Analysis of the overall marketing strategy of Nescafe from buyer’s
perspective:
Strengths of marketing strategy of Nescafe:
Brand Equity: Nescafe’s brand value is $17.4 billion and is the largest brand in the Swiss
giant portfolio. Also, it is the brand of Nestle so it also possesses a strong financial backing and
availability of resources.
Quality: Nescafe is a good quality product and has managed to stay away from controversies.
They have stringent quality control techniques and have managed to develop a strong bond with
its customers.
Diversity: It possesses a large diversity in terms of tastes, the strength of coffee content and
types of coffee beans used in the production. This gives them a large variety of products to suit
different tastes of customers.
Excellent Promotional Campaign: Their promotional campaigns have always remained
popular. They gain visibility very quickly. They touch the strings of heart perfectly. Their
advertisements are meant for common people and resonate with their daily problems.
Economies of scale: They are quite simply the largest coffee brand in the world. Furthermore,
they are from the house of Nescafe due to which they enjoy the enormous resources at their
disposal. They use the same distribution channel which exists for Nescafe and hence their
expenses on distribution is very less also. Due to this economies of scale, Nestle has a good ROI
and margin.
Weakness of marketing strategy of Nescafe:
Health Consciousness: People who are more considerate about health they tend to move away
from caffeine content drinks.
Indirect competition: Indirect competition like Tea, carbonated drinks and other beverages
takes a lot of market share from Nescafe. It is widely accepted in USA because USA is a coffee
drinking country. But there are many other countries where tea is preferred over coffee.
Opportunities of marketing strategy of Nescafe:
Tie-ups: It can tie-up with different corporates, educational institutes and other public
enterprises to gain market share and drive profits.
Growth in Public income: The income of people is constantly on a rise and they tend to move
towards premium taste which is coffee in the beverage category. So they have a potential
customer base who might want to move towards this drink.
Biscuits: Nescafe can plan on biscuits or cookies which can be sold with the coffee or which
goes very well with the coffee flavor. They can also make these biscuits as premium biscuits in
the market.
Threats of marketing strategy of Nescafe:
Direct Competition: In Bangladesh, MacCoffee is the market leader in the beverage category
and is giving a hard time to Nescafe. This competition is getting more and more intense with
other brands growing as well like Bean Coffee etc.
Cocoa Problems: The cocoa farmers are facing serious problems in cultivation and selling their
produce. These problems might hamper companies like Nescafe which is driven by cocoa
cultivation
