Advertising Practices of Nestle's Nescafe - Book Report/Review Example

?Topic: Review of Practice Advertising Practices of Nestle’s Nescafe: The company chosen to analyze advertisement practices is Nestle’s Nescafe. Nestle is one of the major food companies in the world. It has effectively introduced various new products to food and beverage industry. The marketing strategy of the Nestle’s Nescafe is to “think globally and act locally.” “Nestle claims to be the world's largest and most diversified food company, marketing its products in almost every country in the world. It has grown in the Americas and in Europe, mainly by buying up smaller food companies, by joint ventures and take-avers” (Brabeck 2004). The marketing campaigns of Nescafe are undertaken worldwide. The Nescafe logo and its distinguished coffee mug are known universally. Advertisement is one of the promotional strategies used by the company to attract its clients towards the products. The promotions of any product or service symbolize the company’s view of communication in the marketing activity. Promotion in the case of service is dissimilar from the promotion activity of the product. It assists in creating positive as well as negative reaction regarding the product. Nestle is established firm in the food industry; and it promote the sales of its products through TV, Print media, internet, leisure programs, broadcasting, etc. Print media consists of ads in magazines news term paper, etc…These ads offer information concerning the types of services, in addition to the sale of its products at places where there are fast food services. Promotions through TV comprise its ads in different global channels and state channels. The promotion of any product in food industry has to be decided on the basis of the company’s strategy associated with development, publication, sales expansion etc. Therefore, a good promotion strategy must be adopted to give effective ideas regarding the product in the target market. The promotion strategy has to be so effective that it should capture the clients, or create positive reaction regarding the service in the minds of target clients. “The Nestle Communication Principles are required reference points for all marketing staff and advertising agencies globally, and must be used when developing consumer communication” (The EU Pledge on Advertisement to Children Nestle Commitment 2011). The Advertising Aim of Nestle’s Nescafe: Customer Focus: Appealing to a wide range of customers is the most important aspects of the plan. Greater modernization in packaging and presentation of the products through the different suppliers of power brands and business partners: Continue using moral sourcing standards while working among suppliers Continue to engage in regular conversation by way of its suppliers, and react to their suggestions. The print media, television, and posters have been the major media of communication for the advertisements of Nestle’s Nescafe. Nestle employs various types of direct mailing campaigns, print ads, campaign programs that target of medium range at health practitioners, and internet advertising programs of various dimensions. Nestle’s promotional and advertising practices with regard to Nescafe using every form of media are very effectively planned and executed to generate a strong motivating need for consumers to buy their goods. Their market shares grow up as much as 90%, with an excess of 3,000 cups consumed every second Nescafe is by far the world’s most leading coffee brand name; and also the fourth powerful beverage brand, subsequent to Pepsi, Coca-Cola, and Budweiser. The global profile of Nescafe has been updated by its entry in refrigerated and iced beverages, but the company still has one impediment to overcome that is, the supremacy of ground coffee and roast in the US, and its rising popularity in other developed marketplaces. Advertising Agencies – Nestle and its subordinates use more than 100 dissimilar communicative systems of, advertising, and public relations organizations worldwide. Some of these consist of: ??Publicis Dialog – California based Public Relations/Advertising firm. ??Euro RSCG ??Alan Taylor Communications ??J Walter Thompson – Promotes Nestle Rowntree in the UK and chocolate bars in Canada ??Lowe Paris – Promotes Nestle chocolate in France and the UK ??Ogilvy – Ogilvy is the self proclaimed ‘lead agency” for Nestle. They manage advertising in water, beverages and chilled dairy. ??Publicis Groupe – A large advertising group based in France. ??ZenithOptimedia Group, part of the Publicis Groupe ??GroupM, part of the WPP Group ??Dentsu for media services in Japan” (Coffee, Water and Kibble: A Food on the Profile and Beverage Giant 2005). The advertising agency of the any product or service may be either a full-service agency or a part time agency. Both have a different viewpoint and advertising activities. The choice of advertising agencies depends on whether one needs a full-service agency or a part-time agency. The reason for choosing such advertisement agencies to capture the minds of the customers is to ensure the compatibility of the agency group, stability of the agency, its services, reliability, and its crisis solving approach. “Caliber, compatibility, balanced services, responsiveness, talent