Nestle Im Sem 4
Nestle Im Sem 4
Nestle Im Sem 4
This report is based on International Marketing Strategies of Nestle Company. The Company had
framed strategic marketing plan while entering into global market. In India Nestle has been
enjoying its successful business since more than 100 years. It has got multiple brands and is
facing competition in the Indian Market with other domestic products. Global mindset has been
used to understand the needs and requirements of the consumers for all the Indian families.
According to the given report the International marketing strategy of Nestle has been used in
positioning its products with new variants every time for all age group of consumers. The strong
brands such as Nescafe and Maggie have already created its image in the minds of the consumers
and other brands find it difficult to dislodge it from the market. The strategies of standardization
and adaptation have been well linked with the marketing policies of Nestle.
Sum up, according to the analysis of the given report, this report provides some
recommendations for Nestle India.
More than seven manufacturing units have been established and in future more units
can be set up to penetrate the market to have better market share.
More local partners can be identified in Indian market to have better collaboration with
other companies to explore their business.
Though the segmentation process is well done but Nestle can focus to target the rural
consumers of India to increase their sales.
The 7Ps known as marketing mix and more marketing efforts can be used to position
and reposition its products in the Indian market. The culture and lifestyle of Indian
consumers can be studied by Nestle India on a frequent basis to modify their products.
INTRODUCTION
Nestle
Introduction to nestle
Nestl S.A. (French pronunciation: [nsle]; English /nsle/, /nsl/, /nsli/) is
a Swiss transnational food and beverage company headquartered in Vevey, Vaud, Switzerland. It is
the largest food company in the world measured by revenues,[4][5] and ranked #72 on the Fortune
Global 500 in 2014.[6]
Nestls products include baby food, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.
Twenty-nine of Nestls brands have annual sales of over CHF1 billion (about US$1.1 billion),
[7]
including Nespresso, Nescaf, Kit Kat, Smarties, Nesquik, Stouffers,Vittel, and Maggi. Nestl has
447 factories, operates in 194 countries, and employs around 339,000 people. [1] It is one of the main
shareholders of LOreal, the worlds largest cosmetics company.[8]
Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1866
by brothers George Page and Charles Page, and Farine Lacte Henri Nestl, founded in 1866
by Henri Nestl (born Heinrich Nestle). The company grew significantly during the First World War
and again following the Second World War, expanding its offerings beyond its early condensed
milk and infant formula products. The company has made a number of corporate acquisitions,
including Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh in
1988, and Gerber in 2007.
Nestl has a primary listing on the SIX Swiss Exchange and is a constituent of the Swiss Market
Index. It has a secondary listing on Euronext. In 2011, Nestl was listed No. 1 in the Fortune Global
500 as the worlds most profitable corporation.[9] With a market capitalisation of US$239.6 billion,
Nestl ranked No. 11 in the FT Global 500 2014.[10]
History of nestle
NESTL's relationship with India dates back to 1912, when it began trading as The NESTL Anglo-Swiss
Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.
After India's independence in 1947, the economic policies of the Indian Government emphasised the
need for local production. NESTL responded to India's aspirations by forming a company in India and
set up its first factory in 1961 at Moga, Punjab, where the Government wanted NESTL to develop the
milk economy. Progress in Moga required the introduction of NESTL's Agricultural Services to educate,
advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through
improved dairy farming methods, to irrigation, scientific crop management practices and helping with the
procurement of bank loans.
NESTL set up milk collection centres that would not only ensure prompt collection and pay fair prices,
but also instil amongst the community, a confidence in the dairy business. Progress involved the creation
of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga
into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well.
NESTL has been a partner in India's growth for over nine decades now and has built a very special
relationship of trust and commitment with the people of India. The Company's activities in India have
facilitated direct and indirect employment and provides livelihood to about one million people including
farmers, suppliers of packaging materials, services and other goods.
The Company continuously focuses its efforts to better understand the changing lifestyles of India and
anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product
offerings. The culture of innovation and renovation within the Company and access to the NESTL
Group's proprietary technology/Brands expertise and the extensive centralized Research and
Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value
that can be sustained over the long term by offering consumers a wide variety of high quality, safe food
products at affordable prices.
