Nestle's Growth Strategies: PESTLE, STP, & Marketing Mix Analysis

This report provides a comprehensive analysis of Nestle's business growth strategies, employing frameworks such as PESTLE and STP to evaluate the external and internal factors impacting the company. It examines Nestle's market segmentation, targeting, and positioning strategies, particularly focusing on its vegan chocolate bar. The report also assesses Nestle's competitive landscape using a perceptual map and explores growth strategies using the Ansoff Matrix, highlighting product development as a key approach. Additionally, it delves into buyer behavior and the marketing mix elements, offering insights into how Nestle maintains its market position and caters to evolving consumer preferences. This analysis aims to provide a thorough understanding of Nestle's business mechanisms and strategic approaches in the consumer market.

Written piece business
growth strategies

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis...................................................................................................................3
STP Analysis..........................................................................................................................5
Perceptual Map.......................................................................................................................6
Growth Strategies...................................................................................................................8
Buyer Behaviour...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
The business environment is generally described as sum or aggregate of internal as well
as external factors and aspects which result in impacting upon operations and activities carried
out by a business entity. For instance, primary and major of these factors include industry or
market trends, government policies, market competition, technology, etc. which result in
influencing as well as affecting business operations and activities. Nestle is among the world’s
largest business organisations engaged in manufacturing and serving food and beverages in the
consumer market. Moreover, the respective organisation is headquartered in Vevey, Switzerland
while serving their products and services worldwide. Nestle V has a bar of certified vegan
chocolate which is made with sustainable Cocoa and rise-based alternative instead of milk. This
report assessment will provide an understanding of business mechanism of respective with the
application of various different frameworks (Chadraba and Springer, 2020). Furthermore, it will
facilitate in identification and determination of factors affecting business operations as well as
strategies of respective company in order to market their products.
MAIN BODY
PESTLE Analysis
This analysis is generally defined as a framework taken into consideration in order to
identify and determine external factors in the business environment which result in a positive or
negative impact upon a particular business organisation. In addition to that, factors determined in
this framework are further classified into several categories which are as follows:
Political Factors
 Changes in government policies: Business organisations in an economic nation are
majorly influenced and affected by government regulations and policies in that particular
geographical location. In order to ensure smooth functioning of business operations,
Nestle has to be abide by government policies in that particular geographic location.
Furthermore, negligence of these policies and regulations could result in serious issues
and challenges to respective business organisation.
 Brexit: The situation of Brexit resulted in a wrench in the strategic plan of respective
organisation as Europe is one of the most important markets for Nestle. For instance,

uncertainty and instability during the phase of Brexit emerged into various barriers to
operations and activities of respective company (Ji, and et. al.,2018).
Social Factors
 Attitude & Preferences of customers towards diet: Preferences and attitude of people
in society has been shifted towards nutritious and healthy diet. For instance, it will
facilitate Nestle in attracting higher amount of customers towards their Vegan product
with low concentration of fats. Therefore, it has been considered as positive external
factor which contributes additional values towards organisational success and growth.
 Negative impact of allegations: Nestle has been a part of major controversies over
extraction and use of excess drinking water in their operations. For instance, respective
organisation has been claimed to be using excess drinking water and leaving behind
polluted out of it which has adverse effects upon various different locations including
Canada, Flint, Mich, etc. Though products offered by respective organisation is still
preferred but the company itself is not preferred by customers in society due to these
allegations and claims.
Technological Factors
 Research & Technology: With the advancement of technology and increasing usage of
the internet, business organisations have access to essential information and knowledge.
For instance, Research & Development department of Nestle further facilitates in
gathering necessary information including upcoming market trends, consumer
preferences, opportunities, etc. In addition to that, information gathered and analysed
through research and development of respective organisation further contribute towards
fulfilling consumer demands and leads to innovation of products.
 Digital Industrial Revolution: The existing era of digital revolution is resulting in
changes in buying behaviour and attitude of customers. For instance, people are
determined at verifying quality of products and services through IoT (Internet of Things)
prior to their purchase. It creates a necessity for businesses to adapt these changes in
order to ensure organisational success and growth. Furthermore, Digital marketing
practices are determined as primary consideration to be taken into account in carrying out
marketing activities and practices (Jiang, and et. al., 2020). Therefore, lack of this

