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30 | Page 5. RESULT AND ANALYSIS 5.1 Questionnaire Collected data The total respondents that did the survey consist of 98 male and 102 female, this is using random sampling that spread out in big cities in Indonesia. Most of the ages are 17-25 years old which means teenagers with 47.5%. Secondly is 26-35 years old 29% , followed by 36-50 years old 13%, 50> years old 5.5%, 13-16 years old 4.5% and last <13 years old 0.5%. Figure 5.1.1 Occupation How familiar are you with Nestle products? Figure 5.1.2 Awareness of product I have never heard of them 0.5% I have heard of them but never buy their product 4% I buy their products occasionally 53.5% I buy their products on a regular basis 42% Student 27% Housewife 14% Employee 35% Entrepreneur 21.5% Retired 1.5% Other 1%

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Page 1: 5. RESULT AND ANALYSIS - library.binus.ac.idlibrary.binus.ac.id/eColls/eThesisdoc/Bab5/CHAPTER 5-2016-IB-0031.pdf · other hand, there are also some brands that people less aware

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5. RESULT AND ANALYSIS

5.1 Questionnaire – Collected data

The total respondents that did the survey consist of 98 male and 102 female, this is using

random sampling that spread out in big cities in Indonesia. Most of the ages are 17-25 years

old which means teenagers with 47.5%. Secondly is 26-35 years old 29% , followed by 36-50

years old 13%, 50> years old 5.5%, 13-16 years old 4.5% and last <13 years old 0.5%.

Figure 5.1.1 Occupation

How familiar are you with Nestle products?

Figure 5.1.2 Awareness of product

I have never heard of them 0.5%

I have heard of them but never buy their product 4%

I buy their products occasionally 53.5%

I buy their products on a regular basis 42%

Student 27%

Housewife 14%

Employee 35%

Entrepreneur 21.5%

Retired 1.5%

Other 1%

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Section B

What products of Nestle that you know? What products of Nestle you regularly consume?

(Left is percentage of people know the product, right is the percentage of which product

people regularly consume)

FOX'S Candy 85% 10.5%

KITKAT 93% 30.5%

POLO 80% 21%

MILO 94.5% 44%

Nestlé CRUNCH 57% 6%

NESCAFE 95.5% 63.5%

NESTEA 93.5% 56%

Nestlé CERELAC 49% 8.5%

Nestlé FITNESSE 41% 6.5%

Nestlé KOKO KRUNCH 88.5% 36%

Nestlé HONEY STARS 86.5% 29.5%

Nestlé CORNFLAKES 79% 27%

Nestlé COOKIES CRISP 58% 6.5%

CARNATION (Condensed Milk) 47% 11.5%

NESTLÉ CAP NONA (Condensed Milk) 51.5% 13%

BEAR BRAND 86% 37.5%

NUTREN 28.5% 13.5%

PEPTAMEN 26% 10.5%

Nestlé Mineral Water 92.5% 73%

Figure 5.1.3 Percentage of Nestle Popular and Highly Consume Products

The most popular brand of Nestle product are FOX’S candy, KitKat, Polo, Milo,

Nescafe, Nestea, Koko Crunch, Honey Stars, Cornflakes, Bear brand, and Nestle mineral

water which more than and almost 80% respondent know those particular products. On the

other hand, there are also some brands that people less aware such as Cerelac, Fitnesse,

Carnation, Cap Nona, Nutren, and Peptamen. There will be an explanation toward the

strategy is applied by nestle toward those products in the market. Furthermore, these are some

product is highly consumed by consumer such Nestle mineral water, Nescafe, and Nestea.

The percentage is above 50%.

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Where have you seen advertisement for Nestle?

Figure 5.1.4 Advertisement

Which of the following attributes that attracts you buy Nestle products?

