Nestles marketing strategy

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Introduction

Having been founded by Henri Nestle in 1866; Nestle Company has ever since swerved through the competitive business market to become world’s leading food and Beverage manufacturer (Nestle, 2010). The Switzerland-based company has established a global network of factories and currently operates in almost all countries in the world. The company’s marketing strategies are based on a range of its fundamental principles. For instance, the company’s management of its environmental and social responsibility impact is dependent on the existing corporate business principles (Times, 1998). Nestle company has ever since designed long term strategies to carter for the interest of its customers, consumers as well as other stakeholders. These long-term strategy encompasses the socially responsible and sustainable business practices as essential components of the company principles HYPERLINK “http://connect.in.com/shereen-bhan/profile-253641.html” t “_blank” (Bhan, 2010). More importantly, the company holds that long-term development should not be sacrificed for short term profits. Nestle company has been involved in a range of sound marketing strategies that has facilitated the commendable performance of the company. For instance, innovations and renovations have been the key strategies adopted by the firm to improve both the quality and quantity of products in the market ( HYPERLINK “http://findarticles.com/p/search/?qa=Alex%20Benady” Benady, 2005). Moreover, Nestle Company embarked on other marketing strategies including product promotion, fair pricing in addition to the corporate social responsibility and sustainable practices in its bid to increase sales and competitiveness in the global market ( HYPERLINK “http://findarticles.com/p/search/?qa=Alex%20Benady” Benady, 2005). Adoption of both responsive as well as strategic corporate social responsibility exemplifies one of the company’s marketing strategies (Snider, & Hill, 2003).

It is almost inevitable for a reputable company to separate its business operations from the society within which it operates (Stephenson, 2008). Nestle company is an example of such firms that has implemented a range of marketing strategies aimed at both improving the firm’s performance as well as its public image. At the outset, Nestle has ventured into creation of shared value as a fundamental way of doing business. The activity focuses on the main areas of the company’s business including water, nutrition as well as rural development thereby ensuring that the interests of both the society as well as shareholders are taken into account (Lockett & Moon, 2006). Nestle company initiated a program where outstanding projects or innovations in the above mentioned areas were awarded in an attempt to encourage such activities (Times, 1998). The prize laureate is selected by the company’s advisory board in collaboration with international experts and a substantial amount of money worth about $475000 is set aside for the awards (Lee, 1991).

Nestle company has reserved a specified financial amount to ensure the long-term success of the initiative. International Development enterprises (IDE) Cambodia was the first company to receive the Nestlé Prize in Creating Shared Value on 27 May 2010 for a project that improves the living standards of Cambodian rural population by increasing both income and agricultural productivity (Nestle, 2010). The above mentioned prize is awarded to individuals, non-governmental organizations as well as businesses which have developed an innovation that demonstrates high potentiality in improving the living standards of the rural communities and farmers, providing the population with high nutritional value to offset their nutritional deficits or improving the access to water source. Moreover, those that have proven their worth as well as built on an effective and sustainable model are also fit for the award (Nestle, 2010).

Besides, Nestle is committed to adhering to the United Nation’s Millennium development goal of sustainability through a variety of approaches. To begin with, The Company initiated three projects dubbed, Volcafé, NKG, and Ecom in Guatemala, Vietnam and Nicaragua to implement sustainable approach in the coffee sector. Moreover, the company resorted to supporting a group of planters for three years to become economically viable, socially responsible as well as environmentally friendly. Basically, Nestle Company ventured into providing financial support to individuals, organizations or businesses in an attempt to support their innovations and projects (Nestle, 2010).

The quality of relationship between a company and the society where it operates is elemental to the sustainable performance of the company (Stephenson, 2008). Nestle company has ever since maintained positive relations for a extended period of time. The existence of Nestle Company in a variety of countries demonstrates how the company is handling social issues in varied culture and labor practices (Heide, 1992). As a result, a lot of challenges are met by the firm while implementing such policies in countries where there are no clear laws on corporate social responsibility or union representatives are missing. Nestle ensures that the social issues affecting the company are discussed transparently in workshops and company meetings where social disputes are handled (Nestle, 2010).

Nestle company has in the past enhanced its competitiveness in the market by implementing sound marketing strategies as well as social corporate responsibility practices which have influenced the public’s trust in the company (Jallow, 2009). The company has been involved in social issues including responsive philanthropy. For instance, Nestle is committed to enhancing education in the societies where it operates. To begin with, Nestle Company has been involved in provision of scholarships top individual students as well as educational programs that support the students academically (Snider, & Hill, 2003). Nestle USA Company offered sponsorship to a unique community service program referred to as Pasadena Independent Schools Foundation (PISF) which was designed to offer education to students on the significance of philanthropy. The company offered financial grant of about $75000 in collaboration with other like-minded sponsors (Nestle, 2010).

The Nestle USA usually provides financial support to the social development of youths across USA as well as contributing regularly to the educational services of the students in the nation. This company has established a program known as Nestle Adopt-A-School where employees are engaged in provision of educational services such as teaching the students as well as reading to the children in their basic schools (Robin, 1987). The employees have dedicated a lot of their time providing the aforementioned services to more than fifty nine schools across United States. The company has therefore gained reputation in the country on the above mentioned basis in addition to providing quality products and brands with great flavor which are admired by many people in the US (Porter, 2006).

Besides, Nestle Company reduced its greenhouse gas emission considerably in 2007 as well as reducing the water withdrawal and on the other hand increasing its productivity tremendously by about seventy five percentage in the same year. Furthermore, the company went ahead and invested massively in industrial improvements that are environment-friendly. (Abolaa, 2008). Nestle company has also provided free technical support to more than half a million farmers in the third world countries. This is meant to improve the relationship between the company and the society as well as improve production and sale of its products globally (Porter, 2006). Through such marketing strategies, Nestle Company has managed to attract many customers thereby enlarging its market share hence a competitive advantage no wonder it is the world’s leading firm in the manufacture of food and beverage (Snider, & Hill, 2003).

Conclusion

Nestle company has undergone transformations in its marketing strategies from the old traditional approaches to the contemporary approaches which are sensitive to the global market thereby becoming the world’s leading manufacturer of foods and drinks (Kelly, 2007). In an attempt to improve its competitive ability in the market as well as increase its sales, Nestle Company has continually adjusted its management strategies to conform to the local taste through the processes of adapting, learning and achieving success through use of specific features of the host society (Robin, 1987). Moreover, the company has always capitalized on the business opportunities in the market by implementing successful marketing and sales strategies thereby realizing annual profitable growth. Nestle company emphasized on both innovations and renovations as a means of developing news products in the market. Besides, the company also embarked on research and development as the viable strategy in enhancing the competitive ability of the firm by improving the company brand (Wills, & Samli, 1991). Nestle invested a lot of finances on research and development hence tremendously increasing the quality of products in the market (Alvarez, Pilbeam, & Wilding, 1996)The company’s strategy of adopting sound and sustainable corporate social responsibility improved the performance of the company by enhancing its public image as well as improving its competitiveness in the market. In a nutshell, Nestle Company implemented various marketing strategies including fair pricing, product promotion, innovations and renovations as well as indulgence in research and development thereby conquering the market to become the world’s leading manufacturer of food and beverage HYPERLINK “http://connect.in.com/shereen-bhan/profile-253641.html” t “_blank” (Bhan, 2010).

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