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Marketing Mix of Nescafe Essay

Marketing can be defined as the process of introducing a product or service to the world for the purpose of selling that product or service to the customers. Without marketing, product or services cannot be successfully provide value to customers based on their interests, needs and preferences. Marketing not only based on the selling of a products or service, but also understanding the needs of the market and research and find whether their product meets customer’s needs or not and Improve. For the successful marketing of product and services we used different marketing techniques. For instance, most of the well established firms are using the techniques like marketing mix, target market etc.

The Concept of Marketing Mix. Borden began using the term in his teaching in the late 1940’s after James Culliton had described the marketing manager as a “mixer of ingredients”. The ingredients in Borden’s marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories. These are the 4 P’s of Marketing Mix .These four P’s are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P’s on the customers in the target market in order to create perceived value and generate a positive response.

Marketing mix is an important technique in marketing. By researching the market, the organizations identify the most suitable marketing mix. The marketing mix should consist of the right product sold at the right price in the right place by using the attractive promotional technique.

In this assignment, am making an analysis of Nescafe by taking into consideration of 4Ps of marketing mix. To analyze the different products of Nescafe
To analyze the distribution mix of product
To study the pricing strategy taken by the company
Finally, to analyze the different promotional method they used. Let’s see the evolution of the product.
History of Nescafe

The NESCAFÉ coffee you’re enjoying today is a perfect brew of the brand’s long-standing history, Nescafe begins at 1930. When Brazil had a substantial surplus of coffee, and needed help preserving it for Nestle. Upon the request of the Brazilian government, NESTLÉ began abrewin’! Our coffee specialist, Max Morgenthaler, and his team had a simple proposition – a delicious cup of coffee by simply adding hot water. With this guiding principle, the team worked hard to find a way to make soluble coffee that would not lose out on the coffee’s natural flavor. Seven years later, they found the answer. NESCAFÉ was finally ready. Named by using the first three letters in NESTLÉ and prefixing it to café, NESCAFÉ was the brand new name in coffee. First introduced in Switzerland, on April 1st, 1938, it was anticipated to be a huge success throughout Europe. However, because of World War II, its popularity took longer than expected. Soon after the first half of the next decade, NESCAFÉ was exported to France, Great Britain, and the USA.

American forces played the role of brand ambassadors in Europe, because NESCAFÉ was a staple in their food rations. Instant coffee processing was invented by Japanese chemist in1901. Nestle revolutionized the way of instant coffee was made. Later nestle invented the process for dehydrating the concentrated coffee for improving the quality of coffee. On the next decade, Nescafe exported to France, Great Britain and USA. Its popularity grew rapidly and the production of its US plant was reserved for Military use. On 1950 onwards, teenagers one of the choice was coffee. Over the year the company concentrates in new innovation then, they introduce pure soluble coffee in 1952, roast coffee beans, and freeze dried soluble coffee in 1965. For improving the quality again they invented aroma process. These innovations help to Nescafe to the world leading coffee brand. Target market

Target market is a group of customers, who has the potential to buy services and products. The main strategies of the marketing are identifying the target market. The producer has to manufacture their products based on the customer’s needs and want and also implementing the marketing mix to satisfy its target group. Target market can be separated on the bases of demographic, psychographic and geographic. Target markets of Nescafe’s are coffee drinkers, specifically those who made coffee at their own home. So Nescafe offers a 100% pure coffee to the customers. Demographic factors

Age: In the past, Nescafe focused on morning peoples only but now they are mostly focus on youth having the age of below 35 year old. Gender: The coffee drinkers are not to be classified on the bases of gender because both genders use the product. Education: A person who has the average level of education can easily grasp the method of instant coffee making. Income: The target group of the product is the peoples with average income and above. Family life cycle: all stages of families can use this product.

