Marketing Plan for Nestle

This marketing plan discusses the segmentation, targeting, and positioning strategies of Nestle. It also covers the marketing mix, relationship marketing, and recommendations for the STP model.

Marketing Plan

EXECUTIVE SUMMARY
The below report is based on the marketing plans which organization makes to achieve their
objectives. Organization makes various strategies and according to that they expand their
business. The report is about segmentation, targeting and positioning techniques which every
organization and according to those targets they make their plan. Marketing mix is also created
in which 4ps of marketing are discussed and according to that recommendations are given. The
below report also include the strategy of promotional mix where two theories are discussed
product life cycle theory is discussed and new development theory.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
Segmentation, Targeting, Positioning ........................................................................................4
Segmentation basis and targeting strategies................................................................................5
Positioning strategies and perceptual maps to establish brand position. ...................................5
PART 2 ...........................................................................................................................................6
Marketing mix.............................................................................................................................6
Discussion about product range, price range, place as well as promotional mix, specific
theories, pricing strategies and distribution strategies. ..............................................................7
PART 3............................................................................................................................................8
Relationship Marketing...............................................................................................................8
Relationship marketing strategy used by organization, .............................................................8
PART 4............................................................................................................................................9
Recommendation for STP model................................................................................................9
Recommendation on marketing mix.........................................................................................10
Recommendations on relationship marketing...........................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing plan means the strategies which an organization makes to achieve objectives.
All management team takes certain actions so that they can reach their target market.The aim of
marketing plan is done by all the companies wther they have just started their business or
existing ones also. Marketing plans helps all the leaders to fulfill expectations. There are
different objectives of the organization so various marketing plans would be implemented by
companies so that they can earn more profit. Marketing plan should be properly implemented, all
strategies should be properly set by managers. The structure of marketing plan includes
objectives of plan, analysis by organization, targeting, swot analysis, strategies, budget set by
organization regarding how plan would be done, performance analysis, administration of those
strategies. While developing a marketing plan tehre are few facts that are considered like proper
documentation of all the strategies would lead to success in the organization. If any strategy is
made by company, then review should be taken so that it can be implemented properly, targeting
should be done effectively. Before making any plan or strategies right audience should be
targeted, objectives of organization should be clearly understood by all the managers because if
there will be any doubt then it won't lead to success. The below report is based on segmentation,
targeting and positioning, their strategies, marketing mix products range, price ranges, place as
well as promotion. The report is based on relationship marketing, their strategies, applications.
The below report is based on Nestle. It is the multinational food and drink company founded by
Henri Nestle in 1866. (Chernev, 2020)
PART 1
Segmentation, Targeting, Positioning .
Segmentation means dividing customers into various groups according to their
characterstics. Through this, it helps company to describe their products, benefits that are most
important for them. In case of Nestle, they segmented their company according to geographic
segmentation, demographic and behavioural. While doing demographic segmentation, their focus
was mainly on children especially regarding their cerelac product. According to behavioral
segmentation, the company provided many benefits to consumers as its usage rate was really
high. Targeting means among all the segments which are involved in process of segmentation
the best one is selected which will provide them more profits. In case of Nestle, they targeted

mothers both in urban as well as rural areas. .(Wood and Jobber, 2016) Positioning means to
develop all services and products different from competitors so that audiences gets attracted to
their organization. In case of Nestle, their social media marketing strategy was completely
different as they used a tagline of best start for healtheir future. They created M live where
experts of social media analyse brand presence on different channels. In this guests tells about
their experiences so through this M live do special and different for those guests.
Segmentation basis and targeting strategies.
In case of Nestle, demographic segmentation was the most popular segmentation. The
organization main audience target is mothers as well as young generation especially for their
most famous product KitKat. There were many targeting strategies that Nestle used like they
targeted young generation, mothers for their baby food products. (Hollensen, 2019) Targeting Mothers:- Nestle mainly focused on mothers as their main product was cerelac
which was a effective product for their kids.
 Customer budget:- Nestle always focused on customer budget so they set their product
pricing at affordable rate . They targeted both in urban as well as rural areas so they set
their budget according to that.
Positioning strategies and perceptual maps to establish brand position.
Nestle adopted various positioning strategies. These are explained as below:- Logo:- As compared to competitors, Nestle used a complete different positioning
strategy. Their logo was completely different from their competitors and it was accepted
by customers. . (Kotler and et.al, 2017)
 People differentiation :- Nestle has lage employees and are educated and given proper
training through which they attracted all customers very well.
Perceptual maps means a visual representation of the brand which is done in the form of a
graph and indicates the response which is given by market. Every consumer has their own
perceptions so those maps also tell about their perceptions. It also helps organization in
positioning all the strategies for a particular segment. Perceptual mapping is done in different
ways. It is also done for better positioning so that organizations can learnn about customers
interests as well as what is convenient for them. So, in case of Nestle, perceptual mapping was

