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MARKETING MIX OF NESTLE


NESTLE MARKETING STRATEGY
“Good Food Good Time”


NESTLE


NESTLÉ India is a subsidiary of NESTLÉ of Switzerland. Henri Nestlé want to shape a better and healthier world. He started more than 150 years ago when he was created an infant cereal that saved the life of a child.

 It has a wide range of product line such baby foods, coffee, tea, dairy products, Maggi and many more. With eight factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction.

Nestlé is the world’s largest food and beverage company. It has more than 2000 brands ranging from global icons to local favourites, and it present in 191 countries around the world.

It was founded in the year 1866 by Henry Nestle and Nestle came into existence when it collaborated with Anglo- Swiss Milk Company in the year 1905. Till now company has made many mergers and acquisitions that have expanded its customer base and visibility in the market. Nestle was ranked as No. 11 in the FT Global 500 in 2014 with the market capitalisation of US$ 240 billion. This is why Nestle is considered as one of the strong FMCG companies across the globe. One thing that differentiates it from other FMCG company is that it has a strong product Line.

SHARE HOLDER OF NESTLE

·         Nestlé owns 30% of L'Oréal, the world's largest cosmetics and Beauty Company, and its brands include Garnier, Maybelline, and Lancôme as well as The Body Shop stores.
·         Nestlé owned 100% of Alcon in 1978. In 2002 Nestlé sold 23.2% of its Alcon shares on the New York Stock Exchange. In 2008 Nestlé sold 24.8% of existing Alcon shares to the Swiss pharmaceutical giant Novartis. In 2010 Nestlé sold the remaining 52% of its Alcon shares to Novartis. Novartis paid a total of 39.1 bn USD.

PRODUCT OFFERED BY NESTLE


This is a selected list of the main brands owned by Nestle. Overall, Nestle owns over 2000 brands in over 150 countries. Brands in this list are categorized by their targeted markets.

1.  Milk Product & Nutrition 
2.  Beverages
3.  Dishes & Cooking Aids
4.  Chocolates & Confectionary
5.  Vending & Food Services 
6.  Ice-Cream 
7.  Pet Care 




MARKETING MIX (4P’s) OF NESTLE

The Marketing mix of Nestle discusses the 4P’s of one of the strongest FMCG companies of the world. The Nestle marketing mix shows Nestle has a strong product line which boosts its marketing mix. Below are the Products, Price, Place and Promotions of Nestle.

1. PRODUCT MIX

Nestle is the world’s largest food company. It has around 8,000 brands with wide range of products across the market, which forms the backbone of its marketing mix product strategy. But primarily it focuses on below products

1.  Dairy products: - There are many milk products that have been brought up such as Nestle milk, Nestle slim and Nestle every day.

2. Chocolates: - One of the most dominant segments for Nestle is chocolates. It has popular products such as Kitkat, Munch, Éclairs, Polo and Milky Bar. It has also come up with Alpino chocolate to target the gifting segment.

3. Beverages: - You all know about Nescafe. It is biggest coffee brand in the world. It is owned by Nestle. It has worldwide distribution channel.

4. Ready to Cook foods: - Nestle has come up with many ready to cook foods along with products that help in cooking such Maggi masala. Ready to cook noodle- Maggi one of the biggest hit for Nestle has become a brand in its own with different products like Maggi Pasta, Maggi sauce and many more.

2. PRICE MIX

1. Price of the products is based on the quality of the product. You could find in the market that the competitor products are less expensive as compared to Nestle products belonging to same category.

2. For example, Nescafe and Maggi being the clear leaders are priced with higher margins for the company as compared to competition. This is because the product quality is good enough and a bit of skimming price will not cause the customer to switch brands.

3. We can see products with varied sizes along with variation in cost. You can find Maggi packet of 16 pieces and also single packet Maggie costing  5/-. With this, you can cater large customer base. We can also see they provide bulk discounts in various stores like big bazaar.

4. The strength of pricing for Nestle comes from its packaging or consumption based pricing.

5. In the segment of chocolate, they follow competitive pricing strategy. Prices are almost similar to Cadbury’s products. Thus the pricing strategy in the marketing mix of Nestle is dependent upon the competitor, product quality, geography being served etc.

3.PLACE MIX

1.     Most of the sales and revenues for Nestle come from European countries. It is almost 90 percent of the total sales. 
2.     They follow a FMCG channel of distribution. It also involves breaking the bulk. Bulk products come out of the factory and are sent to C&F.
3.     It is a kind of warehouse where these products are kept. From there, it sent to distributors and then to retailers.
4.     Now, consumers can buy the products through retailers. They do come up with discounts and tactics to keep busy this distribution channels.
5.     Maggi and Nescafe are the two products that are in great demand. With the help of these two products, they can easily move their other products.
6.     The main challenge comes in the distribution of chocolates as there are stronger players in the market.

 Ø  Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Ø  Manufacturing >> Bulk buyers >> Consumer  

4. PROMOTION MIX

1. Nestle has always come up with some unique marketing ideas when they need to brand their products. The overall marketing mix promotional strategy for Nestle focuses on extensive advertising and marketing for its individual brands and products.

2. When Nescafe came up in the market, they brought Nescafe tunes which are still talked about it. They have always tried to push their brands to the consumers. 

3. Let’s take the example of Maggi which they associated with 2 minute snacks which can easily be prepared by the mothers. This made it pretty famous among the kids and mothers

4. The recent campaign was completely focused on your maggi story, where people had to come out with various innovative ways that they had their maggi.

5. Strong presence of Maggi and Nescafe at the ground levels has made them to push in the sales and promotions

6. Kitkat focuses on “Take a break” and has done some good marketing for the same. Kitkats website too is very innovative and shows nothing but asks the visitor to take a break and have a Kitkat.

7. The major push expected of a FMCG company is in sales promotions at the ground level. This is where Nestle really rocks. Nestle focuses on its strength which is Maggi, Nescafe and Kitkat which are the most promoted brands in the market on ground level.

8. Nestle uses all media like TV, hoardings, print, online ads etc for its promotion.

 THIS IS ALL ABOUT NESTLE MARKETING STRATEGY. IF YOU LIKE THEN SUBSCRIBE ME OR COMMENT ON THIS BLOG.


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   khuzemakb63@gmail.com

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