Nescafe's Chinese Market Expansion Strategy Under The Quality Goods Consumption Generation

In the first and second tier cities in China,more and more Starbucks coffee shops or international chain coffee shops,as well as other independent coffee shops,are opening up in the business districts or corners.In contrast,the instant coffee market is getting smaller and smaller.From the belief in a tendency of higher-quality products consumption in the Chinese coffee market,Nescafe,Nestle's coffee brand,as a well-known coffee brand in Europe and first instant coffee brand in the global market,is inevitably about to be subjected to a serious impact.Currently,due to a maturation of consumer behavior,the consumer demand standing is on the rise.The instant coffee and the coffee fashion once represented by Nestle are not able to satisfy them anymore.In such circumstances,how should Nescafe continue to develop in the Chinese market?Should it search for proceeding to a further promotion towards a specific consumer group,in order to uphold the main consumers?Or,should it apply other methods to persuade the customers,who keep on turning their back on the brand,to stay?The present study goal is,through a market research and its analysis,to find countermeasures to Nescafe's current difficult position in the interest of a future development of this imported trademark.This paper is mainly based on theories related to consumer demand and decision-making,such as following:it mainly relies on Maslow's hierarchy of needs theory,while subsidiary relying on Means-End Chain theory,as well as on the basics of 4P classic marketing theory;and analyzes the macroeconomic environment of the Chinese coffee market and the competition currently faced by Nescafe,besides,using a quantitative analysis method through questionnaire,it proceeds to a detailed and objective analysis of the Chinese consumer preferences on Nescafe brand,as well as their consumption attitude and purchasing decisions.Afterwards,on the basis of the above-mentioned analysis,the present research proceeds to a SWOT analysis of Nescafe and summarizes the advantages and disadvantages of Nestle coffee brand,its opportunities and challenges.Finally,the research provides recommendations related to Nescafe's Chinese market expansion strategy through a detailed analysis from the angles of market penetration,market development and product development strategies;furthermore,using the 4P theory,it completes the analysis by searching the potential improvements of Nescafe pricing,distribution and promotion strategies.This research expects to provide a significant support and a genuine usefulness for the future development of Nescafe in the Chinese market.