Nestle in Europe
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Nestle is the world's largest food products company with factories in 69 countries and a truly global marketing strategy. During 1994, Europe accounted for 46 percent of the company's revenues, North and South America for 36 percent, and other countries for 18 percent ("Osem," 1995, p. 7). In addition to chocolate (for which the company is probably best known in the United States), Nestle participates in pet foods (including Alpo), food products, beverages (such as Perrier) and cosmetics/pharmaceuticals (including Alcon and L'Oreal). At one time, the company owned Stouffer's Hotels, but it completed divestiture of that company in the early 1990s. The Swiss-based company has adopted an international marketing program in part because its domestic market is too small to accommodate its plans, but this program has not been without problems. A boycott begun in the 1980s against the company's infant formula marketing in developing countries has continued, sporadically, to today, and the company has faced problems with its growth through acquisition strategy. This research examines the company's international marketing strategy, with a particular emphasis on the strategies Nestle has adopted in Europe.The current configuration of the Nestle company came together in the early 1900s when a company owned by Americans based in Switzerland and a Swiss company merged. The American company had been using canning technology for canning milk while the Swiss
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chniques, including press releases, public relations, media advertising and in-store promotions. It also makes extensive use of advertising agencies, but is large enough and operates in enough different markets to where it uses a variety of advertising agencies depending on the market and the product in question. It also uses its considerable size in order to gain the best possible price and service from the agencies that it uses.
In recent years, Nestle has changed advertising agencies in several key areas, suggesting that it is changing its promotional strategies in these areas, as well. These changes occurred in its bottled water segment as Nestle removed the advertising agency which helped build the brand and replaced it with Ogilvy and Mather, a company which handled Perrier previously. Such moves are significant not just for Nestle, which is seeking to maximize its advertising return, but also for the agencies in question. The budget for this account alone was estimated to be in excess of $65 million ("O&M/Paris," 1993, p. 16).
In 1994, Nestle moved its Baby Ruth account to J. Walter Thompson (JWT) in San Francisco. The large advertising agency is a Nestle agency, but at the time of the move, the company did not hav
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Approximate Word count = 3490
Approximate Pages = 14 (250 words per page)
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