ASSIGMENT#1

Principles of Marketing
Group#3
Content:

 Research of a company…………………………………….........2
 Firm Analysis……………………………………………………………3
 Mission and Objectives…………………………………………….4
 Marketing Issues………………………………………………………5
Appendices:
 Figure1.1_SWOT Analysis………………………………………………………….3
 Figure1.2_Marketing Channels………………………………………………….5
 Figure1.3_Coffee brands USA…………………………………………………….6
 Figure1.4_Comparison of different types of Coffee……………………6
RESEARCH OF A COMPANY
Company: Nestle Division: Coffee Product: Nescafe

About Company:

History:

Based on the revenue, Nestlé is the biggest food producer globally. When two
businesses merged, then it was created in the 1950s. The business first began
operating in the 1860s, it made soluble milk that was suitable for infants. Nestlé
began producing soluble coffee in the roughly 1930s.

Importance:

Nestle is dedicated to meeting customer demands and preferences while producing

high quality, reasonably priced, and nutrient-dense goods. The superior ingredients
used in Nestle's products allow them to offer balanced nutrition, convenience, and
delicious flavor, making them stand out from the competition. Nestlé is one of the
world's largest, most diversified food and beverage company. They have a unique
global footprint and sell their products in 188 countries worldwide.

About Nescafe:

History:

The history of NESCAFÉ began in Switzerland in the 1930s. When the Brazilian
government asked NESTLÉ to produce coffee cubes, the company began investigating
ways to make soluble coffee taste just as excellent as regular coffee. With the aid of
Max Morgenthaler and his colleagues, the solution was discovered a few years later,
and on April 1st, 1938, soluble coffee was first introduced to the world.

Products:
It contains many types of instant coffee.
 NESCAFE ANALYSIS
Managing the marketing process requires five marketing management functions
Analysis, Planning, Implementation and Control.

Industry Analysis:

Analysis explores the market trends, consumer preferences, and the competitive
landscape within the industry. Here strength and weakness represent the internal
conditions affecting Nescafe vs the opportunities and threats represent the external
activities affecting Nescafe.

Figure1.1

Nescafé wants to take advantage of its opportunities in the coffee market by leveraging its
strengths, but it also wants to manage its weaknesses and stay clear of all the threats.
MISSIONS AND OBJECTIVES OF NESCAFE
Mission Statement:
“We unlock the power of food to enhance quality of life for everyone, today and for
generations to come.” [NESTLE]

“Coffee tastes better with respect. Respect for the people who farm it, their
communities, and the planet that grows it. So we provide innovative, sustainable
agricultural practices to our farmers to ensure the future of their livelihoods, coffee
and the planet. We believe you can taste that respect in every cup.” [NESCAFE]

Mission of Nescafé Pakistan:

As a brand under Nestlé, Nescafé's mission is to provide convenient and high quality
coffee solutions to consumers worldwide. Nescafé aims to bring people together
through the enjoyment of coffee, offering a range of products that cater to different
preferences and occasions. And nowadays several people prefer coffee.

Nescafé's Objectives:
 Product Innovation:
Nescafé seeks to continuously innovate and develop new coffee product
flavors that meet evolving consumer preferences for taste, convenience, and
sustainability, maintaining its position as a market leader in the coffee
industry.
 Sustainable Business Practices:
Nestlé's commitment to sustainable business practices is strengthened by the
inclusion of Nescafé, which is a member of the Nestlé family. This includes using
eco-friendly packaging, assisting farmers through fair trade programs,
purchasing coffee beans ethically, and being involved in community projects
that benefit coffee-producing areas.

 Brand Loyalty:
Nescafé aims to foster strong brand loyalty among consumers through consistent
quality, effective marketing campaigns, and engaging customer experiences,
building lasting relationships with its customers.
 Sustainable Sourcing:
Nescafé is committed to sustainable coffee production and is constantly, working
to enhance the livelihoods of coffee farmers, protect the environment, and
ensure the long-term availability of high-quality coffee beans for its products.
 Market Expansion:
Nescafé aims to expand its presence in both established and emerging markets,
leveraging its brand strength and product innovation to capture new opportunities
and drive growth.
 Digital Engagement:
Nescafé recognizes the importance of digital engagement and e-commerce, leveraging
digital marketing channels and online platforms to reach and engage consumers in an
increasingly digital world.

Figure1.2
2
MARKETING ISSUES OF NESCAFE
 Adapting to Consumer Preferences:
In the dynamic coffee market, Nescafé faces shifting consumer tastes and trends.
The rise of specialty coffee, cold brews, and plant-based alternatives has reshaped
preferences, compelling Nescafé to continuously evolve its product range to meet
these changing demands. The company's ability to adapt is crucial to sustaining its
market presence and relevance amidst an ever-evolving consumer landscape.
 Health Concerns and Coffee Consumption:
Ongoing discussions and research are exploring the potential health impacts of
coffee consumption. If unfavorable views concerning coffee's effects on health
become more widespread, it might diminish the demand for Nescafé's offerings and
harm its overall performance.
 Competition from national and local brands:
 Starbucks, Jacobs Douwe Egberts, Folgers, Tchibo, and other national and local
coffee brands are among the fierce rivals of Nescafe. Nescafe's pricing power, profit
margins, and market share may all be affected by this competition.

Figure1.3
 Perception Challenges of Instant Coffee:
Certain segments of coffee enthusiasts and consumers might view instant coffee as
less superior in terms of quality or flavor when compared to the freshness of
brewed coffee. This perception creates a barrier for Nescafé in acquiring new
customers, particularly those who place a higher emphasis on the taste and quality
of their coffee experience over convenience.

Figure1.4
 Tea Replacement:
Some people are Tea connoisseurs.When Nescafe entered in coffee market at Japan
they face very much challenges because drinking tea was their cultural integrity and
this problem is common today as well.

 Turkish Parliament's Reaction to Nestle:(Additional Information)

According to an official statement of the Turkish Parliament, they pass the order to
remove Nestle products from its restaurants because of their alleged support for Israel
amid the conflict in Gaza.