Entry Strategy and Marketing Mix of Nestlé Nescafé

The report “Entry Strategy and Marketing Mix of Nestlé Nescafé” aims to examine Nescafé is a brand of instant coffee made by the Vevey-based company, Nestlé. The Nestlé company comes in many different forms as the name is the portmanteau of the word “Nestlé “and the word “café”.

First of all, Nestlé Company introduced the flagship coffee brand in the market of Switzerland in April 1938. It is an instant coffee brand owned by Nestlé brand. It targets the worldwide market, starting with the entire Nescafé options.

As the Swiss multinational food and beverage company Nestlé developed different brands that are reliable or achieved for the business planning. Nescafé is the core product related to coffee that is organized by the Nestlé company and it leads in the most valuable directions.

It is the largest publicly held food company ranked number 33 in the year 2016 as the edition of the Forbes Global 2000 regarding the list of the largest public companies. As an instant brand of coffee, the food processing company will develop the entire practices and take the most collaborative editions as taking the better roles and the broad responsibilities.

In the global market, the trend of consuming coffee has been raised which improves the overall planning and managing the greater directions with collaborative techniques. Various products that offered by the Nestlé company but Nescafé is the most demanding product as the coffee brand that will take the business descriptions or act the entire roles.

As the frozen food determination and the generation of the advanced directions, the current roles will be adapted. The Nestle company has 447 factories where all the products of the business are made to get the interactive or the valuable options in advanced terms. So, Nescafé has the largest market that consumes the entire product.

Read more: Global Strategy and Implementation of Nestlé.

Analysis of the external key factors and impact on the two key markets:

Nescafé is a coffee brand of Nestlé that is available all over the world. But for the entering of a new market, the UK and Pakistan are two key markets that were selected. Both are compared based on the external factors that affect the business’s reliable values and the determination of the current tactics.

Researching the Macro environment of the UK and Pakistan is essential for comprehending Nescafé as a work-side marketing tactic. With the broad analysis of the political, economic, social, technological, economic legal analysis, the comparison of the two markets and the entire performance of the external factors in these countries are evaluated. The PESTEL model is a helpful tool for assessing global contact.

Due to the requirements as well as tastes of the customers in these markets, the preferences of the customers Have changed. Nescafe is a large international market that increases reliable practices and updates the best communication towards the internal growth structure. The evaluation of enteral factors and the determination of their impact on the UK and Pakistan are explored in reliable ways.

Factors.		Pakistan.			United Kingdom
		Opportunities.	Threats.	Analysis.	Opportunities.	Threats.	Analysis.
Political.	Higher the rate of taxes. Changing the government’s policies.	High.	Low.	Nescafe has the largest network of coffee, So, the presence of Nescafe in Pakistan is higher than in the Asian market. Due to the higher tax rates and the changing of the key policies, the current factors will be adaptive.	High.	Low.	The political parties of the UK are stable which is why the tax rates as well as the government policies are easily managed and the entire operations for the Nescafe brand are in the reliable market.
Economical.	Lower demand. Higher prices.	High.	Low.	Due to the lower demand for coffee in the market of Pakistan, Nescafe sales were low. Because the people of Pakistan like to consume the tea as compared to the coffee. So, the less demand for coffee and higher prices of the products directly impacts Nescafe’s growth.	High.	Low.	In the UK, consumers spend a lot of money on the consumption of coffee. That’s why in the market to UK the coffee consumption has a higher demand or supply. The GDP of the UK is 3.131 trillion USD which is a positive point for the company’s success.
Social.	Change the level of income. Lifestyle of the consumers.	Low.	High.	As in Pakistan, the level of income of the people is changing actively that’s why the overall operations and the broad decisions will be classified to attach the business integration. Due to the existence of a lower social class, the entire practices of the business will be referred to.	Medium.	Low.	The preferences of customers are changing due to the change of the demands as well as the entire sales of the products. So, it has a positive impact on the Nescafe brand in the market of UK. It is one of the most effective and the most reared brands that has higher demand.
Technological.	Use of digital campaign. Research and development.	Medium.	Medium.	In Pakistan, Nescafe uses advanced digital technology for market campaigns that affect the sales and the entire level of thinking of the consumers.	High.	Low.	Due to the use of digital technology, Nescafe can interact with customers and provide them best resources in the UK.
Environmental.	Change of climate. Environmental policies.	Low.	High.	Due to the change of climate, the environmental practices of Pakistan are changing badly. So, the consumption and production of Nescafe by Nestle into the factors will also be impacted.	Medium.	Medium.	Due to the change in weather conditions as well as environmental policies, the UK is a more socially responsible country which is why it is effective or best for Nescafe’s success.
Legal.	Copyright. Consumption laws.	Low.	High.	The threat of third parties that illegally manufacture or distribute Nescafe instant coffee affects the health of the public which is why the legal factors impact Nescafe’s expansion in Pakistan.	High.	Low.	The threat of third parties that illegally manufacture or distribute Nescafe instant coffee affects the health of the public which is why the legal factors impact Nescafé’s expansion in Pakistan.

