Nestle paper

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Nestle paper

  1. 1. Nestlé     Nestlé started from small beginnings by pharmacist Henri Nestlé, to global enterprise. As Nestlé had spanned their reach across the world, they became one of the top 40 largest corporations with an almost quarter million people working for Nestlé in 83 countries. With the expansion of their company, they accommodate growth by expanding their product line with products ranging from dog food to coffee, health food to junk food. Nestlé like many other huge companies that has amassed global markets is not free from problems, specifically in advertising, food controversy, and socio-economic issues. With Nestlé having such huge success in the market, it is more common than not to see any one individual target with some form of Nestlé product in their household. With effective product branding and advertising, Nestlé still remains one of the titanic corporations, which no doubt will still grow its product line and its global reach, growing only to feed future growth as it has done so in the past. Our personal observation of the brand is its genuine approach towards family orientation. Nestlé does treat its employees quite well and has various career opportunities in the factories or corporate worlds. Nestlé is very involved with the community (contributing to the brand position). They are members of the Concerned Children Advertisers, Kids Help Phone, Food Banks Canada and United Way.  Nestléʼs method of handling their products and business is outstanding. The industryʼs leaders pushing their employees to be better knowledge in Nestléʼs foundation and policies work well in terms of a better company. The brands themselves are presented well but with the reported issues of false advertising, people will be on the fence with what is true and whatʼs exaggerated. As consumers donʼt notice the goals and improvements from the company, the products are considered very popular and are on high demand from consumers all over the world. The evolution of their advertising first originated in Switzerland, expanding up to 500 factories world wide in over 100 countries. The company has been creating programs and interactive practices to improve efficiency within the work ethics (programs such as FitNes and inventory software). The growth of the company in the early 1900 was healthy as Nestlé merged and teamed up with multiple companies diversifying its variety of foods. Taken this into consideration, Nestlé has always been a family oriented company. The two common themes for any Nestlé product are togetherness, and humour. Many products advertised, were advertised towards a youth audience. Common products that are advertised are Nestlé Chocolate products such as
  2. 2. Aero, Kit Kat, Smarties and Tollhouse Chocolate Morsels. Other well advertised products include Nestea, and Delissio. Brands such as Smarties, Kit Kat and Nestea have had long-lasting brand campaigns that have resurfaced every few years with new twists added. A re-launch is also planned for the Milky-Bar brand in the near future. The Key Challenges for Nestlé is that it has been connected with globalizing the role of multinationals and nutritional crisis. Despite Nestléʼs success, one fundamental challenge would have to be dealt with in the coming years: revitalizing the groupʼs organic growth in a maturing market…(Hitt, Ireland & Hoskisson, 2009, p.261) They were reputed to be exploitive of farmers, mainly speaking, coffee bean farmers of mainly in the Philippines. Projecting that this is not the case has been difficult where Nestlé pays the farmers in cash, making it easier for farmers to deliver coffee beans at different stations. They induce trust with farmers and then make a profit. All supplies are trusted equally. Another challenge for Nestlé was health issues, including pure or processed foods. Nestlé would use genetically altered crops, making people direct their attention away from Nestlé brands. Their most successful efforts have been proceeding with a brand extension in an area where they thought they might be able to leverage the brand and make some money also at that time. They decided to enter the Ketchup market with the brand “Maggi”. Finally in 1985, when Maggi Noodle, had already notched a 4000 ton business; and, thus ensured the establishment of the brand “Maggi”, Nestlé launched their Maggi Ketchup and this brand has long since been a profitable brand. What is perhaps even more satisfying to Nestlé is that the ʻMaggiʼ brand has now become a profitable brand. Thus the investment that Nestlé put in, for establishing the ʻMaggiʼ brand through its 2-minute noodles, paid handsome dividends, through its extension in Maggi ketchup and sauces…(Choudhury, 2001, p.100) Nestlé held its position as the top selling food market in the world and has the largest diverse selection of foods in all of the food industry. Nestléʼs water brands were awarded by the Keep America Beautiful Inc for being committed to producing lightweight and renewable resources for their bottle. Beginning in 1970, Nestlé embarked on a string of expensive acquisitions – among them Libby, Stouffer, and Carnation – that gave the Swiss company instant leadership in dozens of product categories and burnished its image as a corporate big spender willing to buy its way to global dominance…(Roberts, 2008, p. 34) Their failures, major flaws and mistakes were present when the Food and Drug Administration (FDA) warns consumers not to eat Nestlé products regarding false claims such as labeling their products for having little to no fat content, nuts or even healthy nutrition. The FDA consistently warns Nestlé to list more specifically about their content in their labels such as the “no sugar added” in Nestléʼs Juicy Juice beverages, and that their baby products should not be served to
  3. 3. infants under two years old. After the issue regarding misleading infant labels, Nestlé began to target pregnant mothers with advertisement campaign “Whatʼs good for mom … is better for baby”. Shropshire County Council sued Nestlé because the label for shredded wheat cereal would reduce heart disease. Later, they authorized all food markets to have scientific references that prove their claims. Nestlé approached these controversial problems by advertising more specifically about what their products contain. From 1997 to 2002, theyʼve closed over 165 factories to create a method called Target 2004+ to improve supply and demand as well as practicing more methods and concepts to sell products. After the controversy of the baby products, Nestlé gave free formula samples to mothers, health care workers and hospitals. Our opinion of overall success in their communication design is the structure of their communication within their company has been impressive as they consistently develop better methods to improve efficiency treating employees like members of a family. Although not many consumers know whatʼs behind the industry, a lot of issues are brought up because of the care of their products like the cookie dough forming E. coli at which would have been damaging to their brand image if stayed out for too long on the grocery shelves. These kinds of issues should be properly advertised in which will follow up with better profits and happier consumers. Many of the problems found in their products are solved behind covers in which may not be the best choice in our perspective. A strategy to increase awareness is to inform the issue, than market the solution so it may appear the main focus will point to the positive side. Nestléʼs "Good Food, Good Life" motto is well known, and most of their brands are well known. Most of the brands well known in the market were revealed to be Nestlé product at which would come as a surprise as Nestlé branding would appear not to be present on any of the packaging. The communication of the brand on its own is successful, but as a whole company, including brands such as Stouffers and Haagan-Das, they need to be advertised more as a part of the Nestlé brand to diversify Nestlé further as a trustworthy brand. What Nestlé has always emphasized, however, is the importance of communication in its global programmes. Appropriate communication is the tie that binds. Inadequate attention accorded to the process and content of communication by other global companies has created problems when they constituted global teams… (Jacob, 2003, p.67) Nestlé will continue to dominate the market with their quality controlled product lines. Their contribution to the chocolate market has position them, alongside other major brands like Cadbury and Hershey who are very narrow in their brand product lines therefore making Nestlé one of the leading food brands globally. Aside from their record success in food perishables like chocolate, coffee, frozen foods and pet food, they like many other companies do experience glitches in their marketing campaign efforts and brand distribution. Unlike a variety of other brand
  4. 4. companies in the market, Nestlé is very cautious with their brand distribution and will continue to acquire many other brands to achieve a successful dominance in new and available markets where necessary.

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