Innovative Marketing-Backbone for Brand and its new products?!

 

Ever thought about the first cup of coffee that we have every morning? Is it the same brand, taste, packaging? Well, let me answer that for you… I am sure it is a no.

Nestle has been one of the multinational brands that have been on the market for decades now being largest producer packaged food and beverages all over the world in 2001. It had a brand value as high as 13000 million in 2001. It has tried to maintain a high brand value with its great innovative marketing ideas and also ways of introducing innovation into the market. (World Finance, 2016)

(Nescafe, 2016)

Nestle has followed house of brand approach for its subsidiaries but kept its name attached to the brand partially always. One of its product category extension is Nescafe which was developed as an innovation product in 1930 in Brazil was launched in 1938 in Switzerland and since then it has been working on its brand equity and its innovations while competing with its competitors in the coffee world.Nescafe started as a basic coffee powder which was easy to mix with hot water or milk and then it gradually came up with innovations like Nescafe Decaf, 3in1, 2in1, Smooth, Goldblend, Superpremium which made coffee lovers try these varieties due to their product branding and brand equity that Nestle and Nescafe had made as a brand over the period of time.(Nestle.com, 2016)

It was a brand pride that Nestle wanted to have by having these innovations, therefore, it remained consistent with its innovations and captured a major segment of the market of coffee lovers as the macro environment changed over the years. A big hit came to it’s indirect and direct competitors like McDonald’s, Bru, Dunkin donuts, Nesvita, Barista, Costa Coffee and many more,  when it introduced its coffee making machines in the market such as Red mug, Coffee machine, Nescafe dolce gusto, Dolce Gusto, Gold Blend and lastly Gold Blend Barista. These innovations were enough to give the competitors a serious competition.(NESCAFÉ, 2016)

Now comes the part where we need to know how this brand played smart in marketing its innovations and stave off competitors. They used top-down approach while developing a product and used best of marketing techniques like brighter looking packaging, attractive designer machines, cold coffees, hot coffees, coffees on the go, coffee with antioxidants, also engaged many people in its different campaigns and celebrities endorsing the brand in their commercials all over the world. They also captured the market with music in their commercials with famous bands and singers composing the music for them. They recently started using emotional way of approaching and influencing people’s thoughts which helped them increase the brand equity and expanded the segmented market.(Lacobucci, 2016)

To conclude, Nestle and Nescafe have been truly successful in working out well on the innovations that were introduced in the market over the period of decades and made ‘just a cup of coffee’ have unlimited variations and choices to choose from. But, at the end of the day we all know that its ‘just a coffee’!

(NESCAFE Original, 2016)

References:

Lacobucci, D. (2016). Marketing Management MM4. 4th ed. South Western: Cengage Learning.

Nescafe, (2016). Available at: https://www.youtube.com/watch?v=zd-AVJifWRg [Accessed 20 Apr. 2016].

NESCAFÉ. (2016). A FRESH START FOR EVERYONE EVERYDAY. [online] Available at: http://www.nescafe.com/our-coffees [Accessed 20 Apr. 2016].

NESCAFE Original, (2016). Nescafe Original gives Talia a big start to her day!. [image] Available at: https://www.youtube.com/watch?v=nVBQgQhVqu0 [Accessed 20 Apr. 2016].

Nestle.com. (2016). Nescafe. [online] Available at: http://www.nestle.com/brands/allbrands/nescafe [Accessed 21 Apr. 2016].

World Finance. (2016). Nestle Brand Strategy. [online] Available at: http://finance.mapsofworld.com/brand/value/nestle.html [Accessed 22 Apr. 2016].

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s