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“Nestle’s Nescafe Partners’ Blend: The Fairtrade Decision

2210 words - 9 pages

With consistent growth of “ethical” product category, it is important to outline the profile of Nestlé’s target segment-“Do What I Can” group. This is the group that is estimated to include 75 per cent of overall UK population. It is the most moderate group in terms of its involvement in the issues of global significance like global warming, converging economies, and political instability around the world. This group will not boycott products or block highways to demonstrate their views. However, this group is very much aware of the global issues and does not mind contributing, even though contribution of each individual in this group will ...view middle of the document...

If asked, this group will confirm that poverty of coffee farmers is a concern for them, but when faced with an option of paying more for a “socially responsible” product (if nobody is watching) they may still pick up a cheaper product from the shelf. Uncertainty avoidance is driving the lower involvement in any social issues: on the one hand they do not want to affect their own well being and on the other hand our “Do What I Can” customers are never completely confident about where their money will be going.
Another cultural belief that reduces the amount of contribution is strong individualism and the belief that by working hard one can make anything possible. This belief makes our tribe question the root causes of poor performance and the moral need to help out.
These customers recycle, but only if it is convenient for them. They oppose fur trade but happily eat hamburgers and proudly wear leather shoes. They will be able to discuss the danger of global warming, but will not change their gasoline eating monster truck or inefficient appliance.
Our customers are time pressured, they are juggling multiple demands. Issues of global importance are far from being their first priority. Because of the time constraints, these customers get information from the most readily available source of information: television and Internet.
“Do What I Can” customers will take the opportunity to improve the world around them but only if this opportunity is clearly visible, correctly framed, makes them feel good about themselves and is of little or no cost. It is Nestlé’s job (and a solid business case) to give our customers this opportunity.
In order to evaluate Nestlé’s marketing strategy we would need to define the problem. Based on the information given in the case we can formulate the problem as follows:
Nestlé UK, being the industry leader, is facing a changing competitive market whose growth will be coming primarily from premium and certified products, categories where Nestlé has not gained a strong foothold. The market is characterized by price pressures, fragmented and volatile supply and increasing importance of “ethical” products. Nestlé UK is also working through the lack of structural alignment and weak interdepartmental collaboration.
We will use this problem statement as a basis for strategy evaluation.
Internal Directed.
Nestlé is on the right track involving different departments like marketing, corporate affairs, and production in developing Partners’ Blend. The only concern is that being the industry leader, this approach should have been in place for some time now. I am assuming that marketing was not engaged in their previous activities on helping developing countries, as a result Nestlé UK was not able to communicate this added value to the customer and the brand did not enjoy the same growth as some of the Fairtrade certified products.
Industry Directed.
Nestlé is...

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