University of Derby: Strategic Marketing of Nestle Global Report

This report provides a comprehensive analysis of Nestle Global's strategic marketing management. It begins with an executive summary and introduction, outlining the report's objectives and scope, which is to discuss consumer behavior and decision-making processes related to Nestle Global. The report then delves into the marketing environment, including SWOT and PESTLE analyses to assess Nestle's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors influencing its operations. Porter’s Five Forces are also used to determine the competitive environment. The report further examines Nestle's positioning and targeting strategies, including the 4C concept, and outlines strategies for growth and marketing objectives, using the BCG and Ansoff matrices. The marketing mix (7Ps) is discussed, followed by a section on budget, measurement, and control. The report concludes with a summary of findings and recommendations.

Running head: STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Name of the Student
Name of the University
Author Note

1STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Executive Summary
The chief purpose of this report is to confer about the buyer’s attitude and the conclusion
building procedure in connection to Nestle Global in India. The report mainly discusses the
macro environment as well as micro environment relating to Nestle Global in India. This
report also takes into account the frameworks as well as the approaches which can assist in
examining the present situations of Nestle Global in India. In this report, a thorough
examination will be done on the marketing plans as per the objectives of the organization and
accordingly the part played by the company in attaining the goals.

2STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Table of Contents
Introduction................................................................................................................................3
Marketing Environment.............................................................................................................4
SWOT Analysis.....................................................................................................................4
PESTLE Analysis...................................................................................................................8
PORTER’S 5 Forces............................................................................................................10
Positioning and Targeting........................................................................................................12
4 C Concept..........................................................................................................................15
Strategies for Growth and Marketing Objectives.....................................................................17
BCG Matrix..........................................................................................................................17
Ansoff Matrix.......................................................................................................................18
The Marketing Mix..................................................................................................................19
Budget, Measurement and Control..........................................................................................20
Conclusion................................................................................................................................22

3STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Introduction
In this report, our discussion will be on Nestle Global, one of the premium and old
multinational organization, which can be said as a household name. The report will analyze
the entire marketing plan which will use various strategy models like BCG Matrix, Porter’s
Generic Strategy, SWOT and PESTLE analysis as well as taking 7P and 4C to analyze the
positioning statement and marketing mix of the company. In the marketing plan the
discussion will support the organizational objectives, demonstrates the understanding of the
stakeholder needs and will help to show consideration of external and internal environment,
which will help to outline the plan to be evaluated.
Nestle, a multinational enterprise from Switzerland specialized in making food and
drink, has headquarter in Vevey, Vaud in Switzerland. It can be termed as the biggest food
company in the world in terms of credits and the other metrics. The products include food for
babies, edible grains, dairy commodities, refreshments, chilled food along with the ice cream,
pet foods and so on. The company started in 1866 as Anglo-Swiss Condensed Milk
Company. Henri Nestle had manufactured baby food in 1867 and afterwards, the company
combined with the Anglo-Swiss organization to become the Nestle Group of today. There are
over 300,000 lakh employees in the company which operates in 189 countries and has 447
factories, contributing in the revenue of CHF 92 billion. The chief intention of this report is to
discuss the company’s dairy commodities. In relation to Nestle Global, the report will discuss
on the whole marketing plan as well as the decision making. The report also examines micro
as well as macro environment of the company by using the PESTLE structure. The report
discusses about the important as well as the threatening factors to the company. This report
also focuses on the marketing strategy of Nestle in India in relationship to the goals of the
organization and the part that marketing can play in fulfilling the objectives.

4STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Marketing Environment
SWOT Analysis
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are cost
effective and sold at a fast rate in market. FMCG have a brief counter life, either because of
huge interest from consumer or fast deterioration of the product. SWOT analysis is a
marketing tool which helps to review the micro environment of the company which in turn
finds the strong and weak points of Nestle India and the chances and dangers the company
must focus over an adjustment of Nestlé’s strengths to such powers. A SWOT analysis is
performed to allow a demonstration of the resources and competencies of a company, which
can be adjusted in future to provide competitive advantage (Armstrong et al. 2015).
INTERNAL FACTORS
STRENGTHS WEAKNESSES
World renowned brand Controversy relating with Maggi
Extensive distribution system Brand architecture
Broad Product portfolio Legal & consumer issues
Large workforce
R & D centers
Brand equity
OPPORTUNITIES THREATS
Healthy breakfast Competition in the market
Expanding market Price of commodities
Increasing Income levels Buyers power
Strategic Alliances

5STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Concentrating more on R & D to handle
ethical issues
EXTERNAL FACTORS
Figure 1.1: SWOT Analysis of NESTLE India
Source: Created by the Author
Strengths: Factors which help to build or enhance the business, are discussed below:
World famous brand: Nestle is listed in Fortune 500 Company and the largest
food company globally measured in terms of revenue. Nestle India does exclusive branding
of their various products or brands which helps the company to create consciousness about
their different categories of brands in the marketplace. This also helps them to held on the
brand image, because if a branded product like Maggi is concerned, which was actually
affected in India, it does not have less or nothing on the sale of Coffee or Tea or other
products of the company.
Extensive distribution system: The various and varied product portfolio of Nestle
has successfully cracked not only the urban market, but the rural market as well. The
distribution methods are suitable for the locality as well and disintegration in logistics and
supply chain, including road side vendors, movable street markets, door-to-door sellers &
pharmaceutical shops has aided the organization to make their products seeable in the
marketplace.
Broad Product portfolio: Nestle Global has above 8000 products under its brand
which includes beverage products like coffee, mineral water, breakfast cereals, soups and
sauces, and many more. Nestle have deep variety of products under each category to fulfill
the various desires & wants of the buyers, according to their tastes and preferences.

6STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Large workforce: Nestle have over 300,000 global employees who are working on
continuous basis to make the products or brands accessible in everywhere possible. This will
help the company to counter its competitors in various places worldwide.
Research & Development centers: Nestle possess the largest food & nutrition
examination organization globally, where approximately 5000 people are engaged in research
and development of the products, as well as the company invests money and do examine
partnerships with business allies and universities. The company has 21 research centers
present worldwide.
Brand equity: Nestle is the 36th top rank brand in the world as of 2016 which essays
many things about the brand equality of the company. It is the commercial value that assumes
from the approach of the consumer towards the brand name of Nestle.
Weaknesses: Factors which should be resolved or reduced are discussed below:
Controversy relating with Maggi: Maggi was banned in India in 2015 because it
contained preservatives that were damaging the product. This afflicted the quality name and
brand equity of Maggi as well as Nestle which were continued for a long period of time.
However, it was re-launched and Nestle attempted to assure the people about the quality of
Maggi and spreading awareness about the product (Garg 2015).
Brand architecture: Nestle possess a number of brands under the same category so
administering such a huge number of exclusive brands can create clash of interest. In longer
run it may hamper the growth of the company, or exit of a particular product from the same
brand from the marketplace.
Legal & consumer issues: Though Nestle is a worldwide popular food mammoth, it
has faced disputes over the years, for example, boycotting the Nestle baby food formula,

7STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
child labor used by suppliers, deforestation and many more, and all this promoted a negative
word of mouth promotion and hampered the brand image of the company.
Opportunities: Factors responsible for expanding the business are discussed below:
Healthy breakfast – Products like Maggi, Oats or other nutritious breakfast
substitutes have a huge response in the market and this will gradually increase in the coming
years as most of the breakfast substitutes are substantial and people are transforming
themselves as more health conscious nowadays. Still, Nestle have to work more to penetrate
when it comes relating to the Cereals.
Expanding market: Nestle has entered into many markets & piercing rapidly and
vigorously in the rural markets by the help of its strong logistics and supply chain and
conversion of the marks of disorganized business to organized business will help to lead to
more expansion of the business of Nestle Global.
Increasing Income levels: Some factors like balanced political plots, developed
literacy rate & reserved inflation are responsible for the disposable earnings of the people are
increasing. As a result, there is an increase in demand & change in the lifestyle of the
consumers.
Strategic Alliances: Nestle is committed in making partnerships with many major
companies like Coca-Cola, for opening the scopes for the organization. Nestle is one of the
principal shareholders of L’Oréal, the best cosmetics company globally. So making
partnership with other big companies will aid the company to grow more.
Concentrating more on R & D to handle ethical issues: Recent complaint in India
for presence of lead in Maggi noodles had created obstruction in the forthcoming
development of the company (Garg 2015). In order to tackle these health issues, Nestle

8STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
Global have to invest in research and development more to come up with a number of
varieties of hygienic food products and to avoid these complaints.
Threats: Factors that should be avoided are discussed below:
Competition in the market: With the increase of local as well as national players, in
the marketplace, it’s becoming more difficult for the companies to make a distinction
among themselves from the other players. There is also warning from duplicate brands or
products hampering the brand image of Nestle in the marketplace.
Price of commodities: Increase in the price of materials will lead to additional
increase in the price. Additional growth in price will lead to lessening in sales, limits and
change in brands which will reduce the growth of the company as well as help the
competitors to gain from the scenario.
Buyers power: Presence of variant customer goods market where there exists of a
number of brands which are demanding different types of advantages, it is very hard for
consumers to stay with a particular product or brand & this outcomes into brand changing
where customer has the potentiality to select a brand depending on various factors like
preference, availability, recommendation by reference group & product price. This will affect
the revenue earning by Nestle.
The SWOT analysis discussed above shows that Nestle India enjoys a number of
strengths, which changes into the development of base wealth and capabilities, which will
help to improve their competitive position. Overall, Nestlé’s strengths dominate over the
weaknesses and some of the weaknesses are solved when strategic actions are taken. A
SWOT analysis, thus, bases the improvement of future strategic options.

9STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
PESTLE Analysis
PESTLE analysis is needed for critical frame working to judge business acts through
identification of the basic political, economic, social, technological, legal and environmental
forces which have influences on the industry (Armstrong et al. 2015).
Figure 1.2: PESTLE Analysis
Source: Created by the Author
Political Factors: Nestle Global has its business in many countries. The government
law and control are separate for separate places. Nestle have to target on these governmental
motions like taxation, import export excise duties, government permission to enter in to the
target section and also to announce hygiene products granted by the regulated bodies. Nestle
must acknowledge and consider every risk that could be included in the latest flows keeping
in mind the stability of the government. Albeit Nestle is such an organization which actually

10STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
promotes the government health instructions by maintaining the quality principles, rules and
regulations.
Economic Factors: Various countries have various level of improving the economy,
which is different everywhere. So, Nestle has to perform dissimilar policies relating to
financial field for distinct targeted sections. Setting the product price is a major decision to
perform in the time of strategizing the financial policies, which are set according to the
increase speed and the purchasing power of the sections.
Social Factors: The logic and assumptions of the consumers control the actions of a
business. The civilization, behaviour, standard and ethics enforce Nestle to submit the perfect
product to the right segment. Nestle till now has treated the social outlook well. The
organization has properly understood the idea the importance of the changing attitude of the
consumer behaviour.
Technological Factors: Technology provides lots of opportunities for the
improvement of fresh products or the existed ones. Fresh approaches of marketing such as e-
commerce and internet very important to target in this modern time, like the use of state of
the art technology and meeting the worldwide benchmarks. The large use of social media
platforms has reduced the gap between the direct communication between the customer and
the company.
Legal Factors: It involves the juridical environment of an organization and its control
on the operations to face and satisfy the want and decrease the price. Like, Nestle has to
pursue the health as well as security laws for their employees and to manufacture hygiene
products for the customers.
Environmental Factors: The planet is more alert nowadays to possess neat and clean
environment. Nestle have to pay attention on the rules and regulations and have to

11STRATEGIC MARKETING MANAGEMENT OF NESTLE GLOBAL
manufacture healthy food with environmental friendly operations. Nestle also pays attention
towards the social contribution.
PORTER’S 5 Forces
Porter’s Five Forces Model is a major tool to analyse the industrial criteria and to
improve the business plans for Nestle. There are five various factors that will be discussed to
feature the attractiveness and productivity of the marketplace (Armstrong et al. 2015):
Figure 1.3: PORTER’S 5 FORCES
Source: Created by the Author
Threat of New Entrants: The new entrants are always a threat for the existing
company if the market is lucrative but if the marketplace has been blocked to a definite
resource and it possess less developmental areas, it becomes hard for nrewcomers to get into