Free Sample: Marketing and Nestle paper example for writing essay

Marketing and Nestle - Essay Example

Internet use by consumers in other countries, specially Japan (49 million users), the United Kingdom (29 million), Germany (36 million), Brazil (25 million) and France (31 million), has escalated rapidly. (Farrell, Throne, & Farrell, 2012). The increasing number of Internet users warrant firms’ closer attention to and effective management of paradises. In particular, Nestles case in 2010 exemplifies the need to respond pro-actively to social media attack initiated by Greenback rather than by not acknowledging the challenge or fighting back against the challenge.

If not properly and timely addressed, this may result to a web of chaos for Nestle. Greenback is a global campaigning organization that enhances to change attitudes and behavior of people in order to protect and conserve the environment. (About Greenback, n. D. ) The reputation threat instigated by Greenback stemmed from Nestles weak stakeholder/customer relations which is a factor in selling products/services, one of the seven basic functions of marketing.

Though it is true that supplier contracts including one with Sinai Mass Group should have been reviewed at the onset to check if these are aligned to the company’s social responsibility mandate, the parasitic could have en immediately addressed should management responded to every single complaint in its social media. Based on my analysis, in general, Nestles performance in individual functional areas of business is strong.

Financial performance is outstanding as group sales and earnings before income tax (BIT) per its 2010 Annual Report are increasing from CHEF 107,618 million to CHEF 109,722 million and CHEF 15,699 million to CHEF 16,194 million in 2009 to 2010. It was also able to manage company’s debt as net financial debt was reduced to CHEF 18,085 million to CHEF 3,854 million which now only comprised 6. Percent of equity from the staggering 37 percent in 2009. On the marketing side, Nestle is a well-known brand all over the world, in fact, number 1 in the food industry offering diverse products.

Other functional areas of Nestle including operations, research and development, information systems per my research and analysis, are performing effectively. My analysis of the company’s major strengths and weaknesses is presented in tabular form below: Table 1. Internal Strategic Factor Evaluation Key Internal Factors Weight Rating Weighted Score Comments (Rating Values) Strengths: 1. Stellar operating/financial performance 2. Global presence and leadership in the food industry 3. Diversified products 4 3 1. 2 1. 6 0. 3 1- Major weakness 2- Minor weakness 3- Minor strength 4- Major strength Weakness: 1.

Weak customer/stakeholder relations 2. Failure to uphold its doctrine of social responsibility by contracting with suppliers like Sinai Mass Group, alleged to be destroying the rain forests and orangutan habitats. 1 0. 1 0. 1 Overall Rating 100% 3. 3 Conclusion: Firm’s internal position is strong. 0 > 2. 5 – strong internal position 2. 5 – average internal position 0 < 2. 5 - weak internal position On the external factor aspect, based on my analysis, firm's strategies take advantage of the existing opportunities and minimize potential adverse effects of threats.

First, food (and beverage) industry is observed to be resilient visa-Г-visa other industries during and immediately after the global economic crisis in 2008. The economic value has had an opposite impact on food and beverage industry. The major concern of these industries is increasing transportation costs for which people have to spend. Nevertheless, the food and beverage industry has been relatively less affected when compared to other industries. This is mainly attributed to the fact that food products continue to be essential to consumers in spite of the slowdown.

A comparison between the S&P 500 and the DOD Jones US Food and Beverage Index in 2008 is testimony to the resilient nature of this industry. In 2008, the S&P 500 declined 37. 6 percent against a fall of 22. 9 percent by the DOD Jones US Food and Beverage Index. (MAP, 2010). Second, people are becoming more health-conscious and are now demanding nutritious products in which Nestle has the capability to produce. Company’s response to these major opportunities is superior. However, reputation attack initiated by Greenback could damage Nestles franchise value and could result in loss of business and consumer trust.

My analysis of the surrounding opportunities and threats is presented in tabular form below: Table 2. External Strategic Factor Evaluation Key External Factors Weight Rating Weighted Score Comments Opportunities: 1. Resilient food (and beverage) industry 2. Increasing importance of health and nutrition 0. 8 1 -poor response 2 -average response 3 -above average response 4 -superior response Threats: 1. Reputation attack from across social media sites 40% 1 0. Total 100% 2. 8 Conclusion: Firm’s strategies take advantage of existing opportunities and minimize potential adverse effects of threats. > 2. 5 – strong internal position Though Nestle could have adopted the following mutually exclusive strategies to respond to parasitic – repentance, refutation and refusal, it is apparent that repentance, a reform strategy will create a harmonious relationship with its stakeholders, hence, the best or the only feasible parasitic strategy response. Damage to franchise value caused by increasing trajectory of the parasitic outweighs the cost of changing organizational practices (change supplier) to reflect the demands of Greenback.

