Nestle Marketing Strategy & Marketing Mix (4Ps)

Marketing Strategy of Nestle analyses the brand with the marketing mix framework
which covers the 4Ps (Product, Price, Place, Promotion). There are several
marketing strategies like product innovation, pricing approach, promotion planning
etc. These business strategies, based on Nestle marketing mix, help the brand
succeed.

Nestle marketing strategy helps the brand/company to position itself competitively in

the market and achieve its business goals & objectives.

Let us start the Nestle Marketing Strategy & Mix to understand its product, pricing,
advertising & distribution strategies:
Nestle Product Strategy:
The product strategy and mix in Nestle marketing strategy can be explained as
follows:

Nestle is the world’s largest food company. It has around 8,000 brands with wide
range of products across the market, which form the backbone of its marketing mix
product strategy. But primarily it focuses on below products:-

• Dairy products:- There are many milk products that have been brought up such as
Nestle milk, Nestle slim and Nestle every day.

• Chocolates:- One of the most dominant segments for Nestle is chocolates. It has
popular products such as Kitkat, Munch, Éclairs, Polo and Milky Bar. It has also
come up with Alpino chocolate to target the gifting segment

• Beverages:- You all know about Nescafe. It is biggest coffee brand in the world. It
is owned by Nestle. It has worldwide distribution channel.

• Ready to Cook foods:- Nestle has come up with many ready to cook foods along
with products that help in cooking such Maggi Instant Noodles. Ready to cook
noodle- Maggi one of the biggest hit for Nestle has become a brand in its own with
different products like Maggi Pasta, Maggi sauce and many more.
Image: Wikimedia

Nestle Price/Pricing Strategy:

Below is the pricing strategy in Nestle marketing strategy:

Price of the products is based on the perceived quality of the product.

You could find in the market that the competitor products are less expensive as
compared to Nestle products belonging to same category. Take the example of
Maggi. It is priced some bit higher as compared to other instant noodles brands. It is
because the perceived value of the product is much better and customer can easily
pay some extra money to get a better quality. Very often you can see products with
varied sizes along with variation in cost. You can find Maggi packet of 16 pieces and
also single packet Maggie costing very low.

Mainly the pricing strategy for Nestle includes launching different SKU (Stock
Keeping Units) at various price points (line filling) to cater different customers. With
this, you can cater large customer base. We can also see they provide bulk
discounts in various stores like Walmart, Tesco etc. In the segment of chocolate,
they follow competitive pricing strategy. Prices are almost similar to Cadbury’s
products. Thus the pricing strategy in the marketing mix of Nestle is dependent upon
the competitor, product quality, geography being served etc.

Nestle Marketing Strategy comprises of not only its Marketing Mix, but also
segmentation, targeting, positoning, competition and analysis like SWOT. Also
read Nestle SWOT Analysis, STP & Competitors

Nestle Place & Distribution Strategy:

Following is the distribution strategy in the Nestle marketing mix:

Most of the sales and revenues for Nestle come from European countries. It is
almost 90 percent of the total sales. Typically, they follow a FMCG/CPG channel of
distribution. It also involves breaking the bulb. Bulk products come out of the factory
and are sent to C&F. It is a kind of warehouse where these products are kept. From
there, it sent to distributors and then to retailers. Now, consumers can buy the
products through retailers. They do come up with discounts and tactics to keep busy
this distribution channels. Maggi and Nescafe are the two products that are in great
demand. With the help of these two products, they can easily move their other
products. Thus, distributor can easily get discounts on stronger products, if they buy
some weaker products.

The main challenge comes in the distribution of chocolates as there are stronger
players in the market.

Nestle Promotion & Advertising Strategy:

The promotional and advertising strategy in the Nestle marketing strategy is as
follows:

Nestle has always come up with some unique marketing ideas when they need to
brand their products. The overall marketing mix promotional strategy for Nestle
focuses on extensive advertising and marketing for its individual brands and
products. When Nescafe came up in the market, they brought Nescafe tunes which
are still talked about it. They have always tried to push their brands to the
consumers. Let’s take the example of Maggi which they associated with 2 minute
snacks which can easily be prepared by the mothers. This made it pretty famous
among the kids and mothers. They have always focused on the quality and
nutritional values of the products.

Strong presence of Maggi and Nescafe at the ground levels has made them to push
in the sales and promotions. It has always followed above the line marketing
strategy. It is the strong product portfolio that makes it different from its competitors.
In case of Kitkat, a very famous nestle brand, Nestle has a clear marketing message
of Have a Break, have a Kitkat which has become associated with the brand. Nestle
uses all media like TV, hoardings, print, online ads etc. for its promotional strategy.
Thus marketing mix of Nestle is covered in the above points.

About Nestle:

Nestle – largest food company in terms of revenue is based out of Vaud,

Switzerland. It has a wide range of product line such baby foods, coffee, tea, dairy
products, Maggi and many more. It has presence in 194 countries having
approximate 450 factories with a head count of 339,000 people. It was founded in
the year 1866 by Henry Nestle and Nestle came into existence when it collaborated
with Anglo- Swiss Milk Company in the year 1905. Till now company has made many
mergers and acquisitions that have expanded its customer base and visibility in the
market. Nestle was ranked as No. 11 in the FT Global 500 2014 with the market
capitalization of US$ 240 billion.

This is why Nestle is considered as one of the strong FMCG companies across the
globe. One thing that differentiates it from other FMCG company is that it has a
strong product Line.