Nescafe Marketing Mix

Place in the marketing mix of Nescafe

Price in the marketing mix of Nescafe

Nestle company follows the FMCG strategy of distribution. This is quite effective because it involves breaking the bulk in a typical distribution channel. The two channels are:

1. Manufacturing-C&F agent-Distributors-Retailers.

2. Manufacturing-Bulk buyers-Consumers.

Nestle has adopted the strategy of non-price competition. It ensures that traders don’t take advantage and hike prices by maintaining uniform pricing for all its products, including Nescafé.

It offers generous discounts to its distributors.

Different Nescafé brands come with different prices depending on how they are made.

Marketing Mix

Promotion in the marketing mix of Nescafe

Product in the marketing mix of Nescafe

Nescafe has developed a lot over the years and is touted as the market leader in the instant coffee industry.

Nestle has used a number of advertising strategies throughout the years to make the product Nescafe appealing. In particular, it has used persuasive advertising, with an emotional aspect, to make it an instant success, e.g ‘Nescafe tune’ which is one of the best advertising campaigns which was launched about 20 years ago.

Another promotion strategy is excellent branding that is used to build high brand value for end customers. Besides some packaging and product changes, Nescafé logotype has always remained the same since its origin.

The history of Nescafe can be traced as far back as 1930 when its coffee specialist Max Mergenthaler and his team were asked to produce high quality coffee that could be prepared by simply adding hot water. It then took nearly 8 years of research in their Swiss laboratories until they finally managed to get the solution in 1938.

The final product was called Nescafe and by 1950’s people was flocking coffee shops for the product.

A significant portion of Nescafe’s promotion strategy involves the use of:

 Advertising Campaigns

 Newspapers

 Internet

 Television

 Public relation activity

Over the years, the company has produced a number of brands under the umbrella name, Nescafe.

Nescafe also focuses on producing high quality products and experiments with a lot of variants.

It recently introduced the Nestea which was instant tea, looking at the potential consumption of tea loving customers.

Moreover, Nestle also uses its other powerful products like Maggi and KitKat to strongly push for a higher market share.

Background

The name is a portmanteau of the words "Nestle" and "cafe".

It is one of the world’s most popular coffee brands which is available in many varieties to suit all tastes and occasions with more than 3,000 cups consumed each second Nescafe is by far the world’s leading coffee brand, and also the third most valuable beverage brand after coca-cola and Pepsi.

Nescafe Marketing Mix

By: Yara Ahmed Yussef

Rania Elsayed

Based on Jim Harvey's speech structures