Marketing Strategy of Nestle

BBA lll
Ali Raza
14-Arid-4830
Contents

Introduction to Nestl
Business Portfolio & Growth Strategies
Marketing Environment
Market Segmentation & Positioning Strategy
Marketing Mix of Nestle
Advertising Strategies
Conclusion
Introduction

Food and beverage company

Headquartered in Switzerland
Ranked #72 on the Fortune Global 500 in 2014
Nestls products include baby food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen food,
pet foods, and snacks.
Twenty-nine of Nestls brands have annual sales of over CHF1 billion
(about US$1.1 billion)
Nestl has 447 factories, operates in 194 countries, and employs around
339,000 people.
History

Henri Nestl establishedNestl in 1867 in Switzerland (Vevey

HQ)

His first product was lactogen formula for

infants by the name Farine Lacte
History ( logo evolution )

1938

1875

1966 1988
History

In September 1866, in Vevey, Henri Nestl developed milk-based baby

food.
In August 1867, Anglo-Swiss Condensed Milk Company was established.
In 1875 Henri Nestl retired. but the company, under ownership of
Daniel Peter , retained his name as Socit Farine Lacte Henri Nestl.
In 1877, Anglo-Swiss added milk-based baby foods to their products. In
the same year Nestl Company added condensed milk to their portfolio.
 In 1904, Both companies participated in the creation and development of
Swiss chocolate and Nestle marketing the first chocolate - milk Nestl.
In 1905, the companies merged to become the Nestl and Anglo-Swiss
Condensed Milk Company and retaining that name until 1947.
In 1947, Merger with Alimentana S.A. (Maggi) and company named as Nestl
Alimentana S.A. 1971.
In 1974, Become stakeholder of L'Oreal .
1977 Acquisition Alcon Laboratories Inc.
1985 Acquisition of Carnation
1988 Acquisition of Rowntree
1990 Cereal Partners Worldwide
 1991 Beverage Partners Worldwide
1998 Acquisitions of Spillers Pet foods
2002 Acquisition of Ralston Purina
2002 Acquisition of and Chef America and merger into Dreyers
2002 join Cadbury and purchased American company Hershey's
In December 2005, Nestl bought the Greek company Delta Ice
Cream for 240 million.
In January 2006, it took full ownership of Dreyer's Grand Ice
Cream Holdings, Inc
In November 2006, Nestl purchased the Medical Nutrition
division of Novartis Pharmaceutical for US$2.5 billion.
2007 Acquisitions of Ovaltine
 In April 2007, Nestle bought US baby-food manufacturer Gerber
for $5.5 billion.
1 March 2010 , Bought Krafts Food (Frozen Pizza) for $3.7
billion
In February 2013, Nestl Health Science bought Pamlab.
In February 2014, Nestl sold its PowerBar sports nutrition
business to Post Holdings, Inc.
In December 2014, Nestl announced that it was opening 10 skin
care research centers worldwide
2015, opening of Education and Longevity Development (SHIELD)
centers
Name Nestle S.A

Logo

Industries served Food Processing

Geographic area served Worldwide

Headquarters Switzerland
Current CEO Paul Bulcke
Revenue CHF 92.2 Billion (2012)
Profit CHF 10.6 Billion (2012)
Employees 328000 (2012)
Main Competitor Unilever VN, Hershey Foods, Kraft Foods,
Cadbury Schweppes, Group Danoe
Nestl in Pakistan

Nestl Pakistan Ltd. is registered on Karachi and Lahore stock

exchanges.
Established its first production unit in 1988 in Sheikhupura named
as Nestl Milkpak Limited. Now Nestl Pakistan Ltd.
Headquarter in Lahore
Multi Product Factories in Sheikhupura, Kabirwala, Karachi
Water Factories: 1 in Islamabad , 2 in Karachi
Mission Statement

"We strive to bring consumers foods that are safe, of high

quality and provide optimal nutrient to meet physiological
need. Nestle helps provide selections for all individual taste and
lifestyle preferences.

Motto:
"Good Food, Good Life."
Vision Statement

"Nestl's aim is to meet the various needs of the consumer

everyday by marketing and selling foods of a consistently
high quality."
Organizational Hierarchy:
NATIONAL
MANAGER

ZONAL
MANAGER

REGIONAL
MANAGER

SALES
AREA SALES
ADMINISTRATION
MANAGERS
EXECUTIVE

TERRITORY
INCHARGES

SALES
DISTRIBUTION
STAFF
 Organizational
Structure
National Sales Manager
National Sales Manager

Zonal Sales Manager

Zonal Sales Manager

Regional Sales Manager

Regional Sales Manager

Constomer
Constomer System Event
Service
Area
Area System Event
Service Support
Support Management
Management
Manager
Manager Manager
Manager Executive
Executive
Constomer
Constomer Territory
Territory System
System
Service
Service Support
Support
Manager
Manager In-Charge
In-Charge Officer
Officer

Sales
Sales Event
Event Chiller
Chiller
Associates
Associates Management
Management Technician
Technician
Officer
Officer

DSR Loader
Loader
Portfolio
(Beverages)

Nescaf
Nespresso
Nesquik
Milo
Nescau
Nestl Pure Life
Deer Park
Vittel
Nestl Aquarel
Milk products, nutrition and Cream Products

