Marketing Principles Nescafe Brand

Question: Discuss about theMarketing Principles for Nescafe Brand. Answer: Introduction Nescafe is a brand owned by Nestle, Headquarter in Switzerland. The report lays emphasis on various segmentation techniques taken up by Nestle to promote its caffeine brand Nescafe. It also shows the targeting strategies and direct positioning strategies taken up by the company. Geographic Segmentation is a strategy the customers are targeted on the basis of their geographical location (Premkanth, 2012). This approach helps the business in delivering to specific needs and wants of the customers, as they vary according to their geographic location. The Geographic segmentation followed by Nescafe is to alter their products according to the different regions they cater to. The company offers variety of products based on this type of segmentation. Melbourne is a coffee hub in Australia and the company makes sure to capture this part of the market tightly by offering various types of products. The company considers urban and rural factors along with climatic factors. Demographic segmentation is done on the basis of various factors like income, age group, family size, occupation, education and generation (Goyat, 2011). The company Nescafe follows demographic segmentation. The customers who buy the brand regularly are usually in the age group of 20+. The brand considers its demographic variables and caters products according to these needs. Psychographic segmentation is done on the basis of the variable that deals with minds of the people (Weinstein, 2004). People associate themselves with a particular brand because of its status in the society. Nescafe targets middle class and upper middle class consumers with no age target that have a lifestyle which is flamboyant and they tend to prefer a beverage to lift their strata in the society. Their lifestyle and activities are considered and that decides the choice of their beverage. Benefit and usage rate segmentation refers to the value derived from the product and what is the loyalty of the customer towards the brand. In benefit segmentation various products are targeted to the customers so that they can get some value out of them (Hunt and Arnett, 2014). For people who seek alertness of mind and high efficiency are moderate usage customers, for instance students who consume caffeine during examinations. Professionals who seek a good start to the day with high energy are on the regular to heavy usage rate seeking benefit of energy from caffeine. There are several customers who are occasional purchasers, they seek value from the product in terms of price and quality, and they can be termed as light users. The brand, Nescafe deliver variety products to deal with this efficiently and to cater to all types of customers. Targeting strategy are the strategies undertaken to target the different segments of the market. A company makes these strategies to capture maximum market share and deliver value to its clients. Similarly Nescafe has also adopted various aggressive targeting strategies globally. The company follows differentiated marketing strategy, where it develops products to cater to all the segment of the market. Separate products such as cappuccino, decaf, cappuccino strong, caramel latte, hazelnut, skim cappuccino, vanilla latte, dark choc mocha and many others are made available in the Australian market to cater to needs and wants to different customers. Basically marketing in Australia is aimed at the young adult caf culture segment and also on the instant on the go culture for working professionals. The company created various campaigns like Nescafe short film awards and win the Nescafe latte lounge to promote their product and create a lasting impact in the minds of coffee consumers. Also to cater all the economic sections of the society, the firm also works on its packaging and make its product available in different size, so that the customers who are new to the brand can try as well as customers who can only afford low price can buy the product. The brand targets the customers effectively and this generates sales accordingly in a profitable manner for the company. Market positioning is done to create a name of the brand in the minds of the consumer (Chowdhury, 2013). Nescafe has been successful in doing so. They identify the competitive advantage that they have and work on that and deliver value to their clients (Ries, 2003). They position themselves at a distinguished position as a brand that is concerned about the health of the consumer along with delivering taste and quality. For instance the instant coffee product that they deliver has the tag line good ideas starts from great coffee, in this they have already established that the product they offer is great and has an edge over other available products in the market; they also signify that their coffee is great in taste and quality. This positions the brand firmly in the minds of the consumer and leaves a positive impact along with building customer loyalty. The brand has got a competitive edge due to its positioning strategies. The brand tries to relate to the customer so that they make a buying decision biased towards them. Nescafe has been able to establish itself as a global coffee brand (Nescafe.com.au 2016). Conclusion A brand needs to build itself to leave an impact in the minds of the consumer. There are various factors that a customers analyses before associating itself with a brand, they could be social, cultural, individual and psychological. A customer analyses its needs like physiological, safety, belongingness, esteem and self actualization before making any buying decision. To target the right audience, a brand segments its market on the basis of geographic, demographic, psychographic, benefit and usage rate. After the segmentation the company targets the segmented market with its strategies and positions itself in the market in such ways that it leaves a positive impact in the minds of the consumer. Nescafe as a brand has segmented its market and targets them all with different products. Each product is targeted with different marketing strategy. The brand has been successful in positioning itself in the market as a leader in the caffeine segment. Its differentiated targeting strategy has enabled it to cater to different segments of the market and develop a need for its various products. The brand tries to position very logically; it tries to relate to the people, so that they become loyal towards it. The distinguished positioning has enabled Nescafe to be a household name and build itself as a global brand. References Chowdhury,P. (2013). Key strategies and issues of positioning: A review of past studies. American Academic Scholarly Research Journal. Vol.5, No.1 [Online] Available at: URL https://naturalspublishing.com/files/published/rb7p834f32r1gj.pdf [Accessed on 22 September 2016]. Goyat, S. (2011). The basis of market Segmentation: a critical review of literature. European Journal if business and management, [online] Vol.3, No.9. Available at: URL file:///C:/Users/Abasus%20Solutions/Downloads/647-1598-1-SM%20(4).pdf [Accessed on 22 September 2016]. Hunt, S. and Arnett, D. (2014). Marketing segmentation strategy, competitive advantage, and public policy: grounding segmentation strategy in resource- advantage theory. Australian Marketing Journal 12(1). . Available at: URL https://sdh.ba.ttu.edu/AMJ04%20-%20Mkt%20Seg%20Strategy.pdf [Accessed on 22 September 2016]. Nescafe.com.au, 2016.A Fresh Start for Everyone Everyday. [online] Nescafe. Available at: https://nescafe.com.au/products [Accessed 22 September. 2016]. Premkanth, P. (2012). Market Segmentation and Its Impact on Customer Satisfaction with Especial Reference to Commercial Bank of Ceylon PLC. Global Journal of Management and Business Research, [Online] Volume 12 (17) 1.0. Available at: URL https://globaljournals.org/GJMBR_Volume12/5-Market-Segmentation-and-Its-Impact.pdf [Accessed on 22 September 2016]. Ries (2003). Positioning: The battle for your mind. [Online].US: Tata McGraw-Hill Education. Available at: URL https://books.google.co.in/books?id=Mc0aJu3Y20cCprintsec=frontcover#v=onepageqf=false. [Accessed on 22 September 2016]. Weinstein, A. (2004).Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms. [online]. 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