Nestle is considered as one of the largest foods and beverage company. There are more than 2000 brands which are offered in the market on the global platform. Headquarter of the company is in Vevey, Switzerland. The company has focused on research and development and there are more than 500 factories in 86 countries. The tagline of the company is “Good Food, Good Life”. The main aim of the company is offer quality products to the customers so that their needs can be satisfied. Henri Nestle endowed his company and the symbol is also derived from his name (Nestle, 2018).
In 1905, the company also merged with Anglo- Swiss condensed Milk company. In 1900s, the overall activities of the company are managed in United States, Britain, Germany and also Spain. The vision of the company is ‘We believe that research can help to make the food better so that people can live a better life”. The mission statement of the company emphasizes on “offering best food to people with the unique experience so that needs can be satisfied and also quality of life can be enhanced (Nestle, 2018).
The customer relation of the company is built by focusing on the customer value and also on enhancing the satisfaction as it can help in maintaining the large customer base. The goal of the company is to maintain its customer base by offering superior value and also to grow in the market by enhancing the satisfaction level in the competitive market. Nestle defined its overall marketing as a social and managerial process in which the people consider the good food and good life by creating and exchanging the products and services. The basic principle of the company is to manufacture and market the overall products of the company so that long term relations can be maintained with the shareholders, employees, customers and with the partner of the business.
So, in this paper the discussion will be made on the Nestle Company. In the first phase of the report, the discussion will be made on the marketing environment and also on the factors which are important to be considered as it can help in planning the future marketing activities of the company.
In the next phase, the ways in which these factors can impact on the overall marketing activities will be considered. In the last phase of the report, the recommendations will be made that should be considered by the company as it can help in accomplishing goals and objectives in the competitive market.
It can be stated that marketing is defined as the concept through which the products and services of the company are introduced in the market. Through this it can be simple for the company to introduce the products and also the demand can be enhanced. It is important for the companies to focus on the strategies so that goals and objectives can be determined. Nestle focuses on the concept of marketing (Baker, 2016).
The marketing strategy considered by the company is related to the progressive human resource and social policy which involve the management style based on management commitment and also people involvement. The company also focused on protecting the environment by considering the environmentally sound practices and also to reserve the natural resource and save energy. For example: the company assured that products, manufactured and distributed by the company are certified by HALAL which is authorized by Islamic certification bodies. So, the company delivered the shareholder value through emphasizing on the sustainable and profitable long-term growth. Also, it has been seen that to achieve success in the market the company focused on the maintaining the leadership style in the market (Adams, Schenker and Loerincik, 2015).
The emphasis of the company is to focus on the strategic position so that changes in the overall factors of the business can be considered. In the business it is important to allocate the resources in a proper manner. It will also help in bring improvisation in the overall productivity of the company. The economic system is one of the essential factors which can assist in allocating the scare resources in a proper manner. It is important for the company to consider the legal policies so that it can be easy to manage the overall activities of the company in the competitive market. So, there are various models or the strategic concepts which are considered by the company at the time of planning the future marketing activities of the company (Madhavaram, Hunt and Bicen, 2017).
The first model which is considered is related to Pestle analysis. In this model, there are the factors which is important to be considered at the time of planning the overall future marketing activities.
It can be seen that company is liable to consider the political influences so that it can be easy to depict the future growth of the company in the competitive market. It can be seen that there are various laws and regulations which are applicable and also it is important to be considered so that it can be simple to maintain the food safety programs. Like ISO 9002 and HACCP are the preventive food safety systems which are considered by the company. It can be seen that the company has suffered from various challenges related to the overall contamination of the products and which can also lead to the recall of the products in the market. So, it is important for the company to consider the political factor at the time of planning the future activities. Political factors are important to be considered as it can help to fulfill the expectation and also it helps to focus on the legislations and regulations which are applicable (Ho, 2014).
It is also one of the important factors that can help to determine the overall sales of the company in the competitive market. The business environment on the global platform has been hindered by the economic setbacks and it is just because of the downturn and global recession. These factors have also impacted the overall demand of the products through its impact on the consumer spending. The rise in the emerging market economies also pretends the surplus of the buying power and also the economies of scale which enhance the competitive advantage (Crane et al., 2014).
It has been seen that Nestle has strengthen its competitive advantage by emphasizing on the overall leverage of huge resource capital and research and development capability into the overall introduction and redesign of the products (Wang and Li, 2016). Through the localization of the overall activities in 100 countries on the global platform, the company focused on managing the overall impact of the foreign currency fluctuations on the import and export aspects related to trade. So, before planning it is important to focus on the economic condition so that according to that the products and services can be introduced in the market (Dembek, Singh and Bhakoo, 2016).
When the planning is done it is important to focus on the social aspects as it can help in maintaining the overall demand of the products in the market. Nestle is dependent on the overall satisfaction of the customers and also on the desirability of the product that can range to attain success. The main aim of the company is to focus on the huge spending on the competitive sectors so that brand image can be maintained and also product desirability can be enhanced. It has been seen that competitive advantage in this sector needs continuous research and development which can also lead to the introduction of the products in the market. This is one of the strengths which is possessed by the company and also it is the factor on which the overall activities of the company are based (Grant, 2016).
