202 course requirements. We actually provided a rundown of
our experience that we had learned from this course in this Group Project. We put in our best
effort in preparing this report by gathering all relevant data. We have included adequate
explanations
in
order
to
make
this
report
more
vivid
and
instructive.
Making this report was a fantastic experience for us. We are indebted to you for assisting us
in improving our report writing skills. We will be available by any means if further
clarification on this report is needed. If you have any questions or encounter any issues with
this report, we would appreciate any advice you might provide. Thank you, ma'am, for giving
us this chance and for believing in us.
Sincerely Yours,
Md Tanzimul Sahad
Omor Hasan Rehan
Safwan Shams
Nasif Islam Abir
M Rahik Roadh Chowdhury
Md Sadman Sakib
Acknowledgement
By the cordial mercy of Almighty, we were able to submit my research paper to our honorable
lecturer Ms. Tilka Farzana. We strongly believe that it would not be possible preparing such
research without Almighty’s grace. Now we would like to thank our honorable lecturer Ms. Tilka
Farzana, for her keen efforts and invaluable, guidance helped us to understand the complicated
issues related with this report and also its technicalities and about the importance, it bears
everywhere in Bangladesh and in the world, which facilitated the successful completion of the
research.
Executive Summary
This report has been prepared about developing a consumer driven market strategy for Nescafé as
a requirement of the course “Introduction to Marketing”, and the motive of preparing the report is
preparing a consumer driven market strategy for Nescafé Coffee. Initially, we have started our
discussion with a brief introduction consists of the essential information for the company. After
that, we have discussed about the vision, mission, goal, purpose, and objective of Nescafé. Then
we have focused into the different strategies like marketing mix strategies, promotional strategies,
product life cycles, STP strategies, product life cycle etc. We also talked about different factors
which is related with the growth of Nescafe and market survival. We have done different analysis
like marketing environment analysis, BGC matrix, and SWOT analysis. We have gained a lot of
knowledge in this project and learnt a lot of thinks which helped us to understanding marketing
for different angles. We have done research by reading a lot of journals and papers about Nescafé
and nestle. We have also discussed the history of Nescafé, the offerings of Nescafe, the ethical
aspects of Nescafé, and we have suggested some strategies to improve their marketing strategies.
Table of Contents
1. Company Background ……………………………………………………………01
2. Vision, Mission, Goal …………………………………………………………….02
3. Marketing Mix…………………………………………………………………….03
4. Major Branding Strategies ………………………………………………………..05
5. Pricing Strategies………………………………………………………………….07
6. Product Mix Pricing Strategies…………………………………….……………...08
7. Marketing Channels………………………………………………….…………....11
8. Promotional Strategies…………………………………………….……………....13
9. Segmentation, Targeting, Positioning ……………………………...….……….....21
10. BCG Metrix …………………………………………………………….…….…...35
11. SWOT Analysis ………………………………………………………….…..…...37
12. Product Life Cycle …………………………………………………………..…....38
13. Recommendations ……………………………………………………….....….....39
14. Conclusion………………………………………………………….……….….....41
15. References …………………………………………………………….………….43
16. Appendix……………………………………………………………….………....45
Company Background
The beginning of Nescafe started Brazil in 1930, the motivation for making Nescafe was intended
for innovativeness and reasonable turn of events. They at first began with delivering solvent coffee
based on Nestle's draining mastery, to help Brazilian ranchers from crop squander. Dr.Max was
quick to deliver a moment espresso named Nescafe after seven years of advancement. In the first
place, Dr. Max found that espresso tastes great when it is uncovered though temperatures and
saved in improved milk espresso. Eventually, He finished up that coffee tastes better when
espresso is made insoluble with enough starches.
Nescafe was formally settled by scientist Dr. Max Morgenthaler's. The Drink was dispatched into
the customer market in April 1938. The circulation of this dissolvable espresso item started to
spread across various locales of the world, to nations like France, the Joined Kingdom and the US.
Nescafe's fame started to top during the 1950s. US safeguard powers depended on it during the
subsequent universal conflict.
Today customers all around the world appreciate Nescafé Coffee in different arrangements in
consistency, taste, smell, accommodation, and regular goodness. Right now, 5,500 cups of
NESCAFÉ prompt coffee are eaten each second, taking into account different preferences and
inclinations all through the world. Over 75 years of incredible legacy are loaded with each cup.
1
Vision
We imagine Nestle's Nescafe to turn into the market chief in Bangladesh, clearing out all rivals as
far as value, taste and quality and make the item effectively open to all individuals.
Mission
Our main goal is to offer quality solvent coffee, at moderate costs to the working-class peoples
around us to empower them, open their brains and empower them to come to their potential.
Goal
Creating Shared Value (CSV) is planned against the United Nations 2030 Agenda for Sustainable
Development. We assisted with forming the 17 Sustainable Development Goals (SDGs), and
presently we are endeavoring to accomplish them.
2
Marketing Mix
Levels of Product
Core benefit: Beverage- Nescafe Coffee which is prepared from selected coffee beans, with a best
Price.
