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Nestle Case

Essay by   •  February 16, 2013  •  Case Study  •  1,937 Words (8 Pages)  •  981 Views

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Nestle needs to have enough information about the country inflation rate, economic growth rate, and national per person capital income, in which they are willing to start their business. Economic condition varies from country to country. Before starting the baby milk has focus on the above factors. These are the factors that Nestle has to consider before setting corporate objectives. Global economic turmoil has major influence on Nestle business because customers are spending less and they have to adopt different strategies in order to run business smoothly.

3: Social analysis

Social or cultural environment had great impact on Nestle. The main focus of social/ cultural includes the Social change involves changing attitudes and lifestyles. The social and cultural environment is constantly changing. Different countries had different culture (language, religious beliefs, food, family, clothing and their lifestyle). Nestle has to developed strategies which are according to belief and culture in multicultural country like UK. Every country has different consumer taste and lifestyle and Nestle has to develop effective strategies in order to met different lifestyle consumer behaviour. Company is totally dependent on the consumer lifestyle and their attitude. Product or services cannot be successful until company has enough information about the consumer lifestyle. Nestle has to take social and cultural factors under consideration in order to achieve their strategic objectives.

4: Technological:

Technological change has the most rapid, persistent and profound effect. It creates opportunities for new products and product improvements and of course new marketing techniques- the Internet, e-commerce. Technology creates opportunities for new product or product improvements and new techniques of marketing such as internet and e-commerce. Technology has great influence on business operations and overall decisions. Nestle uses technology by taking orders via telephone and online by internet. Moreover, Nestle uses technology in various business activities such as record of their customers and employees.

Corporate Objectives

For any firm it is important that corporate objectives are consistent with the overall marketing objectives. Taking corporate objectives and strategy, a company might want to give a description to the Ansoff's Matrix, Boston Matrix to establish that where the company is and in which way it wants to lead.

Nestle's corporate objective is one of the world best and largest branded food industry. It is very important that the corporate objectives are fully practical for each product line with the overall objectives of the firm as a whole.

Marketing Objectives

Nestle can set marketing objectives in the business for their product and also for their profit centre. The primary objectives for baby milk to improve its position as the world's number one selling product. To achieve this position Nestle has to develop a marketing strategy, product development, distribution and promotion. For the improvement of baby milk these strategies must be flexible and at the same time it is important to take care and avoid the damage of the product.

Ansoff's Matrix

In the business Ansoff's Growth matrix helps to decide the growth of product and market strategy. We can suggest by Ansoff's Growth that product or market depends on whether in new or existing markets.

1: Market Penetration

Market penetration means that a growth strategy where the business emphasis on selling existing products into existing markets.

By market penetration main objectives can be achieved.

1: By maintaining and increasing the current product's market share, this can be achieve by a mixture of attractive pricing strategies, e.g. sales promotion, advertising

2: Secure production of genetic feature of growth market.

3: Spread usage of regular customer, for example by loyalty schemes

2: Market Development

In marketing development we can sell the existing products into new markets. To approach this strategy there are so many ways, including

For example exporting to a new country, new packaging, new distribution channels, pricing policies to create new market segments.

3: Product Development

Introducing a new product into existing marketing is known as product development. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.

4: Diversification

Diversification is the name given to the growth strategy where a business markets new products in new markets.

This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience.

For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.

Competitive Strategies

1: Cost Leadership Strategies

Companies can acquire competitive advantage via a cost leadership strategy. This is usually gained by companies that are able to achieve economies of scale in production and marketing. Such companies buy raw materials in bulk and they produce on a large-scale. They are thus able to market at low prices and this is usually to the mainstream food retailers.

France and the UK have organic juice companies that have gained market leadership via this strategy. Conventional juice companies undertake this strategy in the organic juices market because of their large production capacity and established contacts. This strategy is not viable for new entrants that have low financial resources and specialized products.

2: Differentiation Strategy

A differentiation strategy involves companies marketing a product that is clearly distinguishable from others in the marketplace. In the market, this means the product has attributes that are distinct from others,



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