A Study on Nestle Promotion Strategy

This study aims to identify the most effective promotional medium used by Nestle. Nestle is the most successful manufacture which processes high quality and nutrition food and beverage to the Malaysians. To inspire consumers to purchase their products, Nestle must transform their promotional strategies frequently. A research will be conducted to collect information from respondent based on different characteristics to identify which is the most effective promotional medium used by Nestle. Through this research, we establish that the most effective promotional medium is Buy 1 Get 1 under sales promotion that helps consumers save more money. We have applied the implication idea to Nestle that can satisfy the customers’ needs and achieve sales target.


INTRODUCTION
Nestle is a multinational company and now has become the largest food and beverage company in the world. Nestle has more than 2000 brands that present in 196 countries around the world (Reza, 2020(Reza, , P.1145. The founder of Nestle is Heinrich Nestle and introduced in Vevey, Switzerland in the year of 1866. In 1912, Nestle went into the Malaysian market, whose headquarters are in Mutiara Damansara, Petaling Jaya, Selangor. Nestle has had some expertise in the food and drink industry and has some notable brands in Malaysia which are Nescafe, Maggi, Milo, and Kit Kat. All of these products have been categorized as Halal products to fulfill the Malaysian market.
Nestle Milo, the milk beverage with chocolate and malt has remained popular among young and elderly people. This is because the price of Milo is relatively cheaper than the other chocolate beverage. Besides its delicious taste, Milo also contains a lot of nutrient needed by body.
Nestle Nescafe has become one of the famous espresso brands in the world, and it is accessible in numerous assortments to suit all preferences of individuals. A lot of people like Nestle Nescafe product due to the varieties of flavor. Besides, Nestle Nescafe has a good aroma which make people to love it. The price of this product is also suitable and can be afforded by all classes in Malaysia.
Nestle Maggi is a worldwide seasonings brand, instant soups, and noodles. Maggi has become a product which makes good-tasting and nutritious food for busy people. Nowadays, a lot of people use Nestle Maggi in their cooking to make it delicious. Maggie instant noodle also popular among people due to the delicious taste and easy making process. Along these lines, The Malaysian like all Nestle products due to the quality and assortment. Nestle has become the product needed by all people to meet their daily needs. This is inseparable form Nestle promotion strategy which becomes an important factor in attracting public interest.

Market Opportunity Analysis
Nestle is a large food and beverage company, their early product is milk-based baby food. Nestle production emphasize on healthy and Nestle emphasizes producing a healthy and good product. However, the company has decided to produce other products such as coffee, frozen food, and chocolates. Nestle has intent to increase the product lines to satisfy their customers. Since the product lines have been increased, Nestle expands the customers target to maximize the revenue of the company. Nestle's marketing segmentation is based on demographics such as income, age, gender, and education. The breadwinner is always the target of Nestle because most of the product is for family. The price of Nestle's products is a common, therefore the customers target is people with mid-point salary because they have the basic purchasing power. Based on age demographic, Nestle's target is all age customers, because of large line products, started from milk-based baby food, cookies, and cereal.
Nestle also launches its products in tropical throughout the year such as Malaysia, Thailand, Singapore and the products Nescafe focus on are ice cream. They intended to lower the calories and fats on ice cream and to help customers to control their blood pressure, but still retaining the good taste of ice cream. They serve delicious and nutrientrich products (Green,2006) This market segmentation is based on geography to provide the products that satisfy their needs. On the other hand, Nestle intended to launch its products inside the universities because they realize university students are always finding a cheaper item to save their own cost. Thus, Nestle decides to cooperate with convenience stores in the university to launch its products at lower prices to students. The purpose of Nestlé is to be a trusted leader and commits to providing "Good Food, Good Life" (Nestlé SA, 2018) Furthermore, Nestle uses differentiated markets to increase its product lines to fulfil customers' demands. The market segmentation is based on climates, occupation, and age to provide different products for maximizing revenue and improving the loyalty of customers. For example, Nestle produces Coco Crunch as a breakfast for children and teenagers. In addition, Nescafe Ice has been launched in tropical countries. Nescafe 3 in 1 is suitable for workers because it has an easy making process and no timeconsuming. Nestle constantly develops new products and enhances existing products with creativity and innovation to meet the ever-changing customers (Bell, D. E, & Shelman, M, 2008). Nestle maintains customers' loyalty with good service and quality products, they use a promotion strategy, offering low price to customers, but with good products quality.
We have learned that market segmentation is very important for a company to expand its business. Market segmentation is crucial because it can lead Nestle to capture and creates opportunities for market strategies to meet specific customer needs. Nestle has a large product line to satisfy customer needs and requirements (Fonseca, 2011). Nestle becomes creative and innovative company to produce many types of products. They seize the opportunity and create a particular product for specific market segmentation. This is the most an effective way to maximize revenue.

