CBEB1106 Principles of Marketing

Marketing Project Paper : Marketing in Multinational Company - Nestle

GROUP MEMBERS : SYAZWANI JANNAH BINTI MD ISMAIL TAN WEI EN RAUDZOTUL JANNAH BINTI AMIN CEA120100 CEA120104 CEA120091

Prepared for : Mr Syamsul Izwan Bin Saharani

Table of content
Introduction Background history of the company Organization structure Vision, mission and objectives Customer-Driven Marketing Strategy Marketing mix : product Price Promotion Place Conclusion References

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Introduction

In this research work the company chosen by us are Nestle Malaysia. I have tried to cover the brief history of the company, vision, mission and objectives of the company. This brief history and other sub heading under company background is compulsory to be understood and researched well as they form the basis for marketing plan of the company. At the end we have proceeded to the 4Ps of the marketing for Nestle.

Nestl was founded in 1867 by pharmacist Henri Nestl on the shores of Lake Geneva in Vevey, Switzerland. One hundred and thirty-four years later, our headquarters are still in Vevey, surrounded by the Swiss Alps in one of the worlds best-preserved environmental settings. As they have grown from humble beginnings into the worlds largest food company, they have attempted to take the fundamental cultural values of environmental preservation and cleanliness into every country where they operate. Company has 468 Nestl factories currently in operation. Companys facilities reflect the environmental values basic to Nestle Company.Top management follow the Companys environmental performance.Companys Environmental Officer reports directly to General Management to ensure there is on-going awareness regarding environmental affairs.

Nestl Environmental Advisory Group meets regularly to review current environmental issues and to anticipate potential concerns. This allows them to maximize control over their activities and contribute to sustainable development in the countries where they operate. The Nestl Environment Progress Report 2000 describes the results of continuous improvement in its environmental practices and being a leader in environmental performance

History
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Nestl is a historical multinational company with 140 plus history. Early in the 1860s Henri Nestl, a pharmacist, developed a food for babies who were unable to breastfeed. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. People quickly recognized the value of the new product, after Nestl's new formula saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in much of Europe. In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestl's production had more than doubled. From 1918 to 1938, after the war Government contracts dried up and consumers switched back to fresh milk. However, Nestl's management responded quickly, streamlining operations and reducing debt. The 1920s saw Nestl's first expansion into new products, with chocolate the Company's second most important activity. Nestl felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescaf, which was a staple drink of the US military. Nestl's production and sales rose in the war time economy. The end of World War II was the beginning of a dynamic phase for Nestl. Growth accelerated and companies were acquired. In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oral in 1974. Nestl's growth in the developing world partially offset a slowdown in the Company's traditional markets. Nestl made its second venture outside the food industry by acquiring Alcon Laboratories Inc. Nestl divested a number of businesses1980 / 1984. In 1984, Nestl's improved bottom line allowed the Company to launch a new round of acquisitions, the most important being American food giant Carnation. The first half of the 1990s proved to be favorable for Nestl: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996, there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestl merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.

Board of directors
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 Tan Sri Dato' Seri Syed Zainol Anwar Ibni Syed Putra
JamalullailIndependent, Non-Executive ,DirectorChairman of the Board of DirectorsChairman of the Audit Committee Chairman of the Nomination Committee

Tan Sri Datuk (Dr.) Rafiah SalimIndependent, Non-Executive DirectorMember of the Audit Committee Member of the Compensation Committee

Dato' Mohd. Rafik bin Shah MohamadIndependent, Non-Executive DirectorMember of the Audit Committee Chairman of the Compensation Committee

Dato' Frits van Dijk Non-Independent, Non-Executive Director Member of the Nomination Committee Member of the Compensation Committee

Tan Sri Datuk Yong Poh Kon Independent, Non-Executive Director Member of the Audit Committee

