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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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 Nescafe
Focused 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 Machine
It involves establishing coffee machine in corporate
offices
Introducing 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 Activities
Availability - Wherever, Whenever, However
Two key directions to strengthen “Immediate
Consumption”
Acceleration in OOH focus on beverages and coffee in
particular
New 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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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)
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Changing Consumption Patterns
Targeting Kids through Chocolate Flavor
which will convert kids into potential
customers
Example
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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Enlarging Market Segment
Introducing 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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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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