Discover Nestlé's challenges in introducing coffee consumption to Japan's rapidly growing economy in the 1970s.
brand, management, strategy, identity, positioning, market, competition, customer, loyalty, communication, advertising, promotion, reputation, influence, perception
Products are made in the factory, but brands are created in the mind. Even though we consider ourselves logical and modern human beings the majority of our decisions are made by the ancient instinctive subconscious part of our brains. Sometimes referred to as our Reptilian Brain. Let's have an insight into one such example in the field of marketing. In the 1970s Japan's economy was booming and Nestle was looking for the way to transform that into Dollars. Obviously the option they chose was coffee, but not so fast. It was no secret that Japanese consumers Love T greatly. So Nestle tested the market cautiously before jumping in there and several focus group asking consumers from every age group what they thought of Nestle coffee surprisingly everyone loved it. All focus group came back incredibly positive Japanese consumers really like the taste of coffee Nestle Executives got excited then they shifted into high gear preparing a roll-out plan to have coffee on every shelf in Japan. Huge sums were spent on marketing and distribution and coffee hit the market with a blast. and then it wasn't as expected. Nestle coffee just wasn't selling in Japan. Is there anything more depressing than an empty coffee shop? It made no sense. Every study showed that Nestle coffee would be the next big thing. But Japanese consumers stuck to tea Japanese consumers like the taste of coffee, but simply chose not to buy it faced with this challenging situation Nestle decided to bring in the Superstar of marketing clutter repel Claddagh repeal was not your typical marketer for starters. He was actually a child psychiatrist who had spent years working with autistic children. But because of this experience he was convinced of one thing that people can't tell you what they really want. He believed that the real desires that drove humans were unconscious ones and only very few people were aware enough to understand them clot or cold. This is reptilian instinct. An example of kloters work was with Jeeps latest models, which hadn't been selling and the company couldn't understand why. Kloter came back with the oddest of suggestions go back to using round headlights. Claddagh realize that for American consumers the Jeep meant Freedom it was the symbol of wild west of running free in the equivalent to horse for Americans. The jeep was the modern horse. Wengie, put change their headlight shape from round to square. They had lost that connection because the headlights no longer look like a horse's eyes. Jeep changed it back and the sales went up unbelievably. Now back to Nestle in Japan. When Claude arrived he was quick to understand the Japanese consumers had no connection to coffee no Early Childhood Association Japanese kids grew up watching their parents drink tea live with the smell of tea in the air and a tea flavored snacks. Was it any surprise that as adults they chose tea over coffee? So what did Claudia recommend? Yes, the coffee candies. Suddenly chords of Japanese kids began to discover the taste of coffee through dozens of different candy types from there. They eventually moved on to cold sugary coffee flavored drinks and then two Flats And then before they knew it big steamy mugs of Nescafe coffee. Not bad for a market that wouldn't buy coffee just 40 years ago. The key is no matter what store you tell make the buyer the hero.