MKT600 - Nestle India Marketing Mix: Strategy & Target Market Analysis

This report provides an in-depth analysis of Nestle India's marketing operations, focusing on its target market, positioning strategies, and marketing mix elements. It examines the macro environmental factors influencing Nestle's operations in India, including economic policies, consumer preferences, and technological advancements. The report details Nestle's market segmentation strategies, including geographic, demographic, psychographic, and behavioral segmentation, to effectively target diverse consumer groups. Furthermore, it explores Nestle's product, pricing, placement, and promotion strategies, highlighting the company's efforts to maintain a strong market presence through product differentiation, competitive pricing, and robust distribution networks. The report concludes that Nestle India has successfully established its position in the Indian market by adapting its strategies to local conditions and consumer needs.

Running head: MARKETING MIX OF NESTLE INDIA
MARKETING MIX OF NESTLE INDIA
Name of the Student
Name of the University
Author Note

1MARKETING MIX OF NESTLE INDIA
Executive Summary
The report is based on the analysis of the operations of an organization named Nestle which
is of Swiss origin. The company has its operations in more than countries. The operations of
Nestle in India is the main part of the discussion which has been made in the report. The
macro environmental factors which are able to affect the company are analysed in the report.
The analysis is also based on other major factors like, target market, the positioning strategy.
The marketing mix of the organization is also considered to be an important part of the
discussion which has been made in the report.

2MARKETING MIX OF NESTLE INDIA
Table of Contents
1.0 Introduction..............................................................................................................3
2.0 Recap on organization..............................................................................................3
3.0 Target market...........................................................................................................4
4.0 Positioning................................................................................................................5
5.0 Current strategy........................................................................................................6
6.0 Conclusion................................................................................................................8
7.0 References................................................................................................................9

3MARKETING MIX OF NESTLE INDIA
1.0 Introduction
Nestle India is a subsidiary of the main organization Nestle S.A. of Switzerland. The
organization has developed eight factories and a huge amount of co-packers in the country.
Nestle India has also developed a position as a vibrant organization which provides the Indian
consumers with products that are able to become of global standards. The company is also
committed to the sustainable and long term growth. The organization has also aimed at
providing the utmost levels of satisfaction to the consumers (Nestle.com., 2018). Currently
Nestle India has gained the position of the one of the most respected companies in the
country and the company is also named as the “Top Wealth Creators of India”. Nestle
operates a decentralised type of organizational structure which is also known as the matrix
structure. The main purpose of the assignment is to the determine and analyse the target
market of Nestle India and the positioning based strategy which is implemented as well
(Nestle.com., 2018).
2.0 Recap on organization
Nestle India has been quite successful in its operations in India and has developed an
effective position in food and beverage based industry of the country. The organization has
around 4 branch offices and 8 manufacturing based facilities which operate in the country.
The macro environmental factors of the country are able to affect the ways by which Nestle
operates in India. The policies and regulations which are applicable in India are able to affect
the operations of Nestle in a huge manner. The development of the country is an important
factor which affects the operations of Nestle (Barros, Hernangómez & Martin-Cruz, 2016).
The economic policies which are developed by Nestle thereby need to be based on the
target segments which are a part of the market. The choice and preferences of consumers are
considered to be important factors that are able to affect the profitability levels of Nestle. The

4MARKETING MIX OF NESTLE INDIA
organization thereby needs to understand the attitudes of the consumers in order to offer them
with the appropriate products. The culture, values and social norms of the country are
considered to be important factors which are able to affect the changes which take place in
the attitude of consumers. The launch of new products by Nestle is based on the different
technologies which are used by the company (Daspit et al., 2017).
The organization can also aim at improving the existing products with the help of
implementation of the proper technologies. The legal situation of the country is able to affect
the operation of Nestle and the ways by which the organization is able to fulfil the demands
of consumers. The environmental factors are also considered to be highly important for the
ways by which Nestle operates in India. The ways by which the operations of Nestle is able
to affect the environment of the country is considered to be a major factor. The company
further needs to focus on the issues based on packing and recycling based processes as well
(Demir, Wennberg & McKelvie, 2017).
3.0 Target market
The target market of Nestle India is based on the ways by which the company is able
to segment the market into different parts before it is able to provide the desired products to
customers. Market segmentation is done by Nestle based on the requirements of the
consumers and the ways by which they are able to connect with the products. The different
types of segmentation processes which are used by the organization thereby include,
geographic segmentation, demographic segmentation, psychographic segmentation and
behavioural segmentation. The target market of the organization is then decided based on the
ways by which the market has been segmented (Durand, Grant & Madsen, 2017).
The opportunities which are provided by the market to the firm are depicted with the
help of analysis of the target market. The different segments of the market have been