NESTL India manufactures products of truly international quality under internationally famous brand
names such as NESCAF, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in
recent years the Company has also introduced products of daily consumption and use such as NESTL
Milk, NESTL SLIM Milk, NESTL Dahi and NESTL Jeera Raita.
NESTL India is a responsible organisation and facilitates initiatives that help to improve the quality of life
in the communities where it operates.
Nestl was founded in 1867 by pharmacist Henri Nestl on the shores of Lake Geneva in
Vevey, Switzerland. One hundred and thirty-four years later, our headquarters are still in
Vevey, surrounded by the Swiss Alps in one of the worlds best-preserved environmental
settings. As they have grown from humble beginnings into the worlds largest food
company, they have attempted to take the fundamental cultural values of environmental
preservation and cleanliness into every country where they operate. Company has 468
Nestl factories currently in operation.
-Companys facilities reflect the environmental values basic to Nestle Company.
-Top management follow the Companys environmental performance
-Companys Environmental Officer reports directly to General Management to ensure there
is on-going awareness regarding environmental affairs.
Nestl Environmental Advisory Group meets regularly to review current environmental
issues and to anticipate potential concerns. This allows them to maximize control over their
activities and contribute to sustainable development in the countries where they operate.
The Nestl Environment Progress Report 2000 describes the results of continuous
improvement in its environmental practices and being a leader in environmental
performance
VISION
Nestl aim is to meet the various needs of the consumer every day by marketing and selling
food of a consistently high quality.
The confidences that consumers have in our brands is a result of our companys many years
of knowledge in marketing, research and development, as well as continuity - consumers
relate to this and feel they can trust our products.
High quality and collaboration
Our objectives are to deliver the very best quality in everything we do, from primary
produce, choice of suppliers and transport, to recipes and packaging materials. Our
operations and collaboration in the Nordic countries gives us greater opportunities to be
efficient and strategic and to function well as an organization, both when it comes to the
distribution chain and to concentrating on joint product launches and campaigns.
Vision Statement of Nestle Milkpak:
The strategic priorities of Nestle Milkpak are focused on delivering shareholder value
through the achievement of sustainable, capital efficient and profitable long term growth.
Improvements in profitability will be achieved while respecting quality and safety standards
at all times. In line with this objective, Nestle Milkpak envisions to grow in the shortest
possible time into the number one food company in Pakistan with the unique ability to meet
the needs of consumers of every age group - from infancy to old age, for nutrition and
pleasure, through development of a large variety of food categories of the highest quality.
Nestle Milkpak envisions the company to develop an extremely motivated and
professionally trained work force, which would drive growth through innovation and
renovation. It aspires, as a respected corporate citizen, to continue playing a significant role
in the social and environmental sectors of the country.
CORPORATE MISSION
Nestls brands and products are the focus of continual innovation and renovation so that
they meet and exceed our consumers' expectations. We seek to ensure that our products are
available whenever, wherever and however our consumers want them.
OBJECTIVES
Nestls purpose is to offer safe, tasty, convenient and nutritious foods to improve health
and well-being of consumers of all ages all over the world. To meet the needs and desires of
todays and tomorrows consumers, Nestl is strongly committed to Research and
Development (R&D) to improve existing products and develop new foods with specific
health benefits.
Introduction
Nestle is one of the leading FMCG company of the world. It was founded in Switzerland and
today it is present in more than 100 countries of the world. It has been taking care for
customers globally by providing hygienic food and ensuring good life. They have been
marketing their products by satisfying the needs of the all consumers age group. The famous
brands include Nescafe, Gourmet, Kit kat, Maggi, Nestea, and many more are there (Nestle,
2012). It had to market its products by framing marketing strategies and keeping in mind the
taste and preference of consumers based in different countries. It was a challenging task for
Nestle to establish its position when ethnocentric products are already available in the
domestic countries. They have adopted the glocal culture for gathering information about new
countries business environment for going international. It has been focusing on its brands and
entering into market by increasing line extensions of a particular brand. The leadership position
of Nestle is maintained in market by supplying the products and also opening its outlets
inpublic places for the brand reinforcement. Nestle has been focusing and spending for
Research and developmental activities. The success behind Nestle is to operate in different
countries by the form of Foreign Direct Investment.
