nestle im sem 4

7/25/2019 nestle im sem 4

1/21

EXECUTIVE SUMMARY

This report is based on International MarketingStrategies of Nestle Company. The Company had

framed strategic marketing plan while entering into global market. In India Nestle has been

enjoying its successfulbusinesssince more than 1 years. It has got multiple brands and is

facing competition in the Indian Market with other domestic products. !lobal mindset has been

used to understand the needs and re"uirements of the consumers for all the Indian families.

#ccording to the gi$en report the International marketing strategyof Nestle has been used in

positioning its products with new $ariants e$ery time for all age group of consumers. The strong

brands such as Nescafe and Maggie ha$e already created its image in the minds of the consumers

and other brands find it difficult to dislodge it from the market. The strategies of standardi%ation

and adaptation ha$e been well linked with the marketing policies of Nestle.

Sum up& according to the analysis of the gi$en report& this report pro$ides some

recommendations for Nestle India.

More than seven manufacturing units have been established and in future more units

can be set up to penetrate the market to have better market share.

More local partners can be identied in Indian market to have better collaboration with

other companies to explore their business.

Though the segmentation process is well done but Nestle can focus to target the rural

consumers of India to increase their sales.

The 7Ps known as marketing mix and more marketing eorts can be used to position

and reposition its products in the Indian market. The culture and lifest!le of Indian

consumers can be studied b! Nestle India on a fre"uent basis to modif! their products.
http://myassignmenthelp.com/marketing_assignment_help.htmlhttp://myassignmenthelp.com/business_development_assignment_help.htmlhttp://myassignmenthelp.com/strategy_assignment_help.htmlhttp://myassignmenthelp.com/business_development_assignment_help.htmlhttp://myassignmenthelp.com/strategy_assignment_help.htmlhttp://myassignmenthelp.com/marketing_assignment_help.html


2/21

INTRODUCTION

Nestle

Introduction to nestle

Nestl S.A.(French pronunciation:[n sle] ; English/ n sle / ,/ n sl/ , / n sli/ ) is

a Swisstransnationalfoodand beerage co!pan" head#uartered in$ee", $aud,Swit%erland& 't is

the largest foodco!pan" in the world !easured b" reenues,[][]and ran*ed +- on the Fortune

.lobal in -0&[1]

2estl34s products includebab" food,bottled water,brea*fast

cereals, coffeeandtea, confectioner",dair" products, ice crea!, fro%en food,pet foods, and snac*s&

5went"6nine of 2estl34s brands hae annual sales of oer 78F0 billion (about 9S0&0 billion),[]including 2espresso, 2escaf3,it at, S!arties,2es#ui*, Stouffer4s,$ittel,and, ?ibb"Gsin 0=0, Howntree


3/21

2estl3 has a pri!ar" listing on the S'I Swiss EDchangeand is a constituent of theSwiss


4/21

offerings& 5he culture of innoation and renoation within the 7o!pan" and access to the 2ES5?J

.roupGs proprietar" technolog"/rands eDpertise and the eDtensie centrali%ed Hesearch and

Meelop!ent facilities gies it a distinct adantage in these efforts& 't helps the 7o!pan" to create alue

that can be sustained oer the long ter! b" offering consu!ers a wide ariet" of high #ualit", safe food

products at affordable prices&

2ES5?J 'ndia !anufactures products of trul" international #ualit" under internationall" fa!ous brand

na!es such as 2ES7KFJ,


5/21

9'I)ION:

Nestl ai is to eet the &arious needs of the !onsuer e&ery day by ar$etin0 and sellin0food of a !onsistently hi0h -uality+

