Marketing research and development of Nestle company
The concept of brand capital. Total branded product name for the whole company. Nestle as the largest producer of food in the world. Characteristics of technical and economic indicators. Nestle company’s brands. SWOT-analysis and Nestle in Ukraine.
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1. Theoretical part
1.1 The conception of brand
The decision to brand - the main question of product strategy. On the one hand, the sale of goods under the brand requires considerable long-term investment, especially in advertising, promotion and packaging. Many companies that own the trademark, charged with manufacture of the product to other companies. For example, Taiwanese companies produce a significant portion of world production of garments, consumer electronics and computers at other people's trademarks. On the other hand, manufacturers are well aware that power in the market are the companies that own trademarks. If required, company owners can submit an order to perform Taiwanese manufacturers in countries with cheaper production resources - in Malaysia or the other. Japanese and South Korean companies spent huge sums on the creation of such brands as Sony, Toyota, Goldstar and Samsung. Even in cases where these companies cannot afford to make products in the homeland, build brand loyalty guarantee their purchasing power.
What is brand?
The ability to create, develop, maintain and protect the trademark is a requirement that marketers should perform. Trademarks - the art and cornerstone of marketing. American Marketing Association gives the following definition.
Brand is a name, term, sign, symbol, picture or their combination which are intended to identify goods or services of one seller or group of sellers and their differentiation from competitors' services or products.
Under U.S. trademark law the seller is given the exclusive right to use the trademark for an indefinite period, which distinguishes it from other assets such as patents and copyrights that have an expiration date.
In fact, brand is the promise of the seller to the buyer always to give specific set of qualities, values and services. Top brands also include quality assurance. But the brand is a comprehensive, six-character symbol.
* Features. First of all brand brings to mind the characteristics. So, mark «Mercedes» we associate with expensive, high quality, made constructive, reliable, high-prestige, high-speed car. Each of these characteristics may be used by for promotional purposes. For many years «Mercedes» was advertised as «constructively made car.
* Facilities. Brand is more than just a set of characteristics. Buyers do not get performance, but goods. Features should be translated into functional and / or emotional benefits: «reliability» in a functional benefit - «I do not have to buy a new car every few years», «high cost» to the emotional benefits - «machine to help me feel important and cause for admiration,» nicely done - the functional and emotional benefits - «I do not suffer in case of accident.»
* Values. Trademarks are the property mapping system manufacturer. Yes, Mercedes wants to representativeness, high security, prestige. An expert in marketing which is dealing with this brand, has to highlight specific groups of car buyers who share these values.
* Culture. Brand represents a certain culture. «Mercedes» - the embodiment of German culture: organization, efficiency, high-quality
* Individuality. Brand also admits a certain personality. If the mark was marked by a person or animal facility that comes to mind? Mercedes - a big head (man), the royal lion (animal) or strict Palace (object). Sometimes brand takes individual characteristics or personality known political figure.
* User. Brand suggests certain type of consumer who buys and uses this product. We are surprised to see how going to «Mercedes» secretary 20 years, so expect to see that driving a respectable leader. Users respect the values, culture and individuality inherent in the product.
If the company considers only the brand name, it misses the main goal of its creation. The main objective of trade marks is the development of a strong chain of values and associations. Deep called mark, the audience sees her in all six dimensions; otherwise it is superficial. Brand «Mercedes» is deep, we perceive it in all six aspects. Brand - «Audi» - not as deep as you are unlikely to quickly name the specific benefits provided by it, identity and profile.
Allowing for six levels of brand, marketing must determine at what level (levels) it will develop its individuality. Relying solely on characteristics inherent in a brand, is mistaken. Firstly, the buyer is interested not only in the characteristics of the product, how much benefit it provided. Second, competitors can easily copy your product specifications. Thirdly, that the flow characteristics can then largely lose their value and thus strike too much about them trademark. However, it is risky to promote brand based on only one or few benefits.
The most stable brand attributes - the values, culture and identity - defining its essence. Mark «Mercedes» means high technology pokaznist success. It is these benefits should be targeted strategy of this brand. We believe that if under the brand name «Mercedes» market appears inexpensive compact car, it would damage the long-term efforts to create values and individuality of the most famous brand.
The concept and measurement of brand capital
The provisions of brands is determined by its importance and value. At the lower end of the scale marks are unknown to most buyers. Further follow brands for which buyers exhibit a high degree of awareness (which is reflected both in the awareness of it and in identification). Located above grade with a high degree of brand recognition - in other words, buyers get such marks without doubt. Then, under brands that have a high degree of benefits - buyers give them an advantage over other products. Finally, there are brands that have a high degree of loyalty towards them.
