Global Marketing |Situational analysis | Assignment

Global Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1............................................................................................................................................1
Presenting the situational analysis for Nestle which introduce Milo in Zimbabwe....................1
PART 2............................................................................................................................................9
Presenting the strategic and marketing plan................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Global marketing is refers as the simplest process for adjusting the marketing strategies
of a company in order to adapt to the conditions for some other countries. It also means that
selling the products at global level. The report main aim is to present the strategy which is used
to launching the brand in some international market and for this purpose the chosen company is
Nestle which is expanding its business in Zimbabwe. The quoted company is a global food and
beverage company whose headquarter is in Switzerland and operates its 2000 brands at global
level. Report further present the core global marketing management issues which are needed to
generate and also present the practical marketing strategies which help to expand it existing
business. Further it also apply concept or theories to global marketing and present the marketing
plan within culturally diverse team.
MAIN BODY
PART 1
Presenting the situational analysis for Nestle which introduce Milo in Zimbabwe
As Nestle wants to introduce its Milo brand in Zimbabwe and the global marketing is a
process that is actually used for adjusting the marketing strategies in which a brand wants to
expand its business in some new country. But at that time the company also faces many
challenge and some of them are as follows:
Market research: It is the biggest challenge which Nestle faces in Zimbabwe. It is an
action of gathering information about customer's needs and preferences. Therefore, it is quite
necessary for a company to identify the demographic region which is actually helpful to it to
expand its business. As per market research conduct by the company, it has been analyses that
customer need Milo brand and it will be assist to maximizes its profit.
Product Design and packaging:It is another challenge which Nestle may faces to
introduce a new product in Zimbabwe. Such that the idea of generation and creating new
products in existing market with innovative product design will be helpful for a company to
expand its existing business (De Mooij, 2018). The packaging and product design should be
more innovative and attracting which help to attract wide range of customers towards it.
Positioning: It is a marketing concept that that refers to the place which brand occupies
in the mind of their customers. It more focus on the product which includes the building of
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product's reputation and ranking first among their competitors. As Nestle is a brand and as per
market research it has been analysed that Milo is introduce by the company as per customers
needs. Therefore, positioning is another challenge which may faces by Nestle.
Choice of advertising agency: While introducing new product in market, the choice of
advertising agency is a challenge for global market. Because there are many agency who offer
different services but choosing best among many is quite difficult for a company. There are full
service agency as well as part time agency who actually make the new product more popular.
Therefore it is quite necessary for Nestle to choose best advertising agency for introduction a
new product in Zimbabwe (Kopp and Kim, 2018). Even choosing the local agency will also help
in best position in order to understand the needs of local market and it will further help to reach
wide range of customers with short period of time.
Recruitment and posting of sales force: After selecting best advertising agency, there is
another challenge comes i.e. recruitment and posting of sales force. Hiring a best person for the
sales is quite difficult for the company because not every individual is capable for doing perfect
work therefore, company wants to recruit best and perfect individual who have the calibre to do
the work in an effective way.
Pricing: Pricing is the most important challenges which the company faces while
entering in a new country or introducing new product into the market. Because the brand actually
faces tough competition with its rivals and therefore it is quite necessary for a company to
choosing best and affordable pricing strategy in order to keep enhancing its customer base.640
Sales Promotion: As Nestle wants to introduce new product in market, therefore sales
promotional technique is also become a challenge for the company. Promotional technique may
be modern as well as traditional and by using the social media promotional technique a and
advertisement, the company can easily uses promote their new products in market and as a result
people come to know about their new offers (Kasemsap, 2018).
Selection and management of distribution channels: As Zimbabwe is one of the
developed country and in this way, the there is another challenge comes i.e. selection and
management of distribution channels. If these distribution channels are strong and enhanced then
it will help to let people know about the new product. For Nestle one brand strategy is a next
move which help it to expand its current existing business.
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By applying practical marketing strategies into Zimbabwe, Nestle can easily be
introduces new product i.e. Milo in Zimbabwe and these strategies are as follows:
 By identify the target market which is quite helpful for Nestle to sell their new products
into market. It has been analysed that not all the new products are fruitful for the
organization but Nestle introduce its new product in Zimbabwe as per the demands of
their customers. Even there are so many barriers which are affect company's brand image
and may creates hurdles at the time of entry. In this time, a company should be carefully
choose the best target market for the organization and In depth market research has to be
done and after analysing the needs of their customers, company should choose the best
product which needs to introduced (Leonidou and et.al., 2018). In Zimbabwe, the target
people are the youngsters because Milo is a chocolate product which is actually like by
those age group only. Therefore, targeting people is consider as a market strategy for the
quoted company and it will definitely help to enhance their current profit.
