Nestlé company strategy. The process of developing a marketing strategy for Nestlé in Russian conditions

MINISTRY OF EDUCATION OF THE RUSSIAN FEDERATION
SAINT PETERSBURG STATE
ENGINEERING AND ECONOMIC UNIVERSITY

Department of World Economy and International Management

COURSE PROJECT
On the topic: Nestle's strategy for entering the Russian market.
in the discipline "International Marketing and Strategic Management".

Performed:
student gr. No. 1361
Ametova Evelina Emilyevna

Supervisor:
Associate Professor, Ph.D.
Lukashevich Mikhail Leonidovich

St. Petersburg
2009

    Summary…………………………………………………………………………………….….3
    Business idea ……………………………………………………………………………. …5
    Selecting Country Markets……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
    Choosing a Way to Enter the Russian Market………………………………………………………………………………………………………11
    Choice of consumer segments………………………………………………………….…14
    Determination of marketing goals and strategies……………………………………………..16
    Product mix…………………………………………………………………………… 18
    Contract price mix………………………..………………...……………… ……20
    Sales and distribution mix…………………………………………………….….21
    Communication mix…………………………………………………………………… 24
    Organization and budget companies…………………..………………………………… …27
    Strategic plan for international marketing…………………………………..…28
    List of references and information sources…………………………….…..…..31
    Applications………………………………………………………………………………………33

Summary

This course work presents and analyzes the strategy of Nestle's entry into the Russian market. The paper substantiates the goals and reasons for choosing the Russian market, and examines the company's strategies in various areas of marketing.
The strategies described in the paper are presented and analyzed on the basis of materials from foreign and Russian specialized periodicals, data from the official website of the company, as well as on the theory of international marketing.
The history of Nestlé goes back to 1866. It was in this year that Henry Nestle, determined to overcome infant mortality, invented Farine Lactee - the world's first infant formula - and began to produce it.
Since then, Nestlé's product range has been constantly expanding, and currently includes over 8,000 food brands that are known to consumers on all five continents.
Among food producers, Nestlé has the largest investment in research and development in the world. In 2008, 2 billion Swiss francs were spent for this purpose. Approximately 5,000 people work in 23 research centers and 280 applied groups located around the world, as well as the Nestlé Research Center in Lausanne, who are engaged in research in the field of food, its properties and the influence of food on the body. The results of ongoing research allow us to constantly improve the quality of our products. This focus on R&D reflects Nestlé's commitment to producing products that not only taste good, but are also healthy.
The main activity of Nestlé is related to the production of food products. In addition, Nestlé owns shares in perfumery, cosmetics and pharmaceutical industries.
Today Nestlé is the largest food manufacturer in the world. The Nestlé group employs more than 280,000 people and owns 456 factories and industrial enterprises in 84 countries. In 2008, the total sales of the Nestlé Corporation reached 109.9 billion Swiss francs. The company's net profit grew in 2008 by 69.4% and amounted to 18 billion Swiss francs.
Nestlé's relations with Russia have a long history. The company supplied its products to Russia already at the end of the 19th century, when the St. Petersburg trader Alexander Wenzel signed an exclusive contract with Henry Nestle for the supply of dairy products on the territory of the Russian Empire.
A new stage began in the early 1990s, when Nestlé created a network of importers and distributors who began to actively develop sales of Nestlé's main brands, including NESCAFE ® and NESQUIK ® .
In April 1995, Societe pour l'Exportation des Produits Nestle S.A. opened its representative office in Moscow. A year later, Nestle Food LLC became a full-fledged Russian company, having organized a network of its own warehouses and established a sales and marketing system to promote products on the Russian market. In 2006, the regional offices located in the Eurasia region became subordinate to the Russian head office of Nestlé, thus, the company expanded the geography of its activities and began to do business in the Russia-Eurasia region. In 2007, the company received a new name - Nestle Russia. On January 1, 2007, a plan began to be implemented to merge numerous legal entities of the Nestlé group of companies into a single company under the new name Nestlé Russia.
Today, Nestlé is the market leader in coffee, baby food, culinary, packaged chocolate and breakfast cereals, and is expanding its presence in the ice cream, pet food and bottled water markets. The long-term success of Nestlé in the Russian market was achieved due to a number of factors. First of all, Nestlé strengthened its position and expanded its presence in the country through investments in local production and industrial infrastructure, active brand promotion, and continuous expansion and development of the national distribution network.
Three Nestlé brands - NESCAFE ® (in 1998, 2000, 2002, 2004, 2006 and 2008), MAGGI ® (in 1999, 2001 and 2003) and RUSSIA - GENEROUS SOUL ®(in 2002, 2003, 2005 and 2008) were awarded the honorary award "People's Mark", which was evidence of the unusually high popularity of these products among Russian consumers.
Company trademarks, including: RUSSIA - GENEROUS SOUL ®, NESCAFE ® Gold , MAGGI ® , GOLD MARK ® and NUTS ® were awarded the prestigious Brand of the Year/EFFIE, the national professional award for effective marketing and advertising.
Nestlé's activities in Russia were also highly appreciated by leading industry representatives and experts. In 1998, the American Chamber of Commerce in Russia named Nestlé "Company of the Year" for its commitment to the Russian market, production growth and product recognition. In May 2004, Alfa-Bank and the Lauder Institute presented Nestle with an honorary award "For merits in the field of foreign investment in Russia - 2004".

Business idea

The company was founded in 1866 by the Swiss pharmacist Henri Nestle. Experimenting with various combinations of milk, wheat flour and sugar, he created a product for artificial feeding of babies who do not receive mother's milk. Its main goal was to help solve the problem of child mortality caused by insufficient and malnutrition. The new product was named "Henri Nestle Milk Flour" 1 and a few years later was actively sold in most European countries.
The head office of the company is located in the Swiss city of Vevey, the chairman of the board of directors is Peter Brabeck-Letmathe, the general manager is Paul Bulcke.
In Russia, the company produces a wide range of food products under the trademarks Nescafe, KitKat, Nesquik, Extrem, Kimo, Larchik, Russia is a generous soul, Bon Pari, Nuts, Golden Mark, Shock, Maggi, Perrier, Holy Spring, Purina, Friskies, Darling, etc. The Nestle representative office in Russia has been operating since 1995. The general director of the representative office is Stefan De Loker.
In 2008, the total sales of the Nestlé Corporation reached 109.9 billion Swiss francs. The company's net profit grew in 2008 by 69.4% and amounted to 18 billion Swiss francs. From the chart below, you can see that Nestlé has one of the leading positions in terms of market share of ice cream.
Market shares of major ice cream producers. 2 (see Appendix1)
, -
The goal of Nestlé is strengthening positions On the market , creating an image of a reliable partner, a manufacturer of quality products; become an attractive company for those who are open to development and strive to achieve high results in their work.
Nestle came to Russia at the end of the 19th century. - St. Petersburg trader Alexander Wenzel signed an exclusive contract for the supply of the company's dairy products on the territory of the Russian Empire.
Today Nestlé is the largest food manufacturer in the world. The Nestlé group employs more than 280,000 people and owns 456 factories and industrial enterprises in 84 countries. In 2008, the total sales of the Nestlé Corporation reached 109.9 billion Swiss francs. The company's net profit grew by 69.4% in 2008 and amounted to almost 18 billion Swiss francs.
Financial indicators (2009):
revenue in the world - $102.58 billion, in Russia - $2.29 billion,
net profit - $17.8 billion.
Almost 100% of the shares are in free float.
Capitalization - $145.4 billion.
3
Multinational Nestle has been operating in Russia since April 1995, when a representative office of the corporation was opened in Moscow. Having resumed work here in 1995, the Swiss company invested about $800 million in our market. In 1996, the representative office was transformed into a subsidiary of Nestle Food. The Swiss company has created a network of importers and distributors, who began to actively promote the main brands that are world famous. The brands Nescafe, Nuts, Nesquik appeared in Russian stores.
The activities of OOO Nestle Food on the Russian market are especially noticeable in two directions - the establishment of a sales and marketing system and the active acquisition of local industries. A year after the first purchase, the company acquired a controlling stake in the ice cream factory in Zhukovsky, where they began to produce products with names familiar to Russian ears. In June 1998 - Khladoprodukt JSC in Timashevsk, Krasnodar Territory.
The plant in Timashevsk allows the production of frozen fruits and vegetables in addition to ice cream. Nestlé solved the problem of timely provision of production with raw materials by signing an agreement with local farmers on the supply of large volumes of agricultural products to Khladoprodukt.
Despite many local acquisitions, Nestlé continued to engage in direct and indirect imports all these years. According to the results of 2008, in physical terms, the volume of ice cream production in Russia amounted to 363.37 thousand tons.
Successful foreign economic activities of Nestlé in Russia are due not only to the presence of six local production facilities and significant investments in advertising. From the very beginning, the company created a clear system of sales and distribution in Russia, itself was engaged in customs clearance and delivery of products to its own warehouses in the regions. The company has focused on working with retail. Result: Nestle products are on the shelves of almost all stores.
Nestle, face significant differences in the interests and preferences of consumers in different countries. Therefore, the company adopts a multi-position competitive strategy, i.e. operate on the principle of “think globally, act locally”, competing in the country on a national basis with specially adapted strategies to suit local conditions, while at the same time looking for ways to strengthen their positions around the world. Central to this strategy is the management of a portfolio of global, regional and local brands.
As for the competition in this industry, it is quite strong, as you can see from the diagram presented earlier, Nestlé's main rivals are:
Inmarko, Talosto, Iceberry, Russian cold. However, Nestlé managed to find its niche among these rather strong competitors by offering a traditional product with a higher quality and an extensive range from the very beginning of entering the market in the 90s. “The board of Nestle pays great attention to the global sales of ice cream of its brands. From 1993 to 1995, the volume of ice cream produced by Nestle increased 6 times (from 100 million to 600 million liters).» 4
The value of ice cream retail sales in Russia grew very rapidly in the first half of the 2000s due to an increase in prices and sales volumes, but already in 2007 it was only 13%. In 2008, despite a sharp drop in physical volume of sales, the cost volume increased by 8.5% due to the same sharp increase in prices. In 2009, despite the continued rise in prices, it was expected that the value of ice cream sales in Russia would fall by 4%.

