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  • June 19th, 2024

A Case Study on Nestle: How It Has Become So Successful?

Caregrow, Nescafe, Maggi, and Kitkat are very popular in every household and no one has not consumed these products in their life once. There is a very important similarity among all these products. All these products are manufactured by the same company that is Nestle. There is no scope to deny that we all have enjoyed the outstanding products of Nestle, be it in the fresh smell of hot coffee, a bowl of delicious noodles, or a short break. The company has become very successful after encountering a lot of problems during its journey. It is still growing. We all are familiar with the brand Nestle now and the products of Nestle have become the companions of our everyday life. 

But do you know how? With the help of this case study of Nestle, we are going to discuss everything about Nestle, the marketing strategy of the company, the competitors of the company in India, and many more. There are more than 2000 brands owned by Nestle from global stars to regional ones. But how did Nestle become so successful? This is a 150 years old company. Despite getting the same opportunity a lot of companies failed to survive. But Nestle did. Do you know what is the secret behind the success of Nestle? With the help of this case study of Nestle, you will be able to learn the strategy of Nestle that helped the company to reach the top of success. So, let’s learn more about the company. 

A Short Overview of Nestle

Nestle began its journey by selling baby food in the 1860s. The only aim of the company was to cut down the child mortality rates. From then on it has come a long way. 

The company became a famous name slowly in various industries like healthy food, wellness, and pet care. The tagline of the company was ” Good food, Good life”. 

You are certainly wondering about how the company acquired its position. You will get all your answers if you learn the digital marketing strategy of the company once. 

Nestle is a world-famous packaged food and beverages manufacturer. This is the largest food manufacturer in the globe operates in over 186 nations and contains more than 2000 product brands. 

The company entered India in 1956. Then it started to sell its first milk product in the 1960s. After that, it started to sell different ranges of Nestle products in India. The company has prospered incredibly in India. 

With this incredible development, the umbrella of Nestle keeps broadening every day. They are supposed to be not only the largest food and beverage firm in the globe but also one of the nicest firms that have easily united with the digital world and become highly successful. 

Nestle India slowly started to make its presence in the FMCG sector and currently, the company has a decent market share in the food and beverage industry. 

The company is supposed to be the most comprehensive food and beverage company considering revenue. Moreover, the pricing strategy of Nestle has a significant role in helping the company reach the position where it is today. 

The company manufactures various products line beverages, breakfast cereals, chocolates, dairy, and nutritious foods like vending and provides food services. 

Famous food products such as Maggie, Kit Kat, milkmaid, Nescafe, and Polo have been added to the products of Nestle sold in India. 

This outstanding company is showing its skill in nutrition, health, and wellness for over 150 years by helping its consumers, families, and pets so that they can live healthy and happy life. 

But they think that what is proper today might not be perfect for tomorrow. That is why they keep on exploring and experimenting with more foods, beverages, and nutrition. 

Nestle shows the power of food to develop the quality of life for everyone, not only for today but also for the upcoming generations. 

The company concentrates on getting more fun and joy to the consumers, how they may enable better health, and how can make the best nutrition reasonable for everyone. Moreover, the company tries its best to save and boost natural resources. 

What is the History of Nestle?

The union of the Anglo-Swiss Milk Company founded Nestle in 1905. The two brothers Charles and George Page and Farine Lactee Henri Nestle set up the company in 1866. 

Nestle arose in 1860 while the two individual Swiss companies later developed Nestle. 

In the subsequent decades, the two opponent firms improved their businesses all across the United States and Europe. 

The two brothers from the Lee nation, Illinois, USA named George Page and Charles created the Anglo-Swiss Condensed Milk Company in 1866 in Cham, Switzerland. The British operation of the company was started in 1873 at Chippenham, Wiltshire. 

At the time of the First World War, the company developed incredibly, and at the time of the Second World War, the organization expanded its products from condensed milk and baby food products. 

Several Important Facts and Figures About Nestle

There are a few important facts and figures about Nestle that help the company to stand out from the crowd. They are as follows: 

  • Nestle is supposed to be the largest food and beverage company in the globe. 
  • About 276000 workers are working in the company. 
  • The company has gained 30 companies. 

Who are the Opponents of Nestle in India?

Nestle has a lot of consumer brands like Kitkat, Carnation, Stouffers, and Nestle-water. The net worth of 30 of its brands is above $1 billion as of 2010. This has made the organization a very important leverage in the food and beverage industry all across the globe. 

About 42% of the sales of the company come from North America. The company has secured such a position that enables it to win over its opponents easily. 

The brands are built very well in a decent market share in the best economies like the U.S. and Europe. 

The most important opponents of Nestle are Unilever and Danone. They are also very popular like Nestle in the food and beverage industry. 

