Communication Strategies Of Nestle †Free Samples for Students

Question: Discuss about the Communication Strategies Of Nestle Company. Answer: Brief introduction Nestle is one of the multinational company that deals in the industry of consumer products where its focused mainly on packaged food products. This company does the manufacturing and marketing of different food products (Nestle, 2017). Some of its product line includes bottled water, milk, chocolate, coffee, creamer, confectionaries, food for pets and food seasoning. This company has been in existence for many years and a lot has changed regarding its business strategy. The company communication strategies have also changed with time accommodating the changes that come with technology. Such flexibility in doing business has seen nestle company being ranked as the largest food company in the world. The company has itself been causing the changes that stakeholders have seen as well as being in the forefront of creating habits and trends that are new (Chaudhary, 2009). The arrival of digital media is believed to be among the greatest changes that impacted positively on Nestls business o perations. Background information Nestle company was founded in 1866 and has since been ranked as the largest beverage and food company globally. This was as a result of Henry Nestls search for alternatives that are healthy and economical when it comes to breastfeeding where some mothers were not able to breastfeed their children (Smith, 2015). At inception the company used to sell cereals for infants only however they quickly changed and diversified so as to accommodate a different number of products under their brand such as yoghurt, coffee, water, chocolate and foods that are frozen. The company has employees from close to 70 countries and employs a total of close to 250,000 people per country in which it has its presence. The country has since reached a global audience that is very impressive and this is through their efforts as well as having joint ventures with companies like coca cola. The success of this company is mostly driven by innovations in products and business acquisitions (Renner and Ringquist, 2016). The company also plays key roles in todays nutrition and this is driven by its great desire to grow and diversify in business. For all the years that the company has been in operation its priority has always been to give its consumers products that are relevant and reach them in their places so as to meet their needs throughout their lives. Non-electronic communication methods and practices used by nestle to engage its stakeholders Nestle company always works towards ensuring that the value they create is sustainable and long term by offering their consumers foods and beverages that are healthier and tastier. Therefore the company lays much emphasis on their marketing strategies (Strauss, et al., 2006). Nestle is aware that any form of communication has to follow set principles so as to ensure the consumers trust in their brands is gained and maintained as well. The company has regularly participated in educational programs related to health and wellness upon request by institutions administration. Its through such events that they are able to market their brands to the right customers who in most cases are caregivers to children under the age of 6 years as well as those individuals interested in their other products. Nestle has often organized seminars with institutions especially schools to enlighten them on the importance of their products (Ukman, 2012). For example the company in recent times carried out a study with university of California to enlighten the stakeholders on the importance of drinking water on the attention and memory of children. In such forums the company is able to sell their brand of water to the clients in attendance. This company also works with retailers and those providing food services in ensuring environments which favor good diets and lifestyles are promoted. Having a huge employee base the company has mastered the art of engaging with its staff non electronically through conducting surveys like one dubbed Nestle and I which is made up of six questions that asses peoples feelings about the company treatment of them (Erickson, 2008). The culture and quality survey also targets close to 63,000 employees which has ensured the quality of their business is felt globally. Nestle conducts convening like in March 2016 the company foresaw the congregation of 30 scientists, consumers, health practitioners and policymakers at the European parliament situated in Brussels and the conference was dubbed healthier portions for a healthier diet. Its through such conferences that the company is able to market its brand and the business agendas it has. The convening also ensures levels of trust are increased and mutual respect earned as well. For example in the year 2016 march 30-31 there was a nestle and stakeholders convening in Geneva Switzerland where 64 stakeholders came together (CB Insights, 2016). The delegates were invited to contribute on their perspective regarding Nestls CSV performance and commitments and it was a good opportunity as well to explore the role played by nestle when it comes to ensuring there is a collective action of supporting UNs sustainable development goals. Key electronic media and communication strategies used by the company Nestle company believes that when they communicate effectively with their stakeholders then a responsible business behavior is created. Therefore its stakeholder engagement is the basis of ensuring shared values is created (Turban et al., 2006). Using electronic means for communication has enabled the company to easily identify issues that are emerging, have its responses in shape and improving its performance. Many topics regarding health, nutrition, overall wellness and education are widely discussed and shared on Nestls social media platforms. The corporate website created by the company has a lot of information on the principles, policies and activities of the organization (Bonney et al., 2007). By going through the content available on the websites the stakeholders can make recommendations on what to improve on. For instance the company has dedicated some of its websites to the cocoa plan which is used to consolidate the initiative details in a way that is easy to read and also understandable. Through this platform the company has been able to expand on its collaborations with Red Cross and fair labor association societies which have enabled it to easily fight illegal practices related to labor. Other nestle websites include NESLAC and MAGGIE . Nestle has taken advantage of search engines to deliver its contents to some of the sites that are ranked top in business. Being ranked top in the search engine gives it more exposure to its users who are in most cases directed towards this top ranking site (Nestl, 2017). Through this search engines the company has been able to promote its brand and it has won some awards out of this like Asian marketing effectiveness awards of 2007 in the kick start category of NESCAFE. The company has also used social media sites like twitter, LinkedIn, face book and DAT to ensure effective engagement with its employees and customers. Its focus on social media strategies is very strong. Through social media the company has been able to enforce leadership, innovation and marketing potentials. For the company to be able to drive supply chains and costs beyond marketing the company has laid much focus on transforming its operations. To just indicate the enormous presence of nestle on social media platforms , nestle Philippines has online properties close to 64 in number among them being twitter, face book, websites, Instagram feeds, blogs and YouTube channels (Nestl, 2017). The company has between 240 and 250 million online followers globally. The digital acceleration team of nestle has currently been replicated in 9 global markets among them being U.S, India, Middle East and china. The company is also putting more time and resources