Nescafe
Table of Content
Business Objective
Strategic planning
Situational Analysis
Competitor analysis
Marketing Objective
SWOT Analysis
Target market
5 Promotional Recommendations
Business Objective
In line with its business principles, Nestle which is the company that owns Nescafe aims to offer customers the Nutrition, Health and Wellness, which promotes healthy balanced eating; developing products with high nutritional value, great taste and quality. The main objective is the value for the benefit of society in a sustainable way, while working every day to make the company more competitive in the long term, as Nestle adds value to society, while improving their own business practices, creating value also
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• Cheap coffee, Starbucks is rapidly progressing in the global coffee market and is gaining popularity in countries like China, and tt is gradually making its way into the instant coffee market.
• Maxwells Coffee was established in 1892 by Kraft. Currently the number one competition to Nestle is Kraft and it is the second largest market share in the coffee industry.
SWOT Analysis
Strengths:
-It’s considered a strong brand name because it is associated with Nestle -Marketing campaigns are extraordinary and fascinating -There’s a diversification in their products that consists of many flavors and accordingly segmented -Their financial position is strong -Internationally known brand with a great reputation in the worldwide market -Excellent in marketing, Promotion, Placement , Product and Pricing strategies -Healthy products are created with nutritional values -overall the products have good quality control overall
Weakness: -Nowadays many Individuals avoid caffeinated products when they are conscious about their health -paying a lot of sales and indirect
While there are various brands such as: Folgers, Maxwell House, and Chock Full O’ Nuts you can typically find everyone carrying a Starbucks or Dunkin’ Donuts cup. Starbucks and Dunkin’ Donuts are the top two competitors when it comes to coffee. I personally am caught between the two. On one hand, you have Starbucks, they have great tasting coffee but is very overpriced. Dunkin’ Donuts while doesn’t have all the flavors Starbucks has, is less than half the price of Starbucks. The amount of money you pay for a small ice coffee in Starbucks you can get a large one at Dunkin’ Donuts.
Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material
Referring to the message from the chairman of Nestle towards their shareholders, one of the corporate strategy implemented in Nestle according to the annual report of 2013 is to Creating Shared Value (CSV). CSV is not only a principle for guidance but also the core of Nestle and the keyword for the founder to successfully developed Nestle into a well known company. CSV is the major approach for the Company to take the business as a whole. They not only focus on the nutrition but also water, environment and rural development. This clearly explained that Nestle also managing their commitment towards the environment, economic and social.In Nestle, the company subscribed in CSV not only focus on the social responsibility and development but also focusing in how to create a long-term value towards their shareholders by creating
To further develop, produce and market the Nespresso system, a separate company was created. The new business involved selling coffee, something Nestle were already the market leader. The company’s top management decided early on that the similarities between the two businesses were more illusory than real. Nestle were selling instant coffee to the mass market but Nespresso specifically targeted wealthy and young urban professionals, positioning itself as an upmarket brand. Nespresso adopted a business model more akin to a luxury goods manufacturer, not only were the two business models different, they potentially conflicted as Nespresso could be cannibalizing the sales of Nescafe, while the values and attitudes of the Nespresso organization were the exact opposite of those in the traditional Nestle organization.
The Hershey Company is the largest chocolate producer in the United States. They are a global producer of chocolate, confectionary sugar, candy, and other chocolate-related grocery items. Hershey was founded in 1894 by Milton Hershey (Key, 2015). In 1900, the company started producing milk chocolate in bar form, wafers, and other shapes. Since there was mass production, Mr. Hershey was the first American to develop a formula for manufacturing affordable chocolate. In 1907, the famous Hershey Kisses was hand wrapped and introduced. H.B. Reese was a former Hershey company employee, in 1923, he discovered the goodness of chocolate covered in peanut butter known today as Reese’s candy. Later in the 90’s, several more widely known candies were formed such as Krackle and Mr. Goodbar. In 1977, the famous Twizzlers licorice was acquired as part of Y&S Candies. Through all of Hershey history, it is still the leading manufacturer of quality chocolate (Our Heritage, n.d.). The entirety of Hershey's mission statement reads, "Continuing Milton Hershey's legacy of commitment to consumers, community and children, we provide high-quality HERSHEY's products while conducting our business in a socially responsible and environmentally sustainable manner". Hershey Company’s vision is to be “The world’s first choice for chocolate everywhere, every time.”
