Welcome to the second chapter of my internship report on Everest Enterprise's marketing department in 2023! In this chapter, we delve deeper into the dynamic world of marketing strategies employed by Everest Enterprise, a leading global company. Join me as we explore their innovative approaches, captivating campaigns, and customer-centric initiatives that have set them apart in today's fiercely competitive market. Get ready to discover how Everest Enterprise harnesses the power of marketing to elevate their brand and forge meaningful connections with their audience.
CHAPTER TWO
7
The context
Nestle is a global food and beverage company
that operates in more than 190 countries around the world. The company has a
diverse portfolio of products, including coffee, bottled water, breakfast
cereals, chocolate and confectionery, dairy products, infant formula, and pet
food, among others. In Nepal, Nestle has been operating since the 1960s and is
one of the leading food and beverage companies in the country.
Nestle's presence in Nepal began with the launch
of its first product, Maggi Noodles, which quickly gained popularity among
Nepalese consumers. Today, Nestle operates in Nepal through its local
subsidiary, Nestle Nepal Ltd., which is responsible for the manufacture,
distribution, and marketing of Nestle products in the country.
Nestle Nepal's product portfolio includes a
range of food and beverage products, including Nescafe coffee, KitKat
chocolate, Nido milk powder, and Maggi noodles, among others. The company has a
strong distribution network that covers both urban and rural areas of Nepal,
with a focus on reaching as many consumers as possible. (Source: https://www.nestle.com/)
Nestle's operations in Nepal are not without
their challenges. The country's challenging terrain and limited infrastructure
can make distribution difficult in many areas, and the company faces
competition from both local and international brands. However, Nestle also
benefits from Nepal's growing middle class and increasing health consciousness,
which presents opportunities for the company to expand its market share.
(Source: https://en.wikipedia.org/wiki/Nestle)
Overall, Nestle's presence in Nepal is an
important part of the company's global operations. As one of the leading food and
beverage companies in the country, Nestle is committed to delivering
high-quality products to Nepalese consumers while also contributing to the
local economy and community.
(Source: https://en.wikipedia.org/wiki/Nestle)
2.2 History
Nestle is a Swiss multinational food and
beverage company that was founded in 1866 by Henri Nestle. The company
initially started as a manufacturer of infant food and later expanded into
other food and beverage categories.
In the early years of the company, Nestle faced
competition from other infant food manufacturers and was also under scrutiny
for the quality and safety of its products. However, the company continued to
innovate and improve its products, and by the early 20th century, it had
established a strong global presence.
In the years following World War II, Nestle
continued to expand its product portfolio and global reach through a series of
mergers and acquisitions. This included the acquisition of companies such as
Perrier, Carnation, and Rowntree's, which helped Nestle become a major player
in the global food and beverage industry.
In the latter half of the 20th century, Nestle
faced a series of controversies related to its marketing practices, product
safety, and labor practices. The company responded to these challenges by
improving its product quality and safety, increasing transparency in its
marketing, and implementing sustainable sourcing practices.
Today, Nestle is one of the world's largest food
and beverage companies, with operations in more than 190 countries. The
company's product portfolio includes a wide range of brands in categories such
as coffee, water, confectionery, pet food, and infant nutrition. Nestle
continues to invest in innovation, sustainability, and community initiatives to
meet the changing needs and expectations of its consumers and stakeholders. (Source: https://www.nestle.com/)
2.3 Present Situation
The company has a strong presence in the
Nepalese market, with a diverse portfolio of food and beverage products that
are popular among Nepalese consumers. Nestle's sales in Nepal have continued to
grow steadily over the years, driven by the increasing demand for its products,
as well as the company's efforts to expand its distribution network and improve
its marketing strategies. The company has also been investing in research and
development to develop new products that cater to the changing preferences of
Nepalese consumers.
One of Nestle's key strategies in Nepal has been
to focus on innovation and sustainability. The company has introduced several
new products that are tailored to the local tastes and preferences of Nepalese
consumers. For example, it launched a new variant of its popular Maggi noodles
that is made with local spices and ingredients.
