Marketing Mix Of Nestle and the Twenty-First Century

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

• The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
• Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

• The marketing mix helps a company choose and decide on a suitable marketing strategy
• The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
• The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for Nestle and the Twenty-First Century

Nestle and the Twenty-First Century makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix Nestle and the Twenty-First Century is presented below:

2.1. Product

Product is one of the most important components of the Nestle and the Twenty-First Century Marketing mix. The distinctive characteristics of the product by Nestle and the Twenty-First Century are:

2.1.1. Quality

• Nestle and the Twenty-First Century maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• Nestle and the Twenty-First Century procures raw materials from reliable and trusted suppliers only
• These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
• High quality promise and delivery also provides Nestle and the Twenty-First Century with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by Nestle and the Twenty-First Century are relatively easy to use
• All products come with a user manual, which is easy to understand and which provides simple instructions for product use
• The consumers can also call the 24/7 helpline to understand details about product usage
• Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

• Nestle and the Twenty-First Century has a broad portfolio of products
• The broad portfolio helps Nestle and the Twenty-First Century in reaching different target groups in the market
• Also, the broad portfolio allows financial strength to Nestle and the Twenty-First Century
• The broader product portfolio also adds more value for Nestle and the Twenty-First Century

2.1.4. Benefits of product consumption

• Nestle and the Twenty-First Century offers functional benefits to consumers of the product use
• These functional benefits are promised and delivered – however, they are also delivered by other similar products
• The distinguishing aspect of Nestle and the Twenty-First Century is its delivery of emotional benefits to the consumer
• Products manufactured and sold by Nestle and the Twenty-First Century promise consumers an ego boost, confidence, and security
• Nestle and the Twenty-First Century also promises fulfilment of psychological needs on product consumption
• These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

• The products by Nestle and the Twenty-First Century are available in different sizes
• Nestle and the Twenty-First Century has made use of different SKUs to increase market penetration
• Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
• Through the production of different SKUs, Nestle and the Twenty-First Century has also increased the trial rate
• Different SKUs have also helped Nestle and the Twenty-First Century improve its product accessibility

2.2. Price

Nestle and the Twenty-First Century marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix Nestle and the Twenty-First Century uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

• By using premium pricing for some of its product ranges, Nestle and the Twenty-First Century encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of Nestle and the Twenty-First Century products amongst consumers
• With premium prices, Nestle and the Twenty-First Century has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
• Premium prices add a touch of privilege and high value in Nestle and the Twenty-First Century products
• Using elements of premium prices in other product ranges has also allowed Nestle and the Twenty-First Century to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

• Since Nestle and the Twenty-First Century has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
• With the use of psychological pricing, Nestle and the Twenty-First Century also successfully adds more value to its products from the point of view of customers
• Nestle and the Twenty-First Century also gains higher sales with psychological pricing
• Consumer purchase a higher amount of Nestle and the Twenty-First Century products because of its use of psychological pricing
• Nestle and the Twenty-First Century is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

• Nestle and the Twenty-First Century is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows Nestle and the Twenty-First Century to cover shipping and customs expenses
• Geographical pricing also allows Nestle and the Twenty-First Century to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

• For some product ranges, Nestle and the Twenty-First Century is also known to use bundle pricing strategy popularly
• Nestle and the Twenty-First Century also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• Nestle and the Twenty-First Century experiences higher return on the cost of gaining a new customer
• With bundle pricing, Nestle and the Twenty-First Century is also able to control costs and prices by lowering marketing and distribution expenses
• The use of bundle pricing also adds value to the umbrella brand name of Nestle and the Twenty-First Century.

2.3. Placement

Nestle and the Twenty-First Century places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

• The company maintains stores operated by the management of Nestle and the Twenty-First Century in all markets
• Company-operated stores give Nestle and the Twenty-First Century higher control over operations as well as store layout and design
• Nestle and the Twenty-First Century also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
• The company operated stores also give leverage to Nestle and the Twenty-First Century in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• Nestle and the Twenty-First Century licensed stores also allow consumers to enjoy the various product offerings by the company
• Licensed stores also decrease the risk of financial and physical investment for Nestle and the Twenty-First Century in unstable markets
• Licensed stores have also given Nestle and the Twenty-First Century high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, Nestle and the Twenty-First Century has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by Nestle and the Twenty-First Century by aligning it with local cultural values
• Licensed stores also help Nestle and the Twenty-First Century in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• Nestle and the Twenty-First Century has developed a successfully operational website for online order placement and order tracking
• Nestle and the Twenty-First Century also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
• The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
• Online retailing, and using the internet to make sales has boosted the sales for Nestle and the Twenty-First Century and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

• Nestle and the Twenty-First Century also places its products in supermarkets and hypermarkets across the country
• A large number of Nestle and the Twenty-First Century target groups shop from supermarkets and hypermarkets
• Placement in supermarkets and hypermarkets also improve cost efficiency for Nestle and the Twenty-First Century

