MARKETING MANAGEMENT PROJECT
SUBMITTED:
DATE JUNE 19/2023
SUBMITTED TO:
Mr. FAHAD ASGHAR
SUBMITTED BY:
CH DANISH MAQSOOD (BUSB51BF20R042)
CH AHSAN ALI (BUSB51BF20R036)
AHMAD SULTAN (BUSB51BF20R045)
SAMI UR REHMAN (BBAF19BM008)
MAEKETING ANALYSIS PROJECT (NESTLE COMPANY)
Nestlé Pakistan
INTRODUCTION
Nestle company is founded by the Henri Nestle in 1866 on a particular product
which was produced to protect the life of the child of neighbor. From that time
straight on the essential plan & strategy of the Nestle Company has been to produce
the importance and value for society, by organizing that produces the value for
investors. Consequently, the strategy assists the Nestle Company to develop a minor
business to a Worlds greatest and leading Food, Health and wellness Company.
Though, creating the communal values for the people as well as the shareholders
means going successful beyond the benefit of the consumer. Making Shared Value
also concerns about carrying value to the growers who are sellers of Nestle, to
employees and to other portions of civilization. It investigates the numerous facts
where the Company touch with the society and creating very continuing reserves
that mutually provide advantage the community and value to investors of the
Company, in case of the revenues Nestle is the leading food company of the World.
There are various products of the Nestle which includes the cereals, mineral waters,
coffee, ice creams and many other food items. The vision of the Nestle is to bump
into the various everyday requirements of the consumers by selling high quality food
which is good for health and nutrition. The aim of the Nestle Company is to serve
the high quality food that are safe for the consumers. Nestle also helps offer
assortments for all distinct taste and routine favorites. As the day the Nestle came
into being their mission is to provide the health, nutrition and wellbeing of the
people from all over the world. The 140 years history of the company just focuses
on the nutrition of the company. The company is fully dedicated towards their
consumers.
External Analysis of Nestle
The external analysis of Nestle comprises of the six segments which are as follows:
Demographic Segments:
The products of the Nestle are for everyone in the world. Every human drinks water,
eat food. These are the necessary requirements of everyone. Everybody can afford
these products because these are not as luxurious products for a particular people.
These are produced for the age of every person, So, According to the demographic
segment of the Nestle, their products are for every region in the world.
Economic Segment:
Since, Nestle is the leading food producing company in the universe, it also donates
its information and proficiency with the small corporations. Nestle also assists the
industrialists to contend in the new free trade atmosphere which will eventually
value the commerce and the economy by creating the development and growth of
the market.
Political Segment:
The political factors are very significant particularly in the Food industry. The
policies and budgets of the company affected by the political Segments. Nestle
offers the food guarantee to its consumers in order of manufacturing, importing and
distributing with the proper hygiene and salubrious systems.
Social segment
Social Analysis of Nestlé:
1. Nutrition and Health Company develops and markets a wide
range of products that cater to different dietary needs and
preferences. Nestlé focuses on promoting balanced diets, providing
nutritional information: Nestlé plays a significant role in the
nutrition and health sector. The on its products, and investing in
research to improve the nutritional profile of its offerings. However,
the company has faced criticism for some of its products being high
in sugar, salt, or unhealthy ingredients, leading to concerns about
the impact on public health.
2. Consumer Safety and Quality: Nestlé prioritizes consumer safety
and product quality. The company adheres to strict quality standards,
implements rigorous quality control measures, and conducts regular
testing to ensure the safety and integrity of its products. Nestlé also
maintains recall systems and cooperates with regulatory authorities to
address any potential issues. Consumer trust in Nestlé's brands stems
from its commitment to maintaining high standards of safety and
quality.
3. Responsible Marketing and Advertising: Nestlé follows
responsible marketing and advertising practices, particularly when
targeting children. The company has pledged to comply with relevant
guidelines, such as the World Health Organization's recommendations
on marketing to children. Nestlé aims to promote healthy eating habits
and transparently communicate the nutritional value of its products to
consumers.
