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Nestle Marketing

Environment
CHARIF KHALIFI salma

Summary
Introduction

I. Internal Environment : Micro Environment
1. The company
2. Customers
3. Competitors
4. Suppliers
5. Marketing intermediaries
6. Marketing strategy an the companys vision
7. SWOT analysis

Summary
II. External Environment : Macro Environment
1. Political Environment
2. Cultural Environment
3. Economical Environment
4. Technological Environment

Conclusion
Key Success Factors
The 3 basic strategies adopted by the company





Introduction

The company believes if the internal market of the company is fully
satisfied than Nestle will be able to serve customers

This is why Nestle has a rich working culture, to motivates its
employees so they can serve the customers by also offering a
variety of product range

Nestle has strong values and principles as integrity, loyalty and team
work, which make it able to run finance, operation, marketing,
logistics, sales, research and development departments
successfully.

She strongly believe that the productivity, quality and the
dependability will reflect on the product only if the employees will
take care of all these factors.
Micro Environment
The company
Established in 1866 Henri Nestl, Nestl S.A. is a Swiss multinational
food and beverage company headquartered in Switzerland. It is
the largest food company in the world measured by revenues.

Nestl's products include baby food, bottled water, breakfast
cereals, coffee, tea, confectionery, dairy products, ice cream,
frozen food, pet foods, and snacks. For instance : Nespresso,
Nescaf, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and Maggi.

29 of Nestl's brands have annual sales of over 1 billion Swiss
francs (about $1.1 billion)
Nestl has 447 factories, operates in 194 countries, and employs
around 333,000 people. It is one of the main shareholders of
L'Oral, the world's largest cosmetics company.

In 2011, Nestl was listed No. 1 in the Fortune Global 500 as the
world's most profitable corporation.

Marketing Strategy and the Vision of the
company

The basic marketing strategy of the Nestle was to develop
brands for each of their product instead of focusing on
making brand value for the entire company.
Vision :
Be able to maintain the marketing and branding unique
and ahead of the competitors.
Be the leading multinational company in food, nutrition
and wellness.
Produce and sell world-class products of the highest
consistent quality, reliability and convenience
Be an exemplary employer with a progressive human
resource and social policy
Be a responsible corporate citizen, fulfilling all obligations
to Government, shareholders, customers, communities
and consumers.
Protect the environment, preserve natural resources and
save energy.
make profitable long-term growth.
Customers

The immediate customers of Nestle are retail and grocery
stores which provide the products of the company to the
end customers at a reasonable price and a reasonable
profit. The end customers of Nestle are the consumers who
consume its wide range of product. The company has a
bright brand image in its big pool of end customers.

competitors :
PepsiCo, Kraft Foods, Unilever and Mars Incorporated. It
also faces competition in local markets or specific
product ranges from numerous companies, including
Sara Lee, Cadbury and Danone.

Nestle has a clear advantage over her competitors. she
has been able to setup a good and trusted distribution
channel and a huge retail network.
Suppliers:

Suppliers provide the raw material resources, unfinished goods and labors to
the company in order to produce goods and services.

the supplier of Nestle into two parts
Labor suppliers : deal with the quantity of labor required at the optimum
level in order to prevent the loss of labor force and prevent the company
from the shortage of labor which again can lead building of inventory as a
cost for the company. The skills of labor is again maintained by the labor
suppliers, wherein the labors of different skills are managed in such a way
that the operation of the firm can run smoothly.

material suppliers : handle all the material required by the firm in order to
manufacture the finished product for sale. Nestle is in the food and quality
markets and the quality of such item plays an major role in its success in the
market.

Nestle has maintained a high quality efficiency in handling the quality and
quantity of the two different supplies.

Marketing Intermediaries
The market intermediaries of the company help to advertize,
sell and distribute its product to the end customers.
The marketing service department of the firm helps in the
promotion of the product and acts as a communication
channel between the company and customers. It not only
communicates the features of the product to its customers
but also get the feedback with the help of survey, which
helps the research and development department to develop
a product according to the need of the customers.
The other intermediaries of the company like banks help to
provide the funds to the companies and play an important
role in the continuity of the business. Insurance companies
insure the property and the goods of the company against
the risk involved in various operations, buying and selling of
the product.
Nestle has the differential advantage of working in a smooth
coordination with all its marketing intermediaries which helps
in providing the best and pure food products to its valuable
customers in the different parts of the world
SWOT Analysis

Strengths
Nestle has a big pool of loyal customers due to its long history in the
food and nutrition market
Big brand name maintain a high standard in its product consistently for
more than 100 years of its business
Its product are economical, natural and nutritious, hence captures
customers of all the segments
Strong network all over the world enable the company to provide its
product to its customers throughout the year.
Consistently numbered as number one largest bottled water company
in the world
Advance setup facilities which provide the quality in the food products
and the purity in the bottled water in a consistent manner.

