Preview

Nestlé: a Brief History of the Marketing Strategies of the First Multinational Company in the Ottoman Empire

Good Essays
Open Document
Open Document
795 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Nestlé: a Brief History of the Marketing Strategies of the First Multinational Company in the Ottoman Empire
Nestlé: A Brief History of the Marketing Strategies of the First Multinational Company in the Ottoman Empire

Abstract

It can be argued that private companies accelerated the integration of the late Ottoman Empire with the capitalist world economy. Western companies shaped not only the Ottoman economy but also its social and cultural environments. Modern marketing was one of the most important instruments in this process. This article investigates—via a brief historical survey of the marketing activities of Nestlé in the Ottoman Empire between the years 1870 and 1921—the interaction between Western firms and consumers. The article explores how Nestlé gained access to the urban Ottoman market and the methods it used for attracting the Ottoman consumer. Nestlé’s sales efforts show that it had to adjust its strategies to local realities through a process of learning, adapting, and using the specific characteristics of its host society to be successful.
Strategy
Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created Nestlé Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumer’s primary motivation for a purchase is the claims made by the product based on nutritional content.
In order to reinforce their competitive advantage in this area, Nestlé created Nestlé Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services.
The Corporate Wellness Unit was designed to integrate nutritional

You May Also Find These Documents Helpful

  • Powerful Essays

    Nestlé is "the world's leading Nutrition, Health, and Wellness company" (Nestle, n.a.). To maintain this position Nestlé will implement a combination of strategies: product differentiation, low-cost leadership, and product development. The purpose of this paper is to discuss 1) the implementation plan, 2) required organizational change management strategies, 3) key success factors, budget, and forecasted financials (including a break-even chart) and 4) a risk management plan, including contingency plans for identified risks.…

    • 2418 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    Goals: Nestlé’s primary objective is to be the leader in nutrition, health and wellness, committed to enhancing people’s lives, and the industry reference for financial performance, trusted by all stakeholders. Additionally, Nestlé is committed in driving performance in line with the Nestle Model of profitable growth and resource efficiency, with growth around 5% and improvements in margins, underlying earnings per share in constant currencies and capital efficiency.ii…

    • 1191 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Nestle is a corporation engaged in home products processing and marketing worldwide. In the mid-1860s, it developed an infant-food formula as a supplement and/or substitute to breast-feeding. It then claimed humanitarian achievement after the formula was used by relief organizations such as the Red Cross to feed starving infants in refugee camps. In third world countries, the Nestle product has also been used as an alternative to less nutritious local infant feeding substitutes. And today, Nestle is the third largest home food company in the world with gross sales of nearly US$39 billion a year. But the Nestle success story is marred by controversy as the company has been charged for gross violations of a World Health Organization Code that affected both first world and third world countries.…

    • 2409 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Nespresso Co. Analysis

    • 15077 Words
    • 61 Pages

    Nestlé is one of the largest food and Nutrition Company in the world, and global leader in the “mass market coffee”. The firm’s strategy is mainly based on innovation. Always looking for new market to enter in or new product to develop, Nestlé has a position of pioneer in almost the food and nutrition market. The main objective of this strategy is to be, and stay, in the leadership position and benefit from the first mover advantages.…

    • 15077 Words
    • 61 Pages
    Good Essays
  • Good Essays

    Marketing and Nestle

    • 1820 Words
    • 8 Pages

    The “Nestlé way” is to dominate its markets. Its overall strategy can be summarized in four points:…

    • 1820 Words
    • 8 Pages
    Good Essays
  • Best Essays

    Nestle (NSRGY) is the largest food and beverage company in the world operating within the global food and beverage industry. It provides nutrition, health, wellness products, baby foods, bottled water, cereal, chocolate, coffee, pet care products and more thru many major consumer brands. It is one of the most geographically diverse companies; only 42% of its food and beverage sales comes from North America. Nestlé’s major competitors include Hershey Foods, Kraft Foods, Unilever NV and Cadbury Schweppes. It already has a strong seat as a leader. So going forward, Nestle aims to increase the nutritional value of its products and to expand the product lines to offer therapeutic foods to people with illnesses. They desire to transform themselves from a food manufacturer to the world’s leading nutrition, health & wellness company. In pursuit of this, Nestle launched a subsidiary in 2010 which creates food-based products that prevent and treat different medical diseases.…