 Segmentation is another marketing strategy for contemporary business environment and
it is an activity of dividing the broad consumer or business market into sub groups which
is based upon their characteristics. It is not only designed in order to identify the most
profitable segments but also to develop the key segments for better understanding of their
customers needs and demands. By segmenting, Nestle easily determine the exact needs of
their customers and then introduce Milo in that particular target market. It is also done on
the basis of geographic, demographic and psycho-graphic basis that helps a company to
reach at its top.
 Another marketing strategy is positioning i.e. the place in which the brand occupies its
own place in the mind of the customers and therefore, generally people prefer to use
brand products only because they have trust in their brand products. Such as Nestle also
has achieved a strong brand image in market and it can become difficult to reposition it.
Hence positioning is consider as most important and powerful marketing strategy concept
which help Nestle to distinguish features of their brand from others. Therefore, it is also
consider as one of the best marketing strategy which Nestle can also uses in order to
introduce new product into existing market (Gillespie and Riddle, 2015).
 Choosing right option for advertising is another marketing strategy which a quoted
company may uses. Among many promotional technique, social media is consider as one
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of the best method in order to let people know about their new offers and most of the
people in Zimbabwe uses social app in order to stay connected with each other and then it
will be helpful to let them know about new Milo product through Nestle. Though it is
considered that social marketing promotional technique is one of the most reasonable
strategy in order to people know about new offers. Through this, the company can easily
promote their new products in market and can draw attention of many youngsters so that
it will help to maximizes their profit margin through marketing strategy.
 To identify the needs of their customers and then implement it by using new variety of
advance technology is also consider as a different marketing strategy for the Nestle. As it
wants to introduce new Milo product in Zimbabwe and for this reason the company can
easily judge or determine the exact needs and then taking new marketing strategies in
order to fulfil those. Through low pricing strategy and different promotional tool the
company can also raise their products profit and also let people know about their new
offers and availability (Schlegelmilch, 2016).
Situational Analysis: it is a method which is actually used in order to determine the
exact situation of a company and to analyse organization's internal and external environment.
The model which are used is SWOT analysis and Porter five force model and these are
mentioned below:
SWOT Analysis: It is a model which is used to determine the internal environment of a
company such as strength, weaknesses, opportunities and threats such as
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Strength:
 Nestle has a brand strength and produces best quality of products at reasonable rates.
 It has worldwide network such as operates its unit in 17 countries and engaged 3500 staff
members who regularly produces best quality of products as per the demand of their
customer's (SWOT analysis of Nestle, 2018).
 The company has high level of market share and people from all over the world have
trust and loyalty because of its brand image in market.
 Nestle also have strong research and development capabilities that helps to maintain good
relationship with their customers as well as other companies such as Colgate Palmolive
and Coca- Cola.
 The company has well recognized brand image with a large amount of market share in
some of the largest national economies country such as Europe and United States.
Weaknesses:
 The sales of a company is directly depend upon few well recognised brands and this
makes the company vulnerable for any sudden changes in behaviour of a customers.
 Nestle still offered some products which are out of fashioned and people did not uses in
their modern lifestyle such as Carnation Milk.
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Illustration 1: SWOT analysis
(Source:SWOT analysis, 2018)

 Strong competition with other brands and creates a result of limited market share growth
for a company (Burns, Bush and Sinha, 2014).
 When a new product is launched by the company then it will creates high cost of
advertising and as a result many of them are less fashionable food products.
Opportunities:
 Growth of online store purchasing become the opportunity for Nestle and as a result, it
will further help to attract wide range of customers.
 If the company expand its business by introducing Milo in Zimbabwe will help to attract
wide range of customers towards a brand.
 Change in lifestyle such as longer working hours or more women in workplace will help
or increases the demand for many products.
 By providing nutritious food products can also increases the demand of Nestle products.
For example, introducing energy drink can be a opportunity for the company.
Threats:
 The biggest threat for Nestle is that it faces tough competition with many rivals such as
Walmart and Kroger.
 The growing use of retail channels such as Amazon Prime and dollar stores are also not
favour traditional retail products (Keegan and Green, 2015).
 Sudden increases in cost of raw material also affect the profit margin which is another
threat issue for Nestle.
 Economic instability and recession is also adversely affect the company and as a result
the profit margin of a company got affected and decline.
 Nestle also faces threats from many larger retail company such as Walmart who
pressurize to cut down the prices.
