Wednesday, December 11, 2019
Nestle Corporate Business Marketing Principles Free Sample
Question: Discuss about theMarketing Principle for Nestle. Answer: Introduction Nestle is a vibrant company that provides a broad range of products to the customers, which represent global standards. The organisation is highly dedicated to the long- term goals with sustainable growth and satisfaction of the shareholders. The reputation of Nestle has expanded greatly, which indicates that the company is doing very well globally. According to Bahadir et al. (2015), Nestle always believes in establishing a benchmark in the food industry. Such a standard is demarcated by providing healthy and nutritious food to the customers. The company integrated a well-structured marketing communication, which inclines a clear message to the customers. As per the opinion of Helm and Gritsch (2014), every organisation needs to grow a clarity in the marketing objectives and follow the strategies to obtain the goals. Nestle also plans scientifically to formulate the best-accepted marketing strategies. The main aim of the firm is to serve the customers with proficient goods and to maintain the standard. The company always try to design innovative marketing strategies for both local as well as international market place. The RD department of Nestle undergo market segmentation process to understand the customer behaviour and needs. The objective of such innovations is to acquire and retain the customers and make the huge profit. Evaluation of Marketing Mix The marketing mix of Nestle confers the 7Ps, which aids the firm to be the strongest FMCG companies of the world. The marketing mix of Nestle boosts up, due to the presence of high product line. The various elements of marketing mix are as follows:- Product Being the world's largest healthy and nutritious food company, it has almost six thousand products, which is widespread in range. Nearly all the daily use goods and occasionally used commodities are a part of Nestle. Several tactical business units within Nestle manage the large food products. The groups segregated the products mainly in 4 categories to maintain the standard and ease in manufacturing the products. The categories are including beverages, milk and dairy products, chocolates and prepared dishes and cooking aids. According to Dominici (2009), these classes are then subdivided into several sections as per the customer choices including different sizes and flavours. Before introducing the products in the market, the RD department undergoes a series of screening. This process includes food processing, micro- analytical research and proper checking of delivery activities so that the customers would get a good commodity. The UHT treatments and tempting and great lasting tetra packaging are the measures for packaging of milk products. The priority of Nestle is to give quality nutrition, and various information is provided on the packages so that customers can check as per preferences. The maintenance of high quality made Nestle as one of the most appreciable company without much complaint in the market. Price The key factor of success of Nestle in the international market is due to the flexible prices of the products (www.theseus.fi, 2014). The company fixes the price, which is reliant on the market for each product. The marketing strategies of Nestle consist of wide-ranging of pricing strategy, which allows them to maintain the prices at a sustainable phase. For example, Maggi and Nescafe are the clear leaders of the market and are priced with high margins for the firm even after the competition. Such pricing becomes possible because the quality of the products is exquisite. Thus, the skimming price will not affect the customer to switch the brands. In addition to this system, Nestle also keeps the prices affordable to almost all the layers of customers. For example, in the case of beverages, the fruit juices are available for the low economy class while the costly tin packed beverages are also doing well. The potency of pricing for Nestle comes from the exclusive packaging. The company offers a variety of sizes and package options. As the market share leader, Nestle enjoys economies of sales, production cost and flexible price distribution help to stand out even in competitions. Other products like KitKat and Munch face competitions from other companies, which is backed up by the competitive pricing. Thus, with such vast varieties, the customers can make own buying decisions as per the requirements. Placement The company follows the FMCG style of distribution that involves breaching the bulk. This system helps the firm to work worldwide. The company has a large number of operating centres that are being run in almost 86 countries. The sales occur globally and impulsively. The products of Nestle have the central business area in Europe, from where nearly 90% of sales and revenues generate. According to Bliss and Cooke (2011), the products are not directly launched in the market but are introduced systematically. The company follows an organised pattern of distribution that includes manufacturing, CF agents, distribution, wholesalers, retailers and finally consumers. Nestle always look forward to expanding the outlets. Thus, the broad range of products is available in maximum stores. Promotion Nestle have the constructive planning department that works for the promotion of the brand. The management is always ready to pay multiples of the estimated sum. According to Richter (2012), Nestle embraced push and pull strategy. Through advertisement, the company creates a demand vacuum that persuades the customers to buy the products. Additionally, the firm utilises the distribution's sales forces and trade promotional activities to push the brands through electronic and print media. The advertisements along with alluring figurations of the brand always prove superior. Thus, it can be said that Nestl's publications pull the consumers from the market. People To achieve competitive advantage, Nestle always promotes internal marketing to attain maximum performance from the employees. The recruitment teams of the company are decentralised, well- selected and locally responsive. Due to the diverse working environment enable the staffs to respond appropriately and minimise the consequence of cultural variations. There are some non-negotiable standards for the suppliers, agents, etc. to ensure high customer services. According to Powers and Loyka (2010), almost 95% of jobs are filled by internal