marketing mgt nestle

7/29/2019 Marketing Mgt Nestle

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Marketing Channel

Mabroor

Ahmed


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vMarketing Channel

vMarketing Channel Strategy

vCase study of Nestle

vIntroduction

vHistory

vAdvertisment Strategy

vCSR

vDistribution Channel

vRural Development

.

Overview


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vWhen Do Customers Buy?

vWhere Do Customers Buy?vHow Do Customers Buy?

v

Who Buys?vWho makes the actual purchase?

vWho uses the product?

.

The Most Basic Questions in the

Design of Marketing Channels


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(Place); the fourth P in theMarketing Mix has

been largely neglected

But this is changing....or businessuser.

.

Marketing Channel Strategy?


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Five Reasons

vSearch for Sustainable Competitive Advantage

v

Growing Power of Retailers in Marketing ChannelsvThe Need to Reduce Distribution Costs

vThe Increased Role and Power of Technology

vThe New Stress on Growth

.

Marketing Channel Strategy is

Growing in Importance. Why?


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CASE STUDY


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v It was founded in 1867 by HENRI NESTLE.

v Was listed no.1 in fortune global 500

as the Worlds most profitable corporation.

v Ranked no.13 in FT global 2011 with

market capitalization of $200 million.

v Has449 factories in 86 countries and employs

more than 3,28,000 people.

v

Mainly deals in chocolates, milk products, maggi, soup,

INTRODUCTION


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Uses the samesymbols worldwide.

think globally and

act locally

Product formulation vary to

suit cultural differences.

Nestl:Advertising Strategy


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Reduce prices and introduce

smaller packages for products

to make them affordable has also

implemented many promotional

schemes.

The company has also promoted

there products like giving free

Nestl:Advertising Strategy


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CORPORATESOCIAL

RESPONSIBILITY


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Nestl:advertisement


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Good Food

Good Life

"Nestl is the largest foodcompany in the world. But, more

important to them is to be the

Social Responsibility


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In 2006, Nestl became the firstorganisation to adopt creating share

value approach

Nestl has focused its Creating SharedValue efforts and investments on threeareas nutrition, water and rural

development as these are core to our

.



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As for social responsibility, the company

says its education programs have

reached 9 million people.

And by changing the recipesof its foods, it has eliminated

75,000 tons of trans fat from

its products, along with

15,000 tons of salt and

638,000 tons of sugars.



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SOCIETY:

Nestle has constantly innovating and changing

their products to fulfill their customers need.

Nestle plans to double number of nutrition and

physical activity education around the world

Corporate Social Responsibility(CSR)


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A set of interdependent

organizations involved in the

process of making a product

or service available for use

or consumption by the

consumer or business user.

.

What Is Distribution Channel?


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.

Distribution Channel

Functions

Or

deri

ng

Pay

ments

Communic

ati

on

Tr

an

sf

er

Negoti

ati

on

FinancingRi

sk

Taki

ng

Ph

ysi

cal

Dis

tribut

Inf

or

mati

on


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.

The Nestle Distribution

Channel


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Distribution system of Nestl is one of major source of

competitive edge over its existing rivals. Nestl has its

own distribution networks equipped with all necessary

transportation facilities. They transport their products

at major regional sales offices, which are situated at

different cities. These sales offices (distribution

centres) have their own vans with sales people who sell

and transport goods to the small retailers.

.

Distribution


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.

The Need to Reduce Distribution

Costs


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.

How a Distributor Reduces the

Number of Channel Transactions

=Customer

=Manufacturer

A. Number ofcontactswithout a

distributorM x C = 3 X 3 = 9

1

32

45

6

7

8

9


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RURAL DEVELOPMENT


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Rural Development

INDIA:CleanDrinkingWater

ProjectAnd Water

EducationProgrammeForChildren:


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Rural Development MALAYSIA:

ContractChilliFarmingProject:

Nestl provides the rural farmers withtechnical

Support in the field of Chilli

processing.80% of the chilliesproduced,are purchased by

Nestl which are been

A proud farmerfrom

Kelantan, Malaysia

Whose chillies are


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Rural Development IN INDIA:

NestleAgriculturalServices

has used the experience gained

by nestle in different Parts

Of the world to set up a

system of direct and

Efficient contact with the

farmers in India.


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IN PAKISTAN:

JointVentureFor DriverTraining:

Nestle Pakistan joinedhands with the

National Highway and

the Motorway

Police(NHMP) for

Rural Development


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IN SOUTH AFRICA:

IceCreamOnWheels:

Nestle recognises the

importance of

Enterprise development

to eradicate Poverty.

The ice cream on Wheels

initiative was launched

Rural Development


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. Many

products withwide variety

. Flexibility

Recognized

world wide

. Healthy foodmarket Asian

Market

. Increase in

demand for

bottled water

. Compete in

manymarkets

. Negative

health

effect

Intense

competitionSlowdown in

rural area

. Commodity

price growth.

STRENGTHS WEAKNESS

OPPORTUNI

TIES

THREATS


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Short-term

v Local markets

v Health and Nutrition

Long-term

v Continue to expand globally

v Other markets and one brand

v Quality of products

.

Recommendations


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THANK YOU

Presented by-MABROOR AHMED

AM552730

marketing mgt nestle

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