Marketing Essentials: Nestle Company Case Study

This report discusses the significance of marketing and promotion in Nestle Company through a case study. It covers the marketing mix factors, interrelationship with other departments, and comparative analysis with competitors. The report also presents a marketing plan for achieving sales growth.

Unit 2: Marketing Essentials
Table of Contents

INTRODUCTION.................................................................................................................................3
LO1.......................................................................................................................................................3
LO2.......................................................................................................................................................3
Marketing mix factors.......................................................................................................................3
LO3.....................................................................................................................................................10
P4. Marketing Plan..........................................................................................................................10
CONCLUSION...................................................................................................................................13
REFERENCES....................................................................................................................................13
INTRODUCTION
Marketing is defined as promoting company’s products and services in front of the
potential customers of such products. This report is based on the case study of Nestle

Company in respect to its promotional activities. Company was founded in the year 1886 by
the founder Henri Nestle. Company’s headquarter is located in Switzerland. Company is
associated with food processing sector and currently involved in selling all its products all
across the globe. In this report significance of the marketing and promotion in respect to the
company will be discussed. All the key roles and responsibilities associated with the
marketing would be discussed in this report. Inter relationship of marketing department with
other functional departments will also discuss in this report. Comparative analysis of the
marketing mix factors with other competitors would also assess in this report. Furthermore,
report would also produce a basic marketing plan that can demonstrate all different strategies
and activities that can involve in marketing program of company.
LO1
Covered in PPT.
LO2
Marketing mix factors
Marketing mix is an analysis about all different factors involve in company’s
promotional campaigns. Elements like product, price, place, promotion, people, physical
evidence and process. All these factors combine and make different aspects related to
marketing of company. Comparative analysis in the marketing mix elements between Nestle
Company and Unilever Company can be projected in the following manner.
Marketing mix elements Nestle Company Unilever Company
Product Nestle is a multinational food
and beverage company that
posses’ wide product line
such as dairy products,
chocolates and
confectionaries, coffee and
ready to cook , chilled and
frozen foods. Each category
has wide product features
that offers by Nestle to the
Unilever posses four
categories of products i.e.
food, refreshment, homecare,
water purifier and personal
care. This product mix
strategy is quite successful as
compared Nestle. The reason
behind is that company
enable to access large
number of customers and

customer across the world. It
also has used brand equity
model in order to promote
Nescafe and Maggi brand
across the world. These
brandshave earned large
market share in several
countries like India,
supermarkets and others.
Nestle has followed product
mix marketing strategy that
supports to earn high profit
margin on each product
category as well as it enables
to gain competitive
advantage over the period
(Chokshiand et.al., 2016).
improves their purchasing
behaviour by offering wide
variety in it’s products.
Unilever has wide brand
portfolio through which it
enables to generate high
profit margin one each brand
effectively. There are 13
brands through which it earns
I billion euro per year in
multiple countries. It denotes
that unsilver has strong brand
presence in global market as
compared Nestle that’s why
it enables to captured large
market share on it’s strong
brand portfolio.
Price Nestle has followed different
pricing strategy in order to
gain high economical
benefits while maintaining
wellbeing of customers.
Cost-oriented pricing
strategy is followed by
Nestle to sell it’s product in
multiple countries across the
world. With the cost-
effective pricing strategy, it
has established strong
customer base and
encourages them to sell large
number of product on
optimum price. Competitive
On the other hand, Unsilver
has followed pricing
penetration strategy.
According to this strategy,
company offers product at
lower cost with high quality.
With this pricing strategy it
has established strong brand
image in the business market.
Competitive pricing strategy
also follows by Unilever for
gaining highly competitive
advantage on it’s products.
Seasonal pricing strategy has
adopted by Unilever that has
supported company to

pricing strategy also follows
by Nestle that often supports
to gain highly competitive
advantage in the business.
Skimming pricing strategy is
also known as market
oriented pricing that assist
top attract new and existing
customers to buy large
number of products on time.
This strategy often follows
by Nestle during season so
that customers buying power
enhance that in exchange
improves selling revenue of
the business. It denotes
Nestle has followed quite
effective pricing strategy as
compared other competitors
like Unilever.
generate high profitability on
it’s each category (Wierenga,
Althuizenand Chen, 2017
).). For example company
changes it’s product price
accordingly market situation
and sells them to customer on
good cost. Premium ice
creams and personal care
products are the major
category of Unilever that
sells on premium price.
These categories supports
company to gain competitive
advantage over it and to have
better functioning in the
FMCG market
Place Nestle Company engaged in
the business operations at
global level.
Company serve its products
all across the globe.
The global expansion of
company’s business is one of
the key reasons why the
company has become one of
the key player in the field of
food processing sector across
the globe.
Due to its business portfolio
company has been able to
Unilever Company has also
expanded its business across
the globe.
Unilever Company is one of
the big brands associated
with the consumer goods
sector and company has
given tough competition in
food processing sector to
Nestle Company.
Company’s business has
been expanded across the
globe which has allowed the
company to meet the need of

