Marketing is one of the most complex areas of the companys performance, which requires companies to accommodate according to the area of their activity. First, it is essential to define differences in marketing strategies applied both globally and locally. Otherwise, the approaches applied at the local level will not bring the same efficiency in the decision-making process of the company across the world. The following discussion analyzes the performance of the most successful company in the food processing sector Nestle. It describes the company with its peculiarities along with the marketing mix influenced by PESTLE factors presented in every country of the companys performance.
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Nestle is considered the largest food company on the global level, which produces a broad range of products including baby food, confectionary, cereals, pet foods, coffee and tea, snacks, medical food, ice cream, dairy products, frozen food, and bottled water. All these products help Nestle to have a global presence in the food processing sector by meeting customers needs and taking care of their satisfaction. The company was founded in 1866 by Henri Nestle in Vevey, Vaud, Switzerland. Since that moment the company started its active growth and development by producing infant formula and condensed milk. Further, the history of the company includes a myriad of the acquisitions, which helped it to extend the scope of its performance by adding new product lines. Today, Nestle has more than 8000 brands of products meeting needs of customers all over the world. The companys profits allow it investing in various projects including animation, music festivals, and sports. Thanks to the companys profitability and return on investment, the company manages to generate profits besides its manufacturing activities. In addition, the company is a shareholder of LOreal, which proves that Nestle became one of the most reliable entrepreneurs all over the world thanks to its financial stability. From the point of view of establishing the marketing strategy, Nestle faced various challenges. It became difficult to accommodate the marketing strategy used in Switzerland to other countries. In addition, the entrance of Nestle to the international market led to significant problems in competing with domestic leaders of food processing sector. Nevertheless, the local culture of gathering information helped Nestle to adopt its global strategy to the performance in every country. As a result, the company successfully produced ethnocentric products with full confidence in meeting customers needs. One of the product lines, which brought millions of dollars to Nestle, is breakfast cereal. In particular, the discussion goes on to analyze the essence of the international marketing strategy, which helps to encourage customers purchasing Fitness Cereal as one of the healthy options for breakfast. In combination with the global trend aimed to take care of health, it is an appropriate choice to see the companys accommodation to the customers needs and tastes across the world.
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Trends and Developments within the Sector
One of the major trends in the development of food processing sector refers to the publication of the dietary guidelines by a healthcare sector on an annual basis. In fact, the current trends show that there is an overall tendency to the prevention of heart diseases, obesity, and diabetes, which influences food choices of millions of people all over the world. In addition, the emergence of fast food led people to heart diseases, which prevent them from normal way of life. As a result, social trends of health and wellness continue to provide a major impact on the food processing industry by refusing to purchase genetically modified food along with products with excessive amount of fats. In general, the profitability of the main competitors of Nestle and Nestle have a reflection in the following diagram, which presents the major trends.
Nestle uses a flexible and organized marketing mix, which helps it to introduce new products on both local and global levels. In fact, Fitness Cereal is one of the products, which is widespread enough to encourage consumers to try new dieting options offered by Nestle helping to take care of health. First, from the point of view of products, Nestle uses product line extensions to impress consumers and meet their tastes. In case of Fitness Cereal, Nestle added different flavors including chocolate, honey and almonds, and fruits to the breakfast cereal. In addition, Nestle also offers its consumers to try eating classic cereal without any flavors. In general, cereal is a global product, which commonly penetrates eating habits of every person. From this point of view, Nestle did not need any additional options aimed to meet customers needs from the cultural point of view. Even four different flavors of the cereal helped it to remain competitive in every country of the companys performance.
As for the price, Nestle has an overall advantage of the pricing power over its products as long as it is the primary leader in food processing sector globally. As a result, the price for Fitness Cereal is affordable and flexible enough to attract attention of every customer. Nestle also provides customers with discounts and special offers, especially when consumers make bulk purchases. Nestle is also generous on coupons and discounts, which have a seasonal character attracting customers by the companys care about their financial sustainability.
Nestle obtained its global presence by wisely distributing its products and choosing the most appropriate places for distribution. In the majority of cases, Nestle did not think much about place of distribution, as long as it decided to spread its products with the help of malls, supermarkets, canteens, hospitals, and even public places. As long as the company has a broad list of product lines, it became easy to choose a broad range of distribution spots, which would benefit the company. As for Fitness Cereal, supermarkets, malls, and even fitness centers offer their visitors to try one of the best health food options.
Promotion is another significant aspect in the distribution of products, especially breakfast cereals. In general, every product of Nestle has a strong support of the advertisement nourished with facts about products helping consumers to take care of their health. For example, Fitness Cereal had a video advertisement on TV showing women one of the best healthy ways of losing weight without limiting themselves in tasty food. As a result, it became a powerful boost of sales helping women to gain confidence in losing weight.
People also obtain a significant position in the marketing mix of Nestle. Nestle successfully operates in 194 countries by managing 447 factories and employing approximately 400 000 workers. There are many distribution centers along with factories in every country, which generate marketing campaigns according to the consumers needs and tastes. In this way, it becomes easy for the company to accommodate to the cultural peculiarities of every region.