Political Environment
The position of political environment in global business has led to significant progress. The impact of political factors on global trade has grown rapidly more than ever. (Pratap, A., 2019). Economic relation among countries, the level of administrative and regulatory oversight greatly effects companies which intend to reach global market, because every economy of every nation is directly related to the democratic structure (Dhanesh and Sriramesh, 2018, P.204).
Even so, as a global competitor, the same organizations are opened to ruling parties from various parts of the world. They seem to be aware of the policies and regulation of various countries which have fully-operational system. America still ranks as the country with the largest industry in the world, but Nestle has its own rank in Asian countries.
Unstable political and economic conditions in a country, greatly effects the running of business, thus, Government consistency is really needed in an increasingly competitive industrial world. Democratic unrest could interfere industry and have an adverse consequence for manufacturing process. In addition, the climate in also effect manufacturing process.
Every switch in work system may have a major impact on business. Companies will be vulnerable to impacts caused by climate laws and amendments. Only a few countries are affected by functional migration to the region. Losing Nestlé means risking more than 300 positions, affecting the problematic British democratic system. Not all businesses could affect project consistently, but Nestlé is capable. Now day, Nestlé must comply with changes to dietary requirements and legislation and every other country has a different set of rules.
There are many food companies are associated with the price increases of materials. Therefore, most start to lessen the quantity of goods the organization produces. It is a particular foods problem. Customers continue to buy chocolate products for, even it is in higher price, not realizing that advertisers are reducing the amount of goods they get. (Frue, K., 2020). In fact, the modern food industry is being largely inspired by both the government and the judicial system. It is not the only politics in one nation to be operated in another one.

Economic Environment
Democratic economy, socialism, mixed monetary order and the Islamic economic system are several systems practiced in looking at the economic paradigm in a region. Every arrangement applied may have different connotations in terms of corporate ownership, rights to properties, business management, employee privileges, remuneration and workers' compensation. In the competitive world, there are many market mechanisms, including competition from conglomerates, competition from oligarchies, competition from monopolies and domestic strategy. Competition will indirectly help business associations improve the collective efficiency and productivity which should be centralized. (Kabii, 2018) Socio-culture is a combination of various values, ideologies, beliefs, patterns of behavior, ideas and attitudes found in collectively way. Consideration has been given to both material and non-material aspects, including the company run must get an aspiration from community, and if the business is unable to meet the needs of the community, it will not strive for profitability. Financial constraint becomes an essential way in evaluating the effectiveness of Nestle company, because their target market is upper class and middle-class community who have enough money to consume their products. In fact, the level of income has a major factor in determining the price of a commodity, which will play a role in determining the income, profit and product competitiveness. Price fluctuation and economic condition such as inflation also have a big impact on companies' profitability. In addition, recognizing and calculating the massive scale of production when structuring and managing are also the factors which cannot be ignored. The recent financial damage has severely disrupted prospects for global markets, largely due to the worldwide contraction and recession. This significantly affects inflationary pressure through determinants of consumer spending. However, rehabilitation has been accelerated, progress and prolonged centralization with different characteristics of global market have further reinforced the need for growth and development.
The growth in market economies provides either surplus economic output and productivity improvements that offer additional potential advantages. By investing unparalleled resource capacity and R&D efficiency by simultaneous product launch and redesign, Nestlé can enhance its comparative benefit. Through concentrating operations in worldwide, Nestle is successful in countering the influence of volatility in the foreign investment market on the export trade market.

