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Executive Summary
Executive Summary
Nestlé's digital and social media marketing strategy is designed to harness the power of online
platforms to bolster brand visibility, cultivate consumer engagement, and boost sales.
Employing the SOSTAC framework—Situation, Objectives, Strategy, Tactics, Action, and Control
—this comprehensive approach is tailored to meet specific goals.
While Nestlé maintains a formidable presence in the global market, it faces mounting
competition and evolving consumer preferences. The dynamic digital landscape presents
opportunities to extend reach, forge deeper connections with audiences, and adapt to shifting
market dynamics.
2. Generate a 15% increase in online sales within the next fiscal year
To anchor the strategy, Nestlé will capitalize on the upcoming National Beverages Day with an
innovative campaign titled "Energizing the Future." This four-month online initiative will
empower consumers to contest in a fierce competition that align seamlessly with Nestlé's ethos
of 'Good Food, Good Life,' while driving towards the established objectives.
The tactics section of the plan will outline specific tools and strategies to be employed in
achieving the set objectives and realizing the overarching campaign vision. From influencer
partnerships to interactive social media campaigns, each tactic will be meticulously chosen to
drive engagement and deliver measurable results.
Nestlé stands as a global powerhouse in the food and beverage industry, with a
presence spanning 187 countries worldwide. With a dedicated workforce of 291,000
individuals, Nestlé is unwavering in its commitment to its core mission: harnessing the
potential of food to elevate life quality for all, today and for generations to come.
In August 2018, Nestlé established the Nestlé East and Southern Africa Region (ESAR),
encompassing 23 nations. These include South Africa, Botswana, Namibia, Lesotho,
Mauritius, Zimbabwe, Zambia, Eswatini, Kenya, Mozambique, Tanzania, Comoros,
Madagascar, Seychelles, Burundi, Rwanda, Somalia, Ethiopia, Uganda, Malawi, South
Sudan, Eritrea, and Djibouti. Within the ESAR region, Nestlé proudly employs a
workforce of 3,200 individuals.
Through Creating Shared Value, Nestlé endeavors to address societal needs while
simultaneously creating value for its business. By integrating social and environmental
considerations into its core business activities, Nestlé strives to foster meaningful
progress and contribute to the well-being of communities across the globe.
1.0 SITUATION ANALYSIS
Nestlé boasts a diverse portfolio of major consumer brands, including household names such as
Kit-Kat, Carnation, Nescafe, Stouffers, and Nestle Water, among others (Bhattacharya et al.,
2018). In 2010, a remarkable 30 of its brands surpassed $1 billion in earnings, solidifying
Nestlé's position as a powerhouse in the global food and beverage industry. With 42 percent of
its sales concentrated in North America, Nestlé exhibits exceptional geographical diversity,
offering a strategic advantage over competitors (Chakraborty & Sohal, 2017).
The company's well-established brands command significant market shares in key economies
such as the United States and Europe, further bolstering its competitive position. Notable
competitors like Unilever and Danone, also industry giants, present formidable challenges. In
2010, Unilever experienced a notable 26 percent growth in annual profits, driven by accelerated
sales in food and beverage categories such as frozen food, ice cream, tea-based beverages, and
cooking products (Gonzalez et al., 2019). Likewise, Danone reported a remarkable 38 percent
increase in earnings, fueled by heightened share prices and increased sales of yogurt products
(Smith & Johnson, 2020).
The following analysis shows the digital environment of Nestle in relation to its
competitors;
COMPANY WEBSITE
Nibbler score: 9.8
Accessibility: 9.9
Marketing: 10
Technology: 9.7
62 average
words per
page
Company
Likes Followers Followers Followers
Figure 2: Social Media Platform Analysis (Data Source: All respective social media
pages.)
Strengths:
Weaknesses:
1. Compliance and Regulation: The food and beverage industry is heavily regulated,
especially concerning advertising and marketing. Nestlé must navigate these
regulations carefully to ensure compliance, which can sometimes limit the
creativity and flexibility of its digital marketing campaigns.
