Introduction:
The paper will look into the competitive aspects that Nescafe is faced with in the Gulf Region. The analysis would entail a brief account of the overall marketing strategy of the competitors of Nescafe.
The GCC is a key sector for coffee industry and in a research report, UAE alone stands to grow 80% in the coffee sector (Hotelier, 2011).
Main competitors in the GCC (Gulf Cooperation Council) region:
The main competitors of Nescafe in the Gulf region are as follows:
- Lavazza
- Davidoff Coffee
- Starbucks
Marketing strategy of Nescafe Competitors:
The product strategy of Lavazza Coffee is based on providing constant innovation and hence with a key focus on GCC as a region.
Laavazza intends to produce 100% Arabica coffee from Kafa that is famous for coffee production and will help in creating a uniqe USP for the coffee retailer in GCC (Hotelier Middle East Staff, 2014).
The target market of Lavazza is a niche and serves in premium category in limited and selected restaurants.
The marketing strategy of Lavazza in recent years is heavily dependent towards social media and Facebook and twitter are the main communication channels utilized and one the key marketing tool was the Lavazza calendar.
The calendar focused on the big idea of stylishly working with the world top photographers and the focus is as stated by the Marco Lavazza in Global Coffee Report, (2103) to make the brand strong business in markets such as GCC is a key factor.
The price range from $5 to $75 depending on the segment targeted for the product.
Davidoff Coffee brand’s unique USP is that it is positioned as highest extravagance for coffee aficionados and thus, the product aspect of Davidoff coffee features selected Arabica beans, picked from global vineyards.
With a tradition of taste and aroma the brand is also focused towards a niche, specifically the coffee loving Arabic segment in GCC, however, in terms of the pricing it can be enjoyed by all and sundry in view of the economical price of the product that strats from $ 4 and ends at $ 83 for the targeted niche (Tchibo Davidoff Cafe, 2014).
Starbucks is also a major competitor for Nescafe and with a focus on technology by adding Wi-Fi experience and music, with the consistent global quality of the coffee; Starbucks is truly the coffee of the masses and with a price range that is reasonable.
With a culture of baristas in GCC and coffee utilized as a main beverage, Starbuck’s quality in product and also the once range in terms of homemade coffees that starts from $10-$60 and has established Starbucks in view of the brand association of the consumers with the company.
The following table demonstrates the foremost competitors of Nescafe in UAE.
Conclusion:
The GCC region with its coffee loving public and its multicultural population from a global perspective, has the capacity to cater to all the aforementioned coffee brands, however it is important for them to be able create a unique selling proposition (USP), to be able to create maintain and sustain a loyal base of consumers.
Nescafe with its global appeal has been able to maintain both business and consumers; however, with globalization in full effect and the experimental nature of the consumers in GCC, Nescafe as a brand needs to keep reinventing in terms of connecting with the consumers and to create new segments.
References
Global Coffee Report, (2103). Lavaz’s strategy for global growth. Retrieved from http://gcrmag.com/profile/view/lavazzas-startegy-for-global-growth
Hotelier Middle East Staff (2014). Lavazza to launch 100% Arabica coffee, Kafa. Arabian Industry. Retrieved From: http://arabianindustry.com/hospitality/news/2014/mar/12/lavazza-to-launch-100-arabica-coffee-kafa-4630288/#.VHjV2MmxtKE
Hotelier Middle East Staff (2011). Caffeine Rush. Retrieved from http://www.hoteliermiddleeast.com/11883-caffeine-rush/1/print/
Tchibo (2014). Davidoff Cafe. Retrieved from http://www.tchibo-coffeeservice.co.uk/en/brands/davidoff/davidoff-brand-overview.html
