Marketing Strategy for Nestle

This assignment analyzes Nestle's marketing strategy, emphasizing the importance of processes, systems, and physical evidence. It delves into each component of the marketing mix (product, price, place, promotion) and provides specific recommendations to enhance the company's success. The analysis draws on various academic sources and Nestle's official website.

Running head: MARKETING MANAGEMENT
Marketing Management
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Executive Summary
Marketing mix is one of the essential activities that need to be taken up by various business
organizations, such that the business is enhanced. This assignment highlights the marketing mix
of Nestle, describing the various components of the marketing mix. Recommendations on each
of the marketing mix have been also added, thus analysis the marketing mix of Nestle in details.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Analysis.......................................................................................................................................4
3. Recommendations........................................................................................................................8
4. Conclusion.................................................................................................................................12
References......................................................................................................................................14

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1. Introduction
Marketing for any business organization has a key role to play. This assignment
highlights the marketing mix of Nestle, along with highlighting various recommendations for
each of the marketing mix that will ensure the success of the organization and will help the
company to improve its business policies (Nestle.com, 2017). Nestle is one of the largest food
product manufacturers in the world. The company is a Swiss transnational food and beverage
company that operates in more than 194 countries, with 480 factories in 87 countries, all over the
world (Nestle.com, 2017). Nestle is the largest food and beverage company with more than 2000
brands to sell to various customers. The headquarter of Nestle in Australia is at Rhodes, Sydney
(Nestle.com, 2017). The number of employees of Nestle is almost 339,000 people, all over the
world (Nestle.com, 2017). In the year 2011, the company topped the list in the fortune global
500, as the most profitable corporation in the world (Day, 2013). The factories of Nestle at
Australia are located at various places such as Gympie, Carole Park, Blayney, Tongaia,
Boardford and many other locations (Nestle.com, 2017). The various products of Nestle includes
coffee, medicated lozenges, recipe bases, sauces of various flavours, Noodles, baking
ingredients, cooking milks, baby food and toddler nutrition. Nestle has a strong product line
(Nestle.com, 2017). The company has various business units and the company uses different
business strategies, in order to manage the different food products. The beverage, milk products,
chocolates, noodles as well as the recipe bases have different business units and they use
different strategies in order to run the various business units (Schlegelmilch, 2016). The mission
of the company is to influence the social environment and become responsible citizens
(Nestle.com, 2017). The company is also motivated to improve the quality of life as well as the
environmental standards. The vision of the company is to become a lead and competitive

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nutrition, health and wellness company that delivers improved shareholder value (Nestle.com,
2017). The customer base of the company is of a wide variety. The customers range from
children to adults. Since Nestle has a wide variety of food products, hence the customer base is
also wide.
2. Analysis
2.1 Product
The products of Nestle are categorised into 4 broad categories. These include beverages,
milk and milk products, prepared dishes, cooking aids and recipe bases, and chocolates. The
product portfolio includes 8 of the 30 most sole confectionary brands in the world (Nestle.com,
2017). The products of Nestle are of the best quality and maintain the food grade quality that the
World Food Corporation maintains (Nestle.com, 2017). The product brands include Nescafe,
Coffee-mate, Taster’s choice, Nestea, Nestle carnation, Nestle Hot Cocoa, Sunsational, Nestle
Vitality, Sunkist, Nestle Coolpro. The wide variety of the products attracts millions of customers
to buy the products according to their needs. The wide variety suits the customization that each
customer needs (Appiah-Adu & Amoako, 2016). The milk and milk products include Nestle
every day, Grekyo, Nestle a+ nourish, Nestle a+ slim, Nestle ActiPlus. The chocolate brands
include Nestle Kit Kat, Nestle Munch, Alpino, Eclairs, Polo (Nestle.com, 2017). Other than
these, the company offers a wide variety of baby food as well (Moskowitz & Huang, 2017). One
of the most sold products of Nestle is the instant noodles and sauces, under the brand Maggie
(Day, 2013). The quality and the brand name are important for the products of Nestle.
2.2 Price

