CRM Project
CRM Project
CRM Project
Subject:
CRM
Participant’s Name:
Discipline:
BBA-8
Submitted to:
Today’s marketplace isn’t the same as the one we’re used to, even though many of the basic
principles haven’t changed. Events in the external marketplace are forcing us to rethink what we
have to do internally in order to remain successful. This project starts by taking a look at some of
the internal and external factors that influence the way nestle do business in the 21 st century in
Yes, the environment in which we operate has changed. Both inside our companies and
externally in the marketplace, many of our old working assumptions just don’t look the same.
Nestlé is a powerhouse of consumer brands spanning across baby foods, bottled waters,
powdered drinks, cereals, coffee, drinks, pet-care, and more. The company made almost $92
billion in 2018, with high margins on its powdered and liquid beverages (coffee, cocoa, and malt
beverages and tea categories). While many people might not relate directly with Nestlé as
a brand, billions of people across the world relate to the brands it owns. You might be surprised
by the portfolio of brands that Nestlé has, spanning across baby foods to pet care.
Nestle e market place
At first, we thought that the Internet was going to break all the rules. But painful as it was, it
didn’t take long to learn that business basics still count. No matter how many sales are made or
how much traffic is generated, if a company cannot make money, it will not survive. In fact, no
matter how much value a company provides to customers, if its business plan isn’t sustainable, it
The impact
Our industry is transforming into one that is driven and shaped by data and technology. From
engaging the consumer through analytics to speeding up operations with artificial intelligence
(AI), we are accelerating our digital transformation to drive growth and agility.
In 2021 nestle e-commerce sales accounted for 14.3% of sales and grew by 15.1%. This strong
growth reflects our agility in adapting quickly to rapidly evolving consumer demands. We expect
to increase our investment in digital marketing by 50% and almost double the percentage of e-
commerce by 2025.
How does Nestlé Waters stay relevant with our customers for the next 100 years? By being their
companion and meeting them with one voice, with the beverages they need at the moments they
need them. When you become the valued companion to the customer, you naturally gain
Operational efficiency.
Resource and capital allocation with discipline and clear priorities, including through
We fuel our growth agenda through disciplined cost management, improving operational
efficiency at all levels of the business. In combination with sales growth, this approach enables
us to free up resources for reinvestment in product innovation, brand building, digitalization and
As the ‘Good Food, Good Life’ company, we enhance quality of life and contribute to a healthier
future. Winning with consumers is the source of our sustainable financial performance and our
way to earning trust and maintain our market leadership. Based on a compelling Nutrition,
Health and Wellness strategy, our company delivers sustainable value over the short term and the
long term.
That is how Nestlé highlights its strategy, by emphasizing how it moves around three key points
operating profit margin to between 17.5% and 18.5% (from 16.0% in 2016), and
Allocating our resources and capital with discipline and clear priorities, including through
In short, Nestlé focuses on generating demand for its current brands, while improving its
operational efficiency, and by allocating massive amounts of capital to buy and sell relevant
consumer brands, which help the company to keep its dominance in the consumer food and
beverage industry
Nestle is one of the global leading food and nutrition companies which was found by Henri. The
Company headquarter is located at Vevey, Switzerland with its strong network which has
Approximately 403 factories in 84 countries and with more than around 291,000 people
Worldwide. Products of nestle can be found almost in every country in global such as Asia,
America, Europe and Africa. The purpose of the Nestle improve quality of lifes which will help
To get a better land healthier world. The objective of Nestlé is to become the global leaders in
In 2019 Nestle has made an excellent progress, operating and financial results improved
Significantly. The organic growth stood at 3.5 per cent. Real internal growth for the full year has
Accelerated to 2,9 per cent, the highest amount in the past six years.[ CITATION Nes19 \l 1033 ]
Mark Schneider, Nestlé CEO, commented: The COVID-19 crisis continues to impact all our
Lives in powerful and sometimes tragic ways. At the moment Nestlé has a specific obligation.