Ice cream market in Russia in the first half of 2009

In the first half of 2009, the volume of ice cream production in Russia amounted to 185.79 thousand tons, which is 2.5% less than the same period last year (190.5 thousand tons).
Rosstat estimates the decrease in production at 3%.
In October 2009, a study of the ice cream market in Russia was completed, which showed that the volume of retail sales of ice cream in Russia in 2009 amounted to 342 thousand tons, having decreased by almost 10% compared to the previous year. In 2010, sales are expected to drop another 10%. The reason is that now ice cream is produced everywhere in almost all Russian regions. At the same time, the quality of products is far from high everywhere. Hence, difficulties arise in the way of the consolidation process, since one manufacturer may not be satisfied with the quality of another's products. If there were 5-7 players on the market instead of a few hundred, then, perhaps, some changes for the better would begin in the industry. The domestic ice cream market, unlike other food markets, is characterized by a low degree of consolidation. In this regard, the further development of the market will occur through the consolidation, purchase or merger of companies. These processes began several years ago with the purchase of production capacities by the largest players. Market experts believe that consolidation through mergers and acquisitions will continue, and in a few years there will be 10-20 largest companies, which will account for up to 80% of the market.
Nestlé constantly positions itself as a Russian company. Before introducing new brands, Nestlé carefully studies the taste preferences of Russians. And he certainly uses traditional Russian motifs not only in brand names, but also in advertising. It can be said that Nestlé has become the most Russian of the foreign companies operating in its market sector.
Choice of country markets.
Despite such a significant number of ice cream companies in Russia, this market cannot be called developed. Until recently, analysts called the insignificant presence of foreign players the main feature of the domestic ice cream market. The domestic ice cream market, unlike other food markets, is characterized by a low degree of consolidation. According to the Union of Ice Cream Workers of Russia, there are about 250 producers of ice treats in the country. The Russian ice cream market is actively developing, in the 3rd quarter of 2008 a number of Russian regions increased production volumes. However, every year the growth rate is decreasing. Experts talk about the saturation of the market, and the results of marketing research indicate that the all-Russian ice cream market is 92% saturated, and regional - 93%.
Several hundred companies are engaged in the production of ice cream in Russia. According to official data and research results, the top five market leaders are Inmarko, Talosto, Iceberry, Russkiy Kholod, and Nestle-Zhukovskoe Ice Cream, which control about a third of the market. 20 large but less well-known manufacturers own another third of the market, and 31.1% is occupied by the remaining numerous local manufacturers.
Further development of the market will occur through the consolidation, buying or merger of companies. These processes began several years ago with the purchase of production capacities by the largest players. Market experts believe that consolidation through mergers and acquisitions will continue, and in a few years there will be 10-20 largest companies, which will account for up to 80% of the market.
Despite the wide variety of varieties and brands of ice cream in Russia, recognizable brands are either traditional brands such as Eskimo, Lakomka and Plombir, which are produced under one or another similar name by many companies, or brands of those few companies that who actively advertise their products. The most popular among consumers are traditional varieties familiar from childhood.
A feature of the Russian market is the wide popularity among consumers of portioned ice cream, which is convenient to eat on the go. Its share is 75 - 80% of the volume, the share of "family" ice cream - no more than 10% of the market. Another feature of the Russian ice cream market is that the consumer prefers classic, dairy ice cream varieties. The most purchased varieties are those that are most convenient to eat on the street, and according to research, these are cups and popsicles. Manufacturers place the main emphasis in promoting brands on stimulating impulse purchases by constantly updating the assortment. A number of leading companies launch new products every season. However, the popularity of ice cream for home consumption is starting to grow, and according to experts, this trend will continue.
The main players claim that the process of consolidation will continue in the coming years, as a result of which large companies will grow, while stagnation is not ruled out for small local producers due to the exhaustion of the technological resource.
To assess the attractiveness of the market, we will use the Operation Risk Index (ORI) for the year the company began operating in Russia, presented in the table: №
Cr iteria
(ai) 1995
(gi)
(ai * g i ) 1995
1
By lytic stability
1,5
3,0
4,5
2
From wearing to foreign investors
1
3,0
3
3
Op risk of expropriation
1
1,2
1,2
4
inflation rate
0
1,5
0,0
5
Payment balance
3
2,1
6,3
6
Byu rocratic obstacles
2,5
1,9
4,75
7
Ek onomic growth
0
2,3
0,0
8
Co. currency invertibility
1,2
2,8
3,36
9
Etc emergency protection of contracts
1,4
2,4
3,36
10
St cost and labor productivity
2
2,1
4,2
11
Before availability of local specialists and suppliers
1
1,3
1,3
12
Ur communication and transport line
2
1,5
3
13
Ur A list of local managers and partners
1
1,6
1,6
14
Before rate of short-term loans
1,4
2,0
2,8
15
Before availability of long-term loans and investment capital
0
2,0
0,0
16
Ma the highest possible rating of the country (100 points)
28,6
39,37

Comparing the received number (ORI=39.37) with the strategic recommendations, we conclude that since country score less than 40 points: there were no business transactions, as a result of which, after entering the Russian market, Nestlé quickly began to take a leading position.
Factors favoring market development:
- growth of incomes of the population of Russia
- increase in purchase prices
- the introduction of GOST, which will be able to improve the quality of the produced
ice cream in Russia and restore consumer loyalty to this
the product as a whole
- the volume of ice cream consumption per person in Russia is still significantly lower than in Europe and the USA, and with a change in the consumer culture of Russian ice cream buyers, a significant increase in the market volume is possible. - an increase in the income of the population, which will allow Russians to spend more money on pleasures and desserts, one of which is ice cream.
- increasing the advertising activity of industry leaders, which will make ice cream more attractive than snacks, beer and other drinks.
- an increase in prices for ice cream due to the expansion of the segment of branded products.
- increase in the number of commercial equipment and impulse purchases of ice cream in retail chains.
- expansion of a new segment for Russia - family ice cream, which, of course, will affect the overall consumption of ice cream.

Investment attractiveness and empty niches in the market:
Among the promising market segments, experts name, first of all, the unsaturated segment of premium bulk ice cream and soft ice cream for catering establishments. It is also proposed to increase the number of "nostalgic" brands, which are not enough today, given the presence of demand for them.
Thus, Nestle's strategy for developing new markets can be formulated as follows: "Brands should be local, personnel should act regionally, and only the introduction of new progressive technologies should be global."
Way to enter the country markets.

Nestlé's worldwide strategy is tomaking long-term investments . The policy of the corporation to develop new markets is precisely to develop production there not from scratch, but using existing factories that produce products that best suit the tastes of the local population.

“Acquisitions are part of our strategy, always part of the policy of a leading company. I'm sure we're already fairly well represented in all the categories we're interested in. So our main goal is to properly continue to run the business that we already hold quite firmly in our hands. But if there is an opportunity to make acquisitions that strengthen us or accelerate our development, we, of course, make them. We call it bold acquisitions. We allocated 1.3 billion euros, or 2 billion Swiss francs, for just such purchases. In local markets, including in Russia, we monitor whether there are opportunities for interesting acquisitions. And if such opportunities arise, we naturally consider them. We are focused on long-term development. And this crisis will end. Therefore, our company should not be afraid and retreat because some kind of crisis has occurred.” 5

As part of this strategy, the company is activelyinvests in local production, product development, meeting Russian tastes and traditions, as well as uses local raw materials and components. Thus, Nestlé combines international experience and leadership in the food industry with the needs of consumers.

Nestlé's most important investment in Russia is the acquisition of

June 1996, a controlling stake in Nestle Zhukovskoye Ice Cream LLC.

Investments were made in the installation of new modern equipment,

which allows the production of traditional Russian ice cream under new

trademarks, such as: ice cream "48 kopecks", popsicle "Kimo",

"Rose", "Snow Maiden".

In June 1998, Nestle bought a controlling stake in JSC Khladoprodukt in Timashevsk, Krasnodar Territory. This ice cream factory

complements the capacity for the production of ice cream "Nestlé" in the city of Zhukovsky.

AO Khladoprodukt is one of six Russian manufacturing companies in which the Nestle Group owns a controlling stake. To date, the volume of investments in the factory is about $8 million. Subsequently, Nestlé expanded the production capacity of the factory in the city of Zhukovsky, starting the production of Maggi bouillon cubes.

Nestlé's strategy is aimed not only atstrengthening and modernization

production infrastructure of factories and the introduction of new technologies in

production. The company also strives to behighly efficient

manufacturer with low production costs . In addition, Nestlé

invest heavily in education and training

employees, passing them the international experience of the company and scientific and technical

knowledge.

If we talk about the overall strategy of “conquering” foreign markets, Nestle has chosen the “umbrella strategy” - the simultaneous entry into the market of several countries (USA, Germany, Spain, etc.) Thus, covering the markets at the same time, distributing its product in as many places as possible . This is supported by an interview CEO of Nestle in Russia Stephan de Loker: “Today, Nestle has 13 factories in different regions, 10,000 employees (which means 10,000 families) and more than 500 brands. The company manufactures more than 90% of its products directly in Russia. This approach is in line with Nestle's global strategy to be a strong company in local markets and develop there. Nestle believes that in order for a business to remain successful in the long term, it must be a source of value not only for shareholders, but also for society in the countries where the company operates. This is a key part of the company's business strategy.” 6

For Nestle, Russia is one of the key markets, in terms of its importance it is among the 12 most important countries for the company. The Russian division is growing faster than Nestle's business as a whole, Russia's share in Nestle's business is constantly increasing, this year it will amount to just under 2% of sales worldwide. The share of Nestle in the ice cream market in value terms in key cities of Russia reaches 20%, across the country - about 12-14%. In tons, the market share differs significantly, because Nestle ice cream is more expensive than competitors' products. Nestle tries to distribute ice cream production throughout the year, so there is not much free capacity in winter. As for the distribution system (transport and warehouses), these capacities are used for frozen products during the decline in ice cream sales. But, although the weather in Russia is very different in winter and summer, the seasonality of sales in Russia is not as strong as, for example, in Western Europe.

Among the main current trends in the Russian ice cream market, one should note the intensification of acquisitions and mergers. The main events of recent times: the formation of a single company "Iceberry" on the basis of the companies "Ramsay", "Service-Holod" and "Ice-Fili", and in addition, the purchase of the "Magic Lantern" factory; the purchase by Talosto of a dairy plant in Ozyory, the Metelitsa company and the Podolsky cold storage plant; acquisition by Inmarko of the Tula cold storage plant; purchase by AlterVEST of CJSC Eskimo Fili and CJSC Service Fili.
According to the Union of Ice Cream Workers of Russia, the total potential of the industry's enterprises is 800,000 tons per year. Currently, 72 cold storage plants, about 140 dairy enterprises and over 80 commercial associations are engaged in the production of ice cream in the country. No more than 10 companies should work in this market, which will have full-fledged opportunities for launching new brands on the market, have an effective sales system and modern production facilities for the production of a quality product. Therefore, Nestle plans to expand its production capacity by acquiring factories in the regions, thus planning to significantly increase its share (from 10% to 25%) of ice cream in the Russian market.
Choice of consumer segments
The ice cream market is considered mature, meaning that the habits of ice cream consumption acquired since childhood by the majority of the population allow us to say that everyone who could consume ice cream is already consuming it. Therefore, the market growth rate is very low. According to forecasts, it will continue to be no more than 1-2% per year. The growth rate of the market is very little affected by the growth in the level of provision of the population and other factors.
There is a division of buyers into groups in terms of the main motive for choosing in the market. (See Appendix 2)
The segment of ice cream consumers is very extensive. It is also worth noting that the Russian model of ice cream consumption is completely different than in Europe or America. The fact is that if in these countries it is customary to eat ice cream at home or in public catering establishments, then in Russia the vast majority of consumers eat ice cream directly on the street. In this regard, specialized tents "Ice cream" have the largest share of sales in the summer (diagram 1):

And the most popular varieties are those that are most convenient to eat "on the go": waffle cups, popsicles, horns:
(See Annex 3)
Thus, the ice cream market in Russia has a typical national feature - the consumption of ice cream directly on the street.
As in any other market, a relatively small group of active consumers can be identified in the ice cream market, which accounts for a significant amount of consumption. In the case of ice cream, this is 10% of the population, or 20% of consumers who are very fond of ice cream and buy it often - 3-5 times a week, or even every day (Fig. 1). These consumers consume just under 3 billion servings of ice cream each year, or half of their total consumption. Each active consumer eats 14 kilograms (200 servings) of ice cream per year.

It is believed that ice cream is a children's and youth product. This is partly correct. Almost a third of active consumers are under 25 years old (Fig. 2). But I would like to draw attention to the fact that almost 30% of those who consume ice cream at least 3 times a week are over 45 years old.
Thus, we can talk about the potential for consumption growth due to the numerical increase in the group of active consumers, especially middle and older. So, for example, a very real growth of this group by 15-20%, that is, by 2-3 million people, will add another 30-40 thousand tons per year to the market. Meanwhile, over the past 3 years, the market has grown by 10-15 thousand tons per year, that is, by 2-3% in physical terms.
The next group is those who consume ice cream 2 times a week, that is, 100 servings, or 7 kilograms, per year. These figures are close to the average European level of consumption. This group accounts for almost a quarter of the total consumption - about 100 thousand tons of the product per year. An increase in consumption in this group up to 3 times a week will add 50 thousand tons per year to the market, and a quantitative increase in the group by 15–20% will add another 15–20 thousand tons.
The third group - those who eat ice cream on average once a week. They account for 3.5 kilograms per year. The total consumption of the group is 70-75 thousand tons, which is about 20% of the total market volume. A 50% increase in consumption in this group will provide the market with an annual increase of 35 thousand tons, and an increase in the group by 5-6 million people will provide another 20 thousand tons.
The group of inactive consumers closes the list. These are those who consume ice cream 1-2 times a month. Thus, on average, 1.25 kilograms per person per year is obtained. This group is relatively large - more than 40% of all consumers. But it accounts for less than 10% of total consumption - about 35 thousand tons. A 2-fold increase in consumption in this group will add 35 thousand tons to the market per year, and an increase in the group by 5-6 million people will add another 10-15 thousand tons.
Thus, by increasing the number of consumers by 20–25%, as well as by increasing the frequency of ice cream consumption, the market can grow by 200–260 thousand tons per year, or by 50–65%.
From the foregoing, we can conclude that the Nestlé company is focused on consumers belonging to different social classes, with different tastes and preferences and different income levels.
Definition of marketing goals and strategies.
The development strategy of Nestle in Russia is, in fact, the history of consumer preferences of the Russian market of the last decade. The logic of the company is the simplest. If something interesting appeared on the market that fit its profile, its "global package" of products, Nestlé immediately bought it. That is, Nestlé adapts the conduct of its business specifically for the country where it is located, while counting on long-term prospects. So, the company is engaged in the production of ice cream all over the world, so it is quite logical that in Russia it has also established the production of ice cream in Zhukovsky near Moscow.
The main goal of Nestlé's marketing is to position the company on the Russian market as a leader in the production of ice cream.
The mission of the company "Nestlé Russia" - become a leading company in the Russia-Eurasia region, - a food company based on the principles of proper nutrition and a healthy lifestyle.
Since the company produces a variety of products that can satisfy a variety of customers. The best strategy for Nestle would be target marketing. That is, the marketing mix will be developed taking into account consumer segments and target audiences.
The main components of the production and marketing strategy in the Company are:

