Nescafe Company

1. Appeal to Every Consumer with Multiple Price Strategies

With an aim to be affordable for the masses, the Nestle marketing strategy incorporates multiple pricing
tactics.

If you go through any of Nestle’s products, say KitKat or Maggie, you will realize that they offer several
packaging options. Thus, targeting different income groups, Nestle appeals to all. Its mini packs are
loved by people living alone and those with a low income. Nestle’s statistics reveal that a chunk of its
revenues comes from its beverages—particularly premium Nescafe.

Key Takeaway: Opt for a multiple-price strategy to capture a wider audience and be available for all.
With set market prices, you generate high sales with low earning margins. However, with premium
products, you get high returns, but the low sales risk stays attached. Strike a balance between value-
based and competitive pricing strategies to stay afloat.

2. Having a Multifarious Portfolio Lowers Risk

Thriving the tough competition is a challenge, especially in the FMCG industry. Nestle has been wisely
using product diversification to survive with successful results.

For instance, on the detection of a harmful ingredient, Maggie was banned in India. Nestle chose to go
for a diversification spree; they revamped Maggie and added several more products to its portfolio. The
company smartly introduces horizontal product diversification whenever it hits a wall.

From coffee to milkshakes to other beverages, breakfast cereals, seasonings, infant foods, soups,
chocolates, refrigerated foods, and pet foods, Nestle offers a wide range of products.

Key Takeaway: With a diverse portfolio, you can lower risks and enhance revenues.

Key Takeaways: Brands belonging to the FMCG industry must opt for product-driven advertising to
increase the visibility of their diverse product line.

3. Product Mix Strategy Attracts Cost-Conscious Prospects

Nestle benefits from its large product line by employing a product mix strategy. It often releases buy-
one-get-one price promotions, special offers, discounts, deals, and giveaways.

Bundle deals are perfect for introducing a product or marketing unpopular items. The Nestle marketing
strategy adopts bundle deals from time to time, often during festive seasons.
Key Takeaway: A product mix strategy allows you to increase the visibility of your low-growth products
and make the premium ones appear affordable. It also helps you sell low-demand stock.

4. Set Consistent Goals

With a clear vision, Nestle has been able to create a special space for itself for over 150+ years. The
company doesn’t deviate from its original mission– Good Food, Food Life. Back in the 19 th century, when
Henri Nestlé studied the rise in infant deaths, he introduced nutrition-boosting baby formula.

When women entered the workplace, Nestle launched instant meals. Even today, the brand targets
everyday kitchen challenges and strives to improve the quality of life.

Key Takeaways: A strong commitment to goals gives you a competitive advantage in the market. Being
consistent in your message while solving the grievances of the people can help you gain brand loyalty.

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HomeResourcesDigital Marketing10 Key Takeaways from the Nestle Marketing Strategy

10 Key Takeaways from the Nestle Marketing Strategy

By Simplilearn

Last updated on Sep 26, 20229923

10 Key Takeaways From the Nestle Marketing Strategy

Table of Contents

Learnings From Nestle Marketing Strategies Conclusion

The mother bird feeds its two young nestlings, and below comes the ‘Good Food, Good Life’ slogan.
With a US $303 billion value, the leading health, nutrition, and wellness company– Nestle, stands out in
the market with strong customer loyalty. It is the world’s 22nd most valuable company by market cap.
The well-crafted and consistently implemented Nestle marketing strategy has helped the brand cater to
the needs of its consumers and their families worldwide, helping them live healthier lifestyles. Learn the
Nestle marketing strategy and carve a distinguished presence in the market.

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Learnings From Nestle Marketing Strategies

Discover 10 important marketing tactics by exploring the Nestle marketing strategy.

 1. Appeal to Every Consumer with Multiple Price Strategies

With an aim to be affordable for the masses, the Nestle marketing strategy incorporates multiple pricing
tactics.

Nestle_Marketing_Strategy_1

Nestle KitKat Sizes with Different Prices

If you go through any of Nestle’s products, say KitKat or Maggie, you will realize that they offer several
packaging options. Thus, targeting different income groups, Nestle appeals to all. Its mini packs are
loved by people living alone and those with a low income. Nestle’s statistics reveal that a chunk of its
revenues comes from its beverages—particularly premium Nescafe.

Key Takeaway: Opt for a multiple-price strategy to capture a wider audience and be available for all.
With set market prices, you generate high sales with low earning margins. However, with premium
products, you get high returns, but the low sales risk stays attached. Strike a balance between value-
based and competitive pricing strategies to stay afloat.

2. Having a Multifarious Portfolio Lowers Risk

Thriving the tough competition is a challenge, especially in the FMCG industry. Nestle has been wisely
using product diversification to survive with successful results.

