International Marketing Evaluation Case Study

Introduction 

 International marketing (IM) implies for the advertisement of goods and services outside the company’s domestic audience. For every organization, IM is significant because it helps in reaching the global audiences and economic diversification. The marketing of the goods and services within the global countries will be beneficial for the organizations because it helps in increase sales, reduce scale cost, expanding market share and increasing the brand awareness. The organization will enter into the global market by licensing, franchising, exporting etc. Apart from this, the report will be based on international marketing evaluation of Nestle. This organization will be increasing its presence and expanding its business operation within the UK and India. In addition, this report will highlight the environmental and micro analysis of chosen business. This report will also confer the evaluation of entry and marketing strategies of this multinational organization within India and UK.

SECTION 1

1.1 Global Profile of Nestle 

Nestle is one of the leading food and beverage company in the world. This organization is belongs to food processing sector. The chosen organization was incorporated in 1950. The product portfolio of chosen business includes bottled water, chocolates, baby food, coffee, confectionery and culinary products. Nestle is also provide chilled and frozen foods, plant-based foods, ice-cream, dairy products, pet care and nutritional products. This organization markets its products under the various products such as Milkybar, Cerelac, Nido, Maggie etc. In addition, this organization has business presence across Oceania, Asia, Europe, the Americas, Africa and the Middle East (The Global data plc, 2024). 

The mission statement of Nestle is to become a leading health, nutrition and wellness company in the world. The mission of the chosen business is “good food, good life”, is to offer a consumers with the most nutritious choices and best tasting in a several ranges of beverages and food to boosting health, enhancing communities and lives of the consumers. 

Along with this, the vision statement of chosen business is to become a leading company in the world that producing higher value for shareholders by being a selected employer, partners and sellers (Endrawmind, 2024). The objectives of selected business are to build the mutual trust with government authorities, consumers and business partners as well as achieve compatibility with global voluntary standards on system of environmental management. Nestle has significant position in the India and UK against its competitors such as Pepsico, Britannia industries Unilever etc. 

Apart from this, for the first time Nestle entered in India in 1956 and it set first production facility at Moga in Punjab. In India, Nestle was entered through direct exporting and it considers the degree of market knowledge, economic distance, timing and political risks while entering in India. On the other hand, Nestle entered in the UK in 1860s with the help of licensing. Licensing can be effective market entry strategy for Nestle to enter into the UK in comparisons to India because it grow and develop its business operation widely and gain more competitive advantage due to large number of competitors.

1.2 Environmental Analysis 

1.2.1 Macro analysis

1.2.2 Micro-analysis 

The micro analysis of the organization includes evaluation of its consumers and competitors. Consumer analysis is a determining the target customers of organisation and understanding their preferences and requirements which help the professionals to market the right products. With the help of consumer analysis the organization can easily determine the buying behaviour, power and their purchasing habits in relevant to the goods and services within the new market (Katsikeas, Leonidou and Zeriti, 2020). It will be crucial for Nestle to analysis its consumer’s power and purchasing behaviour to market the products within the India and UK. The buying behaviour of the customers in India is totally different from the UK. In India, the customers are more driven towards the information-centred shopping and buying the products to stay up with increasing demand of customized goods, current trends and up-taking time saving services. In India, the behaviour of the consumers are persuades by the perceived value of money. Along with this, the consumer buying power in India is different from the UK. In 2022, the consumer spending reaching 24787.00 INR Billion as compared to UK. On the other hand, in 2022 the consumer spending in the UK is more than the previous year and it reached 1.5 trillion British pounds (Sabanoglu, 2023). The buying power of customers within both new markets are strong so i it will be beneficial for the chosen organization to market its products. The buying habits of the customers in India are dissimilar in comparison to UK. In India, the customers are likely to purchase the products during the festive seasons like Diwali, Navratri etc. in comparison to the UK. ‘

Apart from this, competitor analysis is process of determining the competitors in the industry and investigating their diverse marketing strategies . In India, Nestle has wide range of competitors such as Britannia Industries, Unilever, Tata consumer products etc. While, in the UK Rowntrees, Pepsico etc., are the biggest competitors of chosen business. 

