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As the Great Depression gripped the United States in the 1930's and coffee sales plummeted there was a definite need for the coffee growers to find new ways to sell their product. Nescafe came to the rescue. In 1867 Henri Nestle, a German chemist living in Switzerland, had invented a baby formula for women who couldn't nurse. By 1900 he had set up production facilities in several countries, including the United States, where he also made condensed milk. Over the next thirty years the company expanded their products to include powered chocolate milk mix and other confectionary products. In 1930 the Brazilian government approached Nestle to create a new instant coffee that would give the consumer another option and at the same time increase the dwindling coffee exports of Brazil. It took eight years but in 1938 Nestle introduced Nescafe. Instant coffee was not a new idea; it was originally invented by a Japanese chemist named Satori Kato in 1901 and had been marketed and sold by various companies with disappointing results. Nescafe revolutionized the way instant coffee was made. Early methods of making instant coffee involved brewing a batch of high-strength, concentrated coffee and then boiling it dry in stainless steel drums; the residue left behind was instant coffee. The heat involved in the boiling process destroyed most of the aromatic and flavorful properties of the coffee. When reconstituted in water the result was a pungent, bitter decoction that little resembled coffee. Nestle developed a new process for dehydrating the concentrated coffee which vastly improved the quality. In entailed spraying a fine mist of the solution into a heated tower where the droplets turned to powder almost instantly. They then added carbohydrates in the form of dextrose, dextrin and maltose which helped preserve the flavor. Nestle struggled to come up with a name for this new product which would inspire the public to buy it. They combined the word Nestle and the Italian word for coffee, caffee, or café in hopes that the Italian inference would create an aura of romance and capture the imagination. Apparently it worked; through an aggressive, and expensive, ad campaign
United Kingdom. Charles and George Page. Illinois. Nestlé's was the crucial cooperation that Peter needed to solve the problem of removing all the water from the milk added to his chocolate. retained his name as Farine Lactée Henri Nestlé. Maggi was a major manufacturer of soup mixes and related foodstuffs. the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. the milk chocolate manufacturing process. Henri Nestlé retired in 1875. Switzerland. The company dates to 1867. and in the following year the Nestlé Company added condensed milk. USA. Wiltshire. the company was operating factories in the United States.that targeted the American housewife Nescafe became a huge success for Nestle and doubled its global market share. and soon began marketing it. Nescafe is bar far the dominate player in the arena. The company¶s current name was adopted in 1977. second only to Coca-Cola. In the succeeding decades. Nescafe remains the second most recognized brand name in the world. but the company. WWII rebounded the country from the depression and did much to further the Nescafe name as instant coffee became a staple of the soldiers' ration kits. Their first British operation was opened at Chippenham. In September 1867. Henri Nestlé developed a milk-based baby food. two brothers from Lee County. While instant coffee accounts for only about 25% of coffee sales world-wide. when two separate Swiss enterprises were founded that would later form the core of Nestlé. and thus preventing the product from developing mildew. retaining that name until 1947. in 1873. Germany and Spain. In August 1867. under new ownership. Alimentana SA of Kempttal. established the Anglo-Swiss Condensed Milk Company in Cham. By the early 1900s. so that the firms became direct and fierce rivals. the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company. The following year. when the name Nestlé Alimentana SA was taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and its holding company. saw Daniel Peter begin seven years of work perfecting his invention. Anglo-Swiss added milk-based baby foods to its products. The First World . In 1877. in Vevey. 1868. In 1905.