4. Community Engagement: Nestlé actively engages with local
communities where it operates. The company supports various
community initiatives, such as education programs, nutrition
awareness campaigns, and infrastructure development. Nestlé also
collaborates with local farmers and suppliers to enhance their
capabilities and promote sustainable agricultural practices, thereby
contributing to the socio-economic development of the communities.
5. Diversity and Inclusion: Nestlé recognizes the importance of
diversity and inclusion within its workforce. The company strives to
foster an inclusive culture and promote equal opportunities for its
employees, irrespective of gender, ethnicity, or background. Nestlé
also focuses on gender balance and has initiatives in place to increase
female representation in leadership positions.
6. Ethical Sourcing and Labor Practices: Nestlé has established
guidelines and standards for its suppliers to ensure ethical sourcing
practices. The company expects its suppliers to adhere to principles
such as fair labor conditions, human rights, and responsible sourcing of
raw materials. Nestlé's Supplier Code sets expectations for supplier
behavior and promotes transparency and accountability in the supply
chain.
7. Corporate Social Responsibility: Nestlé actively engages in
corporate social responsibility (CSR) initiatives. The company works
on several fronts, including environmental sustainability, community
development, and philanthropy. Nestlé's initiatives often focus on
addressing social and environmental challenges, promoting nutrition
education, and supporting local communities through partnerships with
NGOs and other organizations.
Nestlé's social analysis demonstrates its commitment to nutrition and
health, consumer safety, responsible marketing, community engagement,
diversity and inclusion, ethical sourcing, and corporate social
responsibility. The company strives to positively impact society through
its products, initiatives, and responsible business practices.
Customer Analysis and STP Analysis of Nestlé:
Customer Analysis:
Nestlé serves a wide range of customers globally, spanning different age groups,
demographics, and geographic locations. Its customer base includes individuals,
families, and businesses across various income levels. Nestlé's products cater to
diverse consumer needs and preferences, offering options for different dietary
requirements, tastes, and lifestyles.
STP Analysis:
STP stands for Segmentation, Targeting, and Positioning. Let's break
down the STP analysis of Nestlé:
1. Segmentation:
Nestlé adopts multiple segmentation strategies based on various factors,
including:
a. Demographic Segmentation: Nestlé targets customers of different age
groups, genders, income levels, and family sizes. For example, it offers infant
formula for babies, coffee products for adults, and pet care products for animal
owners.
b. Geographic Segmentation: Nestlé operates globally and tailors its products to
meet the specific preferences and tastes of different regions and countries.
c. Psychographic Segmentation: Nestlé caters to customers with different
lifestyle choices and health concerns. It offers products ranging from indulgent
treats to health-focused options, appealing to consumers seeking convenience,
wellness, or specific dietary needs.
d. Behavioral Segmentation: Nestlé considers consumer behavior, such as
purchasing habits, product usage, and brand loyalty. It targets both occasional
buyers and loyal customers who consistently choose Nestlé's brands.
2. Targeting:
Nestlé employs a differentiated targeting strategy, aiming to satisfy the unique
needs of various customer segments. The company tailors its product offerings
and marketing efforts to specific target groups. For example:
a. Nestlé targets parents and caregivers with its baby food and infant formula
products, providing nutritionally balanced options for infants and young children.
b. Nestlé targets coffee enthusiasts with its Nescafé and Nespresso brands,
offering a range of coffee products, machines, and accessories.
c. Nestlé targets health-conscious individuals with its range of nutritious and
functional food and beverage options, promoting well-being and healthy
lifestyles.
3. Positioning:
Nestlé positions itself as a trusted and reliable provider of high-quality food and
beverage products that enhance people's lives. The company emphasizes its
commitment to nutrition, taste, and convenience. Nestlé brands are positioned to
evoke feelings of familiarity, reliability, and enjoyment. The company also
highlights its sustainability efforts, responsible sourcing, and corporate social
responsibility, positioning itself as a socially and environmentally conscious
organization.
Overall, Nestlé's STP analysis demonstrates its ability to segment its diverse
customer base, target specific consumer groups with tailored products, and
position itself as a trusted and responsible provider of food and beverage choices.
