Nescafe and marketing planning and forecasting sales potential

Hallo Nescafe lovers,

This weak I will tell you about the market and sales potential of Nescafe coffee in the Netherlands for the year 2015. 

First of I tried to estimate the market and sales potential of Nescafe Coffee in the Netherlands in the year 2015. I used the source euromonitor for this. First of all, I found some terms about marketing and sales potential and break down, build up approach.  I found the following defination in my book called  I used my ‘marketing concepts and strategies’

Break down approach: ‘an approach that derives a company’s sales potential from the general economic forecast and the estimate of market potential’ (Sally Dibb, 2016)
Build up approach:’ An approach that measures the sales potential for a product by first calculating its market potential and then estimating what proportion of that potential the company can expect to obtain’ (Sally Dibb, 2016)
Sales potential: ‘The maximum percentage of market potential that an individual company can obtain for a specific product or service’ (Sally Dibb, 2016)
Market potential: ‘Total amount of a product that customers will purchase within a specified period of time at a specific level of industry-wide marketing activity’ (Sally Dibb, 2016)

I found a table on Euromonitor, this table showed me the breakdown % in the Netherlands in the last four years. In 2015 there was a slightly increase (0.1%) compared with 2014, the breakdown% of 2016 is not available.

(Euromonitor, 2016)

The Sales potential of 2015 was 962.100.000 million, know we have the sales potential of 2015 we can calculate the market potential of coffee in 2015. The cost price of Nescafe coffee was in 2015 €5.07 euro. The market potential of Nescafe coffee in 2015 was (921.100.000 / 5.07=) 181.676.600.  (Euromonitor, 2016) (Euromonitor, 2016)

Right now I will explain what a marketing plan is and explain why it is important to have a marketing plan.

First of all, I will explain what a marketing plan is. A marketing plan that will cover all step by step the marketing activities

A marketing plan is necessary it will give you the following advantages:

-       The hole marketing plan will guide you to your goal

-       Helps the employees to stay focused

-       You can work with deadlines and target

(Sally Dibb, 2016)

There different forecasting technique to forecast the sales potentiol for the future. I prefer to the time series analyses, I will explain why and give you some advantages and disadvantages of this forecasting technique.

Time series analyses:  A forecasting technique that uses a company’s historical sales date to discover a pattern or patterns in the company’s sales of time

Advantages:

-       You know the mistakes that is made in the last year

-       Knowledge about the last year, what they can expect this year and how to avoid the problems of last year

Disadvantages

-       It can vary compared with the consumer behavior last few years

-       Macroeconomics influences that will affect the market and sales of the year.

(Sally Dibb, 2016)

References

Euromonitor. (2016, 10 17). Nescafe. Opgehaald van http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

Euromonitor. (2016, 10 17). Nescafe breakdown. Opgehaald van http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

Euromonitor. (2016, 10 17). Price Nescafe. Opgehaald van http://www.portal.euromonitor.com: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/changemeasure

Sally Dibb, L. S. (2016). Marketing concepts and strategies. Cengage learning.

Market position of Nestle

Hai Nescafe lovers!



This time I will inform you about the market position of Nestle.

Nestle is a company who produces different products in the food branch, they use different brands for the products for example in the coffee branch they are using the following brands in the Netherlands: Nescafé, Nespresso, Nescafe Dolce Gusto, Nestle Coffee Matte and Nescafé original.

The following picture will give an overview of the brands they are using at this moment.

Nestle had last year a market share rate of 22.3% calculated about the whole- world, I found thins information from from Euromonitor.

(Euromonitor, 2016)

The market share is 22.3% this means the products of Nestle have a high level in the international markets.

Nestle have some brands; these brands are not available in the Netherlands because they tried to launch this product in the Dutch market but without a huge profit. Most of the time Nestle will take a look what the consumers like to have and after that they will develop this product and will tried to launch it in different markets.