Both the UK and Pakistan are the key markets that are impacted by the business roles and the classified values regarding the change. Nescafé is a brand that selects one of the most suitable markets to enter and expand a particular position. After evaluating both markets related to the external factors it is clear that the UK is a more suitable market where the Nescafé by Nestlé can enter or raise the overall resources. To determine the convenient actions and generate the best roles, the business classification will be addressed.

After comparing both markets, it is clear that the gross domestic product of the United Kingdom is effective enough to take the proper business plans and examine the broad changes regards the best plans to take the innovative eras of the business attractions.

Since the Gross Domestic product, inflation rate, and economic growth of the UK rise from year to year that increases the business planning and managing the strategic growth to take the innovative practices as leading the entire changes. Determination of the collaborative records and examination of the clear resources, the firm’s responsiveness raised.

Analysis of consumer behavior and competitor analysis:

Pakistan market:

Table 2: Competitor analysis in Pakistan.

Competitors.	Pricing.	Competitive advantage.
Lavazza.	Low to High.	Wide range of blends to suit the different perspectives.
Raaz life.	Medium to High.	Having the specialty in the taste of the coffee product.
S-café.	Medium to High.	Creating a special atmosphere and the unique perspectives of the market.

In the year 2024, the coffee market in Pakistan generated revenue amounting to US$ 8.5M. In Pakistan, the trend of consuming coffee is low compared to other countries because it is an Asian country where people mostly prefer tea as compared to coffee.

So, Nescafé gets a lower competitive advantage while entering or selling the products in this country. The awareness of the consumers about the coffee products is less as it takes the instant directions to tackle the business roles and the entire practices of the business values. So, it is one of the leading and the most essential terms to take the better responsiveness of the business.

UK market:

Table 3 Competitor’s analysis in the UK.

Competitors.	Pricing.	Competitive advantage.
Starbucks.	Medium to High.	Capability to add value while creating the experience for the consumers in the coffee shop.
Folgers.	Low to medium.	The coffee brand has the consistent Grind size as a key competitive advantage.
Tchibo.	Medium to High.	Accessible and business model reinvention driven by disruptive innovation.

The majority of British consumers drink coffee every day. In fact, in the year 2022, over 30 percent of coffee consumers in the United Kingdom drank coffee several times a day. While 24% consumed the caffeinated several once a day.

So, the UK is the best market by the consumption pattern and the nature of the Nescafe company. The majority of the consumers drink coffee as compared to the tea. To begin with, 80% of UK households purchase coffee but it is the older generation.

So, the overall strategy of the Nescafé coffee in the market of the UK is higher based on the consumption pattern. With the development of entire strategies and the ability to take the cleared descriptions, the overall resources will be traced. There are 80% of coffee is consumed in the United Kingdom each year.

Entry strategy of a multinational into two key markets:

Two relevant markets were selected for the comparison of the coffee company. Nescafe is a coffee brand by Nestle that reaches its operations all over the world. Which country is more effective for the entire success of the Nescafe company? Pakistan and the UK both are economic countries that have different lifestyles and preferences of consumers.

Table 4 Market entry strategies.

