Nestle: World's Largest Food Company with a Diverse Range of Quality Products

Nestle, the world's largest food company, has a rich history and a wide range of products, including baby food, coffee, dairy products, and more. The company focuses on product quality, packaging, and labelling to satisfy customer needs. With a strong market position and competitive advantages, Nestle's brand equity is reflected in its impressive revenue and sales across various categories. The company's commitment to total quality food ensures sustainability and business success in the FMCG industry.

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Table of Contents
Part-A.........................................................................................................................................2
Introduction............................................................................................................................2
Brand attributes......................................................................................................................3
Positioning..............................................................................................................................4
Estimation of brand equity.....................................................................................................6
Description of target market...................................................................................................7
Competitors, threats and outlook............................................................................................8
Sample marketing material.....................................................................................................8
Summary.................................................................................................................................9
Part-B.......................................................................................................................................10
Objectives.............................................................................................................................10
Target market........................................................................................................................10
Media selection and justification..........................................................................................10
Media schedule.....................................................................................................................11
Estimated media costs..........................................................................................................11
Campaign success criteria and measuring methods.............................................................12
Bibliography.............................................................................................................................13
Appendix..................................................................................................................................15

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Part-A
Introduction
Nestle is a food company located in Switzerland which is headquartered in Vevey,
Vaud. Nestle is the largest food company in the world, and the reputation of the company in
terms of revenue earned per year. Nestle was founded in 1866, about 153 years ago. The
company was called as the Anglo-Swiss Condensed Milk Company as it was formed as a
merger in the year 1905 (Nestle.com 2019). The company was named Nestle after its founder
Henri Nestle who along with the Page brothers, Charles and George.
The significant growth of the company was seen during the first year and after the
Second World War, the company decided to expand its product range beyond condensed milk
and infant formula products. Over the course of its success, Nestle have managed to make
various acquisitions that includes companies like Crosse and Blackwell in 1950, Findus in the
year 1963, Libby’s in 1971 and many more (Nestle.com 2019). It also managed to expand its
company beyond the borders of Switzerland and currently serves in areas all around the
world.
Nestle consist of over 2000 brands and some of the significant products that are sold
by Nestle include baby food, coffee, dairy products, breakfast cereals, ice cream and many
more. The market capitalisation of Nestle can be estimated at 231 billion Swiss francs
(Nestle.com 2019). The research and development investment made by the company for
enhancing the product quality can be estimated at about 1.63 billion. This accounts for net
profit worth of 14.46 billion which signifies the success that the company have in the market
(Nestle.com 2019).

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Apart from acquisition of products, Nestle have managed indulge in joint ventures
and have been successful throughout. For example, the company indulges in a 50-50 joint
venture with General Mills for Cereal Partners in a worldwide basis. At the same time, it
consists of joint venture with Coca Cola for providing beverages worldwide (Nestle.com
2019).
Brand attributes
The official slogan adopted by Nestle is “Good food, good life”. (Refer to appendix
for logo)
As stated by Sasmita and Suki (2015) designing products need to be done based on
the benefits that it may provide to the customers. Therefore, the satisfaction of the customers
need to be taken into account while manufacturing a product and launching it to the world.
Product quality usually refers to the product so that it can perform its functions. In the case of
Nestle, the company provides a wide variety of products and with it the packaging formats
and styles comply with the quality of the products and the requirements of the customers.
Barreda et al. (2015) pointed out that one of the attributes of Nestle is that it focuses
more on the packaging of the products so that it can gain the interest of the customers. It also
takes into consideration any type of sustainable factors that may have a negative impact on
the development of the company. Apart from this, another attribute that Nestle focuses on is
the labelling of the products. The importance of the labelling is that it helps in displaying the
brand name or provides information about the product (Lambert-Pandraud et al. 2017).
The satisfaction of the customers can be attained if the company manages to provide
relevant information about a product and ensure that it reaches the target market in an
efficient manner. The labelling also helps in the promotion of the product and allows
customers to choose the correct product. Therefore, it can be said that such attributes as well