Their food and beverage items help to keep people healthy, provide comfort and regeneration
Support. In the first quarter the business remained resilient, representing diversified product
Portfolio and strong local presence in 187 countries. This crisis, however, is far from over and
We are going to face several uncertainties in the coming quarters. It will keep adapting rapidly to
Rising customer needs and threats in our global supply chains. Company as a good citizen and
Trustworthy partner continues to give support, particularly to the most vulnerable in society.
Nestle provides customers free health-care services. A good thing about managers at Nestle is
That they have a way to maintain the customer relationship. The Nestlé Care Center is an
Important channel to welcome feedback in the dialog with consumers. Nestlé's protocol involves
Visits by field staff to customer homes and laboratory review of the goods involved when
Answering product concerns. Conforming to the 60/40 + concept, Nestle has achieved a great
Deal of success in bringing fair prices to consumers of conventional goods. In the eyes of
Consumers, Nestle is increasingly expressing its brand, creating a more favorable approach for
The customers .In Malaysia the CRM program in the small village was not expanded. The
Participating customers are mainly existing Nestle customers with social channels over the
Operational Excellence
Reasonable prices and delivered with minimal difficulty or discomfort. For example Nestle is a
Master of operational excellence. Customer intimacy, the second discipline of value, means
Precisely segmenting and targeting the markets and then tailoring the offers to exactly match
Those niche demands. Organizations that excel in customer intimacy combine deep customer
Knowledge with organizational versatility so they can easily adapt to almost any demand, from
Enormous customer loyalty. Nestle company is doing well in its market to acquire the exact
Product or information it wants from the customer. And product leadership, the third discipline,
Means providing cutting-edge products and services to consumers that constantly improve the
Use or use of the product by the consumer, thereby making the goods of rivals redundant. Nestle
Customer Intimacy
Although businesses seeking operational excellence are focused on making their operations lean
And effective, those seeking a customer intimacy strategy are constantly tailoring and shaping
Goods and services to suit an increasingly fine customer concept. That can be costly, but
Customer-intimate companies are trying to spend on building long-term consumer loyalty now.
Usually, they look at the lifetime value of the customer to the company, not the value of any
Single transaction. That's why workers in these Nestle can do almost anything with no regard for
Initial costs to make sure every customer gets exactly what they really want. Its management
Systems understand and leverage such concepts as value for the customer's life, and the rules and
Standards that management fosters among employees are consistent with the "have it your way"
Product Leadership
Companies following the third discipline, product leadership, aim to produce a continuous
Stream of state-of-the-art goods and services. To achieve the aim they must challenge themselves
In three ways. First, they'll need to be creative. Being creative means, above all, recognizing and
Embracing ideas which usually originate outside the company. Second, these creative companies
Need to be prompt to market their ideas. All of their business and management processes need to
Be engineered for speed to do so. Third and most important, product leaders must unceasingly
Pursue new solutions to the problems just solved by their own latest product or service.
Company that maintains value leadership within their industries will be run by executives who
Not only understand the importance of focusing the business on its value discipline but are also
Relentlessly pushing forward the operating model of the organization. They will personally lead
The drive of the company to develop new capabilities and change the imbedded work habits,
Processes, and attitudes that prevent them from achieving excellence in their chosen discipline.
By leading the drive to reinvent their companies, these individuals must plan their businesses to
Set new industry standards, redefine what is possible, and change the dynamics of competition
For ever. In short, Nestle needs to strengthen the offer, creating CRM systems for other future
customers.
Foster various forms of contact. Built up the access to customers by a team of sales
Our portfolio is always evolving to meet consumer demands. Our long-term strategy is centered
around respect for the future. We shape our portfolio with products that are right for consumers
and set goals that contribute to a healthier environment. We focus our energy and resources
where unlocking the power of food can make the greatest positive impact on the lives of people
and pets, the environment, and our shareholders and other stakeholders. Products that are healthy
for consumers and the planet make for good business. That is why we take the following actions:
Apply our expertise in nutrition, health and wellness - developed over more than 150
years - to help people, families and pets live happier, healthier lives.
