Marketing management

Assignment no: 1

Company name : Nestlé

Executive summary

What are the key aspects of the company’s marketing plan ?

This is a semester project regarding Nestlé .. It starts with an introduction about

Nestlé Company. It gives a briefing about all the brands of the Nestlé Company.
Nestle has been serving worldwide with its excellence in product safety, quality and
value. It provides many products which include dairy products, beverages, water, and
infant dietetic and confectionary. Their aim is to provide customer with best infant
food on suitable prices make the product as convenient as possible

Situation overview

Company
What are the aspects of the markets in company's history,
culture, resources, offerings, and ongoing activities ?
Nestlé Pakistan Ltd is a subsidiary of Nestlé S.A, - a company of Swiss origin
headquartered in Vevey, Switzerland. It is a food processing company,
registered on the Karachi and Lahore stock exchanges and operating in
Pakistan since 1988 under a joint venture with Milk Pak ltd and took over
management in 1992. For ten years in a row, the company has won a place
among the top 25 companies of the Karachi Stock Exchange.
Headquartered in Lahore, the Company operates four production facilities.
Two of its factories in Sheikhupura and Kabirwala are multi product factories.
One factory in Islamabad and one in Karachi produce bottled water. The
factory in Kabirwala is the largest milk intake plant in the Nestlé world.
Through its effective marketing and a vast sales and distribution network
throughout the country, it ensures that its products are made available to
consumers whenever, wherever and however.
Nestlé Pakistan operates in many ways but people, products and brands are
the main flag bearers of the Company’s image.
Nestlé Pakistan now operates the biggest milk collection system in Pakistan,
Currently; Nestlé Pakistan collects milk from an estimated 190,000 farmers
spread over 146,000 sq Km’s in the province of Punjab and Sindh.
Nestlé believes in creating shared value and is committed to the communities
it works and lives with. In Pakistan, the company is working closely with the
communities in areas related to Nutrition, Water and Rural Development and
continues to enhance the quality of life of people throughout its value chain.
Till date (in 22 years) Nestlé Pakistan has invested over 50 Billion PKR and had
an annual turnover of Rs 51 Billion PKR in 2010.
Market
What are the key aspects of the markets in which the
company completes

"The Nestlé global vision is to be the leading health, wellness, and

Nutrition Company in the world. Nestlé Pakistan subscribes fully to
this vision".
In particular, NESTLE envision to:
 Lead a dynamic motivated and professional workforce - proud of its heritage
and bullish about the future.
 Meet the nutritional needs of consumers of all age groups - from infancy to
old age, from nutrition to pleasure, through an innovative portfolio of branded
food and beverage products of the highest quality.
 Deliver shareholder value through profitable long-term growth, while
continuing to play a significant and responsible role in the social, economic
and environmental sectors of the country.
 We have profitable and diversified high quality food and beverage product
portfolio, delivering 60:40+ advantage to consumers, available across all sales
channels.
 Our brands are the preferred choice in their categories. Consumer insight
drives all aspects of our marketing and communication efforts.
 Our communications to the consumer are relevant, cutting-edge, and adhere
to the highest standards of responsible communication.
 Our company is seen as the No. 1 career destination for talented, motivated
and ambitious professionals.
 Our result-oriented organizational structure ensures effective communication
and empowered self-management.
  Our milk collection and agri services will continue to play the primary role in
development of the dairy sector in rural Pakistan.
 Our proactive innovation and renovation culture is the key to our success in
the marketplace. Fully integrated systems (Nestlé Pakistan, suppliers,
customers) ensure efficient business processes. Non-strategic activities and
products are outsourced or discontinued.