Figure 5.1.5 Attractive attributes

At first, the result for the advertisements of Nestle Company is mostly seen in the

television which 91.5%. Such newspaper and public transportation are very low which is

14% and 15%. Moreover, only 2% of the respondents never seen any ads of nestle which

mean the consumer mostly realize and recognize the Nestle advertisement, products and their

brands. Secondly, according to the graph, the first attributes that attracts consumer to buy

Nestle products are Nutrition, Health and Wellness and Quality Assurance and product

safety. Furthermore, the second attributes that attracts consumer to buy nestle products are

Affordable price and attractive advertising and relatives references.

Billboard 43.5%

Magazines 31%

Newspapers 14%

Online 41%

Public Transportation 15%

Radio 29.5%

Television 91.5%

I have never seen any of their Ads 2%

Other 0%

Nutrition, Health and Wellness 82%

Quality Assurance and product safety 81.5%

Affordable Price 49%

Positive Brand Image 53.5%

Attractive Advertising 38%

Relatives References 35.5%

Other 1.5%

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Overall, are you satisfied with your experience using Nestle Product?

Figure 5.1.6 Satisfaction Degree

How likely would you be recommending it to other?

Figure 5.1.7 Possibility for Recommendation

Of your last 5 foods and beverages purchases, how many were Nestle Products?

Figure 5.1.8 Quantity of Last Item Purchases

Extremely satisfied 28%

Quite satisfied 67.5%

Slightly satisfied 0.5%

Not satisfied at all 0.5%

Extremely likely 30%

Quite likely 57.5%

Slightly likely 9%

Not at all Likely 1%

0 33.5%

1 43%

2 14.5%

3 5%

4 1%

5 1%

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From the figure 5.1.4, we can know that most of the respondents are satisfied with the

quality of Nestle product. Even the consumers have extremely satisfied with Nestle product.

Only 0.5% consumer slightly satisfied and not satisfied at all. It means that the products of

Nestle are truly good and could satisfy the consumer. Satisfaction of the consumer is one of

the parameter that a company is success or not in their marketing strategy. It relates to the one

of the 4P’s (Product) in Marketing Mix (marketing strategy).

Secondly, from the figure 5.1.5, we tend to know if the satisfaction of the consumers

can be marketing to others by the relative’s references. Even though, from the previous graph

about which attributes attract people to buy is 35,5% (relatives references) is quite low, but

most of the respondents who consume Nestle product and satisfied with its quality tend likely

to introduce the nestle product to others even there are some people lovely to recommend it to

others. Only 10% of people do not really want to recommend Nestle products.

The last pie chart shows that at least people who go to buy food of beverages in the

market have 1 Nestle products of their last 5 items purchases. In addition, there is also in last

purchases some people buy 2 products of nestle which 14.5%. On the other hand, that figure

also shows that big percentage of 0 is quite high. The competition on the market is high and

33.5% of people choose another brand or products as their item purchases.

In summary, this 3 pie chart are connected to each other in order to determine how the

product of Nestle in the market is. This is only the little bit overview of Nestle products by

looking to what consumer thought and what consumer will do toward the product of Nestle.

This is supportive information that we can gather from the consumer. Not only the inside of

the company but the real thought of consumer can be a good information to be concerned to

determining which a successful marketing strategy.

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Section C

The following number indicates your answer using 4 scales.

1. = Strongly Disagree

2. = Disagree

3. = Agree

4. = Strongly Agree

Products is very Innovative and various

Figure 5.1.9 Product Innovative and Various

In this section C, the survey is conducted with 4 bullet points that tend to find out if

people strongly disagree, disagree, agree, and strongly agree. The survey is designed to avoid

the respondent escape to show his/her true attitude. In addition, this survey can prove the

truly of consumer’s feelings or thought. In figure 5.1.7 Product Innovative and Various,

people mostly answer agree. Nestle itself have quite various brand of nestle which is 19

differences products in Indonesia and good product development for each of the brand. Some

of the products are adopted in different country; it means that in other country they have more

brands or different brands.

