Nescafe- History, Brand Value and Brand Strategy

 

The hot and cold beverages list would go incomplete without the word coffee in it. Speaking of coffee, the first name that strikes our minds is Nescafe.

Undoubtedly the brand has established itself as one of the leading coffee brands in the entire world and is quite popular in today’s culture as well.

 

Nescafe Brand History

Back in the year 1930, the coffee giant was formed and it started off from an idea. Nestlé, a leader in FMCG industry was asked to help in figuring out how to increase the consumption of coffee and how to decrease the excess supply of coffee production from Brazil by a group of Brazilian bankers.

 

The initial days

By the end of 1920, the cost of coffee was at absolute bottom and espresso was at times just adequate to be utilized as fuel. The Brazilian financiers needed a famous coffee to be built up so that it could be available at places where a cup of coffee is not available that easily.

From this, the concept of soluble coffee as blocks or tablets started. This idea was meant to support sales without hurting the conventional type of coffee usage and the end objective was to make the coffee production famous and popular.

 

The rise of Nescafe

Dr. Max Morgenthaler was involved in long seven years of research and development. Finally, after his through research, Nescafé came into existence. 

On 1 April 1938, Nescafé entered the global markets and was introduced to the global audience to sale and consumption.

 

The World War II

During the World War II, Nescafé became the staple drink for the US military and it was from that point on, the coffee brand gained immense popularity. 

By the 1950s, Nescafé  coffee became the go-to product for the rock and roll culture audience who visited to the new bistros and cafes over the western world.

 

The present day

Today around 6,000 cups of Nescafé coffee are consumed by the consumers every second and the brand has successfully penetrated the coffee market in more than 180 countries in the world. Furthermore, every cup is loaded up with more than 75 years of the brand’s legacy.

 

Nescafe Brand Value

Nescafe is the biggest brand for Swiss giant Nestle, which is the world’s food product organization. 

Nescafe has more than 5,500 items under the brand. It launched its Gold Mix Barista Style in 2013, which targeted to the customers who wanted to make instant coffee at home. There are in more than 5,000 products under the Nescafe family. 

The brand has spread in more than 180 nations and 6,000 cups are consumed by the consumers each second in those countries.

Nescafé, the world’s leading espresso brand, was positioned third among the best 100 megabrands and has made a mark for itself among the top rankings. 

The worldwide statistical surveying organization, Euromonitor listed the best 100 megabrands revealing the world’s driving FMCG brands by their retail business Euromonitor listed Nescafé’s retail sales and placed the brand in the range of 10 and 15 billion USD in 2017. The Asia Pacific was the main market for the brand. 

Nescafé coffee is sold in more than 190 nations in the world.

 

Nescafe Brand Strategy

1 . The product strategy of Nescafe

Nescafe have a large variety of products, which is principally intended to fulfill the client taste buds. The brand ensures that with every cup of coffee, the clients get a sense of satisfaction in their minds. 

Nescafe presented different types of coffee, which is their way of advertising their products. The brand came out with different mixes like Nescafe Unique, Gold, and so on.

The decaffeinated segment constituted of various types of blends. The Cappuccino segment has different flavors like unsweetened, decaffeinated, and so on.

Nescafe also brought in the product line which constituted of products like expresso, green mix, normal latte, latte with different mixes, vanilla, mocha and so on. The product line of Nescafe is a long one and this shows how Nescafe has put in continuous research in their product development.

 

2 . The price strategy of Nescafe

The brand is one of the leaders in coffee industry in the world. The cost of items is reliant on the nature of the material provided by the brand. 

The products are high in quality and they are considered one of the essential goods. The pricing is basically done on the quality of the products. Even after the slight change in prices, the consumers chose Nescafe as their favorite coffee brand. 

Nescafe has rolled out a few improvements in the product line and new items were introduced. This has expanded the client base, as individuals have a wide assortment to choose from.

Soon the coffee brand adjusted the pricing of their products and this had a positive impact on the market. The product became pocket friendly and the sale of the coffee products went up gradually. 

The sachets are accessible at a low cost. They are focused to the clients who might lean toward a mug of espresso and at a moderate rate. The different kinds of Nescafe espresso are being circulated and the pricing has been done based on the flavors.

 

3 . The distribution strategy of Nescafe

The brand Nescafe has become a commonly recognized name in the recent years. Nescafe ensures that the consumers around the globe are glad to have their items. They are aware of the huge demand of their items. This has been made possible because the brand created a distribution channel to reach the clients to almost every location.

The brand has been analyzing the target markets and created a massive distribution channels to cater the customers in various regions. Being a FMCG brand itself, it has adhered to the common practices of a FMCG brand and has gained the trust and loyalty of its customers.

The distribution channel involves wholesalers and retailers who played a huge role in distributing coffee to

 

4 . The marketing and advertising strategy of Nescafe

The brand Nescafe focuses on the marketing and the advertising strategies with a great deal of attention. The brand makes sure that the customers are happy with the product and there is a proper communication between the two entities. 

Nescafe promotes their products through media such as radio, television, newspapers, hoardings, internet, social media platforms and so on. The organization has made one thing sure that their logo continues as before since the beginning. 

A brand is known by its logo and the same goes for Nescafe as well. It has kept the logo unchanged and this was mainly done to preserve the originality of the logo. The promotion of Nescafe is creative and the brand ensures that they grab the eye of the clients and they get pulled in to the products. 

Internet advertising has helped the brand establish a solid brand image and it has become easy for the coffee giant to advertise their products.

Nescafe has collaborated with famous actor George Clooney for their advertising campaigns. 

 

Conclusion

Being a global leader in the coffee industry, Nescafe has performed exceptionally well and has satisfied the taste buds of its customers with its fine product line and taste. The brand has given a stiff competition to its rivals and made it to the top FMCG list since its inception.

With such an innovative product and marketing strategy, it is safe to say that Nescafe is here to stay and will dominate the coffee industry and markets in the future as well.

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