History of Nescafe
Quality coffee since 1938
The rich taste of your favorite coffee is reflected in its rich history. Nescafe products are produced by Nestle. The beginnings of NESCAFÉ can be traced all the way back to 1930, when Nestlé was approached by the Brazilian Coffee Institute to seek a way to preserve the huge coffee surpluses. Nestlé took up the challenges, coffee specialist, Max Morgenthaler, and his team set out to find a way of producing a quality cup of coffee that could be made simply by adding water, yet would retain the coffee’s natural flavor. After seven long years of research in Swiss laboratories, they succeeded in producing the world’s first fully soluble coffee extract and quickly gained popularity around the world. Today NESCAFÉ is the world’s leading coffee brand with more than 4,000 cups of NESCAFÉ enjoyed every second throughout the world.
The new product was named NESCAFÉ – a combination of the Nes-root of Nestlé and the word café. NESCAFÉ was first introduced in Switzerland, on April 1st, 1938. For the first half of the next decade, however, World War II hindered its success in Europe. NESCAFÉ was soon exported to France, Great Britain and the USA. American forces played a key role in re-launching NESCAFÉ in Europe by virtue of the fact that it was included in their food rations. Its popularity grew rapidly through the rest of the decade. By the 1950s, coffee had become the beverage of choice for teenagers, who were flocking to coffee-houses to hear the new rock ’n’ roll music. In 1965 NESCAFÉ continued to bring the world’s best cup of coffee by introducing freeze-dried soluble coffee with the launch of Gold Blend. A few years later, a new technology was invented to capture more aroma and flavor from every single coffee bean. In 1994 the ‘full aroma’ process was invented to make the unique quality and character of NESCAFÉ even better.
Mission and objectives of Nescafe
To bring NESCAFE to people around the globe, providing a “1 NOW 1 NESCAFE” to satisfy every aspect of needs.
(Nescafe provides good taste, aromatic smells of coffee to people, providing “1 Nescafe with 1 unique moment “so that everyone can enjoy. Wherever you are, you will be able to find Nescafe around, whether in shopping complexes, supermarkets/hypermarkets or even grocery stalls.)
Nescafe Global Objectives
1. More growth out of Nescafé – not only in emerging markets, but also from developed markets
2. Strengthen Nescafé relevance to youth; add strong position in “immediate consumption”
3. Establish Nescafé as the first World Brand for Nestlé – a leading beverage brand world-wide
To achieve these objectives
• Change Total Brand Behavior
• New energy/new focus
Long-term theme: Nescafé Project Ambition
• Relates to 3 of the 4 pillars (Consumer Communication, Product Availability, Renovation /Innovation)
• Already well underway on the 4th pillar (Low Cost/Efficient Operations)
Opportunity of Nescafe
1. Working Adults (Primary)
2. Students-University, Academy, High School (Secondary)
3. Senior Citizens (Third party)
NESCAFÉ Classic NESCAFÉ Gold Range NESCAFÉ Premium Range NESCAFÉ Decaf??Decaff
NESCAFÉ Specialties range NESCAFÉ Frappé NESCAFÉ 3in1 NESCAFÉ Espresso
(Cappuccino, Latte Macchiato)
Nescafe in Australia
Market positioning of Nescafe in Australia
Nescafe holds a vary large share of the instant coffee market in Australia. Since Nescafé has the largest range of instant coffee products in Australia, and has such a powerful brand name, they have a consumer franchise – they gain brand recognition and demand consumer loyalty.
Nescafe’s marketing mix is aimed at a large and varied segment of the instant coffee market. They could be considered the ‘Myer’ of the instant coffee industry. The most obvious segments of the market they target are:
Young adult café culture segment:
They target this segment with their new latte range, along with the advertising, sales promotion and the competition to win the lounge seen in the advertisements.
Upscale, quality driven, higher income consumers:
Their Nescafé Gold range and exotic tastes such as Alta Rice are aimed towards such consumers, where the price and quality are higher than that of the general blends.
Middle-class consumer (no age target):
Nescafe targets such a large segment with their Blend 43, Mild Roast and Espresso products. The consumer gets an economical benefit, as well as a quality product.
Place (Distribution) of Nescafe in Australia
The Nescafe product range is available in all large supermarket chains (Safeway, Coles etc). Smaller, independent grocers or stockiest generally have a smaller range that would include Nescafé Blend 43.
