Marketing strategy of Nescafe Cafe a La Carte

Posted by Zander Henry on Aug-22-2018

1. The vision of Nescafe Cafe a La Carte

The vision of Nescafe Cafe a La Carte is to be the leading quality service and product provider for customers. Being the best and the leading player means that Nescafe Cafe a La Carte marketing strategy and operations focus on:

• Providing high quality of products and services
• Providing value to customers
• Concentrate on building customer experience

2. The mission of Nescafe Cafe a La Carte

Nescafe Cafe a La Carte marketing strategy is grounded in its mission. The mission for Nescafe Cafe a La Carte is to be the favorite brand of the customers. This mission is essential for the marketing strategy of Nescafe Cafe a La Carte as it focuses on all operations and marketing activities in the direction of:

• Consumer centrism
• Using research to understand and influence consumers

3. Brand Equity of Nescafe Cafe a La Carte

Understanding and knowing the brand equity is vital for directing and giving meaning to the marketing strategy of Nescafe Cafe a La Carte. The knowledge of brand equity will help in shaping Nescafe Cafe a La Carte marketing strategy effectively – thereby facilitating the growth of business for Nescafe Cafe a La Carte.

3.1. Brand awareness

• Nescafe Cafe a La Carte has high brand awareness because of international operations
• The company focuses on higher budget allocation in the country of origin
• Each market for Nescafe Cafe a La Carte has modified marketing and strategic directives and plans

3.2. Brand association

• Nescafe Cafe a La Carte is directly associated with the brand name and product category
• Nescafe Cafe a La Carte has a broad product portfolio
• Nescafe Cafe a La Carte is associated with promising and delivering quality and innovative products
• Nescafe Cafe a La Carte is also associated with excellent customer service

3.3. Brand loyalty

• Nescafe Cafe a La Carte has been successful at gaining high consumer loyalty because of unique and influential marketing strategy
• Nescafe Cafe a La Carte has a global customer base
• Nescafe Cafe a La Carte keeps adding value addition to the products and product portfolio to keep consumers engaged

3.4. Brand asset

• Nescafe Cafe a La Carte has a substantial brand value
• Nescafe Cafe a La Carte also enjoys the high financial worth
• Nescafe Cafe a La Carte focuses on building a reliable and robust employee base

3.5. Brand element

• Nescafe Cafe a La Carte uses the brand element as a means of competitive advantage
• Uses adaptability in product, services, and marketing to meet different cultural demands

4. Situational Analysis of Nescafe Cafe a La Carte

The situational analysis will help in developing the marketing strategy of Nescafe Cafe a La Carte by conducting a thorough market analysis. This market analysis will aid in understanding the compatibility between external opportunities and other factors, and internal strengths – to be used to maximize the marketing influence of Nescafe Cafe a La Carte.

4.1. SWOT

4.1.1. Strengths

Nescafe Cafe a La Carte marketing strategy can benefit from the following internal advantages:

• Strong brand image
• Global distribution network
• Investment in market research
• Innovation

4.1.2. Weakness

Nescafe Cafe a La Carte faces challenges in marketing strategy because of the following weakness:

• Slow organizational processes
• High product prices

4.1.3. Opportunity

Nescafe Cafe a La Carte has the following possibilities of business growth:

• Green lifestyles
• Regional expansion
• Diversification

4.1.4. Threats

Nescafe Cafe a La Carte faces business threats because of the following factors:

• Increased competition
• Increased imitation

4.2. PESTEL

4.2.1. Political

• Nescafe Cafe a La Carte operates I markets with political stability
• Nescafe Cafe a La Carte has funding support from the government for small businesses

4.2.2. Economic

• Nescafe Cafe a La Carte enjoys high sales because of higher GDP
• Lower interest rates make business expansion and loaning easier for Nescafe Cafe a La Carte
• Low inflation strengthens the financial position of Nescafe Cafe a La Carte

4.2.3. Social

• Higher education and awareness increases sales of Nescafe Cafe a La Carte predict
• Nescafe Cafe a La Carte focuses on understanding consumers and fulfilling their demands through its offerings