Goals

Focus
What is the key performance metric the company aims to
achieve with the offering?
• To achieve compatibility with international voluntary standards on environmental
management systems. 
• To build mutual trust with consumers, governmental authorities and business
partners.
• To ensure continuous improvement of nestles environmental performance.
. Conservation of natural resources and minimization of waste.
• To establish the benchmark for good business practice.
⚫ Employing new technologies and processing.
⚫ Measuring the cost and benefits to business of it's activities.
• Monitor progress.
⚫ Audit results.
Benchmarks

What are the criteria (temporal and quantitative) for reaching

the goals?
The main goals as described by Nestle are as follows: “Good Food, Good Life, the key to
health, nutrition and wellness. With over 140 years of experience and expertise, we take
great pride in bringing you the best products because happy, healthy consumers are
important to us. We develop our products keeping your preferences, tastes, and needs in
mind. We understand that you, along with millions of other consumers, know that you can
trust our products to deliver purity, quality, convenience, and nutrition. Our products are
carefully aligned to Pakistani tastes and needs. We’re always trying hard to develop new
products and improve existing ones, and serve our consumers better. That’s why through
constant renovation and innovation we’re always testing or launching value added products
and making them available in sizes that will suit every requirement. So explore the world of
health with Nestlé products, and find out what suits your family’s needs”

Strategy
Target market
Who are the target customers, competitors, and collaborators? What
are the company's resources and context?
Customer:
Nestle can target international, rural and urban consumers of age 13 or greater including males
and females, both. Students, professionals, and employees can all be targeted as they all consume
Nestle's products, especially its Pure Life mineral water.
Competitors :
Among the stiffest competitors facing Nestle are Procter & Gamble, Kraft Heinz,
Coca-Cola, Unilever, Kellogg's, Danone and PepsiCo.
Collaborator:
Nestle is rolling out Workplace by Facebook as its new enterprise team
collaboration platform, as it looks to more efficiently connect its global
employees.
Resource and context :
It has been highlighted by the researchers that humans are the most important
resources of the organization and attraction, retention and development of employees
contributes to the long term growth of business organization (Wright, Gardner and
Moynihan, 2003). The resource based view presents that human resources come under
the category of intangible resources that are inimitable and they cannot move across
industry (Zacharatos, Barling and Iverson, 2005). The Nestle has maintained that their
aim is to establish and maintain long term association with the employees based on its
standard of professional development. It has been indicated by the human resource
management report of the Nestle that their workforce contributes to sustainable
development of high quality culture which is based on continuous improvement
approach of the company. The continuous training and learning environment of nestle
has fostered them to maintain workforce that is highly competent and possess skills’
set which cannot be imitated by relevant others. Therefore, the human resources of
Nestle are contributing in current competitive position of the company and they are
likely to offer long run competence to the company as well.
Value proposition
What value does the offering create for target customers,
collaborator and company stakeholders
At Nestlé, we have analysed our value chain and determined that the areas of greatest
potential for joint value optimisation with society are Nutrition, Water and Rural
Development. These activities are core to our business and vital to the welfare of the
people in the countries where we operate.

Tactics

Market offerings
What are the product, service, brand, price, incentives, communication, and
distribution aspects of the offering?
Products :

There are 4 different strategic business units within Nestlé which are used to manage
various food products.

Beverages One of most known coffee brands Nescafe, belongs to the house of Nestlé
and the is one of the cash cows for Nestlé. However, it is not the biggest cash cow.
Nestlé has a worldwide distribution and has many different variants. Looking at India,
Nestlé has also launched Nestea.

Milk and Milk products - Nestlé everyday, Nestlé slim and Nestlé Milk maid are some
of the milk and milk based products from the house of Nestlé.