Promotion Strategy of Nescafe in Australia
A variety of promotional techniques are applied in Australia to promote Nescafe. This includes:
Large Scale Advertising
The re launch of the Nescafe brand in Australia begun with the rollout of new packaging and a national advertising campaign before the end of the month.
Nestle marketing manager; Mark Beales said the key aim of the new advertising strategy was to get Australians to drink an extra cup of Nescafe coffee a week. They advertise their products in a wide variety of print, broadcast and display media. Their most recent advertising campaigns were the “Open up with Nescafé” series, and the “Nescafé in the morning” series.
In their advertisements, they use actors of varied age, gender, occupations and ethnicity. Nescafé attempts to tap into the ethnic segment using their Espresso and exotic blends. In their advertisements for espresso, they use local Italian actor, Nick Giannopoulos.
In Australia, Nescafe give more emphasis on print campaign, in-store point of sale, PR, promotions, web activity and trade marketing with seven 15-second rotating TVC spots.
Nescafe regularly runs contests that coincide with new product launches or advertising campaigns. Recent promotions were
“Win $1000 every morning for a month”
“Win the Nescafé Latte Lounge” – to promote the new latte range
Nescafé also use point of sale promotions, have cash-back offers, and have give-always a free Nescafé mug was given away with every purchase of 500g of Blend 43. The mug was the same type as that used in the ‘Nescafé in the morning’ advertisement series.
Nescafé sponsors the “Nescafé Big Break” competition which will give away $180,000 to young people (aged 16-21) with original and achievable ideas.
“Nescafé Short Film Awards” – which offers a total of a$50,000 in cash awards to short film makers. There is a student category in this competition.
Nescafe in U.S.A
Switzerland’s Nestle group produces a wide range of food products, yet its instant coffee brand Nescafe is the one that most people know, but this is only in Europe. In the US, the situation is different, and Nescafe is a virtually unknown brand in a market dominated by Maxwell House, Kraft Foods’ instant coffee brand – a situation which is hard to swallow for the world’s largest coffee maker.
Until now the US is the world’s largest coffee drinking market, and Nestle USA was finally decided to launch Nescafe on a nationwide basis.
Market positioning of Nescafe in U.S.A
Nescafe adopted several strategies to position its coffee to the US largest coffee drinking market, rather than focusing on its mainstream instant coffee brand, the company has opted to start with Nescafe Frothe, an instant coffee drink which comes in six different flavours: Divinely Mocha, Enchanting Vanilla, Captivating Caramel, Mystical Hazelnut Mocha, Silky White Chocolate and Nestle Butterfinger.
While Nescafe coffee is sold in 50 countries worldwide, Frothe was launched US and had initially available only in a limited number of test markets on the West Coast of the USA. Later, it goes for nationwide.
Bruce Handler, managing director of the Handler Design Group and design director at Nestle from 1984 to 1987, explained that from the 1950s to the late 1970s, Nescafe enjoyed steady but slow growth in US, and consumer awareness of the Nescafe brand name was high. Nut this changed in the mid 1980s, when Nestle reformulated the line of Regular and Decaf coffees, expanding the line to five different SKUs and switching to European names.
Promotion of Nescafe in U.S.A
The nationwide launch of the Frothe brand will also be accompanied by a change of packaging, designed to reflect the attitudes and lifestyles of modern coffee drinkers.
“The new packaging illustrates contemporary situations where coffee plays a relevant role in people’s lives,” said Amanda Steele, marketing manager for Nescafe at Nestle USA.
Nescafe was first introduced in Switzerland in 1938, later in the US. There have also been a number of instant coffee specialities launched by the group in recent years, including Nescafe Frappe and Nescafe Cappuccino, of which Frothe is essentially the US variant.
NESCAFE(R) CLASICO(TM) is the leading coffee for Latinos in the U.S. It is 100% pure coffee, made from selected coffee beans, captures its full flavor and aroma. NESCAFE CLASICO has a unique taste and is a familiar “cafecito” that Latino consumers know and love from home.
NESCAFÉ introduces Dolce Gusto in USA; it is also
available in 15countries. NESCAFÉ and KRUPS have
joined forces and launched NESCAFÉ Dolce Gusto, a
unique, multi-beverage system combining a stylish high
pressure machine with smart coffee capsules delivering
high quality beverages from Espresso to Cappuccino and
Distribution of Nescafe in U.S.A
While Nescafe coffee is sold in 50 countries worldwide, Frothe was launched US and had initially available only in a limited number of test markets on the West Coast of the USA. Later, it goes for nationwide. Nescafe has 22 distribution centers in U.S.A.
