Marketing strategies of Nestle

2. Group Members
NAME ROLL NO
Laheem Malik B-21409
Muneeb Ahmed B-21469
Uneeb Malik B-21457
Mukarram Rana B-21466
Ali Hussein B-21451
Hafiz Anns Bin Zahoor B-21443

3. • Introduction to Nestlé
• Value Proposition
• 4 P’s
• ANSOFF matrix
• Marketing Segmentation
• Targeting Strategies
• Positioning Image
• Suggestion
Contents

4. Introduction
• Food and beverage company
• Headquartered in Switzerland
• Ranked #72 on the Fortune Global 500 in 2014
• Nestlé’s products include baby food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen food, pet
foods, and snacks.
• Twenty-nine of Nestlé’s brands have annual sales of over 1 billion
(about US$1.1 billion)
• Nestlé has 447 factories, operates in 194 countries, and employs around
339,000 people.

5. Name Nestle S.A
Logo
Industries served Food Processing
Geographic area served Worldwide
Headquarters Switzerland
Current CEO Paul Bulcke
Revenue CHF 92.2 Billion (2012)
Profit CHF 10.6 Billion (2012)
Employees 328000 (2012)
Main Competitor Unilever VN, Hershey Foods, Kraft Foods,
Cadbury Schweppes, Group Danoe

6. Value Proposition
• The value proposition of Nestlé is producing and delivering food products
with superior nutritious and health value.
• To build profitable customer relationship by delivering superior value.
• To provide the quality products to the target market.
• To provide such products those can increase targeted markets.

7. Marketing Mix
PProduct PPrice
PPromotionPPlace
Marketing
Mix

8. Product:
• 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 masala. 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.

9. Price:
Price of the products is based on the 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 Yippee, knoor noodles or wai -wai. It is because the
quality of the product is much better and customer can easily pay some extra
money to get a better quality. We can also see they provide bulk discounts in
various stores like big bazaar. 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.

10. Place:
Most of the sales and revenues for Nestle come from European countries. It is
almost 90 percent of the total sales. 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.

11. Promotion:
Nestle has always come up with some unique marketing ideas when they need to
brand their 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.It is the strong product portfolio that makes it
different from its competitors. Nestle uses all media like TV, hoardings, print,
online ads etc for its promotion.

12. ANSOFF Matrix

13. Market Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral

14. Geographic Segmentation
• Weather:
Nescafe Ice: Summer
Nescafe Classic: Winter

15. Demographic Segmentation
• Age:
Lectogen: Lactogen 1 is for babies less than 7 months
Lectogen 3 Is for babies below 12 months
Cerelac: For under 1 year baby
Nido: For children of 2 year

16. Demographic Segmentation
• Occupation:
Nescafe Classic: For those who work hard
• Income:
Nestle segmented their market based on customer's earnings in an
effective way

17. Psychographic Segmentation
Life style and personality:
• Nestle provides KIT KAT these people who really want to enjoy
chocolate.
• Nescafe 3 in 1 is for exclusively those customer’s who are really
busy and do not have enough time.

18. Behavioral Segmentation
Benefits:
Cerelac:
For those customers who want more benefits from the products
Cerelac contains vitamin, mineral and all nutritious elements for
babies

19. Target Marketing
Undifferentiated:
Nescafe 3 in 1 * Maggi noodles * Kit Kat & Nestle milk pack/fruita vitals
Differentiated:
• Koko Krunch, Nesquick: Chocolate milk who want to get taste of chocolate.
• Nescafe Ice: Cold coffee for the people in hot weather.
Concentrated:
Nestlé specializes in producing baby foods

20. Positioning Strategy
• Product Differentiation: Nestle brings a lot of product for
target different customers. As they provide 25 types of minerals in
Nido for children.
• Channel Differentiation: Nestle reach their products to
the customers through their expert market salesman and
transportation. So that their products are much available to their
respective customers.

21. Positioning Strategy
• Image differentiation: Nestlé’s logo is totally different
from its competitors that are greatly accepted by its customers.
• People differentiation: Nestle has a large number of
employees that are highly educated and trained.
• Service differentiation: better service for its respective
customers from its competitors, 24 hours hot line service

22. Suggestions
• Nestle should focus on developing more new products and exploring more new
markets to retain it’s leading position in the food industry of Pakistan.
• Nestle pure water need to expand their customer equity.
• More advertisement in print and electronic media.
• Prices are little bit higher so they should low their prices to increase their
customers.
• Nestle organizes many cultural and sports activities to their employees during
lunch break to motivate them.
• The company should offer small pack sizes in other to compete with other
competitors.
• Availability

23. ThankYou