SWOT Analysis of Nestlé:
SWOT Analysis of Nestlé:
Strengths:
1. Strong Brand Portfolio: Nestlé has a diverse and extensive brand portfolio,
including globally recognized brands such as Nescafé, KitKat, Maggi, Nespresso,
Purina, and many more. These brands have high brand equity and consumer trust.
2. Global Presence and Distribution Network: Nestlé operates in over 180
countries, giving it a strong global presence. The company has established an
extensive distribution network, allowing it to reach a wide range of consumers
across different markets.
3. Research and Development Capabilities: Nestlé invests significantly in research
and development to innovate and develop new products. The company's
dedicated team of scientists and nutritionists work on improving the nutritional
profile, taste, and functionality of its offerings.
4. Sustainability Initiatives: Nestlé is committed to sustainability and has
implemented various initiatives to reduce its environmental impact. The company
focuses on responsible sourcing, water stewardship, renewable energy adoption,
and waste reduction. Nestlé's sustainability efforts contribute to its positive brand
image.
Weaknesses:
1. Product Recalls and Quality Concerns: Nestlé has faced occasional product
recalls and quality concerns in the past, which can affect consumer confidence
and trust. Maintaining stringent quality control measures is crucial to address
these weaknesses.
2. Dependence on a Few Markets: While Nestlé operates globally, it still has a
significant dependence on certain markets. This can expose the company to
economic and geopolitical risks if there are challenges or disruptions in those
specific regions.
Opportunities:
1. Growing Demand for Health and Wellness Products: The increasing consumer
focus on health and wellness presents opportunities for Nestlé to further develop
and promote its range of nutritious and functional food and beverage products.
2. Expansion into Emerging Markets: Nestlé can leverage its global presence to
further expand into emerging markets where there is a growing middle class and
increased consumer spending power. These markets offer significant growth
potential.
Threats:
1. Intense Competition: Nestlé operates in a highly competitive industry, facing
competition from global players as well as regional and local brands. Competitors
with strong brand recognition, product innovation, and marketing capabilities
pose threats to Nestlé's market share.
2. Changing Consumer Preferences and Health Concerns: Shifting consumer
preferences, including a growing emphasis on healthier options and sustainability,
pose challenges for Nestlé. Adapting to changing trends and meeting evolving
consumer expectations is vital to remain competitive.
3. Regulatory and Compliance Challenges: The food and beverage industry is
subject to various regulations and compliance requirements. Nestlé must navigate
complex regulatory environments and comply with food safety, labeling, and
advertising regulations in different markets.
Overall, Nestlé's strengths lie in its strong brand portfolio, global presence,
research and development capabilities, and sustainability initiatives. Addressing
weaknesses, capitalizing on opportunities, and mitigating threats will be crucial
for the company's continued success in a dynamic and competitive industry.
Competitive Analysis of Nestlé:
Nestlé operates in a highly competitive landscape within the food and beverage
industry. Here's a competitive analysis highlighting some of Nestlé's key
competitors and their respective strengths:
1. The Coca-Cola Company: Coca-Cola is a major competitor of Nestlé,
particularly in the beverages segment. Coca-Cola has a strong portfolio of
carbonated soft drinks, juices, and other non-alcoholic beverages. The company's
brand recognition, extensive distribution network, and marketing capabilities are
key strengths.
2. PepsiCo Inc.: PepsiCo is another significant competitor for Nestlé, especially
in the snacks and beverages segments. PepsiCo's diverse brand portfolio includes
popular brands such as Pepsi, Lay's, Gatorade, and Tropicana. The company's
strong marketing and advertising campaigns, global presence, and product
innovation contribute to its competitive advantage.
3. Unilever: Unilever competes with Nestlé across various categories, including
ice cream, beverages, and food products. Unilever's strength lies in its extensive
range of globally recognized brands, including Ben & Jerry's, Lipton, Knorr, and
Hellmann's. The company emphasizes sustainability and has made significant
progress in promoting environmentally friendly practices.