Nido
Nespray
La Lechera
Carnation
Prepared dishes, cooking aids and pet care

Maggi
Stouffers
Buitoni
Herta
Thomy
Crosse & Blackwall
Winiary
Friskies
Chocolate, confectionery and biscuits:
Kit Kat
Smarties
Lion
Crunch
After Eight
Polo
Cailler
Butterfinger
Orion
Caja Roja
Sao Luiz
Star
Cosmetics

L'Oreal
BCG Approach
High
Question Mark Stars
Dont know what to do with
Opportunities; Doing Well,
Decide whether to increase Great opportunities
Market Growth

investment
Magi 2-minuts noodles Mineral Waters Brands: NPL

Dogs Cash Cow

Weak in Market, Doing well in no growth
Difficult to make Profit market with limited
opportunities.
Power Bar, Lean Cuisine Nesquit

Low High
Market Shares
Growth Strategy

Transnational strategy : Low cost, Different products, Different

Markets, High local responsiveness
Localization strategy : brand name resonates locally as the
cultural habits difference in different nations
Customization : delivering goods that are modified to satisfy a
specific customer need. 85 percent of the market for instant coffee in
Mexico. 66 percent of the market for powdered milk in the Philippines
SWOT Analysis

Strength Weakness
Product diversity Criticism

Acquiring and merger Incident in India

Opportunity Threats
Building partnership
Broad Sale Channel Changing trend
Raising Prices of Raw materials
Marketing Environment

Micro Environment:
a) Suppliers: Suppliers provide the raw material resources, unfinished
goods and labors to the company in order toproduce goods and services
b) Marketing Intermediaries: The market intermediaries of the company
help to advertise, sell and distribute its product to the endcustomers.
c) Customer: Immediate customers of Nestle are retail and grocery
stores
d) Competitors: Petra Foods Limited, Yeo Heap Sang Limited, Mail
Dairy Industry Co. Ltd
Marketing Environment

Macro Environment:
a) Political Environment
b) Cultural Environment
c) Economic Environment
d) Technological Environment

Market Segmentation

Geographic
Demographic
Psychographic
Behavioral
Geographic Segmentation

Weather:
Nescafe Ice: Summer
Nescafe Classic: Winter
Demographic Segmentation

Age:
Lectogen: Lactogen 1 is for babies less than 7 months

Lectogen 3 Is for babies below 12 months

Cerelac: For under 1 year baby

Nido: For children of 2 year

Demographic Segmentation

Occupation:
Nescafe Classic: For those who work hard
Income:
Nestle segmented their market based on customer's earnings in an
effective way
Psychographic Segmentation

Life style and personality:

Nestle provides KIT KAT these people who really want to enjoy
chocolate.
Nescafe 3 in 1 is for exclusively those customers who are really
busy and do not have enough time.
Behavioral Segmentation

Benefits:
Cerelac:
For those customers who want more benefits from the products
Cerelac contains vitamin, mineral and all nutritious elements for
babies
Target Marketing

Undifferentiated:
Nescafe 3 in 1 * Maggi noodles * Kit Kat
Differentiated:
Koko Krunch, Nesquick: Chocolate milk who want to get taste of
chocolate.
Nescafe Ice: Cold coffee for the people in hot weather.
Concentrated:
Nestl specializes in producing baby foods
Positioning Strategy

Product Differentiation: Nestle brings a lot of product for

target different customers. As they provide 25 types of minerals in
Nido for children.

Channel Differentiation: Nestle reach their products to

the customers through their expert market salesman and
transportation. So that their products are much available to their
respective customers.
Positioning Strategy

Image differentiation: Nestls logo is totally different

from its competitors that are greatly accepted by its customers.

People differentiation: Nestle has a large number of

employees that are highly educated and trained.

Service differentiation: better service for its respective

customers from its competitors, 24 hours hot line service
Marketing Mix

P
Product Marketing
P
Mix
Price

P P
Advertising

Nestl is doing the selective demand advertising that is intended

to stimulate demand for individual brands.
In the advertisement of NPL the message is given that,
There isone water, which gives you, hope, happiness and trust and
that water is Nestl Pure Life. It is pure, safe, and healthy water.
Slogan of NPL : JIYO! Kay yehi hay zindagi.
Advertising

Sales Promotion:
Public Relations:
Publicity:
Conclusion:

The advent of consumer food products has brought a immense

change in the field in the consumers food habit. Nestle has
done well to enhance its customers loyalty operating as a
market challenger in its industry. Nestle is one of the largest
food processing company. Their products and quality mainly
depends on their experience and efficiency. Nestle believe on
quality that leads to good business and good development. It
has segmented the market based on certain clustered
preferences deploying multi-stage segmentation approach to
meet individual needs of the customers. Offering new
products would also close its existing products gaps to a great
 In our report, we try to present the Marketing Strategies through
segmentation, target marketing and positioning of Nestle
Bibliography

http://www.academia.edu/
http://www.marketing91.com/
https://en.wikipedia.org/
www.slideshare.net/
http://www.nestle.com/
http://www.strategicmanagementinsight.com/
http://bib.kuleuven.be/
www.gotabout.info/
Thank You