Marketing Strategies of Nestle

Running head: MARKETING STRATEGIES OF NESTLE
Marketing Strategies of Nestle
Name of the Student
Name of the University
Author Note

MARKETING STRATEGIES OF NESTLE1
Table of Contents
Background......................................................................................................................................3
1. Overview of Nestle’s Corporate Marketing Strategies............................................................3
2. Evaluation of Corporate Level Marketing Strategies of Nestle...............................................6
2.1. Macro Environment Analysis...........................................................................................6
2.1.1. PESTEL Analysis of Nestle..........................................................................................6
2.1.2. Porter’s 5 Forces Analysis.............................................................................................7
2.2. Micro Environment Analysis............................................................................................9
2.2.1. SWOT Analysis of Nestle.............................................................................................9
2.3. Value Chain Analysis of Nestle Marketing Strategies....................................................10
2.3.1. Inbound Logistics........................................................................................................10
2.3.2. Operations...................................................................................................................11
2.3.3. Outbound Logistics.....................................................................................................11
2.3.4. Marketing and Sales....................................................................................................12
2.3.5. Services.......................................................................................................................12
2.4. Stakeholder Management for Nestle...............................................................................13
2.5. Analysis of Nestle Marketing Strategies using ANSOFF Matrix...................................13
2.6. Analysis of Nestle’s Marketing Strategies using Porter’s Generic Competitive
Strategies....................................................................................................................................15

MARKETING STRATEGIES OF NESTLE2
2.7. Using the Suitability Model to Understand the Success of Nestle’s Corporate Level
Marketing Strategies......................................................................................................................18
Conclusion.....................................................................................................................................20
References......................................................................................................................................21

MARKETING STRATEGIES OF NESTLE3
Background
Nestle is a multinational food and beverage company that has its headquarters in the
country of Switzerland. Nestle is renowned for the high quality processing methods that it
utilizes in order to manufacture and launch its products in the market. In terms of revenue as well
as other metrics, Nestle is considered to be the largest company dealing in food and beverage
products in the whole world (Moses and Ambrose 2018). Some of the well- known products that
are manufactured by Nestle include breakfast cereals, bottled water, medical food, baby food, a
variety of dairy products, confectionary, coffee and tea, pet foods, frozen food, snacks and ice
cream. This report enters into a discussion about the corporate marketing strategies of Nestle and
assesses the suitability of such strategies (Moses and Ambrose 2018). For this purpose, the report
engages in macro and micro environmental analysis of Nestle, followed by value chain analysis
and stakeholder mapping. Thereafter the report will me describe and analyze the main corporate
level strategies of Nestle using tools such as Porter’s generic strategy options and Ansoff Matrix.
The strategies will then be evaluated using a suitability model, analyzing how the strategies
match the remote and operating environments, stakeholder expectations and capabilities.
1. Overview of Nestle’s Corporate Marketing Strategies
This section provides a detailed overview of the corporate level marketing strategies of
Nestle as undertaken in the last ten to fifteen years, by using the model of 8 P’s,
Product – The Nestle Company engages in the manufacture of a diverse range of products along
with line extensions and that too in the global marketplace. Both quality and variety is what

MARKETING STRATEGIES OF NESTLE4
Nestle is well known for among its customers, with some of the top brands that are associated
with Nestle being Kit Kat, Nescafe, Nestea and Maggie (Nestle 2017)
Place – Nestle products are usually displayed in malls and supermarkets in major cities and
towns of the world and are also available for sale online. Apart from launching and selling its
products through malls and through super markets, Nestle is a company that also places its
products in college canteens, company canteens and pantries, hospitals as well as in public places
for wide-scale consumption by customers who are young and old, alike (Grant 2012).
Price – The price of Nestle products is something that is dependent on the type and character of
the markets in which these products are being sold. Maggie and Nescafe for instance are Nestle
products that are priced with gross profits that are far higher for the company than that of its
competitors. One reason for this is the fact that the quality of Nestle products is quite high and
skimming prices is something that will likely induce the decision on the part of customers to
switch brands. Pricing intensity level with regard to Nestle is something that stems from the
consumption or the packaging of the product based on pricing (Thompson and Martin 2010).
Promotion – Nestle is a company that is quite well known for its promotional activities. The
Nescafe tune is for instance one of the most widely known product tunes in the world, a tune
associated with an advertising campaign for Nescafe that was launched at least twenty years ago,
or more and which is considered to be one of the finest advertising campaigns until date. The
advertising campaigns of Maggi have been quite innovative and witty. The Take a Break
advertising campaign associated with the Nestle product Kit Kat as well as the website of Kit Kat
is quite innovative in its nature and scope (Nestle 2017).

MARKETING STRATEGIES OF NESTLE5
People – Nestle recruits hundreds and thousands of people all over the world and all around the
year. Training and development is something that Nestle employees are subjected to on a regular
basis, which puts them in a position to better understand handle the queries of customers while
providing better customer service at the same given time (Morschett et al. 2015).
Physical Evidence – Better evidence connectivity is being created by Nestle in the various
countries of the globe where it has a business presence. One way this is being done is through the
creation of coffee counters where the vending machines have a Nescafe logo imprinted on them
(Mintzberg et al. 1999).
Process – The Nestle products are manufactured and processed through the use of the best and
the most advanced technology. For instance, Nestle has come up with its very own vending
machine to cater to customers who like to drink Nescafe coffee on a regular basis (Bharucha
2016).
Positioning – The Nestle brand is one that has grown at a tremendous pace and it has managed to
position its products quite uniquely in the market, as a result of which Nestle products have done
so well. Products are diversified on a regular basis in order to cater the diverse range of the
company’s target audience. Baby food is often packaged in beautifully designed containers in
order to appeal to customers. Image, channel, people, service and product differentiation is
something that the company takes recourse to as often as possible in order to position its
products well enough in the market and make these eligible for purchase by customers in large
numbers (Nestle 2019).