Nestle's Marketing Strategy in India

This assignment analyzes Nestle's marketing strategy in India, emphasizing their rapid expansion plans, targeted advertising campaigns, and focus on value creation for consumers. It examines how Nestle leverages promotional techniques to educate customers and maintain a strong brand image in the competitive Indian market.

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Introduction to Management

Introduction to management
Introduction
Nestle is one of the most popular brands in the market. Nestle was founded by Henri
Nestle in 1866 in Switzerland. The company is situated in a number of domestic and
international markets. In the company, more than 8000 employees are involved in conducting the
activities. The organization focuses on the product development so that the commitment of the
customers can be maximized. Nestle is known as the leader in the food processing and also in
the consumer goods industry. The organization has specialization in many products like baby
products, ice cream, and drinks. The company focuses on its customers so that proper
relationships can be maintained.
Nestle was established in 1905 resulted in the merger of Anglo-Swiss milk company. In
the terms of revenue, Nestle has been one of the biggest companies in the world. Nestle operates
447 production units serving in 194 countries. Nestle means little that symbolizes safety, family,
and symbol of care. The success of the company is due to the innovative products and now the
company is one of the biggest food leading industries. The company also produces more than
300 products like Maggi, Nescafe, and kit Kat. The products of the company are sold globally
(Nestle, 2013).
Pestle analysis of Nestle
Political factors
It is evaluated that the organization is conducting the activities in diversified communities
and there are many changes in rules and regulations that are faced at the time of conducting the
activities. There are many products that are offered by the organization but due to different
reasons, the products are not allowed in various countries. The organization has shown stability
in many economies including China and India. Nestle has to follow various political changes in
the developing countries so that the activities can be conducted smoothly. Moreover, Nestle
activities are affected by the risk that arises due to the government instability.
Economic factors
Nestle has maintained a network of research and development and also innovative
products are introduced in the market. Due to changes in economic policies of different

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countries the organization has to face problems in supplying its products to the consumers. It is
evaluated that the customers are also aware of the change in inflation and economic growth. Due
to the change in economic policies the company set various target segments. To take a decision
related to price is an important factor by taking into consideration inflation rate and buying
power. In promoting the economic worth of the farmers the company is giving focus on
contributing so that the satisfaction level of the consumers can be enhanced (Rezaeegiglo,
Sadouni, Aref, Khotbesara and Eslam, 2014).
Social factors
The activities of the organization are influenced by the share thoughts and beliefs of the
consumers. The culture and lifestyle of the people induce company to offer a specific product to
the right segment. Nestle has also taken into consideration social perspective. The organization
has considered the concept that customer changing attitude plays a major role in conducting the
activities of the organization. Now a day's people are more aware of their health and only take
into consideration those products that are beneficial for their health. The company has made a
good reputation for analyzing the behavior of the customers. Nestle is a global brand but the
production of the product is done locally so that the quality can be maintained (Turlais, 2016).
Technological factors
Technology offers various opportunities to the company so that the new products can be
developed in an effective manner. Nestle take into consideration technology in conducting many
operations of the organization like to maintain proper databases by considering software. Social
media has also lessened the gap between the customers and the company. Nestle considers the
state of art technology for producing various products to attain the standards globally (Ion,
2015).
Legal factors
Nestle has to face the labor laws related to minimum wages that are fixed by taking into
consideration provision of laws. It is evaluated that the company has to follow promotion laws
as it is the asset of the organization. Nestle has to follow the foreign trade regulations so that the
products can be sent to other countries. This law helps to offer food and beverages to the
customers at international and domestic level by taking into consideration rules and regulations
of the transportation products. Nestle need to follow the global regulations so that the changes

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can be made in the international markets. It is seen that many countries try to make changes in
the activities so that the products can be delivered to the customers within the rules and
regulations (Appiah-Adu and Amoako, 2016).
Environmental factors
In the recent scenario, the main focus is to have a clean environment. So nestle should
take into consideration rules and regulations to produce healthy food with environment-friendly
activities. There are many countries that set different rules so that the acceptance of the products
can be enhanced. Nestle is focusing towards social contribution so that the issues related to
packaging and recycling can be resolved effectively.
Porter Five Force Analysis of Nestle
Threat of New Entrants – Low
In the consumer food industry, the threat of new entrants is low. The players who exist in
the market hold a large share of the market. They take into consideration the needs and wants of
the customers so that they can sustain in the competitive market. It is seen that every year many
new entrants enter the industry so that the large market share can be grabbed. Nestle has attained
a good image in the market but as the food industry is considered it is seen that there are many
companies who entered the market. Nestle gives a tough challenge to the new entrants so that
the quality can be maintained and also the large share can be attained by the company (Cowherd
and Levine, 2012).
Competitive Rivalry – High
Nestle conduct the activities in the consumer food industry and faces a high level of
competition. It is seen that the competitors of the company are kraft foods and P&G. The
products that are taken in breakfast segment have the competitor like Kellogg's. So Nestle is the
largest player in the industry and still face a high level of competition in this industry. To
compete in the high level of competition the company spends a huge amount on marketing the
products. The competition is not only related to price but also with the variants available in
products, promotional offers, and creativity. All the competitors who are prevailing in the
market have to strive so that they can retain their large market share. So, the competitive rivalry
of the company is high (Park, Ungson and Cosgrove, 2015).