Nestle_Marketing_Strategy_2

Nestle Products

For instance, on the detection of a harmful ingredient, Maggie was banned in India. Nestle chose to go
for a diversification spree; they revamped Maggie and added several more products to its portfolio. The
company smartly introduces horizontal product diversification whenever it hits a wall.

Nestle_Marketing_Strategy_3
Maggi Products

From coffee to milkshakes to other beverages, breakfast cereals, seasonings, infant foods, soups,
chocolates, refrigerated foods, and pet foods, Nestle offers a wide range of products.

Key Takeaway: With a diverse portfolio, you can lower risks and enhance revenues.

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3. Product Mix Strategy Attracts Cost-Conscious Prospects

Nestle benefits from its large product line by employing a product mix strategy. It often releases buy-
one-get-one price promotions, special offers, discounts, deals, and giveaways.

Bundle deals are perfect for introducing a product or marketing unpopular items. The Nestle marketing
strategy adopts bundle deals from time to time, often during festive seasons.

Key Takeaway: A product mix strategy allows you to increase the visibility of your low-growth products
and make the premium ones appear affordable. It also helps you sell low-demand stock.

4. Set Consistent Goals

With a clear vision, Nestle has been able to create a special space for itself for over 150+ years. The
company doesn’t deviate from its original mission– Good Food, Food Life. Back in the 19 th century, when
Henri Nestlé studied the rise in infant deaths, he introduced nutrition-boosting baby formula.

When women entered the workplace, Nestle launched instant meals. Even today, the brand targets
everyday kitchen challenges and strives to improve the quality of life.

Key Takeaways: A strong commitment to goals gives you a competitive advantage in the market. Being
consistent in your message while solving the grievances of the people can help you gain brand loyalty.

5. Try Product-Driven Advertising When You Have a Large Product Line

Although many brands prefer a customer-centric strategy, the Nestle marketing strategy is largely
product-based as it has an extensive product line.

For instance, Nestle’s KitKat advertisements are not limited to any age group. The brand presents the
product as a light snack and rarely uses demographics to personalize the advertisements.

Key Takeaways: Brands belonging to the FMCG industry must opt for product-driven advertising to
increase the visibility of their diverse product line.

6. Localize Your Products

Nestle efficiently adapts its products to the local market. For instance, in Japan, the company markets
coffee-flavored candies. Since Japan is traditionally a tea-drinking nation, Nestle introduced these
candies so that kids could develop a taste for coffee. Later it introduced Nescafe and KitKat, and they
were widely accepted. Today, Japan has 300+ KitKat flavors.

Nestle also localizes its products for Indians by introducing Maggi Atta Noodles, Maggi noodles without
garlic and onion, and the Maggi Special Masala.

Key Takeaways: Localization is a crucial part of business strategy that ensures the satisfaction of a wider
customer base.

7.Maintain Brand Equity With Consistent Brand Image

The more recognizable the name of a brand, the higher your brand value. Nestle has exceptionally
strong brand equity as it focuses on its product quality and consistent brand image in its packaging.

The color red has been associated with KitKat for ages. Although the company once tried to change the
color to blue in the 1990s, it didn’t work. They changed it to the classic red.

Key Takeaways: Brand equity helps you earn customer loyalty and creates your unique identity, giving
you a competitive advantage

8. Co-Branding Comes With Profit

Haven’t you come across Android KitKat and Nespresso Capsules? The Nestle marketing strategy also
incorporates co-branding as and when needed.
Nestle collaborated with Google and launched an operating system named Android KitKat. The brand
was facing a pet product scandal, and this move overshadowed the crisis.

Recently, Nestle joined hands with Starbucks and entered the new product development phase.
Together they launched Starbucks Nespresso Capsules.

Key Takeaways: If your brand reaches a stagnant position, hunt for companies that complement your
products and opt for co-branding promotions. It is an excellent strategy to broaden your reach.

9. Promote Sustainability To Create a Mark

The Nestle marketing strategy constitutes special efforts for sustainability and reducing its carbon
footprint.

Recently, Nestle announced its aim to use food-grade recycled plastics. It also plans to invest over 700
million in Nescafe’s sustainable coffee production. It took the initiative to fight against deforestation

Thus, consistent efforts have made Nestle a globally recognized sustainable brand. It was recognized by
UN Global Compact for its efforts.

Key Takeaways: Sustainability imprints a positive impact on your brand. The efforts help you take on a
fair share of ethical responsibility while subtly shifting environment-conscious people’s minds toward
your brand.

10. Digital Marketing is a World of Success

Nestle posts quality content on each of its brands’ YouTube channels. It has informative ‘how-to’ videos,
cooking tips, product insights, and more.

Its ‘Meri Maggi’ page gained up to 571,000 subscribers. The Nestle marketing strategy relies heavily on
video content. It also has other established avenues for sharing information, such as the search engine
optimized Nestle child nutrition website.

It serves as a comprehensive guide on nutrition for mothers. It also features a community aspect in
addition to the expert advice section.