Nestle's Market Segmentation and Digital Marketing Strategies Report

This report provides an in-depth analysis of Nestle's marketing strategies, focusing on market segmentation and the application of various digital marketing tools. The report examines how Nestle segments its target markets based on demographic and behavioral factors, highlighting specific product positioning strategies for different age groups and consumer behaviors. It explores the use of digital marketing techniques such as SEO, social media marketing, and YouTube advertisements, detailing the aims and effectiveness of each tool. Furthermore, the report identifies the strengths and weaknesses of Nestle's digital marketing approach and offers actionable recommendations for enhancing its overall marketing strategy, including suggestions for leveraging tools like UberSuggest and PromoRepublic. The report concludes by summarizing key findings and emphasizing the importance of adapting digital marketing strategies to maintain a competitive edge in the food and beverage industry.

Introduction:
Nestle is the one of the largest multi-national companies operating in the food and
beverage sector. The company was founded during 1860s (Djarum et al. 2019). Continuous
product modification, renovation in the customer retention strategies are the characteristics of the
business operations conducted by the company, are the root causes behind the steep growth as
well as survival of the company, in the food and beverage industries, since its inception in the
year 1860. The home country of the company is Switzerland. Nestle manufactures a wide range
of products include the baby foods, evening snacks for adults as well as medical foods, bottled
water, ice-cream The market penetration tools used by Nestle attract a wide range of customers
with the help of contemporary digital marketing tools like-SEO, social media marketing,
YouTube advertisements, as well as the social media ad campaigns, online contests and so on
(Agustin et al. 2017). In the year 2018, Nestle has experienced an elevated sales rate of about
23.6% billion (Djarum et al. 2019). Their efforts address the specific needs of each group of
customers. Nestle has taken the decision associated with food production. In this context, Nestle
has adopted several positioning strategies depending on the age group of the customers. The term
Search Engine Optimization, is a popular procedure used by Nestle to conduct digital marketing
efficiently. Using SEO technique, Nestle The purpose of this study is to throw lights on the
different segments of the market targeted by Nestle. In this context, this study will also delve
deep into the contemporary digital marketing as well as advertising tools used by Nestle to
promote the brand and attract different segments of the customers. This will be followed by a
brief discussion regarding the strengths, weaknesses as well as the recommendation associated
with the marketing strategies adopted by the company.

Two different segments of market
Nestle segments the targeted markets on the basis of demographic s well as behavioral
factors. A minute observation of the two different markets consisting of two different type of
customers targeted (Arora and Singh 2017).
Findings:
Nestle, the largest food as well as beverage manufacturer of the world segments the
targeted markets depending on the demographic as well as behavioral factors. More specifically
it can be stated that Nestle produces different set of food products as well as beverages for the
several group of targeted customers as well as market which can be distinguished using
demographic as well as psychographic factors (Baxi Panda and Karani 2016).
Market segmentation by Nestle on the basis of demographic factors and Positioning
of the product:
Among all other demographic factors, Nestle has chosen, age as the demographic factor,
to determine the type of food they will produce. In other words segmenting the market in terms
of the demographic factors, Nestle has taken the decision associated with food production. In this
context, Nestle has adopted several positioning strategies depending on the age group of the
customers. Firstly, Nestle has targeted toddlers between the age group of 6-12 months (Daramola
Bello and Okafor 2014). For the toddlers from 6-12 months, Nestle has brought products like
‘Nestle Nan Pro Stage 2 Follow-Up Formula Powder’, which is positioned in the market as the
baby food which can be used by the working women as the substitute for breast milk (Blackshaw
2014). This is capable of accelerating brain development among infants at a faster rate as
compared to the natural rate of brain development. products containing (Djarum et al. 2019).

Again, for the children as well as adults Nestle has brought breakfast cereals into the market of
food and beverages named ‘Nesplus’. This product is positioned in the market as the only one
tasty and crunchy cereal enriched with vitamin D, B-vitamins, calcium, the crunch of which can
be enjoyed even in warm milk by the entire family. their efforts address the specific needs of
each group of customers. Nestle has taken the decision associated with food production. In this
context, Nestle has adopted several positioning strategies depending on the age group of the
customers. The term Search Engine Optimization, is a popular procedure used by Nestle to
conduct digital marketing efficiently. Using SEO technique (Fitzgerald 2014).
Market segmentation on the basis of Behavioral factors and positioning of the
product:
Under the Behavioral segmentation the market, customers possessing a specific buying
behavior depending on their usage, preferences are considered homogeneous. Again the liking of
the customer associated to a specific brand as well as brand loyalty can be considered as the
other factor which contributed substantially to the behavioral segmentation. For instance Nestle
knows that a huge section of the customers all over the world especially the office goers,
students who has to remain awake during the entire night, for the purpose of office work as well
as studies, use coffee frequently as the energy booster. Again, in spite of the availability of the
regional coffees, a huge section of the young generation, office goers are loyal to a large brand
like Nestle. Observing all these Nestle positioned their Nespresso, a type of coffee which is
served through an innovative machine providing the office goers as well as university students a
fast, innovative as well as personalized experience of enjoying coffee in the midst of the hectic
schedule (Kaufman and Horton 2014).