As for the processes, the company has always been making a special emphasis on the innovational aspect of both manufacturing and distribution. For example, in India, Nestle placed vending machines for a comfortable distribution of products according to the customers needs. Every country requires Nestle to consider every marketing point in order to meet the customers requirements.
Finally, physical evidence is a significant aspect in the marketing mix of the campaign, which finds its presence in every product of Nestle. Effective labeling helps not only to inform the customers on the nutrition facts, but also tell about Nestle. As a result, the customers generated a natural connection between the company and products produced under its brand name.
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Implications of Segmentation, Targeting and Positioning
Segmentation, targeting, and positioning are one of the most valuable elements in the marketing plan of Nestle. Segmentation covers a process of assessing consumers according to demographic, geographic, behavioral, and psychographic characteristic features. It helps to transfer to the targeting stage, which uses the analyzed information about consumers to target their needs, tastes, behavioral patterns, and demographic characteristic features. Finally, positioning helps to create an appropriate impression about the companys products in the minds of consumers. Breakfast cereals target families, which means that the target audience of the products are individuals belonging to different age groups. In terms of the marketing campaign supporting Fitness Cereal, the target group of consumers are primarily women willing to take care of their body parameters and weight loss activities. As a result, the company created various advertising techniques by creating a perfect dietary product fitting the willingness of women to lose weight. Lifestyle, personality traits, and personal interests reflect the customers desire to purchase Fitness Cereal based on their behavioral patterns. The positioning of the product as a healthy food option with different flavors became a savior for many women willing to eat healthy food without loss of taste and appetite. Finally, Nestle supported the global trend of fitness, which led people to the reconsideration of their food options. Along with healthy trends, Fitness Cereal positioning in the market became a reliable source of profits for Nestle.
The political environment is one of the crucial elements in the expansion of the companys performance. Nestle analyzes every country of expansion carefully and precisely in order to meet legal requirements. As long as Nestle has already faced some legal issues in the production of baby food in Asian countries, it became clear that if the company does not meet the manufacturing requirements, it is most likely to face fines. In general, the company depends on the political changes in every country as long as new laws may lead to the changes in funding arrangements and public priorities, which will lead Nestle to the revision of its international marketing strategy.
Inflation rate, national income per person, and economic growth rate are one of the most important indicators in the assessment of the economic influence on the companys performance in every specific country. Nestles marketing strategy depends on the economic sustainability of the country, where it operates, as long as it sets the purchasing abilities of the consumers. In this way, the company analyzes the economic environment before entering it in order to establish the most appropriate pricing strategy. The countrys economic changes may also encourage Nestle to transform its way of managing business in order to make the financial results of the companys activity appropriate.
Society and culture also have a significant influence on the performance of Nestle, which require flexibility and accommodation to the business environment. Any changes in the attitudes, behavioral patterns, or lifestyle influence the profits of the company from the distribution of its products. For example, the global healthy trend may increase the sales of Fitness Cereal, while the sales of snacks and chocolate products will face a significant decrease. As a result, the company will have to adjust to the changeable tastes and eating habits of consumers.
Technologies have always led Nestle to the transformation of its performance according to the developmental conditions of business environment. From the point of view of international marketing strategy Internet and e-commerce became one of the important aspects in the performance of Nestle, which continue to dictate further improvements. As soon as technologies have a significant impact on Nestle and its productivity, it is essential for the company to accommodate to changes and implement them as fast as possible in order to rake care of personal competitive position.
As for the legal and environmental factors, Nestle performs according to the policy, which requires it to provide employees with appropriate payments and take care of the environmental sustainability of business across the world. The global presence makes it mandatory for Nestle to regulate its performance according to the requirements of every country. Otherwise, illegal performance will burden its reputation.
Conclusion & Recommendations
The analysis of the performance of Nestle showed that the company shows outstanding professionalism in understanding customers needs, their tastes, and demands. As a result, it becomes possible to navigate through different markets depending on their cultural preferences and ethnic peculiarities. In general, the analyzed product showed that Nestle entered the global trend of health and wellness in a timely fashion, which allowed it accommodating to the consumers needs. In this way, Fitness Cereal became one of the major products supporting the global trend towards choosing healthy food options. From my point of view, the companys international strategy along with marketing campaigns should support the healthy trend and be an initiator of further changes in food processing industry. As long as Nestle has various product lines including snacks, beverages, coffee, and ice-cream, it should take care of adding new healthy options with consequent transformation of products according to the healthy trends. In this way, the company will be capable of retaining customers with full efficiency and responsibility for providing employees with high quality products. This approach will help Nestle to remain competitive and reduce the negative influence of competitors across countries. In general, the company should continue to support its marketing strategy on both national and international levels as long as it is effective enough in targeting consumer needs. The marketing mix in combination with PESTLE analysis showed that Nestle is careful enough in choosing appropriate ways of distribution and marketing approaches leading to the enhancement of the companys global presence. Finally, the company should intensify its impact on the consumer behavior by adding more TV advertisements showing the potential benefits of its products. Nestle should continuously inform its target audience on the advantages of its products and the latest changes in healthy food options offered to the customers.