Nestle Case Study

Nestle

Nestle is the world's foremost Nutrition, Health and Wellness Company, committed to serving consumers all over the world. Their focus is on responsible nutrition and promoting health and wellness , emphasizing responsibility and sustainability. As a multinational company - present in more than 80 countries with over 265,000 employees - Nestle is able to gain from obvious global benefits. Although they are a Swiss company, their general management represents nine different countries, and less than 2% of their sales are generated in Switzerland.

In spite of globalization, food remains a local business, based on local cultures, tastes and habits. As the early Nestle pioneers knew so well, it is absolutely vital today to stay close to consumers around the world, and to develop relevant, added-value products to meet their specific needs. Therefore, you'll get a different taste of Nestle in each of the countries where they sell products.

Nestle has some 6,000 brands, with a wide range of products across a number of markets, including coffee (Nescafe, Nespresso, etc.),bottled water(Buxton, Perrier, etc.), milkshakes and other beverages (Nesquik, Milo, Carnation, etc.),chocolate(Milky Bar, After Eight, and many others),ice cream(Häagen-Dazs, Skinny Cow, etc.), breakfast cereals (Cheerios, Golden Nuggets, Shreddies, etc.),infant foods(now including Gerber products), performance and healthcare nutrition (Nesvita, PowerBar, etc.),as well as products for cancer nutrition, post-bariatric nutrition, dysphagia nutrition, and pediatric nutrition seasonings, soups and sauces (Maggi, Buitoni, etc.), frozen and refrigerated foods (Findus, Lean Cuisine, etc.), confectionery (Rowntree products, Caramac, Wonka products, etc.), and pet food(Winalot, Felix, etc.).

Nestle is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:

*Nestle's business objective, and that of management and employees at all levels, is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, business partners and the large number of national economies in which Nestle operates;

*Nestle does not favour short-term profit at the expense of successful long-term business development, but recognises the need to generate a healthy profit each year in order to maintain the support of their shareholders and the financial markets, and to finance investments;

*Nestle recognises that its consumers have a sincere and legitimate interest in the behaviour, beliefs and actions of the Company behind brands in which they place their trust, and that without its consumers the Company would not exist;

*Nestle believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organisation;

*Nestle is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial;

Nestle operates in many countries and in many cultures throughout the world. This rich diversity is an invaluable source for their leadership. No single document can capture every legal obligation that may be required in each of these countries. Indeed, there may be conflicting legal requirements. Nestle continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. If an interpretation of anything contained in this document is construed as contrary to local laws, such interpretation should not be followed in that country.

Advertising and Sales Promotion tools

The promotional technique used by nestle is advertising. Nestle used outdoor printed media for advertising like hoarding boards, newspapers, posters, etc.Nestle attracted the existing customer of the imported brands and potentials customers through its advertising campaign.

Promotion Objectives

Following are the main promotion objective of Nestlé Easy Whip:

-Awareness and Knowledge

The most important objective of Nestle was too aware the use of their products and give knowledge to the consumers

-Preference

Nestle gave preference to its product in such a way that it is easy to use and not much costly as compare to imported brands.

-Purchase

Without purchase, the promotion objective can not be achieved. Nestle did advertisement to provide information for the decision makers and persuade their potential customer towards their product to purchase, that's why Nestle received a very good response on its initial launch.

Advertising

It is non-personal communication paid for by a clearly identified sponsor promoting ideas, organizations, or products. The most familiar outlets for ads used for the advertisement of Nestle are the broadcast (TV and Radio) and print media (news papers and magazines). Nestle also uses other advertising vehicles like billboards, T-shirts and, more recently the Internet. Nestle has its own website which is giving the information about the different brand of the company.Nestle is doing the selective demand advertising that is intended to stimulate demand for individual brands.

For example,on billboards the pictures of NPL(Nestle pure life) advertisement seems so attractive, especially in summer season across the roads that it motivates the customer to purchase it immediately.

Sales Promotion

It is demand-stimulating activity designed to supplement advertising. It is paid for by the sponsor and frequently involved a temporary incentive to encourage a sale or purchase. Many sales promotions are directed at consumer. Nestle has designed it in away to encourage the company's sales force or other members of the distribution channel to sell products more aggressively.In Nestlé, a separate sales department is working. The function of this department is to taking the sales orders, visiting the market, collecting the customer's complaints and transferring to the concerned department.