- 1. Pricing Strategy
Market entry strategy:
Nescafe is using marketing Skimming strategy when they enter into the market in a country, because at that time they believe that their target customer for coffee belonged to upper class, after that with the success of this strategy they reduce their prices and target the upper middle class, but that strategy doesn’t form into penetration.
Pricing strategy for establishing products:
For Nescafe, the focus is focus on the maintaining prices because in circumstances where a price change may be desirable, but the magnitude of change is undeterminable. It is found the competitors of Nescafe are very week in terms of having market share, so it give company a edge on competitors to maintain prices while introducing new product.
Price leadership strategy:
Nescafe is at the moment having a price leadership strategy and it is because it fulfills all the requirements of a successful price leadership.
Flexibility in pricing strategy:
They have flexibility in their pricing strategy but only for the Institutional businesses, otherwise they stick on with same prices in market. And this is because their competitors are not powerful and not in a position to dictate Nescafe to create flexibility in pricing.
2. Market and Demand Structure
The instant coffe market is absolutely oligapolistic but Nescafe has a few competitors eg. Jacobs, Cafe Crown and Tchibo. In this market the demand structure is elastic.
3. Product Mix Pricing Strategy
Product line pricing strategy; Nescafe has a full line of instant coffe products and because of differences in customer perceptions of the value of different features, they use product line pricing strategy. Each of Nescafe Classic, Nescafe 3in1, Nescafe Gold etc. Has different price in different sizes.
4. Price Adjustment Strategy
Geographical pricing; different prices for customers located in different part of the World.
Nescafe Classic 