Nestle is the world biggest known brand
. Executive Summary
Nestle is the world biggest known brand and the larger food company. Nestle commands 50% of the global food market and operates nearly 500 countries. The head office in Australia is situated in Sidney. In Sydney Olympic has predicted that they have sold more than 10 millions of Nestle and this means that they have actually gain profit being the sponsorship.
Being the market leader, Nestle has come out successful strategy to gain its market position. In the product strategy, actually are focused on providing a better taste to quench consumer thirst. In general, Nestle strategy is to maintaining the whole products as market leader, increase their market share in cake industry, improve their brand image and building consumer loyalty.
2. Introduction About Nestle Company
Nestle Company was established by the founder Henri Nestle in 1866. Nestlé's first customer was a premature infant, which could not tolerate with his mother's milk and other conditional substitutes.
By the early of 1900s and the following years, Nestle Company had merged with several big companies such as Anglo-Swiss Condensed Milk Company (1905), Peter-Cailler-Kohler Chocolates Suisses S.A (1929), Alimentana S.A. (Maggi, 1947), Ursina-Franck (Switzerland, 1971).
Nestle Company has implemented the horizontal marketing system, in which two or more companies at one level join together to follow a new marketing opportunity. For example, Nestle jointly sells General Mills cereal brands in markets outside North America.
Nestle sells its products mostly through different kind of retailers:
* Supermarkets
Relatively large, low-cost, low-margin, high-volume, self-service operations designed to serve the consumers total needs for food, laundry, and household maintenance products.
E.g. Hero (Indonesia), Tops (Singapore, Malaysia, Indonesia), etc
* Convenience stores
Relatively small stores that are located near residential areas, open long hours seven days a week, and carry a limited line of high-turnover convenience products.
E.g. Indomart (Indonesia), 7-eleven (Worldwide), Circle-K, Value, etc
* Superstores
Large stores that aim at meeting consumers' total needs for routinely purchased food and nonfood items.
E.g. Hypermarkets: Carrefour (Worldwide), Cold Storage (Singapore), Makro, Goro, etc
3. Current Intensive Marketing Communication Strategies
As we know, Nestle is an exceedingly outsized company with approximately twenty main brands of products. Therefore, in discussing Nestlé's current intensive marketing communication strategies, I will concentrate more on marketing one of Nestlé's beverages: Milo.
Integrated Marketing Communications (IMC) is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Nestle Company has its own marketing communication mix (promotion ...
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E.g. Hypermarkets: Carrefour (Worldwide), Cold Storage (Singapore), Makro, Goro, etc
3. Current Intensive Marketing Communication Strategies
As we know, Nestle is an exceedingly outsized company with approximately twenty main brands of products. Therefore, in discussing Nestlé's current intensive marketing communication strategies, I will concentrate more on marketing one of Nestlé's beverages: Milo.
Integrated Marketing Communications (IMC) is the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent, and compelling message about the organization and its products.
Nestle Company has its own marketing communication mix (promotion mix) strategies as any other companies also have. It consists of:
* Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. The promotions mix strategy that Nestle spends most is advertising.
Nestle advertises its products (e.g.Milo )
. Electronics
a. Television (TV)
Nestle spend most of its advertising budget on TV. We can see so many of Nestlé's products ads on different channels everyday. In Indonesia, Nestle advertises in 6 different TV channels, such as:
(Indosiar : everyday 5 to 10 times ads for each
product with 60 seconds to 1 minute
duration.
(RCTI : everyday 5 to 10 times ads for each
product with 60 seconds to 1 minute
duration.
(SCTV : everyday 5 to 10 times ads for each
product with 60 seconds to 1 minute
duration.
(AN TV : everyday ± 5 times ads for each product
with 60 seconds to 1 minute duration.
(TPI : everyday ± 5 times ads for each product
with 60 seconds to 1 minute duration.
(Metro TV : everyday ± 3 times ads for products that
are categorized more for adults, such as
Nescafe.
b. Radio
Nestle advertises in radio almost everyday ± 8 times in different channels all over the world. Even in Indonesia, Nestle advertises in different channels in each city. In Jakarta, Nestle advertises mostly in these radio stations: Prambors 102.3 FM, MTV 101.6 FM, Sonora 100.9 FM.
2. Printed
a. Newspaper
Nestle advertises in newspaper mostly on Saturdays and Sundays. They advertise in so many newspapers around the world. For Indonesia especially Jakarta, mostly they advertise through Kompas and Suara Pembaruan. These are the most popular newspapers that have the highest sales rate in Indonesia, which will assure Nestle of a higher response from the customers.
b. Magazine
Nestle advertise mostly in all kinds of magazines especially women, teenagers, and children magazines all around the world. For Indonesia, they advertise in several famous magazines as follows:
(Women magazines: Femina, Dewi, Ayahbunda, Fit
( Teen magazines: Gadis, Kawanku, Aneka, Kosmo
( Children magazines: Bobo
3. Display
Nestle publishes its products on billboards, buses, walls, etc.