Peter Vogt Managing Director Alternate Director to Marc Seiler

Marc Seiler Independent, Non-Executive Director Alternate Director to Peter Vogt

Adnan Pawanteh Alternate Director to Dato' Frits van Dijk

VISION Nestl aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality. The confidences that consumers have in our brands is a result of our companys many years of knowledge in marketing, research and development, as well as continuity - consumers relate to this and feel they can trust our products. MISSION Nestls brands and products are the focus of continual innovation and renovation so that they meet and exceed our consumers' expectations. We seek to ensure that our products are available whenever, wherever and however our consumers want them. OBJECTIVES Nestls purpose is to offer safe, tasty, convenient and nutritious foods to improve health and well-being of consumers of all ages all over the world. To meet the needs and desires of todays and tomorrows consumers, Nestl is strongly committed to Research and Development (R&D) to improve existing products and develop new foods with specific health benefits.

Customer-Driven Marketing Strategy

Market Segmentation
Markets consist of buyers, and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs. In this section, there are 3 important types of segmentation that are segmenting consumer markets, segmenting business markets and requirements for effective segmentation. 1. Segmentation Consumer Markets Demographic segmentation divides the market into groups based on demographic variables such as age, sex, family size, family life cycle, income, occupation, education, religion, race and nationality. In this project, we noticed that Nestl uses the age and lifecycle stage segmentation to divide the market into groups. Age and life-cycle stage mean that consumer needs and wants are changing with their age as well. Nestl offers different products or use different marketing approaches for different age and life-cycle groups. For example, Nestls products divide into children cereal, adult cereal and family cereal. Psychographic segmentation divides buyer into different groups based on lifestyle characteristics. People in the same demographic group can have very different psychographic make ups comprising their activities, interests and opinions (AIOs). For example, a bowl of FITNESSE cereals every morning can help to achieve the body shape that you want. The crunchier FITNESSE flakes that made of whole-wheat are high in essential nutrients like calcium, folic acid and the most important is low in fat. Being typically low in fat and high in complex carbohydrates, protein and fiber, whole-wheat can help you to feel full longer and reduce snacking which will help you to maintain your desired weight. Now, there have more and more flavors. The cereals can mixed with a succulent blend of sun- ripened fruits- a harvest of crisp apples, tangy cranberries and golden pineapples, topped off with sun-ripened sultanas, raisins, papayas and tender toasted coconut. For someone who cares about healthy and beauty will buy FITNESSE or FITNESSE & FRUITS. 2. Segmenting Business Markets Consumer and business marketers use many of the same variables to segment their markets. Business buyers can be segmented geographically, demographically or by benefit sought, user status, usage rate, and loyalty status. Yet, business marketers also use some additional variables, such as customer operating characteristics, purchasing approaches, situational factors and personal characteristics. By going after segments instead of the whole market, companies can deliver just the right value proposition to each segment served and able to receive maximum rewards for close attention to consumer needs.

3. Requirement For Effective Segmentation Obviously, there are many ways to segment a market, but not all segmentations are effective. To be useful, market segments must be Measurable Accessible Substantial Differentiable Actionable : The size, purchasing power, profiles of the segments can be measured. : The market segments can be effectively reached and served : The market segments are large or profitable enough to serve. : The segments are conceptually distinguishable & respond differently to different marketing mix elements & programs. : Effective programs can be designed for attracting & serving the segments.

Market Targeting
Market segmentation reveals the firms market segment opportunities. The firm now has to evaluate the various segments and decide how many and which ones to target. Evaluating market segments In evaluating different market segments, a firm must look at 3 factors that are segment size and growth, segment structural attractiveness and company objectives and resources. Selecting Target market segments After evaluating different segments, the company must now decide which and how many segments it will target. A target market consists of a set of buyers who share the common needs or characteristics that the company decides to serve.

