Strategic marketing plays an important role in an organization. The different strategies and techniques of marketing are significant in the marketing plan of an organization. The corporate strategy must be in line with the marketing strategy of an organization. Different models explain the positioning and growth of an organization. The food industry is constantly evolving in terms of customer expectations, competition, and society and trade expectations. Companies in the food industry must respond by delivering the best food in a relevant, accessible and sustainable manner. Nestle is credited with its constant provision of leadership in the food industry. It is a company that strives to hold itself to the highest standards and always provide the best services in the industry. This paper analyzes the marketing strategy of Nestle S.A. It involves the analysis of the current market situation and the strategic analysis of the company at large. Different strategies can be utilized by Nestle S.A to improve its market reach, enhance its commitment to product safety, quality and value. Nestle Water will act as the main focus of this analysis.
Nestle company is the leading provider of food-related services having passed credibility tests regarding health, and nutrition. The company has lived to its theme of “Good Food, Good Life.” It has a mission to provide the most preferred food in terms of taste and nutrition value. The company deals in both beverages and hard foods across the world. The company operates in over 130 countries with 67 brands of bottled water in 36 countries ().
The company was started in 1905 after merging with the Anglo-Swiss Condensed Milk Company. Before the merger, the Anglo-Swiss Condensed Milk Company had started its operations in 1866 with its headquarters in Cham, Switzerland. Henri Nestle was the brains behind the first infant cereal (Farine Lactee) manufacturing company. After the merger to form Nestle, the companies’ headquarters were moved to the Swiss town of Vevey in Switzerland. The target market was majorly infants most of who did not like breast milk. Therefore, Nestle provided an alternative source of milk that would cater to the nutritive requirements of children and relieving those mothers that could not breastfeed (). The company relied on cow’s milk, wheat flour and sugar to provide a suitable mix for children.
The company has grown to a global scale with over 328,000 employees. The total sales in 2019 were CHF 68.4 billion recording an increase of 2.9% from 2018. The company’s growth was supported by the high momentum in the U.S. and Purina PetCare. It recorded a high time organic growth of 3.7% with real-time growth of 3.0% and a pricing of 0.7% (“Nestlé reports nine-month sales for 2019,” n.d.). The company is publicly listed and has branches across the world. Among the top-performing subsidiaries include Nestle UK and Ireland. Its global presence gives it a competitive advantage. It has good relationships with its suppliers who are mainly farmers. It continues to invest in research and development, manufacturing and local management teams to enhance quality.
Nestle has a subsidiary company that sells and distributes water (Nestlé Waters, 2019). The company is located in North America and started its operation in 1976 as an importing company. The company used to import the Perrier Sparkling Natural Mineral Water from France (“Home,” n.d.). Its main target or market niche was the Americans who needed a healthy lifestyle with food and water. The water was natural and free of calories, additives, and caffeine. Therefore, most customers that exercised regularly preferred Nestle Waters. The company became a major industry player after adding domestic waters to its distribution line in the 1980s. The company is the largest dealer in bottled water in the United States.
The Nestle Pure Life Product
Nestle also deals with purified bottled water with a unique balance of minerals to provide the best taste. The company opened the first mineral water company in 1992 called Valvert. Today, the company has grown to other countries across the world. The company produces 70 different brands selling in over 130 countries. The name changed from Valvert to Nestle Pure Life back in 1998 (Nestle, 2019). The brand is present in Europe, Aisa, America and the Middle East. The Pure Life brand is known for its refreshing taste, healthy taste and mix of minerals such as magnesium, and calcium that makes it pleasant. The brand is good for home consumption.