Actual Product: Nescafe offers best Coffee with different kinds of flavor like Nescafé instant
coffee, Nescafe classic, cappuccino, espresso, gold with different types of flavors, they offer
different types of packaging to appeal the consumers.
3
Actual Product of Nescafe
Augmented Product: As Nescafe is a coffee brand and there is a very small area of after sales
service, they provide some email address and phone number for any query and suggestion of
consumer, if consumer feels there needs something to change, they can consult with Nescafé.
There are some levels of a product where each and every level adds some value of product or
service for the consumer.
Nescafe is basically fall under the category of convenience product. The characteristics of
convenience products are,
• Convenience product are purchases frequently with a minimal effort of buying, and
people don’t compare or think, people purchase coffee from nearest grocery or super
shop with a little comparison as well as a little bit of the effort. International of the rest and fuc456
• Pricing is another factor, where price of convenience product is not high. People can
purchase 1.5gm Nescafe with 5 taka, also there are a lot of products for different
consumers and premium coffee for the coffee lover. So, we can say Nescafe is convenient
forall.
• Nescafe has a countrywide distribution and people who lives in village also can
purchases
Nescafé
from
their
nearest
village
market
as
well.
• Nescafe also follows mass promotion strategy. We can see Nescafé TVC at television
often, also Nescafé publishes print in different daily newspapers and magazine. We can
find
billboard
of
Nescafé
on
the
streets
as
well.
So, from the discussions of above we can say that Nescafé is falls under the Convenient product
and it is a convenient product
4
Major Branding Strategies of Nescafe
Nescafe’s brand positioning strategies are based on the benefit of the product and the quality as
well as the right product to the right person in a justified price as well. Nescafe believe that Nescafé
is the partner of their consumer from morning to night till sleep. Nescafe loves to engage with their
consumers to understand the culture of the consumer, so that Nescafé can understand their culture
and able to come closer of the consumer,
Choosing the brand name: Nescafe has introduced themselves as Nescafe Cholo Shobai, means
Nescafé promotes social vibes which people loves very much. The name is unique, one part of
name comes from the mother company nestle and another is from coffee, it’s basically Nescafé.
But, due to extreme popularity, Nescafé creates a perception that, Coffee means Nescafe.
Brand Sponsorship: The coffee is related with the Nestle brand, which is known worldwide by
individuals for its great quality items. This brand sponsorship draws in a bigger client base, volume
5
of deals increments and there will be an increment in openness and mindfulness. This will assist
with legitimizing the brand and its item. Settle will put away more cash into its espresso item and
support occasions to leave an enduring effect on clients
Brand Development: We should foster our image to recognize it from clients. Our spotlight will
for the most part be on line expansion. Our coffee item, will accompany in different flavors and it
will come in various structures, for example, in containers and sachets.
6
Pricing Strategy of Nescafe
As Nescafe is a massive coffee manufacture around the world, it uses different pricing strategy
with different types of products.
Value Added Pricing: Value added pricing refers to added value to differentiate the offered
products and charging the price for the product. Nescafe three in one is a bit expensive compared
to any other Nescafé kit. Besides, consumers are love to buy it. The three in one pack is pretty
much popular among younger youth, since its very easy tom prepare and creates value to drink by
a mixture of a cobinaion of milk, sugar, and classic nescafe.
Cost Based Pricing: Cost based pricing indicates setting a price based on the costs of the goods
need to prepare the finished goods, and other cost like freight cost, storage cost etc. Nescafe cant
sell coffee in very much higher price than the overall costs of production and other cost related
with it. But sometimes the price goes higher because a lot of things needs to import from foreign
country.
Factors Related to Pricing
External Factors: Social trends, change packaging of the coffee jar and coffee pack, and
the design, introducing a premium type of coffee under Nescafe, and it just like that some people
are willing to pay some more for a better teste of coffee. Inflation also affects pricing sometimes.
Internal Factor: The annual budget of the company, the cost of production, the amount cost needs
to run the official stuff of the company, the cost of training of employees, research and
development cost, promotional costs, all are the internal factors of pricing.
7
Product Mix Pricing Strategies of Nescafe
Product Mix pricing strategies are basically setting a price step between different kinds of product
based on the difference of cost between the products, consumers thoughts of feature in the product
and the price of the competitors. Nescafe has a massive range of expresso product. The different
pricing strategies followed by Nescafe are:
Product Line Pricing: Nescafe offers different kinds of coffee product. They prepare coffee for
different types of consumers. Nescafe sells their instant minipack coffee at a very reasonable price
for the consumer who want to drink coffee for one time within very low cost. Nescafe. Nescafe
offer Nescafe Classic for the consumer loves to drink classic tea. Nescafe offers Nescafe 3 in 1
coffee which comes with a composition of coffee, milk, sugar and it can be made very easily in a
short time. Nescafe has also Nescafe Gold for premium coffee lovers and the price of gold coffee
is higher. They also offer Latte, Cappuccino, Barista Style coffee and much more. These coffees
are very high priced and prepared for the ultimate coffee enthusiasts and coffee lovers.