 Competitor’s analysis of Nestle in India 

Competitor’s analysis of Nestle in UK

From the above competitors analysis it has been determined that Nestle will have high level of competitions within the UK and India from which it will face threat of gaining competitive advantage and profitability. In India, the competitors of Nestle like Unilever implement market oriented pricing strategy so it will be crucial for Nestle to set the prices of its core products accordingly which helps in attracting more customers. To gain the competitive advantages and increase the brand image over the Britannia it will be beneficial for Nestle to grow and develop the business operation within India because it sold its products only in 80 countries. On the other hand, UK is competitive market so it will be beneficial for Nestle use social media channels to attract more customers over the competitors which help in gaining the competitive advantages.

SECTION 2

2.1 Assessing the country attractiveness and Entry Strategy

The organizations are using wide range of entry strategies for enter into the new markets for expanding the business operation and market the product and services at global level. For the growth and development as well as advertise the goods in India, Nestle can use direct exporting. On the other hand, with the help of licensing, Nestle can easily enter within the UK to expand its business operation. Both entry strategies are different from each other. Exporting involves advertising the products that manufacture in the country in which it intend to sell to the customers (Karhu and Ritala, 2021). In this entry strategy, the chosen organization can sell the products in India through direct and indirect exporting. In the direct exporting, the chosen organization can sell the goods they produce in the global market without involvement of third-party. On the other hand, in indirect exporting the organization can sell its products through international distributors, agents etc. Selecting this entry mode for expanding and advertising the business operation within the India can be beneficial for Nestle. With the help of this entry strategy the chosen business can select the international representative within the overseas market.

In addition, company can use the direct exporting strategy to test the goods in global market before making huge investment into the international market. Direct exporting strategy assist the chosen business in protecting its goodwill, trademarks, patents and other intangible assets (Vissak, Francioni and Freeman, 2020). Apart from this, Nestle can use the licensing as an entry mode to enter within UK to expand and market its products in international market. Licensing is a type of international marketing that happen when one company is called as licensor. This entry strategy can allow another organization in an international country to use its intellectual property. This entry strategy can be valuable for Nestle seeking to develop its brand awareness in a global market. 

This entry mode will be beneficial for selected organization to enter into the UK because it helps in creates the opportunity for passive income, new business opportunity and reduce risk for both parties. Licensing will helps the chosen business in creating the easier entry to the foreign markets and create self-employment opportunities. Furthermore, both entry modes are similar in the context of entry i.e. fast and both entries are involved low risk and cost for the organizations. If the organization has its own intellectual property, then this entry mode can help it to create a passive income (Akinsipe Olasunkanmi, 2021). For marketing the products within the UK through this entry strategy will be valuable for the chosen business because it require less money for it as compare to direct exporting. One of the dissimilarity between the licensing and exporting is it create the new opportunities for the business. In this entry strategy, Nestle can buy a business license and start making money instantly. Moreover, licensing is designed to reduce the risks which are involved in the operating the business operation within the new markets. Adaption of this entry mode will be beneficial for the chosen business because licensee faces fewer risks in comparison to other mode in the context of market testing, product development, distribution and manufacturing. 

The chosen organization can evaluate its country attractiveness or competitive strengths with the help of GE McKinsey matrix to evaluate the effectiveness of entry decision in UK and India. GE matrix is one of the significant strategic frameworks that is useful for the multinational companies in order to prioritize their investments and manage the portfolios across the strategic business units and products (Katsikeas, Leonidou and Zeriti, 2020). This strategic framework can also useful for the Nestle in order to evaluate the effectiveness of entry decisions within the new markets. This framework is useful for the organizations because it helps in calculating the market attractiveness in which it is operating its business operation. This matrix helps in calculate the industry attractiveness by considering several factors such as industry profitability, industry segmentation, market size, market growth rate, differentiation, level of competition etc. Implementation of this framework can be beneficial for business because it is simplified approach to investment allocation and portfolio analysis decisions. It helps the organization to gauging and mapping the strategic position of business unit as well as help it to understand it to make profit or not. 

2.2 Strategic marketing formulation

Segmentation, targeting and positioning (STP) is a three step model that helps the business to evaluate its goods and services as well as method to communicate or interact their benefits to the particular market segment (Ad?güzel, 2020). 

