Nescafe Case Study

Part I

Introduction

One of the most consumed beverages is coffee. When roasted, every single coffee bean of Nescafe releases hundreds of different aromas. Nescafe is a brand of instant coffee made by Nestlé that was introduced in 1938, the one that's always there in the wonderful years of our life. It comes in many different product forms. It includes Nescafe decaf, Nescafe Classic and Nescafe Master Roast. Nestlé claims that 3,000 cups of Nescafe are drunk every second. A part in those special moments we shared for the last 62 years. It's a wonder for many how nestle handled their marketing mix and positioning magnificently throughout those years, how do they do it? Adjusting to the ever-changing market they are serving despite the emerging of famous coffee shops. They are that well to handle business as they rely on what the market specifically needs.

Part II

Statement of the Problem

What is the case all about?

The case is all about how Nescafe survived 60 years of becoming one of the leaders in the business. For a business to be successful in the long term it has to create value, not only for its shareholders but also for society. Over the past few years, it has become evident that it is increasingly important to stand by this strategy and even to strengthen it. Today, Nescafe is the world's leading coffee brand. With great heritage, size, expertise, people and passion come great responsibilities, but also the power to initiate change. As time changes, the continuation of improving the product mix and positioning for nestle needs to change as well, whether to stick by their ever-effective and powerful practice decades ago or to alter their strategies a bit more comprehensive to other brands that introduced product mixes that targets the younger society.

How did Nestle identify their Market Segmentation?

They were able to segment the market and focus on the specific needs of each market thereby maintaining a strong base of loyal customers.

What are the benefits from the Nestle of Market Segmentation?

Nescafe were able to last long because of carefully planned market segmentation and positioning. From being the first instant coffee in the world, Nescafe was able to exploit the opportunities arising from our love of coffee. By coming up with different kinds of coffee like Nescafe Classic, Nescafe Decaf and Master Roast, Nescafe was able to cater the needs of different consumers around the world. Another benefit Nescafe was able to get from market segmentation is the efficient use of their resources. It provides their company the necessary tools to exploit changing market opportunities and extend their product's life cycle. Nescafe was also able to come up with the right product positioning and the correct marketing mix for their coffees.

What is the future of Nescafe?

The intriguing complexity of Nescafe means it can deliver a whole range of emotional benefits that go beyond taste, from stimulation to relaxation to refreshment, and beyond. They don't focus only by producing coffee, but also by creating ideas 'beyond the cup'. Nescafe can proudly produce new blends of coffee from affordable priced to premium coffees.

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