4.2.4. Environmental

• Nescafe Cafe a La Carte has an active CSR program
• Nescafe Cafe a La Carte ensures environmental safety in all its operations

4.2.5. Legal

• Nescafe Cafe a La Carte is aware of local and global laws of business and human resource management
• Nescafe Cafe a La Carte abides by all statutes – especially labour law, discrimination law, and employee safety laws

4.3. Porter’s Five Forces

4.3.1. Threat of substitutes

• High risk of replacements
• Substitutes offer similar products at low prices

4.3.2. The threat of new entrants

• New entrants need high financial investment
• New entrants need updated technology for keeping par with industry progress

4.3.3. Bargaining power of buyers

• Sales made to end consumer directly
• Stocking of products at retailers, as well as own-controlled retail outlets

4.3.4. Bargaining power of suppliers

• Multiple suppliers of raw materials
• Suppliers are chosen after careful inspection, and through contracts

4.3.5. Industry rivalry

• High industry rivalry
• Players offer similar products
• Players compete through marketing to influence consumers

5. Marketing Objectives for Nescafe Cafe a La Carte: The Marketing Strategy of Nescafe Cafe a La Carte

Nescafe Cafe a La Carte marketing strategy has the following objectives for the current financial year:

5.1. Increased market penetration

• Increase top of mind recall for Nescafe Cafe a La Carte brand and products by 30%
• Increase sales for Nescafe Cafe a La Carte by 40% by the third quarter of the financial year
• Achieve a trial rate for new products of 10% during the first quarter of the launch
• Increase consumption rate of existing products by 45% during the current financial year

5.2. Enhanced brand recognition

• Increase top of mind recall by 65% during the current fiscal year
• Increase brand recognition by 80% during the first two quarters of the current financial year

5.3. Increased use of digital marketing

• Acquire 25,000 new online customers during the financial year
• Increase website traffic through using blogging and email tactics effectively by 505 during the first two quarters of the year
• Acquire 65,000 likes on the official Facebook page of Nescafe Cafe a La Carte during the first quarter of the financial year

5.4. Retail Growth

• Contract with five more leading supermarkets in the first quarter of the year to stock product at eye level shelving
• Contract with two leading online retail sites – eBay and Amazon – to stock our products, and increase accessibility for consumers globally by the second quarter of the financial year

6. Segmentation of Nescafe Cafe a La Carte

Nescafe Cafe a La Carte marketing strategy uses different means of segmentation to reach an increase in market penetration.

6.1. Demographic segmentation

6.1.1. Age

Nescafe Cafe a La Carte has consumers of age groups

• 20-45 years
• 45-60 years

6.1.2. Gender

• Nescafe Cafe a La Carte has a broad product portfolio for both males and females

6.1.3. Life-cycle stage

Consumers for Nescafe Cafe a La Carte, according to the marketing strategy, are in the following various life cycle stages:

• Single students
• Single graduates
• Single people living at home/not living at home
• Young couples without children
• Married couples with one to four children – all at home
• Married couples with one or two children in college
• Old married couples with an empty nest

6.1.4. Occupation

The marketing strategy devises the following occupations for Nescafe Cafe a La Carte consumers:

• Professionals
• Students
• House makers

6.2. Psychographic segmentation

6.2.1. Social class

• Nescafe Cafe a La Carte focuses on segments of middle-upper and upper social classes

6.2.2. Lifestyle

Nescafe Cafe a La Carte consumer segments have the following lifestyle characteristics:

• They aspire towards a better and higher living standard
• They want to be successful – professionally and socially
• They are not hesitant to try new things, products and services in life
• They are confident in their behaviour and attitude
• They are mainstreamers in their fields

6.3. Geographic segmentation

6.3.1. Region

• Nescafe Cafe a La Carte has operations spread across the western developed countries such as America, the united kingdom, and the Netherlands
• It also has operations in emerging markets such as Brazil, India, and China

6.3.2. Density

• The focus of Nescafe Cafe a La Carte remains on the urban part of the population

6.4. Behavioural segmentation

6.4.1. Personality

The marketing strategy defines personality characteristics for the consumers of the brand of Nescafe Cafe a La Carte, such as:

