Business communication essay on: Nestle
Nestle refers to one of the world’s largest food manufacturing company. Headquartered in Vevey, Switzerland, this company was originated in the year 1905. The growth of the company could be seen during the First World War & during the Second World War the company decided to expand its operations by enhancing the product offered by the same. The initial products offered to the customers were mainly confined to condensed milk, milk products for the infants, etc. Nestle has marked its presence in more than 86 countries across the world & employees approximately 2, 80,000 people (Nestle, 2011).
Nestle has been defined as one of the leading nutrition companies which promises good health & good taste in the products they offer to their customers. The tag line for this organization states “Good Food, Good Life”. With this mission in their mind, many of the nutritious product range have been offered by the same. The product range majorly includes milk products, food products, beverages, etc (Nestle, 2011).
Nestle believes in recognizing the trust of its customers & earn the trust build by them for the past many years. Nestle has been quite consistent in delivering their own promises. Nestle makes it a point that, in order to create sustainable value for the shareholders, strategies & operations should be created which would create value for the communities as well (Nestle, 2011). This would create fair values for the various communities they operate in to. This would be known as “creating a shared value”. Nestle is a 140 year old organization which reflects ideas, honesty as well as long term thinking.
This essay majorly takes into consideration the various communication activities which are being followed by Nestle. The various means of communication being followed by the same are advertisements in the newspapers, posters, banners, hoardings on the roads, designer pages on various sites such as face book, orkut, etc. The essay also takes into consideration the statistical indicators, trends in the food & beverage industry, main competitors along with the way Nestle has been positioned in the market (Nestle, 2011).
This portion of the essay would summarize the statistical indicators & the trends in that industry. The essay would discuss the main competitors of Nestle & the way Nestle has been positioned in the food & beverage industry.
The statistical indicators regarding Nestle could be studied with the help of the following two charts attached. In order to see whether Nestle has been fairly priced or not, the projected earnings growth rate & the dividend could be estimated with the help of PE ratio. It has been seen that, Nestle has been undervalued as compared to the theoretical value (Schramm, 2004). The forecasted growth along with the estimated dividend yield has become higher. This would indicate that the stock prices of the company would be at a discount rate.
The earnings of the company have been constantly rising. The trend remains unfavorable as their last trend was negative. The positioning of Nestle in the food & beverage industry has had a negative earnings trend (Nestle Consumer Communication Principle, 2011). Based upon the technical & fundamental analysis, the following conclusions could be made i.e. the technical trend is quite positive, the stock has a good potential, the stock shows a relative over performance in the food & beverage industry.Some of the trends & issues in the food & beverage industry could be discussed as under. Globalization has led to continuous evolution of the food & beverage industry (Nestle Consumer Communication Principle, 2011). Changes in the consumer preferences, consolidation, regulations laid down by the government have led to a drastic impact over the manufacturing & the business organizations.
In order to catch up with the competition amongst the manufacturing firms, the organizations have to offer something different or new so as to attract new customers & retain the existing ones as well. The products offered by such firms should be consistent as well as cost effective so as to produce high quality of products (Bradley, 2008).
In order to be successful in the food & beverage industry, the following three things should be taken into consideration i.e. financial performance, brand equity & the level of sustainability. Some of the challenges with this industry would be as under the safety & security of the product, integration of the supply chain, integration of the architecture, etc (Nestle Consumer Communication Principle, 2011).
The various communication strategies which have been used by Nestle in order to communicate with their target audience have been discussed in the essay.
In order to grasp the trust of the customers various communication activities have been used by Nestle. Various advertisements have been printed in the newspapers, posters; hoardings have been placed in order to attract the attention of the customers. The packaging used by Nestle out performs its competitors as it is quite informative in nature. The packaging material used by Nestle is eco friendly & portrays various types of information such as net weight, price for a particular commodity, its uses, benefits, etc (Papa, Michael, Tom & Barry, 2008).
In order to live along the commitment to act as a responsible organization, Nestle has been subscribed to various types of regulations which would help the company to communicate with its customers in a well defined manner. Their main focus is to attract the children with the help of healthy advertisements being aired on the radio, television & other means of communication as well (Nestle, 2011). The organization feels that being a well recognized amongst the food & beverage industry, they have certain levels of responsibility towards the same.
The organization is dedicated towards promoting a healthy good along with healthy taste which would enhance the lifestyle of its customers. This is majorly done with the help of the health promotion communication to its target audience & makes them informed regarding all the products.