Models of Strategic Marketing (PESTLE, and SWOT Analysis)
Nestle PESTLE Analysis
Nestle faces the same challenges as those of other giant food and beverage operators such as Coca-Cola and PepsiCo. As earlier mentioned, the main challenges in the industry include constantly changing eating habits and lifestyle. Most consumers in the developed countries are focusing on healthy foods and beverages with less sugar and a good mineral balance. In the United States, most people prefer bottled mineral water to soda due to the increased concern on health. America has recorded the highest rates in obesity in the world, a worrying trend (Purdy, 2016, p. 78). The trend for health concerns continues to raise presenting challenges and opportunities for the industry. Industry players such as Nestle have responded through innovation and introducing new products. A PESTLE analysis of Nestle S.A. shows how the external market environment continues to impact the food and beverage industry. The analysis gives an understanding of how the company manages its threats and weaknesses while maximizing the opportunities to remain competitive.
The Political Environment
Since Nestle operates in more than 190 countries, the regulatory environment greatly impacts on its operations. Changes in government policies affect the production of a company. Nestle’s operations in Britain must have been affected by the countries to decide to leave the European Union (Brexit). Such changes affect the production process and the workers’ livelihood. Nestle’s greatest markets are Europe and it contributes immensely towards its production and profit. Since Brexit has disrupted the European Market especially in the food supply chain, Nestle is reconsidering relocating its production from Britain to Poland (Belger, 2019). There is an expected loss of jobs of over 300 jobs and an unspecified number of employees (Monaghan, 2017). Furthermore, Brexit has made it hard to recruit skilled labor from the European Union. According to the Lloyds Bank Business survey, the past six months have witnessed a 52% of the UK firms experience difficulties in recruitment of skilled labor. There was a decrease of up to 17% in the supply of labor in the United Kingdom. The market expects disruptions in the food supply chain leading to food insecurity and growing prices. Brexit has badly affected the farming, food processing, and retail sector. Nestle Blue Riband chocolate is on the verge of being cut off despite being in operation for more than 80 years in Britain (“Jobs to go as Nestlé moves output abroad,” 2017). Such decisions are being made to make sure the company remains competitive.
Every country has different legislation and standards on foods. Nestle must abide and adapt to these changes to avoid being cut off or losing on its products. The cost of ingredients is on a constant increase. Nestle is forced to reduce the number of products offered to reduce the costs. Chocolate is heavily affected even though people continue to buy the product.
Nestle is among the largest companies in the global nations with different exchange rates. In case of a change in foreign exchange, an impact will be felt for instance the 2016 swing that leads to a -1.6% change in group revenues while comparative revenue increased by 0.8% (“Full-year 2016). Following up with the Brexit, member countries of the EU are experiencing slow economic growth and an increase in inflation. The decrease in the value of the pound will further lower the living standards of people since it affects real income among wage earners. However, Nestle is capitalizing on the rise in foods and drinks that leverage the desire for comfort to reduce the pressure of life in the UK. Brands such as Nescafe, Aero, kit Kat, and smarties have reported increased sales since then (Clements, 2016). In 2018, the company reported a 40% increase in profit. The profit was attributed to the US and the Chinese market. The previous year 2017 had a decrease in profits attributed to the decrease in consumer demand in the US and Brazil.
Social Environment factors
The social environment includes the purchasing behavior, attitudes, changing demographics of the market. The food and beverage company is often affected by the leaning towards healthy foods with less sugar and calories. Therefore, Nestle is focusing on reducing the amount of sugar, salt, and fat in most of its products. According to Hashem et al., (2017, p. 97), over 62% of consumers in the UK prefer less sugar and non-alcoholic drinks. Similarly, there has been a decreasing trend in the consumption of soda and bottled water being preferred. The company reformulates existing products and introduces new ones.
Bottled water is taking over the beverage industry as people move from common brands such as soda. Questions were raised over the use of spring water leaving little or polluted water examples in Canada and Flint. Nestle and other beverage brands such as coca-cola are responding to the changes in consumer tastes and preferences by reducing the amount of salt, fat and sugar content in most of its products. Nestle has cut sugar content in products such as Shreddies, Cheerios by 10% within the UK for healthier products. Popular chocolate brands such as Aero, Yorkie, and Kit Kat have also reduced the sugar content by the same 10%. However, countries such as the UK have set their minimal sugar level to be below 20% by 2020. Nestle is currently investing in the research and development team to reduce the sugar content in chocolate by 40% (“Annual report,” 2019). The company has reformulated its chocolate bars and launched them to adapt to changing social demands.