2.Mode of Entry
In this paragraph we will focus on how Nestle had entered into Indian market on 1912. Today it
has successfully completed 100 years in India. Its head office is located at Gurgaon and
manufacturing units in several states of India. The mode of entry used by Nestle was in form of
export to Indian market in previous years. Later on it entered by modifying the strategy in form
of wholly owned subsidiary on 1959 (Times Internet Ltd,
mode where the 100% shares are owned by the parent company. There is control of parent
company to decide about all the strategic strategies. It has been enjoying the diversification
strategy and dealing with multiple brands. First plant was set up at Punjab Moga to produce
milk. It has been operating into four Infant Food, Milk products, chocolates and ready to eat
items. The reason behind nestle entering strategy in Indian market were increasing disposable
income of the consumers, and the nuclear family system.
3.Local Partner
Nestls Local partners are its employees, farmers and shareholders. The company had tie up
the government of Punjab to explore milk economy in India. It has been collaborative Research
and development centers to provide quality products in the market. It has also started first
Research and Developmental center in India on 2010 be a partner of Global Research and
development Network (Nestle,
2010).
2012). If
psychographic factor is considered it can be segmented on the basis of lifestyle and the
personality. We can see that during tension and anxiety Youths consume more chocolates.
Positioning is a process of creating impression of the products in the minds of consumers. The
products are being positioned by nestle such as good to eat, fast to cook, Maggie in two
minutes and etc. It has been positioned by the providing different falvours and packaging it in
different ways. It has been positioning by differentiating it in form of channel, product,
personnel and image based factors. We can also explain it with particular product such Maggie
of Nestle company to have a better understanding of STP Concept. Maggie market has been
segmented by understanding the eating habits of Indian consumers residing in urban areas. It
has been targeting the youths, kids, and the working women. It has been positioning the
products in the minds of Indian consumers by relieving them from hunger (Lars Perner,
2010).
e).People
Nestle India has been recruiting lakhs of people to join their company. They have been training
their employees to handle the queries of their customers and also provide better customer
service. Various campaigns are organized by their employees for the purpose of the sales
promotion in different states of India.
f).Process
The company has been manufacturing the products by processing it using better technology.
The way Nestle has been using its vending machine to serve the customers easily shows that
they have understood the requirements of the consumers in India.
g).Physical Evidence
Nestle has been creating a better evidence connectivity by setting up the coffee corners with
their logo of Nescafe in vending machines (Dreamstime,
2012).
2012). It has been managing the marketing effort by showing the proper
advertisement and connecting it emotionally with the consumers. It has been leader in
marketing of coffee. It has been highly supporting its parent company which is located in
Switzerland. It was previously focusing in urban areas but now it has been focusing on rural
areas. Line extensions of the products are managed by the teams of employees who are having
a proper distribution network in India. The products are being repositioned by the company
after adding new flavor and variants to attract them.
