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Marketing Strategy of Nestle
BBA lll
Ali Raza
14-Arid-4830
Contents
• Introduction to Nestlé
• Business Portfolio & Growth Strategies
• Marketing Environment
• Market Segmentation &...
Introduction
• Food and beverage company
• Headquartered in Switzerland
• Ranked #72 on the Fortune Global 500 in 2014
• N...
History
• Henri Nestlé established Nestlé in 1867 in Switzerland
(Vevey HQ)
• His first product was lactogen formula for
i...
History ( logo evolution )
1875
1938
19881966
History
• In September 1866, in Vevey, Henri Nestlé developed milk-based
baby food.
• In August 1867, Anglo-Swiss Condense...
• In 1904, Both companies participated in the creation and development of
Swiss chocolate and Nestle marketing the first c...
• 1991 Beverage Partners Worldwide
• 1998 Acquisitions of Spillers Pet foods
• 2002 Acquisition of Ralston Purina
• 2002 A...
• In April 2007, Nestle bought US baby-food manufacturer Gerber
for $5.5 billion.
• 1 March 2010 , Bought Kraft’s Food (Fr...
Name Nestle S.A
Logo
Industries served Food Processing
Geographic area served Worldwide
Headquarters Switzerland
Current C...
Nestlé in Pakistan
• Nestlé Pakistan Ltd. is registered on Karachi and Lahore stock
exchanges.
• Established its first pro...
Mission Statement
• "We strive to bring consumers foods that are safe, of high
quality and provide optimal nutrient to mee...
Vision Statement
"Nestlé's aim is to meet the various needs of the
consumer everyday by marketing and selling foods of a
c...
Organizational Hierarchy:
REGIONAL
MANAGER
SALES
ADMINISTRATION
EXECUTIVE
AREA SALES
MANAGERS
TERRITORY
INCHARGES
SALES
DI...
Organizational Structure
Portfolio
(Beverages)
• Nescafé
• Nespresso
• Nesquik
• Milo
• Nescau
• Nestlé Pure Life
• Deer Park
• Vittel
• Nestlé Aquarel
Milk products, nutrition and Cream Products
• Nido
• Nespray
• La Lechera
• Carnation
Prepared dishes, cooking aids and pet care
• Maggi
• Stouffer’s
• Buitoni
• Herta
• Thomy
• Crosse & Blackwall
• Winiary
•...
Chocolate, confectionery and biscuits:
• Kit Kat
• Smarties
• Lion
• Crunch
• After Eight
• Polo
• Cailler
• Butterfinger
...
Cosmetics
• L'Oreal
BCG Approach
Question Mark
Don’t know what to do with
Opportunities;
Decide whether to increase
investment
Magi 2-minuts n...
Growth Strategy
• Transnational strategy : Low cost, Different products, Different
Markets, High local responsiveness
• Lo...
SWOT Analysis
Strength Weakness
 Product diversity
 Acquiring and merger
 Criticism
 Incident in India
Opportunity Thr...
Marketing Environment
• Micro Environment:
a) Suppliers: Suppliers provide the raw material resources, unfinished
goods an...
Marketing Environment
• Macro Environment:
a) Political Environment
b) Cultural Environment
c) Economic Environment
d) Tec...
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 mo...
Demographic Segmentation
• Occupation:
Nescafe Classic: For those who work hard
• Income:
Nestle segmented their market ba...
Psychographic Segmentation
Life style and personality:
• Nestle provides KIT KAT these people who really want to enjoy
cho...
Behavioral Segmentation
Benefits:
Cerelac:
For those customers who want more benefits from the products
Cerelac contains v...
Target Marketing
Undifferentiated:
Nescafe 3 in 1 * Maggi noodles * Kit Kat
Differentiated:
• Koko Krunch, Nesquick: Choco...
Positioning Strategy
• Product Differentiation: Nestle brings a lot of product for
target different customers. As they pro...
Positioning Strategy
• Image differentiation: Nestlé’s logo is totally different
from its competitors that are greatly acc...
Marketing Mix
PProduct PPrice
PPromotionPPlace
Marketing
Mix
Advertising
• Nestlé is doing the selective demand advertising that is intended
to stimulate demand for individual brands....
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. Ne...
• In our report, we try to present the Marketing Strategies through
segmentation, target marketing and positioning of Nest...
Bibliography
• http://www.academia.edu/
• http://www.marketing91.com/
• https://en.wikipedia.org/
• www.slideshare.net/
• ...
Thank You
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Marketing Strategy of Nestle ppt

  1. 1. Marketing Strategy of Nestle BBA lll Ali Raza 14-Arid-4830
  2. 2. Contents • Introduction to Nestlé • Business Portfolio & Growth Strategies • Marketing Environment • Market Segmentation & Positioning Strategy • Marketing Mix of Nestle • Advertising Strategies • Conclusion
  3. 3. Introduction • Food and beverage company • Headquartered in Switzerland • Ranked #72 on the Fortune Global 500 in 2014 • Nestlé’s 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 Nestlé’s brands have annual sales of over CHF1 billion (about US$1.1 billion) • Nestlé has 447 factories, operates in 194 countries, and employs around 339,000 people.
  4. 4. History • Henri Nestlé established Nestlé in 1867 in Switzerland (Vevey HQ) • His first product was lactogen formula for infants by the name “Farine Lacteé”
  5. 5. History ( logo evolution ) 1875 1938 19881966
  6. 6. History • In September 1866, in Vevey, Henri Nestlé developed milk-based baby food. • In August 1867, Anglo-Swiss Condensed Milk Company was established. • In 1875 Henri Nestlé retired. but the company, under ownership of Daniel Peter , retained his name as Société Farine Lactée Henri Nestlé. • In 1877, Anglo-Swiss added milk-based baby foods to their products. In the same year Nestlé Company added condensed milk to their portfolio.
