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PROJECT REPORT ON
A STUDY REPORT ON MARKETING STRATEGIES USED BY
NESTLE
SUBMITTED
IN FULFILMENT OF REQUIREMENT FOR THE AWARD OF
DEGREE OF MASTERS OF COMMERCE IN BANKING AND
FINANCE
SUBMITTED BY
MS. SAILEE TUSHAR BHOLE
ROLL NO. 03
MCOM (BANKING & FINANCE)
PART 2
PROJECT GUIDE
PROF. DR.Mrs.SMITA BHIDE
SUBMITTED TO
UNIVERSITY OF MUMBAI
(2015-16)
VPMS
K. G.JOSHI COLLEGE OF ARTS &N.G. BEDEKAR COLLEGE
OF COMMERCE
DECLARATION
I have
A STUDY
SIGNATURE
PLACE:
DATE:
ACKNOWLEDGEMET
A STUDY REPORT ON
STRATEGIES
USED
BY
NESTLE
TABLE OF CONTENT
SR NO.
PARTICULARS
PAGE NO.
INTRODUCTION TO NESTLE.
5
6-8
1.1
HISTORY
9-10
1.2
COMPANY PROFILE.
1.3
12
1.4
KEY OBJECTIVE
13-14
1.5
CORPORATE CULTURE
15
1.6
BUSINESS LINE
16-17
MARKETING STRATEGY
18
2.1
DEFINATION AND
MEANING.
19
2.2
TYPE OF MARKETING
STRATEGIES
20-25
2.3
IMPORTANCE OF
MARKETING STRATEGY.
26-28
MARKETING STRATEGY
USED BY NESTLE
29
3.1
MARKETING MIX
30-33
3.2
MARKETING STRATEGY
34-39
CONCLUSION
40
BIBLIOGRAPHY.
41
Chapter One.
Introduction
To
1.1 HISTORYNestl S.A. is a Swiss transnational food and drink company headquartered
in Vevey, Vaud, Switzerland. It is the largest food
company in the world measured by revenues, and
ranked #72 on the Fortune Global 500 in 2014.
Nestls products include baby food, medical
food, bottled water, breakfast
cereals, coffee, tea, confectionery, dairy products, icecream, frozen-food, pet foods & snacks. Twenty-nine of
Nestls brands have annual sales of over CHF1 billion
(aboutUS$1.1 billion), including Nespresso, Nescaf, Kit
Kat, Smarties, Nesquik, Stouffers, Vittel, and Maggi.
Nestl has 447 factories, operates in 194 countries and
employs around 339,000 people. It is one of the main
share holders of LOreal, the worlds largest
cosmetics company.
Nestl was formed in 1905 by the merger of the AngloSwiss Milk Company, established in 1866 by brothers
George Page and Charles Page, and Farine Lacte Henri
Nestl, founded in 1866 by Henri Nestl (born Heinrich
Nestle). 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. The company has made a
number of corporate acquisitions, including Crosse &
Blackwell in 1950, Findus in 1963, Libby's in 1971,
Rowntree Mackintosh in 1988, and Gerber in 2007.
Nestles mission To b e i n e v e r y w a y t h e l e a d i n g
c o m p a n y i n t h e I n d i a n f o o d industry and
a good corporate citizen by providing our
consumers with s u p e r i o r q u a l i t y p r o d u c t s ,
o u r sh are h ol d e rs w i th r a p i d g r o w t h &
f a i r re t u r n s a n d o u r e m p l o ye e s w i th a c h a
l l e n g i n g a n d s a ti sf yi n g w o r k
environment.To translate this spirit into a
planned and measurable process, Nestle has
set up key objectives across all divisions.
Finance
To maintain profi t levels above the average for the
food industry in India. The Business Excellence and
Common Application (BECA) initiative essentially
translates the spirit of the Journey towards
excellence into an organised, systematic and
measurable approach. The aim is to aid the
achievements of the companys key objectives of
rapid growth by
ensuring that all operations incorporate the spirit of me
aningfulplanning, effective cost control and efficient
implementation. BECA is about planned improvement
in everything we do .
WATER
Nestl Pure Life, Nestl Aquarel, Perrier, Vittel, Contrex, S.Pellegrino,Acqua
Panna, Levissima, Arrowhead, Poland Spring, Deer Park,
Ozarka,Hpar, Ice Mountain, Zephyrhills.
OTHER BEVERAGES
Nestea, Nesquik, Nescau, Milo, Carnation, Libbys, Caro,
Nestomalt,Nestl.
SHELF STABLE
Nestl Nido, Nespray, Ninho, Carnation, Milkmaid, La Lechera,
Moa,Klim, Gloria, Svelty, Molico, Nestl Omega Plus, Bear Brand,
Coffee-Mate.
CHILLED.
Nestl Sveltesse, La Laitire, La Lechera, Ski, Yoco,
Svelty, Molico, LC1,Chiquitin.
FOOD SERVICES.
CHAPTER 2.
