Marketing Essentials for Nestle: Strategies, Tactics and Plans
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This report discusses the marketing essentials for Nestle, including strategies, tactics, and plans. It covers the 7P's of marketing, segmentation, target customers, and evaluation of marketing plan. The report also examines roles and responsibilities of marketing and interrelation with other departments.
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Marketing essentials
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Table of Contents INTRODUCTION..........................................................................................................................3 TASK-1............................................................................................................................................3 TASK-2............................................................................................................................................3 Part-A...........................................................................................................................................3 Different ways of marketing mix to marketing process.........................................................3 Tactics applied by organizations:...........................................................................................4 Part-B...........................................................................................................................................5 Basic marketing plan.............................................................................................................5 Evaluation of marketing plan for an organization..................................................................5 Strategic marketing plan (7P’s)..............................................................................................5 CONCLUSION................................................................................................................................6 REFRENCES...................................................................................................................................7
INTRODUCTION Marketing essentials refer to tools and techniques which can be applied so that promotion can be done of a product. It is essential to make plans or strategies so that people can be attracted and it helps in accomplishing targets (Blythe and Martin, 2019). Nestle is a public company which was founded in the year 1866 by Henri Nestle. Its headquarter is situated in Vevey, Vaud, Switzerland and it serves all over the world. The report examines roles and responsibilities of marketing and interrelation with other departments. Different ways to use elements of marketing mix (7P’s) to achieve overall business objectives. A marketing plan is discussed and tools which help in marketing and strategic planning. TASK-1 In PPT TASK-2 Part-A Different ways of marketing mix to marketing process Every organization has its own plans or strategies which is different from others. Managers of company are making plans or strategies so that they can gain competitive advantage in market. For growth and development of company it is essential to identify market situation and make plans accordingly. Different companies apply different plans to achieve business objectives. Nestle company is focusing on promotion of product and try to attract more people so that profit can be earned (Thabit and Raewf, 2018). There are different ways of doing promotion suchas,emailmarketing,socialmedia,directselling,paidmedia,internetmarketing, conversational marketing. Managers of Nestle company are applying social media marketing and paid media for promoting product. It is important to apply some strategies so that goals and objectives of company can be accomplished. Nowadays, people are more active on social networking sites and it is the best way to attract people. Customers want new and innovative products and they want that advertisement should be given in a unique way. This helps in attracting people and increase sales of company.
Managers of Nestle company has conducted market survey and determine choice of customers. After that they make plans or strategies which is beneficial for growth of organisation. Unilever company is applying email marketing, direct selling and advertisement given on social sites for promotionofproduct.TheirwayofmarketingisdifferentfromNestlecompany.All organization is having goals and objectives which they want to achieve. So, for that they have to make plans or strategies which is beneficial for company (Blut, Teller and Floh, 2018). Promotion is one of the important element of marketing mix as it helps in attracting more customers and sales can be increased. Social media marketing is the best option for organizations to promote products so that more customers can be attracted and profit can be earned. Nowadays, people are more active on socialnetworkingsites,andtheyinfluencebycreativeadvertisement.Forgrowthand development of organization it is important to make proper plans for increasing sales of products. For survival of company marketing planning process should be applied which includes, setting of objectives, strategy formulation, development of programs, implementation of plans, control and evaluate overall performance (Pomering, 2017). This is the process which is applied by managers of Nestle company for accomplishing goals and objectives. In Unilever company, managerisapplyingmarketingprocesssuchas,settingobjectives,makingstrategies, implementation of plans, controlling all the activities and reviewing performance. Tactics applied by organizations: There are different tactics applied by organizations so that business objectives can be achieved. Managers of Nestle company are conducting market survey to identify choice of customers and make plans accordingly. Some tactics which can be applied are, product, pricing, marketing, operational and financial strategies. These are tactics which is used by managers of Nestle company for achieving targets of firm. In organization, product is made after analysing market situation and determine choice of customers (Dost, Phieler, Haenlein and Libai, 2019). Product is the main element which should be selected properly so that goals and objectives can be accomplished. It also helps in generating more revenue and build good image in market. Manager of an organization should focus on providing unique product to customers and good quality so that their needs can be satisfied. It is important to determine choice of customers and make plans on the basis of that.