4. Mondelez International: Mondelez is a global snack and confectionery
company, and it competes with Nestlé in the confectionery segment. Mondelez
owns well-known brands like Cadbury, Oreo, Toblerone, and Milka. The
company's strong brand recognition, product innovation, and global presence
contribute to its competitive position.
5. Danone: Danone is a major competitor for Nestlé in the dairy, nutrition, and
bottled water segments. Danone offers a range of products, including dairy-based
beverages, yogurt, and infant nutrition. The company's focus on health and well-
being, sustainable practices, and investments in research and development are
notable strengths.
6. Mars, Incorporated: Mars competes with Nestlé primarily in the
confectionery and pet care segments. The company owns popular brands such as
M&M's, Snickers, Pedigree, and Whiskas. Mars' strong brand equity, product
innovation, and global distribution contribute to its competitive advantage.
It's worth noting that this is not an exhaustive list, and there are other regional
and local competitors that may vary by market. Competitive factors in the
industry include brand recognition, product quality and variety, pricing strategies,
distribution networks, marketing capabilities, innovation, sustainability efforts,
and customer loyalty.
Nestlé maintains its competitive position through a combination of factors,
including its extensive brand portfolio, global presence, research and
development capabilities, sustainable practices, and focus on meeting diverse
consumer needs. The company continually innovates and adapts to changing
consumer preferences, aiming to stay ahead in the competitive landscape.
Porter's Five Forces analysis:
Porter's Five Forces analysis examines the competitive dynamics and
attractiveness of an industry. Here's a Porter's Five Forces analysis of Nestlé:
1. Threat of New Entrants:
The food and beverage industry has moderate barriers to entry. However,
Nestlé's strong brand portfolio, global distribution network, and extensive R&D
capabilities act as barriers for new entrants. The company's economies of scale
and established relationships with suppliers and retailers also provide a
competitive advantage. Overall, the threat of new entrants is relatively low,
considering Nestlé's market position and resources.
2. Bargaining Power of Suppliers:
Nestlé's size and global reach provide it with significant bargaining power over
suppliers. The company's extensive supplier network allows for competitive
pricing and ensures a consistent supply of raw materials. Nestlé also works closely
with suppliers to promote responsible sourcing practices. However, in certain
cases where suppliers have unique or scarce resources, they may have increased
bargaining power, which can impact Nestlé's costs and profitability.
3. Bargaining Power of Buyers:
Buyers in the food and beverage industry, such as retailers and consumers, have
moderate to high bargaining power. They have access to a wide range of
alternative products and can easily switch brands based on factors like price,
quality, and consumer preferences. To maintain a competitive edge, Nestlé needs
to continuously meet consumer demands, provide value-added products, and
differentiate its offerings through innovation, quality, and marketing efforts.
4. Threat of Substitutes:
The threat of substitutes is relatively high for Nestlé, as consumers have
numerous options in the food and beverage market. Substitutes can range from
alternative brands within the same product category to different products that
fulfill similar needs. To mitigate this threat, Nestlé focuses on product
differentiation, brand loyalty, and innovation to create unique value propositions
and establish a strong connection with consumers.
5. Competitive Rivalry:
The food and beverage industry is highly competitive, with several global and
local players vying for market share. Nestlé faces competition from major
companies such as The Coca-Cola Company, PepsiCo Inc., and Unilever, as well as
regional and local brands. Competitive factors include product quality, brand
recognition, pricing, marketing strategies, and distribution capabilities. Nestlé's
strong brand portfolio, global presence, and ongoing investments in R&D and
marketing contribute to its competitive advantage. However, competition
remains intense, requiring Nestlé to continually innovate and adapt to changing
consumer preferences and market dynamics.
Overall, while Nestlé enjoys certain advantages in terms of brand recognition,
global presence, and resources, it operates in a highly competitive industry where
the bargaining power of buyers and the threat of substitutes are significant
factors. To maintain its position, Nestlé needs to focus on differentiation,
innovation, and meeting evolving consumer demands.