• Determined
• Confident
• Ambitious
• Hardworking

6.4.2. Usage frequency

• The consumer segments for Nescafe Cafe a La Carte are regular and frequent users of the product

6.4.3. Benefits sought

• Consumers seek functional benefits
• The focus, however, is more on the emotional benefits reaped from the consumption of the brand

6.4.4. Degree of loyalty

• Consumers are very loyal
• Have an emotional attachment with the brand

7. Targeting of Nescafe Cafe a La Carte Positioning of Nescafe Cafe a La Carte

The marketing strategy of Nescafe Cafe a La Carte targets consumer groups based on segmentation as follows:

7.1. Target market

• The target market for Nescafe Cafe a La Carte is from middle to upper class
• The target market is ambitious and desires to purchase high-end consumer products
• This target market also seeks affordability
• To meet target market expectations, the Nescafe Cafe a La Carte focuses on quality control

7.2. Mass marketing

• The marketing strategy of Nescafe Cafe a La Carte focuses on mass marketing
• This also requires unique marketing designs and product promotion programs
• Nescafe Cafe a La Carte makes use of one strategy to influence all segments

7.3. Undifferentiated marketing strategy

• Nescafe Cafe a La Carte does not differentiate between market segments
• It uses a single marketing strategy to target all segments and consumer groups
• Based on this, Nescafe Cafe a La Carte also created the marketing mix under the marketing strategy as a singular one for the whole market – regardless of the segmentation divides.

7.4. Focus on quality

• Nescafe Cafe a La Carte has created, developed, and maintained a brand that satisfies all consumers under the undifferentiated marketing strategy and mass marketing
• No compromise on quality has been made in the broad product portfolio
• To ensure the influence of a single marketing strategy, the Nescafe Cafe a La Carte has also adopted a consumer-centric approach in its overall marketing strategy and operations as well
• This was used for targeting strategy as well as for maintaining growth

8. Company Competitive Advantage in the marketing strategy of Nescafe Cafe a La Carte

The marketing strategy of Nescafe Cafe a La Carte stands out from the clutter and competition. Nescafe Cafe a La Carte has also achieved a sustainable competitive advantage in its marketing strategy. This is because of the following factors that Nescafe Cafe a La Carte has utilized:

8.1. Cost-effectiveness

• Nescafe Cafe a La Carte focuses on reaching consumers effectively rather than grandeur
• Nescafe Cafe a La Carte focuses on developing an integrated marketing approach
• The use of digital marketing efficiently and expertly has helped the company reach a wider audience at a lower cost
• Nescafe Cafe a La Carte has in-house copywriters for marketing campaigns which also helps in controlling costs
• Nescafe Cafe a La Carte also focuses efforts on ground activities – which are less expensive than commercial marketing tactics

8.2. Innovation

• Nescafe Cafe a La Carte has stayed updated with latest developments in marketing research and marketing knowledge
• Nescafe Cafe a La Carte makes use of new and innovative tactics to reach its target consumers
• Nescafe Cafe a La Carte also employs top of the field marketers to facilitate its marketing strategy and promotional campaigns
• Each marketing campaign launched by Nescafe Cafe a La Carte is effective catchier and more influential than the previous one

8.3. Strong market research and consumer understanding grounded

• Nescafe Cafe a La Carte marketing strategy is strongly grounded in consumer and market research
• Nescafe Cafe a La Carte makes informed marketing campaigns and goals based on consumers’ behavioural feedback
• Nescafe Cafe a La Carte also incorporates consumer feedback in its marketing strategy
• Nescafe Cafe a La Carte marketing strategy is based on market trends, and consumer needs and wants

8.4. Making effective use of emotional appeals

• Consumers’ emotional needs strongly influence all marketing objectives and marketing goals set by Nescafe Cafe a La Carte
• In addition to fulfilling functional needs, Nescafe Cafe a La Carte also tries to fulfil the emotional and psychological needs of the consumer
• Nescafe Cafe a La Carte tries to build a strong emotional bond with the consumer, which also results in high consumer loyalty

9. Distribution Strategy of Nescafe Cafe a La Carte

Nescafe Cafe a La Carte marketing strategy highlights the use of the following distribution strategy to maximize reach and accessibility for consumers.