      striving to be a highly efficient manufacturer with low production costs and world-class product quality;
      development of projects for the release of new products;
      application of modern production and information technologies;
      application of modern methods of planning and management.
When developing specific marketing activities, it is necessary to take into account the factors presented in the SWOT analysis table:
(see Annex 4)
After analyzing the factors of SWOT analysis, we can identify the main strategies:
    product development: development of new types of ice cream for new and existing markets;
    product change: minor changes to existing Nestlé products that make them attractive to other customers;
    market development: finding and exploiting new market segments.
The key factors determining the competitiveness of the Company are a thorough study of the market, analysis, its dynamics, study of the relationship between the company and consumers, analysis of competitors, forecasting market conditions, development of proposals for the release of new products, management of the product range, formation of brand policy, increasing the competitiveness of goods, formulating a strategy and tactics for changing prices, setting discounts and surcharges to prices, accounting for marketing, advertising, personal sales, sales promotion costs.
The main tasks in corporate and marketing strategies are: the constant introduction of new approaches and innovative ideas in the strategic areas of quality, costs, differentiation and focus, as well as the forecasting of consumer demand and its satisfaction.
Strategic alliances:
Examples of strategic alliances: (See Annex 5)
If we consider the competition, Nestle in the Russian market occupies quite favorable positions:
Consumers are likely to be willing to pay more for higher quality products from a global manufacturer.
The industry is quite competitive. Most likely, Nestle will continue to compete with its main global competitor, Kraft Foods Inc. , and with the main Russian competitors: Inmarko, Talosto, Iceberry. Among the most aggressive competitors in the ice-cream market, experts named the Inmarko holding. The top five also included Russian Cold LLC (Barnaul), Talosto OJSC (St. Petersburg), Ramsay Group of Companies, AlterVest Trading House CJSC (Moscow Region).
As for the entry of newcomers into the industry, this is unlikely to have a significant impact on Nestlé, since it is a recognized world leader, and it is quite difficult to squeeze it out on the market.
Product mix.
Ice cream under the brand name Nestle has the widest and most varied assortment. The company consistently offers six types of ice cream to the local market.
Each type is produced with a variety of flavoring additives, so that the total assortment reaches 50 items (up to 20-25 are simultaneously represented in the retail network). The emphasis in the assortment is made on high-quality expensive products. A small share of Nestle's assortment is occupied by cups, their production is organized specifically for traditional consumers. In the local market there is the only representative of this type of ice cream - a glass of "Rosochka". As a rule, each type of ice cream is a well-promoted brand. It can be assumed that Nestle's assortment policy is clearly planned and demonstrates a balance between a variety of tastes and marketing efforts.
Types of ice cream
Nestle
That mouths
3 – 5
Lo tki
Br iketa
5 – 10
Co. nosy
3 – 5
Es kimo
15 – 20
St akanchiki
3 – 5
Sun his
29 – 45

Nestle strives to take into account the individual needs of its customers and offer them those products that would fully meet their needs.
The full range of Nestlé Ice Cream includes products under the following brands:
Portioned ice cream: Home range:
EXTREM ® 48 KOPEEK ®
MAXIBON ® RUSSIA - GENEROUS SOUL ®
GO ON! ® ZIMUSHKA ® briquette
MEGA ® CASE ®
NESQUIK® DOLCEVITA®
BON PARI ® SUPER CASE ®
NESTEA ® ZIMUSHKA ® cake
KIMO ® NESTLE®,
ROSOCHKA ® FRISCO®,
GLASS ® CAMY®,
CLOUD ® SAVORY®,
BOYARSKOE ® PETERS®,
SNOW MAIDEN ® HEAGEN DASZ®,
THE TASTE OF SUMMER ® MOEVENPICK®,
WHY ® CHAMBINHO®,
GREEN APPLE ® SHELLER®,
FRIGOR®
The range of ice cream produced at the enterprises of the Russian Federation has a characteristic feature: the basis of production is portioned ice cream - 70-80% of the total production, which in the autumn-winter period is reduced to a maximum of 55%. The number of product items varies by 15-20% depending on the season. The volume of production changes significantly: during the recession - in winter - it is 30-40% of summer volumes.
The following trends can be distinguished in the assortment of Nestlé ice cream:
    the displacement of cheap types of products and the growth of high-income groups;
    expanding the segment of products focused on a healthy lifestyle;
    increased production of ice cream with reduced fat and sugar content;
    growth in the production of ice cream with functional additives (fortified, iodized, with a high content of calcium, etc.);
    increase in the production of ice cream for home consumption
Buyers should associate Nestlé products with exceptional quality, unique packaging and efficient logistics. For the successful promotion of this product, there are a number of conditions fulfilled by the company:
    Ensure high quality products (provide the plant with the latest equipment, select and train qualified personnel)




Nestlé is one of the recognized world leaders in the production and sale of ice cream. "We make ice cream to give you magical moments of pleasure!"

In the production of ice cream, Nestlé uses only natural and identical to natural ingredients, creating delicious, healthy and high-quality products for the whole family. In the production of Nestlé ice cream, the traditional recipe of Russian ice cream is preserved. In our factories, where the latest generation of equipment is installed, strict requirements are placed on raw materials, packaging and production process. Each batch of ice cream undergoes multi-stage quality control before release.
“We constantly update our product range, taking into account your tastes and wishes.” 7
Contract price mix.
Prices for Nestlé products differ significantly from the average market prices, as it is expected that the consumer will be ready to overpay for better products.
When forming the price of products, one should take into account some factors that affect the formation of prices (see annex 6) 8
In the local ice cream market, there are two ways to form a price chain. One of them is active, inherent in the Nestle company.
The active pricing method is based on seven main factors: high quality, planned assortment, brand awareness, developed infrastructure, effective advertising and distribution, implemented by a technological wholesale company. Such a scheme for organizing the price chain allows all market participants to earn. It has been observed that Nestle distributors have a wholesale markup of 18 to 29%, which is much higher than the wholesale markup for other manufacturers' products. The retail margin here is also high, up to 55%.
Since Nestlé products are aimed at consumers with a wide range of income levels, the prices for products vary from quite high to quite acceptable for consumers with medium and low incomes. However, due to changing market conditions, the company is forced to raise prices by an average of 5-7 rubles per serving. For example, for a portion of ice cream Mega Eskimo tangerine / mojito 110ml, the price was set at 31 rubles, Nesquik Eskimo ice cream 90ml - 23 rubles, Fruit ice Pochemuchka 60ml - 17 rubles. Nestlé forms the price of products based on the method "cost plus" that is, the calculation of the selling price by adding a fixed additional profit to the price of production, purchase price, storage of materials and raw materials.
None of the other ice cream companies present in this market, except for Nestle, has a full set of price chain management factors.
The company uses a penetration pricing strategy, first setting a relatively low price for the product, thereby winning as many consumers as possible, and subsequently increasing it.
Sales and distribution mix.
Ice cream produced by Nestle is sold through distributors and sold through branded refrigerators, the number of which in Russia is about 50% of the total. The main feature of Nestle ice cream sales is the sale of products through all retail sales channels. The main share of revenue in the summer comes from street trading, and in winter, the sale of ice cream moves to grocery stores and supermarkets. Stable sales are achieved through our own system of refrigerators.

Structure of ice cream retail sales in summer by distribution channels

Nestlé is more involved in advertising campaigns in the ice cream market than others, and therefore has the most advanced technologies for influencing consumers. The main component is the highest authority of Nestle itself for Russian consumers. Ice cream advertising is carried out by means of a trademark, posters and price tags at points of sale, branded equipment (decorated refrigerators, awnings, umbrellas, as well as sellers' uniforms).

Sales promotion is the prerogative of the marketing and advertising departments. The company has a call center where consumers can ask their questions, however, the work of the call center simply cannot dramatically increase sales in a short time. Nestle services employ an average of ten people, a qualified operator can answer 8 to 10 calls per hour. Such work cannot be compared in effectiveness with an advertising or information campaign in the press. But such communication with consumers helps to maintain product sales at a fairly high level.

It is necessary for a company to maintain a dialogue with consumers, because it is from them that you can learn how to improve the products it produces, their taste or packaging.

