In our report, we try to present the Marketing Strategies through segmentation, target marketing and positioning of Nestle

1. Marketing Strategy of Nestle
BBA lll
Ali Raza
14-Arid-4830

2. Contents
• Introduction to Nestlé
• Business Portfolio & Growth Strategies
• Marketing Environment
• Market Segmentation & Positioning Strategy
• Marketing Mix of Nestle
• Advertising Strategies
• Conclusion

3. Introduction
• Food and beverage company
• Headquartered in Switzerland
• Ranked #72 on the Fortune Global 500 in 2014
• Nestlé’s products include baby food, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream,
frozen food, pet foods, and snacks.
• Twenty-nine of Nestlé’s brands have annual sales of over CHF1
billion (about US$1.1 billion)
• Nestlé has 447 factories, operates in 194 countries, and employs
around 339,000 people.

4. History
• Henri Nestlé established Nestlé in 1867 in Switzerland
(Vevey HQ)
• His first product was lactogen formula for
infants by the name “Farine Lacteé”

5. History ( logo evolution )
1875
1938
19881966

6. History
• In September 1866, in Vevey, Henri Nestlé developed milk-based
baby food.
• In August 1867, Anglo-Swiss Condensed Milk Company was
established.
• In 1875 Henri Nestlé retired. but the company, under ownership of
Daniel Peter , retained his name as Société Farine Lactée Henri
Nestlé.
• In 1877, Anglo-Swiss added milk-based baby foods to their
products. In the same year Nestlé Company added condensed milk
to their portfolio.

7. • In 1904, Both companies participated in the creation and development of
Swiss chocolate and Nestle marketing the first chocolate - milk Nestlé.
• In 1905, the companies merged to become the Nestlé and Anglo-Swiss
Condensed Milk Company and retaining that name until 1947.
• In 1947, Merger with Alimentana S.A. (Maggi) and company named as Nestlé
Alimentana S.A. 1971.
• In 1974, Become stakeholder of L'Oreal .
• 1977 Acquisition Alcon Laboratories Inc.
• 1985 Acquisition of Carnation
• 1988 Acquisition of Rowntree
• 1990 Cereal Partners Worldwide

8. • 1991 Beverage Partners Worldwide
• 1998 Acquisitions of Spillers Pet foods
• 2002 Acquisition of Ralston Purina
• 2002 Acquisition of and Chef America and merger into Dreyer’s
• 2002 join Cadbury and purchased American company Hershey's
• In December 2005, Nestlé bought the Greek company Delta Ice
Cream for €240 million.
• In January 2006, it took full ownership of Dreyer's Grand Ice
Cream Holdings, Inc
• In November 2006, Nestlé purchased the Medical Nutrition
division of Novartis Pharmaceutical for US$2.5 billion.
• 2007 Acquisitions of Ovaltine

9. • In April 2007, Nestle bought US baby-food manufacturer Gerber
for $5.5 billion.
• 1 March 2010 , Bought Kraft’s Food (Frozen Pizza) for $3.7
billion
• In February 2013, Nestlé Health Science bought Pamlab.
• In February 2014, Nestlé sold its PowerBar sports nutrition
business to Post Holdings, Inc.
• In December 2014, Nestlé announced that it was opening 10 skin
care research centers worldwide
• 2015, opening of Education and Longevity Development (SHIELD)
centers

10. Name Nestle S.A
Logo
Industries served Food Processing
Geographic area served Worldwide
Headquarters Switzerland
Current CEO Paul Bulcke
Revenue CHF 92.2 Billion (2012)
Profit CHF 10.6 Billion (2012)
Employees 328000 (2012)
Main Competitor Unilever VN, Hershey Foods, Kraft Foods,
Cadbury Schweppes, Group Danoe

11. Nestlé in Pakistan
• Nestlé Pakistan Ltd. is registered on Karachi and Lahore stock
exchanges.
• Established its first production unit in 1988 in Sheikhupura named
as Nestlé Milkpak Limited. Now Nestlé Pakistan Ltd.
• Headquarter in Lahore
• Multi Product Factories in Sheikhupura, Kabirwala, Karachi
• Water Factories: 1 in Islamabad , 2 in Karachi

12. Mission Statement
• "We strive to bring consumers foods that are safe, of high
quality and provide optimal nutrient to meet
physiological need. Nestle helps provide selections for all
individual taste and lifestyle preferences.“
• Motto:
"Good Food, Good Life."

13. Vision Statement
"Nestlé's aim is to meet the various needs of the
consumer everyday by marketing and selling foods of a
consistently high quality."