Psychographic Factors

Brand Consciousness: some of the peoples who prefer branded product only. So they prefer Nescafe. Nescafe is one of the leading brands in the world. Health Practice: peoples who want freshness in the morning or evening, they use coffee. Life style: The target markets of the Nescafe are peoples who lead the standard life style.

Geographic Factors

Region: Nescafe is mostly popular in the urban and semi urban areas. Density: Nescafe always focused on high density of population. In these areas the usage of the product is higher.

Marketing mix
Marketing mix is an important technique in marketing. By researching the market, the organizations identify the most suitable marketing mix. The marketing mix should consist of the right product sold at the right price in the right place by using the attractive promotional technique.

The term product means anything that can be tangible or intangible, offered by the company. The company is mainly focused on customer needs and wants. Based on the value of the product, the customer should satisfy with the quality of the product. (Boundless) Nescafe is the one of the world largest leading coffee manufacturing company. They give valuable products to customers. They provide a wide range of coffee products for coffee lovers. Let’s see the different varieties of coffee product in the market.


Nescafe classic:
Nescafe Classic coffee is leading coffee powder that’s loved all over the world. Nescafe classic is a coffee that is for everyday use. It is a powered form and made with 100% of genuine coffee beans. No other ingredients are added to this product. Nescafe classic gives comfort and motivation. It can be prepared by simply few steps. Just take a spoon full of coffee powder and mix it with hot water and also add sugar to it. Now your coffee is ready. so every morning and evening it gives freshness to the mind. It contains 269 kj energy, 27g fiber and 25 g ant oxides per 100g packet. So this product is good for the health (Nescafe) . In an 8 ounce bottle produce 135-150 cups of coffee. Nescafe 3 in 1

Nescafe 3 in 1 is coffee is the combination of whitener and sugar along with coffee. So it gives a different taste with other. Some peoples are most likely to have coffee with milk. So Nescafe made this product for coffee lovers who like coffee with whitener. It contains 1758 kj of energy and 73.8g carbohydrate. Super premium coffee:

Nescafe Alta Rica:
Nescafe Alta Rica is the super-premium product of Nescafe and it is a full bodied instant coffee. It contains 100% pure Arabica from Latin America. (Coffee Arabica is the species originally from highland of Ethiopia (wikipedia)). It is made from pure and natural coffee beans. It has intensive flavor and deep, rounded taste (Tesco).Nescafe Alta Rica is a slightly bitter and roasty finish coffee. Nescafe Alta Rica instant coffee rated 9 out of 10. It contains between 80-100 mg of caffeine per cup. (discount coffe.co.uk) Nescafe Cap Colombia:

Nescafe Cap Colombia is another super premium product of Nescafe. It is the smoothest and fruitiest coffee in the Nescafe collection. It contains only 100% Arabica beans from South America. Roast the Arabica beans and create a medium bodied coffee taste. It has a fruity aroma. It also contains 502 kj energy and 34.1g fiber nutrition. This product is good after dinner coffee. (dicount coffee)

Nescafe Espresso:
Nescafe espresso is the one of the exclusive range of product in Nescafe collection Range. It is made from 100% Arabica beans, this instant coffee is so convenient and yet so flavorful. It is dark, juicy and aromatic taste. It contains 484kj energy nutrition and 21.5g antioxidants.


Nescafe Gold:
Nescafe Gold is the coffee lover’s coffee. It contains Arabica and Handful of Robusta Beans added for getting a smooth rounded taste. The roast they bring to Gentle Caramel flavors and finally getting a juicy aroma. It contains 269 kj energy nutrition and 27g fiber nutrition.

