Nestle's Marketing Strategies: A Comprehensive Analysis

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MARKETING ESSENTIALS
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Contents
LIST OF FIGURES.......................................................................................................................3
INTRODUCTION........................................................................................................................4
PART A......................................................................................................................................5
INTRODUCTION....................................................................................................................5
BODY.................................................................................................................................... 5
ROLES AND RESPONSIBILITIES OF MARKETING AND ITS FUNCTION IN NESTLE...............5
ROLES AND RESPONSIBILITIES OF MARKETING IN MARKETING ENVIRONMENT OF
NESTLE..............................................................................................................................6
INTERRELATIONSHIP OF MARKETING WITH OTHER FUNCTIONS IN NESTLE....................8
SIGNIFICANCE OF INTERRELATIONSHIP BETWEEN MARKETING AND OTHER
FUNCTIONAL DEPARTMENTS OF NESTLE.........................................................................8
CONCLUSION........................................................................................................................9
PART 2.................................................................................................................................... 10
INTRODUCTION.................................................................................................................. 10
COMPARE THE MARKETING MIX OF NESTLE AND CADBURY FOR THE PROCESS OF
MARKET PLANNING IN ACHIEVING BUSINESS OBJECTIVES............................................10
EVALUATE DIFFERENT TACTICS APPLIED BY NESTLE FOR DEMONSTRATING THE
ACHIEVEMENT OF THE OBJECTIVES OF BUSINESS..........................................................15
CONCLUSION...................................................................................................................... 16
CONCLUSION.......................................................................................................................... 17
REFERENCES........................................................................................................................... 18
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LIST OF FIGURES
Figure 1: PESTEL ANALYSIS.......................................................................................................6
Figure 2: MARKETING MIX........................................................................................................9
Figure 3: CADBURY PRODUCTS...............................................................................................10
Figure 4: NESTLE PRODUCTS.................................................................................................. 10
Figure 5: PHYSICAL DISTRIBUTION OF CADBURY....................................................................11
Figure 6: PHYSICAL DISTRIBUTION OF NESTLE.......................................................................12
Figure 7: SALES PROMOTION TOOLS IN CADBURY.................................................................12
Figure 8: SALES PROMOTION TOOLS OF NESTLE....................................................................13
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INTRODUCTION
The report will describe the concept of marketing by defining the marketing and its roles
and responsibilities and the interrelationship of marketing function with the other
functional departments of Nestle. The second part of the report is a comparison between
two big companies Cadbury and Nestle by evaluating their strategies of 7Ps of the marketing
mix and how they are helpful in achieving the objectives of the organization.
Nestle is a multinational food processing company that was founded in 1866 by Henri
Nestle. The company is headquartered in Vaud, Switzerland and is ranked as the largest
food company worldwide in terms of its revenues. The company offers medical food, coffee
and tea, baby food, bottled water, frozen food, ice cream, dairy products, etc. all over the
world having 447 factories in 189 countries of the world that provides employment to
339,000 people (Archer and Bezdecny, 2016).
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PART A
INTRODUCTION
Marketing can be defined as all the activities in the businesses that are involved in providing
products and services to the ultimate consumer (Baker, 2016). These activities comprise of
purchasing of raw material, the transformation of raw material into finished goods,
packaging, branding, labelling of the product, pricing, promotion of the product,
transporting, warehousing and distribution of the goods through different channels and
offering after sales services to the consumers (Baker, 2016).
BODY
ROLES AND RESPONSIBILITIES OF MARKETING AND ITS FUNCTION IN NESTLE
BRAND MANAGEMENT: The marketing manager of Nestle is engaged in managing the
brand by defining specific objectives and mission to the employees of the company and
focusing on the satisfaction of the consumers by increasing awareness of the good quality
products and services offered by the company and making strategies to enhance brand
recognition (Feng et al. 2015).
RESEARCH AND DEVELOPMENT: The major role and responsibility of the marketing
manager of Nestle lies in understanding the needs and demands of the consumer in the
market, competitors’ products and problems faced by the consumers with existing products
in order to develop new and innovated product for the consumers that grabs their attention
and solves their problems, thus, increases the satisfaction of the consumers (Baker, 2016).
