Marketing and Nestle

Nestle S.A., headquartered in Vevey, Switzerland, is a Swiss multinational food and beverage company with factories or operations in more than 80 countries around the world. It was founded in 1866 by Henri Nestle, and is now the world’s leading food company aims to provide “nutrition, health and wellness” to its custmer (Nestle, 2015). Nestle provides products include baby food, bottled water, confectionery, dairy products,

Consumers around the world, from village squares in Nigeria to the sky crappers of New York and Chicago, are united by the Nestle promise of quality, taste, nutrition and convenience. Nestle’s headquarters are located in Vevey, Switzerland but the Nestle Company has factories or operation in almost every country in the world. Since 1998, Nestle had employed 230,000 people worldwide, with RM71.7 billion in sales. Now moving forward to 2003, Nestle has increased the amount of employees to 253,000 people, with RM88 billion in sales. Nestle is increasing the size of their company year by year. In addition, Nestle also has increased the variety in the different products they offer. In December 2014, Nestle announced that they were opening 10 skin care research centres worldwide, deepening its investment in a faster-growing market for healthcare

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

By reducing number of products carried, the firm will be able to differentiate them better, allocate marketing budget to most profitable products, and, therefore, increase brand recognition. Additionally by focusing on fewer products, they will be able to gain economies of scale and spread their high fixed costs.

With Nestle being recognized worldwide, providing a wide variety of products ultimately results in greater flexibility and leverage for organizational decisions. In addition, existing products are prone to become stronger and gain greater value through innovations and R&D. The stronger Nestlé’s brands are the more value they can create, not only for their consumers, but also for their shareholders.

* Foreign companies, such as Nestle, have a strong competitive advantage. Nestle has a long-term investment strategy, use local production and supplier to reduce cost, train and develop local staff who has a better understanding of the local market , and develop its own storage facilities, distribution and marketing network.. In addition, Nestle develop product that fit Russian taste and traditions.

In the long run, Nestlé can gain momentum in this segment if they are able to diversify the kind

This gave Nestlé global control over the brand, except in North America,[6] and production and distribution increased with new facilities in Japan and additional manufacturing operations set up in Malaysia, India and China.[2]

By June 2000, Nestle USA was forced to halt the rollout and the project manager was removed from the

It shows this power by competitive pricing in tough markets. For example, in Europe 2013 there were tough times for major companies like Danone to meet shareholder standards. But Nestle stated in an article featured by Reuter “competitive pricing helped to lift sales growth in spite of tough conditions in emerging markets and Europe” (Reuter). The ability to play with their price gave them the upper hand as well as reevaluating investments within the company. The Chef Executive Paul Bulcke said “Investing in its strongest brands while divesting underperforming businesses, improving capital allocation and structural efficiency should help to drive growth and preserve margins” (Reuter). It ultimately helped because they ended the quarter with a slight increase in sales across the board while competitors were not so lucky. Ultimately when a product is profitable the price rises and when a product is no doing as well the price will drop. Nestle seems to always sell at an average price, never too high or too low from its nearest competitor in its prospective market. For lower income families in emerging markets Nestle also has a strategy called PPP or also known as Poplar position products. Nestle described it as “PPPs offer these consumers the opportunity to consume high-quality food products that provide nutritional value at an affordable cost and

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Nestlé employed around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world. The history of Nestlé began in Switzerland in 1867 when Henri Nestlé, the pharmacist, launched his product Farine Lactée Nestlé, a nutritious gruel for children. Henri used his surname, which means “little nest”, in both the company name and the logotype. The nest, which symbolizes security, family and nourishment, still plays a central role in Nestlé’s profile. Since it began over 130 years ago, Nestlé’s success with product innovations and business acquisitions

Johnson was instructed to find a way to harmonize processes, standardize data, and standardize systems. All of Nestlé’s worldwide business units were to use the same processes for making sales commitments, establishing factory production schedules, billing customers, compiling management reports, and reporting financial results. The units

Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million in 1938 to US$6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped

The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develop strategic intent for their business organisations following the analysis of external and internal business environments. I will analyse the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will discuss the strategy formulation that includes business-level strategy and corporate-level strategy.