Marketing Mix of Nescafe: Detailed 7Ps Analysis

About Nescafe

Nescafe capitalized on the luxury of coffee through its strong advertising strategy. With this, the brand somehow became one of the most loved and classic coffee brands in India. Before we dwell on the advertising strategy of this brand, let’s take a quick look at how the brand has evolved over the years.

Company History (Summed up) – “Nescafe” is a fusion of two words “Nestlé” and “café”. Nestlé’s “flagship powdered coffee” product was introduced in Switzerland on April 1, 1938.  

You will be shocked when I tell you this – 

Nescafe was launched due to the overproduction of coffee in Brazil. 🤯

Nescafé coffee was originally inaugurated in Brazil in the 1930s as an instance of innovation and sustainable development. The expertise of Nestle’s milk was built on the formula for developing soluble coffee which helped thousands of Brazilian farmers from hardship and crop waste. Now let’s learn further about Nescafe and its marketing tactics.

Nescafe was introduced in India in 1963. With a tea-loving population, Nestle had to adopt a strategy that would make them believe otherwise. 

The entire concept of coffee was peculiar to this demographic. To begin with, the brand advertised how its coffee helps you start your morning.

Here’s an ad you can check out – 

What’s new with Nescafe?

Want to know why the brand has made it into headlines recently?

Here are all the updates summed up for you –

• Nescafe teamed up with Aero for a limited-edition launch of Nescafé Gold Golden Honeycomb Aero Mocha.
• Nescafe taps into the iced coffee market by launching its Ice Roast product line.

Buyer Persona of Nescafe

The buyer persona of Nescafe represents the description of its customers.  The table below illustrates customer’s lifestyles, pain points, and reasons for purchasing Nescafe’s products.

MARKETING MIX OF NESCAFE

Marketing strategy helps in discovering the areas affected by organizational growth and thereby helps companies achieve business goals & objectives.

Identifying and arranging the elements of the marketing mix (4ps) allows a business to make profitable marketing decisions to every extent. Let’s deep dive into the marketing mix for better knowledge of understanding.

1. Nescafe Product Strategy :

(Source: Nescafe)

Nescafe provides a spread of products intending to satisfy the taste buds of its customers. They aim to fulfil the satisfaction of consumers with every kind of product. NESCAFE considers the demographic needs of the customers. The corporation provides various blends like Nescafe Original Blend, Gold Blend, Gold Blend Decaff, etc. The Decafe section offers a variety of types like Decafe, Half Café, etc.

The Cappuccino has various flavours like Decaffeinated, Skinny Unsweetened, etc. to call among a couple of. They provide espresso, green blend, Vanilla, Mocha, Irish Cream, Latte, Latte with various blends, etc. This is often enough to point out the merchandise range of Nescafe. They cater to almost all kinds of coffee lovers with their gigantic assortment of products.

(Source: Nescafe)

• Nescafé Original
• Nescafé Classic
• Nescafé Gold Blend Half Caff
• Nescafé Gold Blend Decaf
• Nescafé Alta Rica Decaff
• Nescafe Blend 43
• Nescafé Blend 37
• Nescafé Black Gold
• Nescafé Classico
• Nescafé Decaff
• Nescafé Half Caff
• Café Parisien
• Nescafé Gold Blend
• Nescafé Suraya
• Nescafé Alta Rica
• Nescafé Espresso
• Nescafé Fine Blend
• Nescafé Partners Blend

The list of Products offered by Nescafe is exhaustive. You can check all its products here – Explore Coffees | NESCAFÉ India

Nescafe had also launched the “Nestea” range in collaboration with Coca-Cola to meet the demand for tea and cater to a different audience segment. However, the company ended its joint to pursue different strategies.

Did you know? – As part of its commitment to sustainability, Nescafe recently introduced refill pouches for all its coffee products. A barista-style range was also launched by the brand to cater to the growing demand for ready-to-eat foods.

2. Nescafe Promotion Strategy :

(Source: Nescafe)

You might have noticed something common in all Nescafe advertisements – they encourage people to connect and take a break from their usual busy lifestyle. 

Nestle has used several advertising tactics throughout the years to make the merchandise Nescafe appealing. Particularly, it has used persuasive advertising strategies to make it an immediate success. Nestle conducts several advertisements and TV commercials focused on making it a household premium brand. 

The perpetual series of advertising with creative promotions have given Nescafe a flagship title in the industry of instant coffee.

