SWOT ANALYSIS:

In order to achieve all the useful information about the market strengths and weaknesses of
Nescafe, it uses SWOT Analysis to determine market analysis. By SWOT Analysis, Nescafe
aims to gather information about various factors of its existence that will improve the overall
quantity of the product and promote value for its consumers. In SWOT Analysis, the strengths
and weaknesses are the internal factors whereas opportunities and threats are the external factors.
Through SWOT Analysis, Nescafe benchmarks it business and performance with accordance to
industry and market. As of 2020, Nescafe is the leading brand in food and beverage industry.
STRENGTHS:
Any organizations strengths are its assets, capabilities, their consumers and their market.
Through these 4 things companies gain competitive advantage over other organizations. Nescafe
has the following strengths:
1. Nescafe has a very strong brand name and brand equity. It possesses a very strong
financial position and has huge availability of products. It has very strong brand
recognition. Whenever we think of coffee, we know its Nescafe. When we go to coffee
section, we ask for Nescafe. This is the strong branding of Nescafe. It has taken place and
penetrated into the market like India where it is the whole market of tea.
2. Nescafe has very strong promotions and advertising. They have very popular promotional
campaigns. They touch the strings of human heart very strongly through the
communication they do with their advertisements. They communicate and resonate with
daily problems of common people and has connected through audience with emotions.
3. Nescafe has positioned itself as the highest quality coffee at market prices and less than
market prices. The quality of Nescafe coffee beans, instant coffee has delighted
customers more than anything.
4. Nescafe has very diverse products. They have a wide range of flavors available. It has
diversity in terms of taste, strength of taste and types of coffee beans used. They have
large variety for every type of consumer.
5. All the consumers of Nescafe are their loyal customers so they have gained the loyalty of
consumers.
6. Chai Coffee will generate a huge profit for Nescafe as the tea lovers’ market will also
shift to this product if rightly positioned.
WEAKNESSES:
1. The major weakness of Nescafe is that people are becoming more and more aware of
their health and becoming health-conscious so they avoid caffeine and Nescafe’s
ideology is totally based on caffeine although caffeine level gets differences based on
consumers preference but their products have caffeine must as it is all coffee.
2. The other weakness is that people are moving towards green tea, lemon tea etc. so this
maybe a weakness for Nescafe as well.
3. Their promotions don’t mention the difference of products and significance of every
product. Rather they promote Nescafe as a whole brand.
 4. Usage rate is low in the countries like India where people love tea.
5. They haven’t mentioned the health benefits o coffee which maybe a weakness for them.
OPPORTUNITIES:
1. They should increase the distribution channel in rural areas.
2. They can build Nescafe coffee houses because people are fonder of having a coffee at a
café with friends rather than at home.
3. They must target the people with old-age as well because the strategy of Nescafe is
instant coffee and products so old-age people can easily make it and can contribute to the
market.
4. They must target working people as well because they are busy and on the go so instant
coffee can be for them as well.
5. They can introduce hot chocolate coffee as well because its trending very much.
6. They must make efforts to make people aware about the health benefits of coffee.
7. The tea market will expand for them as Chai Coffee will target tea market as well.
THREATS:
1. They have direct competitors such as other coffee brands, coffee shops and cafes.
2. Their competitors offer low price than Nescafe which maybe a threat to them.
3. As Chai Coffee is mixed beverage so Nescafe have direct competitors of other tea brands
also.
OBJECTIVE AND ISSUES:
1. The objective of Nescafe’s product Chai Coffee is to target niche by targeting tea market
as well along with coffee market and joint market (tea and coffee) as well.
2. Nescafe aims to develop brand awareness through its new product innovation that is Chai
Coffee.
3. The main objective is to cater value to those customers who actually belong to tea market
and introduction of Chai Coffee is to provide spark to existing customers and a surprise
for our new customers.
4. To achieve more loyal customers and more market share by acquiring tea consumers also.
5. By associating tea with coffee, Nescafe aims to develop a point of difference in the
market by introducing a unique product to achieve unique selling point.