Political Environment And Friendly Environment Marketing Essay

We have chosen Nestle as the business that people would analyse in this task because Nestle is a major and well known company in todays period of globalization and very much people-oriented, and committed to understanding its consumers' needs across the world in order to supply the best products for people's lives which would make it easier for us to acquire and analyse the info about their marketing segmentation, market environment, marketing mix and backdrop of Nestle. Furthermore, all our associates, Chia Poh Ling, Lee Yue Xhing, Leow Jo Yee and Yvonne Tay tend to be more familiar with the corporation, which would create analysing and conversations go more easily.

Nestle S. A. is the largest food company on earth. It really is a Swiss multinational healthy, snack food, and health-related consumer goods company headquartered in Vevey, Switzerland. The world's leading food company and the marketplace head in both espresso and mineral normal water, produces a blowing wind selection of products.

As the primary Food, Nutrition, Health and fitness Company, Nestle is the specialist of the greatest food for whatever time of day and then for whatever time of your life. Nestle's products include baby food, bottled water, breakfast cereals, coffee, confectionery, milk products, ice-cream, pet foods and snacks. The primary shareholders of world's major cosmetic makeup products company, L'Oreal is Nestle.

The aims of the Nestle S. A. are to be recognized as the world leader in Nourishment, Health and Wellness, trusted by all its stakeholders, and be the reference for financial performance in its industry.

Nestle S. A is the world's leading nutrition, health and fitness company with an unparalleled portfolio of more than 2, 000 global and local brands. It offers 468 factories distributed over 86 countries, and employs around 330, 000 people. Its products can be purchased in every country on earth. Its agricultural services provide assistance to improve the quality and yield of the recycleables it uses.

In 1867, the infant began to adopt the milk food product Henri Nestle acquired developed, and a life was kept. The product, called Farine Lactee Nestle, was soon marketed throughout much of Europe, and a fresh brand name began to take on life.

Henri Nestle implemented his own layer of hands as a brand in 1867. Translated from German, Nestle is universally comprehended to signify nurturing and caring, security, nourishment and family bonding which is little nest and the now-famous image. The company Henri Nestle founded as it fulfills its determination to 'Good Food, Good Life. '

In 1905, the Nestle Company merged with the Anglo-Swiss Condensed Milk Company, the first condensed dairy factory which opened up in Switzerland in 1866. Nestle got into into the dairy chocolates business in 1904 when Peter & Kohler Swiss Basic Chocolate Company produced milk chocolates under the Nestle hallmark. The chocolates company later joined the Nestle Group in 1929.

While the original business was predicated on dairy and dietetic foods for children, the new Nestle grew and diversified its range of products, through acquisitions and mergers with the better known brands of the time.

Nestle commenced in Malaysia in 1912 as the Anglo-Swiss Condensed Dairy Company in Penang and later, expansion and growth made a proceed to Kuala Lumpur necessary in1939. Since 1962, with its first manufacturing plant in Petaling Jaya, Nestle Malaysia now makes its products in 7 factories and operates from its hq in Mutiara Damansara. THE BUSINESS was publicly posted on the KLSE now known as Bursa Malaysia Berhad on 13 Dec, 1989. Today, the business employs more than 5000 people and companies as well as market segments more than 300 Halal products in Malaysia. Its brand such has MILO, NESCAFE, MAGGI, NESPRAY and Package KAT have become trusted household names and relished for years.

Market Segmentation, targeting and positioning

Market segmentation consists of aggregating of prospective buyers into communities, or segments which may have common needs and can respond much like a marketing action. Nestle provide a wide range of healthy food and drinks for everyone to practice a well-balanced and nutritious diet and lifestyle. You will discover four types of major segmentation parameters for consumer markets such as geographic, demographic, psychographic and behavioral. Section marketing has given the business a clearer picture of these customers and rivals so the company will come up with a far more fine-tuned products and services that satisfied customers needs. Through market segmentation, focusing on and positioning, Nestle can reach out to their customers easier and serve their customers better and efficiently.


We found out that Nestle classify their market by using geographic, demographic and psychographic segmentation based on consumer characteristics. In geographic segmentation, Nestle has divided their market into cities (locations) and rural areas (villages). Besides that, Nestle also uses demographic factor to section its market, it comprises on income level and educational level. The income level and educational level can be classified as low, middle and advanced consumers. Apart from that, Nestle uses psychographic factor to distinguish the marketplace. The segmentation variables that Nestle uses are personality, sociable school and lifestyle. Nestle can groupings individuals according with their personalities such as extrovert, self-disciplined or energetic. Nestle divides their customers into low cultural class, medium social course and high social class.


A marketplace is a potential market that a company has decides to focus its marketing efforts and resources to enter in those marketplaces. Nestle sections its market by parts, income level, educational level, personalities, interpersonal category and lifestyle. By applying the information and observations that people get, we can merely identify the prospective market of Nestle.

In this case, we found out Nestle focuses on urban areas rather than rural areas. The intake of Nestle products is often in locations when compared with villages. This may be anticipated to income and educational level. Folks in rural area mostly could not spend the money for products of Nestle as it is recognized as luxuries. They don't have strong sense of health consciousness anticipated to educational background. This makes them the less attractive potential buyers.

For segmentation by income level, Nestle has been concentrating on on those consumer who earn middle income and high income. People will purchase healthy and wholesome food and beverages when they have enough economic resources to rear up them. Those consumers with higher income have a tendency to be the audience for Nestle because they bring most profit into the company.

Furthermore, for educational level Nestle tends to pay more focus on those consumers who comes with an education background. They'll be more concern of their health insurance and they will do more to maintain it. Through education, we can improve our knowledge and develop life skills which can contribute to specific and community health. Those individuals with an education history will practice and keep maintaining a wholesome and healthy diet as they know health is more important than prosperity.

For personality segmentation, Nestle is focusing on consumers who tend to be more outgoing and outdoorsy. For the reason that they require more energy and nourishment they have lost during their activities. By adapting healthy source to physical needs, they can take full advantage of their body. These people desire to maintain their vitality and quick recovery after a busy day by adapting a balanced diet that provides them with essential nutrients and energy.

In addition, from the public class and lifestyle sections, Nestle is targeting consumers who are belong to the higher communal classes. They have got high purchasing electricity in order to manage more luxuries such as Nestle's products. These people are the marketplace of Nestle because they tend to be health conscious. Nestle's products often stress on vitamins and minerals and health benefits that can improve one's lifestyle and health issues.

As summary, Nestle is able to get in touch with their customers that it can provide best and most profitably. Through segmentation and concentrating on market, Nestle can enhance the profits for their company and increase effectiveness in their marketing promotions.


Product positioning identifies the place an offering occupies in consumer's imagination on important traits relatives to competitive products. Nestle placed itself as the world leader in Diet, Health and fitness, respected by all its stakeholders, and be the reference point for financial performance in its industry. Nestle uses the slogan "Good Food Good Life" to enhance lives, throughout life, with good food and beverages. Diet content in their products is the main focus to reinforce their leadership in nourishment industry. To stay their position for the reason that industry, they need to identify their competitive advantages against their rivals. Nestle has detailed out four competitive benefits of their company that may help their company to compete with their competition, that are unrivaled product and brand collection, unequaled research and development (R&D) potential, unmatched geographic occurrence and finally people, culture, ideals and frame of mind.

For unequaled product and brand profile, Nestle provide the largest selection of food and drinks among all the meals company. Their products range from global symbols to local favourites that can adjust to consumer needs, tastes and tastes, making Nestle as a worldwide brand that relevant to everyone and almost everywhere. Besides that, it is recognized by unmatched R&D potential that improves the products through development and renovation so that it can meet consumer needs and enhances consumer benefits. Nestle spent over billions of dollars on its R&D merely to ensure its consumer gets the fundamental diet that their body needed.

Nestle has an unmatched geographic occurrence competitive advantage due to the quantity of countries where they presence. They have been in most countries for over decades and efficiently created a strong relationship between their brands and their consumers. This also means that they have has the required time to review about the neighborhood preferences and behaviors to boost their products flavor to match the local's tastes. The most important competitive benefits for Nestle is their people, culture, beliefs and frame of mind. The Nestle culture created a strong bond between their people who have a shared set of behaviors and principles into a single way to do business. Their people are established to provide their goals as while as creating value to the general public.

Marketing environment

Marketing environment includes microenvironment (internal environment) and macroenvironment (exterior environment). It embraces all the marketing team in the company and includes all the outside factors of marketing that have an impact on the team's capability to develop and keep maintaining successful customer romantic relationships using their targeted customer group. Nestle is deploying it to improve customer romantic relationship management and modify new strategies when it comes to obstacles and opportunities.



Suppliers are the one who provided the resources needed by the company to produce the products or services to the consumers. Any problems that incurred in supplier can greatly impact the company sales and harm customer relationship. We are able to separate the suppliers of Nestle into two organizations that are labour suppliers and materials suppliers. Labour suppliers are responsible for the way to obtain labour required by the company to enhance their production level. Labour strikes and labour relationships are the most crucial factor to maintain labour satisfaction for company to improve their efficiency. For materials suppliers, they deal with the materials needed by the business to put the done goods on rack. The quality of the materials is everything that the business targets as Nestle is the food and drinks industry. By retaining the quality and quantity of these two products, Nestle can produce high volume product to uphold their sales volume and client satisfaction over time.

Marketing intermediaries

It helps the business to promote, sell and deliver its product to the final customers. The physical distribution businesses design the delivery string for the company products to reach their final vacation spot. The firms also in control with the products' protection without getting any harm while keeping them temporarily. Marketing service organizations of the business helps to focus on and promote its products to the right market. It serves as a communication channel between your customers and the company by detailing the features of the merchandise and providing reviews by using survey for the business to increase the quality of the merchandise. Banks and insurance firms are financial intermediaries that help provide financial resources and security to the product and company against risk that may be occurred during the operation of the company. Nestle works together all marketing intermediaries to ensure their valuable customers have a image of their products features.


Nestle sells its goods to reseller marketplaces that provide the goods to final customer at an acceptable income. Nestle also handles customer market segments which includes individuals and households that buy a wide range of its products. Nestle works hard on making the merchandise available whenever the client needs them to keep customer satisfaction.


Political environment and Friendly Environment

Nestle stick to the laws and regulations that require in its activities and the environment. The federal government may set quotas on the quantity of the products which it can source and set the quantity of taxes that the company must pays to be able to conduct the business enterprise. To achieve a balance between them, Nestle participates in legislative and regulatory discussions between international organizations, administration representatives, industry, clinical community and consumer associations. In 2000, Nestle and other chocolate companies created the World Cocoa Base. The WCF requires control of the issues that cocoa farmers facing, which is ineffective farming techniques and poor environmental management. The WCF aims to increase farmer income, promote ecological farming techniques, and unveiling environmental and cultural programmes.

Economic environment

Customer purchasing electric power is majorly damaged by a variety of monetary factors such as income levels, inflation, taxes, unemployment, exchange rates and mortgage rates. The disposable income and living standard of a country may bring big work at home opportunities for Nestle or the other way around.

Cultural environment

Before Nestle start its procedure in virtually any country, it mainly concentrate on learning the society's cultural value, personal preferences and behaviors. It is because Nestle dreams its products can be accepted by the neighborhood with warm welcome and become competitive among other companies that functioning at the same level.

Technological environment

Technologies will be the essential part of Nestle R&D. Investment in technology will definitely help the business to reduce production cost and improve product quality. For instance, Nestle are suffering from technologies that permit them to use natural vegetable oils instead of partially hydrogenated fat in Maggi bouillon cubes and seasonings. With the help of technology improvement, Nestle can create much healthier products across their product range and so improve health and standard of living in a country.


We choose Nestle since it is a brilliant and popular example of where as the superior quality, branded technology and essentially selling right to consumers which whole business keeps growing rapidly. The qualified Halal status for all those Nestle Malaysia products provides assurance and pledge that Nestle products are built, imported and distributed under the strictest and tightest hygienic and sanitary condition relating, match to the Islamic trust.

The beverages offered by Nestle is Milo, a jam packed with the natural goodness of malt, skimmed milk and cocoa for this great chocolatey tastes cherished by Malaysians from all walks of life as a Tonic Food Drink. MILO 3in1 offers the great flavour of MILO in a more convenient format that easily plan your breakfast. Have a delicious goodness of a can of Milo whenever you go to keep energized. You can find original, Mocha and Hi-Cal flavours of Milo Can. Bring home the cold scrumptious tastes of the MILO Sejuk, just add cold water, it's so easy. Milo UHT, MILO with the same energy-packed, abundant & chocolatety taste also comes in handy prepared to drink packages escpecially during festivity.

Nestle has used a wide-area technique for Asia that involves producing different products in each country to provide the spot with a given product in one country such as Nestle produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for local distribution.

Product Features

Why do you like Milo? This is because Milo contain varying features and benefits, such as:

Natural Goodness~ of malt, skimmed dairy, and cocoa.

ACTIGEN-E~ a blend of 8 vitamins and 4 vitamins which helps in theoptimal release of energy.

PROTOMALT~ a malt draw out with an assortment of different Sugars thatprovides energy and nutrients your body needs

Product Branding

It is very important and vital because a brand is a term, name, indication, image, or design, or combination of these, that identifies the merchandise or services of one seller or group of vendors and distinguishes them from those of challengers. Branding helps the seller to segment market segments, helps potential buyers and consumers identify products that might benefits them. For instance, rather than just offering one standard product to all or any customers, Nestle can offer the various Koko Krunch, Honey Star, Nestle Bliss, Nescafe, Maggi, Nestle La Cremeria, Tropicana, and Set up Kat. Based on the Nestle position as "a reliable food, diet and health and fitness company", Nestle also focused on nourishing Malaysians to attain overall wellbeing and deliver their assurance to bring "Good Food, Good Life" to the folks from all walks of life.


In today's period of globalization, for consumers, rejuvenating, ready-to-enjoy drinks are part associated with an dynamic and enthusiastic lifestyle - whether at play, home or work. Heading beyond healthy refreshment, convenience, and quality, Nestle works hard to ensure that all presentation - including drinks product packaging - respects the environment. In 2009 2009, Nestle could save 58995 tonnes of packaging material (paper, board, plastic, glass, material) through its attempts to avoid food waste, promise their high quality.

The way includes many steps such as

decrease the quantity and weight of presentation materials

using recycled making material in product packaging content wherever realistic

supporting local product packaging recycling and energy restoration activities

helping customer to comprehend and take action to recycle more presentation


Label, is a part of packaging to perform several functions like recognizes the product or brand, summarize a number of things about the merchandise - who managed to get, where it was made, when it was made, its contents, how it is to be used, as well as how to use it securely, and finally is to market the brand, support its setting, and hook up with customers. Nutritionists and experts has corporate and business responsibility through food labeling, like Nestle has provided the details of the nutrients that the average person needs to take in each day, so that consumers could easily understand. The symbols on the Appendix were designed to show the quantity of diet contains of Milo.

Product Support Service

Customer service is another factor of product strategy, which may be a minor part or a significant part of customer support. Nestle, one of the world's greatest food and nourishment company, has been a popular food brand in India for nearly a century, such as head office, developing plants and branch offices spread around India. Nestle offers excellent customer support for his or her products and if you want any the help of their customer support team, pursuing information through surfing internet will help you to speak to Nestle customer care section easily and more quickly.

Approach Nestle customer-care via online

Visit http://www. nestle. in/ and you may find information about many brands and products like Dairy food and baby food, well prepared products, beverages, chocolate and confectionaries, yogurts, refreshments etc.

If you have any get, query, interest, concern or complaint, post the proper execution at http://www. nestle. in/contact_us. aspx.

You can submit Maggi related information at http://www. maggi. in/contact_us. aspx.

You can visit http://www. starthealthystayhealthy. in/, which really is a site special to moms and new blessed babies.


Place, also called syndication and it includes company activities that make the product available to focus on consumers. It must be as quickly available as you can that the clients want the product and service. Deciding on the best product route of distribution is paramount to the success of a business because it will have an effect on the sales level of an organization. This shown that choosing the place is vital and challenging for each company.

Distribution Channel

Nestle are subject matter intensive distribution in which a firm tries to put their products into outlet stores as many as possible to meet up with the needs of consumers whenever. Nestle has developed distribution channels which to be sure the provision of products that the consumers able to buy it whenever and wherever. Hence, Nestle tries to provide as much outlets as is possible and extend it. Nestle uses two types of channel intermediaries that are wholesaler and merchant which is convenient for Nestle because both stations have a great deal of advantages in high number of ordering, brief period of time to shipment, and have a large volume of customers.

Retailer and wholesaler as their intermediaries between a developer and consumer where the products from the maker to the consumer through the shop or wholesaler. Nestle as the company and send out their products to wholesaler or right to retailer then shop sells the goods and products to consumer.


Convenience Stores

A small store which is situated near a personal area or over the roadside and it usually open 24 hours such as 7-eleven, petrol stations, rest stops, etc. Consumers can buy Nestle products at the convenience stores because Nestle attempts to guarantee the option of products so that the consumers able to purchase it whenever and wherever. Consumers are more convenience and easily to buy Nestle products.


A large, low-cost, low-margin, high-volume, self-service operation designed to serve the consumer's total needs for grocery and home products such as Jusco, Tesco, Carrefour, and so forth. Supermarkets have a huge selection of products available for consumers at low prices. So, consumers can choose Nestle products which based on their needs then purchase it at low prices because supermarkets offer many selections for Nestle products compare with other small stores.


A store much bigger when compared to a regular supermarket that offers a big assortment of routinely purchased foods, nonfood items, and services such as Walmart. Superstores stock huge securities Nestle products purchasing them in large a lot. So, the costs of products are cheaper. Consumers can take benefit of these price cost savings with buy a lot of various varieties of Nestle products such as Milo, Nescafe, Nestea, etc. Consumers are keeping greatly on time, work, and money.


A product price affects wages, rent, pursuits, and revenue, of course some possible customers are considering low prices, while another portion is more concerned with other factors, such as service, quality, value, and brand image.

Nestle predicted and predicted the cost by doing gathered production as though they produced mass production so it reduced their labored cost and other cost for production process it's a big advantages and great things about the Nestle company who produce large quantity of units. While using help gathered and estimated the production Nestle Company has an inexpensive of production and high profit margin and Nestle Company selecting a price method of going rate price because their costing near the rival pricing. A good example is Nestle juices have a market leader in beverage industry and last but not least Nestle set the final pricing related to their market competitors so Nestle price don't have impact on the company coverage, and other marketing activities.

Flexible and elastic prices are the key factors of success of Nestle in global market, for example Milkpak being the greatest selling brand has been sold-out at the same price as that of other lower quality products while maintaining its quality. Their marketing strategy includes a variety of pricing strategy, and by doing this they can keep and keep their product rates at a ecological position. Prices are affordable and also have enough money to buy to virtually all types of consumers as they may have wide selection of solo product as in the case of beverages, fruit drinks are affordable to low overall economy class and expensive tin crammed drinks are also doing business in the market. Volume purchase discount is also provided at the whole sale markets as well as at the market stores and besides seasonal price variants are also seen, especially in the case of chocolates products, either by upsizing at the same price or minimizing the deal price.

Price Strategy

Price strategy is a simple, long-term pricing framework, which creates the initial price for a product and the designed path for price motions over the product life cycle. There are three type of rates strategy which is Market-Skimming Costing, Market-Penetration rates. Nestle Malaysia at the moment practicing penetration costs to market Milo which is away where Nestle charges a relatively good deal for something (Milo) at the start as a way to reach the mass market.

Establishing Price Goal

Marketers have two alternatives whether to work with profit towards income maximization or satisfactory pricing. The marketing expert have to have an understanding of fads and changes on the market place to place a goal, objective and perspective. If Nestle Milo has decided to go for earnings maximization objective, they must have the ability to afford large amount of investment. It isn't difficult to follow competitors pricing nonetheless they may not hold the better to think about cost, demand and changes in Product Life Routine. So they need to require a careful and thoroughgoing analysis before setting the price.

Price Technique Diagram


Product Package Pricing

In United States and Canada, Hagen-Dazs products are produced by Nestle and come in a number of traditional flavors. The exemplory case of price bundling is Haagen-dazs, a firm which is famous as ice cream which is focusing on consumers who can pay high price to high quality. Usually it markets one scoop of glaciers cream as 2. 75 Euros and espresso as 1 euro but if you purchase both two products, you can obtain it with 3 Euros. Consumer can buy package with relatively low enough price, which firm can take full advantage of its revenue and can promote the sales of products. Furthermore, this plan is usually found in season seat tickets, buffet dinners, deals of stereo system equipment, and deals of options on cars and so forth.

Customer Value-Based Pricing

Value-based pricing doesn't invariably suggest charging low prices but uses buyers' perceptions of value as the key to pricing. Somewhat, it means costing the various products in your collection predicated on what they are worth to customers -- relative to fighting products. Nestle will pass on price increases, and keep their price premiums, and even during downturn. During a downturn, some of your consumers may purchase or consider the lower-priced competition.

Discounts and Allowances Pricing

Nestle Pure Life (NPL) offers the Trade Savings to it customers who pay their monthly bill early, volume buys, and off-season buying. Trade discount rates and allowances sometimes called cash discount which is deductions from the list price wanted to buyers in obligations for marketing functions the buyer will perform. Besides that, the types of these functions are promoting, holding and selling the merchandise.


There are 4 sets of parameters in marketing combination and campaign is one of them. Promotion identifies activities that communicate the merits of the product and persuade aim for customers to buy it. A couple of 5 major advertising tools used in promotional strategy that happen to be advertising, sales campaign, persona selling, pr and direct marketing. These tools help the marketers to see consumers about the features, benefits, and the existence of the products. It also persuades and reminds audience of a product in order to impact their view.

Nestle use promotional strategy as an idea for the components of promotions to promote their products. This plan's main function is to provide competitive benefits over the competition to convince concentrate on customers about their goods and services. The competitive advantages is set of unique features of company and its own product identified by the target market as significant and superior to the competition. For instance, Milo convinced their customer that children will be more energetic if indeed they take in Milo.

Nestle use pull strategy as their campaign mix strategies. Yank strategy, which stimulates consumer demand to acquire product distribution. For instance, the promotional initiatives and promotion of Milo on children television set programs are likely to "pull" demand from children and parents.

Sales campaign is a short-term activities or materials to encourage the sales of a product or service. Sales advertising includes promotion, sweepstakes, refund or screen. Nestle used consumer campaigns as advertising tool to perform sales promotion targets. In consumer campaigns, price packages is offer consumers saving off the standard price of the merchandise. For good examples, Nestle have make a advertising "Buy Milo 400g free 50g", they'll get free 50gm with every purchased of Milo 400gm pack.

Furthermore, advertising specialties or promotional products are imprinted with advertiser's name or brand that given as gift ideas to consumers. For instance, Nestle have made a campaign "Free 1 Milo sporty tumbler with every purchase of Milo 1 kg pack. Contests, sweepstakes, and game titles are gives the chances to the consumers to succeed something. For example, Nestle have made a competition "Nestle Drumstick Home of Excursion" to provide consumers chances to gain a total of cash prizes RM 35, 000.

Beside the communication above, advertising is any paid form of impersonal presentation of product that is sent to prospects by recognized sponsor or company. Advertising include papers, television, billboards, or Internet. The communication often creates creative slogan, not merely about advertising only to make certain consumer will remember Milo. With the increasing fragmentation of traditional mass media choices, Nestle are employing new solutions to send their advertising to consumer, such much like interactive video technology located in departmental stores and supermarkets and Websites.

For example, Nestle applied tv sets for Milo product, which in the commercial break is about parents provides Milo for their children and the children are more energetic in their daily live after consume Milo. Using outdoor advertising, Nestle Milo is well known for their dedication and sponsorship attempts for just about any sport happenings in Malaysia specifically for any primary and secondary school. Nestle collaborates with Ministry of Sports and Youth to be able to organize national and international sport event and giving out free Milo refreshments in every event.

Using internet, Nestle have their own website for every single countries. Nestle also created websites for every product that they sell. It really is proven so that consumer can certainly find the info about their product and also as medium for consumer to leave their suggestion in order to boost their products. Using printed out advertising, since Nestle's main target market for the merchandise are children, therefore they normally helps bring about Milo in children's magazine and sponsor sport column in the magazines. Posters are usually sent out to all wholesaler and vendors who are available Milo which can help people to realize the places that do sell Milo.

Nestle used institutional advertising as promotional goals. Institutional advertising or advocacy advertising is to improve the image of the company or the industry as goal of the promotion plan. Nestle really helps to develop the well balanced and science-based open public health regulations with nationwide and international health organizations. They support the development and execution by government authorities of strong countrywide legislation giving result to the guidelines and aim of the WHO Code.


There are some tips to help Nestle to boost their products and improve their performance

Cost of raw materials

In the past few years, the price of recycleables has been continually increasing which is leading to increased creation costs. Nestle can get local farms as their recycleables for the creation of the company's products to resolve the condition of increasing cost of recycleables. This isn't only in a position to reduce their creation costs, but also increase the company's earnings, thus contributing to agricultural development in Malaysia.

Invest on Research and Development

Nestle should be focused on that to develop new product. Because the company has research and production of products to meet the nutritional needs of newborns, so Nestle should develop and improve their product such concerning enrich the vitamin supplements of the product to be able to provide children and even mothers their daily needs of calcium. Because moms' health affects the babies' health, so Nestle can research and develop some products to help moms uptake required nourishment. Especially now the likelihood of children suffer from diabetes and heart disease is increasing, they need more care and attention than before such as absorption of enough diet and natural vitamins.

Improve the merchandise package

Nestle must strive the improvement with their company's presentation. First, they should be understand the customers' mind and find out what the client wants or likes. Creating a good design of product packaging that can meet the customer requirements. In addition, the information on the package must plainly because that can make customers to grasp and understand easily. A good packaging design is not only able to draw in more customers, but also increase the company's profits and loyalty of customers.

To prevent unethical marketing practices

Nestle has drawn flak for its unethical marketing techniques also to prevent it since it would adversely impact the business's brand image. For example, the situation of baby food in expanding countries by advertising that the infant method was superior than breast milk and this case has weaken the brand image and have an impact on the reputation of Nestle. Therefore, Nestle must avoid this case from going on again and the business should adopt the required measures to increase the company's brand image.


Nestle has been so successful over the past century is basically because they have develop the fit and right marketing strategy for his or her company. Nestle is segmented by using geographic, demographic and psychographic factors. Nestle products mainly available for folks who lives in the locations. Nestle demographic factors include income level and education level whereas psychographic factors include personality, interpersonal class and life style. Nestle seeks on consumers who able to spend the money for price of the products and also have some understanding of healthy diet and lifestyle. Besides that, Nestle has been focusing on on people that are very enthusiastic, active and desires to have a better health issues.

Besides that, Nestle Malaysia did a great deal of campaign activities through the advertisements in television, imprinted media, outdoor marketing and internet, sales promotion, public connection and promotion. Those tools are practice to concern about the modern culture that it trusted by the stakeholder and build its brand consciousness.

Nestle uses two types of route intermediaries that are wholesaler and merchant to develop their distribution channel. Besides that, I realize that Nestle tries to provide as much outlets as is possible and expand it to meet consumers' needs during do that assignment. Nestle also offers located convenience stores, supermarket, and superstores as their location to meet up with the needs of consumers and able them to buy their products whenever and wherever. Selecting the right products route of distribution is very important to every company.

Nestle has became well-known in today's era of globalization because they have provided us scrumptious and healthy products like Milo, Maggi and ice-cream. Besides that, while carrying out this assignment, I become familiar with that Milo not only a tonic food drink, but by using the Milo dishes, we can prepare a Milo Brunch Tremble and Milo Toast with the Milo powder. Nestle company not just providing their varies kind of products, they are also trying to keep the environment green by using recyclable presentation. Besides that, I adore Henri Nestle, the founder of Nestle Company so much, because he is a successful businessman that has given me a great deal of effort to review for my future as students of International Business.

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