Group 4

Nestle - Nescafé
Akash Uday Baghel- 20020841270
Akshay Katneni - 20020841236
Ishleen Kaur-20020841250
Kevin John Alex - 20020841195
Navneet Prakash - 20020841264
Susmita Kayal - 20020841280
 Cultural challenges faced
Nestle follows the Global Consumer Culture (GCC) positioning. It means having the same
brand logo, but marketing differently to meet local consumers' needs. Nestle has followed
the "Think Global, Act Local" philosophy. The Nestle logo is the image of the nest, which
represents a sense of caring, nurturing family 27 morals; and affection.

India USA Italy

● Indian consumers view tea as ● American culture has inducted ● Italy is the second-largest
their morning beverage rather coffee as their primary morning importer of green coffee
than coffee beverage, which is seen beans in Europe, after
● Typically women make the unanimously throughout the Germany.
purchasing decision when it country ● Coffee is an integral part
comes to the groceries ● Both men and women are of Italian culture.
● Consumers are price sensitive, involved in the purchasing ● Instant coffee accounts for
value driven and easily swayed process only 1% of all coffee sold
by substitutes with perceived ● Most American offices and in Italy – presumably the 1
higher value households have a coffee % is bought by British
● Unlike other markets, Nescafe dispensing machine and tourists.
must search other positioning consumed continuously
strategies other than a throughout the day
‘morning beverage’ ● Nescafe faces high level of
competition in the market
 Product
Nescafe offers a diverse range of options, all of which are designed to entice customers' taste buds. They
ensure that every single type of coffee drinker is satisfied after tasting the coffee. Nescafe's strategy
includes the introduction of numerous coffee blends. Customers' demographic needs are also taken into
account.
They have classified the products into certain categories like Gold, Classic, Mixes, Ready to Drink
and Azera all of these are designed in way that they give a different experience all together. To name a
few best sellers.
Gold: Nescafe Original, Gold Crema, Gold Decaf, Gold Espresso, Mocha, Latte, Cappuccino etc.
Based on the region where the coffee beans are cultivated from.
● Gold Origins Colombia- Fine Arabica beans from South America region.
● Gold Origins Uganda- Blend of Arabica and Robusta Coffee Beans.
The Classic is range is the most proffered and has two blends the Nescafe Classic and Classic Decaf.
The Mixes are pre mixed single serve Sachets that gives the authentic taste experience.
The ready to drink is the cold coffee which one can enjoy on the go picked from a retail store.
The Azera Americano is to enjoy the Barista-style coffee which gives intensely satisfying coffee aroma
and a roasted coffee taste.
Aside from coffee, the company has pioneered and developed 'contactless' coffee dispensers for its
consumers.
 Price
The cost of a product is determined by the company's ability to
supply high-quality materials. It is influenced by competition and
demand. The products are of excellent quality and are reasonably
priced. However, they have gradually built a customer base for it.
Nescafe has undergone significant portfolio adjustments, and new
items are now available, giving customers a wide range of options.
They offer a variety of flavours and quantities, with pricing
varying according to the packaging. Depending on the pricing, the
volume given to customers varies. Because the products are
affordable, this programme has attracted a larger range of clients.
The sachets can be purchased for a very modest cost. They are
aimed at clients who would rather have a single cup of coffee at a
low price. Because individuals stayed at home during the
pandemic, instant coffee mix sales increased.
 Place
Nescafe is a brand that is known to create and communicate value
for a target market that that desires quick and immediate coffee.
Nescafe itself is a brand that serves the target market who are into
small break talks.

For example, College kids that have a 5 minute window break for
their next class or Working professional who would just want to
catch some air. Nescafe positions itself as a pop store in such a
strategic location that serves the said target market.
Nescafe serves as a pop-up store in most cases and serves a limited
number of its product. A person ordering a coffee in a cafe or
restaurant would ask for a different variety of coffee such as latte,
cappuccino, americano, etc. But at such a strategic pop store, the
consumer has the basic need to fuel itself for the day thus only ask
for coffee which is served in a small disposable cup most of the
time. Nescafe through this place has positioned itself as a small
power punch coffee to energies oneself for the remainder of the
day.
 Promotion
Nescafe promotion is targeted at the young audience, the common
man, and the working professionals. Its advertisement is always
targeted at the audience who wants to make changes in themselves
for the better, who are looking to push forwards their limits and it
depicts that the best way to do it is to keep yourself alert and
energized.

Nescafe has done an exceptional promotion by advertising itself

through diversified channels, one of them is Nescafe Basement.
Nescafé Basement is a Pakistani music television series that
features live studio-recorded music performances by underground
artists, where great bands such as Jal, Soch, Jahangir Niazi, etc
have given exceptional promotion.

The start of the series is by placing the Nescafe logo and its tagline
#Jaagnatohpadegahi
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Diverse Market Strategies

● Nescafe has positioned itself in India as a

premium instant coffee brand for a fast paced
life of the younger generation.
● It associates with instant energy and
freshness targeting the young working
professionals.
● Nescafe has captured the Indian essence by
introducing Nescafe Classic for north, east
and west and Nescafe Sunrise for south.
● Nescafe has positioned itself as a brand
that focuses on all segments of society
equally. From young cafe culture
segment to higher income to middle
class consumers.
● They have targeted each segment with
different set of products.
● They have diversified by introducing
various flavours like Nescafe Gold,
Blend 43, Espresso, Caramel latte,
Mocha.
Diverse Market Strategies
● Nestle first entered the Japanese Market through sweets(KitKat).
● As a country that has tea ingrained into their culture, nestle had to get
creative as to how they were going to enter the market where a whole
country does not consume or are attracted to coffee.
● Hence they realised the perfect way to enter is to establish
themselves as a major brand in the market, which led to them
starting localised KitKat which gained a lot of popularity.
● Following the wide success of KitKat, Nestle started a program called
as Nescafe Ambassador.
● This led to a revolution where a country which has tea as a drink
ingrained into their culture has adopted a totally new drink and is
now the 3rd largest importer of coffee in the world.
Thank You