Furthermore, in one brand it has innovative variation of taste of one brand, for

example, Nescafe, it is a Coffee products and it has various tastes such Nescafe classic,

Nescafe tubruk, Nescafe Mochaccino, Nescafe Cappucino and so on. It has different tastes in

different countries, in other country there is no nescafe tubruk. It is adopted and sold only in

Indonesia. On the other hand, the Nescaffe Cappucino is sold internationally so there are

some brands that is sold by nestle internationally which is available in every countries. So,

most of the people agree that Nestle company is very various and innovative.

2.5% 1. = Strongly Disagree

15% 2. = Disagree

66% 3. = Agree

14% 4. = Strongly Agree

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Concerning in Safety and Wellness of their quality

Figure 5.1.10 Safety and Wellness of Their Quality

The Nestle is focusing the product in the Quality of the products. Mostly people agree

and strongly agree with that statement. It means that consumer thought of the Nestle is very

well and safety product to be consumed hence becomes one of the competitive advantages of

Nestle Company. In this graph, respondents extremely agree is bigger than just agree with the

Quality and Wellness of the Nestle products. Additionally, it becomes a parameter the

products is success in the market and can show a positive reviews and thought by the

consumers.

Popularly positioned products in market

Figure 5.1.11 Positioning in Market

The Quality of products is related with position in the market. The position products

are not only just the placing of the product in the market but also in the consumer mind. The

positioning of the products in the mind of consumer is also important. The consumer will

think first about nestle products or other brands. Consumers mostly agree with Nestle

products are popularly positioned in the market. It means that people can realize and know

about the nestle products when come to market.

1% 1. = Strongly Disagree

2% 2. = Disagree

36% 3. = Agree

58.5% 4. = Strongly Agree

3% 1. = Strongly Disagree

12% 2. = Disagree

64.5% 3. = Agree

18% 4. = Strongly Agree

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Positive brand image, value and attitude

Figure 5.1.12 Brand image, Value and Attitude

The positive brand image value and its attitude can be an overview how nestle

maintain their brand image; deliver the value and attitude of their product. By delivering the

best value of the products to the consumer will create positive brand image and attitude is a

role of the company to keep their promises and their service to the consumers. In the graph,

the respondents agree and strongly agree with the positive brand image, value and attitude

which means they definitely do well toward the consumers that create the satisfaction too for

consumers.

The price is very competitive

Figure 5.1.13 Competitive Price

The pricing strategy of nestle products is also categorized as competitive. 60% of

respondents agree that the price is competitive with other products or brands. In the market,

price is one of the crucial elements to attract people buy the product. In Figure 5.1.3

Attractive attributes, 49% believe that Nestle product has affordable price and become one of

the attributes that attract people to buy their product. Besides concerning the quality of the

product, the price is also competitive than brings nestle products is a target by the consumer.

1% 1. = Strongly Disagree

5% 2. = Disagree

43% 3. = Agree

47.5% 4. = Strongly Agree

1% 1. = Strongly Disagree

16.5% 2. = Disagree

60% 3. = Agree

19.5% 4. = Strongly Agree

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Attractive packaging of their product

Figure 5.1.14 Packaging

The attractive packaging also influence people to buy, it becomes promotion element

that attract people to buy the products. The packaging of nestle is reflecting and representing

pureness of the product. They use the picture that emulating the quality of the product. The

mind-set of consumer looks for the pureness and wellness of the product. It is a marketing

strategy to create an attractive packaging and most of the respondents agree that it fascinate

them to buy Nestle products.

Nestlé’s advertising and Promotion is effective to impulse buyer

Figure 5.1.15 Promotion

The promotion is one of the marketing mix portions to stimulate consumer to buy a

product. Nestle also heed the advertising in their marketing strategy. They promote their

products through several medium. As we discuss before in Figure 5.1.2 about the

advertisement, that aiming to which media could be realized by the consumer. In here, we

tend to know, if the advertisement is effective to impulse consumer to buy Nestle product or

not. If people realize and pay attention to the advertisement in some medium, opportunity

they attracted and buy the products is higher. As the result, most of respondents who saw the

advertising, they agree that it is effective to make them buy Nestle products.

