Hello Nescafe lovers,
This time I will inform you about the pricing strategies of Nestle, I will do this as the same way I did last week.
I try to explain the strategies by answering the following questions;
- Are there any price-related promotions (such as price discounts or multi-pack discounts) around your product?
There isn’t an actual price related promotions for my product ‘ Nescafe Orginal ‘
As I figured out in my previous marketing questions I found out that big supermarkets like AH and Jumbo can buy directly coffee from Nestle. I searched on the sites of this supermarket of any price related promotions of coffee. Only AH provide advantage package, this means if you purchase a bigger package with more volume you will save some money.
As I figured out in my previous marketing questions I found out that big supermarkets like AH and Jumbo can buy directly coffee from Nestle. I searched on the sites of this supermarket of any price related promotions of coffee. Only AH provide advantage package, this means if you purchase a bigger package with more volume you will save some money.
As we can see in the first picture, the coffee pads cost 8.29 and you will get 30 pads for this price and the second picture 4.65 for 16 pads
If you purchase 2 packs of 16 pads you will purchase it for 9.30 and you will get 32 pads so it will be expensive as we compare it with the advantage package with 30 pads.
(AH, 2016) (Sally Dibb, 2016)
If you purchase 2 packs of 16 pads you will purchase it for 9.30 and you will get 32 pads so it will be expensive as we compare it with the advantage package with 30 pads.
(AH, 2016) (Sally Dibb, 2016)
External reference price: You can say that consumer can compare the price of those packages and prices and decide to purchase the package with more volume.
- Which pricing tactics are being used use for your product?
As I described in the first questions it will be clear that the pricing tactic that Nestle is using here is discounting tactic.
They are providing a package with more volume for a cheaper price if you purchase twice the normal package. So, there is a discount in price if the consumer purchases the package with more volume.
They are providing a package with more volume for a cheaper price if you purchase twice the normal package. So, there is a discount in price if the consumer purchases the package with more volume.
(Sally Dibb, 2016)
- Which influence do other marketing mix elements have on the price of your product?
Marketing mix consist of four elements: people, price, promotion, place
If the company will come to in a situation that promotion and place cost increases the company needs to cover the cost and could economize or increase the consumer prices of the goods. So, market mix elements have a big influence on the prices as we can see in my example / situation.
If the company will come to in a situation that promotion and place cost increases the company needs to cover the cost and could economize or increase the consumer prices of the goods. So, market mix elements have a big influence on the prices as we can see in my example / situation.
(Sally Dibb, 2016)
- Describe whether your company does use price differentiation.
Nestle uses price differentiation, it will be impossible for supermarkets to purchase the coffee for example 4.65 and sell it for the same amount and to make a profit.
That’s why nestle sells his coffee for a lower price to direct buyers.
That’s why nestle sells his coffee for a lower price to direct buyers.
The direct buyers can sell his product to the consumer for a higher price.
So we can see that the same products is sold for different prices to different clients.
So we can see that the same products is sold for different prices to different clients.
(Sally Dibb, 2016)
- How can the manufacturer influence the consumer price?
The manufacturer can influence the consumer price, the manufacturer can, for example, settle the consumer price or make some promotion like cash back.
(Sally Dibb, 2016)
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