Nestlé

Noran Ashraf Abdo Ali / 221100708 / logistics & SCM

Table Of Content
Introduction..................................................................................................
..…………. 3
B2B Market Segmentation &
Targeting....................................................................... 3
Competitive Analysis Using Porter’s Five
Forces......................................................... 4
New Product Development
Strategy........................................................................... 6
B2B Digital Marketing
Strategy...................................................................................
Customer Relationship Management (CRM)
Plan.....................................................
B2B Supply Chain & Logistics
Optimization..........................................................
AI & Automation in B2B
Sales................................................................................
B2B Branding & Positioning
Strategy......................................................................
B2B Personal Selling Training
Program..................................................................
B2B Market Entry
Strategy......................................................................................
B2B Pricing Model
Simulation.................................................................................
Data Analytics for B2B Sales
Forecasting................................................................
Case Study: B2B Content Marketing
Success...........................................................
B2B E-Commerce Platform
Development................................................................
Customer Satisfaction & Retention
Analysis.............................................................
Conclusion....................................................................................................
...........
Reference.....................................................................................................
.............

Introduction for Nestlé

Nestle is the largest food company in the world, in terms of revenue. It is

a Swiss Company established in 1866 by its founder Henri Nestle. While
its main foray is foods and drinks, it has hundreds of products, nearly
2000. Some of its most famous products and brands include Maggi, Kit
Kat, Nespresso, Nescafe, etc.
The overall turnover for Nestle was approx 90 billion Swiss Franc in 2016.
It operates 418 factories in 86 countries, employing nearly 339,000
people worldwide. Its products are available in 191 countries of the world.
Nestle also is a leading researcher in the field of nutritional sciences. It
invests nearly 1.5 billion Francs yearly on research and development.
Currently(October 2018), Nestle has 17 R&D and Testing centres
worldwide.

B2B Market Segmentation & Targeting

1. Industry Type (NAICS/SIC Codes):

Industry: 2023—Dry, Condensed, and Evaporated Dairy
Products
  Focus on partnerships with large distributors and Offer bulk
purchasing discounts
Industry: 311514 - Dry, Condensed, and Evaporated Dairy
Product Manufacturing
 Focus on partnerships with large distributors and Offer bulk
purchasing discounts
Industry: 311513 - Cheese Manufacturing
 emphasizing quality and innovation in cheese products
Industry: 2022—Natural, Processed, and Imitation Cheese
 Develop co-branding opportunities with artisanal cheese
producers.

2. Company Size
Large corporations Require enterprise-level solutions for supply
chain management, distribution, and marketing.
small businesses. Often seek cost-effective solutions for marketing,
product sourcing, and distribution.
3. purchase behavior.
price-sensitive buyers : Nestlé addresses this segment by offering
affordable product lines and leveraging economies of scale to keep
prices competitive
Quality focused buyers :The advantage of a product, quality, how
fresh it matches the expectations of customers, . Nestlé caters to this
segment by emphasizing the premium quality of its products, such as
its Nespresso coffee line or high-end confectionery offerings.

Nestle Porter Five Forces Analysis

1. Porter’s Five Forces Mode

Threat of New Entrants:

They have a significant market share in beverages, pet care and nutrition,
the top product categories of Nestle by sales. Competition is high and
there is no clear market leader in these segments. The margins per unit
are also low due to aggressive pricing strategies adopted.
Threat of Substitutes:
Obesity and a desire for appearance have led to increased focus on food,
with trends favoring whole natural foods and climate activism against
plastic packaging. Lockdowns have reduced the need for convenience
foods, but Nestle's focus on healthy eating and sustainable practices like
"Lean Cuisine" and "MarketPlace" have changed the narrative. However,
cheaper locally owned brands with local flavors pose a threat to Nestle.
Bargaining Power of Customers:
Nestle distributes its products through various retail and online channels,
including agencies, distributors, wholesalers, retailers, and salesforce.
Consumers have limited bargaining power due to numerous comparable
options and no switching costs. Retail chains can shift to competitors'
products if unsatisfied with margins, but not carrying Nestle's products
directly impacts their revenues. Some chains also sell their own products.
Bargaining Power of Suppliers:
Nestle relies on nearly 16,000 suppliers worldwide, each mandated to
comply with its responsible sourcing standards. As a large buyer, Nestle
has the power to negotiate favorable terms with these suppliers.
However, the increasing popularity of food trends demands transparency
and accountability at every step of the supply chain, raising costs for
finding and validating compliant suppliers. Established suppliers offering
niche products, like 100% organic ingredients, might have the upper
hand. For example, Nestle committed to using 100% RSPO certified palm
oil by 2023, but faced challenges in authenticating the oil and tracing it
back to the plantation.
Competitive Rivalry:
Nestle ranks first among FMCG companies with $93,610 million in sales
worldwide. The top five include P&G, PepsiCo, Unilever, and JBS. Nestle
dominates beverages, petcare, and nutrition, but faces high competition
and low margins due to aggressive pricing strategies. The fast-growing
FMCG industry offers multiple product lines, including Celltrient, an anti-
ageing range, and LiveClear, the first anti-allergy cat food. Consumers
can switch brands at no additional cost.
 2. pricing strategies
Value-Based Pricing:
Value-based pricing focuses on setting prices based on the perceived
value of a product rather than solely on cost. Nestlé employs this
strategy by emphasizing quality and innovation in its products.For
instance, premium brands like Nespresso position themselves as
high-quality coffee options, allowing Nestlé to command higher
prices due to the perceived value among consumers.
Competitive Pricing:
Nestlé closely monitors its competitors’ pricing strategies and
adjusts its own prices accordingly. This approach ensures that Nestlé
remains attractive to consumers while maintaining market
competitiveness. For example, during promotional periods, Nestlé
may lower prices on popular items like Maggi noodles to match or
undercut competitors.
Psychological Pricing
Psychological pricing leverages consumer behavior insights by
setting prices that have a psychological impact on buyers. For
instance, pricing products at $4.99 instead of $5.00 can create a
perception of affordability where small price adjustments can
significantly influence purchasing decisions
Discount Pricing:
Seasonal promotions and discounts can drive sales volume
significantly.

Nestlé often runs promotional campaigns during holidays or special

events, offering discounts on popular products like chocolate bars
during festive seasons, which boosts sales while attracting price-
sensitive customers.
3. market positioning plan
Differentiated Targeting:
Focus on health-conscious consumers and families looking for nutritious
options for examples their 'Gerber' baby food line, they are specifically
targeting health-conscious parents who want nutritious food for their
infants. Nestlé’s ‘Boost’ range is specifically tailored for the aging
population, targeting the senior demographic with a high-protein drink
that caters to their unique nutritional requirements.
Brand message:
Nestlé's positioning strategy aims to keep them at the top of consumers'
minds when it comes to quality, nutrition, health, wellness, innovation,
variety, and sustainability. By focusing on these elements, they manage
to maintain their position as one of the world’s leading food and beverage
companies.
Promotional Strategies:
Leverage digital marketing and social media to engage with consumers
and build brand loyalty.
Distribution Channels:
Strengthen both traditional retail and e-commerce channels to enhance
accessibility.

New Product Development Strategy

Reference
 Nestlé Market segmentation, targeting, and positioning. (n.d.).
Edrawmind. https://www.edrawmind.com/article/nestle-
segmentation-targeting-and-positioning.html
 Pierone, J. (2023, November 21). NAICS Profile Page. NAICS
Association. https://www.naics.com/company-profile-page/?
co=12868
 Kumar, A., NOIDA, G., Gangal, D. V. K., & SINGH, K. (2011).
Advertising and consumer buying behaviour: a study with special
reference to Nestle Ltd. International Journal of Research in
Commerce & Management, 2(10).
 file:///F:/Downloads/
Customer_Satisfaction_and_Brand_Loyalty_A_Survey_o.pdf
 Team, M. S. (2023, October 2). Nestle Porter Five Forces analysis.
MBA Skool.
https://www.mbaskool.com/five-forces-analysis/companies/18372-
nestle.html
 Lau, S. (2025, January 10). Nestlé pricing strategy: balancing
quality and affordability - NewswireJet. NewswireJet.
https://newswirejet.com/nestle-pricing-strategy/