Furthermore, 62 per cent of those surveyed also said they had indulged in a cappuccino or latte in the past year, and it is this segment of the market that Frothe is targeting.
A new line of instant gourmet coffees was launched in the US in September 1999, although again only on the West Coast, and it is only with Frothe that the Nescafe name will become known throughout the US. NESCAFE CLASICO is the fastest growing brand in the instant coffee category with distribution nationwide in the U.S.
According to Handler, managing director of the Handler Design Group may have alienated the brand’s core drinkers – the blue collar marketplace – at that time. But this time Nescafe is going firmly for the white collar sector – the one which is already the core market for the US since the 1980s – and it is clearly hoping for more success.
Nescafe Dolce Gusto launched at 2002 in USA exclusively at Sur La table and also in online and it became available in Bloomingdale’s, Bath & Beyond stores.
Nescafe in India
Nescafe market positioning in India
Nestle products are sold throughout India and are also exported to Russia, Hungary, Japan, USA and several other countries. These include certain international products like Nescafe and Lactogen, Nestle India was recognized with the top Exporter Award for export of Instant Coffee, and for export of all coffees to Russia and CIS Countries.
Distribution of Nescafe in India
Nescafe 3in1a milder version of coffee was firstly launched in Delhi. In India Nescafe is available in Nescafe coffee corners, Nestle consumption zone. Vending machines for Nescafe coffee are placed – in offices, colleges, departmental stores and places where footfalls are higher.Now it is also being introduced to northern and western markets of India. Nestle also set up ‘Café Nescafe’ and ‘Coffee Corners’ across metros and mini-metros of India. In visibility and availability of Nescafe had been supported by smaller stock keeping units.
Promotion of Nescafe in India
- Availability of NESCAFE enhanced through an expansion of the vending machine network in India.
- Nescafe has been doing 360 degree promotional activities like Crm, pop, vending machine network etc in India.
- Nestle set up ‘Café Nescafe’ and ‘Coffee Corners’ across metros and mini-metros of India.
· Price Promotion of Nescafe is also playing a price game in coffee.
|classic 50gm (mostly consumed)||Rs.65|
|sunrise 50 gm||Rs.33.50|
|choco café 50gms||Rs.19|
Promotional Strategy of Nescafe
Promotion is the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.
The basic tools used to accomplish an organization’s communication objectives are often referred to as the promotional mix. The promotional mix has included six elements; advertising, sales, promotion, Direct marketing, interactive / internet marketing, PR/Publicity, Personal selling.
By using the elements of promotional mix we tried to develop three different promotional outline of Nescafe for 3 different markets.
- Promotional outline for USA.
- Promotional outline for Australia.
- Promotional outline for India.
Promotional plan for Nescafe in INDIA
As a vast amount of people live in India, so we select advertising strategy in India for the following reason.
Advertising is the most cost effective way to reach large audiences. It is possible to reach the Indian Housewives during evening prime tie programming. Television advertising is the most effective way to maintain the brand awareness and reaching a mass audience at one time. By advertising it is possible to reach current and potential customers.
We will provide message for our customers of India, Nescafe gives you a different taste and flavor at a reasonable price.
Strategy & Tactics:
Some TV ads will develop containing the message to provide our target customers. In this promotional plan our target customers are the Indian Housewives and the people who work in indoor. Indian woman are used to watch movies and TV serial in their off time. So we targeted some Indian channels for our advertising.
Media: Broadcast media
Media Vehicle: Sony TV, Star Plus.
Time slot: After 8 PM.
To distribute the product sample we will use direct marketing techniques.
Strategy & Tactics:
As India has a large population it is always a potential market for Nescafe. By direct marketing in India we will encourage the consumers to purchase directly from the manufacturer in a low price. We will also distribute our products through traditional distribution channels.
In the direct marketing message we will influence people to purchase and drink Nescafe as we provide to the customers in low price. We will use direct response advertising.
By this technique we will involve the existing and potential customers with Nescafe.
Strategy & Tactics:
We will as a question to our customers.