0.5% 1. = Strongly Disagree

13% 2. = Disagree

53% 3. = Agree

31% 4. = Strongly Agree

1% 1. = Strongly Disagree

16% 2. = Disagree

58% 3. = Agree

21.5% 4. = Strongly Agree

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Reachable or Easy to find

Figure 5.1.16 Reachable

By this question, we tend to know how company distributed their product, supply

chain management and placing in the market. Most of the respondents is agree and strongly

agree that the product of nestle is very easy to find. It means that products of Nestle are

distributed well and every people can reach or buy their product even in the small region.

Indonesia is an archipelago country which consists of islands. They have to distribute the

product in so many places. In result, they success placing and distributing their products

hence in every single place we can find at least one product of Nestle even in small vendor.

5.2. NESTLE Marketing Strategy Analysis

Nestle company started their business of food and beverages industry in Indonesia

since 1910. In 1930, Nestle has a big market in Indonesia for the milk product. They already

had factory long time ago and they always concern about the quality of their products. Nestle

company was looking to the long term goal which can be seen by the company effort to get

the trust from the consumer about their product’s quality strategies. Due the dynamic

situation and environment, the company should develop their products more and add more

strategies in order to stabilize the company and keep sustain. The food and beverages has

reached great height in several years and they introduce more varied products and brands,

strong market standing and market share is growing rapidly.

1% 1. = Strongly Disagree

1.5% 2. = Disagree

43% 3. = Agree

51% 4. = Strongly Agree

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Nestlé is responsible for providing consumers with easily accessible, highly nutritious

products at affordable prices. Therefore, we developed the business model ‘Popularly

Positioned Products' (PPPs), to meet the specific needs of consumers in developing

countries like Indonesia. PPPs offer consumers high quality, appropriately-packaged food

products that provide nutritional benefits at affordable prices. PPPs will continue to be one of

the key factors for the future growth of Nestlé. It is a Marketing strategy model that is

developed by the Nestle company in food and beverages industry.

To ensure affordability, PPPs are developed specifically so consumers can buy them

on a regular basis, for example, by packaging products in daily serving sizes. To further

minimize costs, these products are made using domestic raw materials. In Indonesia, Nestlé

buys fresh milk from 33.000 dairy farmers in East Java, where Nestlé provides technical

assistance to help farmers improve the quality, quantity and efficiency of their fresh milk

production. Nestlé also assists these dairy farmers to install biogas units which reduce

environmental impacts while also providing an alternative source of energy. To meet new

consumers, Nestlé Indonesia uses a variety of distribution channels at more than a million

outlets across Indonesia, including markets and street vendors. PPPs are a source of income

for each retailer and shop owner, who in turn, helps to create more jobs.

Frits van Dijk added: "PPPs make a big difference in countries like Indonesia, where

better nutrition not only has a positive impact on health, growth and education for low-

income consumers, but also for the local economy. PPPs are a concrete manifestation of the

principle of Creating Shared Value, part of our business strategy: In order for Nestlé to

achieve long term success, Nestlé must not only create benefits for its shareholders, but also

for the community, from farmers to workers and consumers. "

From this research of case study of Nestle, I found that Nestle create marketing

strategy model such PPP’s. By exploring the Company and we found that Nestle Company

use one of this marketing strategy despite their 4 competitive advantages (unmatched product

and brand portfolio, unmatched geographic presence, Unmatched R&D capability, People,

culture, values and attitude). PPP’s is the marketing strategy which one of the main growth

drivers in their corporate business strategy.

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5.3 NESTLE Corporate Strategy Analysis

Figure 5.3 Corporate Strategy of Nestle

These are the strategy that is applied by the Nestle Company until nowadays that keep

this company sustain and can compete with other big companies. The objective is to be a

recognized leader in Nutrition Health and Wellness, and the industry reference for financial

performance, trusted by all stakeholders. They believe that Success Company is not just

about size; it is also about attitude. Trust is also about attitude and we realize that trust is

achieved by only over a long period of time and consistently delivering the promises. These

objectives and behaviors are encapsulated in the simple phrase, “Good Food, Good Life”, a

phrase that sums up our corporate value.