War created new demand for dairy products in the form of government contracts. Nestlé's production and sales rose in the wartime economy. Ironically. However. In 1947 came the merger with Maggi. Nescafé ("Nestlé's Coffee"). Curiously. There is actually a legend that dates coffee back to the 9th century. Growth accelerated and companies were acquired. Nestlé's production had more than doubled. ground them. Nestlé felt the effects of the Second World War immediately. the holy man rejected the use of the berries and threw them into a fire. which became a staple drink of the US military. The end of World War II was the beginning of a dynamic phase for Nestlé. . government contracts dried up. by acquiring Alcon Laboratories Inc. with chocolate-manufacture becoming the company's second most important activity. particularly in Latin America. In 1977. They raked the roasted berries. and by the end of the war. Nestlé made its second venture outside the food industry. the war helped with the introduction of the company's newest product. to US$6 million in 1939. However. who noticed his flock jumping like kids after nibbling on bright red berries from an inconspicuous bush. The curious solution seemed to help the holy man stay awake. Coffee Legends It is believed that Ethiopia¶s Oromo people were the first to discover the stimulating character of the coffee bean plant. and dissoled them in hot water. streamlining operations and reducing debt. the goatkeeper tried it himself. from where an alluring aroma arose. After the war. Factories were established in developing countries. and shared his discoveries with An Islamic holy man from a nearby monastery. Nestlé's management responded quickly. when an Ethiopian goatherd in the named Kaldi. Profits dropped from US$20 million in 1938. Diversification came with a shareholding in L'Oréal in 1974. a well-known manufacturer of seasonings and soups. and consumers switched back to fresh milk. The 1920s saw Nestlé's first expansion into new products. as did Findus (1963). Crosse & Blackwell followed in 1950. Libby's (1971) and Stouffer's (1973).
carrying the coffee trade across Austria. Syria. introducing coffee to their colonies. After the Dutch started growing and cultivating coffee in the Far East. its actual discovery remains a mystery ± which is hardly surprising. in the Sufi monasteries of Yemen. For a long time. when Americans revolted against outrageous taxes on tea. Soon thereafter. making it a . by drinking coffee as a sign of protest. and Europe. Holland and Britain. where coffee became known as the ³wine of Araby. and Turkey.´ From Arabia to the rest of the world It wasn¶t long before coffee houses opened in every city in the Near East. with Arab farmers making serious efforts to stop other countries from acquiring the precious beans. The natural environment proved ideal for cultivating coffee. Coffee drinking was finally extended from the Muslim world to Italy. Arabic Origin Legends aside. coffee spread from Mocha (a port city on the coast of Yemen). In the 18th century. coffee trade in the area was kept exclusive. it didn¶t take long before Britain and France followed. Germany. the popularity of coffee spread faster than gossip ± which actually helped get the word on coffee out.While many other legends deal with the origins of coffee. However over time. missionaries. young coffee trees were transported by the Dutch to the East Indies and to the Americas. In colonial America. coffee grew in popularity after the famous Boston Tea Party of 1773. Towards the end of the 17th century. traders and colonists carried coffee to Central and South America. the earliest credible evidence of coffee cultivation can be traced back to the fifteenth century. in Southern Arabia. coffee houses branched out. France. When the first shipment of coffee beans landed in Europe. to Egypt. given that coffee¶s known history dates back thousands of years.
Coffee can be a break. the nation that consumes the most per capita is Finland. coffee supply can be sometimes erratic. . comprising a sixth of the world¶s annual yield. and most especially. Next to water. coffee has surely evolved into more than just a stimulating beverage. The global trading involves growing and cultivation in developing countries. coffee is one of the world¶s largest trading commodities. We wake up with coffee. coffee is the most consumed beverage in the world. especially in developing countries. With one little cup comes a special moment. This is why the price of coffee remains highly inconsistent. By the late 1800s.popular industry within a short period of time. The largest importer is the United States. Today. Asia and Africa. Coffee is estimated to be worth more than $12 billion dollars every year. coffee had become one of the world¶s major exports. However. with the average Finn drinking around 1400 cups each year! That¶s almost four cups of coffee everyday! From its discovery. a chance to relax and reflect. and export and consumption in industrialized countries. and coffee keeps us going during the day. Most of the world¶s coffee crop is produced in Southern and Central America. Since cultivation depends primarily on natural conditions. a moment shared. we refresh ourselves with coffee.