D. Aaker highlights five levels of customer relations to brand, from lower to higher.
1. The buyer purchases a product under any trademark, based on price. Loyalty to the brand name is missing.
2. The buyer is satisfied. There's no reason to change the brand.
3. Buyer pleased and losses incurred when changing brands.
4. The buyer values the brand.
5. Buyer is given for trademark.
Size of brand capital is largely depends on the number of buyers that can be attributed to levels 3, 4 or 5. By D. Aakeru, it is defined as the degree of brand recognition, its obvious quality, strong rational and emotional associations, other assets such as patents, trademarks, and response system with costumers.
Some companies choose as the basis of its growth acquisition and making of a large portfolio of brands. The company Grand Metropolitan purchased different brands in the company of Pillsbury, trademark vegetables «Green Giants, ice cream» Haagen-Dazssr and hamburgers «Burger King». The company acquired Nestle brands «Rowntree» (UK), «Carnations (USA),» Stouffer «(USA), «Buitoni-Perugina» (Italy), «Pemer» (France), thus is becoming the largest company on production of nutrition. There were a costly - Nestle paid $4.5 billion for the trademark «Rowntree», an amount five times its book value that exceeded. However, the practice of displaying the value of brands in the balance sheets has not received wide distribution through a certain arbitrariness of such assessments. For example, one way to brand valuation is an additional price, which paid for the brand, augmented with additional sales on average brand.
The survey, conducted in 1994, the magazine «Financial Worlds, to the most expensive brands are world (one in the seats held):» Coca-Cola»,» Marlborosi, «Nescafe», «Kodaks,» Microsoft»,» Budweiser»,» Kellogg's»,» Motorola»,» Gillette» and» Bacardi». According to research, brand «Coca-Cola» estimated at $ 36 billion, «Marlboro» - 33 and «Nescafe» - to $ 11.5 mlrd.
The high cost brand company provides certain advantages over competitors.
* reduced marketing costs because customers trust a brand, maintain a high degree of loyalty to her.
* Company receives a certain leverage to distributors and retailers, as customers expect their products under specific brands.
* The company can charge higher prices compared with competitors because brand - synonymous with high quality.
* Companies easier expansion of commercial lines, as consumers trust a brand.
* Trademarks company provide certain protection in case of hard «price competition.
Support for high-value brand assumes control of its development: support or enhance the degree of consumer confidence in the brand, quality and functionality of the product, enhancing the positive associations customers, as well as the highest level of service. Some companies, such as Canada Dry and Colgate-Palmoliue, have filled in title «manager of brand capital», whose role is to strengthen the image of brands associated with them associations and quality - especially in cases where the brand extends to commodity line - and to prevent short-term tactical actions overly zealous managers trademarks that may damage the long-term interests of the brand.
The company R & G believe that professionally managed brands not subject to fluctuations in the life cycle. Many brands - Leaders of 1970. and maintain a leading position today: Kodak, Wrigley's, «Gillette», «Coca-Cola», «Heim» and «Campbell'sSoup».
Some analysts think that releasing marks lifetime exceeds the lifecycle of goods and business companies, and refer to trademarks as the main company asset. Any strong brand loyalty is the implementation of the defined group of buyers. Hence, asset underlying brand capital - consumer capital. From this we can conclude that a genuine focus marketing planning - increasing the cost of purchasing long-term loyalty, and its most important marketing tool - brand management.
Unfortunately, many companies poorly manage their most important assets - trademarks. According zahalnoamerykanskoho research companies in various industries, only 43% of companies said they have ever evaluated your brand capital. Managers 72% of companies expressed confidence in the fact that in the next two years they did not commit a single dime on the development of brand capital and more than 2 / 3 of respondents had no formal long-term strategy with respect to trademarks.
1.2 Name of brand
The manufacturer, which decided to create a new brand, the choice of branded items can use one of four strategies:
1. Individual vintage titles: policy, which complies with company General Mills (Brand «Bisquick», «Gold Medals», «Betty Crockery,» Nature Valley»).
2. Total branded product name for the whole company: politics Heinz Company and General Electric.
3. Private branded names for product groups: policy of Sears (trade mark «Keptore for household appliances,» Craftsman» - - tool).
4. The combination of company name with individual product name: The Politics of Kellogg's (trademark «Kellogg's Rice Krispies», «Kellogg's Raisin Bran», «Kellogg's Corn Flakes»).
What are the advantages of the individual strategies of names? The main advantage lies in the fact that the company does not bind its reputation with consumers' attitude to a particular product. If the product does not detect whether the demand is low quality, or the name of the company's image will likely not suffer. Manufacturer of high quality wrist watches such as company Seiko, can produce hours of low commodity line of quality (branded under the name «Pulsars) without any damage to their reputation. The strategy of the individual items allows the company to find the best name for each new product.
It has its advantages and the overall title for branded consumer goods. Reduced costs of creating brand because there is no need for research on the infringement of a new name and advertising costs. Moreover, sales of new goods is quite high if the total branded name of a favorable image. Yes, Campbell's company regularly releases new soups under the common brand name.