The technological environment is characterized by digital revolutions that present both opportunities and threats. Many people refer to the digital revolution as the Fourth Industrial Revolution because of its transformation. Those companies that adopt such changes are safe while those that do not are left behind. Food and beverage companies such as Nestle face many challenges. Digital disruption and new technologies example the use of the internet to track food and beverage quality is a major concern. Besides, the use of digital marketing is currently taking shape as brand owners communicate and market their products differently. There is the use of big data to create a competitive advantage for most firms (Kemp, 2013, p. 287). The main challenge is to respond with new capabilities that capitalize on the opportunities. Nestle must invest more in research and development to utilize the technology example social media, digital surveys, discounts, and email marketing. Blockchain technology is being adopted by most companies to have full access to product information from its manufacture to distribution hence reducing production time. Since technology is a costly venture, its introduction should be slow but sure.
The Legal Environment
The legal environment comprises of the regulations, laws, and litigations coming from the external environment. Such factors affect every firm’s operations in different ways. As earlier explained, the UK and other companies are turning to legislation and standardization to promote healthy foods and beverages. The UK introduced a Tax cap on sugar products that were affected in 2018 (Wise, 2016, p. 82). The sugar tax targets beverage industries such as Nestle and Coca-Cola to reduce the sugar content in drinks.
Every sector of the economy is now required to comply with the transition to low carbon and efficient resource management. Food and beverage industries continue to struggle with the issue of waste management due to the use of plastic and aluminum as a main form of packaging. The major global beverage companies use up to 7% of plastic. Coca-Cola is reported to produce more than 100 billion plastic bottles every year that is mostly dumped in world natural resources with less being recycled (Laville and Taylor, 2017). Nestle is committed to tackling the issue of climate change by committing to zero deforestation and sustained efforts in ensuring a clean environment through its clean supply chain.
Nestle Market Segmentation
To identify specific customer buyer behavior, a good marketing strategy should identify market segments. The expectations, needs and buying behaviors of customers are heterogeneous. Customer segmentation can be based on gender, age, income, lifestyle and values of the customer. Nestle can use segmentation to narrow down to specifically defined groups to obtain customer-specific information used to create target groups with shared characteristics. Nestle can use surveys to gain information that helps understand the buying behavior of its customers. The market can be divided into small homogenous groups by the exploration of the demographic, geographic, psychographic and behavioral characteristics of these groups. From these characteristics, Nestle can choose the best group to develop an operative marketing strategy.
Markets are divided based on geography for example cities, regions and countries. Demographic segmentation defines markets based on characteristics such as gender, age, income or sex. Nestle can also use behavioral segmentation based on customers’ characteristics in terms of the benefits sought, usage, frequency of usage and brand loyalty. Lastly, psychographic information segments markets based on customer’s lifestyle, attitudes, interests, traits, and values. Specific targeting involves a combination of different segmentation strategies.
Targeting and Positioning
The market is first segmented into smaller groups with homogenous characteristics then matches the characteristics with the company resources. Companies first evaluate the commercial attractiveness and growth potential of the market segments before investing. Indicators of commercial attractiveness and growth include the appropriate size, accessibility, estimated profits and existing concrete differences in the market segment.
Market positioning comes after the segmentation and targeting of the right market. To develop a clear positioning strategy, Nestle must answer important questions such as what the brand stands for, the needs of the target market, how the brand will serve the needs and how to gain competitive advantage through differentiation. The company can compare its communication strategy with that of the competitors to identify weaknesses in their target positioning communication. Nestle can also identify the strengths and weaknesses of business by comparing it with its competitors, analyzing the positioning of its competitors and using the data to make appropriate adjustments in the brand positioning. The company should use the analytical data collected from different market surveys to continuously test the effectiveness of its strategy.
