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Nestle is a large multinational food and beverage company founded in 1867 in Switzerland. It has grown significantly over the past 150 years through strategic acquisitions and international expansion. Nestle uses a decentralized organizational structure with local subsidiaries organized into three geographical zones and global strategic business units. Its international marketing strategies focus on distribution through multiple channels, strong brand equity, competitive analysis, and understanding local markets. Nestle's marketing mix emphasizes its broad product portfolio, pricing strategies tailored to markets, extensive distribution networks, and memorable brand promotions.

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Faisal Razzaq
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137 views5 pages

NPL Project

Nestle is a large multinational food and beverage company founded in 1867 in Switzerland. It has grown significantly over the past 150 years through strategic acquisitions and international expansion. Nestle uses a decentralized organizational structure with local subsidiaries organized into three geographical zones and global strategic business units. Its international marketing strategies focus on distribution through multiple channels, strong brand equity, competitive analysis, and understanding local markets. Nestle's marketing mix emphasizes its broad product portfolio, pricing strategies tailored to markets, extensive distribution networks, and memorable brand promotions.

Uploaded by

Faisal Razzaq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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A case study on Nestle (S.A.) International Marketing.

Assigned by:
“Dr. Burhan Ahmed”

Submitted by:

Nabeel Fayyaz 2016-ag-2707

Muhammad Faisal Razzaq 2016-ag-2652

Muhammad Humal Qamar 2016-ag-1382


Brief history of Nestle:
The history of Nestlé began in Vevey, Switzerland, in1867 when founder Henri Nestlé created
one of the first infant foods in response to the need for a healthy and affordable product to serve
as an alternative for mothers who could not breastfeed their babies. He called his product Farine
Lacteal Henri Nestlé.
Within a few years, the Famine Lacteal product was marketed in Europe. Nestlé called his
company Society Ferine Lacteal Henri Nestlé. In 1874, Nestlé developed its condensed milk
product, to contend with the Anglo-Swiss Condensed Milk Company, a competitor that was
producing cheese, instant formulas and had opened Europe’s first sweetened condensed milk
factory in Cham, Switzerland, to market the first condensed milk, MILKMAID.
By the 1980s, in one of the largest takeovers at that time, Nestlé bought Carnation for $3 billion.
International trade barriers diminished in the 1990s, opening trade with Eastern parts of Europe
and China. In the 1990s, Nestlé acquired San Pellegrino, and Spillers Petfoods of the UK. With
the acquisition of Ralston Purina in 2002, the Nestlé owned pet care businesses joined to form
the industry leader Nestlé Purina Pet Care
In 2002, there were also two major acquisitions in North America: in July, Nestlé merged its
U.S. ice cream business into Dreyer’s, and in August, a USD 2.6bn acquisition was announced of
Chef America, Inc. The year 2003 started well with the acquisition of Move pick Ice Cream,
enhancing Nestlé’s position as one of the world market leaders in this product category. In 2006,
Jenny Craig and Uncle Toby’s were added to the Nestlé portfolio. 2007 saw Novartis Medical
Nutrition, Gerber and Hinnies join the Company, and in 2008, Frozen Pizza of Kraft Foods was
integrated into the Nestlé Group. With a strong view of the company’s mission in mind, focusing
on long term potential over short-term performance, Nestlé will continue to grow, introduce new
products and renovate existing ones.

How Nestle’s business is organized:


Nestlé has its own local companies in most countries. The Head Office in Switzerland works
very closely with them, and sets overall strategy which is directed via Zone Management and the
Strategic Business Units (SBUs). Geographically, Nestlé’s three Zones (Europe; the Americas;
Asia, Oceania, Africa and the Middle East) work closely with the local markets and the SBUs.
Their primary role is that of enablers, acting as the voice of the centre to the markets, and the
voice of the markets to the centre. They share Nestlé’s vision so that everyone around the world
understands the direction to take – and how to get there with common tools, common strategies
and common values. This ensures that our people around the world know how to act, and have a
very strong framework of values and a clear reference point for fast decision-making. The SBUs
specialize in a particular category, for example Coffee and Beverages, or Pet Care, or Chocolate
and Confectionery. They work with Research and Development (R&D) to ensure that everything
the company produces is led by consumer insights and relevant innovation; and they help the
markets to achieve their business and brand objectives. To make it all happen, there are just
fewer than 500 factories in 80 countries, and 17 Research Centers.

Other Nestlé Group companies:


There are a number of separate companies within the Group such as Nestlé Waters and Nestlé
Nutrition. Nestlé also owns Alcon, a pharmaceutical company that is the world leader in eye
care, preventing vision loss from glaucoma, treating eye infections and restoring vision through
cataract surgery. Nestlé also has a significant share of L’Oreal, the world leader in cosmetics.

International marketing strategies of Nestle:


Distribution strategy in the Marketing strategy of Nestle:

With its diversified and broad product portfolio, Nestle has been able to make its product
available to the end consumer through its extensive network of distribution. Developing nations
have been the biggest opportunity for a company like Nestle as there are challenges &
opportunity in penetrating the market. Nestle uses multi-channel strategy to distribute its
products.

Brand equity in the Marketing strategy:

Nestle is Fortune 500 company and it does individual branding of their brands which help it in
creating high visibility & awareness. Negative branding also worked in favor of the company
when some of the countries banned Maggie Noodles due to the presence of lead content which
later on resolved and the banned was uplifted.

Competitive analysis in the Marketing strategy:

The health, Nutrition & wellness market is highly competitive and is overcrowded with local
& international players. Also, nestle is facing competition from pharmaceuticals companies.

Market analysis in the Marketing strategy:

With a large number of players fighting in the same market, penetration to the untapped market
is what driving the industry to further growth. Nestle have few product categories which are not
that popular and are facing tough competition from the rivals.
Marketing mix of Nestle – Nestle marketing mix
The Marketing mix of Nestle discusses the 4P’s of one of the strongest 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.

1-Products in the Marketing mix :

There are 4 different strategic business units within Nestle which are used to manage various
food products.
Beverages , milk products ,prepared dishes and chocolates .

2- Price in the Marketing mix:


The price is dependent on the market of each individual products. For example, Nescafe and
Maggie 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.

3-Place in the Marketing mix:


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.

4-Promotions in the Marketing mix of Nestle.


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, Nestle’s brand was pushed by the excellent product quality of Maggie and the
witty and innovative campaigns of Maggie. Where Nescafe focuses on value and the good things
in life, Maggi focuses on moments you had with your Maggie. 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.
Conclusion

The world of Nestlé By now you’ll have realized that Nestlé is a world of its own. It spans the
globe. But more importantly, Nestlé employees come from all walks of life. Once they join
Nestlé, they continue to expand their horizons

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