7/30/2019 Nescafe _F10 (1)

1/16

Nestl Corporation

Nescaf Instant CoffeeGreat Start of a Day

Created By: Laura Greff, Enni, Sean, Cherry

Class: International Business

Teacher: Rolf ButzDate: Oct. 26, 2010

http://www.youtube.com/watch?v=d262BfXK1zc

7/30/2019 Nescafe _F10 (1)

2/16

Fun Facts

People drink 4,600 cups of Nescaf per

second.

Grounds for divorce

Coffee Baths in Japan

450,000 farmers work with Nescaf worldwide

7/30/2019 Nescafe _F10 (1)

3/16

History

1866 - Nestl established Switzerland by HenriNestl 1900 started operating factories in United States,

Germany, and Britain.

World War I Difficulties to find raw materials During World War II Nescaf became a staple in the

army

1938 - Max Morgenthaler introduced Nescaf There are 8 lines in Nescaf

Nescaf Classic, Gold Range, Espresso, PremiumRange, Decaf, Specialties Range, Frappe, 3 in 1

7/30/2019 Nescafe _F10 (1)

4/16

Industry Analysis

80% of American adults, 27% of teenagers drinks

coffee

Coffee is mostly drank by people between the ages of45-55

The coffee industry has over 108 million consumers

Only five companies buy worlds 50% of coffee beans

7/30/2019 Nescafe _F10 (1)

5/16

Non-Alcoholic Hot Beverage

Market Segmentation

1%

46%

8%5%

40% Espresso

Instant Coffee

Other

Rost and Ground

Tea

7/30/2019 Nescafe _F10 (1)

6/16

SWOT Analysis

Strengths

Target Marketing

Nescaf caters to the needs of all its customersaround the world

Weakness

Brand Name Nestl had a number of recalls in 2008

Recalls affect all products of Nestl

7/30/2019 Nescafe _F10 (1)

7/16

SWOT Analysis

Opportunities

Emerging Markets

China and India have the fastest growing coffeemarkets

Threats

Growth of coffee industry There are over 17,000 coffee shops in the U.S.

7/30/2019 Nescafe _F10 (1)

8/16

Competitors

The Best part of waking up

Founded in 1850

P&G bought the company in 1963

Number one selling instant coffee in U.S.

The 4 dollar coffee

Starbucks is moving in the international game and

is gaining ground in countries such as China

It is making its way into the instant coffee market

7/30/2019 Nescafe _F10 (1)

9/16

Competitors Cont.

Maxwells Coffee

Good to the last drop

Started in 1892 by Kraft

Kraft is Nestls number one competitor

Holds the second largest market share of

coffee industry

7/30/2019 Nescafe _F10 (1)

10/16

Global Market Expansion

1938: NestlintroducesNescaf.

Exported

to France

Nescafenter U.Sin 1938

Advertisement enterJapanin1961

Gift

enterChina in1988

N

http://www.youtube.com/watch?v=KVY9bSIY0P4http://www.youtube.com/watch?v=KVY9bSIY0P4

7/30/2019 Nescafe _F10 (1)

11/16

Global Market Expansion Cont.

13%

19%

9%

15%

10%

9%

8%

4% 13%

2008 China Beverage

Market

Coffee

Tea Beverage

Fruit& juice

Carbonated

Soft Drink

Milk

Beer

Water

Wine

Other

Coffee

Tea

Nescaf works with

coffee bean growers to

help improve crop yield

Nescaf has changed its

marketing technique to

suit the Chinese tradition

of Gift Giving

7/30/2019 Nescafe _F10 (1)

12/16

Challenges

0%

10%

20%

30%

40%

50%

60%

70%

80%

instant coffee Canned coffee Fresh Ground

Coffee

73%

11% 16%

2005 China Coffee market size

market size

Nescaf occupy

43%

7/30/2019 Nescafe _F10 (1)

13/16

Short-Term Recommendations

Marketing

-Give People lucky prize

Change the Glass Jar to new materials Only use the glass for decorative gifts

Safety Hazard

Make Nescafs Special Mug This mug would be a coupon for future purchses

7/30/2019 Nescafe _F10 (1)

14/16

Long-Term Recommendations

Vending Machine

- The first coffee vending machine was created

in 1946

Give people free Nescaf

Expand Its Distribution Chain

- Can stop the fake products appear in market

7/30/2019 Nescafe _F10 (1)

15/16

7/30/2019 Nescafe _F10 (1)

16/16

Thank You

We hope that we give everybody aGreat Start of a Day