Digital Business Strategies: Analysis of Nestle's Website and E-CRM

This report provides a comprehensive analysis of Nestle's digital business strategies, focusing on its e-business model, competitive strategy, and digital marketing initiatives. The analysis begins with identifying the brokerage model employed by Nestle.co.uk, followed by an assessment of its strengths and weaknesses, including customer-centric design, content relevance, and intuitive navigation, as well as outdated design and cumbersome checkout processes. The report then applies Porter's Five Forces to evaluate Nestle's competitive strategy and value chain, offering insights into its market position. It further examines Nestle's digital marketing strategies, including content marketing, SEO, SEM, affiliate marketing, and mobile marketing, along with recommendations for improvement. Customer traffic data from Similarweb is analyzed, with suggestions for enhancing affiliate marketing, viral marketing, and mobile marketing efforts. The report also explores Nestle's e-CRM and social media channels (Facebook, Twitter, YouTube), providing recommendations for better customer relationship management. Finally, the report addresses Nestle's cybersecurity measures, its adherence to e-business ethics, and offers recommendations for enhancing data security and privacy practices. The report concludes by emphasizing the importance of continuous improvement through data-driven decision-making.

Assignment on
Digital Business Management
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Identify the E-business model that the website pursues and consider
E-business concepts and approaches to comment on specific
strengths and weaknesses of the nestle website.
Identification of the E-business model that nestle.co.uk pursues (slide 2 and 3)
Brokerage Model: Nestle UK uses a brokerage model. The brokerage model is a Web
marketing strategy. At the core of this model are so-called brokers who put goods and service
vendors and purchasers in partnership to conduct transactions (Chaffey, 2019).
Model for ads: This website offers contents and resources of nestle (such as e-mail, blogs, etc.)
combined with advertisements in form of advertisements.
Merchant Model: Commodities suppliers and distributors. Purchases may be produced at or by
auction depending on premium rates.
Affiliate Model: A platform that delivers chances to shop anywhere citizens search for nestle.
Utility Model: Nestle intends or "on-demand" is focused on the use of a device or on "paying
when you go" Contrary to subscription programs, metrics are based on existing rates of use.
Subscription Model: Users of nestle are paid a recurring fee for subscribing to the service –
regularly, weekly or yearly. Models of advertisement and payment are also mixed (K., 2019).
Consideration of E-business concepts and approaches to comment on specific
strengths and weaknesses of nestle.co.uk (slide 4)
The fast expansion of e-business has recently been helped by Internet distribution. Nestle must
incorporate their internal computer systems with external Internet networks to satisfy customer
needs and connect with others. This list contains advantages over competitors’ websites that
would give the website a competitive edge and help to get the business objectives more quickly
(Turban, 2015). Website strengths are related to the main goals and objectives of the website’s
creation. Here are some examples of nestle website strengths:
 Customer-centric design and messaging
 Effective calls to action
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 Useful and relevant content
 Intuitive navigation and search
 The quick and easy checkout process
 Responsive design with full mobile support
Weaknesses are simply characteristics of a website that put you at a disadvantage or that can
prevent you from reaching your business objectives. If a characteristic is outdated or is
inadequate for its function, it can be considered a weakness. Here are some examples of nestle
website weaknesses:
 Outdated or ineffective design
 Ineffective or concealed calls to action
 Content that is not customer-centric
 Confusing structure and navigation
 The cumbersome and lengthy checkout process
 Lack of mobile support
Identify a competitive strategy and digital business strategy the
company has followed and provide recommendations with clear
justifications
Competitive strategy (slide 5)
Here Michael Porter’s competitive forces model is used to identify the competitive business
strategy nestle has followed.
Traditional competitors: In the food industry, Nestlé is a powerhouse. They spend hundreds of
millions to make them look more attractive. Companies continue to aspire to be competitive, but
customers will only prefer goods that are always better (Chaffey, 2019).
The threat of New Entrants: A part of Nestlé's Demand should be grabbed by new entrants.
Nestlé was able to gain significant market share thanks to its long experience, product
consistency, and customer loyalty.
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Bargaining Power of Supplier: Also, Nestlé has a large buying power. The organization prefers
to maintain long-term relationships with its vendors that guarantee product consistency.
Bargaining Power of Buyers: Nestlé acknowledges consumers' influence and takes concrete
steps to satisfy their specifications. Business is better aware of the health – Nestlé combines
health and well-being.
