Analysis Of Nestle And Telstra: Marketing And Value Chain Strategies Essay.

Background of Nestle and Telstra

Question:

Discuss about the Comparison of Organizational Values and Structures.

Nestle serves to be the world’s largest food and beverage company that has more than 2000 brands, globally operating in about 191 countries (Nestle.com.au 2018). It strives to enhance quality of life of its customers with its products having high nutritive value.Telstra is the leading Australian telecommunications and media company providing a wide range of services such as voice, internet access, pay television and such others. The company chiefly serves Australia and some of its services are provided in other countries as well. With a brief insight into the structures and value chains of the companies differing in their marketing and products, the position of the businesses are analyzed accordingly in respect to the Australian market and the global market as well (Holweg and Helo 2014). The value chain designs of both the companies connote the important activities that the firms perform to deliver their respective products and services to retain their position in the market.

Nestle is a decentralized business that has been organized according to the matrix structure. This enables every portion of the company including the local units to enjoy high level of independence and work responsively. With its three layers of management, Nestle has been able to reach to all its customers, get greater competitive advantages through the effective value chain that it incorporates and thus, progress steadily.

Telstra is the largest provider of telecommunication and information services in Australia ranging to 17.6 million mobile services, 3.5 millionfixed retail broadband services and 5.1 million fixed retail voice services (Telstra.com.au 2018). Due to the rapid development of technology in telecommunications, massive improvements in the businesses have been done to improve customer services (Lovelock and Patterson 2015). Telstra shows a continuous development in its structure that focuses on customer needs and corporate strategies to get the recognition of an excellent company enabling people to connect and thrive in a connected world.

Nestle products are made with the priority of providing nutrition and ensuring health and wellness to the consumers. Along with this, the company offers beverage choices and tastier food to the consumers that have added to its value significantly (Hossain and Suchy 2013). It assures quality and high standards connoting to the healthy lifestyle of the people.

Telstra, on the other hand, promotes wellness by connecting people of the entire world to each other that serves to be the base of any developing economy.

Value chain analysis of Nestle and Telstra

The company is committed to reliable and responsible customers who serve as their customer base. This also provides the customers to have a significant influence on the company with their rights to informed choice to promote healthier food and diets (Day et al. 2013). Nestle also ensures privacy of consumers that adds to its effective business process.

Telstra also thrives to meet the demands of its customers and deliver exceptional experiences to them. It tries to incorporate innovative technology in a way that it satisfies the requisites of the customers largely. The company also has a 24 hours customer care service that caters to the problems that act as customer contact solution (Telstra.com.au 2018).

The United Nation’s Global Compact (UNGC) is also supported by Nestle that makes it more pronounced. All the suppliers, agents, distributors, and employees of the company forecast honesty and fairness in their respective roles that makes the company more committed to their customers.

Telstra also acknowledges human rights and all its actions are operational along the rights mentioned in the Universal Declaration of Human Rights and the ten principles of the United Nation Global Compact. The company does not tolerate child or forced labor and insists on a fair working environment. All the rights are incorporated in the company policy of Telstra that the employees and contractors are bound to follow.

The company has even strategized methods to promote agricultural improvements and production to raise the socio-economic standards of the farmers and ensure greater environmental sustainability with a target of zero wastage. However, the products of Nestle are not well sounded in the remote areas and are more concentrated in the cities.

Telstra, on the other hand, has committed to deliver leading telecommunication service to the rural and remote areas of the country. It has initiated such objective so that the development in communication helps the people of the rural areas to have greater access to education, health and businesses. The company is equally concerned with its environmental impact and reducing energy consumption and carbon emissions.

Research and Development (R&D) has been the chief competitive advantage for the company that has led Nestle to be the leader in food industry. It has the largest network of R&D that promotes innovation, providing high quality food and launching of new products quickly in the market. Collaborations and partnerships have also led to development of the company to a significant extent. The company is also trying to source raw materials in a responsible way helping suppliers to develop sustainable and ethical practices.

Marketing strategies of Nestle and Telstra

Telstra services have also gained popularity in all the 23 major cities globally (Telstra.com.au 2018). The company delivers technology and business consulting along with their professional services. It offers the best practice program and project management. The company strives to develop new services to the customers through their centers of Excellence that indicates its continuous progress and improvement.

