Case Study Of Natura Roast

Natura Roast Case Analysis

Name: Jason Schott

Student Number: 6871958

Course: Marketing 1050 (Section 4)

Date: February 07 2014

Introduction

Natura Roast is a coffee substitute that has been the hot beverage choice of many consumers over the past hundred years. The product was recently bought by Nestle to add to their growing beverage product line. With no advertising over the last thirty years, the future of Natura Roast is in question. Nestle must decide whether to introduce a revamped advertising campaign to increase the sales or to kill off the older brand and direct consumers of Natura to other successful hot beverage options that Nestle has to offer.

Identification of the Problem

The main recurring problem with Natura Roast is the absence of advertising for the product. Although there hasn’t been a significant decline in sales, as more consumers enter the target market demographic they will be unaware that the product even exists. In the United States, there is an average of 20,000 new food and beverage products introduced to the market each year (See Appendix A). Beverages account for 25% of these products, an estimation of 5,000 introduced each year. With such a large number of drinks being introduced and marketed each year, if Natura Roast sales aren’t revived soon the product simply won’t last.

Situation Analysis

The core strength of Natura Roast is their strong brand recognition and reputation among their consumers. Building this type of loyalty takes years for some companies and for others it is simply unattainable. The previous company that owned Natura has been able to avoid advertising costs simply because these consumers continue to buy the product. Natura has an 87.7% market sha...

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...introduce the product into smaller coffee outlets.

Conclusion

Nestle has proven success in the past at keeping older brands vibrant in the market while being conscious of sales. Kit Kat is an example of a product that has remained a strong brand for the past eighty years. By implementing a well thought out marketing plan, Nestle will be able to afford to revive an advertising campaign for Natura Roast. It is less expensive to revive an older brand already in the market identifiable by consumers than introduce an entirely new brand into the market. Unlike other new products that are introduced each year, Natura already has loyal consumers and has been a proven success in the coffee substitute industry. With the proper implications and backed by beverage powerhouse Nestle, Natura Roast will be able build upon the 100 years of success for the foreseeable future.