Prepared dishes and cooking aides Nestlé has a third category of products which
comes into prepared dishes and cooking aides. The major cash cow of Nestlé lies in
this segment, which is Maggi Noodles. Probably one of the most widely sold ready to
cook noodle brands is Maggi. Maggi has a fantastic taste and quality. Thus, it was not
a surprise, that Nestlé expanded the Maggi brand to create an umbrella of different
products like Maggi pasta, Maggi sauce, Maggi cubes etc. The maggi range
contributes vastly to the bottom

line of Nestlé. Chocolates Nestlé has some popular chocolate products, most popular
being Nestlé Kitkat, Munch, Milky bar, Eclairs and Polo. The newly introduced
Alpino is targeting the gifting segment in response to various chocolates like Dairy
milk and Bournville by Cadbury.
Services & Brand name:

The appreciable factor in Nestlé is that quality maintenance of products is upto mark
and there are hardly any complaints about Nestlés products in the market. This is a
major achievement for a company which relies majorly on food products.
Price :
Nescafe as well as Maggi, Nestlé offers a lot of sizes and package options. In
supermarkets, you

can even find a 16 packet maggi whereas in small retail shops, you can find Rs 20
maggi.

Thus, with the variety available, customer can make his own choice based on his
consumption. In other products like Kitkat and Munch, due to tough competition from
other companies,
Communication:
Engage on social media

> Social media platforms have large numbers of participants.

> Facebook page already has 15 Million likes and 2.7 Million active talkers that the
company can engage.

>Through integration of the web-based platforms, the IMC plan can incorporate the
'share value' content its consumer communication
Distribution:
Competitive edge over its existing rivals.

• Nestlé has its own distribution networks equipped with all necessary transportation
facilities.

• They transport their products at major regional sales offices, which are situated at
different cities of pakistan

•These sales offices (distribution centres) have their own vans with sales people who
sell and transport goods to the small retailers.

Implementation

Development
How is the Comany offering being developed?
 Apply our expertise in nutrition, health and wellness - developed over more
than 150 years - to help people, families and pets live happier, healthier lives.
 Bring distinctive, premium innovations to market fueled by creative
exploration and consumer insights, pioneering nutrition science and culinary
excellence.
 Meet the needs of the modern consumer with healthy, delicious, convenient
products for conscious, time-constrained lifestyles.
 Offer more plant-based food and beverage options to be consumers' first choice
as they diversify their diets.
 Produce affordable, safe and high-quality nutrition for everyone, regardless of
their income level, taking advantage of our long-standing presence around the
world.
 Strive to package and deliver our products in ways that are safe and protect the
environment.
 Commit to ambitious sustainability goals to advance the health of the planet,
drive societal progress and support sustainable, healthy food systems.
Deployment
What process will be used to bring the offering to market?
Nestlé Business Services is a multicultural and diverse team of professionals at the
heart of Nestlé Group. We are passionate about driving continuous improvement of
our processes with colleagues across the world. We care about delivering high quality
services to support Nestlé’s business agility and digital innovation success.
Nestlé Business Services Lisbon (NBS Lisbon) is one of the seven Shared Services
Centers in Nestlé. We provide Order to Cash and Integrated Marketing Services
enabling Nestlé to engage with millions of consumers worldwide.
You will gain expertise from a shared center service and make part of a multicultural
environment, with more than 30 nationalities and 11 functional languages.
Our vision is to be the partner of choice for services that leverage our insights and
scale to support business agility and digital innovation success.
To bring our vision to life we need to be Reliable, Customer-first, Innovative,
Digitally Agile and Knowledgeable. These are the behaviors embedded in our daily
life. Welcome to NBS Lisbon!

Control

Performance
 How will the company evaluate the progress towards its goals ?
Being a remarkable company, nestle use some effective performance appraisal method
that alien the employee to achieve strategic goal. Nestle HR management follow
 ⚫ self-rating appraisal by subordinates
⚫rating committees (nestle academy)
⚫ mostly use 360 degree feedback
Environment
How will the company monitor the environment to identify
the new opportunities and threats
Nestle respects the environment and is committed to
environmentally sound business practices throughout the
world, thus taking into account the need to preserve natural
resources and save energy.

Exhibits

What are the details and evidence supporting the Comany action?
Nestle's marketing strategy, with its five key pillars, focuses on building and
showcasing expertise in nutrition, health & wellness to help people live happier
and healthier lives. The idea is to bring innovative and affordable products to meet
the needs of modern consumers wherever they are in the world.