Nestle - Good Food, Good Life - Business Plan Example

CSA Assessment Marketing Project Table of Content Introduction 3 Marketing Environment 3 Segmentation 3 Demographic Segmentation 4 Current Product Description 4 Current Target Market 4 Marketing Opportunity 5 Market Analysis 5 Sampling 6 Proposed Product 6 Proposed pricing 7 Proposed distribution process 7 Proposed promotion mix 7 Reference 9 Appendix 1 10 Introduction Nestle, world’s leading health, wellness and nutrition company was founded in the year 1866. The company is headquartered at Vevey, Switzerland. The company employs more 300,000 people and it has a global presence in almost every country. Nestle follows its mission which says “Good Food, Good Life” and accordingly provide best of nutritious food to the people around the world. The company’s sales for the fiscal year accounted to more than CHF 80 billion. The company has been operating in Middle East since 1930’s, but Nestle Middle East was founded in the year 1997 at Dubai which serves as a hub for Nestlé’s business in other Middle East countries. Marketing Environment The business environment for Nestle consists of macro and micro environment. The factors like economic, social, technological, demographic, international, natural and legal-political make the macro environment. Micro environment on the other hand comprises of suppliers, company, customers, intermediaries, public and competitors. Both macro and micro environment holds the key to success for Nestle. Nestlé’s marketing strategy is largely based on these macro and micro environmental factors. Regular monitoring of the environment is the demand of the time to stay ahead of the competitors (Jain 63). Segmentation Market segmentation is the tool used by organizations to segregate big markets into smaller ones in order to reach these markets with their services and products in a more effective manner by meeting the needs of the consumers (Kotler, & Armstrong 173). Product market for Nestle can be segmented into the following base: Demographic Segmentation Demographic segmentation is the variable which can help Nestle to segment its core product market of UAE based on the age factor for its new product launch (Botha, Strydom, & Brink 66). The company can target the kids for its product to attain larger market share and a competitive edge over other players. Current Product Description The new product to be launched by Nestle in the UAE market is a chocolate named Milky bar. The chocolate is available in sizes of 25 g and 12.5 g. The ingredient of product comprises of Whole Milk Powder, Sugar, Vegetable Fat, Cocoa Butter Whey Powder, Artificial Flavor and Emulsifier. The brand holds a good scope of growing in international market like UAE. The product with its uniqueness can emerge as a kid’s favorite chocolate which also comprises as the target market for the company in context to the UAE market. Current Target Market The current target market for the company is kid’s because the new product is a chocolate and it is a known fact that kid’s forms the major market for the companies involved in producing chocolate. The target market can further be illustrated using the following variables: Mass Marketing: The mass marketing will ensure that the company is promoting its product to larger audience. Example: Pepsi, Coca Cola Segment Marketing: Segmenting marketing is what the company is targeting to promote its product. Example: Nike Niche Marketing: This will not be an effective approach as niche marketing concentrates on few distinct groups of people. Example: Rolls Royce Micromarketing: This marketing highlights the need for local marketing and individual marketing. Marketing Opportunity The marketing opportunity for Nestle lies in attaining a large market share for its new product in UAE. Marketing environment factors like socio-cultural will play a major role for Nestle in establishing it new product in UAE (Boone, & Kurtz 50). The marketing environment becomes an important factor for Nestle because of the fact that consumer awareness about a product is turning as consumer preference. Nestlé’s marketing opportunity lies in catering to the needs and preferences of the target market which in return will ensure the company with competitive edge over its competitors in the UAE market. Market Analysis The market analysis for Nestle emphasizes on importance of marketing opportunity which is based on certain findings which has been derived by using questionnaire (Appendix 1). The questionnaire for the company will be based on sampling method. Sampling The sampling for Nestle has been performed using probabilistic sampling technique of simple random sampling. This will allow every individual from the selected population to be a part of the research (Babbie 128). The sample size for the analysis will comprise of around 30-40 individuals which will be used to collect the desired data. The samples will be selected in a way such that the groups are homogenous within the groups and heterogeneous with other groups. This will ensure the generalization of the research and the results of the research conducted through sampling of population can be inferred as results from the entire population (Kalton 35-38). Proposed Product Nestle which is one of the most successful companies in food and beverages industry has introduced many products world over. Nestlé’s proposed product Milky bar is innovative with health benefits and will be a new product in the markets of UAE. This proposed product