logo

Marketing Management

   

Added on  2020-01-07

24 Pages8643 Words91 Views
Marketing Management

TABLE OF CONTENTSINTRODUCTION:..........................................................................................................................3TASK 1............................................................................................................................................31.1................................................................................................................................................31.2................................................................................................................................................5.1.3...............................................................................................................................................8TASK 2............................................................................................................................................92.1................................................................................................................................................92.2..............................................................................................................................................102.3...................................................................................................................................................13TASK 3..........................................................................................................................................143.1...................................................................................................................................................143.2...................................................................................................................................................163.3..............................................................................................................................................18TASK 4..........................................................................................................................................194.1..............................................................................................................................................194.2..............................................................................................................................................20CONCLUSION..............................................................................................................................22REFERENCES..............................................................................................................................23

INTRODUCTION:Marketing is a platform to sales. Marketing includes research, planning, advertising andpromotional techniques to increase the sales. Marketing management is a concept which reviewsorganisation's resources and activities to increase its customer base, improve relationship withthe customers by providing them products and services as per their requirements. It helps theorganisation to enhance its perceived value and brand image. Marketing management analysesthe context of the industry in which the company operates. It includes value chain analysis,Porter's five forces model, competitor's analysis and others (Bailey, 2011) The role of marketingmanager is to examine resources and competencies, competitor's cost structure, productdifferentiation, competitive positioning and other factors. The objective of marketingmanagement is to provide customer satisfaction by identifying and meeting their stated orunstated needs and wants.TASK 11.1Nestle is world's leading health, and wellness company. Nestle is a food processingindustry which operates in more than 194 countries in the world with employee strength of over339000 people. The organization serves numbers of products to the customers. It includesproducts such as confectionery, coffee and tea, baby food, dairy products, bottled water, medicalfood, breakfast cereals, pet foods, ice cream, frozen food and snacks. Nestle has around 450factories in the world. Maggi, KitKat, Nespresso, Smarties, Nescafé, Nesquik, Stouffer’s andVittel are the most popular brands of Nestle (Barutcu, 2011)Porter's 5 forces Model: Porter's five forces model is an important tool that analyzes the levelof competition within the industry. Porter identifies 5 forces that determine competitive intensityand attractiveness of the industry. These following are the 5 forces which are derived by MichaelPorter:Threat of new entrants: The new entrants will always be a threat for the company if themarket is attractive. The food industry is very large, viable, competitive and profitable.Food industry has a very huge and attractive market which attracts the new entrants towork in it. Although, Nestle has accomplished its brand name in the market but the foodindustry is large and viable and lot of companies in the food industry has achieved a place

in the market but could not cross the Nestle in terms of the market share. The threat ofnew entrants in case of Nestle is low (Camusio, 2011).Threatof substitute products: In food processing industries, there are so many substitutesavailable due to the nature of the industry. Groupe Danone and Kraft foods are thecompanies that deals with the similar products as Nestle. Nestle is required to focus onmaintaining health and wellness aspects to remain unbeatable in terms of market share.Product innovation and differentiation will help the organization in taking competitiveedge to go beyond the substitutes. The threat of substitute products is high in case ofNestle.Bargaining power of suppliers: Bargaining power of suppliers in the food industry is themost important factor as the raw material can make a lot of difference in the foodprocessing industry. Nestle is known for its strong relationship with its suppliers. Most ofits products are dairy products and agricultural raw materials. Nestle always maintainshigh standards and seek quality suppliers to retain the best suppliers globally. Nestleadvises its suppliers to work more efficiently and reduce wastage (Chen, 2011). Thebargaining power is high in case of Nestle because it is a food processing industry andsuppliers plays a significant role in supplying raw materials. Bargaining power of customers: Bargaining power of the customers also plays asignificant role in the business operations of the company. In food processing industry,bargaining power of the customers are high. The customers can easily shift to thesubstitute product if the company compromises with quality in the product. Byinnovating new products as per the needs and wants of customers, Nestle has done well incountering the bargaining power of customers. Nestle always cares about therequirements of the customers and satisfies their needs by incorporating the healthyproducts into its production process.Competitive rivalry within the industry: Competition level is increasing day by day in thefood processing industries as many new firms are incorporating their business in thisindustry (Corley, Jourdan and Ingram, 2013) Groupe Danone and Kraft Foods are themain rivals of Nestle in the industry. The firm has established a very strong brand imagein the market so it is difficult for the rivals to challenge the business operations of Nestle.So the Competitive rivalry threat within the industry is low for Nestle.