The Nestle is intended to create alignment for our people behind a cohesive set of strategic

priorities that will accelerate the achievement of our objectives. These objectives demand

from our people a blend of long-term inspiration needed to build for the future and short-term

entrepreneurial actions, delivering the necessary level of performance. There are some drives

that are applied by the company.

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Competitive advantages

Unmatched product

and brand portfolio

Unmatched R&D

capability

Unmatched

geographic presence

People, culture,

values and attitude

True competitive advantage comes from a combination of hard-to-

copy advantages throughout the value chain, built up over decades

and become the foundation of the products itself.

There are relates between great products and strong R&D, between

the broadest geographic presence and an entrepreneurial spirit,

between great people and strong values.

Growth drivers

Nutrition, Health and

Wellness

Emerging markets

and Popularly

Positioned Products

Out-of-home

Premiumisation

These four areas provide particularly exciting prospects for growth.

They are applicable across all our categories and around the world.

These drivers applied in every country.

Everything we do is driven by our Nutrition, Health and Wellness

agenda, Good Food, Good Life, which seeks to offer consumers

products with the best nutritional profile in their categories

Operational pillars

Innovation &

Renovation

Wherever, whenever,

however

Consumer

engagement

Operational

efficiency

Nestlé must excel at each of these four inter-related core

competences. They drive product development, renewal and quality,

operational performance, interactive relationships with consumers

and other stakeholders and differentiation from our competitors.

If we excel in these areas we will be consumer-centric, we will

accelerate our performance in all key areas and we will achieve

excellence in execution.

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To be a leader company have to earn consumer’s trust by satisfying the expectations

of consumers, whose daily choices drive our performance, of shareholders, of the

communities in which we operate and of society as a whole. It is only possible to create long-

term sustainable value for our shareholders if our behavior, strategies and operations are also

creating value for the communities where we operate, for our business partners and, of

course, for our consumers. We call this “Creating Shared Value”.

Nestle is investing for the future to ensure the financial and environmental

sustainability of our actions and operations: in capacity, in technologies, in capabilities, in

people, in brands, in R&D. Our aim is to provide the consumer needs without compromising

the ability of future generation to meet their needs, by doing that, it will ensure the

profitability growth year after year and a high level of returns for the shareholders and society

at large over the long term. These are the strategies that maintain this company and keep it

through. In addition, their principle of business also be concerned and the analysis for this

strategy is absolutely what nestle do in reality. Finally, the marketing strategies is connected

and related with these 3 drivers, competitive advantages, growth drivers, and the operational

pillars which is the key success of nestle marketing in the market.

5.4 Porters Five Forces of Nestle

Porter divided into five different forces that impact competitive intensity which

portrays an image of the overall attractiveness and profitability of a market. These are some

evaluation of Nestle five forces.

Threat of New Entrants: The food processing industry is very big and competitive.

It is rarely for firms within the industry to do quite well and sustainable. Nowadays, many

companies are trying to enter the market every year in attempt to gain more portion of the

profitable market. For Nestle, the company luckily has been around for over a century and

boasts a long history of quality products and consumer satisfaction, which has allowed the

company to obtain a considerable share of the market. As a result, the new entrants which

come into a market should seize a portion of Nestlé’s market share in order to survive.

Essentially, Nestle is constantly a good player in the market, and so the threat of new entrants

is moderate.

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Bargaining Power of Supplier: Nestle itself keeps on creating and maintaining

positive relationships with its suppliers all over the world. Due to the large purchasing power

of Nestle, and because the suppliers of agricultural commodities offer a product that is far

from unique, Nestle holds more bargaining power than its suppliers. Besides that, Nestle

prefers to create and preserve long term relationships with their suppliers as this helps to keep

and ensure the quality of the raw materials being purchased. Furthermore, Nestle also give

helpful guidance to its suppliers on how to work more proficiently to decrease redundant

expenses. And thus it cares of its suppliers which return pays them off in the form of quality

products.