Segmentation: The segmentation strategy of Nestle in India and UK will be based on the geographic, demographic and psychographic variables. In the context of demographic, the chosen business target customers of all ages of people because all are likely to consume the chocolates, ice-cream etc. In the context of geographic, Nestle will need to increase strong presence within the emerging markets such as UK and India where it target customers with high and low income level. The psychographic segment includes values and lifestyles (What Are Segmentation Variables in Marketing, 2024). The target customers of Nestle within India and UK will be environmental consciously with organic products. 

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Targeting: The targeting strategy of Nestle will be based on niche and mass marketing within the new markets. Nestle will mainly target middle and high income class people who are looking for quality & organic food products. 

Positioning: The positioning strategy of chosen business will be based on creating the value for the customers with the help of its goods and sustainability initiatives. By highlighting price and quality aspect in the advertisement firm would become able to attract large number of customers. 

Global targeting strategy is a process of choosing and prioritizing the most profitable and attractive markets (Sudirjo, 2023). The global targeting strategy of Nestle within new markets will be leveraging analytics and consumer data to drive marketing campaigns. The chosen company position itself in the global market by understands the needs of target market and determine its competitive advantage.

Figure 1: Positioning map of Nestle

SECTION 3 

3.1 Product Decision

Nestle will need to provide its products in the UK and India according to the taste and preferences of the customers. The taste & preferences of the people within UK are totally different from the India. In UK, the customers are likely to consume the products with the ingredients of mixture of veg and non-veg in comparison to India. It will be crucial for the chosen organization to effective decisions in the context of selling the products with the both markets because it directly impacts the sales and profitability. The core products of Nestle in UK and India will be cereals, baby food, chocolates, coffee, drinks, frozen food etc. The core products that will offer by the chosen business in both countries are standardised. Providing the standardized products to the customers in the both countries will be beneficial for the organization because it helps in enhance the efficiency of the production. The process of producing products becomes more effective if the ultimate objective is to sustain the homogeneity. 

In addition, it will be beneficial for Nestle to provide standardized products to the customers in UK and India to attract the customers because it require less pressure to manufacture particular product with each cycle of production. It will be valuable for the Nestle to adapt the standardization because it helps in manufacturing the similar products by using the same machining, ingredients, techniques etc. The uniformity of the product also ensures bulk purchasing of raw materials which results in shipping discounts and procurement (Garachkovska et al, 2021). Along with this, the decision relevant to product standardization will be effective for the selected company because it assist in reducing the costs in providing training to the employees, branding, marketing techniques and packaging. The standardized products manufacture the goods by using the already accessible structure. This product decision will directly relate to the judgement to the micro and macro analysis which positively impact the operation and efficiency of the business.

Apart from this, standardization products help in setting the phase for recognizing the growth and development of the business. If the chosen business is standardizing the products then it helps in establishing the process like marketing and avoids others such as designing packaging, redeveloping the products and finding the suppliers. Standardization of the products with the new markets helps in building the strong brand reputation of the business which positively impacts the secure funding, market share and grow internationally (Wichmann et al, 2022). The standardization of the products throughout the global and ethical markets ascertains the one product, which helps in reaching the large number of customers regardless of physical location. On the other hand, in India the chosen organization perceives the importance of cultural arrangement and reasonableness in comparison to the UK. In the UK, the customers are preferred to flavoured products in comparison to the India and they are also likely to eat chocolates with the organic materials so it will be crucial for Nestle to provide products according to customer’s needs and preferences.

3.2 Distribution Decision

At the time of expanding the business operation and marketing the products within the new markets it will be crucial for the company to make the effective decisions in regarding the distribution structure and process. Effective decision regarding distribution structure helps the companies to increase the market reach. Effective distribution strategy will help Nestle to reach the new markets, increase brand awareness and increase the visibility as well as target the particular customer segments. Additionally, the distribution structure and process of Nestle will be standardized in the India and UK. The chosen organization will have its own distribution networks equipped with all the require transportation facilities. The effective distribution strategy and structure are significant for organizations to expand their market to reach geographically and enter global markets. 

