VAN LANG UNIVERSITY
INTERNATIONAL MARKETING
Final Exam
AN ANALYSIS OF 4P STRATEGY OF
NESTLÉ
Course: 231_7TM0620_01
Lecturer: Dr. HOANG CHI CUONG
Name: NGUYEN TRAN HUONG LAN
ID student: 207TM07010
TABLE OF CONTENTS
I. INTRODUCTION: ...........................................................................................................3
1. MEANING OF NESTLÉ LOGO: ..................................................................................3
2. HISTORY OF NESTLÉ: ................................................................................................3
3. NET PROFIT OF THE NESTLÉ WORLDWIDE FROM 2005-2022 ..........................4
II. STRATEGIC VISION OF NESTLÉ: .........................................................................4
III. NESTLÉ MARKETING MIX ANALYSIS: ..............................................................5
1. PRODUCT: .....................................................................................................................5
2. PRICE: ............................................................................................................................6
3. PLACE: ...........................................................................................................................7
4. PROMOTION: ................................................................................................................7
IV. BUSINESS DEVELOPMENT SOLUTIONS FOR NESTLÉ: ...............................10
V. CONCLUSION: ..........................................................................................................10
REFERENCES: .....................................................................................................................10
APPENDIX:............................................................................................................................11
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I. INTRODUCTION:
1. MEANING OF NESTLÉ LOGO:
- The Nestlé logo has evolved over time, but the basic elements have remained
the same. The logo is based on the Nestlé family crest, showing a bird sitting
on a nest. The name Nestlé comes from the family surname, which means
"little nest" in German.
- The current version of the logo shows a mother bird feeding her chicks in a
nest. The logo represents the nurturing and caring nature of the Nestlé brand.
2. HISTORY OF NESTLÉ:
- In the 1960s, pharmacist Henri Nestlé developed a food for children who could
not be breastfed.
- In 1905, Nestlé merged with the Anglo-Swiss Condensed Milk Company. In
the early 20th century, the company opened factories in the United States,
England, Germany, and Spain. The first Nestlé factory to begin production in
the United States opens in Fulton, New York, Oswego County.
- The war helped launch the company's latest product: Nescafé, a staple beverage
for the U.S. military. During the war, production and sales increased.
- The end of World War II ushered in a dynamic period for Nestlé, which saw
rapid growth and the acquisition of many companies.
- Nestlé is a Swiss multinational food and beverage processing company
headquartered in Vevey, Canton of Vaud, Switzerland.
- Nestlé products include baby food, medical foods, bottled water, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream, frozen meals,
pet food and snacks.
- Nestlé operates 447 factories in 191 countries and employs approximately
339,000 people.
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3. NET PROFIT OF THE NESTLÉ WORLDWIDE FROM 2005-2022
- The Nestlé Group’s net profit rose from about seven billion in 2017 to roughly
16.9 billion Swiss Francs in 2021. In 2022, net profits decreased to 9.3 billion
Swiss Francs. Nestlé is one of the world’s largest food and beverage
companies, accounting for over 2000 brands in over 180 countries.
- In 2019, the Swiss company generated about 45 % of its global sales in the
Americas, Nestlé’s largest market. Roughly 30 % was earned in Europe that
year. The Middle East, and North Africa followed with about 26%.
- In 2021, Nestlé Group’s top-selling products based on global sales were
powdered and liquid beverages, which made almost 24 billion Swiss Francs
that year. Pet Care stood in second place with just under 16 billion Swiss
Francs.
II. STRATEGIC VISION OF NESTLÉ:
- At Nestlé, the company's stated strategic vision is to become a leading,
competitive company that brings nutrition, health, and value to customers.
- Customers: product consumers are all Vietnamese people, Nestlé always
strives to research customers' preferences and consumption habits to produce
quality products suitable for many different audiences (old, young, male,
female...). It is especially aimed at children, especially children with the
following conditions: developmental delay, obesity, etc.
- Products/services: The company's main products are fast-moving consumer
products (milk, cakes, cereals, coffee...) that serve customers delicious,
nutritious meals without wasting time.
- Market: the company must compete with strong competitors in the same food
and beverage industry in Vietnam such as: TH True Milk, Trung Nguyen,
Masan, Pepsico, ...
