Essays on Transnational Marketing Issue: Nestle and Child Labour Case Study

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The paper "Transnational Marketing Issue: Nestle and Child Labour" is a great example of a marketing case study.   This case study is about child labour as an issue of transnational marketing for Nestlé . In the case study, the current strategies that are used by the company are evaluated. The evaluation is based on the different theories and concepts of transnational marketing that have been developed in the existing literature. The issue of child labour in the supply chain of the company is also examined in detail. Causative factors, overall effects and the approaches that the company is using to address child labour in its supply chain are also examined.

Lastly, future trends and recommendations on how Nestlé can address the issue effectively are presented. Market analysis for Nestlé Nestlé , as one of the major food companies in the world, has a large number of different brands. However, the company is known for its brands of chocolate products. Furthermore, chocolate is manufactured using cocoa. It is in the cocoa farms of West Africa that the issue of child labour is rampant. Therefore, analysing the strategy that the company uses in the global chocolate market is important.

Basically, the company uses an individual branding strategy for its products. Individual branding strategy is based on the practice of companies providing distinct names for their different products (Pride & Ferrell 2013, p. 456). The market segmentation strategy of Nestlé is largely based on the demand for its chocolate brands in different regions of the world. According to figures provided by KPMG (2012, p. 4) demand for chocolate products in the world is changing drastically. New demand is growing in the emerging economies of the world.

The following is a breakdown of the global market share for chocolate as indicated in the KPMG report. The report indicates that by the end of 2012, the value of the global market for chocolate had exceeded USD 100 billion (KPMG 2012, p. 2). Region Percentage Western Europe 32% North America 20% Asia 17% Latin America 13% Eastern Europe 12% The Middle East and Africa 4% Australasia 2% Therefore, Nestlé ’ s market segmentation approach is based on demographic and geographical factors. Although this is changing, the company segments its markets into the old and traditional markets in Europe and North America and the new markets in the emerging economies of the world.

The targeting of the products of the company is based on specific target groups which include children, young adults and adults. Through packaging and branding, the company targets specific consumer groups and successfully positions its brands in the market. Current strategic approaches used by Nestlé Nestlé uses a transnational strategy in its marketing operations. The company serves a large global market of consumers. Furthermore, its operations are distributed in different countries and regions in the world. Therefore, to address the challenges that are associated with its scale of operations, the company seeks to centralise the activities that are related to its production and supply chain management function while ensuring that some activities such as pricing and branding are flexible enough to adapt to local consumer tastes and preferences. In theory, a transnational strategy is characterised by several concepts and theories (Sheth & Parvatiyar 2001, p.

21). One of these is the process in which markets tend to be developed based on worldwide demographics as opposed to the process in which new innovations diffuse from specific countries to others over the course of time (Sheth & Parvatiyar 2001, p.

23). Therefore, companies attempt to target specific market segments by incorporating the entire population of the world as opposed to the practice in which companies would base their marketing strategies entirely on market segments that are defined in terms of strict geographical boundaries. Related to this is the concept of mass customisation. Basically, mass customisation is defined as an approach to the marketing activities of a company that can be used to help a company address the specific needs of a large number of customers of its products (Abdelkafi 2008, p.

15). Thus, the focus of using mass customisation is to help an organisation to be flexible and responsive enough to produce goods that meet the different needs of nearly everyone in the market.

References

Abdelkafi, N 2008, Variety induced complexity in mass customization: concepts and management, Eric Schmidt, Hamburg.

Fair Labour Association 2016, Independent external monitoring of Nestlé’s cocoa supply chain in Ivory Coast: 2014-2015, viewed 8 April 2016, .

Food Empowerment Project 2016, Child labour and slavery in the chocolate industry, viewed 7 April 2016, .

Fromm, I 2016, ‘From small chocolatiers to multinationals to sustainable sourcing: a historical review of the Swiss chocolate industry,’ in MP Squicciarini & J Swinnen (eds), The economics of chocolate, OUP, Oxford, pp. 72-87.

International Institute of Tropical Agriculture (IITA) 2002, Child labour in the cocoa sector of West Africa: a synthesis of findings in Cameroon, Cote d’Ivoire, Ghana and Nigeria, viewed 7 April 2015, .

KPMG 2012, The chocolate of tomorrow: what today’s markets can tell us about the future, viewed 8 April 2016, .

Nestlé 2016, Child labour, viewed 8 April 2008, .

Pride, WM & Ferrell, OC 2013, Marketing, Cengage, Mason.

Sackett, M 2012, ‘Forced child labour and cocoa production in west Africa,’ Tropical Research Digest: Human Rights and Contemporary Slavery, viewed 7 April 2016, .

Schneiderova, K, Merkel, S, Klotzer, N, Wiese, C, Weimer, S & Schrode, N 2010, Strategic analysis of Nestlé and its competitor Kraft Foods, viewed 8 April 2016, via .

Sheth, JN &Parvatiyar, A 2001, ‘The antecedents and consequences of integrated global marketing,’ International Marketing Review, vol. 18, no. 1, pp. 16-29, viewed 8 April 2008, .

Siegert, L 2014, Sustainable development approaches in the food and beverage industry: a comparison between Nestlé SA and Kraft Foods Inc., Anchor, Hamburg.

Staub-Bisang, M 2015, ‘Independent capital group: the importance of sustainable value creation as an investment criterion,’ in M D’heur (ed), Sustainable value chain management: delivering sustainability through the core business, Springer, Heidelberg, pp. 294-312.

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