Last time I told you about Nescafe and their places in the supermarket, I tried to explain it by asking questions and answering it. This time I will use the same method to explain what kind of services Nescafe can use in the supermarkets.
Which services (related to your product) are offered by the manufacturer of your product? Describe the extended marketing mix for these services.
Extended marketing mix: product, promotion, price and place/distribution, physical evidence, proves and people.
Product:
Nescafe produces a different kind of hot drink products. Below you will find an overview of the products:
Latte versions: Amerato, hazelnut, Caramel, Vanilla, Macchiato,
Cappuccino, Moca, Espresso, Nescafe gold, Wiener mélange and ice coffees
The consumer can choose one of these hot drinks of Nescafe, the service is the choices that the consumer has.
The products of Nescafe has a high position in the market and is recognized as a good quality product with the best taste for a suitable price, the coffee of Nescafe will be continued developed.
Promotion and price, place:
Nescafe coffee is A-brand and normally there will not be sales in the price. There are some commercials of Nescafe this can increase the knowledge. I discovered in some areas there are some coffee machines in the supermarket, the consumer can take here a cup of coffee for free. Nescafe can promote their taste to give some cup of coffee for free in the supermarkets or to make a combined sale like purchase now 2 packs of coffee get coffee milk for free. I went also to the Jumbo and AH supermarket in both supermarket there is a hole shelf row with only Nescafe products and this is a promotion of the Nescafe products.
The service that Nescafe can offer to the consumer is the product availability in the supermarket nearby. Giving a cup of coffee in the shop as trying can increase the sales of Nescafe and the merchandiser can make direct contact with the consumer. Giving combi sales has the service that the consumer gets a free product that the consumer maybe need to consume the other products like cigarette and lighter, Nescafe can give for example coffee milk free if the consumer purchase more products of Nescafe.
Process:
To make coffee you need coffee beans, Nescafe has their own farmers, Nescafe is stimulating the farmers in different ways and let the farmers work that it will also influence the environment in a positive way. After they choose the beans that satisfy the quality norm of Nescafe, they will transport their beans to every company that produces the coffee in different countries. In this fabric, they will make from the beans the coffee/ the Nescafe coffee products. If they produce this product they will send it to their clients and those clients will sell into the end users.
Physical evidence:
Consumers can purchase coffee in the supermarkets nearby their home. There is a shelf row with only Nescafe products with different variants and compare the products and packages.
On the products of Nescafe, there is a sticker with a visible brand logo consumers can recognize products from Nescafe by this logo of Nescafe. In some areas, there are some places in the supermarket where the consumer can sit and drink coffee for free. Nescafe can use this to let the consumer taste the coffee, Nescafe can send for example free coffee to this specific supermarket to use it in the machines, the consumer can try the coffee of Nescafe if they do this.
People:
Consumers can only purchase coffee in the supermarkets and in review questions 2.5, I described what kind of clothes the employees wears in the supermarket. In the supermarket Jumbo, the employees need to make some test of services (7 zekerheden toets) if they pass this test they can work for Jumbo. The advantage for Nescafe is that the service in the supermarkets will increase, the consumers can become a loyal client if they like the service they get and questions from the consumers to the client will be answered in a consumer satisfaction way. In the Mediamarkt there are also merchandiser from Essent, if a consumer purchase some goods, the employees of Mediamarkt will recommend the client to go to this Essent merchandiser. The merchandiser can give you some present card, if the client changes his electricity provider to Essent, the consumer can only use this present card in the Media market. Nescafe can also do this, Nescafe can send some merchandiser to supermarkets to make sure the shelf is neat and give consumers advice and let them try and promote the products.
(Sally Dibb, 2016) (Nescafe, 2016) (marketingteacher, 2016)
Which new services do you see could be interesting to have for your product?
Like I mentioned before, Nescafe can hire some merchandiser and send them to supermarket to make sure the shelves are near and contact consumer and give the consumer advice and something to try
Explain the intangibility, variability, inseparability and perishability of these services and explain which consequences these service characteristics have for the marketing of your product.
