Background of Nescafe

Discuss about the Trust and Loyalty for Small Traders.

Superior quality of products as well as services alone is not possible in rendering business success and sustainability. In order to render organizational image and reputation the business experts have to make effective marketing strategy and policy in order to create brand awareness on the mind of customers. The concept of marketing and management implies an activity of selling product concept with the help of effective promotion or advertisement. In order to give in-depth overview about the brand organizations need to focus on their marketing strategies so that they can introduce their brands in the global market. This particular study provides detailed evaluation about marketing strategies and policies of Nescafe based on which they have drawn the attention of Australian customers.

Nescafe is one of the most recognizable coffee brands occupying a predominant place in the market of multinational countries. Being one of the most prestigious coffee brands Nescafe has decided to expand their business in the market of Australia. Making a strong bond and effective rapport with the customers is the primary mission of this very specific brand (nescafe.com, 2018). People belonging to various geographical backgrounds and attitudes can enjoy the flavor of Nescafe. Nestle first introduced their flagship coffee brand in the market of Switzerland. After making effective marketing and brand promotion Nescafe has expanded their identity in different geographical boundary. This very specific study has focused to make in-depth overview on how effective marketing strategy would help Nescafe in expanding their business in the market of Australia.

Nescafe provides quality coffee with different flavors to the customers. The flavors with which Nescafe has experimented include 3-in-1 Original, 3-in-1 Sweet And Creamy, 3-in-1 Creamy latté (more cream), 3-in-1 Chocolate (chocolate flavored), 3-in-1 Strong and Rich (stronger flavor), 3-in-1 Cappuccino (cappuccino with Chocó crumble), 3-in-1 Mocha, 3-in-1 White Coffee (nescafe.com, 2018). Making connection with the customers is the primary objective of business experts. People belonging to various geographical backgrounds and attitudes can enjoy the service due to its product variety.

In order to select the target consumer in the market of Australia the business experts have segregated the market as per geographic, demographic and psychographic segmentation. Melbourne, Sydney, Perth, Brisbane, Gold Coast, Albury is the specific geographic locations where the business experts of Nescafe have targeted to enter. These specific cities are constituted with large population surrounded with the people of different cultural backgrounds and attitudes (Armstrong et al., 2015). As per demographic segmentation both male and female get equal priority and response as the target audience for Nescafe. People from the age group of 20 to 40 are targeted for Nescafe customers. As per Australia’s economic scenario, inhabitants are well developed in economy due to high level of income status. 

Market Segmentation in Australia

As a result, customers do not have to face challenges in affording the products and services of Nescafe. As per psychological market segmentation, the target customers of Nescafe are not restricted within the people of specific cultural backgrounds and attitudes. As a result, the business experts have rendered immense product variety so that different cultural backgrounds tend to show their interest in using the products and services of Nescafe. On the other hand, service providers are flexible in dealing with those people who have language barrier (Davari & Strutton, 2014). Service providers are comfortable with both verbal as well as non-verbal communication. If the customers are unable to interact with the service providers they can easily use non-verbal communication as well.

In this very specific part the study has evaluated on how 8ps of marketing mix strategy has created brand image and reputation of Nescafe in the market of Australia.

Product refers the idea, method, information, object or services that can be sold in order to draw the attention of customers. Nescafe primary provides coffee to the customers coming from different geographical boundaries (Ashley & Tuten, 2015). The core products with which Nescafe is dealing currently include 3-in-1 Original, 3-in-1 Sweet and Creamy, 3-in-1 Creamy latté (more cream), 3-in-1 Chocolate (chocolate flavored), 3-in-1 Strong and Rich (stronger flavor), 3-in-1 Cappuccino (cappuccino with Chocó crumble), 3-in-1 Mocha, 3-in-1 White Coffee. Nescafe in terms of their quality of products and services has achieved immense appreciation from the service users due to on-time delivery of services. In addition, service providers are very much flexible in giving equal priority and response to both male and female customers (Aguirre et al., 2015).

Price refers to a specific value that needs to be invested for purchasing a finite quantity, weight, other measure or values. In order to draw the attention of both premium customers as well as low cost customers the business experts have focused to fix affordable price range (Hanssens et al., 2014). As per the pricing structure, the target customers of Nescafe do not have to face challenges in affording the products and services. The price level of Nescafe is good for drawing the customers attention in Australian soil.

Place represents the distribution option from where the target customer can avail the products. Nescafe uses both online as well as in-store for distributing their products to the doorstep of target customers (Fill & Turnbull, 2016). People are from various geographical backgrounds and attitudes. As a result, they may not be flexible in visiting to the in-store house of Nescafe. Therefore, online distribution procedure is available in order to grab the attention of customers from remote areas.    

