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