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A Term Paper On

Marketing Strategy of Nestles

Course Code: 2301

Submitted To

Razia Sultana

Lecturer

Department of Marketing

Siddeshawri Degree College, Dhaka

Submitted By Asis Kummer Mondol

Roll No: 9575829

Reg. No: 1625681

Session: 2009-10

BBA (Hon’s.)

Department of Marketing

Siddhesawri Degree College, Dhaka

Date of Submission:

24th

May, 2015

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Letter of Transmittal

24th

May, 2015

Razia Sultana

Lecturer

Department of Marketing

Siddeshawri Degree College, Dhaka

Subject: Submission of Term Paper Marketing Strategy of Nestle

Dear Madam,

It is our great pleasure to submit this term paper on “Marketing Strategy of Nestle” as a partial

requirement of our BBA program.

We tried our best to put meticulous effort for the preparation of this term paper. We have

gathered valuable information and personal experience on the process of preparing this term

paper. We would like to thank you for your kind-hearted collaboration with us in preparing the

term paper.

We will be glad if this report can serve its actual purpose and we are ready to explain anything if

you require any clarification.

Sincerely yours,

Asis Kummer Mondol

Roll No: 9575829

Reg. No: 1625681

Session: 2009-10

BBA (Hon’s.)

Department of Marketing

Siddhesawri Degree College, Dhaka-1217

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Student’s Declaration

I am a student of Bachelor in Business Administration (Honours) of Shiddhesawri Degree

College, Dhaka Under on National University, Bangladesh have completed my Term Paper on

“Marketing Strategy of Nestle” I hereby declared that, I have prepared this report completely

by myself. This report is an authentic work of the aforesaid subject.

I have not ever submitted any part of this report for any degree, diploma, title or recognition

before.

Asis Kummer Mondol

Roll No: 9575829

Reg. No: 1625681

Session: 2009-10

BBA (Hon’s.)

Department of Marketing

Siddhesawri Degree College, Dhaka-1217

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Supervisor’s Declaration

I hereby declare that the concerned report entitled “Marketing Strategy of Nestle” Is an original

work by, Asis Kummer Mondol, Roll No: 9575829, Reg. No: 1625681, Session: 2009-10, a

student of BBA (Hon’s.), Department of Marketing, Siddhesawri Degree College, Dhaka-1217,

has completed his term paper under my supervision and submitted for the partial fulfillment of

the requirement of the degree of Bachelor of Business Administration (BBA) at Siddeshawri

Degree College Under on National University.

…………………………

Razia Sultana

Lecturer

Department of Marketing

Siddhesawri Degree College, Dhaka

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Acknowledgment

At first, I would like to express my deep gratitude to almighty God who creates use in this

transitory world. I would like to acknowledge the help of my honorable thesis report Supervisor,

Razia Sultana Lecturer of Marketing , who has given me important suggestion, guidelines and

supervision for preparing report on“Marketing Strategy”

I would like to acknowledge and thanks the following personal of Nestle.

There are no doubts that because of their help; I, an inexperienced person in the professional

field was able to accomplish the impossible task of compiling such a report. They took time out

of their busy schedule to aid me in my survey for which I can only give them accolades of the

highest degree.

I am also grateful to my friends for helping me and support me to prepare the report.

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Executive Summary

The purpose of this report is to evaluate Nestle Company industry based on the case study and

comprehends how the company develops marketing strategic intent for their business

organizations following the Marketing strategy of external and internal business environments. I

will analyze the Marketing strategy management process as firm used to achieve Marketing

strategic competitiveness and earn above-average returns. I will discuss the Marketing strategy

formulation that includes business-level strategy and corporate-level strategy.

It also aims to identify market place opportunities and threats in the external environment and to

decide how to use their resources, capabilities and core competencies in the firm’s internal

environment to pursue opportunities and overcome threats. In order to strengthen this assignment

about Nestle, there are several methods of gathering data has been conducted, such as PEST

analysis, Porter’s 5 forces model, value chain analysis and SWOT analysis.

By the end of this assignment, future Marketing strategy will be mentioned as well as my

recommendations about Nestle that will fit into strategic orientation in order to perform better in

their business world. And continue to develop and implement its learning approach as the chosen

large company by using different Marketing strategies.