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Another tactic which can be applied to achieve business objectives is pricing strategy. Managers are responsible for deciding price of product and they should keep low price as compare to competitors to attract more people. This is a strategy which is used by most of the organisation to gain competitive advantage and to build positive image in minds of people. For growth and survival for firm, it is important to analyse taste and preference of consumers. Marketing is essential tactic which is applied by organisations to accomplish goals and objectives. Marketing refers to promotion of product to increase sales of product by providing information to customers and creating good image in their minds. In Nestle company, managers are giving advertisement on social networking sites so that people can get relevant information about new product (Sudari and et.al., 2019). Operational strategy is tactics which can be applied by an organization for achieving targets. Operational strategy includes, customers, internal process, learning and innovation. These are four dimensions which help an organization in growth and better plans can be made for gaining competitive advantage in market. Managers of Nestle company are focuses on satisfying needs and wants of consumers. When customers are satisfied then sales of company is increased. Part-B Basic marketing plan for Nestle: NESTLE Good Food, Good Life Vision:Nestle's vision is to be a leading, nutrition, health, wellness and competitive company delivering the improved shareholders value. It wants to be preferred as a corporate citizen, preferred employer, supplier selling preferred products. Mission:The mission statement of Nestle is to provide the consumers best tasting and most nutritious choices with a wide range of food beverage categories and eating occasions starting from day to night (Nestlé S.A., 2021.). Objective:The objective of nestle is to manufacture and market its products in such way that the value created can sustain over the long term for all stakeholders.
Marketing Strategies: Marketing strategies adopted by Nestle are as following: Segmentation of Nestle:Nestle has segmented its market on the basis ODF demographics. The products can be divided into the following demographics: Segmentation strategies:Products offered (Examples): Geographic Segmentation: (Based upon seasons and regions) Nature, Nescafe ice. Demographic Segmentation: Children General-public Nido, Cerelac, Koko Krunch and Lactogen Chocolates Behavioural Segmentation: (Based upon benefits) Cerelac. Pyschographic Segmentation: Lifestyle Personality Nescafe 3 in 1. Kitkat Target customers:Nestle has adopted the strategy of target market for each separate segment of the market. NESTLE- Target market Family life cycleSingle parents Full nest Geographic dispersionUrban population Suburban population Social stratificationUpper class Lower upper class
Upper middle class Age segmentsKids Parents Income levelsAverage income Above average. Positioning of Nestle:The company has positioned itself in the market through differentiation strategy. NESTLE- Positioning Product differentiation:Channel differentiation: Differentiationionnutritionvalues, flavours, colours and fragrances Channel of distribution
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Marketing mix:Marketing mix of Nestle can be explained through the 4P's of marketing such as following Product:Nestle offers over 8000 brands of products in high quality and are available in different sizes, shapes and colours. It mainly deals in Dairy products, chocolates, ready to cook food and beverages. Illustration1: Some products offered by Nestle. Source:Understanding Nestlé,2021
Price:The pricing of the company is based upon the quality of the product. The company offers high quality products so the price of the products offered by Nestle are slightly more priced than the competitors (Understanding Nestlé,2021).Place:The company caters it products worldwide. Most of the sales and revenues are generated from European countries. Company sends its products to the distributors and retailers. Then these products are sold the end consumers through retailers.Promotion:Nestle's promotional strategies concentrate upon extensive marketing and advertising for its individual brands and products. It uses all media of marketing such as TV, social media and print media for its promotional strategy. Competitors:The major competitors of Nestle are following Unilever MARS Kraft Foods. DanoneHershey's Suppliers and their responsibilities:Nestler has partnered with suppliers from all over the world through which it is able to provide its products and brands in more than 187 countries (Suppliers, 2021). It resources materials from 5 million farms from which most of the farmers are form poor rural regions of the world. Product line:Nestle offers following under its product line Baby foods Bottled water Cereals Dairy Drinks Food services
Frozen food Coffee Chocolate and confectionery. Health care Pet-care Ice-cream Sports nutrition Weight management products. Evaluation of marketing plan: Nestle invests huge amount in its marketing plan for delivering the highest quality to its customers. The marketing plan of nestle has resulted in a making the company commonly recognizable consumer product manufacturer brand. It offers the highest quality products. Because of the quality of the products offered most of the customers prefer Nestle over the competitors (Nestlé S.A., 2021). Nestle's marketing strategy is considered as one of the best examples for the implementation of marketing mix which allows companies to deliver high quality diverse features. Nestlehasdevelopedawiderangeportfoliowhichcoversallconsumerproduct categories. This has helped the company to capitalize on the global market. It as achieved competitive pricing by maintaining a low profit margin on its products and depending mote upon the bulk sales which deliver high profits and turnovers. Nestle's promotional strategies has helped it in reaching the customers and informing them about improvements and new products from all over the world. Strategic marketing plan (7P’s) A strategic marketing plan is a procedure to create a marketing strategy outlining the organizational objectives (Boriphonmongkol and Chienwattanasook, 2020). It includes the 7P’s of marketing. The strategic marketing plan of Nestle is explained as following: Product