an equitable compensation-these are important factors in selecting an advertising agency” (Selection of an Advertising Agency 2010). The services of the agencies can be assessed these ways. The payment of the advertisement advisement agencies is also made on the basis of their full-service or part time service. Ethical and Regulatory Issues in Advertising: “Advertising has attracted much social criticism. It is difficult to challenge criticism of unethical advertising, but it is important to understand the difference between ethical and unethical practices” (Advertising n.d). There are many ethical issues involved in advertising. Advertising is Dishonest and Misleading: 2/3 of the Americans believe that ADS are dishonest. Deception happens when ADS falsely symbolize a product and customers believe it Advertising Regarding the Product is Manipulative- When advertisements have the authority to influence citizens in their choice of products, then it is manipulative. Priming can be extremely influential, for the reason that advertisers can take benefits of that. Advertising practitioners do have the capability to influence customers in an extremely subtle way. Ads Being Offensive and in Bad flavor. At times ADs ridicule individuals, their discriminative power, and even turn offensive.. Advertising Generates and Perpetuates Stereotypes: Ads generates and perpetuates ladies and disadvantaged citizens and so is guilty Citizens Purchase Things They Do Not Really Require: Ads cause citizens to purchase items or services they do not require. Advertising Influences populaces Insecurities and Fears: Ads can appeal to various types of negative feelings such as guilt, fear, and humiliation. Therefore, AAAA an association that located standards on ethical practices in advertising is vigilant in observing whether there are any forms of dangerous ads. Critiques the advertising practices of Nestle-Nescafe: The main purpose of giving information about the product quality, durability, availability and features of the product is to make the customers conscious about any product or service, and persuade them to purchase it. “The American Marketing Association defines advertising as any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor” (Lesson 23 Advertising n.d). Advertising helps in creating the demand for the product, and also in retaining the existing customers. The success of the company can be best measured by viewing and examining the advertisement it gives to the customers. Therefore, advertisement plays a major role in establishing the reputation of the company. “Under the Federal Trade Commission Act: advertising must be truthful and non-deceptive; advertisers must have evidence to back up their claims; and advertisements cannot be unfair” (Legal Issues in Advertising n.d). An advertisement becomes unfair when it is possible to cause considerable consumer injury which a consumer could not convincingly evade, and it is not compensate by the profit to consumers. Advertising Practices of Nestle-Nescafe: Nestle Nescafe’s advertisement strategy is led by several fundamental principles. Nestle caption is “Good Food Good Life” (The Nestle Roadmap to Good Food, Good Life 2011). This indicates the spirit of Nestle and the guarantee they entrust themselves always and everywhere, concerning nutrition and health. It focuses on the wellbeing and better health of its customers. By adopting successful advertisement strategies and marketing strategies, they are able to gain the confidence of the customers. Food is the basis of happiness and nutrition, and consumers desire both flavor and health. They satisfy both these needs through various programs. It is the first company with inclusive policies to contain organized decline of all public health sensitive nutrients, without compromising on matters of taste and pleasure for customers. A healthy lifestyle necessitates a dependable variety of diverse, pleasant, and tasty food mixed with physical exercise. The company provides no bad food, whether it is sweet, fresh, or frozen. It is all about producing healthy varieties and balance. Nestle is exclusively positioned to distribute different mixtures, of food items, and the product range comprises numerous choices for every moment of the day, and for all family members. The Nestle nutritional scope offers clear, visible, and truthful nutrition information about their products. They help consumers know how various foods are suitable for a healthy lifestyle and diet. Throughout their promotional activities, they advocate for moderation, physical activities healthy eating habits and not to weaken the power of parents in making decisions on the choice of best nutrients for their children. Nestle values the environment and it is dedicated to environmentally sound business practices all throughout the world. It takes into account all that is necessary to protect natural resources and to save energy. Functions of Advertising Campaigns: Nestle builds a good image by “investing millions in public relations and advertising campaigns” (Kraus 2012). Nestle is the first company to use Twitter for ad campaigns as it attracts a large number of customers to post tweets within the ad. This helps in establishing communication within the advertisement campaign. Nestle strives to