Nestle Nesquik Consumer Behavior

Nestle Nesquik Consumer Behavior

Introduction

Nestle is an incorporated multinational company that manufactures milk and nutrition products such as chocolates, beverages, and other confectionary products. Nestle has a client base across the international borders that are strategically for growth and expansion with the influence of its business policy that states constant renovation and innovation. Currently, Nestle has over 2,000 brands of products with almost 400,000 employees operating in over 180 nations. As such, this paper aims at assessing the Nestle’s marketing consumer behavior, market segmentation, position, and targeting in selling its selected brand Nesquik.  The assessment is divided into two parts with the first part focusing on consumer behavior while part two focuses on market segmentation, targeting, and positioning.

Part 1 – Consumer Behavior:  How People Make Buying Decisions

1. Consumer Behavior Model: Environmental factors

Environmental factors are external forces that determine the business opportunities and risks of introducing the product into the market. The environmental factors of the business illustrate the effectiveness and efficiency of the product into the market situation, which determines its performance (Ertz et al., 2016). The environmental factors are classified as political, technological, economic, environmental, and social forces. The political factors that Nestle should consider include laws, regulations, and taxation for compliance in different countries. The company should also consider the export and import duties as well as the change of political landscape that affects the political stability of the target market. Economic factors include the inflation and price change while technological factors affect the production, logistic, and market of the products. Environmental factors such as weather changes can affect the sale of Nesquik, as cold and hot temperature will influence different market demand of the product.

1. Consumer Behavior Model: Consumer factors

The consumer factors include the fashion, lifestyle, local culture, norms, and values of consumers. The factors determine the sale of the products as they influence the customers’ preferences, current and future behaviors of the consumers, as well as the diversity of the consumers based on the cultural differences (Lantos, 2015). They determine the cognitive behaviors of the consumers to determine the taste or brand of the product to buy. Understanding these consumer factors help the company to manufacture products as per the local ingredients and tastes to attract the preferences of the largest clientele.

• Role of involvement in consumer decision-making

The involvement level of the consumers during the decision-making process concerning product development and marketing determines the importance of the product or services to the target market. The involvement is important as it gives the consumers time to evaluate the product or the company to know their needs. Need recognition is helpful to Nestle as it formulates the marketing strategies that are favorable to the end users, which means the product will satisfy the needs of the target market in the best way possible (Maniatis, 2016). For instance, Nestle will be able to identify the flavors or colors of the products that are favorable to a specific segment of the clients. The involvement will also help in pricing strategy, as the products introduced in the market will be packaged in the quantities that are affordable to the target market segment. In other words, the high involvement market products are the one that represents the consumers in terms of finances, status, personality, and lifestyles. Such representations act as emotional and rational motivators that contribute to consumer purchases.

1. Consumer Decision-Making Process

The process involves six steps including recognition of needs, search of information, evaluating alternatives, purchasing and post-purchasing behaviors, as well as disposal of the product. Nestle’s marketing strategies can be used to influence the decision-making processes, which includes advertising the fact that the price of the product is directly related to its quality. In this case, the consumers can agree to pay more for some brands as they identified the product to be high standards. Creating brand loyalty in Nestle is commonly used to create assumptions that the consumers will continue buying the products as they are superiors than alternatives in the market (Oke et al., 2016). Nestle’s products are made of different preservatives or flavors at a fair price for affordability to the diversified target market. The marketing strategies such as branding and advertising help the consumers to identify the products that satisfy their needs more easily, which motivates their purchasing decisions.

PART II

1. Market Segmentation

Nestle has a heterogeneous consumer market as it operates in different regions in the global market with different demographics such as the varying tastes, needs, and preferences.  A good example of Nestle demographic segmentation is the ones categorized with ages such as Lactogen 1 for toddlers aged below seven months, Lactogen 3 for the ones below 12 months, and Cerelac for one-year-old babies. Demographic segmentation is also characterized by the occupation where Nescafe Classic is classified for income-generating consumers, as the prices correlate with their earnings. Nestle also offers powdered beverages that are designed for people who are not decisive on the choice of the product taste.

Another market Nesquik market segment is the psychographic segmentation that is characterized by personality, lifestyle, interests, and activities, among other factors. Nestle came up with the KIT KAT product that was designed specifically for people who enjoys chocolate. The company has a 3 in 1 Nescafe that is designed for only clients who have no time or are busy with other things. Nesquik was also designed with the ready-to-drink bottles with flavored milk powder that comprises of the flavors of the real milk and either real cocoa or chocolate. The psychographic segment of Nestle Nesquik is also characterized by the nutritional benefits of the beverage such as vitamins, proteins, or fats.

1. Target Market

The main market targets for Nesquik are the children and babies for ensuring sufficient nutrition, despite the fact that the parents are the ones who purchase the products. Nestle also targets another new age generation for building a strong relationship with various eatable foods. The market segmentation for Nestle unearths the market opportunities available for the company and their products. When conducting a target market analysis, the company evaluates different types of segments to decide the one that is viable for its products. Nestle marketing strategy is based on the two coverage policies including differentiation and concentration. The company has a marketing strategy of providing different products segments based on the season, climate, occupation, and ages. For the Nesquik, the company aimed at targeting the clients who need the taste of the real chocolate. As identified in the demographic segmentation, the company serves a special reputation acquired from the market niche. Notably, Nestle is specialized in the production of baby foods for different ages such as Lactogen 1 for less than seven months old, Lactogen 3 for less than 12 months, and cerelac nutrition for babies aged over 12 months. The market target can be named “Nutritious Baby Chocolate” based on the expected growth, market size, competitiveness, marketing costs, and compatibility to the target segment. Targeting the babies is helpful to Nestle as the market is sizeable for making profits about the costs of operation (Samiee & Chirapanda, 2019). The children are born daily, which means the market grows continuously. The Nestle has a popular brand name that cannot be swiped by the competitors, thus adding nutritious value to the products makes the products to stand out. On the resources, the company has the resources to compete with other market forces.

• Target market strategy

As a target market strategy for the “Nutritious Baby Chocolate” Nestle needs to use multi-segment marketing, as a way of providing the products that meet the needs of different segments. The multi-segment market will help the firm to become less vulnerable to the competition in the market situation (Singh & Uncles, 2016). Different forms and designs of the chocolates with variable tastes and nutrition value will help meet the needs of children with differentiated ages.

1. Positioning

Nestle uses its products, image, people, channel, and service differentiation to reach the consumers more easily, efficiently, and effectively as compared to other competitors in the food market (Brumbaugh, 2015). The company makes almost 25 varieties of minerals in the Nido product that targets children, which makes it the best in the highly competitive market. On image differentiation, the company uses its unique Nestle logo that differentiates it from other competitors and easily identifiable by the consumers. On the channel, Nestle uses their experienced sales and transportation staffs for the products to reach their target markets.