Marketing Strategy of Nestle

BBA lll
Ali Raza
14-Arid-4830
Contents

• Introduction to Nestlé
• Business Portfolio & Growth Strategies
• Marketing Environment
• Market Segmentation & Positioning Strategy
• Marketing Mix of Nestle
• Advertising Strategies
• Conclusion
Introduction

• Food and beverage company

• Headquartered in Switzerland
• Ranked #72 on the Fortune Global 500 in 2014
• Nestlé’s 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 Nestlé’s brands have annual sales of over CHF1
billion (about US$1.1 billion)
• Nestlé has 447 factories, operates in 194 countries, and employs
around 339,000 people.
History

• Henri Nestlé established Nestlé in 1867 in Switzerland

(Vevey HQ)

• His first product was lactogen formula for

infants by the name “Farine Lacteé”
History ( logo evolution )

1938

1875

1966 1988
History

• In September 1866, in Vevey, Henri Nestlé developed milk-based

baby food.
• In August 1867, Anglo-Swiss Condensed Milk Company was
established.
• In 1875 Henri Nestlé retired. but the company, under ownership of
Daniel Peter , retained his name as Société Farine Lactée Henri
Nestlé.
• In 1877, Anglo-Swiss added milk-based baby foods to their
products. In the same year Nestlé Company added condensed milk
to their portfolio.
• In 1904, Both companies participated in the creation and development of
Swiss chocolate and Nestle marketing the first chocolate - milk Nestlé.
• In 1905, the companies merged to become the Nestlé and Anglo-Swiss
Condensed Milk Company and retaining that name until 1947.
• In 1947, Merger with Alimentana S.A. (Maggi) and company named as Nestlé
Alimentana S.A. 1971.
• In 1974, Become stakeholder of L'Oreal .
• 1977 Acquisition Alcon Laboratories Inc.
• 1985 Acquisition of Carnation
• 1988 Acquisition of Rowntree
• 1990 Cereal Partners Worldwide
• 1991 Beverage Partners Worldwide
• 1998 Acquisitions of Spillers Pet foods
• 2002 Acquisition of Ralston Purina
• 2002 Acquisition of and Chef America and merger into Dreyer’s
• 2002 join Cadbury and purchased American company Hershey's
• In December 2005, Nestlé bought the Greek company Delta Ice
Cream for €240 million.
• In January 2006, it took full ownership of Dreyer's Grand Ice
Cream Holdings, Inc
• In November 2006, Nestlé purchased the Medical Nutrition
division of Novartis Pharmaceutical for US$2.5 billion.
• 2007 Acquisitions of Ovaltine
• In April 2007, Nestle bought US baby-food manufacturer Gerber
for $5.5 billion.
• 1 March 2010 , Bought Kraft’s Food (Frozen Pizza) for $3.7
billion
• In February 2013, Nestlé Health Science bought Pamlab.
• In February 2014, Nestlé sold its PowerBar sports nutrition
business to Post Holdings, Inc.
• In December 2014, Nestlé announced that it was opening 10 skin
care research centers worldwide
• 2015, opening of Education and Longevity Development (SHIELD)
centers
Name Nestle S.A

Logo

Industries served Food Processing

Geographic area served Worldwide

Headquarters Switzerland
Current CEO Paul Bulcke
Revenue CHF 92.2 Billion (2012)
Profit CHF 10.6 Billion (2012)
Employees 328000 (2012)
Main Competitor Unilever VN, Hershey Foods, Kraft Foods,
Cadbury Schweppes, Group Danoe
Nestlé in Pakistan

• Nestlé Pakistan Ltd. is registered on Karachi and Lahore stock

exchanges.
• Established its first production unit in 1988 in Sheikhupura named
as Nestlé Milkpak Limited. Now Nestlé Pakistan Ltd.
• Headquarter in Lahore
• Multi Product Factories in Sheikhupura, Kabirwala, Karachi
• Water Factories: 1 in Islamabad , 2 in Karachi
Mission Statement

• "We strive to bring consumers foods that are safe, of high

quality and provide optimal nutrient to meet
physiological need. Nestle helps provide selections for all
individual taste and lifestyle preferences.“

• Motto:
"Good Food, Good Life."
Vision Statement

"Nestlé's aim is to meet the various needs of the

consumer everyday by marketing and selling foods of a
consistently high quality."
Organizational Hierarchy:
NATIONAL
MANAGER