Positioning
Beyond deciding which segments of the market will be targeted, the company must decide what positions it wants to occupy in those segments. Products position is the way the product is defined by consumers on important attributes-the place the product occupies in consumers minds relative to competing products. Positioning involves implanting the brands unique benefits and differentiation in the customers minds. A products position is the complex set of perceptions, impressions, and feelings that consumers have for the product compared with competing products. 1. Choosing a Positioning Strategy Some firms find it easy to choose their positioning strategy. The positioning task consists of three steps .There are identifying possible competitive advantages, choosing the right competitive advantage, selecting an overall positioning strategy and developing a positioning statement. 2. Communicating and Delivering the Chosen Position The company must take strong steps to deliver and communicate the desired position to target consumers once it has chosen a position. All the companys marketing mix efforts must support the positioning strategy. Positioning the company calls for concrete action, not just talk. If the company decides to build a position on better quality and service, it must first deliver that position.

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Products
A product can be defined as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. Product in marketing mix is including the decisions of branding, packaging and labeling.

Branding
A brand is a name, sign, symbol, term or design, or a combination of these, that identities the maker or seller of a product or service. As the countrys foremost food company, Nestl has use the brand of Nestl to help consumers identify their products. Nestl market leading brands include Milo, Nescafe, Maggi and Nestle Bliss. It takes great pride in playing a part in the everyday lives of Malaysians - young and old alike, at work or at play.
Junior Foods NESTL Junior Foods provides precise nutritional balance for your baby.

Milk NESTL milk has been propelling kids and adults forward since the 1950s.

Cereals Start your day right with a nutritious NESTL Breakfast Cereal and keep hunger at bay with a NESVITA Cereal Bar.

Creamers For better tasting of your cooking to creaming your beverage, NESTL has the best range for you.

Beverages From morning to end of day, NESTL beverages have always played an important part in the day of most Malaysians.

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Prepared Foods Meal preparation is easy with the MAGGI range of products with fresh ingredients to suit your busy lifestyle

Chilled Dairy NESTL Yogurt range is loaded with real yummy goodness!

Ice Cream Enjoy your favorite NESTL Ice Cream today!

Confectionery & Chocolates Have a break, have a KIT KAT!

Health Science Complete and balanced nutritious beverage for long term nourishment. With a special fiber blend, it helps your gut feel good.

Performance Nutrition POWERBAR helps you optimum performance whether you are at the gym or running for the Olympics.

Water PERRIER is a delicious, non-alcoholic alternative for health conscious consumers.

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Packaging
Packaging is defined as physical container in which a product is sold, advertised or protected. A package serves three major objectives. Nestl is effective in packaging in order to deliver the safest food to their customers. Nestl has adopted an integrated approach to packaging in its continuous improvement policy. This involves what we call a 4R approach. Reducing the weight and volume of packaging materials. Leading in the development and use of packaging materials made from sustainably managed Renewable resources. Aligning with and supporting initiatives to Recycle or recover energy from used packaging, and helping to inform consumers through the use of identification and recycling symbols, and by encouraging consumers to recycle where programs are available. Using Recycled materials wherever it makes sense. For example, Nestls new NaturNes baby food pot shows that it requires less energy and produces fewer CO2 emissions than the previous version over its life cycle from farm to spoon and including recovery of packaging. This result from the weight reduction achieved by replacing a glass jar with a plastic pot, as well as energy savings from the new manufacturing process and the energy recovered from used plastic pots. It has been substantiated by a Life Cycle.

Labelling
Labels are once a separate element that was applied to a package. Today, they are an integral part of a typical package. Labels perform both promotional and informational functions. A label carries an items brand name or symbol, the name and address of the manufacturer or distributors, information about the products composition and size, and recommended uses. The right label can play an important role in attracting consumer attention and encouraging purchases. Nestl is very conscious of its role in communicating responsibly to consumers so it is committed to clear, user-friendly labelling and supporting materials to help consumers make well informed food choices. Nestl has already introduced the Nestl Nutritional Compass (launched in 2005). This is an on-pack information panel that provides consumers with relevant, easy-tounderstand nutrition information. It is a global labelling scheme that translates into billions of clearer nutrition labels in the hands of consumers.

