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Nestle Speech

Nestle is the world's largest food and beverage company founded 50 years ago with over 2000 brands across 189 countries. Its purpose is to enhance quality of life and contribute to a healthier future. The company uses various segmentation, positioning, and marketing strategies tailored to different markets, including demographic, geographic, and behavioral segmentation. It conducts SWOT analyses to understand its strengths as a renowned global brand with a broad product portfolio and large workforce, but also faces weaknesses such as legal issues, opportunities in healthy products and expanding markets, and threats from competition and increasing commodity prices.

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kapil chandwani
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260 views3 pages

Nestle Speech

Nestle is the world's largest food and beverage company founded 50 years ago with over 2000 brands across 189 countries. Its purpose is to enhance quality of life and contribute to a healthier future. The company uses various segmentation, positioning, and marketing strategies tailored to different markets, including demographic, geographic, and behavioral segmentation. It conducts SWOT analyses to understand its strengths as a renowned global brand with a broad product portfolio and large workforce, but also faces weaknesses such as legal issues, opportunities in healthy products and expanding markets, and threats from competition and increasing commodity prices.

Uploaded by

kapil chandwani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Good morning to everyone present here I will be talking about a fortune 500 company

founded 50 years back called nestle, according to nestle it is the world’s largest food and
beverage company having more than 2000 brands under them. They are in 189 countries
globally.

Nestlé's purpose is enhancing quality of life and contributing to a healthier future. They
work sincerely to help shape a better and healthier world. That is how they contribute to
society while ensuring the long-term success of their company. Nestlé’s business practices
have been governed by integrity, honesty, fair dealing and full compliance with all
applicable laws. Nestlé employees worldwide have upheld and lived this commitment in
their responsibilities ever since, and their reputation remains one of the Company’s most
important assets today.

I will be talking about the marketing strategy of nestle

The world’s leading FMCG Company is using different strategies in different markets. It
uses demographic, geographic & behavioural segmentation strategies to cater to the
changing needs of the most competitive industry.

It uses a mix of value-based & product based positioning strategies depending upon the kind
of product they are branding & the market in which it is selling the products.

They use two methods one is marketing mix and the other is swot analysis.
We will look at the swot analysis which is the company’s strength weaknesses oppurtunities
and threats.
The strengths are:
A World Renowned brand: It is fortune 500 Company and is world’s largest food company
measured by revenues (2014). Nestle does individual branding of their different food brands
which help them in creating awareness about their various food brands. This also helps
them because if a brand like Maggi is affected, it does not affect the sale of Coffee.
Extensive distribution system: With its diversified product portfolio Nestle has been
successful in penetrating Urban as well as rural markets. Locally adapted distribution
methods & decentralization in supply chain, including street markets, mobile street vendors,
door-to-door distributors & Medical outlets has helped the company in making its products
visible in the market. If you just look at the
Broad Product portfolio: Nestle has more than 8000 brands / products under its name which
ranges from beverages like Coffee & Mineral water, Breakfast cereals, Soups & sauces etc.
Under each product categories Nestle have deep assortments to satisfy different needs &
wants of the consumers.
Large workforce: Nestle have engaged 340000 odd global workforce who are continuously
working to make its products available in every nook & corner of the world.
R & D centers: Nestle have the world’s largest food & nutrition research organization, with
about 5000 people involved in R & D, as well as corporate venture funds and research
partnerships with business partners and universities. It has 21 research centers globally.
Brand equity – As of 2016, it is the 37th highest rank brand in the world which says a lot
about its brand equity.
It has well-established relationships with other powerful brands, including Coca-Cola,
Colgate Palmolive and General Mills.

Weaknesses in the SWOT analysis of Nestle


Maggi Controversy – In India, Maggi was recently banned because it was found to contain
additives which were harmful. This affected the brand name of Nestle as well as Maggi big
time. However, it has been relaunched recently and Nestle is trying to convince people
about the quality of Maggi.
Brand structure: It has many brands under the same umbrella group so managing such large
number of individual brands can create conflict of interest.
Legal & consumer issues: Although Nestle is global food giant but it got into controversies
over the years like Nestle baby formula boycott. Child labor by suppliers, Chocolate price
fixing etc. which resulted in negative word of mouth.
The company is heavily dependent upon advertising to shape consumer opinion and drive
traditional sales. This can lead to high marketing costs with a questionable return on
investment.

Opportunities in the SWOT analysis of Nestle


Healthy breakfast – Maggi oats or other such healthy breakfast alternatives have a big time
future as most breakfast alternatives are heavy and people are becoming more health
conscious. Nestle needs to do more market penetration with regards to its Cereals.
Expanding market: By entering into other markets & penetrating more & more in the rural
markets through its robust supply chain and transition of spots of unorganized business to
organized one will lead to further expansion of the company’s business.
Increasing Income levels: Due to stable political scenario, improved literacy rate &
controlled inflation, disposable income of the people is increasing there by resulting into
upsurge in demand & changing their lifestyle.
Strategic Alliances: Nestle is already engaged in partnerships with a number of major
companies, such as Coca-Cola, and several others, opening doors of opportunities for the
company. It is one of the main shareholders of L’Oreal, the world’s largest cosmetics So
partnering with other food giants will help the company in further growth.
Focusing more on R & D to handle ethical issues: Recent outcry of Maggi Noodles in India for
lead presence like issue will create hindrances in the future growth of the company. So in
order to handle these health issues Nestle must invest in R & D further to come up with
more hygienic food products.
Growth in online retail could open up new distribution channels such as Amazon Prime that
can bypass traditional retailers.

Growing middle classes in nations such as China and India create larger and broader
markets for Nestle’s products.

Increased disposable income in countries like China could increase the demand for luxury
items like bottled water, ice cream and pet food.

Changes in lifestyle, such as longer work hours, more women in the workforce, and more
single-person households, increase the demand for prepackaged foods.
Increased mobility and car ownership increase the demand for candy, bottled water and
snack foods in nations like China.

Increased interest in health and nutrition could increase demand for some Nestle products,
such as energy drinks.

Threats in the Marketing strategy of Nestle


Competition in the market: With increasing number of local & national players it’s becoming
very hard for the companies to differentiate themselves from others. There is also threat
from counterfeit products destroying its brand image in the market.

Price of commodities: Increasing price of commodities will result in further increase in the
price. Further increase in price will result in decrease in sales, margins & brand switching.

Buyers power: With highly diversified consumer goods market where there are lots of
brands claiming different sorts of benefits, it’s very difficult for consumers to stick to a
particular brand & hence results into brand switching where consumer got power to select a
brand based on several factors like availability, reference group recommendation,
preference & price.

Consumers in some countries are eating fewer meals at home, which means less demand
for some Nestle products. Bloomberg reported that Americans’ spending on restaurant
meals overtook spending on groceries for the first in April 2015.

Despite the threats, Nestle still owns some of the world’s best-recognized and most
profitable food brands.

Their main corporate social responsibility is help 50m children live healthier lives,
Strive for zero environmental impact in their operations and help improve 30m households
who are associated with their businesses

By concluding I would mention their net worth which is US$247 billion


And their total sales are 90,832 m worldwide.

Thank you

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