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“Project On Nestle Company”
Submitted To:
Mam Fareeha
Submitted By:
Muhammad Naeem
Roll Number:
0364-BH (E)-ECO-18
Course Title:
Introduction to Business and Entrepreneurship (BAF-2201)
Bsc (Hons.) in Economics
Session 2018-22
Department of Economics
Government College University, Lahore
O1 July, 2020
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Contents Introduction: .................................................................................................................................................. 4
Mission/Vision ........................................................................................................................................... 4
Market Classification ..................................................................................................................................... 6
Marketing Ps .................................................................................................................................................. 6
Products: ........................................................................................................................................................ 7
Beverages:.................................................................................................................................................. 7
Milk and milk products: ......................................................................................................................... 7
Price: .............................................................................................................................................................. 9
Place: ............................................................................................................................................................ 10
Promotion/ Advertising strategy: ................................................................................................................ 10
People: ......................................................................................................................................................... 11
Process: ........................................................................................................................................................ 11
Physical Evidence: ........................................................................................................................................ 12
Market segmentation .................................................................................................................................. 12
Bases for segmentation ........................................................................................................................... 12
Geographical area: ............................................................................................................................... 13
Demographic age: ................................................................................................................................ 13
Psychographic: ..................................................................................................................................... 14
Behavioral benefits: ............................................................................................................................. 15
Target marketing ......................................................................................................................................... 15
Differentiated: ......................................................................................................................................... 15
Positioning strategy ..................................................................................................................................... 15
Product differentiation: ....................................................................................................................... 15
Channel differentiations: ..................................................................................................................... 16
Image differentiations: ........................................................................................................................ 16
People differentiations: ....................................................................................................................... 16
Service differentiations: ....................................................................................................................... 16
Channel of distribution ................................................................................................................................ 16
Types of distribution ................................................................................................................................ 16
Agents .................................................................................................................................................. 16
Distributor & Super stockiest............................................................................................................... 16
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Mange Area.......................................................................................................................................... 16
Re-distributor ....................................................................................................................................... 16
Wholesaler & retailer........................................................................................................................... 17
Market Communication ............................................................................................................................... 17
Two types of promotion .......................................................................................................................... 17
Trade promotion .................................................................................................................................. 17
Consumer promotion .......................................................................................................................... 18
Conclusion .................................................................................................................................................... 18
Bibliography ................................................................................................................................................. 19
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Introduction: The pharmacist Henri Nestles in 1867 founded Nestle Company, which is one of the world’s
largest beverage and Food Company, in Switzerland. It’s held-quartered in Vevey, Vaud,
Switzerland. It is a public type and food processing industry. The maximum of Nestle is “good
food good life” in 1905 Henri Nestle his Nestle company merges with Anglo-Swiss to form a
new Nestle group. Henri Nestle in 1867 launched his ‘farine lactee’ (floor with milk) in Vevey
Switzerland. It is a mixture of cow’s milk, sugar and wheat flour. Nestle developed for
consumption. In this time he started, iconic, Nest, logo in 1875.Three local business man had by
Henri company and factory from Henry Nestle. They expand production and sales due to high
skilled workers and chemist. In 1904 first time Nestle besom selling chocolate due to over expert
sales for Peter & Kohler. It has 447 factories in 194 countries employing 3, 39,000 people in
their company. Approximately 230,000 had employed from worldwide with & 71.7 billion in
sales. During year by year Nestle company is increasing different variety of products.
Mission/Vision
The world top processing brand and food has most effective mission and vision statements.
Mission:
Nestle company mission is “good food, good life” to consumer for their best consumption, best
taste and having most nutritious choices in the largest range of food and beverage like drinks
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categories and occasions. It is a world’s leading health, wellness and Nutrition Company. It is
indicates that Nestle company put their customers at high top of the level, major points of this:
(i) Improving lives
(ii) Boosting health
(iii) Improving communities
Vision:
The vision statements of Nestle company is “ to be a leading nutrition, health and wellness
company delivering improved shareholder value by being a preferred corporate citizen, preferred
employer supplier selling preferred products” the following two components based on this
statements:
(i) Delivering improved values
(ii) Be a leading company
Due to long experience Nestle has learned the art leadership.
