Barani Institute of Sciences

(Sahiwal Campus)
JV
PMAS-Arid Agriculture
University

Marketing Strategy
Nestl

of

Presented by:
Faisal Javed
15-Arid-3971

Presented to:
Mr. Adnan Khan

Contents

Page

Introduction to Nestl
History of Nestl4
Business Overview9
Nestle in Pakistan10
Nestls Mission...11
Mission Statement....12
Vision Statement...12
Organizational Hierarchy13

Business Portfolio & Growth Strategies

Portfolio.....16

BCG Matrix...19
Growth Strategy...20
SWOT Analysis....22

Marketing Environment
Internal Environment..25
Micro Environment.........25
Macro Environment....28

Market Segmentation & Positioning Strategy

Market Segmentation..30
Bases of Segmentation......30
Target Marketing..32
Positioning Strategy....34

Marketing Mix of Nestle

Product..35
Price...36
Placement.....36
Promotion..37

Advertising Strategies
Advertising39
Sales Promotion....39
Public Relations.40
Publicity......40

Conclusion

Bibliography

Introduction to Nestle
Nestl S.A is a Swiss transnational food and beverage company headquartered in
Vevey, Vaud, Switzerland. It is the largest food company in the world measured by
revenues, and 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. Twentynine of Nestls brands have annual sales of over CHF1 billion (about US$1.1
billion), including Nespresso, Nescafe, Kit Kat, Smarties, Nesquik, Stouffers, Vittel,
and Maggi. Nestl has 447 factories, operates in 194 countries, and employs around
339,000 people. It is one of the main shareholders of LOreal, the worlds largest
cosmetics company.
Nestl was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George Page and Charles Page, and Farine Lacte
Henri Nestl, founded in 1866 by Henri Nestl (born Heinrich Nestle). The company
grew significantly during the First World War and again following the Second World
War, expanding its offerings beyond its early condensed milk and infant formula
products. The company has made a number of corporate acquisitions, including
Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971, Rowntree Mackintosh
in 1988, and Gerber in 2007.

Nestl has a primary listing on the SIX Swiss Exchange and is a constituent of the
Swiss Market Index. It has a secondary listing on Euro next. In 2011, Nestl was
listed No. 1 in the Fortune Global 500 as the worlds most profitable corporation.
With a market capitalization of US$239.6 billion, Nestl ranked No. 11 in the FT
Global 500 2014.

History of Nestl:
Nestls origins date back to 1866, when two separate Swiss enterprises were
founded that would later form the core of Nestl. In the succeeding decades, the two
competing enterprises aggressively expanded their businesses throughout Europe
and the United States.
In August 1867, Charles (US consul in Switzerland) and George Page, two brothers
from Lee County, Illinois, USA, established the Anglo-Swiss Condensed Milk
Company in Cham, Switzerland. Their first British operation was opened at
Chippenham, Wiltshire, in 1873.
In September 1866, in Vevey, Henri Nestl developed milk-based baby food, and
soon began marketing it. The following year saw Daniel Peter begin seven years of
work perfecting his invention, the milk chocolate manufacturing process. Nestl was
the crucial co-operation that Peter needed to solve the problem of removing all the
water from the milk added to his chocolate and thus preventing the product from
developing mildew. Henri Nestl retired in 1875 but the company, under new
ownership, retained his name as Socit Farine Lacte Henri Nestl.

The logo that Nestl used until 1966.

In 1877, Anglo-Swiss added milk-based baby foods to their products; in the following
year, the Nestl Company added condensed milk to their portfolio, which made the
firms direct and fierce rivals.
In 1904, Franois-Louis Cailler, Charles Amde Kohler, Daniel Peter and Henri
Nestl participated in the creation and development of Swiss chocolate, 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, when the name Nestl
Alimentana SA was taken as a result of the acquisition of Fabrique de Produits
Maggi SA (founded 1884) and its holding company, Alimentana SA, of Kempttal,
Switzerland. Maggi was a major manufacturer of soup mixes and related foodstuffs.
The companys current name was adopted in 1977. By the early 1900s, the company
was operating factories in the United States, the United Kingdom, Germany, and
Spain. The First World War created demand for dairy products in the form of

government contracts, and, by the end of the war, Nestls production had more than
doubled.
Nestl felt the effects of the Second World War immediately. Profits dropped from
US$20 million in 1938, to US$6 million in 1939. Factories were established in
developing countries, particularly in Latin America. Ironically, the war helped with the
introduction of the companys newest product, Nescaf ("Nestls Coffee"), which
became a staple drink of the US military. Nestls production and sales rose in the
wartime economy.

After the war, government contracts dried up, and consumers switched back to fresh
milk. However, Nestls management responded quickly, streamlining operations and
reducing debt. The 1920s saw Nestls first expansion into new products, with
chocolate-manufacture becoming the companys second most important activity.
Louis Dapples was CEO till 1937, when succeeded by douard Muller till his death
in 1948.
The end of World War II was the beginning of a dynamic phase for Nestl. Growth
accelerated and numerous companies were acquired. In 1947 Nestl merged with
Maggi, a manufacturer of seasonings and soups. Crosse & Blackwell followed in
1950, as did Findus (1963), Libbys (1971) and Stouffers (1973). Diversification
came with a shareholding in LOreal in 1974. In 1977, Nestl made its second
venture outside the food industry, by acquiring Alcon Laboratories Inc.
In the 1980s, Nestls improved bottom line which allowed the company to launch a
new round of acquisitions. Carnation was acquired for $3 billion in 1984 and brought
the evaporated milk brand, as well as Coffee-Mate and Friskies to Nestl. The
confectionery company Rowntree Mackintosh was acquired in 1988 for $4.5 billion,
which brought brands such as Kit Kat, Smarties and Aero.
The first half of the 1990s proved to be favourable for Nestl. Trade barriers
crumbled, and world markets developed into more or less integrated trading areas.
Since 1996, there have been various acquisitions, including San Pellegrino (1997),
Spillers Pet foods (1998), and Ralston Purina (2002). There were two major
acquisitions in North America, both in 2002 in June, Nestl merged its US ice
cream business into Dreyer's, and in August a US$2.6 billion acquisition was
announced of Chef America, the creator of Hot Pockets. In the same time-frame,
Nestl entered in a joint bid with Cadbury and came close to purchasing the iconic
American company Hershey's, one of its fiercest confectionery competitors, but the
deal eventually fell through. Another recent purchase included the Jenny Craig
weight-loss program, for US$600 million.
Nestl sold the Jenny Craig business unit to North Castle Partners in 2013.
In December 2005, Nestl bought the Greek company Delta Ice Cream for 240
million. In January 2006, it took full ownership of Dreyers, thus becoming the worlds
largest ice cream maker, with a 17.5% market share. In November 2006, Nestl

