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What is there key success factors, marketing strategy, competently structure, market audit as well as how they develop their market segmentation, target racket, positioning strategy, advertising and promotional activities and what Is the output. Background of the Organization Today’s Nestle??, the world’s largest food and nutrition company, founded by the Henry Nestle?? (1 0 August 1814 – 7 July 1890); a German confectioner in Vessel, Switzerland in 1866.
In the food industry Nestle?? is the most trusted name with high quality products. ??Good food Good Life is the mission of Nestle??, which drives the company to provide consumers with the best tasting and most nutritious choices In a wide range of food and beverage categories and eating occasions. The vision of ??creating shared value and the very own ??Corporate Business Principles” shaped the company culture and made them a reliable Investor over 86 countries of the world.
Today Nestle?? employs around 280000 people and have factories or operations In almost every country of the world with a total equity of CHEF 62. 60 billion. History of Nestle??: 1866-1905: Henry Nestle??’s quest for a healthy, economical alternative to breastfeeding Is the Important factor that drives the history of Nestle?? Company. Henry Nestle??, pharmacist, began experimenting with various combinations of cow milk. His ultimate AOL was to help combat the problem of infant mortality due to malnutrition.
People quickly recognized the value of the new product, as Nestle??’s new formula saved the life of children within a few years. In August, 1867 Charles and George Page, two Company in Sham. In 1877 Anglo-Swiss added milk-based baby foods to their products and in the following year the Nestle?? Company added condensed milk so the firms became direct and fierce rivals. Henry Nestle?? retired in 1875 but the company under new ownership retained his name as Farina Lace??e Henry Nestle??.
Their headquarters in Glendale, California, USA. 905-1918: The Company formed by the 1905 merger was called the Nestle?? and Anglo-Swiss Milk Company. Most production facilities remained in Europe, however, and the onset of World War I brought severe disruptions, as a result acquiring raw materials and distributing products became increasingly difficult. At the same time the war created tremendous new demand for dairy products, largely in the form of government contracts.
By war’s end, the Company had 40 factories, and its world production had more than doubled since 1914. 1918-1938: The end of World War I brought with it a crisis for Nestle??. Rising prices for raw materials, the worldwide postwar economic slowdown, and declining exchange rates made the situation worst. In 1921, the Company recorded its first loss. Nestle??’s management brings Louis Dapples as an expert to deal with the situation; his rationalized operations and reduction of the company’s outstanding debt improve the financial condition.
On the other hand Nestle??’s first expansion beyond its traditional product line came in sass by producing chocolates. In the meantime Brazilian Coffee Institute first approached to Nestle?? in 1930 to reduce Brazier’s large fee surplus, after eight years of research Nestle?? came with Nesses?? became an instant success 1938-1944: in this period World War II were felt immediately upset the business once again and Profits dropped from $20 million in 1938 to $6 million in 1939.
To overcome distribution problems in Europe and Asia, factories were established in developing countries; particularly in Latin America. As the end of the war approached, Nestle?? executives found themselves unexpectedly heading up a worldwide coffee concern, as well a company built upon Nestle??’s more traditional businesses. 944-1975: The graph of growth sets its trends little higher between 1944 and 1975. As a result many new products were added as and outside companies were acquired. In Nestle?? merged with Aliment S.
A in 1947, purchase of Finds frozen foods occurred in 1960, Lobby’s fruit Juices Joined the group in 1971 and Stouffer frozen foods in Andean finally in 1974 the Company became a major shareholder in L’Oreal??al, one of the world’s leading makers of cosmetics. The Company’s total sales doubled in the 15 years after World War II. 1975-1981: In sass the economic situation was in challenge due to price of oil rose, Roth in the industrialized countries slowed down and worldwide unstable political situation. In 1975 and 1977 price of coffee bean and the price of cocoa tripled.
In this situation to maintain a balance, Nestle?? went to second venture outside the food industry by acquiring the pharmaceutical and ophthalmic product producer Alcoa Laboratories Inc. Of U. S; as a result it increased competition and shrink the profit margins. Strategic acquisitions are the two important moves in this period. As a result between 1980 and 1984, diversification of several non-strategic or unprofitable businesses occurred. On the other hand Nestle?? managed to put an end in the third World to about a serious controversy over its marketing of infant formula in this period.