promotion, which motivates the employees to a great extent. The competitive system of wages and benefits are present for the employees which are highly encouraging. Process The customers have authority to contact the firm through email or phone with an effective customer relationship management. Through inventory control system, the product is readily available to avoid customer dissatisfaction. The manufacturing department works constructively to prevent any stoppage in the process of production. This active participation helps the organisation to maintain a continuous supply in the outlets. Physical Evidence The company always introduce the nutrition levels on the packages of the products to give real hints to the customers (www.nestle.com, 2014). For example, the packaging of Cerelac contains nutrition table with "stage indicators" and infant formula to help the mothers to take the right decision. This step helps the customers to develop awareness and loyalty. Short- Term Perspectives The company's immediate perspective is to provide the clients with proper nutrition, health and wellness. To fulfil this criterion, the managers are continuously trying to adopt such strategies that can provide welfare to the customers. According to Manna and Smith (2011), the main aim of the management of Nestle to provide a healthier lifestyle. The administration adopted the industry- leading research and developmental drives to bring highly innovative products. Also, there is a regular renovation of the food and beverage portfolio to attract the new customers and retain the client loyalty. The researchers of Nestle are always exploring the role of nutritional therapies to improve the health of the customers and also help to maintain (Chaffey and Smith, 2012). The company is also taking initiatives to share the insights on global nutrition and health challenges. This initiative builds a partnership and engages the various stakeholders to strive a positive impact on the societies wh ere the company operates. The marketing managers also make strategies that can empower the public to make effective buying decisions. The Management also initiated many health care programs to guide the parents more systematically (Dang, 2014). The interactive and science based instruction program "start healthy and stay healthy" help the parents to provide newborn kids with balanced nutrition. The United for healthier kids program carries this ahead and aids the caregivers to establish healthier eating and drinking habits. The company also works vigorously to encourage the physical activity along with the healthy eating practices. Additionally, the company also delivers the commitment to reduce the use of salt, sugar and saturated fats in the products and eliminate the trans fats. The firm is also trying to enhance the portion guidance and get better labelling and printing GDAs ( Guideline Daily Amounts) so that the customers can quickly read the specifications (Goi, 2009). Thus, the firm always keeps on acc elerate the strategies so that the customer's well-being can be achieved. Long- Term Perspectives According to Codita and Belz (2010), it is vital for every organisation to correlate the marketing objectives with the corporate strategies. The management of the firm always strives to meet the rapid- changing expectations of the customers. It is very critical for the organisation to maintain a sustainable growth and trust in the minds of the customers. The management of Nestle always concerns about maintaining the reputation and goodwill in the market. After the food contamination issue in Australia, the management becomes more conscious towards the customer healthcare issues. The managers of various departments work in a synchronised manner to adopt a public friendly system. The main aim of adopting such strategies is to attract more people and to retain the previous customers. The firm cares deeply about the food safety and quality in a sustainable way. It is imperative to behave responsibly in various operational activities to bring accuracy and standard. As per the opinion of J ackson (2009), it is the fundamental belief of the company to thrive the long term perspective by creating value for the shareholders. At the same time, the value is created for the society also. The another objective of the company is to ensure the Nestl's name to be identical to the products of supreme quality to hold the customer base. It is also essential for the firm to embrace the client loyalty for prolong period. Recently, the reports showed that the organisation is pursuing the policy of diversification and spreading out through divestment and acquisition. The system is adopted to accomplish a more even-handed structure to the business. Another aspect of the adoption of such policies is to provide the consumers with more innovative products so that the customer's choices can get preferences. According to Polo and Cambra (2007), with the implementation of integrated marketing communication (IMC), the firm's ability to reach the right customers has improved. Thus, it becomes easy for the company to send right messages to consumers at the right time to preserve the customers and increase the value proposition rate. Conclusion After evaluating the above study, a conclusion has been drawn that Nestle formulates critical marketing strategies to monitor and analyse the success. Nestle emerged as one of the market leaders in the food industry with the adoption of different marketing strategy. The company maintains the quality and possesses a flexible product line. The prices of the products are fixed in a way that suits almost all levels of consumers. The flexible pricing strategy makes the brand suitable and favourable for everyone. The company also follows a systematic criterion during the introduction of the products to avoid inaccuracy. The attractive advertisements generate a demand vacuum by the people that push the consumers to approach the commodities. According to Pornpitakpan (2010), the firm has a good reputation in the global market, which summarises that majority of users use Nestl's products. The short-term perspective of the company is to maintain the quality of the goods so that the wellness of the consumers can be valued. The aim of the management is to provide a healthier lifestyle with innovative product and safe packaging. However, in the long run, the company follows strategies to attract more customers and retaining the previous ones. 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