purchased the Medical Nutrition division of Novartis Pharmaceutical for US$2.5

billion, also acquiring, in 2007, the milk-flavoring product known as Ovaltine.
In April 2007, returning to its roots, Nestl bought US baby-food manufacturer
Gerber for $5.5 billion. In December 2007, Nestl entered into a strategic partnership
with a Belgian chocolate maker, Pierre Marcolini.
Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010. The
sale was to form part of a broader US$39.3 billion offer, by Novartis, for full
acquisition of the worlds largest eye-care company. On 1 March 2010, Nestl
concluded the purchase of Kraft Foods' North American frozen pizza business for
$3.7 billion.
In July 2011, Nestl SA agreed to buy 60 percent of Hsu Fu Chi International Ltd. for
about $1.7 billion. On 23 April 2012, Nestl agreed to acquire Pfizer Inc.'s infantnutrition, formerly Wyeth Nutrition, unit for $11.9 billion, topping a joint bid from
Danone and Mead Johnson.
In February 2013, Nestl Health Science bought Pamlab, which makes medical
foods based on L-methylfolate targeting depression, diabetes and memory loss.
In February 2014, Nestl sold its PowerBar sports nutrition business to Post
Holdings, Inc. Later, in November 2014, Nestl announced that it was exploring
strategic options for its frozen food subsidiary, Davigel.
In recent years, Nestl Health Science has made several acquisitions. It acquired
Vitaflo, which makes clinical nutritional products for people with genetic disorders;
CM&D Pharma Ltd., a company that specializes in the development of products for
patients with chronic conditions like kidney disease; and Prometheus Laboratories, a
firm specializing in treatments for gastrointestinal diseases and cancer. It also holds
a minority stake in Vital Foods, a New Zealand-based company that develops
kiwifruit-based solutions for gastrointestinal conditions.
In December 2014, Nestl announced that it was opening 10 skin care research
centers worldwide, deepening its investment in a faster-growing market for
healthcare products. That year, Nestl spend about $350 million on dermatology
research and development. The first of the research hubs, Nestl Skin Health
Investigation, Education and Longevity Development (SHIELD) centers, will open
mid 2015 in New York, followed by Hong Kong and So Paulo, and later others in
North America, Asia and Europe. The initiative is being launched in partnership with
the Global Coalition on Aging (GCOA), a consortium that includes companies such
as Intel and Bank of America.

Business Overview:
Nestl is the world's leading nutrition, health and wellness company based in
Switzerland. It is the largest food company in the world measured by revenues.
Nestl's sells baby food, breakfast cereals, coffee, confectionery, dairy products,
frozen food, pet foods, yoghurt and snacks. It owns several major consumer brands
such as Stouffers, Nescafe, Kit-Kat, Carnation, Nestl Water, and many others

Name

Nestle S.A

Logo
Industries served
Geographic
served

Food Processing
area 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 a food processing company, which is registered on Karachi

and Lahore stock exchanges. It established its first production unit in 1988 in
Sheikhupura, Pakistan with the name of Nestl Milkpak Limited but its name has
been changed and now it is called Nestl Pakistan Limited.
Headquartered in Lahore, the Company operates five production facilities. Two of its
factories in Sheihupura and Kabirwala are multi product factories, while another one
at Karachi is already for production. One factory in Islamabad and two in Karachi
produce bottled water. Through its effective marketing and a vast sales and
distribution network throughout the country, it ensures that its products are made
available to consumers whenever, wherever and however.
Nestle Pakistan is a subsidiary of Nestle S.A.- a company of Swiss origin
headquartered in Vevey, Switzerland.

Sheikhupura Factory
The production facility, under the name of Milkpak Ltd. at Sheikhupura
commenced operations in 1981 as a producer of UHT milk. By 1988 it had
expanded its operations to producer butter, cream, desighee all under the
brand name MILKPAK and fruit drinks under the brand name FROST.
After Nestl S.A., Switzerland, took a major participation in Pakistan Ltd. In
1988, the Pakistan factory at Sheikhupura became a part of the joint venture
under the name of Nestl Milkpak Ltd.
Soon afterwards in 1990 the milk powder plant was established to produce
powder milk (NIDO). This was followed in subsequent years by the installation
of production lines of infant formulae (LACTOGENs), tea whitener
(EVERYDAY), chocolate drink-powder (MILO) growing up milk (NESLAC),
ready to drink chocolate drink (MILORTD), sugar confectionery (POLOMint),
fruit drinks (FROST), juices (ORANGE, APPLE, PINE APPLE, MANGO),
coffee (NESCAFE), flexible confectionery line (TOFFO and SOOTHERS),
bottled water (NESTLE PURE LIFE), plain and fruit yogurt, specialized infant
formulae(NAN 1 & 2).
During these years a variety of variants of different products were also
introduced as a part of expansion of products portfolio.
To meet the needs of safe storage for the ever expanding product range and
their increasing volumes, a National Distribution Center (NDC) was

constructed in 2000. Spread over 6614 sq uare meters, it can store up to

8300 pallets, approximately 8000 tons.

Kabirwala Factory
Nestl Pakistan acquired the factory in 1990 as a subsidiary and subsequent
to its meger with Nestl Pakistan in April 1997 it became a fully owned unit of
Nestl Pakistan Ltd.
A MAGGI NOODLES plant was installed in 1992, followed by a mil powder
plant for NIDO and GLORIA whose capacity was subsequently increased
several times. Then came a new butter line for producing bulk and cultured
butter. A dry milk line was installed for tea whitener powder (EVERYDAY) and
the milk powder plant was modified to produce NIDO enriched with vitamins
and minerals. The desi ghee plant was relocated form Sheikhupura Factory
and its capacity was doubled.
A National Distributions Center and an Occupational Health Center were
established and a new incinerator was commissioned with a scrap yard for
proper water disposal.