To manage logistics, the Company uses a divisional linear-functional structure. Such a structure allows for effective management of the Company's logistics activities and provides for the functional division of managerial labor in structural divisions and the integration of the logistics process within the entire Company.
To support production, the Company applies the ERP 9 logistics concept/system, which is considered as an effective tool for planning and implementing the company's strategic goals in logistics, marketing, production, and finance.
The company has an extensive warehousing system, it uses only large regional or national warehouses, located mainly in close proximity to product manufacturers. The main task of the warehouse is the accumulation of a balanced range of products to meet consumer demand.
Distribution of factory products is carried out only through the head office in Moscow and through the regional representative offices of the Company. Distribution is an integral part of the Company's logistics system, which ensures the most efficient organization of the distribution of manufactured products. Distribution covers the entire chain of the distribution system: marketing, transportation, warehousing, etc.
The suppliers whose services the Company uses provide the production units with components, semi-finished products, spare parts, raw materials, materials, labor, fuel and energy, and various services necessary for organizing the production and distribution of products.
The main logistics strategy of the Company is the ECR 10 strategy (immediate response to market needs).
To assess the performance of logistics at the corporate level, the Company uses an information system that allows evaluating all aspects of logistics operations in accordance with the chosen logistics strategy. This is the first and most important condition for achieving high profits from the use of logistics.
A modern corporate information system of the ERP class made it possible to integrate the management of the movement of material flows related to procurement, transportation, warehousing, storage of stocks and distribution. Modern logistics technologies used by the Company ensure the timely receipt and processing of the necessary information in real time. The company considers the computerization of all functional logistics divisions as an important source of increasing profits. The Company's logistics is also being improved through close interconnection, cooperation with business partners, suppliers, wholesalers, etc. To do this, the Company uses logistics technology and software SCM 11 - "Supply Chain Management". Careful development of logistics operations, attraction of qualified personnel and their further training ensure the high quality of all logistics operations, contributing to profit growth and increasing the competitiveness of the Company.
communication mix.
The purpose of the communication policy is to inform about the appearance of Nestle products on the market, its high quality; create an image of a company open to dialogue.
Target audience which should be affected by the communication policy are the potential consumers of the product.
The ice cream market is divided into economy, medium and premium segments. Large manufacturers have a wide range, however, they try to leave the low segment, producing more expensive and high-quality products. It should be noted that premium ice cream, which usually stands apart in the ice cream market as a whole, has recently received increased attention. And the reason lies not only in the increased purchasing power of consumers, but also in the fact that manufacturers began to look for ways to promote their products.
The economy segment today is not profitable for the manufacturer and, realizing this, the manufacturer is looking for ways to promote its more expensive and high-quality goods.
The consumer can be interested with the help of advertising communication. The most common ways to promote a product, such as television, in the "premium" category lose their value and fail to attract the consumer. The main requirement for advertising a premium product is that it should not look "cheap" and, moreover, should not look like an advertisement for a mass product. An attempt to attract a client with volumes of advertising will be associated in his mind with general availability, and this cannot be allowed, because then the product will lose its value for the consumer.
Mass advertising campaigns have a short-term effect. In addition, a person who is oriented towards the consumption of premium products is well versed in its properties and quality, and intensive advertising persuasion will not push him to buy this or that product. Effective advertising for premium ice cream should be subtle, should give the consumer a unique, exclusive offer that would fit his lifestyle.
Manufacturers have already begun to think about how to offer a product. They take the first steps and move away from traditional ways of product promotion, although advertising on television is actively used for ice cream in the economy and medium segments. (See Annex 7), shields, etc. Using modern BTL 12 tools, you can achieve a high result in attracting potential consumers.
To promote Nestle products, the following activities are advisable:
    Press advertising. Advertising in specialized printed and online publications (Selection of specialized publications that form a certain philosophy of life and behavior.)
    Participation in conferences, forums, exhibitions held in Russia in order for potential customers, as well as competitors and representatives of related industries that influence the market, to learn about the company, including sponsorship in organizing these events.
    Issuance of product catalogs, press releases, holding press conferences to form the image of a company that seeks to give the most complete information about itself, communicate more closely with customers, and is proud of the quality of its products.
    Creation of a Russian-language company website.
    The corporate style of the company should be adapted to the Russian market. The logo, trademark, color design, fonts familiar to foreign customers can be successfully used in Russia.
    Advertising at points of sale. Active placement of pos-materials. Promotional events.
    Publications in the press about the culture of consumption of the type of ice cream produced. Publications should not be massive
    sales promotion. Stimulation with the help of premiums, gifts of sales consultants who will advertise, sell products, interest the consumer in it, create a desire to buy a product with which satisfaction from a perfect purchase is acquired, confidence in their "status" and superiority.
    Restaurants. Offering your own ice cream in an exclusive menu especially for the guest.
    Participation in specialized exhibitions and other specialized events.
Events of this kind are a great help in promoting premium ice cream. Since ice cream is still an impulse purchase, half of the consumers will buy another if they don't find their brand in the store. Using BTL, you can create a brand image so that you want to buy only it.
Here the psychological moment of working with the consumer is important, in which it is necessary to form an opinion that the products correspond to his philosophy of life and life will not be complete without it. Thus, the consumer will feel the need for this product and will buy it, since the product will be part of the lifestyle that he leads.
Nestlé uses local television advertising in 22 regions of Russia. "Nestlé" is advertised where it is quite seriously represented (at least 20-30% of the market), - Taking into account the peculiarities of television advertising, our competitors - "Inmarko" and "Talosto", using federal advertising in Siberia, help us sell our ice cream, because they have a very low representation here.” Nestle considers the television ads for their ice cream to be justified. “Three strategic brands of Nestle ice cream - Mega, Maxibon, Extreme - are supported by national TV advertising, - says Alena Shepitko. - Unlike the strategies of some competitors, this makes sense for Nestle brands because they have a national level of distribution. TV advertising allows us to increase brand awareness and inform our consumers about new products.” Experts estimate the advertising budget of Nestle ice cream at about $4 million. Thus, until the distribution of the main companies exceeds a certain critical mass, including, first of all, Moscow and St. Petersburg, most of them will not conduct federal television advertising campaigns, because .this is impractical.
Nestle has focused on promoting its corporate brand as an ice cream manufacturer, simultaneously launching several product brands. The key brands were "48 kopecks", a glass of "Rosochka" and popsicle "Kimo". The popularity of the first brand addressed to the memories of youth was so strong that the product line "48 kopecks" appeared: sundae, tricolor ice cream, ice cream with jam, chocolate, etc. The Nestle trademark as an ice cream manufacturer is neither on television nor in was not advertised to the press. Nestle's advertising campaign was based on marketing communications in sales channels: kiosks and refrigerators with the company's logo were produced. Nestle kiosks have become not only distribution channels, but also an effective way of advertising. At the moment, the company owns several hundred branded kiosks, which in some regions of Russia are the main place to buy ice cream.
Organization and budget.
It is the policy of Nestle, Switzerland's largest foodservice company, that national marketing decision making is strongly supported, given the differences in business conditions in different countries. Therefore, at Nestle, the primary responsibility for marketing has shifted to the appropriate subsidiary manager responsible for the firm's marketing program and strategy in that national market. Nestlé considers marketing management to be national rather than international.
At the same time, Nestle has a number of programs and activities that are coordinated at the regional or global level. So, the parent company of the corporation is responsible for the development of trademarks and packaging design. In addition, in order to coordinate the company's marketing policy in the regions, national marketing managers report to their regional leaders responsible for several countries.

The organizational structure of Nestlé is based on the division of activities on a geographical basis (global geographic structure). Here, the operations performed by the corporation are separated by regions (North America, Europe
etc.). thirteen

Nestlé's budgeting process includes:

    preparatory (analytical) stage - general analysis of the situation; it is necessary to understand what is required from the company, who is the consumer and who is the competitor;
    planning stage - drawing up specific plans, a more detailed analysis of the state of the external and internal environment of the enterprise;
    direct budgeting (necessarily accompanied by control and adjustments);
costs are taken into account: marketing research, preparation and holding of a press conference, advertising, creation of a company website, search and training of personnel, creation of a logistics chain, production of product catalogs, publications in the press, participation in conferences, forums, exhibitions;
    general analysis of the work done and its results, conclusions. fourteen
Strategic marketing plan.
The mission of Nestlé Russia is to become a leading company in the Russia-Eurasia region, a food producing company based on the principles of proper nutrition and a healthy lifestyle.

The goal of Nestlé is to strengthen its position in the market, create the image of a reliable partner, a manufacturer of quality products; become a company that is attractive to those who are open to development and strive to achieve high results in their work.
Strategic success factors:

    creating an image of a successful company that produces quality products at an affordable price;
    meeting the needs of consumers of each segment with high-quality products;
Strategies:
    positioning itself as a Russian company
    the use of already existing factories that produce products that best suit the tastes of the local population.
    establish a clear system of sales and distribution
    establishing a sales and marketing system and actively acquiring local production

    Strengthening and modernizing the production of infra s truc t u r f a bric s in d e p r o n i t i o n i n t h e c h o n o l o g s in pro duction.

    establishing a clear system of sales and distribution (the company itself was engaged in customs clearance and delivery of products to its own warehouses in the regions)
Markets and products:
Consumer segments:
    age (the age of buyers is quite diverse, affecting every age group)
    income level (focused on consumers belonging to different social classes, with different tastes and preferences and different income levels)
    types of products (the largest number of consumers prefer to buy traditional types of products)
Product mix:
For the successful promotion of this product, there are a number of conditions:
    Ensure high quality products (provide the plant with the latest equipment, select and train qualified personnel)
    Reinforce the goods with all appropriate quality and safety certificates in accordance with Russian standards.
    Develop product range
    Develop new products according to new customer segments.
    Create packaging that meets Russian climatic conditions, protecting products during storage and transportation.
Price policy:
The pricing method is active.
Seven main factors:
    high quality,
    planned assortment,
    brand awareness,
    developed infrastructure,
    effective advertising and distribution, implemented by a technological wholesale company.
The wholesale margin is from 18 to 29%, which is much higher than the wholesale margin for products of other industries. Retail margin - up to 55%.
Sales policy:
Products are sold through distributors and sold through branded refrigerators. Summer time - street trade, winter time - grocery stores and supermarkets.
The main logistics strategy of the Company is the ECR strategy (immediate response to market needs). In logistics, the Company uses a divisional linear-functional structure (ensuring effective management of logistics activities, providing for a functional division of managerial labor in structural divisions).
Communication policy:
The purpose of the communication policy is to inform about the appearance of Nestle products on the market, its high quality; create an image of a company open to dialogue.
The target audience, which should be affected by the communication policy, are potential consumers of products.
Developments:
Development of new types of ice cream for new and existing markets.
Staff:
Nestle recruits and trains highly qualified personnel.

Organization and budget:

The role of the parent company in shaping the marketing strategy at the regional and global level includes decisions that directly affect international customers. More often, it consists of decisions, coordination activities and policies that steer the marketing strategy in a certain direction, while leaving sufficient freedom for national units to adapt their marketing to national business conditions.
The budgeting process includes:
    preparatory (analytical) stage
    planning stage
    direct budgeting
    costs are taken into account
    general analysis of the work done and its results, conclusions.

List of literature and information sources

    Russian official website of the company www. nestle. en
    Foreign official website of the company www. nestle. com
    George Day Strategic Marketing. M.: Publishing house "EKSMO-Press", 2002. - 640p.
    "International Marketing", M.L. Lukashevich. Publishing house Publishing house of the St. Petersburg Engineering and Economic Institute, 1992
    Magazine "Company" ( www.ko.ru), No. 68 June 07, 1999, No. 381 September 12, 2005
    http://mi.aup.ru/res/96/562949956338096.html
    Dichtl E., Hershgen H. Practical marketing. - M: Higher School, 2004, p.67
    Magazine "Money" No. 41 (546) dated 10/17/2005, No. 17-18 (573-574) dated 05/08/2006,
    No. 41 (546) dated 10/17/2005
    http://www. dairynews. en / Information portal "Dairy Market News" interview with Paul Bulke, President of Nestle S. A. 02.07.2009

    http :// b 2 blogger . com/ press release “Research of the Russian ice cream market” 15.03. 2009

    http://www.kommersant.ru/ The newspaper "Kommersant" No. 89 (1047) dated 05/30/1996, Newspaper"Kommersant" No. 33 (3609) of 03/02/2007
    http://www.proriv.com/research/obzors/icecream.php Internet site of the company "Proryv" Review of the ice cream market.
    http://www.nestle.ru/Images/files/CSV_report_RUS_old.pdf Nestlé social report

    http://www.4p.ru/main/theory/ 1942/ M a r k e t ing “4 R” magazine “Typical Misconceptions of Russian o f ice cream makers 02.08.2006, Russia's ice cream market » 10.04.2008

Nestle Nestle is the world's largest food and beverage company, an expert in nutrition and a healthy lifestyle. Nestle's credo is to make life better by offering consumers only high-quality and complete products. Today, NESTLE is the undisputed leader in the food industry: the corporation owns more than 480 factories and production facilities in 87 countries around the world. Annual sales amount to more than 98 billion Swiss francs.

Strategic Marketing Positioning Strategy Nestlé is pursuing a strategy that focuses on cost management, due to the fact that the company is focused on the mass market and a large segment of consumers around the world, producing very large volumes. For this, it has economies of scale, good cost advantages and a high market share of goods production. This is a typical strategy for TNK, which is the Nestlé company.

Strategic Marketing Branding Strategy Nestlé pays special attention to its brands, constantly improving them. For example, since the 1970s, the main strategic goal of the company has been the acquisition of strategically advantageous enterprises. TNK NESTLE merged with such companies as: Alimentana S. A. - manufacturer of seasonings and soups MAGGI®, and was renamed NESTLE Alimentana Company; Crosse & Blackwell, a British manufacturer of canned foods; Findus (frozen food); Libby (fruit juices); Stouffer (frozen food).

Strategic Marketing As a result of the corporation's success, NESTLE made a strategic decision to move beyond the food industry when the company became the largest shareholder in L'Oreal. Then Alcon Laboratories, Inc. was acquired. is an American manufacturer of pharmaceutical and ophthalmic products. And a little later, Carnation (food) was acquired. On August 31, 2007, NESTLE S.A. completed the acquisition of Gerber, a well-known American manufacturer of baby food. This acquisition will make NESTLE the number one baby food company in the US and globally.

Strategic Marketing Nestlé's worldwide strategy is to make long-term investments. As part of this strategy, the company actively invests in the local production of the consumer country, the development of products that meet its tastes and traditions, and also uses local raw materials and components. Thus, Nestlé combines international experience and leadership in the food industry with the needs of customers.

Operational marketing One of the main components of operational marketing is the choice of the target market segment, which the company carries out as follows: Consumer profile: 1) age: the company's products are aimed at the population of any gender, from infants (Baby food) to the elderly (mineral waters, various cereals, sweets). As for coffee, then, of course, the main consumers are young people and the middle-aged population. Working population and leading an active lifestyle; 2) gender: practically no effect on the consumption of the product. Perhaps, in recent years, due to the “dietary boom”, girls and women consume a smaller amount of the product, but there are no significant fluctuations. 3) geographical feature: of course, the basis of consumers is the urban population. 4) income: anyone in the middle class can afford the company's products.

Operational marketing Nestlé pays special attention to the quality of its products and the conformity of the product to the wishes of the consumer. After all, the company learned first hand the risk involved in changing the marketing element of an "iconic" brand by transforming its Cailler chocolate line. The brand's sales skyrocketed for several months, after which Nestle brought in French architect Jean Nouvel to redesign Cailler's packaging and a renowned Spanish chef to invent new and interesting flavors. Unfortunately, Nouvel decided to use packaging with a high content of non-recyclable plastics, and Nestle raised prices, causing some retailers to openly boycott the product. In addition, the Wall Street Journal ran a fascinating article about another Nestle blunder with another of its "iconic" brands: the company's unsuccessful attempt to expand the line of the 75-year-old Kit brand of popular candy bars. Kat, offering consumers a wide variety of flavors from strawberry cream to passion fruit. As a result of the sale of Kit. Kat in the UK have plummeted. In April, the company came to its senses and abandoned the new flavors of Kit. Kat, and returned to the previous options. What is the lesson to be learned from all this? If a consumer has a love and emotional attachment to "iconic" brands, they often do not want the company to change them.