The !onfiden!es that !onsuers ha&e in our brands is a result of our !opany/s any years

of $nowled0e in ar$etin0( resear!h and de&elopent( as well as !ontinuity , !onsuers

relate to this and feel they !an trust our produ!ts+

"i0h -uality and !ollaboration

Our ob;e!ti&es are to deli&er the &ery best -uality in e&erythin0 we do( fro priary

produ!e( !hoi!e of suppliers and transport( to re!ipes and pa!$a0in0 aterials+ Our

operations and !ollaboration in the Nordi! !ountries 0i&es us 0reater opportunities to be

effi!ient and strate0i! and to fun!tion well as an or0ani*ation( both when it !oes to the

distribution !hain and to !on!entratin0 on ;oint produ!t laun!hes and !apai0ns+'ision )tateent of Nestle 3il$pa$e see$ to ensure that our produ!ts are

a&ailable whene&er( where&er and howe&er our !onsuers want the+

O?@2CTI'2)Nestl/s purpose is to offer safe( tasty( !on&enient and nutritious foods to ipro&e healthand well,bein0 of !onsuers of all a0es all o&er the world+ To eet the needs and desires of

today/s and toorrow/s !onsuers( Nestl is stron0ly !oitted to Resear!h andDe&elopent ARBD to ipro&e e4istin0 produ!ts and de&elop new foods with spe!ifi!health benefits+

Introduction

Nestle is one of the leading #M$% compan! of the world. It was founded in &wit'erland and

toda! it is present in more than ()) countries of the world. It has been taking care for

customers globall! b! providing h!gienic food and ensuring good life. The! have been

marketing their products b! satisf!ing the needs of the all consumers age group. The famous

brands include Nescafe* %ourmet* +it kat* Maggi* Nestea* and man! more are there ,Nestle*

-)(-. It had to market its products b! framing marketing strategies and keeping in mind the

taste and preference of consumers based in dierent countries. It was a challenging task for

Nestle to establish its position when ethnocentric products are alread! available in the

domestic countries. The! have adopted the glocal culture for gathering information about new


7/21

countries business environment for going international. It has been focusing on its brands and

entering into market b! increasing line extensions of a particular brand. The leadership position

of Nestle is maintained in market b! suppl!ing the products and also opening its outlets

inpublicplaces for the brand reinforcement. Nestle has been focusing and spending for

/esearch and developmental activities. The success behind Nestle is to operate in dierent

countries b! the form of #oreign 0irect Investment.

2.Mode of Entry

In this paragraph we will focus on how Nestle had entered into Indian market on (1(-. Toda! it

has successfull! completed ()) !ears in India. Its head o2ce is located at %urgaon and

manufacturing units in several states of India. The mode of entr! used b! Nestle was in form of

export to Indian market in previous !ears. 3ater on it entered b! modif!ing the strateg! in form

of wholl! owned subsidiar! on (141 ,Times Internet 3td* -)(-. 5holl! owned subsidiar! is a

mode where the ())6 shares are owned b! the parent compan!. There is control of parent

compan! to decide about all the strategic strategies. It has been eno!ing the diversication

strateg! and dealing with multiple brands. #irst plant was set up at Punab Moga to produce

milk. It has been operating into four Infant #ood* Milk products* chocolates and read! to eat

items. The reason behind nestle entering strateg! in Indian market were increasing disposable

income of the consumers* and the nuclear famil! s!stem.

3.Local Partner

Nestl89s 3ocal partners are its emplo!ees* farmers and shareholders. The compan! had tie up

the government of Punab to explore milk econom! in India. It has been collaborative /esearch

and development centers to provide "ualit! products in the market. It has also started rst

/esearch and 0evelopmental center in India on -)() be a partner of %lobal /esearch and

development Network ,Nestle* -)().

4. Segmentation, Targeting & Positioning (STP)

It is dened as the rst step in the marketing plan for an! of the $ompan!. &egmentation is a

process of classif!ing the consumers on the basis demographic* ps!chographic* geographic and

:ehaviourial aspects. If we segment as per geographic condition cold coee is consumed in

India during summers and hot in winters. ;n the basis of 0emographic aspects it is classied

on the basis of age* income* occupation and etc. Nestle has been providing the products for all

the age groups such as bab! food to an adult food. It has been producing 3ectogen* $erelac for

babies and targeting them. Maggie and other food are being targeted for the adult group. ;n

the basis of occupation nestle has been segmenting the working women and targeting them to

save their time b! using the Maggie masala ,Managementstud!guide.com* -)(-. If

ps!chographic factor is considered it can be segmented on the basis of lifest!le and the
http://myassignmenthelp.com/public_relations_assignment_help.htmlhttp://myassignmenthelp.com/public_relations_assignment_help.html


8/21

personalit!. 5e can see that during tension and anxiet! companies and public places.

d).Promotion

Promotion is done b! Nestle India b! endorsing the product with the celebrities. It has been

showing the advertisement in the television. The social marketing concept is being used to

market and promote their products in networking sites such as #ace book and etc. The

advertisements are designed in such as wa! that consumers nd it as a health! product to eat.


