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.