come up with a name for their new product, which would motivate the public to purchase it. They blend the word Nestle and the Italian word for coffee with the hope that the Italian assumption would generate an appearance of relation as well as confine their imagination. Their consistent, expensive ad campaigns target the American housewives, and they have become a huge success, thereby increasing their global market share. With the use of effective ad campaigns, Nestle received global publicity in the US market in 2010. .Realistic Objectives: The company “reflects the basic ideas of fairness, honesty, and a general concern for people” (Strategic management 2010). Products and customers are more important to Nestle than systems. A strong orientation for human beings is a decisive element for long-term success. Quality products are in the main focus. The ultimate objective for a (food) company is to prove its capability in providing products that are appealing through their taste, quality, variety, and price. They help the coordination of food regulations in order to remove it existing trade obstacles; and to evade the manufacture of new ones. Customers prefer a wide range of choices such as nutrition, food science, and food safety. The company offers timely, well-organized, and high quality service that consumers expect from Nestle. Listening to customers helps the company to understand what customers need. At Nestle, they care their consumers a lot, because success depends on satisfying their needs and expectations. By listening and understanding, they make products that customers want to consume throughout their lives. Problems in Creative, Brand Execution Issues: Product management has turned more into an international or global idea. Nestle company has artfully combined global and local brand management. At times, it becomes difficult for the company to extend and position its brand in the global market. What ad testing (if any) does Nestle Nescafe do and how do they measure advertising success? Ad testing is an important characteristic feature that permits one to test several versions of an advertisement copy, to decide which ad message works best. Persuasion test is used by Nescafe to examine the effectiveness of an ad on variation in behavioral intentions and attitude. The attitudes of brand, and their behavioral intentions or purchase probabilities are appraised prior to the ad’s exposure, and subsequent to the exposure of the ad. “There are several variations in persuasion tests depending on whether the ad is exposed as part of an overall program context, and the extent to which the pretest and retest are separated from exposure”(Advertising Testing Techniques n.d). The most vital characteristic feature of persuasion tests is the audience composition, which makes them more expensive. Nestle at first struggled to come forward with a name for their new beverage product (Nescafe) which may motivate the public to purchase it. So they combined the two words Nestle and cafe, the Italian word for coffee, with the expectation that the Italian implication may create a feeling of romance, and that it will capture their minds. Actually it worked through an expensive and aggressive ad campaign that aimed the US housewives. “Nestle is not selling Nescafe merely as a coffee, but it is a brand associated with achievement and freedom” (Indian Journal of Marketing 2009). For Nestle, Nescafe became a big success, and its global market share got doubled. In order to measure the success of their advertising, advertisers of Nestle Nescafe examine reported or actual delivery, by analyzing schedules, or by a physical illustration of copies, tapes, etc. Recommendations The Nescafe’s moderate-paced commercial ads incorporate scenes from real life. “In the United States, Nescafe employs a rational appeal” (Arena et al 2010). Nescafe creates copy?cat ads that resemble Starbucks’ ad. This appeals to culture of aggression and competition, quite characteristic of the US people. As consumer begins to pay more attention on value, this ad may then appeal to those end users. Nescafe always tryies to reverse the idea that consumers get what they pay for, by offering equal level of quality for a less price. In this case, rational appeal is applicable, as instant coffee is not usually consumed in US. It is recommended that Nescafe endorses itself as a brand, rather than trying to fight with countrywide celebrated and renowned brands. “Each advertisement of Nescafe build impression of consumer so, this brand can live in mind of consumer” (Promotion Strategies n.d). The company should focus more on satellite channels for advertisement, as the, public is more attracted to televisions. To create further effective advertisements, the companies should engage celebrities as brand ambassadors. The general public always have some fascination for celebrities. Nescafe should focus on its presentation value and language of advertisement, as most of the people memorize the advertisement only because of these ad factors. Reference List Arena, N. et al (2010). Nestle Nescafe International Advertising Strategy. San Diego State University. . [Online] Available at [Accessed on 19 May] Advertising Testing Techniques (n.d). Gelb Consulting Group, Inc. [Online] Available at Read More