Brand Building Of Nestle Coffee In China Market

Most of the public's knowledge of Nestle coffee begins with its popular slogan, "delicious."

In fact, many people in the industry are familiar with its classic anecdote, that is, when Nestle coffee was born at the beginning of its birth, it once overemphasized the convenience (instant solution) brought by its technological breakthroughs, which once caused a crisis in sales.

The reason is that many housewives are reluctant to accept products that feel like they are "lazy".

It was in April 1, 1938 that the technology of spray dried coffee powder developed by Nestle was formally put into operation in Switzerland, and the world's earliest instant coffee was born.

Soon, Nestle coffee was sold in France, the United States, the United Kingdom and other countries.

Today, Nestle coffee has been sold in more than 100 countries around the world, consuming 1 billion 700 million cups a year.

Although nearly 24% of the company's turnover and L10 billion Swiss francs come from drinks, Nestle is not just a manufacturer of instant coffee, fruit juice and mineral water.

In 1990, Nestle had a turnover of 46 billion Swiss francs, and in 1997, its turnover in the first 10 months has reached 56 billion 900 million Swiss francs, an increase of 217.5% over the same period last year.

By the end of 1994, Nestle was selected by the financial world magazine as the third most valuable brand in the world, worth up to l15.49 billion dollars, second only to Coca-Cola and Marlboro.

Its distribution in various undertakings is: beverage (23.6%), cereal, milk and nutriment (20), chocolate and candy (16%), cooking products (12.7%), frozen food and ice cream (10.1%), refrigerated food (8.9%), pet food (4.5), medicine and cosmetics (3%), other products and cause (1.1%).

It is known as one of the most successful operators in the world today in the consumer packaged food and beverage industry.

In China, Nestle introduced milk powder and baby food in 199O.

Output surged from 316 tons in 1990 to l million tons in 1994, with sales amounting to US $200 million and by 2000 we expect to reach US $700 million.

International communication principles of Nestle coffee

From the consumer's point of view, international brands should mean that a traveller can find the same product and the same type in every country.

This raises the question of whether Nestle coffee is a real international brand. In fact, the brand of Nestle coffee is the same everywhere, and the pattern on the label may be the same, but the type, the actual composition and taste of the product are different in different countries.

Nestle coffee has more than 100 varieties, their tastes vary according to the tastes of consumers in various countries, which makes it difficult for travellers to identify products.

Therefore, it may be more appropriate to regard Nestle coffee as an international concept than to make it an international brand, because all the basic elements of Nestle coffee are the same.

As far as food is concerned, the strategy of producing products based on tastes and preferences of different places has been a great success, and it is often not feasible to follow a unified international strategy.

Nestle coffee is one of the most convincing examples.

Like Nestle's business philosophy, it follows the principle of "decentralization of authority" in its structure and organization.

This is also expressed in Nestle's "market mind" (MarketHead) - that is, the idea must be linked to the market situation, and the actions and means taken are striving to meet local needs and requirements.

Mr. Helmut Maucher, chairman and chief executive of Nestle, strongly felt that Nestle's companies could make the best analysis to determine how the products in the food industry adapt to local tastes, habits and preferences, and take into account national food related regulations.

However, to make a brand a leader in the market, just like Nestle's Ramon Masip, the European executive vice president, must become a "low-cost manufacturer".

If a company wants to achieve higher efficiency in marketing and advertising, it should make the way of information communication between its products and consumers more consistent and simplified.

For example, in Europe, one way is to develop a new product for the whole of Europe under such a positioning, and make its packaging and labeling in all countries exactly the same.

According to the trend of more integration of European market in Nestle, Nestle has adopted such a new strategy: making every effort to make new products achieve greater consistency; at the same time, it also accepts the subtle differences of brands showing everywhere.

In recent years, Nestle has taken a lot of measures, which is reflected in the company's long-term plan.

The objectives of the plan are: to formulate the basic communication strategy for Nestle's most important strategic brand; for example, Nestle coffee; to formulate guidelines for packaging and symbol symbols for these strategic brands, so as to achieve greater consistency; to reduce the number of advertising agents serving each brand, so as to enhance the efficiency and effectiveness of communication with consumers.

More than 300 kinds of Nestle products (not just coffee) are produced in 421 factories in 61 countries.

Bei Bei, headquartered in Vevey, a small city in Geneva, Switzerland, has made strict regulations on the production technology, brand, quality control and main raw materials.

And the executive power is basically the head of the branches of every country.

They have the right to decide on the final formation of each product according to the requirements of different countries.

This means that the company must maintain a comprehensive decentralization policy.

In pursuit of greater consistency, it is necessary to maintain a delicate balance in order to achieve this dual goal.

