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.