In 1984 Nestle?? acquire American food giant Carnation and became one of the largest company in the history of the food industry. 1996-2002: The opening of Central and Eastern Europe, along with China and a general trend towards liberalizing of direct foreign investment was good news for the company. On the other hand in July 2000 Nestle?? launched a Group-wide initiative called GLOBE (Global Business 8 Excellence) aimed to simplifying business process. Two more acquisitions took place in this period-U. S. CE cream business was to be merged into Dryer’s and the acquisition of Chef America, Inc. A leading U. S. -based hand-held frozen food product business. 2003-2009: Within this area the acquisition of Move pick Ice Cream, Jenny Craig and Uncle Taboo’s enhanced Nestle??’s position as one of the world market leaders in the super premium category. On the other hand Innovators Medical Nutrition, Gerber and Whinnies Join the Company in 2007. Meanwhile Nestle?? entered into a strategic alliance with the Belgian chocolates Pierre Marooning at the end of 2009. 10 to onward: In mid-2010 Nestle?? finalized the sale of Alcoa to Innovators; at the same time Nestle?? bought Karat’s frozen pizza business. Another important move in this period is launch of Special. Tea machine system and the completion of the CHEF 25 billion share buyback program. Global Brand of Nestle??: 1 . Baby foods: Cereals, Gerber, Gerber Graduates, Natures, Museum 2. Bottled water: Nestle?? Pure Life, Peppier, Poland Spring, S. Pipelining 3. Cereals: Chopin, Cine Mints, Cookie Crisp, Satellites, Fitness, Uniqueness Cereal 4.
Chocolate & confectionery: Rare, Butterfingers, Calicle, Crunch, Kit Kate, Orion, Smarmiest, Wonk 5. Coffee: Nesses??, Nesses?? 3 in 1, Nesses?? Cappuccino, Nesses?? Classic,Nesses??Decaf, Nesses?? Dolce Gusto, Nesses?? Gold, Newspapers 6. Culinary, chilled and frozen food: Button, Heart, Hot Pockets, Lean Cuisine, Magi, Stouffer, Tommy 7. Dairy: Carnation, Coffee-Mate, La Laity??re, Indo 8. Drinks: Juicy Juice, Mill, Uniqueness, Nested 9. Food service: Chef, Chef-Mate, Magi, Mill, Minor’s, Nesses??, Nested, Soar,Lean Cuisine, Stouffer 10.
Healthcare nutrition: Boost, Untrue Junior, Pattern, Resource 12. Petard: Alp, Bakers Complete, Baneful, Cat Chow, Chef Michaels Canine Creations, Dog Chow, Fancy Feast, Felix, Friskier, Gourmet,Purina, Purina ONE, Pro Plan 13. Sports nutrition: Powerboat 14. Weight management: Jenny Craig Nestle?? in Bangladesh Popular Nestle?? brands started entering this part of the sub-continent during the British rule and the trend continued during the pre-independence days of Bangladesh. After the independence in 1971, Nestle?? World Trade Corporation, the trading wing of Nestle?? S.
A, sent regular dispatch of Nestle?? brands to Bangladesh through an array of indentures and agents and some of the brands such as NECESSARY, CEREALS, LACTOSE, and BLUE CROSS etc. Came some very common products. Nestle?? Bangladesh Limited started its commercial operation in Bangladesh in 1994. Its total authorized capital is ITS . 5 billion and total paid up capital is TX 1. 1 billion. The only factory of the company in Bangladesh is situated at Usurper, 55 km north of Dacha. The factory produces the instant noodles and cereals and repacks milks, soups, beverages and infant nutrition products. Today Nestle?? Bangladesh Ltd. s a strongly positioned organization. The Company is continuously growing through the policy of constant innovation, concentrating on its core competencies and its ointment to high quality food to the people of Bangladesh. Since the beginning of Nestle??’s operation in Bangladesh, the chairman of the company has been Mr.. Latitudinarian, one of the top industrialists of the country, his firm Transact used to import the products of Nestle??. His business house Transact is still involved in wide range of business like beverage, pharmaceutical, electronics, newspaper, tea export, fast food franchises etc.
Still he remains as an honorary chairman of the company although his group Transact does not capture any share today as Nestle?? S. A. Holds 100% share of this company. In Bangladesh Nestle??’s vision is-to be recognized as the most successful food and drink Company in Bangladesh, generating sustainable, profitable growth and continuously improving results to the benefit of shareholders and employees Customers of Nestle?? Bangladesh Limited of the distributors. A part from that, Nestle?? Professional is a separate function which is responsible for the institutional sale.
