Positioning Strategies

and Brand management

of nescafe

Business Profile
Nestle is world largest food manufacturer with around 480 factories in 87
countries and a portfolio that range from baby food to pet care, from chocolate
to mineral water.
With more than 3,000 cups consumed every second. Nescafe is by far the
world's leading coffee brand

The coffee with life in it. Made in just 5 seconds. Thats how Nescafe
announced its entry into India, in 1963. Before the ad campaign hit bill-boards
across the country, Indian coffee lovers were stuck with the idea that coffee is
something that takes minute attention to prepare and cannot be instant.

Nescafe Semiotics Triangle

Object Product
Nescafe
Instant
coffee

Sign
Image

Nescafe Red
Mug

Person
enjoying
coffee

Interpret
meaning

Segmentation

Geographically NESCAFE has divided the country mainly into four i.e. southern,
northern, eastern and western. Of the four southern region is the area where
coffee is consumed the most .In this part hard (roasted) coffee is consumed in a
huge amount. In the northern parts NESCAFE instant coffee is consumed a lot.

Demographically NESCAFE has tried to reach or cover the every age group ,
families , working people , male /female ,educated or illiterate ,and of different
socio-economic classes .

Targeting
Target Audiences:

1. Working Adults (Primary)

2. Students-University, Academy, High School (Secondary)

3. Senior Citizens (Third party)

Point of purchase
Nescafe products are mainly sold in the following points. Nescafe Classic
being the most commonly used Nescafe coffee line extension.

Kirana Store : The most common and the most widespread form of sales
point in India.

Modern Retail: Present mostly in cities are increasingly becoming the

most important points of purchase.

Visibility: Whether the product is at eye-level or not impacts the number

of SKUs sold.

Accessibility: Where the SKU stack is located in comparison to the

entrance of the mall matters as most of the SKUs sold today are impulsive
purchases, so if the SKU stack is located near the entrance and is visible,
it will impact the sales'.

Vending Machines: Nescafe has its own vending machines installed at

various locations namely College canteens, Offices, restaurants etc. This
is a very efficient form of OOH marketing too.

Positioning strategies

Positioning strategy based on Use or Application Lets understand this

with the help of an example like Nescafe Coffee for many years
positioned it self as a winter product and advertised mainly in winter
but the introduction of cold coffee has developed a positioning
strategy for the summer months also.

Business Mantra

More on Positioning Strategies used....

Uses

product differentiation and image

differentiation to gain competitive
advantages to build a position

Emphasizes

on product, quality level and

satisfaction of customers

Value Proposition

MORE FOR THE SAME

Selling its products at same market price but

offers better quality and higher satisfaction levels

Positioning Statement

To people who are inspired and outgoing, cool

and trendy

In the need of starting each morning with an

enjoyable taste and original smell of coffee

Nescaf and its Classic gives the best taste and

quality

Brand Positioning
Nescafe

--- the taste that gets you going

Nescafe

Classic 100% pure instant coffee

Nescafe

Cappucino A true cafe

Brand Management

The intangible added value that a brand provides to a company

beyond its physical net assets

Nescafe has a high image of Television Commercials

Nescafe wants to maintain its image of cool and trendy

1 coffee cup 1 good feeling with Nescafe- Emotional branding

"Nescafe mug" red cup was popular- USP

The two ads are well crafted, and project a sense of simplicity, of
happiness being present in the simplest things in life. It introduces a
new tagline Bring out the best in you. It also reemphasizes the TG
of the brand, which is the youth

Commercials focus on Sharing

Happiness

Year
2005

Theme

Wake up the spirit with Nescafe Red Cup

2006
Your day doesnt really start until you have your
Nescafe Red Cup
2007
Your cup your way, Your day your way
2008
Better coffee with better morning
2009
Coffee at its best

2010
Switch on the best in you

Brand loyalty
Steps of gaining brand loyalty
1. Nestl + caf = NESCAFE
Easy to pronounce
Brand consistency
High reputation of the Nestle
2. Creation of Brand awareness
Media mix TVC, radio, magazine, cinema, packaging, event
sponsorship, sales promotion
3. Creation of Trust
Consistent image
Consistent quality of product