Country.	Entry method.	Strategy adopted.
Pakistan.	Joint venture.	Nescafe is a coffee brand developed by the Nestle company. In the market of Pakistan, Nescafe can enter through the joint venture strategy. With the combination of similar companies or companies for the aim of business planning and success, this strategy is reliable. So, Nescafé deals with the Pakistani market through the joint venture strategy.
The UK.	Acquisition:	Nestle has been a part of the United Kingdom since 1860 so, it is easy for the customers of Nestle to take the better approaches and generate the higher or valuable scenarios to take the clear efforts of the business terms. Acquisition of Nescafe refers to the control by another firm for the sake of profit., In the UK the Nescafe company is familiar with the name of the Nestle brand as it is the core product or brand of Nestle UK. So, aquatint is the more reliable strategy for the brand’s entry into the new market.

There are a lot of consumers of coffee existing in the market in the UK. So, it of the best market to raise innovation and generate clear practices regards the best plans. Aquest strategy for the Nescafe company is suitable to enter in the new market of the UK and reach the wide area of the target audience.

Distance between the markets and the possibilities of the selected counties are the key terms of operational efficacies that raise the Nescafe company’s success or improve the overall practices to tackle the business directions.

As the integrated brand network, nestle company will improve the current and the more loyal terms to lead the innovative terms. Offering tested manufacturing in the UK also helps the aquation strategy for intake of the better areas of the business.

Integrating the local possibilities and the business climate, Nescafe company will improve the overall approaches regarding the higher changes. Nestle is a well-known antinational conformant that has successfully expanded into different new markets. The market of the United Kingdom is developing of the changes as consumption changes. Considering the business roles and implementing the organizational presence, the Nescafe brand is reliable.

Segmentation, targeting, and positioning:

The process of STP analysis will evaluate the business plans and determine the greater roles to interact with the business decisions. By evaluating the segmentation, directing the business process, and leading the innovative changes, the business cleared plans will be derived.

Segmenting the given market, dividing the key target operations, and the reliable positioning of the business are the broad values that implemented the business forms as raising the cleared operations. As the STP analysis, the growth and the accurate descriptions will be added to take the innovative plans.

Table 5 STP analysis of Nescafe by Nestle company.

STP.	Pakistan.	The UK.
Segmentation.	Nescafe has divided into two southern and Northern areas that improve the business approaches and determine reliable thinking as leads the integrated forms. Dividing the market contemporary into the clear records, the business values will be added to take the cleared or valuable sources. The Nescafe sources were targeted to lead the integrated operations and measure the greater success. In Pakistan, based on geographic and demographic segmentation, Nescafe built strong relationships.	In the market of UK, the Nescafe was built to take the business resources and ability to take the innovative directions. Determination of the business values and tracking the cleared resources, the business integration will be reliable or added in the accurate direction. The segmentation process will act as the leading the internal responsiveness and taking the better reliable forms in the integrated change. Nestle company’s products will ensure the higher roles and lead the integrated networks to take the broad changes.
Targeting.	In the market of Pakistan, Nescafe targets the youth age people who have the resources to build interactions take clear reliable activities, and determine business sources. Leading the business association and managing the exact forms, the cleared resources will be exhausted to track the higher changes. Nescafe is the business term that increases the organizational presence and generates clear plans to make better decisions.	Nescafe targets every age people in the UK market because it explores the higher changes and tracks the business functions regards the connected terms. Targeting the people based on income level, and the determination also the priority of the target market as it leads the internal growth eras regarding the changes. Nescafe is a business that integrates large networks or takes the business values to take the innovative responsiveness as leading the greater terms.
Positioning.	Before thinking about the key positioning of the business, the development of the entire customer’s reviews will be addressed. Market positioning is the manipulation that improves the convenient resources or adds the most reliable directions. It will lead the strong sales and determine the clear approaches and taking the best conveniences. Generating the market position, the company will address the reliable plans of the business terms as leads the integrated roles.	In the market of the United Kingdom, market positioning is the reliable approach that helps Nescafe company to address the broad practices and implement better thinking in the convenient approaches. Tracking the business operations and leading greater innovation, the better thinking terms will be reliable to address the higher knowledge. The company positioned the product through the value-based and the product characteristics.

So, the STP analysis of Nescafe explored the particular options and the entire characteristics regarding the business values. Generating the best forms of business growth and managing the internal reliable strengths, the conveniences will be transformed to take the higher values.

