SlideShare a Scribd company logo
1 of 11
A DIGITAL MARKETING STRATEGY FOR NESTLE
ORGANISATIONAL PROFILE
Nestlé Ghana Limited started business in Ghana in 1957 under the trading name of Nestlé Products
(Gh) Limited with the importation of Nestlé products such as milk and chocolates. In 1968, it was
incorporated as Food Specialties (Gh) Limited to manufacture and market locally well known
Nestlé brands. The company became Nestlé Ghana Limited in 1987. In 1971 the production of the
IDEAL Milk and MILO started at the Tema Factory. The factory has since been further developed
and now also produces CARNATION milks, CHOCOLIM, CHOCOMILO CEREVITA,
CERELAC and NESCAFÉ 3 in 1. These products are not only produced for Ghana but also
exported across West Africa.
The Company has invested some 130 billion cedis in 2004 and 2005 to increase its production
capacity, particularly in the area of cocoa-based beverages, and to construct modern and efficient
distribution facilities next to the factory in Tema. Its main products include baby food, bottled
water, breakfast cereals, coffee, teas, confectionery, dairy products, ice cream, frozen food, pet
foods, and snacks. Its most well-known brands are Nespresso, Nescafe, KitKat, Smarty's,
Nesquick, Stouffers, Vittel, and Maggi
SWOT FRAMEWORK:
STRENGTHS:
Largest Food Company – In 2020, Nestle maintained its position as the world’s largest food
company with the sales of its Hot Pockets, Stouffer’s, DiGiorno, and Nespresso holding the top
seat in the industry.
Reputed brand name – Nestle is the most renowned brand in the world. It has developed a
respected reputation in the food and beverages sector offering high-quality products for everyday
use across the globe.
Globally recognized brand – Through its effective advertising and branding strategies, it has
created significant awareness and developed a successful brand image around the world.
According to the Fortune Global 500, Nestle is among the world’s largest corporations and is
ranked at 69th position in 2018 list.
Highly diversified company – Nestle sells its products in 189 countries Instead of relying on a
few markets, it has captured the sizeable market in a lot of developed and developing countries to
earn most of its revenue. Its leading markets include the US, China, France, and Brazil. In 2020,
its sales increased by 30% and had to increase production in nearly 70 factories to meet the
demand.
World’s most valuable brand – According to 2018 Forbes Global, Nestle is among the top as the
world’s most valuable company in regards to highest revenue, profits, assets, and market value. In
2020, Nestle is ranked the 50th most valuable brand in the world.
Extensive product portfolio – Nestle owns more than 2000 brands globally and renovated over
8000 products for nutrition and health considerations, according to its Annual Review 2017. It is
one of the worlds’ biggest companies with the broadest product portfolio. In 2020, Nestle owns
some of the companies offering pet food, frozen foods, baby food, vitamins, and many more. It
also has a big Starbucks licensing deal.
Large distribution system– Nestle owns an extensive and diversified distribution system that is
not only penetrated in urban areas but also rural regions. It has adapted local distribution methods
and decentralized approach to run the business efficiently in respective countries. Nestle has strong
relationships with suppliers, retailers, vendors, and distributors.
WEAKNESSES:
Price fluctuations by retail giants – Nestlé’s grocery sales are achieved majorly through huge
retail giants like Shoprite, Game. Any reduction or increase in prices by these retailers can affect
Nestlé’s sales.
Span of control and organizational structure – Nestlé is organized in a matrix structure. That
means a large number of brands are under the same umbrella group which makes it somewhat
challenging to manage the large Administrating such a large number of individual brands can often
result in discord and conflict of interest.
Water controversy – Recently, Nestle was accused of illegally pumping millions of liters of
water in 6 nations where residents are deprived of drinking water.
Social criticisms – Nestle has become a target of media attention many times. The claim to
privatize water, misleading labeling, and a lawsuit for chocolate making using child and slave
labor are some of the examples that have to weaken its market reputation.
Unhealthy Products – Nestle’s history consists of a long list of products that threatened life
consumers. Consumers distrust companies that have sold unhealthy products in the past.
THREATS:
Water scarcity – Nestlé’s production is highly dependent on water usage. Accessing the clean
water through less costly sources has become difficult for the company due to many reasons. These
include increasing population, climate change, growing demand for food and water, increasing
pollution, water wastage, and overexploitation of resources.
Rising competition – Many companies like Mondelez and Unilever offer similar food and
beverage products. It is hard for Nestle to compete in such a situation where the substitute
products are easily accessible.
Government regulations and prices – Government regulations can affect the business operations
