Background of Nestle
The report is about the marketing strategies and techniques performed by Nestle Company. The report will include the description of the Nestle Company, its vision, mission and core values. The report will identify the internal and external factors affecting the business. Further, it will also explain long-term objectives of Nestle and list of the alternate strategies used by Nestle. Besides this, annual objectives and policies of Nestle will be discussed. Report will specify the necessary resources of Nestle and balanced scorecard evaluation measures.
Source [https://1000logos.net/nestle-logo/]
Nestle is known for its manufacturing and selling products in the sector of food and beverage with more than 2000 brands and deliver their services in 191 countries. Nestle has it’s headquarter in Vevey, Switzerland. Nestle in the Middle East own and control 18 factories that supply to the area and provide employment opportunities to more than 11,000 people. It also offer indirect employment to many people. In 1997, the entity of Nestle was formed in Middle East. In last five years Nestle has invested approx. US $400 million in this region for innovation and growth (Nestle. 2017).
Vision of Nestle is to become a Nutrition, Wellness, Leading, Health and Competitive Company providing better value to shareholder by being a favored corporate resident, favored employer, and favored supplier vending favored products (Nestle. 2017).
Mission of Nestle is to provide good quality food to their customers throughout their lives, every day and all over the world. Nestle is focused towards enhancing the quality of life by fulfilling the needs of their customers’ and solving their problems (Strategic Management Sight. 2013).
The values of Nestle are reflected through their business conduct, they follow their set principles of honesty, fairness and concern for people. Nestlé’s business conduct has set some non-negotiable standards for everyone working with them (Nestle. 2017).
Famous- Nestle is largest food company in the world it is measured by its revenue. People are aware of different products provided by Nestle because they prefer individual branding of their different products. This strategy is adopted by Nestle so that if one brand is affected like Maggi, then the sale of coffee is not affected.
Distribution system- Nestle has received success in supplying their diversified products in the market of urban as well as in rural (Pestle Analysis. 2015).
Various brand- Nestle has different brands controlled under single group, thus it becomes difficult to manage individual brands as it can create conflict.
Vision of Nestle
Issues- In spite of the fact that Nestle is a global brand but it faces consumer and legal issuers and came under the controversies like boycott of Nestle baby formula, child labor, fixing the prices of chocolate, etc. leads to the negative image of the Company.
Political- Business of Nestle is expanded in different countries in the world and to work smoothly they have to follow the rules and regulations of different countries. Changes in the regulation and rules of the government related to the food and beverage create lot of problem for Nestle (SWOT and Pestle. 2017). Proper analysis should be done by Nestle of the country’s market in which they are operating.
Social- Changing demand of the customers due to change in their lifestyle create problem for the business. Thus Nestle should have flexible strategies so that they can change their strategies according to the changes in the demand of the customers. In addition, Nestle should use effective advertisements that should be focused towards the welfare of the society as it can increase the demand of the product and will clear the image of the company.
Economic- Changes in the prices of raw material, customer purchasing power and budget of the customer affect the revenue of the business.
Nestle is the largest food company in the world, it has set targets of development and sustainability. In the future company is focusing towards reducing emissions of greenhouse gas, every ton of products by 35% till 2020 (Climate Home. 2013).
Nestle wants to reduce the use of water by 40% in its product range, which contains, Purina pet food, Nescafe and Perrier (Climate Home. 2013).
In the 2020 commitment of Nestle, their long-term objective is to provide healthier lives to 50 million children; recover the 30 million livings in society that are linked to the activities of the business; and make every effort for zero environmental effect in their processes (Nestle. 2017). The main focus of the business to fulfil the societal commitments.
For example- by 2020 to reduce the use of sugar in their products by 5%. If business will achieve this target in Europe only, it means there will be reduction of 18000 tons of sugar in their process.
