Assignment  Sample on 7002MFH Marketing plan for Nestle

Introduction

This report contains the proper justification of the marketing plans of Nestle’s business, the objectives, strategies, actions, and control. Those individually have a significant impact on the company’s business growth. Furthermore, the marketing trends, SWOT analysis, and customer analysis is explained under the context of the report. The SWOT strategy contains the relevant strength, weaknesses, opportunities, and threats of the organisation in upcoming times. The analysis is important to understand the market environment and the proper selection of the required strategy that applies to the situation. An organisation has to strengthen its business strategies, objectives, actions, and control for sustainable business growth. The role of technology and innovation in business actions is explained properly. That will help any organisation for the proper implication of the relevant strategies in its business activities. The required business aspects including the framework of marketing issues and business problems are explained in the following segments.

Context

Marketing Trends

The major global and climate changes throughout the world market and the challenges have a great role in the recent market trends of Nestle. The food company has experienced novel hassles with the recent market trends. The market trends are caused by the increasing global population and increasing rate of urbanisation.

Figure 1: Nestel Digital marketing campaign

(Source: Nestle, 2022)

This is worth mentioning that the covid19 pandemic situation has a great role in it, the pandemic situation causes a noticeable increase in the health and nutrition concession of people (Brooks et al. 2021). It is analysed that in the pandemic situation, healthy nutrition and functional food ingredients that help to boost immunity have populated all the people. Hence the customers are attracted by proper nutrition and health-conscious food options. The vision of Nestle to be a leading, competitive, nutrition, health and wellness company helps it to sustain popularity in the relevant market trends.

Business Environment Analysis (SWOT)

The SWOT analysis for any organisation, helps it to understand the relevant business aspects of its business. The SWOT analysis of Nestle will help it to point out its business threat and weakness including future opportunities and strengths. The analysis is conducted through an understanding of the market environment and the strategies of the company. The SWOT stands for strength, weakness, opportunity, and threats. That would make the company understand its required future business actions. Through the sw1, strategies, and market environment the SWOT matrix of Nestle is explained in the following.

PESTEL analysis

Nestle is committed to the principle that its operations should not harm the natural world, and the company makes every effort to achieve this objective. Consumer tastes, spending habits, and demographic shifts all contribute to the social environment, which in turn affects businesses. The public’s growing concern about what goes into their bodies has had a major effect on food and beverage producers like Nestlé.

STP analysis

Segmentation

Demographic

When it comes to segmenting its customer base, Nestlé considers a variety of factors, including age, gender, income, and level of education. Never do individuals of the same age and stature receive identical Nestlé products. Children have access to coffee and Milo, among other beverages. Due to their mass production in minute quantities, Nestlé’s money-saving products are within the price range of the average consumer. Similarly, Nestlé tailors its production to the occupations of the people who purchase its products.

Targeting

Differentiated marketing

Differentiation is a strategy that Nestlé employs to deliver specialised products to demographic subgroups defined by factors such as age, profession, seasonality, climate, and gender. Try Koko Krunch if you enjoy the taste of genuine chocolate, whereas Nescafe 3 in 1 is a superior choice for those who are pressed for time. If you wish to learn about alternative options, continue reading.

Positioning

Channel Differentiation

In order to make its products readily accessible to end users, Nestlé relies on properly trained sales associates and dependable delivery practices.

Customer Analysis

The customer analysis of an organisation is a potent way to understand customers’ needs. The customers give value to healthier and nutritionally food products in current times, including support diet and low consumption of sugar. Hence Nestle took initiative in producing products with proper health conditions and containing healthy nutrients and minerals. Furthermore, with analysis of low time requirements for making food for customers, Nestle launched products that need very little time to make ready. Nestle adopts different cultural aspects like language and religious beliefs for a proper customer behaviour understanding, which helps it to provide genuine service to the customers. This is required for any organisation to understand the needs of the customers by adopting the local culture and language in their retail (Kendall et al. 2019). It has a role to attract the local people. Hence, customer analysis has a role in the business growth of any organisation by gaining such popularity as Nestle.