Meet the needs of the modern consumer with healthy, delicious, convenient products for
Offer more plant-based food and beverage options to be consumers' first choice as they
Produce affordable, safe and high-quality nutrition for everyone, regardless of their income level,
taking advantage of our long-standing presence around the world.Strive to package and deliver
our products in ways that are safe and protect the environment.Commit to ambitious
sustainability goals to advance the health of the planet, drive societal progress and support
sustainable, healthy food systems.Our long-term value creation model is based on the balanced
what they decide to buy and from whom. The Internet has significantly raised customer
expectations; at the same time, its emergence has created obstacles to meeting these
expectations. The threat of disruption in the supply of raw materials has forced international
corporations such as Nestle (NESN) to focus on ensuring future sources rather than paying lower
prices in the short-term. The growing use of social media forums like Facebook and Twitter, and
other Internet sites, has given Nestle an incentive to polish its image. Together, those factors
might push the world’s largest food maker to adopt a more enlightened self-interest.
The start of the 21st Century resulted in a strategic resolution for Nestle – to shift from a
successful, technology oriented food and beverage company to a more research oriented nutrition
and health group! This was a new strategic marketing objective for the firm.
Nestle asked themselves – What do we have to change if we need to deliver different types of
foods catering to various needs of the market. Nestle’s focus turned to addressing consumers
need for healthier and more nutritious foods, without compromising on the taste. This way
Nestle called in the R&D experts to meet this new challenge. Some of the initial R&D efforts
included assessing of nutritional levels of all products and keep improving them by deploying the
best minds; increase R&D spends ( in billions!!) To address specific consumer groups like
Infants and toddlers, consumers needing special diets, elders and athletes. In its endeavours,
Nestle set up science and technology centres of excellence where the R&D activity was being
forward to providing tangible solutions to what consumers want. Today’s consumer wants more
of the healthy, nutritious and the uncommon stuff! With the help of robust R&D Nestle identifies
these needs and by leveraging technology – look forward to addressing them! If consumers want
instant cappuccino- they get it (with adequate amounts of nitrogen to make that foamy drink –
this is where technology comes in). A classic example would be the want of healthier 2 minute
maggi noodles, which gave rise to the atta, multigrain variant or the normal variant this time with
25% less salt and 75% less fat but no change in the yummy taste! With compositions (thanks to
R&D and technology) closer to mother’s milk – Nestle’s Formula variant- Nan Pro does wonders
The total customer experience is what a customer feels as a result of all the interactions he has
Had with your company, combined with other experiences and information he has gained from
The external marketplace. It’s not something you do, but it is the result of many things you do,
Combined with other influences that come from outside our direct control. We can certainly
Impact the total customer experience (for better or for worse), and we should definitely measure
There are three major vectors that influence the customer’s total experience: the external
Marketplace, your company’s brand image, and all the different ways the company touches your
Customers. Total customer experience describes what the customer feels about the sum of her
Experiences with a company.
What’s happening in the market has a strong impact on setting customer expectations.
We’ve already discussed that the Internet (access, control, speed, globalization, and automation)
Has changed customer expectations dramatically. Other strong external influences come from
Analysts and the media—what is being said about our industry as a whole as well as our
company specifically.