Evaluation of Nescafe’s 8ps of Marketing Mix Strategy

Promotion is the method of introducing the brand to the target customers by using specific promotional tools. In order to promote the products Nescafe has decided to use both online media as well as offline media. As the business experts are deciding to expand their entire process of business in global market the marketing executives have focused to follow in using social media platform more effectively (Helm & Gritsch, 2014). As a result, the marketing executives can easily draw the attention of various customers.method by following which the business experts intend to introduce their brand in the market. The business experts of Nescafe provide their services by centering the customers (Carins & Rundle-Thiele, 2014). In addition, Nescafe has implemented IT within their service based on which they can communicate with the customers by implementing advanced technological process. Service providers by sitting at their own workplace can gather necessary data and information about customers’ feedback.     

Physical evidence is the resources based on which the business executives tend to draw the attention of customers. A well designed building, an attracting in-store house, well trained staffs, well designed website are the primary resources based on which customers tend to pay their attention towards products and services (Bahadir, Bharadwaj & Srivastava, 2015). The official website of Nescafe is very much attractive to draw customers’ attention. In addition, the service providers associated with this business process are very much professional and well mannered.

People in marketing mix concept refers to those individuals who are directly associated with the marketing activities. Nescafe by implementing participative leadership style can involve every single executive of marketing department (Ryan, 2016). As a result, the managers can take collective decision in order to make business strategies and policies.

Making partnership with other company is one of the most effective ways of creating brand awareness widely in the market (Aghaei et al. 2014). Nescafe launches new partnership providing four million coffee trees and establishing 48 coffee nurseries in Colombia. As a result, the business experts can get sufficient resources for promoting their brands in different geographical markets.

Nescafe can concentrate on using advanced technology more effectively in order to reduce their production cost. It will ultimately help in rendering more profitability in business.

In order to drag the attention of premium customers Nescafe can increase their price range by enhancing superior product quality. The economic condition of Australian inhabitants is high in range (Kim et al., 2014). Therefore, most of the customers belonging to soil of Australia fall in premium category.

Recommendations for Nescafe

Nescafe in order to grab the attention of large number of customers would have to enhance their in-store houses so that customers do not have to struggle in receiving the services. Customers should feel comfortable while communicating with the service providers.

It has been observed that Nescafe has concentrated in spreading their entire business wings by using social media vehicles (Ahmed & Rahman, 2015). As a result, they can easily attract the attention of young generation and middle aged customers are getting deprived of receiving overview of new products launched by Nescafe. Thus, it can be recommended that the business experts can concentrate on traditional media promotion as well based on which the middle aged customers can get overview about the new launched products of Nescafe.

In order to gather customer’s feedback Nescafe is very much dependent on advanced technology. As a result, the customers of middle ages cannot provide their response about the product and service quality (Choi & Gao, 2014). In order to get necessary response from every target customer, Nescafe should focus on following direct process collecting customers’ feedback.

As per physical evidence it is undeniable that Nescafe has designed their website, building and promotional content beautifully so that customers can pay their attention. At the same time, the brand should update their social media pages with the help of which the business experts can interact with the target audience more effectively (Talpau, 2014).

Marketing managers may involve the entire department of marketing team within Nescafe while taking business decision.  As a result, the managers can take collective decision in order to make business strategies and policies (Dzisi & Ofosu, 2014). At the same time, participative decision making style is not effective enough in taking immediate decision. At the time of taking immediate decision the business managers can follow autocratic decision making style. After that the managers can communicate with the people why they had to take this decision immediately so that employees do not misunderstand.  

Nescafe has launched partnership with 48 coffee nurseries in Colombia in order to expand their business process widely. But it has been observed that making partnership is possessed with several disadvantages as well. The associates have to face cultural barrier, psychological barrier and linguistic barrier at the time of making strategic decision (Baum & Kabst, 2014). In this kind of situation, the entire process of business gets demolished. Therefore, business experts may think twice before making an effective partnership with others.

Conclusion:

The study has provided detailed overview about the marketing strategy of Nescafe for expanding their business in the market of Australia. Making connection with the customers is the primary objective of business experts. People belonging to various geographical backgrounds and attitudes can enjoy the service due to its product variety. By evaluating 8ps of marketing mix strategy the study has evaluated their promotional concepts of products and service methods. Nescafe primary provides coffee to the customers coming from different geographical boundaries. As per the pricing structure, the target customers of Nescafe do not have to face challenges in affording the products and services.

In order to promote the products Nescafe has decided to use both online media as well as offline media. As the business experts are deciding to expand their entire process of business in global market the marketing executives have focused to follow in using social media platform more effectively. At the end of this study, an effective recommendation is provided based on the 8ps of marketing mix. If these recommendations can be implemented within business strategy and policy of Nescafe the business experts would be able to enhance the number of target customers from the market of Australia.

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