Marketing and Nestle Case Study
Nestle Case study Q - Marketing and Nestle Case Study introduction. 1 A: Impact of Globalization and technology change on Nestle: Globalization means the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment. Pestle analysis is a useful analysis to understand the impact of Globalization on a company. Political analysis: Taken advantage of globalization Nestle considers political stability of a country to build a plant that can operate.
Considering th country’s political stability , good tax incentives as well as skilled work force nestle chooses Malaysia o be the site of regional manufacturing centre for Nescafe. Economic Analysis: The economic factors lead to the strength of Consumer spending. During recession people stop to spend on the stuff like chocolates Americans likes luxury chocolates, a new line of cacao called Nestle Treasures God has been launched to encash in the recession period.
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Social analysis: Nestle as a multinational corporate which operates their business in many countries, they do respect to people’s culture and traditional which means that nestle is corporate that thinks global. Kit-Kat’s formula is not same everywhere. A Russian Kit-Kat is smaller than a Bulgarian, but less sweet than Kit Kat in Germany and all this is possible because of globalization. Technological analysis:
In order to reach end consumer Nestle uses advertising to attract people to purchase their products Nestle Policy and Environmental sustainable (2008) reports shown that during the manufacturing process, Nestle uses technologies to ensure that there is no wasted energy. In addition, they also controls Green house gas emmisiion. Legal analysis: In 1996,Nestle s the first multinational company that uses Halal Certification for its products. As a global food company like Nestle, the most important thing is Hygene. Since Nestle has the Halal certification and hygiene is the procedure to get this certificate.
Environmental analysis: Nestle committed to produce best quality products for its customers. Nestle prevented the waste of maetrials by recycling them. But Kit Katis a environmental destructed produc because of the use of material that is used in candy bars. Nestle uses Maket penetration strategy as a response to Globalisation. It refers to increase in market share through exsisting products by giving offers like buy 1 get 1 free. Market penetration also involves 4ps Product Price Place Promotion Nestle has differentiated products producing Kit-Kat in different flavor.
A Russian Kit-Kat is smaller than a Bulgarian, Germany’s Kit-Kat is less sweet. In Japan they are selling Stawberry kitkat.. The international price is related to the account market different between countries taking into account the exchange rates. Nestle always advertise their products through media like television and make sure that people know their products pursuing people to purchase there pro It is difficult to control from outside the overseas country to control distribution Nestle recruits people outside of overseas of the relevant country to solve the problem as warehouses, the selling markets etc.
Q. 2 A Balance score card is a business model that emphasizes the need for a broad range key performance indicators and builds a rational structure that reflects longer terms prospects as well as immediate performance. It translates mission and sstrategy into objectives and measures and focuses onFinancial, Customer, innovative and learning perspective and internal business process. The financial perspective focuses on growths , turnover shareholder values by setting measures through talking directly with shareholders. The Nestle annual report 2012 indicates an organic growth of 5. % , the net profit was 11. 8% and earning per share increases by 12. 2% , the operating cash flows also increases to 15. 8 billion indicting a strong financial position of the company. The company should make adjustments for free stalls in different markets to test there products free of cost. This will further help to increase its sales and also a good way of promoting products and reaching the customers. The customers should be asked to fill up the comment cards at the stalls which will further help to have customer analysis.
Customers perspective: It emphasis that to achieve the mission how should we appear to our customers. What do the exsisting and new customers value from us. Customers are usually sensitive to price and quality. Nestle by adapting pricing strategy with account market of different countries and by using halal certification satisfies the customers in terms of price and quality. The annual report 2012 shows that nestle finance different farmers worth upto USD 37. 8 million. There is a 24% reduction in green house gas emissions.
Employees are requires to complete human training tools online. So all the customers of nestle incluing consumers, Employees labour force are getting valuable services. Nestle is having global competitive market . In national market Nestle should acquire Shanghai to be the leader in national market. Internal Bussiness processes: This includes the processes in which a company should excel in orer to achieve financial and customer objective and to improve decision making. Corporate governance is most important for any company.
The Board and committee of Nestle is effective. Good governance has helped to maintain the trust of employees, investors,government,consumers etc Nestle has a decentralized organizational structre through which the decision making process is quick. The person who is doing the work is able to make decisions in a better way in the view of market position of demand and supply. Innovation and learning Perspective: This indicates that how a company will sustain its ability to change and improve vision and will continue in creating value.