There are currently 80 distributors of Nestle?? Bangladesh products of which 76 are retail distributors and remaining 4 are Nestle?? Professionals distributors providing products for the out of home consumptions. The hole country is divided into six regions. Dacha North Dacha South Chitchatting Bogart Chula Sylphs Figurer : Sales regions Functions of Nestle?? Bangladesh Day by day demand and trust on the Nestle?? products are growing. Focusing on the substantial growth and the other business perspective, the company developed its own functional areas. No matter how many functions are running, their main aim is to gain ultimate excellence.
Every function contributes from their end to meet the corporate goal. The General Management take cares of the overall operation of the company and makes the key decisions. Human Resource focuses the management of employees and organizational culture; moreover HER professionals are also responsible for retaining the people who are making the difference with their competitors at the end of the day. Supply Chain ensures the stable supply of the products according to the demand of the customers. Marketing looks after the existing brands, market share and product development of the products.
Nestle?? is the world’s largest Nutrition Company that is why the importance of the Nutrition products is much more in compared to the other food companies; as a result they created a totally separate team to look after the Nutrition products, such as, CEREALS, LACTOSE. Finance and control deals with the financial transactions and most importantly they also apply the control mechanism to remain the company complaint financially and procedurally. Finally Sales and Nestle?? Professionals are responsible for earning revenue for the company, but sales goes for the retail distributors and Nestle?? Professionals looks after the institutional sales.
Key Success Factors Strong brands / relationships with consumers-Research and development- Innovation and renovation-product availability- Building relations with medical and scientific community in light of Nestle?? Bangladesh Ltd. This report tried to analyze the following components of marketing strategy through different theories and applications: External factors Social: Nestle?? makes an effort to integrate itself as much as possible into the cultural and social values of the different countries.
During operation in Bangladesh Nestle?? has launched products with integration of social & cultural factors. This has been done to match the taste buds of Bangladesh consumers. Ethical: Although Nestle?? faces ethical dilemmas in centralization of its products, it does not consider its their quality in order to make their product widely available to all. Internal factors: Marketing structure Nestle?? is more people, product and brand oriented than system Marketing structure: Nestle?? is more people, product and brand oriented than system oriented.
Nestle?? favors long-term successful business development and even to greater extent, customer life-time value. At the same time Nestle?? does not lose sight of the necessity to improve in terms of quality, price and distribution. However, Nestle?? remain conscious of satisfying the wants needs and demands of its consumers. It is also aware of the need to generate a sound profit annually. Nestle?? seeks to earn nonuser’s confidence, loyalty and preference and anticipate their demands through innovation and renovations.
Therefore Nestle?? is driven by an acute sense of performance adhering to quality and customer satisfaction Nestle?? is as decentralized as possible within its marketing strategic definitions requiring increasing flexibility. Nestle?? is always committed to the concept of continuous improvement of its activities and customer satisfaction through market segmentation, positioning and target marketing. The effective formulation of their marketing strategy depends on the proper match between the three key elements: Consumer Quality Competition One thing to be mentioned is that the match between consumer and quality is most important for Nestle??.
Besides there are some other concerns that effect the marketing strategy. This concerns are where to compete, how to compete and when to compete Marketing Strategy The current marketing strategy of the company is based on the foundation of the four pillar strategy which has the following factors: Market Segmentation Nestle?? is targeted towards the consumer market. So Nestle?? food products can be treated as consumer products. The major factors which play key role in the process f consumer segmentation are: 0 Demographic (age, income, etc. 0 Consumption pattern 0 Social economic factors 0 Brand loyalty patters 0 Perceptual factors 0 Cultural factors Proper consideration of the given factors results in effective consumer segmentation for Nestle??. Since the product range is expensive in Bangladesh; Abysmally, the Marketing Officer, says, “. Consumers. Target market ћ … We have to concentrate strongly on income of Nestle??’s main focus is the socio-economic class, which is the company wide target. Nestle??’s potential consumers are those who acknowledge that Nestle?? is all about laity and most importantly those who can afford the products.