9.1. Intensive distribution strategy

• Nescafe Cafe a La Carte makes use of intensive distribution strategy because it is mass marketing
• Nescafe Cafe a La Carte’s marketing strategy is based on undifferentiated segments, and thus an intensive distribution strategy allows high penetration and reaches in the overall market
• With the use of the intensive distribution, Nescafe Cafe a La Carte tries to maximise its coverage of the markets where it's present
• For achieving the intensive strategy, the company uses hardcore 360-degree integrated marketing strategy and campaign to reach all consumers, across all segments in the market.

9.2. Direct distribution strategy

• Nescafe Cafe a La Carte uses direct distribution country of origin as well as in locations where it has subsidiary operations
• The Nescafe Cafe a La Carte also makes use of modern retailing channels
• Also, Nescafe Cafe a La Carte makes use of e-commerce and makes a sale through online retailers, as well as through the company website
• Direct distributions have allowed Nescafe Cafe a La Carte to increase market penetration and accessibility for consumers

9.3. Indirect distribution strategy

• This strategy is largely used for offshore operations where the Nescafe Cafe a La Carte does not have a subsidiary
• In these offshore locations, Nescafe Cafe a La Carte largely works through the export model
• This makes use of several intermediaries in between, before the product by Nescafe Cafe a La Carte reaches the target consumers
• Intermediaries for Nescafe Cafe a La Carte include not only the end retail outlets, but also sales agents, retail agents, and distribution agents in offshore locations

9.4. Selective distribution strategy

• For some products of its portfolio which are premium in nature, Nescafe Cafe a La Carte makes use of selective distribution channel
• Nescafe Cafe a La Carte has maintained a few outlets in the country of origin, and in selected offshore markets for these products
• These placements and locations are chosen based on the niche market that Nescafe Cafe a La Carte has for its premium products
• These locations, placements, and marketing strategy helps make the company’s product selectively, but readily accessible for its niche target audience

10. Competition Analysis in the marketing strategy of Nescafe Cafe a La Carte

The industry in which Nescafe Cafe a La Carte operates is very responsive to market and consumer trends. Nescafe Cafe a La Carte, therefore, needs to be vigilant in its market strategy towards competition – to make sure that it maintains its competitive advantage.

10.1. Strategic Group Analysis

• Nescafe Cafe a La Carte competes with direct and close competition based on quality and price
• Consumers choose between different companies from the industry based on their functional offering
• Consumers have progressively evolved to strengthen loyalty and form an emotional bond with products that they consume
• Nescafe Cafe a La Carte also competes, thereby, with close competition for building stronger brand image, increasing consume loyalty, and for forming strong emotional ties with the consumer

10.2. Industry rivalry

• Nescafe Cafe a La Carte experiences high industry rivalry
• The barriers to entry for the industry are low, and new entrants gain easy access in the industry
• The number of local as well as global players is increasing

11. Marketing mix of Nescafe Cafe a La Carte

The marketing mix for Nescafe Cafe a La Carte as per the marketing strategy is the following:

11.1. Product

• Nescafe Cafe a La Carte has a broad product portfolio
• Nescafe Cafe a La Carte provides mass marketed products for all segments across the market undifferentiated
• Nescafe Cafe a La Carte also provides some selected, premium products to niche customer groups
• All products in the portfolio consistently maintain high quality
• All products are tailored to meet consumer specifications, demands and needs across different regional markets
• The Nescafe Cafe a La Carte maintains a high focus on innovation in products and introduces new products frequently to keep the consumers engaged

11.2. Place

• Nescafe Cafe a La Carte wants to have a close, emotional and personal relationship with its consumers
• The company maintains high control in its distribution strategies – especially through direct distribution strategy
• The company has a presence in leading supermarkets
• The Nescafe Cafe a La Carte also has company-operated stores in malls, and otherwise to make products accessible to consumers easily
• Nescafe Cafe a La Carte also makes use of e-commerce to increase penetration and sales

11.3. Price

• The Nescafe Cafe a La Carte prices its products so that its target consumers can afford it easily
• Nescafe Cafe a La Carte uses relative pricing strategy for its products
• The price of Nescafe Cafe a La Carte’s products include not only the high quality raw materials and value additions but also the enhanced customer experience they deliver
• The company’s pricing strategy allows it to enjoy stable revenue and profit growth