of Nestle. Additionally, the increasing prices of commodities force the company to increase the
prices of its products. It will lead to sales reduction as consumers can switch to other brands which
are available at low costs.
Economic Uncertainty – Even though Nestlé’s sales increased by 4.3% and e-commerce jumped
to over 10% of total sales, the increase is attributed to panic buying catalyzed by recent events.
The company’s revenue from commercial businesses like hotels and restaurants are threatened by
economic uncertainty in the global markets and can decrease as these entities remain closed or
collapse due to the crisis.
OPPORTUNITIES:
Venturing small food start-ups – Nestle has a fantastic opportunity to grow the number of small
food start-ups under its popular brand name. Nestle can also collaborate with the new start-ups to
promote its brand name.
Online shopping – Nestle has a remarkable opportunity to boost its e-commerce sites and online
shopping platform. Although Nestle has its online stores in a few countries, expanding its online
services to more areas will prove a rewarding decision for the company.
Market penetration for breakfast cereals – Nestlé’s cereals and oats market have shown fast
growth in recent years. Thus, penetrating this market more would be highly lucrative for the
company.
Expanding ready-to-drink tea and coffee market – The demand for tea and coffee is
continuously on the rise, rendering a profitable opportunity for Nestle to groom this market more.
Partnerships – Strategic alliances with other food and beverage giants are also a great opportunity
for the company to increase its revenues and profits.
Authentic labeling – Nestle has already been criticized for giving misleading nutritional
information on its labels. So, there’s an opportunity to improve its practices by giving trustworthy
information and accurately labeling its products.
Expand through Acquisitions – Nestle has offloaded several low-performing brands. Expanding
portfolio with high performing acquisitions offers immense opportunities for Nestle to grow.
Refocus on Profitable Ventures – Having too many brands can stretch a company’s resources to
the limit and undermine overall performance. Nestle has been grappling under the weight of too
many unprofitable brands. Nestle wants to shift focus on strengthening the best and highly
profitable brands in its portfolio.
COMPETITOR BENCHMARKING
To see where a brand stands in today's crowded digital space, one must benchmark its performance
against its competitors as well. In this case, Nestlé's biggest competitors (Mondelez, Unilever,
Danone, Mars, and Heinz). The profiles analyzed were the brands' Facebook, Instagram, and
Twitter profiles.
On Facebook, Nestlé has the most followers and the highest fan evolution, but Mondelez had the
highest average engagement rate per post in the past six months.
Nestlé's Twitter page within the FMCG food industry with Twitter profiles worldwide that have
between 100K - 500K followers
The average number of tweets for this industry is 696.7. Nestlé posted only 213 tweets in the past
six months. Nestle tweets was far below the tweets of its competitors and could improve their
Twitter performance by posting more.
CAMPAIGN OBJECTIVES
To increase brand recall by 70% at the end the year
To increase the likes on the social media platforms by 500k at the end of the year
To create an easy platform for one to one communication
DIGITAL BUSINESS MODEL
The company’s business model is based on the roadmap to deliver growth and enhance
performance. The roadmap entails the following:
Strategic pillars:
Innovation & renovation; Operational efficiency; whenever, wherever, however; Consumer
communication. “The priority is to excel in four core competences.
Innovation & renovation drives nutrition, health and wellness and places our brands ahead of the
competition. Operational efficiency creates gaps with our competitors through our focus on
excellence in operational performance. Whenever, wherever, however ensures our products are
always available, whilst Consumer communication keeps consumers abreast of the innovation and
renovation and builds our brands’ reputations. But Consumer communication is two-way: it also
informs our innovation and renovation and thus the cycle begins again, with consumer-relevant
innovation and research.”
Competitive advantages:
Unmatched product and brand portfolio; Unmatched R&D capability; unmatched geographic
presence; People, culture, values and attitude.
Growth drivers:
Emerging markets and popularly positioned products; Nutrition, Health and Wellness; Out-of-
home leadership; Premiumisation
TARGET AUDIENCE
Nestle has positioned its wide range of product offerings in such a way that it covers audiences
beginning from 2-year-olds to working-class professionals. Let’s check out Nestle’s Target
Audience based on age demographics.
A Demographics-wise Breakdown of Nestle’s Offerings
Demographics Products
Kids Baby foods
Working Professionals and above Nescafe, Chocolin, Protein Products, Milo, Ideal
Milk
General Audience KitKat, Maggi, etc.
DIGITAL MESSAGE
NESTLE with its current campaign “only doing will make it possible”. The existing environment
with its uncertainties has shown that life is full of opportunities and surprises for those who wish
