NESTLE: THE NAME YOU KNOW, THE JOURNEY YOU DONT
NESTLE: WHAT
MAKES STAND APART FROM THE REST?
If You Carefully study all the Brands pertaining to the FMCG Sector, then one name that stands out from the rest is none other than Nestle. If Building a Brand Identity in the most profused way Possible is an art, then Nestle is the Picasso of it. Having Said that, There have been only a few brands that have achieved the level of popularity that Nestle has and the best part? They haven’t really made any conscious effort to break it through ! It has been all very organic with Nestle taking the Creative Liberty to potray their ideals unapologetically be it through their Products or be it through their mind-Boggling Marketing Gimmicks. Nestle has only gone from strength to strength carving a gigantic niche for themselves Solidifying their Position in the FMCG Sector. So today we take a look at the top factors that have helped Nestle 's Case in steering it to the top
Clever Market Segmentation - One of Nestle’s Most
Indispensable weapons has always been its clever Market Segmentation.
Essentially Market Segmentation refers to the process of segmenting or dividing
the market into smaller Segments depending on the demographics , Psychographics
and the Geographics ,Pertaining to a Particular Place so as to ascertain the
Target Market for a Particular Product. It is Generally Conducted before a Product
Is Launched in the Market. This is where Nestle Proves To be the Most Sensible
of all , Having Maintained a Product Line Ranging Across all age groups and all
price-levels, Nestle fits into the regime of every earning individual providing
everyone with their necessities showcasing a stellar display of growing about
the horizons of the FMCG Market.
Targeted Products- As
Mentioned earlier, Nestle has redefined itself as a Brand growing from strength
to strength proving to be a part of every Individual’s regime. This has been
nothing Short of a stellar display of running a supply chain Management filled
with Products Segmented for every Single market. For that lets Consider the Following Example:
|
Target Audience |
Products |
|
·
Kids |
·
Caregrow, Lactogrow |
|
·
Working Professionals |
·
Sunrise, Nescafe |
|
·
General Audiences |
·
Maggi, Kitkat, Milkmaid |
From the above example, a glimpse of Nestle’s Product Chain is well understood along with the segment they are targeted for. This Not Only helped them build credibility as a Brand but also instilled in trust in the minds of all their Consumers thereby Marching towards a huge victory as a Brand.
Acquisitions- Up
Until Today, Nestle has acquired 38 Companies across different Sectors spending
a total of $55.8 Dollars for the same. However, The Acquisitions too have been
nothing Short of Tactical masterstrokes fetching Nestle Significant Returns
every year with some even showing an exorbitant year on year growth. The Most
Notable of them however has been Maggi which has practically turned out to be
every household’s best-friend in times of utmost hunger. The acquisitions made have only boosted
Nestle’s Confidence in harnessing its ideal to be in a League in its own while
also fostering Personal Connections.
Mind-Boggling
Marketing Ideals-
Nestle Marketing Ideals have been nothing short of extraordinary. With
Super-Updated Marketing Techniques in display, Nestle tends to always stay a
few steps ahead of its Competitors . Be it their ad Campaigns or be it their
Social-Media Campaigns , Nestle have always incorporated in a sense of
belongingness in their Gimmicks with a breath of fresh air in their underlying
Endeavors. For Example, The Facebook Campaign in early 2010’s where a person
unites with his college mates over a cup of Nescafe(Coffee) invoking in a sense of Nostalgia filled with Magic
urging Many to Recreate it later. This is where Nestle’s Idea to Celebrate stories
of their Customers whom they primarily see as ‘heroes’ take life. However,
despite the highest of highs, Nestle has gone through various phases of
turmoil, the most Prominent one being the Banning of Maggi in 2015-16 due to a
failure in its quality test which detected the presence of Monosodium Glutamate(MSG) and lead deemed to be harmful for the
human body in it. Infact, the Condition turned so poor that the supply of Maggi
in Several States of India was stopped and the Company suffered huge losses.
The Company was quick enough to act upon it and using its own hysterically
different creative approach, the Company was soon again in the reckoning. The
Approach meant a Campaign named #”WemissyoutooMaggi”
with Bachelors and Maggi Lovers Coming Together to post videos of them online
stating how much The Maggi ban has affected their lives and how much their lives
depended on it. Additionally Videos of Maggi being lead free and how its
quality Control is done were posted and they all collectively attributed to
Maggi’s Comeback. Another Campaign that isn’t talked about much is the #”AskNestle” Campaign where Nestle came
up with their own digital Assistant to offer people with advice on the
nutrition that is contained in the food that we Consume. Additional, it Also
helped the parents whose children were below the age of 12 years to create a
nutritional diet plan for them.
LOCALIZATION OF
PRODUCTS- Localization essentially refers to the adaptation
of a Company’s Product in a local Market and Nestle has been quick enough to encash
on that as well. Infact, a majority of the markets that drives Nestle’s revenue
was a result of Localization. For example, when Nestle entered The Japanese
Market, its primary focus was on coffee-flavoured Chocolates despite knowing the
fact Japan is a tea-drinking Country. The Chocolates offered were meant to
redefine the habits of the Japanese people especially Children who now got a
new flavour of Chocolates to taste. Eventually it was received well and the Company
later went onto Introduce products like KitKat and Nescafe and what happened
next is History.
The above mentioned factors only go onto say that Nestle’s Story is indeed one of a kind and while other FMCG Brands also aim to replicate the same, its quite Safe to say that the journey wont be easy atleast with this Giant existing in the Market. Nestle’s journey is also a testament to the fact that identifying Business Opportunities without having a blueprint for its Execution means nothing. Having said that, there is no formulae to Success in a Business, all it needs is time and credibility and the right approach . Failures will be a part of every Business but its about rising from those failures that will define its character and ultimately show it the pathway to success.
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