Market Positioning

1498 Words May 1st, 2016 6 Pages
| Consumer Behavior | Assignment-1 | Submitted To: Mr. Umar Mukhtar | | |

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Nestle offers a lot of sizes and package options. Thus, with the variety available, customer can make his own choice based on his consumption. In other products like Kitkat and Munch, due to tough competition from other companies, Nestle offers competitive pricing. We can find that nestle will be similar priced to many of Cadbury’s Products in the chocolate segment.
Place:
Nestle follows the FMCG 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 FMCG 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 Maggi which is the most in-demand product along with Nescafe. 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.

Promotion:
Nestle uses promotion as one of the major source to reach their customers to make them aware of the