Objectives

According to Nestle, its main objective is to provide present and future generation people with genuine quality food products that will make their life happy and enhance their quality of life (Nestle.com, 2022). This is an effective objective that will make a good impact on the food company among the people. The personal approach of an organisation contains its objectives and it has a role in the proper growth of an organisation throughout its business actions. Besides the food company, a good objective of an organisation has the role to motivate the employees to their best production. Furthermore, Nestle has taken many actions to fulfil its objectives in reality.

SMART Objective

Strategy

Ansoff matrix

An effective strategy and proper implication of the strategy in business actions are important for every organisation with various products. The successful implication of a strategy has a role in profitable outcomes throughout its business actions(Lestari et al. 2020). Hence worth, an effective strategy is required for an organisation to solve complicated issues and face a worse market environment. Nestle has improved its services and business growth through the implication of various strategies. Besides that, there are some changes that will help it for better growth in business and the strategies will help it to set up the problems from market environment changes.

 Market penetration

This strategy contains the ways by which an organisation can get access to more markets, which will help it in growing its business to the world market (Herrero et al. 2020). The market penetration strategies of Nestle were very effective, hence it has gained access to 189 countries for operating its business. Furthermore, an organisation has to maintain the different policies of the governments of different countries. An organisation has to do proper analysing before implicating the market penetration strategy in its business actions. Market penetration allows organisations to make the products accessible to more people and grow the brand recognisable to more people.

Table 1: Ansoff matrix

(Created by Author)

Product development

This is the primary step for any organisation to better customer service. Without the development of genuine quality products, it is very difficult for any organisation to keep customers satisfied(Chen et al. 2020). A range of satisfied customers is the essential way for an organisation for making a sustainable profit and business growth. The product development and customer services of Nestle are highly noticeable, hence it has gained such popularity and business profits throughout the world market. Nestle products have various objectives of preferences of different customers. Kitkat is an effective product for chocolate lovers and baby products have gained another level of popularity around the world.

Market development

This is the most required strategy for an organisation that has a role in improving the market-oriented aspects like transportation of products, development of products, and sales (Jafari-Sadeghi et al. 2021). Market development is important before the market penetration strategy. An organisation can only penetrate its market after it ensures its development in local markets. Nestle developed its market successfully, such that it can provide services to the customer properly through its effective sales and transportation. Market development is important for making a brand valuable for an organisation, in cases where people are unknown of the products and the company it will be a big challenge to penetrate new markets.

Diversification

An organisation has to diversify its production procedure and business actions from others. That ensures the organisation creates a unique style and brand value in the market(Palacios‐Rojas et al. 2021). Nestle has undertaken many innovative ideas and procedures for gaining a competitive advantage. Sustainability business is the primary way to diversify a business from others, such as Nestle’s investment in making its products’ packages 100% recyclable. This is an effective way for any organisation to make the business sustainable. This ensures an organisation for making a good image in the market and gains a competitive advantage.

Tactics

Proper and potent tactics are very important for any business procedure. It depends variously on different products and different uses of the products. The tactics help an organisation to make their business actions unique from others, which would help them in making a competitive advantage in the market. The tactics that Nestle has done in its business are explained through the following points.

Product

Food products have to contain a lot of variety for various choices of customers (Aguilera. 2019). Though Nestle is popular for its baby products, there is a huge variety of baby products. The products are based on different ages of babies. LACTOGEN1 is for babies with age less than 7 months, LACTOGEN3 is for babies with age 12 months, CERELAC is for babies with age less than 1 year, and NIDO is for children with age 2 years (Nestle.com, 2022). Furthermore, the nutrition product for hard-working people is NESCAFE CLASSIC, thus the variety of products enables Nestle to earn profits from the customers in different and effective ways.