Porter five force model: This model is help to determine the actual situation of the country in
which the Nestle is going to establish its new product such as Milo. It includes five forces and
these are mentioned below:
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Competitive Rivalry- high: As Nestle faces tough competition at global level such that
its competitors are P&G, Kraft Food and for the breakfast cereals category it faces competition
with Kelloggs. Therefore, the company still faces high competition but in Zimbabwe the
company wants to introduce Milo product which no other brand offer and hence it shows that it
will help to maximizing their current profit by offer the product at cheap rates. As the market
share of the company is quite large and though the competition is not just for the pricing but it is
for creativity, product offer and promotional techniques (Moura, Branco and Camoesas 2015).
Threat of new Entrant- low: Nestle faces low threat of new entrant in Zimbabwe
because the current market share of the company is quite large and it is not possible for new
entrant to occupy the market. Even the existing company also have strong distribution network
and economies of scale that further allow many companies to offer low cost product. Thus, this
makes the threat of new entrant low for Nestle and the company has good loyalty of their
customers and many of them have trust that helps to grab market attention.
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Illustration 2: Porter five force model
(Source: Porter five force model, 2018)

Bargaining power of suppliers- low: Nestle has a strong market share which shows that
the bargaining power of the suppliers is quite low and as a result, it requires supplies in massive
quantities. Hence if any supplier that once start supplying to Nestle never interferes or bargain
related to their prices. Nestle is already existing its unit in Zimbabwe and there it offers less and
affordable prices of their products and in return, It holds its suppliers in esteem and takes care.
Company also prefer to maintain long term relation with their suppliers and that is the only
reason the bargaining power of suppliers is low (Fine, 2017).
Bargaining power of buyers- high: Because of high level of competition, the bargaining
power of buyers is quite high and that is why they can easily switch from one brand to another.
The switching cost is quite low and for the consumers. Therefore, there are so many companies
who sell similar products but on the other side, Nestle recognizes the power of the buyers and
always makes sure that the customers of Nestle will remain satisfied with their products. This
aspect is further helped Nestle to develop brand loyalty from many of their buyers.
Threats of Substitute- High: In Zimbabwe, there are many company who offer similar
products and therefore, many of the Nestle products have their substitute such as bottled water
and pasteurized milk that also have many substitute. These are the allegations against the
products of Nestle that it does not offer healthy food for consumption. Therefore, this may lead
to increase in sale of substitute for those people who are quite health conscious. Hence the threat
of substitute is high for Nestle (Skarmeas and et.al., 2018). But Nestle wants to introduce new
product i.e. Milo in Zimbabwe and this product is not offered by any other company.
PART 2
Presenting the strategic and marketing plan
Marketing plan a method or document that basically outlines the marketing strategy and
tactics and it is a detailed analysis of all key aspect such as cost, goals and different pricing as
well as promotional strategy which are mentioned below:
Executive summary: Nestle has its brand image in market and currently the company
wants to introduce new product i.e. Milo in Zimbabwe as per the demands of their customers and
for this reason the report present the marketing plan that further includes marketing objectives
and target market i.e. Zimbabwe. Report has been discussed the pricing strategy as well as
product strategy of Nestle and also describe the promotional techniques which further help to
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determine the technique which is actually used in order to let people know about their new
products. In addition to this, this marketing plan also includes the distribution strategy as well as
financial summary that further help to determine how much amount is spend in order to
introduce new product in the market of Zimbabwe.
Marketing objectives:
 To attain sympathy with international voluntary standards in an environmental
management system.
 To build the best relationship with their customers as well as suppliers.
 To make sure that continuous improvement of Nestle offered products.
 To develop the best marketing strategy in order to let people know about new offers.
Target Market: the target market for Nestle is Zimbabwe and the company has its unit
in Zimbabwe. As the customer presents their need and that is why the company wants to
introduce new product i.e. Milo.
Product Strategy: It is the core foundation for the entire product life cycle. The product
strategy basically designed in order to achieve the company's defined objectives and goals. This
strategy is comprised into three parts such as:
 Vision: The vision basically includes details on the market opportunities such that if
Nestle introduce new product i.e. Milo in Zimbabwe then it will be helpful for a company
to offer a product and it further help to maximizes their profit margin (Solomon, Marshall
and Stuart, 2017). In addition to this, it also describe the competitive analysis of the
company such that it also faces tough competition with many company in Zimbabwe.
 Goals:
 To increases the revenue by 20 percent.
 Introduce new product into existing market.
 Usage of advance technology in current business.
 Initiatives: This is done to achieve the goals by making improvement in performance
and through better reporting also the company can take some initiatives in order to
achieve the defined goals for the welfare of a company.