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PRODUCT MIX WIDTH PR Milk OD UC T LIN NESLAC E LE NESPRAY NG TH Everyday Cereals Creamers Beverages Prepared Chilled Ice Foods Dairy Cream Confectionery and Chocolates Healthcare Nutrition Junior foods Performances Nutrition

Fitnesse Tea Pot

Milo

Buitoni

Yogurt Drink Yogurt

Drumstick KIT KAT

NUTREN

Baby Cereals Rice Porridge

POWERBAR

Banana Nut Clusters

Ideal

Nestomalt

Maggi Sauces

Trophy

SMARTIES

PEPTAMEN

Almond Carnation Clusters Corn Flakes Nestum

Nescafe

Meal Solutions Maggi

Mat Kool

MILKYBAR

Rusk

Omega Plus Acticol Nesvita Hical Non Fat

Nestle Tea Nestea Time Coffeemate Nesvita Soya Bean Milk Nestle low fat milk Omega UHT Milk

Apple Sourz Blue Tubs

Koko Crunch Honey Star

La Cremeria

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PRODUCT LINE LENGTH DEP TH LIN E PRO DUC T MILO NESCAF Yogurt MAGGI MAGGI POWERBAR NUTREN Sauces Perisa Asli POWERBAR Performance NUTREN Optimum

MILO NESCAF Fuze 2-in-1 Cereals MILO Fuze 3in1

NESVITA Chili Yogurt sauce Fruit Bowl

NESCAF NESVITA Extra Light Roast Yogurt Hot Apple & Aloe Vera NESCAF Body Partner NESVITA Yogurt Hawaii Melba Chili Garlic

Curry Flavor

POWERBAR Gel

NUTREN Fibre

MILO Fuze Light

Chicken Flavor

POWERBAR ProteinPlus

NUTREN Junior

MILO Fuze Mocha

NESCAF Classic

NESVITA Thai Yogurt Chili Strawberry Sauce & Pear Tomato Ketchup

Tomyam POWERBAR Flavor Beverage System

NUTREN Balance cereal bar

NESCAF 3-in-1

Asam Laksa Flavor

NESCAF Premium Range NESCAF Cappuccino

MAGGI soya sauce

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New Products
NINHO Fruti
Ninho Fruti is made with real fruit and provides 32%, 31% and 40% of childrens recommended daily intakes of vitamins A, C and vitamin D respectively. It also provides 30% of the recommended daily intake of iron. Ninho Baixa Lactose is a fortified low lactose drink suitable for the 10% of children who are lactose intolerant.

NESTL OMEGA PLUS ONE

Taking care of your heart's wellness is simplified with new NESTL OMEGA PLUS ONE. This is because one cup a day for 30 days is all it takes to lower your cholesterol by up to 7%*. Try it today for a healthier heart.
RRP (WM): RM 14.00

NESTL NESTUM 3in1 NESTL NESTUM 3in1 and herbal specialists Eu Yan Sang has partnered to reveal a new innovation in cereal drinks. Infused with the finely selected Chinese herbs to keep you healthy and active, it is available in American Ginseng and Dang Gui, offering you a uniquely pleasing flavour. With the goodness of whole grains to give you balance in your morning.
RRP (WM): RM 9.50

MAGGI 2-Minute Noodles Unveils New Packaging!

MAGGI carries the new 'Protein dari Gandum' seal as each pack MAGGI 2-Minute Noodles serves as source of protein from wheat. So hurry, head on to your favourite store, grab it and satisfy your noodle cravings!
Curry & Chicken: RRP (WM & EM): RM4.50 Tom Yam & Asam Laksa: RRP (WM & EM): RM4.95

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MILO Fuze Light & MILO Fuze Mocha MILO Fuze Light: 40% less fat, 25% less sweet. MILO Fuze Light is the easy tasty way to enjoy MILO with natural goodness, ACTIGEN-E and PROTOMALT. Just add hot water for a lighter cuppa that's truly nutritious. RRP: RM10.60 / pouch (15 sachets)