Social Environment
The social environment is the relationship between society and entrepreneurs in which entrepreneurs should be responsible for the society where their company work (Sharma and Kiran, 2012, P.95). In business, the appraisal of social condition is inseparable from community, because community who utilizes items and administrations made by business association has the affectability. People in Malaysia have a priority in term of race and theology. Business companies need to respect ethical values among community, for example, food produced for Muslim community must have the label 'Halal' from Department of Islamic Development Malaysia (JAKIM). The awareness of variations, the desire of learning, recognize and understand the differences and similarities of moral values practiced by society will facilitate business companies to develop their business. As a manufacturer of finished products, Nestlé is very dependent on customers' loyalty. Thus, the corporate decides to take a position pointedly in its key areas to protect the brand name and improve item allure.
There is a rising development towards better and healthful eating, that is expanding the commercial center for sustaining food things, it can be loaded down with the possibility to affect product offerings love chocolate drinks. The association has made solid strides, for example, the securing of specific new companies and dynamic collisions, to fulfil the needs of more beneficial clients thus to require a bit of leeway of ongoing business patterns and openings.
Nestle should be quick to require a note of the different patterns and their outcome on execution and will improve capability that may allow faster reaction and flexibility to plug changes. With a sound cash asset base, it is reasonable for the corporate to chase consolidations and acquisitions, that it is done viably, exploiting its experience during this respect. During along these lines, it can quicken its expectation to absorb information and ensure the accomplishment of activities, especially knowledge of the very certainty that the business envelops an enormous exhibit of brands and an elegant in activity lattice that is in themselves a significant test to oversee effectively.
Throughout the pandemic, Nestle has worked quite closely with the authorities and business partners to safeguard the health of all workers, whereas maintaining business continuity to fulfil the national obligations as a manufacturer of necessary foods and beverages. Nestle is committed to do its part within the national response to the present pandemic and can still help several Malaysians resolve their difficulties in these difficult times. Nestle will keep on adding to the country's recuperation exertion through in advancement operational exercises, the normal ventures and the relentless obligation to helping the country.

Technology Environment
The advancement of innovation, especially the wise area of information can immediately affect business associations. For instance, the activities of business associations comparing to creation measures with the use of innovative and complex machines will downsize human mistake and lower creation costs. Business exercises, for example, the procurement and offer of items and administrations through electronic trade or "internet business" can decrease costs and time (Hassan H.N., 2010) Technologies are a very crucial part of R&D in Nestle. Nestlé spent almost 4.4 times on R&D over Kraft Foods during 2009 (Traitler, Heribert and I.Sam, 2011, P.62). For example, Nestle has developed technologies which enable for natural vegetable oils to be utilized in Maggi broth and seasonings rather than partly hydrogenated fats. With development of technology, Nestle will turn out healthier merchandise across the products and therefore improve health and quality of life within the region.
Nestlé is pleased with the sustainability efforts of the organization. The company's sustainability efforts have helped to minimize waste, reduce the use of packaging materials and create the surroundings cleaner. Since 1991, the corporate has saved five hundred million weight unit of packaging material by redesigning a packaging. Nestlé uses recycled materials and prefers materials from property sources if it is possible. In 2016, one hundred and five of Nestlé 's factories had achieved minimal waste in production, one amongst the most effective leads to the industry. A few of the company's competitors might match the sustainability efforts of the company, leading a lower value of production, the healthier surroundings and happier communities (Jureviciya O., 2017) External influences in technologies would affect on business operations. Changes in technology affect the approach of the organization. Businesses may need to modify their operative strategy considerably as a result of changes within the technological environment. Nestle is one of the world's leading food and drinks business (Lim, S, 2014) A large range of various technologies has additionally been developed. Combustion and antioxidants, emulsion, complex carbs, fluid reinforcement development, grain extract, for example, plus mechanisms including segment injecting.
Meanwhile, the event of technology has had a positive impact on business organizations, it's quite easy to say that it has negative or some effect such as an increased traffic jam, air and water pollution as a result of industrial disposal, interaction with machines compared to humans and more, it ought to be a concern to embrace a respective profession. The drawbacks nor effects through futuristic and modern technology regarding victimization was listed. The side effects and the use of the latest common and emerging technology will be diminished at almost the same rate.
Within the quality assurance, the organization needs to create problems including its inability to ensure an excellent result in dairy products which threaten the professional image and also have an impact on prices. Throughout this respect, the company's solution was tremendously reasonable to allow it to overcome this obstacle with success. It seeks to determine the validity of the on-top including its assurance policy, to preserve loyalty in its product.
In addition to the economic changes, changes in society including lifestyle modifications, hobbies, freshly styles, and travel vacations are generally in rage on the nation. Food choices are rapidly changing constantly. Chocolates which were considered to become the tastes of youngsters are also being consumed by adolescents, teenagers and young adults.

