Factor That Influence Customer Loyalty Towards Nestle Products

Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material

Nestlé has to face huge competition from broad range of product categories. The competition, all the rougher as, Nestlé has to deal with multinational organizations competitors with similar range of products. Moreover, the company

Nestlé’s products are categorized as business and convenience products. They different variation of products and they have a 12 product lines. Besides, they have products which are in the introduction stage, growth stage and maturity stage. Nestlé (Malaysia) Berhad are their trade name while Nestlé is their brand name. They are using mixed branding. They also provide different kind of packaging for different type of product. They are using demand-oriented, cost-oriented, profit-oriented, competition-oriented, and special adjustment approaches. Their headquarters is in Switzerland and they has 114 outlets across the world. They 7 factories in Malaysia. They are using multichannel marketing. Furthermore, they promote their products through advertising, personal selling, public relations, sales promotion and social

Customers will remain loyal based on the innovation and quality of the product. The distribution and advertising of the brand was also further investigated as well as consumer confidence.

In recent years, several accidents has happen causing a numerous amount of deaths, which has generated special attention from the Chinese Central Government. In September of 2008, several large milk and formula companies in China were involved in a scandal involving the quality of milk, which was known as the “Milk Powder Scandal” or the” Infant Formula Scandal.” Several babies became sick, hospitalized and even died because of the contamination with melamine, which is an industry chemical that causes kidney stones and

Nestle is the world’s leading nutrition, health and wellness company. From Henri Nestlé’s humble beginnings with the first product, Farine Lactée, which revolutionized infant feeding, the company’s priorities have remained the same -about bringing high quality, safe and nutritious foods and beverages to people through all stages of life. In Nestle’s pursuit of delighting and satisfying the customers, Nestle’s products are adapted to meet local, regional taste preferences, religious and cultural sentiments and disparities in purchasing power.

Melamine can be used in any human or animal food preparation as an illegal additive such as milk powder contamination scandal occurred in China in 2008. Nevertheless, Melamine can be used in food packaging material and in feedstuffs for poultry and livestock at low levels, but this amount of melamine can extraction from compression moulds by acidic foods, such as lemon or orange juice or curdled milk, at high temperature. According to this account, the amount of melamine take oral uptake of melamine was estimated around 0.007 mg melamine/kg/day. (OECD 1998).

The purpose of this study is to understand the factors that led to the declining of a brand which was once doing very good. The study also aims to measure the brand equity of the chosen brand and then to do a segmentation and positioning analysis of the brand. Finally, the study aims to recommend an STP strategy for the brand. The brand that I have chosen for the study is Lotte Lacto King.

The level of satisfaction is not a very good measure of loyalty. People do get satisfied after consumption of a number of brands and satisfaction is one of the essential criterion of generating brand loyalty. There is no fixed level of consumption satisfaction. In case a firm offers something extra as compared to its competitors, people might consider switching.

B) The brand personality of a company can be described as the set of human characteristics that attributed to the brand of a company. It is something by which the consumer can relate to the brand which can effectively increase the value of the brand by effectively communicating a sense of similarity to their customers. There are five main types of brand personalities, but the one that matches Nestle the best is, excitement. Nestle gives of vibes of a carefree attitude and connects best with consumers that are youthful and spirited. Because of the nature of the products Nestle offers, the idea of Point of Purchase (POP) becomes very important. Many of the Nestle consumers purchase their products at the payment isle of grocery stores, so POP sales become very important. This also allows packaging to play an extremely important role during the POP purchase. Because there are many other similar products in the check-out isle, it is important for Nestle to make their products stand out. According to a brand manager from Nestle, “For Nestle, packaging has a key role to play in brand recognition”. Environmental issues, mainly the use of biodegradable and sustainable materials, have a growing impact on package design and materials sourcing. This is something Nestle keeps in mind when communicating with their consumers and also when maintaining brand identity and packaging characteristics. Nestle also recently announced that they

The shared thoughts and beliefs of the customers influence the business operations. The culture, life style, norms and values force Nestle to deliver the specific product to the right segment. Nestle so far has considered the social perspective well. The company has well understood the concept that consumers changing attitude has immense importance.

Nestlé’s aim is to be known as the leader in health sector. The company objective is that they want to build trust with the end user

There are variety of goods advertise by Nestle in Malaysia. Nestle is the one of the company that provide of infant foods, bottled water, breakfast food, chocolate and bakery, appetizing, frozen food, dairy product, drinks, ice cream and pet care. It is become well known in Malaysia with their brand and with the halal certificates. Their product contains all categories which is healthier and tastier and can consume all the time. There are many products for infants such as Nestum, Cerelac, and Naturnes. Cerelac is the one of instant grains that is easily to digest. So, it is good for baby when they increase in growth

The term “Brand Loyalty” also called as “Customer Loyalty” has been in the business industry since a very long time as a model to be used in conducting business. But it wasn’t until the mid to late 1900’s that the term was actually given its due importance by making it a vital part of advertising and marketing. The concept of marketing evolved substantially from being focused on sales of a product to having Customer satisfaction to be its focal point. Studies further revealed that there was a positive correlation between customer satisfaction and Brand Loyalty.

Nestlé design is to offer sheltered, wonderful, helpful and nutritious nourishments to enhance wellbeing and prosperity of buyers of any age everywhere throughout the world. To address the issues and cravings of today's and tomorrow's customers, Nestlé is unequivocally dedicated to Research and Development (R&D) to enhance items and grow new sustenance’s with particular medical advantages.