Nescafe SWOT

2. Strength
 Innovation
• Birth of instant coffee.
• Coffee vending machine.
• “Our Look beyond the cup” initiative.
• Coffee blending
 Ability to penetrate tea loving market like India.
• Entered India with a promotional line that says “Coffee with
life in it, ready in just 5 sec”.
 Availability
• With strong distribution channels it was made available at
very ground level.
• Targeted different segments & occasions.

4. Strength
 Varieties
• Nescafe classic, Nescafe original, Nescafe gold blend, Nescafe green blend
etc (~10 products).
• Strong brand name.
 Wide price range of products which suits the budget of
different sections of society.
 Promotions –
• Nescafe logo , Red mug and jingle <Pa para ra pa ra ra> adds to the Brand
value and the Unique identity of its products.
• Effective promotions campaign through Advertisement, Movies, Print and
Online.
• Deepika Padukone,Karan Johar, Purab Kohli and Vir Das as the Brand
Ambassadors for Nescafe.

5. Weakness
 Health conscious people avoid coffee
 Segmentation :- Students, professionals, Upper and middle class.
 Nescafe is known to be the choice of common man and those pose
attractive to the sophisticated palate
 Usage rate low in tea loving country like India.
 Health benefits of coffee not highlighted
 Promotions do not clearly showcase the different products of
Nescafe and only target Nescafe as a sole brand.

6. Weakness
 Promotions through coffee outlet chain.
 90 % of India total domestic coffee consumption is by 3 Southern states.

7. Opportunities
 Highlight health benefits of Coffee as a part of Marketing campaigns to gain
more trust and loyalty in the brand.
 Target Rural markets with Ad Campaigns, Radio and Print ads which would
work as a catalyst to increase market share.
 Increase and improvise the distribution channels in Rural areas.
 Target Housewives and Old- Aged segments
in Promotional campaigns as they have a lot of
potential to
contribute to the market share and brand equity.

8. Opportunities
 Launch premium coffee products in India which cater to the
taste of Indian preference E.g. Nescafe Gold, Decaf Coffee.
 Increase the ‘ Cafe Nescafe ‘Coffee Shop outlets to meet the
growing lifestyle demand, of drinking coffee at a ‘coffee shop’
like competitors – Bru Café, Café Coffee Day,
Costa Coffee, Starbucks.

9. Threats
 Bru’s marketing and expansion strategies pose a threat to the market holding of
Nescafe in India
 Competitors may reach the rural Indian market which is still untapped before
Nescafe does.
 Competition from beyond hot drinks – the expansion and diversification of soft
drinks, which are effectively targeting trends towards health and convenience,
pose a notable threat to Nestlé's hot drinks products.

10. Threats
 Bru’s marketing and expansion strategies pose a threat to the market holding of
Nescafe in India
 Competitors may reach the rural Indian market which is still untapped before
Nescafe does.
 Competition from beyond hot drinks – the expansion and diversification of soft
drinks, which are effectively targeting trends towards health and convenience,
pose a notable threat to Nestlé's hot drinks products.