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Largest Multi-National Companies

   

Added on  2022-08-16

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Introduction:
Nestle is the one of the largest multi-national companies operating in the food and
beverage sector. The company was founded during 1860s (Djarum et al. 2019). Continuous
product modification, renovation in the customer retention strategies are the characteristics of the
business operations conducted by the company, are the root causes behind the steep growth as
well as survival of the company, in the food and beverage industries, since its inception in the
year 1860. The home country of the company is Switzerland. Nestle manufactures a wide range
of products include the baby foods, evening snacks for adults as well as medical foods, bottled
water, ice-cream The market penetration tools used by Nestle attract a wide range of customers
with the help of contemporary digital marketing tools like-SEO, social media marketing,
YouTube advertisements, as well as the social media ad campaigns, online contests and so on
(Agustin et al. 2017). In the year 2018, Nestle has experienced an elevated sales rate of about
23.6% billion (Djarum et al. 2019). Their efforts address the specific needs of each group of
customers. Nestle has taken the decision associated with food production. In this context, Nestle
has adopted several positioning strategies depending on the age group of the customers. The term
Search Engine Optimization, is a popular procedure used by Nestle to conduct digital marketing
efficiently. Using SEO technique, Nestle The purpose of this study is to throw lights on the
different segments of the market targeted by Nestle. In this context, this study will also delve
deep into the contemporary digital marketing as well as advertising tools used by Nestle to
promote the brand and attract different segments of the customers. This will be followed by a
brief discussion regarding the strengths, weaknesses as well as the recommendation associated
with the marketing strategies adopted by the company.

Two different segments of market
Nestle segments the targeted markets on the basis of demographic s well as behavioral
factors. A minute observation of the two different markets consisting of two different type of
customers targeted (Arora and Singh 2017).
Findings:
Nestle, the largest food as well as beverage manufacturer of the world segments the
targeted markets depending on the demographic as well as behavioral factors. More specifically
it can be stated that Nestle produces different set of food products as well as beverages for the
several group of targeted customers as well as market which can be distinguished using
demographic as well as psychographic factors (Baxi Panda and Karani 2016).
Market segmentation by Nestle on the basis of demographic factors and Positioning
of the product:
Among all other demographic factors, Nestle has chosen, age as the demographic factor,
to determine the type of food they will produce. In other words segmenting the market in terms
of the demographic factors, Nestle has taken the decision associated with food production. In this
context, Nestle has adopted several positioning strategies depending on the age group of the
customers. Firstly, Nestle has targeted toddlers between the age group of 6-12 months (Daramola
Bello and Okafor 2014). For the toddlers from 6-12 months, Nestle has brought products like
‘Nestle Nan Pro Stage 2 Follow-Up Formula Powder’, which is positioned in the market as the
baby food which can be used by the working women as the substitute for breast milk (Blackshaw
2014). This is capable of accelerating brain development among infants at a faster rate as
compared to the natural rate of brain development. products containing (Djarum et al. 2019).

Again, for the children as well as adults Nestle has brought breakfast cereals into the market of
food and beverages named ‘Nesplus’. This product is positioned in the market as the only one
tasty and crunchy cereal enriched with vitamin D, B-vitamins, calcium, the crunch of which can
be enjoyed even in warm milk by the entire family. their efforts address the specific needs of
each group of customers. Nestle has taken the decision associated with food production. In this
context, Nestle has adopted several positioning strategies depending on the age group of the
customers. The term Search Engine Optimization, is a popular procedure used by Nestle to
conduct digital marketing efficiently. Using SEO technique (Fitzgerald 2014).
Market segmentation on the basis of Behavioral factors and positioning of the
product:
Under the Behavioral segmentation the market, customers possessing a specific buying
behavior depending on their usage, preferences are considered homogeneous. Again the liking of
the customer associated to a specific brand as well as brand loyalty can be considered as the
other factor which contributed substantially to the behavioral segmentation. For instance Nestle
knows that a huge section of the customers all over the world especially the office goers,
students who has to remain awake during the entire night, for the purpose of office work as well
as studies, use coffee frequently as the energy booster. Again, in spite of the availability of the
regional coffees, a huge section of the young generation, office goers are loyal to a large brand
like Nestle. Observing all these Nestle positioned their Nespresso, a type of coffee which is
served through an innovative machine providing the office goers as well as university students a
fast, innovative as well as personalized experience of enjoying coffee in the midst of the hectic
schedule (Kaufman and Horton 2014).

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