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Executive summary

Since the introduction of Nescafe into the market, the brand has become one of the most recognized consumer brands in the market. It is mainly a coffee based brand, although, the product line has recently diversified to include a host of other coffee related products (Nescafe, 2012). The company seeks to expand its base even further. One of the ways to achieve this is by embarking on massive campaigns to raise awareness and attract newer customers and develop stronger brand loyalty. These efforts are already underway, and this report will outlay some of the strategies that the company will pursue in this endeavor.  Nescafe Australia is honored to be associated with this company and wished to grow into the future, propelled by out esteemed customers.


There is a claim in the market that over 2500 cups of Nestle products are consumed every second. This statement, if true, shows the extent to which the product has penetrated the market. It is the dream of the management team in all companies, to propel their products to the global stage and maintain them at a level where sales are assured, and the customer base does not go down. At Nestle, this dream is alive. It is what has pushed the company into looking for measures that can be taken to advance the product even further. In order to achieve this, companies have to carefully place their products in a manner that will attract customers, beat the competition, and realize a sizeable profit margin to keep the company running. This is an uphill task that needs utmost caution when approaching.

Consumer goods are among the markets that are the most easy to operate in. This is explained by a wide market range, and an endless flow of customers who will demand the product. The main challenge is that this market is somewhat flooded by numerous producers, hence, a company supplying such a product has to be on high guard against competition. For a long time now, the hot beverage market has operated in an oligopoly setting. This is where the number of producers is relatively small. Nestle and Cadbury are among the most visible players in the market. Recently, however, many companies have joined the market, thus, causing a struggle for the market share. The advertising efforts that are outlined below, will work towards strengthening the position held by Nestle in the market, while particular attention is paid to the Australian market.

The Australian market is fairly strong, having been in existence for around 70 years. This section of the company accounts for close to 20% of the total coffee consumption in the country (Advertising brief 2012). After the 2010 Nescafe Plan, the company has gained tremendous rooting into the market. The additional efforts discussed in this plan are a formality to ensure continued popularity and profitability of the company.

Context Analysis

As it is earlier mentioned, the company has a fairly strong standing in the market. The line of production is viable and has a going concern. Coffee is one of the most fundamental drinks on earth, and, hence, the demand is unlikely to die in the near future. To analyze the company in greater detail, a SWOT analysis is necessary. It is helpful to show areas in which the company needs to work on, and where further growth is feasible.


The company has a widely recognized brand. Hence, there is worldwide recognition for their products. This offers them an advantage over other fairly new companies in the market since they do not have to spend much on publicity and brand image creation. This factor has caused a continuous positive performance of the company over time. This has propelled the company to expand into new areas, both geographically and in terms of production.

Apart from popularity, the company has a customer base that is loyal to their products. In the time that their products have been in the market, their clientele have remained with them, hence, propelling a continuous chain of demand and supply. Therefore, continuity of the brand loyalty is another strong side of the company.

Multinationals face a challenge with the distribution of their products. Having production based in one part of the country and sales taking place throughout the world, a company has to invest in a mechanism that is efficient and swift. The company is approaching its highest year. During this time, they have amassed a web of distributors to all parts of the world. Their products can be sold in all parts of the world without hitches such as unavailability due to inefficient transport. This factor places the company at an advantageous position in the market.


One of the weaknesses that the company needs to address urgently is the source of raw materials. In the past, coffee beans were readily available, and there was little competition for these beans in the market. However, recently farmers are moving to more feasible agricultural products. If not addressed, this will cause a dent in the company’s production process and possibly drive this cost upwards. As a result, the company needs to find another alternative to solve this problem.

Economies of scale may topple even the largest companies. With their wide scope of production, the company may find it difficult to fund all their projects. This may cause some of them to stall, hence, reflecting negatively on the company’s record. If the company decides to reduce their production’s scale, it will suffer a direct decrease in profits.


Newer markets are constantly emerging, especially in Africa and some parts of Asia. They provide an avenue for the company to spread their operations and probably increase their market standing. Nescafe Australia aims at targeting these markets using modern approaches in order to improve their position and profitability.