ChSerial No

1.1 Industry and

1.2 Objective of t

1.3 Primary Obje

1.4 Scope of the S

1.5 Limitations o

ChapSerial No

2.1 Company Pro

2.2 History

2.3 Mission State

2.4 Vision statem

CSerial No

3.1 Methodology

3.2 Sources of co

3.3 Target Mark

ChaptSerial No

4.1 Analysis of N

4.2 Finding of Ne

4.3 Marketing In

4.4 Media Adver

4.5 SWOT Analy

ChSerial No

5.1 Recommenda

5.2 Conclusion

5.3 Bibliography

Table of Contents

Chapter-1 (Introduction)

Topics

d Nestle summary

f the study

bjective

e Study

s of the study

apter-02 (Conceptual Issues)

Topics P

rofiles

tement

ement

Chapter-03 (Database) Topics P

gy

collecting data

rketing Strategies

pter-04 (Finding of the Study) Topics P

Nestle

Nestle

Intermediaries

ertising

alysis

Chapter-05 (Conclusion) Topics P

dation

hy/References

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Page No 8-11

9-10

10

10

11

11

Page No: 12-14

13

13-14

14

14

Page No: 15-17

16

17

17

Page No: 18-28

19-21

21-22

22-25

25-26

26-28

Page No: 29-31

30

30

31

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Chapter-01

Introduction

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Introduction

The most important thing for most of business company is an understanding their successful

performance among the other competitors in market place. For some parties, like shareholders, it

is essential for company to make a profit and gain above-average returns. In this assignment, I

will discuss furthermore about Nestlé’s external environment in all aspects such as their general

environment, industry environment, competitive environment, and scan the opportunities and

threats of the company. And also I am going to explain briefly about their internal environment

includes their resources, type of their resources, company’s capabilities, evaluate their core

competencies and so on.

1.1 Industry and Nestle summary

Nestlé S.A. is a Swiss multinational nutritional and health-related consumer goods company

headquartered in Vevey, Switzerland. It is the largest food company in the world measured by

revenues. Nestlé’s products include baby food, bottled water, breakfast cereals, coffee,

confectionary, dairy products, ice cream, pet foods and snacks. Nestlé employ around 330,000

people in over 150 countries and have 461 factories or operations in 86 countries. Nestlé sales

for 2011 were almost CHF 83.7 billion. It is one of the main shareholders of L’Oreal, the world’s

largest cosmetics company. Nestlé history begins back in 1866, when the first European

condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk

Company. In Vevey, Switzerland, Nestlé founder by Henri Nestlé, a German pharmacist,

launched his Farinelactee, a combination of cow’s milk, wheat flour and sugar, saving the life of

a neighbors’ child. Nutrition has been the cornerstone of the company ever since. In 1905, The

Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page,

merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and Anglo-

Swiss Milk Company. The company grew significantly during the First World War and again

following the Second World War, expanding its offerings beyond its early condensed milk and

infant formula products. In 2011, Nestlé was listed No.1 in the Fortune Global 500 as the world’s

most profitable corporation. The Nestlé Corporate Business Principles are at the basis of the

company’s culture, developed over 140 years, which reflects the ideas of fairness, honesty and

long-term thinking. Nestlé believes that not only possible to create long-term value for their

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shareholders if their behavior strategies and operations also create value for the communities

where they operate, for their business partners and of course, for their consumers.

Nestlé vision is to meet the various needs of the consumer everyday by marketing and selling

foods of a consistently high quality. Their objectives are to deliver the very best quality in

everything they do, from primary produce, choices of suppliers and transport, to recipes and

packaging materials.

Their mission is they strive to bring consumers foods that are safe, of high quality and provide

optimal nutrient to meet physiological needs. Nestlé helps provide selections for all individual

taste and lifestyle preferences.

Nestlé purpose is to offer safe, tasty, convenient and nutritious foods to improve health and well-

being of consumers of all ages all over the world. To meet the needs and desires of today’s and

tomorrow’s consumers, Nestlé is strongly committed to Research and Development (R&D) to

improve products and develop new foods with specific health benefits (Nestlé.com, 2012).

