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 र 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.
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.
FOLLOW ME ON:-