The Threat of Substitute Products: The threat of replacement products surrounds Nestlé. Items
identical to Nestlé directly. To keep its products competitive, Nestlé focused on health and well-
being (Burkitt, 2014).
Nestlé’s value chain (slide 5)
Value chain analysis of nestle is used for understanding the competitive strategy.
Figure: Nestlé’s value chain
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Digital marketing strategy (slide 5)
By supplying consumers with new, more precise slopes the Internet dampens the negotiation
strength of the networks of nestle. Internet infrastructure aims to lower variable costs and to tilt
costs to fixed costs. The Internet helps consumers to conveniently collect detailed product
information from nestling to market pricing for new products. If the Internet diminishes location
relevance, the regional demand is broadened.
Recommendations (slide 6)
Nestle should aim to offer a portfolio of products that evolve with consumer needs, offer good
nutrition, and delight the senses, contributing to healthier, balanced lives and a healthier planet.
Their long-term value creation model should be based on the balanced pursuit of resources
(Laudon, 2019). They should increase growth through innovation, differentiation, and by
offering relevant products and solutions to their consumers.
Identify their digital marketing strategies and options and provide
recommendations with clear justifications
The digital marketing strategies of nestle (slide 7)
Management of customer needs to be expected, identified, and satisfied. Digital marketing is
being addressed with a universal effects approach. They noticed that they wanted an internal
team that could develop the front end and directs all integrations (Chaffey, 2019). Whenever
these strategies are used simultaneously, a systematic approach is built to boost the market. They
provide a strong foundation for digital marketing. Some of the marketing strategies they use are
presented here:
Marketing of content: A kind of promotion of nestle, which does not directly advertise a brand
but seeks to inspire interest in its goods or services, includes the processing and distribution of
online content.
Search engine marketing (SEO): SEM is using paying tactics to improve search exposure, or
search engine marketing for nestle. Advertisers pay for advertisements on search engine results
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pages that appear as search results for SEM. They target keywords to screen an ad from the
company while a customer looks for the phrases.
Affiliate marketing: Affiliate Marketing is a type of success-driven commercialization whereby
an organization rewards one or more affiliates through an affiliate's marketing activities for each
visitor or client.
Remote commercialization: Mobile marketing of nestle means the marketing on or with a
mobile unit, the other one is more conventional and explains marketing on-the-go.
Pay per click: PPC reflects a pay-per-click, an online marketing model in which marketers pay a
fee each time they click one of their advertisements of nestle. It is essentially a way to purchase
visits to your website rather than continue to organically "earn" your visits (Bocij, et al 2018).
Recommendations (slide 7)
What they can't measure they can't improve, nestle strongly believe. Hence, they should have full
monthly reports. Their measurements should be such as page traffic, form submissions,
downloads, generated leads, closed calls, and even the sales figures. They should review the
schedule for the following month and hold weekly check-in meetings to ensure that all tasks
remain on the road.
Using a similar web market intelligence platform discuss the
customer traffic data and provide recommendations for further
improvement with clear justification
Discussion of customer traffic data by using similar web (slide 8)
The traffic data systems contain information about residents and travelers in-depth and in a
realistic way. It monitors output with aggregated anonym zed wireless data such that congestion,
incidents, and emergencies can be reduced.
Customer Traffic ranking
Global Rank Country Rank Category Rank
Worldwide United Kingdom Food and Drink > Groceries
431,084 30,925 352
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The customer traffic ranking of this site as compared to all other sites in the work is the global
ranking which is 431,084. The country ranking according to another country is 30,925. And the
category ranking is 352.
Traffic Overview
1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov
0
10
20
30
40
50
60
70
80
50
60 65 60
75
60
On desktop and mobile web on the last 6 months
Chart: Customer traffic overview of nestle UK (similarweb.com)
Engagement
Total visits 58.16K-22.65%
Avg. visits duration 00:01:01
Pages per visit 3.50
Bounce rate 71.43%
Traffic because of Searching: 75.31%of traffic is from Search
100.00% Organic
0% Paid
Top 5 Organic keywords
Out of 464
nestle 6.08%
postback 3.43%
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nestle the UK 2.00%
nestlé UK 1.77%
nestle careers 1.64%
Social
4.34%of traffic is from Social
 Twitter- 33.85%
 Linkedin- 29.71%
 Facebook- 22.78%
 Reddit- 13.66%
Recommendations (slide 9)
 Affiliate Marketing
 They should enhance brand and traffic on the website.