1.2 Objective of the Study

To prepare and submit the term project within specified time. To have a very practical idea and

over viewing the marketing sector focusing on a specific company and their performance in

Bangladesh. Present company’s current mission, vision, objectives, and goals. Find out their

strength, weakness, opportunities, threats. Defining their market segmentation, target market and

product positioning and key marketing areas. Source of information the report is originated from

both primary and secondary data source.

� Primary data: Face to face conversations with employees. By arranging appointment with

top officials of the company.

� Secondary data: Company’s reports and other published materials various marketing

books, personal interview with a Nestlé professional.

1.3 Primary Objective

The report aims to provide information on suggest more valuable step follow to make a training

program effective of by the Nestle Bangladesh through HR department.

1.4 Scope of the Study

There is a certain boundary to co

Development in Nestle Bangla

Program followed Nestle Banglad

1.5 Limitations of the Stud

We are lucky enough to get a cha

Bangladesh Ltd.” We tried heart

faced some difficulties when pr

spite of trying our level best, som

cover this report. Our particular report only cove

ladesh Ltd. We mainly focus on Training and

ladesh.

udy

hance to prepare a report on “Training and Develo

rt & soul to prepare a well-informed report. But u

preparing this report. We tried to overcome the

ome difficulties that hamper our schedule report w

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vers Training and

nd Development

elopment Process

unfortunately we

he difficulties. In

work:

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Chapter-02

Conceptual Issues

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2.1 Company Profiles

Nestle Alimentana, Switzerland, a wholly owned subsidiary of Nestle Holdings Ltd. the

Company expanded its product range with new products in instant coffee, noodles,

sauces, pickles, culinary aids, chocolates and confectionery, dairy products and mineral water.

Nestlé can trace its origins back to 1866, when the first European condensed milk factory was

opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One year later,

Henri Nestlé, a trained pharmacist, launched one of the world’s first prepared infant cereals

‘Farine lactée’ in Vevey, Switzerland. With headquarters still based in the Swiss town of

Vevey. We employ around 280 000 people and have factories or operations in almost every

country in the world. Nestlé sales for 2010 were almost CHF 110 bn. today Nestlé Bangladesh

Ltd. is a strongly positioned organization. The Company will continue to grow through our

policy of constant innovation and renovation, concentrating on our core competencies and our

commitment to high quality, with the aim of providing the best quality food to the people of

Bangladesh.

2.2 History

In the mid-1860s Nestlé, a trained pharmacist named Henri Nestle began experimenting with

various combinations of cow's milk, wheat flour and sugar in an attempt to develop an

alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate

goal was to help combat the problem of infant mortality due to malnutrition. He called the new

product Farine Lactée Henri Nestlé.

Nestlé's first customer was a premature infant who could not tolerate any of the conventional

substitutes, and had been given up for lost by local physicians. People quickly recognized the

value of the new product, after Nestlé's new formula saved the child's life and within a few years,

Farine Lactée Nestlé was being marketed in much of Europe.

Henri Nestlé also showed early understanding of the power of branding. Nestlé means 'little

nest'. Nestle was created in 1867.

Nestlé is today the world’s leading food company, with a 140-year history and operations in

virtually every country in the world. Their principal assets are not office buildings, factories, or

even brands. Rather, it is the fact that they are a global organization comprised of many

nationalities, religions, and ethnic backgrounds all working together in one single unifying

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corporate culture. Their culture unifies people on all continents, with roughly half their factories

and people located in the developing world.

Nestle started it operations in Pakistan in 1988. A qualified workforce, trained by nestles or

emerging from a strong educational and industrial context, strongly influences the company’s

ability to be globally competitive. The fair treatment and development of company staff and the

strengthening of the local workforce are essential long-term investments. They reinforce the

conditions for growth and sustained economic development in the locations where Nestlé

operates. Nestlé’s ability to employ thousands of people each year is an important contribution

the company makes towards future generations, providing income to families who can enhance

their chances at better education, healthcare and standard of living for entire families and

communities.

2.3 Mission Statement

"Nestlé is the largest food company in the world. But, more important to them is to be the

world's leading food company”.

At Nestlé, we believe that research can help us make better food so that people live a better life.

Good Food is the primary source of Good Health throughout life. We strive to bring consumers

foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In

addition to Nutrition, Health and Wellness, Nestlé products bring consumers the vital ingredients

of taste and pleasure.