For example, Dreyers ice cream they are selling this specific ice cream only in the USA.

It depends to which country Nestle is exporting to, I found an old press release about joint- ventury with South Korea ‘Nestlé to create a 50-50 joint venture with Korean conglomerate’ entry market strategy in this country is joint ventures

(Nestle, 2016)

There is no huge impact in the production of Nestle, I think this is because, Nestle have in almost every country a production factory they will produce and supply their wholesalers or huge supermarket in this specific country.

Although, you can purchase some shares of Nestle I found the following information about the share indication on the site of Nestle. There was a drop in the month July, maybe it has a connection with the Brexit but I am scared to draw a conclusion about it.

Macro marketing environment and Nescafe coffee

Welkom back Nescafe lovers!

This time I will talk about the macro marketing environment and how it will affect the consumption of Nescafe coffee.

First of all, I found some information I want to share with you, Nestle announced the following news on their site ‘World Bank Group and Nespresso partner to help coffee farmers in East Africa’. As Nescafe coffee lovers we can be proud of this. Nestle is working with farmers to stimulate the effect of the climate change.

Nestle will stimulate the climate change and will help to stimulate the environment.

 habitants with environmental awareness will also buy this coffee instead of other coffee who did care about the environment.

(Nestle, 2016) (Nestle, 2016)

I found two recent publications that will affect the macro economy, it is about ‘inflation’ and ‘higher disposable income for households’
(CBS, 2016) (CBS, 2016)

These two factors will affect the purchasing power of households, inflation is a sustained increase in the price level of goods and services. (Wikipedia, 2016) The higher disposable income for a household means that the households have more money to spend so the purchasing power will increase.
For example, the inflation will increase to 2% and the increase in disposable income for households will increase by 1%. The reel inflation growth will be 1%, this will not have a huge impact on the purchasing power. In those recent publications the inflation decreases by 0.1% it was 0.2%, the disposable income rose also so it will affect the purchasing power in a positive way.

These two factors do not affect the purchase of the primary good ‘Nescafe good’ because, they have to purchase it even if it will rise in the price it is an elastic product so the effect of it will not be huge. If you have a good like for example BMW, the effect will be higher if the inflation will rise faster than the purchasing power because it is an inelastic good.

There are nog social, cultural or religious differences that would affect the consumption of Nescafe. Everyone can use coffee and is allowed to. But if I had the product ‘Bacon some cultural, social and religious cannot use it. For example, most people in Saudi Arabia are Muslim and they are not allowed to eat pork so most of the habitats in Saudi Arabia will not buy bacon and it is not smart to sell it because there is no demand in this country.
(data.oecd, 2016)

References

CBS. (2016). Dutch inflation rate slips to 1%. Opgehaald van www.cbs.nl: https://www.cbs.nl/en-gb/news/2016/40/dutch-inflation-rate-slips-to-0-1-percent

CBS. (2016). Higher disposable income for households. Opgehaald van www.cbs.nl: https://www.cbs.nl/en-gb/news/2016/38/higher-disposable-incomes-for-households

data.oecd. (2016). meat consumption. Opgehaald van https://data.oecd.org: https://data.oecd.org/agroutput/meat-consumption.htm

Nestle. (2016). Annual report 2015. Opgehaald van www.nestle.com: http://www.nestle.com/asset-library/documents/library/documents/annual_reports/2015-annual-review-en.pdf

Nestle. (2016). Nestle nespresso east-africa coffee-farmers climate change. Opgehaald van http://www.nestle.com: http://www.nestle.com/media/news/nestle-nespresso-east-africa-coffee-farmers-climate-change

Sally Dibb, L. S. (2016). Marketing concepts and strategies. Cengage Learning EMEA.

Wikipedia. (2016). Inflation. Opgehaald van https://en.wikipedia.org: https://en.wikipedia.org/wiki/Inflation

Nescafe Coffee in the B2B market

Hello Nescafe lover!


