Nestlé: Global Marketing Strategy
Company Overview
Nestlé is a global company since inception. Founded in 1866 as Anglo-Swiss Condensed Milk Co. ("Key dates, n.d.), Nestlé has grown into world's leading nutrition, health and wellness company. This expansion has not been limited to geographical presence in six continents but has, significantly, included by a rarely matched expansion in product portfolio. In so doing, Nestlé has introduced common household brands and/or renovated her business model over her long (and ongoing journey) as to enhance her market positioning globally and, not least, create unrivaled added-value for customers, partner and government stakeholders and communities at large. Critical events in company's long journey include launching of Nescafé (1938), reincorporating company as Nestlé S.A. (1977), setting up global partnership initiative of Beverage Partners Worldwide (1991), setting up Nutrition Strategic Business Division (1997), launching Nestlé Pure Life (1998), creating Nestlé Health Science and Nestlé Institute of Health Sciences (2011), creating Nestlé Skin Health (2014) and celebrating 150 years in 2016 ("Key dates").
Market Positioning
Nestlé had marketing and distribution channel as core business activities since company's early founder (and visionary) Henri Nestlé recognized Switzerland as a global home of quality milk products ("Our founder Henri Nestlé," n.d.). This marketing and promotion drive has been complemented by innovative R&D activities introducing breakthrough products into global markets since Henri Nestlé's classic introduction of Farine Lactée ("Our founder Henri Nestlé").
Further, by emphasizing quality, nutrition and wellness as core values, Nestlé has continued to innovate by introducing new customized products for specific, expanding global partnerships, diversifying brand portfolio or engaging communities. Central to Nestlé's aggressive marketing and promotion are principles and/or capabilities for market competitiveness including, as part of company's "Operational Pillars": (1) people, culture, values and attitudes, (2) global geographical presence (and hence strong and cost-effective distribution channels), (3) long decades of R&D development capabilities and, not least, (4) diverse product and brand portfolio cutting across different industries ("Strategy," n.d.).
This global presence, community engagement over decades, product innovation across brand portfolio has secured Nestlé a first spot (for eight consecutive years) in consumer food product category ("Nestlé ranked number one," 2013).
Brand Portfolio
Nestlé's brand portfolio is, indeed, broad. Cutting across diverse categories (of baby foods; bottled water; cereals; culinary, chilled and frozen food; chocolate and confectionary; coffee; dairy; drinks; healthcare nutrition; ice cream; pet care; and weight management), Nestlé offers household brands as Maggi (culinary food), KitKat (chocolate brand), Gerber (baby food), Milo (drink), Nestlé Pure Life (bottled water) ("Brands," n.d.).
Global Marketing Strategies
As noted, Nestlé has been an early pioneer in marketing and promoting consumer food products. This leadership has been interpreted into a global Nutrition, Health and Wellness Strategy ("Strategy"). More specifically, by setting up line-of-business and/or brand-oriented programs including, for example, Start Healthy Stay Healthy, United for Healthier Kids, Nestlé Health Science and Nestlé Skin Health ("Strategy"), Nestlé does not only develop her business portfolio into new, more specialized categories but also, more significantly, creating value for multiple stakeholders and engaging consumers more aggressively by catering for more specific needs.
Further, of all six strategic priorities Nestlé has developed three marketing-oriented strategic priorities: Value What Consumers Value, Engage with Stakeholders and Embrace Digital ("Strategy"). By putting consumers front and center stage for all business functions, Nestlé is aligned to a global pattern of engaging consumers on product development as is manifest in company's global initiatives and programs aimed at profit-generating or corporate social responsibility purposes. By engaging stakeholders, Nestlé enhances her market positioning, expand her strategic partnership networks (beyond immediate business ones) and, not least, invests in her brand value. By embracing digital marketing channels, Nestlé further develops her long-standing history of marketing and promotion efforts and innovates in so doing by properly balanced digital content catering for multiple stakeholders as evidenced in Nestlé's social media platforms.
References
Brands. (n.d.) Nestlé. Retrieved from http://www.nestle.com/brands
Key dates. (n.d.) Nestlé. Retrieved from http://www.nestle.com/aboutus/overview/keydates
Nestlé ranked number one in consumer food products by Fortune. (2013, May 1). Nestlé. Retrieved from http://www.nestle.com/media/newsandfeatures/fortune-2013
Our founder Henri Nestlé. (n.d.) Nestlé. Retrieved from http://www.nestle.com/aboutus/history/company-founder-henri-nestle
Strategy. (n.d.) Nestlé. Retrieved from http://www.nestle.com/aboutus/strategy
