Advantages of Segmentation Beverages – One of the most known coffee brands Ensnare, belongs to the house of Nestle and is one of the cash cows for Nestle. However, it is not the biggest cash cow. Nestle has a worldwide distribution and has many different variants. Looking at India, Nestle has also launched Nested. Milk and Milk products – Nestle everyday, Nestle slim and Nestle Milk maid are some of the milk and milk based products from the house of Nestle. Prepared dishes and cooking aides – Nestle has a third category of products which comes into prepared dishes and cooking aides.
The major cash cow of Nestle lies in this segment, which is Magi Noodles. Probably one of the most widely sold ready to cook noodle brands is Magi. Magi has a fantastic taste and quality. Thus, it was not a surprise, that Nestle expanded the Magi brand to create an umbrella of different products like Magi pasta, Magi sauce, Magi cubes etc. The magi range Needs wants and demands Marketing mix of Samsung – UP of Samsung Service Marketing Mix Marketing Mix of McDonald’s Behavioral Segmentation RECENT POSTS Marketing mix of Delete The importance of Secondary market research Secondary market research
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Marketing mix of Domino’s Experimental research Marketing mix of Flippant 4 types of Market segmentation and how to segment with them? Contributes vastly to the bottom line of Nestle. Chocolates – Nestle has some popular chocolate products, most popular being Nestle Kit, Munch, Milky bar, ??clairs and Polo. The newly introduced Alpine is targeting the gifting segment in response to various chocolates like Dairy milk and Brownsville by Academy. The chocolates segment of Nestle is a star, where the competition is high and the expense is high but at the same time the market size is huge as well.
As we can see, two major brands of Nestle are a very high contributor to its Brand equity – Ensnare and Magi. These are two brands sold across India in small as well as big shops and super markets. There have been many competitors for these products, like Bur for Ensnare and Top Ramee and Sunsets Yippee against magi. The appreciable factor in Nestle is that quality maintenance of products is Upton mark and there are hardly any complaints about Nestles products in the market. This is a major achievement for a company which relies major on food products. Price
The price is dependent on the market of each individual products. For example, Ensnare and Magi being the clear leaders are priced with higher margins for the company as compared to competition. This is because the product quality is good enough and a bit of skimming price will not cause the customer to switch brands. The strength of pricing for Nestle comes from its packaging or consumption based pricing. For Ensnare as well as Magi, Nestle offers a lot of sizes and package options. In supermarkets, you can even find a 16 packet magi whereas in small retail shops, oh can find 5 RSI magi.
Thus, with the variety available, customer can make his own choice based on his consumption. In other products like Kit and Munch, due to tough competition from other companies, Nestle offers competitive pricing. You will find that nestle will be similar priced to many of Caduceus Products in the chocolate segment. Placement – Nestle follows the FMC strategy of distribution which involves breaking the bulk. The typical distribution strategy of Nestle is as follows. Manufacturing C & F agent >> Distributors >> Retailers >> Consumer Manufacturing Bulk buyers >>
Consumer These are the two different forms of distribution which Nestle has. It is typical of any FMC company. However, the Nestle channel is known to be strong with a good marketing and sales network for channel distribution. On top of it, Nestle regularly introduces trade discounts and various tactics to keep the channel motivated. The major challenge is in the distribution of Magi which is Marketing mix of Channel How to conduct Observational research? How to get prospects for sales? ULTIMATE GUIDES The ultimate guide to Positioning the most in-demand product along with Ensnare.
Due to these two products, Nestle is able to drive other products in the market as well. Thus, on purchase of one weak product, the distributor might get a discount on the stronger product or vice versa. The challenge for Nestle is in the chocolate segment where it faces stiff competition from Academy and hence selling the chocolates becomes difficult. Kit might have its own brand positioning, but it is not better than Dairy milk. Thus, converting retailers to sell Nestle instead of Academy is the toughest task for Nestle. This is converted mainly through promotions. Promotions
One of the most widely known tunes is the Ensnare tune. It was one of the best advertising campaigns and was launched at least 2 decades back. However, that campaign brought Ensnare strongly in the market. On the other hand, Nestles brand was pushed by the excellent product quality of Magi and the witty and innovative campaigns of Magi. Where Ensnare focuses on value and the good things in life, Magi focuses on moments you had with your Magi. The recent campaign was completely focused on your magi story, where people had to come out with various innovative ways that they had their magi.