9/21

e).Peo%le

Nestle India has been recruiting lakhs of people to oin their compan!. The! have been training

their emplo!ees to handle the "ueries of their customers and also provide better customer

service. ?arious campaigns are organi'ed b! their emplo!ees for the purpose of the sales

promotion in dierent states of India.

f).Process

The compan! has been manufacturing the products b! processing it using better technolog!.

The wa! Nestle has been using its vending machine to serve the customers easil! shows that

the! have understood the re"uirements of the consumers in India.

g).Pysical E'idence

Nestle has been creating a better evidence connectivit! b! setting up the coee corners with

their logo of Nescafe in vending machines ,0reamstime* -)(-.

5. Managing te Mareting Eort

Nestle India has been managing the marketing eort b! considering the ethnocentric factor

with a global mindset. The! have understood the eating habits* taste and preference of the

Indian consumers. @n ethical image has been set up the compan! in the e!es of Indian that the

products oered b! Nestle are h!gienic and "ualit! based. The! started to explore their

business b! targeting the underdeveloped countries where the infants had missed the

nutritional gaps in their food. @fter %lobali'ation International Marketing has been pla!ing the

ke! role to explore their business from one countr! to other countries. Nestle India has been

educating the farmers to produce more milk for the marketing of their products ,Marketing

Power Inc -)(-. It has been managing the marketing eort b! showing the proper

advertisement and connecting it emotionall! with the consumers. It has been leader in

marketing of coee. It has been highl! supporting its parent compan! which is located in

&wit'erland. It was previousl! focusing in urban areas but now it has been focusing on rural

areas. 3ine extensions of the products are managed b! the teams of emplo!ees who are having

a proper distribution network in India. The products are being repositioned b! the compan!

after adding new Aavor and variants to attract them.

BRANDS

Today Nestl is present in different ar$ets with the followin0 ain brands


10/21

Coffee

Nes!afe( Nespresso( Taster/s Choi!e( Ri!or( Ri!offy( ?on$a( o0as( #ouidis

Water

oland )prin0( Nestl ure #ife( .rrowhead( 'ittel( Deer ar$( #e&issia( errier(

)+elle0rino( O*ar$a( Contre4( I!e 3ountain( ephyrhills( Nestl .-uarel( "par( .!-ua

anna(

Other beverages

Nestea( Nes-ui$( Nes!au( 3ilo( Carnation( #ibby/s( Caro( Nestoalt( Nestl

Dairy , )helf stable

Nestl( Nido( Nespray( Ninho( Carnation( 3il$aid( #a #e!hera( 3oEa( Fli( %loria( )&elty(

3oli!o( Nestl Oe0a lus( ?ear ?rand( Coffee,3ate

Dairy , Chilled

Nestl( )&eltesse( #a #aitiGre( #a #e!hera( )$i( Ho!o( )&elty( 3oli!o( #C1( Chi-uitin

I!e !rea

Nestl( .nti!a %elateria del Corso( Dreyer=s2dy=s( Drusti!$24trJe( 3a4ibonTande(

3e0a( 3K&enpi!$( )in arar)e ararNon )top( Delta

Infant nutrition

Nestl( Nan( #a!to0en( ?eba( Nesto0en( Cerela!( Nestu( Nesla!( %ui0o*( %ood )tart

erforan!e nutrition

ower?ar( ria( 3usashi

"ealthCare nutrition

Nutren( Clinutren( eptaen( 3odulen


11/21

?ouillons( soups( seasonin0s( pasta( sau!es

3a00i( ?uitoni( Thoy( >iniary(Tor!hin( Ose( Totole( "ao;i

Lro*en foods Aprepared dishes( pi**as( sall eals)touffer/s( #ean Cuisine( "ot o!$ets( ?uitoni( 3a00i( >a0ner( #a Co!inera

