Nestlé Corporation Nes “Great Start of a Day”
Transcription
Nestlé Corporation Nes “Great Start of a Day”
Nestlé Corporation Nescafé Instant Coffee “Great Start of a Day” Created By: Laura Greff, Enni, Sean, Cherry Class: International Business Teacher: Rolf Butz Date: Oct. 26, 2010 Fun Facts • People drink 4,600 cups of Nescafé per second. • Grounds for divorce • Coffee Baths in Japan • 450,000 farmers work with Nescafé worldwide History • 1866 - Nestlé established Switzerland by Henri Nestlé – 1900 – started operating factories in United States, Germany, and Britain. • World War I – Difficulties to find raw materials – During World War II Nescafé became a staple in the army • 1938 - Max Morgenthaler introduced Nescafé – There are 8 lines in Nescafé – Nescafé Classic, Gold Range, Espresso, Premium Range, Decaf, Specialties Range, Frappe, 3 in 1 Industry Analysis • 80% of American adults, 27% of teenagers drinks coffee • Coffee is mostly drank by people between the ages of 45-55 • The coffee industry has over 108 million consumers • Only five companies buy world’s 50% of coffee beans Non-Alcoholic Hot Beverage Market Segmentation 1% Espresso 40% 46% Instant Coffee Other 5% 8% Rost and Ground Tea SWOT Analysis Strengths • Target Marketing – Nescafé caters to the needs of all its customers around the world Weakness • Brand Name – Nestlé had a number of recalls in 2008 • Recalls affect all products of Nestlé SWOT Analysis Opportunities • Emerging Markets – China and India have the fastest growing coffee markets Threats • Growth of coffee industry – There are over 17,000 coffee shops in the U.S. Competitors • The Best part of waking up – Founded in 1850 – P&G bought the company in 1963 – Number one selling instant coffee in U.S. • The 4 dollar coffee – Starbucks is moving in the international game and is gaining ground in countries such as China – It is making its way into the instant coffee market Competitors Cont. • Maxwells Coffee – “Good to the last drop” – Started in 1892 by Kraft • Kraft is Nestlé’s number one competitor • Holds the second largest market share of coffee industry Global Market Expansion N Exported to France 1938: Nestlé introduces Nescafé. Nescafé enter U.S in 1938 Advertise ment enter Japan in1961 “Gift” enter China in 1988 Global Market Expansion Cont. 2008 China Beverage Market • Nescafé works with coffee bean growers to help improve crop yield Coffee 4% • Nescafé has changed its marketing technique to suit the Chinese tradition of “Gift Giving” 13% Coffee Tea Beverage Fruit& juice Carbonated Soft Drink 13% Tea Milk Beer 8% 19% 9% Water Wine 9% 10% 15% Other Challenges 2005 China Coffee market size 80% 70% 60% 50% 40% 30% 20% 10% 0% Nescafé occupy 43% 73% market size 11% instant coffee Canned coffee 16% Fresh Ground Coffee Short-Term Recommendations • Marketing -Give People lucky prize • Change the Glass Jar to new materials – Only use the glass for decorative gifts – Safety Hazard • Make Nescafé’s Special Mug – This mug would be a coupon for future purchses Long-Term Recommendations • Vending Machine - The first coffee vending machine was created in 1946 • Give people free Nescafé • Expand Its Distribution Chain - Can stop the fake products appear in market Thank You We hope that we give everybody a “Great Start of a Day”