This is the balance between international operation and local state operation, and it is also a balance between international communication and local state communication.

Such a balance would be easily destroyed if it was not implemented in accordance with the same basic policy and the same goal without considering all the relevant factors.

In order to correctly implement the new policy and inform the branch how to implement it, Nestle has put forward three important documents.

The content involves the marketing strategy of the company's strategic brand and the details of the product presentation. The Labelling Standard (LabellingStandards) is only a guiding document, which clearly defines the elements of the label design.

Such as Nestle coffee logo, font and color, and the proportion of each detail.

The document also lists the legend of various products, and suggests that the labels should be used as early as possible by the branches.

The Package Design Manual is a much more flexible document. It proposes various ways of using standards.

For example, packaging materials and forms of packaging.

The most important document is the Branding Strategy.

It includes details of marketing principles, background and main features of Nestle products.

These main characteristics include brand personality, expectation image, company with brand connection, visual characteristics of other two documents, and development of brand usage.

Advertising and agents for Nestle coffee

In order to better achieve the consistency of brand communication, Nestle has decided to reduce its advertising agency worldwide.

Now, the agency that works closely with the company has dropped to 5, namely, Mccann, Jomo Thompson, PubilisFCB, Omi, and the lion, which formed an international advertising agency network.

Nestle's headquarters has designated a priority advertising agency for each strategic brand.

Mccann and J. Thompson are the preferred companies for Nestle coffee.

Local branches can make their own choices from these institutions.

Practice has shown that if the advertising service is more centralized, the effect will be more satisfactory.

1. at the very beginning, Nestle was delighted with the revolution brought by the technological breakthroughs to the traditional coffee drinking way. Naturally, the advertisement wanted to emphasize the convenience brought by instant dissolution. However, it did not expect this to be contrary to the buying psychology of many housewives.

Because in 30s and 40s, when men were inferior to women, women lacked confidence. They took care of their husbands and children as important tasks in life.

With the progress of the times and the emancipation of women, the advantages of instant coffee, which are both convenient and original, have been greatly improved.

Entering the Japanese market in 60s, it was immediately welcomed by housewives, especially for families who did not wear beans props at home.

Then, when this advantage is weakened due to the gradual promotion of time-saving and labor-saving machines, it is obvious that this convenience will not be effective.

2., the emphasis of advertising is on the purity, taste and aroma of the product.

Therefore, the branches of every country adopt the product oriented advertisement, emphasizing Nestle coffee is "real coffee".

This is also consistent with the popular background of product oriented advertising in 50s and 60s.

3. when people gradually recognized that "coffee is Nestle coffee", the focus of Nestle Coffee Advertising changed to lifestyle orientation. Advertising especially focused on the lifestyle of local young people.

For example, in British advertisements, Nestle gold coffee played a role in promoting romantic love in a pair of lovers.

In 1961, when Nestle coffee entered the Japanese market, its product oriented advertising strategy was adopted.

The slogan of "I was Nestle coffee" first appeared in TV commercials, plain and clear, and appeared again and again on television for a time.

Then, in 1962, according to the habit of coffee concentration expressed by Japanese consumers on how many coffee beans to make a cup of coffee, a "43 grain" advertising campaign was launched, which is a typical USP (unique sales proposition) strategy.

The commercials sing "Nestle coffee, 43 coffee beans in a spoonful, sweet Nestle coffee, everyone's Nestle coffee".

Because of its beautiful melody, it has become a nursery rhyme in the streets and alleys.

The name of Nestle coffee (Nescafe), which is viewed from different languages in the world, gives people a clear impression and combines with the image of eliminating tension and pressure. In Chinese, Nestle gives people a warm feeling and a strong correlation with "home".

In 70s, in Japan, the advertising campaign of "men who knew differently" expressed the concept: "Nestle gold coffee has a high profile of" created by a man who understands difference ".

The advertisement has created the atmosphere of "Nestle coffee makes Japanese men busy working for instant enjoyment", which has impressed many Japanese people so far.

The advertising strategy of Nestle coffee in China can be divided into two stages.

In the early 80s, we first introduced the simple slogan of "delicious taste" to introduce the "tea ceremony" in the West.

At that time, for many young people, it was better to say that they were quietly experiencing a western culture that gradually became popular instead of nesting coffee.

The "delicious" campaign lasted for many years.

Although the advertising films have been reinvented many times, slogans have been changing.

It almost became the successful example of every advertiser in 80s.

Recently, Nestle coffee has launched a new series of TV advertisements with the theme of "good start".

Advertising takes the elders' care and support to the younger generation as the emotional link, and the young people who have just entered the work place are the protagonists, etc., to express Nestle coffee to help them reduce their work pressure and enhance their confidence in accepting challenges.

