marketing mgt nestle
TRANSCRIPT
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Marketing Channel
Mabroor
Ahmed
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vMarketing Channel
vMarketing Channel Strategy
vCase study of Nestle
vIntroduction
vHistory
vAdvertisment Strategy
vCSR
vDistribution Channel
vRural Development
.
Overview
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vWhen Do Customers Buy?
vWhere Do Customers Buy?vHow Do Customers Buy?
v
Who Buys?vWho makes the actual purchase?
vWho uses the product?
.
The Most Basic Questions in the
Design of Marketing Channels
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(Place); the fourth P in theMarketing Mix has
been largely neglected
But this is changing....or businessuser.
.
Marketing Channel Strategy?
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Five Reasons
vSearch for Sustainable Competitive Advantage
v
Growing Power of Retailers in Marketing ChannelsvThe Need to Reduce Distribution Costs
vThe Increased Role and Power of Technology
vThe New Stress on Growth
.
Marketing Channel Strategy is
Growing in Importance. Why?
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CASE STUDY
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v It was founded in 1867 by HENRI NESTLE.
v Was listed no.1 in fortune global 500
as the Worlds most profitable corporation.
v Ranked no.13 in FT global 2011 with
market capitalization of $200 million.
v Has449 factories in 86 countries and employs
more than 3,28,000 people.
v
Mainly deals in chocolates, milk products, maggi, soup,
INTRODUCTION
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Uses the samesymbols worldwide.
think globally and
act locally
Product formulation vary to
suit cultural differences.
Nestl:Advertising Strategy
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Reduce prices and introduce
smaller packages for products
to make them affordable has also
implemented many promotional
schemes.
The company has also promoted
there products like giving free
Nestl:Advertising Strategy
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CORPORATESOCIAL
RESPONSIBILITY
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Nestl:advertisement
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Good Food
Good Life
"Nestl is the largest foodcompany in the world. But, more
important to them is to be the
Social Responsibility
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In 2006, Nestl became the firstorganisation to adopt creating share
value approach
Nestl has focused its Creating SharedValue efforts and investments on threeareas nutrition, water and rural
development as these are core to our
.
Social Responsibility
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As for social responsibility, the company
says its education programs have
reached 9 million people.
And by changing the recipesof its foods, it has eliminated
75,000 tons of trans fat from
its products, along with
15,000 tons of salt and
638,000 tons of sugars.
Social Responsibility
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SOCIETY:
Nestle has constantly innovating and changing
their products to fulfill their customers need.
Nestle plans to double number of nutrition and
physical activity education around the world
Corporate Social Responsibility(CSR)
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A set of interdependent
organizations involved in the
process of making a product
or service available for use
or consumption by the
consumer or business user.
.
What Is Distribution Channel?
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.
Distribution Channel
Functions
Or
deri
ng
Pay
ments
Communic
ati
on
Tr
an
sf
er
Negoti
ati
on
FinancingRi
sk
Taki
ng
Ph
ysi
cal
Dis
tribut
Inf
or
mati
on
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.
The Nestle Distribution
Channel
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Distribution system of Nestl is one of major source of
competitive edge over its existing rivals. Nestl has its
own distribution networks equipped with all necessary
transportation facilities. They transport their products
at major regional sales offices, which are situated at
different cities. These sales offices (distribution
centres) have their own vans with sales people who sell
and transport goods to the small retailers.
.
Distribution
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.
The Need to Reduce Distribution
Costs
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.
How a Distributor Reduces the
Number of Channel Transactions
=Customer
=Manufacturer
A. Number ofcontactswithout a
distributorM x C = 3 X 3 = 9
1
32
45
6
7
8
9
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RURAL DEVELOPMENT
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Rural Development
INDIA:CleanDrinkingWater
ProjectAnd Water
EducationProgrammeForChildren:
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Rural Development MALAYSIA:
ContractChilliFarmingProject:
Nestl provides the rural farmers withtechnical
Support in the field of Chilli
processing.80% of the chilliesproduced,are purchased by
Nestl which are been
A proud farmerfrom
Kelantan, Malaysia
Whose chillies are
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Rural Development IN INDIA:
NestleAgriculturalServices
has used the experience gained
by nestle in different Parts
Of the world to set up a
system of direct and
Efficient contact with the
farmers in India.
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IN PAKISTAN:
JointVentureFor DriverTraining:
Nestle Pakistan joinedhands with the
National Highway and
the Motorway
Police(NHMP) for
Rural Development
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IN SOUTH AFRICA:
IceCreamOnWheels:
Nestle recognises the
importance of
Enterprise development
to eradicate Poverty.
The ice cream on Wheels
initiative was launched
Rural Development
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. Many
products withwide variety
. Flexibility
Recognized
world wide
. Healthy foodmarket Asian
Market
. Increase in
demand for
bottled water
. Compete in
manymarkets
. Negative
health
effect
Intense
competitionSlowdown in
rural area
. Commodity
price growth.
STRENGTHS WEAKNESS
OPPORTUNI
TIES
THREATS
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Short-term
v Local markets
v Health and Nutrition
Long-term
v Continue to expand globally
v Other markets and one brand
v Quality of products
.
Recommendations
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THANK YOU
Presented by-MABROOR AHMED
AM552730