Nestles Mission:
Motto:
"Good Food, Good Life."

Nestles mission has scored 1.5 points out of 4.5, which is a very low score
compared to other companies missions. The statement includes products and
services, markets and self-concept concepts but lacks other 6 essential components.
The company doesnt mention any values, which guides its actions, in the statement
but provides them in addition to their vision:
To be a leading, competitive, Nutrition, Health and Wellness Company
delivering improved shareholder value by being a preferred corporate citizen,
preferred employer, preferred supplier selling preferred products.
Nestles vision and values address more stakeholders than the original mission and
should be combined into it to provide more information about the business. The

vision and values statement additionally includes concern for survival, public image
and employees components that the official statement lacks. The combined
statement would better communicate Nestles reason for being in the business to its
stakeholders.

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."

Vision Statement
"Nestle's aim is to meet the various needs of the consumer everyday by marketing and selling
foods of a consistently high quality."

Organizational Hierarchy:
Chairman of the Board
Peter Brabeck-Letmathe

Chief Executive Officer

Paul Blucke

Zone AMS: Americas

Laurant Freixe
Zone EMENA: Europe, Middle East, North Africa

Luis Cantarell
Operations

Magdadi Batato

Zone AOA: Asia, Oceania, Africa

Wan Ling Martello
Strategic Business Units, Marketing and Sales
Patrice Bula
Nestle Business Excellence
Chris

Johnson

Chief Financial Officer

Francois-Xavier Roger
Innovation, Technology and R&D
Stefan Catsicas

Nestl Water
Macro Settembri

Nestle Nutrition
Heiko Schipper

Nestle Professional
Martial Rolland

Human Resources
Peter Vogt

Corporate Communication
Eugineo Simioni

Corporate Governance
Compliance & Corporate
Services

David P.Frick

Top Level of Management:

It contains of board of directors, chief executive or managing director. The top
management is the final source of authority and it manages aims and policies for an
initiative. It dedicates more time on planning and coordinating functions.

The role of the top management can be summarized as follows:

Top management broad policies of the enterprise and lays down the objectives.
It issues necessary instructions for preparation of subdivision procedures, schedules,
budgets, etc.
It prepares strategic policies & plans for the initiative.
It appoints the executive for middle level for instance departmental managers.
It coordinates & controls the activities of all the departments.
It is also responsible for maintaining a contact with the outside world.
It provides direction and guidance.
The top management is also responsible towards the stockholders for the
performance of the initiative.

Middle Level of Management:

The branch managers and departmental managers constitute middle level. They are
responsible to the top management for the operative of their department. They
devote more time to directional and organizational functions.

Their role can be highlighted as:

They execute the plans of the organization in accordance with the policies and
directives of the top management.
They make plans for the sub-units of the organization.
They participate in training & employment of lower level management.
They understand and explain policies from top-level management to lower level.
They are also responsible for inspiring lower level managers towards better
performance.

Lower Level of Management:

Lower level is also known as operative/supervisory level of management. It contains
of supervisors, superintendent section, officers etc.

Their activities include

Assigning of jobs and tasks to various workers.
They instruct and guide workers for day-to-day activities.

They are responsible for the quality as well as quantity of production.

They are also entrusted with the responsibility of maintaining good relation in the
organization.
They communicate workers problems, suggestions, and recommendatory appeals
etc to the higher level and higher-level goals and objectives to the workers.
They help to solve the complaints of the workers.

Business Portfolio &

Growth Strategies of Nestle

Portfolio:
The strength of Nestls brands has given the company an unparalleled position on a
global basis across a wide range of product categories. Six worldwide corporate
brands, Nestl, Nescaf, Nestea, Maggi, Buitoni and Friskies contribute about 70%
of the group's total sales, with the Nestl brand itself contributing 40%. These brands
are the first choice of consumers around the world, whether as stand alone brands or
in combination with product brands such as KitKat and LC1. Nestl also owns
regional and national brands with which consumers have a close and often
longstanding familiarity. These brands enable consumers to express their
individuality and to respect their traditions whilst still enjoying the quality of a Nestl
product and, as such, are key elements of the Nestl portfolio. Nestls brands and
products are the focus of continual innovation and renovation so that they will be
relevant and appealing to todays and tomorrows consumers. As important as
ensuring that our brands meet and beat our consumers expectations is ensuring that
they are available whenever, wherever and however our consumers want them.

1. Beverages:
With well over 3000 cups drunk every second, sales of Nescaf have been growing
ever since 1938 when Nestl launched the first commercially successful soluble
coffee. Nescaf, which today includes ready-to-drink varieties, is by far the worlds
most popular brand of coffee. The Group markets traditional roasted coffees in

several European countries, as well as espresso coffee in capsules through

Nespresso. Nestl is also the worldwide leader in chocolate/malt beverages, with
brands such as Nesquik, Milo and Nescau. Nestl is present in fruit juices, where
its most important brand is Libbys in the United States, and in tea-based drinks,
particularly soluble and ready-to-drink Nestea. Nestl is the world leader in mineral
and spring water through brands such as Vittel, Contrex, Perrier, S.Pellegrino,
Levissima, Vera, Panna, Frst Bismarck and Naleczowianka in Europe and
Arrowhead, Poland Spring, Zephyrhills, Deer Park and Ozarka in the United
States. The roll out of the Nestl Pure Life brand, successfully launched in Pakistan
in 1998 and in Brazil in 1999, has continued in Asia and Latin America in 2000 and
will spread rapidly into other emerging markets. A spring water under the Nestl
Aquarel brand was launched in five European countries in 2000.

2. Milk products, nutrition and ice cream:

Nestl has long been a major player in the dairy business worldwide, originally with
well known shelf stable brands such as Nido, Nespray, La Lechera and Carnation,
then building a strong international presence in chilled dairy and ice cream under the
Nestl brand. Innovation and renovation play a major role in the development of milk
based products as well as of breakfast cereals, managed as a joint venture with
General Mills. The area of nutrition, with its benefits to health, well-being and fitness,
is having a significant impact on the development of our business. A wide range of
added value products such as start-up and follow-up formulas, growing-up milks,
cereals, enteral diets, oral supplements and performance foods are actively
developed and brought successfully to market under the Nestl brand.