In cases where the company is doing quite different goods, using the generic name branded inappropriate. Swift and Company The company uses its name ham «Premiums, and fertilizer - «Vigoro». When the company Mead Johnson developed diet dietary supplement for weight gain, it created a new branded name, «Nutriments, to avoid possible confusion with the family of products that reduce weight,» Metrecal». Companies often invent new names for vintage series assortment of varying quality within a single class of goods. Thus, a network of grocery stores A & P food stores sell goods first, second and third grades under the brand «Ann Page», «Sultana» and «lona» respectively.
Finally, some manufacturers connect their own company name with individually branded name of each product. Company makes a new legitimate goods, and custom vintage - original. Thus, the Quaker Oats Company in vintage title «Quaker Oats Cap'n Crunch» united its reputation in the production of breakfast cereal called «Cap'n Crunch», which adds a new product identity.
If the company outlined its strategy on branded names, before it rises the problem of choice of specific trade names. As the name of the company can select a personal name, geographic location, special quality, lifestyle («Weight Watchers» - followed by weight, «Healthy Choice» - healthy choice) or artificial names (Ehhop»,» Kodak»). Among the qualities required of a branded name, select the following:
1. Title should inform about some of the benefits brought by commodity. Examples: - «Beauty-rest ^ - a relaxing vacation, - «Craftsman ^ - artisan.
2. The name must bear a certain quality of goods, such as movement or color. Examples: Sunkist - from sun - sun. Spic and Span - with needle, «Firebirds - a fiery bird.
3. The name should be easy to pronounce, and remember diznavannya. Examples: Tides, «Crest», «Puffs».
4. Name must be original. Examples: Mustang, Kodak.
5. The name cannot be ambiguous interpretations in other languages and countries.
Normal procedure for selection of branded name is this: is list discusses merits of different names and made a choice. Today, many companies enter into an agreement to develop and test branded items. The procedure includes research on the association test (which images come to mind), the test of pronunciation (how easy to pronounce the name) and a test of preference (most names are best). One of the most famous experts in the field «games with names» - the American company NameLab, Inc., «Responsible» for such vintage items as «Acuras», «Compaq» and «Zapmail».
Many companies aspire to create unique brand name that may be completely identified with this category of goods:
«Levis», «Scotch Tapes», «Xerox», «Fiberglass. In 1994, the company Federal Express officially reduced to just FedExi, - term which soon became synonymous with» overnight mail delivery.
Unfortunately, success in identifying the trade name of a defined category of goods may infringe the exclusive right of the title. Today the name «cellophane» and «wheat flakes» were commonly used words. Hearing the word Xerox, we remember more of copiers, not about a specific product or the company producing it. This prompted the company to Xerox search of new marketing names that better reflect its leadership in the field of office systems, not just copiers. It was decided to change the company name to The Document Company Xerox. Promoting The Document Company in the first place on the second and Xerox, the company locates the red stylized letter «X», visible on all types of advertising, marketing materials and goods.
Given the rapidly growing global market, companies must choose vintage items, taking into account their global use. The names should have meaning and be easy pronunciation of other languages. Otherwise the company will find that as the geographic expansion it is not able to use well-known local brand.
2. Overview of the Enterprise
Nestle is the largest producer of food in the world, the eighth largest company in Europe, and the thirty-first score for the largest company in the world. Under «Nestle» is 224541 people, «Nestle are among 479 factories and industrial enterprises in 81 countries. In 2000, total sales group Nestle has achieved 81.42 billion Swiss francs.
History Nestle begins with 1866. This year, Henri Nestle, determined to overcome child mortality, invented Farine Lactee - the world's first infant formula for babies, and started its production. Since then the range of products Nestle is constantly expanded and now includes 8500 brand of food that they know consumers around the world.
1905-1918 Access to world market
In 1905, merged as a result of which formed a company called the Nestlé and Anglo-Swiss Milk Company. At the beginning of XX century company owned factories in the United States, Britain, Germany and Spain.
In 1907 the company began to gain market of Australia, which made it possible to double its output. At the same time for the rapidly growing Asian market in this product has been opened warehouses in Singapore, Hong Kong and Bombay.
However, the main production facilities were still in Europe, and the beginning of World War dealt a serious blow to the company. Became increasingly difficult to obtain raw materials and distribute finished products. Lack of fresh milk throughout Europe forced factories to sell almost all stocks to meet the needs of the population.
But, despite the complexity, the war has created unprecedented demand for dried and condensed milk, mainly due to government orders. To handle them, Nestlé purchased several factories in the United States. By the end of the war the company owned 40 factories and production compared with 1914 almost doubled.
1918-1938 The emergence of Nescafé
Postwar period brought a crisis for the company Nestlé. Ceased to be government procurement, and people who during the war used to dry and condensed milk, preferred to return to fresh, as soon as it became available again. In 1921 the company suffered losses for the first time. Price increases for raw materials, postwar lull in the global economy and falling rates aggravated the situation.
Guide Nestlé quickly responded to the current situation, and invited the Swiss banking expert Luis Daplesa to reorganize the company. Had brought into compliance level of production and sales, and reducing debt bare, he established the company's work.
