Global Marketing Management: Nestle's Marketing Mix Analysis

This report offers a detailed analysis of Nestle's marketing mix, focusing on the 7Ps: product, price, place, promotion, people, process, and physical evidence. It examines Nestle's product range, including beverages, milk products, cooking aids, and chocolates, along with their quality, design, and branding strategies. The report delves into Nestle's pricing strategies, considering factors like product margins and competitive pricing. It explores Nestle's distribution channels, promotional activities, and the importance of its sales team and customer service. The analysis also covers Nestle's processes, including inventory management and online ordering, as well as the physical evidence of their brand presence. The report concludes by highlighting how Nestle's effective marketing mix has contributed to its significant market share in the FMCG industry.

Running head: MARKETING
Global Marketing Management
Name of the Student:
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Author Note:

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Executive Summary:
The report aims at providing an insight into the marketing mix (7Ps) of Nestle. The report
provides a detailed analysis of each of the marketing mix that includes product, price, place,
promotion, process, people and physical evidence of Nestle in relation to its products. The report
shows how the adoption of an effective marketing mix has enabled Nestle in capturing a greater
market share.

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Table of Contents
Introduction:....................................................................................................................................3
Marketing Mix (7Ps):......................................................................................................................4
Product:............................................................................................................................................4
Price:................................................................................................................................................5
Place:................................................................................................................................................6
Promotion:.......................................................................................................................................7
People..............................................................................................................................................8
Process:............................................................................................................................................9
Physical Evidence:.........................................................................................................................10
Conclusion:....................................................................................................................................10
References:....................................................................................................................................11

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Introduction:
The report provides a review of the marketing mix (7Ps) of Nestle, one of the most
renowned Fast Moving Consumer Goods (FMCG) companies across the world. The marketing
mix acts as the base model for various businesses. It has therefore been defined as marketing tool
set that is used by the firm for pursing the marketing objectives within target market (Huang and
Sarigollu 2014). Hence, the marketing mix leads to seven broader categories of marketing
decision which includes product, price, place, promotion, process and physical evidence.
Conducting a marketing mix based on the mentioned categories helps in explaining the
marketing strategy of a firm. Nestle is basically a Swiss based multinational food and drink
processing corporation headquartered in the Vevey Island. It is one of the biggest FMCG
companies across the world measured in terms of the revenue. Nestle was established in the year
1905 by an Anglo-Swiss based Milk Company (nestle.com.au 2019). The company experienced
a significant growth during First and the Second World War and expanded the offerings beyond
infant formula and condensed milk.
Nestle however needed to develop the strategies for marketing mix in order to achieve
desired results within the market served. Through development of strategies that addressed
different aspects of every element, Nestle was able to achieve a broader strategy of marketing.
Analysis of the seven elements of marketing mix will allow digging into aspects that would
strengthen Nestlé’s position in the market.

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Marketing Mix (7Ps):
Product:
Product mix represents a complete range of products manufactured by Nestle. The key
aspects that need consideration within the product mix are mentioned below (Khan 2014):
Variety: As far as the products are concerned, Nestle sell products categorized under four
broad categories with each of the category serving a different product line. These categories
include (Fan, Lau, and Zhao 2015):
 Beverages: It comprises one of the renowned brands of coffee, Nescafe. Nestle ensures a
wider distribution of the brand comprising of different variants. Nestle also introduced
Nestea in India.
 Milk Products and Milk: This includes some milk based products from Nestle like Nestle
Slim and the Nestle Milk Maid that are used in the day to day lives.
 Cooking Aides and Prepared Dishes: This represented the third product category that is
available in the form of cooking aides and the preparatory dishes. Maggi noodles are one
of the well known products within the segment and are also one of the widely sold ready-
to-cook noodle brand. Nestle also made it a point to expand its Maggi brand and create an
umbrella of various products that included Maggi sauce, Maggi pasta and Maggi cubes.
Thus, Maggi contributed to the bottom line of brand.
 Chocolates: Some of the popular chocolate brands of Nestle include Nestle Kitkat, Milky
bar, Munch, Eclairs and Polo. The Alpino range is primarily launched for serving the gift
purposes. The chocolate segment of the company experiences higher level of competition
and expense

