A Study of The Organization and Market Analysis of The Swiss Food and Drink Company, Nestle

Nestle is the world’s most important food processing company. Running for over a century, Nestle was founded by George and Charles Page, and Henri Nestle in 1866, Switzerland. Processing wide range/varieties of products; baby food to chocolate to beverages; it has won the hearts of billions from all ages and both genders. The two world wars and the great depression did not affect Nestle but instead increased its revenues. That is because, during those harsh periods, healthy and fresh food was scarce, and only Nestle was the company who everyone fell safe for producing healthy and fresh products. Nestle strength is due to the companies experience and loyalty. A company that stands for 147 years, with barely any significant complications, has for sure won solid consumers. And having a loyal base of consumers’ gives Nestlé’s its strength. Loyalty and faithfulness is very rare in our days, but Nestle is one of the very rare companies that hold these two traits. In addition to that, Nestle has strengthened itself with major commercial campaigns. Starting out with the newspaper, Nestle moved on onto television commercials when TVs were first introduced. As the internet started to grow, Nestle did not lose any second and started its campaign through the internet. Thus, Nestle has managed to conquer all medias which gave it more popularity and growth. On the other side, Nestle has grown further by adopting brands into its clan. For example Maggie and KitKat, which were produced under different companies. Nestle has come a long shot, it has learned from its past mistakes when she had any. Nowadays, it has no significant weaknesses, it has reigned over the food and beverages genre for decades, and through its campaigns it has only increased its revenues more and more every year. The company has a great opportunity to stay number one for decades as long as it remains loyal and faithful to its clients. The competitors are a lot, and everyone wants Nestle to fall so they can grow. However, Nestle knows that if it keeps producing healthy and fresh food no one will ever take its spot. As mentioned previously, Nestle has passed through many tough times like the two world wars, however this was not at all a threat to the company but instead the demand for health products were increased, thus increasing Nestlé’s sales and revenues. Now, of course as any other company in the world, if the world’s economy was suffering Nestlé’s sales will decrease slightly. That’s because Nestle has a safe price management on its products. Nestlé’s goals and objectives are many. However, Nestle tends to be the best in food processing regarding quality, meet all of its consumer’s requirements and needs, etc; On a different note, the company’s main slogan is “Roadmap to Good Food, Good Life”. By this, Nestle is showing that its products are very healthy which will give consumers a healthy life. The company’s main objective is to be recognized as the world leader in health, nutrition, and wellness. As well to that, the company want to be trusted by all its stockholders and to be an idol, finance-wise, in its industry. Nestle believes that trust is only earned through a long period of time by constantly delivering valuable products that are high in quality and safety-ness. The company states as well, that one of its major advantages that keep its competitors far away is the hard to copy formulas that it provides in its products that are unmatched. Nestle will deliver its products always wherever, whenever, and however.

The four Ps are; price, product, place and promotion. And regarding Nestle, it has good ranking in all those four categories. Starting with the price, Nestle has place friendly pricing on all of its products which allows anyone with an okay income able to buy such products. Of course, Nestlé’s products cost slightly more than other companies, but that goes back to the company’s reputation and experience. Regarding the products, Nestle has covered basically every food and beverage items in the world. A wide variety of products allowed Nestle to easily reach all age groups and genders all over the world. Because of that, Nestle does not reign only in one place or region, but it has become an international company that mostly everybody in the world has access to its many products. As mentioned previously, when Nestle was first introduced it used to promote its products via the newspaper which was the only media genre back then. After some decades, when the television was introduced, Nestle expanded its promotional campaign onto television and the same happened with the Internet. Its friendly campaigns and health related slogans have increased its consumers. Nestle has many information about each one of their products and about the company as a whole on the internet. Therefore, consumers can have answers to all their questions in no time, convincing them that Nestle is the right choice for them. Their statement “Good Food, Good Life” was defined as giving consumers the healthiest and tastiest food from morning to night and at all occasions. From such statement, one can come to a conclusion that some of Nestlé’s personality traits are; accessible, loyal, dedicated, active, clean, alert, faithful, considerate, etc; Nestlé’s unique selling proposition is that it connects well with its consumers through print, internet and television. As well, its products are scientifically proven to contain all vitamins and minerals vital for human beings. Its food is made with different good tasting flavors and high qualities. Positioning wise, Nestle is seen as a leader in manufacturing and distributing high quality, nutrienal food in low and high-income countries all over the world. Plus, producing a range of healthy products that are low priced.