The combined effect of the voices not only from Greenback but also from specialist media and mainstream media and commentary on multiple blobs will be damaged reputation and loss of business. Adopting the refutation and refusal strategies will only create organizational hiatus and worst, crisis. Now that repentance is deemed most feasible, the following independent courses of actions could be employed by the crisis management team at the point of view of marketing communications and public relations: 1 .

Filter pressing and critical issues for appropriate action of Board of Directors and/or Senior Management while attending to minor issues; 2. Resolve all issues – critical or not at their level and respond to these issues through social media in an appropriate and timely fashion; 3. Respond only to issues deemed critical. The first alternative course of action is deemed most feasible. Critical issues could be discussed at the top level of the organization giving the Board and Senior Management the opportunity to carefully review them and adjust company strategies, if necessary.

Board and Senior Management sets the tone at the top and has the ultimate responsibility in running the business, hence, they should be fully aware of these critical issues. The crisis management team, on the other hand, should timely and appropriately respond to all issues – critical or not, with an end of assuring its stakeholders that these issues are being resolved by the company. Minor issues can then be resolved at their level. The public should be made aware, implied or expressed, that the company is taking actions and is responsive to customer/stakeholders’ concerns.

My recommendation to dress the company’s central problem as mentioned in the above paragraph should be complemented by medium to long-term action plans which includes strengthening its stakeholder relations program; and annual or periodic review of company’s adherence to its mission and vision statements, strategies and business principles. First, stakeholder relations program should be strengthened by keeping community relations at the highest level, improving the customer climate, and maintaining good public image. The “Be redundant and sprawl” rule is highly applicable to prevent a crisis from happening in this particular case of Nestle.

Posting articles on its commitment to social responsibility on different sites including its own website will help the company to vindicate itself from any gross reputation attack. Nestle should as well develop a comprehensive and effective communication and marketing strategy. Second, conducting an annual or periodic review of principles will save the company from dealings that may taint company’s reputation. Nestle is committed to its business principles in all countries, taking into account local legislation, cultural and religious practices which include supplier and customer elation’s.

Nestle require its suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness and to adhere to its non-negotiable standards. In the same way, Nestle is committed towards its own customers. (Nestles Corporate Business Principles, n. D. ). These business principles, more particularly supplier and customer relations, should be reviewed not only on first dealings but on a continuous basis. Nestles objective is to be the recognized leader in nutrition, health and wellness and the industry reference for financial performance. (Nestle

Annual Report, 2010) Remaining at the number 1 spot in the food industry busily catering to customer orders and demands while projecting mounting sales and profits could have prevented Nestle from responding to social media campaigns against irresponsible sourcing of palm oil. Apparently, Nestle failed to live by its dogma of social responsibility. Notwithstanding its desire to be viewed as socially responsible, it was not the actual picture then. Nestle was callous to people’s call for reform until it grew and became a sensation. Nestle should have an effective management team to manage paradises or reputation threats.

Free Sample: Marketing and Nestle paper example for writing essay

Marketing and Nestle - Essay Example

We are grateful to some prominent authors worldwide whose book I have consulted n the preparation of the assignment. We also thank to our course mates for their advice and comments to the success of the report. Thank You, old- 2010-3-13-059 On Behalf of the Group April 12, 2014 Shaft Aimed 43 Mikhail C/A, Dacha- 1212, Bangladesh. Subject: Submission of Assignment on “Marketing Strategy of Nestle. Dear Madam, With due respect, we are please to submit herewith the assignment on “Marketing Strategy of Nestle” that you are assigned us to prepare by August 4, 2011.

Thank you for assignment us such interesting topic. This assignment has enables us to apply our theoretical knowledge as enhanced our understanding of the subject. We look forward to carry out such studies in future also. Sincerely Yours, JahidhasanRaJiblshratAshrafI old- 2010-3-13-059. old- 2010-2-10-096. Table If Content old- 2011-1-10-439. old- 2010-2-10-345. Executive Summary Executive Summery Nestle foods was established in 1866. Since then it has continued to provide quality products to its customers with products and packaging innovations. Nestle Juices is world wide number one and fastest growing food company.

