Japan Marketing Grand Prize: "Nescafé Ambassador" – The President and CEO of Nestlé Japan Speaks on the Significance of Its Success

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Nestlé Japan's "Nescafé Ambassadors Pioneering the Office Market" project won the 6th Japan Marketing Grand Prize (sponsored by the Japan Marketing Association).

Based on the concept of enhancing office environments through coffee, the company developed a system where it lends its original coffee machine, the "Nescafé Gold Blend Barista," free of charge. Users themselves collect and manage the coffee costs. This initiative launched nationwide in September 2012. Operators at each office were named "Nescafé Ambassadors." This initiative successfully captured office drinking occasions to develop new markets while strengthening customer loyalty through building bonds with the Ambassadors. Currently, the number of Ambassador applicants has exceeded 120,000, and cumulative sales of the Barista machine surpass 2 million units.

The initiative was recognized for pioneering a new business model by developing a fresh sales channel in a mature market. This was achieved through innovative promotional strategies—using "customers" (the Ambassadors) as intermediaries to expand the customer base—and service offerings incorporating various mechanisms to cultivate customer loyalty. It also contributed to enhancing the value of the flagship brand, "Nescafé Gold Blend."

Kozo Takaoka, President and CEO

At the award ceremony held on May 26, Kozo Takaoka, President and CEO of Nestlé Japan, spoke about the significance of the project's success:

"Nestlé operates in over 190 countries and regions worldwide, with most sales growth coming from emerging markets. Conversely, developed countries with large markets face greater challenges. The key task is building a 'developed market model' that achieves profitable growth amid declining populations and aging societies.

Three years ago, Nestlé Japan declared its commitment to building this model ahead of other countries and began developing a completely new business model, not simply an extension of existing practices. Japan is a major coffee consumer, with annual consumption of about 50 billion cups. While about 60% of this is consumed at home, a market we have focused on, we identified the remaining 40% of out-of-home demand – largely unexpected – and specifically the office consumption segment, which accounts for about 70% of this. We launched a project to make Nescafé affordable and convenient to enjoy at work.

The company aims for a minimum operating profit margin of 20%. This is completely unattainable under a conventional business model. The origin of this idea led to the creation of an entirely new system: the Ambassador Program. For this system to function, it is essential to create consumer value within the office. Beyond simply offering affordable and delicious coffee, the crucial value we identified was restoring communication within the office, which was gradually being lost. The emergence of new conversations in the office serves as a major motivation for Ambassadors. We believe the significance of the Ambassador Project's success lies in providing a solution that addresses a real office problem.

We aim to refine this business model further, worthy of the Japan Marketing Grand Prize name, and grow it into a large-scale business model originating in Japan—one that no one can replicate and that can eventually expand globally."