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The pricing strategies of Nestle are customer friendly (Nestle.com, 2017). Competitive
pricing is used as a pricing strategy for Nestle. This pricing strategy helps in ensuring stable sale
and lifts the sale even in the tough markets. The competitive pricing strategies are useful in
ensuring that the prices of the products are based on the pricing of the similar items of the
contemporary companies (Day, 2013). This pricing is effective in ensuring that the customers get
the right products, by paying the appropriate price (Nestle.com, 2017). Moreover, it is important
that Nestle regulate the price according to the demands of the customers. However, the pricing
decision is often influenced by the factors such as changes in technology, effect of the suppliers,
competitive pressure (Appiah-Adu & Amoako, 2016). Since most of the products of Nestle are
basic food and dietary elements; hence, the prices have to be affordable to the customers
(Moskowitz & Huang, 2017). The customer friendly pricing policies attract more customers, thus
seeking customer loyalty.
2.3 Place
The place where the products of Nestle are available includes mainly the departmental
stores and supermarkets. The places of the products are important, since the accessibility is
important for the sale of the products of Nestle (Nestle.com, 2017). The supply chain and the
distribution mixes of Nestle are strong and hence the products reach the customers easily (Day,
2013). The distribution centres include warehouse and distribution centres, fair prices shops,
whole-sellers, retailers as well as small grocery shops (Nestle.com, 2017). The Nestle
Corporation dispatches their products from the distribution centres all over the world, to the
retailers and fair price shops (Appiah-Adu & Amoako, 2016). Thus, the products are well
connected and flows easily from the distribution centres to the retailers, thus ensuring successful

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distribution of the products of Nestle (Dadzie et al., 2017). The well-connected network ensures
that the products reach the potential customers at the right time, with the right price.
2.4 Promotion
Promotion is one of the most important activities that need to be taken up by any business
organization, such that the potential customers are able to know about the products. The
promotional activities that are taken up by Nestle are effective in generating sales and creating
brand loyalty (Moskowitz & Huang, 2017). The main purpose of promotion includes
advertisement of the products, increase in the sale of the products, increased public relations
(Day, 2013). Moreover, effective promotion enhances the brand loyalty and brand image. The
customers are also made aware of the existing products as well as the new products. As
promotional activities, Nestle uses advertisements, television commercials, hoardings, newspaper
advertisements, as well as celebrity endorsement. Along with these, high discounts are given to
the customers, such that new customers could be attracted to the brand Nestle (Nestle.com,
2017). Nestle also believes in personal selling. Nestle has various team of vendors, who are
dressed in the branded t-shirts and jackets, selling various products as soon as new products are
launched (Appiah-Adu & Amoako, 2016). Promotion of Nestle through advertisements such as
billboards, brand umbrellas, wall paints, product samples are also taken up by the company.
Promotion through public relations is also taken up by Nestle (Moskowitz & Huang, 2017). The
promotion is useful and effective in enhancing the business of Nestle.
2.5 People
People form an important part of any business organization. The people refer to the target
customers, who are the main source of selling the products (Peck et al., 2013). Market

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segmentation is an important process that needs to be taken up, in order to reach the target
customers (Day, 2013). The bases of segmentation that is done by Nestle, are one the basis of the
geographical, demographical, psychological and behavioural characteristics of the potential
customers (Appiah-Adu & Amoako, 2016). Division of the market geographically helps the
company to identify the requirements of the customers based on the geographical region
(Nestle.com, 2017). People living in the countries, where winter predominates, the usage of
coffee is much more, than that of the warmer countries (Dadzie et al., 2017). Thus, demographic
segmentation has a major role to play, in identifying the customer base (Morschett, Schramm-
Klein & Zentes, 2015). The people mix, taken up by Nestle is effective, as it is successful in
ensuring customer satisfaction of people of various countries.
2.6 Processes
The process refers to the system and the operations that the company follows in order
ensure the successful working of the business organization (Dadzie et al., 2017). The process is
important since the manufacturing of the products, timely delivery as well as reaching the
customers are an essential part of the process (Nestle.com, 2017). The quality check and quality
assurance, along with the discarding the items that are out of date are essential processes and
have to be taken care by Nestle, in order to avoid operational delay (Appiah-Adu & Amoako,
2016).
2.7 Physical evidence
The physical evidenced refers to the products being delivered to the employees, along
with the quality of the products that are being delivered by the company (Moskowitz & Huang,
2017). The satisfaction of the customers, by receiving the products of their choice is an essential

