Marketing Mix of Nestle and 4Ps (Updated 2023)

The Marketing mix of Nestle analyses the 4Ps of Nestle, which includes the Product, Price, Place, and Promotion of Nestle. The Nestle marketing mix framework focuses on product innovation, various price points and pricing strategies, innovative campaigns, distribution channels, and advertising strategies to enhance the perceived value of the Nestle brand and create a strong presence in the target market.

The key strategies of one of the largest food companies are intelligence, creativity, and competitiveness. It involves breaking existing stereotypes at the retail level to achieve business goals and desired objectives.

About Nestle

• Origin Country: Switzerland
• Founder: Henri Nestle
• Founded: 1866
• Headquarters: Vevey, Vaud, Switzerland
• Employees: 339,000
• Annual Revenue in 2023: 95.701 billion USD
• Net Income in 2023: 18.496 billion USD
• Market Value in 2023: 372.720 billion USD
• Market Cap in 2023: 301.58 billion USD
• Company Website: nestle.com

Nestle is one of the largest public FMCG companies in the world based on revenues and market cap with innumerable food and beverage items, so it can meet consumer demands in almost all categories successfully.

With time, the brand has seen immense growth in its product offerings, including cooking aids, pet care, health and nutrition products, frozen food, bottled water, beverages, milk-based products, baby foods, cereals and pharmaceuticals etc.

The conglomerate has regularly featured in the Fortune Global and Forbes Global list as twenty-nine associate brands like Maggi, Nescafe Vittel, etc., have registered annual sales of 1.1+ billion USD.

An Overview of Nestle Marketing Strategy & Marketing Mix (4 Ps)

The Nestle marketing strategy includes a mixed product strategy, pricing policies, place strategies, and promotion planning. An overview of the 4Ps follows-

Nestle Product Strategy

The marketing mix framework of the FMCG company Nestle focuses on food and beverage items and product quality requirements. The core objective of creating a consumer-friendly marketing mix product strategy for Nestle is to provide good-quality food products and liquid beverages.

Nestle focuses on product innovation and has expanded its product portfolio with innumerable Nestle products. The company has considered behavioral, geographical, demographic, and psychographic differences to create a Nestle marketing strategy that is consumer-relevant and important.

Products in the Marketing Mix of Nestle

Nestle’s marketing strategy focuses on its product portfolio, which includes a wide range of food and beverage items. Some of the most popular categories of Nestle’s products are-

Baby Foods

Nestle’s marketing strategy includes supplying baby food for babies of all ages through popular brands like Gerber, Nestle Cerelac, and Nestle NaturNes. These brands offer a wide range of easily-digested nutritious instant cereals that are not a substitute for breast milk but can sufficiently meet the nutritional requirements of a growing baby.

• NESTLE CERELAC
• GERBER APPLE STRAWBERRY BANANA

Bottled Waters

Nestle bottled water has spread its product presence to more than 100 countries. Nestle Waters bottles natural mineral waters through brands like Perrier, Acqua Panna, Vittel, Buxton, Erikli, and S. Pellegrino to provide high-quality and sustainable hydration.

• NESTLE’S PURE LIFE
• PERRIER
• ACQUA PANNA NATURAL MINERAL WATER
• BUXTON MINERAL WATER

Dairy Products

Nestle dairy products boast excellent quality milk products that are popular worldwide. The Health and wellness segment relies on milk and dairy products, especially Nido. Nestle ice creams made from milk in different flavors are also top-rated worldwide.

• NESTLE SLIM
• NESTLE MILK

Chilled and Frozen Food

Nestle serves chilled and frozen foods with the help of brands like Thomy, Garden Gourmet, and Digiorno.

• GARDEN GOURMET MINI FILLETS
• THOMY SALAD DRESSINGS

Liquid and Powdered Beverages

Nestle deals in the beverage category with the help of the most popular and prominent coffee brand, Nescafe. Nestle tea, chocolate, and malt beverages are equally popular. It also offers nutritional drinks through brands like Boost that have the right amount of minerals, vitamins, and protein to keep individuals healthy, fit, and refined.

• NESCAFE GOLD BLEND
• BOOST MALT BEVERAGE
• NESTEA ICED TEA

Chocolates

Nestle is active in the chocolate segment through KitKat, Aero, Milky Bar, and Eclairs. The brand has introduced Alpino chocolate as part of its gifting segment marketing strategy to target rival brands, especially Cadbury’s products.

• AERO CHOCOLATE BAR
• CAILLER CHOCOLATE
• KITKAT PEANUT BUTTER

Ready-to-Cook Foods

Several Nestle products are in the ready-to-cook category, like instant noodles from Maggi.

• MAGGI SOUPS
• MAGGI SEASONINGS

Breakfast Cereal

Nestle offers breakfast cereals with the help of several brands like Cheerios and Fitness as a balanced diet for every age and healthy lifestyle.

• MULTIGRAIN CHEERIOS FIBRE 5 WHOLE GRAINS
• FITNESS TOASTIES
• NESQUIK BREAKFAST CEREAL

Prepared Dishes and Cooking Aids

The company has also introduced the concept of prepared dishes in local flavors to benefit consumers too busy to prepare food from scratch. Popular Nestle brands like Buitoni, Stouffer’s, and Maggi cater to regional tastes with the help of its renowned products.