 They should make many marketing choices, including Related Demographics, a strategy
powered by AI to reach the audience (Bocij, et al 2018).
 They should build viewers for the established trade from 1st party info.
 Viral Marketing
 Mobile Marketing
 They need to boost the revenue or leading amount for site meetings.
 Enhance dynamic recurring billing website migration
 Only pay for announcements that are clicked on.
 Retarget internet shopping in-store stores.
 Go to tourists to the new venue, current clients, car leaving shoppers, and more.
 Enjoy complete power with a website for self-service.
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Identify the company’s e-CRM and social network channels linked
with the website and provide recommendations/suggestions for
further improvement with clear justification
E-CRM of nestle (slide 10)
Depending on the market, proposals for future customer relationships (e-CRM) can vary
greatly. The management of food giant Nestlé showed what this entails with a very unusual,
forward-looking example of e-CRM. The history is that food and nutrition health concerns are
highly relevant worldwide, with Nestlé on fire because of its toxic goods, mostly filled with
sugar, and environmental harm. Nestlé surprises its consumers in Japan with food and beverages
that are independently crafted and balanced (Chaffey, 2019). The company's web portal 'Nestlé
Wellness Ambassadors' coordinate and have 'p customized nutrition' Users will have their DNA
tested on the subscription service, with a home test kit being provided by Nestlé. Big, colorful
panels were also common for the best possible product placement. Conversely, of course, this
means that in the best situation, thousands of friends and associates can learn of this anytime a
business tries to please, excite, or surprise any client. The big challenge for CRM and corporate
marketing is not so much to remind consumers about new goods and deals (Bocij, et al 2018).
The social media channels that nestle website uses (slide 11)
Facebook: With more than 2 billion users using this social network every month, Facebook is
the most common social network also for nestle.
Twitter: Twitter material of nestle varies somewhat. As Twitter restricts a tweet to 280
characters, the post must be on-point, unlike on other platforms.
YouTube: YouTube is Google's second-largest social media site and the second-largest search
engine.
Recommendations (slide 10)
The simplest, most straightforward path to consumer loyalty promotion is the e-CRM app. CRM
helps to personalize and perfect the customer experience, be it with a surprise birthday gift or
following up on a recent order (Chaffey, 2019). So, nestle should use the e-CRM app more
deeply in their management.
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Identify the cyber security measures nestle website has in place
discuss if the company website comply with e-business ethics and
provide recommendations with justification
Cyber security measures nestle website has in place (slide 12)
Cyber protection is a practice of defending against malicious attacks on computers, websites,
mobile devices, electronic services, networks, and records. It is also known as the protection of
IT and electronic content (2017). The cyber security measures that the company has in place for
itself are given here:
Keeping up-to-date Apps: They try to maintain up-to-date all the platforms and scripts
installed. In common web-based applications, hackers are actively pursuing security bugs and the
programs need to be modified for security problems.
Embed the pages login: Nestle uses the login pages with SSL encryption and identity measure
And antivirus protection. SSL enables the secure transfer of personal information including
credit card numbers, social security numbers, and login credentials.
Backing up the data: Nestle Regularly back up the website and use firewall protection. If their
website becomes unavailable or if customer’s data is destroyed, they can maintain copies of all
their website information (Chaffey, 2019).
E-business ethics that the company uses (slide 13)
To engage with the customer and to provide innovative services, they capture, store, and use
information which puts great emphasis on their data security. Consumers, staff, vendors, and
investors are all waiting for us to follow the highest privacy and protection requirements. Both
organizations of the Nestlé Community meet Nestlé's Data Security Program focused on globally
recognized data protection standards. To meet regulatory developments, our Privacy Program
will continue to grow (2017). They are responsible for administering the Nestlé Privacy Program
in their countries and territories, with more than 60 data security champions worldwide.
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Recommendations (slide 12)
Since the 2000s and almost all, digital marketing has evolved exponentially. For cyber security
the company should use unified threat management and encryption method. Lack of ethics is a
product of arrogance and mistaken legal counsel when others are aware (Laudon, 2019). In
summary, secrecy, confidentiality, trust, intellectual property rights, certain environmental
concerns are the key ethical problems encountered by the corporation when doing business
related to electronic commerce. The company must therefore take further care of and track its
company ethics.
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