Reviewing Marketing Strategy and Operations for Nestle Company - Assignment Example

Case study report reviewing marketing strategy and operations for Nestle Company Introduction The marketing strategies employed by a firm are quite influential on the general performance in the industry. Apparently, marketing is a broad field of study that provides secrets for serving in the different market structures. Several studies have revealed that the most successive firms in the local and international markets are those that have recognized the importance of effective marketing techniques in conducting business. A common examples of a company that has benefited from the effective use of marketing gimmicks is the Nestle Company. Nestle Company is a multinational corporation that deals with food and beverage products whose headquarters are based in Vevey, Switzerland (Nestle, 2013). The corporation has been identified as one of the best-performing corporations in the global market. In essence, the company’s revenue base has been increasing subsequently over the past few decades. Presently, the company is ranked position 72 among the leading global business firms in the food and beverage industry. The company has established itself among the competitors and developed to be a favorite for many consumers in the industry. Value creation for stakeholders and customers The company has established several outstanding strategies for building value for stakeholders and consumers. For instance, the company has established a smooth communication system with the customers and the stakeholders. Essentially, the company has made good use of the modern technology to communicate with clients and the stakeholders. For example, the company has developed a comprehensive website where the information regarding the nature and type of products produced by the company can be traced. Moreover, the company enhances quality production to facilitate consumer satisfaction and thereby boost the quantity of sale. Basically, quality production is a primary approach towards creating value for a product or service offered by a company. Corporate Social Responsibility The Nestle Company has been of great importance to the society on matters of social and economic development. For instance, the company offers education scholarship to students from poor backgrounds. In addition, the company funds education programs that promote the development of technical skills to ensure that all members of the society possess skills from which they can source their daily bread. Consequently, the company supports health development programs in the various regions it has established its business. In addition, the company is an advocate of sustainable development. For instance, the company has established safe disposals points of solid waste to avoid polluting the environment. Moreover, the company as managed to reduce the use of fossil fuels by a notable percentage. Therefore, it can be observed that the company values corporate social responsibility to promote the living condition of members of the society (Hitt, Ireland, & Hoskisson, 2008).  PESTEL Analysis Political Several political factors influence the operations of Nestle Company. The company operates in the international market and, therefore, the political structures in different countries affects its operation. Research has shown that political instability in some countries has negatively affected the operations of the company in those areas. In addition, the dynamics in the global political arena have been of great influence to the operations of the company. Economic factors The rate inflation and the global economic growth rates have been of great influence on the daily running of the company. The rate of inflation in some countries is unpredictable and thereby results in irregular earnings. Apparently, the cost of raw materials affects the final price of the product. In addition, the cost of production and other miscellaneous expenses influence final pricing of the company’s production (Mooij, 2010). In essence, the rise in the cost of production, as well as the cost of raw materials, have led to the increased price of the final product. Moreover, the dwindling performance of the global economy has led to changes in the consumers buying behavior, in this regard, the company profits have significantly reduced. Social factors The buying behavior of customers is affected by a number of social factors that include; perception, attitude, lifestyle and social status. Basically, a negative attitude towards products results in reduced sales. In essence, the issue of health safety of the products offered by Nestle Company has become controversial in the global market (Nestle & Nesheim, 2012). Some researchers have found that sensitivity to health condition by consumers have affected the sales of Nestle products. Technological factors The company has enhanced the use of modern technology in most of its operations. For instance, the company has invested heavily in social media advertising. Moreover, the company uses the social media to interact with people from different parts of the world. Additionally, the company has incorporated e-commerce to facilitate smooth business across the world. Environmental factors The company recognizes that the environment is a crucial business component. In this regard, the company has purposed to establish strategies that promote strategic development to avoid environment pollution. For instance, the company has established structures that facilitate recycling of waste products to avoid irresponsible disposal of waste. Legal factors These refer to the limitations caused by the established laws of a country. For instance, the company is obliged to respect the international business regulations by default. In essence, the law must be followed to enhance order in the business world. SWOT Analysis Strengths Outstanding culture values Competent workforce Diverse product portfolio Competent and experienced workforce Weakness Health concern to some of its production Insufficient customer service Lack of product standardization Opportunities Access to new markets in the global arena Innovation in the production and packaging process Threats Huge costs for future expansion Reduced demand due to health concerns 4P’s of marketing Product According to Nestle (2010), the company has established a product brand name that is recognized across the world. Moreover, the company offers products that are of high quality. In addition, the company’s products are differentiated from those of competitors to eradicate buyer confusion. Promotion The company employs several product promotion techniques. However, advertisement has been the main product promotion technique for the company. Essentially, the company has incorporated the modern technology in all its promotion campaigns. For instance, the enterprise has put substantial emphasis on social media advertising. In addition, the company has developed an official website where information regarding the products offered can be asked. Price The company provides an affordable price its products. In addition, the firm uses prices skimming technique to market its products. In essence, each region is served by a different price based on the purchasing power of the target customers. Placement The company is strategically positioned in that it is easily accessible from diverse locations. In addition, all the company’s establishments are located in areas that are easily accessible to the target customer. The location of an enterprise is quite technical and, therefore, effective strategies should be established to avoid poor location. Conclusion The business environment has become quite dynamic over the past few years. Therefore, companies should be vigilant on issues such as emerging marketing trends. The modern technology has aided in speeding up business transaction and improving profitability. In summary, business enterprise should employ the modern technology in most activities to promote good market performance. Reference list: Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2008). Strategic management: Competitiveness and globalization. Mason, Ohio: South-Western. Mooij, M. K. (2010). Global marketing and advertising: Understanding cultural paradoxes. Los Angeles: SAGE. Nestle, M. (2010). Safe food: The politics of food safety. Berkeley: University of California Press. Nestle, M. (2013). Food Politics: How the Food Industry Influences Nutrition and Health. University of California Press. Nestle, M., & Nesheim, M. C. (2012). Why calories count: From science to politics. Berkeley: University of California Press Read More