Fast Moving Consumer Goods-Nestle

Topics: Maggi, Marketing, Malaysia Pages: 4 (1468 words) Published: February 27, 2014
1.0 Introduction
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, “Nestlé 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 RM27.99/ 200g in 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...
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