Finished Product Launch:
Nestlé’s main business objective is to manufacture and market products as well as create a long-term sustained value for all shareholders, consumers, employees, partners and economies of operation. Nestlé’s brand name is well established and the company favors long-term brand establishment and business development over short-term profits.
Nestlé’s pricing strategy for both local and international markets focuses on offering a single National Price List (NPL) and monitoring distributors to maintain these prices. However, distributors are offered discounts to avoid distribution channel conflict.Prices are also flexible since Nestle produces large quantities of products and enjoy large economies of scale (low costs of production and high yields). This helps Nestle counter competition in all their markets.
The pricing of Nestle products is based on a quality versus price analysis and thus consumers are not affected much by changes in price since quality is assured. For both medium and low income consumers in domestic and international markets, Nestle markets its products at affordable prices while ensuring healthy lifestyles by providing highly nutritious foods to compensate for dietary deficiencies. This combines price convenience with good taste and relevant nutrition.
Marketing Communications and Public relations:
Nestle uses promotion to provide awareness to consumers about different products launched and their value in terms of pricing and nutrition. Nestle adopts a market communication mix known as the promotion mix that perfectly blends all product promotion tools. These include personal selling, advertising, sales promotion and publicity.
Nestlé’s product packaging is a highly efficient medium of communication by providing nutritional information to consumers. Nestlé’s Nutritional Compass is included on all their packaging and is easy to read, user friendly and focuses on nutrition. This compass gives factual nutritional information, tips on healthy lifestyles, diets and cooking as well as customer support and contact information. Publicity is also a powerful tool exploited by Nestle. The company’s public relations departments communicate with the governments of the economies they operate in as well as consumers about various issues faced. This is aimed at bringing consumer and organizations’ attention to various issues and concerns and current measures being taken to resolve them.
Distribution strategy (domestic and international market entry):
Nestle relies on consumer marketing and distribution channels where final products reach end users through wholesalers and retailers. Nestle also uses e-marketing and direct marketing for some of it products.
Intensive distribution strategy is the choice for Nestle so that the company can reach a wide customer base. This has been done through the use of a large number of retail outlets. This strategy applies to both domestic and international markets by use of extensive distribution channels and various manufacturing units set up in places all over the world ("Marketing Strategies of Nestle", n.d.,).
This approach however requires more product specificity and in the case of healthy foods, a ‘Wellness’ approach focusing on Nestlé’s tradition of producing highly nutritional foods is appropriate. Effective implementation of this strategy in domestic and international markets would however require Nestle to match it to the prevailing business environment.
A social environment would thus be a good choice since the products promote healthy lifestyles and thus the strategy will be consistent to organizational principles and values.
Pursuing this strategy in launching the product into a new market would ensure successful delivery of healthy foods that are of high nutritional value and contribute highly to general consumer wellness.
- Marketing Strategies of Nestle. (n.d.). Scribd. Retrieved from