TABLE OF CONTENTS:

Executive Summary. Introduction Part 1: Investigate the concept and process of marketing. 1.1 What is Marketing 1.2 Marketing Process 1.3 Marketing Objectives Of Nestle And Nescafe 1.4 Marketing Audit Part 2: Explore the concepts of STP 2.1 What is Macroenvironment and Microenvironment 2.2 What is Market Segmentation 2.3 What is Targeting 2.4 What is Positioning 2.5 Buyer Behaviour Affecting Two Different Situation Part 3: Identify and Analyse The Individual Elements Of The Extended Marketing Mix. 3.1 What is Marketing Mix 3.2 Product 3.3 Place 3.4 Price 3.5 Promotion 3.6 Packaging 3.7 Process 3.8 People 3.9 Physical Evidence Part 4: Apply The Extended Marketing Mix To Different Marketing Segments and Contexts. Part 5: Provide Recommendations Conclusion References and Bibliography

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Diagrams: Fig 1.1: The selling and marketing concepts Fig 1.2: SWOT Of Nescafe Fig 2.1: The Marketing Environment Fig 2.2: Microenvironment Of Nescafe Handle Or Deal With Fig 2.3: Steps In Market Segmentation, Targeting and Positioning Fig 2.4: Target Segmentation Strategies Fig 2.5: Classification Of Nescafe Products in Terms Of Target Market. Fig 2.5: Position Of the Firm. Fig 2.6: Factors Influencing Consumer Behaviour Fig 2.7: Four types Of Buying Behaviour Fig 2.8: An example of Buyer Decision Process Fig 2.9: Characteristics Of Business Markets Fig 3.1: 7Ps Of Marketing Mix Fig 3.2: Nescafe Products Fig 3.3: Product Classification Fig 3.4: Product Mix Of Nestle Fig 3.5: Boston Matrix OF Nestle Product Fig 3.6: Product Life Cycle Fig 3.7: Nescafe Marketing Channels Fig 3.8: Value-Based Pricing Fig 3.9: Nescafe Marketing Communication Fig 3.10: Pull Promotion Strategy Fig 3.11: Packaging Of Nescafe Fig 3.12: Process Of Nescafe Fig 4.1: Nescafe Products In UK Fig 4.2: Nestle Distribution Centre In UK

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Executive Summary: Marketing is a place where the product is right, in the right place, at the right time. The author has chosen Nestle and Nescafe as the company and product respectively. The purpose to learn marketing is to know, how does the firm fulfills the needs and wants of the consumer and adapts to the change in the market. What are the micro and environmental factors that lead in marketing decisions, the STP of the product and how does the product affect in the consumer buying and business buying. The 7Ps of marketing mix have been stated. The author has also learnt how does one brand affect in different countries (international market).

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Introduction: Nestle India is a subsidiary of Nestle S.A of Switzerland. With seven factories and a large number of co-packers, Nestle India is a vibrant company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction. The company insists on honesty, integrity and fairness in all aspects of its business and expects the same in its relationships. This has earned it the trust and respect of every strata of society that it comes in contact with and is acknowledge amongst Indias Most Respectable Companies and amongst the Top Wealth Creators Of India. It provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods. The company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. Nestle India manufactures products of truly international quality under internationally famous brand names such as NESCAFE, MAGGI, KIT KAT, BAR-ONE, NESTEA AND MILKMAID and it has also introduced products of daily consumption such as Nestle Milk, Nestle Fresh n Natural Dahi. About Nescafe: The rich taste of the coffee is reflected in its rich history. The beginning of Nescafe can be traced all the way back to 1930, when the Brazilian government first approached Nestle. The new product was named Nescafe a combination of the Nes-root of Nestle and the word caf. Nescafe was first introduced in Switzerland on April 1,1938. Its popularity grew rapidly through the rest of the decade. Coffee has become the beverage of choice for teenagers. Nescafe brings the world best cup of coffee. For Nestle, mother brand of Nescafe has created and maintained brand equity for 131 years. It bas been one of the most professional global brand. Nescafe wants to maintain its image of cool and trendy. Nescafe emphasis on its promise that just having Nescafe you can begin your day with active, lively and full of new idea, that New day can begin everyday follow by slogan 1 new day for beginning 1 new aspect of working.