The food and beverage industry is highly competitive. Nestle mist set a clear differentiation strategy to remain competitive. The marketing strategy should, therefore, focus on the identification of unique selling propositions such as the lowest quality, unique ideas, and highest quality ideas. This should be reinforced with effective marketing strategies for the unique selling propositions. Porter’s Five Forces model comes in handy to enhance the marketing strategy of Nestle.
The main competitors of Nestle Pure Life are PepsiCo’s Aquafina Water and the Dasani bottled water produced by The Coca-Cola Company. The two companies compete with Nestle using innovative strategies. PepsiCo’s Aquafina purifies its water using charcoal filtration and reverses osmosis. The company has also diversified its brand by including six more brands including fruit-flavored flat water and fruit-flavored carbonated water (Hanson, 2012). The company operates in different countries across the world having different brand names. It continues to penetrate both Nestle and Coca-Colas market.
Similarly, Coca-Cola’s Dasani uses innovation to process its water using reverse osmosis and adding special blend minerals such as calcium and magnesium to add to the crisp flavor. Despite the many brands, the company limits itself to four main flavors. The company operates in many countries across the world carrying different brand names such as the famous Kinley water.
On the other hand, Nestle Waters bottles its products using polyethylene terephthalate, a product that is recyclable with no traces of BPA or bisphenol A, an organic compound that is used to make plastics. The company uses generally light packaging bottles with a 30% reduction in weight compared to its competitors. Also, Nestle Waters operates in many countries across the world with different brands. The brands include flavored water, flat water and carbonated water attached to the Nestle Pure Life Brand. The company has managed to differentiate its products based quality hence building trust and long relationships with its customers.
The company faces a lack of awareness especially on bottled water in most developing countries where water is a basic source of life that is readily available. Such countries need to be educated on the importance of bottled water. Also, the company has not extensively been involved in the branding and promotion of Pure Life Mineral water in developed countries. It gives competitors such as Dasani to penetrate the market despite Nestlé’s dominance or market presence.
Developed nations are being health conscious about the products they consume. This presents an opportunity to promote pure water brands in developed and developing nations. Some countries do not have pure drinking water and this presents an opportunity to introduce such a product. Furthermore, Nestle Pure Life is free to launch new flavors based on the market segmentations discussed in the previous section.
The main threat to Nestle Pure Water is the competition from developed brands such as Coca-Cola and PepsiCo. The companies have a global market presence and continue to tap into new markets across the world. The food and beverage industry has many players majorly Cadbury, star bucks among others.
Nestle Competitive Advantage Marketing Strategy
Nestle can remain competitive by tapping into a cost-based competitive advantage. The company must try to develop capabilities that reduce the cost below that of the industry average to achieve the economies of scale. In addition to the development of collaborative functional areas, the company should develop effective distribution channels that have access to up to date technology that enhances the production process. Lean production makes the supply chain easier. The company should adopt a strong bargaining position to negotiate with suppliers that contributes to cost reduction.
Differentiation based on competitive advantage focuses on the development of brand loyalty by offering top-notch products and services. Nestle should focus on durability, reliability, and benefits to develop a strong brand image. The company should invest in marketing strategies such as social media, and celebrity endorsements to increase its brand recognition.
Nestle Use of the BCG Matrix Marketing Strategy
Companies require a continuous assessment of their growth potential and market share. Nestle can classify its products into high growth and high market (stars), High market and low market share (question marks), low growth and high market share (cash cows) and those products with low growth and low market share classified as (dogs). The following is a representation of the above information in a BCG matrix.
Nestle should identify the products classified under the stars to increase their investment. It should then analyze why the market share is low despite there being a high growth rate. To ensure continuous good performance, Nestle must utilize or milk the cash cows in the market with low opportunities and limited growth. Lastly, Nestle must divest in products with low growth and low market share (dogs). Such markets generate low or no profit hence the need to invest in the dogs. Good performance is indicated by the high number of stars and cash cows. A high number of question markets and dogs is a show of risks that Nestle must counter to maintain high profits.
