Jaipuria institute of management

SMGT Project work

Topic: Nescafe and 7s

Submitted to:
Submitted By:
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Pro. Amit sharma Pavitra kumar
(JIML-09-103)
Coffee has the distinction of being the second most-traded commodity in the world, after
oil. It is also one of the world's most popular beverages. Nescafe has emerged as a
world leader in the coffee industry and the word ‘Nescafe' has become almost
synonymous to coffee. On an average around 3000 cups of Nescafe coffee are
drunk every second all over the world. Nescafe is also the leader in India and has
been quite successful in capturing a substantial market share over a period of time.

The 7S Framework is a management model developed by well-known business

consultants Waterman and Peters (who also developed the MBWA-- "Management By
Walking Around" motif, and authored "In Search of Excellence") in the 1980s. This was
a strategic vision for groups, to include businesses, business units, and teams. The 7S are
structure, strategy, systems, skills, style, staff and shared values.

Nescafé

Nescafé
Type Instant coffee
Owner Nestlé
Country Switzerland
Introduced 1938
Markets Worldwide

Nescafé is a brand of instant coffee made by Nestlé. It comes in the form of many
different products. The name is a portmanteau of the words "Nestlé" and "café"Nestlé's
flagship powdered coffee product was introduced in Switzerland on April 1, 1938 after
being developed for seven years by Max Morgenthaler and Vernon Chapman.

Products
Nestlé claims that 3,000 cups of Nescafe are drunk every second

Nescafé products include

 • Nescafé Original
• Nescafé Classic (in Greece called "Frappé")
• Nescafé Classico
• Nescafé Gold Blend, (in Sweden called 'Lyx' as in 'Luxury')
• Nescafé Gold Blend Decaf, (in Sweden called 'Lyx' as in 'Luxury')
• Nescafé Gold Blend Half Caff
• Nescafé Black Gold
• Nescafe Blend 43
• Nescafé Blend 37
• Nescafé Decaff
• Nescafé Half Caff
• Nescafé Fine Blend
• Nescafé Partners Blend (Fairtrade)
• Café Parisien (The Paris experience)
• Nescafé Suraya
• Nescafé Alta Rica
• Nescafé Alta Rica Decaff
• Nescafé Cap Colombie
• Nescafé Espresso
• Nescafé Red Cup (available in several European countries)
• Nescafé Green Blend (with more antioxidants, available in Sweden)

Nescafé have a speciality range which includes:

• Nescafé Cappuccino
• Nescafé Cappuccino Unsweetened
• Nescafé Cappuccino Skinny
• Nescafé Cappuccino Decaffeinated
• Nescafé Cappuccino Unsweetened
• Nescafé Decaffeinated
• Nescafé Latte Macchiato
• Nescafé Latte
• Nescafé Latte Skinny
• Nescafé Ice Java Coffee Syrup
• Nescafé Excella

Nescafé have a Café Flavours range which includes:

• Vanilla
• Irish Cream
• Mocha
• Double Choca Mocha
• Mocha Skinny
Branding and marketing
Nescafé is a brand within Nestlé. Nescafé can be traced back to the 1930s. In the US the
Nescafé name was used on its products up until the 1960s, Later, Nestlé (owners of the
Nescafé brand) introduced a new brand in the United States called Taster's Choice, which
supplanted Nescafé for many years.

In the United Kingdom, a television advertisement campaign starring Anthony Head and
Sharon Maughan ran in 12 instalments between 1987 and 1993. The first 11 episodes
were released as a promotional compilation video called Love Over Gold in 1993. A
novelisation of the same name written by Susan Moody (under the pseudonym Susannah
James) was released in the same year.

In 2003, the company reintroduced the Nescafé brand in the US, and the product is now
known as Nescafé Taster's Choice. It is sold in US supermarkets such as Safeway in both
glass and plastic packaging.

While the Nescafé brand was created for soluble coffee, it has subsequently been used as
an umbrella brand on a number of instant coffee products, including, in the UK, Gold
Blend and Blend 37 freeze-dried coffees.