BRANDS
Today Nestl is present in different markets with the following main brands:
Coffee
Nescafe, Nespresso, Tasters Choice, Ricor, Ricoffy, Bonka, Zogas, Loumidis
Water
Poland Spring, Nestl Pure Life, Arrowhead, Vittel, Deer Park, Levissima, Perrier,
S.Pellegrino, Ozarka, Contrex, Ice Mountain, Zephyrhills, Nestl Aquarel, Hpar, Acqua
Panna,
Other beverages
Nestea, Nesquik, Nescau, Milo, Carnation, Libbys, Caro, Nestomalt, Nestl
Dairy - Chilled
Nestl, Sveltesse, La Laitire, La Lechera, Ski, Yoco, Svelty, Molico, LC1, Chiquitin
Ice cream
Nestl, Antica Gelateria del Corso, Dreyer's/Edy's, Drumstick/Extrme, Maxibon/Tandem,
Mega, Mvenpick, Sin Parar/Sem Parar/Non Stop, Delta
Infant nutrition
Nestl, Nan, Lactogen, Beba, Nestogen, Cerelac, Nestum, Neslac, Guigoz, Good Start
Performance nutrition
PowerBar, Pria, Musashi
HealthCare nutrition
Nutren, Clinutren, Peptamen, Modulen
Refrigerated products (cold meat products, dough, pasta, pizzas, sauces, snacks)
Nestl, Buitoni, Herta, Toll House, Sabra
Petcare
Purina, Friskies, Fancy Feast, Alpo, Gourmet, Mon Petit, Felix, Dog Chow, Cat Chow, Pro
Plan, Purina ONE, Beneful, Tidy Cats
Nestle Ltd
SWOT Analysis
Weaknesses
Opportunities
MARKETING
Nestle holds strong reputation for high quality brands. In major markets, trade marketers
are frequently rated highly in customer surveys on professionalism and service. They don't
believe in 'one brand fits all', but with a strong, diversified global portfolio well focused
and defined offers a brand for all key consumer and market sectors.
They aim to satisfy consumers' demands, better and more profitably than their competitors.
and actions of the Company behind brands in which they place their trust, and that without its
consumers the Company would not exist.
Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible
conduct, although in certain areas, additional guidance to staff in the form of voluntary business
principles is beneficial in order to ensure that the highest standards are met throughout the
organization.
Nestl is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and employees.
Therefore recruitment of the right people and ongoing training and development are crucial.
Nestl continues to maintain its commitment to follow and respect all applicable local laws in
each of its markets.
learned to trust its brands. The Nestls challenge was the establishment of a clear hierarchy of
very few corporate strategic global brands that now cover almost all products, as well as the
parallel usage of regional and local product brands and product denominations.
Additionally company introduced the Nestl Seal of Guarantee and emphasized corporate logo.
This Seal of Guarantee is a visible sign of companys corporate responsibility for the safety and
quality of every product, which leads to maintain consumer confidence and trust in this
corporation. In order to be able to give this quality and safety assurance, company developed a
Nestl Quality Management System, which collects the experience of our Research &
Development, on which we spend CHF 800 million a year. For a company such as Nestl,
economic success depends on winning the public's approval every day in every country where
our products are sold.
They have always believed strongly that tobacco should never be marketed to youth. It should
only be marketed to adult smokers, in an appropriate way that takes account of the risks posed to
health. They also believe adults who have chosen to smoke should be able to receive information
about what they buy, and should be able to communicate responsibly with them about their
brands.
Nestle: Main
Competitors
Hershey
hersheys.com
Hershey
Cadbury
https://www.cadbury.co.uk
London
Unilever
www.unilever.com
Rotterdam
6.Conclusion
Nestle is a renowned MNC which has got its presence in more than 100 countries. A proper
marketing plan has been used by Nestle to enter into Indian market. The management of the
company had to understand and conduct the market analysis by considering political,
economical, and demographic aspects. The mode of operation was started by wholly owned
ownership basis. The market was segmented on the basis of demographic, psychographic,
behaviouraial and geographic aspects. It was targeted on the basis of the age and the income
group. After globalization the consumers had better standard of living and higher income for
purchasing. Nestle had identified this factor and it has launched various products in the Indian
market. Points of difference are being created with the taste factor in the market. The products
had been positioned in the minds of Indian consumers by advertisement, sales promotion, and
using the social marketing concepts (Hearst Communications Inc, 2012). The marketing mix
such as product, price, place, promotion, people, process and physical evidence have been
integrated well with the Nestle marketing strategy to market its products. Thus Nestle products
have been part of Indian daily lives by ensuring the consumers and their family with good
health. It has always understood the requirement and needs of the consumers globally. It has
also been following the ethical marketing strategies to grow the business at national and the
international level.