initiative could lead to inefficiency of respective organisation in achievement of
organisational goals and objectives.
STP Analysis
STP Analysis is determined as framework or model which facilitates business entities to
prioritising their prepositions in order to deliver specific products and services to target market
with consideration of most suitable and efficient strategies. Moreover, this procedure is
comprised of various steps including Segmentation, Targeting, and Positioning.
Segmentation
 Demographic: This approach of segmentation includes grouping up people on the basis
of similar individual characteristics including gender, income, education, age, etc.
 Geographic: It includes grouping up of people on the basis of the geographical location
they are residing in.
 Behavioural: This approach of segmentation is oriented upon grouping up of people on
the basis of their preferences and attitude towards consumption of specific products and
services (Keller, 2018).
 Psychographic: It includes segmenting or grouping customers in groups on the basis of
their psychological characteristics including lifestyle, interests, personality, social status,
etc.
As the respective organisation is determined at serving Vegan products to customers in
market, Behavioural segmentation has been taken into consideration in order to segment
customers in the market. For instance, it will facilitate Nestle in focusing upon their target group
of customers in order to fulfil customers’ needs and demands. Furthermore, this segmentation
approach is determined by preRicci, S., Janout, V., Parker, S., Jerabek, J., Hajny, J.,
Chatzopoulou, A. and Badonnel, R., 2021, August. PESTLE Analysis of Cybersecurity
Education. In The 16th International Conference on Availability, Reliability and Security (pp. 1-
8).ferences and behaviour of customers towards consumption of products offered by respective
organisation. Therefore, this consideration of segmentation will be further considered in
designing and developing efficient marketing strategies.
Targeting
Referring to Nestle, respective business organisation is aimed at serving their innovative
Vegan chocolate bar to customers looking out for vegan food products. For instance, with the

consideration of behavioural segmentation, group of customers with preference of Vegan food
products is determined as target audience for respective organisation. With the increase in
awareness for health consciousness and nutritious diet among people in society, customers are
looking out for available options for nutritious and delicious Vegan food. Furthermore, it will
facilitate respective business organisation in increasing their sales of innovative product by
offering them to target customer base. In order to conquer this opportunity, respective business
organisation designs and develops efficient strategies in order to be implemented in carrying out
business operations (Lopez, and et. al., 2021). Therefore, primary considerations of Nestle in
developing suitable strategies includes specific product and target customer base of respective
organisation.
Positioning
This stage or step is determined as development of desirable brand image in the mind of
customers. For instance, it revolves around competitive advantage associated with respective
business organisation which facilitates in ensuring upright brand image in consumer market.
Referring to respective organisation, Nestle is determined at maintaining higher market
position by providing customers with quality products at lower prices. For instance, it facilitates
in attracting maximum amount of customers towards products offered by respective as well
retaining existing customer base towards the same. Safe and efficient transportation is another
major consideration of company in order to ensure easy reach of customers to products offered
by Nestle. The brand logo of Nestle itself highlights care which results in being a reason for
attachment of customers towards their products.
Perceptual Map
Nestle is among major business organisations engaged in manufacturing of food products
and beverages. For instance, primary competitors of respective business organisation includes
Mars, Unilever, Mondelez, general mills, etc. In addition to that, Nestle hold a strong market
position by serving a higher amount of customers in consumer marker. All these business
organisations are operating at with large scale operations with global presence in almost every
country in order to serve maximum possible customer base. Furthermore, these business

organisations are competing over quality of products and service offered to customers according
to price of specific food product or beverage. Being operating in similar industry or sector of
business environment, there is a huge competition in food industry with involvement of these big
market players (Minto-Coy, 2019).
Referring to above mentioned perceptual map, it shows market position of various
business organisations engaged in Food manufacturing industry. For instance, the determined
perceptual map has presented their market position on the basis of quality of products as well as
price charged for the same. In addition to that, the upper half of perceptual map is comprised of
high price of products where upper left quarter is for products with low quality and upper right
quarter is for products with high quality. Nestle and Mars are determined as business entity
engaged in serving quality products at higher prices. On the other hand, other competitors are
presented in particular quarters according to quality of product they offer and price charged for
the same.

