Selling coffee, spreading smiles

Business // Tuesday, October 10, 2006

http://www.todayonline.com/articles/147674.asp

Nestlé highlights the wellness effects of Nescafé Gold

TANG LI
news@newstoday.com.sg

FINDING a unique proposition for a fast-moving consumer product like coffee must be one of the biggest challenges in retail marketing these days, with nearly every product differentiating claim used up. Take the most obvious differentiator — taste. Everybody has "the best tasting" coffee.
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In the absence of price differentiation, companies selling coffee have resorted to image-building to attract consumers. Coffee chains like Starbucks, Coffee Bean and Coffee Club are marketing themselves as trendy places that promote café culture, while Ya Kuns and Killiney Kopitiam have decided to sell nostalgia for the old coffeeshop. Others are selling nationality. Just look at the proliferation of "Italian" and "Colombian" coffees in the market.
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One brand that is trying to do something different is Nescafé Gold, the soluble coffee brand made by Nestlé.
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Aware that Switzerland is not known for its coffee, Nestlé is wisely not harping on nationality and has, instead, taken the unique marketing position of selling wellness and the happiness that comes from the enjoyment of good health.
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Stressing this point, Mr John M Miller, managing director of Nestlé Singapore, says Nescafé Gold is more than just a cup of great-tasting coffee. "It stimulates our senses to bring inspiration, alertness and vitality to both the mind and body. When consumed black, Nescafé Gold can actually help you keep your calorie intake low," he says. That is why the product is allowed to carry the Healthier Choice Symbol by the Health Promotion Board, he adds.
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Nestlé Singapore has spared no effort in spreading its "happy" message. It recently launched a series of print and outdoor adverts focusing on the Nescafé Gold Bottle, with taglines such as "one less reason to diet" to highlight the product's health benefits.
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Nescafé Gold's brand management has also made extensive use of public relations and events to define and take ownership of wellness. Judging by Nescafé's events, wellness is linked to relaxation, both physical and mental.
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In July, Nescafé Gold organised an art exhibit and auction to raise funds for Very Special Arts Singapore, a charity that aims to rehabilitate the disabled through artistic pursuits. At the event, publicity efforts were focused on a Thai artist who uses Nescafé to paint.
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On September 14, Nescafe Gold extended this concept further and organised a Smile Challenge. Members of the public will be invited to have their photos taken with a cup of Nescafé Gold. The pictures will be posted on a 15-foot-high Nescafé Gold bottle to be built at the centre of Marina Square.
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Nestlé has said it wants to set a record for holding the largest coffee-sampling event ever to be held in Singapore and the largest bottle ever made in Singapore.
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Has this strategy paid off? While year-on-year sales have yet to be released, the vigour in which Nescafé Gold has pursued its communications strategy shows that the coffee brand intends to take a dominant position in the market.