Operational marketing Production of goods can also be seen on the example of the Russian market: More than 80% of Nestlé products sold in Russia are produced there. This puts the company in a more advantageous position compared to other foreign companies - it partially protects against exchange rate fluctuations. But on the other hand, 50% of the raw materials and ingredients used are imported. Moreover, 20% of them can theoretically be replaced by Russian counterparts, but in practice this is still difficult to implement.

Operational Marketing As for the company's marketing strategy, we can say that it withstands all crisis fluctuations, for example: Work is underway to enter the market with new products of a low price category (but with the same level of quality). In particular, in 2008 the company launched the production of coffee in soft packaging. Such products have a lower cost and, accordingly, a final price compared to analogues in glass and tin packaging, which means that they are available to a larger number of consumers.

Characteristics of the marketing of the world's largest food manufacturer on the example of Nestlé (NESTLй)

The first to be helped by the mixture created by Nestle was a premature baby, whose body did not perceive either mother's milk or its substitutes that existed at that time. The baby, whom the doctors were powerless to help, survived only thanks to the efforts of Nestlé. After Nestlé's new breast milk replacer formula saved the baby's life, this product received well-deserved recognition, and within a few years Farine Lactee Nestlе was actively sold in most European countries.

Already in the early 1900s, Nestlé had factories in the US, Britain, Germany and Spain. In 1904, after reaching an agreement with the Swiss National Chocolate Company, Nestlé added chocolate to its product range. And in 1905, the company merged with its longtime rival, the Anglo-Swiss Condensed Milk Company. The resulting merger was named Nestlé and the Anglo-Swiss Dairy Company.

Condensed milk exports skyrocketed when Nestlé replaced sales agents with local affiliates. In 1907, the company set up full-scale production in Australia, its second largest export market. During the same period, warehouses were built in Singapore, Hong Kong and Bombay to meet the needs of the rapidly growing Asian markets.

However, most of the production facilities were still located in Europe, and the outbreak of the First World War dealt a serious blow to the company's activities. Obtaining raw materials and distributing finished products became increasingly difficult. Due to a shortage of fresh milk throughout Europe, factories had to sell almost all their stocks to meet the needs of the population.

But in spite of everything, the war created an incredible demand for dairy products, which was largely due to increased government orders. To cope with them, Nestlé acquired several more operating factories in the United States. By the end of the war, the company owned 40 factories, and the volume of production compared to 1914 had almost doubled.

With the end of the First World War, the company entered a period of economic crisis. Government orders with the cessation of hostilities ceased to arrive, and buyers, accustomed during the war to dry and condensed milk, switched back to fresh as soon as it became available. In 1921, Nestlé suffered losses for the first time. Rising commodity prices, the post-war lull in the entire world economy and falling exchange rates exacerbated the situation.

Quickly responding to the current economic situation, Nestlé's management invited an expert in the field of banking, Swiss Louis Daples, to reorganize the company. He streamlined the company's operations by aligning production with sales and reducing the company's outstanding debts.

The 1920s also saw the company move beyond its traditional product range for the first time.

Chocolate production has become the second most important activity of the company. Nestle began to regularly release new types of food products, including: milk with malt, an instant drink called MILO®, powdered sour cream for children.

In 1930, the Brazilian Coffee Institute asked Louis Daples to help develop new types of products that could solve the problems of marketing surplus coffee in Brazil. The result of eight years of research was the discovery of NESCAFÜ instant powder, which has revolutionized and changed the traditional view of coffee consumption around the world. Instant coffee NESCAFй very quickly gained immense popularity and became the key to the success of NESTEA tea, which the company offered to the world in the early 40s.

With the outbreak of World War II, Nestlé's profits dropped from $20 million (in 1938) to $6 million (in 1939). Neutral Switzerland became more and more isolated from the warring Europe, so the company transferred a significant part of its employees to the city of Stamford, Connecticut (USA).

The first truly global conflict in the history of mankind ended the traditional structure of the company. To overcome distribution problems in Europe and Asia, Nestlé opened new factories in developing countries, including Latin America.

Ironically, it was World War II that accelerated the spread of NESCAFÜ®, the company's latest development. After the US entered the war, NESCAFÜ became the main drink of American soldiers and officers serving in Europe and Asia. By 1943, NESCAF's production had reached one million boxes a year.

Just as during the First World War, the level of production and sales in the conditions of the war economy increased significantly: the total turnover of Nestlé increased from 100 million dollars (in 1938) to 225 million (in 1945). By the end of the war, Nestlé leaders had achieved a leading position in the global coffee business, as well as in other traditional Nestlé production areas.

The post-war years became the most dynamic period in the history of Nestlé's development. A diversified approach to the food market formed the basis of the new strategy and allowed the company to respond even more effectively to consumer demand. Due to the accession of a number of companies to the corporation, dozens of new products have been added to the Nestlé range. In 1947, Nestlé merged with Alimentana S.A., the manufacturer of condiments and soups MAGGI®, and was renamed the Nestlé Alimentana Company. This was followed by the acquisition in 1950 of Crosse & Blackwell, a British manufacturer of canned foods, as well as Findus (frozen foods) in 1963, Libby (fruit juices) in 1971 and Stouffer (frozen foods) in 1973.

In the same period, the rapid development of the NESCAFй® trademark began. Instant coffee sales nearly tripled between 1950 and 1959, and quadrupled again between 1960 and 1974. In the 15 years since the end of World War II, the company's total sales have doubled. The development of the latest freeze-drying technology (i.e., drying under low-temperature vacuum conditions) led to the appearance of Taster's Choice brand instant coffee on the market in 1966. The result of the corporation's successful activities was the decision of the management to take Nestlé out of the food industry, and in 1974 year, the company became the largest shareholder of L "Oréal.

After concluding an agreement with L "Oréal in 1974, for the first time since the economic crisis in the early 20s, Nestlé's position in the world market was shaken. First of all, this was caused by an increase in oil prices and a slowdown in economic growth in industrial countries. In addition, there was a devaluation of foreign currencies, including the French franc, US dollar, pound sterling and the German mark against the Swiss franc.As a result, coffee prices quadrupled between 1975 and 1977, and cocoa beans by 3. As in 1921, the company had to react quickly to a fundamentally changed situation.

Under the leadership of the new President of Nestlé, Helmut Maucher, the company entered the 80s with new strength and determination to develop further. During this period, the company set itself two main strategic objectives: strengthening the financial position through internal reorganization and continuing the policy aimed at acquiring strategically advantageous enterprises.

Thus, in the period from 1980 to 1984, the company sold several enterprises that were previously part of the corporation, which were either unprofitable or did not fit into the overall development strategy. At the same time, Nestlé was able to put an end to a serious controversy over the marketing of baby food in third world countries. The resulting controversy led to the fact that a number of human rights and religious organizations announced a boycott of products produced by Nestlé. But, despite the fact that this issue is still being raised in some countries, there have been no more attempts to boycott Nestlé.

In 1984, Nestlé's improved economic position made it possible to make a number of new acquisitions, including the $3 billion auction purchase of America's largest food company, Carnation. The acquisition of Carnation in 1985 was one of the largest deals in the history of the food industry.

The first half of the 1990s was a favorable period for Nestlé, due to the ongoing integration processes in the world market and the elimination of many trade barriers. The opening up of new markets in Central and Eastern Europe as well as China, together with the general trend towards liberalization of foreign direct investment, bodes well for a company with such a wide range of activities.

Nestlé began the 20th century by merging with the Anglo-Swiss Condensed Milk Company to increase its product range and expand its geographic footprint. Today we can say with confidence that Nestlé is entering the new millennium as the undisputed leader of the food industry: the corporation owns more than 500 factories in 84 countries of the world; The annual sales volume of the Nestlé group of companies is more than 87 billion Swiss francs.

Since 1996, the strengthening of the consolidation of the Nestlé group has been confirmed by the acquisition of the Italian concern for the production of mineral water San Pellegrino (1997) and the British company Spillers Petfoods (1998). At the same time, the decision was made to sell the Findus brand in order to focus on the more profitable frozen food sector (1999). The acquisition of Spillers Petfoods strengthened Nestlé's position in the European pet food market, which the company entered back in 1985 after purchasing Carnation and its FRISKIES® brand.

Nestlé's decision to close its ground coffee operations in the US (Hills Bros, MJB, Chase & Sanborn) allowed the company to focus on promoting the new high-end NESCAFÜ® range, which began production on the West Coast in September 1999.

  • 2000 Acquisition of PowerBar.
  • 2001 Acquisition of Ralston Purina.
  • 2003 - Acquisition of Mövenpick, Powwow and Dreyer's.
  • 2004 Purchase of Valio (ice cream).

Sales for 2004 - 86769 million Swiss francs, including 28563 million in Europe and 27776 million in America.

Net profit for 2004 6717 million Swiss francs.

The value of all Nestlé shares is 39219 million Swiss francs.

The value of all assets of Nestlé at the end of 2004 amounted to 87,094 million Swiss francs.

Thus, the company's marketing strategy is presented as a set of strategies for individual areas of Nestlé's activities and even for individual products, but in general the following points are obvious:

On the basis of "market"

  • - a strategy of supporting marketing aimed at maintaining a full level of demand;
  • - the strategy of the "leader" and "frontal attack" in relation to competitors, that is, in various areas, such as advertising, prices, product updates, etc.;
  • - a holding strategy in relation to market share and an "attack" strategy for certain markets and product groups;
  • - the "dragonfly" strategy for the optimal number of markets, that is, access to the maximum possible number of markets in order to choose the most profitable ones;
  • - strategies on the basis of "market-product" apply full diversification, if classified according to the matrix of the "Boston Consulting Group" there are more "cash cows";
  • - for the company's growth strategy, product improvement and diversification growth are chosen.

Based on "goods"

  • - according to the nomenclature and assortment, a strategy of concentric diversification of goods was chosen, which involves the creation of new products from existing materials and technologies of the main production, as well as elements of a strategy for corporate diversification of certain goods that determine the company's entry into a new industry;
  • - according to the pricing strategy, there is an orientation towards consumer value and competitors' prices;
  • - different combinations of the vertical marketing system are viewed according to the sales method, preference is given to different distribution systems, but across the entire range of products;
  • - in the innovation of goods, all renewal strategies are observed, both on the basis of our own developments and through cooperation with other manufacturers.

Not always large financial investments in an advertising company and the optimization of the transfer of production to countries with cheaper labor and closer to the main buyers contribute to the maximum increase in sales in the desired region. But if large companies have a reserve of material resources to make mistakes, then most small and medium-sized companies should clearly understand the limits of their capabilities and not make gross mistakes.

Most often, small producers have to unite in temporary alliances to conquer a particular regional market, to go beyond their region, to promote their products on the recommendation and in conjunction with other manufacturers.

Introduction

1.2 Characteristics of the external macro environment of the company (PEST analysis)

1.1.1 Political environment

1.2.2 Economic environment

1.2.4 Process environment

1.3.1 Consumer

1.3.2 Suppliers

1.3.3 Intermediaries

1.3.4 Competitors

1.3.5 Success factors

1.4.1 Organizational structure

2. SWOT analysis of the company's marketing activities

2.1 Strengths of the company

2.2 Opportunities

2.3 Threats

3.1 Product policy

Conclusion

Introduction

1. Characteristics of the current marketing situation, description of the target market and the position of the company

1.1 Characteristics of the company's products, a brief description of the company

The company was founded in 1866 by Swiss pharmacist Henry Nestlé. He created food for babies. The new product was named Farine Lacte Henry Nestlé (Henry Nestlé Milk Flour), and within a few years it was actively sold in most European countries.

In the early 1900s, Nestlé had factories in the US, UK, Germany and Spain. In 1904, the company began producing chocolate by reaching an agreement with the Swiss National Chocolate Company.

Most of the production capacity was still located in Europe, and the outbreak of the First World War dealt a serious blow to the company's activities. But, in spite of everything, the war caused a large demand for dairy products, which was largely due to an increase in government orders. To cope with them, Nestlé acquired several more operating factories in the US. By the end of the war, the company owned 40 factories, and the volume of production compared to 1914 had almost doubled.