Refri0erated produ!ts A!old eat produ!ts( dou0h( pasta( pi**as( sau!es( sna!$s

Nestl( ?uitoni( "erta( Toll "ouse( )abra

Cho!olate( !onfe!tionery and bis!uits

Nestl( Crun!h( Cailler( %ala$3il$ybar( Fit Fat( )arties( ?utterfin0er( .ero( olo

Nestl rofessional

Chef( Da&i0el( 3inor/s

et!are

urina( Lris$ies( Lan!y Least( .lpo( %ouret( 3on etit( Leli4( Do0 Chow( Cat Chow( ro

lan( urina ON2( ?eneful( Tidy Cats

NESTLE PROUCT MIX


12/21

estle Ltd


13/21

S*+T nalysis

Strengts

(. More than (B) !ears in the industr!-.5orld biggest brand* top brand in #ortune 4)) list

C. %lobal reach with presence in over D= countries

B. @n emplo!ee strength of around C-D*))) people worldwide

4. 5ide product range including bab! food* pet food* dair! products*

confectioneries* pharmaceuticals* beverages* etc.

=. Popular brands owned like Maggi* EaagenF0a's* :oost* +it +at*

Nescafe* etc.

7.3argest />0 network facilitating continuous innovation

D.&trong suppl! chain network

1. $.&./. activities for rural development* environment protection* water

conservation** etc.

().Mergers and ac"uisitions and oint ventures to increase market

share

((. &trong marketing and advertising power

(-.&trong brand lo!alt! and brand recall

*eanesses

(.:eing a big global brand* Numerous controversies in dierent

countries of operation can cause issues

-.&trong competition b! other brands

+%%ort#nities (.Introduce more health based food products to tap the health

consciousness amongst consumers

-.Gxpand with focus on developing economies

C.$ontinue with ac"uisitions and oint ventures to increase its market

share


14/21

B.Tr! to capture the rural markets

Treats

(.#ailure of the complex suppl! chain-.Gconomic instabilit! and inAation in most countries

C.GH/; 'one crisis* as most of its revenue comes from Gurope

B.Increase in cost of raw materials

4.&ti competition in all product segment

3.RF2TIN%

Nestle holds stron0 reputation for hi0h -uality brands+ In a;or ar$ets( trade ar$eters

are fre-uently rated hi0hly in !ustoer sur&eys on professionalis and ser&i!e+ They don=t

belie&e in =one brand fits all=( but with a stron0( di&ersified 0lobal portfolio 5 well fo!used

and defined 5 offers a brand for all $ey !onsuer and ar$et se!tors+

They ai to satisfy !onsuers= deands( better and ore profitably than their !opetitors+

ST'#T(!I(S #)*+T() ,- N(ST(

!usiness "rinci"le#

Nestl/ is committed to the following ,usiness +rinciples in all countries& taking into account

local legislation& cultural and religious practices0

Nestl/s business objecti$e is to manufacture and market the Companys products in such a way

as to create $alue that can be sustained o$er the long term for shareholders& employees&

consumers& and business partners.

Nestl/ does not fa$or short2term profit at the e3pense of successful long2term business

de$elopment.

Nestl/ recogni%es that its consumers ha$e a sincere and legitimate interest in the beha$ior& beliefs


15/21

and actions of the Company behind brands in which they place their trust& and that without its

consumers the Company would not e3ist.

Nestl/ belie$es that& as a general rule& legislation is the most effecti$e safeguard of responsible

conduct& although in certain areas& additional guidance to staff in the form of $oluntary business

principles is beneficial in order to ensure that the highest standards are met throughout the

organi%ation.

Nestl/ is conscious of the fact that the success of a corporation is a reflection of the

professionalism& conduct and the responsible attitude of its management and employees.