With the help of effective distribution strategy, organizations can overcome the barriers of cultural and logistics in order to gain admittance to local market insights. The decisions regarding the distribution process and strategy will be effective for Nestle because it helps in enhancing the experience of the customers. Establishing the standardized distribution strategy will help the selected organization in identify where and how the customers are like to buy the products (Heckman and Moktan, 2020). Adaption of standardize distribution strategy the chosen company will easily share the information with the marketing, sales and transportation team in order to offer the better customer experience. If the company has standardized distribution strategy then it helps in increase the customer loyalty. Having a standardize distribution strategy will help Nestle to save the time and delivering the products more effective which results in increase the satisfaction of the customers. The distribution decision of the chosen organization will be efficient because it complements the in-house abilities and resources which help in decrease the cost. 

 The standardize distribution process and strategy will help to Nestle in increase the sales which ultimately positively impacts the profitability and efficiency. Developing the standardize distribution strategy and process is beneficial for the organization because it helps in scaling them faster and increasing the sales by offering admittance to larger target audience of potential customers. The decision of distribution strategy and process will be directly relate to the entry strategy i.e. exporting and licensing. In the exporting, Nestle will appoint the intermediaries or third party agents to sell or market the products to the customers in various locations. For entering in India and UK through licensing and exporting will be beneficial for the organization according to its distribution strategy because it helps in delivering the products to the customers fast from which they are likely to make the repeat purchase again. In the UK, Nestle leverages various distribution channels such as general stores, supermarkets and online stages. On the other hand, in India this organization can distribute its products through online or physical stores. 

3.3. Pricing Decisions 

In India, Nestle will focus on price skimming strategy in order to attract more customers, increase sales and profitability. On the other hand, in the UK, Nestle has wide range of competitors such as Unilever, Pepsico etc., so it will focus on competitive pricing strategy to attract more customers towards them rather than its competitors. The pricing decisions of Nestle will be effective for both the countries. For expanding the business operation and marketing the products in India will be beneficial for the selected organization. In this pricing strategy, the chosen business will change the maximum prices for the new goods and then minimize the price over time. Implementation of this price skimming strategy will be beneficial for the chosen business because it helps in improving the return on investment. Selling the products at higher rate helps the business to increase the profit margins when demand is high within the market. Adoption of price skimming strategy for expanding the business in India will be beneficial for the chosen business because it helps in maintaining the interest of the consumers. Lowering the income of products will be considered as an effective way for keeping the interest of the customers high (Liu et al, 2020). In India, majority of the people are belonging from low-level of income in comparison of the UK. In India, the customers are likely to purchase the products with low ranges so it will be beneficial for the organization to adopt this strategy. In India Nestle can implement the expense based estimating strategy to set the prices of products in comparison to UK.

Apart from this, in the UK the people are belong from high-level income and they are majorly focuses on quantity of products rather than price. So it will be beneficial for Nestle to adopt the competitive pricing strategy. In this strategy, the organization will set the price of its products according to the current market rate (Ali and Anwar, 2021). With the help of this pricing strategy, the chosen business will attract the more customers and increase the sales over the competitors to gain the competitive advantage. The decision of Nestle regarding pricing will be beneficial because it helps in increase the traffic, prevent market share losses and boost profit margins which ultimately positively impacts the operation and efficiency within the new market. The pricing decisions of the chosen business will directly relate to the macro, micro and STP. Nestle will set the prices of the products according to the segmentation of the customers from which all can buy the products at reasonable prices. The chosen business will set the price of products according to the customer’s position to increase the value. To maintain the lifestyle of the customers by providing better quality of products Nestle will focus on CSR initiatives which help in improving the relations with the public.

Apart from this, the UK is highly competitive market so Nestle can use worth-based estimating method to set the prices of products. In this strategy, the chosen organization can adjust the estimation of products with the deceptive worth and quality to attract the customers.

3.4 Promotion Decision 

 In current times, the use of technology is rapidly increases and all the organization are likely to use the social media platforms in order to provide the information about the products to the customers. To market the products within the India and UK, Nestle will also use social media platforms as an advertising strategy. In India most of people are spending their majority of the time on social media platforms in comparison to UK so it will be valuable for the chosen business to market the products. In 2022, 470.1 Million users were active on social media in India (OOSGA, 2023). Advertise the products within the India and UK through social media will be beneficial for Nestle because it facilitates faster and easier communication. With the help of social media, companies can receive, review and react the problems of the customers faster and easier than before. In January, 2023 57.1 million users were active on social media within the UK (Dixon, 2023). In India, Nestle can marketing its products through social media platforms to attract more customers in comparison to UK. On the other hand, in the UK in-store marketing strategy still exists so Nestle can use this strategy to promote the products within the competitive market. 

