An Analysis of the Marketing Concept of Nestle

3320 words 14 pages
Nestle is the world's leading nutrition, health and wellness company and its mission of "Good Food, Good Life" has for objective to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night (Nestle, 2010). Having more than 450 manufacturing facilities in over 80 countries spreading over six continents (Mattera, 2010). Nestle believes that food and beverages play an increasing role in people's lives, not only in terms of enjoyment and social pleasure, but also in terms of personal health and for nutritional reasons (The World of Nestle, 2006).
1. Identifying two examples of marketing concept in Nestle

Before any
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Whereas the macro-environment includes the major forces prevailing in the external environment over which the organisation does not have any control.

Nestle's Micro Environment

In Nestle, the microenvironment includes Suppliers, Customers, Distributors & Intermediaries and competitors.

(a) Suppliers. Nestle relies to a varying degree on the sourcing of raw materials from around the world, which exposes the Group to price fluctuations and supply uncertainties that are subject to factors such as commodity market price volatility, currency fluctuations, changes in governmental agricultural programs, harvest and weather conditions, crop disease, crop yields, alternative crops and by-product values, according to Nestle Holdings Inc. (2006). Nestle works Business Continuity Plans regularly to mitigate against any event of disruption in suppliers (Nestle's Annual Report, 2012).

(b) Customers. The whole company is dependent on consumers choosing Nestlé products in preference to competitors' products. Every day Nestlé sells over a billion products and, according to Nestle records, individual consumer transactions give the Company total annual sales of more than CHF 90 billion* (USD 70 billion). Nestle invests heavily upon building the greatest possible consumer trust in both the Company and its products. (The World of Nestle, 2006)

(c) Distributors & Intermediaries. Nestlé has factories


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