Nescafe 3 in 1

Introduction of the brand to the market

Nescafe 3 in 1 coffee brand was first introduced in the market in the year 2003 in Europe

and UK (Nescafe.com website, 2016). The success of the brand has led to its introduction and

launch in many other nations where the Nescafe group of companies have their presence. The

brand is one of over 2000 brands that the company produces and sells across the globe.

Identification of the brand's competition

Nescafe 3 in 1 is a unique brand on its own. However, the brand faces competition from

other brands and segments of the beverage industry. It is important to note that this is one of the

most competitive industries in the world. The industry is a perfectly competitive one with no

barriers to entry or exit. There are numerous competitors to the Nescafe brand. Some of these

competitors operate directly in the same line of business as Nescafe but in different

segmentation. For instance, Java and Starbucks are the closest competitors. Nescafe 3 in 1 coffee

brand is an on-the-go brand. Its careful mixture of sugar, cream and coffee is meant to make it

easy for consumers who do not have the time to balance between the three. Starbucks and Java,

some of the largest competitors of this brand also make their coffee to-go. They have mastered

the art of brewing coffee and packaging it attractively.

Other competitors include other forms of products that are designed to offer the target

market the same form of fulfillment that the coffee would give them. Consumers are thus given

an option of either consuming the coffee or going for the alternative. An example of such a

competitor is Onken wholegrain yogurt. The yogurt is marketed on the grounds of being natural

and having the capacity to provide the energy and alertness that users of coffee seek as well.

Consumers thus have the option of choosing whether to consume the coffee or the yogurt. The
brand also faces competition from other well established companies which have close

substitutes. Examples of such companies include Boncafe limited which supplies Boncafe coffee

and Super coffeemix which supplies Super brand of coffee.

Market segmentation of the brand

For a brand to succeed, it must be developed and created with a particular target market

in mind (Shelby & Dennis, 2004). This is where the concept of market segmentation comes in.

Market segmentation entails the subdivision of the market into different customer segments

(Shelby & Dennis, 2004). Nescafe 3 in 1 coffee was developed for the middle-aged and young

consumer. When the product was launched, the major target for the brand was people aged 25

years and below. The logic behind this market segmentation was that people at this age look to

coffee for boost of energy and as a rite of passage. At this age, people are looking for a fast fix

because they do not have the patience to brew coffee at home. Most people at this age are either

in school or in their first years of employment. Many live alone and many are not married. Their

major concern is to get an easy fix which gives them the boost they require to face the day.

Nescafe 3 in 1 was the remedy.

Benefits of the brand and the needs it fulfills

A major marketing point for any brand is the benefits that customers can derive from the

brand as opposed to that of the competitor (Zablah et al 2004). To be able to attract a market

share, the brand has to be seen as being capable of addressing the needs of the target consumer

better than others do. Nescafe 3 in 1 was developed under this notation. The market segment the

brand targets is a segment that is accustomed to new, fashionable and easy to use products. The

people aged 25 and below like to use products that are well packaged. Nescafe 3 in 1 is very

attractively packaged. The brand offers its users the benefits of boosting their energy and morale
for the day. It is also very easy to fix and this fulfils the need for urgency that most youth

customers seek.

Marketing tactics employed by the brand

There would be no point of having a great product if one does not know how to let the

target customers know of the same. To be able to reach a wide range and number of customers,

marketing and promotion tactics are important (Zablah et al 2004).Marketing however does not

commence when the product hits the market. It begins at inception and creation of the product.

To catch the attention of the target market, the product must be appealing enough. Nescafe 3 in 1

brand has been able to catch the attention of its target users because of a number of marketing

strategies employed by the company. The product itself is very well designed and attractively

parked. Labels of quality are embedded in the product packaging assuring users that they are

using a high quality product. As noted earlier, people under the age of 25 years love attractive

products. Another feature of the product is that it comes in sachets for ease of use. Each sachet is

used once. This makes it easy for potential customers as they do not have to spend time

wondering what quantity is optimal for consumption.

The pricing of the product is differentiated through packaging. Customers who cannot

afford to buy large products buy sachets and enjoy the same product in the same quality at a

lower price. This increases the customer base for the product. Promotion of the product is carried

on consistently and continually through the use of print and digital media. This ensures that

visibility of the product is enhanced at all times. When customers see a product being well

promoted, their perception changes and they feel some attraction to the product (Meyer-

Waarden, 2006). Persistent promotion eventually creates sales.

Comparison to competitors
Other competitors are not so vigorous when it comes to promoting their products. However, they

also have very well packaged and attractive products. This confuses the customer and leaves

them at a loss on the product to choose. When a customer is loyal to a company or a product, it

becomes hard for them to purchase from competitors (Meyer-Waarden, 2006). The goal of the

Nescafe 3 in 1 brand is to create a following that is unmatched and loyal to the brand.
 References

Nescafe.com website (2016). Nescafe 3 in 1. Web. Available at http://www.nescafe.com/our-

coffees-detail?name=threeinone&category=3in1&tag=nescafe-product-thumb#

Meyer-Waarden, L. (2006). The Effects of Loyalty Programs on Customer Lifetime Duration

and Share of Wallet. Journal of Retailing, 2(83): 223-236.

Shelby, D. H., & Dennis, B. A. (2004). Market Segmentation Strategy, Competitive Advantage,

and Public Policy: Grounding Segmentation Strategy in Resource-Advantage Theory.

Australasian Marketing Journal, 12 (1), 7-25.

Zablah, A., Bellenger, D., & Johnston, W. (2004). An Evaluation of Divergent Perspectives on

Customer Relationship Management: Towards a Common Understanding of an Emerging

Phenomenon. Industrial Marketing Management journal, 33: 475-489.