Optional Product Pricing: Nescafe offers various optional product which are related to their main
product. Nescafe offers Nescafe mug which is an optional product. Nescafe also product different
coffee cup. Nescafe offers a insulated coffee glass which can keep the coffee warm for a longer
period of time. The milk frothier is a product which can provide feeling as a professional barista.
From cappuccinos to lattes, shopper can intrigue visitors or enjoy the ideal mug of espresso by
foaming milk and adding it to their #1 NESCAFÉ coffee. Nescafe offers various optional product
like mug warmer. Iced coffee maker, portable coffee hub holder which is easily to hold coffee in
a suitcase, and they provide different coffee travel accessories.
8
Captive Product Pricing: Nescafé provides coffee machine to make coffee perfectly which is
basically a captive product. Nescafe provides coffee in commercial places like coffee shop,
restaurants etc. The price of machine is comparatively average, but it has the best setting to make
coffee from Nescafé product.
Product Bundle Pricing: This methodology means to bunch results of Nescafe that are
indistinguishable and sell them at a sensible cost for our fragment, which is individuals of the
working people. In Nescafe's espresso item group, we will incorporate the most mainstream items
with the most un-well-known item. At last, this will help the volume of deals and dispose of
undesirable stock. There will be markdown offers for clients, through innovative work we will
discover seasons, for example, winter where more individuals drink espresso to remain warm. We
will offer 20% limits on all Nescafe espresso items during that month. This will be useful as
individuals will require warm espresso like this and buy espresso. This pack and markdown offer
will just run occasionally. In the event that the limits were run throughout the entire year, nobody
would purchase Nescafe espresso at its unique price.
Strategy of pricing specially for Bangladesh:
Nescafe follows segmented pricing strategy in Bangladesh. Each products have different pricing
with respect to the consumer segment of that item. Nescafe coffee jar, Nescafe “Bondhu” Classic
sheet, three in one coffee follows a package pricing. Nescafe Coffee -Mate, 200-gram pollow
pouch and other item follows a premium pricing.
Competitive strategy of Nescafe:
Nestlé’s competitive strategies in the dairy and food areas are generally subject to foreign
direct investment. Nestlé needs to adjust income between less risky, low growth, and low9
development developed world markets and high-hazard, conceivably high-development
African and Latin American business sectors.
10
Marketing Channels/Place
The hidden truth of the success of Nescafe is the efficient and exclusive distribution channel of
Nescafé. The mother company Nestle has made a separate and dedicate distribution network for
Nescafe product, which is attached with every necessary facility to transport. Nescafe deliver their
coffee at their all-regional sales hub, which are one hub for a large area like one hub for Dhaka
North City Corporation. The hub has their special transportation to bring coffee from head office
and distributing nearest areas. They deliver their items in local shops, super market, super shops
etc.
Nescafe produces coffee or imports row coffee from abroad. Then its sends to the manufacturing
unit for process and packaging, after that it goes to the distributors bucket. Nescafe has a different
distributor for different area. The distributors are accountable to deliver Nescafé to the re
distributor.
Re distributors are the parties who takes products from the distributor and takes the responsibility
to deliver the product the wholesale of a small area, like two or three thanas. Re distributor supplies
the products to the wholesaler. whole seller purchases bulk amount of Nescafé at a low price, and
he sells the bulk quantity to the retailers or superstores.
Retailers and superstores are the point where customer comes to purchase Nescafé and retailer and
superstore sells coffee according to consumers choice.
Nescafe has a dedicated supply chain research team who always work to make supply efficient.
Nescafe also sells their product.
11
Manufacturing
Plant
Agent To Forward and Carry
Super Stockist
Cash Distributor
Re - Distributor
Retailer
Retailor
Wholesale
r
Wholesaler
Figure: Distribution Channel of Nestle
12
Promotional Strategies
Another key to success of Nescafé is its promotions. Nescafe had already an essential part of life
of working people because those people need something strong to energize within some moments
in a hassle freeway. The main target consumers are 20-50 years old, in addition, the marketing
promotion objective of Nescafe is creating brand awareness. In order to achieve this, Nescafé
follows integrated marketing communication to promote their product efficiently and effectively.
Nescafé uses various promotional way like billboards, TVC etc. Nescafe has provided billboard in
areas where all classes and types of people comes, such as bus station, side of flyovers, near school
and colleges and the busy office areas were youth visits randomly. Through the billboard,
consumers subconscious mind aware that there is Nescafe to remove the clumsiness and tiredness
with a great refreshment. For promotion media, Nescafe uses Facebook, twitter, Instagram, and
other social media platform. They have promotions, showing how their Nescafé assist with
invigorating you in a exhausting workplace, the promotion follows a cut of life claim. It shows
how the coffee tackles the work life issues of common individuals by arousing them up and making
them efficient in the work place.
13
Promotion Mix strategies includes:
Direct Marketing:
Nescafe shares their promotional offers and various discounts by mail as well as phone message.
For creating personal connections, with their clients, they use phone and emails.Through these two
methods for correspondence, they attempt to convey special data and get significant client criticism
through which they can work on their item as far as taste, bundling and quality. There will be
coupons connected to sends during explicit seasons to expand momentary deals. It will expand
client relationship and make a significant and strong brand image.