Therefore recruitment of the right people and ongoing training and de$elopment are crucial.

Nestl/ continues to maintain its commitment to follow and respect all applicable local laws in

each of its markets.

Consu$er "erce"tions %nd t&e future needs of society#

#s a global food manufacturer and marketer& Nestl/ takes into consideration local needs& cultural

differences and consumer preferences as well as attitudes concerning the use of ingredients

deri$ed from genetically modified crops. Nestl/ will continue to use ingredients deri$ed from

genetically modified crops where$er appropriate.

'lo(%l co$$it$ent#

Nestl/ firmly supports the principles of the 4nited Nations !lobal Compact and is committed to

reflecting these in its business principles and practices. Search for trust0

Nestl/ is the worlds leading food and be$erage company& with sales of about C56 78 billion. It

has 89& employees world2wide and operates :8 factories in ;8 countries. Its products are

a$ailable uni$ersally& including such remote markets as North s de$elopment and

its management strongly belie$es that is one of the key elements of company success. # basic

reason company has grown to be the worlds largest food company is that consumers ha$e


16/21

learned to trust its brands. The Nestl/>s challenge was the establishment of a clear hierarchy of

$ery few corporate strategic global brands that now co$er almost all products& as well as the

parallel usage of regional and local product brands and product denominations.

#dditionally company introduced the Nestl/ Seal of !uarantee and emphasi%ed corporate logo.

This Seal of !uarantee is a $isible sign of company>s corporate responsibility for the safety and

"uality of e$ery product& which leads to maintain consumer confidence and trust in this

corporation. In order to be able to gi$e this "uality and safety assurance& company de$eloped a

Nestl/ ?uality Management System& which collects the e3perience of our 'esearch @

)e$elopment& on which we spend C56 ; million a year. 6or a company such as Nestl/&

economic success depends on winning the publics appro$al e$ery day in e$ery country where

our products are sold.

They ha$e always belie$ed strongly that tobacco should ne$er be marketed to youth. It should

only be marketed to adult smokers& in an appropriate way that takes account of the risks posed to

health. They also belie$e adults who ha$e chosen to smoke should be able to recei$e information

about what they buy& and should be able to communicate responsibly with them about their

brands.

Nestle co$"%ny)s Success is (uilt on *u%lity#

?uality is the cornerstone of company>s success. ($ery day& millions of people all o$er the world

show their confidence in company by choosing Nestl/ products. This confidence is based on our

"uality image and a reputation for high standards that has been built up o$er many years.

($ery product on the shelf& e$ery ser$ice and e$ery customer contact helps to shape this image.

# Nestl/ brand name on a product is a promise to the customer that it is safe to consume& that it

complies with all regulations and that it meets high standards of "uality. Customers e3pect

company to keep this promise e$ery time.

4nder no circumstances company compromise on the safety of a product and e$ery effort must

be made to a$oid ha%ards to health. +eople& e"uipment and instruments are made a$ailable to

ensure safety and conformity of Nestl/ products at all times.


17/21

T&e custo$er co$es first#

Company does want to win and keep customers& distributors& supermarkets& hotels& shopkeepers

and the final consumers. They ha$e $ery different re"uirements. Trade customers e3pect

e3cellent ser$ice& correct information and timely deli$ery. Consumers consider taste& appearance

and price when they make their choice. Company>s task is to understand what customers want

and respond to their e3pectations rapidly and effecti$ely.

Company ser$es $arious groups of consumers and there is demand for products at different

le$els of percei$ed "uality and price. #ll customers e3pect good "uality at a reasonable price.

Customers are central to company>s business and company always respects their needs and

preferences.

+u%lity is % co$"etiti,e %d,%nt%-e#

Company li$es in a competiti$e world and must ne$er forget that their customers ha$e a choice.

If they are not satisfied with a Nestl/ product& they will switch to another brand. Company>s goal

is to pro$ide superior $alue in e$ery product category and market sector in which it competes.

The pursuit of highest "uality at any price is no guarantee for success& nor is a single2minded

cost2cutting approach. asting competiti$e ad$antage is gained from a balanced search for

optimal $alue to customers& by simultaneous impro$ement of "uality and reduction cost.