In the Twenties Nestlé first went beyond their traditional range. Production of chocolate became the second most important activity of the company. There are new products: milk, malt, instant drink Milo, powdered beverages for children and in 1938 - Nescafé. This soluble powder made worldwide revolution in the consumption of coffee and rapidly gained popularity.
1938-1944 global shocks
World War II adversely affected the activities of Nestlé. The profit of the company fell from $ 20 million in 1938 to 6 million in 1939. Neutral Switzerland was becoming increasingly isolated from Europe covered the war, and the company moved much of its staff in Stamford, Connecticut.
Ironically, the second world war helped to accelerate the introduction of new product company - Nescafé. After the United States entered the war, Nescafé became the main drink of American soldiers and officers who served in Europe and Asia. By 1943 annual production reached a million boxes.
As World War I, the level of production and sales in a war economy has increased significantly: total sales jumped from $ 100 million in 1938 to 225 million in 1945. By the end of the war leaders Nestlé unexpectedly found that the head group that leads the world coffee business, but also in other traditional industries for Nestlé.
1944-1975 production growth and diversification
Post-war years were the most dynamic phase in the history of Nestlé. During this period of growth based on expanding the range of food products produced by the company. Nestlé to join the company Alimentana SA, manufacturer of soups and seasonings Maggi. Name changed to Nestlé Alimentana Company. Then came the acquisition in 1950 of Crosse & Blackwell, a British manufacturer of canned products and companies Findus in 1963 (frozen), Libby in 1971 (fruit juices) and Stouffer in 1973 (frozen). Meanwhile, Nescafé popularity grew. From 1950 to 1959 the sales of instant coffee almost tripled, and from 1960 to 1974 - has increased fourfold. Sales has increased four times in 15 years that have elapsed since the Second World War. Development of new technology of low temperature drying led to the emergence in 1966 of a new brand of instant coffee - Taster's Choice.
Finally, Nestlé management decided first to go beyond food. In 1974 the company became the largest shareholder of the world leader in the manufacture of cosmetics - company L'Oreal
1975-1981 Change of position
In 1974, Nestlé's position was affected. For the first time since 1920 the economic situation of the company deteriorated because of higher oil prices and slowing economic growth in industrialized countries. In addition, global currency rates fell to the Swiss franc. As a result, during the period from 1975 to 1977 coffee prices have increased four times, and cocoa - tripled. As in 1921, the company had to react to the market situation has changed dramatically.
Increased sales in developing countries, partly softened the effects of recession in traditional markets for Nestlé, but also contained the risk associated with unstable political and economic situation in these countries. To maintain balance, Nestlé acquired by Alcon Laboratories, Inc., An American producer of pharmaceutical and ophthalmic products, which has no relation to the food industry.
1981-1996 New directions
Under the leadership of new president Helmut Mauhera Nestlé entered the 80's with new strength and desire to develop further. The company's strategy in this period was in two main areas: strengthening the financial situation through internal control policies and continued acquisition of strategically important enterprises.
In 1984, improved financial situation allowed Nestlé to make a few new acquisitions, including buying at auction for U.S. $3 billion the largest U.S. manufacturer of food Carnation. Merger of enterprises, held in 1985, was one of the largest in the history of the food industry.
Among food manufacturers Nestle is the world's largest investment in scientific research and technological development. Such attention to this area reflects the aspirations of «Nestle» produce products that not only has good taste but also health benefits.
Besides food, the company «Nestle» owns shares of perfume and cosmetic and pharmaceutical industries.
Credo Nestle is «make life better, offering consumers only quality and valuable products».
In December 1994, the Societe pour l'Exportation des Produits Nestlé SA opened its representative office in Kiev and since then conducts marketing and advertising support for such international brands as Nescafé, Nesquik, Maggi, Nuts, Friskies and baby food Nestlé.
Today, Nestlé is one of the strongest companies in Ukraine in the field of food and the leader of Ukrainian market of coffee. The company strengthens its presence in the chocolate products and culinary products. First Nestlé strengthens its position and expanding its presence in Ukraine through investment in local production and industrial infrastructure, active promotion of trade marks and of strengthening and developing a national distribution network.
In 1998 Nestlé acquired a controlling stake in the confectionery «Svitoch» in Lviv, which produces chocolate and other confections. Since then the company has made and continues to make major investment in technical equipment and industrial plant reconstruction.
«Svitoch» - one of the oldest enterprises in Ukraine, a leading Ukrainian confectionery industry. «Svitoch» is known for his consummate chocolate and chocolates, which combine traditions, natural ingredients exclusively proprietary recipe and modern achievements of confectionery technology. Besides chocolate, Svitoch also offers a variety of other high-quality confectionery.