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Investigate the concept and process of marketing in your chosen organisation 1.1 What is Marketing? According to The American Marketing Association (marketing management; 13th edition; 2009; p.6) the formal definition is: Marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisations and its stakeholders. The management process of anticipating, identifying and satisfying customer requirements profitably. Chartered Institute of Marketing, UK Both the definitions emphasize that marketing is identifying the needs and wants of the consumer. Before in the old times marketing was only selling and telling but today its about satisfying the consumer needs. It means that how will you meet the needs profitability. For example IKEA who noticed that people want good furniture at a substantially lower price, it created knockdown furniture. Here we come to know how the firm researched what the consumers want and how they turned in to a profitable business. The marketing concept emerged in the mid 1950s.Instead of productcentered, make-and sell philosophy business shifted to a customer centered, sense and respond philosophy. It views marketing not as hunting but as gardening. The job is to find the right products for their customers not to find the right customers for their product. According to Theodore Levitt of Harvard drew a perceptive contrast between the selling and marketing concepts: selling focuses on the needs of the seller; marketing on the other side focuses on the needs of the buyer.

Fig 1.2: The selling and marketing concepts. (Source: Principles of marketing; Twelfth Edition; 2008; p.10)

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Nescafe is adapted to marketing concept. With respect to the environment and people, Nescafe has been one of the most popular coffee brands and wants to create value not only to customers but also to the farmers. Nescafe is available around the world in different blends and flavors and which are also adapted to the local taste. Nescafe comes in different sizes and packages from the affordable price products from premium price products. 1.2 Marketing Process: SWOT :It draws the critical strengths, weakness, opportunities and threats from the strategic audit.

Fig: 1.3: SWOTS ON NESCAFE (Source: Field Research)

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1.3 MARKETING OBJECTIVES OF NESTLE AND NESCAFE: The objective is to be the worlds largest and best-branded food manufacturer while insuring that nestle names is identical with the products of the highest quality. Its chief objectives are : To achieve compatibility with international voluntary standards on environmental management systems. To build mutual trust with consumers, governmental authorities and business partners. To ensure continuous improvement of nestles environmental performance. Employing new technologies and processing By measuring the cost and benefits to business of its activities. To establish benchmark for good business practice, Review targets. Nescafe global objectives are that it does not only want to establish its products in emerging markets, but also at developed markets. Nescafe wants to target the youth and add strong position in immediate consumption. Nescafe wants to be the first worlds brand for Nestle that is a leading beverage brand worldwide. Nescafe aims to satisfy the consumers without alienating the brands existing loyalty base. It also aims to drive modernity and aspiration in the coffee category. 1.4 Marketing Audit: A comprehensive, systematic, independent and periodic examination of a company environment, objectives, strategies and activities to determine problems areas and opportunities and to recommend a plan to improve the company marketing performance. The Nestle market audit team main objectives are to assess the strength of the company system of internal controls and identify areas. There are several marketing audit questions for example there will be questions related to the macro environment, task environment. It provides nestle value-adding assistance to Top management in the markets and at the international headquarters. Objectives Of the Nestle Group Audit: The objectives of the auditors are to ensure compliance with corporate standards and local legislation. They help to improve operational efficiency and help to facilitate the application of best practices throughout the group.

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Fig 1.4: Objectives Of Nestle Audit. (Source: Article; Nestle Group Audit; Available at: http://www.careers.nestle.com/join_che/Nestl+Audit+Group.htm; Accessed at: 6/12/2010) Nestle audit is to underline principle in actively involving staff. It means conducting interviews with all levels of staffs to become familiar with the processes and systems. Nestle objective is to have new auditors learning and having experience which is achieved by giving the auditors on-the-job training, in-class training program, continuous performance reviews and mentorship program.

Critical Analysis: Nescafe weakness is that it emphasis on science side over than food side. However Nescafe should change its promotion strategies and make an awareness of coffee being enjoyed as a drink rather than making an awareness of 100% natural coffee. To overcomes its threat Nescafe could also try and segment in tea segment.

