The company Nestlé has a long history starting in the 19th century. Starting business in 1866, Nestlé experienced many changes in the business environment and constantly grew through new product introductions and acquisitions of other companies. At the end of the 20th century, the company had around 160,000 employees and operates internationally with around 200 plants worldwide.
Within this paper we analyze the situation of Nescafé in Italy during the 1980s. The objective of this analysis is to create the best marketing strategy for Nescafé, focusing on the analysis of the environment and the market. We also carry out an analysis (SAT) and finally we will make the best recommendations for the company.
In 1988, Nestlé Italy Company located in the city of Milan, generated more than $1 billion with more than 80 products in 10 different categories. Despite this, Nestlé Italy has a great competence in the coffee sector, especially for milk modifiers and instant coffee in which Nestlé obtained a share in the Italian market of more than 70%.
According to the case study, we figured out that Nestlé Italy has four main competitors in the coffee sector. Those competitors were Procter & Gamble Italy, Crippa & Berger, Segrafredo-Zanetii and Lavazza. We also could identify that their competitiveness could be evaluated by 2 core points. On the one side distribution channels which are divided in CHR and family sector. On the other side customer awareness which is also divided in instant coffee, roast and ground coffee. According with the Table A, Lavazza had the largest distribution channel in CHR and family sector. In addition, Lavazza had a higher customer awareness level for roast and ground coffee sector and Nestlé had a higher customer awareness level for instant coffee sector.
Customers have different expectations about the product in terms of special...