Nestle: Food and Customer Satisfaction Essay

Nestle has been done a lot of things to fulfill the customer satisfaction needs like food quality,safety and reliability,health,wellness &nutrition,perception of foods,customer future expectation and promotion. 3 Justification The writers undergraduate course will be ‘marketing and management. The course is about monitoring the marketplace, organizing and analyzing the results of data collection, and developing strategies for future marketing activities. The topic of this report focuses ‘Why customer satisfaction is the key for Nestle becoming the number one food company in the world?

The reason why I chose this topic is because customer satisfaction deals with the very hearts of customers’ needs and fulfillment.

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As a crucial attribute for any product based or service company, customer satisfaction is increasingly hard o achieve with rising consumers’ expectations. Secondly, customer satisfaction is a very broadly defined concept which many companies failed to grasp successfully. Furthermore, customer satisfaction comes hand-in-hand with branding and is one of the major attributes in achieving successful branding.

As a result, one needs to carefully examine customer satisfaction, and thereby being TABLE to better understand how companies are TABLE to achieve their overall business targets by attaining customer fulfillment. Through this report of in-depth studying of Nestle, I am TABLE to learn and duty how Nestle maintains and improves customer satisfaction, and finally, using the power of loyal and satisfied customers to increase their market share to become the largest food business in the world. 4 1. History of Nestle Nestle which means the little nest(who become the logo of the company) was established by Henry Nestle in 1867 who was born in August 10, 1814. Henry was a German expert pharmacist was make a Farina lace©, a combination of wheat flour,sugar and cows milk. Let become the first product Henry launched in order to save the neighbors child and Farina lace© was become the fundamental of the company. N 1905,nestle merged with Anglo-Swiss Condensed Milk company who was found by Charles and George page after a few year of competition and to form the Nestle© and Anglo-Swiss Milk Company. N 1914 the world war 1 become the disaster to nestle and the world. It is difficult to get the raw material and because of the shortage of fresh milk in Europe,The government forced the industries to sell all the supply to the town but it will create a new demand for nestle and it become the opportunity to nestle and in the end of ward,around 40 company was bought by nestle-in the 1 925 where there is the economy crisis,nestle has en create the new product other than dairy milk-chocolate is the new product that nestle has been made and it become the part of the business. N 1938 nestle has been make a new product called unsafe and in 1940 nestle was launched another product called unsafe and both of them became success in short of time. Now Nestle product is not only about baby milk coffee,tea, and chocolate but there are a lot of new products like cereals,yogurt cream, frozen food,seasoning and many more. 5 In overall, Nestle owns close to 8000 brands and in 201 1,Nestle was become the Number one as the world’s most profiTABLE food company. Today Nestle as around 450 factories and it was operate in 86 countries.

Nestle has been made 92. 2 CHEF ban of group sales and in sales category,20 chef ban is from powdered and beverage, 18. 6 chef ban from milk and ice cream product, 7. 2 chef ban from water,10. 7 chef ban from nutrition and healthcare, 10. 8 chef ban from pet care,1 0. 4 from candy and chocolate and the country that has been made the biggest sales was American following with Europe and AAA. 2. 0 Customer satisfaction defined Craig Cochran mentioned that certain elements are within the control of the organization such as the characteristics and the quality of its products.

However, the largest factor of customer satisfaction – customer’s perceptions, is not one that an organization can fully control. (Craig,2003,1) On the other hand, Hussein Gunner defines customer satisfaction being the combination of cognitive satisfaction and emotional satisfaction. (Hussein Gunner,2003, 18) Overall, customer satisfaction can mean a variety of things and is very subjective to each consumer. Sometimes it is a complicated mix of all these characteristics and more. Furthermore, in the case of Nestle, it has numerous products lines and the importance of each variTABLE can differ widely. Therefore, I will list out the general characteristics which are important: a) Food quality d) Safety and reliability f)Wellness & nutrition g) Managing customer’s expectations h) Investigating perception of foods I) Promotion 3. Food quality The quality of something is how good it is and safety is the state of being safe from harm or danger. (Collins dictionary) It is important for Nestle to know the quality and safety of product whether the quality is under fulfilling or over-fulfilling customers’ needs.