14
Sales Promotion:
Nescafe provides a lot of discounts and free gifts sometimes. At winter season, people consume
coffee to stay warm, so Nescafé provides discounts on that time so that people choses their brand
over the other brand. Nescafe sometimes provides free sample of their new coffee product so that
people can teste in and agree to purchase it. Nescafe sometimes give extra amount of coffee to
attract consumer, sometimes they provide mug, t shirts etc.
Public Relation:
15
Nescafe does public relation by sponsorship, concerts, events, new features etc.
Personal Selling:
The most effective tool for persuading customers to change their minds, beliefs, and habits.
Buyers prefer to pay closer attention, and personal selling appeals to them more. As a result,
comments and adjustments are possible. Nestle's personal selling method builds goodwill for the
corporation as well as its goods. It also had a good impact on the Nestle product's performance.
Transit Marketing:
Nescafe sometime provides their add in buses, and vans, which spreads visibility and it is a very
effective tool to recognize the brand. It also helps people to reminder about the brand.
16
Hashtag Marketing:
• Nescafe Prepares appealing hashtags pertinent to their service and start utilizing them to connect
with your intended interest group.
• With the assistance of this, clients are urged to take an interest in friendly conversations,
permitting them to bring their image's profile up in the public eye.
Content Marketing:
17
Nescafe makes great video content with inventive thoughts and post it to a YouTube channel and
a Facebook page to draw in however many clients as could be allowed. eye.
Celebrity Endorsement:
Endorsing a big name or notable figure in the business assists the organization with raising brand
mindfulness. Nescafe advances items by supporting mainstream VIPs and notable countenances
all through the country.
18
Word of Mouth:
Inspiring customers to speak unexpectedly about Nescafé coffee and other items among
companions and associates and increment item preliminaries.
4’C of Nescafe
19
Consumer’s needs and wants:
The objective with Nescafe is through directing overviews we will discover out what customers
need a lot from our item and thinking about that. Nescafe will furnish clients with the most ideal
espresso. Fresher sizes, flavors will be presented. The items worth to the client will increment.
Through studies in the event that there are sure things individuals don't care for about the item, it
can be developed.
Cost:
According to current target market profiles, the cost is about to give up small amount of money
for obtaining a better quality of coffee.
Convenience:
The item can be found in all nearby and departmental stores along with Nescafe stalls explicitly
configuration to achieve clients. It is advantageous for clients to get the item by strolling not many
squares or just by going to office cafeteria.
Communication:
In order to inform consumers about promotional offers, campaigns, new products, email as well
as Facebook marketing is also used by Nescafé to encourage individuals to teste new coffee.
Nescafe will always take feedbacks and comments from consumers to continue improvement and
R&D jobs.
Basically, they utilize both marketing and societal marketing standards. They use marketing
strategies like advancements and promotions and ads. Nescafé places a solid spotlight on item
advertising in an assortment of arrangements. They guarantee that shoppers approach all accessible
data about the items
20
MARKET SEGMENTATION
Market Segmentation refers to dividing a market between different groups with exclusive
characteristics, or requirements, or behavior, for which marketer follows different marketing
strategies of approaches. Another way we can say that market segmentation is basically categorize
some customer in a different group based on different variable like geographic or demographic or
other variables. Nestle initially targeted early riser people for their Nescafe, and later they shifted
their target and focus on young people like college or university going students, or new job holder.
Nescafe has launched a thirty million global campaign which is targeted at a group of people whose
age is between 16-24, according to Mr. Andrew Ward, Global account director of Nestle Nescafe.
Nescafe basically targeted a broad range of customer who loves instant coffee. They are the pioneer
of instant coffee industry around the world. Nescafe has splinted their challenges or competition
into four different segments. These segments are:
21
Geographic Segmentation:
• Nestle has divided the country on two division which is southern division and northern division
•The consumer in the northern division prefers instant coffee
•The Southern division prefers hard coffee, and roasted varieties.
➢ Segmentation based on rural area: Nestle has divided cities into different sub categories
based on city size as well as population. City is the most important because cities are more
populated, and people of city consumes coffee from morning to night.
➢Rural/Sub urban area: Nescafe offers different types of coffee into different segments. Here,
they usually sell Nescafe instant minipack coffee, as minipack coffee is affordable for all income
group, people consume coffee here.
➢Density: Nescafe is now targeting metropolitan consumers, and trying to grab this also.
attributable to restricted assets, the organization feels that redirecting assets to provincial regions
won't be cost-effective at all.
22
Demographic Segmentation:
Demographic segmentation is the most common and effective way for dividing consumer into
segment. Consumer’s choice, expectation, liking and disliking, consumption pattern are usually
are the variable that demographic segmentation focuses. Demographic segments make a
segmentation easy, because this segmentation is based on the most common groups. Every big and
successful company usually focuses this segment. Nestle has done a fantastic job by dividing their
segments into their market based on demographic variables. Every age group, region, income,
education has been segmented into this groups. Their different demographic criteria’s are:
➢ Age: Nescafe targets people of late teens to forties into two different segments, where they
their research says that from 18 years old to 30 years old people in Bangladesh is going to be their
potential coffee consumers for a long period, so Nescafe tries to grab these people. All promotional
campaign of Nescafe focuses the young people.