Price

The price of products has a significant role in the creation of profits. It is analysed that a 1 % price hike can increase an organisation’s profit by up to 11% (Nestle.com, 2022). Hence, making proper piece analysation is very important for any organisation. Such as Nestle has to keep its product price in an analysing way. When launching a product in a new country’s market, Nestle charges higher prices in the beginning, but as time passes it starts lowering the price. That is a very effective method in pricing, that attracts people effectively to the low price products. This is a way of gaining a competitive advantage in new markets successfully.

Distribution

Proper distribution is very important for any business organisation. Without a proper distribution procedure, it is very difficult for any organisation to grow its business successfully in various markets (Suhartanto et al. 2019). Nestle operates its products in more than 189 countries, hence it can be stated that Nestle has an effective distribution strategy that ensures the distribution of food products to the markets safely and effectively. Furthermore, it is important to keep the product prices relevant to the customers despite the distribution charges. Nestle provides their products to the customers of each country’s market through its skilled market salesman and transportation.

Promotion 

The promotion procedure and actions of Nestle are very good. The promotion helps an organisation to grow its brand value and get to know more people about the brand (Kamble et al. 2019). Nestle has created a social media profile, thus it can connect with a wide range of customers around the world. Furthermore, with its social media profile, Nestle can announce new launches of products and advertise its products. The social media profiles on Facebook, Instagram, and Twitter, have a role in growing the identity of the food industry in the worldwide markets. The various portals are created by Nestle, which makes people know the nutritional information about its products.

Process

The process of production of Nestle products is well developed. It has a large number of employees in its workplace, which helps it to keep proper production procedures and effective business actions. This is important for any other organisation for sustaining growth and providing genuine services to the customers (Sudari et al. 2019). The hotline services of Nestle are available 24 hours in the worldwide market. That helps the food company to keep the customers loyal to it. Bad process and customer service is a high risk for any organisation, which can harm its initial business growth. Furthermore, Nestle has increased its advancement of technology and made innovative and sustainable business models.

Brand value

The brand value is based on the innovative logo and product designs of an organisation. It helps to make the brand known to people (Bashir. 2019). An organisation with strong brand value can make its products noticeable to most people with its unique product design and logo. Nestle has made its brand value strong in the world market through its quality products and unique style. The logo of an organisation has to be unique from its competitors and be recognisable by the customers. Thus Nestle has a very unique brand logo that is different from other food companies.

Actions

The GANTT chart illustrates that many schedules must be adhered to for the various marketing channels to be implemented. Some operations, such as the launch and distribution of freshly designed packaging, as well as the operation of conventional and digital forms of advertising, will be performed every day (Nestle.com, 2022). Information about Nestle’s goods and activities will be disseminated to the widest possible audience with the use of persistent Internet marketing. The majority of occupations employ a technique termed pulsing, with peak times happening around seasonal events and the start of marketing campaigns for new items, followed by periods of low activity in which only the continuous approach is used. The bulk of employment consists of pulsing work.

Figure 1: Gantt chart year 2023

(created by Author)

Control

To determine whether or not their monetary and non-monetary outcomes have met our objectives for the project in 2023, it will be necessary to use key performance indicators of major relevance. If things do not go according to plan, they must also be flexible and prepared to implement alternative tactics (Nestle.com, 2022). Thus, their use three distinct sets of key performance indicators, each with its own set of data and time frame:

Figure 5: KPIs for Nestel

(Source: created by Author)

Conclusion

Effective business strategies, marketing plans, strategies, required actions, and controls are explained in the report. Nestle has experienced sustained marketing growth throughout the world market by implementing relevant strategies and marketing plans in its business Actions. The strategy of Nestle’s business aspect contains market penetration, market development, product development, and diversification. These points are effective and applicable to any business organisation. The food products have the risk of lower hygiene and nutrient problems, and for that Nestle has to keep the product quality genuine and follow the tactics properly in its business actions. Hence, there is an effective role of strategies and marketing plans in gaining a genuine competitive advantage and growing its business successfully. Finally, it can be concluded that the explanation of the following business aspects like objectives, marketing plans, strategies, and control has a role to guide any other organisation, as the explanation is based on proper analysis and based on practical business problems.

References

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