MILO Fuze 3in1 MOCHA: MILO Fuze 3in1 MOCHA is the easy, tasty way to get a cup of MILO plus coffee- for a great tasting, nutritious drink and full of goodness. Just add hot water for a quick, pleasurable treat whenever you need a break in your action-packed day! RRP: RM10.60 / pouch (15 sticks)

FITNESSE & FRUIT Have a bowl of FITNESSE cereals every morning. Not everyone knows this, but it can help you achieve the body that you want. Made from whole-wheat, the now crunchier FITNESSE flakes are high in essential nutrients like calcium and folic acid and low, low, low in fat. Now it mixed with a succulent blend of sun-ripened fruits - a harvest of crisp apples, tangy cranberries and golden pineapples, topped off with sun-ripened sultanas, raisins, papayas and tender toasted coconut.

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* RRP - Recommended Retail Price.

Price
Price is the amount of money that customers have to pay to obtain the product and services. Price is the sum of all the values that consumers give up in order to gain the benefits of having or using the product or services. Nestl has produced many types of product therefore there will have different types of pricing according to each type of product.

Pricing Strategy
Pricing strategy is the specific strategies that firms use to price goods and services grow out of the marketing strategies they formulate to accomplish overall organizational objectives. In general, firms can choose from two broad pricing strategies that are marketskimming pricing and market-penetration pricing. Market-penetration pricing is that the companies set a low initial price to penetrate the market quickly and deeply to attract a large number of buyers and win a large market share. For Nestl, it uses the strategy of marketpenetration pricing to introduce in the target market. Nestl has developed a specific business model called Popularly Positioned Products (PPPs) which focuses on the specific needs of around 3 billion lower-income consumers worldwide. PPPs offer these consumers the opportunity to consume high-quality food products that provide nutritional value at an affordable cost and appropriate format.

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Promotion
Marketing Management Orientation The Marketing Concept
First of all, Nestl has positioned itself to hold marketing concept as its core concept while doing marketing activities. Marketing concept is a marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Differ from selling concept, marketing concept emphasizes on focuses on customer needs, and integrates all marketing activities that affect customers. Nestl has chosen to gain and hold its profits by creating lasting relationships with the right customer based on customer value and satisfaction. Due to Nestl products are common commodity foods and drinks products, therefore the competition in this industry is intense. This also imply that its products can be replaced easily. Therefore, to be conspicuous among these competitors, Nestl has chosen to hold marketing concept. It targets on certain market segments based on its various products and delivers desired values to those target consumers. For instance, for its beverage products, it divides and classifies market according to the consumers age, sex and living style. Milo is drink mostly targeted on younger consumers such as kids. Other than being healthy breakfast and provides energy through out the day, Nestl delivers this products value more than that: You can become a champion by drinking Milo! For Milos commercial advertising on electronic media especially on television, it reminds consumers repeatedly that champions drink Milo. Nestl hires young and successful athletes to become the actors in Milos commercial advertisements, and delivers messages desired by most kids such as We are not kids! or We are champion!. Another good example from Nestl beverage product would be Nescaf. Opposite to Milo, Nescaf targets on adult consumers that need to stay alert most of the time in order to complete their studies or works. Anyway, there are other products in the market that provide similar value of being able to keep people alert. Thus, to stand out from these competitors, Nestl positions Nescaf to be a product that becomes a good start of a day. As a result, we can see Nescafs commercial advertisement actors acting happily and satisfied once they have drunk Nescaf. These examples have shown that Nestl realizes that it has to be outstanding, special and irreplaceable in turn to gain large market share in this industry. To accomplish this goal, it studies all potential consumers needs and wants, then try to deliver desired values to these consumers. Hence, Nestl various products deliver different values to the market, such as Milo provides desire to become champion and energetic to kids, Nescaf delivers
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needs to stay alert and happy to adults, while Omega Plus Acticol and Nestiva state to provide healthy lifestyle to their consumers, etc. In a nutshell, Nestl holds marketing concept as its guide when doing its marketing activities by delivering needs and wants desired by consumers better than the competitors do and this is one of the main reasons why it is able to stand out and differ itself among all the competitors in this industry.