done through which they were able to establish their positioning strategy and developed different
plans which were different from their competitors. (Sumarwan, 2019)
PART 2
Marketing mix.
This concept refers to the actions that a company takes in order to promote their brand or
their individual products also. It includes 4Ps of marketing; Product, Price, Place and Promotion. Product:- It means that the items which are sold by company. The products which are
sold by them should be of proper quality because it is the main thing while doing
marketing. Price:- It refers to the value of particular product and it all depends on segmentation,
targeting, production costs. Price should be set according to product, what are its feature,
according to its quality and so on. Place:- While doing marketing the main objective of business should be on location.
Marketers should sell their products at that location where consumers would be easily
purchase those products. (Perreault, 2018)
 Promotion:- For every product promotion is the most necessary thing which can be done
with the use of advertising, different schemes, rewards, word of mouth and so on.
Marketing Mix of Nestle is explained below:- Product:- Nestle owns around 30 large outlets and offers variety of products. It offers all
their services in the effective and efficent way. The product which Nestle is providing
includes kitkat, cerelec,maggi, milkybar which attracted young generation and all
mothers . Place:- In case of Nestle, it is spread across 110 countries. The company is located at
prime locations which determines their quality and are available in both rural and urban
areas. Price:- The organization has always targeted kids, young generation , mothers. It has
always provided services on excellent basis because hey are providing good services at a
fair price. They ensured that services should be provided according to prices they have
set. (Fotiadis, Mombeuil and Valek, 2018)

 Promotion:- The main reason behind most of the customers prefering Nestle because of
good promotion they are doing. They offers gifts, rewards.
Discussion about product range, price range, place as well as promotional mix, specific theories,
pricing strategies and distribution strategies.
There are two theories; product life cycle theory and new product development theory.
Product life cycle theory determines five stages that is from introduction till it reaches to the last
stage where product is declined from the market. According to the introduction stage, the
company resarch about a new product, develop it and launch in the market. When a product is
launched in market, the company faces a growth in their sales because customers get attracted to
new products. When new competitors enters the market sales are still growing but not at a fast
rate and finally decline stage comes where no sales are done. In case of Nestle, they introduced
new products as well as new services as they offered them variousproducts like cerelac, kitkat,
milkybar and so on. So, when they introduced new products for all the consumers their growth
reached at a good stage as mostly all mothers were prefering to choose their product only but
there were some competitors who entered the market and they were also providing same kind of
products so their sales were not growing at a fast rate.(McDONALD, M.A.L.C.O.L.M., 2016)
Though many competitors entered in food industry but Nestle never reached to a decline stage.
In case of the prices which they were taking for their services were fair. The company has
always targeted kids and mothers in both rural and urban areas. So, prices were not a major issue
for them as people were ready to pay that price because they were getting good services. Nestle
has always opened its brand at all locations due to which they are still at a growth stage and
never been to a decline stage. While doing promotion of their products, they used various
strategies like establishing apps through which people used to post their experiences and they
provided services according to those reviews and experiences. In case of new product
development theory, it means when an organization thinks about new ideas, innovates new
products, use advanced technologies to improve customer satisfaction. In case of Nestle, they
introduced new flavours in their products.