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Quality: Nestle is known for its quality and the taste of the products. The company holds the
belief that success is determined by quality.
Design: Nestle has a wide range of design for its products and the company makes sure that
all the newer products looks attractive and different.
Features: Nestle made sure that all its products have certain specialized features that makes
it increasingly attractive to customers (Isoraite 2016). For instance, the ice cream range of Nestle
included a special feature of lower sugar and fat content.
Brand Name: A stronger brand name is crucial for not only the company but also their
consumers since it adds valuation to the company and differentiates products from competitors.
A stronger brand name also acts as quality certification and influences the consumer preference
of products (Hillenbrand et al. 2013). Nestle through a stronger market presence and brand name
has been able to capture consumer’s heart. The company has also created a loyal customer base
through focusing on health requirements and nutrition at competitive price.
Packaging: This involves designing and developing the cover of the product for making it
increasingly attractive for consumers (Gopal and George 2014). In this regard, it can be said that
Nestle makes use of attractive packaging as one of its key strategies of marketing.
Price:
Price has been defined as the product value that is derived in return of the efforts derived
for marketing and production (Datta, Ailawadi, and Van Heerde 2017). In other words, price is
considered as revenue earner and hence considered as a vital marketing tool for both the
customers and the competitors. Consumers are found to keep track of the product prices they

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purchase. This helps them in analyzing the attractiveness of products and remains more vigilant
about the product prices. In case of Nestle, the price remains dependent on the individual
products. For example, Maggi and Nescafe have clear leaders with higher price margins. The
higher product quality will not encourage customers in switching brands. Besides, the strength of
the product pricing is determined by the consumption and packaging. The products of the
company are available in various sizes as well as package options. The availability of variety
allows the customers in making choice based on the consumption. Nestle also offers competitive
pricing for products like Munch and Kitkat since they face tough competition (Daud 2013).
Place:
The key factors that needed to be taken into consideration for formulating a place strategy
include coverage, channel, assortments, inventory, location, logistics and transportation (Davari,
and Strutton 2014). The distribution channels of the product are of two types depending on
targeted consumer. It however differs based on the end user that might be an organization or
consumer. In this regard, Nestle undertakes an FMCG strategy for distribution that includes
breaking bulk. Nestle however two different types of distribution have, one is through its own
channel and the other is through the sales network. Nestle also introduces various tactics and
trade discounts for motivating the channel. The key challenge lies in distributing of Maggi which
is one of most demanded products along side Nescafe. The presence of these products allows
Nestle in driving other products into the market. This is implemented by providing a discount on
stronger product when a weaker product is purchased. The challenge for Nestle however lies in
the chocolate segment since here it faces tough competition from Cadbury’s and therefore the
selling of its product became difficult. In fact, converting the retailers to prefer Nestle over
Cadbury became only possible by undertaking promotions.

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Promotion:
Promotion refers to a crucial element of marketing mix that aims at informing and
persuading the market about the services and the products of a company (Buil, De Chernatony,
and Martínez, 2013). Promotions might also take place in the form of personal selling or
advertising.
Personal Selling: is primarily used when the market remains geographically
concentrated with custom made products. It is also the face to face communication with the
buyers with an aim of pursuing customers in making a purchase (Todorova 2014). It refers to
one-to-one marketing. Door to door selling and Telemarketing represent techniques of personal
selling. Nestle makes uses of personal selling for sophisticated and specialized products.
Advertising: It refers to the communication with the specific audience for stimulating
action and its success lies in the way of ensuring that right information reaches the right person
at the appropriate time (Stead and Hastings 2018). In fact, advertising refers to the non personal
communication of the services, ideas or the products with the help of commercial media.
Advertising is usually undertaken when either the market remains dispersed geographically or
when product remains standardized. As far as Nestle is concerned, its advertisements are not
only attractive but known in the market. For example, the Nescafe advertisement is known by its
tunes and has been considered as the best advertisement in the past two decades. The
advertisements introduced Nescafe strongly into market. The Nestle brand Maggi also comes up
with innovative and witty campaigns where the company primarily focused on the value and the
good things of life. Besides, promotions of products like Kitkat are also carried out smartly by
asking the consumer in taking a break. The website of the product is also very innovative in the

