Вы находитесь на странице: 1из 3

Marketing strategy include 4 Ps strategy i.e. Product, Price, Place and Promotion strategies.

Product is something that is offered to the market. NPL product strategy studies show that they are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and healthy water. Nestl also does product line expansion; recently it has offered a 0.25 liter bottle of NPL in the market. Its also using the company name with its product name i.e. Nestl Pure Life. NPL round shape and elegance of the bottle are instantly recognizable. Quality is cornerstone of NPL success. Nestle people say: Quality is our more successful product and it is key to our success today and tomorrow. In Price strategy, Nestle has adopted the strategy of non-price competition. It is offering one price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors. Placement is the distribution of the product to its customers at right time, in right quantity, at right price and at right place. To ensure this, channel adopted by the Nestl for distribution of NPL is as follows: Producer Wholesaler Retailer Consumer NPL comes under the category of FMCG, so for this the timely supply is very important thats why Nestl is following intensive distribution strategy. Promotion is the very important and crucial element of marketing strategy as through it the company establishes its image in the minds of the customers. NPL is promoted by using different ways of promotion. Advertisement of NPL is done through TV, radio, billboards, newspapers and magazines. Current advertising slogans are that NPL is trust, hope and happiness and JIYO! Kay yahi hay Zindagi. Nestl also conducts the tradeshows, concerts, events, sponsorships, and discounts for sales promotion. For establishing public relations, Nestl distributes its newsletters, annual reports, calendars and diaries, lobbying, donation for charitable and civic events. For the victims of 8th October 2005 earthquake, Nestl has donated 90 trucks, which were containing different foods items, and NPL was one of them which is around Rs. 2 Billion. The Nestle organized its teams to distribute products to the effected areas and all employees contributed from top to bottm (MD himself was involved personally to distribute products physically)

NESTLE BCG Matrix Stars

The stars are the high relative market share and high market growth. Nestle beverages i.e. are somewhat the stars in their business, because with the high quality and new designs which comes every now and then makes them more popular among the customers, because customer with upper class wants the quality and nestle offers the best quality food items.

Cash Cows
The cash cows are their baby food items i.e. nestle cerelace and other baby food products. Company has to take measures to make these products as stars.

The pharmaceutical products are nestle Dog, because it has low-share business with low growth market especially when we talk about Pakistani market. The company has to think on what it can do by improving the low share and growth market.

Question Marks
The question marks are the breakfast cereals. They have high market growth but low market share. The company has to decide about which question mark they should try to build into the stars and which one of these should be phased out.

Marketing strategy of nestle 1) Another strategy that has been successful for Nestl involves striking strategic partnerships with other large companies. In the early 1990s, Nestl entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Colas worldwide bottling system and expertise in prepared beverages. 2) In Asia, Nestls strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans. Nestls strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently, Nestl acquired Indofood, Indonesias largest noodle producer. Their focus will be primarily on expanding sales in the Indonesian market, and in time will look to export Indonesian food products to other countries. 3)

Nestle Proposed Strategy: 1)Win All Without Fighting or to prioritize markets and determine competitor focus. Nestl would need to figure out what areas of the food and beverage industry they are already operating strongly in and pinpoint some key products.For instance they could introduce it into yogurts through their Dairy SBU, cereals in their Cereal SBU, into chocolate bars in their Confectionary SBU, power bars through their Nutrition SBU, baby formulas through their Baby Food SBU, pet foods through their Pet care SBU, into ice cream through their Ice Cram SBU and into their drinks through their Beverages SBU. Nestl should choose one product in each of these SBUs to introduce to the market. 2) The second principal is to Avoid Strength/ Attack Weakness or to develop attacks against competitors weakness. A beneficial strength of Nestls attacks is that the probiotic

market in North America is very small. In 1999 probiotics total sales in North America were $67.2 million. 3) The third principal is Deception and Foreknowledge or war gaming and planning for surprise. For this I feel Nestl should use the implication wheel as a form of war gaming. Because no other major food brand, including General Mills, has probiotic products, the weakness that Nestl would be attacking would the lack of products that their competitors have to offer in the probiotic market. Nestls first attack should be to educate consumers to benefits of using probiotic products. This educational campaign should be backed with scientific support and with examples of success from the European market. It should be done through advertisements on television, at prime time and during popular sports events preferably, through the newspaper coupled with money saving coupons, and on the internet through links with health food websites. Nestl should highlight the fact that while such things as obesity and fast food are slowly decreasing the healthy and eating habits of North Americans. 4) Nestl could use Sun Tzus fourth principal, Shape Your Competition or integrate best attacks to unbalance the competition, to throw competitors off. Because Nestl is going to introduce LC1 products in several different areas of the food and beverage industry, they could only advertise products in one or two markets. Then as competitors design their defense in those particular markets, Nestl would unleash their overall product launch across all the predetermined areas of the food and beverage industry. This should catch competitors off guard, leaving them unprepared to defend against the scope of Nestls attack. Nestl may choose not to focus a large amount of resources into the introduction of products into markets in which they tricked their competitors into defend in. Nestl should then focus their resource in to markets where they had not previously hinted they wished to enter into. These markets should be markets where Nestl already has strong performing products like their ice cream or chocolate bar products. 5) This introduction of products should be done with Sun Tzus fifth principal in mind which is Speed and Preparation or ready your attacks and release them. All actions should be done quickly and following a schedule. Nestls initial hints of wanting to enter into the probiotic market should be made know to the industry about one year before actual product launch. Nestl, through word of mouth and small advertisement campaigns could hint at the markets and products it was going to launch with their LC1 probiotic benefits. This would be time would competitors would take notice and begin mounting defensive strategies. About six months before product launch, Nestl should increase the size and scope of their advertisements, including a specific date as to the launch of LC1 enriched products. Here is when Nestl could start employing the help of Professional athletes or movie stars. Nestl should emphasizes, in their advertisements, the universal benefits that their LC1 products will bring to all people, along with the fact that these products taste the same as similar products in the same category. About one month to two weeks before product launch, Nestl should release advertisement revealing the full scope of the products in which they are planning to launch. Between two weeks and product launch Nestl should hold a party of sorts where they would invite consumers, retailers, distributors, and manufactures from the food and beverage industry

company overview & history