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Market Classification If we talk about market structure, than Nestle is
Monopolistic competition where many sellers each produce similar but different type of
products. Nestle as a global company approximately a heterogeneous consumer market because
people belong to different regions and having different taste, needs, and preferences.
Marketing Ps The 7Ps of Marketing mix:
(i) Products
(ii) Promotion
(iii) Price
(iv) Place
(v) People
(vi) Process
(vii) Physical evidence
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Market mix of Nestle Company tells us or shows us about its product line.
Products: It has 8,000 brands with wide range of products across the market. Nestle have various verities of
product which satisfy to consumer. In the market company have high range product line which
are best qualities different types of products Nestle provide ot5her countries due to their demand.
Their products are less costly. Company has strong graft on products. Nestle having own brands.
Beverages, milk and milk products, prepared dishes and cooking aides and chocolates etc are big
food products.
Beverages:
We know about Nescafe which is most famous brand of the Nestle Company and it is a most
powerful source of money earning. Nestle distributes their products in many countries. In India,
Nestle has launched ‘Nestea’.
Milk and milk products:
If we talk about the milk and milk products some are products which are house of Nestle: Nestle
every day, Nestle slim and Nestle milk maid. These products are the mixture of milk, sugar and
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wheat flour. These products are healthy for consumer. They are sources of satisfaction for the
consumer.
Prepared and cooking aides:
Prepared and cooking aides are a third category of products of Nestle. If we talk about the cash
cow of the product then Magi Noodle is most important. In the worldwide, mostly consumer
consume their money on magi brand. It has a best quality and fantastic taste. Magi pasta, magi
sauce, magi cubes etc, different products of magi brands.
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Chocolates:
Nestle has sweets taste product chocolates like Nestle kit Kat, munch, polo, éclairs and milky
bar. Alpines is newly introduced product which targeting the getting segment in other side of
dairy milk and Bourneville by Cadbury. These products of Nestle an upper level then other
competitor. The market size is at top. Two major brands which contribute in Nestle reputation
are:
(i) Nescafe
(ii) Maggi
Price: Individual products have different price. If we talk about the price of any product, it will depend
on their quality. In the market competitor of Nestle their products less expensive then nestle due
to different in quality. If a consumer takes expensive product so the reason is that it is a best
quality of a product. Customer believes on quality. “Best price, better quality”. If we taken an
example of magi, its price are higher than other products, like yippee noodles or waiwai. Because
products are in best quality then customer buy easily for some extra money. Nestle pricing
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depend on the packaging and consumption based products. In market we find 16 packet magi but
at retail shops, we find 5rs magi.
Place: Nestle has head quarter in Switzerland. But its brands offices are located throughout the world. It
business divided into three key zones based on geographical markets:
(i) Americas
(ii) Europe
(iii) Middle east and North Africa
(iv) Asia Oceania and sub-Saharan Africa
Their Products are available on around the world. In global markets it has great impact due to its
distribution channel. Now Nestle products are in rural and urban areas. Nestle provides easily
access for their customers, due to product availability in every areas mostly customers feel better.
Almost, around the world 200 countries Nestle brands name. Nestle also offering their
customers through online delivery products through different types of channels.
Promotion/ Advertising strategy: Promotion is a way to tell their target audience about their products, brands and their
quality. Nescafe is a one the most advertising compaign that promotion company product. It
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makes strongest impact in the supermarket. Nescafe focuses on their customer way of life which
they live and value of products which having purchasing power. Many different genres of
marketing channels which promotes the products of a Nestle company. It also uses social
marketing channels for their brands promotion. Now a days it focuses on grow of their products
and also sales and revenue. It has several brands iconic in its portfolio. They are increasing their
investment through online presence in e-commerce. In 2018, it has approximately 7.4% of net
sales through e-commerce. It uses all media channels through which is promotes their products
and brands at: TV, print, ATL, online ads.