  7. 7. • In 1904, Both companies participated in the creation and development of Swiss chocolate and Nestle marketing the first chocolate - milk Nestlé. • In 1905, the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk Company and retaining that name until 1947. • In 1947, Merger with Alimentana S.A. (Maggi) and company named as Nestlé 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
  8. 8. • 1991 Beverage Partners Worldwide • 1998 Acquisitions of Spillers Pet foods • 2002 Acquisition of Ralston Purina • 2002 Acquisition of and Chef America and merger into Dreyer’s • 2002 join Cadbury and purchased American company Hershey's • In December 2005, Nestlé 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, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for US$2.5 billion. • 2007 Acquisitions of Ovaltine
  9. 9. • In April 2007, Nestle bought US baby-food manufacturer Gerber for $5.5 billion. • 1 March 2010 , Bought Kraft’s Food (Frozen Pizza) for $3.7 billion • In February 2013, Nestlé Health Science bought Pamlab. • In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc. • In December 2014, Nestlé announced that it was opening 10 skin care research centers worldwide • 2015, opening of Education and Longevity Development (SHIELD) centers
  10. 10. 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
  11. 11. Nestlé in Pakistan • Nestlé Pakistan Ltd. is registered on Karachi and Lahore stock exchanges. • Established its first production unit in 1988 in Sheikhupura named as Nestlé Milkpak Limited. Now Nestlé Pakistan Ltd. • Headquarter in Lahore • Multi Product Factories in Sheikhupura, Kabirwala, Karachi • Water Factories: 1 in Islamabad , 2 in Karachi
  12. 12. 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."
  13. 13. Vision Statement "Nestlé's aim is to meet the various needs of the consumer everyday by marketing and selling foods of a consistently high quality."
  14. 14. Organizational Hierarchy: REGIONAL MANAGER SALES ADMINISTRATION EXECUTIVE AREA SALES MANAGERS TERRITORY INCHARGES SALES DISTRIBUTION STAFF ZONAL MANAGER NATIONAL MANAGER
  15. 15. Organizational Structure
  16. 16. Portfolio
  17. 17. (Beverages) • Nescafé • Nespresso • Nesquik • Milo • Nescau • Nestlé Pure Life • Deer Park • Vittel • Nestlé Aquarel
  18. 18. Milk products, nutrition and Cream Products • Nido • Nespray • La Lechera • Carnation
  19. 19. Prepared dishes, cooking aids and pet care • Maggi • Stouffer’s • Buitoni • Herta • Thomy • Crosse & Blackwall • Winiary • Friskies
  20. 20. Chocolate, confectionery and biscuits: • Kit Kat • Smarties • Lion • Crunch • After Eight • Polo • Cailler • Butterfinger • Orion • Caja Roja • Sao Luiz • Star
  21. 21. Cosmetics • L'Oreal
  22. 22. BCG Approach Question Mark Don’t know what to do with Opportunities; Decide whether to increase investment Magi 2-minuts noodles Stars Doing Well, Great opportunities Mineral Waters Brands: NPL Dogs Weak in Market, Difficult to make Profit Power Bar, Lean Cuisine Cash Cow Doing well in no growth market with limited opportunities. Nesquit MarketGrowth High Low High Market Shares
  23. 23. 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
  24. 24. SWOT Analysis Strength Weakness  Product diversity  Acquiring and merger  Criticism  Incident in India Opportunity Threats  Building partnership  Broad Sale Channel  Changing trend  Raising Prices of Raw materials
  25. 25. Marketing Environment • Micro Environment: a) Suppliers: Suppliers provide the raw material resources, unfinished goods and labors to the company in order to produce goods and services b) Marketing Intermediaries: The market intermediaries of the company help to advertise, sell and distribute its product to the end customers. 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
  26. 26. Marketing Environment • Macro Environment: a) Political Environment b) Cultural Environment c) Economic Environment d) Technological Environment
  27. 27. Market Segmentation • Geographic • Demographic • Psychographic • Behavioral
  28. 28. Geographic Segmentation • Weather: Nescafe Ice: Summer Nescafe Classic: Winter
  29. 29. 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
  30. 30. Demographic Segmentation • Occupation: Nescafe Classic: For those who work hard • Income: Nestle segmented their market based on customer's earnings in an effective way
  31. 31. 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 customer’s who are really busy and do not have enough time.
  32. 32. Behavioral Segmentation Benefits: Cerelac: For those customers who want more benefits from the products Cerelac contains vitamin, mineral and all nutritious elements for babies
  33. 33. 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: Nestlé specializes in producing baby foods
  34. 34. 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.
  35. 35. Positioning Strategy • Image differentiation: Nestlé’s 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
  36. 36. Marketing Mix PProduct PPrice PPromotionPPlace Marketing Mix
  37. 37. Advertising • Nestlé 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 is one water, which gives you, hope, happiness and trust and that water is Nestlé Pure Life. It is pure, safe, and healthy water. • Slogan of NPL : JIYO! Kay yehi hay zindagi.
  38. 38. Advertising • Sales Promotion: • Public Relations: • Publicity:
  39. 39. 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.
  40. 40. • In our report, we try to present the Marketing Strategies through segmentation, target marketing and positioning of Nestle
  41. 41. 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/
  42. 42. Thank You

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