Why Nescafe is still the largest coffee roaster in the world?

Southern Cross did a survey recently on 1650 folks in New Zealand. More than 46% actually prefer instant coffee which is significantly more than the 34% who prefer barista coffee.

Personally, I do not know why anyone will be surprised by these findings. Nescafe has always been the largest coffee roaster for so many decades. 

Does it mean that consumers really love instant coffee? 

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In a certain way, they do. Nescafe has the right value propositions –convenience and value for money. 

Cafes and coffee snobs will talk about how bad instant coffee tastes and even criticize Starbucks (although technically Starbucks produces beans to cup coffee) but strangely, these are the ones that are generating good profits.

Many cafes have failed to realise the one thing that is very important in business -value proposition : Why should I purchase from your shop? 

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Nescafe and Starbucks are both in the coffee business but selling very different solutions. The former is selling for home consumption, while the latter is for outside consumption. But they have one thing in common -they make it very easy for consumers to purchase their products. 

And they do it by being as “distributed” in as many places as possible.  

It is not difficult to look for Nescafe instant coffee and you do not have to search very far for a Starbucks outlet in most developed places. They are usually conveniently situated in prime locations.

I heard this term from a friend and absolutely agree with it -critical mass. Small businesses that wants to get bigger have to be able to reach the critical mass.

Once you have found your critical mass and can position the right value to them, you have a winner. 

Both Nescafe and Starbucks have found theirs, have you found yours? 

About the Author: 

Ebenezer Heng runs a community that reaches out to 0.5 million people daily (Oncoffeemakers.com’s digital assets). Lectures in a Singapore Tertiary Institution and advises digital marketing for organisations such as Chinese Chamber of Commerce, National Sports Association, Constituencies. 

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