What We Say
One of the most important influences on the total customer experience is what we tell him
He should expect from us. Our brand position, the image we establish in the marketplace, is a
key Element in setting expectations. Many think of a brand as simply a trademark, logo,
company or
Product name, or visual identity. Our purpose Unlocking the power of food to enhance quality of
At Nestlé Pakistan, the global ideology of Nutrition, Health and Wellness is inspired by the
scientific breakthrough of our founder, Henri Nestlé and ever since it runs in our DNA. Guided
by our values and with nutrition at our core, we unlock the power of food to enhance quality of
life for everyone, today and for generations to come. We are the leading Food & Beverages
Company in Pakistan, reaching out to the remotest areas, offering products and services for all
Nestlé Pakistan is Public Interest Company (PIC) and headquartered in Lahore, with four
production facilities across the country. Factories in Sheikhupura and Kabirwala are multi-
product, whereas the ones in Islamabad and Karachi are water factories.
What We Do
The one area we can change on nearly a daily basis (of course, the Internet guys think Daily is
too slow), one that has a huge impact on the customer’s total experience, is comprised of All the
things our company does that directly touches the customer. These touches can be with Any of
the parts of the organization shown in Figure 2-8, and can occur through experiences withOur
products, interactions with our sales and service people, our channel partners, or our webSite.We
are the leading Food & Beverages Company in Pakistan, reaching out to the remotest areas,
offering products and services for all stages of life, every moment of the day.
WHAT IS CRM
Defining CRM
Creating a definition for CRM is both critical and dangerous. It is critical because your
Organization needs to have a common understanding of what you are doing. It is dangerous
Because so many definitions and misconceptions are already lodged in people’s minds. One of
The first things that any company should do when launching a CRM initiative is to test what the
Organization’s current understanding of CRM is.
Customer Relations Marketing means deepening the relationship with consumers, which
involves extra effort in talking to and listening to them regularly. Getting Feedback The Nestlé
Care Center is an important channel in the dialogue with consumers to welcome feedback. In
consumers’ homes, and laboratory analysis of the products concerned . Nestle Embraces Loyalty
Scheme to Reach Buyers Nestle Food Services and Young's Bluecrest have adopted a CRM
programmer designed to help them get closer to customers in the catering trade. Foodservice
For Nestlé, e-commerce is a growing channel and represents a unique opportunity to directly
engage the end consumer. However, however without an in-depth understanding of the
mechanisms and of the challenges of e-commerce how is it possible to better work with its
distribution partners?
Olivier Gosset, Head of e-commerce sales at Nestlé Suisse explains: “To engage with our e-
commerce partners, we need to understand how marketing automation and digital marketing
consumer (D2C) and e-retail approaches and launched Nestle-shop.ch late 2011. The online store
carries 35 major brands from the Nestlé portfolio across 5 categories (including kitkat, Cailler,
With all the changes brought about by the Internet, isn’t it just too much trouble to deal With?
The Internet gives customers more control and takes control away from us, so why should We
bother? Of course, ignoring the Internet is not really an option for most companies for these
Reasons:
1. Customers want and expect the benefits that the Internet gives them. They get more
Information and more control, and they like that. If your competitors are using it, so
Should you—to maintain parity if nothing else. After all, in this book we’re talking
About making business decisions based on positive impact on the customer and becoming more
customer-centric.
2. The Internet is an extremely cost effective medium for delivering customer interactions.
Employees are almost always the most expensive element of most companies’
Front office activities. Automating elements of sales, order-taking, and customer service And
support make great economic sense. Don’t forget that even though we want to Make decisions
considering the customers’ viewpoint, CRM is not about being so Focused on the customer that
we no longer make money! In other words, decisions Should be made considering mutual values:
the benefits the customer gets from the relationship and the profits that the vendor gets.
