MBA404: Nescafe - Consumer Behavior, Marketing Analysis & Strategies

This report provides a detailed marketing analysis and market communication mix for Nescafe, aligning with prior research on consumer behavior. It examines the company's overview, the 4P marketing mix (Product, Price, Place, Promotion), and market communication strategies, including advertising, personal selling, discounts, public relations, direct marketing, and event sponsorship. The analysis reveals that while Nescafe effectively promotes the taste of its coffee, it may be overlooking health-conscious consumers. Strategic recommendations include establishing an online selling platform, strengthening distribution channels and supplier relationships, and implementing more frequent promotional offers to enhance consumer base and revenue. The report concludes that by focusing on these strategies, Nescafe can maintain and expand its market presence amidst competition.

Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author Note

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Table of Contents
Executive summary.........................................................................................................................2
Company overview of Nescafe........................................................................................................3
Critical analysis...............................................................................................................................3
4P marketing mix of Nescafe......................................................................................................4
Market Communication Mix of Nescafe.....................................................................................5
Strategic recommendation...............................................................................................................8
Reference List................................................................................................................................11

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Executive summary
The purpose of the report is to conduct a detailed marketing analysis and market communication
mix on the bran Nescafe keeping alignment with the previously conducted research on the
consumer behavior of the same. The chief objective of the brand is to satisfy the taste bud of the
consumers. The brand has introduced various brand of coffee keeping in mind the demographic
needs of the consumers. Considering the fact that the chief focus of the brand during promotion
includes the taste of the coffee, the company is losing the attention of several health conscious
consumers. In order to conduct the analysis of marketing strategy of the mentioned FMCG
product 4P marketing mix will be conducted. Not only that, a brief overview of Nescafe will also
be provided in this report. Along with analysis, strategic recommendations so that the company
can enhance its consumer base as well as review to a great extent will also be provided in this
report. The strategic recommendation includes the Nescafe brand need to establish its own online
selling platform in order to attract more global consumers as well as local consumers. Secondly,
given the huge market demand of the product, the company should strengthen its distribution
channels as well as suppliers. Finally, Nescafe should more often launch attractive offers and
discounts so that more and more consumer can buy the product. This tactic will not only enhance
the consumer base of the company but will also ensure an enhancement in the revenue of the
brand.

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Company overview of Nescafe
Nescafe is referred to a highly popular brand of coffee whose parent organization is
Nestle. Being a Fast Moving Consumer Goods the mentioned coffee comes in different forms.
Both the company as well as the FMCG product is highly popular all over the world. Thus it can
be easily understood that the company posses huge consumer base. Nestle had developed the
mentioned brand in the year 1930 with the help of initiatives taken from the Brazilian
government. Being a sustainable company, one of the major objectives of the company was to
help the Brazilian farmers prevent wastage of the substantial surplus of the annual coffee harvest.
In the year 1938, Nestle introduced the new product under the brand named Nescafe. Nescafe is
a soluble powdered coffee that had become America staple food during World War II. In the
year 1965, the company invented another version of coffee under the brand name Nescafe gold
which was freeze-dried coffee (Das 2014). Over the year several marketing techniques has been
adopted by the mentioned organization some of which had helped the brand to gain high
popularity. Currently the company sells its products across 189 countries. Its vast global
presence along with its high brand reorganization is considered as two of the chief reasons
behind its yearly profit. In this report, demonstration of the understanding as well as application
of various consumer behavior concepts and theories will be performed by analyzes the facts
gathered in assignment 2. Based on the analysis, three strategic recommendations will also be
provided in this report.
Critical analysis
In order to analyze the current marketing strategy of the mentioned FMCG product, in the
following paragraph, 4P marketing mix has been performed.