The company has implemented the Nestle Supplier Code so that the suppliers prioritize business integrity, human rights, safety, health, and proper use of natural resources. The Nestlé’s sourcing policy has a compliance of about 96% of its suppliers, vendors and suppliers that has enriched its value chain (Nestle.com.au 2018).

Telstra provides its customers with a single contact number that not only address the issues of customers but also advertise their business. Through the inbound service, Telstra gets the data about who is calling, from where and for what reason. This enables optimization of customer interaction (Christopher 2016). The company also has the free inbound number for their international customers to communicate and solve any queries. Through the inbound service, Telstra has been able to sustain an intelligent network, handling 500 calls per second and accelerating nationwide reach of the company (Telstra.com.au 2018).

The population of the world knows Nestle for the brand value it has. The company covers almost all the food and beverage category, providing customers with tasty and healthy food. Along with the food for all the stages of life, Nestle has also the incorporation of special nutritional foods. The company has an efficient supply chain and distributors that help in its storing, transportation and distribution in all the parts (Patrizia and Gianluca 2013).

Telstra has a better outbound logistics efficiency that includes cloud infrastructure, machine-to-machine wireless solutions, helps in enterprise messaging, business applications, tracking and monitoring vehicles and other such facilities provides faster response and enables customer to stay connected (Hiremath, Sahu and Tiwari 2013).

The marketing team in Nestle is very efficient that focus on communications, brand management and consumer preferences and insights. It strives to provide a seamless service working with better collaboration with the Sales and Customer teams of the company (Rushton, Croucher and Baker 2014).  The company has been selling over a billion FMCG units everyday and generating massive sales across the world. The various nutritional research centers of the company operate to evaluate the nutritional value of the products with proper scientific methods. The external partnership that the Nestle Research Centers haveincludes universities, start-up companies, hospitals and other institutes that facilitate access to external scientific expertise.  This complements the internal research of Nestle leading to greater development and innovations in the company.

Research and Development of Nestle and Telstra

Telstra has been able to help more than one million vulnerable customers to stay connected. The company showed a total income of about $28.2b and a sustainable engagement score of 71% (Telstra.com.au 2018). Reports of 2017 shows that Telstra has acquired 5.4 million retail fixed voice services and 3.5 million retail fixed data services. it also has 17.5 million domestic retail mobile services (Telstra.com.au 2018). Its marketing has expanded to about 20 countries and the influence has been quite rapid indicating greater success of Telstra in the near future (Telstra.com.au 2018).

Nestle prioritizes the preferences and demands of the consumers and tries to serve them accordingly. It provides consumer healthcare products to emphasize production of greater nutrition values that would be equally healthy and tasty (Lin and Tseng 2016). Nestle also strives to provide convenient foods for people who fails to have cooked food. The company aims to use simple ingredients with greater emphasis on organic and natural foods and beverages. The products have affordable prices and include micronutrients such as iron, vitamin A and others to add value to the nutrition of children mainly (Sacks et al. 2015). The company also has target markets to accelerate its growth. It refocuses the businesses at the core, activates management departments and makes investments accordingly. The company also believes in regular updating of itself with modern technologies and innovation. It has been expanding its business by connecting to the newer generation through e-commerce and digital marketing platforms. Thus, Nestle has been collaborating with the various popular online retailers to promote greater sale and accelerate production and growth worldwide.

Telstra concentrates more on delivering brilliant customer experiences by providing the best services and help to its customers. It focuses more on customer priorities and growth in revenue (Achroll and Kotler 2014). Through simplification processes, Telstra promote network superiority and greater productivity. The company also strives to expand international infrastructures and build domestic adjacencies to invest in technologies in order to strengthen the core capabilities of the company. Driving cultural shifts through digitization investing in unparalleled network coverage and speed stands to be the competitive priorities of the company that world fetch it prosperity and greater success.