5MARKETING MIX OF NESTLE INDIA
thoroughly examined by Nestle based on the growth of the market and segment size. The
resources and objectives of Nestle and the structural attractiveness are also considered to be
important factors which are able to affect the target market of Nestle. The target market for
its product named Nescafe 3 in 1 are the customers who are quite busy, Nesquick is for
customers who love the taste of chocolate, Nescafe Ice is for the customers who prefer cold
coffee in warm weather. The organization is able to develop a strong position in the market
with the help of the process of concentrated marketing (Dyer et al., 2015). The organization
has developed a strong base of knowledge based on the requirements of the consumers. The
company specializes in different types of baby foods and many other types of products which
are able to fulfil different needs of consumers in the industry.
4.0 Positioning
The positioning strategy which is used by the organization is based on the
development of the products, services, people, channel and differentiation of images. Nestle
has thereby arrived the touchpoint of consumers in an easier and effective manner in
comparison to the competitors in the food processing based market. The process of product
differentiation is based on the ways by which Nestle is able to bring new types of products
for the target customers. The process of channels differentiation is based on ways by which
Nestle is able to reach the customers with the products with the help of their salesman and the
transportation based facilities. The products are thereby able to reach the consumers in an
easy manner (Engert, Rauter & Baumgartner, 2016).
Image differentiation is also a part of the positioning strategy which is based on the
logo of Nestle and the difference which the logo has from the competitors. People based
differentiation is the process which has been implemented by the company with the help of
their highly trained and educated employees. The numerous employees of the company in

6MARKETING MIX OF NESTLE INDIA
India are based on the ways by which the consumers are attracted towards Nestle. The service
which is offered by the company to the consumers is better as compared to the other
organizations or the competitors. The company provides high levels quality checking to the
consumers (Ethiraj, Gambardella & Helfat, 2018).
5.0 Current strategy
Product – Nestle offers a strong product mix in India which is based on the choice
and preferences of the consumers. The strong product mix of the organization thereby
include, chocolate based beverages, milk and some milk based products and cookies. The
different chocolate based products which are offered by the company in India are Nestle
KitKat and Munch. The organization has developed a huge share in the market. The other
milk products which are offered by Nestle in India include Nestle milk and Nestle every day
(Frynas & Mellahi, 2015). Another major category which is offered by the company is based
on prepared foods like, Maggi noodles, Maggi Pasta, Maggi sauce. The organization has
developed huge levels of revenues in the market with the help of products like, Maggi and
Nescafe, which are offered to the consumers with the help of different small and big shops.
This has helped the company to become a huge competitor in the market (Hill, Jones &
Schilling, 2014).
Price – Nestle depends on market of different products like, Nescafe and Maggi for
huge amounts of revenues. The company develops high levels of margins with the help of
effective sales of the products like Maggi and Nescafe. The price of the products that are
offered by Nestle are based on the market of the specific products. The strength based on the
pricing of the products of Nestle is based on the consumption of the products by the
consumers (Hubbard, Rice & Galvin, 2014). The size of the packages of Nestle are also based
on the preferences of the consumers. Nestle has been able to implement the process of