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2 Explore the concepts of segmentation, targeting and positioning. 2.1 What is macroenivronment and microenvironment? The marketing environment consists of the factors and forces outside marketing that affect marketing management ability to develop and maintain successful transactions with its target consumers. Kotler (1998)

Fig 2.1:The Marketing Environment (Source: Principles of Marketing; Fifth European Edition; 2008; p.179) In Nestle the Internal environment ensures that the employees are on side with goals of an organization. They also have a direct impact on product quality, dependability and overall productivity and as they are internal market they impact every department within an organisation. the Microenvironment includes are the company, suppliers, marketing intermediaries and customers. Company is the internal market so the firm tries to ensure that the employee work towards the goal of the organisation and satisfy the external market. Suppliers are those who provide resources like material and labour to produce goods and services. They add to customers the overall value delivery system. Market intermediaries are those who help the company to promote and sell the product to the final buyer. Market intermediaries of Nestle include and help the company to promote, sell and distribute its good to final buyers. The physical distribution helps to determine the ways to store and ships the products to reach their destination. Marketing

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service agencies included in Nestle are market research firms, advertising agencies and media firms to target and promote the products to right market.

Nescafe works in coordination with the marketing intermediaries to make its product Nescafe available and visible to the valuable customers.

Fig 2.2: The diagram shows how Nestle labour and material suppliers handle and deal with. (Source: Field Work)

Nestle handles with quality, quantity, price and stability of both material and labour supplies. Management plots out the strategies for labour strike, supply shortages, and delays to avoid increasing the cost of production, which can badly affect sales in short run and customer satisfaction in long run. Macroenivronment: Demographic: It includes age, sex and income but it does not affect Nescafe as its a product that anyone can buy and coffee is made available to everyone in the environment. Natural environment: The natural environment proved ideal for cultivating coffee so if the cultivation isnt be done properly then the firm wouldnt have a good quality to produce.

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Fig 2.3: Steps in market segmentation, targeting and positioning. (Source: Principles Of Marketing; Twelfth Edition, 2008; p.173) 2.2 What is Market Segmentation? Market segmentation means dividing a market into smaller group with distinct needs, characteristics, or behaviour who might require separate products or marketing mixes. (Principles of marketing; Twelfth Edition; 2008; p.172) The above definition means that as markets consist of different buyers they would naturally differ in their wants, needs, resources and buying practices. Through market segmentation companies divide large heterogeneous markets, which will make the company produce efficiently and effectively products or services to consumers. Geographically Nescafe has divided the country into four i.e. southern, northern, eastern and western. Of the four regions southern is the area where coffee is consumed the most. In the southern region, hard (roasted) coffee is consumed most. Where was in northern region, Nescafe instant coffee is considered a lot. Demographically Nescafe has tried to segment every age group, families, region, gender and different socio-economic. Nescafe is a mass marketing though it focuses on the youth yet everyone can afford to buy and can atleast have a cup of Nescafe in a day.

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2.3

What is Targeting?

A target market is a set of buyers sharing common needs or characteristics that the company decides to serve. (Principles of Marketing; Fifth European edition; 2008) The above definition states that the producer targets the market or customer according to its products. Target markets: Previously Nescafe was targeted to morning people but now their target is among the young people. According to Andrew Ward, worldwide account director of Nescafe has launched a $30 million global campaign, specifically aimed at 16-24 years old. One think that soft drinks are young people beverage choice but according to McCann-Erickson World Group, young people were interviewed and in that long research study it indicated that coffee was the most popular drink. Nescafe seized to relaunch its brand in MTV-style campaign for a new generation of customer that is targeting at the youth. Targeting the market via a coffee website and online links is another strategy adopted by Nescafe. There will also be a global online competition to win tickers for the MTV video music rewards in New York. There will a youth oriented website Nescafe Live on which users can exchange ideas and its also launching a web application tool called Nescafe Pod which will allow the users to exchange information and video images. A Nescafe COFFEE-MATE, which is a cold coffee, was launched recently in India. As they are consumers who like cold coffee so nestle targeted the cold coffee market. NESCAFE CLASSIC is targeted to the urban youth and the advertisement shows youths enjoying the Nescafe classic experience and ends with the tagline Coffee at its best. NESCAFE SUNRISE Premium is the refined instant coffee; the target segment of the sub-brand is the premium urban consumer. The tagline for this coffee is Jeevan mein aapke naye Sunrise. NESCAFE SUNRISE Special is a granulated instant coffee brand but targeted at mid-segment and has an affordable price tag associated with it. NESCAFE CAPPUCCINO is targeted to premium urban consumers. Nescafe frappe targets to the core audience aged 17-30. It had concentrated on the theme of the magic world of endless pleasure.

