Essay about Global Marketing

the same time, the war created tremendous new demand for dairy products, largely in the form of government contracts.

By war's end, the Company had 40 factories, and its world production had more than doubled since 1914. 1918-1938: The end of World War I brought with it a crisis for Nestle©. Rising prices for raw materials, the worldwide postwar economic slowdown, and declining exchange rates made the situation worst. In 1921, the Company recorded its first loss. Nestle©'s management brings Louis Dapples as an expert to deal with the situation;

The financial condition of the company was improved through rationalized operations and reduction of outstanding debt. In the 1930s, Nestle© expanded beyond its traditional product line by producing chocolates. They were approached by the Brazilian Coffee Institute in 1930 to reduce Brazil's excess coffee surplus, which led to the creation of Nescafe in 1938. However, profits dropped from $20 million in 1938 to $6 million in 1939 due to the impact of World War II. In order to overcome distribution problems, factories were established in developing countries, particularly in Latin America. By the end of the war, Nestle© had become a global coffee concern and had also expanded into other businesses. From 1944 to 1975, the company experienced significant growth and added new products through acquisitions. They merged with Aliment S.A. in 1947, purchased Findus frozen foods in 1960, added Lobby's fruit juices in 1971, and acquired Stouffer frozen foods. In 1974, Nestle© became a major shareholder in L'Oreal©al. The company's total sales doubled in the 15 years after World War II.From 1975 to 1981, the global economy faced challenges due to the rise in oil

prices, resulting in a slowdown of industrialized countries and an unstable political situation. In this difficult period, the prices of coffee beans and cocoa tripled in 1975 and 1977. To maintain balance, Nestle© expanded beyond the food industry by acquiring Alcoa Laboratories Inc., a producer of pharmaceutical and ophthalmic products. This move increased competition and decreased profit margins. During this time, Nestle© also made strategic acquisitions to diversify its non-profitable businesses. Additionally, Nestle© successfully resolved a controversy over its marketing of infant formula in the Third World. In 1984, Nestle© further expanded by acquiring the American food giant Carnation, solidifying its position as one of the largest companies in the food industry's history.

From 1996 to 2002, the company experienced positive developments with the opening of Central and Eastern Europe, China, and a global trend towards liberalizing direct foreign investment. Furthermore, in July 2000, Nestle© initiated a company-wide program called GLOBE (Global Business Excellence) aimed at streamlining business processes. Two more acquisitions occurred during this period - the merge of the U.S. ice cream business into Dryer's and the acquisition of Chef America, Inc.A leading U.S.-based hand-held frozen food product business, Nestle© strengthened its position as a world market leader in the super premium category through the acquisition of Move Pick Ice Cream, Jenny Craig, and Uncle Taboo's from 2003 to 2009. During the same period, Innovators Medical Nutrition, Gerber, and Whinnies joined the company. Additionally, Nestle© formed a strategic alliance with Belgian chocolates Pierre Marooning at the end of 2009.

From 2010 onwards, Nestle© sold Alcoa to Innovators and acquired Karat's frozen pizza business. The company also launched the Special.Tea machine system and completed a

share buyback program worth 25 billion US dollars under the CHEF brand.