In 2006, NESCAFE launched the new coffee machine system "Dolce Gusto." The system
allows consumers to make various styles of coffees themselves (Cappuccino, Latte
Macchiato, Espresso, Lungo, etc.). Additionally, hot chocolate and cold drinks can be
prepared with the machine. The machines are now sold in more than 15 countries
worldwide.

Other Marketing activity included Experiential Marketing/Relationship Marketing, which

led Nescafé to become the headline sponsor of Good Food show 2008 at Birmingham
NEC as part of their campaign to drive awareness of the increased Nescafé collection.
95% of consumers at this popular event rated the Nescafé Collection stand the best at the
show. Nescafé used advanced 3D technology to engage their consumers, led by iD
Experiential.

In the UK in August 2009, Nescafé unveiled a £43m ad campaign for Nescafé, focusing
on the purity of its coffee and featuring the strapline "Coffee at its brightest".

Strategies:
Attacking green tea market: Nescafe are implementing a cunning positioning strategy
to enter the growing green tea market. Tapping into consumer health consciousness,
Nescafe will be positioning their product as having 70% more anti-oxidants than regular
green.

Do people drink green tea because of the flavour or the health benefits?
If you surveyed all green tea drinkers, you would find that there is a mixture of
reasons for drinking green tea but a large percentage of them do it for the perceived
health benefits. Today more than ever these health benefits 'pull' consumers into buying
their product.
Nestle released a line extension of Milo infused with vitamin B, they called it 'Milo
B Smart', needless to say the positioning behind it lead to it being a preferred option to
the many substitute products that mothers could be buying their children.

The product composition

The new Nestle product benefits from brand awareness, leveraging the Nestle brand
as the worlds best known coffee. The brand comes with a halo effect, passing on positive
brand attributes to the new product lines. The question is, what is stronger consumer need
for anti-oxidants or do they really want traditional green tea?

Making the product available at every relevant market is also part of strategies..like
colleges, schools, offices, main markets and so on other places.

Pricing is different for different products and from cheap to high depending upon the
product.

• STRUCTURE

Nescafe follows decentralization management systems that increase the efficiency

of each level of the company. Though separate regional office reports to the head office
but it operates and takes action according to the local policies and values to achieve the
company goal. It reduces the decision making process and develops the accountability
among the executives.

• System
They use machine to prepare the coffee to be served the machine works this way:
• 2 machine options with 12 drink selections
• Delivers a menu of NESCAFÉ PARTNERS’ BLEND white coffee, black coffee
and cappuccino; together with NESCAFÉ Milano white coffee, black coffee,
cappuccino, latte, espresso, hot chocolate, and hot water for tea

• Shared value

NESCAFÉ is in fact only one brand within the Nestlé family where quality goes well
beyond the product itself. Throughout the world and across Nestlé brands, they are
involved in a broad range of social and environmental initiatives that together make quite
a difference. For them, caring about the wellbeing of others and the environment is
integral to their promise of improving the quality of life through good food and beverages
everywhere. Their commitment to great tasting and trusted products has and always will
be tied to respect for the environment and the people they work with, including the
farmers who supply them, their employees, their consumers and the communities where
they operate.

• Style:

Nescafe has a very cordial system of behavior in case of interaction amongst employees
they care for each other. So the style can be said as caring but democratic style. As is
clear from this poem as has been written about it some where.

Nescafé poem:

I'm addicted to Nescafe. I don't drink black coffee.

Can't live without Nescafe.
So here’s a poem about my addiction.

Nescafe, Nescafe
How can I live without you
I'm advised not to touch you
But how can I not
I'm addicted to you

Many a time I tried to avoid you

But how long could I stand
not having you

I missed you when you are not there

My mind will go crazy
thinking of you
After having you
I'm up and away

• Skills:

Marketing strategies.
Deep penetration into the market.
 • Staff:

Generally these are 2 or 3 people serving in a shop rest work depend upon
machines. The people so working are properly trained before starting their work
not stipulated.