to find things. NESTLE withs its latest campaign aims to encourage people to seize these
opportunities and surpases the challenge of the current times with optimum actions and resilience
DIGITAL MEDIA
Online Advertising
Online advertising involves bidding and buying relevant ad units on third-party sites, such as
display ads on blogs, forums, and other relevant websites. Types of ads include images, text, pop-
ups, banners, and video.
Content Marketing
Content marketing is an important strategy for attracting potential customers. Publishing a regular
cadence of high-quality, relevant content online will help establish thought leadership. It can
educate target customers about the problems your product can help them resolve, as well as boost
SEO rankings. Content can include blog posts, case studies, whitepapers, and other materials that
provide value to your target audience. These digital content assets can then be used to acquire
customers through organic and paid efforts.
Mobile marketing
Mobile marketing is the promotion of products or services specifically via mobile phones and
devices. This includes mobile advertising through text messages or advertising in downloaded
apps. However, a comprehensive mobile marketing approach also includes optimizing websites,
landing pages, emails, and content for an optimal experience on mobile devices.
Programmatic advertising
Programmatic advertising is an automated way of bidding for digital advertising. Each time
someone visits a web page, profile data is used to auction the ad impression to competing
advertisers. Programmatic advertising provides greater control over what sites your advertisements
are displayed on and who is seeing them so you can better target your campaigns.
Reputation marketing
Reputation marketing focuses on gathering and promoting positive online reviews. Reading online
reviews can influence customer buying decisions and is an important component of your overall
brand and product reputation. An online reputation marketing strategy encourages customers to
leave positive reviews on sites where potential customers search for reviews.
Search engine optimization
Search engine optimization (SEO) focuses on improving organic traffic to the website. SEO
activities encompass technical and creative tactics to improve rankings and increase awareness in
search engines. The most widely used search engines include Google and Yahoo. Digital
marketing managers focus on optimizing levers — such as keywords, crosslinks, backlinks, and
original content — to maintain a strong ranking.
Social media marketing
Social media marketing is a key component of digital marketing. Platforms such as Facebook,
Twitter, Instagram, LinkedIn, and even YouTube provide digital marketing managers with paid
opportunities to reach and interact with potential customers.
Video marketing
Video marketing enables companies to connect with customers in a more visually engaging and
interactive way. You can showcase product launches, events, and special announcements, as well
as provide educational content and testimonies. YouTube and Vimeo are the most commonly used
platforms for sharing and advertising videos. Pre-roll ads (which are shown for the first 5–10
seconds before a video) are another way digital marketing managers can reach audiences on video
platforms.
Web analytics
Analytics allow marketing managers to track online user activity. Capturing and analyzing this
data is foundational to digital marketing because it gives companies insights into online customer
behavior and their preferences. The most widely used tool for analyzing website traffic is Google
Analytics, however other tools include Adobe Analytics, Coremetrics, Crazy Egg, and more.
Webinars
Webinars are virtual events that allow companies to interact with potential and existing customers
no matter where they are located. Webinars are an effective way to present relevant content such
as a product demonstration or seminar to a targeted audience in real time. Engaging directly with
your audience in this way gives your company an opportunity to demonstrate deep subject matter
expertise.
ACTION PLAN
ACTIVITY TIME FRAME ACTION REMARKS
Brainstorming on
campaign activities
1 week Project team
Development of
campaign message
and choice of media
1 week Project team
Roll out of campaign 1 month Project team
Monitoring of
campaign across
various media
Daily Project team
Evaluation of
campaign activities
Weekly Project team
BUDGET DETERMINATION
The company will invest 35% of its marketing budget in marketing practices. Allocation of the
funds will be determined by the marketing tool’s strength to capture consumers.
Digital Tools Budget Allocation in %
Online Ads 10
Content Marketing 10
Mobile Marketing 5
Programmatic Ads 5
Reputational Marketing 5
Search Engine
Optimisation
5
Social Media Marketing 35
Video Marketing 10
Web Search 5
Webinar 10
MEASUREMENT (Monitoring Evaluation and Control)
Measurement will employ external evaluators who will observe, experiment and survey. For added
results in implementation. At the end of every market quarter, an evaluation meeting will assesses
the results and consumer feedbacks. Poor results will lead to change in strategy while positive
results will lead to reinvestment in the digital tools.

