Nestlé’s Special T

Nestlé’s Special T

By Dipti Prasad Padhi
Last year Nestlé’s Nespresso posted a sale of 2.8 billion Swiss francs with an annual growth projection of 22% due to a strong marketing campaign, advertising blitz and celebrity endorsement. George cloony who fronted as the brand ambassador for espresso gave the brand a strong impression in the coffee market.
 
Now it’s a question if Nestlé’s special T to be launched in the market can repeat the same success story as Nespresso. As per tea consumption goes British market to a great degree is the largest market in Europe where people prefer tea over coffee. It is similar to India where milk tea is highly preferred. Nestle modest estimation of 1 to 2 percent penetration in each market is thought to be a success. It may take time to get a sustainable market size in the European market but it is easy to make a presence in the Indian subcontinent where tea is a choice of almost all the people.
 
Special T will be introduced first in France to find out the customer feedback; accordingly it will be launched in other potential market like Russia, US and some parts of China.
 
Special T will be similar to Pod coffee machines where the sealed aluminum capsules with tea bags are to be put into the machine which then sense which of the 25 blends of tea to be selected. The machine will sell at 129 pound, each pod will cost 3.5 pound.
 
As a novice in the tea market Nestle is hopeful to gain a good market share in the market, what motivated Nestle to get into this tea venture is the Nespresso customer feedback. Nestlé’s Henk Kwakman said about how people love their tea moment. Like coffee tea is a part of our every day life. Most of the people who are the regular tea or coffee consumers are emotionally attached to their habit of tea or coffee consumption. Every marketer tries to judge the pulse of the market; hence Nestle though new in the tea market Nestle already knew the customer preferences. Time will tell about the success or failure of Special T as we know that Customer is the king.
 
Written by dipti prasad padhi



By : | Category : Business and Economy| Date : November 16,2011

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