Nestle and Unilever Companies International Marketing Strategies - Article Example

International market is characterized by high competition rate as the number of multinational companies that has high financial capital is high. As a result, for a company to sustain its operations it must ensure that it drafts different strategies that enable it to remain competitive and segment the market. It must also ensure that it creates customer loyalty towards the product an aspect that helps the company position itself in the market (Boone& Kurtz, 2012).Unilever Company uses diversification process in order to increase market size.

This strategy reduces risks and uncertainties that may face one brand an aspect that can have negative effect to the company performance. The company has therefore, involved itself with production of food brands, personal care brands and even home care brands. Also, nestle has specialized has diversified its products as it produces different products that serves different market segments (Jones, 2005).Both companies have standardized their products in order to fit in the global market. Both companies provide the same quality of products in different parts of the world where they operate.

As a result, they are able to create customer loyalty towards the product as the standard of their products is of high. This also plays an important part of being a competitive tool as the features of their products are distinct therefore the products cannot be easily manipulated by the competitors for their malicious gains (Boone& Kurtz, 2012).Both companies use the latest advertisement strategies to attract new customers to purchase their products and remind their customers of the existence of the products in the market.

Some of the latest sites where both of these companies use to communicate to their customers are the social networks. This serves as an important part in enabling the companies to know the changing consumer behaviors and communicate with the customers concerning any issues that might be affecting them e.g. propaganda by the competitors (Jones, 2005).One of the differences in international marketing of the two companies is how they price their commodities. Nestle prices the commodities depending on the geographical location of the consumers, demand of the product in the market and other demographics such as age of the target customers, and their income.

On the other hand, Unilever sets prices according to the level of competition in the market. If the market is saturated with high numbers of competitors, the company sets low prices to attract customers to purchase the products (Boone& Kurtz, 2012).Second major difference between Unilever Company and nestle is the placement of the product in the market. Nestle has diversified its operations to various parts of the world through opening various branches in the world to ensure that customers are able to get access to their products with ease.

On the other hand, nestle using different distribution channels such as supermarkets, wholesalers and suppliers to ensure that products reach target market. This strategy is used to reduce the costs of opening up other branches in the world. This also reduces the cost of running its own distribution channels (Jones, 2005).ReferencesBoone, L.E., Kurtz, D. L. (2012). Contemporary Marketing, 2013 Update. Cengage LearningJones G. (2005) Renewing Unilever: Transformation and Tradition. Oxford University Press