15. 5. A acre of coffee trees can produce up to 10. The city of Lipa. There is such an area called coffee belt. Think REAL. Contrary to popular belief. It¶s very easy to remember.000 pounds of coffee cherries. Coffee doesn¶t expire. strong as death. A scientific report from the University of California found that the steam rising from a cup of coffee contains the same amounts of antioxidants as three oranges. These are Robusta. This distinction belongs to Sultan Kudarat.Coffee Trivia 1. Instant coffee has a 90% market share in the Philippines. "Coffee should be black as hell. Coffee only grows in elevated regions like Batangas and Benguet. The Philippines used to export coffee. That amounts to approximately 2000 pounds of beans after hulling or milling. Excelsia. The Americans brought the convenience of instant coffee to the Philippines in the 1950s. that¶s in Mindanao. and as sweet as love" . 12. (For the geographically challenged.) 6. Arabica and Liberica. Coffee growers in Benguet only use the name for marketing purposes. It became so rich that our ancestors in Lipa used to wear diamonds in their slippers. There is no such thing as Benguet Barako. 9. There are only four varieties of coffee that grow in the Philippines. 10. 11. we import coffee from nearby Asian countries and Brazil. Batangas is not the largest coffee growing area in the Philippines. Now. The antioxidants are heterocyclic . 14. 4. 3. 8. As long as you store it properly ² in an air tight container ² it can last for years. Batangas became a very rich town because of coffee. A coffee tree can bear fruit in as early as 18 months and as long as 5 years. The Philippines belongs to this area. 7.Turkish Proverb 13. Hooray for big companies like Nestle who manufacture instant coffee. 52% of Americans drink coffee. 2.
in the court of King Louis XIV. the manual coffee grinder found its way to most upper middle class kitchens of the U. Australians consume 60% more prohibited substances. processing companies no longer forerunners of the sidewalk espresso carts of today. depending on soil and climate. Brazil accounts for almost 1/3 of the world's coffee production. 27. a six fold increase since 1940. Coffee as a medicine reached its highest and lowest point in the 1600's in England. Caffeine is on the International Olympic Committee list of throw the caffeine away. when stored properly. gout and other ills. Citrus has been added to coffee for several hundred years. the French experts believe that certain beans improve with age. 21. 29. Before roasting. some green coffee beans are stored for years. 22. producing over 3-1/3 billion pounds of coffee each year. The Arabs were the monarch.S. they sell it to pharmaceutical companies. By 1850. 26.compounds which prevents cancer and heart disease. Beethoven. they release substances about that 700 make chemical up the vaporizing aromas. 23. and . This level may be reached after drinking about 5 cups of coffee. After the decaffeinating process. Wild medical contraptions to administer a mixture coffee than tea. 19. Adding sugar to coffee is believed to have started in 1715. Athletes who test positive for more than 12 micrograms of caffeine per milliliter of urine may be banned from the Olympic Games. 24. Before the first French cafe in the late 1700's. It's good for you! 16. and when the coffee beans begin to cool. An Arabica coffee tree can produce up to 12 pounds of coffee a year. 25. 20. in the Arab fashion. 18. Advertisements for coffee in London in 1657 claimed that the beverage was a cure for scurvy. was so particular about his coffee that he always counted 60 beans each cup when he prepared his brew. 17. After they are roasted. who was a coffee lover. 28. coffee was sold by street vendors in Europe.
39. 38. It takes over 600. 36. Coffee Recipe from: 'Kitchen short-lived producing a scent between jasmine and orange. Roasting time is usually from ten to twenty minutes. If boiled longer it will not taste fresh and lively. Coffee is grown commercially in over forty-five countries throughout the world. rainfall. Let stand four or five minutes to settle. The longer it is roasted. Coffee trees are evergreen and grow to heights above 15 feet but are normally pruned to around 8 feet in order to facilitate harvesting. soil conditions. trees produce highly flowers treatments for the sick. 40. Coffee is the most popular beverage worldwide with over 400 billion cups consumed each year. 34. 31. Coffee is graded according to 3 criteria: Bean quality (Altitude and Species) Quality of preparation Size of bean 33. Coffee trees are self-pollinating 41. Coffee is generally roasted between 400F and 425F.of coffee and an assortment of heated butter. altitude. Coffee sacks are usually made of hemp and weigh approximately 132 pounds when they are full of green coffee beans. and oil. pour off grounds into a coffee pot or urn. Put fish skin or isinglass size of a nine-pence in pot when put on to boil or else the white and shell of half an egg to a couple of quarts of coffee. 35." 37. became "Use a tablespoonful ground to a pint of boiling water [less than a quarter of what we would use today]. Coffee aromatic. Boil in tin pot twenty to twenty-five minutes. the darker the roast. Soon tea replaced coffee as the national beverage.000 beans to fill a coffee sack. 30. honey. These blossoms produce cranberry-sized coffee cherries. Coffee represents 75% of all the caffeine consumed in the United States. Coffee lends its popularity to the fact that just about all flavors mix well with it. drainage and degree of ripeness when picked. It Directory and American Housewife' (1844) . 32. Coffee beans are similar to grapes that produce wine in that they are affected by the temperature.