Sweets of Svitoch are the property of the oldest confectionery traditions of Ukraine. Back in 1882 in the chronicles of the city was first mentioned about the candy store, which later became the production division of the company. In 1922 started the first candy factory and Ukrainian pomadok «Fortune Nova, which eventually became known company. In the early twentieth century Swiss Bern and Galician Lions confectionery called capital of Europe.
The period of establishing the rule of the Bolsheviks at Western, and then - German occupation, the workers left only a few small confectioneries in. In 1962, after merging two factories «Bolshevik» and im. Kirova created a new company, called «Svitoch». Throughout its activities during the Soviet era «Svitoch» was one of the leading producers of confectionery products for the Union and became a symbol of Ukrainian confectionary industry. Trademark Svitoch became known not only in the USSR, and also in Europe.
After Ukraine's independence in 1996 on the basis of already privatized enterprises have established joint-stock company «Lviv Confectionery Firm Svitoch». Striving for continuous development and improvement of production in 1998 was initiated cooperation with the international company Nestle, which acted as a strategic industrial investor. As a result, in recent years have been made and continue significant investments in equipment and reorganization of production capacities «Svitoch». Integration processes, the use of Western management experience, combined with the ancient tradition continues recipes strengthen the position of «Svitoch» on confectionary market.
Credo Nestlé - to make life better by providing customers with high quality and useful products
Today, Nestlé has 479 factories in 81 countries. The corporation is constantly increasing assets through sharing experiences and technologies, and by improving supply chain management and shared resources. In addition, Nestlé is restructuring production facilities to bring it into line with today's situation in the international market, particularly its trade liberalization. Realizing benefits from the scale of its activities, Nestlé is looking for new ways to profit, greater flexibility and lower costs.
2.2 Characteristics of technical and economic indicators
Nestlé Company is a holding company that includes subsidiaries and common companies in the whole world. By Peter Breybaka words, the chief administrator of the company, Nestlé in 2002 reached record levels of sales, net income, cash flow in CHF, despite the economic recession and political instability in the world. It was further extended to improve the work made strategic acquisitions, which contributed to improve the position of Nestlé in the industry. Overall level of sales in 2002 totaled 89 160 million, which is by 5.3% more than last. Net income increased by 13.2% comparing to 2001. Earnings per share of shares increased by 13.1%.
Total growth was by the help of increasing sales in the U.S., Canada and Brazil as compared to 2001. In countries such as Japan, Mexico, Argentina experienced a slowdown in growth. Significant levels of growth in Europe has been achieved in France, Russia (at the last level of sales for the first time reached more than 1 billion Swiss francs).
Overall in the last three years significant improvements in development is seen. There is a gradual rise in sales, an absolute increase in 2010 compared to 2008 year totaled 855 million Swiss francs in 2010 compared with 2009 - 4462 Million Growth in 2009 amounted to 101% in 2010 - 105% compared to 2008.
Dynamics of changes in net income also tends to increase. It shows positive trends in growth performance. Thus growth in 2009 compared with 2008 were 100.9% in 2010 compared to 2008 - 105.3%. Absolute growth in 2009 totaled 62 million in 2010 - 381 mln. compared with 2008.
Investments made in 2010, amounted to 4% of total sales or 4.3% of sales in 2009. Through these processes, Nestlé maintains the position of one of the most financially backed companies in the world.
Success in 2009 showed that the firm can show good results even under adverse market conditions.
Corporate power company
Corporate power is a commonly used brand by the combination of that song in podnyuye trademark and logo, I also various inscriptions (country, postal address, phone number). Sometimes corporate unit includes corporate slogan (slogan).
Slogan - this is the original motto, which is used constantly by giving expression to commercial, technical and credo of the company. Slogan should organically fit in style, taking into account individual client market firms to be modern, original. Contribute to the formation of the image of the company.
Nestle logo - a picture of bird nests, which in turn has been the family coat of arms of family members of the company.
Slogan - «Quality product, quality of life.»
This phrase demonstrates the caring attitude of their clients, as producing high quality products, thus it provides a healthy quality of life of its consumers.
2.3 Nestle company's brands
Today the company Nestle has created over 8500 brands of food that are known all around the world. Here are some of them.
Famous brand Buitoni pasta is the global market for over 170 years. Start was launched in 1827, when Julia Buttoni family jewels sold after the death of her husband and bought the necessary equipment for the production of paste. In XX century, a small family business into a large company, which in 1988 joined the Nestle Corporation. Now under the Buitoni brand produced various kinds of pasta, that like in many countries.
KitKat chocolate bars appeared in 1935 in the UK. Today it is sold in over 60 countries and is a major strategic Nestle brands in the world. For instance, in one second in the UK eat 47 bars KitKat.
Lion Mark was developed in seventy years in France and it soon gained popularity in many countries. In chocolate bars shows the lion, symbolizing strength, freedom, independence. Crisp wafers, creamy caramel and rice grains are perfectly combined with a delicate milk chocolate.
In Nestle extensive experience in producing different varieties of tea. Nestle factories located in the heart of India, best tea-growing varieties. Weekly tasters Nestle check the quality of tea grown, While tasting on average 14 000 cups for the selection of the best types.