Unilever declared in 2010 that the annual revenue of the company has grown about 26% due to its increased sales in the food and beverage industry particularly frozen food, ice cream, cooking ingredients, and tea-related beverages. 

On the contrary, Danine declared that it has grown about 38% due to its increased share costs. Moreover, their yogurt sales have increased due to which their revenue also improved. 

Nevertheless, Nestle keeps up its position in the market by following a unique accounting strategy which helped decrease its expense of sales. 

The organization may also combine stipends, offers, and advertising for its retailers with the help of the sales revenues in place of the marketing line. 

Their sales indeed decreased for a year. But with the help of the pricing policy Nestle matched its equivalents and it became a world-famous manufacturer in the highly competitive market. 

As Nestle is the most famous food manufacturer all across the globe, it has to face severe competition with its opponent firm, Unilever. 

There are about 1, 49,000 workers in Unilever and the company operates in 160 nations. The headquarters of the company is located in London which is only for home, food, and personal care. 

The organization is striving its best to win over Nestle with the quality of its derivatives. That is why Unilever has become the second organization in the ready meals markets of Western Europe along with a market share of about 8.6% which is only 0.3 points below the world-famous Nestle. 

Who is the Target Audience of Nestle?

The most important fact about Nestle is that it provides a lot of products considering the requirements of the target audiences of any age. It offers products to 2-years old babies to working experts. 

The target audience of Nestle is as follows: 

  • Kids
  • Working professionals
  • General audiences

The company produces products for each segment of its target audience. They are as follows: 

  • Koko Krunch, Lactogrow, Caregrow
  • Sunrise, Nescafe
  • Maggi, Kitkat, Milkmaid

Most people, particularly the people who love coffee, have good knowledge about the importance of Nescafe among the working experts. 

Nestle assures that Nescafe is the only coffee that is capable enough to keep the working people fresh the whole day and there is nobody who does not want to feel re-energized. 

Parents always rely on the baby product of Nestle which is Caregrow without any doubt for their babies. This baby product is made up of cereals that help to keep young children healthy. 

Besides this, the company produces a wide range of other products such as Milkmaid, Kitkat, and Maggi for the general audience. 

In this way, Nestle has produced various types of products for every segment of people in India. 

Digital marketing Policies of Nestle 

Nestle has always concentrated on the latest marketing techniques be it digital marketing techniques or offline techniques. With the help of the marketing policies of Nestle, you will be able to learn how to develop effective marketing policies and obtain an optimistic reaction from the consumers. 

The digital marketing techniques of Nestle are discussed below in detail: 

Partnership with Significant Stars

The popular product of Nestle that is Neacafe unites with stars to express their message and improve the reach of the brand. 

They made the popular Bollywood actress Disha Patani their brand ambassador. 

They have just introduced a campaign with the renowned content makers known as Karne Se Hi Hona hai that indicates “Only doing will make it happen”.

They made this campaign at the time of the Covid-19 pandemic to encourage people and motivate them to continue their work to meet their dreams irrespective of any situation they face. 

With the help of this campaign, they aimed at the young people of India and told them to dream, work, and get success. 

Created Campaigns That Foster Relations and Fetch Consumers Together

The company challenged a common 37-year-old man, Arnaud who had 12,000 friends on Facebook to meet his friends over a cup of tea. 

That is why he made a video of those meetings and transformed them into a 42-minute online video documentary. At the time of the meetings, Arnaud liked the cup of Nescafe with his friends. 

The documentary became viral on social media platforms. About 8 million people on Facebook viewed the video and nearly 63,050 liked it. About 4,850 people commented on it and it was shared 5,550 times. 

The number of fans on the Nescafe Facebook page grew by 400%. The documentary made the people excited and people were eager to know how to transform their online companionship into real-life connections. 

The company made a Facebook campaign called le Defi Nescafe in reaction to enable the winners to get the exact experience. Over 26,000 people followed it, about 19,000 people put likes on it, and about 1,725 people shared it. 

Nescafe became very popular online through this marketing technique. 

Localization of Products

Localization means to adapt the products of a company to the regional market. Nestle has made huge localization of its products. For instance, the company produced coffee-flavored chocolates in Japan. 

We all know that Japan is a tea-loving nation and the organization made these chocolates so that children can understand the taste of coffee. 

After that, the company produced Kitkat and Nescafe which brought a historical outcome. 

Content Marketing 

Nestle made a huge number of video content on the YouTube channels of each brand. They made different types of content like informative videos or tips for cooking or better concepts about choosing the proper products. 

For instance, there were over 530 videos on the YouTube channel Meri Maggi and it has 5, 71,000 subscribers. 

Out-of-home Promotion 

The various brands of Nestle like Milo, Maggi, Nescafe, and Kitkat apply various ways to catch the attention of consumers. 

The brands of Nestle came to the limelight for their creativeness with the help of banners, or hoardings. The positive aspect of OOH ads is that a lot of people can properly get the ads. 

