Abstract.3
Company Overview3
Market Segmentation5
The 4 Ps of Marketing..6
Conclusion7
References..8
Abstract
Nestle is one of the major companies in the food processing industry. It was founded in by Henri Nestle in 1866 in Switzerland, and currently has up to 333,000 employees (Nestle, n.d.). Moreover, it appeared in several Forbes lists owing to its high profits, sales, assets, and market value, eventually being labeled as one of the World’s most valuable brands (Nestle, n.d.). Behind such soaring success are clever marketing strategies and plans which foresee the future to keep consumers and employees satisfied, as described in the marketing plan in the next few pages. Some major components of a marketing plan include product overview, target market, competitive analysis, market strategy, SWOT analysis, and metrics (Emerson, 2014). Other analyses such as how a company incorporates the four P’s of marketing into its plan are equally important.
Company Overview
Mission statement
According to the founder of Nestle, Henri Nestle, the company’s mission is to “positively influence” the environment as “responsible corporate citizens”, taking into account the standards of quality of both the environment and life of the people (Mission and Vision, n.d.). Nestle strives to emerge as the top company is nutrition, health, and wellness, and aims to have a diligent workforce, meet the needs of its consumers fully, and deliver its products such that the company makes profits in the long run, at the same time taking care of “social, economic, and environmental” sectors (Mission and Vision, n.d.).
Product description
Nestle produces a wide range of beverages and food including baby foods, cereals, dairy products, frozen food, coffee, ice cream, drinks, and bottled water; some of its famous brands include Maggi, Gerber, Nescafe, Nestle Pure Life, Milo, and Lean Cuisine (Brands, n.d.).
Competitors
Nestlé’s major competitors are Mars, Inc. Company, DANONE Company, and Mondelez International, Inc. (Nestle S.A.Company Inforamtion, n.d.). Mars is a major player in the food, drink, and tobacco industry and was listed among America’s largest private companies by Forbes (“Mars”). Similarly, Danone is also a large food company which provides consumers with healthy, high-quality, natural food (Our Mission, n.d.).
SWOT Analysis
Strengths
Nestle has a massive range of brewery and food products. Its annual earnings are approximately 1 billion dollars, feeding in from a total of 29 brands and over 8000 products (SWOT Analysis of Nestle, n.d.). Nestle also has an active research and development unit which strives to introduce novel products that are healthier, tastier, and cheaper. Furthermore, Nestle’s products are sold in more than 100 countries globally, with an extensive distribution system (About Us, n.d.). All these factors also serve to augment the company’s reputation in the market.
Weaknesses
One of the weaknesses of Nestle is an apparent inconsistency in the quality of its products. There have been many cases of poor distribution and frequent contamination in the past. Unfortunately, Nestle has also been a part of several controversial issues such as child labor, which has impeded its growth and success among consumers in many places (SWOT Analysis of Nestle, n.d.).
Opportunities
One of the opportunities for Nestle lies in the growing demand for healthy, nutritious food products worldwide, allowing the company to introduce new products for the health-conscious consumers. Partnerships with several companies such as Coca-Cola also serve to increase Nestle’s potential for growth and success (Mijuk, 2012).
Threats
Nestle’s failure to promise its customers top quality products in some cases may hurt its chances of increasing revenue in the future. Moreover, Nestle’s coffee and coffee-related products are plenty, and due to the shift toward healthy living, their demand may decrease in the future as people seek alternatives.
Market Segment
The primary and secondary markets of Nestle are formed on the basis of consumer characteristics including geographic, demographic, behavioral, and psychographic factors (Udas, 2014). Specific groups of people residing in specific geographic/demographic areas have specific needs which depend on other considerations such as lifestyle, age, weather, income, and personal tastes and preferences among other things. It primary market includes households in urban areas who would be willing to buy baby food, bottled water, milk and milk products, cereals, and other healthy food products. The concentrated target market may include people of slightly younger ages, whose demand for products such as Nescafe coffee and chocolates would be higher. Products with a lower cost of production are widely sold in rural areas as well, whereas more expensive products such as cereals are sold to people with higher incomes in urban settings (About Us, n.d.). Nestle reaches its specific target markets through extensive distribution channels which sell products even in remote areas. Furthermore, each brand of Nestle typically has a specific market, for example, Nescafe is more popular among teenager and adults, and Maggi among children. Nestle caters to the needs of its target consumers by designing advertisements for the appropriate age groups. Similarly, different channels of communication are used for each market. While social media such as Facebook is more common among children and adolescents, adults are more likely to respond to advertisements on television and in newspapers. Similarly, in remote areas people are likely to respond to ads on the radio rather than the television.
