Positioning Strategy Essay

Custom Student Mr. Teacher ENG 1001-04 28 May 2016

Positioning Strategy

By creating product, service, channel, people and image differentiation Nestle arrives the consumer touch point more easily, effectively & efficiently in comparing with other competitors in the highly competitive food processing market.

Product Differentiation
: Nestle brings a many of product for target customers.

They make available 25 types of minerals in Nido for children.

It also arranged Cereals’ and Lactogen 1 &3 for newly born baby exclusively.

Now the doctors says these products for child’s to their parents for great & maximum nutrition Nescafe is a product which contains 4 types of categories. They offer Nescafe ice for hot and warm weather, They provide Maggi including Maggi instant; Maggi 2 minutes which Includes and contain various minerals, vitamins and nutrition’s.

Channel Differentiation
: Nestle reach their products to the customers through their experienced market salesman and transportation. So that their products.

are much easy to their customers.

Image differentiation
Nestlé’s logo is totally different from others competitors that are greatly choices by its users.

For that way customer easily choose them in the market which is another effective benifits for Nestle products.

People differentiation
The company has a large number of manpower’s that are highly educated and trained. In Singapore, 400 employees are employed in market Company
chairman; They are running this business successfully for a long time.

Service differentiation
Another advantage for this company is better service for its respective users from its competitors. They provide 24×7 hot line service. High quality checking is providing for its customers. Its marketing dept. and public relation dept. are working for finding out customer’s new needs and response toward their nestle products.

Positioning Statement Baby Products
To babies who are deprived of proper nutrition,Nido,Cerelac,Lactogen are the very nutritious milk Product that provide you more use full nutrition different from any other brand because these includes different types of vitamin, mineral etc.

The strength of Nestlé’s brands has given the company an unparalleled position on a global basis across a wide range of product categories. Six worldwide corporate brands, Nestlé, Nescafé, Nestea, Maggi, Buitoni and Friskies contribute about 70% of the group’s total sales, with the Nestlé brand itself contributing 40%. These brands are the first choice of consumers around the world, whether as stand alone brands or in combination with product brands such as KitKat and LC1.

Nestlé also owns regional and national brands with which consumers have a close and often longstanding familiarity. These brands enable consumers to express their individuality and to respect their traditions whilst still enjoying the quality of a Nestlé product and, as such, are key elements of the Nestlé portfolio. Nestlé’s brands and products are the focus of continual innovation and renovation so that they will be relevant and appealing to today’s and tomorrow’s consumers. As important as ensuring that our brands meet and beat our consumers’ expectations is ensuring that they are available whenever, wherever and however our consumers

Milo, Maggi face, and Nescafe are some familiar names that have been around for a really long time in our lives. They are so close to us that in one way or another, we are dependent on them, thanks to their mother company, Nestle. We grew up with Nestle as part of our lives, and it plays the role of a loyal partner and witness of our story.

In 1865, Swiss chemist Henri Nestle took the lead in the invention of a baby food that combines cereal with milk. It started when a friend with a premature baby was brought to Henri Nestle. The baby could not eat because of extreme physical weakness, leading his parents to abandon him. Kindness led Henri Nestle to decide to care for the child, and feed him by developing their own cereal with milk. This gradually helped restore the baby to health.

The good news quickly spread in the local community. Some mothers found that the cereal with milk helped solve the problems of their children who do not drink milk. Later, this “magic” spread all over the world. A very popular, high-quality food that helps children grow up healthy. In 1867, Henri Nestle decided to create a parenting formula company. He branded his products with his name, which actually when translated in English means “comfortable” and “snuggle”; Nestle naturally makes people think of a loving mother feeding her baby, a scene that insinuates a better life.

Name and Trademark

In 1905, the Nestle Baby Formula Company merged with a food company in the United States to develop condensed milk called Nestle Enrich. In 1949 they purchased another Swiss company, thereby changing their name to the Nestle Food Company.