Therefore, it will be beneficial for Nestle to use the social media to advertise the products within the India and UK. Social media help the companies to make their brand more relatable which helps in attract the most customers by increasing their awareness which directly impacts the profitability and sales. If the business has brand image within the market then the customers are likely to make repeat purchase and retain them with long period of time. This advertising strategy will aids Nestle in generating the leads directly and indirectly. It provides low-commitment and easy method for the target customers to express the interest in the business and its products. Marketing the products through social media helps in increase sales and increases the engagement of the customers as well as builds the reputation of company within highly competitive market (Hanaysha et al, 2021).

 The advertising decision of nestle for both countries are effectively according to the microenvironment and it’s STP. The target customers of chosen business within both countries are low and high income as well as group of all ages. So in India and UK all ages or income people are spending their time on social media which helps chosen business in increasing traffic, sales , profitability and developing the business operation successfully.

Conclusion

From the above report it has been summarized that, to expand the business and market the products within the new markets it can be significant for the organization to focus on the micro and macro environmental factors. To promote the products within the new country it can be vital for the company to analysis the buying behaviour, power and habits of the customers. For growth and development in the new countries it can be crucial for the business to analysis their competitor’s strategies, approaches in order to gain the competitive advantages. With the help of licensing and exporting as entry strategies the companies can enter into the global markets. It can be crucial for Nestle to focus on STP to market the products in the UK and India. For growing and developing the business operation successfully in new market it can be vital for chosen business to make the effective decisions regarding its product, price, promotion and distribution.

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References

Books and Journals 

Ad?güzel, S., 2020. Market and brand positioning and sustainability strategies in international marketing. International Journal of Scientific Research and Management, 8(9), pp.9-24.

Akinsipe Olasunkanmi, M.G., 2021. The economic effectiveness of international companies on the markets of the host countries (based on materials of Nestlé SA) (Doctoral dissertation).

Ali, B.J. and Anwar, G., 2021. Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. Ali, BJ, & Anwar, G.(2021). Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. International journal of Rural Development, Environment and Health Research, 5(2), pp.26-39.

Garachkovska, O., Sytnyk, O., Fayvishenko, D., Taranskiy, I., Afanasieva, O.M. and Prosianyk, O.P., 2021. Strategic management of brand positioning in the market.

Hanaysha, J.R., Al Shaikh, M.E. and Alzoubi, H.M., 2021. Importance of marketing mix elements in determining consumer purchase decision in the retail market. International Journal of Service Science, Management, Engineering, and Technology (IJSSMET), 12(6), pp.56-72.

Heckman, J.J. and Moktan, S., 2020. Publishing and promotion in economics: The tyranny of the top five. Journal of Economic Literature, 58(2), pp.419-470.

Karhu, K. and Ritala, P., 2021. Slicing the cake without baking it: Opportunistic platform entry strategies in digital markets. Long Range Planning, 54(5), p.101988.

Katsikeas, C., Leonidou, L. and Zeriti, A., 2020. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review, 37(3), pp.405-424.

Liu, Q., Zhang, X., Huang, S., Zhang, L. and Zhao, Y., 2020. Exploring consumers’ buying behavior in a large online promotion activity: The role of psychological distance and involvement. Journal of theoretical and applied electronic commerce research, 15(1), pp.66-80.

Sudirjo, F., 2023. Marketing Strategy in Improving Product Competitiveness in the Global Market. Journal of Contemporary Administration and Management (ADMAN), 1(2), pp.63-69.

Vissak, T., Francioni, B. and Freeman, S., 2020. Foreign market entries, exits and re-entries: The role of knowledge, network relationships and decision-making logic. International Business Review, 29(1), p.101592.

Wichmann, J.R., Uppal, A., Sharma, A. and Dekimpe, M.G., 2022. A global perspective on the marketing mix across time and space. International Journal of Research in Marketing, 39(2), pp.502-521.

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