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4P marketing mix of Nescafe
Product
Being a recognized brand of one of the most successful company across the world,
Nestle, Nescafe is currently the market leader in the instant coffee industry. The chief objective
of the brand is to satisfy the taste bud of the consumers. The brand has introduced various brand
of coffee keeping in mind the demographic needs of the consumers. Nescafe offers the
consumers with various types of coffee that includes Nescafe original bend, Gold Blend Decafe,
Gold Blend and others. Even the Decafe blend posses lots of types like Half Decafe. Various
types are also available when it comes to cappuccino that includes unsweetened, Skinny and
Decaffeinated (Sparks 2014). In order to satisfy the taste of all the consumers and cater to all
types of coffee lovers across the world Nescafe has introduced express, latte of different kinds of
blends, vanilla, mocha, Irish cream and others. Thus it can be stated that the information
obtained from the previous research that Nescafe caters to all.
Price
The price of the product offered by Nescafe depends on its quality. Considering the fact
that the target consumer of the company is chiefly the middle class as well as higher middle class
population, the price range of Nescafe is not kept too high. The price mainly depends on the
blends (Mortimer 2016). For instance the price range of Nescafe gold is a little higher than
Nescafe original. In order to cater to even the lower middle class consumers, Nescafe sells their
product in the form of sachets which will be affordable to them (Rosin, Stock and Campbell
2013).
Place:

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Nescafe has gained high popularity due to its brand reorganization and global presence.
The Brand is present in 189 countries. Along with majority of the developed country, the brand
is present in a good number of developing countries like India and China. The organization
maintains a vast distribution cycle and hence is available at both metropolitan cities and
underdeveloped suburbs. The technique of distribution followed by the company is similar to
other typical FMCG company. Majority of the products are supplied through retailers who
distributes the products to local shops as well as international retail stores.
Promotion
Nescafe emphasizes on the promotion since successful promotion is of the chief reason
behind its worldwide reorganization. They makes it sure that they have made all possible
communication possible for the consumer to enhance the awareness of their products. They uses
both offline as well as online media for promoting their coffee. While offline product includes
radio, television, PR activities. Newspapers and others, online promotion includes pay per click
advertisement, search engine pop ups and promotion through social media platforms (Badland et
al. 2014). Online promotion and PR activity also enhances the connections with the customers
and they get to know the products closely. The company mainly focuses on the taste its various
blends of coffee offers to the consumers. However, as per survey, approximately 75 percent of
the consumers are found to prefer being aware of the nutritional value of the product.
Market Communication Mix of Nescafe
Advertising
Nescafe invests highly on Advertising. The total expanses of 2017 that has been spent by
the company includes 112.3 million USD (Jones and Morgan 2014). Pint as well as media

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advertising represents the core of promotional technique of Nescafe. Considering the fact that the
organization is present globally, online advertising is a major promotional too of the mentioned
brand. In order to enhance the awareness of the product and communicate directly with the
consumers, the Management of Nescafe uses popular social media platforms like facebook and
LinkedIn in order to enhance the awareness of the consumers as well as to understand their
specific requirement from the brand.
Personal Selling
When it comes to personal selling the mentioned brand uses distribution channel
suppliers in order to reach the products to the end consumers. The role of distribution channel
suppliers is to supply the products to the retailers who finally help the product reach the end
consumers. The company also recruits salesperson to promote the products and services to the
consumers directly by organizing campaigns. Along with that, in order to establish and maintain
direct contact with the consumers, the company uses social media platforms. Besides that regular
blogs and advertising videos are posted in the official site of the same.
Discounts and promotions
Considering the fact that the mentioned organization is a highly recognized one, no
frequent discounts and offers are offered by the Nescafe Company to its target consumers.
However, during festive season like charismas and new year, in order to gain competitive
advantage, New year offers discounted price to its consumer (McEachern 2017). The form of
promotional offers given by Nescafe includes percent-off deals, rebates, coupons and others. The
management of Nescafe uses both offline as well as online media in order to promote deals and
mail coupons to its loyal as well as target consumers. the brand uses exterior signs as well as