The Internet is a fact of life
Nestle will push sales of its products to consumers directly via its own online channels, or direct
To consumer, Nestle CEO Mark Schneider said, building on the success of Nespresso coffee
pods and Purina petcare, which are increasingly being sold directly to consumers via
"We plan to take (e-commerce) sales from about 13% in 2020 to 25% by 2025," Bernard
Meunier, head of Nestle's strategic business units and marketing and sales, said at a virtual
investor summit
System (CIS) or Database Marketing with a single function solution designed tosupport a
specific set of employees. It was pioneered by Robert and Kate Kestnbaum usingstatistical
modelling. In 1986, it tapped into the market as Contact Management Software andgiven scope
to contact management, sales force automation (SFA) and customer contactcentre (CCC) and
then later termed as Customer Relationship Management and also mobilecustomer Relationship
Management (M-CRM).Till 2000, CRM era is called as Traditional CRM and after 2000 it has
been now emerged associal CRM. However, traditional CRM was focussing much on collecting,
company and thecustomer.Social CRM adds a layer of information into traditional CRM by
NESTLE
, Good Food Good lifenestle is the world largest food beverage company which has morethan
2000 brands all over the global. The company is presented in About 191 countries in the world.
On the other hand the company’s alk Products are in different stages in their life cycle. Its many
products arein Introduction, Growth and in maturity level as well as some of itsproducts has been
Decline.
Introduction;
The Company has introduced many products inmarket although the company has lunched many
products in themarket soon like. Nestle chilled coffee, Nesvita, Nestle Milo cereals,Nestle
Growth;
The growth level products are many as well some of themare. Nestle cocco, Crush cereals,
The company has a huge amount of its products inmaturity level are Nestle Pure life, Nestle
Nido, Nestle Everyday, nestlefruita vitals, Nestle Noodles, Cerelac, Corn flakes, Nescafe,
Decline;
Where the company has a great status in the market also hasmany products which came into the
From growth and maturity level too. Like Nestle Ombrella, Nestlebiotherm, yogurt and etc
Many companies have cultures that don’t support CRM. Entrepreneurial-style companies usually
cultures virtually ignore customers and make decisions based on what they have bought
Instead of who they are. There is the possibility of establishing a customer relationship
management system (CRM) in Nestle Company. The current culture of the organization supports
deploying CRM system in Nestle. The current strategy of the organization of the organization
There are several tools that will help you to set realistic expectations. You need a vision of
Where you want to be--objective means for setting priorities about which steps along the path to
According to Nestle
Our portfolio is always evolving to meet consumer demands. Our long-term strategy is centered
around respect for the future. We shape our portfolio with products that are right for consumers
and set goals that contribute to a healthier environment. Our long-term value creation model is
based on the balanced pursuit of top- and bottom-line growth as well as improved capital
Operational efficiency.
Resource and capital allocation with discipline and clear priorities, including through
COMMUNICATIONS
The second weapon we have for managing expectations is communication, and I don’t just Mean
putting together a summary of your strategic plan and e-mailing it to everyone in the company.
CRM impacts so much of the organization that it is essential to get this initial information
Out, but that’s only the beginning.In Nestle Our Corporate Communications team plays an
important role as a driving force at the heart of Nestlé. It works in close cooperation with other
functions and departments to bring the outside view in, to constructively challenge and help
The communications team helps us achieve our business objectives by developing and executing
proactive external and internal communications and engagement programmes. They provide
counsel, strategy and planning, and ensure that consistent and credible communications are
delivered to key internal and external audiences by strong communication professionals across
the company.
Our activities target a broad range of audiences including media, ngos, international
organisations, key opinion leaders, employees, consumers and the wider public.
Here are some of the areas you could deepen your communication expertise – either locally or
internationally.
Media Relations: acting as the voice of the company to the outside; responsible for
Corporate Content & Digital: managing the corporate websites and social media
channels, reaching millions of consumers, online influencers, and stakeholders every day.