- Technology: Nestlé is always proud of its efforts to contribute to green
industry. Lower production costs, a cleaner environment and more satisfied
consumers are the criteria for green industry that Nestlé aims for.
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III. NESTLÉ MARKETING MIX ANALYSIS:
- Nestlé's marketing strategy examines the company using the marketing mix
framework, which includes the 4Ps (Product, Price, Place, Promotion).
1. PRODUCT:
- Nestlé is the world's largest food manufacturer. The company's broad product
portfolio of approximately 8,000 brands forms the basis of its marketing mix
product strategy. However, it largely concentrates on the following items:
+ Dairy products: Nestle dairy products boast very good quality milk products
that are popular all over the world. The Health & Wellness segment relies on
milk and dairy products especially the brand Nido.
NUTRI STRONG RESOURCE JUNIOR
+ Chocolate: Chocolates are one of Nestlé most profitable categories. KitKat,
Munch, Éclairs, Polo, and Milky Bar are popular items.
KITKAT MILKY BAR
+ Beverages: You're all familiar with Nescafe. It is the world's most popular
coffee brand. Nestlé owns the company. It has a global distribution network.
NESTCAFÉ
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- Our sustainable packaging goal in Vietnam is implemented through five main
pillars:
+ Minimize: Reduce the use of virgin plastic in product packaging, eliminate
unnecessary plastic packaging and increase the proportion of recycled
materials.
+ Reduce and reuse: Expand the scope of reusable packaging and bulk
distribution systems to gradually reduce the need for single-use packaging.
+ Redesign: Pioneering the use of alternative materials, modern technology and
innovative packaging solutions to support packaging recycling and reuse. By
the end of 2021, 100% of Nestlé Vietnam's instant drink products have
switched to using FSC-certified paper straws.
+ Recycling: Collect and recycle milk cartons – cooperate with packaging
manufacturing companies. Support collection units to treat non-recyclable and
low-value plastic waste.
+ Change behaviour: Promote communication, raise awareness, and change
behaviour of employees, partners, and the community.
2. PRICE:
- Nestlé is committed to providing a diverse range of products and services to
meet changing customer needs. Nestlé's pricing power is based on packaging
and consumer pricing.
- Here are some of the strategies Nestlé has implemented to achieve its goals:
+ Nestlé Price Skimming: Nestlé uses price skimming for some of its products
when it enters the market of a country. Nestle believed that the target
consumers for Nescafe coffee were upper-middle-class consumers. Later, with
the success of this approach and strategy, they lowered the prices and targeted
the middle class.
+ Inexpensive Pricing Strategy: Amongst its wide range of brands, Nestlé
offers a fair price for quite a few of its brands and products. Pricing is based on
market segmentation. Market segments generally involve a target audience.
546.000 VND 404.000 VND
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3. PLACE:
- Most of Nestlé sales and profits come from European countries. It accounts for
almost 90 percent of total sales.
- Nestlé products are available at various stores, including grocery stores,
supermarkets, convenience stores and online stores. Nestlé also works with
restaurants such as restaurants and fast-food restaurants.
- In this way, Nestlé reaches a broad consumer base both through traditional
retail channels and through the food industry.
- The most popular FMCG company, Nestlé has its presence in 191 countries
with 2000 local and global brands and 447 factories worldwide. The brand
operates through multiple segments such as Asia Zone, Americas Zone,
Oceania & Africa, Nestle Nutrition, Nestle Waters, and other businesses.
4. PROMOTION:
- Nestlé sales promotion strategy includes advertising, sales promotion, public
relations, and personal selling. Nestle also uses promotional activities such as
discounts and coupons to encourage consumers to try their products.
- Nestlé - Marketing Campaigns: Over the years, Nestlé has launched many
successful campaigns, but some have stood out from the rest.
+ The Nescafé “Open Up” campaign is one of the most successful campaigns
by Nestlé. The campaign aimed to encourage people to connect with each other
over a cup of coffee. The ad featured people from different walks of life
sharing their stories over a cup of coffee.
+ The campaign featured the famous “Have a Break, Have a KitKat” tagline.
