Nestle (Malaysia) Berhad will introduce a new product in Nescafe which known as Nescafe Honey. This product will target to the middle to upper working people who wants to have a warm coffee every morning. Besides, Nescafe Honey is a healthy based product which can helps the target market to stay alert in their work and be confident.
Market of industry beverage has been growing for the past five years. We expect that the market will growth each year and will achieve 12% in January 2012. Therefore, we have potential to introduce new product in the market.
Our company always maintains positive cash flows every year. Therefore, we estimate that our sales will increase from 7% when we launch our new product till 14% within the 3 years (January 2012).
The keys to success are:
1. We have establishing and maintaining a strong relationship with our customers through our promotion, advertisement and others.
2. As a market leader, we keep to promote and maintain high quality product in the market to make the life more comfortable.
3. We have creates the customer loyalty through our nurturing value and quality.
Besides, we estimate that our sales of each year are RM 4, 224,000 (year 2010), RM 5, 456, 000 (years 2011) and RM 7,920,000(January 2012). We estimate our demand is 8.8 million over the population in Malaysia because we have a 25% market shares in the beverage industry.
Nescafe’s marketing strategy is to modify the existing product to a new market. It emphasizes in using environmental friendly products besides improve the quality of the Nescafe Honey. Since we want to promote quality product, our pricing objective is based on product quality leadership. We use cost based pricing to estimate our selling price.
We will use television, radio and billboard to reach our target market. In addition, the support of the spokesperson creates the awareness in the market. A list of launching, campaign, advertisement, web development and promotion will go through from January 2009 to January 2012.
2.0 SITUATION ANALSIS
2.1 MARKET ANALSIS
2.1.1 Market Needs and Wants
• New Hot Coffee Can
The coffee comes in looks like normal drinks can. It is heavier when you lift it and feels weighted. Turn can upside down and push button, this breaks a seal on the other side. Then gently shake the can back and forth until the red liquid has all gone. Stand for about three to four minutes and you get a hot can of coffee. It must activate the can at room temperature. It's much easier.
Nowadays, we can see that coffee products are pack with plastic. Government encourages company to safe our environment. Therefore, coffee products should introduce paper-packaging to replace plastic-packaging. Paper-packaging mostly use in flight, hotel and high class restaurant but not in sales.
• Best Bins in selling Bulk Coffee
People are busy with their work and studies nowadays. Therefore, a premium feature in BestBins design is the rounded corners, virtually eliminating coffee residue in the front or corners, a common problem with acrylic bin systems. Cross merchandising packaged goods within the coffee section provides the perfect opportunity to entice package customers to try bulk shopping. Because of the additional bulk purchases, you will see increased revenues as the crossover emerges. Profits will also increase because of the usual margin advantage of bulk coffee versus selling pre-packs!
3 in 1 instant coffee
The 3 in 1 have been practice by Nescafe and most of the F&B industry since it much easier and suitable with the current trend especially to working people.
2.1.2 Market Trends
• Making Coffee a Special Occasion
The perception of consumers about coffee is just for breakfast and tea time. However, coffee...