As a global food business, the top priority to Nestle is quality-One of the example is coffee farming and production. Nestle has been trained the farmer for new technology to minimize water usage in the coffee production process because many of the coffee farmer are smallholders bad they did not have enough resources of clean water. This technology had been improved the coffee quality,water saving and also increase profit for coffee farmer. 7 4. Safety and reliability To guarantee its food safety, Nestle uses five systems quality management system, from farm to fork to Hazard Analysis to minimize food hazards.

One of such examples is Nestle uses Hazard Analysis and Critical Control Points HACK) to ensure that their system is TABLE to accurately identify, evaluate, and control food hazards. Nestle has verified their HACK systems by external certification bodies against international ISO 220002005/150 22002-1 standards. In fact, many of Nestle factories are awarded with such management systems certifications. In general, ensuring food safety and reliability does not necessarily mean customers satisfaction will increase.

However, maintaining high standards of food safety and reliability is of utmost importance because customers, in general, are unforgiving with companies with stained records. In this aspect, Nestle has done very well by having only 3 major food incidents (Wisped – Nestle) since the company’s founding in 1866. 5. 0 Health, wellness and nutrition More than 220 million people around the globe suffer from diabetes and approximately 18 million people have Alchemies due to poor dietary consumption and lifestyles. In 2005, Nestle recognized that the food consumption habits of the world’s population were changing. The founder then began to move away from selling processed food and confectionery, and started to move towards becoming a producer of food with health and nutrition benefits and ultimately, a provider of a wide range of products and services in the nutrition, health and wellness business-Nestle planned to invest $500 million in the next 10 years to improve its health and wellness products to ensure customers could eat their food without worrying about getting fat or diabetes.

Nestle also used its nutritional product system to control the composition of nutrition in the products. Since 2004, Nestles nutritional product system has been applied to various factories around the world. Under this system, Nestle has been TABLE to control the composition of sugar, alt and trans-fatty acids into its food. 5. 11 Sugar & Salt Sugar is a sweet substance used to sweeten food and drinks (Collins dictionary). Nestle has been reducing the composition of sugar for many years and nestle has been reduced 34% of sugar content from 2000 to 2010. N order to make reduction of sugar level keep going especially in product of total dietary sugar intake. This include meals,beverage,snacks and also product for kids like cereals and milk,Nestle used the mandatory policy in 2007 Nestle make a limited use of sweeteners and reduced sugar and did not educed the sugar level completely because it is to provide a sweet taste and in drinks,Nestle make the sweet taste for customer preferences. 9 Salt is a white substance found naturally in sea water. T is used to flavor and preserve food (Collins dictionary). Salt has been our primary source of sodium in diet. Epidemiological studies have been linked that salt increase blood pressure and to reduce high pressure,is by reducing salt consumption and by reducing salt consumption,it can reduce risk of getting stroke and kidney disease. Nestle has been improving food for heath by reducing the level of salt in 2005. Nestle has been reduced salt level by 10% in the end of 2007. By the end of 201 0 nestle has been made the reduction to reduce 5. 2 Trans- fatty acids (TEA) Trans-fatty acids is the partial hydrogenation of vegeTABLE oils and present in hardened vegeTABLE oils, most margarine’s, commercial baked foods, and many fried foods. An excess of these fats in the diet is thought to raise the cholesterol level in the bloodstream (https://whom. Defenestration. Com/ trans+fatalistic). As part of Nestles health policy since 1999, Nestle has been committed to not exceeding the level of T FAA in their products by 3% of the total fat in their foods and 1% for daily total energy intake.

The level of T FAA in products for children or products that contain high levels of TFH like pizzas, snacks and instant food has been reduced by Nestle and instead, been substituted with non-fat or low-fat products for nutritional needs. 10 In order to meet high expectations of customers and their ever-changing lifestyles, Nestle has successfully transformed their overall strategy and product portfolio from unhealthy food to nutritious food that promotes health and wellness.

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