in external industry and trade organizations in the view to strengthen our position and
influence on the current and future industry agenda. Promote and contribute to the
consumer and shopper value in all markets. You'll need to have a strong interest in
Traditionally, the Marketing Department has been responsible for communications and
Branding. Brand management makes a promise to customers, and customer satisfaction and
brand Equity measure how well the company meets its promise. Marketing has long been
concerned with Influencing and measuring customer awareness and satisfaction, and Marketing
is the organization That should lead (but not own) your CRM program. As we discussed earlier,
when everyone is Responsible for a program, no one is really accountable. CRM needs a
champion.Enhancing quality of life, contributing to a healthier future, and building great brands
are at the heart of everything we do at Nestlé. With more than 2,000 brands, ranging from global
icons such as Nescafé, kitkat, and Maggi to local and regional favourites, the strength of our
brand portfolio and breadth of brand activities makes Marketing at Nestlé a rewarding, exciting,
function apart in the industry – from both a commercial and career point of view. The Marketing
role encompasses all aspects of brand management with direct or indirect responsibility for brand
communication, innovation, product and packaging design, and consumer insight. Our focus on
building attractive and rewarding brand experiences for our consumers’ means we not only work
closely together within the Marketing function but collaboratively with other groups such as
Sales and ebusiness, R&D, Technical Applications, and agency partners among others.
To succeed as a member of our team you will need to share our commitment towards enhancing
quality of life and contributing to a healthier future for individuals and families, our communities
and the planet. Excellent communication and analytical skills are key, as is the ability to
There is a wealth of opportunity at Nestlé for those seeking to build an exciting, long term career
in Marketing.
What do you think the role of Sales is in CRM? It’s selling, of course. Selling is and
Always will be the primary role of a sales rep. And yes, sales interactions are critical to building
Positive customer relationships. And yes again, many salespeople understand the importance of
The overall customer experience in generating more sales. However, the primary reward for
people in this organization is based on the amount they sell, so that selling will always be the
primary focus.
The new role for Sales in CRM is still about selling. Miracle on 34th Street notwithstanding, we
don’t expect a salesperson to send customers away to the competition.We sell over a billion of
products every day, generating CHF 89.5 billion sales in 191 countries across the world in 2016
Our Sales team drives that forward. We have a very varied brief. We handle category and
shopper management, customer relationships, route to market strategies, field sales activities and
our customer-facing supply chains. All of these areas are focused on delighting our consumers
and making sure our products are available wherever and whenever they want them.
Service organizations are often critical to delivering a customer solution instead of just Selling a
box. Providing services to customers may be the company’s total business, or service May be an
add-on to selling products. In many small service organizations, sales and service are One and
the same.
At Nestlé, we live our company purpose day in and day out, with our values rooted in respect.
The Nestlé Corporate Business Principles reflect our commitment to a strong ethical culture as a
non-negotiable foundation of how we do business. And together with our partners, we create
shared value at a scale that makes a difference. Therefore, it is crucial for our Company to have a
robust reporting system that enables us to listen to anyone along our value chain about any non-
compliance concern.
other behaviors contrary to our Corporate Business Principles, Code of Business Conduct or our
values rooted in respect. We will do what is necessary to ensure our Company is managed in line
with our ethical commitments and you can help us achieve this goal.
Information Technology
We manage the biggest IT operations landscape in the FMCG industry and drive digital
transformation at scale. IT's work enables Nestlé to make a positive difference to the lives of
We're using machine learning and advanced analytics to transform how we use data, leverage e-
commerce opportunities to better serve our customers, and drive 'industry 4.0' opportunities in
We are working with all the corporate functions at Nestlé to deliver IT products and solutions
which are shaping our digital transformation.Creating Shared Value is the Fundamental way
Nestlé does business Across the entire value chain, and the Way we connect with society at
large.It begins with the understanding that For our business to prosper over the Long term, the
communities we serve Must also prosper. It entails businesses Creating competitive advantage,
which In turn will deliver better returns for Shareholders, through actions that Substantially
And sustainable business practices to Preserve the environment for future Generations.As a
company, we are best positioned To create shared value in three Areas: nutrition, water and rural
Development.
A key pillar in our Creating Shared Value Strategy is nutrition because food and Nutrition are the
basis of health and of Our business – it’s the reason why we Exist. Nestlé’s mission is to enhance
The quality of life of our consumers by Providing tastier and healthier food and Beverage