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as detailed analysis of the requirements of the customers is the main reason for the success of
Nestle. Apart from the quality of the products, the manner in which it is made presentable to
the customers also helps customers to recognise the brand.
In this regard, the value of the company can be taken into account. It has been seen
that the company indulges in shared values that involve both sustainability as well as
compliance. According to Newmeyer et al. (2018), the two values are considered as
important ways by which the company can mitigate any risks in the business. The
sustainability value helps in the reduction of costs and the value of compliance provides the
company to remain competitive in the market.
Positioning
As stated by Balmford, Borland and Yong (2016) it is important for a company to
analyse the environment around it so that it can develop strategies based on the factors that
affect it. The competitors and the external environment like the political factors prove as
major areas that need to be focused on for the improvement of the business. In this regard, the
positioning of Nestle can be taken into consideration with an emphasis on the competitive
advantage it may have in the market as well as the target market. These bases can help in
determining the position of Nestle after having compared it with its rivals.
The target market that is taken into account by Nestle involves undifferentiated,
differentiated as well as concentrated. This is mainly because with over 2000 brands of
products, Nestle aims to provide quality food opportunities to every people in a society
(Nestle.com 2019). For example, the fact that the company provides baby food as well
suggests that babies are also the target market of the company which can be categorised
under the concentrated form of target market.

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Nestle
Pepsico Kraft
High price
Low price
Low quality High quality
Heinz
Hersey’s
Unilever
Con Agra
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It has been seen that the USP of Nestle lies in the new product that it has developed in
the market (Wang et al. 2016). The USP of the company can be the chocolate products as
various innovative manners can be used for the manufacturing of the chocolates. For
example, the introduction of chocolate covered wafer of KitKat can be considered as a major
USP for the development of the company.
Along with this, Nestle can take into consideration the competitive advantages that it
may gain the market. For example, some of the competitive advantage factors that can be
gained by Nestle include being an overall leader in the marketing position and having a large
scope of opportunity relevant to the economies of scale. Foroudi (2019) pointed out that the
research and development of the company help it to innovate and provides an opportunity of
remaining flexible in the market. Taking these characteristics into consideration, a position
map of Nestle can be provided.
Figure 1: Positioning of Nestle
(Source: Nestle.com 2019)

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Estimation of brand equity
The financial value of Nestle is the considered as one of the richest in the world. The
revenue of the company has been valued at CHF 89.791 billion in the past year (Nestle.com
2019). It is the second largest company in Switzerland in terms of revenue collected as well
as in terms of net income. However, the operating income as well as the net income had seen
a drop during the last financial year. Results show that the operating income of Nestle had
dropped to CHF 10.11 billion while the net income had also been CHF 7.538 billion
(Nestle.com 2019). Some of the brand equity products that can be considered as per sales per
category measured in CHF is provided.
Amount Product
20.3 billion Powdered and liquid beverages
16.7 billion Milk products and ice cream
13.5 billion Cooked dishes
13.1 billion Nutritious and healthy food
11.3 billion Pet care
9.6 billion Confectionary
6.9 billion Water
Table 1: Sales of Nestle
(Source: Nestle.com 2019)
The trends in the brand value of Nestle are considered as the best as the company
aims only at customer satisfaction. The corporate brand performance of the company makes
the company a success in the FMCG industry. As stated by Alhaddad (2015) Nestle provides
total quality food and with it helps in the development of business sustainability. Therefore,

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the core concept of Nestle about good food and good life is the trend that is followed for the
development of the brand in the market.
In this regard, the competitors of the company can be analysed and comparison can be
made about the differences that exist between Nestle and its competitors. For example, the
closest competitor of Nestle is considered to be Kraft as it provides and replicates the
products offered by Nestle. Apart from this, Nestle faces stiff competition in the chocolate
manufacturing department from Cadbury (Nestle.com 2019).
Description of target market
According to Saleem, Rahman and Umar (2015), it is necessary to consider a target
market so that companies can understand the type of products and services that it needs to
undertake. For a reputed organisation, the target market can be based on the type responses
and the factors that affect the business. In the case of Nestle, it has been see that the company
owns more than 2000 brands (Nestle.com 2019).
Therefore, it is necessary that the company analyses its products qualities before
indulging identifying a target market. As pointed out by Schivinski and Dabrowski (2015)
Nestle focuses on three types of target market namely the undifferentiated, concentrated and
differentiated. These three types allow the company to remain flexible so that it can maintain
its competitiveness in the market. For example, the fact that Nestle indulges in selling baby
products points to the fact that the company indulges in a concentrated target marketing
strategy such as developing a specific brand of product for a specific age group.
At the same time, the chocolates like Koko Krunch or Nesquick targets the people
that prefers to get the taste of chocolate with their milk. This signifies the differentiated target
marketing strategy of the company as it provides an idea about the different needs of the