PART 3
Relationship Marketing.
It means maintaining relation with customers for a long period of time. The objective of
relationship marketing is to establish a strong connection with all consumers so that it leads to
growth in the business. It involves providing proper customer service so that people don't switch
to their competitors. Technology is also an important concept in relationship marketing as
through the use of Internet all details about consumers can be tracked by them. They also makes
use of social media sites through which they post about certain benefits, advertisements, services
and so on. While doing relationship marketing an efficient emotional connection should be
developed by organization as it helps to build trust among them, confidence is developed and a
effective customer service is given. It is an important concept for every organization because
while maintaining a good relation with customers, they prefer their organization only instead of
their competitors. Relationship marketing is good for the organization because it creates lifetime
value of customers, organizations don't have to spend much on advertising as customers are
happy for all the services they are getting by company. (Melchiorre and Johnson, 2017)
Relationship marketing strategy used by organization,
Relationship marketing strategies means plans or strategies that an organization makes to
maintain a long term relation with customers. It is the most important concept for an organization
because all customers expects that they should be treated in a proper manner and not in a rude
way. There are four types of relationship marketing strategies:- Train and promote effective sales support:- It means that support staff of sales should be
responsible for promoting all products so that customer satisfaction can be built. They
ensure that problems of customers are effectively solved by them. (De Pelsmacker, Van
Tilburg and Holthof, 2018) Open communication:- In today's world everyone expects that use of digital technologies
should be used so that consumers can easily contact through e-mails, chats and calls. Invest in right technology:- To improve customer satisfaction, it is necessary that
technology should be properly used. Those things should be used which is according to
their industry, built customer satisfaction.

 Boost your loyalty:- Almost every consumer expects that businesses should be loyal
towards them. Companies should provide consumers with rewards and benefits so that
consumers feel that they are important for them.
Nestle adopted relationship marketing strategy through various customer relation practices like
Nestle rewards, surveys for customer satisfaction, and also offers unique services to all
consumers. It considered strategic account management strategy through which they solve all the
problems related to consumer needs and interests. They also take reviews and feedback from
consumers and provided products with advanced technology and high quality services and due to
this customer satisfaction has increased which led to their growth in marketing industry.(Da
Silva and Mazzon, 2016) .Nestle also introduced customer satisfaction surveys through which
feedback is taken for each brand they are involved in. If customers are not giving reviews
regarding their experiences of trying their product then they are provided with the facility of
giving feedbacks through e-mails also. Nestle was also making use of Siebal Sales Software in
which the professionals who were working for sales was using oracle group sales and event
management system through which they were responding quickly to all the consumers regarding
their problems.
PART 4
Recommendation for STP model.
In case of Nestle, there are few recommendations which should be implemented by
them. As during segmenting the market, the organization basically focused on kids and mothers
but there is no complusion that their products would only be prefered by them only. So, they
should focus on other sectors also and implement strategies according to that. (Westwood, 2016)
There may be elder people also who would be trying their product so prices should be set by
focusing on them also and products should be introduced according to them. Nestle targeted
specific audiences so targeting strategies should be changed and they should start focusing on
other group of people also and according to that make marketing plan. While doing positioning
of their company they mainly used location in urban areas but they should built their brand in
rural area too. (Fursov, , 2017)

Recommendation on marketing mix.
While doing martketing mix, it was analysed that the products which were offered by
organization was mainly baby products or choclolate . So, it is recommended that only offering
these products should not be done by the industry as it is not necessary that only kids will
purchase their products. According to the services which they were providing, their prices was
also set according to that and due to those high prices every person living in rural area won't
prefer to purchase their product.In the food industry there are many competitors who offers
different products and are not located only on specific places but Nestle chose specific locations
only so it is recommended that they should also change their strategies regarding locations. The
promotional strategies which organization used was through social media only but every
consumer don't prefer promotion through applications and websites so they should change their
promotion strategies also as if some other competitors would use better promotional strategy
then consumers would switch. (Cateora, c Gilly and Graham, 2015)
Recommendations on relationship marketing.
Nestle maintained good relations with their customers and increased customer
satisfaction through their quality of products and their services. As main focus of company was
on mothers so they were maintaining good relation with them for a long period of time but the
same time if any other individual tries their product then it is recommended that they should
maintain good customer relation with them also and for a long period of time so that they don't
feel that organization is focusing only urban class people and are maintaining relation with them.
(Migliore,Howard and Gray, 2018)
CONCLUSION
According to the above report it is concluded that, segmentation, targeting and
positioning strategies should be properly set up by the organization. While doing segmentation
groups should be selected in a effective manner and according to the marketing plan. It is really
important that right audiences are targeted. Marketing mix includes product, price, place and
promotion so it is important that all products which company is offering are of good quality,
prices should be fair and set according to products, place should be selected according to the
consumers which will be effective for them so that they can purchase all products easily. Every

organization should maintain a effective relation with consumers and for a long period of time
and establish customer satisfaction.

REFERENCES
Books and Journals
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