Fig 2.4: Target Marketing Strategies. (Source: Principles Of Marketing; Fifth European Edition; 2008; p424) Marketing 12 December 2010

As we see in the above diagram we can give an example of the following marketing:

Undifferentiated Marketing : Nestle Classic

Differentiated Marketing: Nescafe Sunrise Premium and Nescafe Sunrise Special

Concentrated Marketing: Nescafe Cappuccino, Nescafe 3in1 sachet.

Fig 2.5: Classification Of Nescafe Products in terms of Target Market Strategies. 2.4 What is Positioning? Position is (Marketing management, 13th Edition; 2009; p.282) the act of designing the company image to occupy a distinctive place in the minds of the target markets. A product position is the way the product is defined by consumer attributes. A positioning expert said, Products are created in the factory, but brands are created in the mind (Principles OF Marketing; Twelfth Edition; 2008; p191) Nescafe positioning is 1 coffee cup 1 good feeling. All people have known to brand in the different character such as to pass love between two person, red cup, happiness, and co-workers. Nescafe mug red cup is popular. Nescafe Classic is positioned as 100% Pure Instant Coffee. Nescafe Cappuccino is being positioned as a true caf.

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Fig 2.6: The position of the firm. Nestle is high in market share with high quality.

2.5 Buyer Behaviour affecting Two Different Situation: Customer Buying Behaviour: Consumer buying behavior is the buying behavior of final consumers who buy goods and services for personal consumption. Author and Poet Rudyard Kipling (Principles of Marketing; Fifth European Edition, 2008.p.238) wrote: I have six honest serving men They taught me all I knew Their names were what and where and when And why and how and who These six questions what and where and when and why and how and how are they excellent guide to analyse consumer behavior

Fig 2.7: Factors influencing consumer behavior. (Source: Principles Of Marketing; Twelfth Edition; 2009; p.123)

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Types of Buying Decision Behavior:

Fig 2.8: Four types of buying behavior (Source: Adapted from Henry Assael, Consumer Behavior and Marketing Action, Boston: Kent; 1987; p.87) Nescafe will be classified as a Habitual Buying Behavior. It occurs under conditions of low consumer involvement and little significant brand difference. Consumers will have little involvement as the consumer go and jus reach for a brand. Consumers do not form strong attitudes toward the brand, the select it because it is familiar.

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Fig 2.9: An example of buyer decision Process on Coffee (Source: Field work).

A company must strategize to gets its brand into the prospects awareness, consideration and choice of sets. However company must identify the other brands in the consumers choice sets so that the firm can plan effective competitive appeals.

Organisational Buying Behavior: It is the buying behavior of the organisations that buy goods and services for use in the production of other products and services or for the purpose of reselling them to others at a profit.

Fig 2.10: Characteristics of Business Markets. (Source: Principles of Marketing; Twelfth Edition; 2008; p.151) Business buying is done Business to business (B2B). For example Nestle products when the retailers buying from manufactures they just dont buy one or two packets they buy in bulk quantities.

Critical Analysis: In diagram 2.5 the author has classified Nescafe products in term of target marketing strategies. However Nescafe does not lie in Micromarketing however Nescafe could introduce its product for the local consumer and fulfill their needs and wants.

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Nescafe should also consider Psychological factors for consumer buying behaviour this will help the firm to know to perceptions of the consumers. As Nescafe being Habitual Buying behaviour it could try and classify on loyalty base and strong coffee drinkers.