The customer nowadays is more conscious about the quality of the products and due to this there is increase in the demand of the healthier products. This is also the factor that affect the products lines of the company. The company has also focused on various steps related to acquisition and start up so that it can be easy to meet the demand of the customers and it will assist in considering the advantage related to market trends and opportunities (Burns, Bush and Sinha, 2014).
It can be seen that in this the focus is given on the capability of the company. Nestle focused on various investments related to research and development which enhance overall profits and also the efficiency of the process. Also, the company focuses on maintaining the challenges so that quality control can take place. The company focuses on considering the latest technologies so that it can be simple to maintain the overall productivity level in the competitive market (de los Reyes Jr, Scholz and Smith, 2017).
The company is also engaged in various programs which aims to focus on the concept of eco friendly and also it considers the CSR activities. It can be analyzed that Nestle is criticized for the weak approach. It is necessary to focus on the environmental factors so that it can be simple to maintain its goodwill in the market (Bennett and Chorley, 2015).
It can be stated that diverse jurisdictions need to focus on the legal capabilities. So, it is important to focus on the legal factor as it can help in mergers and acquisitions which can lead to enter into the new markets.
There are various ways that can be considered and it can also impact the overall activities related to marketing. It can be seen that when the government interfere in the activities of the companies then it can be difficult to focus on the overall growth. The employment policies. Tax laws and also trade restrictions can affect the business. Also, to market the product it is important to consider the overall policies related to tax and employment (Wensley, 2016).
Also, the factor related to economic can impact the marketing of the activities in terms of exchange rate, inflation and also interest rates. The social factor can also impact the marketing as it is important for the company to focus on the culture and beliefs of the society. Also, it is important to consider the latest technology as it impacts the overall productivity of the company. If there is no productivity then it can be difficult for the company to enhance the sale in the market. In context to legal factors there are policies which is important to be followed at the time of marketing and it should be done by emphasizing on securing the overall environment (Porter and Kramer, 2018). So, these are the ways in which these factors can impact the overall marketing activities of the company.
So, it can be concluded that there are various factors which influences and impact the overall activities in the business environment. It is important for the company to focus on considering effective strategies so that it can be easy to survive in the competitive market. It has been recommended that by considering the overall economic policy the company should emphasize on reducing the cost of the product by maintaining the quality as it can help in accomplishing goals and objectives in the business world. If the cost of the products is low then it can be also easy to enhance the demand of the products in the market.
Also, it can be recommended that strong eco-friendly initiatives should be considered as itcan help to reduce the negative impact of the environmental factor in terms of the overall profits. The company should focus on introducing healthy products so that the demand and sales of the company can be boosted in the competitive market. So, it can be stated that these strategies should be considered by the company as it can help in accomplishing the targets in the business environment.
It has also been recommended that company should focus on analyzing the social trend prevailing in the market. By considering the customer demand and taste the marketing should be done so that large market share can be grabbed and also it will boost the image of the company in the market. It is important to focus on the social trends prevailing in the market as it can help in boosting the demand of the products
References
Adams, A., Schenker, U. and Loerincik, Y., 2015. Life Cycle Management as a Way to Operationalize the Creating Shared Value Concept in the Food and Beverage Industry: A Case Study. In Life Cycle Management (pp. 341-348). Springer, Dordrecht.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Bennett, R.J. and Chorley, R.J., 2015. Environmental systems: philosophy, analysis and control (Vol. 1448). Princeton University Press.
Burns, A.C., Bush, R.F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson.
Crane, A., Palazzo, G., Spence, L.J. and Matten, D., 2014. Contesting the value of “creating shared value”. California management review, 56(2), pp.130-153.
de los Reyes Jr, G., Scholz, M. and Smith, N.C., 2017. Beyond the “Win-Win” Creating Shared Value Requires Ethical Frameworks. California Management Review, 59(2), pp.142-167.
Dembek, K., Singh, P. and Bhakoo, V., 2016. Literature review of shared value: a theoretical concept or a management buzzword?. Journal of Business Ethics, 137(2), pp.231-267.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European academic research, 2(5), pp.6478-6492.
Madhavaram, S., Hunt, S.D. and Bicen, P., 2017, May. The FREE (Firm Resources and External Environment) Framework as an Alternative to SWOT: An Abstract. In Academy of Marketing Science Annual Conference (pp. 49-49). Springer, Cham.
Nestle. 2018. Good food, good life. [Online] Available from: https://www.nestle.in/ [Accessed on 10th December 2018].
Porter, M.E. and Kramer, M.R., 2018. Creating shared value. In Managing Sustainable Business (pp. 327-350). Springer, Dordrecht.
Wang, Q. and Li, R., 2016. Impact of cheaper oil on economic system and climate change: A SWOT analysis. Renewable and Sustainable Energy Reviews, 54, pp.925-931.
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107). Routledge.
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