Marketing Analysis: Nestle's Functions, Structure, and Environment

This report provides a comprehensive analysis of Nestle's marketing operations. It begins by outlining the role of marketing functions within a business and contrasts it with the structure of a marketing department, using Nestle as a case study. The report then delves into the marketing process, emphasizing the importance of the marketing environment, including political, economic, social, and legal factors. Furthermore, it explores the interrelation of the marketing function with other departments within the organization, such as operations, human resources, and finance. The report concludes with an overview of the key findings and references cited, offering insights into Nestle's marketing strategies and their impact on the company's overall performance.

Marketing
Essentials

Table of Contents
Introduction......................................................................................................................................3
(1) The role of marketing function of the business opposed to the marketing department of the
company. .........................................................................................................................................3
(2) The Structure of marketing department and the description of two marketing roles. ...............5
(3) Overview of Marketing process and the importance of marketing environment over
marketing function...........................................................................................................................6
(4) Interrelation of marketing function with other department in the organization.........................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

INTRODUCTION
The actions being undertaken by the business to promote the buying and selling of a
product or service is termed as marketing. These activities include advertising, selling and
delivering of products to consumers or other businesses. The organization being chosen for the
observational study of marketing essentials is Nestle Plc. Nestle is the world's largest FMCG
company based out of Vaud, Switzerland. Nestle deals in wide variety of food products such as
Baby foods, coffee, tea, dairy products, Maggie and many more varieties of packed foods. Nestle
has its operations in 194 countries all over the world with an approximate 450 functional
factories consisting of 339,000 people working in it. The report will highlight on general
marketing function and marketing department of Nestle, its marketing structure, the company's
marketing process and the interrelation of marketing department with other departments (Baker,
2016).
TASK 1
The role of marketing function of the business opposed to the marketing department of the
company.
Role of marketing functions in business, involves following components/ functions-
 Marketing Research- IT is one of the important function of marketing as it involves
finding out the target consumers for your products and other marketing conditions of
particular market. This function focusses on the activities such as finding out what
consumers want, what are their needs and what are the current trends in market. It also
involves checking out competitor’s strategies and products in market (Kotler and et.al.,
2015).
 Exchange function- This function involves buying and selling of products in the market.
It mainly ensures whether the firm's output and offerings are available in sufficient
quantities to meet consumer's demands. It includes functions such as advertising, selling
and promotions.
 Quality control and risk taking- Quality control function refers to maintaining and
unique and satisfying quality in order to attract the consumers. Risk taking involves
designing different products that customers may in future.

 CRM- Customer Relationship Management is the most important function of marketing
as it involves pre sales counselling, after sales services to the customer, handling their
grievances and complaints.
Marketing department of Nestle focusses on the following functions-
 Research and development function- Nestle has many FMCG competitors in the
market, hence the company performs timely market research in order to understand the
market conditions and customer needs and demands. Nestle initiates this function through
customer feedbacks, market survey of customers and many more.
 Exchange and distribution functions- Nestle has always come up with unique
marketing ideas, the company mainly focusses on advertisements and marketing of its
individual brands such as Nescafe, Maggie etc., rather than marketing of its entire
company. The company follows line marketing strategy to conduct the promotions of its
products. Also Nestle uses media like TV, hoardings, online ads etc. for its products.
 Quality control - It is the most important function that Nestle focusses on.
Comparatively the prices of Nestle products are higher than other substitute products
brands, this is because the Nestle provides best quality of its products than any other
brand. Customers prefer to pay the extra difference amount due to the quality factor of
Nestle, hence the company turns more into it (McDONALD, 2016).
(2) The Structure of marketing department and the description of two marketing roles.
The marketing department of Nestle introduces many roles and functions to support the
promotion of the company's products. Nestle marketing department consists of- A high level
executive manager known as Marketing president, establishes the strategies and overseas
operations of the marketing team. The president manages the entire team which consists –
Product manager, Advertising manager and Public Relations manager. Each manager organizes
the different executive’s staffs to his or her tea in order to perform the work. Advertisement
manager of Nestle have the team of different specialists to create the advertisements in different
media being the main promotional strategy of Nestle. The product department coordinates with
the sales executives in his team to get information regarding the product sales in the market. The
public relations manager assigns the executives to handle the different complaints and queries of
the customers regarding the product quality and taste and reports to the higher authority of the

