Marketing Strategy of Nestle analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Nestle marketing mix, help the brand succeed in the market. Let us start the Nestle Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Nestle marketing strategy can be explained as follows:
Nestle is the world’s largest food company. It has around 8,000 brands with wide range of products across the market, which form the backbone of its marketing mix product strategy. But primarily it focuses on below products:-
• Dairy products:- There are many milk products that have been brought up such as Nestle milk, Nestle slim and Nestle every day.
• Chocolates:- One of the most dominant segments for Nestle is chocolates. It has popular products such as Kitkat, Munch, Éclairs, Polo and Milky Bar. It has also come up with Alpino chocolate to target the gifting segment
• Beverages:- You all know about Nescafe.
It is biggest coffee brand in the world. It is owned by Nestle. It has worldwide distribution channel.
• Ready to Cook foods:- Nestle has come up with many ready to cook foods along with products that help in cooking such Maggi Instant Noodles. Ready to cook noodle- Maggi one of the biggest hit for Nestle has become a brand in its own with different products like Maggi Pasta, Maggi sauce and many more.
Nestle Price/Pricing Strategy:
Below is the pricing strategy in Nestle marketing strategy:
Price of the products is based on the perceived quality of the product. You could find in the market that the competitor products are less expensive as compared to Nestle products belonging to same category.
Take the example of Maggi. It is priced some bit higher as compared to other instant noodles brands. It is because the perceived value of the product is much better and customer can easily pay some extra money to get a better quality. Very often you can see products with varied sizes along with variation in cost. You can find Maggi packet of 16 pieces and also single packet Maggie costing very low.
Mainly the pricing strategy for Nestle includes launching different SKU (Stock Keeping Units) at various price points (line filling) to cater different customers. With this, you can cater large customer base. We can also see they provide bulk discounts in various stores like Walmart, Tesco etc. In the segment of chocolate, they follow competitive pricing strategy. Prices are almost similar to Cadbury’s products. Thus the pricing strategy in the marketing mix of Nestle is dependent upon the competitor, product quality, geography being served etc.
Following is the distribution strategy in the Nestle marketing mix:
Most of the sales and revenues for Nestle come from European countries. It is almost 90 percent of the total sales. Typically, they follow a FMCG/CPG channel of distribution. It also involves breaking the bulb. Bulk products come out of the factory and are sent to C&F. It is a kind of warehouse where these products are kept. From there, it sent to distributors and then to retailers. Now, consumers can buy the products through retailers. They do come up with discounts and tactics to keep busy this distribution channels. Maggi and Nescafe are the two products that are in great demand. With the help of these two products, they can easily move their other products. Thus, distributor can easily get discounts on stronger products, if they buy some weaker products.
The main challenge comes in the distribution of chocolates as there are stronger players in the market.
Nestle Promotion & Advertising Strategy:
The promotional and advertising strategy in the Nestle marketing strategy is as follows:
Nestle has always come up with some unique marketing ideas when they need to brand their products. The overall marketing mix promotional strategy for Nestle focuses on extensive advertising and marketing for its individual brands and products. When Nescafe came up in the market, they brought Nescafe tunes which are still talked about it. They have always tried to push their brands to the consumers. Let’s take the example of Maggi which they associated with 2 minute snacks which can easily be prepared by the mothers. This made it pretty famous among the kids and mothers. They have always focused on the quality and nutritional values of the products.
Strong presence of Maggi and Nescafe at the ground levels has made them to push in the sales and promotions. It has always followed above the line marketing strategy. It is the strong product portfolio that makes it different from its competitors. In case of Kitkat, a very famous nestle brand, Nestle has a clear marketing message of Have a Break, have a Kitkat which has become associated with the brand. Nestle uses all media like TV, hoardings, print, online ads etc. for its promotional strategy. Thus marketing mix of Nestle is covered in the above points.
Nestle – largest food company in terms of revenue is based out of Vaud, Switzerland. It has a wide range of product line such baby foods, coffee, tea, dairy products, Maggi and many more. It has presence in 194 countries having approximate 450 factories with a head count of 339,000 people. It was founded in the year 1866 by Henry Nestle and Nestle came into existence when it collaborated with Anglo- Swiss Milk Company in the year 1905. Till now company has made many mergers and acquisitions that have expanded its customer base and visibility in the market. Nestle was ranked as No. 11 in the FT Global 500 2014 with the market capitalization of US$ 240 billion.
This is why Nestle is considered as one of the strong FMCG companies across the globe. One thing that differentiates it from other FMCG company is that it has a strong product Line.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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