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It means managers should identify needs of customers and according to that they should make product. This helps in earning more profit and more people are attracted. Nestle company is providing good quality products to customers and there is different type of products like, coffee, milk, baby foods, chocolate, cereals etc. Price Second ‘P’ refers to price of the product. Managers of company should keep prices of low as compare to competitors to attract people (Abdul-Hamid and et.al., 2017). There are different type of pricing strategy which can be applied by an organization so that they can gain competitive advantage. Managers of Nestle company are applying penetration pricing strategy in which prices are kept low as compare to competitors. Place Place refers to movement of product like, intermediaries which can be used by managers so that customers can get products on time. There are intermediaries which includes, distributors, wholesalers and retailers. In Nestle company, product is distributed with the help of wholesalers and retailers. Promotion Promotion means to give advertisement so that people can get information about new product (Saidani and Sudiarditha, 2019). It is important to do marketing of product so that sales of company can be increased Nestle has adopted social media marketingto attract customers and increase profit of company. People People in marketing refers to the staff, sales people and all the human resources employed in an organization. Consumers are also included in the people element of marketing mix. Nestle provide excellent quality and consumer services to which creates a positive experience the consumers. It also attains a competitive advantage through selective hiring and trainings. Process
Processes are all the actions or steps involved in the delivery of a product or service to the end consumers (Mintz and et.al., 2021). Nestle's processes focuses on saving of cost, efforts and time by enhancing efficiency. It also ensures that they deliver the same standard of quality and service to the consumers repeatedly. Physical evidence Physical evidence includes all the things which consumers see when interacting with business. It includes designs, branding and packaging. Nestle's Brand logo is distinct that creates differentiation from the competitors. It can be recognized easily by the consumers. CONCLUSION From the above discussion it can be concluded that, Marketing essentials are the techniques applied for promotion of a product. Companies such as Nestle can adopt different ways and tactics of marketing mix such as social media marketing and different pricing strategies to its marketing processes. Marketing plan of Nestle is considered as one of the best examples of marketing strategies which includes its vision, mission, marketing mix, product portfolio, segmentation, targeting and positioning strategies. It also describes the major competitors and supplies of company from all over the world. Strategic plan of nestle involves 7P's of marketing which outlines its organizational objectives.
REFERENCES Books and Journals Abdul-Hamid, I.K. and et.al., 2017, June. Sustainability Marketing: The 7ps Perspectives. In5 th International Conference on Contemporary Marketing Issues ICCMI June 21-23, 2017 Thessaloniki, Greece.(p. 595). Blut, M., Teller, C. and Floh, A., 2018. Testing retail marketing-mix effects on patronage: A meta-analysis.Journal of retailing.94(2). pp.113-135. Blythe, J. and Martin, J., 2019.Essentials of marketing. Pearson UK. Boriphonmongkol,A.andChienwattanasook,K.,2020.FACTORSOFTHESERVICE MARKETINGMIXANDAFTER-SALESSERVICEQUALITY.JOURNALOF GLOBAL BUSINESS REVIEW,22(1), pp.1-10. Dost, F., Phieler, U., Haenlein, M. and Libai, B., 2019. Seeding as part of the marketing mix: word-of-mouthprograminteractionsforfast-movingconsumergoods.Journalof Marketing.83(2). pp.62-81. Mintz, O. and et.al., 2021. The right metrics for marketing-mix decisions.International Journal of Research in Marketing.38(1). pp.32-49. Pomering,A., 2017.Marketingfor sustainability:Extendingtheconceptualisationofthe marketingmixtodrivevalueforindividualsandsocietyatlarge.Australasian Marketing Journal.25(2). pp.157-165. Saidani,B.andSudiarditha,I.K.R.,2019.MarketingMix-7ps:TheEffectonCustomer Satisfaction.Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB).7(1). pp.72-86. Sudari, S., and et.al., 2019. Measuring the critical effect of marketing mix on customer loyalty through customer satisfaction in food and beverage products.Management Science Letters.9(9). pp.1385-1396. Thabit,T.andRaewf,M.,2018.Theevaluationofmarketingmixelements:Acase study.International Journal of Social Sciences & Educational Studies.4(4). Online references: About us. 2021. [Online]. Available through: <https://www.nestle.com/aboutus>. [Accessed on 27 August 2021]. NestléS.A.2021.[Online].Availablethrough: <https://www.referenceforbusiness.com/history/Mi-Nu/Nestl-S-A.html>.[Accessedon 27 August 2021]. Suppliers.2021.[Online].Availablethrough:<https://www.nestle.com/aboutus/suppliers>. [Accessed on 27 August 2021]. UnderstandingNestlé.2021.[Online].Availablethrough: <https://www.nestle.com/investors/overview>. [Accessed on 27 August 2021].