Nesextravaganza is the name of the cold coffee that will be offered by Nestle at all of the parlors’ outlets so that everyone around the country can try it out. It has a huge range of direct and indirect competitors as it is competing with many brands in each of its product category. As the competition is at its peak, Nestle has to work upon differentiation strategies to deal with their customers and also ensure that they maintain their customer base in the market. Associating the brand name with an ice cream parlor is a unique and creative idea as well because many organizations are not observed to take such a step.
However, for the cold coffee, it is in direct competition with Starbucks, Gelato Affairs, Movenpick and all other coffee shops ice cream parlors that are offering cold coffees. In the initial phase, the company has decided to introduce three unique flavors in cold coffee; one will be simple but strong cold coffee, second option will be caramel flavored cold coffee and third will be the chocolate flavored cold coffee.
Since Ben & Jerry’s has seen a robust growth in the demand of cold coffee at its coffee parlors, it has to include this product in its menu list so that it can enter into the coffee market like Gelato Affairs has done. All organizations need to move ahead in the competition with the business requirements, ignoring any competitive move would prove to be consequential for the firm.
At it already has a huge range of flavors in the ice cream category, it has the potential of offering various other options in cold coffee in the long-run which can enhance the experience of its customers to a great extent. Nestle has carried out the market survey and it is concluded in the study that the customers are willing to pay premium prices for having an excellent cold coffee at the ice cream parlors. The respondents have emphasized in the survey that they would love to have a chilled glass of cold coffee at Ben & Jerry’s which is has been ranked at the top level by the customers. It was even revealed that the target market prefers to visit this parlor once a week with their friends as it is their favorite place for hangout. The product ‘Nesextravaganza’ has a huge market potential and it can achieve its objective of gaining the top market share in the cold coffee sector in the ice cream parlors. Nestle Nestle’s history dates back to 1866 when it started its operations in Cham, Switzerland by the name ‘Anglo-Swiss Condensed Milk Company’. At that time, it was the foremost European company that was producing condensed milk for the customers. In 1905, the company merged with Nestle as a result of fierce competition within the industry and since then it has been dominating the confectionaries and coffee industries (“Nestle History”, 2013). The leading brands of Nestle are Nestle Pure Life, Nesquik, Nescafe, Nestle, Haagen-Dazs, Maggi, Milo, Nido, Nestle Milkpak and many more. As of 2012, the company had net profit of $ 10,611 million which is consistent with its 5% yearly growth rate despite the economic recession that is impacting the businesses globally (“Nestle Key Figures”, 2013). The primary objectives of the company are to be known worldwide as the leading corporation that fosters Nutrition, Wellness and Nutrition, gain trust of all the stakeholders and enhance the financial performance of the entire industry. It is common and well known fact