Advertising
There are four steps in developing an advertising program, which are setting advertising objectives, setting the advertising budget, developing advertising strategy, and evaluating advertising campaigns. 1. Setting Advertising Objectives Advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives are divided into three main purposes which are to inform, persuade, or remind. Due to Nestl has many different products, therefore it can use different advertising objectives for different products. Basically, Nestl use reminder advertising for most of its mature products, so that it can keep consumers thinking about the products. Many of the Nestl products have reached mature that most of the consumers know their existence, such as their beverage products(Milo, Nescaf), children cereals(Koko Krunch, Honey Stars), growing up milk(Nespray), confectionery and chocolates(Kit Kat, Smarties), prepared foods(Maggi noodles, Maggi sauces), and so on. Thus, all Nestl has to do is to keep reminding consumers about their superior values by continuing advertise these products. Nevertheless, Nestl also launches new products at the same time. For those new products, Nestl has to use informative advertising, which is to introduce new product to the market. Examples of current new products would be Ninho Fruti, Nestl Nestum 3 in 1, Nestl Omega plus One, Maggi Noodles Kari Letup, Nescaf Body Partner (Breakfast, Ginger and Honey, Ginseng, Hi-Calcium Milk) and so on. 2. Setting the Advertising Budget By reason of most of Nestl products have many competitors in the market, hence it needs to advertise more heavily to be noticed above the noise in the market. 3. Developing Advertising Strategy Creating the Advertising Message

A company has to create a message strategy before it plans what the advertisements content should be. A message strategy is general message that will be communicated to consumers. For Nestl in Malaysia, the message would be The nutrition that Nestl delivers to all its consumers is embodied in promise of Good Food, Good Lifea promise of healthier food choices. It is clear and obvious that Nestl is trying to display an image
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which its products are positive and healthy element in consumers life and this message is supported by Nestl current and newly released products that declare themselves to be maintain desired weight, high in essential nutrients, help to achieve the body that you want Some of the examples would be Nestl Fitnesse & Fruit, Nescaf Body Partner, Nestl Omega Plus Acticol and so forth. Since now Nestl has the big idea about what to deliver to its target consumers as a whole, it now has to turn idea into an actual advertisement execution to capture the target markets attention and interest. There are several types of execution styles to present messages and among the execution styles that Nestl uses to deliver its messages are slices of life, lifestyle, mood or image, musical. There is commercial advertisement where the actors of the ad wake up and drink a cup of Nestl beverage products while exhibit satisfied and pleased expression once they have consumed those products, indicates indirectly that drinking Nestl products would be a nice start of a day. This is one of the examples of slice of life execution style used by Nestl. At the same time, Nestl also applies lifestyle execution style in its advertisements. For instance, an advertisement of Milo, one of its beverage products shows a primary school student drinks a cup of Milo early in the morning and after school, while there is a green bar below the screen that illustrates the kids energy level will boost up every time after he drinks Milo. This advertisement is attempting to convince the target consumers that how the product (Milo) fits in with a particular lifestyle (student lifestyle in this case). Besides, some of the Nestl products have used mood or image execution style while delivering the messages of its products superior values to targeted market. An excellent example will be its chocolate and confectionary products, Kit Kat in particular. Kit Kats commercial advertisement keeps remind consumers to consume Kit Kat when they want to take a break. There is an ad where two men are competing in a mamak store to find out who has stronger muscle, half way through that competition, they have a break and eat a Kit Kat. Right after they have eaten the Kit Kat, they continue the competition. Meanwhile, the screen comes out with words suggest that have a Kit Kat, take a break. In this case, Kit Kat attempts to create a relax mood and gives a hint to consumers to eat Kit Kat when they are having a break. We can spot the musical execution style in Nescafs advertisement, where as the background music keeps on playing a line:One now one Nescaf, One now one Nescaf with light and easy-to-remember music. This advertisement is repeated times and times to insert that song into consumers mind with the intention to formulate the consumers mindset to have a Nescaf immediately. Selecting Advertising Media