People: Those employees who work in a company use or make a important rules for the growth
strategy of the products. Nestle has been recruiting a lot of people to join their company they
provide complete training for their employees and gain more experience. Those people, who
work there, provide better customer services. Nestle company organised campaign for their
employees for purpose of promotion, dealing and provide better service to their customer. People
make an important rule.
Process: Nestle having fast service for their customers. Nestle company uses best combination of
technology to process their products. Best technology take less time in purpose of products and
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all brands of Nestle having new technology for production. Due to the good process system
Nestle
Physical Evidence: Nestle has been better physical evidence. They make best infrastructure for the
customer. If we talk about Nescafe, there has well-groom staff and cleanly environment which
customer wants. There have a good looking building and a logo of Nestle which identify
company. They give best platform and customer service. These things, get attraction customers
towards themselves.
Market segmentation If we talk about segmentation, we see that every person having own taste on the basis of
age, location, weather likes hobbies, purchasing power and money other such factors. It provides
customer requirements. It is a part on which, those requirements provide customer which need. It
is great platform and different from others. Markets understood all these factors and divided
market based on some parameter. Basically, market segmentation provides to major customer for
their own need requirements:
Bases for segmentation
The following are bases for segmentation on the basis of characteristics of customer.
(i) Geographic area
(ii) Demographic area
(iii) Psychographic area
(iv) Behavioral area
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Geographical area:
Bases on graphic area like in summer many people don’t take coffee or tea but ice-
cream. So, Nescafe ice depends on weather, where warm and cold. It is coffee which consume
with ice in ward season. But in winter many people wants tea instead of ice-cream.
Demographic age:
It is based on generation. It is basically for the children or new baby born. Products like,
Koko crunch, Nido, Cerelac, Lactogen.
Koko crunch
It is important for the growth of children because it includes mineral, vitamin and
protein. It is chocolate milk. It is very sweet and delicious. It contains child’s required growth
and makes strong bone.
Nido
Nido is another nutritious milk especially for children whose age above 2 years. It helps
child’s growth includes vitamin D and 25 minerals.
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Cerelac
Cerelac used for new aged baby. It is a mixture of rice and milk and for less than one
year’s baby.
Psychographic:
Those people/young generations how are eager for chocolate. If we talk kit Kat for those who
want to enjoy chocolate. Nestle Nescafe 3 in 1 especially for those customer who have engaged
in activity.
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Behavioral benefits:
It is an efficient way. If we talk about Cerelac, customers who use it gain more benefits from
it. It use for less than 1 year baby. It has includes vitamin, more minerals and other nutritious
elements which need for babies.
Target marketing After the segmentations next will be target marketing. Segmentation provides opportunity to
firm about their customers. After the segmentation company decide where they operate their
system. Due to requirements and needs Nestle distributes their target market.
Differentiated:
On the bases of the factors in segmentation it provides different products.
(i) Nescafe 3 in 1:
It is for those customers who spend busy the whole day.
(ii) Koko crunch:
For those, who have found of chocolate taste.
(iii) Nescafe ice:
In hot summer it is best for customer. It is cold coffee and provides their customer energy.
Positioning strategy It is very efficiently and effectively by creating product, service, people, channel and image
differentiation arrives the consumer touch point easily. It is very hard to comparing their
products with other competitive in the market.
Product differentiation:
Nestle having many products for target customers. In Nido, 25 types of minerals for children.
It also arranged for new baby born nutritious like Cerelac and lactose 1 and 3. Nescafe has 4
types of categories. In magi includes minerals, vitamins and nutritious.
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Channel differentiations:
Nestle having most experience and good service provider employees. Through these, Nestle
provide goods to the customers. Which are easy for their customers?