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sense that it also asks the visitor to take breaks and consume Kitkat. Nestle rocks in the sense
that it provides a major push through sales promotion at ground level by focusing on the strong
brands like Maggi, Nescafe and Kitkat.
Nestle also makes use of internet for promoting the products where different websites are
available for hosting different products. Each product however has different strategies such as
the online distributions and competitions.
People
Apart from management team, there exist people who remain responsible for introducing
the services or the products of the company (Chumaidiyah 2014). Companies should take
sufficient time in hiring expert and competent people with the particular industry. This holds true
for people belonging to the organization that includes the managers to ordinary workers.
Investing in people with higher caliber will enable the business in coming up with best services
and products for target customers. The people will not only represent the firm but would help in
building a positive image. Such positive image is believed to attract sales.
In this regard, it can be said that Nestle comprises of people working in the sales team
that plays a key role in the marketing efforts. These people not only receive training through the
most persuasive technique but also shower respect towards the business customers by
considering the preferences. Nestle also have employees working under the department pf
customer service. They are mostly contacted by customers in case there are any issues with the
product. They provide the necessary guidance by helping them in resolving the issues. The
company also has people working with the suppliers for obtaining raw materials. They are the

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people who play a key role in improving and maintaining the quality of final products. Nestle
also have people working at the retail stores who aids customers onsite by answering the
questions or by aiding them to decide on product that suit their needs effectively.
Hence, it can thus be said that people has an impact on overall experience of customers.
In marketing, providing the customers with unique experience related to product usage and
dealing with the people is considered a means for gaining newer customers and retaining existing
ones.
Process:
The process represents a part of marketing mix. It is part of the 7 P’s of marketing mix.
Process represents flow of mechanisms or activities that takes place whenever there is an
interaction between customer and business (Pogorelova et al. 2014).
In this regard it has been found that Nestle installed systems at its retail stores for
ensuring the availability of the products. The systems also allow the retailers in notifying their
lower inventory levels. Nestle tries to refill its stock and ensure products always remain available
to customers. Nestle also have an online process of delivery where orders are received in
computer system and based on which the relevant product gets shipped to the service provider.
Besides, the company also remains actively involved in identifying the market opportunities for
understanding the needs of the consumer. It also helps in developing the customer needs via
feedback collected at stores or through the pages of social media.

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Physical Evidence:
The physical evidence represents elements of the marketing mix that are usually
incorporated into products or services for making it tangible and measurable (Poturak and
Duman 2014). This aspect of the marketing mix helps in positioning the brand for targeting right
customers.
As far the physical evidence of Nestle is concerned, the company sells the products in
unique packaging that can be identified easily on the retail shelves. They are placed on shelves
put forward marked with the help of distinct design and color. This makes things easier for
customers since they can easily locate these shelves in busier retail outlets. In addition to this,
Nestle also have a user friendly online website that allows customers in viewing the products in
higher image quality viewed from different angles.
Conclusion:
On a concluding note, it can be said that Nestle has a worldwide coverage since it have a
wider channel for distribution and various manufacturing units across the world through using
the strategies of marketing mix. The company underwent complete reengineering of the supply
chain that remains aided by the complete logistics that benefited both Nestle and the consumers.
Nestle has been capable of operating composite pallet roads by combining the confectionary and
the beverages through two vehicles fleets and distribution hub. This also allowed Nestle in
reducing the fleet size thereby satisfying smaller volumes of delivery without an increase in the
cost.

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