Subject category:
Marketing
Published by:
IBS Center for Management Research
Length: 12 pages
Data source: Published sources
Abstract
This case is about the repositioning exercise of the Nestle’s Nescafe brand which was started in the year 2014. Sales of Nescafe were declining in the years before 2014 as the demand for instant coffee had been falling in some of the major coffee drinking countries around the world. Many young customers who were drinking coffee for the first time in their life perceived instant coffee to be outdated and instead preferred fresh coffee sold in coffee chains like Starbucks. The rise in the sales of portable coffee machines, which made it possible to brew fresh coffee easily, too had impacted the sales of Instant coffee. Smaller instant coffee brands had also started to eat into the market share of Nescafé. Nescafe was the biggest brand in the stable of Nestle and a number of coffee related products were sold under the brand. In order to improve the performance of the brand, Nestle launched a new repositioning exercise for the Nescafe brand called REDvolution. The objective of the repositioning exercise was to increase the potential of Nescafe as an iconic brand and consolidate its competitive advantage in the market. REDvolution was mainly targeted at the younger potential customers of Nescafe and heavily relied on social media. Under the repositioning campaign, all the products sold under the Nescafe brand would share the same visual identity, communication, and digital strategy all over the world. Standardising all the characteristics of the Nescafe brand was expected to make it easier for customers to easily recognise all the products that were sold under the brand. The single personality that was created through the repositioning exercise would be customized to suit the requirements of some local markets. REDvolution was based upon three visual markers, viz the final accent on the logo of Nescafe, a structurally redesigned red mug, and a blockmark called ‘hub’. As part of the repositioning exercise, Nestle had introduced new products like chilled coffee and cheaper portable coffee machines that make instant coffee. New product launches were intended to improve the image of Nescafe as an innovative and adventurous brand. Nestle planned to roll out the campaign in 90 percent of the markets where it had operations by the end of 2014 and cover the rest in 2015.
Location:
Industry:
Size:
Very large
Other setting(s):
2014
About
Abstract
This case is about the repositioning exercise of the Nestle’s Nescafe brand which was started in the year 2014. Sales of Nescafe were declining in the years before 2014 as the demand for instant coffee had been falling in some of the major coffee drinking countries around the world. Many young customers who were drinking coffee for the first time in their life perceived instant coffee to be outdated and instead preferred fresh coffee sold in coffee chains like Starbucks. The rise in the sales of portable coffee machines, which made it possible to brew fresh coffee easily, too had impacted the sales of Instant coffee. Smaller instant coffee brands had also started to eat into the market share of Nescafé. Nescafe was the biggest brand in the stable of Nestle and a number of coffee related products were sold under the brand. In order to improve the performance of the brand, Nestle launched a new repositioning exercise for the Nescafe brand called REDvolution. The objective of the repositioning exercise was to increase the potential of Nescafe as an iconic brand and consolidate its competitive advantage in the market. REDvolution was mainly targeted at the younger potential customers of Nescafe and heavily relied on social media. Under the repositioning campaign, all the products sold under the Nescafe brand would share the same visual identity, communication, and digital strategy all over the world. Standardising all the characteristics of the Nescafe brand was expected to make it easier for customers to easily recognise all the products that were sold under the brand. The single personality that was created through the repositioning exercise would be customized to suit the requirements of some local markets. REDvolution was based upon three visual markers, viz the final accent on the logo of Nescafe, a structurally redesigned red mug, and a blockmark called ‘hub’. As part of the repositioning exercise, Nestle had introduced new products like chilled coffee and cheaper portable coffee machines that make instant coffee. New product launches were intended to improve the image of Nescafe as an innovative and adventurous brand. Nestle planned to roll out the campaign in 90 percent of the markets where it had operations by the end of 2014 and cover the rest in 2015.
Settings
Location:
Industry:
Size:
Very large
Other setting(s):
2014