Nestlé (ice cream)
Nestle is one of the recognized world leader in the production and sale of ice cream. Nestle Ice Cream manufactures various types and grades, especially proud of the fact that in each country in preparing the recipes are taken into account consumers' taste preferences of the country. Nestle produces ice cream since 1929.
Nestlé started producing chocolate in 1929 after the merger and formation of Peter, Cailler, Kohler Chocolats Suisse SA Today the company Nestlé is a leader in the manufacture of chocolate in the world.
Perrier Mineral Water Bottle in southern France, on the source Vergeze. Perrier is the world's most popular natural soda water. Perrier was the first worldwide brand that has established the production of mineral water in tin cans and released flavored mineral water. Nestle bought the company brand Perrier in 1992.
San Pellegrino Water originates at the foot of the Alps. Back in the XIII century San Pellegrino mineral water, doctors prescribed as a remedy against many diseases. It is said that Leonardo da Vinci himself attended medical source of San Pellegrino. Today is one of the most famous brands on the market of mineral water.
Smarties - a tasty, colorful chocolate drops appeared in 1937 under the name «Chocolate Bean». A year later they took its present name and changed the packaging on the tube. Eight vibrant colors in a single package - red, yellow, orange, green, lilac, pink, brown and blue.
Vittel is one of the most popular brands of natural mineral water in the world. Source of water located deep underground, in the Vosges, France. A unique mineral water is achieved because it flows through deep underground rock formations. Nestle began producing mineral water Vittel in 1969.
3. SWOT-analysis and Nestle in Ukraine
3.1 SWOT-analysis of the marketing activities of firm
brand nestle company food
1) Strengths of the company
- High quality products;
- The brand;
- Credibility in the market;
- Reasonable prices;
- Well-established distribution channels;
Intermediary selling the company's products are highly professional;
- A great experience;
In Nestle believes that the size and complexity of the business are among the most important competitive advantages. Despite the fact that the company sometimes sells the individual units (for example, in January 2002 for 750 million Swiss francs was sold to the business of spice Swiss company Givaudan), Nestle has no plans to substantially change its range of products and brands.
According to the report Nestle, for the first six months of this year net profits of corporations increased 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 U.S. dollars) increase in financial indicators Nestle explain the high demand for the company's products, which is not affected even increase its value due to rising prices for raw materials, such as milk and cereals.
The results were above expectations. Nestle copes well with the rising costs: transfer them to retailers, who in turn - by the consumers. According to the forecast Nestle, net profit corporation for the year will exceed its own expectations. In this case, the Swiss company warned that because of the increased cost of raw materials sales growth could slow.
Of all the major food companies Nestle is the most decentralized. Nestle plans to fight and to this end has developed several programs. One of them is called the Globe and provides for reduced costs. The other two are aimed at improving supply chain management and administrative efficiencies.
- Increasing demand;
- Increasing market share;
The company Nestle, one of the world's leading food manufacturers, plans to invest 650 million rubles to the expansion of production of finished breakfast at «Syriana Partners (Perm). According to a press release of the company, the investment will be invested over the period from 2008 to the first quarter of 2009. Total investment in the company LLC «Syriana Partners exceeded $ 10 million
Nestle is now carrying out probably the most major reforms in their entire 137-year history - re-engineering of information and business processes to transform the company into a single international «body». This means the global restructuring of all processes: from the purchase of raw materials such as cocoa beans, to production, marketing and sales of finished products such as chocolate and instant coffee.
- Saturation of the market - a large number of competing companies, both domestic and foreign;
- Entry of new competitors and the rise of old.
Nestlé supports free enterprise, and thus enter into fair competition, recognizing that other companies an equal right to the same steps. The company supports the development of competition laws in order to protect the principle of fair competition. In particular:
* independently determine its commercial policy and does not set prices by agreement or collusion with competitors;
* does not distribute customer, territory or product markets, by agreement or collusion with competitors;
* good faith interacts with their customers and suppliers in accordance with the laws of competition;
* considering mergers and acquisitions as a means to improve business performance, rather than a restriction of competition;
* Nestlé carries out trade payments, taking into account the performance of clients and services.
Despite its vast size, the company Nestle, which produces an array of products - from ready-made cereals Stouffer's Nescafe instant coffee to chocolate bars and Kit Kat, still remains one of the fastest growing food companies in the world. Today, however, the Swiss company publishes a report for the first half, which recognizes that if we use standard methods of calculation, its sales fell by 4.5%.
Thus, we can safely say that the company, despite their age, «there is life in the old dog yet»: profit increases every year, its competitors are not afraid, on the contrary, encourage improvement, to develop new products and ways to distribution. The company plans to expand the consumer market in both Ukraine and other countries.