2.4 Vision statement “Nestlé aim is to meet the various needs of the consumer every day by marketing and selling

food of a consistently high quality. The confidences that consumers have in our brands is a result

of our company’s many years of knowledge in marketing, research and development, as well as

continuity – consumers relate to this and feel they can trust our products”.

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Chapter-03

Database

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3.1 Methodology

For the organization part, much information has been collected from different published

articles, journals, brochures and web sites. All the information incorporated in this report has

been collected both from the primary sources as well as from the secondary sources. I have

presented my experience and finding by using different charts and table, which are presented

in the analysis part.

Research method: This was totally a Descriptive Research. The following technique of

Descriptive Research was followed:

Questionnaire Interview: The research was totally based upon the questionnaire. The

selected participants were been interviewed by a group of pre-selected questionnaire. There

were both Close-Ended as well as Open-Ended question’s to conduct the depth interview; I

always tried to maintain the 7’cs (Communication, Cooperation, Confidence, Candor,

Closeness, Continuity, Creativity)

Data Collection Method

Relevant data for this report has been collected primarily by direct investigations of several

consumers and different personnel. The interviews were administered by formal and informal

discussion

• Personal observation

• Face-to-face conversation with the consumers and distributor of two different areas.

• Practical work experience in the different locality and supper shop.

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3.2 Sources of collecting data

We are collecting through two types, those are

I. Primary data II. Secondary data

Primary Data

The employees of Nestle Bangladesh Limited were too busy of there work. For this, they did

not sufficient time to fulfill our queries and some of them neglected us to support.

Secondary Data

We collecting data and some valuable information by internet from Nestle Bangladesh Ltd.

Official web-site and others web site, friends and many others peoples.

3.3 Target Marketing Strategies

Nestle uses Differentiated marketing for target market. It targets different market segments

and designs separate offers for each. It has launched various types of products to achieve

higher sales and stronger position in the markets within the segments. It has targeted the

markets by ages, family sizes, income, occupation and thus they are launching their

products.they are also targeting the market by loyality status. Thus consumer can be loyal to

their Brands.

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Chapter-04

Finding of the Study

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4.1 Analysis of Nestle

HRM practices followed by the company/ Specific HR sector like- Training and development:

Training and development is a vital and effective operation of an organization. It is people, not

buildings that make a company successful.

Assets make things possible but people make things happen. And for making them efficient and

hardworking company should provide training and development of their staffs and nestle do the

same thing as all biggest and efficient companies do for their staffs and all over the human

resource department, and employees play dual role in the company. First, as a factor of

production. And second, it makes other factors operative and productive.

Five steps of training and development processes

To make an efficient and well maintained management and training process a company can

follow five steps which can be key success for the training process of the company, those cores

five stages are:

Step-1 Need analysis: identifies the specific job performance skills needed, assessed the

prospective trainees skills, and develops specific, measurable knowledge and performance

objectives based on any deficiencies.

Step-2 Instructional design: this process is a process where we decide on, compile and

produce the training programe content, including workbook, exercises, and activities.

Step-3: Validation step: these programes are represented in front of the small representative

audience.

Step-4: Implementation: this step comprises of actually training the targeted employee

group.

Step-5: Evaluation: management assesses the program’s success or failures After all the

assessment they found that if they provide some facilities they the staffs could be very

efficient and those facilities are:

On-the job training: it’s a training which is operated at the sight of the company or training

is carried out the working is running, it is really a effective process played by various well

leading company and this system also played by the Nestle, but it is also a unavoidable risk

because all new staffs can make a mistake or cause a loss to the company, therefore company

plays that system when it’s right to do so. It is effective, when a major leveled employee do a

mistake by mistakenly then, for making an improvement Nestle company plays that system.

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Local training: these trainings are carried out within the country by reputed training

institution from, Bangladesh slavery and labor training institute and consultant from foreign

training institutes are invited to conduct training. These trainings are usually take place at a

different venue other that the office.

In- house training: these trainings are basically held within the office premises and usually

get conducted by the senior managers who are specialist in different field.

Training about the market survey: company plays a vital role in the market survey by

sending their staff at market and operate a project by management to get the fluency and

efficiency of the staffs.

Overseas training: company provides need based training to the employee through the usage

of appropriate external training instate, which are very often conducted overseas. Most of the

functional trainings are provided by foreign training.