➢ Café Culture Segment: Nescafe attracts the consumer with visual appealing and interesting
promotion like tv commercials, print advertisements, sales promotion, and competition to win
23
different lounge featured in advertising. In early 2000’s Nescafe introduced an add “Cholo
Shobai” which introduced us with cafe culture mostly,
➢ Income: Nescafe has made its segment by looking the income levels of people. Nescafe is
affordable compared to other coffee brand, it is also accessible to everyone of different socioeconomic level.
➢ Posh Consumer Segment: The Nescafe Gold series with delicious flavor like Alta Rice, are
made for the consumer wants a high-quality coffee then the normal coffee, and they are ready to
provide extra money for exotic flavors.
Psychographic Segmentation:
➢ Social Class: Espresso Coffee is a beverage held for society's high class. Thus, Nescafe obliges
society's high class
➢ Customers in the medium income segment: This crowd is obliged by Nescafe's Blend 43,
Mild Roast, and Espresso items. The customer receives benefits by a minimal expense benefit and
a top-notch drink.
24
➢ Lifestyle: Coffee intake is an indication of a wealthy as well as affluent lifestyle to some
individuals. Nescafe consumers or potential consumers are symbol of living an active life, that
why Nescafe has been made its instant beverage product line.
➢ Personality: Nescafe has created it brand personality which presents its consumers. Nescafe’s
personality traits is a mix-up of confident, success, energetic, hard-working, career oriented,
optimistic, dynamic, and full of positive vibes.
Behavioral Segmentation:
➢ Benefits: Nescafe classified it users by different theme. It says that Nescafe removes the
monotonous pressure of life and makes people refresh within a moment by drinking this awesome
drink. It says “Nescafe is for those people who wants to begin their day with a positive vibe.”
25
➢ User Status: There are different status based on consumption of coffee drinker non user, first
time user, occasional user, regular drinkers. It wants to grab the heavy and medium user
segments.
➢ Usage Rate: Here Nestle has divided market by categorizing by usage rate. There are heavy
coffee drinker, moderate coffee drinker, medium coffee drinker, light coffee drinker. Nescafe
tries to grab the heavy, moderate and medium segments.
➢ Purchase Times: Nescafe promotes its coffee to make it suitable in every occasions, which
basically includes lunch, dinner, night, special day like valentines day, friendship day etc.
26
Requirements for effective segmentation in Nescafe
Segmentation is a way to deliver the right product to the right person, and it’s a key to make
company profitable and success. A company should evaluate of their consumer segments carefully,
company should fulfil some necessary criteria to develop a efficient market segmentation. The
main requirements to choose segment effectively are:
•
Measurable: Nescafe has selected the market of important cities like Dhaka, Rajshahi,
Sylhet, Khulna, Chittagong. Their principal target is young adults and people of working
class, and the targets are miserable. Nescafe prepares there items at a cheap price as well
as they ensures availability for consumer even if the guy who earns 10 thousand taka can
afford it. Apart from focusing on the middle-class people Nescafe offers gold series and
various premium products for people of higher class.
•
Accessible: Currently, Nescafe is most accessible and available coffee item in our country.
The most efficient marketing channel has made it possible. It has also open small shops in
the busy areas in the city like shopping mall, office, universities, airport and many more
significant places.
•
Substantial: Nescafe offers enormous potential for Bangladesh's expanding economy and
growth. Because we are a developing country at present, and there are several market
prospects to pursue. Nescafe's excellent image has helped the company not only retain
but also recruit a large number of new customers in the long run.
•
Actionable: Nescafe has a high resourceful company in order to made an excellent
business in Bangladesh. The extensive promotion of Nescafe as well as reputation is
designed efficiently in order to attract and gain all segments which they have chosen.
27
Evaluating and Selecting Market Segments
There are three major factor which plays important role in selecting the market segments which
are given below,
•
Segment Size and Growth:
Nescafe serves different segments differently. In geographic segments, Nescafe basically
promotes in massive cities and other highly populated area. In other cities, huge individuals
stay there, and the number of people are growing up rapidly because these city has a great
potential. In demographics segment, Nescafe different variables like age, income, culture
etc. Their main target is people whose age is above 18 to 35. According to most recent
data, twenty three percent of the population is falls under in this segments, and forty percent
of service-holder is working in service-based companies. So, adding all of these, Nestle
Nescafe has a potential growth opportunity in Bangladesh. Nescafe also offers premium
coffee products in people who loves luxurious and premium coffee. Nescafe also sells
many different products to meet the requirement of psychophysical and behavioral
segments.
•
Segment Structural Attractiveness:
The reputation of Nescafe is so good for their quality products Nescafe is currently the
most popular coffee seller in Bangladesh. Nescafe has a lot of loyal consumers in different
segments that that consumer only believes in Nescafe products. Nescafe always try to meet
the actual demand of consumer for every segments. The availability and consumer centric
attitudes have made its sales in a good position even more then the expectation of company.
