Marketing Management

Marketing Management


Marketing is the heart of every business, especially in corporate sector the growing competition and inconsistent consumer’s behavior is increasing the importance of marketing. It involves in preparing market plans, conducting market research, analyzing the customer’s and competitor’s behavior, addressing the position of the company etc. (McCombie, 2016).  Hence, it is very essential to identify the company’s competitive advantage, competitors and their strategy to meet the long term goals of the company.

Overview of the company Nestle

Nestle involves in producing five categories of products i.e. instant coffee, Breakfast cereals, chocolate bars, cat foods and dog foods. It has more than 100 brands other than nestle which are successful in the market. According to research conducted by Ethical consumer, the annual revenue of the company is $90.13 billion a year. It has largest network of R&D with 34 R&D facilities, involving more than 500 people in it. It is world no.1 profitable food company in the records of Fortune Global 500 Company’s research. The company consists of more 3lakhs of the employees throughout the world. (Ethical Consumer, 2016)

Historical performance of the company

The history begins with the year 1866 by merging with Anglo Swiss Condensed Milk Company and formed ‘Nestle Group’. Later in 1905 globalization took place and started operating in multination i.e. U.S, Brittan, Spain, UK, Germany etc. The performance is average until 1920 but due to the economic slowdown and rapid hike in raw had pulled the company in to losses for first time. In 1939 Nestle’ has experienced a huge losses by plummeting it sale from $20to$6 million and company has windup.

STP analysis

  • Market segmentation

Based on the geographic segmentation the company has divided in two units such as countries, nations, regions, cities and neighborhood. The overall business was spread over in to five zones i.e. Europe, Asia & Australia, Latin America, North America and finally Africa &Middle East. Moreover, based on the weather i.e. Warm, hot and cold the distribution is been planned.

  • Targeting Customers

By targeting the customer’s based on ages it has produced the lactogenic nutritious milk powder to the infants, chocolates and breakfast cereals for children, Nescafe coffee for the middle and old age people, Maggie cooking dishes for family. It targets the middle class people and educated ones who had knowledge and minimum purchasing power to buy their product. Based on the geographical segmentations, it targets warmer areas to distribute product ‘Nestle Ice’ and colder areas for ‘Nestle Coffee’.

  • Positioning

Its unique re-packaging and promotions of the product establishes the brand position in the customer’s mind. It has an experienced people in distribution channel and customer service emphasizes on differentiating the ‘Nestle’ with their c competitors.

Marketing Mix of Nestle

  • Product

Being a world’s No. 1 brand ‘Nestle’ has introduced more than 6000 products under the roof of Nestle. In this process 4 major products produced by them are i.e. Beverages, Milk products, Cooking Dishes and Chocolates.  In this the Maggie has become the top brand under the roof of the ‘Nestle’. It involved in producing items i.e. Maggie noodles, sauces, Maggie pasta, Maggie cubes etc. The final category of products is chocolates which has raised unique importance to the brand.

  • Price

The different packages demands different price as Maggie is of 16 different packets from large to small hence the packaging distinguishes the pricing. While for the qualitative and popular products, the company follows price skimming and competitor’s pricing strategy. As it gives fewer chances for switching the customers to other brands and stables the market share of the product.

  • Place

The attribute place in the market mix is one of the key elements in this strategy. (Moura, 2015). There are two types of distribution channels used by the Nestle i.e. indirect distribution channel includes the manufacturer, wholesaler, retailer and end-user and direct destitution channel has only two members i.e. producer and the customer.

  • Promotions

The promotion of ‘Nestle’ is been done in many ways such as through advertisement in TV, internet, using billboards, shop boards, brand umbrella, wall paintings etc. The packaging is one of the effective ways of promoting the product; the company involves tetra packaging for the safety of product and the material used for it is high quality.


From the above assignment it is clear that Nestle is one of the ever leading brands in the world. This is due to marketing strategies applied by the company while promoting and product development. Here, marketing strategies and R&D activities followed by ‘Nestle’ are secret behind their success. Thus, it is essential for every company to work out on its core competencies to frame the brand position and drive the organization towards fruitful path


Behlul, T. P. A. A. G. H. R. a. V. F., (2016) The Australian Macro Database: An online resource for macroeconomic research in Australia.. New York: Routledge

Chokshi, P. S. H. A. R., (2013) Perception of Consumers towards Cadbury and Nestle.. Asian Journal of Research in Marketing, , Volume 8, p. 34

Goldreich, D. a. H. H., (2014) Interaction of equilibrium selection criteria: Round numbers as focal points in Treasury auctions.. New Jersey: Routledge

McCombie, J. a. T. A., (2016) Economic growth and the balance-of-payments constraint. New Jersey: Springer.

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