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part of the physical evidence (Day, 2013). The perception of the customers is also included in the
physical evidence of the products that are given to the customers.
2.8 Partnerships
Partnership with various organizations is beneficial for any business organization. Nestle
also has partnership with various organizations, and together, they work towards the successfully
to provide the best quality food products to the customers (Nestle.com, 2017). The key partners
of Nestle are as follows:
1. Imperial college of London
The research partner of Nestle is the Imperial college of London, which works diligently,
ensuring high level research being taken up by the college, to ensure nutritional development of
the products of Nestle (Morschett, Schramm-Klein & Zentes, 2015).
2. A*star
Nestle shares a positive relation in the partnership with Singapore’s government agency
for Science, technology and research (Nykiel, 2016). This partnership is important and provides
a new base for the company’s regional centre (Nestle.com, 2017).
3. EpiGen Consortium
This partnership is important as it explores epigenetic and explores how nutrition and the
dietary habits affects the genes (Nestle.com, 2017).
3. Recommendations
3.1 Product

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The products of Nestle have a wide variety. The wide variety is able to carter to a variety
of customers, thus fulfilling the demands of most (Moskowitz & Huang, 2017). The products of
Nestle are of high quality and are suitable for customers of various ages. However, it is
recommended that along with a wide variety of products, the diversity of the products might also
be increased. Specialised and nutritious food such as baby food or food for patients suffering
from various diseases might also be introduced (Nestle.com, 2017). This will be a significant
initiative on the part of Nestle, since the company has already gained confidence of the
customers. The introduction of any new product will be well-accepted by the customers. Another
recommendation for the products of Nestle includes the sale of all products to all the countries
where Nestle is operational (Moura, Branco & Camoesas, 2015). At present, the products of
Nestle vary from one country to another (Dadzie et al., 2017). However, people of the other
countries might also have the demand for the products sold in a particular country. Hence, the
products of Nestle could be globally available, in order to ensure globalization of the products.
3.2 Price
The competitive pricing strategy is effective for the products of Nestle. However, it is
recommended that price skimming or psychological pricing. Price skimming refers to the
decrease of the price of the products in order to stay in competition with the similar companies
(Morschett, Schramm-Klein & Zentes, 2015). Price skimming is important, such that Nestle is
able to gain competitive advantages over the competitors such as Unilever (Dadzie et al., 2017).
Moreover, in case of psychological pricing the companies work on the psychology of the
customers (Wymer, 2017). For example, the price of any product being $99 has a stronger effect
than $100 (Lockrey, 2015). Thus, Nestle could work on the psychology of the customers,

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increasing the number of customer base for the various products of Nestle (Moura, Branco &
Camoesas, 2015).
3.3 Place
The products of Nestle are available in a variety of places. These include the
supermarkets, departmental stores as well as valued retailers (Morschett, Schramm-Klein &
Zentes, 2015). The place is important for the success of the business, since the availability of the
products determines the sale of the products (Moura, Branco & Camoesas, 2015). Though the
place where the products of Nestle are available yet it is recommended that the products could be
available online widely (Nestle.com, 2017). This will increase the number of loyal customers, as
they would be able to buy the products as and when required. The online presence is important in
enhancing the business of Nestle (Lockrey, 2015). The ease of availability of the products of
Nestle is important to enhance its business. Hence, the ease of availability of the products at the
departmental stores, need to match with that of the online presence.
3.4 Promotion
The promotional activities that are taken up by Nestle are useful in promoting the various
products of Nestle. The television advertisement, along with that of the hoardings and placards,
celebrity endorsement are effective (Dadzie et al., 2017). However, the company needs to take
up proactive initiatives of social media marketing (Bhattacharya, 2016). Using the social media,
for promotion of the products is useful and is likely to be effective in order to ensure the success
of the business (Morschett, Schramm-Klein & Zentes, 2015). Moreover, the word-of-mouth is
also an important promotional mode, thus ensuring successful promotion of the products of
Nestle (Moura, Branco & Camoesas, 2015).