For example: In “NesW?” -What is the meaning? Who will able to answer, he/she will get a prize from Nescafe.
In NesW? = If not Nescafe what?
Campaigning, internet, print media.
To stimulate immediate sales.
Strategy & Tactics:
All peoples of India are not well balanced so they always think about the price of a product, they are not so conscious about the quality; they always try to fulfill their demand with a little economical effort.
So we will offer consumer-oriented sales promotion in India.
We will use couponing, sampling, premiums, Nescafe contests and techniques etc. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short term sales.
To avoid criticism.
Strategy & Tactics:
A lot of print media and TV channels are working in India. So it is necessary to build a good relationship with these print and TV media.
Promotional plan for Nescafe in USA
American people like to bear brand preference in their mind during the time of purchasing products or services. That means American peoples are brand conscious.
Advertising is a valuable tool for building Company or brand equity as it is a powerful way to provide consumers with information as well as to influence their perception.
“Quality comes first. Profit is its logical sequence of Nescafe.”
Strategy & Tactics:
To provide our message tyo the consumers we will develop some TV ads and some place ads that will obtaining and focus our message as our brand theme. We will make contract with ¾ American TV channels to broadcast our TV ads. We will set our time slot after 8 PM and most frequently on the week holyday, national holydays and during summer vacations.
We will set our place ads in front of Super Markets, besides train station, besides amusement parks.
Media: Broadcast media
Media Vehicle: Star Movies, AXN etc.
To communicate directly with our target customers and to generate a response we will use direct marketing in USA for Nescafe.
One of our target segments is executives and professionals. As we know that such type of people are always busy with their profession, so we will use direct marketing process for them.
Strategy & Tactics:
For direct marketing we will include database management of our target customer. We will use direct mail, internet. Through direct mail we will send mail to our customers bearing contents of Nescafe. We will describe the advantage of Nescafe as a drink. We will also describe various variations of Nescafe which is existing and which is coming to markets.
We will also use internet for direct marketing. Because 99% of that executive and professionals use internet. In the web pave we will provide portal system of Nescafe, after clicking that portal customer will get various types of information about Nescafe.
In this technique users can participate in and modify the form and content of the information they receive in real time.
Strategy & Tactics:
In interactive marketing we will deliver some questions to the customers and will also request them to give their valuable suggestions to Nescafe by which we can develop the product.
We will ask them about-
– Price, etc.
Dear customers your valuable suggestions will develop Nescafe.
We will use Internet, Print Media, and Network TV.
To provide extra value, incentives to the consumers of Nescafe.
Strategy & Tactics:
Peoples of American are economically solvent; they never think about the price of a product, they always look for the quality that ads extra value in their life style.
Here we will use trade oriented sales promotion toward marketing intermediaries.
This sales promotion will provide to the wholesalers, distributors and retailers. We will offer prizes through sales contest and trade shows to promote Nescafe.
Promotional Plan for Nescafe in Australia
Australia’s diverse culture and lifestyle reflect its liberal democratic traditions and value. As Australia consist of multicultural people, so it is difficult to attract customers in Australia. There are various promotional program in IMC frame work from those various program advertising program has the greatest influence on consumers buying behavior. So, by advertising we will try to attract the customer of Australia.
“All the people are equal but not all the coffee…….
Try something different in your taste…. Try Nescafe”
The above message we choose because different culture people have the freedom to express their tradition and culture independently. They have no class differences and they think all people are equal. As Australia is an egalitarian society, so in our message we focus on that equality of people and with this concept we promote Nescafe in advertising.
Strategy & Tactics:
Through TV and print ads we want to spread our message on Nescafe. Our strategy in this promotional plan is to attract our target customer’s attention. As the unemployment rate in Australia is relatively low and Australians love sports both playing and watching. So in Australia our target customers are executives and sports lovers (both spectators and participants). As these types of people generally watch news, sports and reading news paper or magazines, so we make our ads for our target market on the basis of that. So we think TV and print ads are suitable for Nescafe in Australia.
Media: Broadcast media and print media.
- TV channels: Ten sports & ESPN channels from 1.30-2.30 pm and 8.00-11.00 pm.
- News papers: In 1st page, sports related page and business related pages.
- Magazines: Financial magazines, sports magazines.
Direct marketing is a valuable took in the integrated communication program. Through direct marketing variety of activity are done, such as test drives, votes, call on a toll-free number and form that requests mailing information etc. By direct marketing we try to generate an immediate behavioral response into our target customers.