Nescafe’s promotion strategy involves significant use of – 

• Advertising Campaigns
• Newspapers
• Internet
• Television
• Public relations activity etc

Another promotional strategy includes the expanding brand value that Nescafe has built over the years. Besides some packaging and product changes, the classic Nescafé logo has always remained the same since its origin. This helps in increasing brand recall. 

Expanding more on its promotional strategy,  the brand introduced campaigns like “Switch on the best in you” as a strategic move to reaffirm its market position in light of escalating competition from brands like Bru. This campaign featured Bollywood actress Deepika Padukone, which helped the brand gain a heightened level of appeal.

Nescafe’s Best Campaign – #For the Moments that Matter

Nescafe’s ad campaign on – #For the Moments that Matter pulled onto people’s heartstrings. This advertisement is undoubtedly one of the brand’s most successful campaigns. It features a strong story and concludes by conveying the importance of spending time with loved ones.

The objective of this campaign was to assist in the relaunch of Nescafe Gold.

Here’s the ad – 

3. Nescafe Place Strategy :

Over the years, Nescafe has become a household name considering its extension into various ventures. 

Nescafe uses an extensive distribution network to supply its products worldwide. The brand has expanded to nearly all regions where its customers are located.

Nestle pursues the FMCG strategy of distribution. This is quite effective as it involves breaking the volume into two distribution channels. The two channels are – 

1. Manufacturing – C&F agent – Distributors – Retailers

2. Manufacturing – Bulk buyers – Consumers

Besides this, To encourage sales, they frequently offer bulk buyers with trade discounts. Apart from this, Nestle also offers products through online channels.

4. Nescafe Pricing Strategy :

The pricing strategy of Nescafe partially relies on the quality of the coffee manufactured. And rest depends upon the competition and the level of demand for it in the market.

Nescafe’s products are of superior quality and hence considerably priced. Nescafe has put forth various changes in its portfolio and introduced new products. 

This strategy, in turn, attracts consumers as they get a wide variety to choose from. The amount provided to the customers varies based on the price.

Nescafe started producing sachets to cater to budget-conscious coffee drinkers, expanding their audience.

The various flavours of Nescafe coffee are made available in various quantities, and their prices are also set according to the packaging.

5. Nescafe People Strategy:

Nescafe has a highly trained workforce. They are trained to provide excellent customer service. Their website has a dedicated section for customer complaints, showing their commitment to customer service.

6. Nescafe Process Strategy:

Nescafe has a strong distribution network which helps them in supplying products worldwide.

Since Nescafe is a Nestle-owned company, they use large-scale manufacturing to streamline the production of their standard products.

Their entire process strategy is focused on efficiency, quality and flexibility.

7. Nescafe Physical Evidence Strategy:

Nescafe’s physical evidence includes all the tangible aspects of its products that the customers can see, touch and feel.

Nescafe’s packaging is attractive and informative. Additionally, they offer vending machines to enhance customer experience.

How does Nescafe use Digital Marketing in its Strategy? 

Nescafe leverages the power of digital marketing to connect with the newer generation. After analyzing all their digital channels here’s what we found out –

Social Media Strategy: Nescafe’s Instagram account has 171k followers. Their Indian account is highly active and features many influencers. This is a great way to connect with the younger generation. They also conduct numerous giveaways.

Their Indian accounts feature quite a few Indian celebrities as well.

SEO Strategy: Nescafe’s Website has a strong domain authority of 62 and attracts website traffic of 2 million on average! The brand also covers a lot of organic keywords.

Their blog on what is latte gets them a monthly traffic of 44,000 which is quite impressive! Blogs on coffee can serve as an educational resource for people.

Want to know about Nestle’s digital marketing strategy? Check out this blog on the Marketing Strategy of Nestle to find out how its parent company leverages digital marketing.

Top Competitors of Nescafe

• Starbucks
• Bru
• SleepyOwl
• Douwe Egberts
• JDE Peet’s
• Keurig
• Maxwell House

Conclusion

With more than 4,000 cups of the brand’s coffee being enjoyed every second worldwide, it is obvious that Nescafe is one of the world’s leading coffee brands. Nescafe has had a rich and classic history since 1938. Nestle its parent company produces Nescafe products.

Consumers’ perception of a brand is based mostly on the satisfactory value the user receives after paying for the product. In the above case study, we observed that many of the users are satisfied with Nescafe products.

If you are further interested to know more about digital marketing then we would strongly recommend you to watch our free online masterclass or take up our 4-month online digital marketing course with certification.