More Related Content

Similar to DIGITAL MARKETING STRATEGY OF NESTLE

marketing of breakfast foods
marketing of breakfast foodsmarketing of breakfast foods
marketing of breakfast foodsAshwin Shetty
 
Nestle Competency
Nestle Competency Nestle Competency
Nestle Competency Zubair Ahmed
 
Principal of marketing
Principal of marketing Principal of marketing
Principal of marketing Webix.pk
 
Marketing project
Marketing projectMarketing project
Marketing projectWebix.pk
 
nestle International business management slides
nestle International business management slidesnestle International business management slides
nestle International business management slidesaqsaz
 
Nestle Industrial analysis
Nestle Industrial analysisNestle Industrial analysis
Nestle Industrial analysisJeril Peter
 
Marketing Mix of Nestel
Marketing Mix of NestelMarketing Mix of Nestel
Marketing Mix of NestelSujan Sarker
 
Marketing audit - nestle
Marketing audit - nestleMarketing audit - nestle
Marketing audit - nestleRahul Tanwar
 
nestle-190107171241 (1).pdf
nestle-190107171241 (1).pdfnestle-190107171241 (1).pdf
nestle-190107171241 (1).pdfchandansahoo82
 
Nestle- Company profile
Nestle- Company profile Nestle- Company profile
Nestle- Company profile Sultan Mahmood
 
NESTLE || Presentation
NESTLE || PresentationNESTLE || Presentation
NESTLE || PresentationForidur Rahman
 

Similar to DIGITAL MARKETING STRATEGY OF NESTLE (20)

Nestle paper
Nestle paperNestle paper
Nestle paper
 
marketing of breakfast foods
marketing of breakfast foodsmarketing of breakfast foods
marketing of breakfast foods
 
Nestle Competency
Nestle Competency Nestle Competency
Nestle Competency
 
Principal of marketing
Principal of marketing Principal of marketing
Principal of marketing
 
Marketing project
Marketing projectMarketing project
Marketing project
 
nestle International business management slides
nestle International business management slidesnestle International business management slides
nestle International business management slides
 
Nestle Industrial analysis
Nestle Industrial analysisNestle Industrial analysis
Nestle Industrial analysis
 
Marketing Mix of Nestel
Marketing Mix of NestelMarketing Mix of Nestel
Marketing Mix of Nestel
 
Marketing audit - nestle
Marketing audit - nestleMarketing audit - nestle
Marketing audit - nestle
 
Nestle project
Nestle project Nestle project
Nestle project
 
nestle-190107171241 (1).pdf
nestle-190107171241 (1).pdfnestle-190107171241 (1).pdf
nestle-190107171241 (1).pdf
 
Nestle- Company profile
Nestle- Company profile Nestle- Company profile
Nestle- Company profile
 
Nestle - Brand Management
Nestle - Brand ManagementNestle - Brand Management
Nestle - Brand Management
 
Nestle ppm it
Nestle ppm itNestle ppm it
Nestle ppm it
 
Nestle Report
Nestle ReportNestle Report
Nestle Report
 
NESTLE || Presentation
NESTLE || PresentationNESTLE || Presentation
NESTLE || Presentation
 
Nestle case study
Nestle case studyNestle case study
Nestle case study
 
Nestle1
Nestle1Nestle1
Nestle1
 
Marketing assignment
Marketing assignmentMarketing assignment
Marketing assignment
 
Nestle
NestleNestle
Nestle
 

Recently uploaded

Mastering SEO in the Evolving AI-driven World
Mastering SEO in the Evolving AI-driven WorldMastering SEO in the Evolving AI-driven World
Mastering SEO in the Evolving AI-driven WorldScalenut
 
What are the 4 characteristics of CTAs that convert?
What are the 4 characteristics of CTAs that convert?What are the 4 characteristics of CTAs that convert?
What are the 4 characteristics of CTAs that convert?Juan Pineda
 
How To Utilize Calculated Properties in your HubSpot Setup
How To Utilize Calculated Properties in your HubSpot SetupHow To Utilize Calculated Properties in your HubSpot Setup
How To Utilize Calculated Properties in your HubSpot Setupssuser4571da
 
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...Benjamin Szturmaj
 
Storyboards for my Final Major Project Video
Storyboards for my Final Major Project VideoStoryboards for my Final Major Project Video
Storyboards for my Final Major Project VideoSineadBidwell
 
Red bull marketing presentation pptxxxxx
Red bull marketing presentation pptxxxxxRed bull marketing presentation pptxxxxx
Red bull marketing presentation pptxxxxx216310017
 
VIP Call Girls In Green Park 9654467111 Escorts Service
VIP Call Girls In Green Park 9654467111 Escorts ServiceVIP Call Girls In Green Park 9654467111 Escorts Service
VIP Call Girls In Green Park 9654467111 Escorts ServiceSapana Sha
 
TAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto SectorTAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto SectorSocial Samosa
 
DGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdf
DGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdfDGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdf
DGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdfDemandbase
 
Inbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon Garside
Inbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon GarsideInbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon Garside
Inbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon Garsiderobwhite630290
 
Call Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCR
Call Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCRCall Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCR
Call Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCRlizamodels9
 
ASO Process: What is App Store Optimization
ASO Process: What is App Store OptimizationASO Process: What is App Store Optimization
ASO Process: What is App Store OptimizationAli Raza
 
GreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web RevolutionGreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web RevolutionWilliam Barnes
 
The Pitfalls of Keyword Stuffing in SEO Copywriting
The Pitfalls of Keyword Stuffing in SEO CopywritingThe Pitfalls of Keyword Stuffing in SEO Copywriting
The Pitfalls of Keyword Stuffing in SEO CopywritingJuan Pineda
 
SORA AI: Will It Be the Future of Video Creation?
SORA AI: Will It Be the Future of Video Creation?SORA AI: Will It Be the Future of Video Creation?
SORA AI: Will It Be the Future of Video Creation?Searchable Design
 
marketing strategy of tanishq word PPROJECT.pdf
marketing strategy of tanishq word PPROJECT.pdfmarketing strategy of tanishq word PPROJECT.pdf
marketing strategy of tanishq word PPROJECT.pdfarsathsahil
 
Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...
Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...
Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...robertpresz7
 
Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...
Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...
Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...Search Engine Journal
 
BrightonSEO - Addressing SEO & CX - CMDL - Apr 24 .pptx
BrightonSEO -  Addressing SEO & CX - CMDL - Apr 24 .pptxBrightonSEO -  Addressing SEO & CX - CMDL - Apr 24 .pptx
BrightonSEO - Addressing SEO & CX - CMDL - Apr 24 .pptxcollette15
 
Forecast of Content Marketing through AI
Forecast of Content Marketing through AIForecast of Content Marketing through AI
Forecast of Content Marketing through AIRinky
 

Recently uploaded (20)

Mastering SEO in the Evolving AI-driven World
Mastering SEO in the Evolving AI-driven WorldMastering SEO in the Evolving AI-driven World
Mastering SEO in the Evolving AI-driven World
 
What are the 4 characteristics of CTAs that convert?
What are the 4 characteristics of CTAs that convert?What are the 4 characteristics of CTAs that convert?
What are the 4 characteristics of CTAs that convert?
 
How To Utilize Calculated Properties in your HubSpot Setup
How To Utilize Calculated Properties in your HubSpot SetupHow To Utilize Calculated Properties in your HubSpot Setup
How To Utilize Calculated Properties in your HubSpot Setup
 
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
How videos can elevate your Google rankings and improve your EEAT - Benjamin ...
 
Storyboards for my Final Major Project Video
Storyboards for my Final Major Project VideoStoryboards for my Final Major Project Video
Storyboards for my Final Major Project Video
 
Red bull marketing presentation pptxxxxx
Red bull marketing presentation pptxxxxxRed bull marketing presentation pptxxxxx
Red bull marketing presentation pptxxxxx
 
VIP Call Girls In Green Park 9654467111 Escorts Service
VIP Call Girls In Green Park 9654467111 Escorts ServiceVIP Call Girls In Green Park 9654467111 Escorts Service
VIP Call Girls In Green Park 9654467111 Escorts Service
 
TAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto SectorTAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
TAM AdEx 2023 Cross Media Advertising Recap - Auto Sector
 
DGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdf
DGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdfDGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdf
DGR_Digital Advertising Strategies for a Cookieless World_Presentation.pdf
 
Inbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon Garside
Inbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon GarsideInbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon Garside
Inbound Marekting 2.0 - The Paradigm Shift in Marketing | Axon Garside
 
Call Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCR
Call Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCRCall Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCR
Call Girls In Aerocity Delhi ❤️8860477959 Good Looking Escorts In 24/7 Delhi NCR
 
ASO Process: What is App Store Optimization
ASO Process: What is App Store OptimizationASO Process: What is App Store Optimization
ASO Process: What is App Store Optimization
 
GreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web RevolutionGreenSEO April 2024: Join the Green Web Revolution
GreenSEO April 2024: Join the Green Web Revolution
 
The Pitfalls of Keyword Stuffing in SEO Copywriting
The Pitfalls of Keyword Stuffing in SEO CopywritingThe Pitfalls of Keyword Stuffing in SEO Copywriting
The Pitfalls of Keyword Stuffing in SEO Copywriting
 
SORA AI: Will It Be the Future of Video Creation?
SORA AI: Will It Be the Future of Video Creation?SORA AI: Will It Be the Future of Video Creation?
SORA AI: Will It Be the Future of Video Creation?
 
marketing strategy of tanishq word PPROJECT.pdf
marketing strategy of tanishq word PPROJECT.pdfmarketing strategy of tanishq word PPROJECT.pdf
marketing strategy of tanishq word PPROJECT.pdf
 
Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...
Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...
Content Marketing For A Travel Website On The Examples Of: Booking.com; TripA...
 
Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...
Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...
Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...
 
BrightonSEO - Addressing SEO & CX - CMDL - Apr 24 .pptx
BrightonSEO -  Addressing SEO & CX - CMDL - Apr 24 .pptxBrightonSEO -  Addressing SEO & CX - CMDL - Apr 24 .pptx
BrightonSEO - Addressing SEO & CX - CMDL - Apr 24 .pptx
 
Forecast of Content Marketing through AI
Forecast of Content Marketing through AIForecast of Content Marketing through AI
Forecast of Content Marketing through AI
 

DIGITAL MARKETING STRATEGY OF NESTLE

  • 1. A DIGITAL MARKETING STRATEGY FOR NESTLE ORGANISATIONAL PROFILE Nestlé Ghana Limited started business in Ghana in 1957 under the trading name of Nestlé Products (Gh) Limited with the importation of Nestlé products such as milk and chocolates. In 1968, it was incorporated as Food Specialties (Gh) Limited to manufacture and market locally well known Nestlé brands. The company became Nestlé Ghana Limited in 1987. In 1971 the production of the IDEAL Milk and MILO started at the Tema Factory. The factory has since been further developed and now also produces CARNATION milks, CHOCOLIM, CHOCOMILO CEREVITA, CERELAC and NESCAFÉ 3 in 1. These products are not only produced for Ghana but also exported across West Africa. The Company has invested some 130 billion cedis in 2004 and 2005 to increase its production capacity, particularly in the area of cocoa-based beverages, and to construct modern and efficient distribution facilities next to the factory in Tema. Its main products include baby food, bottled water, breakfast cereals, coffee, teas, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Its most well-known brands are Nespresso, Nescafe, KitKat, Smarty's, Nesquick, Stouffers, Vittel, and Maggi SWOT FRAMEWORK: STRENGTHS: Largest Food Company – In 2020, Nestle maintained its position as the world’s largest food company with the sales of its Hot Pockets, Stouffer’s, DiGiorno, and Nespresso holding the top seat in the industry. Reputed brand name – Nestle is the most renowned brand in the world. It has developed a respected reputation in the food and beverages sector offering high-quality products for everyday use across the globe.
  • 2. Globally recognized brand – Through its effective advertising and branding strategies, it has created significant awareness and developed a successful brand image around the world. According to the Fortune Global 500, Nestle is among the world’s largest corporations and is ranked at 69th position in 2018 list. Highly diversified company – Nestle sells its products in 189 countries Instead of relying on a few markets, it has captured the sizeable market in a lot of developed and developing countries to earn most of its revenue. Its leading markets include the US, China, France, and Brazil. In 2020, its sales increased by 30% and had to increase production in nearly 70 factories to meet the demand. World’s most valuable brand – According to 2018 Forbes Global, Nestle is among the top as the world’s most valuable company in regards to highest revenue, profits, assets, and market value. In 2020, Nestle is ranked the 50th most valuable brand in the world. Extensive product portfolio – Nestle owns more than 2000 brands globally and renovated over 8000 products for nutrition and health considerations, according to its Annual Review 2017. It is one of the worlds’ biggest companies with the broadest product portfolio. In 2020, Nestle owns some of the companies offering pet food, frozen foods, baby food, vitamins, and many more. It also has a big Starbucks licensing deal. Large distribution system– Nestle owns an extensive and diversified distribution system that is not only penetrated in urban areas but also rural regions. It has adapted local distribution methods and decentralized approach to run the business efficiently in respective countries. Nestle has strong relationships with suppliers, retailers, vendors, and distributors. WEAKNESSES: Price fluctuations by retail giants – Nestlé’s grocery sales are achieved majorly through huge retail giants like Shoprite, Game. Any reduction or increase in prices by these retailers can affect Nestlé’s sales. Span of control and organizational structure – Nestlé is organized in a matrix structure. That means a large number of brands are under the same umbrella group which makes it somewhat
  • 3. challenging to manage the large Administrating such a large number of individual brands can often result in discord and conflict of interest. Water controversy – Recently, Nestle was accused of illegally pumping millions of liters of water in 6 nations where residents are deprived of drinking water. Social criticisms – Nestle has become a target of media attention many times. The claim to privatize water, misleading labeling, and a lawsuit for chocolate making using child and slave labor are some of the examples that have to weaken its market reputation. Unhealthy Products – Nestle’s history consists of a long list of products that threatened life consumers. Consumers distrust companies that have sold unhealthy products in the past. THREATS: Water scarcity – Nestlé’s production is highly dependent on water usage. Accessing the clean water through less costly sources has become difficult for the company due to many reasons. These include increasing population, climate change, growing demand for food and water, increasing pollution, water wastage, and