Nescafe is a product of distinguished brand nestle which has captured the one of the highest instant coffee market share. The term Nescafe was ascribed from a combination of two words: Nestle and café. To come up with coffee powder, Max Mergenthaler and his team of coffee professionals worked around the clock for seven years. Their dream was first realized in April, 1930 in Switzerland. The product was then launched in the US and was branded Taster's Choice Nescafe. The brand named then morphed to Nescafe Taster Choice
For Nestle, it’s not about being system oriented but rather brand-oriented product. It has a marketing strategy designed in a manner that gives significance not only to the needs, but also to the lifestyle of the customer. Nestle exudes a high quality and an improved pricing strategy as well as distribution networks. These priorities enable generation of attractive annual profits.
The good quality of Nestle has achieved customer satisfaction, thus, giving an intense value. Therefore, in their bid to have customers’ loyalty, they carry out renovation and innovation the product. Nestle engages in improving its own activities and applying market segmentation strategy in order to gain its customers satisfaction. Coffee has an intense market around; however, Nestle has been able to capture around 72% out of the total 73% coffee dominance. This demonstrates a successful market strategy and subsequent brand loyalty.
In conclusion, the marketing strategy of Nestle has depended on a formula that takes care of three areas: consumer, competition and quality. This has made their marketing strategy very effective. Nestle is thus a brand in the market that has earned a lot of loyalties to the extent that it can spread out the production line to provide fair trade hot drinks and premium coffee products.
References
Cherry, K., 2014. Nescafé. A Marketing Analysis. 1st ed. Munich: GRIN Verlag.