Nestle has many competitors around it. Two of them are Kraft food and Unilever. Both of these two companies offer consumer goods. They are also widely known and respected in the food processing industry. Unilever was found by William Lever in 1890 and till today its products are sold in approximately 151 countries around the world. Its main mission is to add vitality to life. This mission is supported by a famous slogan of the company “Feel good, look good, and get more out of life”. Unilever has a wide range of products, such as Nestle. They are produced with different sizes and friendly-looking packages. As mentioned previously, Unilever can be found in more than 150 countries. Therefore it’s a multinational company. This it is greatly distributed and is available for everyone. Ads, billboards, and TV commercials are part of Unilever’s promotional campaigns. Furthermore, one can find Unilever’s products being promoted in family and kids related places. For example, parks and art clubs. Unilever produces high quality products with low and decent prices which allow low-income consumers are able to buy the products. Unilever can be compared to Nestle with it similarity in products (baby foods, beverages, etc ;), prices and as well to experience. Another competitive company is Kraft’s food. This company is as well in the food processing industry, strengthened and supported by its delicious tasting products. It was founded in American in 1903 by James Kraft. Kraft’s mission is to be the best investment in the industry, fight against hunger, save the world’s resources, and creating top quality foods. Kraft produces food products such as pasta, cheese, and jell-o. Despite the numerous flavors that each product is introduced with, Kraft’s foods are all made with top notch quality. The products are produced in different packages and sizes to satisfy the consumer’s needs. As any respected and famous company, Kraft’s promotes it products via print, television and the internet, providing consumers with loads of information to convince them that Kraft is best for them. Kraft is known for putting low prices on its products which is why it’s appreciated. However, Kraft cannot be found everywhere in the world. It is mainly found in North America, and 98% of its consumers are from that continent. However, Kraft is slowly invading the European market but it has a lot of competitors to compete with, for example nestle.

To study the market segmentation of Nestle, one has to consider four categories; geographic, demographic, psychographic, and behavioral. Geographically, the company has reached every corner of the world. What helped Nestle to become is international is its smart promotional strategy. For example, in Lebanon’s case, Lebanese are known for their love to coffee, that’s why Nestlé’s most promoted product in Lebanon is Nescafe. In France for example, Nestlé’s pure life water is mostly promoted for two reasons; 1) to compete with France’s number one water company Avian 2) French people are the most water consumers in the world. Demographically, Nestle has reached all ages and gender. For example, Cerelac for babies, Nesquik for Children, Coca Cola for teens, Nescafe for adults etc; Thus, Nescafe has become for everyone and not imprisoned for a certain group. Psychographically, Nestlé’s slogans like “Good Food, Good Life” have played a key role in convincing consumers to buy their products. Everyone wants good healthy food in order to have a good life, thus consumers demand more of Nestlé’s products so they can have a better, healthier life. Through its family-friendly ads and slogans, Nestle was able to target and reach everyone. And since its main focus is to produce products that fit all its consumers needs, Nestle was able to win the hearts of everyone, because everyone found what they need and were convinced that this company is giving them health, safety, and high quality brands. Nestlé’s message strategy is to help consumers make positive food choices that will as well make them feel happy. They claim of doing this by providing nutrienal information about each product on their website and on the packaging of each product. This will help them maintain a diet and live a healthy lifestyle.

Nestlé’s overall strategy is to be seen as the world’s leader in health and nutrient. It wants to win the trust of its consumers and reach all people and cultures. And in their words “Our aim is to meet today’s needs without compromising the ability of future generations to meet their needs”. Nestlé’s promotional ads that are found in print, TV and the internet all show the healthy and positive side of consuming its products. Happy babies eating Cerelac, healthy adults exercising and drinking Pure Life, all of these and many other tactics are used by the company in their promotional campaigns to win over more consumers. Evaluating the companies campaigns, one can appreciate that despite that companies are not able to give a lot of information due to the time limit and/or space, Nestle does choose the most convincing and proven information to its consumers.