FINAL STRATEGY OF NESTLE
Nestle is one of the world’s number one food company since their beginning in 1866 when they started in Vevey Switzerland. They are also one of the largest food businesses comprising of almost 500 factories and more than 250,000 workers all over the world. Nestle has been accepted with their bestselling products including Milo, Nido, Bear Brand, Nestea, Neslac, Nestogen, Nescafe etc. these products has been passed on through generations. It has been a product of tradition that passed on until today; it is a product of hereditary choice.
Their products are regarded as one of the most suitable food that is highly recommended for the whole family. Nescafe has been a part of staple food among nations, The Milo tonic food drink and Bear brand carries their flagship products that even sports enthusiast will love. This has become an energy giving food that supplies a well rounded personality and nutritious value for children and adults alike. Undoubtedly their products have demonstrated unprecedented market dominance and successful strategic marketing practices that has been envied and imitated by other large corporation that has always been their competition. And this has been their open secret of success.
The distribution strategy integration throughout the world has become their most sustainable marketing arm that caters entirely to its original market. This distribution system covers the entire world that should be regulated and maximize to have an equal share or according to their market responses, that is why the distribution strategy has become very successful and accurately achieved, this means that no amount of products will be left in bad orders or expiration.
Their Advertising and promotional practices using all media has been very well thought off and planned to create a strong motivating desire for customers to buy their products, their market shares grow as much as ninety percent (90) to the world. This statistic has proven their dominance in their industry while other companies share the ten (10) percent of the pie. This is evident that Nestle Corporation will continue to dominate the market for the next century. Although they are the leaders in their field, the marketing executives of Nestle Products continue to strategize a dynamic system that will continue to influence their market dominance.
The first marketing strategy I would like to include is their Pricing Strategy. Managing Director Sullivan O Caroll stressed out an increase in price of their Milk, Coffee and Chocolate products, that it is evitable to increase a price of products because of the worlds increase in raw ingredients including milk, coffee bean, palm oil and wheat. The strong market competition has been tough at times that they need to increase market share, they worried about their increase that customers might go for a cheaper brand but still they strategize a plan of increase in their product price because of the surging price of raw materials that they have used. They will be gradually increasing its price in fairness to consumers demand. They will also include lots of promotion and advertisement to counter measure resistance if ever there will be customers demand.
Their second focus would be a client’s worldwide database for Renewing Globalization Strategy, this has been a very sensitive and highly confidential strategy I would like to contribute, and this strategy came from an insider of Nestle Employee. They have hired a group of interviewer throughout the world to visit Markets, Groceries and Small Stores all over the world if possible to ask for their client’s name, buying and selling preference and other pertinent information for their easy access to customer’s response. Contact information and addresses of these customers are highly important so that they can reach their customers easily in all locations. The entire respondent’s information will be included in their Computer Database so that they can easily plan and strategize their distribution through demographic and cultural approach in just a click of a button. This will be a very helpful strategy but would take months or years to prepare but will absolutely undertaken accordingly, this strategy will solidify their approach over the competition.
Lastly they will be Increasing New Product Lines that this strategy must be emphasize and regarded as nestle’ continues business strategy that they will continue to develop and innovate their strong product performance through research and development and they will increase their product line to introduce to the market. They focus on increasing product category and have funded at least USD 450 Million for two to three years expansion.
To summarize such Strategies, the company would follow a three-pronged strategy going forward “The focus would be on doubling existing capacities, increase innovations in existing categories and introducing new categories,” expects the annual growth to be above 20%. From India Nestle Market Director Antonio Hello Waszyk.
Credit:ivythesis.typepad.com
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