Nestlé: Usama Ahmad

NESTLÉ
USAMA
AHMAD
NEST
LE
 MISSION STATEMENT  VISION STATEMENT

"We strive to bring consumers foods "Nestlé's aim is to meet the various
that are safe, of high quality and needs of the consumer everyday by
provide optimal nutrient to meet marketing and selling foods of a
physiological need. Nestle helps provide consistently high quality."
selections for all individual taste and
lifestyle preferences.“
PORTFOLIO
Nestle is present in 191 countries around the world & have more than 2,000
brands, from global icons to local favorites.
SEGMENTS
 MARKET SEGMENTATION  GEOGRAPHIC

SEGMENTATION
• GEOGRAPHIC WEATHER:
• DEMOGRAPHIC NESCAFE ICE: SUMMER
• PSYCHOGRAPHIC NESCAFE CLASSIC: WINTER
• BEHAVIORAL
SEGMENTS
PSYCHOGRAPHIC BEHAVIORAL
SEGMENTATION SEGMENTATION
Life style and personality: Benefits:
•Nestleprovides KIT KAT those people •Cerelac: For those customers who want
who really want to enjoy chocolate. more benefits from the products
•Nescafe 3 in 1 is for exclusively those .Cerelac contains vitamin, mineral and
customer’s who are really busy and do all nutritious elements for babies
not have enough time.
DEMOGRAPHIC SEGMENTATION
 Age:
Lectogen: Lactogen 1 is for babies less than 7 months
Lectogen 3 Is for babies below 12 months
Cerelac: For under 1 year baby
Nido: For children of 2 year
 Occupation:
Nescafe Classic: For those who work hard
TARGET MARKETING
• Undifferentiated: Nescafe 3 in 1, Maggi noodles, Kit Kat
• Differentiated:
Koko-Krunch, Nesquick: Chocolate milk (who want to get taste of chocolate)
Nescafe Ice: Cold coffee for the people in hot weather.
• Concentrated: Nestlé specializes in producing baby foods
POSITIONING STRATEGY
• Product Differentiation: Nestle brings a lot of product for target different
customers. As they provide 25 types of minerals in Nido for children.
• Channel Differentiation: Nestle reach their products to the customers through
their expert market salesman and transportation. So that their products are much
available to their respective customers.
• Image differentiation: Nestlé’s logo is totally different from its competitors that are
greatly accepted by its customers.
• People differentiation: Nestle has a large number of employees that are highly
educated and trained.
• Service differentiation: better service for its respective customers from its
competitors, 24 hours hot line service
PROMOTION STRATEGIES
PROMOTIONAL STRATEGY Advertisement is a tool to introduce the product in
the market. To increase sales and build an image in the mind of consumer
company advertise their product in different ways, as for as Nestle pure life is
concerned company use: Television, Radio, News, Paper Bill Board, Hoarding
etc. Sometime company also makes free sampling, held stalls at different
programs.
IN ADVERTISING, THEY SHOW EMOTIONAL FEELINGS TO
THEIR CUSTOMERS.
SALES STATISTICS
• Nestlé Pakistan Limited recorded better sales – a 3.4% sales growth – in the third
quarter of 2019 as compared to same period last year despite the broader macro-
economic challenges and high inflationary environment.
• The growth in sales was a result of focused demand generation activities,
introduction of new products and continuous investment behind brands. The results
were announced upon the conclusion of the meeting of the Board of Directors on Oct
29, 2019.
• The revenue of the company was recorded at PKR 87 billion for the nine months
ended Sep 30, 2019, a decrease of 4.2% as compared to the same period last year.
• Net profit for the same period decreased by 36.7% to PKR 5.4 billion primarily due to
higher input and energy costs and the imposition of sales tax and federal excise duty
on milk powders and beverages. Nestlé reports revenue of PKR 87 billion.
SUPPLY CHAIN RELATED
DETAILS
• Nestlé Pakistan's supply chain makes sure that Nestlé products are available, no
matter where you are in Pakistan. We integrate processes from the farm to
markets, and ensure products are delivered to you at the right time, the right cost
and in the right quantities. In the first quarter of 2006 alone, we delivered an
astonishing 136 million kg of Nestlé products in Pakistan. Supply chain was
established as a separate department in 2001. Since then, we've achieved a number
of milestones, including a cold-chain in 2002, centralized demand and supply
planning in 2003, and implementation of GLOBE in 2005.
• SUPPLY CHAIN VISION: Our ambition is to achieve high level of customer satisfaction
through low cost, highly efficient operations driven by value creation and
continuous improvement
NESTLE EVOLUTION
Nestle has modified its logo at least six times throughout its more than 150-
year history. It’s tagline is “Good food, Good life”
STORES PROMOTIONAL ACTIVITIES
The sales strategy which Nestle adopted for its products is Availability & Visibility. To
increase sales and gain profit the company has to provide proper supply of product in
the market. All the time company remains busy to make the availability of their
product in the market. In departmental stores and shops their products is so placed
that it is visible for the customers.
MARKETING MIX
The marketing mix consists of every thing the firm can do to influence the demand for
its products. The many possibilities can be collected into four groups of variables known
as the four P's that are as follows:
1. Product
Nestlé kit Kat is in four sizes including K.K Chunky, while Polo is in three sizes.
The shape and the color of the Kit Kat and Polo are quite attractive for the customers.
The labeling, packaging of the Kit Kat and Polo includes the Nestlé brand and logo. The
packaging includes an expiry date and time along with a manufacture date. Second part
of labeling includes the quantity of product in grams along with ingredients and
contents of chocolates and candies.
2. Price
The amount of money charged for a product or service, or sums of the values
that consumers exchange for the benefits of having or using the product or services.
The price of Nestlé Kit Kat and Polo varies increases with the increase in its size.
MARKETING MIX
3. Place
Placing stands for company's activities that make the product available to the
target consumer. Nestlé' distribution is using the direct distribution channel to supply
confectionary products weekly to the retailers.
4. Promotion
Producing a quality product, pricing it attractively and making it available for the
target consumer is not the only problem companies need to solve. In an area-storming
activity, giving out products free, gift hampers, attracts new customers; kites depending
on the season (for existing and potential customers) are given. The basic purpose is to
explore the area that is being unexposed and to bring awareness in the people.
GLOBAL EXPANSION OF NESTLE
Nestle has been called the most multinational of multinational companies.

