Marketing 2

Case Analysis

Purpose

This structured case analysis asks you to apply your marketing knowledge, critical thinking, and professional skills in a business-to-consumer setting.  You will be asked to complete both quantitative and qualitative analysis in addition to recommending a course of action for the problem or opportunity presented. 

Task

· Read the case:  Nestle Nescafe Instant Coffee - Farmers Blend 

· Submit your responses to the case questions

· The questions help structure your effort and analysis.   

· Questions are a combination of short answer and multiple choice

PART 1 - SITUATION ANALYSIS - SA

 1. What is the key problem in this case? Limit your response to no more than 100 words.

2.What type of segmentation information does the case present from the Fairtrade Labeling Organization (FLO)? Psychographic, Behavioral, Geographic, Demographic

3. What type of segmentation information does the case present for US instant coffee drinkers? Behavioral, Demographic, Psychographic, Geographic

4. Which of the following is an example of primary data?

a. Data from FLO states that half of all coffee drinkers globally (regular or instant) who heard of Fairtrade have bought it at least once

b. Nestle surveyed 200 instant coffee drinkers in the US. Results indicate that they are sympathetic to the plight of coffee farmers, with 50% willing to try a fair trade coffee

5. What global factors are relevant to the situation Nestle is facing and how do they influence your analysis? This essay has a maximum word count of 100.There is a word count below the text area.

6. For Nescafe Classic, what is the current (i.e. before Farmers Blend) variable cost of coffee beans for a 100-cup jar?

7. For Nescafe Taster's Choice, what is the projected variable cost of coffee beans for a 100-cup jar if you decide to use the FLO Fairtrade mark for Farmers Blend?

8. If you were to launch Farmers Blend at retail price of $15.00 and a contribution margin for Nescafe of 35%, how many 100-cup jars would you need to sell to break even?

PART 2 - STRATEGY RECOMMENDATION

9. Assuming Nestle decides to launch Farmers Blend in the US, which brand label and tag line should Nestle choose? Note: Assume these are your only options.

a. Nescafe Classic - "The world's premium coffee brand"

b. Nescafe Taster's Choice - "The simple solution to a fast-paced life"

10. Should Nestle obtain FLO's Fairtrade mark for Farmers Blend?

a. No, do not obtain FLO's Fairtrade mark

b. Yes, obtain FLO's Fairtrade mark

11. Write a positioning statement for Farmers Blend.

12. Explain the rationale behind your strategy recommendations.

PART 3 - IMPLEMENTATION RECOMMENDATION

 13. Provide 4-6 specific actions Nestle Nescafe should take to launch Farmers Blend into the US market (e.g. retail price).  For each, briefly explain why. Please use bullets or numbers to separate your 4-6 specific actions (e.g. Action 1, Action 2, etc.)