Nguyen Huong Giang Dang

Steven Chuang
MKT 500 021
Feb 12, 2023
Individual Assignment 1
Overview
A multinational company specializing in nutrition, health, and wellness, Nestlé has been
around for more than a century. As the world's leading coffee brand, Nescafe is Nestle's third
megabrand out of the top 100 and ranks third among the top 100 brands worldwide. The
fastest-developed market for Nescafe is Vietnam, with 194 stores worldwide. Similarly to the
BCG matrix, Nescafe products are a star product in the Vietnamese market. The company aims
to “Unlock the power of food to enhance the quality of life for everyone today and generations to
come.” Morover, competition for soluble coffee in Vietnam is fiercer, and Trung Nguyen’s G7 is
its main competitor. A Nescafé's future strategy and sales depend on understanding market
trends, including demographics, economics, and culture. The company has chosen working
professionals as its targeted consumer segment. The sample buying decision process shows how
successful marketing strategies apply and make consumers decide to buy Nescafe.

Managerial Decision
According to a Nielsen Vietnam survey (2018), local coffee brands are the first choice in
the list of 41% of Vietnamese customers, and G7 is one of their preferences. Moreover, in terms
of market share, G7, one of the local brands, holds up to 30.7%, which is the runner-up of 46.2%
of Nescafe’s. Moreover, as in the coffee market, G7 is one of the competitors that offer similar
products at a comparable price. By these statistics, G7 is the biggest competitor of Nescafe in the
Vietnamese market.
According to research, we learned that G7 has weaknesses we can consider for long-term
competitive missions and benefit from. There are more significant weaknesses in G7, and
Nescafe can leverage its strengths to entice G7 consumers while covering G7's liabilities. One of
the G7's flaws is a need for image development. In contrast, Nescafe has planned a plethora of
campaigns on a wide range of social topics to demonstrate its corporate social responsibility and
concern for society to instill a positive image in people's minds. As a result, Nescafe can increase
its market share. Furthermore, Trung Nguyen supplies numerous product varieties for customers
in the coffee industry; yet, by introducing 3in1 coffees, Nescafe successfully marks itself in
customers' minds for the convenience and diversity of experience. In addition, in the recent
lawsuit, many customers chose to quit.

Research Objectives

Research Objectives as Statements Research Objectives as Questions

To determine what consumers see as the What consumers see as the benefits of 3 in1
benefits of 3in1 coffees coffees?

To identify how the different types of How do the different types of consumers
consumers define Nescafe ingredients define Nescafe in previous years?
 To differentiate the types of promotion that What types of promotion that most likely to
are most likely to attract the target market? attract the target market?

When introducing a new product line of Nestle company. Recognizing the potential of
having the strategic objectives to attribute the managerial decision. First, Nescafe is recently
well-known in certain countries and certain products and can potentially succeed word-wide by
enhancing the image of its new product line 3in1 in developed markets for convenients.
Secondly, Nescafe mission statement is towards to healthy lifestyle, which ideally gives the
young generation a good impression just by establishing a strong position in instant
consumption. Thirdly, Nestcafe can be the first world brand for Nestle, a prominent beverage
brand globally.

Information Group

Segment Old Households Working Young Generations

Professionals

Demographics Gender: Male and Gender: Male and Gender: Male and
Characteristics Female Female Female
Age: 40-60 Age: 25-39 Age: 18-24
Occupation: retired Occupation: Occupation: students
Income: medium to entrepreneurs, Income: medium to
high white-collar high income
Income: medium to
high

Behavioural Purchase occasion: Purchase occasion: Purchase occasion:

Characteristics daily daily often
Benefits sought: taste Benefits sought: Benefits sought:
Usage rate: energy gain for work concentration
medium/high Usage rate: high Usage rate:
User status: regular User status: regular light/medium
Loyalty: medium to Loyalty: strong User status: first-time
strong to potential users
Loyalty: medium

Psychographic Personalities: Personalities: Personalities: active,

Characteristics Hard-working, responsible, routine image conscious
respectful Lifestyle: Lifestyle: simple,
Lifestyle: traditional, health-conscious, modern.
slow-pacing high-tech

Vietnam has a population of 97,595,194 people, with an average age of 31 and roughly 30% of
the population being millennials. Furthermore, the mobility of Vietnamese people to urban
regions increased by 4.8% from 2009 to 2019 and is expected to account for 50% of the
Vietnamese population by 2050. It will provide the organization with the option to interact with a
bigger number of segmented clients (urban adults). In recent years, Vietnam's per capita coffee
consumption has quadrupled, making the country an appealing market, resulting in heated
competition between established and new coffee companies (Hoang Phi, Linh 2019).

Proposed Research Methods

Applying causal studies best aligned with research questions. As the research above
meets analysis requirements. Causal studies help uncover the factors that cause some weaknesses
for Nescafe in the market.
Weaknesses
● Sugar content is higher in the products.
● The price is higher than competitors.

Strengths
● Providing superior quality and variety of products to differentiate its product from
competitors.
● Most of its items are sold through wholesale and retail channels, allowing customers to
access them from anywhere and thereby increasing sales.
● Having its own growing coffee plant results in control of raw materials and
manufacturing, providing a unique experience for each consumer that cannot be
communicated just by word of mouth.
Works Cited
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n-va-nescafe-49918.htm?fbclid=IwAR2BK_idOqCa4PPZnpaqSn0bCQnfCLN05TyE0r0
LarIk2jb_cJHKijRB5_c

Nguyen, A. (2019, March 4). Vietnam is Nestlé's fastest-growing market in Asia - VnExpress
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Hutson, C. (2019, September 18). Exploring traditional Vietnamese coffee culture - atlas coffee
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Nescafe ra Mắt BỘ NHẬN Diện Thương Hiệu Mới Trên toàn cầu. Brands Vietnam. (n.d.).
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bo-nhan-dien-thuong-hieu-moi-tren-toan-cau?fbclid=IwAR3X-7pYn5GuNSVZPbF9K1
GYRi5pJYXQktD1dm4cghE_VTQxf0TnLIpn1RE

Writer, authorS., Wong, 13 F. 2023K., Dudekula, 10 F. 2023R., Tan, 10 F. 2023C., & Yuen, 10 F.
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Focusing on regenerative agriculture and moving to renewable electricity, Nestlé Redoubles

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