3.2 The company's activities in Ukraine
Its activity company Nestlé launched in Ukraine in December 1994 when Societe pour l'Exportation des Produits Nestlé SA opened its representative office in Kiev and since then conducts marketing and advertising support of such world famous brendiv. Do niyvidomishyh of them belong Nescafé, Nesquik, Maggi, Nuts, Friskies and baby food Nestlé, pet food, ice cream, Nestle, and more recently Trademark torch. Let's give some of that in a characteristic marks:
Chocolate bars wonderful goodies for tea for children and adults.
Svitoch produces two main types of chocolate bars: milk chocolate with sweet taste of milk and black - with a high content of cocoa products. In addition, chocolate bars Svitoch carefully selected combination of chocolate recipes with other ingredients: nuts, coconut, candied roasted nuts, light rice, cream and yoghurt. (17 varieties)
Candy packaged sets of chocolates «Svitoch» made of high quality products and satisfy the most sophisticated taste.
A variety of toppings, inventive forms of flowers and attractive design make these candy boxes a good gift for all occasions (15 varieties)
«Hrum» The crispy wafer bars «Hrum» combines beautiful milk chocolate, cakes and soft filling: friction nuts, milk and vanilla filling, coconut, oranges. (5 varieties)
Wafers «Hrumok» (5 varieties)
Cookies Svitoch offers its customers various kinds of biscuits. It is produced in bright and friendly packaging yakye keeps good taste and high quality. Sweet biscuits «Brand» - sweet sandwich with chocolate, cocoa-nut, strawberry and vanilla cream and traditional cookies for any tea taste decorate the family or just enhance the mood for any occasion. Wafer biscuit «Maria» will complete your dinner, and baby biscuits «ABC» and «Zoosvit» fun for your kids and give them new forces for growth (14 species)
Caramel Caramel «Bon Pari has a rich fruity flavor and refreshing effect. Children will be delighted by the colorful lemon, orange and strawberry sweets (4 varieties)
Crackers One of the most popular types of cookies from the «torch» is crunchy with different tastes and ingredients crackers.
With «gentle» and «cream» sandwiches come interesting holiday, «especially with the bow is very taste of beer, and» Lviv «and» cream with poppy seeds «like you and as a quick snack and a tasty addition to beverages. (5 Varieties)
Under the Maggi brand on the Ukrainian market offered next products:
Maggi stock cubes
Commodity Line «Pet Food»
Friskies - the world-famous brand products for pets. It exists since 1929 and has long been a guarantee of the highest quality. The basis of Friskies - modern technology, careful selection of ingredients and quality control. All of Friskies products are developed with the participation of veterinarians and specialists who study the nutrition and health of pets, so your pets get a complete balanced feed. This company represents the following products:
Forage for cats Friskies dry
Forage for cats Friskies canned
Forage for cats Friskies an alarm
Forage for cats canned Darling
Forage for cats Gourmet canned
Fodder dry for dogs Darling
Forage for dogs canned Darling
Vtsiy series offers the company the market of Ukraine the following products:
Mash with meat and chicken
Puree the fish
Geographical coverage area:
In Ukraine the company Nestle presented in the following regions:
As we see place company is rather broad, with representative offices throughout the country and mainly in large cities. It focuses on mass market, based on a wide range of products with a reasonable strategy is tsinamy. Dana dossier favorable for Ukraine, because firstly the market is filled with enough food commodities (as in the Ukrainian market are companies such as Roshen, ABK, Jacobs - confectionery, Mivina - fast food products that are direct competitors of Nestle).
During the activity to increase the range of consumer products vlisnoyi firm that uses marketing techniques, advertising campaigns, participating in charity events, thereby positioning itself as a socially responsible organization. So the last of these measures were:
Action Mail Happiness
Confectionery Svitoch held for Ukrainian consumers a special event - «happiness mail. To participate in the action should have just cut two bar codes on packaging of any chocolate bars Svitoch, put them in an envelope, put it back e phone and the person who wants to make a pleasant surprise, and send the envelope to 31 December 2003, the action specified adresoyu. Pid postman brought happiness to thousands of recipients, five winners of an excellent set of sweets «torch», which came in chocolate candy bars, bars and pills.
The company Nestle Ukraine - Ukraine's children
(Charitable Projects of Nestle Ukraine in October 2003)
Swiss company Nestle, the world leader in food production, working in Ukraine since 1994. During this time the company's business in our country has grown several times. Only in Lviv factory torch company invested 40 million dollars and still continue to invest heavily in the Ukrainian economy.
Yuriy Petrus, manager of marketing services and public relations company Nestle Ukraine:
«The slogan of Nestle -» The quality of products. Quality of Life «- better reflects its business philosophy. In addition to producing the highest quality food, Nestle is known worldwide for its charity and widespread support for important social projects. No exception to this rule, and Ukraine, where the company also carries a significant charitable and sponsorship activities. «Only in October 2003, the company took part in three charity events.