“Be fair with your income
Be fair with your taste
So, always think about Nescafe”
We choose this message for Australian people as they are the hardest-working people in the developed world with the longest hours. So as they work hard, their income has a value to them. And when they spend money to buy anything they need to think, are they wasting money or they are fair with their income.
So, through this message we try to hit this point of view of Australian customers.
Strategy & Tactics:
As our target customers are the executives (both part time & full time) and sports lovers (both spectator & participants), we know these people are usually use internet. So we use direct mail and direct print media.
In direct mail we place our message first and then place some information such as- Don’t miss the opportunity of being fair to the income and what you spend. “Do you taste Nescafe ever? If you don’t then please taste it today. And tell us, Is Nescafe fair with your income and taste? If you thin Nescafe is unfair then suggest us how it could be fair.” Whatever you think about the Nescafe (it is fair or unfair) please write your comment or suggestion in the following box. In direct print media we also use the same thing as above. But for the comment or suggestion customer can call immediately in a toll free number or can visit in Nescafe web site. In this mail we also provide Nescafe catalogs, history and other information about Nescafe.
- Direct Mail: We send mail to all the hotmail, gmail, ymail users.
- Direct print media: We print only on the first page of newspaper and magazine.
Internet & Interactive Marketing
By using internet and interactive marketing we try to reach those customers who use online. And as we know Australia is a developed country so it is general that most of the people use internet or work on online. So we hope we will be successful to attract many customers through this IMC program.
Use the same message of direct marketing.
Strategy & Tactics:
We use Banner ads, pop-ups and pop-under etc. to attract the customer when they work on online.
We give an ad of Nescafe then we ask the customer “What is the lacking you find in this ad?” send your suggestion to improve this ad. Those who sent more creative and good ideas are awarded with some exclusive gifts. For sending the suggestion whether customers can sms on our number (the cell-number is given) or they can visit in our web site. Ideas and suggestions are acceptable only for this specific ad.
Our objective for sales promotion is to make a direct inducement that offers an extra value or incentive for the Nescafe.
“Be free with a cup of Nescafe”.
We provide this message in our sales promotion as it is some how related in our promotional strategy.
Strategy & Tactics:
In our ad we mention that be free yourself from the bindings of regular work and participate “Nescafe Contest”. Those who buy Nescafe 50gm bottle get a coupon number. And according to this number they get the opportunity to participate in the contest. It is a song contest. The contest is free from any discrimination; the people of any age, culture or class are welcome. The winner of the contest gets a chance to sing for the Nescafe ad and also get $10,000 as an award.
Our objective is to make the Australian people aware about the new type product of Nescafe. Make an excitement into the consumers mind for buying Nescafe.
“Make a bond or closeness with any cultures with a sip of Nescafe.”
We provide this message in our PR. By this message we try to focus on the different culture of Australia and with this also try to promote Nescafe.
Strategy and Tactics:
As Nestle is a renowned brand, so it is easy for Nescafe to make good image on customers mind. We arrange many seminars, press releases and trade shows for PR or publicity where we announce our new product.
Australia is a unique blend of established traditions and new influences. Most of the people in Australia are migrants and they have a great influence on every aspects of Australian life. For this reasons we base our PR strategy on the bond of different cultural people of Australia.
They always try to improve their strategy through upgrading their product, promotion, price and distribution. Nescafe already capture a good position in the world coffee market. We try our best to make promotional strategy on Nescafe in USA, India and Australia. As we are not professionally experienced and we make the strategy on the basis of our educational knowledge so there may be a chance of mistake. But what promotional plan we make we think if those strategies are implemented then Nescafe can be benefited.
Today NESCAFÉ is the world’s leading coffee brand with more than 4,000 cups of NESCAFÉ enjoyed every second throughout the world. Nescafe has a rich history since 1938. Nescafe products are produced by Nestle. Nescafe has a great opportunity for their in the world market. In this assignment we make some promotional strategy on Nescafe of Australia, USA and India. In each country our target customers are different. We make our strategy in a different way so that we can attract our target customer’s attention.
9. http://www.ibef.org/attachdisplay.aspx?cat_id=60&art_id=6822 –
13. Belch & Belch, 7th edn, Advertising and Promotion, McGraw-Hill, NY