Nestle is the world's largest food and beverage company having more than 2000 brands along with operations in 190 countries around the world.
Do you know how Nestle became such a monopoly around the world?
Let's find out!!
ββTHREADββ
Do you know how Nestle became such a monopoly around the world?
Let's find out!!
ββTHREADββ
1) Nestle's initial strategy had always been to enter emerging markets early-before competitors and build a substantial position by selling basic food items that appeal to the local population base, such as coffee, condensed milk, noodles etc.
2) By pursuing this strategy economies in the world i.e. Japan with their Coffee brand NesCafe and India with their noodles brand Maggie.
3) But, when they started selling instant coffee in Japan the Japanese did not connect with the product as the Japanese loved Tea, it was like a ritual to drink tea in Japan and hence the demand for "Nescafe" was not picking up.
4) Nestle's management knew that while good companies sell products, Great Companies sell Emotions to become a big brand.
That's why Nestle invested heavily in three things i.e. Research & Development, Marketing and target audience feedback to improve their products.
That's why Nestle invested heavily in three things i.e. Research & Development, Marketing and target audience feedback to improve their products.
5) After critically understanding the consumer behavior, Nestle realized that they need to connect with Japan population, so to cater this problem they started selling coffee flavoured
Chocolates to children.
Chocolates to children.
6) These children grew up with the coffee taste already in their mind and as they tried coffee it became a massive hit in Japan.
And as of now, Japan is third largest coffee importer in the world.
And as of now, Japan is third largest coffee importer in the world.
7) Same way when Nestle entered India with Maggie brand, noodles were anonymous to Indians. Indians did not connect with Maggie.
8) So to connect with Indians, Nestle launched marketing campaigns which resonated parents, Nestle took customer feedback, advertised in local languages to make Maggie an undisputable king in the market.
9) This way Nestle by building emotional connection with consumers and taking customer feedback very seriously became a monopoly in many countries.
10) Nestle's case studies teaches us to understand the psychology of consumers and build a product that becomes a feeling for customers rather than being just a commodity.
11) To know more about Nestle's genius marketing strategy watch Think School video on "Branding lessons from Maggie"
youtu.be
& for more such lessons follow @thinkschoolbot
youtu.be
& for more such lessons follow @thinkschoolbot
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