A Brief Background On Nestle Marketing Essay

A apprise Backg number On nest Marketing EssayIn the 1860s Henri Nestl, a pharmacist, developed a pabulum for babies who were unable to breastfeed. His first success was a premature infant who could non tolerate his m early(a)s milk or all of the usual substitutes. People quick recognized the value of the refreshed reaping, after Nestls unsanded formula saved the childs life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe.In 1905 Nestl merged with the Anglo-Swiss Condensed take out companionship. By the early 1900s, the company was operating factories in the United States, Britain, Ger many a(prenominal) and Spain. World War I created new demand for dairy products in the form of g everyplacenment contracts. By the end of the state of war, Nestls production had more than doubled.After the war Government contracts dried up and consumers switched back to fresh milk. However, Nestls management responded quickly, streamlining operations and reducing debt . The 1920s saw Nestls first expansion into new products, with chocolate the Companys second most(prenominal) important activityNestl felt the effects of World War II immediately. Profits dropped from $20 trillion in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Companys newest product, Nescaf, which was a staple drink of the US military. Nestls production and sales rose in the wartime economy.1944-1975The end of World War II was the beginning of a dynamic phase for Nestl. Growth quicken and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse Black well followed in 1960, as did Findus (1963), Libbys (1971) and Stouffers (1973). Diversification came with a sh atomic number 18holding in LOral in 1974.1975-1981Nestls growth in the developing world partially offset a slowdown in the Companys traditional markets. Nestl made its se cond venture outside the nutriment industry by acquiring Alcon Laboratories Inc..1981-1995Nestl divested a fleck of line of productses1980 / 1984. In 1984, Nestls improven bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation.1996-2002The first half of the 1990s proved to be favorable for Nestl trade barriers crumbled and world markets developed into more or less integrated vocation beas. Since 1996 at that place cast been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002 in July, Nestl merged its U.S. ice cream art into Dreyers, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.2003 +The year 2003 started well with the acquisition ofMvenpick Ice Cream, enhancingNestls position as one of the world market leading in this product category. In 2006, Jenny Craig and Uncle Tobys were added to the Nestl portfolio and 2007 sawNovartis Medical Nutrition, Gerber and Henniez join the Company.Nestl is the worlds leading Nutrition, health and wellness company. We are committed to increasing the nutritional value of our products while improving the taste. Weachieve this through ourbrands and with initiatives care the Nutritional Compass.Since Henri Nestl developed the first milk food for infants in 1867, and saved the life of a neighbours child, the Nestl Company has aimed to framing a business as the worlds leading nutrition, health and wellness companybased on sound human values and principles.The Nestl Corporate agate line Principles are at the basis of our companys culture. We contrive built our business on the fundamental principle that to have long- name success for our shareholders, we not only have to keep abreast with all applicable legal conveyments and ensure that all our activities are sustainable, but additionally we have to create si gnificant value for society.At Nestl we call this Creating Shared Value.OurCorporate Business Principles will push to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of our Company, and reflects the basic ideas of fairness, honesty, and a general concern for commonwealth.Nestl is committed to the following Business Principles in all countries, taking into account local anaesthetic anesthetic legislation, ethnic and religious practicesNestls business objective is to manufacture and market the Companys products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.Nestl does not favour short-term profit at the expense of successful long-term business development.Nestl recognizes that its consumers have a sincere and legitimate interest in the behaviour, beliefs and actions of the Company behind brands in which they gravel their trust, and that wit hout its consumers the Company would not exist.Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible for(p) conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is respectable in order to ensure that the elevatedest standards are met throughout the organization.Nestl is conscious of the fact that the success of a participation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right tribe and ongoing training and development are crucial.Nestl continues to maintain its commitment to follow and respect all applicable local truths in all(prenominal) of its markets.The Nestl Corporate Business PrinciplesThe ten principles of business operations Consumers1 Nutrition, Health and Wellness2 Quality dominance and product safety3 Consumer communication Human rights and compass practices4 Human rig hts in our business activities Our people5 Leadership and face-to-face responsibility6 Safety and health at work Suppliers and customers7 Supplier and customer relations8 culture and rural development The environment9 Environmental sustainability10 Water ConsumersNutrition, Health and WellnessOur nubble aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthy food and drunkenness choices and encouraging a healthymodus vivendi. We express this via our corporate proposition Good Food, Good Life.Quality assurance and product safetyEverywhere in the world, the Nestl name represents a promise to the consumer thatthe product is safe and of high standard.Consumer communicationWe are committed to responsible, reliable consumer communication that empowersconsumers to exercise their right to informed choice andpromotes healthier diets. We respect consumer privacy.Human rights in our business activitiesWe fully support the United Nations Globa l Compacts(UNGC) guiding principles on human rights and labour andaim to make an example of good human rights and labourpractices throughout our business activities.Leadership and personal responsibilityOur success is based on our people. We treat each other with respect and dignityand await everyone to promote a sense of personal responsibility. We recruitcompetent and motivated people who respect our values, provide equal opportunities for their development and advancement, encourage their privacy and do not tolerate any form of torment