If you like your espresso coffee sweet. 45." It is still made this way today in Turkey and Greece or anywhere else Turkish Coffee is served. And they had another choice: ten pounds of green coffee beans.takes four to five years to yield a commercial harvest. Commercially flavored coffee beans are flavored after they are roasted and partially cooled to around 100 degrees. Dark roasted coffees actually have LESS caffeine than medium roasts. 51. Hawaii is the only state of the United States in which grown. 53. Coffee. 55. 47. 43. In Hawaii coffee is harvested between November and April. is on the national list of the "ten most recognizable odors. During the American Civil War the Union soldiers were issued eight pounds of ground roasted coffee as part of their personal ration of one hundred pounds of food. Each year the winner becomes a state celebrity. Flavored coffees are created after the roasting process by applying flavored oils specially created to use on coffee beans. is second only to oil. as a world commodity. 50. when the coffee beans' pores are open and therefore more receptive to flavor absorption. 46.S. along with beer and peanut butter. Coffee was first known in Europe as Arabian Wine. 52. 42. coffee is commercially Hawaii features an annual Kona Festival." 44. government used 260 million pounds of instant coffee. 56. Frederick the great had his coffee made with champagne and a bit of mustard. 54. Then the flavors applied. 49. 48. you should use granulated sugar. coffee picking contest. Hard Bean means the coffee was grown at an altitude above 5000 feet. The longer a coffee is roasted. the more caffeine burns off during the process. Iced coffee in a can has been popular in Japan since 1945. Hills Brothers Ground Vacuum Packed Coffee was first introduced in 1900. . Coffee. During World War II the U. which dissolves more quickly. Finely grinding coffee beans and boiling them in water is still known as "Turkish Coffee.
the Arabs started to cultivate coffee plants. white sugar rather than brown sugar or candy. In Italy. which sells for over $100 per pound. over 4 billion dollars of coffee was imported into the United States. Dorothy Jones of Boston was granted a license to sell coffee. workers on coffee plantations gather the world's most expensive coffee by following a gourmet marsupial who consumes only the choicest coffee beans. In 1670. 60. In 1900. In 1990. by horse-pulled wagons. 65. How did Nescafe identify their market segmentation? . By picking through what he excretes. and real sugar rather than sweeteners which alter the taste of the coffee. In Japan. 63. coffee shops are called Kissaten. coffee was often delivered door-to-door in the United States. In Sumatra. as a result of seedlings smuggled from Paris. 2. 3.rather than sugar cubes. In the 14th century. In 1727. 62. Brazil is presently by far the world's largest producer of coffee. 64. 57. coffee was usually taken between meals and after dinner. espresso is considered so essential to daily life that the price is regulated by the government. coffee plants first were cultivated in Brazil. 61. 59. In early America. they obtain the world's most expensive coffee -'Kopi Luwak'. and so became the first American coffee trader. The first commercially grown and harvested coffee originated in the Arabian Peninsula near the port of Mocha. What is the case all about? The case is all about the study of market segmentation of Nescafe in which the handouts shows the market segmentation of Nescafe as well as the description of their products. 58.
4. Nescafe was able exploit to the Threats opportunities arising from our love of coffee. Opportunity 1. by Filipinos 2. They had made of in they coffee as an their efficient use resources. well as their Weaknesses 1. The Nescafe is made in three different styles which their emphasize drinker¶s attitude health. . Nescafe celebrated its 100 year in providing beverages especially coffee that is really love 2. What are the benefits of market segmentation using SWOT analysis? Strength 1.
What concept in the marketing concept is used in this case? 8. What is the positioning of Nescafe in the market? The positioning of the Nescafe in the market is considered as first choice of young consumers like students who are doing their paper works and assignments the whole day as well as those who are working in the office and other business establishments who needs to have an overtime work. Recommendation . It is proven by its tagline. Conclusion 9. ³Kasambahay sa habambuhay´ 7.5. What is the future of Nescafe? 6.
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