Report on Dolce Gusto Coffee Machine Marketing Strategy
This report is based on Nescafé Dolce Gusto which is the coffee capsule system introduced by Nestle. Under this report, the marketing strategy of Nescafé Dolce Gusto is discussed in which the company is going to provide the coffee machine to its customers at their homes (Nestle, 2019).
This Nescafé Dolce Gusto coffee machine was manufactured by hardware manufacturers Arno from Næver, Krups and De’Longhi. The first series of the coffee machine was brought in the market in 2006 with the different models. In order to the marketing strategy of Dolce Gusto, the STP strategy and the marketing mix are defined below for marketing the company’s products.
STP (Segmentation, Targeting, and Positioning)
Segmentation: under the segmentation, the company segments its target market in order to offer its products to its potential customers. Moreover, Nescafé Dolce Gusto adopts all the segmentation types including geographic area, demographic area, psychographic area, and the behavioral area, etc. so that all kinds of customers can be included in its potential customer group (Mindrut et al., 2015).
Targeting: Under the targeting, companies need to select more attractive segments from the segmentation stage. In this way, Nescafé Dolce Gusto has decided to introduce its products in whole Switzerland so all the customers can make coffee at their home with the help of the Nescafé Dolce Gusto coffee machine. Moreover, Nescafé Dolce Gusto adopts the differentiation marketing strategy.
Positioning: With creating the products, services, people, channel, as well as image differentiation, Nescafé Dolce Gusto has tried to arrive in touch with its customers more effectively in comparison to other competitors (Gandia et al., 2018). As per above, Nescafé Dolce Gusto brought a specific product such as a coffee machine for making its position within the target market.
Product: As per the product strategy of the marketing mix, Nescafé Dolce Gusto is a coffee machine manufacturer that has provided the coffee capsule system to its customers for their homes. The company introduced this product with different features in comparison to its competitors so that the customer can have the same coffee at their homes which they drink at the market (Chintagunta et al., 2018).
Price: Company has set up its product’s price as per its product’s quality which cannot be determined at its competitor’s products. Due to its features, the product price of the company is a little bit expensive. Along with this, the company also adopts a competitive pricing strategy so that it can compete with its customers significantly.
Place: It has been identified that the company’s most revenue comes from the European countries and it is around 90% of its total sales. In this concern, the company adopts both kinds of distribution channels such as direct sales and indirect sales through the retailers so that more customers can be captured by the company (Gandia et al., 2018).
Promotion: Under the promotion, it is examined that the company has adopted social media marketing along with extensive advertising as well as marketing for its individual products or brand such as Nescafé Dolce Gusto coffee machine.
Chintagunta, P. K., Qin, M. S., & Vitorino, M. A. (2018). Licensing and price competition in tied-goods markets: An application to the single-serve coffee system industry. Marketing Science, 37(6), 883-911.
Gandia, R. M., de Andrade Ferreira, C., Guimarães, E. R., Sugano, J. Y., & de Rezende, D. C. (2018). The coffee capsules consumption practice. Revista Pensamento Contemporâneo em Administração, 12(2), 31-42.
Gandia, R. M., de Andrade Ferreira, C., Guimarães, E. R., Sugano, J. Y., & de Rezende, D. C. (2018). The coffee capsules consumption practice. Revista Pensamento Contemporâneo em Administração, 12(2), 31-42.
Mindrut, S., Manolica, A., & Roman, C. T. (2015). Building brands identity. Procedia Economics and Finance, 20, 393-403.
Nestle. (2019). Nescafé Dolce Gusto: About Us. Retrieved from: https://www.nestle.com/brands/allbrands/nescafe-dolce-gusto.