•
Company Objective and Resources:
Nescafe is famous coffee suppliers around the globe, which supplies coffee 180 countries
around the globe. Each year Nescafe arranges farmer training program in order to approach
more sustainable coffee and promoting the going green concept, which is a great initiative
for our environment. In the near future, these initiatives will ensure enough resources to
Nestle so that they can produce coffee more and they can remain the supply chain active.
28
Target market of Nescafe
Market targeting is basically a process through a company chooses a group of people or segments
whom they want to serve, and promotes product to that group. It’s the most important issue to
promote a product to choose the correct consumer groups or segments. Company then promotes
product the most convenient communication medium.
Specially, the initial goal of consumer marketing is offering a brand more efficiently. When the
company understand which consumer, the company can attract and the motivation that drives them
to buy, then the company will be able to design a better promotional strategy which can perfectly
convey the information of the company or brand. It helps to increase sales which means more
income of the company. Coffee lovers, specifically who are looking for alternative to high priced
coffee, are Nescafe’s basic target segment. The individual who wans to consumer coffee in their
residence without complex coffee making process can have its instant coffee very easily, because
its easy to prepare. Traveler’s also keeps Nescafe in their bag and drink in there way by mixing
with worm water form flask. The target age of the 17 to 20, which Nescafé finds the optimal age
for coffee drinking, the target can be achievable to Nescafe because if they becomes Nescafe loyal
consumer, the company will sell coffee for a huge period.
In addition to traditional flavors (regular cream medium, intense) and canned lattes and mochas,
Nescafe has flavors targeted all over the world. Nestlé is the world's leading confectionery, vitamin
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and food company. Nescafe Coffee is a well-known brand in the industry and is available in a
variety of formats and flavors, such as Nescafe Coffee. Bloomberg Business Week called it one of
the top 100 brands in the world (top 100 brands in 2008). The service is currently available in 32
countries, including France, China, Canada, Pakistan, India, UK, USA, Bangladesh and others.
Nestle captured various market segments based on the growth of market, size of consumer base,
structural competition, the priorities and resources of Netsle Consumer Limited and thought to a
great expansion within the region. Nestle has already grabbed a particular and consumer specific
choice, expectation and the preference.
As consumer is segmented, the company doesn’t follow mass marketing at all. Though their
promotional activities sometimes seem like the follow mass marketing, but actual Nescafe
exclusively follows market segmentation. Their main target segments are people from 18 to 35
and so on. The confuses consumer whether they are differentiated or not because if consumer think
Nescafe is fully differentiated, they may think whether its suit for them or not, and they may reduce
consumption of coffee and other items. Nescafe is successful differentiated marketing approach.
Nescafe divides the products for different segment for different time and moments also. Some of
their differentiated products are
Nescafe three in one: Coffee for passing out leisure time or waiting for someone with a coffee in
hand.
Nesquick / Koko Krunch: Coffee with chocolate flavor, for chocolate lovers.
Nescafe Ice: Cold Coffee which is refreshing on warm area, helps to feel relax on warm weather.
Concentrated Marketing
Nescafe also follows concentrated marketing in order to servers the specific needs of consumers
and makes loyal consumers. Nestle has filled its niches and has a good reputation in food market.
Nestle focuses baby food, they sell milk powder which provides lactogen 1 for kids under 7-month30
old and Lactogen 3 for kids who are under 1 years. The fills the baby should introduce Nestle from
the birth and becomes nestles family member means consumer.
Micro Marketing
Micromarketing is the act of fitting merchandise and promoting to the specific requirements and
wants of explicit people and nearby purchaser segments; it includes both local and individual
advertising. Micromarketing can be isolated into two classes. Loca marketing promoting and
Individual Marketing promoting are the two kinds of showcasing. For a major organization like
Nescafe, local marketing doesn't works at all. They avertiese their item as near individuals as
conceivable yet for a major organization nearby advertising doesn't work. For an coffee providing
and delivering organization Nescafe, doesn't do individual marketing.
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Market positioning of Nescafe
Market positioning is the process creating a brand image to the minds of the people. A good
positioning can make a product massive success and can give a positive vibe to the brands as well
as company, it also makes a positive impact on other products of the company. A bad brand
positioning can cause low sales and can also hampers the image of main company. Market
positioning is consisting of various variables, with entire organization promised to the challenges
and consumers can collaborate to better position of their brand items. In order to make a good
positioning, the company must understand how consumers see their product that what is the
perception towards the product and company.
There are some researches said that there are only 1% people drinks coffee every day, 9% of the
coffee consumers are teenagers and 40 people drink both tea and coffee. For the massive promotion
of Nescafe, the tea community can be converted to coffee near future. It clearly refers that younger
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generation is making a affection for coffee and here the indication of transitioning from tea to
coffee.
Nescafe was picked by almost 92% of those surveyed when it came to coffee. Both the
organization's item and the merchants were incorporated. Valentino is the solitary other brand that
has had an effect. Valentino's market presence is because of the way that it is sold by candy
machines, not in light of its taste or prevalence. Nescafe supports different brands or merchants to
advance espresso since it can just assist with extending the rising espresso market.