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3.5 Processes
The operational activities and processes that are followed by Nestle are effective and
ensures the successful workflow. However, it could be recommended that the new technologies
could be in order to ensure the steady workflow (Dadzie et al., 2017). New technologies such as
RFID could be used to track every activity that the company undergoes, thus helping Nestle to
ensure remote tracking of the various processes (Bhattacharya, 2016). With the use of the RFID
technology, the RFID tags that are attached to each component, could be traced from remote
locations (Morschett, Schramm-Klein & Zentes, 2015). Moreover, delay in the supply chain or
logistics could also be kept in track, thus enhancing the process of operations (Lockrey, 2015).
3.6 Physical evidence
The recommendation for the physical evidence includes the enhancement in the customer
services that will attract many new customers, along with retaining the loyal customers. Since the
physical evidence includes the feel of the products as well, hence, it is important that the
qualities of the products be not compromised (Moura, Branco & Camoesas, 2015). Hence, it is
recommended that the customer assistance be improved (Bhattacharya, 2016). Moreover, the
physical evidence also includes the ways the customers are handled and the after sale services.
Thus, it is important that the physical evidence have to be taken up diligently (Lockrey, 2015).
3.7 People
The people includes the potential customers of Nestle. The people needs to be given
adequate importance. The target customers have to be identified, along with reaching out to new
customers. For Nestle, it is recommended that they spread their business in other regions of the
world. Reaching out to the new customer base will result in the increase in the number of

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potential customers (Lockrey, 2015). Moreover, reaching out to more people will result in
enhancement of the business. The demands of the customers will be identified and changes
according to the demands of the customers will be incorporated (Morschett, Schramm-Klein &
Zentes, 2015). The people should be given adequate importance, such that the business of Nestle
will receive a boost.
3.8 Partnerships
The partnership of Nestle, with the various organizations is important in order to enhance
the business of Nestle. The partnership is important and had to be ensured that positive
partnership and alliance is taking place in Nestle (Dotti, 2015). It is recommended that Nestle
should enter into partnership with various other organizations such that the research and
development of Nestle could take place (Morschett, Schramm-Klein & Zentes, 2015). Moreover,
scientific research will enhance the products of Nestle. Hence, it is important that Nestle should
enter into partnership with various research labs and scientific research centres, in order to
ensure nutritional enhancements of the products (Lockrey, 2015). Thus, with active participation
and partnership are important in order to bring enhancement of the products of Nestle.
4. Conclusion
Marketing mix has a key role to play in any business organization. It has a key role to
play in Nestle as well. The marketing mix includes various essential components that have a key
role to play in the marketing activities of the business organization. The marketing mix includes
the various components such as the product, price, place, promotion, people, physical evidence,
processes and partnership. Each of these components has a key role to play in enhancing the
business of Nestle. The products of Nestle are of wide variety. Thus, a large variety of customers

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could be catered with the variety of the products of Nestle. The price of the products is
competitive and according to the affordability of the target customers. The places where the
products are available are well accessible by the customers. The distribution of the products from
the warehouse to the retailers is well connected, thus ensuring steady flow of the products,
according to the demand of the customers (Bhattacharya, 2016). The promotional activities are
taken up effectively by promoting the products using social media, advertisements, and print
media. Discounts and loyalty discounts are also given to the customers, as a promotional activity.
The people include the target customers. The company, thus choosing the target customers
appropriately, does the market segmentation effectively. The processes and systems are followed
strictly, thus ensuring steady flow of the operational activities. The physical evidence is also
important and has to be given adequate importance. Recommendations for each of the
component of marketing mix have been included, in order to ensure the enhancement of the
business successfully.

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