Analysis of Nestle's Marketing Environment: PESTLE and Recommendations

This report provides an in-depth analysis of Nestle's marketing environment, focusing on the application of a PESTLE analysis to assess the external factors influencing the company's marketing strategies. The report begins with an introduction to Nestle, highlighting its global presence and core values. It then delves into the marketing environment, emphasizing the importance of strategic planning. The PESTLE analysis examines the political, economic, social, technological, environmental, and legal factors affecting Nestle's operations. Each factor is explored in detail, with examples of how they impact the company's marketing activities. The report further discusses the ways these factors affect marketing, including government interference, economic fluctuations, social trends, technological advancements, and legal regulations. The report concludes with recommendations for Nestle, focusing on cost reduction, eco-friendly initiatives, and strategic adaptation to maintain a competitive edge. The report aims to provide a comprehensive overview of Nestle's marketing environment, offering insights into its challenges and opportunities, and suggesting strategies for future success.

Running head: Marketing management
MARKETING mANAGEMENT

Marketing management
Table of Contents
Introduction................................................................................................................................1
Review of marketing environment.............................................................................................2
PESTLE ANALYSIS.................................................................................................................2
Ways related to these factors that can impact the marketing activities......................................4
Recommendations and conclusion.............................................................................................5
References..................................................................................................................................6
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Marketing management
Introduction
Nestle is considered as one of the largest foods and beverage company. There are more than
2000 brands which are offered in the market on the global platform. Headquarter of the
company is in Vevey, Switzerland. The company has focused on research and development
and there are more than 500 factories in 86 countries. The tagline of the company is “Good
Food, Good Life”. The main aim of the company is offer quality products to the customers so
that their needs can be satisfied. Henri Nestle endowed his company and the symbol is also
derived from his name (Nestle, 2018).
In 1905, the company also merged with Anglo- Swiss condensed Milk company. In 1900s,
the overall activities of the company are managed in United States, Britain, Germany and also
Spain. The vision of the company is ‘We believe that research can help to make the food
better so that people can live a better life”. The mission statement of the company emphasizes
on “offering best food to people with the unique experience so that needs can be satisfied and
also quality of life can be enhanced (Nestle, 2018).
The customer relation of the company is built by focusing on the customer value and also on
enhancing the satisfaction as it can help in maintaining the large customer base. The goal of
the company is to maintain its customer base by offering superior value and also to grow in
the market by enhancing the satisfaction level in the competitive market. Nestle defined its
overall marketing as a social and managerial process in which the people consider the good
food and good life by creating and exchanging the products and services. The basic principle
of the company is to manufacture and market the overall products of the company so that
long term relations can be maintained with the shareholders, employees, customers and with
the partner of the business.
So, in this paper the discussion will be made on the Nestle Company. In the first phase of the
report, the discussion will be made on the marketing environment and also on the factors
which are important to be considered as it can help in planning the future marketing activities
of the company.
In the next phase, the ways in which these factors can impact on the overall marketing
activities will be considered. In the last phase of the report, the recommendations will be
made that should be considered by the company as it can help in accomplishing goals and
objectives in the competitive market.
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Marketing management
Review of marketing environment
It can be stated that marketing is defined as the concept through which the products and
services of the company are introduced in the market. Through this it can be simple for the
company to introduce the products and also the demand can be enhanced. It is important for
the companies to focus on the strategies so that goals and objectives can be determined.
Nestle focuses on the concept of marketing (Baker, 2016).
The marketing strategy considered by the company is related to the progressive human
resource and social policy which involve the management style based on management
commitment and also people involvement. The company also focused on protecting the
environment by considering the environmentally sound practices and also to reserve the
natural resource and save energy. For example: the company assured that products,
manufactured and distributed by the company are certified by HALAL which is authorized
by Islamic certification bodies. So, the company delivered the shareholder value through
emphasizing on the sustainable and profitable long-term growth. Also, it has been seen that to
achieve success in the market the company focused on the maintaining the leadership style in
the market (Adams, Schenker and Loerincik, 2015).
