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REDvolution: Repositioning the Nescafé Brand
Abstract
This case is about the repositioning exercise of the Nestlé’s Nescafé brand which was started in the year 2014. Sales of Nescafé were declining in the years before 2014 as the demand for instant coffee had been falling in some of the major coffee drinking countries around the world. Many young customers who were drinking coffee for the first time in their life perceived instant coffee to be outdated and instead preferred fresh coffee sold in coffee chains like Starbucks. . The rise in the sales of portable coffee machines, which made it possible to brew fresh coffee easily, too had impacted the sales of Instant coffee. Smaller instant coffee brands had also started to eat into the market share of Nescafé. Nescafé was the biggest brand in the stable of Nestlé and a number of coffee related products were sold under the brand. |
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Issues
The case is structured to achieve the following teaching objectives:
- Understand the importance of repositioning a brand when its performance is declining
- Explore the strategies that can be followed by companies to reposition their old brands
- Analyze the steps taken by Nestlé to reposition the Nescafé brand to make it appealing for the younger customers
- Discuss the implications for brands in this new age, which is marked by a proliferation of social media where consumer reactions can make or mar a brand.
- How brands can impact the performance of a company
Keywords
Coffee, Instant Coffee, Nestlé, Nescafé, REDvolution, Coffee Machines, Nespresso, Nescafé Alarm Cap, Nestlé Coffee-mate Creamer, Fresh Coffee, Social Media, The Pod, Nescafé Red Cup Machines, Shakissmo, Starbucks