The company is trying their level best to differentiate themselves from other local companies and trying to in the competition in Juice industry by adopting the modern trends and technologies in both operational fields as well as in marketing of their products. In this detailed project we covered all most all the topics related to the marketing plan. First of all we presented the companies history and introduction which included the year of formation and certain steps the resulted in the today’s form of Nestle. We describes value chain analysis PEST analysis about nestle Juices and our brand competitor .

And the next step we do experiment about SOOT analysis who its effect on our brand . O we described MARKET analysis, competitor analysis, analysis buyer behavior , hierarchy of organization goals and the next step to STEP of nestle company we explain product strategy , price strategy and distribution strategy ,communication strategy and other things related to a marketing plan such as marketing budget and last of our project sale forecast for last 5 year.. Innovative technology, , Globalization, Matrices, , Financial Review, Porter’s five model, Industrial analysis, Five Was and Future Plans Of Company. 1. Introduction 1. Basic Information Regarding Nestle Nestles the largest food and nutrition company in the world, founded and headquartered in Bevy, Switzerland. Nestle originated in a 1905 merger of Anglo- Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Fibrillatee Henry Nestle, founded in 1866 by Henry Nestle. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 people. AIM: Nestle (NEWS.

VS.) is aiming for long-term organic growth of 10 percent in its nutrition unit. The aim of manufacturing Nestleg’s product in global market will be earning maximum profit at minimum cost and capture the maximum share of the market. Goal: Nestles goal is to manufacture and market the company’s product in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers and business partners. Nestle does not favor short term profit as the expense of successful long term business development. Market Growth: In 2009, consolidated sales were CHEF 107. 6 billion and net profit was CHEF 0. 43 billion.

Research and development investment was CHEF 2. 02 billion. Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from baby milks. Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world. Objective and Issues: Taking an objective approach to an issue means having due regard for the known valid evidence (relevant facts, logical implications and viewpoints and human reposes) pertaining to that issue.

If relevant valid evidence is denied or falsified, an objective approach is impossible. An objective approach is particularly important in science, and in decision-making processes which affect large numbers of people. Capital issues: Nestle S. A. Has set up a new, wholly-owned subsidiary to manage the Group’s pension fund assets, which amounted to some CHEF 25 billion at the end of 2005. From 1 January 2007, Nestle Capital Advisers, the new Swiss-based company, will have a strategic advisory role and be a one-stop-shop for any services required by

Nestle pension funds around the world. Nestle Capital Advisers’ CEO will be Jean- Pierre Steiner, who will also continue as Nestleg’s corporate pension and risk director. Paul Pollen, SCOFF of Nestle S. A. , will serve as Chairman of the Board. In addition, Nestle Capital Advisers has established Nestle Capital Management, an operational asset management arm based in London, fully authorized and regulated by the UK Financial Services Authority. Nestle Capital Management will start operations from 1 January 2007, with 15 investment managers and a compliance officer. This new

Nestle asset management company will be able to provide cross-border investment and advisory services to any Nestle pension fund based in Europe or elsewhere. However, each individual Nestle pension fund will continue to be under the responsibility of the relevant local trustee board. Nestleg’s new, shared-services approach to Group pension fund management aims to lower costs and boost net asset performance while strengthening Nestle S. A. ‘s overview of Group pension assets. Key of Success: The quality, low price charging and marketing strategy will be the reason of working Enid to achieve success of Nestle.

Nestle has to focus on the mind of buyer and consumers by which their selling rate. Nestle will be able to achieve maximum profit. Besides taking some extra strategies the company will be able to reduce its cost of the product. 1. 2 History Of Nestle The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestle. In the succeeding decades the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867 Charles A and George Page, two brothers from Lee

County, Illinois, USA established the Anglo-Swiss Condensed Milk Company in Champ. Their first British operation was opened at Chippendale Wiltshire in 1873. In September 1867, in Bevy, Henry Nestle developed a milk-based baby food and soon began marketing it. The following year, 1868, saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process; M. Nestleg’s was the crucial cooperation M. Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew.

Henry Nestle retired in 1875, but the company, under new ownership, retained his name as Fibrillatee Henry Nestle. In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestle Company added condensed milk, so that the firms became direct and fierce rivals. In 1905 the companies merged to become the Nestle and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestle Aliment AS was taken as a result of the acquisition of Fabricate De Products Magi AS (founded 1884) and its holding company, Aliment AS of Kempt, Switzerland.

Magi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early asses, the company was operating factories in the United States, United Kingdom, Germany and Spain. World War I created new demand for dairy products in the form of government contracts; by the end of the war, Nestleg’s production had more than doubled. After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestleg’s management responded quickly, streamlining operations and reducing debt.

