Case Analysis in Nescafe Product

Topics: Coffee preparation, Instant coffee, Coffee Pages: 6 (1360 words) Published: August 9, 2013
skip to main | skip to sidebar Nescafé and Consumer Perception

Company Background

Nestlé is the world leader in the consumer packaged goods industry. The company operates from its headquarters in Vevey Switzerland. The company produces about 6000 successful and popular brands.

In 1905 Nestlé was created after a merger between the Farine Lactee Henri Nestlé Company and Anglo Swiss Milk. Currently the company employees over 30,000 people and its global operations have reached 86 countries. Nestlé’s main competitors are other packed food manufacturers such as Unilever, Kraft Foods, Cadbury Schweppes, Hershey Foods and GROUPE DANONE.(1)

Products

Nestle manufactures a range of consumers goods.

• Baby foods e.g. Cerelac, Nestum

• Bottled water e.g. Nestle Pure life

• Cereals e.g. Chocapic

• Chocolate & confectionery e.g. Aero

• Coffee e.g. Nescafe

• Culinary, chilled & frozen food e.g. Buitone

• Dairy e.g. Carnation

• Drinks e.g. Juicy juice ,Milo

• Food service e.g. Chef, Chef Mate

• Healthcare nutrition e.g. Boost

• Ice cream e.g. Dreyers

• Petcare e.g. Alpo

• Sports nutrition e.g. Power bar

• Weight management e.g. Jenny Craig

Research estimates that 95%of UK households consume Nestlé products. Nescafe is one of these household brands. Nescafe claim to be “The World’s Favorite Coffee”. Every second up to 3,000 cups of this valuable brand is sipped by coffee lovers all over the world.

Global Presence

Nestlé's superior geographic presence is key to its success over competitors. From the initial beginning in Switzerland the company has grown by leaps and bounds and now enjoys a presence in almost every country in the world. Today, Nestlé's presence in most markets, including emerging markets, dates back many generations, and in some cases more than a century. 

The long standing presence in local communities has contributed to close and loyal relationships between Nestlé brands and consumers. Also a deep insight of local needs and trends wherever Nestlé operates is attained through this. Local management teams, manufacturing, R&D have all been developed, as well as long-term relationships with farmers and other suppliers. 

Nescafe

The concept of an instant coffee was not new. In fact it was first invented in 1901.But until Nestlé introduced Nescafe, Instant coffee was not popular with consumers .This Instant coffee brand was introduced by Max Morgenthaler in 1938 in Switzerland. The invention was a result of the Brazilian government approaching Nestlé, about preserving their huge coffee surpluses, by developing coffee that was soluble in hot water.

The name Nescafe was an amalgamation of the words Nestlé and cafe. Nescafe has the distinction of being the first soluble coffee that became a commercial success.

The success can be attributed to the new process developed by Nestlé for dehydrating the concentrated coffee. This improved the quality of the product immensely. In Nestlé’s process a fine mist of the solution was sprayed into a heated tower where the droplets turned to powder almost instantly.

Over time, the Nestlé company has kept the focus on innovation of the product, in 1952 pure soluble coffee was in introduced In 1965 solely using roast coffee beans, freeze dried soluble coffee was developed and in 1967 coffee granules were introduced. In 1994 Nestlé invented the full aroma process, which improved the quality of the product further.

These innovations have ensured that Nescafe maintained the position as the world’s leading coffee. (2)

Case study

Introduction

Nescafe is a brand of instant coffee produced by Nestlé. It is acknowledged as the world’s leading instant coffee brand, estimated to be worth $12bn. It is the fourth most popular beverage after Coca-Cola, Pepsi and Budweiser. Nescafé competes with ground coffees for market share. The market for ground coffee is...

References: 1. Nestlé [homepage on the Internet]. No date [cited 2012.01.10]. Available from: http:// www.nestle.com/
2. Nestlé [homepage on the Internet]. No date [cited 2012.01.10.]. Available from: http:// www.nestle-family.com/
3. Adwomen [homepage on the Internet]. No Date [cited 2012.01.10.]. Available from: http://adwomeninenglish.blogspot.com/2009/02/how-nescafe-convinced-women.html
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