3.1 What is Marketing Mix? "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way - probably the best-known way - of defining the marketing mix, and was first expressed in 1960 by E J McCarthy.

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Fig 3.1: The 7Ps OF Marketing Mix. (Source: Principles OF Marketing; Eleventh Edition)

3.2 Product: A product is anything that can be offered to a market satisfies their needs and wants, including physical goods, services experience, persons, places and so on.

Fig 3.2: Nescafe Products (Source: Field Work)

Nescafe on the basis on product classification is:

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Fig 3.3: On the basis of product classification (Source: Field Work)

Nestle strategy was to broaden consumption, opportunities for coffee and getting the product to the consumer wherever and however is wanted. According to the Food and Drink weekly article of September 1999 the goal is to be within arm reach wherever consumers go. This means setting up coffee bars in malls, theatres, and offices and at gas station outlet. Nescafe is redefining the coffee into an epicure delight. In Asia and Europe the main idea is to add new ready to drink coffee beverages. Thus nestle wants Nescafe brand to develop alternative channels other than supermarkets, to offer to consumers high quality products whether its hot or cold beverages. Product Line Decision: A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through same outlet of market or fall within the given price range. Nescafe is an UPSelling product length and Nestle is a Cross-Selling product line-length. Product Mix: A product mix is the set of all products and items a particular seller offers for sale (Marketing management; 13th edition; 2009; p.321) Product mix consists of various product lines. A company product mix has certain width, length, depth and consistency.

Fig 3.4: Product Mix Of Nestle (Source: Field Work)

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Boston Matrix: It Shows the Products in terms of market size and market share.

Fig 3.5: Boston Matrix of Nestle Product As I have save chosen the product Nescafe, we can see in the above diagram that coffee is in the cash cow category. It has high market share and low market growth. It means that the business is in mature stage. As the SBU (Strategic Business Unit) are quiet low and a large amount of cash is generated, as the customers of this product are loyal. However the growth stage of this product is in maturity stage

Fig 3.6: Product Life Cycle of Nescafe (Source: Article; Product Life Cycle; (Online) Updated at 2010; Available at

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http://www.12manage.com/methods_product_life_cycle.html; Accessed at- 28/11/2010) 3.3 Place: It is known as Distribution, who plays a key role in the physical transfer of products from the factory/place of production to the place of point of purchase by the final consumer. Importance of Channels: A set of interdependent organizations that help to make a product or service available for use or consumption by the consumer or business user. Marketing channels represent a substantial opportunity cost. One of the chief roles of marketing channels is to convert potential buyer into profitable customers. Marketing channels must not just serve markets they must also make markets. Nescafe product is available is at all the general stores, groceries and supermarkets and all leading food and beverages stores. Channel of Distribution:

Fig 3.7: Nescafe marketing channels. (Source: Field Work)

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3.4 Price: Nescafe has moved from cost based pricing to value based pricing. Due to its R&D, product innovations and from its people Nescafe adapts competitive advantage.

Fig 3.10: Value based pricing (Source: Thomas T.Nagle and Reed K.Holden, The Strategy and Tactics of Pricing 3rd Ed. p.4) 3.5 Promotion: Promotion mix is the specific mix of advertising, sales promotion, public relations, personal selling and direct marketing tools that company uses to persuasively communicate customer value and build customer relationships.

Fig 3.11: Nescafe marketing communication (Source: Field Work) Nescafe Promotion Strategy: It uses above-the-line promotion as well as below the line. Above the line promotion are the promotional activities carried out through mass media. Nescafe does it promotion thorough advertising campaigns like television, newspapers, Internet, pubic relation activity etc. Below the line promotion refers to non-media communication. Example: sales promotion, point of display etc.

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Nescafe does a pull strategy promotion.

Fig 3.12: Pull Promotion Strategy. (Source: Principles Of Marketing; Twelfth Edition; 2009) 3.6 Packaging: Packaging protects food products from spoilage and keeps it safe, all the way from the manufacturing stage right to storage, distribution and consumption. Nestle is committed to contributing to environmental sustainability and improve the packaging of the product. Nescafe is committed to continuously improving the environmental performance by packaging. Nescafe objective is to develop safe and wholesome food packaged foods using the most appropriate and efficient material available and at the same time satisfying consumer requirement and expectations.