MARKETING
STRATEGIES.
B2B Marketing
Business-to-business marketing is a marketing practice of individuals or
organizations (including commercial businesses, governments, and other
institutions). It allows businesses to sell products or services to other
companies or organizations that in turn resell the same products or services,
use them to augment their own products or services, or use them to support
their internal operations. International Business Machines is a well known B2B
marketer. IBMs business has grown because taking a very intelligent
approach at marketing their products to other business and governments
around the world.
B2C Marketing
The ultimate goal of B2C marketing (business-to-consumer marketing) is to
convert shoppers into buyers as aggressively and consistently as possible.
B2C marketers employ merchandising activities like coupons, displays, store
fronts (both real and online) and special offers to entice the target market to
buy. B2C marketing campaigns are focused on a transaction, are shorter in
duration, and need to capture the customers interest immediately. These
campaigns often offer special deals, discounts, or vouchers that can be used
both online and in the store.
Mobile Marketing
Marketing on or with a mobile device, such as a smart phone. Mobile
marketing can provide customers with time and location sensitive,
personalized information that promotes goods, services, and ideas.Here is a
Telemarketing
I know what you are thinking, you hate telemarketers. You are not alone in
your feelings. However, telemarketing can play an important part of selling
your products to consumers and it must not be overlooked as many
companies rely on it to connect with customers. Telemarketing (sometimes
known as inside sales, or telesales in the UK and Ireland) is a method of direct
marketing in which a salesperson solicits prospective customers to buy
products or services, either over the phone or through a subsequent face to
face or Web conferencing appointment scheduled during the call.
Telemarketing can also include recorded sales pitches programmed to be
played over the phone via automatic dialing. Telemarketing has come under
fire in recent years, being viewed as an annoyance by many.
Promotional Marketing
Promotional marketing is a business marketing strategy designed to stimulate
a customer to take action towards a buying decision. Promotional marketing is
a technique that includes various incentives to buy, such as:
Sampling: Try before you buy. Giving away product might appear profitlimiting, but consider how giving your customers a small taste can lead to a
big purchase. Retail genius Publix supermarkets share samples of their
award-winning key lime pie not because people question the goodness of the
pie but to get their customers to buy more.
Cause Marketing
Finding a causes both your customers and your company cares about can
create magic for your business. This requires internal knowledge about what
your organisation cares about and who they want to help in the world. A good
example of this is Toms Shoes. Instead of doing the traditional buy one get
one free promotion, Toms built a strong customer following and reputation for
giving back by giving away a free pair of shoes to someone in need for every
shoe purchase made by their customers
Relationship Marketing
Many companies focus on building relationships with their customers instead
of always exclusive trying to sell them something (transactional marketing).
Customers who love your brand more will also spend more money with your
brand. Many traditional retailers have found this to be true. Walgreens has
seen that customers who buy from all of their purchasing channels (store,
web, mobile, etc) buy up to six times more than the average customer that
only buys in their store.
Transactional Marketing
Driving sales can be challenging, especially for retailers that have to
consistently sell products in high volume to consumers. In order to stay with
the demands of investors, retailers have to encourage consumers to buy using
coupons, discounts, liquidations, and sales events. High volume big-box
retailers like Target are constantly running promotional events in order to get
interested consumers into their stores.
Scarcity Marketing
In some markets its important to control how much product is available at one
time. In many cases this is done because of the difficulty of acquiring raw
materials or higher quality of the product. A company may choose to make
their products accessible to only a few customers. Rolls-Royces release of
theirChinese edition car called Phantom sold quickly. While the cost of the car
was higher than most cars the scarcity drove the desire and the price.
Viral Marketing
Cult Brand marketers are constantly creating new business ideas that keep
their products in the heart and minds of the global consumer. Each time a new
product is created, customers have to be given a reason to dream about their
future purchase. Sometimes marketers of Cult Brands hit on something so
great that people cant help but share with others. Getting your customers
talking about your products and services is very important to growing
awareness for your business.
Online Marketing
As commerce has propagated to the Internet, a new form of marketing has
emerged. From online banners to those annoying pop ups, online marketers
have attempted to get their customers attention any way they can. Most online
strategic marketing efforts today are a mix of growth hacking strategies ( A/B
testing taken to the max) and a variety of awareness tactics that drive
Offline Marketing
With mass adoption of the Internet, many companies are finding new ways of
integrating offline marketing with new technologies to create more engaging
customer experiences. The Coca-Cola company has create vending
machines that invite customers to hug them. This continues to tie the CocaCola brand to the core emotion of happiness, but also invite customers to
experience the real product offline.
Niche Marketing
Finding a niche and filling it could be described as the secret recipe for growth
in over-crowded marketplaces. Take the shoe business, for example. There is
a great demand for shoes in the world and so many top companies have
evolved to satisfy most of the immediate shoe needs in the marketplace. The
shoe space might seem crowded, but shoe manufacturing
company Vans noticed an underserved customer: the skater. By focusing on
this niche market Vans has developed a thriving business.
