Nestl Corporation Nescaf 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 Nescaf per second. Grounds for divorce Coffee Baths in Japan 450,000 farmers work with Nescaf worldwide

History
1866 - Nestl established Switzerland by Henri Nestl
1900 started operating factories in United States, Germany, and Britain.

World War I Difficulties to find raw materials

During World War II Nescaf became a staple in the army

1938 - Max Morgenthaler introduced Nescaf

There are 8 lines in Nescaf Nescaf 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 worlds 50% of coffee beans

Non-Alcoholic Hot Beverage Market Segmentation

1% 40%
Espresso

46%

Instant Coffee Other

5%

8%

Rost and Ground Tea

SWOT Analysis
Strengths
Target Marketing
Nescaf caters to the needs of all its customers around the world

Weakness
Brand Name
Nestl had a number of recalls in 2008
Recalls affect all products of Nestl

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 Nestls number one competitor

Holds the second largest market share of coffee industry

Global Market Expansion

N
Gift enter China in 1988

Exported to France 1938: Nestl introduces Nescaf.

Nescaf enter U.S in 1938

Advertise ment enter Japan in1961

Global Market Expansion Cont.

Nescaf works with coffee bean growers to help improve crop yield
4%

2008 China Beverage Market

Coffee

Coffee Tea Beverage Fruit& juice Carbonated Soft Drink

13%

13%
Tea

Milk Beer

Nescaf has changed its marketing technique to suit the Chinese tradition of Gift Giving

8% 9% 10% 9%

19%

Water Wine Other

15%

Challenges
2005 China Coffee market size

80% 70% 60% 50% 40% 30% 20% 10% 0%

Nescaf occupy 43%

73%

market size

11%

16%

instant coffee

Canned coffee

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 Nescafs 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 Nescaf 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