3. Prepared dishes, cooking aids and pet care:

A diversified range of soups, stocks, sauces and culinary preparations, primarily
under the Maggi brand, is adapted to local tastes, recipes and ingredients in each
country. Maggi instant noodles are sold in the Far East-Pacific area, as well as
Europe, Africa and Latin America. Nestls frozen prepared dishes are marketed
mainly under two brands, Stouffers in the United States and Maggi in other regions
of the world. Nestl is present in Italian cuisine with Buitoni pastas and sauces, both
refrigerated and shelf stable. The Buitoni range also includes a wide choice of
frozen pizzas and recipe dishes. In Europe, a full range of delicatessen products and
cold meats is available under the Herta brand. The Group also manufactures cold
sauces and condiments under various brands such as Thomy, Crosse & Blackwell
and Winiary. Our increasingly important pet care business, under the Friskies
brand, is a strong number two in the global market.

4. Chocolate, confectionery and biscuits:

The global trend towards eating on the go provides opportunities for Nestl to grow
by offering new and improved confectionery concepts that respond to consumers
desire for a wider range of taste experiences, available whenever and wherever they

want them. The range includes international brands such as Nestl, Kit Kat,
Smarties, Lion, Crunch, After Eight and Polo as well as popular local brands such
as Cailler, Butterfinger, Rossiya, Orion, Caja Roja, Sao Luiz and Star.

5. Food Services:
Nestl first entered the food services market in the early eighties, targeting
institutions and restaurants. Over the next twenty years Nestl rapidly increased its
product offering and built itself into the market leader. Its strategy was reoriented in
1999 to turn the emphasis from being product driven to becoming more customer
focused. Nestl Food Services today spearheads the Groups drive into the fast
growing area of out-of-home consumption, enabling its customers to cater to the
impulse market and consumers desire to eat whenever, wherever and however they
want. It combines its expertise in the out-of-home market with Nestls high quality
brands such as Nescaf, Nestea, Nesquik, Maggi and Buitoni to enhance the
competitive advantage of its customers. It has also developed specific Nestl Food
Services brands such as Davigel, Minors and Chef to meet the requirements of
such diverse customers as catering companies, fast-food chains, hotels, restaurants
and airlines. Nestl Food Services success in creating products and services that
meet the requirements of its customers has enabled it to achieve a higher than
Group average level of growth at a higher than average level of profitability. It should
remain a growth engine for the Group as out-of-home consumption continues to
grow in popularity, driven by changes in demographics, socio-economic factors and
consumers growing demands for indulgence, convenience and new eating
experiences.

BCG Approach:
Nestle currently has the 69th highest revenue in the world, generating $98,484m
worth of sales in 2012. Nestle sell over 8,000 brands, ranging from bottled water to
pet food, of which 29 brands have sales of approximately $1 billion. However,
Nestles CEO, Paul Baulk, recently announced plans to divest (sell-off) underperforming brands due to poor sales. It is highly likely that the marketers at Nestle
have used the Boston Consulting Group Matrix (BCG Matrix) to identify which brands
to sell off.

Based on recent news sources and Nestls 2012 Annual Report, here is Nestls
current BCG Matrix for a selection of their brands:

Question Marks
Question Marks - these strategic business units (SBUs) have a low market share of
a high growth market. Magi 2-minute Noodles currently require lots of investment in
order to capitalize on the growing culinary segment, which may not offer the highest
return on investment in Nestls brand portfolio.

Stars
Stars - SBUs with a high share of a high growth market. Nestls wide range of
mineral water has benefited from the combination of healthier lifestyle trends and
emerging markets. These products require large amounts of investments in order to
differentiate the bottled water brands from competitors in mature markets and grow
brand awareness in emerging markets.

Dogs
Dogs - SBUs in this category have a low market share in a low growth market. Sales
of Jenny Craig and Lean Cuisine, weight loss management brands, have failed to
expand outside of the USA these two brands are tipped to be divested in the
future. Sports performance and nutrition brand, PowerBar. This is most likely
because of poor sales in a saturated market. SBUs in this classification may
generate enough profit to be self-sufficient, be are considered to never be major
sources of revenue.

Cash Cows
Cash Cows - perhaps the most important SBU, Cash Cows have a high share of a
low growth market. They require very little investment to generate revenue, which
allows funds generated from such SBUs to be reinvested into Stars or Question
Marks.

Growth Strategy:
Nestle is one of the oldest of all multinational business company. Its operate food
basis business around the world. In order to satisfy both developed markets and
developing markets. Nestle adopt the transnational strategy that contain the element
of global standardization strategy and localization strategy to operate its company by
the 21st century. By using the transnational strategy, Nestle enjoys the low cost
through economies of scale and offers different product to different markets with high

local responsiveness in order to defend its old markets in the developed markets and
look for potential growth in emerging markets.
Nestle use the localization strategy to operation its business in the developing world
where Eastern Europe, Asia, and Latin America to optimize ingredients and
processing technology to local conditions and then using a brand name resonates
locally as the cultural habits difference in different nations.
Customization rather than globalization is the key to Nestls strategy in emerging.
For example, Nestle has taken as much as 85 percent of the market for instant
coffee in Mexico, 66 percent of the market for powdered milk in the Philippines, and
70 percent of the market for soups in Chile. Besides, Nestle hired local singer to
promote its products in Nigeria, the organization of a delivery system to increase
efficiency in China, and using local material and focusing on local demand such as
make ice cream in Dubai.
Nestle focus on increasing profitability by customizing the firm' products so that it
provides a good match to tastes and preference in different nation.

Nestle SWOT Analysis 2015

SWOT Analysis:

Strength

Product diversity

Distribution channels

Brand value and Reputation

Acquiring and merger

Weakness

Less ability to provide good foods

consistently

Incident in India

Criticism

Opportunity

Threats

Building partnership

Trend toward healthy eating

Broad Sale Channel

Changing trend

Demand for healthier food product

Raising Prices of Raw materials

Contamination

Strength In the first part of SWOT analysis of nestle,

Strength of Nestle is discussed.