will offer Nestle a new avenue for making profit and increase market share. The product for Nestle will not only focus on building the Nestle brand but to ensure a competitive edge as well. Milky bar which is one of the popular products from Nestle will also emphasize on the criteria reasoning as to why people would prefer this product over others. This product of Nestle, a popular chocolate amongst kids in several parts of the world decides to enter the UAE market which is known for providing opportunities also holds the key for Milky bar in establishing it as a brand. Proposed pricing Nestlé’s Milky bar will be launched as a new product in the UAE market and the proposed pricing strategy will be either price skimming or penetration pricing. Price skimming: This strategy will allow Nestle to charge maximum for its new product based on the brand value which Milky bar will inherit from Nestle. This strategy of pricing will ensure that the proposed product is innovative and carries a prestige of its own in the minds of consumers. Penetration pricing: This is the opposite of price skimming and the strategy of pricing in this case will focus on keeping low price for the new product. The main aim for Nestle in adopting low pricing strategy would be to attain large market share in a short span of time (Pride, Hughes, & Kapoor 386). Proposed distribution process The distribution process for the new product will be structured in a manner to make it easily available for the customers. A distribution process which is lengthy will have an adverse effect on a company’s performance (Madura 503). The shorter the process of distribution, the better will be the performance of company. The best possible distribution process for Nestlé’s new product will be making the product available for customers directly from the distribution centre. Proposed promotion mix Promotional mix plays an important part in promoting the product of a company. Nestle uses different promotional tools to market its product across the globe. Milky bar would be a new launch for the company in UAE and to make it a successful launch the company will opt for different promotional tools. Advertising: For a company like Nestle to invest in advertising the most important aspect would be the advertising objective, the message it wants to convey through advertisements be it through electronic, print or internet media. Direct Marketing: Direct marketing for Nestle will involve tools such as phone, email, mails or letters and online ads for its promotional activities. Internet Marketing: Internet will be an effective medium for Nestle to promote Milky bar in UAE. Posting ads in popular sites which are often visited by people and also its own websites will make a good promotional strategy for the company. Sales Promotion: Giving discounts, offering free gifts to kids will be included as sales promotion strategy by Nestle. Public Relation: Publicity for Nestle will be in terms of press release of new product. Apart from this Nestle will also release a video which will create eagerness amongst the customers about the product. Personal Selling: Personal selling will involve the interaction with the consumer direct and not through any other medium. These promotional tools will ensure that Nestlé’s new product does not lack the presence as a brand in UAE. Further, promotional mix tools will create a quick awareness of the product which will help Nestle to meet its objectives and increase the market share. Reference Babbie, Earl R. The Practice of Social Research. Connecticut: Cengage Learning, 2010. Print. Boone, Louis E, and David L. Kurtz. Contemporary Marketing. Connecticut: Cengage Learning, 2011. Print. Jain, Ashok. Principles of Marketing. New Delhi: VK Publications, 2010. Print. Kalton, Graham. Introduction to Survey Sampling: Issue 38. California: SAGE, 1983. Print. Kotler, Philip., and Gray Armstrong. Principles of Marketing. New Delhi: Pearson Education India, 2008. Print. Madura, Jeff. Introduction to Business. 4th ed. Connecticut: Cengage Learning, 2006. Print. Pride, William M, Robert J. Hughes, and Jack R. Kapoor. Business. Connecticut: Cengage Learning, 2011. Print. Appendix 1 1. Which Nestle chocolate brand do you like most? Kit Kat….. Munch...… Other…. 2. Are you a regular buyer of Nestle chocolates? Yes.......... No........... 3. What is the reason behind buying Nestlé’s range of chocolates? Tasty…… Cheaper…… Nutritious..... 4. Do you feel that Nestle has increased its range of chocolates over the years? Yes…. No…. 5. Do you feel that there is an improvement in the product quality for the last five years? Yes…. No…. 6. Do you prefer buying Nestlé’s products? Yes…. No…. 7. If yes, do you find any differences in quality as compared to other brands? Yes…. No…. 8. Does your decision to buy a Nestlé’s product is affected by availability of the product? Yes…. No…. 9. Do you feel that Nestlé’s products are trustworthy? Yes…. No…. 10. Do you think that rumors about food products can affect your buying behavior? Yes…. No…. Personal Information Name: ................................... Middle Name: .............................. Last Name: ............................. Address: ....................................................................................................................................... City: .............................. Country: ................................ Zip Code: .................. Telephone No.: ........................ Thank You for your contribution Read More