The strategy for selecting their target market is the following: 0 Income level 0 Quality realization Positioning strategy Nestle??’s positioning strategy comprises of the three steps: 0 identifying the right competitive advantage 0 choosing the right competitive advantage 0 selecting the right completive advantage The company then effectively communicates and delivers the chosen position to the market. Nestle?? strongly believes that their products are specific and so are the product benefits. This, Fossil Lam, the marketing officer, termed as “Benefit
Positioning” Regarding new upcoming products, Nestle?? is looking forward to renovation and innovation for Magi noodles and soups. This might be in terms of new flavors or improvising the quality and the quantity of the products. Advertising and Promotional activities The company focuses on its corporate image that “Nestle?? is all about quality’. It hardly emphasizes on promotion and publicity because consumers in Bangladesh already know that ensuring product quality is what Nestle?? focuses, not price. Nestle?? mainly focuses the two possible advertising objectives: Persuasive advertising
Since Nestle?? is already an acknowledged and quality food product company in Bangladesh, it does not emphasize much on publicity and promotion. Here are a few points to ponder about advertising done by Nestle?? Bangladesh Ltd. : Nestle?? cannot advertise for infant milk. Mass advertising is done for new products only Advertising and promotion is done by product wise 15% of marketing communication budget is spend for publicity More indulged into product sampling and test marketing Nestle?? had performed test sampling in the year 2003 on Nesses??. Nestle?? Bangladesh Ltd. As specialized agencies for their promotional purposes. They are: Product name advertising agencies: Nesses?? -United. Mill – (25%) United Magi Proposition Polo – Proposition. Nestle?? is associated with the following profiles of major media types: Medium Responses Newspapers (e. G. Paranormal) Small Pass along audience, appear. 1 lash. High cost per exposure. TV Reach up to 20 lash audience Billboards Very few Local Magazines Negligible Outdoor – The given table suggests that Cost per Contact is better in television advertisement than in newspapers and other media for Nestle??.
Nestle?? also believes that television receives better clutter, fleeting, exposure and a mass audience for promotion, which is only to be considered for Nestle?? Bangladesh Ltd. The main advertising is done on television and to a very little extent, newspapers. The emphasis is on building a corporate image about maintaining their high quality. There are also considerations underway to promote upcoming brands and products to extend their promotional activities by putting up more billboards, posters, flyers, decisions are carried out by the marketing department.
Hence, Nestle?? Bangladesh is trying to integrate their promotional activities and have an integrated marketing approach Competition Structure Nestle?? supports free enterprise and therefore competes fairly and ethically and expects other company’s right to do so. The competition structure for Nestle?? in Bangladesh is very limited whereas it faces bigger challenges in other countries such as India, china,etc. Still Nestle?? tends to face competition in the food market. In terms of quality and product square is the biggest challenge and threat.
Para is the strong contender in terms of turnover. When it comes to beverage and drinks Nestle?? consider Alsatian and Cola to be strong players. Although 70-80% consumers prefer Magi noodles, Cola seems to be catching up fast. In terms of competitive advantage, quality seems to be the foremost tool for Nestle??. Although Nestle?? tends to face criticisms in terms of price and number of products sold, in comparisons to local competitors, Nestle?? intends to abide by their policy which never attempts to compromise quality.
Nestle??’s Consumer Communication and Relationship Nestle?? is committed to offering consumers high-quality food products that are safe, tasty and affordable. The Nestle?? Seal of Guarantee is a symbol of this commitment. It also believes in maintaining regular contact with the consumers. This applies both to owe they present their products and to how they address their consumers’ questions and concerns. When Henry Nestle?? prepared his first boxes of infant formula for sale, he put his address on the packages so people would know where to go if they had questions.
Today, the Consumer Relationship Panel with the words “Talk to Nestle??” expresses the same commitment. This is why they have a worldwide Nestle?? Consumer Services network devoted to caring for their consumers. Nestle??’s people have expertise in a wide range of areas such as nutrition, food science, food safety and culinary expertise. They provide the prompt, efficient and high quality service that consumers expect from Nestle??. In addition, the expertise teaches them talk with consumers and above all, to listen. Listening helps them to understand what people want.
Nestle?? uses the insights gained from relationships with consumers to drive product development. Nestle?? care for Nestle??’s consumers because its success depends on meeting their needs and expectations. Through listening and understanding, it can make products that they will want to use all through their lives. Although Nestle?? is very conscious of its role in communicating responsibility to nonusers, Nestle?? in Bangladesh does not really perform much consumer communication. As noted their marketing officer, “For Nestle??, our consumers are our Department” where the purpose is served.