• DIGIORNO CRISPY PAN PIZZA
• MAGGI 2-MINUTE NOODLES

Pet Care

Nestle’s products in the pet category include wholesome kibbles and dry dog food from brands like Bakers Complete and Beneful. Each box contains various varieties and flavors to satisfy your pet’s cravings. Nestle offers cat food in multiple formulas with the help of its brands, Cat Chow, Friskies, and Felix.

• BAKERS COMPLETE WITH TASTY BEEF AND COUNTRY VEGETABLES
• BENEFUL ORIGINAL
• PURINA CAT CHOW

Nestlé, one of the world’s largest food and beverage companies, offers diverse products.

The product mix of Nestle in 2023 is as follows (Source)

1. Dairy Products: This includes milk-based products, infant nutrition, and ice creams. Popular brands under this category are Nestlé Nido, Carnation, and Coffee-Mate.
2. Chocolates and Confectioneries: Nestlé is famous for its wide range of chocolates and sweets. Some well-known brands include KitKat, Nestlé Crunch, Aero, and Smarties.
3. Beverages: This category covers coffee, tea, and other drinks. Notable brands include Nescafé, Nespresso, Milo, and Nestea.
4. Prepared Dishes and Cooking Aids: This includes instant noodles, soups, frozen foods, and seasoning. Brands such as Maggi, Stouffer’s, and Buitoni are prominent in this segment.
5. Cereals: Nestlé cereals, often marketed under the partnership with General Mills (Cereal Partners Worldwide), include Cheerios, Nesquik Cereal, and Fitness.
6. Health Science: This division focuses on nutritional science products for chronic medical conditions, such as Boost, Nutren, and Peptamen.
7. Pet Care Products: Nestlé Purina PetCare produces pet food, treats, and litter. Some of their well-known brands are Purina, Friskies, and Fancy Feast.
8. Water: Nestlé’s water division includes several bottled water brands like Nestlé Pure Life, Perrier, and San Pellegrino.
9. Performance and Healthcare Nutrition: This includes specialized nutrition products such as PowerBar and Musashi for athletes and people with specific dietary needs.
10. Baby Food: Apart from infant formula, this includes cereals and jarred baby foods. Gerber and Cerelac are among their notable brands.

Nestlé’s extensive product mix covers various food and beverage products catering to consumer needs and preferences.

Nestle Pricing Strategy

The pricing strategy in Nestle’s marketing depends on several key factors like geographical boundaries, product quality, demand, and tutor prices. An in-depth understanding of consumer behavior led to a concentrated marketing strategy with specific pricing policies.

Affordable Pricing Strategy

Nestle has adopted an affordable price policy for most of its brands, especially in places where the target customers are the mass audience. Primary examples are Maggi instant noodles and Maggi pasta.

Stock Keeping Units

The company has adopted a varying pricing strategy for each SKU to reach a large consumer base. Nestle offers packs of different sizes. For instance, Nestle Everyday is available in 100gm and 400gm pouches to meet the demands of individual customers.

Bundle Pricing Strategy

Nestle has levied a bundle price policy for several products with various package options to increase its sales. Maggi Instant Noodles with packaging options 16 are discounted for buyers interested in bulk buying.

Penetration Pricing Strategy

Both Nescafe and Maggi are star brands that are highly popular in the consumer market. In the early days, the company adopted penetration pricing for products like the Milky Bar in the chocolate segment and Maggi noodles to reach new areas.

Competitive Pricing Policy

The various price points in the Nestle marketing strategy for products, primarily related to the Healthcare Nutrition and chocolate segment, are based on the price range of rival brands. The company uses a competitive pricing policy to maintain its customer base. The company has launched Milky Bar with competitive pricing to tackle Cadbury’s products.

Premium Pricing Strategy

To maintain its exclusivity, Nestle has kept a premium pricing policy for high-demand products like Nestle Milk Maid and Nescafe Gold Decaf.

Nestlé’s pricing strategy is sophisticated and multifaceted, reflecting its status as a global food and beverage industry leader. Here are key aspects of their approach:

1. Market Penetration Pricing: In emerging markets or with new product launches, Nestlé often adopts a market penetration pricing strategy. They set lower initial prices to attract customers and gain market share, gradually increasing prices once a solid customer base is established.
2. Competitive Pricing: Nestlé closely monitors competitor pricing, especially in saturated markets. Pricing their products competitively ensures they remain an attractive choice for consumers without compromising quality.
3. Value-Based Pricing: For premium products, particularly in their health and wellness range, Nestlé employs value-based pricing. Prices are set based on the perceived value to the customer, reflecting the product’s quality, benefits, and uniqueness.
4. Cost-Plus Pricing: In stable markets with predictable costs, Nestlé uses cost-plus pricing, where a standard markup is applied to the cost of production. This method ensures consistent profitability while maintaining fair pricing for consumers.
5. Dynamic and Regional Pricing: Recognizing the diversity of its global market, Nestlé employs dynamic and regional pricing strategies. Prices are adjusted according to local economic conditions, consumer purchasing power, and regional market demand.