    • 2022 Words
    • 9 Pages
    Best Essays
  • Satisfactory Essays

    Discuss the Vision and Mission of Nestle and the fundamental principles with that guide the company’s strategy…

    • 528 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material Sourcing within the Concept of Creating Shared Value, para. 31). Because Nestle operated within such a broad scope, they were subjected to significant vulnerability. Nestle realized that a risk to its producers had potentially severe implications for the company (Goldberg, 2012, para. 31). This directed the company on the path of incorporating sustainability and the concept of creating shared value within its value chain to match the companies’ core concepts and business values with regards to the triple bottom line.…

    • 2346 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Nestle Case Study

    • 915 Words
    • 4 Pages

    Today, Nestle is one of the oldest multinational companies in the world. With revenues as high as $14 million, Nestle is one of the most well known food manufacturers world-wide. Since its creation, Nestle has adopted a “uniquely Swiss and neutral philosophy” as its business plan. The company planned to pursue global expansion by creating a number of local operating companies with their own local management. While the company maintained a large and influential central staff, Nestle relied on the local management in each local market to establish a strong brand to their specific region. Each of Nestle’s 75 operating companies was run by a country manager who was responsible for the profits and losses in the company. The local manager was also responsible for all the marketing, manufacturing, financial, and administrative functions. These local product managers were key for the company’s marketing strategy to be successful. The company also relied on a very strong central headquarters…

    • 915 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Swot of Nescafe

    • 856 Words
    • 4 Pages

    Nestle is a Swiss multinational company which was founded in 1866 and finally formed in 1905 by merging two companies, and it is the largest food company in the world which products include breakfast cereals, pet care, ice cream, bottled water, dairy products, baby foods, chocolate and confectionery, sports nutrition, weight management, food service, culinary, chilled and frozen food, healthcare nutrition, drinks as well as coffee, and it launches a presence in almost every country in the world. And it aims at providing good foods, beverages to customers in order to enhance their lives.…

    • 856 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Nestle Marketing Plan

    • 3095 Words
    • 10 Pages

    Castelar Articles, 2005. Nestle 's Competitve Strategy. [Online] Available at: http://articles.castelarhost.com/nestle_competitive_strategy.htm [Accessed 8 April 2012].…

    • 3095 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created Nestl Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy. This market is characterized as one in which the consumers primary motivation for a purchase is the claims made by the product based on nutritional content. In order to reinforce their competitive advantage in this area, Nestl created Nestl Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition. This unit aims to deliver superior business performance by offering consumers trusted, science based nutrition products and services. The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and beverage businesses. This unit will drive the nutrition, health and wellness organization across all their food and beverage businesses. It encompasses a major communication effort, both internally and externally, and strives to closely align Nestls scientific and RD expertise with consumer benefits. This unit is responsible for coordinating horizontal, cross-business projects that address current customer concerns as well as anticipating future consumer trends. International Strategy Nestl is a global organization. Knowing this, it is not surprising that international strategy is at the heart of their competitive focus. Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America. Nestl recognizes the profitability…

    • 5461 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Nestle is one of the world’s largest global food companies. It has over 500 factories in 76 countries, and sells its products in 193 nations. Only 1% of sales and 3% of employees are located in its home country, Switzerland. Having reached the limits of growth and profitable penetration in most Western markets, Nestle turned its attention to emerging markets in Eastern Europe, Asia, and Latin America for growth. Many of these countries are relatively poor, but the economies are growing quickly. Thus a consumer base capable of buying many Nestle products will develop over the next couple of decades.…

    • 614 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Nestle is the world's leading nutrition, health and wellness company. Their mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.…

    • 2524 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    nestle

    • 1972 Words
    • 8 Pages

    Nestlé, as the most famous food and beverage company, is established in Vevey, Switzerland. With the global development, Nestlé employs over 330,000 employees, creates more than 2000 brands worldwide and operates business in approximately 86 countries. Thus, there are many contracts between Nestlé and manufacturers, some of whom provides exclusive services for the company. Currently, Nestlé starts with the concept that forms a nutrition, health and wellness company and the mission that good food, good life via its brands and acquisitions (Nestlé website, 2014).…

    • 1972 Words
    • 8 Pages
    Powerful Essays