Mostly Nestl has chosen television and newspapers as its medium to advertise its products. This is caused by its target market is large and television has good mass-market coverage with sound, motion and appealing to the senses that support Nestls execution styles to present its messages. On the other hand, newspaper is flexible, has good local
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market coverage, broad acceptability and high believability. Regarding to the media timing, by reason of Nestl products are common necessities that are consumed through out the year, therefore Nestl advertises its products constantly along the year. In brief, Nestl has examined carefully who will be its target markets, what messages it would like to deliver to them, how and when to deliver the messages to them. Then, it comes out with advertising plans that are able to accomplish its advertising objectives.

Sales Promotion
Sales promotion refers to short-term incentives to encourage the purchase or sale of a product or service. Among the sales promotion tools that Nestl uses are samples, price packs, premium, contests, sweepstakes, and so forth. Nestl is regularly serving samples of its products in hypermarkets in order to allow consumers to have a taste of its new products while reminds consumers about its products. In the meantime, it offers price packs that enable consumers to save off the regular price of a product. For instance, in Malaysia, Nestl promotes the product of Maggi & Tebus by buying RM5 worth of Maggi cooking products can redeem 1 coupon to exchange for MAGGI premium items. The redemption period is from 3rd November 2012 to 30th December 2012. Previously, Nestl Fitnesse also offers price pack of Save RM1.00 with every purchase of Nestl Fitnesse 180g and NESTL Fitnesse & Fruit 240g from 1st March 2007 until 31st March 2007. Last but not least, Nestl organizes contests and sweepstakes to attract people to purchase its products as well. For example, a person who consumes particular Nestl ice cream such as Nestl Drumstick Spiro stands a chance to win prizes by filling forms. In summary, Nestl is putting a lot of effort in sales promotion in order to boost up its sales as well.

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Place
Company can design their distribution channels to make products and services available to customers in different ways. Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level. Because the producer and the final consumer both perform some work, they are part of every channel. The number of intermediary levels indicates the length of a channel. There are two types of channels that are direct marketing channel and indirect marketing channel. Direct marketing channel has no intermediary levels so the company sells directly to consumers. While indirect marketing channel has containing one or more intermediaries. Nestl Company is currently the largest food company in the world. The distributions of Nestle product to end consumers are as below: 1) 4 stage of distribution is used when Nestl has production plant and distribution channel within that particular country. Example country is Switzerland country. Where Nestl produces the good and distribute to the wholesaler and retailer, which end result to the end consumers.

Producer

Wholesaler

Retailer

End Consumer

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2) 5 stage of distribution is used when Nestl doesnt have a distribution channel in that particular due to cost of transportation and exacta. Example like in Malaysia country 5 stage of distribution is used, Nestl Malaysia has give the right of distribution Nestl product to Thong Guan agencies of distribution, where Thong Guan agencies will sell the Nestle product to the wholesaler or retailer like Macro, Giant, and Carrefour supermarket. Then the wholesaler or retailer will sell to the end consumer.

Producer

Agent

Wholesaler

Retailer

End Consumer

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3) 6 stage of distribution is used by Nestl to export their goods to another country. Where Nestl required the shipper to ship their good to the country that demanded those goods and the agent in charge of the distribution of the good will pick the good from port and distribute to the wholesaler and retailer that at last reached to the end consumers. Retail Primary placement for Nestl products is still centered on grocery stores, although the increase in the number of convenience foods it produces has meant that more impulse locations are being sought, such as vending machines and petrol station. In Europe and the USA, grocery shopping is usually concentrated around large retail outlets such as Wal-Mart, Asda and Tesco but in countries such as India grocery shopping is still concentrated around small local stores and markets. This has presented Nestl marketing team with problems when trying to standardize promotional ideas for use in retail outlets.

Producer

Shipper

Agent

Wholesaler

Retailer

End Consumer

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References
1. http://www.nestle.com.my/Pages/Nestle.aspx 2. http://en.wikipedia.org/wiki/Nestl%C3%A9

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