Nestle promise we commit to everyday, everywhere- to enhance lives, throughout life, with good food and beverages. Nestle was founded in 1866 by Henri Nestle and is world’s leading confectionary, nutrition and food company today. This company is based on Vevey, Switzerland and employing around 280000 people in over 150 countries and running 461 factories or operation in 83 countries. The strategy of the Nestle is guided by several fundamental principles:

Innovation and renovation are the basis for the growth of the product balancing the geographic activities and product lines

Never sacrificed long term potential, for the short term performance

Regardless of the geographical barriers, Nestlé’s priority is to bring the best and most relevant products to people

Nescafe UK

Nescafe is one of the renowned brands among various brand produced by the Nestle. ‘The rich taste of your favourite coffee is reflected in its rich history’. Generally, coffee is a beverage that has some properties which can energize and revitalized the consumers. In the UK, Nescafé is targeting basically young adult customers range between 20-35, middle and high class people and also the professional or working executive (who are working very hard).

In present context, the biggest challenge for every company is to recover and to survive in the recession, and, Nescafé is not apart from the current situation. Even though it is still in the profit, companies profit is getting lower due to downfall on the sales ‘the volume of goods sold rose 2.8% in 2008, but down from 4.4% in 2007.

Figure 1: Sales trend of Nescafé

The bar chart above shows the continued growth of the sales of the Nescafé till the second half of the year 2008; but, the profit of the company is gradually decreasing as the sales started to fall by the first half of the year 2009. The main reason behind this problem is the macroeconomic factors like the global recession that’s leads to the increase in the inflation rate in UK by 3%-5% (generally, 2-3% of the inflation is acceptable).

However, to revive from the current situation, Nescafe has applied various innovative and renovate ideas. Nescafé even have various brand within the coffee, for example Nescafé gold, premium, decaff etc. targeting the various range of the customer according to the taste and the preferences. Besides coffee, the company has launched other product such as coffee maker machine, and also following sustainability strategy, refill pack, etc. under Nescafe plan for profit maximization. It is also merging with various other companies like burger king or other businesses using their Nescafe Milano Plan.