Our project was aimed at studying the marketing mix of products marketed by Nestlé there by understanding the concept of 4P's better. It details how Nestle has marketed its products. Nestlé has divided its product portfolio into four different segments, namely-
Milk Products and Nutrition,
Chocolates and Confectionery,
Maggi (noodles, soups and ketchups).
Separate marketing mixes have been developed for these four different segments. The pricing, promotion techniques used and place of marketing and of course the product of one segment are very different from products of another segment.
Apart from the secondary research from newspapers, journals and the inter-net, we have interacted with some officials concerned with these things, present at Nestlé Bangladesh. All this has helped us in our extensive study of the marketing mix of various Nestlé products.
1. Company profile:
Nestlé is the world's largest food company involved in nearly every field of nutrition, with a turnover of 88 billion Swiss Francs. its headquarters is in Vevey, Switzerland.
It's sales in 2006 was CHF 98.5 billion. It's organic growth in 2006 was 6.2% whereas real internal growth was 4.7%. Until half yearly closing it's organic growth in 2007 was 7.2% whereas real internal growth was 5.3%. It became world's largest food company in 2006 followed by PepsiCo, Kraft Foods, Unilever, Coca-cola and others.
Sales 98'458 91'115
EBIT 13'302 11'876
Net Profit 9'197 8'081
Organic Growth 6.2% 6.2%
RealInternal Growth 4.7% 4.2%
Jan.-June 2007 Jan.-June 2006
Sales 51'114 47'158
EBIT 6'919 6'060
Net Profit 4'916 4'151
Organic Growth 7.4%
RealInternal Growth 5.3%
Figure 1: Sales chart of leading multinationals of the world in 2006
It is largest not only in terms of its sales but also in terms of its product range and its geographical presence. Its product range includes infant formula, milk products, chocolate and confectionery, instant coffee, ice-cream, culinary products, frozen ready-made meals, mineral water etc. Nestlé is also major producer of pet food. Nestle is currently operating in 87 countries with 100 operating companies and 468 factories with total 265'000 employees worldwide. It has over 6000 brands and total 10000 products. Among them some are global brands, some are regional and some are local brands.
Most popular brands of Nestlé are Nescafe, Nido, Maggi, Polo, Smarties, Milo, Perrier, Friskies, Kit Kat, and Crunch. Some of their products have broken records: 3,000 cups of Nescafe are consumed every second, and Kit Kat merited an entry in the Guinness Book of World Records as the world's best selling chocolate bar, with 418 Kit Kat fingers eaten every second around the world.