7MARKETING MIX OF NESTLE INDIA
competitive pricing for the products. The two major products of Nestle like, Nestle and
Maggi offer different sizes and package based options. The consumers have the choice based
on different types of consumption based process of the consumers (Karadag, 2015).
Place – Nestle is a Swiss organization which operates in greater than 80 countries of
the world. The major keys are based on the products and people brands of Nestle. The FMCG
based strategy related to distribution is used by Nestle in different areas of the market and
different countries as well. Nestle has developed a strong distribution based network in India.
The company thereby aims at providing the products like Nescafe and Maggi to different
consumers in India (Kasemsap, 2014). The distribution based channel which has been
developed by the company in India is based on the availability of the chocolate based
products of Nestle. The sales of the confectionery based products of the company mainly
depends on the availability. Nestle thereby aims at providing the products to the consumers in
an effective manner to the consumers all over India. The company has tried develop both the
wholesaler and the retailer based channels in India in order to reach the consumers as soon as
possible (Meyer, Neck & Meeks, 2017).
Promotion – The promotional activities of Nestle are based on the victorious services
or products which are offered by the company. The major strategy which has been
implemented by the company is based on the policy of thinking globally and acting locally.
The advertising campaigns which have been developed by Nestle are able to increase the
presence of the company in the industry. Nestle has been able to ensure high levels of growth
with the help of the most effective product of the company named Maggi. The promotions are
based on different types of stories which are related to the ways by which the consumers are
affected by the products (Michael, Storey & Thomas, 2017). Nestle has also started
promoting the products with the help of free samples that are offered to the consumers. The
organization has also started implementing different types of promotional strategies for the

8MARKETING MIX OF NESTLE INDIA
chocolate based products. The media which are used by the company in order to promote the
products include, television commercials and posters. The major challenge is based on the
ways by which the promotions are able to appeal to the purchasers and consumers (Meyer,
Neck & Meeks, 2017).
6.0 Conclusion
The report can be concluded by stating that the Nestle India has been able to develop
its position in the industry with the help of products and services. The environmental factors
have been able to affect the ways by which the company has developed the policies in order
to operate in the country. The positioning strategy which is used by Nestle has also proved to
be effective for the operations of Nestle. The target market of the company is quite huge and
the needs are fulfilled by different products. The marketing mix of the organization has been
developed in such a manner which has been able to develop its position in the industry and
the country.

9MARKETING MIX OF NESTLE INDIA
7.0 References
Barros, I., Hernangómez, J. & Martin-Cruz, N. (2016). A theoretical model of strategic
management of family firms. A dynamic capabilities approach. Journal of Family
Business Strategy, 7(3), pp.149-159.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. & Long, R.G. (2017). A strategic
management perspective of the family firm: Past trends, new insights, and future
directions. Journal of Managerial Issues, 29(1), p.6.
Demir, R., Wennberg, K. & McKelvie, A. (2017). The strategic management of high-growth
firms: a review and theoretical conceptualization. Long Range Planning, 50(4),
pp.431-456.
Durand, R., Grant, R.M. & Madsen, T.L. (2017). The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Dyer, J.H., Godfrey, P., Jensen, R. & Bryce, D. (2015). Strategic Management: Concepts
and Cases. Wiley Global Education.
Engert, S., Rauter, R. & Baumgartner, R.J. (2016). Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, pp.2833-2850.
Ethiraj, S.K., Gambardella, A. & Helfat, C.E. (2018). Theory in strategic
management. Strategic Management Journal, 39(6), pp.1529-1529.
Frynas, J.G. & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.

10MARKETING MIX OF NESTLE INDIA
Hill, C.W., Jones, G.R. & Schilling, M.A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Hubbard, G., Rice, J. & Galvin, P. (2014). Strategic management. Pearson Australia.
Karadag, H. (2015). Financial management challenges in small and medium-sized
enterprises: A strategic management approach. Emerging Markets Journal, 5(1), p.26.
Kasemsap, K. (2014). Strategic innovation management: An integrative framework and
causal model of knowledge management, strategic orientation, organizational
innovation, and organizational performance. In Strategic approaches for human
capital management and development in a turbulent economy (pp. 102-116). IGI
Global.
Meyer, G.D., Neck, H.M. & Meeks, M.D. (2017). The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Michael, S., Storey, D. & Thomas, H. (2017). Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new
mindset, pp.45-65.
Nestle.com. (2018). Retrieved from https://www.nestle.com/aboutus/history