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people. Hence, it can be said that eyeing a fixed target market cannot be considered by Nestle
if it aims to build upon the reputation it has in the market.
Competitors, threats and outlook
Some of the major companies that may provide a threat to Nestle include Pepsico,
Cadbury, Hersey’s, Unilever and so on. The threats provided by these companies can be
considered as high as the products offered by the companies are similar to Nestle. However,
one of the areas in which Nestle excels over the competitors is in the quality and the range of
products that the company possess. For example, the number of products sold by Nestle can
be attributed as more than companies like Cadbury or Hersey’s.
This is mainly because Hersey provides chocolate syrup to the customers who can
consume it in foods such as ice cream or any other solid edibles. However, Nestle provides
chocolates like Koko Krunch that can be consumed with milk. Therefore, it can be said that
the overall outlook of the company based on the positioning and the target market can be
considered as positive as Nestle provides high quality of products. However, one of the
considerations that Nestle need to consider is the fact that it needs to reduce its prices
(Romaniuk, Wight and Faulkner 2017).
For example, the revenue of Nestle about 8 times more than Cadbury (Nestle.com
2019). This indicates the fact that the company sells its products at a higher rate than its
competitors. Hence, it can be said that for Nestle to succeed in the competitive market, the
prices need to drop.
Sample marketing material
Some sample marketing materials that are used by Nestle for the promotion of its
products are provided:

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Summary
Based on the analysis, it can be said that Nestle is one of the biggest FMCG
companies in the world and based on the reputation of the company, it can be said that the
company does not face stiff competition from other competitors such as Kraft or Cadbury.
The financial analysis of the company shows that the revenue earned by the company
possesses the ability to innovate and remain at the top of the FMCG industry for a long

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period. It can also be seen that the target market of the company is huge and fluctuates with
the requirement of the products of the customers.
Part-B
Objectives
The objective of the media coverage is to cover a wide range of customers so that the
products and services offered by Nestle can expand. The message will be to consume the
products offered by the company so that a healthy as well as a tasty experience in terms of
food can be gained. The coverage is to be done using television, radio, print, digital as well as
using banners and posters. The frequency of occurrence of the messages can be done on a
weekly basis every month.
Target market
The target market of Nestle needs to be addressed with the help of the media plan. It
has already been seen that Nestle targets its customers in three broad categories that includes
the differentiated, undifferentiated and concentrated manner. The target market are analysed
based on the products and services provided by Nestle and the responses that are provided. In
this case the promotion of a new brand of KitKat chocolate with more waffled layer is in
focus. The target market in this case is people belonging to an age range of 15-25 years.
Media selection and justification
As stated by Sharifpour et al. (2016) proper selection of media can help in an
effective promotion of a product or company. In the case of Nestle, the promotion of the new
flavour of KitKat can be done by using media sources like television, radio, newspapers,
Facebook and banners on roads. The reason for the selection of these media channels is that it
can help in reaching the target audience throughout the country. Chanel 9 is one of the most

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viewed sporting channels in the country. Therefore, promoting the product via the channel
can help it to reach the target market at a rapid rate. At the same time the use of Facebook in
the modern days can be considered as a trend and Nestle can use it to reach people not only in
Australia but also throughout the world.
Media schedule
The media schedule can be made as per the viewership and the responses provided by
the people in various media. For example, launching a 30 second advertisement via
television, radio or in the form of a video via social network can be made to reoccur regularly
every week during any of the shows that are on display. This can increase the possibility of
the target market to view or listen to the advertisement at any time even though they may
miss it on the first few times.
Estimated media costs
The estimated media cost for the promotion of the product can be broken down into:
Factors Cost (AUD$)
Television 20,000
Radio 10,000
Print 15,000
Digital 5,000
Outdoor 10,000
Total 60,0000
Table 2: Media costs
(Source: Nestle.com 2019)

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Campaign success criteria and measuring methods
Media success can be determined by analysing the quantity of the products that have
been sold per month. For example, the target of Nestle is to sell 200 KitKat packets in a
month and if 100 KitKat packets are sold in the first 15 days, and the remaining 15 days sees
sale rate of 110 packets, then it can be said that the media scheduling is a success. At the
same time, in case of failure to reach the target market, the company need to develop
contingency plans like trying to increase the frequency rate or the length of the advertisement
from 30 seconds to 1 minute.

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Appendix
Nestle logo