Fig 3.13: Nescafe packages of few products (Source: Field Work)

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3.7 Process: Processes are basically systems used to assist the organization in delivering the service

Fig 3.14: Process of Nescafe (Source: Article; how coffee beans become a favorable cup of Nescafe Classic; 2007; Available at http://www.nestle.com.ph/nescafe/positivecoffeenews/topics_expertise_howc offeebeans.htm; Accessed at 15 /10/2010) Nescafe first step begins with farmers handpicking the coffee beans that are of ripe berries. Then the cherries undergo a post harvest treatment in the farmers processing facility then they are poured into the flotation tank, which separates floaters from sinkers. Floaters are insect damaged, coffee berries with defect while sinkers are the good quality, fully ripe. Then the coffee undergoes a cleaning process and segregates the good beans from the rest of the beans like black beans, broken beans and moldy beans and ensures the best tasting coffee. Then green coffee beans are bought to the Buying Station in Davao City, Dumaguette City San Francisco and other places where they are shipped to the Nescafe Coffee Factory in Cagayan de Oro. The roasting procedure is the final stage that makes the Nescafe to perfection. It is one of the important processes. In Nescafe they use computerized roasters to ensure the quality consistency of the coffee beans. Then the beans undergo density and color changes. Nescafe roasters rely on smelling the aroma produced during the process to ensure whether the coffee beans are roasted properly. After roasting the beans are grounded and brewed. Nescafe is then ready for packaging in jars and sachets and is shipped nationwide.

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3.8 People: Nestle in into human relation approach (Maslow Theory, Mayo, Herzberg Theory). Their priority is more on people oriented rather than systems oriented. They follow democratic leadership where open communication and active cooperation is there and everyone contributes to improve the environment. Nestle gives their people safety needs (Maslow Theory). Nestle is decentralized within the framework imposing increasing flexibility. Nestle follows the concept of continuous improvement (Kaizen method). More of informal authorities as all the members are concerned adding value to the company. Nestle forms code of conduct so that everyone can be involved and committed.

3.9 Physical evidence: There is not much of physical evidence as Nestle produces products of food and beverages where consumer goes and buys from a retail shop or supermarket.

Critical Analysis: Nescafe is a consumer and a convenience product. Nescafe could also segment its products into specialty products. Though Nescafe has its product in range in premium and Specialties it can try and make the product with unique characteristics or brand identification for a significant group of buyers so that they are able to make a purchase. Nescafe Cappuccino falls in specialties range but the product is made available to everyone, however being a specialties product Nescafe can try and make it unique coffee and make a brand image in specialties product. Nescafe has many products and has a brand extension however it can adapt line extension. Line extension is extending an existing brand name to new forms, colors, sizes, ingredients or flavors of an existing product category. For example Nescafe being into coffees could extend in shakes for example Nescafe frappe could extend in milk shakes and producing in different flavors. Nescafe distribution channel could also expand from producer to consumer. This will help the producer know what the consumers want and produce those products efficiently. Nescafe being a competitive advantage can also go for product bundle pricing. Product bundle pricing is combining several products and offering the bundle at a reduced price. For example Nestle has its product into coffee as well as milk. However it can bundle and sell the milk and coffee where consumer will buy as it sells at a reduced price. Nescafe could also adapt seasonal discount for example during winter consumer would prefer to drink hot coffee so Nescafe should try and focus on Nescafe Classic or Nescafe Cappuccino and sell it at reduce price and during autumn it should focus on Nescafe Frappe or Nescafe Latte and try and sell it at a reduced price.

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Nescafe can also collect feedback, which will help the firm to know what the consumers feel about the product and whether consumers are satisfied or not. For promotion Nescafe could also adopt objective-and-task method promotion strategy where the company can set its promotion budget based on what they want to achieve. The methods include 1) defining specific promotion objectives, 2) determining the tasks needed to achieve those objectives, 3) estimating the costs of performing these tasks. Nescafe having this promotion style will make the consumers aware of the firm objectives.

