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