2. Negative Public Perception: Nestlé has faced criticism in the past regarding its
business practices, such as water bottling controversies and concerns about
product ingredients. This negative perception can sometimes hinder the
effectiveness of its social media and digital marketing efforts.
Opportunities:
2. Data Analytics: The proliferation of digital technologies provides Nestlé with vast
amounts of data on consumer behavior and preferences. By leveraging advanced
analytics and AI tools, Nestlé can gain valuable insights to tailor its marketing
efforts and improve ROI.
Threats:
2. Data Privacy Concerns: Heightened concerns about data privacy and security can
impact Nestlé's ability to collect and utilize consumer data for targeted
marketing. Stricter regulations and consumer backlash against data misuse could
limit the effectiveness of its digital marketing strategies.
By addressing these factors in its social media and digital marketing strategies, Nestlé
can capitalize on its strengths, mitigate weaknesses, leverage opportunities, and
navigate potential threats more effectively.
2.0 Smart Objectives
The situational analysis shows that Facebook is the most engaging application and
Nestle has many followers. To take advantage of the popularity in Facebook and to gain
consumer attraction in Instagram, the objective is to increase followers of Facebook and
Instagram by 20% during Q2 and Q3 2024, which is 13.2M and 519.3K respectively.
Generate a 15% increase in online sales within the next fiscal year
With Nestle having the upper leverage on social media, all social media platform will be
weaponize to generate 15% increase in sales. With previous online sales amount to
90billion naira. Through this initiative the online sale is expected to rose to 103.5billion.
Increasing this to 25% will foster the improvement, interaction and engagement on the
digital platform of Nestle and also improve the quality time of consumer spend on the
sites. This gives them the opportunity to explore more product and also drive sales.
3.0 Strategy
3.1 Market segmentation refers to the process of dividing a market into distinct
groups of individuals with shared characteristics and preferences. These groups are
targeted based on various factors such as demographics, geography, psychographics,
and behavior.
There is a mind map about Nestlé market segmentation, targeting, and positioning
This concept will be encapsulated by the slogan "Cup of Energy," which will be
prominently featured across all of Nestlé's digital channels. The event will be structured
as an online festival, leveraging the national Beverage Day as a focal point. "Energizing
the Future" will serve as an educational platform, offering insights into various aspects
of beverages, including historical significance, sourcing methods, preparation
techniques, and Nestlé's product offerings.
The initiative will employ a range of tactics to engage the audience, including a "Did you
Know Series," influencer marketing partnerships, competitions contest, and targeted
advertising campaigns. These strategies will be deployed strategically to maximize
reach, drive engagement, and foster a deeper connection with consumers.
4.0 Tactics
RACE is a practical planning framework for marketing. It gives marketers a more
structured way of planning and managing their activities. Developed by Smart Insights’
Dave Chaffey, it’s also an acronym for the 4 stages of the marketing funnel: Reach, Act,
Convert, and Engage.
For the purposes of our discussion, we’ll talk about RACE with a focus on digital
marketing strategy. However, note that RACE wasn’t designed solely for that.
In the fast-paced realm of digital marketing, standing out is key. Did You Know mode
and moments offer a unique way to engage customers with bite-sized, informative
content that sparks curiosity and conversation.
4.3 Competition
Hosting a contest presents an effective method to raise awareness of a product or
brand. Utilizing platforms like Nestlé's Facebook page with built-in sharing features
encourages contestants to spread the word among their social circles. As awareness
grows and subscriber numbers increase, the natural progression is towards boosting
sales. Contests serve as a means to convert leads into loyal customers, particularly for
contest winners who have experienced the product firsthand. Offering the product as a
prize rather than an unrelated item like an iPad increases the likelihood of winners
becoming repeat customers if the product meets their expectations.