RESEARCH METHOD
There are three types of case study research that can be used, they are descriptive, explanatory and exploratory (Yin, 1984, as cited in Noor, 2008. This research aims to describe and identify the most effective promotional tool that Nestle has in their marketing plan. The qualitative method is used in this research to describe and analyze the outcome. The qualitative method is the most suitable approach as this research involves more on the description task rather than the measurement task. The qualitative method is focusing on the process and meaning which are not really examinable and measurable (Denzin and Lincoln, 1994, p.3-5). Marriam (1988) suggested that qualitative is mostly interested in discovery, insight and interpretation compared to hypothesis testing.
A questionnaire in the type of google form was designed by researchers in this research to identify which was the most effective promotional tool used by Nestle in promoting their products to markets. The questionnaire consists of two parts which the first part is about the demographic while the second part is to identify which the most effective promotional tools. The questionnaire is employed with a 3-point scale where the respondents need to indicate 1 which is represented by strongly disagree, 2 which is represented by neutral and 3 which is represented by strongly agree, the degree of their disagreement or agreement with the statements on the questionnaire. There are 50 set questionnaires distributed to our respondents.
The data collected through questionnaires is analyzed descriptively. In this research, Likert scale used to create the questionnaire where the degree of agreement 1,2,3 (strongly disagree, neutral and strongly agree respectively). Microsoft Office Excel Worksheet and Microsoft Office Word are used to present and analyze the data and result collected in the form of tables.

RESULTS AND DISCUSSION
Nestle is a well-known as global brand, reaching the revenue target by improving the lives of people by providing tastier and healthier food and beverage preferences at all stages of life. However, even though the Nestle product is newly released in the market, no one will recognize it without a promotional tool. Based on this research, we determine that Nestle has used promotional tools such as personal selling, advertising, sales promotion, and public relation. In order to identify the most effective promotional tools used by Nestle, our group has generated some questions to collect all the data from the 100 respondents. The data below is the outcome of the survey. Based on the survey result, most of our respondents were female which is 65%. The majority of our respondents (46%) were between 21-30 years old and 45% were respondents below the age of 20. Most of our respondents are between generation Y and generation Z because this generation has more exposure to electronic devices than the older generation. Generation Y is born in the technology world and always follows with technology daily development (Berkup, 2014, p.221). Levickaite (2010) stated that Generation Z is also called as Digital Generation Based on the survey result, it shows that all respondents who are involved in this questionnaire have previously heard about Nestle and bought their product. Since Nestle is a popular brand and its product lines are wide, thus everyone is familiar with the product of Nestle. Six categories of products by Nestle that had been displayed in the market had been listed out in the questionnaire. A product that gets the highest agreement from the respondents was Milo which is 19% compared to other products. This is because Nestle has advertised Milo as a sports drink for children and teenagers. The majority of the children love to take Milo as their breakfast meal before going to school because Milo provides energy to them. Everyone has been familiar with Milo since they were kids.
There are five types of promotional channels used by Nestle. The majority of the respondents (34%) agree that social media is the platform that they more often saw the advertisement. This is because most of the respondents spent a lot of time on social media such as Facebook and Instagram. so it is easy to reach the target consumer if Nestle advertised on social media. As many as 27% respondents chose mass communication channels. It is the second-highest of the agreement because many students and workers use their own transport to reach their destination, and the radio is must-install equipment, so they have many chances to hear about Nestle's product.
Nestle used seven types of promotional methods. According to the survey, we notice that the most favorite method chosen by the respondents is Buy 1 Get 1 which was 21%, everyone loves to get free items because it helps the consumer save more cost and get items for free. The second highest favorite method chosen by the respondents were Free Samples (18%) and Extra Value Offer (18%). Without a free sample, it is difficult to boost Nestle's sales. People might not be confident to try new products without giving a free sample. Free samples can grab the attention of shoppers. In addition, Extra Value Offers usually occur on special seasons such as feast day or weekends and the offer is to encourage more shoppers to choose Nestle products compared to others.
Four options were provided in the question of "How do they buy their Nestle's products?" The majority of respondents (37%) buy Nestle's products in supermarkets or hypermarkets. This is because it is the easiest and fastest way for consumers to grab Nestle products. Next, 30% of respondents buy their Nestle's products from grocery stores.