Image differentiations:
Nestle having own brands and different from others competitor in the market. Nestle logo is
different from others customers identify through their logo.
People differentiations:
In company many people who run the company most powerful and educated and trained than
other competitor. They all are running business for long term.
Service differentiations:
It is another advantage for company from competition. 24×7 service is available for the
customer. It provides high quality checking. It has market and public relation dept. they have
better idea about the customer needs and their requirements.
Channel of distribution
Types of distribution If we talk about the distributions of the product through channel than we see that, Nestle has
its own networks of distributions having transportation facilities.
Five types:
Agents
First of all Nestle send their products to the C&F agents of the company. Then, next at
manufacturing unit.
Distributor & Super stockiest
After manufacturing unit next it flows to distributor and super stockiest.
Mange Area
Distributor has duty to manage how to distribute available products in his area.
Re-distributor
Re-distributor takes products from the super stockiest. Re-distributor in-charge
managing.
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Wholesaler & retailer
Distributor and re-distributor, supplies the product in their respective region or area
through wholesales and retailer.
Market Communication (a) Types of promotion
It is very hard and struggle like work for company. It means many business or companies’ uses
market communications to convey messages about the products and brands value.
➢ Campaign on Nescafe brought Nestle strongest in the market. It was launched
approximately two decades ago. It is one of the best advertising campaigns.
➢ Magi another side best quality product and it has innovative campaign.
➢ “Take a brake” is a good marketing for kit Kat. Promotion for best quality product
is done smartly.
➢ We see that Nestle has focused on the ground level marketing their brand and
product like magi, Nescafe and kit Kat.
➢ Now Nestle is starting Marketing online through, TVC’s and ATL.
Two types of promotion
Trade promotion
➢ Now Nestle is starting trade discount for their customer and channel to keep them
motivate. Magi is the most in-demand product in the market. It is a major challenge for
Nestle for distribution it. Distributors having benefits get discount.
➢ Nestle face challenging against their competitor on chocolate like product other product
which competition is Cadbury. Dairy milk is better than kit Kat but every product having
own value, kit Kat own brand and having positioning in the market. So it is very difficult
task for Nestle to sale their product, in this way they offer discount or gifts to trade on
target sales.
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Consumer promotion
Nestle give bonus packs and premium items to their consumers, and also provide discount rate.
Nestle also started online marketing for some smart creative through TVC’s and ATL.
Conclusion It is one the best food processing in the World. Nestle has done outstanding work toward
customer loyalty as like other marker competitors. It has great impact on food s market. It has
best quality of foods on over the World customer consume. Nestle struggle towards new brands
and best quality of products. Due to their efficiency and experience in their field, their products
on all sides of area, may urban or rural. Nestle consumer having easy access towards products.
Nestle also provides those products which lead it on the top in the market. Nestle has
opportunities towards their customer needs and requirements. Customers take satisfaction from
Nestle has relation like friends. On the basis of segmentation it Nestle get easy access to
consumers. Nestle products having own positioning in the supermarket. It has many competitors
in the market like Dairy Milk and Kit Kat. It has many channel like TVC’s and ATL in these
through, company promote their products.
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www.coursehero.com: https://www.coursehero.com/file/21891542/Company-Background-of-Nestle/
MARKETING 8p's and leverging of Nestle. (2015, April 15). Retrieved 07 01, 2020, from
arnobkibria.blogspot.com: http://arnobkibria.blogspot.com/2015/04/marketing-4ps-and-leverging-of-
nestle.html?m=1
Marketing Mix of Nestle | 4Ps of Marketing Mix of Nestle. (2018, Augest 05).
(2020). Nestle Marketing Mix (4Ps) Strategy. MBA Skool Team.
Pratap, A. (2019, Aril 18). MARKETING MIX OF NESTLE- FOUR P’S.
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https://www.nestle.com/aboutus/history/nestle-company-history
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