Diversification training: it’s a process of training where staffs work at the different level and

post of the management and identify the efficiency and effectiveness of their work ability.

Off-the job training: this process is also an effective training for internal staffs but it can be

painful and fluctuate staff’s confidence and motivation, because it is quiet time consuming and

costly which bared by company, but in may stages of the efficiency of a company or to make

an efficient staff company may play this training. Where any temporary staff may work for the

company with or without wages and this is actually not a job but binding for the staff to be full

time staff, which is also depends on the performance of the staff.

Apprenticeship training: it is a process by which people become skilled worked through a

combination of classroom instruction and on the job training . it is widely used to train

individuals for many occupations. It traditionally involves having the learner apprentice study

under the tutelage of a master craftsperson.

Computer based training: now a day all most all companies provide training to their staffs

by computers and projectors, this system is so much effective and time saving device. By this,

companies can express their plans, training, what to do and what is restricted by company and

other authorities; it is a total pack of direct communication and training process.

Training and development some employees may have skills from their education or from

previous jobs and therefore need little additional training. Others will need extensive training

how much and kind of training is needed will depend on the type of job involved and the

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amount of training that has already been given through education and the coerces and the

natural skills of the person employed. This section will be looking primarily at the type of

training provided by organization to their employee. There are various type of training and

those types are:

• Case study involving role play or discussion.

• Use of internal and external communication system.

• Interactive video where the trainee is required to respond- depending upon the

response. The video will follow different sequence.

• Games and outdoor programs can teach a workforce to work in a team.

• Brainstorming

• Group reading

• Small group discussion

• Case study

Performance appraisal

The process of monitoring individual and group performance, and giving helpful feedback for

improvement, is generally called performance appraisal. The purpose of appraisals are:

• Helping the employee to overcome any problems or obstacles to performance.

• Identifying where an employee’s potential for improved performance and greater

challenge could be better fulfilled.

• Setting goals and priorities for further monitoring and development.

The process will look at the employee as an individual, but will also ask how the employee

help the organization to achieve its objectives.

4.2 Finding of Nestle

The assignment was so interesting and complicated to, and for completing this assignment I

and my group has worked very hard, and I needed so many planning to do this, each and every

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task has different commodity and factors. These not just helped me to doing assignment, i

learned so many important things of administration of an organization and their day to day

activities with relevant examples. For collecting samples and evidence for completing the

assignment, I went so many places and searched via Internet search engine. And for searching

I took help from google.com, ask.com etc. and a overview of it is given below:

4.3 Marketing Intermediaries

The market intermediaries of the company help to advertise, sell and distribute its product to the

end customers. The physical distribution network of the company decides the medium by which

the finished product is delivered to the end customer on time and with safety. This department

also ensures the proper storage of the firm that prevents the product from getting any king of

damage. The marketing service department of the firm helps in the promotion of the product

and acts as a communication channel between the company and customers. It not only

communicates the features of the product to its customers but also get the feedback with the

help of survey, which helps the research and development department to develop a product

according to the need of the customers. The other intermediaries of the company like banks

help to provide the funds to the companies and play an important role in the continuity of the

business. Insurance companies insure the property and the goods of the company against the

risk involved in various operations, buying and selling of the product. Nestle has the differential

advantage of working in a smooth coordination with all its marketing intermediaries which

helps in providing the best and pure food products to its valuable customers in the different

parts of the world.

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 end

customers of Nestle are the consumers who consume its wide range of product. The company

has a bright brand image in its big pool of end customers.

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Competitors

Although Nestle is leader in packaged food industry of Malaysia but the other competitors

who are giving tough competition to Nestle are

• Petra Foods Limited

• Chocoladefabriken Lindt & Spruengli AG

• Yeo Heap Sang Limited

• Mail Dairy Industry Co., Ltd

Nestle has a clear advantage over the above mentioned companies is its presence in Malaysia

for over a century now. Nestle has been able to setup a good and trusted distribution channel

and a huge retail network. The trust worthiness gained by Nestle among the Malaysian people

is build in decades on hard work and quality products and varied range of prices, thus even

after facing stiff competition with the above mentioned companies in chocolates, dairy

products and other packaged food products the company is able to maintain the bottom lines

of its profit and loss statements attractive for its investors and good image in public.