The 4 Ps Branding Strategies
Produce/service
Nestlé’s products include a wide range of beverages and food products and to achieve success, it focuses on several aspects of products such as design, usefulness, value, quality, packaging, and convenience to meet the needs of its consumers (Brands, n.d.). Broadly, there are four broad product lines within Nestle: beverages, milk and milk products, prepared dishes and cooking aides, and chocolates. There are many brands within each line, resulting in the width of products available to consumers (Marketing Mix of Nestle, n.d.).
Price strategy
Nestle sells its products at competitive prices, set by the market competition by businesses selling products similar to those sold by Nestle. This implies that Nestlé’s products have a lot of close substitutes; hence by selling its products for the price at the competition, Nestle has experienced significant growth in sales in spite of the growing inflation and political instability in many parts of the world (Koltrowitz, 2013). The pricing strategy may vary from product to product, with highly demanded products which are also of good quality being sold at higher prices (Marketing Mix of Nestle, n.d.).
Place
Nestle has extensive distribution channels in most big cities worldwide. Briefly, products are sold from distributors to retailers, who sell it to bulk buyers, who further sell it to consumers (Marketing Mix of Nestle, n.d.).
Promotion
Nestle invests a great deal on advertisements for its products, most of which incorporate healthiness, happiness, and other such attributes of life to attract customers. Nestlé’s online presence is very strong as well, with a strong adherence to “responsible marketing principles” which focus on truthfulness, credibility, moderation, and parental authority (Responsible Advertising and Marketing, n.d.). To further promote the sales of its products, Nestle offers free samples, coupons, and special offers on its products. Many large superstores feature Nestle product sampling stalls along with live demonstrations of cooking aides and recipes; this is a very effective form of advertisement which coerces consumers to buy novel products on the spot, thereby increasing sales. The Nestle team also visits schools and other such institutions to introduce products such as Maggi and its new flavors among children, giving then discounted products and free coupons. Furthermore, Nestle’s advertisements incorporate appealing colors within its logo and graphics, attracting the pertinent audience. Nestle’s products’ taglines are also such that they promote a nutritious and healthy way of living, thereby gaining popularity among the health-conscious population.
Conclusion
Overall, Nestle’s marketing plan is holistic and caters to the needs and preferences of its customers, ensuring that high-quality products are sold to them. As the company’s product lines continue to expand in response to the demand of its consumers and development of new products to meet the growing health concerns, the company’s profits are likely to increase. However, Nestle needs to conceive innovative ways of producing cheap products which are available to a wider market to combat threats owing to the fierce competition in the food industry.
References
About Us. (n.d.). Nestle. Retrieved from http://www.nestle.com/aboutus
Brands. (n.d.). Nestle. Retrieved from http://www.nestle.com/brands
Koltrowitz, S. (2013). Nestle pricing strategy helps lift sales in tough markets.
Reuters. Retrieved from http://www.reuters.com/article/2013/10/17/us-nestle-results-idUSBRE99G06V20131017
Mijuk, G. (2012). Nestle, Coke narrow scope of their drinks alliance. Market Watch.
Retrieved from http://www.marketwatch.com/story/nestle-coke-narrow-scope-of-their-drinks-alliance-2012-01-06
Mars. (n.d.). Forbes. Retrieved from http://www.forbes.com/companies/mars/
Mission & Vision. (n.d.). Nestle. Retrieved from
http://www.nestle.pk/aboutus/nestleinpakistan/missionandvision
Nestle. (n.d.). Forbes. Retrieved from http://www.forbes.com/companies/nestle/
Nestlé S.A.Company Information. (n.d.). Hoovers. Retrieved from
http://www.hoovers.com/company-information/cs/company-profile. Nestl%C3%A9_SA.6a719827106be6ff.html
Our Mission. (n.d.). Danone. Retrieved from
http://www.danone.com/en/for-all/mission-strategy/our-mission/
Responsible Advertising and Marketing. (n.d.). Nestle. Retrieved from
http://www.nestle.com/csv/human-rights-compliance/advertising-marketing
SWOT Analysis of Nestle, the popular food brand. (n.d.). Pestle Analysis. Retrieved from
http://pestleanalysis.com/swot-analysis-nestle/
Udas, S. (2014). Nestle Slim Milk: Segmentation, Targeting and Positioning.
Surabhi Udas 91. Retrieved from http://surabhiudas91.wordpress.com/2014/09/26/nestle-slim-milk-segmentation-targeting-and-positioning/