11.4. Promotion

• The Nescafe Cafe a La Carte has a high budget allocated towards marketing activities
• The Nescafe Cafe a La Carte invests substantially in digital marketing activities to reap high and effective results
• Use of digital marketing has also allowed Nescafe Cafe a La Carte marketing strategy to cap costs and expenses
• Nescafe Cafe a La Carte also takes part in direct consumer engagement through on-ground activities where the company initiates trials
• Nescafe Cafe a La Carte also invests in traditional media channels to reach maximum consumers in the market

11.5. People

• Nescafe Cafe a La Carte has a large workforce across different companies
• This workforce is continually trained to become experts in their respective fields of operations
• Nescafe Cafe a La Carte hires without discrimination
• Nescafe Cafe a La Carte ensures that its employees remain motivated through building an inspirational and creative organizational culture
• Nescafe Cafe a La Carte focuses on also building and maintaining organizational commitment and loyalty in its employees

11.6. Process

• All activities at Nescafe Cafe a La Carte - from raw material procurement to the final sale to the end consumer - undergo systematic processes
• The processes at Nescafe Cafe a La Carte are well defined, and well communicated to all employees
• All employees are trained to follow the processes internally to ensure consistently high quality as well as timely production and deliveries
• The systematic processes also ensure a smooth running of operations at the Nescafe Cafe a La Carte

11.7. Physical evidence

• The physical evidence for Nescafe Cafe a La Carte includes the company logo, company store designs, and the product packaging
• Satisfied and excited customers in the retail spaces of Nescafe Cafe a La Carte, as well as during product consumption create a bubbling and an inviting atmosphere
• The e-commerce website for retail by Nescafe Cafe a La Carte is also designed with a friendly customer interface to allow maximum interaction with the brand
• The store designs created by Nescafe Cafe a La Carte for its retail space allow consumers maximum interaction with the products directly.

12. Promotional tactics for the marketing strategy of Nescafe Cafe a La Carte

12.1. Digital marketing

• The company uses social media for reaching consumers effectively
• The Nescafe Cafe a La Carte interacts with the consumers directly, and engages with them, answers their queries and takes their feedback
• The company also shares information and build relationships with consumers through digital marketing
• Nescafe Cafe a La Carte also makes use of blogging, emails, and content creations as a means of digital marketing

12.2. Conventional marketing

• The company uses a 360-degree approach in its marketing strategy
• This means that the company makes use of traditional marketing channels as well – such as TV, magazine adverts, and out of house placements

12.3. Influencers

• For direct, on-ground engagement, the company uses influencers
• Influencers interact with consumers directly, or through their channels of communication as a means of content creation and endorsing the Nescafe Cafe a La Carte brand

13. Monitoring and evaluation of the marketing strategy of Nescafe Cafe a La Carte

13.1. Changes in sales

• Nescafe Cafe a La Carte regularly tracks its sales to identify the effectiveness of its marketing strategy
• Increase in sales reflect the success of marketing strategy of Nescafe Cafe a La Carte
• Sometimes, Nescafe Cafe a La Carte experiences increase ins ae after some time of the launch of the marketing promotions

13.2. Surveys and focus groups

• Nescafe Cafe a La Carte frequently conducts focus groups and surveys to identify its brand worth
• These methods also help the company identify brand value, brand recall, and brand recognition
• Focus groups allow Nescafe Cafe a La Carte to gather feedback on its marketing strategy and helps it understand consumers better

13.3. ROI

• Effectiveness of marketing strategy of Nescafe Cafe a La Carte can also be seen through the revenue and profit growth
• Return on investment allows Nescafe Cafe a La Carte to effective gauge the effect and influence of the marketing strategy, and measure its success

13.4. Attainment of marketing objectives

• All marketing objectives set by Nescafe Cafe a La Carte are SMART
• The quantitative set against each of the marketing objective can facilitate attainment evaluation for the overall marketing strategy
• Successful and timely attainment of these marketing objectives highlight the success of the marketing strategy of Nescafe Cafe a La Carte