Marketing

The basic marketing strategy of the Nestle was to develop brands for each their product instead

of focusing on making brand value for the entire company, thus never allowing cannibalization

of products and gaining multiple brand value for the entire company. The vision of the

company could be summarized in following statements Be the leading multinational company

in food, nutrition and wellness. Produce and sell world-class products of the highest consistent

quality, reliability and convenience based on business excellence principles throughout our

operations. Maximize the use of good quality local raw materials Be an exemplary employer

with a progressive human resource and social policy; with a management style that is based on

“Management Commitment and People Involvement” Be a responsible corporate citizen,

fulfilling all obligations to Government, shareholders, customers, communities and consumers.

Protect the environment by being committed to environmentally sound business practices, and

taking into account the need to preserve natural resources and save energy. Guarantee that all

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products manufactured, imported and distributed by Nestlé Malaysia are certified HALAL by

authorized Islamic certification bodies. Deliver shareholder value through the achievement of

sustainable and profitable long-term growth. Adhering to the above vision statements the

company has been able to maintain the marketing and branding unique and ahead of the

competitors.

Macro Environment

Macro environment include following environment of the country.

Political Environment: government of Malaysia has never imposed any political pressure in

fact they have always supported foreign investment and foreign businesses to grow in Malaysia.

As the company is into food and nutrition business they have to just adhere to the laws of food

and nutrition policies of government and constantly provide good quality which is the vision

and mission of the company thus Nestle never faces any problems on political front.

Cultural Environment: Malaysian culture is no doubt of having light food at constant

intervals and young crowd of Malaysia likes to have good nutritional food thus Nestle has great

scope there.

Economic Environment: the disposable income of country and the high living standard of

Malaysia always give better bigger business opportunities for Nestle.

Technological Environment: Malaysia is technologically rich country both in terms of

availability of technology and also the technological work force the highly skilled and educated

manpower is abundant in Malaysia. In case of Nestle and the product offered by the company

these factors do not create much impact in general scenario. However as we have seen the

major events like World War had created a positive impact on the sale of confectionary

products of the company. The culture has some impact in this company as whether the country

has most people as vegetarian or non vegetarian the consumption of milk products is always

there. However the countries where the people are more dependent on milk products are

profitable market for Nestle.

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Key Success Factors

• Consumer Insight: To sustain success the company must have insight of the customers

changing needs, you have to be dynamic and innovate and Nestle has been able to do

this for last couple of decades.

• Continuous Improvement Programs: Continuous improvement includes innovation in

launching new products but equally important is improvement in quality to be better

than competitors, improvement in distribution channel which will help Nestle to be at

the top.

• Regionalization: the regionalization means the regionalization of products and raw

resources procurement which means that the company will run like independent entity

in each divided region with its own targets and resources.

• Development of People: Every company’s responsibility is the development of its

employees as that brings good will factor among the employees and which results into

lower attrition and higher productivity.

• Social Responsibility: this is about creating good will among the people where you

operate, about the society which helps and allows you to grow and use its resources and

at last the protection and responsibility regarding environment.

4.4 Media Advertising

TVC

When it comes to TVC advertising, certain advertising tools such as TRP and GRP are use to

select specific programs. For example, since the GRP is high for TV programs such as popular

drama, and evening news, NIDO ads are aired during these programs. In terms of frequency,

NIDO ads will be aired in all 12 months in 2006 and were aired in 9 months in the previous air.

Newspaper

Two things are considered in selecting specific newspapers for NIDO ad-circulation and a

subjective evaluation of which type of newspapers, specific NIDO target audience might read.

In the last couple of year’s newspapers like “Prothom Alo”, “The Daily Star”, “Jonokontho”

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and “Jugantor” have received the most NIDO ads. In the case of magazines, the most widely

ones used for NIDO ads include “Shaptahik 2000” and “Annodin”. However, in terms of

frequency, print ads are used less frequently than compared to that of TVC’s. The reason is that

print ads have less reach and ad/message recall among target audience. So print ads have only

been used when there has been a requirement to communicate detail nutritional information and

facts on NIDO and how it scientifically helps children grow.

Place Advertising

Place advertising has the objectives of increasing brand visibility and TOM awareness.

