Nescafe Gold relaunch stirs up coffee stakes

Although Nescafe Gold has been imported and sold in Thailand for several years, it has so far been "very small", said Altug Guven, assistant vice-president and marketing manager for coffee, tea and creamers at Nestle.

"We are only just now launching Gold in the market, and it's not only a repackaging, it's an overall new offering."

The new formula, a result of consumer insight research, is "much richer, fresher and has a stronger coffee taste", Guven said.

Meanwhile, the premium coffee product now comes in a resealable 'doy-pack' - basically a sturdy pouch in a jar-shaped format. "Because it's in a pouch, it's more economical, and as it's metalised, it looks very premium," he said. The smaller pack sizes also make Gold accessible to a wider audience.

With new coffee shops sprouting up in the big cities, Thais are becoming increasingly sophisticated coffee drinkers, and are ready for a premium soluble product, Guven said.

Nescafe Gold is targeted at this group of drinkers, "25-years and up, living in urban areas, and drinking coffee for physical and mental stimulation".

Guven expects the 200 million baht premium segment to chart "double digit growth" this year, over last year's more modest 4.5 per cent. There are three main players in the premium coffee segment: Nescafe Gold and Taster's Choice, both by Nestle; and Moconna, by Sara Lee.

The total instant coffee market in Thailand is worth some 8.5 billion baht, growing at seven to eight per cent a year, and is dominated by Nescafe, with an 86 per cent stake.

Nescafe Gold's relaunch is being supported by a TVC entitled 'Five senses', which shows how every sense is involved in the enjoyment of the brand.

In the spot created by McCann-Erickson, a woman's body draws attention to the 'hourglass' shape of the new packaging, while also making the sensuous connection - sight, sound, smell, taste and touch - with the brand.

The TVC is backed by print, radio and cinema ads, as well as plasma screens at Bangkok train stations. Product sampling will also be a part of the campaign, with plans to hand out some 200,000 free cups.