Assignment 1 – Report
In this Marketing Strategy assignment a detailed marketing plan with the industry and the trend analysis would be carried out. The chosen organization is Nestle. Nestle is a Swiss based multinational food and beverage company. It is headquartered in Vevey, Switzerland. In terms of the revenue that it earns, it is the largest FMCG Company. It was founded in the year 1866. CEO of the Company is Paul Bulcke.
a) Elements of the marketing process
Marketing is a very crucial process that has to be done by each and every company. It acts as a tool which helps in the selling of the product and attraction of the maximum number of customers. The major elements that have to be studied and processed are:
Scanning of the marketing environment – Before any company develops and do marketing planning or the business strategy to attract the customers, it is necessary to scan and find out the environment in which the plan has to be enforced, executed and even implemented. This would help in successful implementation of the plan of action.
Marketing Strategy – This element comprises of the segmentation of the market, targeting the right set of audiences and even positing the products and the services at the right place for the right set of customers at the right time.
Marketing Tactics – This element forms the development of the various mixes of marketing like: product, price, place and promotion for the products or the services of the company.
Monitoring and Control – This is a process whereby a monitoring is done for the products and their respective marketing plan so that the activities and the processes could be controlled and monitored.
All the elements of the marketing mix are combined to form the right marketing planning and its correct implementation helps in the success of the marketing activities. Even the 5Cs form the elements of the marketing mix. They are customers, company, competitors, collaborators and the context in which the marketing plan has been developed (Donovan & Henley, 2003).
b) Benefits and costs of a marketing orientation for Nestle
Marketing orientation helps Nestle in making the right strategy for costing, attracting the right set of customers and including a detailed action plan for the team working in the company. It helps in the effective customer service and care in shorter and longer term as an objective. Marketing orientation helps in building the longer term strategy and action plan for the company. The company keeps on surveying the market environment and orients its strategy accordingly. We could say that it is the marketing orientation or the strategy that helps in the attraction and conversion of the people into the loyal customers of Nestle. The costs that are involved in the marketing orientation are the costs for promotions, implementation of the marketing plan and the ideas, innovative concepts and the creative views that are converted into an action plan for the success of the company.
c) Organization, industry and market environment situational analysis.
The macro and the micro factors of the environment that influence the marketing decisions for Nestle are explained as under:
Micro Environment Factors – These are said to be factors that are internal to Nestle and affect the marketing and the success of the company within the industry:
Customers – Nestle has been the largest company in terms of its fast moving consumer goods. It has analysed the needs and requirements of the consumers and produced the brands and the products accordingly (Farrell et al, 1981).
Employees – Nestle has built a very strong culture within its Company. It has effective and beneficial policies, practices and the procedures for its employees so that they remain satisfied working with them.
Shareholders – These are playing a very significant role in the growth and development of the organization. They are framing the policies, strategies and the procedures in the working of the organization. They are inputting the investment in terms of the capital and the manpower approval for the budgets.
Suppliers – Nestle has kept a very wide network for the suppliers so that it could easily send its products to a wider segment or the level of people.
Competitors – Nestle has been consistently been monitoring the progress of the various competitors in the FMCG sector so that it may stand out unique by developing different kinds of products.
The Macro Environmental factors for Nestle are:
Political Factors – Nestle takes care of the political and the stability conditions of the government of each country where the company operates.
Economic Factors – Nestle considers the economic factors like: exchange rates, value for the money, inflation rate and the growth of the economy of the country and accordingly works out on the various strategies for the development of the products.
Social Factors – Nestle brands have to be sold to the people only. It has to study the types of the people and their preferences and the liking for the food items and the products.
Technological Factors – These are the factors that influence the working and the success of the company like: use of the advanced technology, machinery and the tools and techniques. Nestle has been employing the latest technology.
Legal Factors – Nestle monitors the legal regulations, rules and the procedures for the company and adheres to the rulings given by the governmental authorities.