4.4 Advertising Campaign This display ad concept is tailored to Nestlé's target demographic:
beverage enthusiasts residing in both urban and rural areas, aged 22 to 60. The ad aims to
captivate attention with a visually striking image of a steaming cup of Milo, emphasizing the
irresistible flavor of Nestlé Milo.
Ad Title: Celebrate national Beverage Day with Nestlé's "Energizing the Future" Festival
Ad Copy: Embrace the spirit of national Beverage Day with Nestlé! Dive into a world of flavor
with our "Cup of Energy" and join us online on May 6, 2024, for an unforgettable celebration.
Discover our exclusive Beverage flavor, engage in thrilling games and contests, and seize the
chance to win fantastic prizes! Don't miss out on the excitement – be part of the festivities with
Nestlé!
Ad Visual: The ad will feature a vibrant and captivating image showcasing a variety of Milo
products arranged in a festive display, prominently featuring the Nestlé logo.
Figure 9: (Ads Image)
The action plan will kick off with the did you know series, with exciting content about
milo to engage on starting from Feb. follow by the signing of influencer with a huge
number of follows to back up the campaign with followership, promotion activities will
start in March till May before every activity is ended on the part of influencer.
Lunching of competition will also start in February where by online user will compete for
a prize and raffle winner will be pick by May.
Billboard will be mounted in strategic area targeting it audience with nice picture quality
and caption to catch the eye of its audience.
6.0 Control
The final stage of the SOSTAC model for Nestlé's social media and digital marketing plan
involves "Control" or "Control and Feedback." In this stage, Nestlé will monitor and
evaluate the performance of its digital marketing efforts to ensure they align with the
objectives set in the earlier stages and make necessary adjustments for improvement.
Here's how Nestlé can execute the Control stage:
1. Key Performance Indicators (KPIs): Define and measure relevant KPIs such as
engagement rates, reach, conversion rates, website traffic, sales figures, customer
satisfaction scores, and brand sentiment. These metrics will help Nestlé assess the
effectiveness of its digital marketing activities and track progress towards achieving its
objectives.
2. Analytics and Reporting: Utilize digital analytics tools to gather data on the
performance of various digital marketing channels and campaigns. Analyze the data
regularly to identify trends, patterns, and areas for improvement. Generate
comprehensive reports to provide insights into the effectiveness of different strategies
and tactics.
3. Regular Review Meetings: Hold regular review meetings with the digital marketing
team and relevant stakeholders to discuss performance metrics, review campaign results,
and evaluate the overall effectiveness of the digital marketing plan. Use these meetings
to identify successes, challenges, and opportunities for optimization.
The major limitations identified in this study is the daily changing data of the analysis
done in the competitor section. In conclusion, Nestlé has demonstrated a commitment
to leveraging digital marketing and social media to enhance brand visibility, engage
consumers, and drive sales. The company has utilized a multi-channel approach,
spanning websites, e-commerce platforms, social media channels, mobile apps, and
more, to connect with consumers across various touchpoints.
Nestlé's digital marketing and social media efforts have enabled the company to reach
wider audiences, foster deeper relationships with consumers, and adapt to the evolving
preferences and behaviors of modern consumers. By creating relevant, engaging
content and embracing transparency, authenticity, and sustainability, Nestlé has sought
to resonate with its target audience and differentiate itself in a highly competitive digital
landscape.
Despite facing challenges such as regulatory restrictions, brand perception issues, and
algorithm changes, Nestlé continues to innovate and evolve its digital marketing
strategies. The company's ongoing focus on monitoring, evaluating, and optimizing its
digital initiatives ensures that it remains agile and responsive to market dynamics and
consumer feedback.
Looking ahead, Nestlé is poised to further capitalize on emerging trends and
technologies in digital marketing and social media, while maintaining a strong
commitment to ethical and responsible marketing practices. By staying attuned to
consumer preferences, embracing innovation, and adapting to changing market
conditions, Nestlé is well-positioned to drive continued growth and success in the
digital age.
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