Nestle Brand Equity
The basis for brand equity development is the creation of brand awareness. Customers learn of the existence of a brand through consistent brand awareness programs. Nestle can measure its brand awareness through brand recall surveys. High brand awareness increases brand visibility and customer recall of information related to the brand hence considerable gains in competitive advantage.
Customers associate with a given brand based on the collected or created memories, experience with the brand, prices, employee experience, advertisements, celebrity association and level of publicity. Nestle must carefully plan its interaction with the internal and external environment to enhance its image.
Top among the elements of brand equity is brand loyalty or the attitude of the customer towards a brand. Behavioral characteristics such as repeat purchases and new purchases are an indicator of brand loyalty. Nestle can reduce the cost of marketing by increasing brand loyalty. Nestle should successfully introduce new products as well as remain at the top of the market warding off new players. Any cases of repeat purchase must be rewarded to increase brand loyalty. It reduces the cost of acquiring new customers through investment in marketing.
Lastly, Nestle should constantly evaluate the customer’s perceived quality as it determined the pricing methods. Evaluation of its proprietary assets such as patents, and trademarks enhances its brand loyalty and prevent the impact of competitive advantage through copyright cases.
Nestle can utilize Keller’s brand equity development model to improve its brand equity. Nestle should build on brand awareness and salience to develop its brand identity. It should further identify and effectively communicate its brand meaning by clearly defining its mission and vision statement. Customers’ feelings and judgments must be evaluated and feedback assessed to improve where necessary. Nestle should invest in building behavioral loyalty, a sense of community, change in attitude towards its brand.
To measure the success of brand equity marketing, Nestle can use the company’s share price or return on the shareholder’s capital. Higher returns mean positive brand equity marketing. Similarly, the company should differentiate between the price charged based on the brand name and price charged by unbranded products. A positive difference means effective brand equity management. The number of extra sales made compared to other branded competitors is a strong indicator of successful brand equity.
Benefits of Relationship Marketing
Growth Opportunities for Nestle using Ansoff Matrix
The Ansoff matrix was first developed by the Harvard Business Review in 1957 to help marketers have an objective for growth. The tool offers strategic choices to attain these objectives using four main categories of selection. The first strategy is the market penetration strategy, which is less risky and leverages the firm’s existing resources and capabilities. A growing market presents opportunities for growth by simply maintaining the market share. But when competitors reach the capacity limit, they may tap into existing opportunities to increase market share and remain competitive. However, there is a limit on market penetration whereby another strategy must be applied once the market reaches a saturation point for the firm to continue growing. Firms can pursue new geographic regions or additional segments. Firms may also develop new products for a market or develop new markets for the product. Firms with their core competencies related to its experience in the new market segment is an added advantage. Product development strategies are suitable for those organization strengths that are directly related to the customer and not the product. The risks associated with new market trends are more than just increasing market share. For instance, diversification is a risky venture because it requires both product and market development that may not be within the core competencies of the firm. Diversification is only applicable where involved risks are compensated through high rates of return. The Ansoff Matrix model helps firms to decide on appropriate strategies for growth.
Market Penetration –Nestle
Market penetration involves entering a market with current products. Most companies start by gaining the competitors’ customers or taking part of the market share. On the other hand, a company may choose to attract a new pool of users through effective marketing skills. Nestle used market penetration to sell its Milo products across the world. The company had to gain market share of its competitor’s customers in the nutrition drinks. Nestle uses different marketing options such as advertising, media, newspapers and the internet to reach its customers. The product has been known for its lucky number draws that win its customer’s gifts redeemable at the nearest Milo retailer or branch. The trending marketing image created is the energy from drinking Milo products. The company also designs its packaging styles to meet the different tastes and needs of the customers based on their segmentation, especially price. The introduction of Milo in Japan saw a decrease in prices and different packaging styles to make sure the market readily accepts the product.