Nestle have used various types of opportunities in order to make sure that the target audience along with the health professionals are being educated. This would help the customers to make a worthwhile purchase for their growing infants, children. The health care professional would recommend one of the best products to its patients in order to recover soon. Firstly, labeling refers to one of the most essential element which has been used by Nestle in order to communicate with the customers regarding the product being offered to their target audience. Nestle has labeled all its products according to the guideline daily amount (GDA). This means that all the relevant information regarding product has been placed upon the packets which would help the customers to choose amongst the various choices in front of him (Papa, Michael, Tom & Barry, 2008). Nestle has been listed as one of the companies to put the GDA labeling upon the packs of cereals. This label clearly depicts the level of sugar content, fat, salts, calories, saturates, etc which have been used while the manufacturing of a particular product. This would majorly show the levels of percentage of the daily amount of the key nutrients contained in a particular cereal while serving it. Below is the picture of the attached GDA labeled over the packet of Shredded Wheat.
GDA labelling for Shredded Wheat
Apart from the GDA, the organization also provides the standard information regarding the nutritional value of a particular commodity. This would cover the big 8 elements such as Vitamins, Proteins, Carbohydrates, energy, sugar, fat, fibre & sodium. Secondly, the communication strategy which has been used by Nestle refers to articles or advertisements in the newspapers. Below refers to a newspaper article which describes the entry of Maggi in a new taste & style (Papa, Michael, Tom & Barry, 2008). Generally, eth kind of magi we have heard about is vegetarian in nature. It is added with boiled vegetables such as potatoes, peas, tomatoes, etc. The new Maggi was a non vegetarian maggi. The entire taste, appeal, look would be entirely changed (Nestle, 2011). This referred to one of the best ways through which the target audience could be well informed. This article majorly covered the reinvention of chicken by adding Maggi in to it.
Thirdly, Nestle has adopted the World Health Organizations Code. Nestle advertises the article in this code as it would reach the young children, pregnant women, mother of infants as well as the general public. This would affirm that though breast feeding is the best for babies but at the time of need there are certain products manufactured by Nestle which might substitute breast feeding (Schramm, 2004). Lastly, advertising to the young generation has been done in order to communicate this target audience. It must be kept into consideration that, while advertising regarding any product to the young generation, advertising should be in such a manner which might not hut the sentiments of any of the parties (Nestle, 2011). The advertisements shall be such that, they should not reduce the confidence of the general public. All the commitments related to communication of the same have been met with ethical standards. The advertisements made by Nestle for the younger generation should be given some special attention (Nestle, 2011).
Nestle has been positioned as one of the top most multinational companies amongst the food & beverage industry. Nestle refers to an organization which has decentralized its operations. It has been regarded as people & product oriented company rather than process oriented. It has been positioned as an organization which encourages the production of milk products as well as improves the quality of the live stock. The organization has positioned itself as an organization which would unlock the entire globe (Nestle Consumer Communication Principle, 2011).
The major competitors for Nestle in case of manufacturing moulded chocolates would be Dairy Milk by Cadbury’s, Truffle, Amul Milk – Taste of India, etc. In case of panned products the major competitors would be Gems by Cadbury’s, etc. Some of the major players in the food & beverage industry would be Pepsi, Parle Agro, Hindustan, Coca Cola, Cadbury, etc.
Some of the recommendations which should be adopted by Nestle in order to avoid or eliminate risk have been discussed in this portion of the essay. Nestle would be recommended to use the following communication principles which would help in order to communicate with their target audience in a well defined manner. Firstly, not to create a sense of urgency, secondly, they should not generate some unrealistic expectation sin the minds of the customers as they might act as failure, thirdly, never use programs, animations, live other than the copyright characters, fourthly, copyright characters would help in order to market the products in a well define manner, fifthly, more advertisements regarding some of the healthy dairy products should be done. The advertisements so made by Nestle should not mislead the children, while targeting the children as their target audience, focusing more on the potential benefits should not be done, Nestle should restrict the advertising of their products by depicting or focusing more upon the nutritional values of the products being offered, while advertising in any of the educational institutes such as schools, colleges, etc fair consent should be granted by the officials (Berlo, 2006).
Hence, it could be concluded that, the various communication activities being used by Nestle are quite effective on order to communicate the relevant information to its customers. Apart from the existing communication activities & to increase the position all across the globe Nestle should also take into consideration the recommendations mentioned above. These recommendations would help in order to avoid any kind of risk which might hamper the growth of the organization i.e. Nestle (Berlo, 2006).
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