or discrimination.Safety and health at workWe are committed to preventing accidents, injuries and illness related to work,and to protect employees, contractors and others involved along the value chain.Supplier and customer relationsWe require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to tie to our non-negotiable standards. In the same way, we are committed towards our own cu stomers.Agriculture and rural developmentWe contribute to improvements in agri pagan production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable.Environmental sustainabilityWe commit ourselves to environmentally sustainable business practices. At all stages of the product life beat we strive to use natural resources efficiently, favour the use of sustainably-managed renewable resources, and target zero waste.WaterWe are committed to the sustainable use of water and continuous improvement in water management. We recognise that the world faces a growing water challenge and that responsible management of the worlds resources by all water users is an despotic necessity.Commitment of the Chairmanand the chief(prenominal) Executive OfficerPeter Brabeck-Letmathe Chairman of the BoardWe believe in the importance of a strong compliance culture that is fully infix inour business. The Corporate Business Pr inciples and the supporting documents reflect this commitment and thus protect the trust of our consumers and other stakeholders in the Nestl brand. Our internal rules not only require strict compliance with the law, they guide our actions even if the law is more lenient or where there is no applicable law at all. For Nestl, upholding compliance goes beyond keeping checklists. It requires steadfast principles that impart across the whole Company, providing clear guidance to our people. As the Chairman and the Chief ExecutiveOfficer of Nestl, we are committed to making sure that our entire Company is managed according to these principles and require adherence to them from all our employees approximately the world.We are also committed to continuous improvement and are spread out to external engagement regarding any area of our Corporate Business Principles.The Nestl Corporate Business Principles are at the basis of our companys culture, which has developed over the span of 140 yea rs. Since Henri Nestl first developed his successful infant cereal Farine Lacte, we have built our business on the fundamental principle that to have long-term success for our shareholders, we not only have to comply with all applicable legal requirements and ensure that all our activities are sustainable, but additionally we have to create significant value for society. At Nestl we call this Creating Shared Value. Although our Nestl Corporate Business Principles were first published as an integrated document in 1998, most had already been established in individual form many years before. While the Business Principles are firmly established, they also continue to evolve and adapt to a changing world. For instance, Nestl incorporated all ten principles of the United Nations Global Compact soon after their foot and continues to implement them today. This latest revision differs from the previous two versions in that it establishes Creating Shared Value as Nestls fundamental business principle.In addition, each principle is specifically linked to on-line copies of more little principles, policies, Standards and guidelines. This has allowed the statement of each principle to be more succinct, while providing more detailed implementing measures related to each one on the worldwide web. Also, for the first time, a map of the principles and an overview of related company measures is involved at the start of the document. We believe in the importance of a strong compliance culture that is fully embedded in our business.The Corporate Business Principles and the supporting documents reflect this commitment and thus protect the trust of our consumers and other stakeholders in the Nestl brand. Our internal rules not only require strict compliance with the law, they guide our actions even if the law is more lenient or where there is no applicable law at all. For Nestl, upholding compliance goes beyond keeping checklists. It requires steadfast principles that apply acros s the whole Company, providing clear guidance to our people. As the Chairman and the Chief Executive Officer of Nestl, we are committed to making sure that our entire Company is managed according to these principles and require adherence to them from all our employees around the world. We are also committed to continuous improvement and are open to external engagement regarding any area of our Corporate Business Principles.MISSION STATEMENTAt hold close we believe that research can help us make better food so that people live a better lifeMarketing and sales clutch is one of the worlds largest global food companies. It has over 500 factories in 76 countries, and sells its products in 193 nations. Only 1% of sales and 3% of employees are located in its home pastoral, Switzerland. Having reached the limits of growth and profitable penetration in most Western markets, draw near turned its attention to emerging markets in Eastern Europe, Asia, and Latin America for growth. Many o f these countries are relatively poor, but the economies are growing quickly. Thus a consumer base capable of buying many snuggle products will develop over the next couple of decades. hold close tries to enter emerging markets ahead of contentions, and build a substantial position in basic foodstuffs. As income levels rise, the company progressively moves from these niches into more upscale items. It very much contractes on developing local goods for local markets, however, and places relatively less dialect on its global brands in emerging markets. It also localizes its distribution and market strategy to the requirements of the local market. When good opportunities are available, nuzzle acquires local firms. come near is a very decentralized organization, with operating decisions pushed down to local units. On top of this are both a SBU organization focused around food groups, and a regional organization that tries to help rationalize production and market among nea rby countries. Helping hold the organization in concert is a group of managers who rotate around the world on various assignments. During the year under reassessment the company achieved sustainable profitable growth by capitalizing on the opportunity presented by a overbearing business environment. This became possible through successful marketing and sales strategies and focus on key initiatives. variety and renovation remained the key to development of new products.Because draw near competes in a b roadway range of geographic