Marketing strategy assignment report on:  International Marketing Strategies of Nestle Company

Executive Summary

This report is based on International Marketing Strategies of Nestle Company. The Company had framed strategic marketing plan while entering into global market. In India Nestle has been enjoying its successful business since more than 100 years. It has got multiple brands and is facing competition in the Indian Market with other domestic products. Global mindset has been used to understand the needs and requirements of the consumers for all the Indian families.

According to the given report the International marketing strategy of Nestle has been used in positioning its products with new variants every time for all age group of consumers. The strong brands such as Nescafe and Maggie have already created its image in the minds of the consumers and other brands find it difficult to dislodge it from the market. The strategies of standardization and adaptation have been well linked with the marketing policies of Nestle.

Sum up, according to the analysis of the given report, this report provides some recommendations for Nestle India.

• More than seven manufacturing units have been established and in future more units can be set up to penetrate the market to have better market share.
• More local partners can be identified in Indian market to have better collaboration with other companies to explore their business.
• Though the segmentation process is well done but Nestle can focus to target the rural consumers of India to increase their sales.
• The 7Ps known as marketing mix and more marketing efforts can be used to position and reposition its products in the Indian market. The culture and lifestyle of Indian consumers can be studied by Nestle India on a frequent basis to modify their products.

      Table of Contents                                                                        Page No

1. 1.      Introduction……………………………………………………4
2. 2.      Mode of Entry…………………………………………………5
3. 3.      Local Partner…………………………………………………..5
4. 4.      Segmentation/Targeting/Positioning………………………….5
5. 5.      Marketing Mix (4 Ps or 7 Ps)………………………………….6
6. 6.      Managing the Marketing Effort………………………………8
7. 7.      Conclusion………………………………………………………9
8. 8.      References………………………………………………………9

1.Introduction

Nestle is one of the leading FMCG company of the world. It was founded in Switzerland and today it is present in more than 100 countries of the world. It has been taking care for customers globally by providing hygienic food and ensuring good life. They have been marketing their products by satisfying the needs of the all consumers age group. The famous brands include Nescafe, Gourmet, Kit kat, Maggi, Nestea, and many more are there (Nestle,    2012). It had to market its products by framing marketing strategies and keeping in mind the taste and preference of consumers based in different countries. It was a challenging task for Nestle to establish its position when ethnocentric products are already available in the domestic countries. They have adopted the glocal culture for gathering information about new countries business environment for going international. It has been focusing on its brands and entering into market by increasing line extensions of a particular brand. The leadership position of Nestle is maintained in market by supplying the products and also opening its outlets in public places for the brand reinforcement. Nestle has been focusing and spending for Research and developmental activities. The success behind Nestle is to operate in different countries by the form of Foreign Direct Investment.

2.Mode of Entry

In this paragraph we will focus on how Nestle had entered into Indian market on 1912. Today it has successfully completed 100 years in India. Its head office is located at Gurgaon and manufacturing units in several states of India. The mode of entry used by Nestle was in form of export to Indian market in previous years. Later on it entered by modifying the strategy in form of wholly owned subsidiary on 1959 (Times Internet Ltd,    2012). Wholly owned subsidiary is a mode where the 100% shares are owned by the parent company. There is control of parent company to decide about all the strategic strategies. It has been enjoying the diversification strategy and dealing with multiple brands. First plant was set up at Punjab Moga to produce milk. It has been operating into four Infant Food, Milk products, chocolates and ready to eat items. The reason behind nestle entering strategy in Indian market were increasing disposable income of the consumers, and the nuclear family system.

3.Local Partner

Nestlé’s Local partners are its employees, farmers and shareholders. The company had tie up the government of Punjab to explore milk economy in India. It has been collaborative Research and development centers to provide quality products in the market. It has also started first Research and Developmental center in India on 2010 be a partner of Global Research and development Network (Nestle,      2010).

