Fast Moving Consumer Goods (FMCG) is the products that are frequently purchase by consumers and it is comparatively low cost in retail shop for example soft drinks or newspaper. Nestle is one of the global leaders in the FMCG segment. Nestle is a Swiss multinational food and beverage company which was founded in 1866 by Henri Nestle. It has around 450 factories and operates in 86 countries included Malaysia. Nestle Malaysia started in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and moved to Kuala Lumpur as necessary in 1939. 2.0
Marketing Environment James Shotter (2014) reported that, “Nestle issued a downbeat assessment of the prospects for the global economy as it reported its slowest year of growth since 2009. ” Normally the world’s largest food company’s targets the annual growth of between 5 and 6 per cent, but Nestle has slightly increased its sales from 4. 6 per cent to SFr92. 2bn during 2013. According to Paul Bulcke (2014), “The macro-environment in 2013 was one of soft growth, minimal in the developed world and below recent levels in the emerging markets.
Our response was to increase brand support, accelerate innovation, and to ensure our pricing was sensitive to consumer needs. ” 2. 1 Market Segmentation Nestle instant coffee Nescafe and the confectionery product Kit Kat are well-known brands in Malaysia. They segmented their market by dividing market into distinct needs and behavior in order to fulfill consumers’ want. For example, the drinkers of Nestle Nescafe have segmented by psychographic and demographic variables. Nescafe Dolce Gusto with the price RM27.
Tesco Hypermarket, might be more favorable for the upper class or the high income class than Nescafe 3 in 1 with the price RM14. 99/ 570g in Tesco Hypermarket. In the opposite way, Nestle Kit Kat has dividing its products flavors by geographic variable and segmentation by occasion, for instance, Nestle has introduced over 200 different flavors since 2000 during Valentine’s Day in Japan and United Kingdom including the flavors of green tea, creme brulee and more. According to Simon Neville (2014), “the public’s love affair with Kit Kats is continuing as the company behind the
four-fingered chocolate bars revealed sales in the UK were some of the strongest in the world. ” 2. 2 Marketing Communication Tools Moreover, Nestle is using the marketing communication tools, Media Advertising, Direct Response and Interactive Advertising and Event Marketing and Sponsorships to promote their products and attract more consumers. For example, we can always see the Nestle Milo, Nestle Kit Kat, Nestle Nescafe and Nestle Maggi on TV commercials during advertisement break. According to Kantar (2013), “Nestle spent $750 million on ads in 2012.
” With the modern technology nowadays, Nestle can also introduce or publish their products through the social media and search engine such as Twitter, Flickr, Youtube, Linkedln and the Nestle global Facebook page has already earned more than 5. 3million likes. Besides that, Nestle Milo always try to spread the message of “Good Food, Good Life” to all Malaysian therefore they have provide sponsorship and Milo van request for the organizer who wants to do healthy awareness campaign or event like, Malaysia Breakfast Day.
According to Ho Hau Chieh (2013), “Malaysia Breakfast Day is going to be the biggest breakfast event of the year and more Malaysians begun to take action and joined us in our rally in reinforcing the breakfast message. ” 2. 3 Target Marketing and its Existing Market Next, target marketing is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Nestle has differentiated their markets into the halal version of their well-known brands in Malaysia.
Nestle Malaysia produces about 300 halal products in its food and beverage range which are exported to more than 50 countries worldwide and now the company is the global Halal Center of Excellent. According to Paul Buckle (2012), “Nestle plays an importance role to the Nestle Group. Not only because of the unique location. But also of its strategic role as the biggest halal producer and the Halal Center of Excellent in the Nestle world.
” The Nestle instant noodles, Maggi has also targeted the differentiated marketing strategy. Its target audience was the working class, but now, it a convenience foods that love by everyone. Nestle Maggi has release more than 5 flavors that cater different taste and want from the consumers. According to Rosalyn Simba (2012), “Maggi noodles has always been the favorite brand among Malaysian and because of this, we at Nestle are constantly looking for new ways to enhance our product offering for the mass market. ” 2.
Market Positioning and related to Basic Marketing Concepts In addition, market positioning is the key feature, benefit, or image that it stands for in the target audience’s collective mind. Nestle Maggi used heavy advertising to build consumers’ perception and also build their own products’ image. Ibumie is one of the big competitors of Nestle Maggi in Malaysia markets because they have released the similar flavors and the slogan of Ibumie “Always Mi Goreng Asli” is more catchy than Nestle Maggi “Maggi Mi Goreng”.
Chok Suat Ling (2014) reported that, “Malaysians slurp down some 1.2 billion servings of instant noodles a year, or more than 40 packets per person. That’s more than 2,200 packets every minute. It has been reported that Nestle Malaysia sells over 1. 3 million packets of Maggi instant noodles a day. ” However, The Consumers Association of Penang (CAP) calls on consumers to avoid eating instant noodles as it is harmful to health. Besides that, there is many spiteful rumors sharing in the social network such as Facebook, and the rumors has made consumers hesitate to buy instant noodles.
Thus, the Maggi Malaysia official Facebook page has reply the consumer question about the incident, for example, “Dear Ed Brian Elmo Gill, at Nestle, food safety and quality are our top priorities. We would like to assure you that we have a stringent guidelines meeting the international standards and Malaysia Food Act and Malaysian Food Guidelines in ensuring MAGGI products produced are of high quality and safe for consumption. ” In spite of the rumors in the Internet, Nestle Maggi is the number one instant noodles in Malaysia because Nestle has developed strong brand equity to Malaysia buyers.
Its price is cheaper than its competitor, Ibumie, and, Nestle Maggi also uses the price adjustment strategy to attract more consumers by giving discount and allowance or promotional price. Maggi, as fast moving consumer goods, it must be selling at nearly every retailer outlet for consumers. 2. 5 Impact on purchasing trend on consumer behavior Nestle always try to adapt to the fast changing markets demand and release more variety for consumer and also compete with their competitors. Malaysia is a multicultural country with Islam being the largest practiced religion.
Therefore, Nestle Malaysia manufactures, imports and distributes only Halal products which have been certified by the Department of Islamic Development Malaysia (JAKIM) and the relevant recognised Islamic authorities. Without the Halal logo on food packaging, the Malaysian Malay will not consider buying Nestle products. For example, Nestle Milo is one of the Malaysian much-loved beverages. Navee Mathew Menon (2013) reported that, “over 15,000 have a good meal with their favorite drink, Milo on Malaysia Breakfast Day.
Many Malaysians grew up drinking the Swedish beverage that does not only taste wonderfully like chocolate, but also provides an energy boost. ” If Nestle Milo does not come out with Halal commitment, there will be a big lost to Nestle and also Malaysian Malays. 3. 0 Conclusion With the slogan of “Good Food, Good Life”, I believe that Nestle always wants to bring a better product to the world and especially Malaysia. Malaysia has provide a good market for Nestle to achieve their great success and become the most graduate employer in FMCG sector next year.