Nestle India is a subsidiary of the main organization Nestle S.A. of Switzerland. The organization has developed eight factories and a huge amount of co-packers in the country. Nestle India has also developed a position as a vibrant organization which provides the Indian consumers with products that are able to become of global standards. The company is also committed to the sustainable and long term growth. The organization has also aimed at providing the utmost levels of satisfaction to the consumers (Nestle.com., 2018). Currently Nestle India has gained the position of the one of the most respected companies in the country and the company is also named as the “Top Wealth Creators of India”. Nestle operates a decentralised type of organizational structure which is also known as the matrix structure. The main purpose of the assignment is to the determine and analyse the target market of Nestle India and the positioning based strategy which is implemented as well (Nestle.com., 2018).
Nestle India has been quite successful in its operations in India and has developed an effective position in food and beverage based industry of the country. The organization has around 4 branch offices and 8 manufacturing based facilities which operate in the country. The macro environmental factors of the country are able to affect the ways by which Nestle operates in India. The policies and regulations which are applicable in India are able to affect the operations of Nestle in a huge manner. The development of the country is an important factor which affects the operations of Nestle (Barros, Hernangómez & Martin-Cruz, 2016).
The economic policies which are developed by Nestle thereby need to be based on the target segments which are a part of the market. The choice and preferences of consumers are considered to be important factors that are able to affect the profitability levels of Nestle. The organization thereby needs to understand the attitudes of the consumers in order to offer them with the appropriate products. The culture, values and social norms of the country are considered to be important factors which are able to affect the changes which take place in the attitude of consumers. The launch of new products by Nestle is based on the different technologies which are used by the company (Daspit et al., 2017).
The organization can also aim at improving the existing products with the help of implementation of the proper technologies. The legal situation of the country is able to affect the operation of Nestle and the ways by which the organization is able to fulfil the demands of consumers. The environmental factors are also considered to be highly important for the ways by which Nestle operates in India. The ways by which the operations of Nestle is able to affect the environment of the country is considered to be a major factor. The company further needs to focus on the issues based on packing and recycling based processes as well (Demir, Wennberg & McKelvie, 2017).
The target market of Nestle India is based on the ways by which the company is able to segment the market into different parts before it is able to provide the desired products to customers. Market segmentation is done by Nestle based on the requirements of the consumers and the ways by which they are able to connect with the products. The different types of segmentation processes which are used by the organization thereby include, geographic segmentation, demographic segmentation, psychographic segmentation and behavioural segmentation. The target market of the organization is then decided based on the ways by which the market has been segmented (Durand, Grant & Madsen, 2017).
The opportunities which are provided by the market to the firm are depicted with the help of analysis of the target market. The different segments of the market have been thoroughly examined by Nestle based on the growth of the market and segment size. The resources and objectives of Nestle and the structural attractiveness are also considered to be important factors which are able to affect the target market of Nestle. The target market for its product named Nescafe 3 in 1 are the customers who are quite busy, Nesquick is for customers who love the taste of chocolate, Nescafe Ice is for the customers who prefer cold coffee in warm weather. The organization is able to develop a strong position in the market with the help of the process of concentrated marketing (Dyer et al., 2015). The organization has developed a strong base of knowledge based on the requirements of the consumers. The company specializes in different types of baby foods and many other types of products which are able to fulfil different needs of consumers in the industry.
The positioning strategy which is used by the organization is based on the development of the products, services, people, channel and differentiation of images. Nestle has thereby arrived the touchpoint of consumers in an easier and effective manner in comparison to the competitors in the food processing based market. The process of product differentiation is based on the ways by which Nestle is able to bring new types of products for the target customers. The process of channels differentiation is based on ways by which Nestle is able to reach the customers with the products with the help of their salesman and the transportation based facilities. The products are thereby able to reach the consumers in an easy manner (Engert, Rauter & Baumgartner, 2016).
Image differentiation is also a part of the positioning strategy which is based on the logo of Nestle and the difference which the logo has from the competitors. People based differentiation is the process which has been implemented by the company with the help of their highly trained and educated employees. The numerous employees of the company in India are based on the ways by which the consumers are attracted towards Nestle. The service which is offered by the company to the consumers is better as compared to the other organizations or the competitors. The company provides high levels quality checking to the consumers (Ethiraj, Gambardella & Helfat, 2018).
Product – Nestle offers a strong product mix in India which is based on the choice and preferences of the consumers. The strong product mix of the organization thereby include, chocolate based beverages, milk and some milk based products and cookies. The different chocolate based products which are offered by the company in India are Nestle KitKat and Munch. The organization has developed a huge share in the market. The other milk products which are offered by Nestle in India include Nestle milk and Nestle every day (Frynas & Mellahi, 2015). Another major category which is offered by the company is based on prepared foods like, Maggi noodles, Maggi Pasta, Maggi sauce. The organization has developed huge levels of revenues in the market with the help of products like, Maggi and Nescafe, which are offered to the consumers with the help of different small and big shops. This has helped the company to become a huge competitor in the market (Hill, Jones & Schilling, 2014).