In this blog I will inform you about how Nescafe is working in the B2B market and give you examples.

In the marketing term we can talk about two markets, Customer to Costumer market and Business to Business market.

After some research I found out that Nescafe do not sell his products directly to the customer, Nescafe sell his product indirecty. Nescafe can sell his product in the B2B market in following 2 ways:

Producer (Nescafe)                                v	Producer (Nescafe)                              v	Producer (Nescafe) v
Wholesale                                               v	Wholesale                                             v	Huge supermarkets (Jumbo, AH), other huge companies v
Retailer                                                    v	Little Supermarket and café restaurants                                         v	Consumer
Little Supermarket and café restaurants                                         v	Consumer                                              v
Consumer                                                v

There are also some big supermarkets in the Netherlands for example Jumbo, AH they will buy a huge amount and will save this in the stockroom they can order directly from the company, this is also for order huge companies

Some examples of supermarket in the Netherlands who are selling Nescafe: Jumbo Supermarkten, Albert Heijn, Coop, Boni

I hope this supply chain will give you a clear overvieuw how the supply chain of Nescafe works

The following research is about how nescafe is adapted his product to the business market, in this situation i could only find that Nescafe is always busy to develop his product for example in quality and for the environment. They would like to achieve this to make some strict rules with there farmers and the way they produce these products. Nescafe hopes by developing his product the demand for coffee will increase and not to forget they like to work for a possitive environment. They like feedback they will listen to people with feedback and take this with, with the product development.

 (Nestle, -)


What kind of purchase is Nescafe coffe

Nescafe is a straight rebuy purchase, I know you are thinking what is this for purchase. Straight rebuy purchase means the following you will re- buy the same products with the same conditions this is called straight rebuy purchasing. 
At this moment I am already started with explanation of this term there are two more terms (New- task purchase and Modified re-buy purchase) I will also explain this and tell you why Nescafe is does not fit in this kind of purchase.

New task purchase: Nescafe coffee is not a product that used to perform a new job or to solve a new problem.

Modified re-buy purchase: The consumer and wholesale will not buy the same good with other condition by another producer of coffee 

Nescafe coffee is a straight rebuy purchase,because the consumer and the wholesale will buy this product again (Nescafe coffee) under the same terms and sale.

(Sally Dibb, 2016)

The following information is how a DMU works and when they will use DMU and what kind of staps they will use

In the DMU there will be persons who will influence the buying decision, these people

These people are necessary to make discussion, like for example the coffee beans sort machine have to be replace, which brand is the most suitable and will solve our problems. You need information from experience and technical information, the following people will help you with the discussion.

Users: Users in the business who use this product
Influencers: are often technical personnel, e.g. engineers
Buyers/ purchasing managers/ - agents: responsible for selecting suppliers
Gatekeeper: control the flow of information to and among others in the buying Centre.

If they have to replace the coffee beans sort machine the buying process will looks like the following example:

• ·         Stage 1: Individuals recognize resist problem and think about what the machine have to do
• ·         Stage 2: What kind of specifications is need for the new machine
• ·         Stage 3: Searching for possible machines that will fit in this description and solve the problem and then locating suitable suppliers
• ·         Stage 4: Evaluating the machine
• ·         Stage 5: Results used to select product or supplier
• ·         Stage 6: Performance of the machine is evaluated by comparing it with specification and customer expectations of the relationship.

Like I also said in the previous paragraph  Nescafé will discuss about yhe wholesalers or huge companies, because not everyone can become a The wholesalers or huge companies who will sell products from Nescafé in their assortment. The wholesalers or huge companies have to be satisfy with the conditions of Nescafé. The DMU will come together and will talk about this new wholesaler. Buyer in this case will be the wholesalers

(Sally Dibb, 2016)

What about the Derived demand and how will this affect the supply chain.