Nestle shares various insights focusing on global nutrition and develops superior partnerships with various major companies in the market. The operational policies of the company are to teach every customer the value of nutritional needs, encouraging them to be engaged with fitness activities as well (Slack 2015). Such activities directly influence the strategies of the business to generate greater value for its operations. All its operations abide by the environmental sustainability and are highly committed to maintenance of quality and safety processes (Ulaga and Loveland 2014). However, it is analyzed that nestle caters to the population of the cities with lesser emphasis on the rural areas. Marketing operations are significantly low in these areas that serve to be one major drawback for the company in the Australian market as well as the global scenario that the company needs to work upon.

Customer service and commitment to sustainability of Nestle and Telstra

Telstra has been opting for developing collaborations with contractors that would help them to be more pronounced (Aksoyet al. 2013). The company also aims to reduce costs through various improvements in the processes of the company that would lead to greater success and profitability as a whole. The opportunity of exploring new markets by Telstra would also fetch it wider scopes of attaining success (Brown and Bessant 2013).

Conclusion:

From the report, it can be concluded that both Nestle and Telstra, differing in their market products and services have been efficiently improvising methods to sustain their positions in the Australian market. Nestle has been able to occupy a stable position in almost all the markets of most of the countries in the world that dominates over the position that Telstra has achieved. Telstra has occupied the leading position in the market of Australia with few of its services provided in some of the countries. Thus, the company needs to incorporate strategies to occupy a good place in the global market. Nestle has been upgrading itself and promoting wellness and health of its customers with the incorporation of new technology. However, for Telstra, this has been both an advantage and a disadvantage that has been both progressive as well getting greater competitors in the telecommunication market.

References:

Achroll, R.S. and Kotler, P., 2014. The service-dominant logic for marketing. The service-dominant logic of marketing: Dialog, debate, and directions, 320.

Aksoy, L., Buoye, A., Aksoy, P., Larivière, B. and Keiningham, T.L., 2013. A cross-national investigation of the satisfaction and loyalty linkage for mobile telecommunications services across eight countries. Journal of Interactive Marketing, 27(1), pp.74-82.

Brown, S. and Bessant, J., 2013. Strategic operations management. Routledge.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Day, M., Fawcett, S.E., Fawcett, A.M. and Magnan, G.M., 2013. Trust and relational embeddedness: Exploring a paradox of trust pattern development in key supplier relationships. Industrial Marketing Management, 42(2), pp.152-165.

Hiremath, N.C., Sahu, S. and Tiwari, M.K., 2013. Multi objective outbound logistics network design for a manufacturing supply chain. Journal of Intelligent Manufacturing, 24(6), pp.1071-1084.

Holweg, M. and Helo, P., 2014. Defining value chain architectures: Linking strategic value creation to operational supply chain design. International Journal of Production Economics, 147, pp.230-238.

Hossain, M.M. and Suchy, N.J., 2013. Influence of customer satisfaction on loyalty: A study on mobile telecommunication industry. Journal of Social Sciences, 9(2), pp.73-80.

Nestle.com.au. 2018. Home. [online] Available at: https://www.nestle.com.au/ [Accessed 28 Mar. 2018].

Kruschwitz, N., 2013. Creating shared value at Nestle. MIT Sloan Management Review, 55(1), p.1.

Lin, Y.H. and Tseng, M.L., 2016. Assessing the competitive priorities within sustainable supply chain management under uncertainty. Journal of Cleaner Production, 112, pp.2133-2144.

Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.

Patrizia, G. and Gianluca, C., 2013. Stakeholder engagement between managerial action and communication. Annals of the University of Oradea, Economic Science Series, 22(2), pp.97-105.

Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M. and Swinburn, B., 2015. Comparison of food industry policies and commitments on marketing to children and product (re) formulation in Australia, New Zealand and Fiji. Critical Public Health, 25(3), pp.299-319.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.

Telstra.com.au. 2018. Telstra - mobile phones, prepaid phones, broadband, internet, home phones, business phones. [online] Available at: https://www.telstra.com.au/ [Accessed 28 Mar. 2018].

Ulaga, W. and Loveland, J.M., 2014. Transitioning from product to service-led growth in manufacturing firms: Emergent challenges in selecting and managing the industrial sales force. Industrial Marketing Management, 43(1), pp.113-125.