Marketing Strategy of Nestle Student`s

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MarketingStrategy of Nestle

MarketingStrategy of Nestle

Question1 a)


Themodern view of marketing considers it as the activity concerning the4Ps that includes product, place, price, and promotion. The mostsuccessful organizations are those that are capable of executing theappropriate marketing mix. The 4 Ps strategy is customer oriented andtherefore, it helps the entity is delivering the best of theirservices to satisfy the customers’ needs and wants.

Marketingmix 4Ps Product Nestle

Themarketing mix of Nestle specifies the 4Ps that describes thestrategic position of their products in the industry. In theapplication of the marketing mix, Nestle stresses on mixing ofvarious factors that facilitate value creation to both theorganization and the consumers. The mix is as described below

Product– is the tangible or intangible that are designed to meet theconsumers’ needs and wants. Nestle offers a wide range of productline that comprises of food, health, and nutrition to its customers.The products are also offered in various categories to satisfy thespecific needs of the market. The products of Nestle Organizationinclude Breakfast cereals, chocolate, ice creams, coffee, dairyproducts, pet care, soft drinks and other nutrition and healthproducts. Nestle also emphasizes on various product attributes suchas quality, design, brand name and packaging. Products attributesare most essential in ensuring value creation to the customers. Theorganization has captivated a loyal customer relationship focus andhence ensuring attainment of high competitive advantage. Nestles’mission is also aiming at promising their customers ‘good food forgood health’ by meeting the standards of quality.

Promotion- refers process of disseminating relevant product information to thecustomers. Nestle Organization facilitate the promotion functionthrough advertising, public relation, and users’ training. Everybusiness must also acknowledge the importance of the productpromotion in gaining and maintaining a large market share. Promotionactivity should not depend on the demand but with the phase of theproduct life cycle. Nestle uses promotion mix with a specific blendof various tools of enhancing value creation to their customers.

Place– this refers to making the products available and accessible tothe customers wherever they are demanded. Nestle emphasis on makingtheir products and services available in the right place, at theright time and in the right quantity. The firm carries outappropriate market research to forecast the future demand and ensurethat their products are availed to their customers when demanded. Theorganization also has a various retail outlet to ensure accessibilityof their products.

Price– this is another element in the Nestles marketing mix, Pricingstrategy is vital to the firm since it is only the component thatgenerates revenue while all others are costs. It is defined as thevalue of a product that a firm gets in return of the entire effortundertaken to offer the product or service. Nestle do not set singlepricing but its pricing strategies across various market segments.

Question1 b)

Consumersand business markets

Consumermarket consists of potential buyers of a product or service inproportion to a total population in the industry. Quantitativetechniques are therefore used in measuring the proportion of thebuyers to the entire population in the industry. On the other hand,business market measures the proportion of the buyers in a specificgeographical area or market segment. Most business markets areassociated with smaller population unlike in the consumer marketwhich requires a survey on the entire industry. In analyzing theconsumer market, Nestle Organization focuses on the performance ofits competitors in the catering industry. For effective analysis ofthe consumer market, information asymmetry is much essential as itprovides a good picture of how the competitors are performing.

Question2 a)

Externalforces at Nestle

Externalfactors refers to the uncontrollable elements affecting the generalperformance of the firm. These factors are also referred to as themacro environment of the organization. These factors includecultural environment, political environment, technologicalenvironment, economic environment and demographic environment.Organization does not operate in a vacuum, and therefore, there willalways be both external and internal forces influencing theoperations of the firm. Successful firms must be flexible enough toaccommodate the changes in the macro environment. SWOT analysis isalso important as it helps the firm in coping up with the outwardforces exerted to the operations. SWOT analysis will help themanagement in identifying and maximizing its strengths andopportunities to minimize the challenges imposed by their weaknessand threats.

Question2 b)

SWOTanalysis of Nestle


  • Product differentiation

  • Research and development capabilities

  • Competence in mergers and acquisition

  • Effective distribution channel


  • Inconsistent in food quality

  • Delayed strategy implementation


  • Campaigns opposing junk food

  • Food contamination

  • Stiff competition

  • Low food prices in the industry


  • Continuous increasing demand for healthier food.

  • Availability of joint ventures.


Fromthe above SWOT analysis, Nestle should be in a position of utilizingthe identified strengths and opportunities in creating a highcompetitive advantage. Even though there is perceived stiffcompetition, Nestle is capable of applying product differentiation tobecome more competitive in the industry.