In the early 1900s, the company began to diversify production, acquisition and the establishment of the enterprise around the world. Now, Nestle is the world’s largest food manufacturer with more than 500 factories in more than 80 countries around the world. They employ nearly 255,000 R & D personnel in the world. Nestlé’s global annual sales reach more than $ 47.7 billion, of which approximately 95% comes from food sales; the main products being instant coffee (Nescafe), condensed milk, powdered milk, baby food, cheese, chocolate products, candy, and instant tea.

Overall, the name “Nestle” did not cost much to think about. Henri Nestle used his own name for the brand and trademark; the patterns of which naturally lead people to relate it with healthy and nutritious products. It does not only have a rich connotation, it is also in full compliance with the basic requirements of the trademark positioning.

First, Nestle is significant because it is a strong brand name. It leaves a deep impression with people, generating loyalty. Secondly, the name is a general reflection of its company. Everyone knows the brand name Nestle; Henri Nestle established and strengthened the company’s image; their trademarks become the general public’s perception on their products, synonymous with the company’s uniqueness in the world. Furthermore, the Nestle name and trademarks are closely integrated and conceivable. As a result, Nestlé’s brand shows strategic positioning.

Human Marketing Strategy

Positioning highlights the value of your products and the greater benefits it brings to consumers, stressing its superiority over other similar goods. Nestlé’s milk powder and coffee has the content and quality of the brand, both related to health and nutrition. Coffee to a large number of consumers brings “comfort” and “ease”, as their milk products bring the same for infants. The emotional positioning symbolic of their products to consumers is prominent, using it to arouse consumer sympathy, trust, love and other emotional resonance. The brand adapts to the changes in consumer psychology. The Nestle name and trademarks inject emotion, imagery, and establishes a good brand and corporate image.

Nestlé’s success is a natural result of multiple factors. Implementation of marketing strategy is an important factor. As are production, brand, quality control, and the main raw materials used. Administrative rights are basically in charge of the national companies, they have the right to determine each product’s final shape in accordance with national requirements. This means that it is necessary to maintain fully decentralized operations, but with consistency.

In order to achieve this dual purpose, it is important to maintain a delicate balance. This is a balance between international operations and the local country operations, and also the international and local communication. Proper cascading of information is required in order to properly implement new policies. Nestle has three factors that ensure involvement in the presentation of the company’s strategy, brand marketing strategies and product details:

1. LABELLING STANDARDS – A label standardization which is a guiding document consisting of various elements that clarifies rules and standards. An example of which is the specifications of the Nescafe logo, font and color, as well as various details that measure its proportions. This document also lists the various product label legends; it is recommended that each branch or office use these labels as early as possible.

2. PACKAGE DESIGNMANUAL – The packaging design manual provides a guide that allows a more flexible use of their files. It presents a variety of different ways of using their existing standards. For example, in the form of packaging materials and options.

3. BRANDING STRATEGY – Brand strategy includes the Nestle product marketing principles. These features include: brand personality, image expectations, company contacts, the brand, involved visual features of the other two files, and brand development.

Corporate Culture and Solidarity

Nestlé’s decision-makers recognize that economic globalization has led corporate marketing activities and organizational mechanisms to shift the focus of their work. The marketing department of the company is divided into direct operation, and smaller, multiple operations department. Each of the operations department have the independence and flexibility to operate in the market and make timely contingency decisions, but subject to the overall strategy of the enterprise. Nestlé’s module portfolio strategy allows each branch to operate independently in the market, giving them the right to take a unique strategy, but with proper coordination with the company headquarters.

Nestle employees have always been a key factor in bringing the Nestle spirit to life. It is this spirit that led Nestlé’s development from a rural workshop to today’s world leader in food companies. Their staff is Nestlé’s most valuable wealth. The excellent performance of the Nestle Group today stems from the strong efforts and loyalty of employees around the world. As a company committed to producing high-quality food, and creating a better life, Nestle is also very concerned about their employees. Nestle has become an employer of choice because of the respectful relationship formed between the managers and employees of Nestle; it is non-discriminating of any ethnicity, race, religion, and gender, with respect for cultural and social diversity.

Nestle firmly believes in a combination of local and international talent played to the best of their potential and ability, in order to provide consumers with quality Nestlé products and brands whenever and wherever.

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  • University/College: University of Chicago

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 28 May 2016

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