Marketing and Nestle
Nestle Case Study
What are the environmental and internal forces that argue for Decentralization Vs Centralization at Nestle?
The “Nestlé way” is to dominate its markets. Its overall strategy can be summarized in four points: * think and plan long term * decentralize * stick to what you know * Adapt to local tastes
For many companies, such a long-term strategy would not be profitable, but it works for Nestlé because the company relies on local ingredients and markets products that consumers can afford. It 's a global company living mostly on local brands. Company prefers to be local and people regional.
Nestle grabs a lot of its growth simply by getting on the plane, and into new markets, first.
Centralized: The degree to which HQ has decision making authority.
Decentralized: The degree to which each country has decision making authority.
As every coin has two sides both of them have certain advantages and disadvantage as well. Nestle has been successful in centralizing as well as decentralizing few of its processes which has been proved to be cost effective and has helped the firm to improve its overall performance.
Standardized
Localized
Centralized
Decentralized
Packaging
Product
Promo.
Price
Advert.
?
Branding
Marketing functions had to be more decentralized than the financial and technical functions. Marketing processes like Branding and Packaging were centralized so that the Brand had a same identity all across the globe even identical Packaging would help the firm to distinguish its products from its competitors. Brand recall would be much easier for the customers. As far as Product is concerned it had to be centralized as well as localized in order to meet local taste and requirements. Same goes with the Price it needs to match up its local competitors as well. Nestle is effective enough in managing its pricing policy in various countries it’s operating. For ex: Pricing for Kit Kat has remained remarkably
What are the environmental and internal forces that argue for Decentralization Vs Centralization at Nestle?
The “Nestlé way” is to dominate its markets. Its overall strategy can be summarized in four points: * think and plan long term * decentralize * stick to what you know * Adapt to local tastes
For many companies, such a long-term strategy would not be profitable, but it works for Nestlé because the company relies on local ingredients and markets products that consumers can afford. It 's a global company living mostly on local brands. Company prefers to be local and people regional.
Nestle grabs a lot of its growth simply by getting on the plane, and into new markets, first.
Centralized: The degree to which HQ has decision making authority.
Decentralized: The degree to which each country has decision making authority.
As every coin has two sides both of them have certain advantages and disadvantage as well. Nestle has been successful in centralizing as well as decentralizing few of its processes which has been proved to be cost effective and has helped the firm to improve its overall performance.
Standardized
Localized
Centralized
Decentralized
Packaging
Product
Promo.
Price
Advert.
?
Branding
Marketing functions had to be more decentralized than the financial and technical functions. Marketing processes like Branding and Packaging were centralized so that the Brand had a same identity all across the globe even identical Packaging would help the firm to distinguish its products from its competitors. Brand recall would be much easier for the customers. As far as Product is concerned it had to be centralized as well as localized in order to meet local taste and requirements. Same goes with the Price it needs to match up its local competitors as well. Nestle is effective enough in managing its pricing policy in various countries it’s operating. For ex: Pricing for Kit Kat has remained remarkably