MARKETING STRATEGIES IN AN
ORGANISATION.
Because one aspect of a marketing plan affects all of
the others, coordinating your activities is critical to
eliminating interference and maximizing your profits. A
marketing strategy looks at all of the areas of your
selling activities and helps each one support the next,
making sure all of your departments are aware of what
each is doing. Understanding how to create an
integrated marketing strategy will help you make better
individual decisions regarding specific marketing
tactics.
Streamlines Product Development.
Organizational Impact.
sales initiatives.
Chapter 3
Marketing
strategy used
by Nestle.
Price
The price is dependent on the market of each individual
products. For example, Nescafe and Maggi being the
clear leaders are priced with higher margins for the
company as compared to competition. This is because
the product quality is good enough and a bit of
skimming price will not cause the customer to switch
brands.
The strength of pricing for Nestle comes from its
packaging or consumption based pricing. For Nescafe
as well as Maggi, Nestle offers a lot of sizes and
package options. In supermarkets, you can even find a
16 packet maggi whereas in small retail shops, you can
find 5 rs maggi.
Thus, with the variety available, customer can make his
own choice based on his consumption. In other
products like Kitkat and Munch, due to tough
competition from other companies, Nestle offers
competitive pricing. You will find that nestle will be
similar priced to many of Cadburys Products in the
chocolate segment.
Promotion.
One of the most widely known tunes is the Nescafe
tune. It was one of the best advertising campaigns
and was launched at least 2 decades back. However,
that campaign brought Nescafe strongly in the
market.
On the other hand, Nestles brand was pushed by the
excellent product quality of Maggi and the witty and
innovative campaigns of Maggi. Where Nescafe
focuses on value and the good things in life, Maggi
focuses on moments you had with your Maggi. The
Place.
Manufacturing >> C & F agent >> Distributors
1. GEOGRAPHICAL SEGMENTATION.
Nestle is the worlds largest food company that did
marketing segmentation very well. They also base on
Ruralareasegmentation.
Nestle also considers the rural area segmentation.
For example, in the city supper shopsof Asia keeps
Maggi /Nido milk and in rural areas nestle supplies a
much less product like Maggi or Nido milk.
2. DEMOGRAPHIC SEGMENTATION.
1)Age.
Nestle never offers the same product for the people
whose is 30 and whose age is 13. For example, nestle
offers Nescafe coffee for adult people and offering Milo
for children. Coffee for adult Milo for children
3)Income:
The people with small income can buy nestle product.
They produce that product which will save money. Like,
Nescafe coffee has a mini pack for instant coffee which
saves the money of limited income people.
3. Psychographic Segmentation
and personality.
Lifestyle and personality:Nestle Breakfast Cereals is the best choice for busy people
and Nescafe also help them more alert in working. Besides,
there are some people who love to eat can eat every time
and everywhere. Confectionery such as Smartest, Aero,
Butterfinger, and Orion can be called their best friends.
4 Behavioural segmentation.
Behavioral segmentation base on the different in knowledge,
Nestle offers us the best quality, taste and price for baby food,
coffee and chocolate. Customers may buy other companies baby
food/coffee/chocolate, but no other company can provide the
quality and flavor that Nestle provides.
Readiness stage:-
User Status:A market has all types of customers. Nestle tries to measure user
status to take more customers into their segment, so that all
types of customer get opportunity to buy the product of Nestle.
All the following criteria are followed by the Nestle Company
for their segmentation.
5. Market targeting.
Market segmentation reveals the firms market segment
.Right size and growth:Nestle company collets information about different type of
customer from market segmentation. Then analyze to select a
target market. They complete this task considering the size and
growth of the target market. Nestle mostly focus on the
geographic and demographic segmentation because, their
product is made based on this two segments.
Structural Attractiveness:Most of the companies have their similar competitors. Nestle
also considers its competitors so that, they can attract their target
market. They try to make a better product in a good price then
their competitors. But now a days there no close competitor of
nestle company. Nestle is also concern about the buyers power
and the suppliers power. To achieve the target market Nestle
need to satisfy the buyers as well as the suppliers. To avoid the
bargaining problem that is created by the buyers, Nestle
companies all products are at a fixed price. There is another
problem of substitute product. But because of the high quality
and affordability Nestle dont need to be worried about that
problem.
CONCLUSION.
Nestl
Indias
objective
is
to
manufacture and market the companys
products in such a way so as to create
value that can be sustained over the
long term for consumers, shareholders,
employees Nestle aims to create value
for consumers that can be sustained
over the long term by offering a wide
variety of high quality, safe food
products at affordable prices.
The company continuously focuses its
efforts to better understand the
changing lifestyles of modern India and
anticipate consumer needs in order to
provide convenience, taste, nutrition
and wellness through its product
offerings.
BIBLIOGRAPHY
NESTLE INDIA .
WIKIPEDIA
ECONOMICS TIME