Nestle has also been actively promoting
sustainable practices in its operations in Nepal, such as promoting responsible
sourcing of raw materials, reducing waste and water usage, and investing in
renewable energy sources. The company has also been supporting various social
initiatives in the country, such as providing clean drinking water to local
communities.
In summary, the present situation of Nestle
industry in Nepal is positive, with the company continuing to expand its market
share and product portfolio while also demonstrating a strong commitment to
sustainability and social responsibility. However, the ongoing COVID-19
pandemic and other challenges such as political instability and economic
factors may impact the company's operations in the future.
2.4 Challenges and opportunities
Nestle, as a global food and beverage company,
faces both challenges and opportunities in its distribution of products in Nepal.
Here are some of the main ones:
2.4.1 National Challenges:
Limited Infrastructure: Nepal has a challenging
terrain, which makes transportation difficult in many parts of the country.
This can make it harder for Nestle to distribute its products to remote areas.
Competition: Nestle faces competition from other
established brands as well as local manufacturers in Nepal.
Political instability: Nepal has had political
instability in the past, which can affect the supply chain and cause delays or
disruptions.
Economic factors: Economic factors such as
inflation, exchange rates, and import/export policies can impact the cost of
Nestle products in Nepal.
2.4.2 National Opportunities:
Growing middle class: Nepal has a growing middle
class, which presents an opportunity for Nestle to expand its market in the
country.
Increasing health consciousness: Nepalese
consumers are becoming more health-conscious, which could lead to increased
demand for Nestle's healthy food and beverage products.
Partnerships: Nestle can form partnerships with
local distributors and suppliers to establish a more efficient distribution
network in Nepal.
Online marketplaces: The increasing penetration
of e-commerce and online marketplaces in Nepal presents an opportunity for
Nestle to reach consumers directly and expand its market.
In conclusion, the challenges and opportunities
facing Nestle in Nepal require the company to be strategic in its approach to
product distribution in the country. By leveraging local partnerships and
adopting innovative distribution methods, nestle can overcome these challenges
and take advantage of the opportunities presented by Nepal's growing market.
2.4.3 Global Challenges
Health and Wellness: Nestle, as a food and beverage company, has faced criticism and scrutiny over the years regarding the health impact of its products. The company has had to address concerns related to sugar and calorie content, as well as the use of additives and preservatives in some of its products.
Environmental Sustainability: Nestle is under
pressure to address its environmental impact, including greenhouse gas
emissions, water usage, and waste management.
Supply Chain Complexity: Nestle has a complex
global supply chain, which can create challenges related to quality control,
product safety, and ethical
Digital Transformation: Nestle, like many
companies, is facing the challenge of adapting to the digital age. This
includes leveraging technology to improve its supply chain, marketing, and
e-commerce capabilities, as well as addressing the changing preferences of
consumers who increasingly expect a seamless and personalized digital
experience.
2.4.4 Global Opportunities
Nestle has several global opportunities,
including:
Health and Wellness: As consumers become
increasingly health-conscious, Nestle has an opportunity to expand its product
offerings in the health and wellness space, such as plant-based foods,
functional beverages, and personalized nutrition.
Sustainability: Nestle has an opportunity to differentiate
itself from competitors by demonstrating leadership in environmental
sustainability. This can include investing in renewable energy, reducing waste
and water usage, and promoting sustainable sourcing practices.
Emerging Markets: Nestle has a strong presence
in emerging markets, which offer significant growth opportunities due to the
increasing consumer demand for packaged foods and beverages. The company has an
opportunity to tailor its products and marketing strategies to the unique
tastes and preferences of consumers in these markets.
Digital Transformation: Nestle can leverage
technology to improve its supply chain efficiency, increase its e-commerce
capabilities, and enhance its engagement with consumers through digital
marketing and personalized experiences.