With the end of the First World War, the company entered a period of economic crisis. In 1921, Nestlé suffered losses for the first time. This forced the company's management to expand the traditional range of products. In 1930, the production of Nescafe coffee began, which changed the traditional view of coffee consumption around the world and very quickly gained popularity. In the early 1940s, the company began producing Nestea tea.

With the outbreak of World War II, Nestlé's profitability plummeted to overcome distribution problems in Europe and Asia, the company opened new factories in developing countries, including Latin America. The company has taken a leading position in the global coffee business. The post-war years became the most dynamic period in the history of the company's development.

At the moment, Nestlé products in Russia are represented by the following brands:

Coffee: NESCAFE®

Other drinks: NESQUIK ® , COFFEE-MATE ® , NESTEA ®

Chocolate and other confectionery products: NESTLE ® , KIT KAT ® , NUTS ® , AERO ® , NESQUIK ® , RUSSIA - GENEROUS SOUL ® , BON PARI ® , SHOCK ® , SAVINOV ®

Culinary products: MAGGI ® , TORCHIN ®

Ice cream: NESTLE ® , EXTREME ® , MAXIBON ® , MEGA ® , 48 KOPEEK ® , HEAVEN DREAM ® , KIT KAT ® , NUTS ® , NESQUIK ® , LARCHIK ® , BON PARI ® , NESTEA ® , MOEVENPICK ®

Porridges and cereal side dishes: BYSTROV ®

Ready breakfasts: NESTLE ® , NESQUIK ® , KOSMOSTARS ® , CHEERIOS ® , FITNESS ® , KHRUTKA;

Baby food: NESTLE ® , NAN ® , NESTOGEN ® ;

Clinical nutrition: CLINUTREN ® , PEPTAMEN ® , MODULEN ® ;

Drinking water: HOLY SOURCE ® , PURELIFE ® , PERRIER ® , VITTEL ® , CONTREX ® , S. PELLEGRINO ®

Catering: CHEF ® ;

Animal feed: PURINA ® One, PURINA VETERINARY DIETS ® , FRISKIES ® , GOURMET ® , DARLING ® , ​​DOG CHOW ® , CAT CHOW, PRO PLAN.

Nestlé's product range has over 8,000 brands of consumer products since its inception.

The company owns 513 factories and industrial enterprises in 86 countries of the world (14 enterprises are located in Russia).

The Russian division of the Swiss concern Nestle, the world's largest producer of food and beverages, increased its sales in Russia in 2008 by 26% compared to 2007, to 50.3 billion rubles.

The first quarter of 2009 showed good results, the second and third quarters will be much more difficult, as consumers face reality, but what will happen in the fourth quarter is absolutely not visible now.

Currently, more than 90% of the products sold in Russia, the company produces in the local market.

1.2 Characteristics of the external macro environment of the company (PEST-analysis)

The firm and its suppliers, marketing intermediaries, clients, competitors, and contact audiences operate within a larger macro-environment of forces that either open up new opportunities or threaten the firm with new dangers. These forces are the very "out of control" factors that the firm must closely monitor and respond to. Changes in the macro environment affect the strategic position of the enterprise in the market, affecting the elements of the micro environment. Therefore, the purpose of macro-environment analysis is to track (monitor) and analyze trends/events beyond the control of the enterprise that may affect the potential effectiveness of its strategy. Since the number of possible factors of the macro environment is quite large, it is recommended to consider four key areas when analyzing the macro environment, the analysis of which is called PEST-analysis (according to the first letters of the English words political-legal (political and legal), economic (economic), sociocultural (socio-cultural), technological (technological factors)). The purpose of PEST analysis is to track (monitor) changes in the macro environment in four key areas and identify trends and events that are not under the control of the enterprise, but that affect the results of strategic decisions made.

1.2.1 Political environment

Currently, the situation in our country, as well as around the world, is not stable. The economic crisis “caught by surprise” many large enterprises and manufactories, not to mention smaller enterprises that went bankrupt altogether. Companies are losing money and forecasts for 2009 are not encouraging. But such a large international company as Nestle has nothing to fear - it certainly does not threaten ruin. In 2009, the percentage of sales will decrease by 2-3%, but in the future, as the company's managers predict, the situation will stabilize.

The food industry is not strategically important for the country, so government intervention is practically reduced to zero. The state indirectly controls the industry through laws.

1.2.2 Economic environment

In January-February, the gross domestic product (GDP) of Russia decreased by 8 percent, and the decrease in the indicator in the first quarter of 2009 will be 7 percent as of March 19, 2009 compared to the same period in 2008. In February 2009, it became known that the Russian economy shrank by 8.8 percent in January compared to the first month of 2008. At the same time, the country's GDP decreased in January by 2.4 percent compared to December 2008. The decline in demand for industrial products and the deterioration of bank lending conditions will contribute to the continuation of the recession. The ministry predicts that by the end of the year, Russia's GDP will decline by 2.2 percent, and in nominal terms - by 2.7 percent.

Thus, in 2009 the nominal GDP will amount to 40.42 trillion rubles, which is 1.11 trillion less than in 2008. At the same time, nominal GDP, recalculated in US dollars, in 2009 will decrease by 31.2 percent - up to 1.15 trillion dollars. Before the crisis, the Ministry of Economic Development expected nominal GDP to reach 51.47 trillion rubles in 2009. It is worth noting that the reduction in nominal GDP in ruble terms will occur for the first time since the early 1990s. In 2008, nominal GDP grew by 25.4 percent in rubles and by 29.5 percent in dollars. Also, for the first six months of this year, inflation may reach 9.5-10 percent against 8.7 percent a year earlier. In the second half of the year, according to the estimates of the head of the Ministry of Economic Development, consumer price growth may slow down to 3-3.5 percent. In 2008, over the same period, inflation reached 4.2 percent.

Prices: Considering that the trade margin of chains for goods is at least 10-15%, and for many goods the average mark-up is 30-40%, then, even based on the minimum level of trade margin, the total pressure on the final price of goods of all mark-ups and payments formed in retail chains, ranges from 20 to 60%, according to the FAS. In February, selling prices for Nestle products were already raised by 4 to 14% depending on the product category due to the fact that most of the raw materials, mainly for the production of coffee, chocolate and spices, are imported. And, most likely, there will be further price increases.

The current situation cannot be called favorable. The deterioration of the economic condition of citizens leads to the fact that they will buy essential goods. Consumers will buy coffee, chocolate and other Nestle products in smaller quantities, although, of course, the level of consumption will still remain quite high.

1.2.3 Socio-cultural environment

Currently, there is an increase in the population, and therefore, a new layer of potential buyers is being formed.

Every person consumes Nestle products almost daily. Chocolate, sweets, iced tea, coffee - you can hardly do without it. Urbanization entails the rapid development of enterprises, an increase in the number of organizations, and the acceleration of the rhythm of people's lives. Therefore, you have to go to bed late in order to have time to do all the work, have breakfast at work. And coffee is the best helper. Drinking a cup of coffee in the morning has become a habit. This drink appeared in our country relatively recently, but has already become the main one, carrying a “charge of vivacity”. The company's products are consumed by citizens of any age, excluding babies and the elderly.

1.2.4 Process environment

Nestle will always adhere to a balanced policy in the development of new territories and the expansion of production. Long-term commitments and potential opportunities will never be sacrificed in the pursuit of short-term profits. The priorities of the company will always be the production of the best and highest quality products for people, no matter where they are, as well as the compliance of the products produced with the needs of a person from the moment of birth and throughout his life.

Nestle maintains bilateral relations with scientific and professional organizations in order to continuously update and replenish knowledge, which allows the companies of the Nestle group to constantly improve their products and the quality of services provided.

On a global scale, Nestle focuses on SAP solutions. A promising task is to transfer the maximum number of business processes to the information support of these products. This work is complex, gradual and involves significant changes in processes - both in the company itself and in the system being implemented. Of course, in addition to the main solution, which is ERP, there are other systems that are responsible for some specific business tasks that cannot be solved by this basic ERP system. Moreover, business is always development, and new business processes arise in the company that need automation.

Information systems, just like business, are evolving, and this process needs to be managed - centrally and on an ongoing basis. Nestle has created and successfully operates a program called Global Business Excellence, or GLOBE, for this purpose. At the initial stage, her task was to install a SAP solution, specially adapted to the specifics of Nestle's business processes on a global scale (SAP GLOBE), but taking into account the needs of the local market. This meant a significant adaptation of the standard functionality of this system, especially in the field of finance and cost accounting (Nestle uses its own standard - Nestle Accounting Standards). In Russia, this project was completed in September 2005, when SAP GLOBE was implemented at the central office in Moscow, at all factories and distribution centers. To date, the tasks are concentrated in three main areas: implementation of the existing SAP GLOBE solution at new enterprises of the Nestle group of companies in Russia, support for its current configuration to ensure the smooth operation of the relevant information services in the system and the effective use of the existing SAP functionality within the company's activities, often by implementing the best practices of Nestle aimed at optimizing business processes.

1.3 Characteristics of the external microenvironment of the firm

The microenvironment is represented by forces that are directly related to the firm itself and its ability to serve the clientele, i.e. suppliers, marketing intermediaries, customers and competitors. The macroenvironment is represented by forces of a broader social plan that influence the microenvironment, such as demographic, economic, natural, technical, political and cultural factors. Let us first consider the firm's microenvironment. The main factors of the microenvironment of the functioning of the firm. The main goal of any firm is to make profits. The main task of the marketing management system is to ensure the production of goods that are attractive in terms of target markets. However, the success of marketing management depends on the activities of other departments of the company, and on the actions of its intermediaries, competitors, etc. Marketing managers cannot be limited only to the needs of the target market. They must take into account all factors of the microenvironment.

1.3.1 Consumer

The existence of a company is possible only if its products (goods or services) are consumed by someone. The success of the company depends on how consumers behave (actively, passively). The more consumers, the more profit. Therefore, the task of the company is to attract as many customers as possible.

Nestlé's goal is to create a product of high quality, guaranteed and unchanged for a long time, serving the needs of consumers for nutrition, pleasure and quality they can trust.

Nestlé is a consumer-oriented company that strives to create products that meet the tastes and wishes of consumers in more than 100 countries in which the company operates. The company listens to the opinions of consumers and strives for dialogue with them, establishing it in many countries through telephone hotlines, Internet sites and other means. In addition, we strive to ensure that our products meet consumer preferences as closely as possible, and conduct extensive product testing to ensure that consumers prefer our products to competitors' products.

Communication with consumers: Nestlé is trying to convey to consumers its position regarding proper nutrition and a healthy lifestyle. In particular, it is attentive and responsible to the need to teach children the rules of healthy eating. Therefore, the Nestlé Group companies follow the detailed “Principles of Communication with Consumers” (published in 2003 and available upon request), compiled on the basis of the Core Principles listed below. All advertising materials are reviewed by Nestlé's management in the field for compliance with Nestlé's Business Principles, and all television advertising is viewed on a regular basis at Nestlé's headquarters in Switzerland.

User portrait:

1) age: the company's products are aimed at the population of any gender, from infants (baby food) to the elderly (mineral water, various cereals, sweets). As for coffee, then, of course, the main consumers are young people and the middle-aged population. Working population and leading an active lifestyle;

2) gender: practically no effect on the consumption of the product. Perhaps, in recent years, due to the “dietary boom”, girls and women consume a smaller amount of the product, but there are no significant fluctuations.

3) geographical feature: of course, the basis of consumers is the urban population. In small towns and villages there is no need to use this product.

4) by income: any person of the middle class can afford the company's products. Since coffee is not an essential product, therefore, low-income people will not buy it, as it can be replaced with cheaper products.

1.3.2 Suppliers

Suppliers are business firms and individuals who provide a company and its competitors with the material resources needed to produce a particular product or service.

Nestle strives to work only with reputable suppliers who are ready to apply the quality standards set by Nestle. In order to constantly improve the quality of products and the level of service, an analysis and evaluation of supplier relationships is carried out. As the relationship between the company and the supplier strengthens and develops, the latter may receive the status of a preferred supplier. Nestlé conducts due diligence on contracted suppliers to see if their performance is in line with Nestlé's founding principles, or at least to ensure that the supplier is making every effort to achieve the best possible compliance with Nestlé's standards. at Nestle. In the event that the supplier's activities do not comply with the principles of Nestle, the company will always demand that measures be taken to eliminate the violations. Nestle personnel must demonstrate the highest level of integrity and professionalism in all business dealings. In case of misconduct or violation of the company's standards and guidelines, administrative sanctions will be applied.

