Unraveling Disagreements: Design Thinking versus Marketing Strategies

Unraveling Disagreements: Design Thinking versus Marketing Strategies

In the 1970s, Swiss multinational Nestlé struggled to sell coffee in Japan despite offering an affordable and well-liked product. This was due to the country's deep-rooted tea culture, which made coffee an unfamiliar and unappealing beverage for many Japanese consumers.

However, Nestlé took a bold approach by creating a marketing strategy that targeted children with coffee-flavoured candies. The aim was to imprint positive emotions and associations with the taste and concept of coffee early in life, even though children themselves were not the primary coffee consumers. By familiarizing children with the coffee flavour through candy, Nestlé created a generational memory and habit. About 15 years later, those children, now adults, became the adult coffee market, allowing Nestlé to successfully relaunch Nescafé in Japan.

This strategy, while successful in expanding Nestlé's market, raised ethical concerns. Marketing adult stimulants indirectly to children could potentially foster early taste preference formation without informed consent. This raises questions about the manipulation of children’s taste preferences for long-term commercial gain and the indirect promotion of caffeine to minors.

Meanwhile, Apple's success with the iPod and iPhone disrupted industries outside their core domain (computers) and demonstrated the importance of a holistic view of the customer's journey. Apple took control of every aspect of the customer's journey, including discovery, acquisition/purchase, product usage, customer support, and continued engagement. This holistic approach marked the age of design-led businesses and design thinking.

In response, businesses across different industries began hiring designers and acquiring design agencies to incorporate design into their corporate culture. Collaboration between teams, both within the company and with partners, became crucial in delivering great experiences. A common research team for user and market research helps keep designers and marketers on the same page and prevents duplicate efforts.

Design thinking involves a multi-disciplinary team working together to understand and solve problems, focusing on the customer's journey. Design thinkers advocate for a focus on the customer's needs and creating value, rather than simply making products more marketable. Many companies have pledged to switch to new or renewable energy sources and source their raw materials ethically in response to concerns about unsustainable and unethical business practices.

In 2019, a group of CEOs of major companies issued a statement on "the purpose of a corporation" during the Business RoundTable. They stated that companies should no longer advance only the interests of shareholders. They must also invest in their employees; protect the environment; deal fairly and ethically with their suppliers; and support the local communities that they are a part of.

In Japan, Nestlé's strategy continues to be felt today. KitKat, one of Nestlé's most popular brands in Japan, is offered in over 300 different flavours, with Strawberry and Matcha Green Tea being the most popular. In 2009, Nestlé partnered with Japan Post to launch the postable KitKat, allowing people to mail KitKats to wish students well before their examinations.

In conclusion, Nestlé's unconventional marketing strategy in Japan, while controversial, demonstrates the power of a holistic approach to the customer's journey. Apple's success with the iPod and iPhone further emphasized this importance, leading to the rise of design-led businesses and design thinking. Meanwhile, businesses are increasingly focusing on ethical practices and sustainable business models in response to growing concerns about the environment and social responsibility.

References:

1. Nestlé KitKat: The History and Significance of a Global Brand
2. The History of Nestlé in Japan
3. Nestlé's Marketing Strategy in Japan: A Case Study
4. Apple's Holistic Approach to the Customer's Journey
5. Design Thinking vs. Marketing: Differences and Similarities
6. Business Roundtable Redefines the Purpose of a Corporation
7. Companies Pledge to Go Green and Source Ethically
8. Nestlé, in the 1970s, employed a unique approach to sell coffee in Japan by marketing coffee-flavored candies to children, merging the fields of finance, lifestyle, and, interestingly, education-and-self-development.
9. The success of Apple's iPod and iPhone in the late 1990s and 2000s revolutionized the technology industry, promoting a focus on UI design and UX research, emphasizing the importance of a holistic approach to the customer's journey in business.
10. In response, businesses worldwide incorporated design thinking into their corporate culture, recognizing its ability to foster innovation and improve customer experiences, thereby enhancing their brands and competitive positions in various industries.
11. Meanwhile, major corporations, such as those in the finance sector, are increasingly emphasizing sustainability, ethical practices, and responsible business models in alignment with trends in technology, education-and-self-development, and lifestyle.

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