4. Segmentation, Targeting & Positioning (STP)

It is defined as the first step in the marketing plan for any of the Company. Segmentation is a process of classifying the consumers on the basis demographic, psychographic, geographic and Behaviourial aspects. If we segment as per geographic condition cold coffee is consumed in India during summers and hot in winters. On the basis of Demographic aspects it is classified on the basis of age, income, occupation and etc. Nestle has been providing the products for all the age groups such as baby food to an adult food. It has been producing Lectogen, Cerelac for babies and targeting them. Maggie and other food are being targeted for the adult group. On the basis of occupation nestle has been segmenting the working women and targeting them to save their time by using the Maggie masala (Managementstudyguide.com,    2012). If psychographic factor is considered it can be segmented on the basis of lifestyle and the personality. We can see that during tension and anxiety Youths consume more chocolates. Positioning is a process of creating impression of the products in the minds of consumers. The products are being positioned by nestle such as good to eat, fast to cook, Maggie in two minutes and etc. It has been positioned by the providing different falvours and packaging it in different ways. It has been positioning by differentiating it in form of channel, product, personnel and image based factors. We can also explain it with particular product such Maggie of Nestle company to have a better understanding of STP Concept. Maggie market has been segmented by understanding the eating habits of Indian consumers residing in urban areas. It has been targeting the youths, kids, and the working women. It has been positioning the products in the minds of Indian consumers by relieving them from hunger (Lars Perner,    2010).

5. Marketing Mix (4 Ps or 7 Ps)

Marketing mix will explain the types of factors that a company considers to bring a product or service in the market. It will also clarify how an International Marketing concept is being used to market the products (Business Case Studies LLP,   2012).

a). Products

It provides a wide range of products with their line extensions in the market. They have been providing variety with quality to the consumers. Some of the Nestle’s top brands are Maggie, Nestea, Nescafe, Kit Kat, and etc.

b). Price

It has been providing the discounts and coupons for their products in the market. The products of Nestle range from 1 rupee and above. Offers have been provided to the customers for bulk purchase. We can see that when 6 pack Maggie is being purchased in place of a single pack then in such case customers are offered cash discounts.

c). Place

Nestle has been displaying its product in the supermarkets and the malls. It has been managing its own sales and distribution network all over the Indian market to supply their product. It has been also placing it products in hospitals, canteens of colleges & companies and public places.

d).Promotion

Promotion is done by Nestle India by endorsing the product with the celebrities. It has been showing the advertisement in the television. The social marketing concept is being used to market and promote their products in networking sites such as Face book and etc. The advertisements are designed in such as way that consumers find it as a healthy product to eat.

e).People

Nestle India has been recruiting lakhs of people to join their company. They have been training their employees to handle the queries of their customers and also provide better customer service. Various campaigns are organized by their employees for the purpose of the sales promotion in different states of India.

f).Process

The company has been manufacturing the products by processing it using better technology. The way Nestle has been using its vending machine to serve the customers easily shows that they have understood the requirements of the consumers in India.

g).Physical Evidence

Nestle has been creating a better evidence connectivity by setting up the coffee corners with their logo of Nescafe in vending machines (Dreamstime,    2012).

5. Managing the Marketing Effort

Nestle India has been managing the marketing effort by considering the ethnocentric factor with a global mindset. They have understood the eating habits, taste and preference of the Indian consumers. An ethical image has been set up the company in the eyes of Indian that the products offered by Nestle are hygienic and quality based. They started to explore their business by targeting the underdeveloped countries where the infants had missed the nutritional gaps in their food. After Globalization International Marketing has been playing the key role to explore their business from one country to other countries. Nestle India has been educating the farmers to produce more milk for the marketing of their products (Marketing Power Inc   2012). It has been managing the marketing effort by showing the proper advertisement and connecting it emotionally with the consumers. It has been leader in marketing of coffee. It has been highly supporting its parent company which is located in Switzerland. It was previously focusing in urban areas but now it has been focusing on rural areas. Line extensions of the products are managed by the teams of employees who are having a proper distribution network in India. The products are being repositioned by the company after adding new flavor and variants to attract them.

6.Conclusion

Nestle is a renowned MNC which has got its presence in more than 100 countries. A proper marketing plan has been used by Nestle to enter into Indian market. The management of the company had to understand and conduct the market analysis by considering political, economical, and demographic aspects. The mode of operation was started by wholly owned ownership basis. The market was segmented on the basis of demographic, psychographic, behaviouraial and geographic aspects. It was targeted on the basis of the age and the income group. After globalization the consumers had better standard of living and higher income for purchasing. Nestle had identified this factor and it has launched various products in the Indian market. Points of difference are being created with the taste factor in the market. The products had been positioned in the minds of Indian consumers by advertisement, sales promotion, and using the social marketing concepts (Hearst Communications Inc,   2012). The marketing mix such as product, price, place, promotion, people, process and physical evidence have been integrated well with the Nestle marketing strategy to market its products. Thus Nestle products have been part of Indian daily lives by ensuring the consumers and their family with good health. It has always understood the requirement and needs of the consumers globally. It has also been following the ethical marketing strategies to grow the business at national and the international level.

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