Bargaining Power of Buyer: Regarding to their consumption of Nestle products,

Customers have a large amount of bargaining power. Because, there are some close

substitutes for Nestle products which allows for the preferences of the customer to be very

influential. Specifically, Nestle’ is incorporating health and wellness into the creation of its

products as society has started becoming more health conscious. In addition, Nestle always

cares about and that is reflected in Nestle health and wellness programs that are being used

wile creation of new products as society has in progress of becoming more health conscious.

Threat of Substitute Products: Due to the nature of the industry, Nestle is afflicted

with the threat of substitute goods. Every kind of products has substitute products that create

the competition in the market. As, the products are the daily use products, it has a lot of threat

of substitutes. It is very important for Nestle to continuously find new ways to improve its

products and being innovative for the company’s future expansion because competition is so

high. In recent years, Nestle has focused on the health and wellness factors of its products to

stay in the market and keep their product beyond the substitutes.

Intensity of Rivalry among Competitors: Nestle is powerhouse in the food and

beverages industry but some big rivals do exist in the industry such as Kraft, Master foods,

and Danone, Nestle was also facing strong competition at the national and regional level.

These companies, among others, are in a constant and continuous competing with one and

another. Nestle was increasingly facing fierce competition as many food and beverages rivals

had achieved significant improvements in their operating efficiency. Rivalry is fierce in the

food industry, and this is a good thing for consumers.

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As long as these companies continue striving to one up one another, consumers will

persistently to enjoy ever-improving product lines. In case of marketing strategy, these

companies already spent a lot to improve their strategy in purpose of effective and marketing

in the market competition. The model places Nestle in a somewhat comfortable position

within this industry, while acknowledging the threats to its market share. Specifically, the

model notes a moderate threat of new entrants into the market and a substantial threat of

substitute goods. In addition, the model shows that Nestle tends to maintain the upper hand

over its suppliers as commodities have exact substitute in the market. And then, their

customers have a considerable amount of bargaining power, as Nestle must adhere to

consumer wants and needs because there are so many close substitutes and be different from

others. For the final force, the model depicts a large amount of rivalry within the food and

beverages industry.

5.5 Marketing Mix Of NESTLE

5.5.1 Product

Diversification or differentiation of its products is a successful strategy by Nestle

Company. Where Nestle is considered it introduced 19 brands with the best quality and

concerning health, safety, wellness and purity in comparison to other big competitors which

not concerning in health issue. Nowadays, people are increasingly aware that their food and

beverage choices can impact their quality of life and affect the lives of others. This can be

seen in the graph Figure 5.1.3 Attractive attributes as the reasons why people want to buy

their products. In addition, graph Figure 5.1.8

Quality Safety and Wellness also give an overview, how people agree that Nestle is

concerning about the Safety and wellness. By giving the supply chain positive response and

distributor maintenance will help the freshness of raw material and long term relationship

with the supplier to get the best raw material. Moreover, the trucks and warehouse were

controlled and monitored to retain the cleanness.

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Innovation has been at the heart of our company since its beginning. Each day we

strive to make our products tastier and healthier choices that help consumers care for

themselves and their families. Product innovation and development is crucial element for

Nestle and this would not be possible without great R&D capability. Nestle have the largest

R&D network of any food company in the world, with 34 R&D facilities (3 Science &

Research centers and 31 Product Technology Centers and R&D centers worldwide), and over

5,000 people involved in R&D. at Nestlé, safety and quality are non-negotiable, whether it is

in terms of convenience, health or pleasure, Nestle is able and committed to create

trustworthy products, systems and services that contribute to improving the quality of

consumers’ lives.

Furthermore, the market differentiation is also the strategy of Nestle that is applied to

worldwide. It launched different brands and tastes for each country to adapt with the local

culture. For instance, they launched Nescafe Tubruk that is follow the traditional culture

coffee and it is only sold in Indonesia by Nestle. It relates with the external factors which is

Cultural factors that influence the marketing of Nestle by adapting local culture and

implement it.