In the market of UK, the broad analysis of STP will take the business operations and generate the best resources by doing the cleared values. Generating the broad eras and managing the internal growth networks, the firm’s growth practices will be referred to take the innovative operations.

Marketing Mix as 4Ps of the company:

Product:

UK:

In the United Kingdom, Nescafé has a huge or wide set of products that is mainly aimed to satisfy the customer’s operations Its maker sure that every kind of coffee lover finds the entire satisfaction after the testing of the coffee. The UK is one of the major markets of coffee that improves the business directions and takes the broad resources as doing the cleared practices because it organizes the interactions and generates the cleared operations as doing the instant directions. The demographic needs of customers are to be kept into consideration and provide the blend of the business resources.

Pakistan:

Skinny and decaffeinated are the flavors of Nescafe coffee that are used to improve business responses and ensure clear operations. For the management of the business and leading the strengths, the business’s reliability will be addressed.

Catering to almost every lover and making sure every response, the business interactions will be reliable to address the instant resources and taking the most communicated networks.

Price:

UK:

In this market, the prices of Nescafe coffee are set based on the quality of the product. More quality will lead to higher prices for business operations. The prices are set regarding the entire business formations and the determination of the overall values regarding the higher changes or determine the business integration. Managing organizational responsiveness and taking the best examples, the business integration plans should be reliable.

Pakistan:

In this market, the prices of Nescafe coffee are set based on the key competitors that improve the business operations and evaluate the cleared roles in terms of adding innovation. Tracking the business roles and adding higher communication, the business roles will be transformed to address the cleared forms.

The prices of Nestle’s products are familiar with the convenient operations and mainly introduce the future growth. In Pakistan, people are more likely to consume tea so, the sales of coffee are slow. That’s why the competitor-based price strategy is used to integrate strategic decisions and manage the most valuable directions to take instant directions.

Place:

UK:

The Nescafé brand become a household name concerning its growth. It makes sure that people all around the world are happy to integrate clear plans and manage the greater directions. Reaching the areas and targeting the customers, the business plans will be addressed to classify the reliable sources and integrate the cleared resources. Following the press of retailers and managing the broad reliable changes, the offline distribution strategy is focused on the business.

Pakistan:

In Pakistan, Nescafé is available by both online as well as offline methods. Customers will get the product through the superstores and the online sites or malls in the entire areas of the business. Directing the business values and leading the integrated networks, the business growth will be transformed.

FMCG companies will improve the process of retailers and generate the most convenient growth tactics regarding interactive plans.

Promotion:

UK:

In the market of the United Kingdom, the current products of Nescafe are promoted by using both offline as well as online media. The products are available through the entire practices and the determination of the business valued plans and it leads the higher resources to reach the classified business directions. Adding the classified values and implementing the greater directions, the business resources will be attached.

The social media pages and the physical stores are the key platforms that are used to interact the reliable planning and lead the integrated planning or adding the greater terms regarding the classified changes. 

Pakistan:

Nescafé company promoted coffee and other products in the market of Pakistan through the use of strategic plans and determined collaborative resources as it led the integrated plans. It is the country that improves the clarity of the sources and manages the greater conveniences. The use of social media, billboards, magazines, and newspapers for the promotion of the entire products are available to get the business reactions as leads the integrated networks.

Conclusion: Entry Strategy and Marketing Mix of Nestlé Nescafé

In this report “Entry Strategy and Marketing Mix of Nestlé Nescafé”, the comparative analyses of the Nescafe brand by the UK and the Pakistan market are defined. The effect of external environmental factors on the brand in the selected countries and the reliable growth networks that will classify the clear resources.

The PESTEL analysis is the model that defines the external factors to integrate the business resources and add greater plans. The analyses of segmentation, targeting, and positioning are the key strategies that improve the business resources and determine clear plans for taking better approaches. The UK is a more suitable country for Nescafe’s growth because it is determined by the current values and updates in the most accurate manners to take innovative responses.

As doing the comparative plan and building the internal values, the business collaboration will be exhausted leading the internal approaches. The evaluation of the marketing mix or 4Ps, and the business plans will be addressed that help to expand the operations.

To raise the business practices and manage the current strategies, business collaboration will be addressed as it leads the integrated networks. Nescafe company targets the specific markets of the UK and Pakistan to raise the overall sales.