? In-store
Nestle advertises its products through retailers and wholesalers.
For example, a marketer from Nestle meets
? Targeted Customers
For example, advertise the products (e.g. Milo) mainly to children, teenagers
and mothers, etc.
4. Product review
. Baby Food & Cereals
The production of infant food goes right back to the origins of the Nestlé Company. Henri Nestlé's 'Farine Lactée' was the first product to bear the Nestlé name; it was the first industrially-produced infant food, based on 'wholesome cow's milk' mixed with cereals. In the middle of the nineteenth century, one in five children born in Switzerland in the working class died before the end of their first year. Increasing numbers of mothers were going out to work, and had no time to breast feed
2. Milk and Dairy
There's plenty of evidence that milk has always been one of mankind's essential foods. A stone tablet carved 6,000 years ago records the growth of the dairy herd owned by the Sumerian King Shulgi, and an Elamite artifact from 2500 B.C. shows a peasant milking a goat. In the 17th century B.C., Hammurabi II introduced a tax on milk products sold in the markets of Babylon. But because milk is highly perishable, the storage and shipping of dairy products was always a problem. That changed in 1856, when an American named Gail Borden invented sweetened condensed milk. Ten years later, the Anglo-Swiss Condensed Milk Company opened its doors in Europe, and a new industry was born. Soon after, Henri Nestlé launched his company into the condensed milk business. By the early 1880s, the Anglo-Swiss company was churning out 25 million cans of milk a year. The two companies engaged in a heated rivalry that would last until a merger in 1905.
3. Breakfast cereals
Cereals have been a crucial part of mankind's morning meal since time immemorial. Twenty thousand years ago the people of the Kom Ombo plain in Egypt harvested wild grasses. As our ancestors began to settle into organized societies, they learned to plant grains and harvest them during specific seasons and store them for later consumption. There is evidence the Greeks started the day with porridges of grain flavored with olive oil and lamb gravy. The Romans made a breakfast gruel of barley, millet, wheat or oats.
4. Dessert, Snack, and ice cream
Ask a scientist to explain the appeal of ice cream, and you might learn that the sweet treat is at once an emulsion of fat globules and a partly frozen foam of ice crystals and air bubbles. Or that the sugar content in ice cream depresses the freezing point so low that even at -16°C, only 72 percent of the water is frozen, making it possible to scoop and chew ice cream at freezer temperatures.
5. Chocolate & confectionary
The story of chocolate began in the New World with the Mayans, who drank a dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua and used the cocoa bean for currency. In 1523, they offered cocoa beans to Cortez, who introduced chocolate to the Old World, where it swiftly became a favorite food among the rich and noble of Europe.
5. SWOT Analysis
In SWOT analysis, it consists of strength, weaknesses, opportunity and threat of the organization. In this case, we are focusing on Nestle; therefore here are the SWOT analyses of nestle.
Strength
* Nestle has always cost only a fraction of a cent per food to produce. Like most patent medicine of its time, Nestle was not capital intensive.
* Now a day, people can find Nestle easily in every single place almost all over the world. It means Nestle is widely available to consumed.
* Taste is not the only one reason people buy Nestle, but people buy it because they feel comfortable with the image and the brand of the product itself.
* Nestle has a unique packaging.
* Nestle has dedicated to environmental friendly.
Weaknesses
* The trouble in global economies contributed to Nestle's overall soft sales, which grew just 2% in the third quarter. And over the past one year, Nestle has been riddled with international woes, no doubt stepping up the pressure on the otherwise steely Nester.
* The vast number of substitute products makes it very difficult for Nestle to raise prices. Demand for the company's products is elastic, meaning sales are very sensitive to price changes. Moreover, higher packaging costs also contribute to the price increase. They're also, in part, a function of lower funding from the concentrate companies. But the companies didn't also recognize they could push volume only so far, and so they'd simply be leaving money on the table if they kept prices down.
* Above all, the company is working to improve its marketing. Nestle will have to prove it can achieve its long-range unit volume growth rate of 5% to 10%, and it can't keep blaming shortfalls on everything from currency irregularities to marketing missteps.
Opportunity
* Since Nestle already has a brand image and has been a proud to become sponsorship quite often in sport field. Its help Nestle companies to increase their brand image and keep customer loyalty to the product.
* To increase sales volume and value for money links to Nestle, the company often has sales promotions of winning prizes. For example, the product has been sold with low price during the peak summer selling in Australia.
* To solve the threat of demographic shift to a 'Healthier Lifestyle' the Nestle company has produced their Nestle new products to branches such as sugar free food.
* Beside that, Nestle has also introduced and produced their new flavours.
Threats
* There are a lot of competitors in food industry which use the similar in taste and packaging.
* Even though Nestle is the leader in the food industry, Nestle still the most expensive sell the food.