Nescafe Green Blend:
Nestle New Zealand has launched the Nescafe Green blend coffee.it contains 70% more antioxidants polyphenols than green tea. Nescafe Green Blend is a product made by unroasted green coffee beans and roasted coffee beans. This product has a high rate of polyphenol antioxidant (polyphenol anti-oxidant is an oxidant polyphenolic or natural phenol substructure. (wikipedia)). So this product is very helpful for maintaining the body in good health over time. It is specially created by coffee experts for health benefits. (Nescafe)

Nescafe Cappuccino:
Nescafe Cappuccino is an Italian specialty coffee conquered the heart of people. It contains soluble coffee with whitener, sugar and topping. It is made of third of espresso (espresso is coffee brewed by forcing a small amount of nearly boiling water under pressure through finely ground coffee beans (wikipedia)), a third form of hot milk and third form of frothy milk. There are two variant of cappuccino. They are cappuccino chiaro and cappuccino scuro. Cappuccino chiaro made with more milk which is also called white cappuccino and cappuccino scuro is made with less milk which is also called dark cappuccino it also contain 1641 kj energy nutrition and 69.6 g carbohydrate with sugar.

Decaff coffee:
Decaffeinated coffee is a coffee that removes the caffeine by the process of decaffeination. The following picture depicts the decaffeination process:

Nescafe classic Decaff:
Nescafe classic decaff is a powered coffee after the safely removal of caffeine.it contains 100% decaffeinated coffee beans with refreshing taste. It contains 269 kj energy nutrition and 27.0 g fiber nutrition.

The second important criterion in marketing mix is Price. Price is the amount of money that customers pay in order to purchase a product. Price is very important to determine the company’s profit. Marketers should ensure the products price correctly based on the competitive products. Before setting a price marketers must aware about the value of the product. When considering the price of the Nescafe product. The company set the price in well-established pricing manner. The table below depicts the pricing strategy of the Nescafe product.

This refers to the area where the ready product is to be supplied. There must be a proper place to keep the ready food products where the buyers are available. Besides the place, allocation and arranging of the product also has its own importance in attracting the potential buyers. Place also refers in making available the product at right time too. Customer makes decisions based on convenience and invests little effort in choosing Nescafe, since it is a convenient product. Intermediaries play a significant role in Nescafe distribution and exposure of the product to the potential customers. An intermediary constitutes stores like supermarkets, superstore, wall mart etc. Fig 24 (food basics)

Promotion is the last step of marketing mix. Promotion refers to increase the customer awareness of the brand or particular product and through this awareness they generating more sales and promoting the brand name into higher level. Promotional activities are very important for every product. Nescafe is the leading coffee brand in the world. This brand image is boosted up with different promotional activities at different times. There are different promotional activities for promoting their products and brand name. They are : Advertisement

Advertisement is the one of the tool to encourage the audience. Television advertising and online media advertising are the two important advertisement used by Nescafe. The main aim of the advertisement is give awareness about the product to the public. Nescafe used different advertisement in social media, online advertisement, television etc.

In store promotional activities:
In store promotional activities are those activities done in the store for promoting the product. Nescafe used different in-store promotional activities. They are Poster (brodericks):

Bill board (global advertisie):

Attractive offers:

Nescafe provides attractive offers to customers for promoting the product. Buy a 200g Nescafe gold and get 1 travel mug for free. (theodmgroup)

Attractive packing:
Nescafe products are packed attractively. This is the tool to attract the customers for buying that product. So Nescafe used different packaging for attracting the customers. Example: (free range)

Through the detailed study of Nescafe, it was able to get a clear picture about the various products of Nescafe and the marketing technique adopted by them. It also helped to know about the history of the company. The success of the product lies in the organization and coordination of 4 P’s. They are
product, place, price and promotion. Nescafe attract the customers by their brand name, product packaging and advertisement. It also conquered the beverage market of the world. Pricing tactics helps the product to fight against the competitors. Nowadays competition in the beverage market is too tough. However, they don’t give any reduction in the quality of the product. The promotional activities have done by Nescafe covers all means of promotions tools like online-advertisements, television, radio, social media etc. Through the publicity campaign they are trying to improve their brand name into higher level and within years they will become the top one coffee manufacture in the world.

Works Cited
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