Strategic Approach of Nestlé:
Nestlé employs a multi-faceted strategic approach that focuses on several key
areas:
1. Portfolio Management: Nestlé manages a diverse portfolio of food and
beverage brands across various categories. The company continuously assesses its
brand portfolio and strategically invests in high-growth segments while divesting
non-core or underperforming businesses. This approach allows Nestlé to optimize
its resources and focus on areas where it can achieve a competitive advantage.
2. Innovation and Research & Development: Nestlé places a strong
emphasis on innovation and research and development (R&D). The company
invests significant resources in developing new products, improving existing ones,
and addressing consumer needs and trends. Nestlé's innovation efforts
encompass product formulation, packaging, and technological advancements to
enhance the taste, nutritional profile, convenience, and sustainability of its
offerings.
3. Consumer-Centric Approach: Nestlé prioritizes a consumer-centric
approach, aiming to understand and meet the evolving needs and preferences of
its customers. The company conducts market research, gathers consumer
insights, and employs data analytics to gain a deeper understanding of consumer
behavior. This enables Nestlé to tailor its products, marketing strategies, and
communication to effectively connect with its target audience.
4. Sustainability and Environmental Stewardship: Nestlé integrates
sustainability into its strategic approach, recognizing the importance of
responsible business practices. The company focuses on sustainable sourcing,
reducing environmental impact, promoting recycling and waste reduction, and
contributing to local communities. Nestlé's commitment to sustainability not only
aligns with societal expectations but also provides a competitive advantage by
enhancing brand reputation and attracting environmentally conscious consumers.
Nestlé derives its competitive advantage from several
key factors:
1. Strong Brand Portfolio: Nestlé's extensive brand portfolio includes globally
recognized brands that enjoy high consumer trust and loyalty. These brands cover
various product categories and offer a wide range of choices to consumers,
providing a competitive edge in capturing market share and maintaining brand
preference.
2. Global Presence and Distribution Network: Nestlé's global presence and
well-established distribution network allow the company to reach consumers in
multiple markets effectively. Its wide distribution capabilities enable efficient
product availability, timely launches, and effective market penetration, providing
a competitive advantage over smaller or localized competitors.
3. Research and Development Capabilities: Nestlé's strong emphasis on
research and development enables continuous innovation and improvement in its
products. The company invests in scientific research, nutrition, and product
development to stay ahead of consumer trends and deliver superior products
with improved nutritional profiles, taste, and functionality.
4. Operational Efficiency and Scale: Nestlé's scale of operations and
operational efficiency contribute to cost advantages, procurement capabilities,
and economies of scale. The company's size enables efficient production, supply
chain management, and procurement of raw materials, resulting in cost savings
and competitive pricing.
5. Customer Insights and Marketing: Nestlé's focus on consumer insights
and marketing strategies helps it understand consumer needs, preferences, and
trends. This allows the company to develop targeted marketing campaigns,
effectively communicate product benefits, and build strong relationships with its
customers, leading to increased brand loyalty and market share.
6. Sustainability and Responsible Practices: Nestlé's commitment to
sustainability, responsible sourcing, and environmental stewardship enhances its
competitive advantage. With increasing consumer demand for ethical and
sustainable practices, Nestlé's focus on these areas not only strengthens its
reputation but also attracts conscious consumers who value sustainability.
By leveraging its strong brand portfolio, global reach, research and development
capabilities, operational efficiency, consumer insights, and sustainability practices,
Nestlé maintains a competitive advantage in the food and beverage industry.
Communication Innovation Analysis of Nestlé:
Nestlé has embraced various communication innovations to enhance its brand
presence, engage consumers, and effectively convey its messages. Here are some
notable communication innovations employed by Nestlé:
1. Digital and Social Media Marketing: Nestlé leverages digital platforms and
social media to connect with consumers on a more personal level. The company
maintains active social media accounts across multiple platforms, such as
Facebook, Instagram, Twitter, and YouTube. Nestlé utilizes these channels to
share product information, recipes, promotions, and engaging content that
resonates with its target audience. Social media also allows Nestlé to receive real-
time feedback, address customer queries, and build a community around its
brands.