on digital advertising. SWOT analysis for nestle company Strengths The company has unmatched development and research capability. This in comparison with other companies like Coca-Cola nestle does well and spends a lot of funds on this sector. This has given it a competitive advantage that has long term success over its competitors. The company has a geographic presence that is strong and with diverse sources of revenue. This is unlike some of its rivals like PepsiCo which has more investments in the US alone and therefore incase of any marketing fluctuations in this region they suffer huge losses. Nestle tries to balance its geographical presence (Interbrand, 2017). Its brand portfolio and products are unrivaled. Its wide portfolio and variance in products enables it to satisfy its customer needs with ease and less competition. Sustainability efforts for the environment-the company has initiatives in place which work towards reducing waste and keeping environment clean. The company owns some of the brands that are recognized globally-this enables it to attract customers with a lot of ease (Grunert et al., 2008). Weaknesses The company has for a long time been criticized for using a lot of water, selling food that is contaminated, having an anti-unionism character, practicing forced child labor and using some practices that are unethical. The uncontrolled water usage was reported in California recently. Such negative publicities can easily damage the reputation of their brand and lose the trust and confidence from their consumers (Beverage Marketing Corporation, 2016). Recalls of contaminated foods- the company has had to recall some of its contaminated food products that were already in the market. For instance in the year 2014 37,000 tons of magi noodles were recalled by the company. Such activities affect the companys image. Opportunities Labeling that is clear and accurate to indicate any presence of harmful products. The company can improve transparency in the sourcing of materials. The company has resources to source materials from farms and plantations that are sustainable and of good reputation. Increasing investments in food and beverage start ups to counteract competition that may come up due to the mushrooming of many small food startups (Alexa Internet, 2010). Ensuring the ready to drink tea and coffee markets are grown and well developed. This is an area that the company has no ventured into well and its an opportunity not to be assumed. Threats Poor quality of water as well as its scarcity-the scarcity and poor quality of water threatens the production of its products since most of the productions require water. This has even been worsened by the critics from the public where the company is accused of exhausting water resources from the neighboring communities (Ng, 2015). Increase in the competition from other food and beverage industries. Its very hard for nestle to compete in the future because of the many beverage startup businesses coming up. Weather disasters are likely to raise the price of coffee beans and since coffee generates about 10% of the total sales made by the company it means more investments to cushion the expected high prices of coffee. Findings From the SWOT analysis its seen that nestle has a lot to work on especially in maintaining its brand image. There is a lot of competition coming up and it has to be prepared well enough on how to counteract such startup competitions. However the company can capitalize on its strengths to cushion itself against the criticisms, threats and any negative impacts on its business. In all its marketing strategies the main goal should be protecting the image of the company so that it does not lose its customer base. Communication practices of the companys 2 main competitors (Procter and Gamble and Unilever companies) These two companies are the main competitors in the food and beverage industry. Procter and Gamble Company To remain connected with its clients P G company staff has always been on the go and they work from wherever they are to meet the needs of the customers. The company believes communication makes them to remain connected (Charlesworth, 2009). This has been critical in ensuring innovation and success in the market is fostered. The company has therefore pursued the borderless network to remain relevant in the business world. The company has simplified its connections through investing in the use of email communications, telephone use and organizing physical meetings. P and G had for long time used video conferencing for communication but following repeated video link failures and poor quality of audio the company had to change strategy regarding this form of communication (Thibodeau, 2010). To solve this issue the company collaborated with Cisco Company which contracted the business of installing video collaboration studios in 26 countries where P and G had its operations (Forbes, 2017). This video communication has ensured P and G has good experiences with its employees and relevant clients through face to face conferencing despite the geographical distances. The decision making time has also been reduced by this initiative. Unilever Company Unilever has invested a lot in use of electronic sources for communication and it uses a people centric approach where in this approach the needs of clients are given first priority. This is because in todays business world the product consumers are the ones in charge of the content they want to consume on social media sites. The company has created partnerships that are global with online firms like face book, Google and twitter (Alexa Internet, 2010). The media strategy for Unilever has been changed to an Omni-channel world where the company has had plans that have a media-neutral basis. It starts off from an insight that is creative and has a target audience and its from this that a target audience is built. Its engagement with stakeholders begins off from the audience i.e. to ensure awareness message is driven home and then they determine the best way their audience can be reached. The company has been in the forefront of taking advantage of technology start ups. It is always ahead when it comes to the beta-testing of the new ideas on board (Blomback and Wigren, 2009). Most of these startups aim at improving communication between businesses and their shareholders and therefore it means if the company takes up the start up ideas its engagement with the stakeholders is likely to grow. Suggestions and recommendations for how the company can improve its communication Nestle company is doing regarding non electronic and electronic communication strategies with its shareholders. However there is always room for improvement for betterment of service and product delivery, this is because the world of business is constantly changing and revolving and therefore one has to be quick in making necessary adjustments on communication strategies. However a lot of emphasis has to be laid on e-communication considering that this is a multinational company. The company therefore needs some good understanding of the e-commucation and marketing strategies and this will in return ensure the effects of achieving their products are felt far and wide. This will then ensure the best returns on investments are produced. For the company to stay competitive and remain strong in the food and beverage industry it has to apply strategies that are appropriate in relation to the urgent needs. The communication strategies chosen by the company are supposed to be in compatible with the trending fad of the market as well as very creative. This enables the company to be better and also get more opportunities compared to their rivals. For instance the company can transmit any emails relating to the services and products directly and instantly to the consumers using just a mouse click. It should also embrace email advertising which is very convenient and faster compared to the normal offline postage of letters. References Alexa Internet, (2010). 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