Nestle Case Study

Khin Lae Lae Win

Marketing Management

Assignment 3

9th November, 2018.

Q.1.What have been the key success factors for Nestle?

        As it described in the article, I believe the main factors of its success might be its customer knowledge along with its product innovation, brand globalization and its strong marketing-advertising strategy. Deep insight of customer relationship with the products, they could innovate more new products and later it follow by strong advertisements and great marketing strategies, make Nestle to be a leading marketer of consumer packaged foods and beverages.

        One of its key factors is having deep insight of customer knowledge, Nestle spends a lot of time and money over that and based on its result, it could provide efficient and highest quality services to the customers in the market. Knowing what customers want and having stable background to follow up these ideas to make it happen and to reach the products to the right markets are all the factors, that could make a company to reach its success.

        Nothing can be happened if you just focus on doing survey about what the customers want. It should need some backgrounds including cost and new techniques to make that happen. The research based on the consumer knowledge and the results of its details, Nestle could make the products with superior quality.

        The next success factor of Nestle products is its brand extension strategy, which makes the brand successfully achieving localization in increasingly globalized food industry. Its trademarks, global branding strategy, making their new products to be unified under the Nestle brand, so that it can give the new brand more instant recognition and credibility with the lower advertising outlay. And the way when they use to expand its market in another region, Nestle acquires with the famous brand from the local markets to make its brand to be acknowledge by the local consumers, is also one of the success factors.

        Marketing and advertising styles of its might be the last key factors of Nestlé’s success. Nestlé’s heavy advertisement and strong impact of marketing knowledge make the brand to be a lead brand in the market. Its effective sale promotion, strong dealer relations and lastly its online marketing system all help to make a brand to be a well success brand in the market.

Q.2.Where is Nestlé vulnerable? What should it watch out for?

        Even though brand extension or brand globalization strategies make the brand to be worldwide and expand its market all over the world, I would like to say it can also be the point of its vulnerable exist.

        Acquiring with the local company or its joint-venture strategies to make the brand more famous and development, it would help in some ways but it can also give side effects, negative outcomes in another ways. While making more new products by acquiring with these local factories and products, some are under its control but some are not. These factors make the Nestle to get higher risks than the rest. Even though many advantages can be obtained from this types of numerous acquisition, there would have higher risks in another aspects such as management or control factors.

        The wider it becomes, the more responsibilities and precise management it needs to control and arrange everything to run in its right ways. More and more man-power are required along with highest technologies than before. And as for customer preferences based on these different diversification, regions, types, gender, religion, deeper and stronger insights of consumer knowledge than before might be needed as well.

        The risks of being failure or expanding new markets as a brand new product, when it makes brand globalization with the strong local company, can reduce these kind of risks to be happened, but in another way, it could be the main reason that make the company to be failure. The more a company acquires with another, the more chances of risks that make it to be failure as well.