The sass saw Nestleg’s first expansion into new products, with chocolate the company’s second most important activity. Nestle felt the effects of World War II immediately. Profits dropped from IIS$20 million in 1938 to IIS$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the company’s newest product, Nesses (“Nestleg’s Coffee”), which was a staple drink of the US military. Nestleg’s production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestle.

Growth accelerated and companies were acquired. In 1947 came the merger with Magi seasonings and soups. Crosser & Blackwell followed in 1950, as did Finds (1963), Lobby’s (1971) and Stouffer (1973). Diversification came with a shareholding in L’Orealal in 1974. In 1977, Nestle made its second venture outside the food industry by acquiring Alcoa Laboratories Inc. In 1984, Nestleg’s improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Renters Mackintosh in 1988, which brought the Wily Wonk Brand to Nestle.

The Brazilian president, Lull dad Silva, inaugurates a factory in Ferreira De Santa (Bah), in February of 2007. The first half of the asses proved to be favorable for Nestle: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pipelining (1997), Spillers Potatoes (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in June, Nestle merged its U. S. Ice cream business into Dryer’s, and in August a IIS$2. 6 billion acquisition was announced of Chef America, the creator of Hot Pockets.

In the same time frame, Nestle came close to purchasing the iconic American company Heresy’s, one of its fiercest confectionery competitors, though the deal fell through. Another recent purchase included the Jenny Craig weight loss program for IIS$600 million. In December 2005, Nestle bought the Greek company Delta Ice Cream for в?240 million. In January 2006, it took full ownership of Dryer’s, thus becoming the world’s biggest ice cream maker with a 17. 5% market share. In November 2006, Nestle purchased the Medical Nutrition division of Innovators Pharmaceutical for $2. 8, also acquiring in 007 the milk flavoring product known as Volatile. In April 2007, returning to its roots, Nestle bought US baby-food manufacturer Gerber for $5. 5 billion. In December 2007, Nestle entered in a strategic partnership with a Belgian chocolate maker Pierre Marooning. [8] Nestle agreed to sell its controlling stake in Alcoa to Innovators on 4 January 2010. The sale was to form part of a broader US$39. 3 billion offer, by Innovators, for full acquisition of the world’s largest eye-care company. On March 1, 2010, Nestle concluded the purchase of Karat’s North American frozen pizza business for $3. Billion. 1. Situation Analysis First of all nestle company want to know about the market situation. So the company collect information from the market. Market Description : All most all of the country consume the product of nestle. They are very careful about the quality and nutrition. There psalmist 6000 brand with a wide range of products. Like- they have baby foods (Nestle Cereals, NAN) breakfast cereals (Nestle Cereals) Dairy products (Milkman, INDO, Necessary, Nestle Yogurts, Everyday) Loco-creams (Movements, Dryer’s) Chocolate confectionery (Kit Kate, Smarmiest, Tofu) beverages (Ensnare, Mill, Nestle Juices)

Food service (Nestle Jumbo Bottle) Prepared foods (Magi, Powered Soups) bottled water ( Nestle Pure Life, Nestle Quarrel) Poet care (Pro Plan, Purina, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alp) Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical surgical Instruments) Competitor Review: MILLINER Nestles main international competitors include Milliner and Procter & Gamble. They also face competition in local markets or product ranges from companies such as Beresford, Contra, Deanne, General Mills, Hinkle, Mars, Inc. , Pepsico, Receipt Benefices and S. C. Johnson & Son. LANGUAGES:

Languages is the German Heartbreak subsidiary of the Anglo-Dutch company Milliner. They are the number one producer of ice cream products in Germany, and their main competitor is Nestle; a reflection of the relative positions of these two giants the global market. BRITANNIC INDUSTRIES: Britannic Industries Limited is an Indian company based in Kola that is famous for its Britannic and Tiger brands of biscuit, which are popular throughout the country. Britannic is has an estimated 38% market share. The Company’s principal activity is the manufacture and sale of biscuits, bread, Rusk, cakes and dairy products.

Despite this strong competition, Nestle can carve out a definite image and gain recognition among the targeted segments. The products what we are serving to our consumers is the critical point of differentiation for competitive advantage. 2. Marketing Segmentation 2. 1 Geographical Segmentation Nestle is the world’s largest food company that did marketing segmentation very well. They also base on the geographic segmentation. Here they consider the world region, country region and rural area. 1) World or country region:- Nestle understands the geographical different in needs and wants.