People may click photos online and share them with their friends or families. Moreover, with the help of OTT, they may catch up with many people at a reasonable price. 

Moreover, Nestle has unique marketing policies and they generate a lot of consumers. 

Co Branding 

Have you ever heard about Android KitKat? Google and Nestle collaborated several years ago and created an Android KitKat operating system. 

Nestle was encountering a recent dishonor with their pet derivative and desired to capitalize on the impression of Google. With this film, they created a buzz and won over the problem. 

Recently, Nestle made another contract with Starbucks to destroy two birds at a time. 

Firstly, the company joined the new product expansion stage that is roasted beans, and developed its brand by uncovering a lot of Starbucks Nespresso Capsules. 

Do you understand how Nestle benefited from the help of co-branding? 

Co-branding is an outstanding way to step into a new market and improve the reach of a company. This marketing strategy helps a start-up company who is looking to create brand awareness or introduce a new product. 

It will be useful in case you can find out the businesses that complement your derivatives and work together with them to operate co-branding promotional advertisements. 

What Kind of Challenges did Nestle Face?

There is no doubt that Maggi was the most famous instant noodles company in India. The brand has managed to make a strong presence in the food industry of India. But unexpectedly it got contentious. 

State food controllers declared that there are monosodium glutamate and lead more than the suggested limits in Maggi which were risky, particularly for children. 

As soon as Nestle got the lab reports, it stated that they had the best quality control method and that their derivatives can be consumed safely. 

The National Food regulator FSSAI finally instructed to prohibit the sale of Maggi. 

As a result, several state administrations set a provisional prohibition on Maggi noodles sales in several states. Due to this, the future of the brand all of a sudden began to look dark. 

There is another complaint about Nestle. A lot of critics blamed Nestle for discouraging mothers from breastfeeding. 

The company displayed that they have a much healthier baby formula than breastfeeding though they were not able to provide proper evidence in support of this claim. 

That is why Maggi was boycotted for the first time after its production in 1977 in the United States and gradually it spread to Europe. 

A lot of reports accepted the huge use of child labor in the production of Cocoa. Nestle and other significant chocolate companies rely on slavery, and child trafficking all across the Western African plants.

According to the 2010 documentary, one of the worst aspects of chocolate is that children who are generally 12 to 15 years old are working in these plants. Nestle was criticized a lot for this as it entertained child labor. 

What are the Plans of Nestle for the Future?

Nestle is planning to finance Rs. 5,000 crimes in India in the upcoming 3 ½ years according to Mark Schneider who is the CEO of the company. 

The FMCG organization which has about 2000 brands all over the world thinks that with the help of this initiative, Nestle will be able to enhance its primary business in India and will experience new development possibilities. 

It is supposed to be the most important investment of the brand in India from the year it began to manufacture products. 

Final Opinion

Nestle is a very popular nutrition, food, wellness, and health company. The competitive policies of the company primarily concentrate on international direct acquisition in dairy, ready-to-eat, and other food industries. 

There is indeed a growing competition, Nestle has become able to stay on the top for a long time. The company keeps up its superiority by maintaining a balance of sales between high-risk and low-risk countries. 

Nestle has established itself as a leader over the years in the food and beverage industry with creative products and creative marketing policies. 

The company makes remarkable, share-worthy, and relatable drives. The company is going to create a strong presence in the future. For this digital marketing will have a significant function in the future development of Nestle. To conclude we may say that the company will keep on growing as it continuously follows its mission, significance, concept, and objective. If you need any help you may contact My Assignment Writing Help

FREQUENTLY ASKED QUESTIONS

  1. What Strategy Does Nestle Apply in India?

Nestle applies the product strategy in India. With the help of this product strategy from the beginning the company has been able to create consumer products that have good nutritional value and can be a component of day-to-day life. They have launched brands like Lactogen, Cerelac, dietary supplements like Milo, a health drink for teenagers, and baby food. 

  1. What Problem Does Maggi Face in India?

Maggi noodles were recollected in June 2015 and the sales of Maggie were prohibited for some time all over India because of several issues. It was found that Maggi contains high levels of lead and monosodium glutamate. At that time nearly 400 million packs of Maggie noodles were eliminated according to the reports. 

  1. How Has Nestle Won Over the Maggi Issue?

Nestle had a quick response as soon as the ban on Maggi was declared. The company launched a bold drive to keep up brand loyalty at the time of this difficult situation. With the help of Tv and radio ads, they reassured the consumers that there is no risk to consume their products. They are all completely safe. They also added that they are striving their best to settle tfs case as early as possible. 

  1. What is the Reason Behind the Success of Nestle?

Nestle has become so successful due to its unique marketing strategy. With the help of its marketing strategy, it can meet the requirements of its customers and their families all over the universe so that they can live a healthy lifestyle. 

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