Product diversity: As of October 2014, the company had 29 operating brands

under which 8000 products were being sold in the market. This show the very
diversity in the product line which yield a great strength for nestle.

Distribution channels: Nestle is successfully operating in more than 100 countries

which gives a real strength to its distribution channel. Including direct and indirect
channels, it has operations in 197 countries. (Nestle Web, retrieved: September
2015)

Nestles R&D: Nestle has a strongest research and product designing teams with
great capabilities. They introduce new products through the year, which
strengthen Nestles competitive advantage.

Brand value and Reputation: In 2013, Nestle became one of the top ten reputable
companies in the world in the annual Global RepTrakTM 100 study. A report
published by Forbes, Nestle numbered 43th position in the Worlds Most Valuable
Brands.

Acquiring and merger: Over the past years, nestle has been defeating its
competitors successfully. By becoming successful mergers and acquiring other
companies its becoming more powerful in the market.

Weakness In second part of SWOT analysis of nestle,

weakness is discussed.

Less ability to provide good foods consistently: As consumers always look for
good tasting and healthy foods, a company should consistently provide healthy
foods. Nestle is often blamed for many products due to poor supplies. It is hurting
the image of Nestle which is a great weakness.

Incident in India: Recently in this year, India government sued Nestle for $100m
over one of their popular product Maggi noodles, for unfair trade practices. This
will bring a negative effect on sells for the long run.

Criticism: Nestle has been criticized many times over different issues including
child labor, horse meat scandal, which make it less trust worthy.

Opportunities In the third part of SWOT analysis of nestle,

opportunities for Nestle is discussed .

Demand for healthier food products: Great intensity of buying and consuming
quality foods is increasing among people. Nestle frequently tries to provide
quality foods to its consumers.

Strong R&D: As it has strong R&D teams, it has great advantages of introducing
new product in the future.

Broad Sale Channel: Nestle has been broaden its selling channel in developing
countries in Africa.

Building Partnership: it has been building partnership with other major companies
such as Coca- Cola.

Threat In the fourth & final part of SWOT analysis of nestle,

threats is discussed.

Trend toward healthy eating: As peoples concentration is increasing toward

healthy foods, Nestle will have to make sure healthy foods at any cost.

Changing trend: Chocolate and chocolate related products are the major
products of Nestle. But some recent research showed that peoples becoming
more health conscious toward their health which may be the main reason of
decline sales of chocolate in future.

Raising Prices of Raw materials: With the growth of the economy of the world,
the price of raw materials is increasing which may harm its competitive price in
future.

Contamination: Though the main responsibility of Nestle is to run thorough quality

checks of its products, the company had been thoroughly providing contaminated
foods. Such actions may hurt companys reputation greatly in future if being
practiced more.

SWOT analysis of nestle showed that Nestle has great strength and opportunities as
well as weakness and threats.

Marketing Environment
Internal Environment
Nestle has a rich working culture which motivates its employees to serve best to its
customers with the help of the variety present in their product range.
Nestle has included the benefits of the employees in the goal statement of the
organization as the management of the company strongly believe that the

productivity, quality and the dependability will reflect on the product only if the
employees will take care of all these factors.
Different departments of the company work to contribute in the growth of the
organization and these departments not only keep the customers needs and
demand in mind but also keep the same type of attention for the internal customers
of Nestle.
The company believes if the internal market of the company is fully satisfied than
only the internal market will be able to serve to its customers and able to understand
their needs and able to manufacture the products which can fulfill these needs.
Nestle has a strong top management team which runs on strong values and
principles of the company. The values of the company give strong focus to integrity,
loyalty and team work. The efficient top management of the company is able to run
finance, operation, marketing, logistics, sales, and research and development
departments with great success which ultimately leads to the fulfillment of the goal of
the organization.

Micro Environment:
The micro environment of Nestle includes three divisions

a) Suppliers
Suppliers provide the raw material resources, unfinished goods and labors to the
company in order to produce goods and services. The effectiveness of suppliers
determines the efficiency of the company in terms of producing the goods. In
addition to that the quality of the finished product has a strong with the suppliers of
the firm especially in case of food products. As the presence of the company is in
more than hundred companies, it is a challenge for the company to maintain its
standard all over the world and provide the consistency to its customers in the taste
and quality of the product.
Further we can divide the supplier of Nestle into two parts: Labor suppliers and
material suppliers. Labor suppliers deal with the quantity of labor is required at the
optimum level in order to prevent the loss of labor force and prevent the company
from the shortage of labor which again can lead building of inventory as a cost for
the company. The skills of labor is again maintained by the labor suppliers, wherein
the labors of different skills are managed in such a way that the operation of the firm
can run smoothly. Labor strikes and labor relations are other factors which we cannot
ignore in the current scenario as the efficiency of the business depends largely on
the
factors
like
attrition
and
employee
satisfaction.
Material supplies handle all the material required by the firm in order to manufacture

the finished product for sale. Nestle is in the food and quality markets and the quality
of such item plays a major role in its success in the market.
Nestle has maintained a high quality efficiency in handling the quality and quantity of
the two different supplies i.e. labor supplies and material supplies and hence the
company has been able to run its business smoothly for more than 100 years in spite
of the different business trends in the world market.

b) Marketing Intermediaries
The market intermediaries of the company help to advertise, sell and distribute its
product to the end customers. The physical distribution network of the company
decides the medium by which the finished product is delivered to the end customer
on time and with safety. This department also ensures the proper storage of the firm
that prevents the product from getting any king of damage.
The marketing service department of the firm helps in the promotion of the product
and acts as a communication channel between the company and customers. It not
only communicates the features of the product to its customers but also get the
feedback with the help of survey, which helps the research and development
department to develop a product according to the need of the customers.
The other intermediaries of the company like banks help to provide the funds to the
companies and play an important role in the continuity of the business. Insurance
companies insure the property and the goods of the company against the risk
involved in various operations, buying and selling of the product.
Nestle has the differential advantage of working in a smooth coordination with all its
marketing intermediaries which helps in providing the best and pure food products to
its valuable customers in the different parts of the world.

c) Customer:
The immediate customers of Nestle are retail and grocery stores which provide the
products of the company to the end customers at a reasonable price and a
reasonable profit. The end customers of Nestle are the consumers who consume its
wide range of product. The company has a bright brand image in its big pool of end
customers.

