Market Positioning

Nestlé has to determine the current strength and weakness of the Maggi brand by gaining feedback from the consumers. This data can be used to make decisions on the current business problem faced by Nestlé.

Brand positioning is essential to the success of any firm because it delivers a perception into the consumer’s minds which differentiates them from their competitors. Microsoft began to grow their brand over 20 years ago with Bill Gate’s an underlying vision of “a computer on every desk and in every home”. This resulted in Microsoft developing into a huge multinational company with personal computing at the forefront of their business. Microsoft dominated this industry for many years which is reflected in the high brand recognition of Microsoft products worldwide.

The “Nestlé way” is to dominate its markets. Its overall strategy can be summarized in four points:

Whilst making marketing decisions a business must decide their method of marketing. This will then be the way in which all future marketing activities will be planned. This is marketing planning. It has a huge number of benefits for any business. It’s influenced by the strategic plans of the business and its corporate objectives. Large public limited companies such as Nestle will usually have an overall plan for the business and has set objectives which they’re able to achieve. Smaller companies within the business will then create their own marketing plans which fit in with the overall strategic plan. The business has to consider several questions before coming up with the marketing plan:

Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material

In case of pasta product development, Nestlé took benefit of acquiring Lambert’s Pasta and Cheese which has the required experience for manufacturing and marketing in this category. NRFC did not perform a test market, but due to Lambert’s Pasta and Cheese experience, the risk of product failure was very limited. However for pizza and topping development, NRFC has faced technical problems that forced the company to drop the preassembling pizza concept even with 52% positive purchase intent. Because of the competition with Kraft, NRFC has skipped test market and consider pizza as natural extension to its existing product line. However, pizza product will take benefit from efficient existing supply chain management. Therefore pizza, will expend less to establish the distribution channel. Due to pasta product similarities, NRFC believes that marketing inputs from previous product are enough, hence marketing researches and tests where slightly different. No

In the long run, Nestlé can gain momentum in this segment if they are able to diversify the kind

Market segmentation is usually regarded as one of the main elements of marketing, with benefit segmentation commonly referred to as the most meaningful form of segmentation. Even though the importance of segmentation is broadly accepted, limited research, do exist about cosmetic medical products (Mohr, Sengupta, & Slater 2010, 79). There are very few real examples of segmentation studies available. This article has focused on Johnson and Johnson products marketing strategy globally. The spread of global culture is normally facilitated by the rise of global capitalism, the proliferation of transitional corporations, homogenization of global consumption, and widespread aspiration for material possessions. International market researchers have discussed the breadth of convergence of cultural values across countries.

A wide product range for Nestle: Nestle’s large range of products means it has a much better chance to survive and thrive as a business, especially in tough conditions, as it is less affected by particular supply shortages or market movements.

It shows this power by competitive pricing in tough markets. For example, in Europe 2013 there were tough times for major companies like Danone to meet shareholder standards. But Nestle stated in an article featured by Reuter “competitive pricing helped to lift sales growth in spite of tough conditions in emerging markets and Europe” (Reuter). The ability to play with their price gave them the upper hand as well as reevaluating investments within the company. The Chef Executive Paul Bulcke said “Investing in its strongest brands while divesting underperforming businesses, improving capital allocation and structural efficiency should help to drive growth and preserve margins” (Reuter). It ultimately helped because they ended the quarter with a slight increase in sales across the board while competitors were not so lucky. Ultimately when a product is profitable the price rises and when a product is no doing as well the price will drop. Nestle seems to always sell at an average price, never too high or too low from its nearest competitor in its prospective market. For lower income families in emerging markets Nestle also has a strategy called PPP or also known as Poplar position products. Nestle described it as “PPPs offer these consumers the opportunity to consume high-quality food products that provide nutritional value at an affordable cost and

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

Economy of countries differs everywhere. So Nestle has to set different economic policies for different targeted segments. The price of the product is an important decision to take while strategizing the economic policies according the inflation rate and the buying power of the segments. Nestle company should made an analysis report on frequent basis to get the knowledge of the inflation rates and different income levels.

[pic][pic][pic][pic]After choosing a position, the company must take effective measures to deliver and communicate the chosen position to target consumers. Marketing mix efforts should be synchronized to back the positioning strategy. If the company wants to build a position on better quality and service, it must first take necessary action to deliver that position. Tactical details of the positioning strategy must be worked out to guide the designing of marketing mix-product, price, place and promotion. A company that chooses a “high-quality position” must produce high quality products, charges a high price, distribute through high-quality middlemen, and use high-quality media for

Their main goal is they endeavour to bring buyers sustenance’s that are sheltered, of high calibre and give ideal supplement to address physiological issues. Nestlé gives choices to all individual taste and way of life inclinations.

Nestle is following the strategy of giving less quantity at less price. Nestlé’s white chocolate is favourite among customers.