In the end, the customers can try every product by Nestle through its differentiated packaging style.
Secondly, product development is where a company chooses to remain in the same market but chooses to expand its product line by introducing new products. Nestle has used the product development strategy in the European market by venturing into healthy and nutritional products. The company further invested in the cosmetic industry by investing with L’Oreal as well as other pharmaceutical companies with the UK.
Value chain Analysis-Nestle
Value chain analysis involves a set of activities that are linked together to be utilized to gain a competitive advantage for a firm. It involves inbound logistics, operations, outbound logistics, marketing and sales, and the final service. Nestle maintains a reliable supply chain that has managed to integrate all business operation units across the world. Inbound logistics for Nestle largely include warehousing and inventory control. The company maintains a computerized and automated system of inventory control according to the prevailing market needs of a country. It aims at maintaining a constant supply of its products in the market. The operation of the company aims at maintaining nutritional products and value creation for the customer. Nestle boasts of its strong brand image that can be attributed to its nutritious and high-quality products.
Outbound logistics involves the distribution of goods to the customer. The company has set up unique distribution channels for every country for a timely delivery. It is followed by heavy marketing and sales of its products. The company provides excellent after-sales services aimed at responding to customer needs as provided by its market segmentation plan.
Key Local, National, and Global Emerging Marketing Themes and Possible Market Responses
The dual technological or cultural paradox is the main theme for companies that are expanding into international markets. Advances in technology and communication form the pillar and driving force for the efforts towards turning the world to a global village. It makes it easier to target consumers with similar needs. However, access to the global village has been made difficult due to the need to access the local language, command of the English language and access to equipment. Developed nations where Nestle has a wide presence are characterized by well-developed communication systems and computer literate people, however, developing nations are grappling with technology and report low cases of literacy yet form very important markets. They are characterized by poor, and inadequate infrastructure. Access to essential services such as the internet, power, and banks is curtailed in these nations. While it would cost 15 percent of a person’s average income to access the internet in Mexico, it only costs 1% of a person’s income to access the internet in America (). The lack of infrastructure has contributed to the fragmented and circuitous distribution channels, it markets market entry challenging and difficult to efficiently distribute products. Pepsi and Coca-Cola maintain highly decentralized satellite bottling plants in Eastern Europe to overcome the poor distribution infrastructure in the countries. Nestle should implement such structures to effectively reach its target markets to increase its competitive advantage.
Similarly, shareholder expectations differ with increasing complexities in the international marketing environment. Companies competing on international markets need to manage the differing shareholder expectations due to the increase in the number of organizations and people with a stake in the company. Aims and expectations of shareholders determine the company’s ability to pursue a given marketing strategy. The stakeholders directly or indirectly provide the resources and support required to implement the strategies and plans. Nestle must identify the different stakeholder groups, understand their expectations and evaluate their influence on the operations of the firm. Most companies in the food and beverage industry have problems balancing between the pricing and profit expectations and environmental concerns of the customers, stakeholders and the franchise.
Nestle must be careful not to interfere with the stakeholder expectations when developing and adopting strategies that respond to changes in the market and competition. Moreover, stakeholders have an influence on multinational enterprises and the impact of the political, commercial and ethical behavior of the firms. Therefore, companies must explain their strategies and plans to shareholders through their annual reports. The staff can be briefed through constant briefing meetings while the community and pressure groups can be sensitized through public relations programs. Internal markets require organizations to address otherwise different stakeholders in terms of physical and cultural alienation. Stakeholders have the power to influence the firm’s strategic direction and this may lead to conflicts based on the expectations of the shareholders. The common is of conflict involves the expectation of high returns on investment hence expect firms to find countries with low costs of production with no regard to wage expectations by workers. The firm must manage such potential conflicts that may lead to the success or failure of the firm’s international marketing strategy.