Nestle has more than 400 plants in 60 countries and employs almost one-
quarter of a million employees. Nestle is the world's leading food processor.
The food giant ranks as one of the 100 largest companies in the world. Nestle
is the world's market leader in instant coffee, mineral water, condensed milk,
frozen foods, infant formula, and confections. The company holds the number
two global market position in pet foods.
DIVERSIFICATION OF NESTLE
• Nestle is eyeing to diversify its offering into new categories such as pet care, cereals,
skin health and premium coffee business. The company is also looking to consolidate
its product portfolio and including new categories in order keep the two-digit
growth.
• “Established over 150 years ago, Nestlé is the world’s largest, most diversified food
and beverages company. We have a unique global footprint and sell our products in
186 countries worldwide. Through enhancing quality of life and contributing to a
healthier future, we aim to deliver sustainable, industry-leading financial
performance and earn trust.”, said CEO of NESTLE.
GROWTH STRATEGY
• Transnational strategy : Low cost, Different products, Different Markets,
High local responsiveness
• Localization strategy : Brand name resonates locally as the cultural habits
difference in different nations
• Customization : Delivering goods that are modified to satisfy a specific
customer need. 85 percent of the market for instant. 66 percent of the
market for powdered milk.
STRATEGIES ON MANAGING
COMPETITION
• Engro foods and Habeeb foods are the main competitors of Nestle in
Pakistan & the main strong competitor is Shezan.
• Engro Foods major product lines: Olpers milk, Olwell, Olper Cream, Tarang
Tea whitener, Tarkka Ghee
• Haleeb Foods Major product lines: Bread, snacks, desserts and meals.
• Shezan Foods major product lines: Food Products, Jams Jellies, Marmalades,
Tomato Ketchup, Sauces , Pickles, Fruit Juices Syrups & Squashes.
STRATEGIES ON MANAGING
COMPETITION
NESTLE focus is on the largest contributor in terms of revenue generation, the
liquid and powdered beverages vertical. Special emphasis will be on
powdered beverage products like Nescafe and Milo, the main offering from
Nestle against its competitors.
BRANDING STRATEGIES
FLEXIBILITY ACROSS COUNTRIES
OF NESTLE.
• Nestle use same symbol worldwide.
• Product formulation vary to suit culture differences.
• Nescafe employs a "think globally ,act locally" strategy nescafe coffee is
marketed as global brand even through advertisement messages and
product formulation very to suit cultural.
• Nestle uses the most suitable language for advertising in different countries.
TAG LINE
Argentina: "Change the day start within"

Germany: “Give yourself a break" ·
United state: "The smart choice"
Pakistan: "good food good life"
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NESTLÉ

 MISSION STATEMENT  VISION STATEMENT

 MARKET SEGMENTATION  GEOGRAPHIC

Nestle has been called the most multinational of multinational companies.

Argentina: "Change the day start within"

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