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Critical Evaluation On Nestle Marketing Strategy


Task: Prepare a report exploring Nestle marketing strategy to achieve brand success.


Nestle has dedicated a huge amount of effort towards delivering the highest quality to its consumers by initiating effective Nestle marketing strategy for over 150 years. It has resulted in Nestle becoming a commonly recognized consumer product manufacturer brand. Most consumers will prefer Nestle products simply due to the company’s commitment to delivering the very highest quality products. The assignment will explore aspects Nestle takes into consideration while planning its product portfolio, product development and marketing strategies taking CSR guidelines into consideration to ensure the brand adheres to international product development protocol.

Nestle Marketing Strategy
Nestle marketing strategy is among the best examples of 4P implementation, allowing the company to deliver high quality and diverse features linked to their product, price, place and promotion (Kanagal 2009).

Product variety
Nestle has managed to develop a wide product portfolio covering practically all consumer product categories, which has helped the company capitalize on the global market. The brand has also been in existence for over 150 years, which has resulted in Nestle being recognized as a trusted consumer product brand. It has helped the brand build consumer trust with many of its faithful consumer returning to buy the brands products despite competitors offering more attractive product specifications.

Product Availability globally
Today Nestle products are available in most nations across the globe with its manufacturing units and factories in 194 countries across the globe. It has allowed the company to monopolize on the international market and retain its competitive edge simply due to the Nestle products being available in most nations. Global product availability also allows the brand to tap to the international travelling consumer who is constantly moving from place to place. It requires them to establish a reliable consumer product brand they can turn to in every nation. For travellers having access to confectionaries, snacks, and fast food like biscuits, chocolate bars and other fast foods are best when it comes from a single trusted brand. With Nestles dominates as a global consumer product brand, the consumer is guaranteed to get the same quality product in every nation they travel to as long as it falls under the Nestle product brand.

Competitive Product Pricing
Nestle marketing strategy has managed to monopolize the consumer product industry over the past 150 years since it has been in operation, and this has also allowed the company to deliver competitive pricing. It has been achieved by the company maintaining a low-profit margin on its products and depending more on bulk sales to deliver high turnover and profits. Being an established global brand has reduced the financial pressure to make large profits to repay loans and debt, which placing Nestle at an advantage over most of its competitors (Ingenbleek et al. 2003). Mass production in low-cost production nations like China and India has also allowed the company to maintain competitive pricing on the global market. Unlike many smaller consumer product manufacturers who are only now expanding to the Asian markets, Nestle had already established itself in most Asian markets before globalization. It has allowed the company to retain its competitive edge in the region despite the competitor's brands entering the market in recent years.

Diverse Product Promotion Strategies
Nestle has also invested heavily towards its marketing and product awareness campaigns which have made use of all marketing medium to reach their consumers. Unlike the past, when marketing was mainly dependent on TV, Radio, Newspapers, banners and pamphlets, today, digital marketing constitutes the majority of marketing. Nestle has always invested heavily on promoting and use of the latest marketing medium, which has allowed the company to continue reaching their customers and informing them regarding new products and improvements to older products. It helps keep the consumer informed, which also allows the consumer to keep track of the brand's performance and contribution towards improving product delivery. Adopting and using a wide verity of promotion mediums helps Nestle to maintain communication and contact with most of its customers, thus allowing the company to retain its market position.

How Nestle marketing strategy contributes towards Corporate Social Responsibility Projects?
With social and environmental concerns on the rise in the 21st century, international brands are today is expected to make a contribution towards addressing different social and environmental problems. Nestle falls among the top 100 fortune 500 companies making the company responsible for addressing certain corporate social responsibilities (Márquez & Fombrun 2005). Nestle is also among the largest contributors towards corporate social responsibility with several dozen social responsibility projects in operation across the globe. The company organizes and manages programs linked to Agronomy Assistance, health and nutrition, Education and manpower empowerment, community development, Environmental protection and preservation, product packaging waste reduction, solid waste management, water resource management and rural development. Each of the categories is further broken down into subcategories which results in Nestle addressing a large number of corporate social responsibility programs catering for most social needs and concerns.

Nestle has grown to be viewed as a good example of a company brand which has managed to retain its brand reputation through the delivery of high-quality products, consistent innovation, competitive Nestle marketing strategy and contributions towards addressing social and environmental concerns. Put together Nestle clearly demonstrates positive leadership skills which many modern consumers want to see this further boosting their consumer’s commitment towards promoting the Nestle brand.

Ingenbleek, P. et al., 2003. Successful new product pricing practices: A contingency approach. Marketing Letters, 14(4), pp. 289–305.

Kanagal, N., 2009. Role of Relationship Marketing in Competitive Marketing Strategy. Journal of Management and Marketing Research, 2, pp. 1–17.

Márquez, A. & Fombrun, C.J., 2005. Measuring Corporate Social Responsibility. Nestle marketing strategy Corporate Reputation Review, 7(4), pp. 304–308.

Paladino, K., 2007. Investigating drivers of innovation and new product success: A comparison of strategic orientations. Journal of Product Innovation Management, 34(6), pp. 534–553.


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