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History Nescafé is the brand owned by Nestlé Brand of instant coffee by Nestlé. The name is the conjunction of the words "Nestlé" and "café. Nestlé was introduced in Switzerland on April 1, 1938 . 1 A2_Group10_Fmcg_Ver1.1
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Nescafe Analysis

Apr 01, 2015

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Page 1: Nescafe Analysis

History Nescafé is the brand owned by Nestlé

Brand of instant coffee by Nestlé. The name is the conjunction of the words "Nestlé" and "café.

Nestlé was introduced in Switzerland on April 1, 1938.

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Page 2: Nescafe Analysis

History

Brand for soluble coffee, & also used as an umbrella brand.

In the US the Nescafé name was used on its products throughout the 1950s and '60s.

Later, Nestlé introduced a new brand in the United States called Taster's Choice and the product is now known as Nescafé Taster's Choice.

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Strategy Applied For Nescafe

Heavily investing in sponsorship deals

Last April the coffee brand teamed up with the Ministry of Sound music tour and MTV sponsoring 31 music events worldwide

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Second brand strategy

In second brand strategy the second brand need not be a discounted brand.

e.g. Nestlé launched its Gold Blend brand at a premium to its Nescafé brand.

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Strategy to enter the growing green tea market.

Tapping into consumer health consciousness, Nescafé will be positioning their product as having 70% more anti-oxidants than regular green tea, despite actually being a coffee.

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NESCAFÉ coffee is available to suit all tastes and in a wide range of packaging. NESCAFÉ now produces many different types

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Best Performing Strategies

The company continuously focuses its efforts to better understand the changing lifestyles of modern India and anticipate consumer needs in order to provide convenience, taste, nutrition and wellness through its product offerings.

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Distribution strategy for NescafeFocused on operational efficiency; improving

product availability and visibility and initiated efforts to make its products more relevant to the consumers. This has been supported by the distribution of smaller stock-keeping units (SKUs).

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Nestle understood buying pattern & purchasing power of people & hence they came up with coffee in sachets which helped them to encourage the commonest people buy coffee.

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Suggestion

Coffee MachineIt involves establishing coffee machine in corporate

officesIntroducing several flavors in that machine e.g.

latte, cappuccino, black coffee.Using that machine as a promotional tool.Cup-vending machines featuring new cups

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Promotional ActivitiesAvailability - Wherever, Whenever, HoweverTwo key directions to strengthen “ImmediateConsumption”Acceleration in OOH focus on beverages and coffee in

particularNew initiatives on RTD coffee with JV with Coca-Cola(Beverage Partners Worldwide)

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Out of home advertising, therefore, is focused on marketing to consumers when they are 'on the go' in public places, in transit, waiting

This would result in sales growth in terms of

volumes & uplift the market share to certain extent.

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Page 13: Nescafe Analysis

Factors Need to be Considered Tea drinkers constituted 66 per cent of the

population compared to 22 per cent who had been branded as habitual coffee drinkers.

Listing out the barriers for low intake are expensive, not healthy or required more efforts to prepare.

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Identifying Coffee Growth Opportunities World Population World Coffee Consumption Nescafé

Sales

"Sophisticated" 17% 65% 42%(1cup/day plus)

"Intermediary“ 26% 29% 54%(1cup/day)

"Starting“ 57% 6% 4%(1cup/week and less) _________________________________________ 100% 100% 100%

(source: internal statistics from 95 markets/regions)14A2_Group10_Fmcg_Ver1.1

Page 15: Nescafe Analysis

Changing Consumption PatternsTargeting Kids through Chocolate Flavor which will convert kids into potential

customersExample Introducing ready-to-drink cold coffee in jars

especially in summer Making the coffee available mostly at every

railway station as it is available at Churchgate.

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Page 16: Nescafe Analysis

Enlarging Market SegmentIntroducing Ayurvedic Coffee, Sugar-Free

Coffee which will open the new market segment.

Nescafé can also supply such coffee to hospitals, small health-care centre, doctors.

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Page 17: Nescafe Analysis

Entrepreneurial Activities Nescafé can start its own shop like Barista &

Café Coffee Day for targeting young generation. It would be easier for Nescafe to provide variety of coffee to its customers.

Shops can also be used for test marketing i.e. testing potentials of a new product in the market.

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