A P. O. -Box had been assigned where consumers can send complaints, mails or any enquiries directly in order to reach Nestle??. This can also be termed as “Post Purchase Service”. Consumer communication is not much practiced in Bangladesh because at the moment, Nestle?? does not have any organized internal database of its consumers. Hence, it can be said that Nestle?? hardly takes any initiatives in case of consumer communication. However, for specific brands, such as Mill, Nestle?? Bangladesh has an organized database of 1000 consumers who are the core that is final consumers of Nestle??.
Whenever, there are any upcoming new products, Nestle?? sends these loyal consumers newsletters, leaflets, free samples and even feedback questionnaires. This is the only consumer communication that Nestle?? does in Bangladesh; also consider to be Direct Marketing. For any other products Nestle?? never performs consumer communication. Customer Satisfaction Level: Nestle?? regards its consumers as its most valuable asset involvement at all levels start tit open communication whether it deals with customer satisfaction or their needs and wants.
Nestle?? recognizes that its consumers have a sincere and loyal interest in the behavior, beliefs, and actions of the company behind brands in which they place their trust. With it consumers the company would not exist. Nestle?? satisfies consumers in many countries and cultures throughout the world. According to the Marketing officer Nestle?? Bangladesh Ltd, customer satisfaction varies from one aspect to another. In terms of product delivery consumers do not give similar responses. He explained with the simple example, Nesses?? for some is refreshment, for others it is relief.
At the end of the day, Nestle?? consumer are 100% satisfied with the high quality of Nestle?? products. Nestle??’s Commitment to Environmentally Sound Business Practices Nestle?? respects the environment, supports sustainable development and is committed to environmentally sound business practices throughout the world. To fulfill this commitment, Nestle??: integrates environmental principles, programmers and practices into each business; strives for the continuous improvement of its environmental performance through application of the Nestle??
Environmental Management System (NEWS); Complies with applicable environmental legislation. Where none exist, Nestle??’s own internal rules are applied; and Provides appropriate information, communication and training to build internal and external understanding concerning the Company’s environmental commitment. The Supply Chain Bringing a food product to the consumer involves a continuous process from farm to table. Integrated measures for preserving the environment, and consequently for optimizing global environmental benefits, are put in place along the supply chain.
Nestle?? endeavors to apply the following practices to meet its environmental commitment. Raw Materials In general, Nestle?? is not directly involved in the production of raw materials. Wherever possible, locally available raw materials are used. They are either obtained directly from producers or purchased through trade channels. Nestle?? applies the legal and internal quality criteria, including limits on possible environmental contaminants; whenever possible, preference is given to raw materials that are produced by environmentally sound farming methods (e. . Integrated crop management); and farmers are encouraged to apply sustainable farming methods and, where appropriate, are provided with assistance in crop production and dairy farming. Such assistance includes the provision of recommendations for the conservation of natural resources (soil, water, air, energy, and biodiversity) and techniques for reducing environmental impact. Manufacturing Manufacturing comprises all processes that are necessary to transform perishable raw materials into safe and convenient food products for consumers.
Nestle?? strives to achieve optimal performance in its manufacturing activities, including the environmental aspects. As such, the manufacturing practices of the Group: Respect natural resources by emphasizing the efficient use of raw materials, water and energy; Minimize the use of environmentally critical substances; continuously seek improvement in the efficiency of production facilities; and Reduce waste generation and emissions as much as possible; consider recycling of waste as priority and dispose of non-recyclable waste in an environmentally sound manner.
Regular environmental assessments of Nestle??’s manufacturing practices are conducted to: Evaluate factory performance; Review factory compliance with applicable legislation ND Nestle??’s own standards; Packaging fully investigates incidents that could affect the environment and take relevant measures; and Compare results with previous targets and set new improvement objectives.
In addition, Nestle?? exchanges information on environmental protection technology and practices in order to ensure a wide use of best practices. Nestle?? encourages its contract manufacturers to use environmentally sound manufacturing practices. Packaging serves a major role in our daily lives. It protects food products from spoilage and ensures safety from manufacture through storage, distribution and consumption. Packaging may also provide tamper-evidence features.
It communicates information, including nutritional information and serving instructions, and provides the convenience demanded by today’s consumers. Nestle?? is committed to reducing the environmental impact of packaging, without jeopardizing the safety, quality or consumer acceptance of its products. It is Nestle??’s objective to develop safe and wholesome packaged foods using the most efficient and appropriate packaging materials available, while, at the same time, satisfying consumer requirements and expectations.