14. Organizational Hierarchy:
REGIONAL
MANAGER
SALES
ADMINISTRATION
EXECUTIVE
AREA SALES
MANAGERS
TERRITORY
INCHARGES
SALES
DISTRIBUTION
STAFF
ZONAL
MANAGER
NATIONAL
MANAGER

15. Organizational Structure

16. Portfolio

17. (Beverages)
• Nescafé
• Nespresso
• Nesquik
• Milo
• Nescau
• Nestlé Pure Life
• Deer Park
• Vittel
• Nestlé Aquarel

18. Milk products, nutrition and Cream Products
• Nido
• Nespray
• La Lechera
• Carnation

19. Prepared dishes, cooking aids and pet care
• Maggi
• Stouffer’s
• Buitoni
• Herta
• Thomy
• Crosse & Blackwall
• Winiary
• Friskies

20. Chocolate, confectionery and biscuits:
• Kit Kat
• Smarties
• Lion
• Crunch
• After Eight
• Polo
• Cailler
• Butterfinger
• Orion
• Caja Roja
• Sao Luiz
• Star

21. Cosmetics
• L'Oreal

22. BCG Approach
Question Mark
Don’t know what to do with
Opportunities;
Decide whether to increase
investment
Magi 2-minuts noodles
Stars
Doing Well,
Great opportunities
Mineral Waters Brands: NPL
Dogs
Weak in Market,
Difficult to make Profit
Power Bar, Lean Cuisine
Cash Cow
Doing well in no growth
market with limited
opportunities.
Nesquit
MarketGrowth
High
Low High
Market Shares

23. Growth Strategy
• Transnational strategy : Low cost, Different products, Different
Markets, High local responsiveness
• Localization strategy : brand name resonates locally as the
cultural habits difference in different nations
• Customization : delivering goods that are modified to satisfy a
specific customer need. 85 percent of the market for instant coffee in
Mexico. 66 percent of the market for powdered milk in the Philippines

24. SWOT Analysis
Strength Weakness
 Product diversity
 Acquiring and merger
 Criticism
 Incident in India
Opportunity Threats
 Building partnership
 Broad Sale Channel  Changing trend
 Raising Prices of Raw materials

25. Marketing Environment
• Micro Environment:
a) Suppliers: Suppliers provide the raw material resources, unfinished
goods and labors to the company in order to produce goods and services
b) Marketing Intermediaries: The market intermediaries of the
company help to advertise, sell and distribute its product to the
end customers.
c) Customer: Immediate customers of Nestle are retail and
grocery stores
d) Competitors: Petra Foods Limited, Yeo Heap Sang Limited,
Mail Dairy Industry Co. Ltd

26. Marketing Environment
• Macro Environment:
a) Political Environment
b) Cultural Environment
c) Economic Environment
d) Technological Environment

27. Market Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral

28. Geographic Segmentation
• Weather:
Nescafe Ice: Summer
Nescafe Classic: Winter

29. Demographic Segmentation
• Age:
Lectogen: Lactogen 1 is for babies less than 7 months
Lectogen 3 Is for babies below 12 months
Cerelac: For under 1 year baby
Nido: For children of 2 year

30. Demographic Segmentation
• Occupation:
Nescafe Classic: For those who work hard
• Income:
Nestle segmented their market based on customer's earnings in an
effective way

31. Psychographic Segmentation
Life style and personality:
• Nestle provides KIT KAT these people who really want to enjoy
chocolate.
• Nescafe 3 in 1 is for exclusively those customer’s who are really
busy and do not have enough time.

32. Behavioral Segmentation
Benefits:
Cerelac:
For those customers who want more benefits from the products
Cerelac contains vitamin, mineral and all nutritious elements for
babies

33. Target Marketing
Undifferentiated:
Nescafe 3 in 1 * Maggi noodles * Kit Kat
Differentiated:
• Koko Krunch, Nesquick: Chocolate milk who want to get taste of
chocolate.
• Nescafe Ice: Cold coffee for the people in hot weather.
Concentrated:
Nestlé specializes in producing baby foods

34. Positioning Strategy
• Product Differentiation: Nestle brings a lot of product for
target different customers. As they provide 25 types of minerals in
Nido for children.
• Channel Differentiation: Nestle reach their products to
the customers through their expert market salesman and
transportation. So that their products are much available to their
respective customers.

35. Positioning Strategy
• Image differentiation: Nestlé’s logo is totally different
from its competitors that are greatly accepted by its customers.
• People differentiation: Nestle has a large number of
employees that are highly educated and trained.
• Service differentiation: better service for its respective
customers from its competitors, 24 hours hot line service

36. Marketing Mix
PProduct PPrice
PPromotionPPlace
Marketing
Mix

37. Advertising
• Nestlé is doing the selective demand advertising that is intended
to stimulate demand for individual brands.
In the advertisement of NPL the message is given that,
There is one water, which gives you, hope, happiness and trust
and that water is Nestlé Pure Life. It is pure, safe, and healthy
water.
• Slogan of NPL : JIYO! Kay yehi hay zindagi.

38. Advertising
• Sales Promotion:
• Public Relations:
• Publicity:

39. Conclusion:
The advent of consumer food products has brought a immense
change in the field in the consumers food habit. Nestle has
done well to enhance its customers loyalty operating as a
market challenger in its industry. Nestle is one of the largest
food processing company. Their products and quality mainly
depends on their experience and efficiency. Nestle believe on
quality that leads to good business and good development. It
has segmented the market based on certain clustered
preferences deploying multi-stage segmentation approach to
meet individual needs of the customers. Offering new
products would also close its existing products gaps to a great
extend ensuring satisfaction and loyalty.

40. • In our report, we try to present the Marketing Strategies through
segmentation, target marketing and positioning of Nestle

41. Bibliography
• http://www.academia.edu/
• http://www.marketing91.com/
• https://en.wikipedia.org/
• www.slideshare.net/
• http://www.nestle.com/
• http://www.strategicmanagementinsight.com/
• http://bib.kuleuven.be/
• www.gotabout.info/

42. Thank You