Nestlé Corporation
Nescafé Instant Coffee
“Great Start of a Day”
Created By: Laura Greff, Enni, Sean, Cherry
Class: International Business
Teacher: Rolf Butz
Date: Oct. 26, 2010
Fun Facts
• People drink 4,600 cups of Nescafé per
second.
• Grounds for divorce
• Coffee Baths in Japan
• 450,000 farmers work with Nescafé worldwide
History
• 1866 - Nestlé established Switzerland by Henri
Nestlé
– 1900 – started operating factories in United States,
Germany, and Britain.
• World War I – Difficulties to find raw materials
– During World War II Nescafé became a staple in the
army
• 1938 - Max Morgenthaler introduced Nescafé
– There are 8 lines in Nescafé
– Nescafé Classic, Gold Range, Espresso, Premium
Range, Decaf, Specialties Range, Frappe, 3 in 1
Industry Analysis
• 80% of American adults, 27% of teenagers drinks
coffee
• Coffee is mostly drank by people between the ages of
45-55
• The coffee industry has over 108 million consumers
• Only five companies buy world’s 50% of coffee beans
Non-Alcoholic Hot Beverage
Market Segmentation
1%
Espresso
40%
46%
Instant Coffee
Other
5%
8%
Rost and Ground
Tea
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
SWOT Analysis
Opportunities
• Emerging Markets
– China and India have the fastest growing coffee
markets
Threats
• Growth of coffee industry
– There are over 17,000 coffee shops in the U.S.
Competitors
• The Best part of waking up
– Founded in 1850
– P&G bought the company in 1963
– Number one selling instant coffee in U.S.
• The 4 dollar coffee
– Starbucks is moving in the international game and
is gaining ground in countries such as China
– It is making its way into the instant coffee market
Competitors Cont.
• Maxwells Coffee
– “Good to the last drop”
– Started in 1892 by Kraft
• Kraft is Nestlé’s number one competitor
• Holds the second largest market share of
coffee industry
Global Market Expansion
N
Exported
to France
1938: Nestlé
introduces
Nescafé.
Nescafé
enter U.S
in 1938
Advertise
ment enter
Japan
in1961
“Gift”
enter
China in
1988
Global Market Expansion Cont.
2008 China Beverage
Market
• Nescafé works with
coffee bean growers to
help improve crop yield
Coffee
4%
• Nescafé has changed its
marketing technique to
suit the Chinese tradition
of “Gift Giving”
13%
Coffee
Tea Beverage
Fruit& juice
Carbonated
Soft Drink
13%
Tea
Milk
Beer
8%
19%
9%
Water
Wine
9%
10%
15%
Other
Challenges
2005 China Coffee market size
80%
70%
60%
50%
40%
30%
20%
10%
0%
Nescafé occupy
43%
73%
market size
11%
instant coffee
Canned coffee
16%
Fresh Ground
Coffee
Short-Term Recommendations
• Marketing
-Give People lucky prize
• Change the Glass Jar to new materials
– Only use the glass for decorative gifts
– Safety Hazard
• Make Nescafé’s Special Mug
– This mug would be a coupon for future purchses
Long-Term Recommendations
• Vending Machine
- The first coffee vending machine was created
in 1946
• Give people free Nescafé
• Expand Its Distribution Chain
- Can stop the fake products appear in market
Thank You
We hope that we give everybody a
“Great Start of a Day”