d) Competitors:
Although Nestle is leader in packaged food industry of Malaysia but the other
competitors who are giving tough competition to Nestle are
Petra Foods Limited
Chocoladefabriken Lindt & Spruengli AG
Yeo Heap Sang Limited
Mail Dairy Industry Co., Ltd

Nestle has a clear advantage over the above mentioned companies is its presence
in Malaysia for over a century now. Nestle has been able to setup a good and trusted
distribution channel and a huge retail network. The trust worthiness gained by Nestle
among the Malaysian people is build in decades on hard work and quality products
and varied range of prices, thus even after facing stiff competition with the above
mentioned companies in chocolates, dairy products and other packaged food
products the company is able to maintain the bottom lines of its profit and loss
statements attractive for its investors and good image in public.

e) Marketing:
The basic marketing strategy of the Nestle was to develop brands for each their
product instead of focusing on making brand value for the entire company, thus
never allowing cannibalization of products and gaining multiple brand value for the
entire company.
The vision of the company could be summarized in following statements
Be the leading multinational company in food, nutrition and wellness.
Produce and sell world-class products of the highest consistent quality, reliability
and convenience based on business excellence principles throughout our
operations.
Maximize the use of good quality local raw materials
Be an exemplary employer with a progressive human resource and social policy;
with a management style that is based on Management Commitment and People
Involvement
Be a responsible corporate citizen, fulfilling all obligations to Government,
shareholders, customers, communities and consumers.
Protect the environment by being committed to environmentally sound business
practices, and taking into account the need to preserve natural resources and save
energy.
Guarantee that all products manufactured, imported and distributed by Nestl
Malaysia are certified HALAL by authorized Islamic certification bodies.
Deliver shareholder value through the achievement of sustainable and profitable
long-term growth.
Adhering to the above vision statements the company has been able to maintain the
marketing and branding unique and ahead of the competitors.

Macro Environment
Macro environment include following environment of the country

Political Environment:
Government of Malaysia has never imposed any political pressure in fact they
have always supported foreign investment and foreign businesses to grow in
Malaysia. As the company is into food and nutrition business they have to just
adhere to the laws of food and nutrition policies of government and constantly
provide good quality which is the vision and mission of the company thus
Nestle never faces any problems on political front.

Cultural Environment:
Malaysian culture is no doubt of having light food at constant intervals and
young crowd of Malaysia likes to have good nutritional food thus Nestle has
great scope there.

Economic Environment:
The disposable income of country and the high living standard of Malaysia
always give better bigger business opportunities for Nestle.

Technological Environment:
Malaysia is technologically rich country both in terms of availability of
technology and also the technological work force the highly skilled and
educated manpower is abundant in Malaysia.

In case of Nestle and the product offered by the company these factors do not create
much impact in general scenario. However as we have seen the major events like
World War had created a positive impact on the sale of confectionary products of the
company. The culture has some impact in this company as whether the country has
most people as vegetarian or non vegetarian the consumption of milk products is
always there. However the countries where the people are more dependent on milk
products are profitable market for Nestle.

Market Segmentation
Strategy

&

Positioning

Market Segmentation:
The marketing concept calls for understanding customers and satisfying their needs
better than the competitors do. But different customers have different needs and it
rarely is possible to satisfy all customers by treating them alike. Market segmentation
is the identification of portions of the market that are different from one another.
Segmentation allows the firm to better satisfy the needs of its potential customers.

1. Clearer understanding of the needs and wants of selected customer groups.

2. More effective positioning.
3. Greater precision in selecting promotional vehicles and techniques.

Bases for Segmentation:

Consumer markets can be segmented on the basis of following customer

characteristics.
1. Geographic
2. Demographic
3. Psychographic
4. Behavioral

Geographic:
Weather: Nestl Bangladesh Limited segmented its market for Nescafe
Ice based on the geographic weather: hot and cold.

Nescafe Ice: A coffee which can be consume with ice. During hot
season consumers consume this coffee with normal or cold water with ice
cube to bring freshness in their mind.

Demographic:
Age:

Nestl segmented market for its major products based on the age.
For the products Cerelac, Lectogen, Koko Krunch, Nido, Nestle divided the
market segment for baby and children of different ages.

Nido: It is nutritious milk specially formulated for children 2 years onwards.

It contains 25 minerals and vitamin D which helps childs growth.

Cerelac: Nestle also offers cerelac for new born baby. It contains milk and
rice mixed for under one years baby. It fulfills babys proper nutrition.

Nesquick,

Koko

Krunch:

Both are chocolate milk for

children.Nesquick and Koko krunch maintain childs proper growth. Its very
delicious and also contains vitamin protein, mineral.

Lactogen: Nestle Bangladesh brings full cream milk powder in our

country. It gives baby proper nutrition.Lactogen 1 is for babies whose age less
than 7 months and lectogen 3 is for babies whose age is below 12 months.

Income:

Nestle segmented their market based on customers income in

an effective way.

Lectogen: Nestle charge tk 800 for per 900 gm Lectogen 12 milk powder.
They also charge tk 1000 for 900 gm Lectogen 3 milk powder pack. Middle
income and low income people are not able to buy these products for their
babies.

Occupation:

Nestle segmented the market based on their customers

occupation.

Nescafe classic: This product is for those who work hard and needs
more freshness. Both the male and female who need more caffeine Nescafe
classic is for them.

Psychographic:
Life style and personality: Nestle Bangladesh 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. They can save their time by
taking Nescafe 3 in 1.All the things sugar, milk and coffee
remain mixed.

Behavioral:
Benefits: Based on benefits Nestle Bangladesh segmented their market
in an effective way. So they provide Cerelac for those customers who want
more benefits from the products. Cerelac contain a high nutrition for babys
whose age below 1 year. Two most important elements rice and milk remain
mixed in cerelac. On the other hand, cerelac contains vitamin, mineral and all
nutritious elements for babies.

Target Marketing:
Market segmentation reveals the firms market opportunities. Then the firm sort
market targeting by evaluating the various market segments and deciding which and
how many segments it will target.