Pricing strategy: It is a method which is actually help to sell the product into a market in
order to maximizes the profit when a new offered products is sold in market. This strategy is
quite helpful for Nestle because it assist to raise the market share and in the case of Nestle, the
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product is actually introduce in market and for that reason, the price of the product should be low
and affordable so that it will help to attract wide range of customers. Low pricing strategy is
quite beneficial for Nestle and they may also adopt seasonal pricing strategy so that it will be
helpful and also offer different discount vouchers for their customers (Smith, 2016). Bundle
pricing is the another pricing strategy which Nestle can be used and can sell variety or bulk
products in single way. This combo offer is also assist many customers to take benefit form it.
Promotion strategy: As Nestle wants to introduce new product i.e. Milo in market of
Zimbabwe and for this purpose the company wants to use promotional strategy i.e. Social media
websites such as Facebook and Google+ which most of the company actually used in order to let
people know about new offers or products. Nestle also uses advertisement in Billboards which
also help to determine many people about their new offering (Craft and Hassan, 2015). Thus a
strong promotional strategy is helpful for positioning the company in right place and also opens
the doors for future communication. It has been analysed that most of people in Zimbabwe uses
digital technologies therefore, it is quite beneficial for the company to uses social media as a
promotional strategy.
Distribution strategy: It is a strategy that is actually uses in order to make the product or
service available for the target market or customers through their effective supply chain. For
Nestle, the company also uses direct distribution strategy in order to directly send their products
to end customers (Laroche, 2014). For example, online shopping should be offered by the
company in order to make their customer enjoy while shopping. Therefore, the distribution
strategy for the company should also be helpful in order to reach large number of customers.
Financial Summary: It is the summary of overall expenses as well as income which
incurred in last year and budget is assigned for the introduction of new products and this is
mentioned below:
Particular Amount in dollar
Advertisement $75
Labour cost $100
Miscellaneous expenses $50
Production cost $20
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Total $245
Profit and Loss statement for Nestle: It is the final statement which helps to determine
how much amount is spend during a particular year and income earned and it is mentioned
below:
Income Amount ($) Expenditure Amount ($)
Sales turnover 8614.22 Raw material 3671
Excise duty 192 Power and fuel cost 370
Net sales 8235 Employee cost 665
Other Income 30 Other manufacturing expenses 115
Stock Adjustment 100 Selling and Administration exp. 12
Miscellaneous expenses 1560
Total income 17171.22 Total Expenses 6393
CONCLUSION
By summing up above report it has been concluded that Nestle is one of the most well
known brand and operates its unit at world level and now it wants to introduce new product in
Zimbabwe. Therefore the report concluded that for introducing new product, the company faces
many issues such as pricing and promotion etc. which should be overcome so that it will be
helpful for the expansion of the company. By using SWOT and porter generic strategy, the
company can easily determine its strength as well as weaknesses and its rivalry intension. In
addition to this, the report also concluded the marketing plan which help to introduce a new
product into Zimbabwe.
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REFERENCES
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De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
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Fine, S. H., 2017. Introduction to social marketing. In Marketing the Public Sector (pp. 1-12).
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Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
Kasemsap, K., 2018. The roles of social media marketing and brand management in global
marketing. In Social Media Marketing: Breakthroughs in Research and Practice (pp. 425-
453). IGI Global.
Keegan, W. J. and Green, M. C., 2015. Global marketing. Upper Saddle River, NJ: Pearson.
Kopp, S. W. and Kim, K. H., 2018. Introduction to the Special Section on Global Perspectives in
Public Policy and Marketing. Journal of Public Policy & Marketing. 37(1). pp.106-107.
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the way forward. In Advances in Global Marketing(pp. 3-33). Springer, Cham.
Moura, A., Branco, M. and Camoesas, M., 2015, June. NESTLÉ, A GLOBAL FIRM AND ITS
CUSTOMER RELATIONSHIPS. In IMC 2015 International Management Conference
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Schlegelmilch, B. B., 2016. Global Marketing Ethics and CSR. In Global Marketing
Strategy (pp. 195-220). Springer, Cham.
Skarmeas, D. and et.al., 2018, July. ON RELATIONSHIP VALUE IN INTERNATIONAL
MARKETING CHANNELS. In 2018 Global Marketing Conference at Tokyo (pp. 1330-
1330).
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Smith, B., 2016. Nature and Geography: Tragic Voids within Marketing Textbooks and the
External Business Environment. In Global Perspectives on Contemporary Marketing
Education(pp. 47-64). IGI Global.
Solomon, M. R., Marshall, G. W. and Stuart, E. W., 2017. Marketing: Real People, Real
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Online
SWOT analysis of Nestle. 2018. [Online] Available
through:<https://www.mbaskool.com/brandguide/food-and-beverages/3227-nestle-
ltd.html>.
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