Marketing Strategy of Nestle and Unilever

Name ATIF BUTT

Reg No. 1179-FMS/MS/S20

Faculty of Management Sciences

International Islamic University Islamabad
 Introduction
Name
Nestle
Industries served
Food Processing
Geographic area served
Worldwide
Headquarters
Switzerland
Current CEO
Paul Bulcke
Revenue
92.2 Billion
Profit
10.6 Billion
Employees
328000
Main Competitor
Unilever VN, Hershey Foods, Kraft Foods, Cadbury Schweppes, Group Danoe
Marketing Strategy
 Market Segmentation
1. Clearer understanding of the needs and wants of selected customer groups.
2. More effective positioning.
3. Greater precision in selecting promotional vehicles and techniques.
 Bases for Segmentation:
1. Geographic
2. Demographic
3. Psychographic
4. Behavioral
Target Marketing:
Undifferentiated: Nestlé has offered several products such as Nescafe 3 in 1, Maggi
noodles, and Kit Kat to the whole people.
Differentiated: Nestle also selects the differentiated marketing. It offers different
product for different segments based on different age, occupation, season and climate
Positioning Strategy:
Product Differentiation
Channel Differentiation
Image differentiation
 Marketing Mix

Products:
 Beverages
Milk and Milk products
Chocolates
Price:
 Placement

Manufacturing >> Distributors >> Retailers >> Consumer

Promotion
Television Advertisement
Celebrities of nestle
 Nescafe tune
One of the most widely known tunes is the Nescafe tune
SWOC Analysis
Strengths
Product diversity: Product diversity: As of October 2014, the company had 29 operating
brands under which 8000 products were being sold in the market
Distribution channels: Nestle is successfully operating in more than 100 countries which
gives a real strength to its distribution channel. Including direct and indirect channels, it
has operations in 197 countries
Nestle’s R&D: Nestle has a strongest research and product designing teams with great
capabilities. They introduce new products through the year, which strengthen Nestle’s
competitive advantage.
Brand value and Reputation: In 2013, Nestle became one of the top ten reputable
companies in the world in the annual ‘Global RepTrakTM 100’ study. A report published
by Forbes, Nestle numbered 43th position in the World’s Most Valuable Brands.
Acquiring and merger: Over the past years, nestle has been defeating its competitors
successfully. By becoming successful mergers and acquiring other companies it’s
becoming more powerful in the market.
Weaknesses
 Less ability to provide good foods consistently
 Incident in India
 Criticism: issues including child labor, horse meat scandal, which make it less
trust worthy
 SWOC Analysis

Opportunity
 Demand for healthier food products: Great intensity of buying and consuming quality foods
is increasing among people.
 Strong R&D: it has great advantages of introducing new product in the future.
 Broad Sale Channel: Nestle has been broaden its selling channel in developing countries.
 Building Partnership: it has been building partnership with other major companies such as
Coca- Cola.
Challenges
 Trend toward healthy eating: As people’s concentration is increasing toward healthy foods,
Nestle will have to make sure healthy foods at any cost.
 Changing trend: Chocolate and chocolate related products are the major products of Nestle.
recent research showed that peoples becoming more health conscious toward their health
which may be the main reason of decline sales of chocolate in future.
 Raising Prices of Raw materials: With the growth of the economy of the world, the price of
raw materials is increasing.
 Contamination: Though the main responsibility of Nestle is to run thorough quality checks
of its products, the company had been thoroughly providing contaminated foods. Such
actions may hurt company’s reputation greatly in future if being practiced more.
Unilever
 Headquarters London, United Kingdom
Area served
 Worldwide
 Alan Jope (CEO) 
 Products
 Cleaning agents
 Skin care
 Personal care
 Convenience food
 baby food
 energy drink
 frozen pizza
 coffee
 juice
 tea
 Revenue €51.980 billion (2019)
Business Plan of Unilever
3 Key Pillars of Marketing of Unilever

People First: “Putting people first,” is the first pillar. “Putting people at the heart of
everything Unilever does.
Indispensable brands: The goal of Unilever is to build brands that people cannot live
without. Brands of Unilever are with a clear purpose, with a clear point of view.
Magical experiences: Unlocking the emotion, sharing in those magical brand experiences
across the whole path to purchase, across the whole consumer journey is the process by
which Unilever builds brands.
7Ps of Unilever
Products
Price
Place
Promotion
Television advertisement
Unilever - SWOC Analysis
 STRENGTHS
Recognized global brand by all the consumers
Strong supply chain to low lead time and cost
Economies of scale decreasing cost
Huge investment in R&D 6. Excellent management and human Resource
 WEAKNESSES
Less direct connection with customers
Difficulty in managing almost 400 brands
Slow sales growth in emerging market
 Opportunities
Increasing need for healthy products creating demand
Developing markets are expected to grow
Personal Care segment may become more customized
Product for aging population may see increase in demand
 Challenges
Strong competition from local and MNCs
Competition among its own products
Complex Organizational Structure
 Comparison
Nestle Unilever

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