Nestle Bangladesh Ltd evaluated the various market segments on the basis of
segment size and growth, segments, structural attractiveness, and company
objectives and resources and decided to launch their operation all over the country.
Nestle separate their target market because of having unique need and wants.
Nestle Bangladesh Ltd selected their target market into two market coverage
strategies:

Undifferentiated: Nestl has offered several products such as

Nescafe 3 in 1, Maggi noodles, and Kit Kat to the people of the whole
Bangladesh without differentiating the market segment.

Differentiated:

Nestle also selects the differentiated

marketing. It offers different product for different segments
based on different age, occupation, season and climate.
Nescafe 3 in 1: Coffee for people who are busy.
Koko Krunch, Nesquick: Chocolate milk who want to get taste of
chocolate.
Nescafe Ice: Cold coffee for the people in hot weather.

Concentrated: Through concentrated marketing, Nestl achieves a

strong market position because of its greater knowledge of consumer needs.
In the niches it serves and special reputation it acquires. Nestl specializes in
producing baby foods. It offers nutritious milk powder Lectogen 1 for babies
whose age is less than 7 months and lectogen 3 for babies whose is under 12
month. It also offers baby nutrition cerelac for baby less than 1 year.

Positioning Strategy:
By creating product, service, channel, people and image differentiation Nestle reach
the consumer touch point more effectively & efficiently in comparing with their
competitors in the highly competitive food processing sector.

Product Differentiation:
Nestle brings a lot of product for target customers. They provide 25 types of
minerals in Nido for children. It also provides Cerelac and Lactogen1 &3 for

newly born baby exclusively. Now the doctors prescribe these products for
babies to their parents for high nutrition Nescafe is a product which contains 4
types of categories. They offer Nescafe ice for hot weather, classic for all 3 in
1 for those who are busy. They provide Maggi including Maggi instant; Maggi
2 minutes which contain various minerals, vitamins and nutritions.Maggi also
provide magi healthy soup and Maggi corn soup but charge the same price.

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.

Image differentiation:
Nestls logo is totally different from its competitors that are greatly accepted
by its customers. For that reason customer easily identify them in the market
which is another effective advantage for Nestle.

People differentiation:
Nestle has a large number of employees that are highly educated and trained.
In Bangladesh, 400 employees are working in market Company chairman;
Peter Brakeck- Letmathe and CEO Paul Bulcke are highly educated, wise and
experienced people. They are running this business successfully for a long
time.

Service differentiation:
Another advantage for this company is better service for its respective
customers from its competitors. They provide 24 hours hot line service. High
quality checking is maintaining for its customers. Its marketing dept. and PR
(public relation) dept. are working for finding out customers new demands
and response toward their products.

Selecting an overall positioning strategy:

The full positioning of a brand is called the brands value proposition-The full
mix of benefits up[on which the brand is differentiated and positioned.

The value proposition table shows the product position of Nestle in the
following:

Price
More

More for More

Same

More for same

Less

More for less

Same for less
Less for much
less

Benefit
Less

Same More

More for more: More for more positioning involves providing the most upscale
product or service and charging a higher price to cover the higher cost. Exactly
Nestle is doing that. Nestls products provide more benefit and for that Nestle
charge higher price than other competitors.Nido ensure nutrition and charge 250 tk
for 400 gm.But Fresh, Marks do not ensure nutrition and charge less than that of
Nido.Respectively Nescafe, Maggi noodles ensure quality for high price, rather than
competitors.

Positioning Statement

Baby Products: To babies who are deprived of proper nutrition, Nido,

Cerelac, Lactogen are the nutritious milk Product that give you more nutrition
then any other brand because these contain different types of vitamin, mineral
etc.

Nescafe: To busy people who drink coffee and have little time for taking
rest, Nescafe is the coffee that gives you more energy than any other brand
because it has the highest level of caffeine.

Maggi: To people, noodles and soup consumer who seek better quality,
Maggi noodles and healthy soup that gives you proper nutrition than any other
brand because it has the best quality.

Marketing Mix of Nestle

The Marketing mix of Nestle discusses the 4Ps of one of the strong FMCG
companies of the world. The Nestle marketing mix shows Nestle has a strong
product line which boosts its marketing mix. Below are the products, price,
placement and promotions of Nestle.

Marketing Mix

Products:
There are 4 different strategic business units within Nestle which are used to
manage various food products.

Beverages One of the most known coffee brands Nescafe, belongs to

the house of Nestle and is one of the cash cows for Nestle. However, it is not
the biggest cash cow. Nestle has a worldwide distribution and has many
different variants. Looking at India, Nestle has also launched Nestea.

Milk and Milk products Nestle everyday, Nestle slim and Nestle
Milk maid are some of the milk and milk based products from the house of
Nestle.
Prepared dishes and cooking aides Nestle has a third
category of products which comes into prepared dishes and cooking aides.
The major cash cow of Nestle lies in this segment, which is Maggi Noodles.
Probably one of the most widely sold ready to cook noodle brands is Maggi.
Maggi has a fantastic taste and quality. Thus, it was not a surprise, that Nestle
expanded the Maggi brand to create an umbrella of different products like
Maggi pasta, Maggi sauce, Maggi cubes etc. The maggi range contributes
vastly to the bottom line of Nestle.

Chocolates Nestle has some popular chocolate products, most popular

being Nestle Kitkat, Munch, Milky bar, Eclairs and Polo. The newly introduced
Alpino is targeting the gifting segment in response to various chocolates like
Dairy milk and Bournville by Cadbury. The chocolates segment of Nestle is a
star, where the competition is high and the expense is high but at the same
time the market size is huge as well.

As we can see, two major brands of Nestle are a very high contributor to its Brand
equity Nescafe and Maggi. These are two brands sold across India in small as well

as big shops and super markets. There have been many competitors for these
products, like Bru for Nescafe and Top ramen and Sunfeast Yippie against maggi.
The appreciable factor in Nestle is that quality maintenance of products is upto mark
and there are hardly any complaints about Nestles products in the market. This is a
major achievement for a company which relies majorly on food products.