Nestle insists on honesty, integrity and fairness in all aspects of its business and expects the same from its business partners and suppliers of materials, products and services.

1.3.3 Intermediaries

Marketing intermediaries are firms that assist a company in promoting, marketing, and distributing its products to a clientele. These include resellers, distribution firms, marketing services agencies, and financial institutions. Resellers are business firms that help a company find customers and/or directly sell its products to them. Resellers can provide the convenience of place, time, and purchasing procedures to customers at a lower cost than Nestle could have done on its own. If the company wanted to provide the aforementioned amenities on its own, it would have to finance, organize and operate a large system of outlets throughout the country. Therefore, Nestle considers it more reasonable to cooperate with a system of independent resellers.

1.3.4 Competitors

Mars is a traditional contender in the candy bar sector. Their main advantage is that they can only concentrate on their direction. If we talk about drinks - coffee and tea - then this is Kraft Foods. A few years ago they bought Jacobs: Jacobs and Maxwell coffee brands. In addition, Kraft acquired Stollwerk, which is the leader in the cheap chocolate market: here they sell Alpen Gold, Taco and Pokrov. A competitor in the coffee market is Tchibo, as well as newcomers to the market - Elite or Ambassador. The Maggi brand has Gallina Blanca as its main competitor in the broth sector. They entered the market in 1991, overtook and are still ahead of Nestlé. There is a local leader in the soup sector - Russian Foods. If we talk about mayonnaise (we are not talking about the market as a whole - it is huge for Russia and very local, but we are talking only about the expensive segment) - there is a competitor to Unilever. It owns Calve, but now they are having problems because, having bought Knorr and with it Hellmann`s (it is the world's largest producer of expensive mayonnaise due to leadership in the US and other countries, such as Poland), the company became the owner of two brands at once competing with each other in the same price group.

In one, however, Nestle is inferior to its competitors in the US and Europe - in terms of profitability. As a result of several years of restructuring, Nestlé was able to increase its operating profit margin from 10.3% in 1997 to 12.3% in 2002. And yet it loses out to both Kraft Foods and Unilever in this measure. . The American Kraft, which holds the second place in terms of sales in the global food market, recorded an operating profit margin of 22% in 2002. And Unilever, which occupies the third position, has 14.5%.

1.3.5 Success factors

There are few examples in history when such large corporations as Nestlé managed to maintain their leading positions for many decades, regardless of conditions and changes in the world market. The key to Nestlé's success is the fundamental principles of activity that the company has been following since its inception to the present day. The company plans to further expand its product range by developing new and improving existing products and brands. Nestlé will always adhere to a balanced policy in developing new territories and expanding production. Long-term commitments and potential opportunities will never be sacrificed in the pursuit of short-term profits. The priorities of the company will always be the production of the best and highest quality products for people, no matter where they are, as well as the compliance of the products produced with the needs of a person from the moment of birth and throughout his life.

Key success factors:

Strong brand;

Active competition policy;

High quality products;

Extensive work experience;

High qualification of personnel;

Clear identification of development goals and strategies;

Successful pricing policy.

1.3.6 Analysis of the main development trends

The Nestlé group of companies occupies about 1.5% of the global food and beverage market, being the largest producer in these categories. In 2006, the company's worldwide sales reached $78.8 billion.

In 2006, the sales volume of the Nestlé group of companies in Russia amounted to 1.4 billion US dollars.

Supporting the global trend of consumer choice in favor of a healthy lifestyle, one of the most important areas for the company's development has been the global transformation of Nestlé into a world leader in the field of healthy and proper nutrition.

Over the past 3-4 years, the consumption of natural food enriched with vitamins, minerals and trace elements has grown by 35% worldwide. In Russia, 65% of the population, taking care of their health, prefer to choose high quality products with additional nutritional value.

Nestlé, responding to the needs of the market, and also guided by the desire to constantly improve the nutritional value of its products, focuses on healthy and proper nutrition.

The development strategy of Nestle in Russia is, in fact, the history of consumer preferences of the Russian market of the last decade. We started with the import of products, but quickly moved to the organization of production - through the purchase of enterprises. "We bought Rossiya, a Samara chocolate factory, first. Nestle's managers decided that Rossiya was first and foremost a good brand," recalls Mr. Guldenberg. In parallel with the purchase of factories, brands were developed for the local market. Now Nestle has begun a "second wave" of investments in the Russian market - the development of a business selling more specialized products, such as mineral water or animal feed.

1.4 Analysis of the factors of the internal environment of the company

1.4.1 Organizational structure

Nestlé is a multinational corporation, one of the oldest and most famous food manufacturers. It has operating companies in 75 countries, 282 factories in 56 countries and 14,000 employees. The headquarters is located in Switzerland. Operating companies carrying out current activities bear full responsibility for profits and losses.



Rice. 1. Organizational structure of Nestlé corporation management


PRODUCT MANAGEMENT AND MARKETING SERVICES

P R O D U C T E D I R E C T O R


Commercial Secretariat
Graphic and printed works
Administration


Rice. 2. Head of marketing in the enterprise management system

Summarizing the above, we can distinguish the following main functions of the marketing manager:

Selection of marketing goals and strategies, determination of the resources required for this;

Development of detailed plans for marketing activities, including sales;

Evaluation of the results of marketing activities;

Selection, training and consulting of employees of marketing services.

Marketing department

Informs the necessary employees about the marketing plans of the company;

Plans the placement of merchandising equipment; - collects information about the activities of competitors and sends out proactive information about their possible activity; - develops and carries out marketing researches of the market.

Finance Department - analyzes the activities of each individual bottler or distributor and recommends changes in the structure and level of analysis of selling prices, staff remuneration, financial policy; - Performs bookkeeping and financial planning.
Human Resources Department provides recruitment, personnel rotation control
Production Department ensures the functioning of the production of beverages, their packaging and quality control
Technical department repairs and maintains commercial equipment
Sales Department -performs sales functions; - provides control of the client base, their accounting, search for new clients; -Provides the work of sales representatives; - supervises the work of merchandisers.
Logistics Department carries out operations and their control for the delivery of goods to the warehouses of wholesale, retail consumers or a distributor.

1.4.2 Marketing information system

To make absolutely any management decision - from changing prices to opening a new outlet, information is needed. As a rule, marketing research is carried out to meet the information need. However, decisions are made constantly, therefore, information for their adoption is also constantly required, and marketing research is carried out at fairly long intervals. At the same time, the company often has almost all the necessary information at its disposal, it is simply not systematized and not ready for use. This information can be organized and prepared for use by introducing a marketing information system (MIS), which is an algorithm that allows you to regularly collect the information necessary for decision-making from various external and internal sources and transfer it to interested parties.

An example of using a marketing information system.

In a clothing store, sales suddenly plummeted; urgent need to determine the cause and take countermeasures. In the absence of MIS, it is necessary to conduct a survey of buyers, find out their opinion (it is fraught with a loss of time and a further drop in sales). And if MIS is established in this store, then it is enough for management to familiarize themselves with the weekly reports of sellers (in which they record the most frequent comments and statements of buyers) in order to see that the air conditioning system in the store failed in the midst of the summer heat, with which and associated with a drop in sales. Thus, as a result of the use of MIS, both time and money are saved.

The main functions of the MIS are data collection, analysis, storage and transfer to interested parties. With the help of a marketing information system, the necessary information is collected from various sources (external and internal), processed and transmitted to decision makers (see the scheme of work of the MIS).

The marketing information system itself consists of four subsystems:

The internal reporting system is responsible for the collection, processing and analysis of internal data. The company always has very valuable information about stocks, sales volumes, advertising costs, revenues. The internal reporting system allows you to save this data and convert it into a form convenient for work, as a result of which you can analyze the profitability of specific goods / services, distribution channels, consumers, sales dynamics, etc.

The system of analysis of internal marketing information is a one-time analysis of internal information carried out to achieve a specific goal (for example, analysis of changes in the sales volume of a product after a change in its price or an advertising campaign). Such an analysis is carried out whenever the need arises.

The system for monitoring the external environment includes tracking changes in legislation, the economic state of the country / region and the level of income of citizens, changes in the production technology of the company's goods, the emergence of new technologies and new competitive products, etc. For example, a billiard company operating in the St. Petersburg market needs to monitor changes in federal and local legislation, changes in the level of well-being of city residents, trends in changing forms of leisure activities, a decrease / increase in the popularity of playing billiards, the emergence of new technologies in the manufacture of billiard tables, balls, cues and other equipment, and other factors. All these parameters in the future may affect the company's business, so it is necessary to recognize them in a timely manner and adjust activities in accordance with their change.

Marketing research system: special marketing research is an integral part of the marketing information system and differs from the systematic observation of the external environment in its target orientation - marketing research is usually carried out to obtain information on a specific issue to solve a very specific problem.

The four subsystems of MIS, working in a coordinated manner, make it possible to highlight all the processes and events taking place both inside and outside the company, and serve as an indispensable basis for developing its strategy.

Thus, the marketing information system:

Enables leaders and managers to make more informed decisions and reduces the likelihood of errors by providing the right information to all those who need it.

· allows the company to timely catch all the changes taking place in the market, and promptly respond to them.

· Disciplines employees, teaches them to track current events and see how they can affect the development of their company.

organized collection of information;

avoidance of crises;

marketing plan coordination;

· speed;

results expressed in a quantitative form;

cost-benefit analysis


2. SWOT -analysis of the company's marketing activities

2.1 Strengths of the company

Affordable prices;

Well established distribution channels;

The intermediaries selling the company's products are highly professional;

Extensive work experience;

Nestle believes that the size of the company and the complexity of the business are among the most important competitive advantages. Although the company sometimes sells individual divisions (for example, in January 2002, the spice business of the Swiss company Givaudan was sold for 750 million Swiss francs), Nestle does not plan to significantly change the range of its products and brands.

According to a Nestle report, in the first six months of this year, the corporation's net profit rose by 18.4% to 4.92 billion Swiss francs ($4 billion), surpassing analysts' forecasts (4.56 billion francs). The company's sales increased by 8.4% and amounted to 51.11 billion francs ($42 billion). The growth of financial indicators at Nestle is explained by high demand for the company's products, which was not affected even by an increase in its value due to an increase in raw material prices, in particularly milk and cereals.

The results were higher than expected. Nestle copes well with rising costs: it transfers them to retailers, who, in turn, to consumers. According to Nestle's forecast, the corporation's net profit for the year will exceed its own expectations. At the same time, the Swiss company warned that due to the increase in the cost of raw materials, sales growth could slow down.

Of all the major food companies, Nestle is the most decentralized. Nestle plans to fight and has developed several programs to this end. One of them is called Globe and provides for cost reduction. The other two focus on improving supply chain management and administrative efficiency.

2.2 Opportunities

Increase in demand;

Expansion of the range;

Increase in market share;

Nestle, one of the world's leading food manufacturers, plans to invest 650 million rubles to expand the production of ready-made breakfasts at Sirial Partners LLC (Perm). According to the company's press release, investments will be made for the period from 2008 to the first quarter of 2009. The company's total investment in Sirial Partners LLC exceeded $10 million.

Nestle is now undertaking perhaps the biggest reforms in its entire 137-year history - the reengineering of information and business processes to transform the company into a single international "organism". This means a global restructuring of all processes: from the purchase of raw materials, such as cocoa beans, to the production, marketing and sales of finished products, such as chocolate and instant coffee.

2.3 Threats

Market saturation - a large number of competing companies, both domestic and foreign;

Entering the market of new competitors and strengthening the positions of old ones.

Nestlé supports freedom of enterprise and thus enters into fair competition, recognizing other companies with equal rights to similar actions. The Company supports the development of competition laws in order to protect the principle of fair competition. In particular:

· independently determines its commercial policy and does not set prices by agreement or conspiracy with competitors;

does not allocate customers, territories or product markets by agreement or collusion with competitors;

· interacts in good faith with its customers and suppliers in accordance with competition law;

· considers mergers and acquisitions of companies as a means of increasing the efficiency of doing business, and not limiting competition;

· Nestlé makes trade payments, taking into account the efficiency of customers and services rendered.

Despite its immense size, Nestle, which produces a ton of products - from Stouffer's ready-made cereals to Nescafe instant coffee and Kit Kat chocolate bars, is still one of the fastest growing food companies in the world. Today, however, this Swiss the company publishes a report on the results of the first half of the year, in which it admits that, using standard methods of calculation, its sales decreased by 4.5%.