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instore signage to draw consumer attention towards the discounts (Australia 2014). The chief
objective of the management includes enhancing the revenue as well as the cash flow as well as
attracting new consumers.
Public Relations
The public relation of the company is quite well-maintained. The chief sources of public
relation includes televisions, newspaper and social media platforms. According to researchers,
the chief difference between advertising and unpaid public relationship sources the management
of the brand posses no control over the massage conveyed to the consumers (McEachern 2017).
Since nestle is a highly sustainable company, no major scandal has been promoted by the PR
media.
Direct marketing
Direct marketing includes both the aspects of sales promotion as well as personal selling.
It can be defined as an interactive communication tool with the consumers where the massage of
the company seeks or implores a response from the targeted consumers (Mindrut, Manolica and
Roman 2015). For direct marketing the two chief strategy used by the Nescafe company includes
the email as well as direct mail. These massages are sent to the consumers with special offers or
calls so that the consumers can know about the limited tie deal as well as new product launches
(Insch and Cuthbert 2018).
Event Sponsorship
Event sponsorship is considered to be a major tool for promoting a brand and gain
competitive advantages over the competitors. Nestle provides sponsorship opportunities to

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events that are focused on social issues like water, rural development as well as nutrition. Being
a popular brand of Nestle, Nescafe also sponsors social events. This in turn, not only enhances
the good will of the company but also enhances the awareness of the consumer about the brand.
Strategic recommendation
From the above discussion, it can be clearly understood that Nescafe is one of the most
popular coffee brand across Australia. However, due to high competition from its consumers like
Brew, Mount Hagen and Douwe Egberts, the management of the organization needs to follow
the bellow mentioned strategy in order to maintain as well as enhance its consumer base in the
following years.
1. Firstly, the Nescafe brand need to establish its own online selling platform in order to
attract more global consumers as well as local consumers. Online selling platforms help
an organization to obtain a hug pool of consumers. Considering the fact that the
mentioned FMCG brand already cater its consumer through online marketing sites like
Amazon, big basket an others, given the huge popularity of the brand, the company
should invest on opening its own online store where it will be able to cater to the huge
number of online consumers (Peck et al. 2013). Having own online store will lower the
investment of the company on third party logistics and this in turn will enhance the profit
of the company. Not only that, the company will also be able to track the specific
preferences of the consumers. This tracker will help the company to understand that
popularly of the blends (Vorley, Fearne and Ray 2016).
2. Secondly, given the huge market demand of the product, the company should strengthen
its distribution channels as well as suppliers. From the above discussion it can be clearly

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understood that the demand for the product is gradually increasing. Hence the company
needs to posses the capacity to meet the demand of the consumers. The current inbound
and outbound logistic of the company as well as the supply posses the risk of failing to
meet the same. Inability to meet the demand will have both short term as well as long
term consequences on the company (Lockrey 2015). The short term consequence
includes loss of potential revenue, while the long term revenue includes reduced
consumer base of the same. In order to prevent this, Nescafe should invest on enhancing
its number of suppliers as well as enhancement in the quality of inbound as well as
outbound logistic of the company so that it can deliver its products to each and every
outlets as well as to individual consumers within the stipulated amount of time.
3. Considering the fact that the chief focus of the brand during promotion includes the taste
of the coffee, the company is losing the attention of several health conscious consumers.
These consumers are opting for tea or green tea instead of Nescafe considering that the
former is healthier option than the latter (Ravensbergen et al.2016). This fact has the
potential to be highly risky for the brand. Due to obesity issue, majority of the population
of Australia are getting inclined towards a healthy lifestyle. In order to eradicate the
issue, the brand should convey more campaigns as well as promotional events that will be
entirely focused on the health benefits of coffee. In order to peruse the consumers, the
company can also take the help of healthcare professions who will educate the target
consumers of the brand bout the important of consumption of coffee on a regular basis.
4. Considering the fact that the brand solely focus on delivering the best quality product to
the consumers. the price range of the product sold by the Nescafe Company is a little
higher than its competitors (Parsons 2013). This fact has the potential to impose adverse

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impact on the competitive advantage of the company. In order to deal with that, Nescafe
should more often launch attractive offers and discounts so that more and more consumer
can buy the product. This tactic will not only enhance the consumer base of the company
but will also ensure an enhancement in the revenue of the brand.

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Reference List
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