overexploitation of resources. Rising competition – Many companies like Mondelez and Unilever offer similar food and beverage products. It is hard for Nestle to compete in such a situation where the substitute products are easily accessible. Government regulations and prices – Government regulations can affect the business operations of Nestle. Additionally, the increasing prices of commodities force the company to increase the prices of its products. It will lead to sales reduction as consumers can switch to other brands which are available at low costs. Economic Uncertainty – Even though Nestlé’s sales increased by 4.3% and e-commerce jumped to over 10% of total sales, the increase is attributed to panic buying catalyzed by recent events. The company’s revenue from commercial businesses like hotels and restaurants are threatened by economic uncertainty in the global markets and can decrease as these entities remain closed or collapse due to the crisis.
  • 4. OPPORTUNITIES: Venturing small food start-ups – Nestle has a fantastic opportunity to grow the number of small food start-ups under its popular brand name. Nestle can also collaborate with the new start-ups to promote its brand name. Online shopping – Nestle has a remarkable opportunity to boost its e-commerce sites and online shopping platform. Although Nestle has its online stores in a few countries, expanding its online services to more areas will prove a rewarding decision for the company. Market penetration for breakfast cereals – Nestlé’s cereals and oats market have shown fast growth in recent years. Thus, penetrating this market more would be highly lucrative for the company. Expanding ready-to-drink tea and coffee market – The demand for tea and coffee is continuously on the rise, rendering a profitable opportunity for Nestle to groom this market more. Partnerships – Strategic alliances with other food and beverage giants are also a great opportunity for the company to increase its revenues and profits. Authentic labeling – Nestle has already been criticized for giving misleading nutritional information on its labels. So, there’s an opportunity to improve its practices by giving trustworthy information and accurately labeling its products. Expand through Acquisitions – Nestle has offloaded several low-performing brands. Expanding portfolio with high performing acquisitions offers immense opportunities for Nestle to grow. Refocus on Profitable Ventures – Having too many brands can stretch a company’s resources to the limit and undermine overall performance. Nestle has been grappling under the weight of too many unprofitable brands. Nestle wants to shift focus on strengthening the best and highly profitable brands in its portfolio.
  • 5. COMPETITOR BENCHMARKING To see where a brand stands in today's crowded digital space, one must benchmark its performance against its competitors as well. In this case, Nestlé's biggest competitors (Mondelez, Unilever, Danone, Mars, and Heinz). The profiles analyzed were the brands' Facebook, Instagram, and Twitter profiles. On Facebook, Nestlé has the most followers and the highest fan evolution, but Mondelez had the highest average engagement rate per post in the past six months. Nestlé's Twitter page within the FMCG food industry with Twitter profiles worldwide that have between 100K - 500K followers The average number of tweets for this industry is 696.7. Nestlé posted only 213 tweets in the past six months. Nestle tweets was far below the tweets of its competitors and could improve their Twitter performance by posting more. CAMPAIGN OBJECTIVES To increase brand recall by 70% at the end the year To increase the likes on the social media platforms by 500k at the end of the year To create an easy platform for one to one communication DIGITAL BUSINESS MODEL The company’s business model is based on the roadmap to deliver growth and enhance performance. The roadmap entails the following: Strategic pillars: Innovation & renovation; Operational efficiency; whenever, wherever, however; Consumer communication. “The priority is to excel in four core competences. Innovation & renovation drives nutrition, health and wellness and places our brands ahead of the competition. Operational efficiency creates gaps with our competitors through our focus on
  • 6. excellence in operational performance. Whenever, wherever, however ensures our products are always available, whilst Consumer communication keeps consumers abreast of the innovation and renovation and builds our brands’ reputations. But Consumer communication is two-way: it also informs our innovation and renovation and thus the cycle begins again, with consumer-relevant innovation and research.” Competitive advantages: Unmatched product and brand portfolio; Unmatched R&D capability; unmatched geographic presence; People, culture, values and attitude. Growth drivers: Emerging markets and popularly positioned products; Nutrition, Health and Wellness; Out-of- home leadership; Premiumisation TARGET AUDIENCE Nestle has positioned its wide range of product offerings in such a way that it covers audiences beginning from 2-year-olds to working-class professionals. Let’s check out Nestle’s Target Audience based on age demographics. A Demographics-wise Breakdown of Nestle’s Offerings Demographics Products Kids Baby foods Working Professionals and above Nescafe, Chocolin, Protein Products, Milo, Ideal Milk General Audience KitKat, Maggi, etc. DIGITAL MESSAGE NESTLE with its current campaign “only doing will make it possible”. The existing environment with its uncertainties has shown that life is full of opportunities and surprises for those who wish