Nestle is the largest and global FMCG Company.
It has a specific and targeted business strategy for the attraction of the maximum number of customers.
It products are liked and preferred by all the consumers.
It has been the most competitive companies in the entire world.
Few of its products are not preferred by the company.
Being global, it is recognized by all and the areas where it has still not explored can easily do so.
It has full support from the governments of each country due to its strong contribution to the economy and market (Hastings, & Saren, 2003).
Being number 1 and largest, it has to maintain its position in the market else 2nd and 3rd largest companies may take up its position like: Unilever and Proctor and Gamble.
d) Segmentation criteria for Maggie products
Maggie has been chosen as the product for the Nestle Company. It used to come in only one type. At present the company has even various flavours and types of the Maggie products that are liked by the consumers. It helps in the target of the two major segments of the market like: Children and the adults. These segments would be targeted due to the reason that Maggie has been developed with the flour and wheat flour types that would attract the children as well as the adults as they fulfil the nutritional criteria and value for the products.
e) Target strategy for Maggie
Maggie could be promoted among all the age groups, types and the segments of the people. This is due to the reason that it tastes well and has the product that has a great nutritional value and base. The target strategy for the chosen product is:
Attracting the consumers by offering the free samples in form of marketing campaigns for the tastes to all types of consumers outside the schools, colleges and the universities where the major chunk of people may look for this kind of food.
Beneficial and useful offers could be given as per the Maggie as a product like some free options could be given along with Maggie or may be some playing toys for the children so that they could be easily attracted for it (Ojiambo, 1994).
The packaging should be made attractive and new that will attract more consumers from among all the age groups. (explore Unit 7 Business Strategy Assignment)
f) Effect of buyer behaviour on marketing activities
Organizations behaviour is the major factor that determines the success, growth and the development of the various products of organizations. The Nestle Company needs to understand the various products that the consumer would like and accordingly do the production. Behaviour of the consumer will not remain same throughout. It will keep on changing depending on the changes in his requirements and the preferences with the promise of the utility that he obtains from the various products. The various factors that affect the behaviour of the consumer are:
Culture – The culture, caste, traditions and the social class influence the buying decision of the various consumers.
Society – The way and the types of items that are utilized by the society makes a lot of impact on the buying decision of a consumer. For example in case a person is given a good feedback on the product of Nestle by his friend then he will surely try that product.
Personal factors – The factors which are personal to an individual like: personality, lifestyle, status and the occupation are the major determinants of the buying decision for a specific product (Wyer Jr, & Srull, 2014).
Psychology – The various psychological factors such as: inner beliefs, attitudes, motivation, perception and the knowledge & learning that an individual possesses has a great impact on his buying decision.
g) Positioning options for Maggie
Positioning refers to the placement of the product in the right segment and sustain in the business activity. Nestle has positioned its product on the basis of their quality levels and the pricing in various areas so that it keeps on sustaining its business by the proper placement of its products. Maggie could be positioned among the segments like: School Going Children, College Going Adults and adults who have lesser time due to their occupation and want to cook food at the earliest.
h) Marketing plan
Maggie in case has to sustain its position in the market then it has to be increasing its market share through the process of new product development. The company must develop Maggie as a product in various forms like:
- It could come with various flavours.
- It could be made to come in various sizes and shapes.
- Its packaging could be changed entirely.
- It should have varied ingredients like vegetables and non-vegetarian items like chicken chunks and fish pieces.
Maggie to could be sold in the market with the help of various distribution channels like: Wholesale markets, Retail markets and Company owned outlets.
Price for the product has to be set in such a way that the organizations objectives and the marketing principles are met. The major goal would be to reach volumes and gain revenues and profitability for a longer run. While setting the pricing for a product, the major strategies and the considerations are: Maximization of the revenues and the profitability, Meeting the financial targets and objectives that are set by the company, Achieving the target gaol for the returns and the revenues, Maintaining the market share for the company in the market and among its competitors, Building the value for the various brands and the products of the company and Increasing the sales and the income for the company.
j) Marketing mixes for the two different segments discussed
Segment 1 – School Going Children
Product – They could develop Maggie with a range of vegetables and the chicken chunks so that they add a nutritional value to the product.
