Nescafé brand is owned by Nestlé and it is worth around 13 billion dollars. Each year approximately 94 billion Nescaf cups are sold around the word, which is around 3,000 cups every second. According to the Interbrand study, the brand "has benefitted from the increase in demand for premium coffees", and has also educated its consumers about the health benefits of the beverage.
- Which segments are being targeted and strategies used to influence the target segment?
Ans) Coffee is the largest beverage that is consumed worldwide. Nescafé is very popular brand all over the world. Nescafé basically try to target:
- Youth: Coffee is very popular among youth. They have tried to associate NESCAFE with youthfulness. So mostly in their advertisement they show young boy or girl having coffee in RED NESCAFE MUG.
- The Common man:
The Nescafé targets common man who is just looking for a cup of coffee to get them through the day. Coffee is a beverage that can revitalize them
- Working executive: Coffee is a beverage that is said to have some properties that can
Energise a person easily.So they are targeting working executives who are working very hard. This beverage can be a reenergiser for them.
To promote the product and to reach the market NESCAFE has used the following strategies
- Availability of NESCAFE enhanced through an expansion of the vending machine network
- New consumption opportunities for chocolates and confectionaries were identified and developed in areas like railways, platforms, college canteens.
- Nescafé has set up 'Café Nescafé' and 'Coffee Corners' across metros and mini metros.
Ans) Promotion tool refer to using different tools to support marketing goals.
The various tools being used are:
Television: Nescafé extensively advertise them on television. Television is above the line marketing tool. Television these days have a wide coverage and are a superb tool to promote ones product.
Newspapers and Print media: Nescafe whenever introduces a new flavor it publicizes itself through print media. Print media at times tell all sorts of benefits. The consumer can meticulously go through and decide.
Public relation activity: Nescafe can be brought into limelight by associating itself with some activity like sponsoring a tournament etc. Through this it has a good scope of being the cynosure of consumer's eyes. This can be said to be a below the line marketing strategy. The only problem here is it does not have a huge coverage areas
Direct selling: Nescafe has its own coffee corner where they sell coffee along with other nestle product. So this can be called as a good promotion tool to attract consumer and here they can have a first hand experience.
Ans) A "pull" selling strategy one that requires high spending on advertising and consumer promotion to build up consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers. Nescafe is into Pull strategy as it advertises itself pretty good. If we see the television advertisement they are youthful and try to strike an emotional chord with the audience. This may attract lots of consumer toward the product and they do like to give it a try. As coffee and cold drinks are the substitute for coffee they always have to keep themselves alive in the memory of consumer because product category competition is very high.
Ans) The Nescafe is promoting itself well but still it needs to advertise itself more. People in India still consume lot of tea. Which is a big threat .Coffee has always been associated with youth and elite but it should target middle or lower income group segment. They should reduce the prices and should design an exclusive promotional activity for lower income group people.
They should make itself more of a family drink than for friends. They should also come forward and associate itself with various events so to be more popular AND NOT TO HAVE A GOOD HOLD ON JUST COFFEE BUT BEVERAGE MARKET AS WELL