I found the following definition of intangibility, inseparability, and perishability in the book marketing strategies and concepts
Intangibility and consequences on the service
This is a service that you cannot purchase, taste, see or smell. You can think about someone who gives you advice or teaching you something.
One of the services that I mentioned in the questions; Which new services do you see could be interesting to have for your product? Is hiring someone to promote the product in the supermarket. One of the things he or she will do is contacting the clients and give them the reason why they should choose the brand Nescafe instead of other brands. This service will only happen once a time and they cannot touch, see, taste or smell this service.
Variability and consequences on the service
Those are the changes in the same service but it is provided by someone else. Like teaching is service but the way of teaching something can vary.
It is naturally, that everyone who delivers the service will deliver it in their own way. The one is directly or the other one is more kindly, the other will have his own system how to make the first inspiration to the consumer. This is also the situation of the merchandiser of Nescafe.
Inseparability and consequences on the service
‘In relation to production and consumption, a characteristic of services that means they are produced at the same time as they are consumed’
The recommend service (merchandiser) is a service that cannot be saved after you received the service you cannot expect to receive the same service again.
The only opportunity to have just an overview about the product is to read the description in the back of the product, ask employees in the supermarket or do a research online.
Perishability and consequences on the service
‘A characteristic of services whereby unused capacity on one occasion cannot be stockpiled or inventoried for future occasion’
The only thing that is possible to evaluate with a questionnaire how consumer interprets the service they received and uses it as a learning point for in the future.
The service itself that they received from the merchandiser cannot be stocked
(Sally Dibb, 2016)
The quality of the service is a key feature of services. Give two examples of how the quality of services for your product could enhance the client/consumer’s quality perception.
First, Nescafe should send a merchandiser to every shop that sells the Nescafe product. He will make a picture how the selves are, is it neat or a mess is there enough products in the shelves. After this, he can let consumer taste the coffee and advise them why Nescafe is the best. In the end, the merchandiser needs to hang over a questionnaire about the service they received and they can give feedback.
Nescafe can use the feedback to see what the needs are of the clients and so met the services to this needs and it will improve the quality of the service. Also, the presentation of the products in the shops can be used as one of the points to improve if it is a mess in the shelves.
Let’s say that you export your product in a country you never exported to before. What promotional strategies could you follow in relation to the product issues and promotion? (see fig.21.6 p 632) Describe a possible strategy for your product.
I think the best promotion for Nescafe is to use the product and promotion are the same globally. Nescafe is coffee brand and they have the same slogan ‘it all starts with a Nescafe’, Nescafe should use the same product and slogan in the new market. Only commercials should be changed like if you export to India they should use someone from the Indian population in the commercial instead of a European guy, it naturally that there should be a huge difference in a culture so they should not use some message that will cause cognitive dissonance.
In this case, it is more important to use a merchandiser that will let consumer get acquainted with the product and give more information about the product.
Explain how the P of people is linked to your product from the perspective of personal(see p 631).
A merchandiser is personal from Nescafe and the merchandiser will make contact and will promote the product. A merchandiser is specialized and pass the training and can motivate other to purchase some goods. With a lot of motivation is it possible to sell products from Nescafe to their people (consumer).
See you next week my Nescafe lovers!
http://www.businessdictionary.com. (2016, 12 21). merchandising. Opgehaald van http://www.businessdictionary.com: http://www.businessdictionary.com/definition/merchandising.html
marketingteacher. (2016, 12 21). physical-evidence-marketing-mix. Opgehaald van marketingteacher.com: http://www.marketingteacher.com/physical-evidence-marketing-mix/
Nescafe. (2016, 12 21). Coffee. Opgehaald van Nescafe.nl: https://www.nescafe.nl/onze-koffies/nescafe-product
Sally Dibb, L. S. (2016). Marketing concepts and strategies. United Kingdom: Cengage Learning.
