Marketing Strategy of Nestle: Nestle is among the largest companies in the field of food processing in terms of revenues and profit. It is a Fortune 500 company that serves a diverse segment of customers across the globe and has a market capitalization of US 250 billion (May 2015 data). The top health, nutrition & wellness firm is providing for the requirements & desires of their clients and their families across the globe to support them in living a more healthy way of life.
Nestle At A Glance – Marketing Strategy of Nestle
Company : Nestle AG
CEO: Ulf Mark Schneider
Founder: Karl Benz | Gottlieb Daimler
Year founded: 1905
Headquarters: Vevey, Switzerland
Annual Revenue: US$93.1 Billion
Profit | Net income: US$12.7 Billion
Number of employees : 291,000
Products & Services: Ambient Dairy | Chilled Dairy | Coffee | Bottled Water | Juices | Culinary and Foods | Confectionary | Baby Food | Breakfast Cereals
Competitors: Mars | Mondelez | Hershey | Ferrero | Godiva | Pepsi co | Lindt | Kellogg’s
Marketing Strategy of Nestle
Nestle’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Nestle? Let us discuss.
Segmentation, Targeting, Positioning – Nestle Marketing Strategy
The world’s most renowned FMCG Company is using different strategies across different areas. It makes use of demographic, geographic, and behavioral segmentation techniques to meet the ever-changing requirements of the industry with the highest level of competition.
The differentiated targeted approach helps the business to target the homogeneous group of consumers (i.e. customers who share the same requirements) by offering a variety in merchandise.
It employs a combination of value-based as well as products basis positioning strategies based on the type the product that they’re advertising and the marketplace in which they sell the products.
Nestle Mission Statement
“To provide consumers with the best tasting, most nutritious choices in the wide range of food & beverage categories and eating occasions, from morning tonight.”
Nestle Vision Statement
“Good food, Good life”.
Competitive Advantage – Marketing Strategy of Nestle
Being present in more than 190 countries has helped the company with intercultural exchange and in knowing the requirements.
With such a wide portfolio of brands, the portfolio, the company is leading all markets around the world. The wide range of products aids the business to maintain a large proportion of the customers’ wallets of its customers.
Nestle has a robust research and development network in FMCG and wellness with over 5000 scientists and researchers from all over the globe.
BCG Matrix – Nestle Marketing Strategy
Nestle has seven verticals of business that offer nutrition, health as well as wellness-related products.
Dairy products, powdered, bakery products, liquid beverages, confectionary verticals, and cookies are the most sought-after because of nestling’s enviable position in these industries with its long length of products.
Its pet-care, Water Business verticals are a question mark on the BCG matrix because of that there are a huge variety of national and local players in this segment.
Distribution Strategy – Marketing Strategy of Nestle
With its diverse and extensive product range, Nestle has been able to offer its products to consumers at a lower cost via its vast system of distributors. Countries in the developing world have provided the largest potential for a company such as Nestle because of the potential and obstacles to entering the market. Nestle utilizes a multichannel to market its products. channels approach to sell its products.
Brand equity – Nestle Marketing Strategy
Nestle is a Fortune 500 company and it is a leader in its branding for its brands that aid in generating high visibility and recognition.
Negative branding also served in favor of the company if certain countries had banned Maggi Noodles because of their lead which was later remediated and the ban was lifted.
Competitive Analysis – Nestle Marketing Strategy
The health, nutrition, and wellness market are very competitive and overcrowded with local and global players. Nestle is also facing opposition from pharmaceutical firms.
Market Analysis – Marketing Strategy of Nestle
The number of competitors competing within the same market and the inability to penetrate the untapped market is what propels the industry to continue its expansion. Nestle has a few categories of products that aren’t very popular and face stiff competition from competitors.
Customer Analysis – Nestle Marketing Strategy
With such a vast array of products of various types, Nestle serves different pocket sizes too. Being a global corporation, it can meet the ever-changing requirements of the people of a specific nation effectively and competitively.
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