PROMOTION AND DISTRIBUTION: In Nestle, the activities of the marketing manager are
focused on the creating awareness among the consumers about the products and services
offered by the company through various tools of promotion like advertising, public relations,
personal selling, sales promotion, etc. and distributing these products to the final consumers
with the help of wholesaler, retailer, agents, etc. (Feng et al. 2015).
AFTER SALES SERVICES: The responsibility of the marketing manager in Nestle does not end
with the sales of the product. The manager lays emphasis on providing after sales services to
the consumers which include warranty and guarantees, etc. in order to build trust and
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increase the satisfaction of the consumers by solving the problems they face with the
company’s product or service so as to increase the efficiency of the business (Feng et al.
2015).
B2B BUSINESS: Marketing plays an important role in the business to business as it helps in
extending the sales cycle for the company such as the B2B marketing managers of Nestle
are engaged in marketing the goods and services differently to attract the prospective B2B
clients and the managers focus on building trust among the buyers by providing products
with best features that saves time, money and resources, in order to increase the loyalty
and retention of the buyers (Lilien, 2016).
B2C BUSINESS: The marketing manager of Nestle focuses on providing something of value
to the customers and uses different strategies and tools for promoting the products and
making consumers aware about the specifications and benefits of the product to increase
the sales and profitability of the company. The business-to-consumer marketing manager
uses content marketing to promote branded products through blogs and written material to
attract a large number of targeted customers (Lilien, 2016).
ROLES AND RESPONSIBILITIES OF MARKETING IN MARKETING ENVIRONMENT OF
NESTLE
The roles of the marketing manager in the marketing environment of the company can be
explained with the help of PESTEL analysis:
Figure 1: PESTEL ANALYSIS
(Source: Zaldivar et al. 2018)
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Political: In Nestle, the marketing manager has to consider the changing policies of the
government regarding food standards, pricing policy, etc. while planning about the product,
pricing and its specification so as to avoid any government intervention in the business
(Zaldivar et al. 2018).
Economic: The marketing manager must be aware of the economic factors such as inflation
rate, changing purchasing patterns of consumer, income level, increase in the price of raw
materials, etc. as they are significant in planning regarding the development of the product
(Zaldivar et al. 2018).
Social: It is the duty of the marketing manager in Nestle to understand the changing taste
preferences of the consumers, different culture and beliefs of the consumers and their
behaviour in order to produce and offer products that increase the satisfaction of the
consumers (Zaldivar et al. 2018).
Technological: Nestle promotes its products online through social media and e-commerce
platforms which makes important for the marketing manager to cope up with the
technological advancements in order to make an effective presence online (Ajami and
Goddard, 2017).
Environmental: The primary responsibility of the marketing manager in Nestle is towards
the community and the surrounding in which the business is operated. Thus, the manager
must be socially responsible and consider the ethical code of conduct in order to protect the
environment by using recycling methods, etc. (Ajami and Goddard, 2017).
Legal: The change in the laws and regulations of the government affects the decisions taken
by the marketing manager in marketing and selling the products of Nestle to its customers
on a large scale (Ajami and Goddard, 2017).
Thus, in a wider marketing environment, the manager must fulfil his roles and
responsibilities considering the macro environment in order to achieve the objectives of
Nestle.
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INTERRELATIONSHIP OF MARKETING WITH OTHER FUNCTIONS IN NESTLE
Marketing with finance department: the marketing manager of Nestle is engaged in
purchasing raw materials, development of product, promotion and sales of the product. All
these activities require the allocation of funds for which the marketing manager has to
coordinate with the finance manager to perform all the activities (De Mooij, 2018).
Marketing with HR department: The HR manager of Nestle helps the marketing manager in
recruiting and selecting right candidates for the marketing department according to the
needs and requirements communicated by the marketing manager (De Mooij, 2018).
Marketing with operations department: for the development of new products in Nestle,
the marketing manager has to coordinate with the production department by effectively
communicating the needs to the production team as they are engaged in the actual
production of the goods (De Mooij, 2018).