In this section I will give first the explanation of derived demand: Derived demand is the Demand for business products that arises from the demand for consumer products

I think in the situation of Nescafe coffee, the wholesales will buy more coffee from producer Nescafe if consumer will use more coffee it will affect the whole supply chain.
If consumer will use more coffee the supermarket have to refill their stocks and will buy the next time more coffee from the wholesalers, because there is an increase in de demand. The wholesale will also buy more coffee from Nescafe because there is an increase in the demand.

Nescafe can affect the demand with product development or with marketing action like for example, making 1+1 free or decrease in the contents of the packages.

(Sally Dibb, 2016)

References

MBA, D. S. (2016, September 20). Blackboord. Received from Leren.saxion.nl: https://leren.saxion.nl/webapps/blackboard/execute/content/file?cmd=view&content_id=_1438547_1&course_id=_30261_1&framesetWrapped=true

Nestle. (-, - -). Aboutus. Received from www.nestle.com: http://www.nestle.com/aboutus/strategy

Sally Dibb, L. S. (2016). Marketing concepts and strategies. V.S: Cengage learning.

 

Welcome back Nescafe coffee lovers!

Welcome back Nescafe coffee lovers!

Last week I told about the mission statement of the company Nestle. Today I will inform you why people coffee is a popular primary product.

To answer the question why coffee is popular and why consumer use this, I have to check why I started drink coffee from the brand Nescafe.

First of all, my parents’ drinks coffee from the brand Nescafe I have always watched them drinking coffee also tried it once, In the start I did not like it. 4 years ago I had my first internship. At this internship I had only the choice to drink water, thee and coffee. I tried here again coffee and this time I liked it. From this moment I drink at least 3 times a day coffee.
I tried different brands and the brand Nescafe is the only brand in my opinion with high quality coffee equal to the cost price. 

I think more consumers like coffee from the brand Nescafe because it is the first coffee company who produced coffee. The second reason is like I said before Nescafe Coffee uses quality price ratio. The last reason is that Nescafe is for a long time active in the coffee market and they talk to each other and the popularity of this product will grow.

Nescafe coffee does not have a specific target; I think they are focusing on the 7 stages of the Family Life Cycle. These stages are: Young and Single couples, engaged couple, DINKS, SINKS, married with children, single parents and Empty nester.

You can buy Nescafe coffee in almost every supermarket, you don’t have to know what kind of specific it has or more information like it, Nescafe coffee is a low cost product with low risk product like this is called routine response behavior.

Readers, this was it for today if you want to learn more about the Nescafe Coffee? I will post next week a new blog it will give more information about Nescafe Coffee.

Ciao!

Product Review

Nescafé Coffee.

1.       Which product do you have chosen and why?

I have chosen the product: Nescafe Coffee
Why I have chosen this product is because during the lecture my grandpa send me a message and asked me if I can buy Nescafe coffee. The first product what occurred to me was Nescafe Coffee

2.       Which is the producing company of the product? Is the company also owner of the brand name?

The producing company of the product is Nestlé, Nestlé is also the owner of the brand name.

3.       Briefly describe the history and growth of the company that is selling the product.

Sir Henri Nestle opened in 1866 the door of the company called Swiss Cond Milk, the first production of Sir Nestle was the condensed milk. In 1867 Sir Nestle makes a breakthrough in the food branch. In 1905 Sir Nestle unite with Sir Anglo Swiss. After the war they got a crisis, in this period they decided to bring a new product to the market called Nescafe Coffee. 

4.       Which other products are sold by this company

In 1948 Nestlé brings lot of products in market.

Nestlé is active in the following subcategories:
category baby foods, bottled water, cereals, chocolate / confectionery, coffee, culinary/ chilled & frozen food, drinks, food service, healthcare nutrition, ice cream, pet care and weight management

Some popular products Nestlé produced are:
KitKat, Nesquick, Nestea, Maggi and of course Nescafe Coffee

Click on the link below, to see what kind of products they also make.
http://www.nestle.com/brands