Nestle© is a global brand with a range of products:
1. Baby foods: Cereals, Gerber, Gerber Graduates, Natures, Museum
2. Bottled water: Nestle© Pure Life, Peppier, Poland Spring, S. Pipelining
3. Cereals: Chopin, Cine Mints, Cookie Crisp, Satellites, Fitness, Uniqueness Cereal
4. Chocolate & confectionery: Rare, Butterfingers, Calicle, Crunch, Kit Kate, Orion, Smarmiest, Wonk
5. Coffee: Nesses©, Nesses© 3 in 1, Nesses© Cappuccino, Nesses© Classic,Nesses©Decaf, Nesses© Dolce Gusto,Nesses© Gold, Newspapers
6. Culinary, chilled and frozen food: Button, Heart, Hot Pockets, Lean Cuisine, Magi, Stouffer,Tommy
7. Dairy: Carnation, Coffee-Mate, La Laity©re, Indo
8. Drinks: Juicy Juice, Mill, Uniqueness, NestedFood service brands such as Chef, Chef-Mate, Magi, Mill, Minor's, Nesses©, Nested, Soar, Lean Cuisine, and Stouffer are offered in the market. Healthcare nutrition includes Boost, Untrue Junior, Pattern, and Resource. Petard options consist of Alp, Bakers Complete, Baneful, Cat Chow, Chef Michaels Canine Creations, Dog Chow, Fancy Feast, Felix, Friskier, Gourmet, Purina, Purina ONE, and Pro Plan. Sports nutrition options include Powerboat. Weight management is addressed by Jenny Craig. Nestle© has a presence in Bangladesh since the British rule and continued into the pre-independence days. The trading wing of Nestle© S.A., Nestle© World Trade Corporation, regularly dispatched its brands to Bangladesh through indentures and agents. Common products like NECESSARY, CEREALS, LACTOSE, and BLUE CROSS were introduced. Nestle© Bangladesh Limited began its commercial operations in 1994 with a total authorized capital of ITS .5 billion and total paid-up capital of TX 1.1 billion. The factory in Usurper produces instant noodles and cereals and repacks milks, soups, beverages, and infant nutrition products. Today Nestle© Bangladesh Ltd. holds

a strong position in the market.The Company constantly grows through innovative policies, focusing on core competencies and providing high-quality food to the people of Bangladesh. Nestle©'s operations in Bangladesh have been led by Mr. Latitudinarian, a top industrialist in the country and chairman of the company. His business house Transact continues to be involved in various industries, including beverage, pharmaceutical, electronics, newspaper, tea export, and fast food franchises. While Transact no longer holds any shares in Nestle©, Mr. Latitudinarian remains an honorary chairman. Nestle©'s vision in Bangladesh is to be recognized as the most successful food and drink company, generating sustainable growth and continuously improving results for shareholders, employees, and customers. In addition to this, Nestle© Professional is responsible for institutional sales. Currently, there are 80 distributors of Nestle© products in Bangladesh, with 76 retail distributors and 4 Nestle© Professionals distributors catering to out-of-home consumption. The country is divided into six regions.Dacha North Dacha South Chitchatting Bogart Chula Sylphs Figurer: Sales regions The demand and trust for Nestle© products in Bangladesh are growing. To support this growth, the company has developed its own functional areas. Regardless of the number of functions, their main goal is to achieve excellence.

Every function contributes to the corporate goal. General Management oversees the overall operations and makes key decisions. Human Resources focuses on managing employees, organizational culture, and retention of top talent. Supply Chain ensures a stable supply of products based on customer demand. Marketing handles existing brands, market share, and product development.

Given that Nestle© is the world's largest Nutrition Company, the Nutrition products team specializes in products such as CEREALS and LACTOSE. Finance and control are responsible

for financial transactions and maintaining compliance with company procedures.Finally, the Sales and Nestle© Professionals are responsible for generating revenue for the company. Sales focuses on retail distributors, while Nestle© Professionals handle institutional sales.

Key success factors include having strong brands and relationships with consumers, conducting research and development, fostering innovation and renovation, ensuring product availability, and building relations with the medical and scientific community. Nestle© Bangladesh Ltd. takes these factors into account in its marketing strategy.

The report analyzes various aspects of marketing strategy using different theories and applications. It examines external factors such as social integration, where Nestle© strives to align itself with the cultural and social values of different countries. In Bangladesh, Nestle© has launched products that integrate social and cultural factors to cater to the preferences of local consumers.

Ethical considerations also play a role in Nestle©'s operations. While the company may face ethical dilemmas regarding the centralization of its products, it prioritizes making them widely available to all.