1 cup coffee= 1 cup feeling with Nescafe. Everybody is known with the brands different
personalities like passing love between two people red cups, happiness, colleagues, and so on. This
is all because of Nescafe’s strategy. Now, when we think of coffee cup, our mind remembers a red
cup where Nescafe’s name in the middle. The red Nescafe mug is famous still now.
Another famous image that associates the Brand Nescafe with sharing bliss is the Red Nescafe
mug. Besides, Nescafe Classic is advertised as a "100% Pure Instant coffee." "A genuine Café" is
the situating of Nescafe Cappuccino.
The positioning statement of Nescafe:
“Nescafe is a cutting-edge, high-quality brand that provides me with a satisfying coffee
experience every time, everywhere.”
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Selecting a Marketing Coverage Strategy
Product Variability: Nescafe sells different coffee items such as Nescafe regular, nes tea, Nescafe
gold Choco mocha coffee mix, Nescafe creamy latte, Nescafe gold cappuccino coffee mix,
Nescafe gold jar, Nescafe Di café coffee, Nescafe classic stabile pouch, Nescafe Ipoh original
white coffee, Nescafe travel kit, Nescafe gold Blend rich and smooth coffee powder.
Nescafe has numerous items appropriate for everybody's interest and demand. The gold series
items are costly than normal moment coffee containers, since this series is uniquely for posh
individuals to fulfill their guidelines. As of late Nescafe presented their smooth latte sachet, which
brings another degree of flavor their items. Once more, for wellbeing cognizant individuals, they
have deacafe coffee, which has lower level of caffeine than different ones. Settle has an assortment
of items to meet each fragment of market and individual buyers.
Product Life Cycle Stage:
Nescafe is in the matured phase of item cycle. Everybody is mindful of this coffee supply monster,
Nescafe. Nescafe's items are experienced as well as they are continually acquainting new item
requests with stay aware of the requirements of market. While making the promoting techniques
Nescafe doesn't need to stress a lot over their item life cycle since they previously fabricated a
practical market for themselves.
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BCG Metrix
Nescafe is a product of Nestle Limited. We are representing the BCG MATRIX of Nescafe,
Star: Stars are those products which market growth and share both are high. For Nestle, our chosen
item Nescafe and Ceralac falls under Stars section.
Question Marks: Here, Nescafe Decaf, Nestle Nestum, Smarties, Nesquik lies in the question
marks section. Question mark demonstrates low piece of the pie and high market development.
They don't have the thought or information in regards to what to and how to look for promising
circumstances and furthermore needs with the choice with if to build speculation.
Cash Cows: Cash cows are basically the product having high market share with minimum market
growth. Maggi noodles, KitKat Chocolates are falls under cash cow.
35
Dogs: Dogs are product which have low market share and low market growth. Dog product doesn’t
give that much profit. For nestle, NESTEA, Milky bar falls under this category.
36
SWOT Analysis for Nescafe
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a business environment analysis tool which is used to examine and
evaluate an organization's market position and to foster key arranging. SWOT anslysis surveys both of external(outside) as well as
internal(Inside) factors, to understand current and future potential.
37
Product Life Cycle (PLC)
The product Life cycle refers to the activity of an item from first release on the market to remove
or eradicate of the product from the market. Today’s market is very competitive and its very tough
to stay in the market for a longer period. Product life cycle is critical for the organization to evaluate
which item could give benefit to the organization and which item should be taken out to satisfy
market need. There are four phases that are associated with the item life cycle experiment which
are introduction, growth, maturity, and decline.
Introduction Stage: The idea of instant coffee emerged from the need to figure out how to
effectively market the commercialize the huge volume of coffee which was cultivated in Brazil
back in 1930. It isn't so much that that there was no interest for coffee itself, yet the off-the-rack
brands accessible during the time not just rich enough to give the refreshment its ideal teste. The
other option in contrast to having great tasting espresso is by cooking and reviewing the actual
beans prior to adding water to them which clearly includes a ton of issue for the consumer. Thus
the Brazilian coffee Institute moved toward the administrator of Nestle back in 1930 to asked an
answer for this issue and to foster an item, which can be made accessible off the rack, will be
quickly accessible in steaming hot water yet in addition hold its unique auto fragrant kind of
newness, and a fresh flavor.
Growth: Nescafe was a successful product for Nestle during the second world as the brand was
traded to not many nations like France, United Kingdom, and the United State. In the United States,
two creations of production lines were set up to keep interest in that country. In 1952, another
development creating coffee without the need to add sugars was delivered in St Menet, France. In
1960, the item was upgraded into a glass container in Japan and Europe to keep up with the
newness of the coffee. Harking back to the 90s till today, Nescafe has consistently been focused
on continuing to work on the brand as far as bundling, taste, flavor, and administrations to give to
the purchasers. Nescafe purchasers are completely mindful of the item's presence of the brand on
account of the solid showcasing. Nescafe has supported up the items through various limited time
exercises like publicizing on TV and radio, individual selling, deals advancement, and exposure
to depict that the item could assist purchasers with disposing of sluggishness, lethargy and
furthermore to give an unrivaled taste.
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Maturity: With regards to an organization, development alludes forthright at which individuals
are totally aware of its essence. This carries with it a large number of contending brands. With the
exception of Bru, there hasn't been a lot of contest in the Indian market for Nescafe. HUL possesses
Bru, which appeared available not long after Nescafe. It additionally professed to serve premium
espresso. The biggest espresso brand in India was Bru's USP. Bru designated pretty much every
segment, counting the more youthful age. Its commercials and advancements were more customer
focused. It drew a great deal of consideration since it zeroed in additional on bonds and feelings.
Nescafe needed to help its clients to remember its quality at this stage. Nescafe as a brand has as
of now secured itself, so they endeavored to associate with its intended interest group. it was as of
now not important to sell the item since it was at that point notable and wellliked. Accordingly,
they made promotions in which individuals could associate with the brand. Nescafe utilized big
name supports and sponsorships to advance their items. Renowned entertainers have43 | P a g e
supported the brand in late advertisements, featuring the way that they, as well, drink a cup of
Nescafe consistently, regardless of whether in the middle of work or during a discussion. "Know
your neighbors" is one of their latest activities.
Decline: Nescafe has not hit the point of decline on now. It is as yet the business chief and has a
firm hang on its purchasers' psyches. On the off chance that it at any point arrives at a state of
decay, it should recuperate utilizing the strategies referenced beneath. - When a brand hits a state
of decrease, it implies that it has been outperformed by an opponent brand as far as consistency,
taste, assortment, promoting, etc. Be that as it may, the initial step is to sort out what's causing the
issue and afterward fix it. On the off chance that the issue is with the consistency or taste, they
should transform it and relaunch it to advise buyers that the new item is more grounded, more
delectable, more extravagant, etc. It will present a scope of new things, which will invigorate
customers and give them a novel, new thing to anticipate. Cooperation with different brands—
Perhaps Nescafe will work together with other Nestle brands to advance itself. Maybe by giving
tempting arrangements to its clients. consolidating the two things and promoting them as a bundle
Buyers are as yet keeping watch for the best bargains. As an outcome, the organization will actually
want to give limits and other alluring arrangements, for example, get one get one free, 20% off,
etc. Since it is an old brand, make new TV ads that feature brand legacy
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Recommendation’s
➢ The price of Nescafé is a bit high the other, so the pricing should be reduced a bit.
➢ Consumer support should be more enriched, the more employees should be appointed
➢ Although the marketing plan is good, but the promotional side should more active as today
is the day of digitalization. Instead of using push strategy, Nescafé should try pull strategy
to be more efficient.
➢ The activities of DG Team need to monitored closely for ensuring that they are don’t
deceiving consumers.
➢ The distributor should cling to an obvious course plan. Authorities from Nestlé
Professional should watch out for this and punish the wholesaler by withholding offers
from those that don't consent.
➢ A central and full digitalized sales and raw material inventory system needs to be
introduced.
➢ For DSR, a KPI-based motivation program should be made, and Nestlé Professional
authorities should guarantee that exchange limited time offers are appropriately
disseminated.
40
Conclusions and future prospects
Nescafe has consistently been the best option of coffee for the coffee lovers in Bangladesh. No
other Coffee has at any point acquired such popularity in Bangladesh and other south Asian
countries. It's always spurring mottos have roused numerous young people. However, as time
elapsed, such incredible reputation blurs by securities exchange pressure and the appearance of
other contending organizations. As indicated by settles yearly financial report, nestles yearly
income has declined in 2019 and 2020. Yet, by carefully picking appropriate market division and
systems they acquired their income simply back on schedule. Nescafe admirably designated
youthful grown-ups and common individuals. Nescafe has assembled assortment of items by
mixing it up of flavors, for example, new moment flavors, moment latte and premium gold series
for elite’s. Nescafe's low cost has made it totally open for even low-pay gatherings. Settle has its
own standing in market as a result of its broad media advancement. In media as well as these days
in practically every one of the shopping centers, colleges, workplaces and numerous different spots
has Nescafe coffee stall. It shows how tremendous is their advancement and fame. Nescafe's
immense fame in Bangladesh makes it a spot loaded with new freedoms for Nescafe in the event
that it keeps on serving its clients and constructs new items and flavors. Notwithstanding Nescafe's
prevalence over the long haul in the event that they need to keep their item and showcasing
techniques creating to find new market appearance and expanding need of progress in taste and
choice of clients.
Nescafe is attempting to extend its market through a progression of advertising and marketing
activities. It is constantly advancing its item with elective and successful mottos, for example, "get
re-energized", "setting aside a few minutes for companions and yourself", and most as of late with
"Jago ". The investigation of the advertising blend of Nescafe demonstrates that it is while
organized and proper with regards to Bangladesh. Uncommonly, the presentation of sachets has
changed the situation as Consumers currently can manage the cost of famous brands at an
exceptionally low cost. Additionally, it keeps up with its great stabdart and extraordinary product
test.
The new promotional stratigies has been adjusted in the line with its territorial positioning strategy.
To put the item where the market is, Nescafe has found a way ways to guarantee more extensive
41
conveyance in metropolitan and semi-metropolitan regions. The distributing activity is persistently
developing which is likewise adding to the by and large.
42
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APPENDIX
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