However, less focus is given on this aspect since NIDO awareness among potential target

market is quite high. Therefore, little is invested in this area. As of now, there is only one NIDO

billboard, which located in the capital city. In total, there are 28 NIDO shop signs located

around the country.

Point-of-sales Advertising

POP advertising campaigns are carried out on numerous occasions through out the year. POP

campaign acts as supporting advertisement when there is any new product launched and when

there are any trade promotions. During trade promotions, retailers tend to stock up more than

usual quantity of products and hence the POP materials are used to assist the product off-take

from the retail shelves. POP materials are also used during trade display contests. The contents

invites retailers to accumulate points on the number of product purchase, placement on shelf

and proper and creative use of POP materials such as trade posters, shelf-talkers, buntings and

danglers. In addition, product display units are given out to large and potential outlets through

the year in order to create distinct and greater product visibility in trade.

4.5 SWOT Analysis

Strengths

• Company’s name Nestle specifies the quality image high standard and quality product

• Loyalty from customers is also the major strength for the company

• Employees are also loyal due to the decentralized culture of the company

• People trust on products due to proper health and safety measures

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• The strength of Nestle confectionary is its imported chocolates and candies, which

strengthens its image

• Being a multinational company it has the capability to attract more customers than the

local companies

• Company has the ability to compete in a dynamic environment

• Company always adapt the new technology

Weaknesses

• There is not much margins for retailers to prefer it’s sales.

• They need to improve the facilities like chillers.

• The distribution cost is high as compared to the competition in the local market.

• Company mostly advertises its milk products, advertisement of confectionary products is

not so better.

Opportunities

• They have an opportunity to expand or capture the market by adding its product line.

• They have the opportunity to offer snacks.

• They can also capture the market of home appliances.

• Company can open separate stores to eliminate retailers.

• Recently, they have created an opportunity for themselves by introducing chillers in the

market.

• Company is trying to open stores in universities.

• They can provide incentives to retailers to increase sales volume.

• Company can enter in ice cream products

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Threats

• Existing companies are increasing their product lines that can prove to be a threat in the

coming years.

• Company like Cadbury is giving more discounts to retailers as compared to distributors

due to which retailers prefer its products for sale.

• As compared to the local competitors, our distributor cost is very high. As Nestlé

confectionary Products has to maintain and obey the Nestlé standards.

• Some companies are competing on the basis of cost.

All Nestle Products Logo

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Chapter-05

Conclusion

5.1 Recommendations

Nestle must state in writing tha

World Health Assembly Resolut

state in writing that it will requir

into line with International Code

1. Nestle should expand its b

2. Nestle should more consc

3. Nestle should more attent

4. Nestle should improve its

5. Nestle should minimize it

5.2 CONCLUSION

Nestle has seen a strong start to

quickly in line with commodity

Nestlé there have also been sig

and packaging. Without comp

tonnes of packaging material be

and still advertises its formula a

products, resulting in increased

hat it accepts the international code and the sub

lutions are minimum requirements for every coun

ire changes to bring its Baby Food Marketing po

e and Resolutions.

ts business.

scious on its product-life cycle.

ntive on its advertising activities.

its product day by day.

its product price.

to 2008, partly thanks to its strategy of increasing

ity price increases. Through internal research and

significant advances in the environmental impact

promising product quality there was a reducti

between 1991 and 2008. Evidence shows that N

a as a risk-free substitute (or even a preferable al

d use.

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ubsequent relevant

untry. Nestle must

policy and practice

ing product prices

d development at

act of refrigerants

ction of 392 000

Nestlé advertised

alternative) to its

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5.3 Bibliography/References

• Corporate Governance report 2014

• The Nestlé Corporate Business Principles 2014

• Annual Report 2014

• Nestlé Management report 2014

• Nestlé Sustainability Review

• Nestlé People Development Review

• Corporate Business Principles

• Million Years of the Food Industry

• The Nestle Management and Leadership Principles

• Nestle Policy on the Environment

Internet

http://www.wikinvest.com/stock/Nestle_(NSRGY)

http://www.nestle.com/Pages/Nestle.aspx

http://www.conagrafoods.com/

http://www.danone.com/en/brands/business/fresh-dairy-products.html

http://www.hersheys.com/pure-products.aspx

http://www.habibfood.com/

http://www.olpers.com.pk/