Lastly, the management of international pressure group stakeholders is the main challenge. Pressure groups have immersed their influence on the organization’s decision making through the reliance on available global communications and the internet. They are focused on raising awareness of major issues of concern, for example, the Greenpeace efforts to raise awareness on environmental safety, the anti-child labor movement and the ant globalization lobby demonstration against the dark global forces within the World Trade Organization.
Being among the largest and most successful food and beverage companies across the world, Nestle has successfully introduced new products and continues to introduce more. The company’s focus on innovation is supported by the product LCI that has seen its success in North America due to its health benefits to the customers. The company has extended its LCI (yogurt) to other countries such as Japan and Germany though with a low success rate. It follows that the introduction of LCI Yoghurt has not been successful in many European markets such as the United Kingdom. There is a need for Nestle to improve the success of its LCI products to add to the overall positive brand image.
Nestle Waters has a brand image hence can be used as a marketing and promotional tool majorly in developing nations. Developed in under-developed nations have less strict policies on health concerns compared to developed nations.
The company should use its massive global presence to invest in research and development. The company has the funds and presence to impact governments. It maintains high profits despite the constant calls on environmental consciousness and water rights. The company should, therefore, invest in technology to learn about customer needs and develop alternative and environmentally friendly approaches to production.
Nestle has a global presence operating in more than 190 countries. The company must, therefore, focus its competitive strategy to its international strategy. The competitive strategies are closely affected by international market operations and foreign direct investment in food, beverages and dairy products. The company is focused on balancing the sales from developed countries, which have low investment risk and potentially high growth with high risk and low growth factors in less developed countries. Top markets included European nations such as the UK and America, while low markets are the developing nations of Africa and Latin America. All these markets are equally important for Nestle as long as a suitable marketing strategy is applied. Apply appropriate marketing strategies means that Nestle should identify potential profits from high-risk countries and not blindly investing in high-risk areas. It ensures the steady growth of the company by increasing profits and maximizing on share value.
Nestle grows and gains economies of scale in highly developed markets of developed countries. The company invests in other big companies such as the LCI brand license that was recently given to Muller, a dairy producing company in Germany. On the other hand, Nestle’s investment strategy in developing countries involves the manipulation of ingredients and innovative technology to adapt to local conditions for a specific brand. Not so famous brands can prove to be successful if introduced in developing nations than when introduced in developed nations.
Also, Nestle has been striking strategic partnerships with other large companies such as Coca-Cola. The 1990s trade cooperation with Coca-Cola in the ready to drink tea and coffee benefited Nestle’s brand image. Nestle also benefited from Coca-Cola’s manufacturing process such as bottling and preparation of different beverages. Today, Nestle is the world’s largest beverage competitor of Coca-Cola. Nestle faces much competition from European and African markets. It is constantly looking for new markets to venture in based on available market segments through innovation. Nestle aspires to acquire local companies in Asia to form regional managers that understand the local culture and social needs compared to the American or European counterparts.
Lastly, an effective marketing strategy must be designed for every target market of the product and service. A marketing mix must be established consisting of the major elements of price, product, place, and promotion. The elements aim at satisfying the needs of a target market to meet the objectives of an organization. Nestle’s marketing strategy is guided by fundamental principles. Consistent creativity, innovation, and renovation form the basis of success in its strategy. The company is committed to creating value in its manufacturing and market objectives across the world. The company’s focus is not on short term profits but on successful long-term business development. The company’s understanding of consumer needs is that the customers believe the consistency in the brand image created. The company has continually worked following prevailing and applicable local and international laws. The company is being driven by macro trends that control the external market. Therefore, Nestle must utilize the available competencies and internal strengths to take advantage of the emerging macro-environment opportunities such as technology.
Laville, S., & Taylor, M. (2017). A million bottles a minute: world’s plastic binge’ as dangerous as climate change’. The Guardian, 28.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Our essay writers are graduates with diplomas, bachelor, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.
PLACE THIS ORDER OR A SIMILAR ORDER WITH GRADE VALLEY TODAY AND GET AN AMAZING DISCOUNT