?uality units at different le$els of the organi%ation pro$ide specific support& promote "uality

awareness& assume guardianship and audit the system. ?uality departments monitor operations

against agreed standards and must inter$ene in case of non2conformity.

Training and teamwork are crucial to the successful implementation of high "uality standards.

Continuous training ensures that e$eryone understands his tasks and has the necessary skills to

carry them out. Teamwork allows us to achie$e results that are greater than the sum of indi$idual

efforts.

Ae moti$ate employees by demonstrating management commitment to ?uality& by setting

challenging goals and by gi$ing them responsibility and recognition. It is through employee

in$ol$ement that goals and targets can be achie$ed in the shortest time.


18/21

?uality must be a way of life for e$eryone in the company.

+rogress is followed by listening to our customers and by measuring our performance.

Nestl./s Position on 'ene Tec&nolo-y0

6rom its inception more than 19 years ago& Nestl/ has built its business on successfully

applying scientific breakthroughs and technological inno$ations while taking full responsibility

for the "uality and the safety of its products. Throughout these years Nestl/ has been

manufacturing and marketing products tailored to meet the di$erse needs and preferences of

consumers all o$er the world. Nestl/ has always stri$ed to respect these differences and to take

them into account in its acti$ities. Nestl/ supports a responsible application of gene technology

for food production based on sound scientific research.

Consu$er infor$%tion %nd l%(elin-#

Consumer>s confidence in the food they are buying is supported by ha$ing access to information.

Nestl/s Consumer Ser$ices are well e"uipped to pro$ide this access and thus are the first source

of information& including the use of ingredients& deri$ed from genetically modified crops& in

Nestl/ products. Many go$ernments now ha$e implemented or are considering regulations for

the use and labeling of these ingredients. In the absence of a global agreement on the labeling of

ingredients& deri$ed from genetically modified crops& and recogni%ing go$ernments

responsibility for the regulatory process& Nestl/ strictly adheres to national laws and regulations

regarding their labeling.


19/21

Nestle:Main

Competitors

Hershey

Founded in: 1894

hersheys.com

Hershey
https://rivalfox.com/hershey-competitorshttps://rivalfox.com/hersheys.comhttps://rivalfox.com/hershey-competitorshttps://rivalfox.com/hersheys.com


20/21

Cadbury

Founded in: 1824

https://www.cadbury.co.uk

London

Unilever

Founded in: 1929

www.unilever.com

Rotterdam

-.oncl#sion

Nestle is a renowned MN$ which has got its presence in more than ()) countries. @ proper

marketing plan has been used b! Nestle to enter into Indian market. The management of the

compan! had to understand and conduct the market anal!sis b! considering political*

economical* and demographic aspects. The mode of operation was started b! wholl! ownedownership basis. The market was segmented on the basis of demographic* ps!chographic*

behaviouraial and geographic aspects. It was targeted on the basis of the age and the income

group. @fter globali'ation the consumers had better standard of living and higher income for

purchasing. Nestle had identied this factor and it has launched various products in the Indian

market. Points of dierence are being created with the taste factor in the market. The products
https://rivalfox.com/cadbury-competitorshttps://www.cadbury.co.uk/https://rivalfox.com/unilever-competitorshttps://rivalfox.com/www.unilever.comhttps://rivalfox.com/cadbury-competitorshttps://www.cadbury.co.uk/https://rivalfox.com/unilever-competitorshttps://rivalfox.com/www.unilever.com


21/21

had been positioned in the minds of Indian consumers b! advertisement* sales promotion* and

using the social marketing concepts ,Eearst $ommunications Inc* -)(-. The marketing mix

such as product* price* place* promotion* people* process and ph!sical evidence have been

integrated well with the Nestle marketing strateg! to market its products. Thus Nestle products

have been part of Indian dail! lives b! ensuring the consumers and their famil! with good

health. It has alwa!s understood the re"uirement and needs of the consumers globall!. It has

also been following the ethical marketing strategies to grow the business at national and the

international level.

nestle im sem 4

Documents