Internally, Nestle© adopts a marketing structure that is people, product, and brand-oriented rather than system-oriented. It focuses on long-term successful business development and prioritizes customer lifetime value.Nestle© is focused on improving its quality, price, and distribution while also satisfying consumer wants and needs. The company aims to generate a consistent profit and gain consumer confidence through innovation. Nestle© values customer satisfaction and flexibility within its decentralized marketing strategy. The company continuously improves through market segmentation, positioning, and target marketing. The key elements for Nestle©'s marketing strategy are the consumer, quality, and competition. Additionally, the company considers factors such as where, how, and when to compete. Nestle©'s current marketing strategy is based on a four-pillar strategy that

includes market segmentation targeting the consumer market.Nestle© food products can be considered consumer products. Factors like demographic, consumption pattern, social economic factors, brand loyalty patterns, perceptual factors, and cultural factors play a significant role in consumer segmentation for Nestle©. The Marketing Officer explains that due to the high cost of the product range in Bangladesh, the main focus is on the socio-economic class. Nestle©'s target market consists of consumers who recognize the quality and can afford their products. The strategy for selecting the target market involves considering the income level and realizing the quality. Nestle©'s positioning strategy involves three steps: identifying, choosing, and selecting the right competitive advantage. The company then effectively communicates and delivers this chosen position to the market, emphasizing that their products and their benefits are unique."Fossil Lam, the marketing officer, refers to it as "Benefit Positioning". Regarding new upcoming products, Nestle© is interested in renovating and innovating Magi noodles and soups. This could involve introducing new flavors or improving the quality and quantity of the products. The company's advertising and promotional activities focus on its corporate image, emphasizing Nestle©'s commitment to quality. Promoting the brand's reputation for product quality is more important than price in Bangladesh. Nestle© primarily focuses on two advertising objectives: Persuasive advertising and maintaining its reputation. Since Nestle© is already a well-known and respected food company in Bangladesh, it doesn't prioritize publicity and promotion drastically. Some points to consider about Nestle© Bangladesh Ltd.'s advertising efforts are as follows: Infant milk cannot be advertised. Mass advertising is reserved for new products. Advertising and promotion are done on a product-specific basis. 15% of the marketing communication budget is allocated to

publicity. Nestle© also engages in product sampling and test marketing. In 2003, Nestle© conducted test sampling for Nesses©. Nestle© Bangladesh Ltd. uses specialized agencies for their promotional needs. These agencies include: Nesses© -United, Mill - (25%) United Magi Proposition, and Polo - Proposition."Nestle© is associated with various types of media, including newspapers, TV, billboards, and magazines. According to the table provided, television advertisements have a better cost per contact compared to newspapers and other media for Nestle©. In particular, Nestle© believes that television provides better clutter-free exposure and reaches a larger audience, making it the primary platform for advertising. The company places emphasis on building a corporate image and maintaining high quality. Nestle© also considers using billboards, posters, and flyers to promote upcoming brands and products. These decisions are made by the marketing department in an effort to integrate promotional activities and adopt an integrated marketing approach. Nestle© supports fair and ethical competition and expects other companies to do the same. While competition in Bangladesh is limited, Nestle© faces greater challenges in countries like India and China, particularly in the food market.In terms of quality and product, quality is the main challenge and threat for Square. Para is the strong contender in terms of turnover. When it comes to beverages and drinks, Nestle© considers Alsatian and Cola to be strong players. However, even though 70-80% of consumers prefer Magi noodles, Cola is quickly catching up. Quality is the foremost tool for Nestle© in terms of competitive advantage. Despite facing criticism regarding price and number of products sold compared to local competitors, Nestle© remains committed to never compromising on quality.