Price – Nestle depends on market of different products like, Nescafe and Maggi for huge amounts of revenues. The company develops high levels of margins with the help of effective sales of the products like Maggi and Nescafe. The price of the products that are offered by Nestle are based on the market of the specific products. The strength based on the pricing of the products of Nestle is based on the consumption of the products by the consumers (Hubbard, Rice & Galvin, 2014). The size of the packages of Nestle are also based on the preferences of the consumers. Nestle has been able to implement the process of competitive pricing for the products. The two major products of Nestle like, Nestle and Maggi offer different sizes and package based options. The consumers have the choice based on different types of consumption based process of the consumers (Karadag, 2015).
Place – Nestle is a Swiss organization which operates in greater than 80 countries of the world. The major keys are based on the products and people brands of Nestle. The FMCG based strategy related to distribution is used by Nestle in different areas of the market and different countries as well. Nestle has developed a strong distribution based network in India. The company thereby aims at providing the products like Nescafe and Maggi to different consumers in India (Kasemsap, 2014). The distribution based channel which has been developed by the company in India is based on the availability of the chocolate based products of Nestle. The sales of the confectionery based products of the company mainly depends on the availability. Nestle thereby aims at providing the products to the consumers in an effective manner to the consumers all over India. The company has tried develop both the wholesaler and the retailer based channels in India in order to reach the consumers as soon as possible (Meyer, Neck & Meeks, 2017).
Promotion – The promotional activities of Nestle are based on the victorious services or products which are offered by the company. The major strategy which has been implemented by the company is based on the policy of thinking globally and acting locally. The advertising campaigns which have been developed by Nestle are able to increase the presence of the company in the industry. Nestle has been able to ensure high levels of growth with the help of the most effective product of the company named Maggi. The promotions are based on different types of stories which are related to the ways by which the consumers are affected by the products (Michael, Storey & Thomas, 2017). Nestle has also started promoting the products with the help of free samples that are offered to the consumers. The organization has also started implementing different types of promotional strategies for the chocolate based products. The media which are used by the company in order to promote the products include, television commercials and posters. The major challenge is based on the ways by which the promotions are able to appeal to the purchasers and consumers (Meyer, Neck & Meeks, 2017).
Conclusion
The report can be concluded by stating that the Nestle India has been able to develop its position in the industry with the help of products and services. The environmental factors have been able to affect the ways by which the company has developed the policies in order to operate in the country. The positioning strategy which is used by Nestle has also proved to be effective for the operations of Nestle. The target market of the company is quite huge and the needs are fulfilled by different products. The marketing mix of the organization has been developed in such a manner which has been able to develop its position in the industry and the country.
References
Barros, I., Hernangómez, J. & Martin-Cruz, N. (2016). A theoretical model of strategic management of family firms. A dynamic capabilities approach. Journal of Family Business Strategy, 7(3), pp.149-159.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. & Long, R.G. (2017). A strategic management perspective of the family firm: Past trends, new insights, and future directions. Journal of Managerial Issues, 29(1), p.6.
Demir, R., Wennberg, K. & McKelvie, A. (2017). The strategic management of high-growth firms: a review and theoretical conceptualization. Long Range Planning, 50(4), pp.431-456.
Durand, R., Grant, R.M. & Madsen, T.L. (2017). The expanding domain of strategic management research and the quest for integration. Strategic Management Journal, 38(1), pp.4-16.
Dyer, J.H., Godfrey, P., Jensen, R. & Bryce, D. (2015). Strategic Management: Concepts and Cases. Wiley Global Education.
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Ethiraj, S.K., Gambardella, A. & Helfat, C.E. (2018). Theory in strategic management. Strategic Management Journal, 39(6), pp.1529-1529.
Frynas, J.G. & Mellahi, K. (2015). Global strategic management. Oxford University Press, USA.
Hill, C.W., Jones, G.R. & Schilling, M.A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Hubbard, G., Rice, J. & Galvin, P. (2014). Strategic management. Pearson Australia.
Karadag, H. (2015). Financial management challenges in small and medium-sized enterprises: A strategic management approach. Emerging Markets Journal, 5(1), p.26.
Kasemsap, K. (2014). Strategic innovation management: An integrative framework and causal model of knowledge management, strategic orientation, organizational innovation, and organizational performance. In Strategic approaches for human capital management and development in a turbulent economy (pp. 102-116). IGI Global.
Meyer, G.D., Neck, H.M. & Meeks, M.D. (2017). The entrepreneurship?strategic management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
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Nestle.com. (2018). Retrieved from https://www.nestle.com/aboutus/history
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