Nestle the Era of Nestle Term Paper

  • Length: 11 pages
  • Subject: Business
  • Type: Term Paper
  • Paper: #70799125

Excerpt from Term Paper :

5 billion category. The sales enhanced to U.S. $69.5 billion in 2003. The energy bar market is a new venture of Nestle. The purchase of Power Bar Inc., the innovator of the energy bar, places very nicely to rule supreme in the field. Nestle joined with Pillsbury's Haagen-Dazs associate to produce a new company to mix Nestle's 'frozen novelties' with Haagen-Dazs' U.S. frozen dessert business. (Chocolate, coffee, and pet care?)

The policy of the Nestle in not to concentrate on its sales in Switzerland alone, supplemented by a few satellite subsidiaries abroad. Nestle struggles to be a local in each and every nation of its operation. There is a clear demarcation between the strategy and tactics. It accords priority to the long-range view. The secular thinking resolves most of the problems and disputes among the groups. This is equally applicable to the employment conditions and the relations with employees as well as to the disputes and contradictory goals of the trade and the industry. "Their ability to concentrate on long-term strategies is feasible only when the company succeeds in the competition for short-term survival." (Nestle Insight: Business Principles) for this only, Nestle struggles to maintain a satisfactory level of profits every year. (Nestle Insight: Business Principles)

The manufacturing system at Nestle safeguards sustains multifarious sources, plants, and planning parameters for the same item generated at various locations. The structure entails production liabilities based on such factors as fixed percentages, capacity limitations and mandatory practices. The production is resorted to several plants when the multivalent manufacturing is considered essential for a certain component, assembly or product. The manufacturing system preserves to generate a complete picture of manufacturing operations. This involves monitoring products and elements from raw material through the finished-goods stage. (Chapter 6: International Strategy Implementation)

Taking into account the size of the company, the packaging initiative of Nestle continues at a remarkable pace. (Nestle's initiative advances new packaging technologies: packaging executives share their most significant innovations from the past year. Food and Drug Packaging) the success of Nestle has implied searching out of the correct balance between the localization and globalization. The packaging has participated in a primary role in this effective balancing activity. Consequently, Nestle is Food & Drug Packaging 2004 Food/Beverage Packager of the Year. The balancing act of Nestle involves geography along with huge product portfolio that incorporates food and beverages of all the details. (Nestle's packaging wraps up the world: a truly international food company combines local and global strategies in packaging its huge array of products) the divisions of Nestle have not been split up explicitly along with the groups. All their food products are put up for sale combined. The ice cream is only considered to be a different business. They never instituted specific sales department for the rest of their products. Nestle assesses the prospective of any market by comparison, to illustrate, the per capita mineral water consumption in one country with that other countries. Goldenberg considers that if they are lower than on other markets, there exists a potential for growth because irrespective of their variations in taste preferences, the consumers utilize similar products. In this method they are creating inroads into most of the growing markets. This is to be watched as to the ways in thrives in the selected countries irrespective of its extensive access. (Selling Russia)

Nestle is operating in Russian market over a century designing its own strategy. They perceive for a flexible structure since the market is just taking shape. Nestle feels that over a decade will still to go before the Russian market reaches saturation. The development strategy in Russia replicates the entire history of Russian consumer preferences over the last decade. The initiated importing food products directly but quickly shifted to purchase of the local companies so as to establish the production process. The Samara-based chocolate factory at Rossiya was seen to be their first acquisition. The managers of Nestle considered Rossiya to be a strong brand. Brands for the local market were initiated as Nestle bought factories. Presently, Nestle has initiated its second phase of investment into the Russian market with the development of more specialized products like mineral water and pet food in terms of profits. (Selling Russia)

Taking into consideration the profitability aspects their local brand Rossiya has emerged to be second only next to Kit-Kat. As per the anticipations of Nestle, the Russia can anticipate a burst of coffee and bottled mineral water sales, as the consumption of such goods lags significantly behind that of other countries. There will also be a progress, if not so quick, in other fields, remarkable chocolate. It is not accidentally that all the adversaries of the Swiss-based company have established their locations on the Russian market also. TV commercials are the most successful advertising for their products in Russian market also. TV commercials are considered to be most efficient advertising agency for their products in Russia presently. Sometimes they take assistance of a global advertising campaign and settle in to local conditions. Nescafe advertisements are quite similar to those in other nations; however, 95% of their advertisements in Russia are localized. (Selling Russia)

Next Nestle desired to enter a country in the world where people had money but do not habituated to drink coffee- Japan. Taking tea in Japan is considered holy. Therefore, breaking so intense culture could not be found to be so easy. But by infusing only one thought in the minds of 800 million people, Nestle could succeed in effectively selling tons of coffee. It is worthwhile to know the thought. Nestle resorted to an advertisement on primetime TV demonstrating beautiful people doing business in wonderful offices and using expensive cars globally. The common to all of them are that they were drinking Nestle coffee. Presently, the Japanese could understand that a cup of coffee is not making them gorgeous neither that entails them success. However, the image and the thought that it infused were so strengthened that it was too difficult to resist. This was the strategy that enabled Nestle to enter Japanese market. (the Rhythm of Life) Nestle could visualize the China as a significant area of expansion and growth and assured serving of Chinese consumers with better products both in quantity and quality. They instituted their own distribution channel through the local wholesalers those are backed by the Nestle staff nation wide. Nestle extended training and guidance to the wholesalers to ensure their activities to cater to the service standards. Their prevailing ventures are perceived to enhance the output along with the types of goods they produce. Some new products are being devised only for China. (Sweet success)

The principles of Nestle associated with the customers relates to the 'customer driven quality', innovation, integrity, involvement with people performance -cycle of plan, do choose and act, and management by facts and data. (Best Management Practices in Sri Lanka: Manufacturing Sector) in case of marketing, Nestle fees that when new customers are felt essential then it is right to time to announce a promotion. Placing the consumers at the centre of its online strategy Nestle interprets into very best platforms. (Selling Russia) They attempted to tie the consumers into intimate and interactive relationships making easier the customer relationship marketing and accelerating demand. They combine all their dealing points both online and off. They have also planned the websites of their consumers more by consumer interest rather than by brand. It does not imply that "they are not having anymore brand sites but at present they have a series of these 'very best' platforms: very best meals, very best kids, etc." (Nestle's Nick Risso) Their strategies primarily concentrate on the customers. Presently they have five platforms and that persistently move up or down relying on the needs of their consumers. They still have some brand websites that is not suitably fitting into the platforms, and there exist the strategies to entail more value added content than to create relationships. (Nestle's Nick Risso)

Their online marketing is not isolated from their conventional marketing or their direct mail pieces or their coupons. They recommend that if it is desired to keep the sales up, it is relevant to tell people to collect and mail in five stickers. It is very simple marketing but still efficient on any market. (Selling Russia) it is a totally incorporated marketing approach. It is not interactive on one hand and conventional on the other. It involves the marketing period. It is worth considering about the probability of non-pet owners purchasing pet food. This is considered to be zero and they anticipate that trend to persist. When a television commercial is put on their favorite TV show they usually spend the same amount on every consumer irrespective of having a pet or not. However, when the question of sending messages to pet the owners expected to purchase pet food arises, they opine not to dissuade from the mass marketing. However, the technology in this regard…

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