Management Orientation And Marketing Strategy Of Nestlé Company

Nestlé is a Swiss Transnational beverage company. In 1867 Nestlé founder, Henri Nestlé, a pharmacist, launch his “farine lactée” which is for infants who cannot be breastfed to consume. At this time, he also started using the iconic Nestlé logo. During 1878, there were some rivalry between Nestlé and Anglo-Swiss Condensed Milk Company, which was established by US brothers George and Charles Page. As, both companies sold condensed milk and infant formula. In 1905, Nestlé and Anglo-Swiss Condensed Milk Company merged.

From then, it grew significantly throughout the years.

Its company headquarters is in Switzerland, and they have offices all over America, Europe and Asia. The top 3 competitors of Nestlé internationally and locally are MARS, Keurig Green Mountain and Owl International.

Marketing Management Orientation

For the marketing concept, Nestlé acquire local companies so that they are able to form a group of regional managers who know a lot more about the culture of their local markets than others. In Asia, Nestlé produced different products in each country to supply them with a product from one country.

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Example, in Thailand, Nestlé produce coffee creamers, in Indonesia, Nestlé produce soy milk and in Singapore, Nestlé produce soybean flour. They did all these is all for regional distribution.

Also, Nestlé employ local people to be their staff, as locals know and understand the local culture and business procedures better. This also results in a more efficient way to reply adequately to local demand; thus, it will help with the company’s profit and market share.

For the societal marketing concept, Nestlé India did a rap video few years back for the Nestlé ‘Start Healthy Stay Healthy breastfeeding week’.

The video talked about the virtues of breastfeeding and one of the babies in the video talked about his immunity gain from his mother’s milk, and another talked about the strong bond developed during breastfeeding. Nestlé managed to stay focus on the benefits to their customers and the well-being of the children. Each of the babies in the video provide further education to mothers, and the rap itself can be used to promote breastfeeding education. Thus, the video went viral because of the right intentions and the powerful dynamics that flow from them

As for the selling concept, for KitKat, it focuses on “Take a break”, hence the KitKat website shows nothing but asking people that visited the website to take a break and have a KitKat. Nestlé focuses on its strength, KitKat, Maggi and Nescafe, which are the most promoted brand.

And for the product concept, Nestlé decided to remove all artificial ingredients and coloring agents from their chocolate product. They made this decision as they did a market research, and consumer responded that they preferred their candies and chocolate to be made without any artificial ingredients. They also state that no artificial coloring is important to food purchasing. Hence, they decide to remove the artificial ingredients and coloring without increasing the price or changing the taste of the product.

Lastly, for the production concept, with the thought of removing all artificial coloring and ingredients, there is also a need to change the manufacturing of the products. As a result, in their existing recipes, they are removing all artificial ingredients and coloring and replacing it with comparable ingredients that are drawn from natural sources

Branding Strategy

Nestlé is a family brand as there are over 10,000 products in its portfolio, for example, KitKat, Crunch, Gobstopper and more.

Nestlé promote Milo to be an energy drink for kids/teens especially when they are playing sports. By saying that it is an energy drink for those who play sports, picture of kids playing different kind of sports are printed on the packaging. It is also a healthier option for drinks with all the minerals and vitamins in it. There will also be small Milo vans and mugs that come free with the product for a period of time. This is part of the branding strategy as freebies are given away for only a period of time. The collectibles help to drive sales as it is considered as limited-edition collectibles, as well as build brand love.

Milo is a chocolate and malt beverage. It can be prepared using hot water, cold water and condensed milk. Milo is known as a healthy energy drink that corelates with sports and health. Milo offers necessary minerals and vitamins like, calcium for strong bones and teeth and vitamin A for good eyesight, to meet the nourishment and energy demand of adolescent mind and body.

It is sold in powder form placed in a green tin, and the icons on the tin show teens playing sports like swimming, soccer etc. Milo is also prepared in different versions such as Milo dinosaur (Milo with a spoon full of Milo powder placed on top) and Milo Godzilla (Milo with either ice cream or whipped cream capped at the top). It is also now available as a premixed drink, snack bar and breakfast cereal.

Marketing Campaign

The recent marketing campaign that Nestlé did to promote Milo is to use the ‘Singaporean way’ which is Singaporeans love for queues to promote it. They were inspired by it and its also unique and memorable for people who watched the video.

The marketing tools they used are advertising be it traditional advertising (TV) or new advertising (video), and they also used sales promotion. They gave out free milo drinks when people visited the Milo van. Through this, people will be able to taste it before deciding if they want to buy. Another marketing tool that they used is social media. They uploaded their video onto their Facebook page to announce to people that they are having this campaign. The targeted audience is people of all ages. These marketing tools will help to inform, persuade and remind them that milo is having a campaign and milo still benefit their mind and bodies.

The event was a success, as people find the way they promote the campaign unique, hence, they would want to participate in the campaign as they are curious about it. Another reason why it is successful is the number of likes, views and shares are high. Also, SGAG also made a hilarious spoof by adding Taylor Swift’s sheep parody into it. Thus, this shows how successful the video is.