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Bargaining Power of Suppliers – Low
The company holds a large market share in the industry. So it requires large suppliers to
attain high quantities. It is evaluated that if any supplier starts the process of supplying they
never bargain with the prices. Nestle focuses on suppliers so that proper relation can be
maintained for a long time. The company prefers to maintain proper relations with the suppliers
so to attain a good quality of raw materials. The company takes care of the suppliers so that
products can be easily offered to the customers.
Bargaining Power of Buyers – High
Just because of a high level of competition the bargaining power of the buyers is high.
The buyers can easily switch from one brand to another. It is essential to focus on the prices of
the products so that the customers can be retained for a long time. The cost of switching is low
for the customers. The customers have many choices to select from a range of products and
there are many companies who sell similar products. The company focuses on enhancing the
high satisfaction level of the customers (Wooldridge and Floyd, 2013).
Threat of substitutes – High
There are many Nestle products like a packaged water bottle and pasteurized milk that
have substitutes available. As the company offers daily products so the threat of substitute is
high. Nestle has to take into consideration innovative ideas to sustain in the competitive market.
In the food industry, the market share is so large so the substitute is available easily for the
consumers. There are many allegations against the products of the company as it is not healthy
for consumption. This has given negative impact on the image of the company and the sale of a
substitute product has enhanced. The company strives to highlight the aspect of the products so
that substitute's products can be handled (Williams and Figueiredo, 2014). For example: The
substitute of the Maggi is Knorr noodles.
Recommendations For Nestle
Innovative Medium of Communication and use of viral marketing as a
communication strategy
Nestle should be elaborative so that the effect of viral marketing can be done in a
particular locality. To attract the human minds the company should organize game stalls and

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food stalls. Communication should be done in regional languages in a form of game shows and
movies. This will give impact on the interest of the rural population. Distribution of test
samples should be also done so that the marketer can collect valuable consumer insights
(Dhanesh and Sriramesh, 2017). For proper management, the company should communicate
effectively with the employees of the organization so that the activities can be conducted
effectively.
Focus should be given to value creation and branding rather than only on
prices and offers
The activities of the company should be directed towards creating sustainable brand
value by communicating and creating good brand value so that the promise can be fulfilled that
are made to the customers. The emphasis should be given on increasing the value creation so
that the activities that are conducted can attain profitability and growth. The brand image should
also be considered by giving emphasis on the value creation for customers. The company should
give emphasis on generating brand recall amongst the customer base. If there is proper
communication the company can easily create a positive environment that will help to sustain in
the competitive environment.
Offer value for money – Customer Centric
Nestle has many reasons to attain success like good supply chain management process
and proper conducting the activities. The company can easily attain success by being customer-
centric. Consumers purchase the product of the company because they have faith in its quality
and they know that the company offers value for money. It is important for the company to keep
faith alive in the customers so that the demand can be enhanced (Avittathur and Jayaram, 2016).
Social activities
Nestle should engage with the customers by taking into consideration social platforms so
that the online behavior can be accessed of the consumers. The company should also consider
predictive analysis so that the customers can be targeted easily (Hofstede, 2011).
Conclusion
So, by analyzing the report it is concluded that the company has various competitors in
the market. To sustain in the market it is important to have proper communication with the

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customers so that the sales can be enhanced effectively. The current market environment of the
company is emphasizing on providing quality products to the customers.
Nestle is giving emphasis on rapid expansion and also targeted India as its focused
market. This strategy will assist the company to grow in the market. Nestle also gives emphasis
on promoting advertisements so that the overall goals and objectives can be accomplished. By
launching new products in the market it is evaluated that the company also give attractive
advertisements so that the activities can be conducted smoothly. The company should give
emphasis on value creation for consumers so that the image can be maintained. Value of money
should also be developed of products and services rather than offering cheap products or
services.
It can be said that in the current ecosystem, Nestle is behaving like a leader and moving
forward with a calculative strategy to track the macro environmental forces. Nestle should also
give emphasis on taking into consideration attractive promotional techniques so that the product
knowledge can be given to the consumers.

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References
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developing economy: A case study of selected market leaders. African Journal of
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Avittathur, B., & Jayaram, J. (2016). Supply chain management in emerging
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Cowherd, D. M., & Levine, D. I. (2012 ). Product quality and pay equity between lower-level
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Dhanesh, G. S., & Sriramesh, K. (2017). Culture and Crisis Communication: Nestle India's
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Hofstede, G. (2011). Cultural dimensions in management and planning. Asia Pacific journal of
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Ion, B. (2015). Multinational Companies-Main Players In The Globalization Economy. Ovidius
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Nestle, M. (2013). Food politics: How the food industry influences nutrition and health (Vol. 3).
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Park, S. H., Ungson, G. R., & Cosgrove, A. (2015). Scaling the Tail: Managing Profitable
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Williams, B., & Figueiredo, J. (2014). Lessons from an innovation-leader and tools to learn
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