NAME: P.

ROSHAN GUPTHA
COURSE: CMBA2Y4-JUNE2021
STUDENT ID: ST20191812
MODULE: STRATEGIC GLOBAL MARKETING
MODULE LEADER: PROF.ELORA BASUMATRY

S.NO TABLE OF CONTENTS PG. NO

1 Market entry strategy of MNC’s 2
2 Motivation of Nestle in Entering Bangladesh 3
3 Strategic orientation of Nestle 3-4
4 Institutional contexts of Nestle 5-7
5 Organizational structure of Nestle 7-8
6 Challenges faced by Nestle 8-9
7 Primary objectives of Nestle in Bangladesh 9-10
8 Key strategies used by Nestle in Bangladesh 10-11
9 Conclusion 12

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MARKET ENTRY STRATEGY OF MNC’S IN HOST COUNTRY:
The most critical strategic decisions faced by MNE management when
internationalising is possibly which market penetration mode to select and
which country to join. A strategic plan with defined objectives, strategies,
resources, and policies guiding international business is required to achieve
management objectives. Since domestic markets are saturated, many MNEs
are focusing on developing markets because of their immense potential. The
cost-cutting opportunity is perhaps the most critical of the many possibilities.
Although emerging markets have a lot of potential for MNEs, they also have a
lot of challenges that are obstacles that should not be overlooked.
Companies entering new markets must make critical decisions on how to join,
which people to represent, and how to better satisfy them. Companies must
answer the following questions to succeed: what the goals of are entering a
new sector, and do they have adequate internal funds. Since this is a difficult
process, global expansion can take many years.
However, these are not the only steps that MNEs must take before entering
new markets; there are a slew of other activities that must be performed prior
to doing so. MNEs must manage each of their products individually. Each one
necessarily involves marketing attention, which must be thoroughly prepared.
As a result, the organisation must be able to determine if there are
opportunities to achieve and set priorities and objectives for the product(s)
they would sell. This refers to the 4Ps design: Product, price, promotion, and
location are all important considerations. Until deciding on an appropriate
entry strategy, the organisation must first assess the target market; a PEST
study is strongly recommended.
Following the decision on which market to enter and the entry mode to use,
the organisation must track its output to respond if necessary.

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MOTIVATION FOR NESTLE IN ENTERING INTO BANGLADESH:
Over the past 150 years, as one of the world's biggest company, Nestle, have
improved the Human beings and their families' quality of life in 191 countries
Nestle's goal is the same in Bangladesh as it is in the rest of the world: to
ensure a prosperous world for a country with which they have worked for the
past 25 years. Nestlé Bangladesh Limited started its business in 1994 as a
strategic partnership between Transcom Limited and Nestlé S.A, Switzerland,
with its first factory in Sreepur. Nestlé Bangladesh had become a fully owned
subsidiary of Nestlé S.A. in 1998.

Nestlé Bangladesh has provided a various range of products and services for
people at all stages of life over the last two decades, assisting them in taking
good care about themselves and their customer families. They have spent a lot
of time collaborating with the community in which it operates, training
farmers, improving livelihoods, educating children and adolescents about good
nutrition, and empowering environmentally friendly functions.
(Multinational Corporations and the Impact of Public Advocacy on Corporate Strategy, 2021)

STRATEGIC ORIENTATION OF NESTLE:

They have spent a lot of time collaborating with the community in which it
operates, training farmers, spend a substantial, educating children and
adolescents about good nutrition, and empowering environmentally friendly
functions. However, they must note that the strategies can ensure the same or
greater success for the business in the future as they do today and so examine
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the strategy from this perspective would be beneficial to the company in the
long run. Currently, the firm takes a Regio centric approach.
While this form of structure and strategy benefits the company in the short
term, as emerging markets expand and the company pursues to expand into
new markets in Eastern Europe through mergers and acquisitions, the
company will need to achieve some degree of international synergy and
incorporation. As a result, the author suggests that the entity embark on a
divisional structure with a Geocentric mindset, which will finally allow it to
have a broader outlook while maintaining The ability to make required changes
at the municipal level at any time and on any frequency.
To summarise, while the current strategic attitude appears to be correct, it
should be reviewed and updated if the organisation is to continue to enter,
win, and stay competitive in the market in both developed and developing
markets around the world.
The multidomestic approach is very relevant in a market where there is a high
demand for local responsiveness and, as an outcome, cost-cutting pressures
are cheap. Nestlé's overall pragmatic approach makes sense given that it
conducts in nearly each country on the planet, with a significant presence in
developing markets. In certain industries, such as food, chocolates, dairy
nutrition, and others, demands for local responsiveness can be extremely
strong. Since customers in the markets where Nestlé operates There are
numerous national differences in needs and interests, supply chains,
competitive conditions, business practises, culture, and government
regulations., pursuing a multidomestic strategy is advantageous to the
company.