Business level strategy of Nestle is cost leadership combination with variety of products and less cost operators. Strategic leadership of Nestle make business efficient so that network of regional manufacturing can be created, integrate business of global level and to reduce the expenditures of marketing. Further, Nestle wants to develop a network of research and development by refining the existing products and producing tomorrow’s sustenance, company’s two third of research and development activities are focused towards renewing the existing products, the remaining third is kept for essential product innovations, develop operative level and organizational changes.
Mission of Nestle
Marketing objectives are well-matched with the complete business objectives of Nestle. The objective of the company is to become largest and best branded manufacturer of food in the world even though assuring that nestle name is synonymous with the highest quality of the products.
Nestle also aims at attaining compatibility with global volunteer standards on systems of environmental management. Further, focuses on building the trust with the authorities of government, partners of business and consumers.
Nestle policy is to confirm, that employees, board members and external stakeholders of Nestle who have the information which is confidential or sensitive information should be aware of the law imposed against disclosing these information (Corporate Human Resources. 2010). Even, all these stakeholders should be responsible towards safeguarding the sensitive information.
The resources of the company are categorized into- intangible, tangible, human and financial resources.
Human resources- The reason behind the growth and success of the Nestle Company is their staff or employees. The staff members of the company influence the well-being and productivity of the company.
Culture- Nestle comprised with the strong culture that encourage the satisfaction of the stakeholder’s and innovation.
For making the decisions of a business balanced scorecard which is a framework of performance management used by the strategic makers. Balanced scorecard is a method of monitoring the progress of organization’s goal (Human Resource Management. 2012).
|
Perspectives |
Goals |
Objectives |
Measurements |
|
Customer |
Good quality and easy availability of product. |
Use good quality of raw material for the production and provide goods online. |
Good health of the customer and increased revenue. |
|
Internal business |
Increase in sales |
Payment convenience |
Payment methods |
|
Innovation and Learning |
Increase in efficiency of work and employee. and customer satisfaction. |
Productivity and employee retention. |
Employee satisfaction |
|
Financial |
Decrease in cost |
Reduction in cost |
Lesser cost expense |
Conclusion
Nestle is the largest seller and manufacturer of food and beverages products and deliver their products all over the world in 191 countries. Their vision is to become the leading company in all over the world by providing good quality of products to their customer. Analysis of internal factors shows that strength of Nestle is that they are very famous and provide variety of products. On the other hand their weakness is that all the product range are handled under the single group.
References
Climate Home. (2013). Nestlé sets out 2020 sustainability goals. Retrieved from: https://www.climatechangenews.com/2013/03/14/nestle-sets-out-2020-sustainability-goals/
Corporate Human Resources. (2010). The Nestlé Employee Relations Policy. Retrieved from: https://www.nestle.com/asset-library/documents/library/documents/people/employee-relations-policy-en.pdf
Human Resource Management. (2012). Balanced Scorecard. Retrieved from: https://corehr.wordpress.com/2012/09/20/balanced-scorecard-2/
Nestle. (2017). Mission & Vision. Retrieved from: https://www.nestle.co.za/aboutus/missionvision
Nestle. (2017). Nestlé announces 2020 commitments and long-term ambitions in support of Sustainable Development Goals. Retrieved from: https://www.nestle.com/media/news/nestle-csv-creating-shared-value-summary-report-2016
Nestle. (2017). Nestlé in the Middle East. Retrieved from: https://www.nestle-me.com/en/aboutus/history
Nestle. (2017). Nestlé Values & Principles. Retrieved from: https://www.nestle.com.au/aboutus/home/nestle-values-principles
Pestle Analysis. (2015). SWOT Analysis of Nestle, the popular food brand. Retrieved from: https://pestleanalysis.com/swot-analysis-nestle/
Strategic Management Sight. (2013). Mission statement of Nestlé. Retrieved from: https://www.strategicmanagementinsight.com/mission-statements/nestle-mission-statement.html
SWOT and Pestle. (2017). Nestle SWOT and Pestle Analysis. Retrieved from: https://www.swotandpestle.com/nestle/
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