compete effectively with the
Unilever Company.
customers all across the
globe.
Promotion Promotion is all about
promoting company’s
products and services in front
of the potential customers all
across the globe.
Nestle Company gives huge
emphasis over promoting
company’s products at
different promotional
channels (Larkin, 2020).
Company use social media,
internet, search engines,
radio, television, holdings,
email and various other key
promotional drivers that can
make the products trendy in
the market.
All these promotional
channels allowed company to
make the campaign more
diversified at all different
networks.
It can be projected that the
promotions of company is
well diversified as all these
channels and platforms make
the promotions of company
more reliable and more
diversified as compare to the
Unilever Company.
Nestle Company gibe huge
emphasis over new
Unilever Company gives
huge priorities to promotions
of company.
Company usage various
models like social media
marketing, radio marketing,
television marketing, search
engine optimisation, email
marketing and all other
marketing platforms that can
derive the best level of
outcomes of company’s
promotional campaigns.
It can be projected that
among all other key
promotional campaign
company still; give huge
emphasis over traditional
marketing techniques
comprises with radio ad
television marketing.
Company do not give much
priority to the new
promotional techniques like
social media, search engines
and other digital promotions
as compare to Nestle
Company (Matušínská and
Stoklasa, 2019).
It can be projected that
company approach for
promotion is more traditional

promotional techniques like
social media, search engine
optimisation, digital
platforms, email marketing
and other key promotions
techniques that can derive the
best level of results in favour
of the organisation.
As comparer to Unilever
Company marketing
campaign of Nestle Company
is more result oriented and
profitable.
All the approaches and
strategies have supported
company to achieve all
different objectives for
business.
rather than modern form of
promotions as compare to the
Nestle Company.
People People are stated as the target
customers associated with the
company.
Nestle Company give
emphasis over food products
as company is totally
engaged in selling food
products like baby food and
other food products.
Company’s product portfolio
is totally comprises with all
different food items and it is
completely restricts to the
food products.
It can be projected that target
customer of the company is
Unilever Company is
involved in selling multiple
products comprises with
large number of varieties.
As the company is not only
involved in selling food
oriented products it can be
stated tat company carry a
large amount of potential
customers all across the
globe.
Company is targeting all
types of people irrespective
to any specific gender or age
group.
All cultures, tradition and

only the customer that carry
interest in buying food
products (Srinivasan and
Lohith, 2017).
Company is not serving the
vast number of potential
customers as compare to the
Unilever Company.
Company is also offering all
types of products related to
food that involve all types of
people irrespective to any
gender or age group.
Company also give emphasis
to all cultural and traditional
values while doing business
functions.
other types of discriminations
are covered by company with
its products.
It can be stated that
company’s product portfolio
allows company to meet
larger needs of people which
also make the company able
to interact with more number
of potential customers as
compare to Nestle Company.
Physical evidence Physical evidence is also an
important part of the
marketing mix elements.
Nestle Company gives huge
value to its customer’s base
as the company try to meet
all different needs of its
customers and aims to serve
the bets level of customer
experience from its products.
Company give priority to
quality over quantity.
Company meet all quality
standards and also give
freedom to its customers to
physically verify all the
process in the factory of
Unilever Company gives
huge value to physical
evidence in its business
policy.
Company aims to serve the
best level of customer
experience ad also give huge
priority over quality
assurance.
Company has created a
system which allows
company to physically verify
the quality of products and
also conduct physical
evidence in its business
practice (Lorette, 2017).
Irrespective of vast products

company.
Company check the product
quality at all level of
operations to meet the quality
standard and also the
expectations of customers all
across the globe.
Company is also engaged in
selling in food products as
compare to Unilever
Company which also allow
organisation to meet the
quality standards in more
professional manner.
company has achieved the
best level of quality
standards.
Company also allows its
customers to physically
verify the quality standard
marks that have also
improved the trust factor in
all customers of company all
across the globe.
Process Nestle Company follow the
precise process of conducting
research over different
strategic choices, market
research, product research,
evaluation techniques to
conduct the marketing plan.
All this process has allowed
the organisation to achieve
all different objectives of
business.
Company also follow the
STP technique in its
marketing campaigns which
has allowed the company to
achieve the best level of
work experience all across
the globe.
Company follow the standard
process to channelize all
Unilever Company also give
huge priority to follow the
precise process in
channelizing various
operational activities (Reed,
2018).
Company follow the process
like STP, research, strategies,
evaluation and various other
aspects to conduct different
operations of company.
The entire process support
company in achieving the
best level of work
efficiencies in all its
operations of company.