The ad portrayed people taking a break from their busy lives and enjoying a
KitKat. The catchy jingle and the memorable tagline made the ad an instant hit.
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+ The Nestlé “Good Food, Good Life” campaign is one of Nestlé most
ambitious campaigns. The campaign aimed to promote a healthy lifestyle and
encourage people to make healthier food choices. The ad featured people from
different cultures enjoying Nestlé products as part of a healthy lifestyle.
- Nestlé - Marketing Strategies: Nestlé is one of the world's largest food and
beverage companies, operating in more than 190 countries. The company and
its success can be attributed to innovative marketing strategies.
+ Product Innovation:
Nestlé has been known for its product innovation. The company has a
dedicated research and development team that is always working on new
product ideas. Nestlé products are often the first of their kind in the market, and
they are designed to meet the changing needs of consumers.
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+ Social Media Marketing:
Nestlé has a strong presence on social media such as Facebook, Twitter, and
Instagram. The company uses these platforms to connect with consumers,
promote its products and build brand awareness.
FACEBOOK INSTAGRAM
+ Co – Branding:
Nestlé used co-branding to promote their products. For example, the company
partnered with Starbucks to launch various coffee products under the Nescafe
brand.
+ Sampling Programs:
The company offers free samples of its products to consumers, which helps to
increase product awareness and generate word-of-mouth publicity.
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IV. BUSINESS DEVELOPMENT SOLUTIONS FOR
NESTLÉ:
- Enhance product advertising:
+ Packaging is also an important channel for advertising without additional
costs like media or other forms of advertising.
+ Promotion is one form of direct price reduction. Although it does not create
long-term competitive advantage, in the short term, promotion will stimulate
consumers to consume the product.
- Use capital effectively:
+ Apply capital to invest in new technology to maintain, expand production,
and develop markets to achieve the goals the company has set.
+ Reduce unnecessary production costs. Continue to thoroughly save money in
production through streamlining production processes as well as applying lean
production systems in production.
V. CONCLUSION:
- In the successful implementation of the marketing mix, Nestlé achieved
excellent results in 2022. Reported total sales grew 8.4% to 94.4 billion Swiss
francs. The positive effect of turnover was 1.1%. Exchange rates reduced sales
by 0.9%. Free cash flow was 6.6 billion Swiss francs as working capital
temporarily increased due to supply chain constraints and investments
remained above historical trend lines.
- 2023 outlook for the year: We expect organic revenue growth of 6% to 8% and
operating profit margin of 17.0% to 17.5%. Calculated at comparable exchange
rates, earnings per share should increase by 6-10%. The 2025 targets have been
fully confirmed: We expect continued organic sales growth in the single digits
and a return to an EBIT margin of 17.5-18.5% by 2025.
REFERENCES:
Bhasin, H. (2023, February 23). Nestle Marketing Mix. Retrieved from
https://www.marketing91.com/marketing-mix-nestle/
Karthikeyan, A. (2023, May 5). Nestle's Marketing Strategies: Building Trust, Boosting Sales.
Retrieved from https://startuptalky.com/nestle-marketing-
strategies/#:~:text=Nestle%E2%80%99s%20promotion%20strategy%20includes%20advertisi
ng%2C%20sales%20promotion%2C%20public,the%20health%20and%20wellness%20benefit
s%20of%20its%20products
Nestlé Marketing Mix (4PS) analysis. (2023). (n.d.). Retrieved from
https://www.edrawmind.com/article/nestle-marketing-mix-analysis.html
Nestlé net profit 2022 | Statista. (2023, September 29). Retrieved from
https://www.statista.com/statistics/268889/net-profit-of-the-nestle-group-worldwide/
Nestlé reports full-year results for 2022. (2023, February 16). Retrieved from
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https://www.nestle.com/media/pressreleases/allpressreleases/full-year-results-2022
Shastri, A. (2023, October 27). Complete Marketing Mix of Nestle with 4Ps in Detail | IIDE.
Retrieved from https://iide.co/case-studies/marketing-mix-of-nestle/.
Wikipedia contributors. (2023, November 18). Nestlé. Retrieved from
https://en.wikipedia.org/wiki/Nestl%C3%A9.
APPENDIX:
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