Marketing mix of Nestle (4Ps of Nestle)
This article offers an in-depth analysis of the marketing mix of Nestle. It evaluates the strategies and techniques with regards to the 4Ps (Product, Price, Place, and Promotion) of Nestle. Nestlé S.A. is a Swiss conglomerate. It has been producing food and beverage products for over 150 years. It is considered the largest fast moving consumer goods company in the world.
Nestle’s products are divided into different categories i.e. baby foods, cereals, chocolate & confectionery, bottled water, coffee, culinary, chilled & frozen food, drinks, dairy, food service, healthcare nutrition, ice cream, and pet care (Nestle, 2021). It has more than 2000 brands in its portfolio. Its website contains a very good number of recipes as well. This shows that Nestle’s product portfolio is absolutely vast and far away from the reach of many of its competitors.
Nestle’s products are of very good quality. Its products are locally managed to address the needs of customers. It invests an enormous amount of money in research and development to identify what customers may desire and need both in the short and long-terms.
However, like many other companies, Nestle had to recall some of its products in the past due to health concerns. For instance, in the UK, it recalled a coffee product as it was considered unsafe to drink due to contamination with cleaning solution (Wild, 2020). Likewise, some of its products were boycotted by many people over a number of issues such as unethical behaviour, and manipulation of uneducated mothers.
Nestle’s pricing strategies
Coppola (2020) reports that Nestlé generated nearly half of its global sales in 2019 in the Americas. Its total revenue in that year was 92.6 billion Swiss Franc. So, how did it generate so much? What is its pricing strategy? Well, Nestle implements different types of pricing strategies. For instance, it keeps prices of its products close to those of its competitors, hence a competitor pricing strategy.
Nestle’s products are usually more expensive than many retailers’ own branded products. For instance, in the UK, the price of Nescafe Gold Blend Instant Coffee 200G is £ 5.85, whereas the price of Tesco Gold Instant Coffee 200G is £ 3.00 and so is the price for Sainsbury’s Gold Roast Instant Coffee 200G.
Nestle’s place/distribution channels
Nestle has over 2000 brands that are available in 187 countries (Nestle, 2021). So, where can customers buy its products? Well, they can buy from supermarkets, grocery shops, local stores and online. However, not all brands are available in all stores or online. For example, in the UK, many of its products are available in large supermarkets such as Tesco, Asda, and Sainsbury’s. Smaller and independent retailers usually offer a limited number of brands from Nestle.
Nestle’s promotion and advertising strategies
Promotion is the last topic of discussion in the Marketing mix of Nestle. Certainly, Nestle is a world famous brand. To reach such a state of height, it had to implement a comprehensive promotion strategy. It advertises it products on both traditional and digital media.
Nestle’s advertising budget is huge. For instance, it spent $2.3 billion dollars in advertising in the USA alone in 2019 (Statista, 2021). It follows rigid standards when it comes to advertising and marketing products to children. However, Neslen (2018) reports that Nestle was accused of providing customers with misleading nutritional claims about its baby milk formulas.
Nestle invests a lot of money in social causes that improves its corporate image. For instance, it offers thousands of traineeships and apprenticeships every year to people under the age of 30. It is also present in most of the major social media.
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Last update: 17 February 2020
Coppola, D. (2020) Nestlé Group’s sales distribution worldwide 2019, by region, available at: https://www.statista.com/statistics/268894/food-sales-of-the-nestle-group-by-region/ (accessed 17 February 2020)
Neslen, A. (2018) Nestlé under fire for marketing claims on baby milk formulas, available at: https://www.theguardian.com/business/2018/feb/01/nestle-under-fire-for-marketing-claims-on-baby-milk-formulas (accessed 01 February 2021)
Nestle (2021) About us, available at: https://www.nestle.com/aboutus (accessed 15 February 2021)
Statista (2021) Nestlé: ad spend in the U.S. 2013-2019, available at: https://www.statista.com/statistics/331802/netsle-ad-spend-usa/ (accessed 17 February 2021)
Wild, L. (2020) Nestlé recalls batch of product which is contaminated by residues of a cleaning solution, available at: https://www.newsandstar.co.uk/news/18928237.nestle-recalls-batch-product-contaminated-residues-cleaning-solution/ (accessed 16 February 2021)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.