PESTLE Analysis: PESTLE analysis is an important tool which monitors and analyses theexternal factors or macro environment of the organisation. The following factors influence thedynamics of the industry:Political Factors:Political factors talks about the implication of rules and regulation of thegovernment on the business operations. Some Nestle products are not allowed in differentcountries due to various reasons. The organization has done well in competing with the localcompanies in India and China (Corley, Jourdan and Ingram, 2013). Government regulationschanges time to time and country to country as they impose different tax laws, accountingstandards and revised tax law interpretation has affected the business operations of Nestle.Economic Factors: Economic factors talks about country's economic growth rate, inflation rateand per capita income of the country. Nestle has faced some problems in supplying the productsdue to different economic policies in different countries. Now company's clients and employeesare aware about the changing economic growth and inflation rate of the country. Social Factors: The social factors talks about the company's responsibilities towards the society.The social media have provide awareness to the public about the uses of ingredients in theproduction process of the companies, So Nestle need to maintain its quality in production andsales process (Craft and Hassan, 2015)Technological Factors: Technology creates opportunities for the companies to bring newproducts or improve the existing products. Internet and E-commerce plays a significant role inthe business activities. Nestle is required to adopt technical changes and improve its qualityproducts to maintain the top position in the food processing industry.Legal Factors: Legal factors talks about health and safety of the customers. Nestle is a wellknown brand and it needs to maintain the quality in the production process.Environmental Factor: Environment affects the business operations and business activitiesNestle. IT gives companies a place to carry its business activities. It needs to reduce wastage,control pollution from production to give a better environment to people of society (Dent, 2011)1.2Opportunities for Nestle:Nestle has established its business in the global market. It has a well known brand image.The organisation can come up with innovative products such as customised products which cansatisfy the needs and wants of the customers. The firm can expand its product line in growing

economies and it has opportunity to carry out its business in developing countries such as Brazil,Russia, China, India and South Africa. The food processing industry is growing day by day andthe number of new entrants in this industry is also increasing. Nestle can capture the untappedmarket by offering high quality services to their customers. The company can build partnershipwith major companies in the world to run its business activities smoothly. Nestle has a strongresearch and development department which can help them in introducing new products as perthe demand of the customers in the future (El-Ansary, 2006). The demand for healthier food isrising, so it can also be seen as a good opportunity for Nestle to maintain quality of healthy andnutritious products and grow the business in the future. The sales and distribution network ofNestle is so huge that it can develop its products in countries of Africa as well. The income levelin growing countries is increasing rapidly so it can be a positive sign for the firm like Nestlewhich is already established in the market. Threats for Nestle:Although, Nestle has a well known image in the market but there are some major threatsfor the company that can affect the business operations of the organisation. The change in trendscan be seen as a big threat for the organization. The people are becoming more health consciouswhich can impact on the demand of Nestle products such as Chocolates and chocolate relatedproducts. The pre-packaged products are considered as unhealthy and unsafe products in Europe,it can also affect the demand for some Nestle products. The major competitors like Walmart andother retailers have cut prices for their products it could affect the demand of Nestle products inthe market. The government of India has banned Maggi for some period; it can affect thebusiness operations of Nestle. The negative word of mouth for Maggi can also be seen as a majorthreat for Nestle. The buying power of customers and suppliers in the food industry is alsoincreasing day by day. The customers may shift to another brand if the firm compromises withthe quality in products and services. The prices for raw material are also increasing which mayharm its competitive price in the future (Fawzy and Dworski, 2010)

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Five Forces Analysis of Kitkat
|7
|1324
|1203

Marketing Management: Strategies, Opportunities, and Challenges
|22
|2097
|490

Marketing Management Presentation
|20
|821
|463

Nestle Industry in the UK: A Comprehensive Analysis
|11
|3359
|99

Application of Porter’s Five Forces model
|12
|698
|271

Competitive Strategy
|7
|1837
|80