Price – The price should be benchmarked with the industry standards and even the competitor products in the similar lines.
Place – It should manufacture this product in the areas where there is availability of large population of children.
Promotion – Maggie products could be given to the children with different promotional offers like each Maggie product is accompanied with the promotional schemes and offers such as free toys and various other benefits.
Segment 2 – Adults (Age group 15-35 Years)
Product – Maggie could be sold to this segment in such a way that it gives a flavour of noodles to them and it is liked by them a lot.
Price – The price should be benchmarked with the industry standards and even the competitor products in the similar lines.
Place – The same place would be targeted as if children are there then their guardians and parents with siblings who are grown up would also be there with them.
Promotion – Maggie products could be promoted with options like 1+1 free offer or add certain other product as a value for the customers so that they buy them see the double utility in it.
j) Marketing mix with and promotional activity
The marketing mix for the Nestle as a brand is explained as under:
Products – Nestle has a large variety of the products in the market and has been competing in the market.
Price – The price and the costing of the products has been kept in such a way that it is beneficial and profitable for the company.
Place – Based on the preferences and the liking of the people at the place it has operating its business. The company has been producing the products.
Promotions – Nestle has been involved in a lot of promotional activities through which it promotes its products easily in the market. It has been consistently taking out various offers and schemes for its products that attract people.
k) Additional elements of the extended marketing mix
Extended marketing mix includes:
People – Nestle finds out the interests and the preferences of the people for its products, based on their feedbacks, it consistently modifies and alters its products (sPetkus, 2004).
Process – Nestle has got a highly advanced level and mechanism of production process. It has been developing its processes so that they are creating efficiency and productivity.
Physical Evidence – It takes into account the various physical evidences that are available in the markets and produces the goods and services accordingly.
Budget Nestle has to set as per the market norms, principles and the strategies for its competitors. It has to procure all the essential resources and as per the timelines, produce the varied segment of products. It should keep addressing the improvement feedbacks and the responses that the company gets from various customers and the clients and accordingly keep modifying its products so that they are preferred over the products of the competitors.
Assignment 2 - Essay
Question 01 In Assignment 1, you have developed a marketing strategy to market the products and services to the consumer. What differences are there if you market your products and services to an organization?
Marketing when done for the consumers is very different from that of the marketing that is done for the organizations. Customers will see the utility in the product and buy it whereas organizations would see if the product is meeting the expectations of their short and long run targets, strategies and even the business model. Organizations would not buy a product unless it is meeting the kind and level of strategy that they are designing for themselves. Customers would be targeted through wholesalers, retailers and the company owned stores whereas organizations have to be targeted through the means of the direct sales representatives who give the presentation of the products and tries to attract the companies towards the products. The margins and the revenue is more in case of the customers as compared with selling of the products to the organizations (Uschold & Gruninger, 1996).
Question 02 Think of marketing abroad. Following the completion of assignment 1, suggest on implementing a marketing strategy to market abroad. What would be different from international marketing to domestic marketing?
There is a lot of difference between the domestic and the international marketing. Domestic marketing is easy as the company is known to the culture, norms, beliefs and the values of the people in the domestic country. They will do the production of the goods and the services as per the demands of the people in their domestic country. On the other hand international marketing is different as the study has to be carried out on the interests of the people in the international countries. International laws, principles, regulations and the rules are stricter than the domestic ones as company has already adapted to them. There would be a large number of international competitors in the market for the domestic company that tries to expand its market and position in the global segment. The marketing strategy that would be adopted among the international customers and the clients would be different from that in the domestic markets. This is due to the reason that international laws, importance of culture and the values of the people have to be studied in order to develop an effective marketing strategy.