Economic Demand and Supply
1.0 INTRODUCTION
Nescafe is one of the beverages product produced by Nestle Company. It is a brand of coffee that suits to everyone who loves coffee so much. It comes in the form of many different products such as Nescafe Original, Nescafe Classic and Nescafe Gold that totally will give different tastes and experiences to its consumers. It is consumed by people staying in urban, semi urban and rural areas.
As the Nestle is a well established company in producing many products not just Nescafe like cereals, chocolates and ice cream, it has its own perception by consumers by each products that they are producing off. Every new product that was published by Nestle will get hot responses from the consumers. Consumers are willing to try on what product that they are publishing and normally positive feedback will be gained.
However, Nestle is not the only company producing the coffee product. Its position was shaken by the almost unlimited choices available on shelves. There are other companies which is also entering their product in this coffee market such as Power Root (M) Sdn. Bhd and Kopitiam Asia Pacific Sdn. Bhd. Numerous of companies entering into this market make them become monopolistic competition. All of these companies need to compete each other in order to survive in this market as they are producing the same product which is coffee but not really identical in their characteristics.
Nonetheless, the company still managed to lead, with its long established brand Nescafe which has a loyal following, especially among older consumers. Such people are less inclined to try new products and are less receptive to change. As such, they were not as easily swayed as younger groups by more sophisticated coffee and additional features, which often confuse older generations.
2.0 FINDINGS AND ANALYSIS
There are many types or level of coffees. It is either regular coffee or gourmet coffee. These differences make it differ in their prices. Of course the gourmet
Nescafe is one of the beverages product produced by Nestle Company. It is a brand of coffee that suits to everyone who loves coffee so much. It comes in the form of many different products such as Nescafe Original, Nescafe Classic and Nescafe Gold that totally will give different tastes and experiences to its consumers. It is consumed by people staying in urban, semi urban and rural areas.
As the Nestle is a well established company in producing many products not just Nescafe like cereals, chocolates and ice cream, it has its own perception by consumers by each products that they are producing off. Every new product that was published by Nestle will get hot responses from the consumers. Consumers are willing to try on what product that they are publishing and normally positive feedback will be gained.
However, Nestle is not the only company producing the coffee product. Its position was shaken by the almost unlimited choices available on shelves. There are other companies which is also entering their product in this coffee market such as Power Root (M) Sdn. Bhd and Kopitiam Asia Pacific Sdn. Bhd. Numerous of companies entering into this market make them become monopolistic competition. All of these companies need to compete each other in order to survive in this market as they are producing the same product which is coffee but not really identical in their characteristics.
Nonetheless, the company still managed to lead, with its long established brand Nescafe which has a loyal following, especially among older consumers. Such people are less inclined to try new products and are less receptive to change. As such, they were not as easily swayed as younger groups by more sophisticated coffee and additional features, which often confuse older generations.
2.0 FINDINGS AND ANALYSIS
There are many types or level of coffees. It is either regular coffee or gourmet coffee. These differences make it differ in their prices. Of course the gourmet