2. Influencer Partnerships: Nestlé collaborates with influencers, bloggers, and
content creators who align with its brand values and target audience. These
partnerships involve sponsored content, product collaborations, and influencer-
driven campaigns to generate buzz, reach new audiences, and increase brand
credibility. By leveraging the influence and reach of these individuals, Nestlé
expands its brand visibility and connects with consumers in a more authentic and
relatable manner.
3. User-Generated Content: Nestlé encourages consumers to share their
experiences and stories related to its brands through user-generated content
campaigns. This approach fosters brand advocacy and creates a sense of
community among consumers. Nestlé showcases user-generated content on its
social media platforms, websites, and marketing campaigns, giving consumers a
sense of ownership and engagement with the brand.
4. Interactive Digital Experiences: Nestlé utilizes interactive digital experiences to
engage consumers and create memorable brand interactions. This includes
interactive websites, mobile applications, and augmented reality (AR)
experiences. For example, Nestlé has developed apps that provide personalized
nutrition advice, recipe suggestions, and product information. These digital
experiences not only enhance consumer engagement but also provide valuable
data insights for Nestlé.
5. Cause-Related Marketing: Nestlé has implemented cause-related marketing
initiatives to create a positive social impact and strengthen its brand reputation.
The company supports various social and environmental causes, such as
responsible sourcing, sustainable agriculture, and water conservation. Nestlé
communicates these initiatives through purpose-driven marketing campaigns,
highlighting its commitment to sustainability and corporate social responsibility.
6. Transparency and Consumer Education: Nestlé recognizes the importance of
transparency and consumer education. The company provides detailed product
information, nutritional labeling, and ingredient lists to help consumers make
informed choices. Nestlé's communication efforts aim to educate consumers
about the nutritional benefits of its products, responsible consumption, and
healthy lifestyles. This fosters trust and positions Nestlé as a reliable source of
information.
Overall, Nestlé's communication innovations reflect its commitment to engaging
with consumers through various digital platforms, leveraging social media, user-
generated content, interactive experiences, cause-related marketing, and
transparency. By embracing these innovative approaches, Nestlé effectively
communicates its brand messages, strengthens consumer relationships, and stays
relevant in an evolving digital landscape.
Conclusion of nestle company
In conclusion, Nestlé is a globally recognized and leading food and beverage
company with a diverse brand portfolio. The company has established itself as a
key player in various categories, ranging from beverages and confectionery to
dairy, nutrition, and pet care. Nestlé's strategic approach, driven by portfolio
management, innovation, sustainability, and consumer-centricity, has contributed
to its continued success in a highly competitive industry.
Nestlé's strengths lie in its strong brand portfolio, global presence, extensive
distribution network, research and development capabilities, and commitment to
sustainability. The company's focus on meeting consumer needs, investing in
innovation, and maintaining operational efficiency has enabled it to adapt to
changing market dynamics and consumer preferences.
By leveraging digital and social media marketing, influencer partnerships, user-
generated content, interactive digital experiences, cause-related marketing, and
transparent communication, Nestlé has effectively engaged with consumers, built
brand loyalty, and strengthened its brand reputation. These communication
innovations have allowed Nestlé to connect with consumers on a deeper level,
create memorable brand experiences, and foster a sense of community.
Moving forward, Nestlé will continue to face challenges, such as intense
competition, changing consumer preferences, and regulatory requirements.
However, the company's strong foundation, focus on sustainability, commitment
to innovation, and ability to adapt to evolving market trends position it well for
future growth and success.
Overall, Nestlé's strategic approach, competitive advantage, and effective
communication innovations have solidified its position as a leader in the food and
beverage industry. With its global reach, diverse product offerings, and
commitment to quality and sustainability, Nestlé is poised to continue delivering
value to consumers while navigating the dynamic landscape of the industry.
References of nestle company
1. Nestlé's official website: www.nestle.com
2. Annual reports and financial statements published by Nestlé.
3. Business and financial news websites that cover Nestlé, such as Bloomberg
(www.bloomberg.com), Reuters (www.reuters.com), or Forbes
(www.forbes.com).
4. Market research reports and industry publications that analyze Nestlé and
the food and beverage industry.
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