  • 7. to find things. NESTLE withs its latest campaign aims to encourage people to seize these opportunities and surpases the challenge of the current times with optimum actions and resilience DIGITAL MEDIA Online Advertising Online advertising involves bidding and buying relevant ad units on third-party sites, such as display ads on blogs, forums, and other relevant websites. Types of ads include images, text, pop- ups, banners, and video. Content Marketing Content marketing is an important strategy for attracting potential customers. Publishing a regular cadence of high-quality, relevant content online will help establish thought leadership. It can educate target customers about the problems your product can help them resolve, as well as boost SEO rankings. Content can include blog posts, case studies, whitepapers, and other materials that provide value to your target audience. These digital content assets can then be used to acquire customers through organic and paid efforts. Mobile marketing Mobile marketing is the promotion of products or services specifically via mobile phones and devices. This includes mobile advertising through text messages or advertising in downloaded apps. However, a comprehensive mobile marketing approach also includes optimizing websites, landing pages, emails, and content for an optimal experience on mobile devices. Programmatic advertising Programmatic advertising is an automated way of bidding for digital advertising. Each time someone visits a web page, profile data is used to auction the ad impression to competing advertisers. Programmatic advertising provides greater control over what sites your advertisements are displayed on and who is seeing them so you can better target your campaigns. Reputation marketing
  • 8. Reputation marketing focuses on gathering and promoting positive online reviews. Reading online reviews can influence customer buying decisions and is an important component of your overall brand and product reputation. An online reputation marketing strategy encourages customers to leave positive reviews on sites where potential customers search for reviews. Search engine optimization Search engine optimization (SEO) focuses on improving organic traffic to the website. SEO activities encompass technical and creative tactics to improve rankings and increase awareness in search engines. The most widely used search engines include Google and Yahoo. Digital marketing managers focus on optimizing levers — such as keywords, crosslinks, backlinks, and original content — to maintain a strong ranking. Social media marketing Social media marketing is a key component of digital marketing. Platforms such as Facebook, Twitter, Instagram, LinkedIn, and even YouTube provide digital marketing managers with paid opportunities to reach and interact with potential customers. Video marketing Video marketing enables companies to connect with customers in a more visually engaging and interactive way. You can showcase product launches, events, and special announcements, as well as provide educational content and testimonies. YouTube and Vimeo are the most commonly used platforms for sharing and advertising videos. Pre-roll ads (which are shown for the first 5–10 seconds before a video) are another way digital marketing managers can reach audiences on video platforms. Web analytics Analytics allow marketing managers to track online user activity. Capturing and analyzing this data is foundational to digital marketing because it gives companies insights into online customer behavior and their preferences. The most widely used tool for analyzing website traffic is Google Analytics, however other tools include Adobe Analytics, Coremetrics, Crazy Egg, and more. Webinars
  • 9. Webinars are virtual events that allow companies to interact with potential and existing customers no matter where they are located. Webinars are an effective way to present relevant content such as a product demonstration or seminar to a targeted audience in real time. Engaging directly with your audience in this way gives your company an opportunity to demonstrate deep subject matter expertise. ACTION PLAN ACTIVITY TIME FRAME ACTION REMARKS Brainstorming on campaign activities 1 week Project team Development of campaign message and choice of media 1 week Project team Roll out of campaign 1 month Project team Monitoring of campaign across various media Daily Project team Evaluation of campaign activities Weekly Project team
  • 10. BUDGET DETERMINATION The company will invest 35% of its marketing budget in marketing practices. Allocation of the funds will be determined by the marketing tool’s strength to capture consumers. Digital Tools Budget Allocation in % Online Ads 10 Content Marketing 10 Mobile Marketing 5 Programmatic Ads 5 Reputational Marketing 5 Search Engine Optimisation 5 Social Media Marketing 35 Video Marketing 10 Web Search 5 Webinar 10
  • 11. MEASUREMENT (Monitoring Evaluation and Control) Measurement will employ external evaluators who will observe, experiment and survey. For added results in implementation. At the end of every market quarter, an evaluation meeting will assesses the results and consumer feedbacks. Poor results will lead to change in strategy while positive results will lead to reinvestment in the digital tools.