An Analysis Of Coffee Nespresso

|market, according to Winer and Dhar “Positioning takes the competitive advantage and plants in the mind of customer so that it is clear what |

ii) Marketing strategies can be segmented into different types of clients. This increases efficiency and reduces costs.

How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

Today, a cup of coffee can be found on every houses world wide and with different kinds of coffee, such as espresso, cappuccino and latte. 'value' is the way in which the consumer views an organisation's product in comparison with competitive offerings. There are so many kinds of coffee world wide, but the most famous one is the instant coffee . and one of the famous brands on that is Nescafe.

Organizations usually employ market segmentation in competitive markets for appropriate targeting of customers. This paper provides an analysis of how market segmentation can be utilized for competitive advantage as well as the need for ensuring diversification for sustainable growth.

Developments of a more appealing offer for each segment so that the customers are more likely to be delighted or at least satisfied. Positioning is the process of placing the product in a clear distinctive and desirable place in the mind of the competitors in order to gain an upper edge.

The selection of a theme is to produce the best cup coffee while the customer waits a minimum time. Starbucks has a great deal of competition in the coffee business. Starbucks is

As every customer has unique needs and expectations towards certain products, the ultimate goal of market segmentation is to organize customers into groups which allows targeting of customers with similar needs of and response to the products. The key is to minimize differentiation within each segment

* Targeting different segments could mean create different positioning strategies for each segment. This could lead to confused positioning among the customers

However, Nescafe’s product involvement strategy goes even further; it wants consumers to experience the aesthetic perception of the nice packaging and hedonically enjoy various tastes and preparing options it offers (Montgomery, 2014). By carefully paying attention to the latest changes in consumer preferences, Nescafe was successful in making its consumers feel highly involved with its products. Due to its presence all over the world, the brand learned that acculturation is a much better strategy than global standardization. Thus, when it comes to Nescafe there is no global mass customization, but rather a regional-based mass customization. Nescafe has an almost aggressive worldwide strategy when it comes to consumers experiencing the product. The consumer is supposed to be able to consume Nescafe products everywhere, whenever possible and the way she/he wants to consume it. Nescafe is present in most of the Croatian bars/coffee shops in either coffee-to-go or in a regular consuming option . Nescafe is also present in most vending machines allowing the consumer to choose from various tastes and choices to satisfy her/his needs. All things

Positioning is the process of designing the company’s offering and image to occupy a distinctive place in the minds of the target market (Kotler and Keller, 2006). Scientists Etzel, Walker and Stanton (1997) refer positioning as the management’s ability to bring attention to a brand and to differentiate in its favorable way from similar products in different brands. However, Ries and Trout (1986) emphasizes that positioning is not what is done to product/brand, positioning is what you do to the mind of the prospect. According to Vukasovic (2009), the positioning of a brand is ultimately depends on the consumer, and how they perceive the overall quality, attributes, value, price, and image of the brand. In short,

As we all know each and everyone in this world has their own needs and wants and from that we can tell that people’s needs and wants are met in different ways. Therefore in this situation, companies have to make desicions on how to attract their target customers. This can be done through market segmentation in order for the company to achieve their target.

There are 4 different types of market segmentation and all of them vary in their use in the real process. Let us talk about each of them briefly.

‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so

Adapted from Thomas V. Bonoma and Benson P. Shapiro, Segmenting the Industrial Market (Lexington, MA: Lexington Books, 1983).