Marketing with research and development team: The R&D department of Nestle conducts
market research and communicate the results with the marketing manager which helps
them in planning for new product development or bringing changes in the existing product
in order to satisfy the consumers (De Mooij, 2018).
Thus, every department of Nestle have different roles and responsibilities, but the roles and
functions of various departments are interrelated with the marketing functions, thus the
activities should be coordinated between departments to achieve efficiencies in business
SIGNIFICANCE OF INTERRELATIONSHIP BETWEEN MARKETING AND OTHER
FUNCTIONAL DEPARTMENTS OF NESTLE
The decisions taken by the manager of one department affects the decision-making of the
other department, thus, there should be effective management of the relationship between
managers of the marketing department with others to achieve organizational goals
efficiently. The interrelationship between departments is important as:
 The coordination of the marketing manager of Nestle with the research and
development team helps in understanding the demands of the consumers and
producing innovative products accordingly which helps in enhancing the satisfaction
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of the consumers and increasing the sales of the organization (Charter et al.
2017).
 The interrelationship of marketing and production department in Nestle helps
results in great coordination which leads to optimum utilization of resources and
increased productivity and efficiency that enables the success of the business.
 The effective flow of communication and interaction between the marketing and
finance manager in Nestle helps in effective allocation of funds to the marketing
manager as and when the need arises which leads to timely attainment of desired
goals (Charter et al. 2017).
 The HR managers help the Marketing managers in creating a strong marketing team
by communicating the personnel and skills needed to the HR department and get the
best employees with the right skills and abilities for the department.
CONCLUSION
It can be concluded that the roles and responsibilities of different departments in Nestle are
interrelated to each other and effectiveness in the relationship of these departments help in
the achievement of goals and increasing profitability of the company (Charter et al. 2017).
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PART 2
INTRODUCTION
The element of marketing mix comprises of 7Ps namely product, price, place, promotion,
physical evidence, process and people that are used by every business effectively to achieve
specialization (Rowley, 2016). This part of the report would compare the marketing mix of
Nestle and Cadbury in order to assess the planning of these companies for achieving
business objectives.
Figure 2: MARKETING MIX
(Source: Rowley, 2016)
COMPARE THE MARKETING MIX OF NESTLE AND CADBURY FOR THE PROCESS OF
MARKET PLANNING IN ACHIEVING BUSINESS OBJECTIVES
PRODUCT: Cadbury offers a wide range of products such as chocolates, beverages, ice-
cream, biscuits, desserts, rolls, etc. the products offered by the company are categorized on
the basis of seasons (Chokshi et al. 2016).
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Figure 3: CADBURY PRODUCTS
(Source: Clarke et al. 2016)
The products of Nestle are classified broadly into four major parts namely beverages, dairy
products, chocolates and cooking aides. The products offered by Nestle are of various
categories such as coffee and tea, bottled water, breakfast cereals, chocolates, etc. (Chokshi
et al. 2016).
Figure 4: NESTLE PRODUCTS
(Source: Verbeke and Yuan, 2018)
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PRICE: The prices of the products of Cadbury are set according to the needs of the target
segment. The company sell premium quality products like Bournville at high rates, but also
focus on the needs of the consumers with low income by providing products at low prices
(Clarke et al. 2016).
The pricing of the products in Nestle is dependent on the cost of the product as profit
margins need to be added, prices of competitors and market-oriented prices. Thus, Nestle
uses different pricing strategies like penetration pricing, psychological pricing, bundling,
price discrimination, etc. according to the products. For example, penetration pricing is
used by Nestle for products like Maggie noodles (Verbeke, A. and Yuan, W., 2018).
PHYSICAL DISTRIBUTION: Cadbury markets and sells its products worldwide in more than
200 countries in both urban and rural areas because of its effective channels of distribution
and strategies used by the marketing manager to make the products reach to customers
globally (Vijaya and Kamarulzaman, 2017).
Figure 5: PHYSICAL DISTRIBUTION OF CADBURY
(Source: Vijaya and Kamarulzaman, 2017)
Nestle uses an efficient channel of distribution and effective supply chain management so
that it can offer the products of the company worldwide through shops, convenience stores,
supermarkets, etc. with the help of wholesalers, retailers, agents, etc. (Talay et al. 2018)
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