Weakness
Even though the company is in existence for more than 100 years, it is
not able to market its product to the extent of its near competitors,
which reflects its weaker communication to its customers.
The company has increased the range of products, however it is
lagging behind in innovation as compared to other competitors.


Opportunities
There has been an increase in the preference of the people
towards dairy products. In many of the countries people are
becoming vegetarian from non-vegetarian. This has opened
up a new market for Nestle.
Nestle has the opportunity to enter into other smaller niche
markets in the food and yogurt market.
Nestle can increase the product line in the yogurt market till
the time it is their main source of income.

Threats
Many companies are diversifying and trying to gain the
advantage of increasing yogurt market which can eat up the
market share of Nestle.
The decrease of cattle in many countries can impact the
profit margin and the revenue for the company.
Intense competition in the yogurt and food market in almost
all the country
New entrants and smaller companies and producing the
similar product that of Nestle which is again eating up the
market shares of the company.
Macro Environment
In case of Nestle and its offered products, these factors do not create much
impact in general scenario. However as we have seen the major events like World
War had created a positive impact on the sale of confectionary products of the
company. The culture has some impact in this company as whether the country
has most people as vegetarian or non vegetarian the consumption of milk products
is always there. However the countries where the people are more dependent on
milk products are profitable market for Nestle.

Political Environment: the government has never imposed any political pressure
in fact they have always supported foreign investment and foreign businesses to
grow. As the company is into food and nutrition business they have to just
adhere to the laws of food and nutrition policies of government and constantly
provide good quality which is the vision and mission of the company thus Nestle
never faces any problems on political front.

Cultural Environment: in each country, Nestle adapt its products following its
culture.

Economical Environment: the disposable income of country and the high living
standard of Suisse always give better bigger business opportunities for Nestle.

Technological Environment technologically, Nestle arm herself in each country
of technological work force the highly skilled and educated manpower.

Conclusion

Key Success Factors
Consumer Insight: To sustain success,the company must have
insight of the customers changing needs. Nestle has been
dynamic and innovative to do this for last couple of decades.
Continuous Improvement Programs: includes innovation in
launching new products, and improvement in quality better
than competitors, improvement in distribution channel which
will help Nestle to be at the top.
Regionalization: of products and raw resources procurement
which means that the company will run like independent
entity in each divided region with its own targets and
resources.
Development of People: Every company's responsibility is the
development of its employees as that brings good will factor
among the employees and which results into higher
productivity.
Social Responsibility: creating good will among the people
where you operate, about the society which helps and allows
you to grow and use its resources and at last the protection
and responsibility regarding environment.

The 3 basic strategies adopted by the company

1) Innovation
By launching new impacting products in all its categories . The product list category wise of
Nestle is as below
Milk Beverages: Prepared Foods: Cereals: Chilled Dairy:
Growing Up Milk Instant coffee powder Noodles Children Cereals Cultured Drinks
Full Cream / Filled Milk Health drink mixes Sauces Adult Cereals Ice Cream
Adult Milk Meal Solutions Family Cereals Confectionery
Hot Cereals Chocolates
Healthcare Nutrition
Performance Nutrition
Water

2) Differentiation
The quality of products on its nutritional value, convenience of availability, world class
standards, the certification like Halal from Islamic bodies have always created differential
advantage for Nestle products over the other competitors and helped to get ahead in
market.
Promotion: Differential advantage have to be communicated with the customers and thus
must be changes in the promotional strategies.
Place: The distribution network change or product availability could also be a differential
advantage thus strategy of placing could also change.

3) Branding
The real differentiation created by the Nestle was in right branding at right time for its products,
this strategy has helped Nestl's brands to acquire independent image and thus not affecting
the other products of same company.










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