Nestl has deep roots in the upcoming markets . They have extended there relationships with farmers also taking there view also in making better working conditions for them. In order to compete Nestle has started working on Research and development which will bring consumer benefits. Research and development can also enable to solve health issues. Nestle should se its R& D project to produce health ased products it will lead to the increase in selling products . As nestle is a well known brand , it will be easier to attract people.
Q. 3 A: Nestle is a company dedicated to food. Nestle aims to be a good leader in food and nutrition. The vision of the nestle is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality. To achieve this viion nestle has two steps to follow : To achieve High Quality To focus on e business and websites. Nestle is working in the food markets and quality of such eatable item is of immense importance for success in the market.
Nestle has high quality efficiency in handling the quality of material because of this the company has been able to run its business smoothly for so many years in spite of the trends in business globally. Furthermore to achieve its Vision Nestle was the first multinational company to use Halal Certification that has hygiene as a process to achieve this certification which leds to world wide recognition of nestle as a corporation that maintain its standard all over the world and provide the consistency to its customers in the taste and quality of the product.
In order to achieve its vision to market its products with high Quality Nestle establishes the Marketing Service department that helps in the promotion of the product. It communicates the features of the product and also get the feedback with the help of survey, which helps them to develop a product by keeping in view the need of the customers. The marketing strategy of Nestle helps to build a brand and be a leading multinational company in food and nutrition. The mission statement of Nestle is : Nestle is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world.
With our unique experience of anticipating consumers’ needs and creating solutions, Nestle contributes to your well-being and enhances your quality of life. The mission statement reflects the longer term objectives of the company. it states that the company will be producing the food product with the best quality which will lead to the quality life of customers. The statement emphasises that the company will operate its functions globally. It promises that the company will understand the need of all stakeholders and provide the best products.
The company reassures to provide the best range of food products and there products will be the first preference of the consumers. Nestle is making all of its stakeholders happy bymaking efforts to achieve what they have promised in there mission statement. It has helped Nestle to gain the trust of stakeholders all over the different countries that has enabled this firm to achieve competitive advantage and earning profits. Q. 4 A: Th number of types of stakeholders they are not individuals but different group of stakeholders have different interstests.
Nestle creates shared value by engaging its stakeholders that helps to identify the needs and interest of the customers. The different stakeholders of nestle and their impact on its success are as follows: Consumers: They want better quality products and services at low price. Nestle has developed market differented prices for its products. The pricing policy of nestle first is profit- oriented which help to achieve a target return and maximize profit. The second is the sales-oriented which help to stabilize prices and maintain or increase market share..
The interest and power of these stakeholders is high so they nestle has satisfied this group of stakeholders and by doing this Nestle has maintained its quality of advertisements because consumer’s perception of quality may be influenced not just by price but also by such factors as store reputation and advertising. Nestle displays responsible Commercial behaviour. The Nestle Nutritional Compass, launched in 2005, provides consumers with standardised nutrition information in order to help them to make healthier choices.
Employees: Employees are one of the most important stakeholders since they interact with other people outside the organization and left the organisation’s image on the customers. Nestle management daly works to create and maintain positive individuals. Nestle is a company trusted by the employees since it adheres to the employment las in the countries and continuously improves working condition enabling the company to achieve the high reputation in market and to have an ege on competitotrs. Customers:
The immediate customers of Nestle are retail and grocery stores which provide the products of the company to the end customers at a reasonable price and a reasonable profit. The company has a big pool of loyal customers due to its long history in the food and nutrition market which is a major reason pf the success of the company. Legal customers: Legal customers include government, trade associations , NGO’s environment regulatory authorities etc Nestle regularly pays its taxes finance in different NGOS and also heling to protect enivornment and scarce resources by improving there own processes.
The Environmental Practicesof Suppliers is also a relevant factor. Nestle is an active member of the Sustainable Agriculture Initiative (SAI ) Platform, which aims to support the development of sustainable agriculture practices worldwide. . Nestle emerges to be a Socially responsible organsation which has helped to gain the customers trust on its products References: http://www. nestle. com/media/newsandfeatures/annual-report-2012 http://www. marketingminefield. co. uk/marketing-plan/pestle-analysis