Idea Implication
Social media is one of the leading promotional channels which cause Nestle to be successful. Without an effective promotional channel, Nestle might not achieve its profit goal. Although effective promotional channels need much more expenses, it will bring back a positive result, it can always increase the company's sales and profit. Through this, the dividend for the shareholders will also increase as the profit of the company increases. Besides, this can also attract more investors to invest in the company with a good return. Besides, email marketing is also done by Nestle, but the result is not efficient. Most respondents argued that no email is received from Nestle about the promotion, and many of them are not checking email every day. Thus, Nestle should stop using this promotional channel as it is not effective. Nestle should invest more time and capital in social media promotional channels to attract more buyers.
Buy 1 Get 1 is also the leading promotional method that caused Nestle to be successful. Although Nestle needs to add more expenses in giving the gift, overall, the sales profit will increase. So, it is also a good promotional method that can be used by Nestle to increase sales. Besides, customers also like free samples and extra value offers. Even though it has the risk to increase the expenses of the company, overall, it will also increase the profit of the company.

CONCLUSIONS
Nestlé takes great steps to achieve its goal of becoming a leader in the Nutrition, Wellness and Fitness business by providing higher performing goods to customers. Nestlé often evaluates the needs of the consumer through start to end and also supports customers as much as they can. Their expertise, just like significant economic ability, strong strategic communication skills, good research and development and true communication has assisted everyone clear some challenges. For all of this, the organization focuses on its own goals and preserves stability when making sensible steps that work while developing the market to produce the "Fresh Food, Healthy Life" promise around the world. Second, newspapers, social media, mass media, billboards and e-mail are five forms of advertising platforms used by Nestle. Social media is the platform where a lot of users have always seen ads and the strongest publicity tool because a lot of people have invested their time using social media. Then, emails were the only promotional strategy in which some participants thought they were much more confused than any of those endorsed, and some participants are just not really sure whether Nestlé used emails to market their products. That's also since not everyone opens their emails each day and realizes whether or not Nestle has used emails mostly as a marketing plan.
Thirdly, Nestle has been using selling, advertising through mass media, advertising through social media, free sample, extra value offer, Buy 1 Get 1, Buy and Win contests as promotion methods. Similar media offers which are already required to complement direct marketing includes marketing strategy. The most popular promotion method is Buy 1 Get 1. Followed by Free Samples and Extra Value Offer. Personal selling is the least vote promotion method compared with the others.
Things are evolving very fast for marketers in today's business world. Increases in technologies and the popularity of social media have had a huge effect on the way businesses can be sold. Marketers can find it difficult to keep up with their digital marketing campaign at times because of how quickly things are going in this area.
The partnership built with in-market teams is a crucial element that makes global marketing work. An open medium of contact is essential to building trust and fostering these relationships. Daily (video) calls are a perfect way to keep staff up-to-date on the latest business initiatives and improvements, to hear about the latest strategic trends in the sector, or to explore new marketing ideas. Time-zones are going to make this a challenge, but it does succeed, and it will pay off. Creating team synergy would go a long way towards driving mutual success.
In addition, Nestle should start to understand the power of affiliate marketing. Affiliating will provide a huge boost to progress. However, it is not quite straightforward to approach the right partners. The company needs to have a successful conversion if they expect a wider affiliate to take it seriously. The minefield affiliate can be tricky. It takes persistence, and it takes real grit to get it through. Creating an affiliation network and continuing to reach out to prospective affiliates will assist the company.
The part of any effective transaction is an email showcasing succession. There are programmed notices that will be conveyed to shoppers after they have bought into the rundown. Utilizing the email arrangement to set up a companionship with endorsers. It would make you appreciate what your audience listening to, makes you a better communicator and capable to sell products to the consumers.
In addition, one of the main advantages of competing internationally with a local presence is the ability offered to gain a better understanding of the industries in which the business works and their potential. It helps to plan and optimize all efforts and expenditures efficiently, more importantly, you have as many territories to test and learn from. Nestle can collect input and ideas from a variety of markets for each initiative or operation that can be run. This is an invaluable perspective that Nestle can harness by creating a repository of practices and insights which can help fuel long-term progress.