October 10 the company gave Magga soups and confectionery firm Svitoch total cost over 15 thousand children's homes such as «Father's House», located in Cherry township, near Kyiv. Stocks also contributed to all employees of the Kyiv office of Nestle Ukraine, who collected toys, games and books and donated them to children.
Korniyko Roman, director of the orphanage «Father's House»:
«Our institution is not a government agency and not financed from the state budget. Therefore, our existence depends on the goodwill of people who have the desire and ability to help us. Nestle Company - our old friend. For the past three years as the company supporting us by providing its products and acting as a sponsor of various charitable events. Only a Christmas charity event last year, was sponsored by a company Nestle Ukraine, brought us over 20 thousand. This time we got food company Nestle worth over 15 thousand, and wonderful toys and books for our children.»
October 11 International Women's Club of Kyiv (IWCK) already holds ten times its traditional charitable campaign called «IspanoAmerykanski night. Company Nestle Ukraine is one of the main sponsors of the event. The participants of the event is Western businessmen, diplomats and representatives of international organizations based in Kiev. All money received from the holding of this event will go to charity projects IWCK.
Also in October, as part of a public forum «Oncology XXI» held nationwide children's creative competition «Sun clear, I Smile…. The contest is open to children and adolescents from all regions of Ukraine, who held or were treated with malignant tumors and are on the clinic register. Sponsor Contest for Children is the company Nestle Ukraine, providing sweets for all participants and winners (about 100 children). Winners will be named at the charity telethon «smallest support - better than most of compassion» and other actions Forum Oncology-XXI» company is currently carrying out an action «Magic Magg - Spring has come…» which is timed for March 8.
As we see in Ukraine, like other countries, company Nestle uses a strategy that is aimed at general consumers, using a strategy of individual brands (in some commodity groups or goods company establishes a separate brand names). So the market offer products that satisfy different tastes of different groups, the company focuses on all members of the family is a child or an adult family member, offer products and to «our little friends» - pets. This approach domahaye naymaksymalnishe as market reach, increasing its share in it. This is promoted as pricing policies, acceptable to the population of serednis-income.
As for the expansion of market line, this fact also holds in its activities. So each product line has several raznovydiv goods that have a wide range of taste.
Image has always played a major role in its activities. Credo - «Quality product, quality of life.» - Is the philosophy of their existence. Maintaining a positive image sprayut numerous charity events, advertising companies. The fact that the company by purchasing shares of such giant as «torch», Nestle made no changes in company names, brand name, supporting Nestle's image as one that respects the ethnic and national traditions of the country where work is to the taste preferences of the population which has already formed over long years.
However, if you talk about advertising rates, which are products of this company, the situation is not as joyful. So according to the rating «Star Advertising 2002», which was presented 245 brands most popular ads, advertising coffee only «Neskafe» takes 3 position, following the brand is «torch» - 37 position in the ranking.
Nestle is 4th among the largest advertisers of the country, but its brand advertising is not very high on the rankings. This company should pay attention to this fact and possibly revise the concept of presenting information to customers. As you know perception is an important rolpry novohop to market the product and sometimes this fact can play a major role in choosing just the consumer brand of the company.
You can also mention some other factors which should be pay attention company. So among all the variety of brands offered in the market as a whole, represented in Ukraine by their very small part. This can be explained relatively short stay in the market of our country and some caution in the work, given the instability in Ukraine. And strong positions, which won the Nestle, may indicate that in the near future is the expansion happen.
Positively, you can also mention the fact that every day the latest information about the company, its new developments can be found on Internet sites: www.nestle.ua and www.svitoch.ua.
Overall we can conclude that the active company Nestle in Ukraine is quite successful, but you should pay attention to certain facts that could negatively affect its business in the future.
Nestle is the largest producer of food in the world, the eighth largest company on the account in Europe, and the thirty-first score for the largest company in the world. Under «Nestle» is 224 541 people, «Nestle are among 479 factories and industrial enterprises in 81 countries. In 2000, total sales group Nestle has achieved 81.42 billion Swiss francs.
Today, Nestlé is one of the strongest companies in Ukraine in the field of food and the leader of Ukrainian market of coffee. The company strengthens its presence in the chocolate products and culinary products. First Nestlé strengthens its position and expanding its presence in Ukraine through investment in local production and industrial infrastructure, active promotion of trade marks and of strengthening and developing a national distribution network.
The decision to brand - the main question of product strategy. On the one hand, the sale of goods under the brand requires considerable long-term investment, especially in advertising, promotion and packaging. Many companies that own the trademark, charged with manufacture of the product to other companies.
Nestle company pays much attention to politics of trademarks orzumiyuchy importance of this fact for the activity, the continued growth and expansion of influence on the market.
List of literature
1. Danchenok L.A. Fundamentals of marketing. M., 2003
2. Pankruhyn A.P. Marketing M..2005
3. M.I. Sokolov, V.Y. Hrechkov «marketing research». M., 2002.
4. Magazine «The secret of the firm» / 2009/01/10 /
13. RIA Novosti. 11/03/2009
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