Marketing Strategies Of The Nestle Company †MyAssignmenthelp.com

Question: Discuss about the Marketing Strategies Of The Nestle Company. Answer: Introduction: Nestle is the company that operates in food and drink industry. It is one of the leading companies in the industry that is headquartered at Vevey, Switzerland. In the year 2014, the company has been considered on rank no. 72 by the fortune global 500. It is the company that was formed in 1905 by the merger of two companies. It is the report that discusses about the marketing strategies of the company in different contexts. Marketing strategies in context of: Differentiation: Differentiation is the strategy that deals with targeting many customer segments. As far as Nestle is considered, it is the company that serves the market with many products and thus use differentiated strategy to target the market. For example, the products like maggi not only target the children but the new hot heads variation of Maggi target the adults as well to try the new and spicy taste of Maggi (Dadzie, Amponsah, Dadzie and Winston, 2017). There are lot of products that are being marketed by the company targeting many customer segments at a time. Commoditisation: It is the condition where homogenous products and services are being served by many companies and the only criteria that has been considered by the company is the price of the product. As far as Nestle is considered, nestle uses marketing strategies in such a way that it positioned itself as very unique. Nestle has shown its potential in standing out and thinking out of the box to fight such commoditisation (Morschett, Schramm-Klein and Zentes, 2015). The company has quietly built the nutritional science division. This is not the unrelated diversification of the business. The time when all the other food companies are facing commoditisation and targeting the market by enhancing the taste of their products, Nestle made the shit of the corporate strategy from the commoditised sector that is food to the high profit margin sector that is health. Competitive advantage: As the marketing competitive advantage of the company is considered, it has been analysed that the major competitive advantage of the company is its brand image and availability in the market (Appiah-Adu, 2016). The company has marketed all its products on almost all sorts of media.in addition to it the company is international in nature and thus availability of the products is very high. Brand image of the company and the range of products are considered as the competitive advantage of the company as it is one of the leading companies in terms of products range and positioning. Segmentation: Segmentation can be defined as the strategy that helps the company to divide the market in different segments or division according to the nature of the customers. Nestle is the company that segments/ its customers by using the following basis: Geographic: it is the strategy that helps the company to divide the market into segments according to the place they live in. the company caters the old market with different products and the hot weather places with different products. Demographic: nestle also segment its market with the difference in generations such as the products like cerelac, nido etc. are for children and kids, maggi and other products are for children etc (Moura, Branco and Camoesas, 2015). Occupation: it is also the criteria that have been used by nestle to divide its market into segments for example; the company serves the market with Nescafe classic products for the people who feel busy in their work. Psychographic: it is the type of segmentation that is based on the choice and lifestyle of the people. For example, KIT KAT is served to the people who like to eat sweet products and beliefs in eating tasty things while Nescafe 3 in 1 is for the people who do mot have time to eat. 4 ps of marketing: Product: Nestle is one of the leading company in the worlds in terms of serving the customers with range of brands. The company serves the market with around 80 brands and lot more products. The products categories mainly fall under the divides of food, ready to eat food, dairy products, chocolates and beverages. Pricing: as far as the pricing strategy of the company is covered, it has been analysed that the company use competitive pricing strategy this is baecuse he prices of the products are set as er the quality of the product and the price of the competitive products in the industry. Promotion: Advertising is the major weapon that the company use always to compete with the other brands, as the company is serving range of products to the customers; the company also focuses on marketing those products at the same time so that they can have better reach (Peck, Christopher, Clark and Payne, 2013). Advertising through all the sources and media is the strategy of the company to promote the products to a larger area. Place: as far as the place is concerned, it has been analysed that the company beliefs in selling the products to the market by retailers and distributors (Scrinis, 2016). There are various distributors that buy the products from the manufacturing site of the company and then distribute it to various retailers and the end consumer can buy the products from those retailers. A solution approach: It has been analysed from the study that the company is using great marketing approaches through advertising. A solution approach or the recommendation in terms of marketing for nestle is that it can make use of social media more. as more and more peel are now on social media so running the campaigns on social media sites will helps the company to cater the market with more efficiency and have larger reach (Sacks, et al, 2015). Sustainability: As the company is in manufacturing function thus most of the part is the supply chain of the company. Making strategies such as lean production and Just in Time approach will helps the company make optimum use of the resources and thus waste generation can also be reduced. This also helps the company to reduce its per unit cost and hence the customers can get the products in lower prices. This ultimately helps the company to be sustainable. As far as the current approaches are concerned, the company is using sustainable sourcing approach in which the company source it the raw material in sustainable manner. References: Appiah-Adu, K. and Amoako, G.K., 2016. The execution of marketing strategies in a developing economy: A case study of selected market leaders.African Journal of Economic and Management Studies,7(1), pp.9-29. Appiah-Adu, K., 2016. The execution of marketing strategies in a developing economy. Dadzie, K.Q., Amponsah, D.K., Dadzie, C.A. and Winston, E.M., 2017. How Firms Implement Marketing Strategies in Emerging Markets: An Empirical Assessment of The 4A Marketing Mix Framework.Journal of Marketing Theory and Practice,25(3), pp.234-256. Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. International Marketing. InStrategic International Management(pp. 477-501). Springer Fachmedien Wiesbaden. Moura, A., Branco, M. and Camoesas, M., 2015, June. NESTL, A GLOBAL FIRM AND ITS CUSTOMER RELATIONSHIPS. InIMC 2015 International Management Conference 26th June 2015(p. 96). Peck, H., Christopher, M., Clark, M. and Payne, A., 2013.Relationship marketing. Taylor Francis. Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M. and Swinburn, B., 2015. Comparison of food industry policies and commitments on marketing to children and product (re) formulation in Australia, New Zealand and Fiji.Critical Public Health,25(3), pp.299-319. Scrinis, G., 2016. Reformulation, fortification and functionalization: Big Food corporations nutritional engineering and marketing strategies.The Journal of Peasant Studies,43(1), pp.17-37.