This is the reaction made by Nestle after realizing the subtle changes in the lifestyle of the young generation of China in the 90s.

Today's young people, they are eager to do their own things, while retaining the traditional ethical concepts; they realize the difference between their parents, but they respect their parents; they yearn for independence, but do not alienate their parents; although there are generation gap between the two generations, there is more communication and understanding, they have a strong dedication, but also face the pressure of work and continuous challenges.

This is the lifestyle of young people nowadays, and has become the communication basis of Nestle coffee's "new start" advertising.

Nestle is a successful example in maintaining our leading position in the industry market.

Its success is not confined to a certain battlefield, but rather to the victory on the whole front line.

Next, we summarize the consistent principle of Nestle's leading position in Asia with its outstanding performance in Asia.

1. strategic vision and principles

Long term vision and lasting perseverance.

Nestle is trying to analyze any possible market opportunity and develop the best food for it, and then strive to make it a successful long-term investment project.

In order to enter the Chinese market, Nestle held a 13 year long dialogue with China before being invited by Heilongjiang province. Allowing it to produce dairy products is a sign of its patience.

In 1990, Nestle Company finally set up the first milk powder and infant cereal factory in our country.

Instead of using local strained railways and highways to milk and deliver dairy products, it built its own milk road between 27 villages and factories.

The company pays the farmers quickly to encourage them to produce more milk and buy cows.

So a freight pport system which only loaded Nestle products was established.

Analysts believe that no company is willing to invest in China like Nestle.

Thorough understanding of customers.

Nestle Company studies its customers through persistent marketing research and information gathering, including the final consumers and pactions.

It has its own 20 research institutes all over the world.

Consumer preference surveys are widely conducted.

For example.

The company realized that Asians had higher standard requirements for food, and they did not want to reduce their requirements only for convenience and convenience, including instant noodles and instant porridge.

Therefore, Nestle produces condiments and gravy, which can be stored and used in cooking.

Now nestle has helped developing countries such as Sri Lanka, India, China, Indonesia, Malaysia and Thailand to establish their own dairy processing industry and consumption preferences for coffee drinks.

2. products and brands

Product innovation.

Nestle is an active product innovator.

The first batch of food technology experts hired in Asia is the local chef who specializes in cooking in family and restaurants.

Then the food will be raised to the level of mass production.

At the same time, the company trained R & D personnel for 2 to 3 years, and exchanged with other Nestle organizations.

Quality strategy and production efficiency.

With the introduction of the product, the company has been committed to improving and improving product quality for a long time.

For example, Asians began to dislike artificial seasoning and tend to natural seasoning, so the company spared no expense in researching 25% of the budget, developing a meat seasoning that can be extracted through biological processes such as fermentation.

The company has excellent skills in manufacturing, and strive to keep its cost in the same industry.

Product line extension.

Nestle produces different specifications and forms of brand to satisfy consumers' preferences.

This allows Nestle brand to occupy more space on the shelf, thereby effectively preventing competitors from invading.

Multi brand strategy.

Nestle believes that a well planned brand will benefit the company for life.

In every market, Nestle should pick 2 or 3 brands from its more than 8000 brands in its L1 strategic brand portfolio.

This is aimed at reducing risks and concentrating attacks.

3. sales channels

Good cooperation.

Nestle firmly believes that trading partners are an important factor in the success of Asia.

Therefore, it has always maintained close ties with them.

Nestle first used the sales outlets in Japan, and the local wholesale and retail system was completely integrated into two bodies.

At the same time, the two part of sales promotion activities will be organized by a certain sales channel and wholesalers.

In Thailand, in order to establish a strong relationship with the local supermarket.

Nestle provides them with the latest inventory management system and teaches them how to use them.

4. communication and promotion mix

Lots of advertisements.

Nestle does not hesitate to spend money in creating strong brand awareness and preferences for consumers.

This allows the company to win a higher market share soon.

In South Korea, for example, Nestle has only won 35% market share in 7 years, defeating the monopoly of Kaf (Kraft) General Foods Company for a long time.

This is mainly based on large-scale advertising campaigns.

Aggressive salesperson.

Nestle has a high level of sales force. They have a good command of English and graduated from University (or even MBA). They can effectively win shelf space and carry out exhibitions and promotions at the scene with retail customers.

In Thailand, they are known as the "red hot sales commandos".

S P and public relations.

Nestle Company designs the promotional campaign according to local conditions.

Meanwhile, Nestle is trying to minimize S P activities and turn to advertising and public relations to establish long-term consumer preferences.

For example, in Shanghai, China, Nestle is keen to sponsor activities such as theatrical performances, English corner and so on.

The company is also willing to make special reports in universities, giving company materials to university students and spreading company culture.