Nestle© is committed to offering consumers

high-quality food products that are safe, tasty, and affordable. The Nestle© Seal of Guarantee symbolizes this commitment. Regular contact with consumers is also important to Nestle©, both in how they present their products and how they address their questions and concerns. When Henry Nestle© first sold his boxes of infant formula, he included his address on the packages so people would know where to go if they had questions. The Consumer Relationship Panel with the words "Talk to Nestle©" represents the same commitment today. Therefore, Nestle© has a worldwide Consumer Services network dedicated to caring for their consumers.Nestle© has a team of experts in nutrition, food science, food safety, and culinary expertise who provide prompt, efficient, and high-quality service to meet consumer expectations. Their expertise enables them to communicate and listen to consumers effectively. By listening and understanding consumer needs, Nestle© uses these insights to drive product development and ensure consumer satisfaction. Nestle© values its consumers and their needs, as its success relies on meeting their expectations throughout their lives. While Nestle© acknowledges its role in responsible communication with non-users, consumer communication is not a significant focus in Bangladesh. However, Nestle© has designated a P.O.-Box for consumers to send complaints, mails, or inquiries directly to reach the company, which can be considered as a form of post-purchase service. Currently, Nestle© lacks an organized internal database of consumers in Bangladesh, implying limited initiatives in consumer communication.However, Nestle© Bangladesh maintains an organized database of 1000 consumers who are loyal and final consumers of Nestle©, particularly for specific brands like Mill. Nestle© communicates with these consumers through newsletters, leaflets, free samples, and feedback questionnaires whenever there are new

product launches. This form of consumer communication is considered Direct Marketing and is the only method that Nestle© uses in Bangladesh. For other products, Nestle© does not engage in consumer communication. The company values its consumers as its most valuable asset and believes that open communication with them is essential for customer satisfaction and meeting their needs and wants. Nestle© also acknowledges that consumers have a genuine and loyal interest in the company's behavior, beliefs, and actions. Without its consumers, the company would not exist. Nestle© strives to satisfy consumers in various countries and cultures worldwide. However, customer satisfaction levels may vary depending on different aspects such as product delivery. The Marketing officer at Nestle© Bangladesh Ltd explains that different consumers have different perceptions of Nestle© products - for some, it is a source of refreshment, while for others, it provides relief. Nevertheless, at the end of the day, Nestle© ensures that its consumers are 100% satisfied with the high quality of its products.Nestle© is committed to environmentally sound business practices and sustainable development worldwide. They integrate environmental principles, programs, and practices into every aspect of their business. They strive to continuously improve their environmental performance through their Environmental Management System (NEWS). Nestle© complies with all applicable environmental legislation and has their own internal rules in place when there are none. They also provide information, communication, and training to ensure everyone understands their environmental commitment. Throughout the supply chain, from farm to table, Nestle© implements measures to preserve the environment and maximize global environmental benefits. They prioritize using locally available raw materials whenever possible and either obtain them directly from producers or through trade channels.Nestle©

adheres to legal and internal quality standards that include limitations on environmental contaminants. The company prioritizes raw materials produced through environmentally-friendly farming methods such as integrated crop management. Nestle© encourages farmers to utilize sustainable farming techniques and provides support in crop production and dairy farming. This support includes suggestions for conserving natural resources and reducing environmental impact.
In terms of manufacturing, Nestle© aims for optimal performance and considers the environment. The Group respects natural resources by emphasizing efficient use of raw materials, water, and energy. They strive to minimize the use of environmentally harmful substances, improve production facility efficiency, and reduce waste generation and emissions. Recycling waste is a priority, while non-recyclable waste is disposed of in an environmentally responsible manner.Regular environmental assessments are conducted by Nestle© to evaluate factory performance, review compliance with legislation and company standards, investigate incidents that can affect the environment, and set improvement objectives. To ensure the widespread use of best practices, Nestle© exchanges information on environmental protection technology and practices. The company also encourages contract manufacturers to adopt environmentally sound manufacturing practices. Packaging plays a crucial role in safeguarding food products, ensuring safety throughout the production, storage, distribution, and consumption process. It also provides tamper-evidence features and communicates essential information. Nestle© is dedicated to reducing the environmental impact of packaging while maintaining the safety, quality, and consumer acceptance of its products. The company aims to develop safe and wholesome packaged foods using efficient and appropriate materials that meet consumer requirements and expectations.