4 Apply the extended marketing mix to different marketing segments and contexts. Product:

Fig 4.1: Nescafe product in U.K. (Field Work)

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Nescafe Original targets under -25 markets with a tagline Become a Morning Person. The product attracts students and young professionals. Nescafe partners blend is segmented as ethical coffee. Nescafe also launched 43m ad push to convince the customers that Nescafe instant coffee is all natural product. It targets the young ones to see instant coffee as a 100% natural product. The tagline was Coffee at its brightest. Nescafe does its promotion by above the line and below the line. For example Nescafe Original it does its promotion through television and outdoor campaign and is also a sponsorship of a Dempsey Breakfast Show on Today FM. Nescafe Gold Blend is the leading brand within the premium sector and is hugely successful as Coffee Lovers Coffee television campaign, which makes it a broad recognition for the brand. Nescafe has its various other products in premium sector that Alta Rica, Cap Colombie, Espresso, Black Gold and Blend 37. However Nescafe has also introduced two new premium coffees that is Caf Parisien, which is a blend of Arabica and Robusta beans blended in France and Nescafe Suraya, which is made with 100% Arabica beans. Price: The price strategy Nescafe uses is Competitive advantage. Place: Nescafe is available in all small retails shops and supermarkets outlets. Its the same distribution channel they follow as in India.

Fig 4.2: Nestle UK, Bardon distribution centre

Promotion: the promotion is done by above the line and below the line. For example Nescafe does its promotion by Nescafe discount vouchers and various other promotion are being used.

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Packaging:

Fig 4.2: Packaging Of Nescafe In U.K (Source: Field Work) Process: The first process is blending as the coffee beans vary naturally from region to region and from season to season. Arabic beans produce a rich, smooth flavour, while Robusta coffee has a strong, harsher flavour. In this process there is a skill involved in tasting sample of the various beans and selecting the right blend to produce a high quality. The aroma of coffee beans is then bought in roasting process. Temperature and time are carefully controlled to develop to generate the coffee flavour. The roasted coffee beans are then grounded into a coarse powder. It is the same as Roast and Ground coffee where the consumers buy from the local supermarket or coffee shops. The roasted coffees are out in a series of extraction cells. It is a stage where the coffees extract the coffee flavour, aroma and colour from the coffee grounds into hot water. A series of cells is used producing stronger and stronger coffee, until the coffee consists of highly concentrated liquor. Then the coffees undergo in drying process where the soluble coffee is produced by the drying the liquor in one of two ways. That is spray drying and freeze-drying. Spray drying is used for most soluble coffees, whereas freeze-drying is used for the most expensive, higher quality coffee. Soluble coffee granules are produced from the powder by spraydrying by a process call agglomeration. The powder is wetted slightly so that the particles stick together. The next stage is aromatization where Nescafe gets the beautiful aroma of freshly ground coffee is captured during the grinding process and added back to the coffee jus before it is filled into the jars. The soluble coffees are finally filled into glass jars or sachets. Filling is carried out in an inert gas atmosphere to prevent any deterioration of the flavour of the coffee during storage. People: Nestle people act as responsible employer. Nestle achieves superior business results and ensures a future sustainable growth by maximizing the performance of Nestle people and ensuring they have the motivation and skills to perform to their full potential. The process of Nescafe made in India and UK does differ from each other and we come to know that the quality differs compared to India coffee and UK

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coffee even though its the same product for example Nescafe Classic the taste will vary from India and UK.

Critical Analysis: Nescafe in UK segments and focuses only in the premium sector however it could also segment for the lower and middle sector as well. As compared to India the products are varies highly from each other. In India, Nescafe segments in all the markets whereas in UK it only segments in the premium sector. Being in the Premium sector Nescafe can also try and target specific group for each coffee for example Nescafe Partners Blend could target Partners so that the products are classified into different areas.

