COMPANY STRATEGY AND PLANNING

 NESTLE'S STRATEGY AND PLANNING

    Nestlé builds value by constantly emphasizing operational agility, relevance, and superior execution. As a business, we are constantly changing the products we offer to satisfy customer demands and pique their interests. We aim for a balanced pursuit of financial growth through quick innovation, effective resource allocation, and operational efficiency. Our long-term plan makes sure that we consistently achieve lasting success.

    It's critical to analyze a company's market position, pinpoint its target market, and comprehend its competition before developing a strategy and plan. This entails performing market research, examining client information, and determining the advantages and disadvantages of rivals. Based on this data, the company can create a strategy to build on its advantages, correct its weaknesses, seize opportunities, and counter threats, as well as a marketing plan to successfully connect with and interact with its target market.

This is are the methods that implement in Nestle's strategy and planning:

Market Position

Nestle was one of the largest FMCG companies in the world with a leading market position in various product categories. Listed below are the key point of Nestle’s key market position;

  •  Worldwide presence

Nestle is well-represented in both developed and emerging markets because of its operations in more than 190 countries. This enables the company to cater to a variety of client tastes and preferences across the globe.

  •  A wider selection of products

Nestle offers a vast range of goods in numerous categories, such as cereal, coffee, dairy, confectionary, infant formula, etc. Nestle now has fantastic potential to expand and differentiate their brand across yet another product category thanks to this diversification.

  •  Strong portfolio of brand

Nestle has established a significant global presence and grown to become one of the most well-known and dependable brands in the world. Maggi, KitKat, Nescafe, and Purine are some of the well-known brands that we are all familiar with. These brands help Nestle maintain its market advantage.

  • R&D expenditures

Nestle has improved its products as we move into the twenty-first century by investing in research and development to remain competitive in the market. Having said that, it will help Nestle establish a stronger market position as new products are released.

  • Sustainability

Nestle has made sustainability a top priority by putting in place programs to reduce its impact on the environment, promote ethical sourcing, and raise the standard of living for farmers and rural communities. As a result, nestle has gained more devoted customers and built a solid reputation.

 Target Audience

The target audience for Nestlé would depend on the specific product or brand that they are marketing. However, the broad description of Nestlé's target market is as follows:

  • Families

Nestlé manufactures a variety of food and drinks items that are appropriate for families, such as infant food, breakfast cereals, chocolate, and coffee. Their goods are frequently advertised to parents looking for quick-to-prepare meals for their families.

  • Customers who care about their health:

Nestlé is committed to enhancing the nutritional profile of its products and has created a line of goods to appeal to customers seeking out better options. Products that are fortified with vitamins and minerals as well as those that are reduced in sugar, salt, and fat fall under this category.

  • Coffee drinkers

Nestlé is one of the leading producers of coffee in the world, and they provide a variety of coffee brands to suit various preferences and tastes. They cater to those who adore coffee and are looking for high-quality, portable coffee supplies that can be used at home or on the road.

  • Pets owner

Nestlé also produces a variety of pet food items under trademarks like Purina, which cater to pet owners seeking savory and nourishing solutions for their animals.

  • Advocates for social and environmental responsibility

Nestlé has committed to lessening its influence on the environment and enhancing the lives of the farmers and communities that supply their raw materials. They aim to attract customers who are eager to support businesses that are improving the world.

Competitors



    Top Nestle rival Mondelez was established in 2012 and is based in Illinois. It is the top snack company in the state. The company produces a huge variety of products, such as chocolate, beverages, cookies, and confections. They operate enterprises all around the world and get funding from places other than the United States. They operate in around 1655 different countries, and the combined revenues of all of their brand's amount to around $30 billion. The majority of Mondelez's product lines are made up of chocolate, biscuits, sweets, food items, and cheese. The company consistently releases fresh, delectable products that are a hit to everyone.

     As well as Mars is a well-known food company and the leading manufacturer of confectionery goods. It is also recognized as a major Nestle rival. The company is based in the United States and was established in 1911. This company manufactures several confectionery items, including Milky Way bars, Mars bars, M&Ms, Skittles, and Twix. In addition to confectionery goods, the company also manufactures non-candy goods such as Uncle Ben's rice, pasta sauce, etc., as well as pet foods under the Whiskas, Pedigree, and Nutro brands. However, their chocolate production is their best-selling good worldwide.  The company sells delicious, high-quality cuisine. Their items have excellent taste and quality, and they are also reasonably priced. The company's operations are extensive. 





    A well-known food processing business called Kraft Foods was established in 2012. It is a multinational conglomerate of American manufacturers and processors. It belongs to the Kraft Heinz Company and has its headquarters in Chicago. The business primarily concentrates on supermarket products for the North American markets. Kraft Foods Group was essentially an independent business that was listed on the NASDAQ stock exchange until it merged with Heinz. 2015 saw the complete merger of Kraft and Heinz. The success of Kraft Foods' merger with Heinz and Cadbury's is the main factor in that company's success. This business was among the first to implement content marketing, which is now managed through CRM activities.





    Among the ways Nestle competes with its rivals is by differentiating its products. Nestle provides a wide selection of distinctive products that are tailored to the particular wants and demands of its target market. This makes the business stand out in a congested market and draws in clients who are looking for premium and cutting-edge goods. Branding is the second. Nestle is a reputable company with a solid reputation for dependability and quality. The company makes significant investments in preserving client trust and enhancing its brand image, which gives it an advantage over other well-known companies in the market. Cost leadership is third. Nestle can create items at a cheaper cost than many of its rivals thanks to its effective supply chain and operational efficiency. 








Comments

Yen said…
Nice strategy and planning...the strategy look strong base on how Nestlé manage the company... it's look clear and i think Nestlé will achieve the company goals...
Zarifah said…
Thats the basic marketing made by other companies too. But what makes Nestle able to expand their market is through partnerships and cooperation. Nestlé forms partnerships and collaborations with various stakeholders, including suppliers, distributors, retailers and other companies. These partnerships will help Nestlé expand its reach, gain market insights and improve distribution channels. Working with organisations focused on nutrition, research and public health also contributes to Nestlé's credibility and promotes its image as a responsible company. If I'm not mistaken, nowadays, Nestle have a joint venture with Starbucks ready to drink that available at any retail store. By doing so, Nestle will growth it’s name and profit all around the world.
farhana umi said…
It's completed and nicely done! I would like to add some points that I think would complete this blog. It's about digital transformation that Nestlé recognizes the importance of technology and digital in its business operations and consumer interactions. The company invests in digital capabilities, e-commerce, data analytics, and personalized marketing to improve customer experience, increase efficiency and gain insight into consumer behavior.
Aisyahrazak said…
Nice ! But i will add some point about nestle company strategy and planning. Nestlé establishes its long-term vision and strategic aims through strategic planning. To find growth prospects, they perform in-depth analyses of market trends, customer insights, and the competitive environment. Nestlé develops its strategic goals and the necessary action plans for achieving them based on this study.