2.3.5. Partner agents

• In offshore locations, Nestle and the Twenty-First Century also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• Nestle and the Twenty-First Century contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for Nestle and the Twenty-First Century also places high importance on the promotional tactics and strategies used. The promotional strategies allow the Nestle and the Twenty-First Century to interact with the consumers and influence them directly. Nestle and the Twenty-First Century uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• Nestle and the Twenty-First Century has corporate profiles on all social media websites and portals
• Nestle and the Twenty-First Century uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows Nestle and the Twenty-First Century to understand the customers, their needs and demands
• Nestle and the Twenty-First Century uses this feedback and incorporates it in its broader marketing and organizational strategy
• Nestle and the Twenty-First Century also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

• Nestle and the Twenty-First Century has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
• Each purchase is entered into the loyalty card by Nestle and the Twenty-First Century and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by Nestle and the Twenty-First Century on high valued purchases
• Frequent usage and purchase of products by Nestle and the Twenty-First Century also has rewards against the loyalty card

2.4.3. Community Influencers

• Nestle and the Twenty-First Century makes use of community influencers as its on-ground promotional efforts
• Nestle and the Twenty-First Century identifies strong and confident individuals to be brand ambassadors in their communities
• Nestle and the Twenty-First Century provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

• The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, Nestle and the Twenty-First Century also makes use of out of house hoardings
• Hoardings increase visibility for Nestle and the Twenty-First Century and also work towards building stronger brand recall
• Nestle and the Twenty-First Century also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by Nestle and the Twenty-First Century have progressed to include a slice of life elements and characteristics
• TV advertisements by Nestle and the Twenty-First Century also highlight the functional benefits of the product

2.5. People

The marketing mix of Nestle and the Twenty-First Century also places an essential focus on people development and people building. This is because Nestle and the Twenty-First Century realizes the importance of employees in building strong customer relationships. Nestle and the Twenty-First Century develops its employee and people by focusing on the following aspects:

2.5.1. Training

• Nestle and the Twenty-First Century makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at Nestle and the Twenty-First Century are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at Nestle and the Twenty-First Century also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by Nestle and the Twenty-First Century take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• Nestle and the Twenty-First Century, therefore, tries to develop the employee as an organizational member, as well as an individual
• All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

• Nestle and the Twenty-First Century works on strengthening the organizational commitment in its employees
• Nestle and the Twenty-First Century builds employee loyalty so that people can reflect their optimal best at work
• Nestle and the Twenty-First Century also understands that satisfied employees will lead to happy and satisfied customers
• Nestle and the Twenty-First Century regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• Nestle and the Twenty-First Century also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

• Nestle and the Twenty-First Century employees are the face of the organization
• Nestle and the Twenty-First Century are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that Nestle and the Twenty-First Century distributes
• Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

• Nestle and the Twenty-First Century remains one of the leading players in the industry also because of its focus on succession planning
• Nestle and the Twenty-First Century conducts succession planning for all managerial levels
• Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at Nestle and the Twenty-First Century
• Strategic succession planning has allowed Nestle and the Twenty-First Century to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

Nestle and the Twenty-First Century has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at Nestle and the Twenty-First Century are clearly defined and communicated to the employees
• Nestle and the Twenty-First Century makes sure that employees are well trained, and knowledgeable of all processes relates to operations
• All stages of operational processes focus on maintaining a high quality level and standard of the products
• Systematic process re in place for all operation – from procurement to the final sale of the products
• All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
• The use of online portals for operational processes also builds a strong backup for managerial purposes at Nestle and the Twenty-First Century

2.6.2. People Management

• Nestle and the Twenty-First Century has also defined clear processes for people management through streamlining its human resource management department
• Nestle and the Twenty-First Century has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
• All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
• Progressive people management systems and processes have allowed Nestle and the Twenty-First Century to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• Nestle and the Twenty-First Century also has defined policies and processes for managing and maintaining quality
• All products undergo triple quality checks to ensure that customers receive the best product
• In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
• The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

• Nestle and the Twenty-First Century manages store management through stringent and closely monitored policies and processes
• These processes relate to not only the floor and space design but also to the performance of the employees at the store
• The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
• The company also has a systematic process for customers who interact with the products and feel them before making the purchase
• The final sale at the store is also clearly defined – for the employees and the customers both
• Processes and policies are important for Nestle and the Twenty-First Century for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for Nestle and the Twenty-First Century as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for Nestle and the Twenty-First Century include:

2.7.1. Store atmosphere

• The store design and management for Nestle and the Twenty-First Century is exciting and creative
• The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by Nestle and the Twenty-First Century at ease
• The store design is also important for Nestle and the Twenty-First Century because it controls the level and nature of experience and interaction that the customers have with the product and the brand
• With company-operated stores, it is easier for Nestle and the Twenty-First Century to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

• Nestle and the Twenty-First Century has unique packaging, which is different from other players in the industry
• Nestle and the Twenty-First Century also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
• The logo for the company is simple, and recognizable by the consumers easily
• The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by Nestle and the Twenty-First Century
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by Nestle and the Twenty-First Century

2.7.3. Website design

• The website design is simple and easy to use
• Nestle and the Twenty-First Century has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of Nestle and the Twenty-First Century also has the brand logo, and is packaged similarly to the products offered by the company
• The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings