Nestlé. Strategic marketing management

Term Paper, 2011

13 Pages, Grade: A



In this assignment there is a discussion of strategic marketing management that how it plays an important role. Strategic marketing tools are essential to play game; there are different strategies and techniques of marketing. There is a best fit relation between corporate strategy and marketing strategy. There is a discussion of different analysis model for the positioning and growth. Nestle has been used an example of strategic marketing management because of its standard and leadership in food industry.


Marketing is a game and there are strategic tools which are needed for playing the game between buyers and sellers where they exchange values for the satisfaction which results in profitability.


There are four traditional strategic P’s (product, price, place and promotion) and three extensions strategic P’s (people, process and physical evidence). In strategic marketing the traditional P’s are used for Goods and extensions are Service P’s. To manage these P’s marketers use four strategic C’s (customer solution, customer cost, convenience and communication). Strategic marketing is a holistic marketing concept where four P’s and four C’s are integrated. It focuses on customer, core competencies and collaborative network. Strategic marketing is a long term and pre-nurtured plan for contingency process (Kotler & Keller, 2006).

For example, NESTLE believes in long term marketing planning and it heavily emphasize on four P’s. In Product, they are offering it as a safe and healthy product which is known for its quality. In Price, it has a single price and it follows non price competition strategy. In Place, timely supply is important and it delivers its products on time. In promotion, it uses various sources like magazines, billboards, newspapers, radio and TV to ensure that every consumer has an image of Nestle in his mind (Etzel, Walker & Stanton, 2000).


For the development of marketing strategies and plan, an organization goes through the following process;

a. VMV: First, an organization defines its V-values, M-mission and V-vision (Kotler & Keller, 2009). Nestle values are to create long term values for its customers and shareholders means creating a shared value. Nestle mission is to become a leader in food industry by continuous innovative discoveries which promotes better health. Nestle vision is to serve its customers with nutritious and tasty food which fulfill their needs and are according to their preferences (Nestle, 2010)
b. GOALS AND OBJECTIVES: Secondly, an organization defines its goals and objectives clearly. Nestle goals are to rule the market as a food leader, to make people more demanding for its products which will create a competitive advantage and profitability and also it want to make its remark in financial performance (Nestle, 2010)
c. EXTERNAL ANALYSIS: Now organization carries out PEST (political, economical, social and technological) and EL (ecological and legal), it is an industrial analysis. These are known as externalities. These are for defining the organization (Kotler & Keller, 20069)
d. INTERNAL ANALYSIS: Internal analysis is carried out by SWOT (strength, weakness, opportunity and threat) analysis. Its basic rule is to convert T into O and then into S and in same way convert W into O and then into S (Peter, & Donnelly, 2007).

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Nestle strengths are its diversified portfolio, strong brand equity, great market share and high quality. Its weaknesses are fragile distribution channels and communication. Its opportunities are to more diversify its product line, converting weaknesses into strengths and more enhanced promotional strategies. Its threats are its competitors and uncertainty (Robbins & Coulter, 2001).

e. TOOLS: Organization makes strategies for seven P’s
f. STRATEGIC ANALYSIS: Nestle uses different strategies for improving the quality of its products. It uses BCG matrix, SMART analysis, porter model etc for strategic analysis of its position in market (Webster,2009)
g. MEDIA PLAN: Now an organization promotes its products through media. Segmentation Targeting and Positioning plays an important role. Media plan must be according to AIDA (Kotler & Keller, 2009).
(Source: Kotler & Keller, 2009)
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h. DISTRIBUTION CHANNELS: Nestle channel of distribution is as follows;
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(Source: Kotler & Keller, 2009)
i. FINANCIAL PLAN: This is the last step here organizations make financial statements to measure its growth (Kotler & Keller, 2009).


Excerpt out of 13 pages


Nestlé. Strategic marketing management
The University of Liverpool
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ISBN (eBook)
ISBN (Book)
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nestlé, strategic
Quote paper
Kelvin Cherry (Author), 2011, Nestlé. Strategic marketing management, Munich, GRIN Verlag,


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