Nestle was founded in 1866 by Henri Nestle and is today the world's biggest food and beverage company. Henri Nestle developed the first infant food in 1867 to save the life of a friend's baby who could not be breastfed. (this is a combination of cow’s milk, wheat flour and sugar). Since then, the company has looked to build on a tradition of providing nutritious products. The Nestle Group invests around 1. 5 billions swiss franc in R&D every year. It’s more than any other food company. Every day Nestle sells over a billion products. These individual consumer transactions give the Company total nnual sales of more than 90 billion swiss francs Nestle markets its products in 130 countries across the world. Nestle manufactures around 10,000 different products and employs some 250,000 people; A marketing orientated approach means a business reacts to what customers want. The decisions taken are based around information about customers’ needs and wants, rather than what the business thinks is right for the customer. Most successful businesses take a market-orientated approach Since then, the company has looked to build on a tradition of providing nutritious products.
It builds its business around: -discovering what customers want -identifying pressures for change e. g. government campaigns, health education initiatives -responding to changes in the market place. Nestle concentrates on their consumers and tries to understand their physical and emotional desires. They have a wide range of products and consumed by all age groups. Nestle try to understand the economic, geographic and social factors which affects the diets of the consumers and try to concentrate on the nutritional and health value of the products.
Example Nestle have used their research and technological expertise to their ice cream products to reduce their calories but too keep the same taste. They have also introduced sugar free products and lower sugar products like Kit Kat Light. Nestle also try to understand the motivations, decision making and purchasing habits of the customers by spending time with the people. Example: Nestle employees spent three days living with people in suburbs of Lima in PERU to understand their everyday aspects of their life, and based on their understanding they sold relevant products in the local markets.
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A market led company like Nestle is continually monitoring customer attitudes and requirements through market research. This research takes two main forms: Qualitative research. This involves setting up small focus groups of consumers who express their ideas and opinions about their needs and views on different products. Quantitative research. Whereas qualitative research involves only relatively few people, quantitative research involves much bigger numbers. For example, professional market researchers may interview thousands of people through postal or telephone interviewing.
Nestle regularly uses both forms of research to gain a clear idea of consumer opinions and trends. Market research helps the company to keep in touch with an ever changing environment in which social attitudes and buying patterns are continually shifting. The Company's strategy is guided by several fundamental principles. Nestle's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance.
The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. Nestle is committed to the following Business objectives in all countries, taking into account local legislation, cultural and religious practices: Nestle continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. Analysis of Market Analyzing the market means getting the information about the current market trends. There are different ways, which are adopted by Nestle to get the information of the market.
By Sales Department Sales department is a primary source of getting the information about the market. They actually visit the market and find out that who are the competitors, and what strategies they are adopting. Customer Service Department For Every product there is customer service department.. Nestle knows that regular contact with their consumers is very important. This is why Nestle have a worldwide Nestle Consumer Services network Nestle cares for its consumers because its success depends on meeting their needs and expectations.
Through listening and understanding, it can make products that they will want to use all through their lives. Research and Development Department The nestle Research and Development head office is in Switzerland. The customer complaints are forward to the R where research is conducted. Suppliers and distributors To know about the market Nestle has established the close relationship with their suppliers who provide the raw materials. Conclusion Nestle is one of the world's leading food companies. Its commitment to high quality market research ensures that it remains fully aware of changes in consumer behaviour and consumer tastes.
Its excellent product research and development network ensures that it is well placed to meet the challenge of changes in consumer expectations. The company's Wellness strategy is carefully geared to delivering to customers what they want in relation to the foods they eat. Thus it's clear that Nestle is a Market Oriented company because they try to understand the customer or market needs and produce products accordingly to achieve the organizations goals. And they believe that people are the main strength of the company.
on Nestle-Marketing Oriented Company
Thus it's clear that Nestle is a Market Oriented company because they try to understand the customer or market needs and produce products accordingly to achieve the organizations goals. And they believe that people are the main strength of the company. Haven’t found the relevant content?
Nestle was founded in 1866 by Henri Nestle and is today the world's biggest food and beverage company. Henri Nestle developed the first infant food in 1867 to save the life of a friend's baby who could not be breastfed. (this is a combination of cow’s milk, wheat flour and sugar).
Nestle is Fortune 500 company and it does individual branding of their brands which help it in creating high visibility & awareness. Negative branding also worked in favour of the company when some of the countries banned Maggi Noodles due to the presence of lead content which later on resolved and the banned was uplifted.
BCG Matrix in the Marketing strategy of Nestle – Nestle have 7 business verticals offering health, nutrition and wellness products. Its dairy products, powdered & liquid beverages, bakeries& cookies and confectionary business verticals are stars due to nestle having a strong hold in these businesses with large product length.
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