ZONAL
MANAGER

REGIONAL
MANAGER

SALES
AREA SALES
ADMINISTRATION
MANAGERS
EXECUTIVE

TERRITORY
INCHARGES

SALES
DISTRIBUTION
STAFF
Organizational Structure
Portfolio
(Beverages)

• Nescafé
• Nespresso
• Nesquik
• Milo
• Nescau
• Nestlé Pure Life
• Deer Park
• Vittel
• Nestlé Aquarel
Milk products, nutrition and Cream Products

• Nido
• Nespray
• La Lechera
• Carnation
Prepared dishes, cooking aids and pet care

• Maggi
• Stouffer’s
• Buitoni
• Herta
• Thomy
• Crosse & Blackwall
• Winiary
• Friskies
Chocolate, confectionery and biscuits:

• Kit Kat
• Smarties
• Lion
• Crunch
• After Eight
• Polo
• Cailler
• Butterfinger
• Orion
• Caja Roja
• Sao Luiz
• Star
Cosmetics

• L'Oreal
BCG Approach
High
Question Mark Stars
Don’t know what to do with
Opportunities; Doing Well,
Decide whether to increase Great opportunities
Market Growth

investment
Magi 2-minuts noodles Mineral Waters Brands: NPL

Dogs Cash Cow

Weak in Market, Doing well in no growth
Difficult to make Profit market with limited
opportunities.
Power Bar, Lean Cuisine Nesquit

Low High
Market Shares
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 coffee in
Mexico. 66 percent of the market for powdered milk in the Philippines
SWOT Analysis

Strength Weakness
 Product diversity  Criticism

 Acquiring and merger  Incident in India

Opportunity Threats
 Building partnership
 Broad Sale Channel  Changing trend
 Raising Prices of Raw materials
Marketing Environment

• Micro Environment:
a) Suppliers: Suppliers provide the raw material resources, unfinished
goods and labors to the company in order to produce goods and services
b) Marketing Intermediaries: The market intermediaries of the
company help to advertise, sell and distribute its product to the
end customers.
c) Customer: Immediate customers of Nestle are retail and
grocery stores
d) Competitors: Petra Foods Limited, Yeo Heap Sang Limited,
Mail Dairy Industry Co. Ltd
Marketing Environment

• Macro Environment:
a) Political Environment
b) Cultural Environment
c) Economic Environment
d) Technological Environment
Market Segmentation

• Geographic
• Demographic
• Psychographic
• Behavioral
Geographic Segmentation

• Weather:
Nescafe Ice: Summer
Nescafe Classic: Winter
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
Demographic Segmentation

• Occupation:
Nescafe Classic: For those who work hard
• Income:
Nestle segmented their market based on customer's earnings in an
effective way
Psychographic Segmentation

Life style and personality:

• Nestle provides KIT KAT these people who really want to enjoy
chocolate.
• Nescafe 3 in 1 is for exclusively those customer’s who are really
busy and do not have enough time.
Behavioral Segmentation

Benefits:
Cerelac:
For those customers who want more benefits from the products
Cerelac contains vitamin, mineral and all nutritious elements for
babies
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.
Positioning Strategy

• 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
Marketing Mix

P Product
Marketing
P Price

Mix

P Place P Promotion
Advertising

• Nestlé is doing the selective demand advertising that is intended

to stimulate demand for individual brands.
In the advertisement of NPL the message is given that,
There is one water, which gives you, hope, happiness and trust
and that water is Nestlé Pure Life. It is pure, safe, and healthy
water.
• Slogan of NPL : JIYO! Kay yehi hay zindagi.
Advertising

• Sales Promotion:
• Public Relations:
• Publicity:
Conclusion:

The advent of consumer food products has brought a immense

change in the field in the consumers food habit. Nestle has
done well to enhance its customers loyalty operating as a
market challenger in its industry. Nestle is one of the largest
food processing company. Their products and quality mainly
depends on their experience and efficiency. Nestle believe on
quality that leads to good business and good development. It
has segmented the market based on certain clustered
preferences deploying multi-stage segmentation approach to
meet individual needs of the customers. Offering new
products would also close its existing products gaps to a great
extend ensuring satisfaction and loyalty.
• In our report, we try to present the Marketing Strategies through
segmentation, target marketing and positioning of Nestle
Bibliography

• http://www.academia.edu/
• http://www.marketing91.com/
• https://en.wikipedia.org/
• www.slideshare.net/
• http://www.nestle.com/
• http://www.strategicmanagementinsight.com/
• http://bib.kuleuven.be/
• www.gotabout.info/
Thank You