Conclusions: As marketing has changed from selling point to marketing concept Nescafe has adapted to marketing concept. Being one of the most popular coffees Nescafe wants to create value not only to consumers but also to the farmers. The author as implemented how the market does its STP (Segmenting, Targeting and Positioning). Nescafe has range of products and has done its STP is different areas. For example Nescafe Classic its segmentation in demographic is for everyone but is targeted at youth as its ends with the tagline Coffee at its best. Nestle is positioned as high market share and high quality. The buying behaviour in B2C and B2B does vary as consumers decide for a particular product and has factors that will lead to the buying whereas for business they buy in bulk. . Nescafe is Habitual Buying Behaviour. However Nescafe is more of B2C than B2B The 7Ps. Of marketing mix has been discussed. Nescafe focuses more on product, packaging and process. As Nescafe has varieties of product from hot beverages to cold beverages, the products are been classified as non-durable good and convenience product as well it is a consumer product. Nescafe is an UP selling product length and Nestle is a cross-selling product line length. As the author has applied Boston matrix, Nescafe is in the cash cow category at a stage of maturity. Nescafe has moved from cost based pricing to value based which shows that Nescafe gives importance to consumers first and according to it the price is set. Nescafe adopts a pull strategy promotion. The packaging of Nescafe has made the product attractive. The process is one of the important marketing mix as if the process is done well then only the quality will be efficient. Nescafe in UK does vary completely; the products of Nescafe in UK are segmented to premium sector whereas Nescafe in India is not only in the premium sector but also segmented in other sector that is the mid segment.

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5 Provide any recommendations: Nescafe could expand its international products like Nescafe decaffeinated, Nescafe Parisien and Nescafe Partners in India so that not only different varieties will be available to customers but also a higher brand name will be achieve and it will help Nescafe to segment in the luxurious lifestyle and will be a step to enter into niche marketing as now import of foreign products is common and will make Nescafe classified as premium product in India. Nescafe could also sell cans of coffee and segment in milkshakes which will make available to consumer anywhere, as their strategy is to make the coffee available to consumers wherever and however they need so this will make it easy for the working groups, students and colleges, travelers. As from the below picture of market share Nescafe market share is 34.3% in 2006 whereas 35.4 % in 2007 however for tea the highest market share is 22.5 % in 2006 and 23.8 in 2007 and soft drinks 33.9% in 2006 and in 2007 31.9% which shows that coffee is being the highest consumption by the consumers. As in India more of tea is consumer by the consumers but now after the reading the market share the author states that the consumers now prefer more of coffee. As Nescafe products vary highly from county to country Nescafe could start its own coffee shop like Barista or Caf Coffee Day where they could produce all types of coffee from all countries in one shop which will make the consumer have a varieties of ranges to choose as well and lead to a higher brand image

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and identification. As we read the market shares as nestle coffee being the highest market share and consumers now prefer coffee to tea or aerated drinks Nescafe could segment in aerated drinks and produce cold coffees and shakes and hot coffee being a competitor to tea markets.

Fig 5.1: Market Shares of Coffee Companies (2006-2007) (Source: Euromonitor-Supermarkets India April '08; Available at: http://www.zenithoptimediaindia.com/ringside3/May08/food.htm; Accessed at: 8/12/2010)

Fig 5.2: Market Share Of Tea Companies

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Fig 5.3: Market Share Of Soft Drink Companies.

Reference: Principles of Marketing; Fifth European Edition; 2008; Prentice Hall Europe; p.179, 424, 238, Principles Of Marketing; Twelfth Edition; 2008; Pearson Education Inc. And Dorling Kindersley Publishing; p.173, 191,123, 151

Bibliography: Marketing Management; 13th edition; 2009; Dorling Kindersley (India) Pvt. Ltd.p.6 Principles of Marketing; Fifth European Edition; 2008; Prentice Hall Europe Principles Of Marketing; Twelfth Edition; 2008; Pearson Education Inc. And Dorling Kindersley Publishing Henry Assael, Consumer Behavior and Marketing Action, Boston: Kent; 1987; p.87 Thomas T.Nagle and Reed K.Holden, The Strategy and Tactics of Pricing 3rd Ed. p.4) http://www.12manage.com/methods_product_life_cycle.html

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