Thus, we can safely say that the company, despite its age, “has still gunpowder in the flasks”: profit is growing every year, competitors do not scare it at all, on the contrary, they encourage it to improve, to develop new products and ways to distribution. The company plans to expand the consumer market both in Russia and in other countries.

3. Formation of goals and marketing plan

3.1 Product policy

Expanding the range of goods, improving quality by improving production technologies. Expansion of the range of meat, fruit purees, and Nestle fish puree "Little Fisherman's Delicacy" appeared.

In August 2007 the opening of a plant for the production of dry pet food for the Russian division of Nestle Purina PetCare, which is part of the Nestle group of companies. The new factory, located in the Kaluga region, became the first local production of Nestle Purina Petker. The release of products - dry food for cats and dogs under the trademarks FRISKIES® and DARLING® - began in autumn 2007. The capacity of the first stage of the factory was about 40 thousand tons of finished products per year. The volume of investments in the construction and equipment of the factory exceeded 30 million US dollars. In early 2009, the company announced a major new investment to expand the factory's production. About one billion rubles will be invested in the construction of the second stage of the factory for the production of wet pet food under the FRISKIES® trademark. Completion of construction and start of production are scheduled for summer 2009.

In accordance with the plans of the Nestle company announced at the end of last year to expand the Nestle Kuban factory, in the period from 2009 to 2011. Nestlé intends to invest 240 million Swiss francs (more than 7 billion rubles). Investments will be directed to increase the production capacity of the factory and the introduction of a new technology for the production of coffee - sublimation. This technology is already successfully applied by the company in many countries of the world, and its implementation at the plant in Timashevsk will provide a full cycle of production of NESCAFE® Gold instant freeze-dried coffee. The start of production is scheduled for 2011. The planned production volume in 2011 is 12,000 tons of freeze-dried coffee for Russia and the CIS countries.

3.2 Pricing policy

Due to the current economic situation, prices are going up. In February, selling prices for Nestle products were already raised by 4 to 14% depending on the product category due to the fact that most of the raw materials, mainly for the production of coffee, chocolate and spices, are imported. And, most likely, there will be further price increases.

Of course, the company felt the impact of the crisis. In connection with the devaluation of the ruble, there is some rise in the cost of the company's products, but it is significantly behind the level of the fall of the Russian currency against the dollar and the euro - the company takes on part of the costs (due to internal resources, cost optimization). More than 80% of Nestlé products sold in Russia are produced here. This puts the company in a more advantageous position compared to other foreign companies - it partially protects against exchange rate fluctuations. But on the other hand, 50% of the raw materials and ingredients used are imported. Moreover, 20% of them can theoretically be replaced by Russian counterparts, but in practice this is still difficult to implement. Most Russian enterprises cannot maintain the required level of product quality for a long time and with large production volumes (and Nestlé has very high requirements for the raw materials used). But over time, it is still supposed to replace these 20% with products from Russian manufacturers. The general marketing strategy of the company did not change due to the crisis. Work is underway to bring new products to the market at a low price category (but at the same level of quality). In particular, in 2008 the company launched the production of coffee in soft packaging. Such products have a lower cost and, accordingly, a final price compared to analogues in glass and tin packaging, which means that they are available to a larger number of Russians.

3.3 Advertising policy

It is believed that the main changes that will be this year relate to advertising. First, focus on more effective communication channels to connect with consumers. In Russia, unlike a number of other countries, most of all advertising is presented on television. According to expectations, prices for this type of advertising should change a lot compared to last year: increase. Many advertisers will no longer work so actively, and someone will leave this market altogether. The main brands will be mainly represented on television. Regarding advertising on the Internet: of course, money continues to be invested in this type. It all depends on the product group and target audience. In the future, the company will be more represented on the Internet. In 2009, special attention will be paid to this issue.

Nestlé is the world's largest beverage and food company. Nestlé's initial desire is not only to successfully develop its business and contribute to the development of the Russian economy, but also to contribute to other areas of activity that are of value to society and the country. Nestlé carries out many charitable programs. In Moscow alone, Nestlé supports more than 40 charitable organizations in their campaigns aimed at helping children, the disabled and the elderly. Nestlé is a sponsor of the Nutrition Conversation program, which teaches children of primary and secondary school age how to properly relate to nutrition. Equiros Junior program "Happy childhood!" is a great initiative that Nestlé enthusiastically supports.

In Russia, Nestle also seeks to contribute to solving important social problems that are of value to society and the country as a whole. A striking example of the company's social responsibility and its concern for the younger generation was the school educational program "Conversation about Proper Nutrition", which in 2009 celebrates its 10th anniversary. Many years of experience in the implementation of this program together with the Ministry of Education of the Russian Federation confirms its high efficiency: it helps to form in children a culture of proper nutrition and skills that preserve health. The program is taking place in 27 regions of Russia, more than 2.5 million children have already taken part in it. The total investment in the development and development of the program amounted to more than 125 million rubles.

Nestlé is stepping up its advertising strategy to improve performance. The slogan "Russia is a generous soul" was promoted according to all the rules. It was a well-thought-out advertising concept that ensured success on the market for Samara chocolate and sweets, "Shock" bars, and "Savinov" caramels. By the way, both "Shock" and "Savinov" are already a new Nestle product, specially created for the Russian consumer. These two brands were promoted to the national level in just a year or two and did not get lost in the market.

The Nestle Food company and the Nestle trademarks constantly hold various promotions and prize draws for their consumers, by taking part in which you can win prizes and gifts from the Nestle company. It is enough just to list the actions held on the territory of Russia, and each person will understand how many of them are held by Nestle.

Nestle Classic (sets of chocolates and Nestle Classic chocolate bars) held a pre-New Year advertising campaign "Lay a ski track in Switzerland". The top three winners of the raffle were treated to a week-long trip for four to a ski resort in Switzerland.

The drawing of the Maggi prize "Live without trouble for 5 years" took place in September 2000 in the program "Oh, lucky!" on the NTV channel. It was promised that the winner for 5 years would receive 20,000 rubles a month from Maggi.

Nestle held promotional campaigns in 240 schools in St. Petersburg and 1160 schools in Moscow. For each such "holiday" from 200 to 400 students of grades 1-3 gathered. The program to familiarize children with Nesquik is carried out as part of extracurricular activities. In Russia, neither the law nor the codes of ethics forbid promotions in schools. This technique, in addition to Nestle, is also used by Procter & Gamble and Coca-Cola.

The company uses all kinds of media: television, radio, targeted advertising, all kinds of promotions, raffles, shows and even specialized concerts.

4. Development of marketing strategies

The development of a marketing strategy is necessary to ensure the effectiveness of ongoing marketing activities. The development and implementation of a marketing strategy in consumer markets requires any company to be flexible, able to understand, adapt and, in some cases, influence the operation of market mechanisms using special marketing methods.

Most of the strategic decisions that any company makes are in the field of marketing. Creation of a new business, mergers and acquisitions, development of a new market niche, dealer policy, narrowing or expanding the product line, selection of suppliers and partners - all these and many other decisions are made as part of the marketing strategy. The success of the business depends on the adequacy of the marketing strategy of the company.

The marketing strategy usually contains:

Long-term plans of the company in consumer markets;

Analysis of the structure of the markets under consideration;

Forecast of market development trends;

Pricing principles and competitive advantages;

Selection and justification of the effective positioning of the company in the market

The development of a marketing strategy contains the following steps:

Analysis of the strengths and weaknesses of the enterprise;

Analysis of market opportunities;

Industry analysis;

Market potential assessment;

Analysis of competitors;

Studying relationships with clients and partners;

Analysis of the influence of the external environment;

Marketing audit;

Marketing audit of the internal environment;

Determination of directions for improving old and developing new products;

Development of a marketing plan;

Monitoring and control of marketing activities.

The market situation is not constant, timely actions of competitors can dramatically change the position and importance of the company in the market. Therefore, timely action and strong marketing are needed. A marketing strategy is not only what you will need tomorrow when you become even stronger, but it is also what you need today. A marketing strategy is a necessary step in the preparation and implementation of any business plan.

A marketing strategy allows you to answer these vital questions and get the company's management an effective development plan.

The development of a marketing strategy will allow the company to:

Significantly expand the customer base and increase sales;

Increase the competitiveness of products/services;

Establish a regular mechanism for modifying existing and developing new products;

Create a tool for mass customer acquisition;

Develop an effective pricing and product policy;

Create a mechanism for monitoring marketing activities;

Improve the quality of customer service.

6. Costs of marketing activities and marketing budget.

Marketing budget - a financial marketing plan, a scorecard, a section of an enterprise's marketing plan, in which, in a detailed form (by elements of the marketing mix or by marketing activities), the costs, incomes and profits from (for) the implementation of the company's marketing activities are given. Marketing budgeting can be based on target profit or based on profit optimization. There are several common methods for setting a marketing budget:

1. The method of budgeting "from opportunities".

In this case, the marketing manager goes to management and asks how much can be planned for advertising. And then he reassures the boss "we'll try to meet it." The method is found mainly among firms focused on production rather than marketing. Leads to the allocation of arbitrary amounts to advertising, often expressed as a "residual method" of funding, puts marketing activities at a disadvantage.

2. Fixed interest method. The method is based on the deduction of a certain percentage of last year's or expected amount of sales. The method is simple, but the least logical, because puts advertising (one of the causes) in a position of dependence on sales success (the effect). With a reduction in sales volume, it leads to a reduction in marketing costs, although the reverse ratio may be necessary. And most importantly, if the budget is drawn up in this way, it does not take into account either the development of new markets, new target groups, or competitors who have just started their activities and have not yet managed to influence the volume of sales of the enterprise.

3. The method of matching a competitor.

It assumes that in order to develop a market share equal to that of a competitor, it is necessary to allocate amounts of funds for marketing equal to the competitor's budget, and the won market share will be directly proportional to marketing costs. Can be justified on the assumption that competitors have experience and knowledge, they know what they are doing, but this is stupid. It does not take into account that the relationship between the volume of advertising costs and market share is not linear. 4. The method of maximum costs.

Affirms that marketing should be spent as much as possible. It does not take into account that there is a significant time interval from costs to results. Can lead to serious financial hardship. So, the economic efficiency of marketing activities is a relatively diverse (at all stages of the marketing process) result that meets the final and intermediate goals of marketing activities. In addition, the economic efficiency of marketing activities is the ratio of the result (effect) from marketing activities to the entire set of costs necessary for their implementation.

Indicators of the effectiveness of spending money on marketing can be: - the ratio of spending on marketing activities to sales volume; - the number and volume of sales directly on promotions; - change in the popularity of the company's products as a result of advertising activities; - profit attributable to one employee of the marketing department. The task of marketing control also includes a thorough analysis of complaints and the return of the goods sold, identifying the causes and developing measures to prevent the recurrence of such cases. The most important task of increasing the effectiveness of marketing is to train the company's specialists in methods for assessing the financial consequences of their decisions.

The starting point for developing a marketing budget is the accepted goals and objectives of the enterprise, as well as the developed marketing activities and action program.

The development and approval of the budget consists of two stages:

1. Heads of departments and leading specialists of the company determine their funding needs to achieve their goals. This data is collected and transmitted to the management of the enterprise.

2. The management of the company and the head of the company analyze the budget, evaluate the compatibility of specific goals and means with the broad goals of the company, give their recommendations and comments.

The marketing budget may be broken down by individual functional costs, by product, method of distribution, sales territory, distribution channel, sales force, consumer, or other marketing classification.


Maintaining a leading position in a volatile market requires sufficient mobility from the company. The existing range of products is supplemented, the geography of activities is expanding. Successful marketing activities, professionalism and qualifications of employees allow us to achieve more and more success.

The formula is the same as in any country in the world: know your consumer, know what he wants and provide him with exactly that, faster than competitors and at a bargain price. The main secret is not to know this formula. The main secret is to put all this ideology into practice.

List of used literature

1) Danchenok L.A. Fundamentals of Marketing. M., 2003

2) Pankrukhin A.P. "Marketing" M., .2005

3) Sokolova M.I., Grechkov V.Yu. "Marketing research". M., 2002.

4) The Secret of the Firm magazine /2009/01/10/

5) http://www.nestle.ru

6) http://lenta.ru/news/2009/03/20/vvp/

7) http://www.equiros.ru

8) http://www.brandpedia.ru

9) http://www.iemag.ru

10) http://www.confectioner.ru

11) http://www.dgbiz.ru

12) http://www.ippnou.ru

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