areas as well as in a broad range of product categories, it faces competition from an every bit broad range of companies. Some of its competitors are multinational organizations with similar product lines that cross regional bounds. These include Philip Morris, RJR Nabisco and Unilever. Other companies focus on a single product area in which Nestle competes. The progeny of this type of competition is that Nestle must compete vigorously across its intern ational customer base. Since the product categories in which Nestle participates are no longer in the introductory or growth phase, there is increased price pressure, as well, which means that companies who do not focus on marketing and on competitive pricing can quickly lose large amounts of market share which can be difficult to recover. In some cases, smaller competitors have brought pressure on governments to help regulate the activities of Nestle this is not polar from companies in other countries. The acquisition of Source Perrier is a prime example of this. Although Nestle had acquired other companies in the past which had similar products to its own, the Source Perrier acquisition brought considerable critics.Nestle uses local brands in a wide range of local markets and focuses on trying to optimize ingredients and processing technology to local conditions. That is why, the company needs to be flexible and able to adapt rapidly to local demand and cultural differences. Doin g business in different countries means different ethical standards, different business expectations, and different cultural norms. Nestle claims that it can reduce risks and concentrate its marketing resources by narrowing its initial market focus to just a few strategic brands. Its global strategy must be backed up with the necessary financial and human resources and knowledge management should be introduced to spread information throughout the company. Clearly, the portal of a company into the global marketplace creates numerous challenges. Knowing that innovation and quality were key determinants, Nestle transferred these distinctive competencies to foreign markets. In Nigeria, for example, Nestle had to rethink its traditional distribution methods (operating a central warehouse), because the road system was poorly developed and there was much violence. This example shows, that the company was able to respond quickly to different local conditions.You are undeniable to relate a ll your findings to Nestle. working class 1You are required to compare alternative definitions of marketing. In your opinion what would be the appropriate definition for Nestle, justify your answer.(outcome 1.1)Definitions alternative definitions including those of the undertake Institute of Marketing and the American Marketing Association, satisfying customers needs and wants, value and satisfaction, exchange relationships, the changing emphasis of marketing.Definition of marketing (4 is enough)a) which definition is more appropriate for Nestle.b) you can chooseyour own definition too.Task 2Identify the main characteristics of a marketing oriented organization and how do u think Nestle fair in this. (outcome 1.2)Marketing impression evolution of marketing, business orientations, societal issues and emergent philosophies, customer and competitor orientation, efficiency and effectiveness, limitations of the marketing concept.Main characteristic of a marketing oriented organizationL ink it to NestleTask 3Explain the various elements of the marketing concept. interest your findings to Nestle (outcome 1.3)Marketing process overview marketing audit, integrated marketing, environmental analysis, SWOT analysis, marketing objectives, constraints, options, plans to include target markets and marketing mix, scope of marketing.Marketing conceptRelate to NestleTask 4You need to Identify and assess the benefits and costs of a marketing approach. Do you think Nestle has achieve this? Justify your answer. (outcome 1.4)Costs and benefits benefits of building customer satisfaction, desired quality, serving and customer care, relationship marketing, customer retention, customer profitability, costs of too narrow a marketing focus, bring quality marketing.How to build customer satisfactionDesired quality are achievedService and customer careRelationship marketingCustomer retentionCustomer profitabilityCost of 2 narrow and marketing focusTotal quality marketingRelate this to NestleTask 5Identify and relieve macro and micro environmental factors which influence marketing decisions. You need to do an analysis as to how Nestle is affected with micro and macro environment and how do they overcome the problems encountered. (outcome 1.5)Macro-environment environmental scanning, political, legal, economic, socio-cultural, ecological and technological factors.What their intelligence information are?What happend?How they solve it?Task 6Propose segmentation criteria to be used for two products in different markets. You are required to choose any two products of nestle and propose the segmentation appropriately. (outcome 1.6)Micro- environmental stakeholders (organisations own employees, suppliers, customers, intermediaries, owners, financiers, local residents, pressure groups and competitors), direct and indirect competitors, Porters competitive forces.Segmentation (e.g baby product/ health product)What is segmentationWhy is it important?Relate it to NestleWhat kind of market they are going to proposeTask 7Outline the factors which influence the choice of targeting strategy. As Nestle has wide range of products in many different countries you can choose any products and compare how the strategy differs in one country to another. (outcome 1.7)Buyer behaviour dimensions of buyer behaviour, environmental influences, personal variables- demographics, sociological, physiological- motivation, perception and learning, social factors, physiological stimuli, attitudes, other lifestyle and lifecycle variables, consumer and organisational buying.What is marketing strategy all about?Why is it important?What is the benefit?Relate it to NestleTask 8You are required to explain how buyer behaviour affects marketing activities in two different buying situations. Relate your findings to Nestle. (outcome 1.8)Segmentation process of market selection, macro and micro segmentation, bases for segmenting markets is geographic, demographic, psychographic and beha vioural multivariable segmentation and typologies, benefits of segmentation, evaluation of segments and targeting strategies, positioning, segmentation, evaluation of segments and targeting strategies, positioning, segmenting industrial markets, size, value, standards, industrial classification.What is buyer behaviour?Why doing buyer behaviour analysis?Relate it to Nestle