Digital marketing tools as well as techniques Used by Nestle:
There are several digital marketing tools which Nestle apply with the aim of promoting
their food as well as beverages over the global platform. Digital marketing tools used by nestle
includes- SEO as well as Blog Content Tools, PPC, social media marketing, website marketing,
Google ad sense as well as pop-up ads in different websites, Automation AI chatbots, YouTube
advertisements, as well as the social media ad campaigns, online contests (Djarum et al. 2019).
All these conveys the brand related messages, product related information like the benefits of
using the food products, the efforts made by Nestle to address the specific taste as well as
preferences of the targeted customers. Also through the platform of digital marketing a new
product can be easily popularized among ‘n’ number of customers (Kaufman and Horton 2014).
Further, the product modification attempted by the organization as well as the steps associated to
the usage of a new products can be demonstrated to the customers of the entire globe very
quickly, through the Effective use of digital marketing. In a nutshell, it can be stated that, digital
marketing tools like-SEO as well as Blog Content Tools, PPC, social media marketing, website
marketing, Google ad sense as well as pop-up ads in different websites, Automation AI chatbots,
their efforts address the specific needs of each group of customers. Nestle has taken the decision
associated with food production. In this context, Nestle has adopted several positioning strategies
depending on the age group of the customers. The term Search Engine Optimization, is a popular
procedure used by Nestle to conduct digital marketing efficiently. Using SEO technique, Nestle
YouTube advertisements, as well as the social media ad campaigns, online contests illuminate
the image of the brand to the customers all over the world, allure the existing customers to
purchase a new variety of the food or beverage manufactured by Nestle and evoke the eager of
the new customers to try the brand.

The aims of each tool or technique:
A. SEO as well as Blog Content Tools:
SEO as well as Blog content Tool is used by Nestle with the aim of conveying
targeted customers-brand related messages, product related information, benefits of using
their products, their efforts address the specific needs of each group of customers. Nestle
has taken the decision associated with food production. In this context, Nestle has
adopted several positioning strategies depending on the age group of the customers. The
term Search Engine Optimization, is a popular procedure used by Nestle to conduct
digital marketing efficiently. Using SEO technique, Nestle assists the viewers of a
website in finding the website easily. In other words applying the technique of Search
Engine optimization Nestle facilitates the viewers to categorize their official website.
They enrich their official website with blogs as well as product contents stuffed with
ample of keywords. In this case the terms associated with the food as well as beverage
produced by the company is considered as ‘keywords’.
B. Social media marketing:
The aim of developing an effective strategy for social media marketing is many. First,
Nestle, consider that, for the purpose of promoting a completely new product, to a tech savvy
generation; According to the social media strategy of the company, their targeted customers are
parents of the new-born babies, working men women as well as students who remain active on
social media regularly and responds to the ads on the social media, picture published on social
media, the most. They tend to follow latest trends observed over social media, which ranges from
wearing latest dresses, uploading latest pictures (Nair 2015). In short, the customers that Nestle
target tend to imitate whatever trend they observe over social media. Hence, one of the main

objectives behind using this tool of digital marketing is to promote the completely new products
that Nestle have just launched. In this case the targeted customers will be made feel that they
always needed the new product and already people all over the world are benefitted by using the
product (Djarum et al. 2019).
B. YouTube advertisements:
Unskippable YouTube advertisements, which can be considered as the practical application
of the magic bullet theory of mass media, is the other significant digital marketing tool, used
by Nestle. The aim of using this specific digital marketing tool is that, with the help of
Unskippable YouTube advertisements, the targeted customers can be hit with the ‘magic
bullet’ of a specific perception that Nestle wants to create about the brand or any specific
product of the brand (Kaushik, 2016). For example, unskippable YouTube ad showing that
Milo provides growing children adequate amount of iron, a high level of calcium beneficial
for teeth and bones, Vitamin A, Vitamin B1-B2 as well as Vitamin C; will make the
customer forcefully watch , listen as well as care about the information provided about Milo
and this will automatically make them eager to compare nutrients as well as price provided
by other health drinks with Milo and the price of Milo (Djarum et al. 2019).
Three strengths of the Digital marketing strategy adopted by Nestle:
 Reaching a large section of the customers within a short period of time
 Digital marketing tools will make the customer follow the latest picture as well as trends
of consuming

Three weaknesses of the Digital marketing strategy adopted by Nestle:
 Digital marketing cannot attract village people, people residing into remote location, who
rarely get access to internet.
 The digital marketing strategy adopted by Nestle requires the usage of advanced
software’s (Sakunia and Jha 2016).
Conclusion:
Recommendations for improving their digital Marketing strategy:
In order to make the digital marketing process more convenient as well sophisticated Nestle may
use Uber Suggest, Google Keyword Planner which will help the customers with new keywords,
to facilitate the process of SEO (Taneja 2017). Besides , Yoast, the plugin for WordPress can
also be used to improvise digital marketing strategies. Further, for the purpose of managing
social media representation tools like PromoRepublic can be used. This will help in the
scheduling, content creation, collaboration, social monitoring, and reporting features associated
with the launch of new products (Djarum et al. 2019).
Conclusion:
In the conclusion, it cn be stated that, Nestle manufactures a wide range of products include the
baby foods, evening snacks for adults as well as medical foods, bottled water, ice-cream The
market penetration tools used by Nestle attract a wide range of customers with the help of
contemporary digital marketing tools like-SEO, social media marketing, YouTube
advertisements, as well as the social media ad campaigns, online contests and so on. Uber

Suggest, Google Keyword Planner, are the latest tools that the company needs to use to
improvise its digital marketing strategy.

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