marketing department of Nestle. Accordingly all the managers follows the president's
instructions and accordingly report him after the performance of tasks.
Marketing Roles of Nestle marketing executives-
 Chief Marketing Officer/ Marketing president- This person is mainly responsible for the
entire marketing and promotional activities of Nestle. The president frames the marketing
plan and strategies of Nestle company. He is the person who organize all activities related
to the marketing department and assign to different executives such as Product manager,
Advertising team etc. The conceptual function of marketing and decision regarding the
market expansion and all other related decisions are being approved by the President of
marketing department.
 Advertising manager- Nestle has its backbone on media advertisements of its individual
products in relation to promotion and marketing activities. Thus the advertising manager
plays an important role to implement products identification to people and creation of
brand in market through his creative aspects. Nestle spends huge amount on its
advertisement activities, so it is an important responsibility of advertising manager to
initiate efficient efforts for gaining best positive results for Nestle.
(3) Overview of Marketing process and the importance of marketing environment over
marketing function.
Marketing process of Nestle includes the ways for creation of values for the customers to
satisfy their requirements. In this process, situation is being observed to identify different
opportunities, strategy is being formed, various decisions are taken, plan is executed and results
are being monitored(Krush and et.al).
Analysis of situation- In this company is engaged in analysing the various situation or trends
pertaining in the market.
Formation of strategies- After analysing situation, various strategies related to price, product
and promotions are being formed.
Decision making- In this stage decisions are being taken
Implementation- In this plans are being implemented.
The following factors of the marketing environment affects the marketing function of Nestle-

Political factors- Nestle has been operating in 194 countries world wide. The company has
expanded its market share in vast proportion and in different regions. The different political
factors such as tax laws, trade restrictions and other rules and regulations by the government of
specific country can lead to instability of market function of Nestle.
Economic Factors- these factors compliances of inflation rates, exchange rates pf the countries
and various other cycles of economies. Nestle marketing team can be affected by the revenue and
profit earned behind each product depending on the exchange rates of the country and a
particular profit margin set according to the disposable income of the consumers.
Social Factors- Nestle advertises its products according to the emotions of people in a particular
society. For example Nestle Maggie was being advertises with the tag line of preparing it in 2
minutes, this attracted the minds and interests of the mothers and as well as working youths who
are busy in their daily schedule. So in this way marketing was being done on the basis of
consumer's emotions, attitudes etc.
Legal factors- These factors consist of different labour laws, consumer protection laws, trade
unions etc. Nestle has 339,000 employees working for it, all over the world. The various laws
regarding the employees and the function of Customer relationship management is being affected
by these different legal factors (Malhotra, 2015).
Analysis of the importance of marketing environment to marketing function
Internal customers, suppliers, etc. combine to make the micro-environment of an organization.
Organization to deliver a good final product needs to develop and maintain strong relationship
with vendors and external agencies. Therefore, it is important for organization to maintain
continuous analysis of ever-changing micro-environment. They hire effective employees in
organization with the help of marketing
(4) Interrelation of marketing function with other department in the organization.
Give a brief introduction of task.
Marketing interrelation with Operations department- There is a direct relationship
between Marketing and operations department of Nestle. As the company is concerned with wide
range of product line all over the world, the marketing department completely depend on the
available units from operations department. Similarly, the demand for the products generated by
the marketing analyst of Nestle, informs the operations department to produce certain sum of

units as being demanded by the consumers. So in this way the marketing department coordinates
with the operations department to meet out the objectives of the firm.
Marketing interrelationship with Human resource department- In order to implement
the effective marketing strategy for Nestle products, Marketing department needs skilled and
efficient persons for the job, so that it can meet out the targets for the company. HR department
does the work of Recruitment and selection of employees that possess best skills required to
fulfil the Marketing objectives for Nestle. HR department also conducts training and
developments of these employees to polish their skills and match them according to their job
specification.
Marketing Interrelationship with Finance department-
Nestle as consists a huge product line, needs to set the competitive prices and allot sufficient
budget for performing various marketing and promotional activities. These activities are being
performed by Financial department as according to the demand of Marketing department. All the
expenses and budget for advertising are been prepared and initiated by the finance department.
Thus The marketing unit of Nestle has to be in touch with the finance department so as to
implement its strategies through availability of financial resources (Patil and Bach 2017).
CONCLUSION
From the above information it is being observed that what are the different functions and
roles being performed by the marketing unit of an organization. It is being noted that the
marketing function helps organization in economic growth. Further it is observed the factors that
create impact on marketing department of an Organization and marketing interrelation with other
functional units of the Organization.

References
Books and Journals
Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
Jones, D.B. and Tadajewski, M. eds., 2016. The Routledge companion to marketing history.
Routledge.
Kotler, Pand et.al., 2015. Marketing. Pearson Higher Education AU.
Krush, M.T and et.al., 2016. What Marketing Strategy Matters? Examining a Contingency
Model of the Relationship Between Marketing Performance Management and Business Unit
Performance. In Marketing Challenges in a Turbulent Business Environment (pp. 321-322).
Springer, Cham.
Malhotra, N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book(pp. 108-142). Routledge.
Patil, D.D. and Bach, C., 2017. Marketing-Mix For Strategy Building. Marketing. 4(4).