Referring to above perceptual map, it could be determined that it shows market
positioning of several companies engaged in similar market industry. For instance, this particular
perceptual map is presenting market position of these brands on the basis of taste of products and
ingredients used in producing the same. Furthermore, Upper half is presenting business
organisations engaged in serving products to customers with good and upright taste. On the other
hand, lower half of perceptual map is presenting business entities engaged in serving products
with poor taste. Nestle has been positioned in the upper right quarter as it served food products
with great taste at a higher price.
Growth Strategies
Ansoff Matrix
This strategic framework is taken into consideration by business organisations in order to
analyse and determine their growth and development strategies. For instance, this framework or

model is comprised of a grid which presents various growth strategies that further helps a
business entity in growth and development (Ricci,and et. al., 2021).
 Market Penetration: This strategy is aimed and focused at increasing sales of existing
products and services in existing market. For instance, primary and major measures taken
into consideration in this strategy includes reducing prices of products, additional
investment in promotional activities, and acquiring a major market competitor.
Furthermore, all these positive initiatives taken into account by business organisations
facilitates in attracting additional customer base towards products offered by them.
 Product Development: This strategy revolves around designing and developing new and
innovative products in order to introduce them into existing market. For instance, it
includes increasing investment in R&D department in order to develop desirable product
to be offered to target customers. In addition to that, another major consideration in this
strategy includes building partnership with other firms in order to attain access over
distribution channels of other business entity.
 Market Development: This growth strategy is focused at entering into a new market
with existing products of particular business organisation. For instance, it involves new
geographic markets and customer segments in order to increase customer base for
existing products of respective organisation (Rostek, 2019).
 Diversification: This growth strategy is aimed at entering into a new market with
introduction of newly developed products. Moreover, this strategy has a higher growth
potential it opens up an new and additional revenue stream for a particular business
organisation.
As the respective organisation is already engaged in manufacturing of food products,
Product Development has been determined as most suitable growth strategy. For instance, it will
facilitate growth of Nestle with introduction of their Vegan chocolate bar to their existing
customer base. With the access to information and knowledge through R&D, respective
organisation has been able to develop desired product in order to fulfil customer demands.
Marketing Mix
 Product: In order to pursue product development growth strategy, Nestle V has been
determined as newly developed product made up of vegan ingredients. For instance, it
will allow company to serve customers looking out for vegan food products.

 Price: With premium quality of product and use of Vegan ingredients, price skimming
strategy could be taken into consideration which facilitates in higher profit margins to
respective organisation.
 Promotion: The idea and purpose behind introduction of this newly developed product
taken into account to be highlighted in promotional practices will facilitate in attracting
customers. For instance, social media platform and search engine optimisation will be
most suitable medium for carrying out these marketing practices.
 Place: In order to maintain sustainability in environment without wastage of resources,
efficient supply chain has been taken into consideration. Furthermore, respective
organisation has considered variety of place for selling products ranging from small
general stores to large supermarkets.
Buyer Behaviour
It is determined as decision-making practice undertaken by a customer in order to
purchase a specific product or service for consumption. This process is comprised of various
stages which are as follows:
 Recognition of need or problem: The initial stage in this process is aimed at realising
and recognising need or requirement of a product or service. For example, people with
preference of Vegan diet will realise need to look out for Vegan food products offered by
companies.
 Accumulation of information: After realisation of need, consumers seek for available
information in order to purchase their desired product. For instance, it includes check for
quality, specific ingredients, price, etc. of products offered by different business
organisations. For example, People with Vegan diet will search for companies offering
vegan food products and beverages in consumer market. Nestle is one of the major
companies engaged in serving vegan food products which will attract customers in this
stage.
 Evaluating Solutions: This stage revolves around comparison of different alternatives on
the basis of price, quality, ingredients, etc. For example, a customer is comparing Nestle
V with another company serving vegan chocolate. Furthermore, upright quality of
products offered by respective organisation will attract customers with their quality
product and brand image.

 Purchasing phase: This stage includes actual purchase of products by customers
according to their comparison of different alternatives. In addition to that, it includes
purchase and consumption of product in order to meet their recognised demands. For
example, customer purchasing Nestle V by eliminating other available alternative
(Safiya, and Shylesh, 2019).
 Post-purchase phase: This stage is considered as final stage of buyer behaviour process
which includes after purchase realisation. For instance, customer or buyer in this stage
realises and determines whether the consumption of product has met their desired
expectations or not. In addition to that, customers also initiates to provide feedback or
review regarding the experience they got with purchase and consumption of specific
product or service. For example, after consumption of Nestle V, customer realising and
giving feedback regarding their experience from the same.
CONCLUSION
From the above assessment report, it could be concluded that Nestle is focused at
continuous growth with introduction of newly developed product. For instance, it facilitates in
fulfilling demands of customers looking out for Vegan food products in order to acquire essential
nutrition. Behavioural segmentation has been determined as most suitable approach of grouping
customers for respective organisation. Furthermore, Product development has been considered as
ideal growth strategy with introduction of new product into existing market.

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