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PEST ANALYSIS:
Political factors: As Nestlé operates in over 190 countries, any change in
regulatory environments can have a significant effect on the company's
operations. Multinational corporations such as Nestlé are more likely to face
production bottlenecks as a result of government regulations and reforms. In
general, the more countries a business runs in, the more likely it is that policy
changes will obstruct operational activities.
Brexit case, for example, threw Nestlé's plans off track. Because of the
relocation, the livelihoods of input and food workers are jeopardised. Nestlé's
revenues and manufacture are heavily reliant on the European union.
Furthermore, the uncertainty of Brexit has jeopardised the entire UK food
supply. Because of the Brexit transition, Nestlé regarded shifting production
from Newcastle and York to Poland. Because Brexit is still up in the air, the firm
has little faith in the nation's growth. As a result, it is advisable to relocate
operations away from this volatile environment.
While political changes often have an impact on the business, shifting
operations out of the country has an impact on Britain's unstable climate.
Nestlé's departure would result in the loss of over 300 employees, further
complicating the already tumultuous political situation in the United Kingdom.

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Keep in mind that few corporations have the power to influence political
stability, but Nestlé does.

ECONOMIC FACTORS:
Nestlé is experiencing financial difficulties because of rapidly changing foreign
exchange rates. As a corporate giant, the influence of foreign rates and prices
has a direct impact on a company. A relatively weak currency will result in
reduced of profit, depending on the geographical location.
Nestlé's income has risen in recent years. In fact, the company's earnings
increased by more than 40percent of total in 2018. According to the company,
profit has increased from $7.6 billion to $10 billion. These factors account for a
large part of this success: Markets in the United States and China, as well as
the sale of its confectionery company

SOCIAL FACTORS:
A business is affected by the social environment, which includes attitudes,
purchasing behaviours, and changing demographics. The majority's obsession
with healthy eating has had a significant impact on food and beverage
companies such as Nestlé. People want to eat less sugar and fewer calories.
Nestlé is aware of this. If it did not, the corporation would be in big trouble.
Nestlé is working to reduce the amount of sugar, salt, and saturated fat in most
of its products. This necessitates the reformulation of existing products, but it
also explores a range version of classic foods and beverages beloved by Nestlé
customers.
TECHNOLOGICAL FACTORS:
Nestlé should invest more in R&D. It has more innovation at its level to achieve
greater feats in the R&d team; social media, digital surveys, email marketing,
discounts... the list goes on.
Because of evolving technology, it is much easier to connect with audiences all
over the world. It also means that Nestlé has more possibilities for increasing
production, quality food, and food availability to purchasers.

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Some companies are using blockchain technology to gain complete
information access to their products, from development to delivery. Nestlé can
also benefit from this because it reduces production time. It is as of now a
costly endeavour that will have to be phased. into each of Nestlé's production
lines.
Therefore, from the PEST analysis of Nestle we can say that Nestlé is a massive
multinational corporation with ties to 194 different countries. It has the
resources and the clout to have an impact on governments. It is also profitable,
despite major controversies surrounding Nestlé's ownership and views on
water rights. The company can adopt new technology to learn more about
what their customers want, but it may be for naught if they do not clean up
their public image.
(Frue, 2021)

ORGANIZATIONAL STRUCTURE OF NESTLE:

Nestle Company is a decentralised organisation that is structured using a
centralized system. Nestle, as a decentralised organisation, allows subordinate
branches to have a high sense of flexibility. Although major strategy decisions
are still made at the corporate - level, daily operations are delegated to
subordinate branches. Local units are given responsibility for operational
decisions in corporate structure, a complex system is one that includes many
organisations and exhibits a high level of dynamical interactivity.
Complex structures are typically open systems. Throughout its long history of
development from a tiny town operation to the world's leading food
Manufacturer, nestle has indicated an exceptional ability to adapt to an even
more physical conditions while maintaining its core values and founding
principles, which are essential for long-term success. This capability will put to
the test even more in the coming years as Nestle grows and complexity to the
point where continuous development of its organisation and the way it
operates is required.
The mission of Nestle is to create good food so that people can live better
lives. This mission statement and the corporate logo are inextricably linked.
Because of its core values, the company strives to provide customers with
foods which are safe, of supreme quality, and provide the good nutrition to

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meet physiological needs. Nestle also contains the ingredients required for
taste and satisfaction.
Nestlé's company's mission is to be the highest and most well-known food
producer in the world, while also making sure that the Nestlé brand is
compatible with high products. Nestle has already achieved one component of
its strategic goals of becoming the biggest supplier.
This goal is linked to another Nestle goal, which is to ensure that the product
creates long-term profits for shareholders, employees, consumers, business
partners, and the global economies in which Nestle functions.
Nestle's primary concern is to provide nutritional value to its customers. That is
why, on the corporation's website, it is clearly stated that Nestle is the nation's
top Nutrition, Health, and Wellness company.
CHALLENEGES FACED BY NESTLE:
ENGAGING WITH THE CONSUMERS:
Rapid engagement on conventional marketing platforms was critical, but
Nestlé stayed Both offline and internet, they have been deafeningly silent on
the subject.. Surprisingly, Nestlé's competitor ITC's Yippee noodles marketing
division appears to have capitalised on the Maggi dispute to increase market
share. It launched a publicity campaign in August 2015 trying to emphasize its
cutting-edge production To address client issues, we have facilities and
stringent testing protocols, as well as a 'You Ask, We Answer' approach.
Collaboration with regulatory authorities in emerging markets:
Due to the business's poor communication with officials, what began as a
simple 0.3 million penalty fine rapidly escalated into a with plenty national
issue. Nestlé was convinced right away that it was correct and that no further
discussion was necessary. Nestlé's attorney informed the Mumbai High Court
in July 2015 of the FSSAI's unfairness in initially authorising the product
packaging and then criticising Nestlé of MSG incorrectly labeled during the
prohibition.
THE PRODUCTION PROCESS AND RAW MATERIALS:
The report illustrates how purely present MSG content in the ingredients may
have contributed to the result of the test. SAJ Foodstuffs, headquartered in
Kolkata, was already FSSAI-certified and supplied roughly 4% of Maggi's yearly

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output. Despite this, Nestlé decided to discontinue its contract with SAJ Food.
Goods to be manufactured Maggi, while also distributing other Nestlé product
lines. This begs the question of what caused the study's high levels of lead and
MSG. Nestlé's input materials sourcing and production costs account for 60%
of total company spending.
It is unclear whether the issue was caused by lower-quality raw materials, to be
fair to Nestlé, all part of the quality audits disclosed no flaws.
'Good Food, Good Life' is the brand promise. was aimed at Dabbawallas in the
Mumbai market.
It is critical for the future to build on such platforms with a mix of physical and
virtual media. Personalization and prompt responses to queries by any
stakeholder via relevant websites are essential. This contributes to the
development of confidence and trust in a corporate entity that is frequently
regarded as the "opponent" by certain ideological positions and target
customers.
(2021)

NESTLE PERFORMANCE IN BANGLADESH:

Nestlé first established itself in Bangladesh in 1994, with its sole factory now
located in Sreepur, Gazipur. Since 1994, Nestlé has invested Tk. 110 billion in
core. In Bangladesh, well-known brands such as Nescafé, Maggi tortillas and
soup, Maggi Shad-e-Magic, and others are popular.
Cereals such as Corn Flakes and Koko Crunch, as well as Munch Rolls and other
snacks, are available.
Nestlé is a multinational corporation. Bangladesh's goal is to position Nestlé as
the country's most trusted and respected Food, Beverage, Nutrition, Health,
and Wellness Company, ensuring long-term growth and profits. The company
is dead set on ensuring that the vision is carried out in all aspects.
THE PRIMARY OBJECTIVES OF NESTLE BANGLADESH:
To create safe and wholesome prepared foods using the most efficient and
appropriate packaging materials available, while also meeting consumer needs
and specifications.