Price:
The price is dependent on the market of each individual products. For example,
Nescafe and Maggi being the clear leaders are priced with higher margins for the
company as compared to competition. This is because the product quality is good
enough and a bit of skimming price will not cause the customer to switch brands.
The strength of pricing for Nestle comes from its packaging or consumption based
pricing. For Nescafe as well as Maggi, Nestle offers a lot of sizes and package
options. In supermarkets, you can even find a 16 packet maggi whereas in small
retail shops, you can find 5 rs maggi.
Thus, with the variety available, customer can make his own choice based on his
consumption. In other products like Kitkat and Munch, due to tough competition from
other companies, Nestle offers competitive pricing. You will find that nestle will be
similar priced to many of Cadburys Products in the chocolate segment.

Placement:
Nestle follows the FMCG strategy of distribution which involves breaking the bulk.
The typical distribution strategy of Nestle is as follows.
Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer
Manufacturing >> Bulk buyers >> Consumer
These are the two different forms of distribution which Nestle has. It is typical of any
FMCG company. However, the Nestle channel is known to be strong with a good
marketing and sales network for channel distribution.
On top of it, Nestle regularly introduces trade discounts and various tactics to keep
the channel motivated. The major challenge is in the distribution of Maggi which is
the most in-demand product along with Nescafe. Due to these two products, Nestle
is able to drive other products in the market as well. Thus, on purchase of one weak
product, the distributor might get a discount on the stronger product or vice versa.
The challenge for Nestle is in the chocolate segment where it faces stiff competition
from Cadbury and hence selling the chocolates becomes difficult. Kitkat might have
its own brand positioning, but it is not better than Dairy milk. Thus, converting

retailers to sell Nestle instead of Cadbury is the toughest task for Nestle. This is
converted mainly through promotions.

Promotions:
One of the most widely known tunes is the Nescafe tune. It was one of the best
advertising campaigns and was launched at least 2 decades back. However, that
campaign brought Nescafe strongly in the market.
On the other hand, Nestles brand was pushed by the excellent product quality of
Maggi and the witty and innovative campaigns of Maggi. Where Nescafe focuses on
value and the good things in life, Maggi focuses on moments you had with your
Maggi. The recent campaign was completely focused on your maggi story, where
people had to come out with various innovative ways that they had their maggi.
Promotions for other products too are done smartly. Kitkat focuses on Take a break
and has done some good marketing for the same. Kitkats website too is very
innoative and shows nothing but asks the visitor to take a break and have a Kitkat.
The major push expected of a FMCG company is in sales promotions at the ground
level. This is where Nestle really rocks. Nestle focuses on its strength which is
Maggi, Nescafe and Kitkat which are the most promoted brands in the market on
ground level.
Besides this, Nestle regularly uses TVCs and ATL marketing. It is also present online
through some smart creative. Overall, Nestle is a brand which has strong products
as well as strong marketing, and hence the brand has a very high brand recall value.

Advertising Strategies
Advertising
It is non-personal communication paid for by a clearly identified sponsor promoting
ideas, organizations, or products. The most familiar outlets for ads used for the
advertisement of the NPL by Nestl are the broadcast (TV and Radio) and print
media (news papers and magazines). The Nestl also uses other advertising
vehicles like billboards, T-shirts and, more recently the Internet. Nestl has its own
website which is giving the information about the different brand of the company.
Nestl is doing the selective demand advertising that is intended to stimulate
demand for individual brands. In the advertisement the message is given that,
There is one water, which gives you, hope, happiness and trust and that water is
Nestl Pure Life. It is pure, safe, and healthy water.

And in recent advertising campaign, their slogan is,

JIYO! Kay yehi hay zindagi.
On billboards the pictures of NPL advertisement seems so attractive, especially in
summer season across the roads that it motivates the customer to purchase it
immediately.
Nestl has the internal advertising department as well as hire the
services of the external
Media manager assisted by its assistant to devise all campaigns

Sales Promotion:
It is demand-stimulating activity designed to supplement advertising. It is paid for by
the sponsor and frequently involved a temporary incentive to encourage a sale or
purchase. Many sales promotions are directed at consumer. Nestl has designed it
in away to encourage the companys sales force or other members of the distribution
channel to sell products more aggressively. Nestl Pakistan limited arranges
concerts, trade shows, event sponsorship, in-store displays, and discounts. In
Nestl, a separate sales department is working. The function of this department is to
taking the sales orders, visiting the market, collecting the customers complaints and
transferring to the concerned department. They also make sure the availability of the
NPL to the consumer at right time and at right place.

Public Relations:
It encompasses a wide variety of communication efforts to contribute to generally
favorable attitudes and opinions toward an organization and its products. Unlike
most advertising and personal selling, it does not include specific sales message.
The targets may be customers, stockholders, a government agency, or a specialinterest group. Public relations can take many forms, including newsletters, annual
reports, lobbying, and support of charitable and civic events.
Nestl is following all above mentioned public relations forms:
The company assists through donations such hospitals and organizations that
provide services to the poor and responds to distress calls by the government and
NGOs for assistance to victims of flood, earthquake, drought and other natural
calamities.
The company arrange mil program for undernourished and sick children and mothers
through several NGOs and charitable organizations.
The company has initiated a tube well and hand pump installation scheme in
selected rural areas.
It donates computers to schools for disadvantaged children run by NGOs and
charitable organizations.

To support the spread of education in rural areas, it undertakes Refurbishment

Program of Govt. operated primary and middle schools.
The Company regularly sponsors sports and cultural events, such as the
International Polo Tournament and SAF Games in the recent past.
The company gives the extra gifts, calendars and diaries to the employees and
customers for public relations.

Publicity:
Publicity is also a promotional method used by the Nestl. Publicity is specific form
of public relations that involves news stories about organization or its products. Like
advertising, it consists of an impersonal message that reaches a mass audience
through the media. But several features distinguish publicity from advertising. The
company does not pay for it and it has little or no control over this and it appears as
news and therefore has grater credibility than advertising. The company seeks for
good publicity and frequently provides the material for it in the form of news releases,
press conferences, and photographs. When a picture of a companys CEO appears
on the cover of business publication and it accompanied by a flattering article in the
magazine, it is often attributable to the efforts of the firms public relations
department.

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 extend ensuring satisfaction and loyalty.
In our report, we try to present the Marketing Strategies through segmentation, target
marketing and positioning of Nestle Bangladesh Ltd and suggest some
recommendations based on the marketing procedure.

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http://www.nestle.com/

http://www.strategicmanagementinsight.com/

http://bib.kuleuven.be/

www.gotabout.info/