The emphasis of the company is to focus on the strategic position so that changes in the
overall factors of the business can be considered. In the business it is important to allocate the
resources in a proper manner. It will also help in bring improvisation in the overall
productivity of the company. The economic system is one of the essential factors which can
assist in allocating the scare resources in a proper manner. It is important for the company to
consider the legal policies so that it can be easy to manage the overall activities of the
company in the competitive market. So, there are various models or the strategic concepts
which are considered by the company at the time of planning the future marketing activities
of the company (Madhavaram, Hunt and Bicen, 2017).
PESTLE ANALYSIS
The first model which is considered is related to Pestle analysis. In this model, there are the
factors which is important to be considered at the time of planning the overall future
marketing activities.
Political factor
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Marketing management
It can be seen that company is liable to consider the political influences so that it can be easy
to depict the future growth of the company in the competitive market. It can be seen that there
are various laws and regulations which are applicable and also it is important to be
considered so that it can be simple to maintain the food safety programs. Like ISO 9002 and
HACCP are the preventive food safety systems which are considered by the company. It can
be seen that the company has suffered from various challenges related to the overall
contamination of the products and which can also lead to the recall of the products in the
market. So, it is important for the company to consider the political factor at the time of
planning the future activities. Political factors are important to be considered as it can help to
fulfill the expectation and also it helps to focus on the legislations and regulations which are
applicable (Ho, 2014).
Economic factor
It is also one of the important factors that can help to determine the overall sales of the
company in the competitive market. The business environment on the global platform has
been hindered by the economic setbacks and it is just because of the downturn and global
recession. These factors have also impacted the overall demand of the products through its
impact on the consumer spending. The rise in the emerging market economies also pretends
the surplus of the buying power and also the economies of scale which enhance the
competitive advantage (Crane et al., 2014).
It has been seen that Nestle has strengthen its competitive advantage by emphasizing on the
overall leverage of huge resource capital and research and development capability into the
overall introduction and redesign of the products (Wang and Li, 2016). Through the
localization of the overall activities in 100 countries on the global platform, the company
focused on managing the overall impact of the foreign currency fluctuations on the import
and export aspects related to trade. So, before planning it is important to focus on the
economic condition so that according to that the products and services can be introduced in
the market (Dembek, Singh and Bhakoo, 2016).
Social factors
When the planning is done it is important to focus on the social aspects as it can help in
maintaining the overall demand of the products in the market. Nestle is dependent on the
overall satisfaction of the customers and also on the desirability of the product that can range
to attain success. The main aim of the company is to focus on the huge spending on the
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competitive sectors so that brand image can be maintained and also product desirability can
be enhanced. It has been seen that competitive advantage in this sector needs continuous
research and development which can also lead to the introduction of the products in the
market. This is one of the strengths which is possessed by the company and also it is the
factor on which the overall activities of the company are based (Grant, 2016).
The customer nowadays is more conscious about the quality of the products and due to this
there is increase in the demand of the healthier products. This is also the factor that affect the
products lines of the company. The company has also focused on various steps related to
acquisition and start up so that it can be easy to meet the demand of the customers and it will
assist in considering the advantage related to market trends and opportunities (Burns, Bush
and Sinha, 2014).
Technological factors
It can be seen that in this the focus is given on the capability of the company. Nestle focused
on various investments related to research and development which enhance overall profits
and also the efficiency of the process. Also, the company focuses on maintaining the
challenges so that quality control can take place. The company focuses on considering the
latest technologies so that it can be simple to maintain the overall productivity level in the
competitive market (de los Reyes Jr, Scholz and Smith, 2017).
Environmental factors
The company is also engaged in various programs which aims to focus on the concept of eco
friendly and also it considers the CSR activities. It can be analyzed that Nestle is criticized
for the weak approach. It is necessary to focus on the environmental factors so that it can be
simple to maintain its goodwill in the market (Bennett and Chorley, 2015).