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b) Nestlé Bangladesh seeks packaging materials that:

• result in the smallest possible weight and volume of packs.

• Consider new packaging materials and processes that have a lower
environmental impact.
• Prevent the use of substances that can have a negative environmental
impact during packaged food storage and processing.
• reduce packaging waste at every stage, including bundle manufacturing,
utilisation, and waste.
• boost the proper use of recycled materials anywhere if possible.
• and enhance the recyclables and adaptability of its packages with
sustainable drainage options.

(Mohajan, 2021)

KEY STRATEGIES USED BY NESTLE IN BANGLADESH:

• Strong brands / consumer connections
• Product development
• Creativity and redecoration
• Product selection
External factors:
• Social: Nestlé strives to integrate as much as possible into the societal
values of the various countries. Nestlé launched products in Bangladesh
that incorporated cultural context. This was done to accommodate to
the tastes of Bangladeshi consumers.
• Ethical: While Nestlé faces ethical quandaries in the commercialization
of its products, it does not regard its high price as an ethical catastrophe.
This is because they are unwilling to negotiate their quality of product to
make it easily accessible to all.
Internal factors:
Nestlé's promotional structure:
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 It is focused on people, products, and brands rather than systems. Nestlé
values long-term financial success and, to a lesser extent, profitability. At the
same time, Nestlé is conscious of the need to improve in terms of quality,
pricing, and distribution. Nestlé, on the other hand, remains conscious of
satisfying its customers' wants, needs, and demands. It is also conscious of the
need to generate a healthy profit each year.
(Nestlé performance in Europe surprises analysts, 2021)

CONCLUSION:
The introduction of food and beverages caused a major shift in consumer food
habits. Nestle has done a good job of increasing customer loyalty while
remaining a market opponent in the industry. Nestle has been one of the
biggest food-processing corporations in the world. Their expertise and efficacy
are the primary determinants of their products and quality. Nestle provides
quality, which leads to growth of the company. It has placed itself as a
premium based on certain grouped preferences, employing a multi-stage
categorization to meet the needs of social consumers. Providing brand-new
new products and services would indeed aid in the closure of gaps in its
existing products. extending promise fulfilment and fidelity
Consumers' issues with Nestlé Company Products are primarily nutritional in
nature. Many people, according to our research on the internet, are
dissatisfied with their diet.
The first concern is nutrition for the old people, which is heavily influenced by
a person's food and nutrition consumption. Undernutrition and a nutria diet
that is unbalanced can increase the probability of disease.
Nestlé should make more products for elderly adults, such as protein milk and
cornflakes with necessary nutrition that all older people can use daily, and they
should also make some natural products for those who are very fit and active
so that it can be a healthy snack.

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REFERENCES:
UKEssays.com. 2021. A Case Study of The Food Company Nestle Marketing Essay. [online]
Available at: <https://www.ukessays.com/essays/marketing/a-case-study-of-the-food-company-
nestle-marketing-essay.php> [Accessed 8 May 2021].

Frue, K., 2021. PEST Analysis of Nestle: How politics and social culture affect its growth. [online]
PESTLE Analysis. Available at: <https://pestleanalysis.com/pest-analysis-of-nestle/> [Accessed 8
May 2021].

foodnavigator.com. 2021. Nestlé performance in Europe surprises analysts. [online] Available at:
<https://www.foodnavigator.com/Article/2011/10/20/Nestle-performance-in-Europe-surprises-
analysts> [Accessed 9 May 2021].

Mohajan, D., 2021. Present and Future of Nestlé Bangladesh Limited. [online] Academia.edu.
Available at:
<https://www.academia.edu/15111654/Present_and_Future_of_Nestl%C3%A9_Bangladesh_Limit
ed> [Accessed 9 May 2021].

Core.ac.uk. 2021. [online] Available at: <https://core.ac.uk/download/pdf/61805779.pdf>

[Accessed 9 May 2021].

Google Books. 2021. Multinational Corporations and the Impact of Public Advocacy on Corporate
Strategy. [online] Available at:
<https://books.google.co.in/books?hl=en&lr=&id=H_7xCAAAQBAJ&oi=fnd&pg=PA3&dq=nestle+or
ganizational+structure&ots=oZQhl-wsgo&sig=yoA2XbKy02_pNUuns> [Accessed 9 May 2021].

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