Through this multifaceted approach, Nestlé effectively balances profitability with market competitiveness, catering to diverse consumers and market conditions.

Nestle Place Strategy

The top FMCG company, Nestle, has spread its presence to 191 countries with the help of 2000 local and global brands and 447 factories worldwide. The brand operates with the help of several segments like Zone Asia, Zone Americas, Zone EMENA, Oceania & Africa, Nestle Nutrition, Nestle Waters, and Other Businesses.

The place strategy in the marketing mix of Nestle involves breaking the standard distribution channel into the following segments

Manufacturing >> C&F Agents >> Distributors >> Retailers >> Consumer

The bulk products are sold through a robust supply chain that starts from the C&F agents to distributors and later retailers so that they can reach the consumers regularly and quickly. Its employees operate from different places to ensure all products meet food safety and quality requirements.

The existing place marketing strategy has helped in creating a solid selling network. Launching the Nescafe Plan, Nestle Cocoa Plan, and Shared Value Approach to business has helped Nestle create sustainable supply chains.

Besides the physical retail outlets like local stores, grocery shops, and supermarkets, Nestle’s products are also present online and can be bought through the company website and other shopping portals.

Nestlé’s place strategy is as follows:

1. Global Distribution Network: Nestlé operates a vast global distribution network, ensuring its products are available in over 186 countries and leveraging direct and indirect distribution channels.
2. Local Manufacturing: They establish manufacturing facilities in many of the countries they operate in, aiding in localizing production and reducing transportation costs.
3. Retail Partnerships: Nestlé has strong partnerships with various retailers, including supermarkets, convenience stores, and online platforms, to make their products easily accessible to consumers.
4. Supply Chain Optimization: They continuously optimize their supply chain, utilizing advanced logistics and technology to ensure efficient and timely delivery of products.
5. Adaptation to Local Markets: Nestlé adapts its distribution strategy to fit local market needs, which includes customizing product offerings and distribution methods to meet regional preferences and regulations.

Nestle Promotion Strategy

The largest food companies’ promotional planning and advertising strategies are essential as they help drive sales and generate revenues, which is the basis of every company.

Consumer promotion

Nestle’s marketing mix considers individual customers and bulk buyers. It has put much effort into consumer promotion through digital marketing, print commercials, television promotion, radio promotion, discounts, and its gifting segment. Its ads are viral amongst the masses.

Localization of Products

Nestle’s promotional planning includes adapting its products to local consumers’ tastes and creating marketing strategies highlighting local flavors. Take the example of Japan, which was a tea-drinking country. Nestle introduced Nescafe via an aggressive marketing strategy, and today, the country imports 50,000 tons of coffee yearly and has become the market leader in that country.

Content Marketing

Nestle offers informative food service video content and cooking tips on its brand’s YouTube channels as part of its marketing strategies. For example, the Meri Maggi page has uploaded 530 videos with 571,000+ subscribers. Nestle India has dedicated an entire website for child healthcare nutrition where new mothers can check it for expert advice.

Brand Building and Equity

In this competitive landscape, Nestle has managed to project its brands as the go-to brands for every occasion. For instance, if you have invited your friends, make a simple and tasty dish like Maggi pasta.

Nescafe and Maggi are two of its most robust perceived value products that have also helped move other products through different consumer promotion planning strategies. Most Nestle brands are readily available because of their robust on-ground presence and, thus, have retained brand equity.

Celebrity Promotions

The Nestle marketing strategy includes taking the help of celebrities like Rani Mukherjee, Madhuri Dixit, and Juhi Chawla to drive their message home and boost brand image.

Social Responsibility Programs

“MAGGI -Desh Ke Liye 2 Minute – Ek Choti Si Koshish” and 1000 “Nesternship” opportunities for young professionals are some of its best efforts to create a strong brand presence in the global market.

The advertising strategy of Nestle’s marketing mix also focuses on sustainable efforts like net zero emissions and recyclable packaging for a healthier world.

Nestlé’s promotion strategy is as follows:

1. Diverse Advertising: Nestlé utilizes traditional and digital media channels for advertising, tailoring messages to different demographics and regions for maximum impact.
2. Customer Engagement: They engage customers through social media, interactive campaigns, and loyalty programs to build a solid brand-community relationship.
3. Corporate Social Responsibility (CSR) and Sponsorships: Nestlé often integrates CSR initiatives and sponsorships into its promotion strategy, emphasizing its commitment to sustainability and community well-being.

Some Recent Video ads and Print ads of Nestle are:

Conclusion

The company needed to boost its perceived value in the target market for a significant push expected at the retail level. The brand’s success depended greatly on its marketing strategy, which would encourage consumers to switch brands amidst tough competition.

The Nestle marketing mix (4Ps), with the help of signature branding, has been successful in creating a solid presence in the consumer market as one of the best nutrition and wellness companies globally. The motto “Good Food, Good Life” is appropriate for the consumer brand as it believes in the power of sustainable, healthy nutrition so that its consumers can live a healthy life to the fullest.

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