Positioning Strategies

and Brand Management

Techniques of Nescafe
By-
Ishita Singhal
Chirag Ahuja
Akanksha Arora
Arpit Bajaj
Bhavna Damani
Sneha Dubakka
 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”. That’s 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.
The Nescafe Plan:
Creating Shared Value

 Responsible Farming
 Responsible Production
 Responsible Consumption
Nescafe Semiotics Triangle
Object Product

Nescafe
Instant
coffee

Interpret
Sign Nescafe Red Person meaning
Image Mug enjoying
coffee
 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 SKU’s 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....

 Usesproduct differentiation: Image

differentiation to gain competitive
advantages to build a position
 Emphasizes on product, quality level and
satisfaction of customers
 PROMOTION TECHNIQUES!

Launch of PSLV, Nescafe shown as payload. Football fever, during World Cup!
PROMOTION TECHNIQUES!
Value Proposition

MORE FOR THE SAME

 Selling its products at same market price but

offers better quality and higher satisfaction levels
Positioning Statements
 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
 Nescafé and its Classic gives the best taste and
quality
The Nescafe Campaign
 BrandAmbassadors: Deepika Padukone &
Purab Kholi
 Nescafe Morning Band
 My Nescafe moments
 Know Your Neighbour
 Sponsorsfor various shows and contests like
Vh1 Ticket 2 Ride
 Nescafe Friendship Week 2012
Switch on the best in you! Once Nescafe Many coffees!
Commercials focus on “Sharing
Happiness”
Brand Positioning

 Nescafe --- ‘the taste that gets you going’

 Nescafe Classic – ‘100% pure instant coffee’
 Nescafe Cappucino – ‘A true cafe’
 Nescafe Cold Coffee – ‘Shake up Summers’
 Nescafe Music Mug – ‘Switch on Monday Mornings’
 Nescafe – ‘Ho shuru har din aise’
 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
 Year Theme
2005
“Wake up the spirit with Nescafe Red Cup”
2006
“Your day doesn’t 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. Nestlé + café = 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