The nature of the product which the company deals with is geographically homogenous. This product can be sold anywhere, hence, there are no huddles that the company faces in terms of expansion. In some cases, some products face a limitation to the extent with which they can be pushed into specific market groups. For instance, pork cannot be marketed in areas with a large population of Muslims because of the specific cultural requirements that forbid them from partaking in such products.

Another significant opportunity for the company is the favorable economic conditions in Australia. A company benefits directly from the prevailing economic climate in the host country. People have disposable income to spend on consumer products. Companies can also get finances for their operations at a greater convenience than if the country was undergoing difficult financial times.


The company already faces steep competition from other companies. Sometimes competition forces a company to adjust their prices downwards so as to remain in the market instead of being thrown out. If all firms cannot agree on a specific equilibrium price, some of the players will result in selling their goods at a loss. This will cause a reduction in quality, hence, putting the consumers at a disadvantage. Therefore, the competition is detrimental in any market.

New brands are entering the market every day. This offers the consumer more choice, thus, threatening to reduce the business of existing firms. As a result, the company faces the imminent threat from all firms that are entering the market.

IMC Plan for the Company

This plan contains all the elements that are essential in building a feasible communication and marketing network for the company (Clow & Back 2007, pp 13). The foundation for this plan is based on the product that the company offers on the market. It is aimed at influencing the buyers’ decisions to favor the company and, hence, increase sales. It will focus on customers and their ultimate satisfaction.


The plan is aimed to increase the awareness of the company’s products. Increase of the company’s awareness is implemented through communicating to customers the message on the company and everything that they offer.

Another objective of the plan is to curb steep competition by giving the company a better chance to fight in the market. Once the company builds their popularity, they will benefit financially.

Another objective of this plan is to increase brand loyalty of the consumers aligned to the company. Loyalty results from exemplary service and satisfactory utility. This plan will ensure that customers are served fully and maximize their returns when they purchase the products offered by the company.

Target Market

One of the striking advantages of this product is that it cuts across the age and the gender barrier. With the exception of young children, coffee products are suitable for all people in the society. In rare cases, one may abstain from coffee products by a requirement from a medical practitioner. Therefore, the target market of the advertisement for this product includes people of all ages and gender. For purposes of spreading the message further, the efforts will be directed towards rural Australia, where coffee usage may not be as popular as it is in the cities.

Coffee is a fairly affordable product. Hence, there is no need to divide the target group into economic classes. However, there are some products prices of which should be considered by the company. These include high market drinks that might set the consumer back a significant portion of their income.

Brand Positioning

A brand has to be set in such a way in which it will be able to attract the highest number of customers. To do this, the company will employ the 4P’s analogy in order to carry out successful advertising campaigns. Latter should always rely on the key elements in any marketing efforts. The first crucial element to consider is the product itself. The company has to present the product in a manner that seems presentable and likeable. If the customers are not attracted to the product, they cannot purchase it; hence, the advertisements’ efforts will fail.

The second element is price. The company has to set the price at a level that is favorable for consumers. If it is too high, the consumers will prefer goods suggested by competitors. The place and promotion are the other variables that are considered when carrying out a marketing plan. They help the company to position the efforts in the most economically viable way to achieve maximum results.

Media Plan

Media plan for the successful marketing campaign should include the best mediums to carry out the advertisements. In this case, the plan should consist of TV advertisements, billboards and magazine print outs. These three forms of advertisement are the most common, both in terms of efficiency and market coverage. Almost everybody in the target group has access to a TV set at home. Magazines are cheap and, hence, readily available. Getting space on magazines is also cheap, thus, the company will not have to incur an enormous cost.

TV space is expensive, especially in the common stations and during prime time. However, this medium is the most effective and most advisable in carrying out corporate advertisements. The number of sections that should be booked depends on the level of maximization that the company looks for when advertising their products.

Billboards are a fairly new concept in the marketing. Their biggest advantage is that they are easily visible. They are also relatively cheap. Using billboards, the company will reach a large number of potential customers at a low cost.


The concepts discussed above are key guidelines for the company to go through spreading their influence throughout Australia and even in other countries. These plans should be followed strictly to ensure that the intended message reaches all targeted groups of consumers and that the customer base will grow further. Competition will also diminish if the plans are run efficiently.

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