5.5.2 Price

The competition begins when coming into the food and beverages division, which is

should compete with the existing players. It is recognized that it will have to price the

products equal with the competitor or even less to overcome this challenge. In the

competitive advantage, actually, Nestle Company is focusing on differentiation that makes

them become the differentiation leadership and they do not focus on the cost. Even though

Nestle do not focus on cost leadership, they manage their cost enough well in order to

compete with other brand in the market and by manage the long term relationship with their

supplier in order to get the best price to decrease redundant expenses, it helps the company

to get do better pricing about their product. To ensure affordability, nestle products are

developed specifically so consumers can buy them on a regular basis, for example, by

packaging products in daily serving sizes. To further minimize costs, these products are

made using domestic raw materials.

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5.5.3 Place

Nestlé has developed distribution channels which ensure the availability of their

products to buy wherever and whenever the consumer wishes to purchase it. Consequently,

Nestlé tries to supply as many outlets as possible - both wholesaler and retailer channels. The

major distribution channel include with geographically consideration with the manufacturing

place situated. It’s very cost effective way for the firm’s expenses in distribution its products

to targeted market. They provide the products very well, the result of survey stated that in

five big cities in Indonesia agree that their products is easily get in the market even in the

small vendor. Everyone also believe by the positive and well-known product, the seller will

sell the product easily too.

5.5.4 Promotion

Promotion has four elements: advertising, public relations, personal selling and sales

promotion. The promotion occurs when it uses the four principal elements together, which is

common in the way of promotion. The Advertising covers any communication that is paid

for, from cinema commercials, radio and Internet adverts through print media and billboards.

Public relations are where the communication is not directly paid for and includes press

releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. The

personal selling occurs when the customers or people satisfied with the products and

recommend it to others, this called word of mouth. Last, sales promotion is the people who

are hired directly to promote the products into the market. For Nestle company itself is using

an advertising as the promotion for their products such as commercials, radio and Internet

adverts through print media (magazine or newspaper), and billboards. There are some events

by the Nestle company to promote their products or do CSR program. In addition, the word

of mouth is followed by the satisfaction from the customers (relatives’ references). It occurs

by itself and become one of the Nestle promotions.

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5.6 Analysis of NESTLE’s Marketing Effectiveness towards Consumers

In this chapter, we will discuss how the Consumer perception about Nestle marketing

strategy. A Marketing strategy of Nestle is being effective or not depends on the consumer.

The survey is conducted in purpose to know the perception or thought of consumer about the

Nestle strategy and it supports that the marketing that is used by company is success. There

are so many ways to determine the effectiveness, but generally, the effectiveness is being

measured by how well the company’s offering meet customer needs. A focused strategy in

the market side can be said emphasize the effectiveness. The result is stated that all

respondents is satisfied with the products, roughly, it means that the consumer’s need is

fulfilled by the offering of Nestle. The satisfaction of consumer can be a parameter for Nestle

to determine which their marketing is acceptable for consumer in the market or not.

Moreover, the evaluation of sales can also become a parameter to determine that

company use correct marketing strategy. If the marketing strategy of a company is success, it

also increases the sales of their products. The evaluation of sales must be done every year in

order to know the effectiveness of a marketing strategy. The sales of Nestle in 2013 92.158

(in million) and increasing in 2014 91.612(in million). In addition, some of their strategy that

is implemented by nestle such their product, promotion, pricing, placing is also influence the

consumers. The products it self, is being produced very well and promotion is one factors that

impulse buyer, placing also the factors that people can reach or find the products easily. In

addition, the important attributes that attract people is also can be a parameter to show that

Nestle marketing is effective toward the consumers. Nestle company can realize which

elements should concern more and which elements should they maintain. Furthermore, Nestle

Company also offers the best service toward their customers and it will increase the

satisfaction of the consumer after buy a Nestle products.

In summary, Nestle marketing strategy is well effective toward their consumers. By

the result of the survey, most of the respondents consume Nestle products and it meets

consumers’ desire. Their strategies in the market are also well done and give the value for

their brand image and brand awareness toward the consumers. Moreover, the evaluation of

sales is keep going positive and improving every year.