Study shows that U.S. per capita coffee consumption has not really varied in over 15 years. Although the consumer has since evolved from regular brewed coffee to a more sophisticated gourmet brew, the overall intake for coffee has relatively remained the same based on the Gallup polls. (Brown, 2015) The Starbucks Company has managed to change the pallet of the consumer by the type of coffee they distribute. Companies like Dairy Queen, McDonalds, and Dunkin Donuts have had a complete coffee menu makeover in hopes to keep pace and their customer base. (Cowan, 2014) (Company Profile, 2015) Since 2003 there has been a noted growth of coffee import to the United States (U.S.), regions such as New York, Miami, New Orleans, Houston, and San Francisco have become major ports on handling imported coffee. The United States have increased their secondary countries in Latin and Central America in order to meet the demands of coffee beans here in the U.S. (Plume, 2003)
Peet 's Coffee and Tea is a well-known and loved coffee shop with three stores here in Colorado. Although the prices and work space isn 't the best they offer great, quick drinks served by friendly employees. The store is a place for a comforting, warm place to sit. Peet 's Coffee was started by Alfred Peet in 1966 and his coffee was unlike any other coffee shop. He brewed in small amounts, always had fresh beans, a great quality, and a dark roast. This all produced a coffee that was rich and complex, and still is today.
Nestle Nescafe Original 3 in 1 is a product which is categorized in monopolistic competition market. The firms that involve in producing Nestle Nescafe Original 3 in 1 can obtain advantages and disadvantages of selling this products under a monopolistic competition market.
Nestlé has formed a well-defined roadmap to achieve its global mission statement "Good Food, Good Life" (Nestlé, 2013). Nestlé chief goals and objective is creating shared value for shareholders while at the same time also create value for society (Nestlé, 2013). Nestlé also take a long-term view, to develop principles and values that are based on respect for people, environment and the world we live in (Nestlé, 2013). Besides that, it has developed to mark their achievement that is become the benchmark of nutrition, health and wellness, sustainable financial performance and trust by all stakeholders (Nestlé, 2013). In order to maintain its goals and objective, Nestlé apply three different corporate strategies which included operational pillars, growth drivers, and competitive advantage (Nestlé, 2013). In the operational pillars strategy, there are a sub strategy is innovation and renovation. Nestlé want to be a leader in innovation and renovation no matter in products, systems or processes. They wish there are some products will be entirely new and refreshed aspect (Nestlé, 2013). Therefore, Nestlé has using their creation of Nestlé Health Science to forge a major therapeutic role for
Nestle is the world’s leading nutrition, health and wellness company. From Henri Nestlé’s humble beginnings with the first product, Farine Lactée, which revolutionized infant feeding, the company’s priorities have remained the same -about bringing high quality, safe and nutritious foods and beverages to people through all stages of life. In Nestle’s pursuit of delighting and satisfying the customers, Nestle’s products are adapted to meet local, regional taste preferences, religious and cultural sentiments and disparities in purchasing power.
Nestlé is the global leading nutrition, health and wellness company based in Switzerland. Its product line includes baby food, breakfast cereals, coffee, confectionery, dairy products, frozen food, pet foods, yoghurt and snacks with high revenues making it the world’s largest food company. Nestlé operates in 197 countries with over 340,000 employees, in 2014 its group sales account CHF 91.6 billion (USD 99.9 billion), whereas its trading operating profit is CHF 14 billion (USD 15 billion). “The Group’s net debt fell from CHF 14.7 billion to CHF 12.3 billion reflecting strong free cash flow during the year at CHF 14.1 billion more than offsetting the payment of the dividend of CHF 6.9 billion and the initial phase of the current share buy-back programme” (Nestle, 2014).
Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it
There are plenty of opportunities which exist for Starbucks in the international markets. In countries with growing economies, such as the BRIC nations (Brazil, Russia, India and China), there are growing upper and middle classes that want to spend money on specialty coffee. Some of these countries are traditionally “Tea Drinkers” that are expanding their tastes to include coffee.
According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.
Their main goal is they endeavour to bring buyers sustenance’s that are sheltered, of high calibre and give ideal supplement to address physiological issues. Nestlé gives choices to all individual taste and way of life inclinations.