Legal factors
It can be stated that diverse jurisdictions need to focus on the legal capabilities. So, it is
important to focus on the legal factor as it can help in mergers and acquisitions which can
lead to enter into the new markets.
Ways related to these factors that can impact the marketing activities
There are various ways that can be considered and it can also impact the overall activities
related to marketing. It can be seen that when the government interfere in the activities of the
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companies then it can be difficult to focus on the overall growth. The employment policies.
Tax laws and also trade restrictions can affect the business. Also, to market the product it is
important to consider the overall policies related to tax and employment (Wensley, 2016).
Also, the factor related to economic can impact the marketing of the activities in terms of
exchange rate, inflation and also interest rates. The social factor can also impact the
marketing as it is important for the company to focus on the culture and beliefs of the society.
Also, it is important to consider the latest technology as it impacts the overall productivity of
the company. If there is no productivity then it can be difficult for the company to enhance
the sale in the market. In context to legal factors there are policies which is important to be
followed at the time of marketing and it should be done by emphasizing on securing the
overall environment (Porter and Kramer, 2018). So, these are the ways in which these factors
can impact the overall marketing activities of the company.
Recommendations and conclusion
So, it can be concluded that there are various factors which influences and impact the overall
activities in the business environment. It is important for the company to focus on
considering effective strategies so that it can be easy to survive in the competitive market. It
has been recommended that by considering the overall economic policy the company should
emphasize on reducing the cost of the product by maintaining the quality as it can help in
accomplishing goals and objectives in the business world. If the cost of the products is low
then it can be also easy to enhance the demand of the products in the market.
Also, it can be recommended that strong eco-friendly initiatives should be considered as itcan
help to reduce the negative impact of the environmental factor in terms of the overall profits.
The company should focus on introducing healthy products so that the demand and sales of
the company can be boosted in the competitive market. So, it can be stated that these
strategies should be considered by the company as it can help in accomplishing the targets in
the business environment.
It has also been recommended that company should focus on analyzing the social trend
prevailing in the market. By considering the customer demand and taste the marketing should
be done so that large market share can be grabbed and also it will boost the image of the
company in the market. It is important to focus on the social trends prevailing in the market
as it can help in boosting the demand of the products
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References
Adams, A., Schenker, U. and Loerincik, Y., 2015. Life Cycle Management as a Way to
Operationalize the Creating Shared Value Concept in the Food and Beverage Industry: A
Case Study. In Life Cycle Management (pp. 341-348). Springer, Dordrecht.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Bennett, R.J. and Chorley, R.J., 2015. Environmental systems: philosophy, analysis and
control (Vol. 1448). Princeton University Press.
Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow:
Pearson.
Crane, A., Palazzo, G., Spence, L.J. and Matten, D., 2014. Contesting the value of
“creating shared value”. California management review, 56(2), pp.130-153.
de los Reyes Jr, G., Scholz, M. and Smith, N.C., 2017. Beyond the “Win-Win” Creating
Shared Value Requires Ethical Frameworks. California Management Review, 59(2),
pp.142-167.
Dembek, K., Singh, P. and Bhakoo, V., 2016. Literature review of shared value: a
theoretical concept or a management buzzword?. Journal of Business Ethics, 137(2),
pp.231-267.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley
& Sons.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic
analysis. European academic research, 2(5), pp.6478-6492.
Madhavaram, S., Hunt, S.D. and Bicen, P., 2017, May. The FREE (Firm Resources and
External Environment) Framework as an Alternative to SWOT: An Abstract. In Academy
of Marketing Science Annual Conference (pp. 49-49). Springer, Cham.
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Nestle. 2018. Good food, good life. [Online] Available from: https://www.nestle.in/
[Accessed on 10th December 2018].
Porter, M.E. and Kramer, M.R., 2018. Creating shared value. In Managing Sustainable
Business (pp. 327-350). Springer, Dordrecht.
Wang, Q. and Li, R., 2016. Impact of cheaper oil on economic system and climate
change: A SWOT analysis. Renewable and Sustainable Energy Reviews, 54, pp.925-931.
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107).
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