different operations along
with the marketing of
company (Aydın, 2019).
LO3
P4. Marketing Plan
Aim
 To achieve the sales growth of 30%.
Objectives
Company will follow the SMART Objectives for this marketing plan.
Specific: All objectives of company are specific. Company is aiming to boost its sales and
growth rate by 30% (Pandey, 2020). Company is also aiming to improve the brand value all
across the globe.
All objectives like improving customer satisfaction, brand value, sales turnover, profitability
and all other objectives are specific in nature in this marketing plan.
Measurable: All objectives like improved sales and profitability are measurable with the
support of company’s financial statements. It can be measured that company has achieved all
its objectives behind this strategic marketing plan.
Achievable: The objectives of the marketing plan are achievable in nature. Company can
achieve the sales and profitability hike of 30% with the support of this marketing plan.
Realistic: All objectives behind the marketing plan are realistic in nature. Company can
achieve all its objectives with the support of all different strategies planned for this marketing
plan.
Time Bound: The marketing plan will sustain for next one year.
SWOT Analysis
SWOT Analysis is an internal analysis comprises with strengths, weaknesses,
opportunity and threats associated with company.
Strengths:
 Brand value of company.
 Positive market reputations.
 Established loyal customer base.
 Skilled resources of company.

 Digital technology.
Weakness:
 Inexperience in digital platforms.
 Global pandemic like COVID 19 which has restricted the sales potential of company.
 Inflation in economy.
Opportunity:
 Sales growth opportunity.
 Market expansion opportunity.
 Business expansion opportunity.
Threat:
 Aggressive level of market competition.
Strategies
Social media market: Marketing team of Nestle Company will target its customers over
various social media platforms like Facebook, Instagram and other social media applications.
All these platforms will allow company to achieve all its various objectives behind the
marketing plan.
Digital marketing: In this strategy company will target customers over various digital
platforms like Amazon Prime and various other digital networks. All the platforms will allow
company to target customers over these digital platforms (Alao and et.al., 2017). This
strategy would allow company to address to millions of active customers over all these
platforms call as OTP.
E mail marketing: In this strategy company will target customers over email. Company will
give attractive offers to its customers over email (McNutt, 2016). All the existing customers
of Nestle Company will be targeted in this strategy by giving discount coupons and various
other benefits like gift vouchers and other advantages.
Search engine optimisation: Company will use search engine optimisation in this plan. This
strategy involves improving company’s ratting over various ecommerce platforms to improve
the brand value in market. This strategy is a strategic approach to improve the company’s
sales in market.
STP Analysis
Segmentation: Company is using demographic segmentation in this strategic marketing plan.
This would allow company to cover all types of customer base in its marketing approaches.
Company always follow this segmentation process to achieve the success of company’s
marketing direction.

Targeting: Company will target its customers over social media platform, digital platforms,
search engines and other source of entertainment in this strategic marketing plan. All these
approaches would allow company to achieve all its objectives and aim behind the strategic
marketing plan.
Positioning: Company will position its products over social media and different over the top
platforms to achieve the massive success in this strategic marketing plan of company.
Control and evaluation
Company will channelize various tricks like Google analytics, sales analysis to assess
the success of its strategic marketing plan. Company will control and make changes in
strategic plan with the support of its evaluation methods. Control and evaluation would allow
company to make necessary changes in strategic marketing plan of company so that more
outcomes can be generated with the support of strategic marketing plan of company.
Budget
Company has set a budget of £ 500000 Pound for this marketing plan.
CONCLUSION
This report have projected different aspects like significance of marketing operations
like improving brand value of company, enhancing growth of company and various other. 7
Ps analyses have been done on the basis of product, price, place and all other elements of
marketing mix. Company will follow different strategies like social media, digital marketing
and all other strategies in its strategic marketing plan.

REFERENCES
Books and Journals
Alao, A. E and et.al., 2017. Strategic Marketing and Competitive Performance: An Empirical
in Ogun State, Nigeria. World, 8(1).

Aydın, K., 2019. Strategic marketing techniques in service sector.
Chokshi, P and et.al., 2016. Perception of Consumers towards Cadbury and Nestle. Asian
Journal of Research in Marketing, 5(6), pp.8-27.
Larkin, T., 2020. A Dissertation of Practice of Superintendents’ Perceptions on the Strategic
Marketing of K-12 Public Schools (Doctoral dissertation, Lamar University-
Beaumont).
Lorette, K., 2017. A Situational Analysis of a Strategic Marketing Plan.
Matušínská, K. and Stoklasa, M., 2019. The State of Strategic Marketing Application in
Czech Small and Medium-Sized Enterprises. Scientific Annals of Economics and
Business. 66(2). pp.193-212.
McNutt, J. G., 2016. UAPP 674/474-Strategic Marketing and Fundraising for Nonprofit
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Pandey, N., 2020. Corporate Social Responsibility (CSR) as a Strategic Marketing
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Srinivasan, R. and Lohith, C. P., 2017. Strategic marketing and innovation for Indian
MSMEs. Springer Singapore.
Wierenga, B., Althuizen, N. and Chen, B., 2017. Managing the supply and demand of
creativity. RSM Discovery-Management Knowledge, 31(3), pp.17-19.