Marketing Planning for Snack Food Operation by Nestle

This report discusses the marketing plan for a new snack food operation by Nestle, including objectives, segmentation, targeting, positioning, PESTLE analysis, SWOT analysis, marketing mix, budget, and monitoring and evaluation.

Marketing Planning

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................3
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Objective .....................................................................................................................................4
SEGMENTATION, TARGETING AND POSITIONING. .......................................................4
PESTLE analysis ........................................................................................................................5
SWOT analysis ...........................................................................................................................6
MARKETING MIX ....................................................................................................................6
BUDGET ....................................................................................................................................7
MONITORING AND EVALUATION.......................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
In the report marketing plan of snack food operation for nestle will be prepared in which
objective will be defined, segmentation, targeting and positioning of the new sector will be done.
External environment analysis will be taken into consideration. Also the strength, weakness,
opportunities ad threats will be identified. Marketing mix will will also be undertaken. The
budget to execute the plan and monitoring will be done for the same.

INTRODUCTION
It is the process of making a strategy by analysing the market situation and collecting
information, seeking market opportunities, forecasting and establishing premises, selecting the
target market and implementing the strategy. Nestle is a Switzerland based multinational food
company which was founded in 1866 by Henri Nestle. In the further report marketing plan for a
new operation which is snack food operation will be put light upon.
MAIN BODY
Objective
Objectives are the defined goals and provide clear direction of for the further actions for
marketing. The objective of Nestle is to enter into new segment of operation which is snack food
operation and to open 15 new stores in major cities in a span period of 2 months which may be a
Franchisee or a retail distributor. The objective of this new snack food operation is specific,
measurable, achievable and time bound. Also the objective is to cover whole Vevey and provide
snacks such as little cupcakes, Cheese fondue, mini pancakes, different varieties of Maggie,
different varieties of sandwiches, rosti, muesli etc.
SEGMENTATION, TARGETING AND POSITIONING.
Segmentation is the process of dividing the market into smaller parts or segments based
on the characteristics or interest or location. There are basically four types of segmentation
demographic, psycho graphic, behavioural and geographical.
Nestle has segmented its market for this snack food operation based on demographic and
geographical. They have segmented the market based on age. The company has also segmented
based on geographic or locational based segmentation as they have covered their stores locally.
They segmented the market by doing market research and analysis of customer data.
Targeting is a strategy that is implemented to focus or concentrate on a specific group of
customers. Proper segmentation is necessary to target the right audience (Camilleri, 2018). The
people who are teenagers and adults that who are in between the age of 16 to 35 as the people
that come into this brackets prefer snacks. They have covered the major cities of Switzerland to
expand their new snack food operations. They targeted the customer based on demand analysis.

Market positioning is n exercise that is used to establish the image of the company into
the minds of consumers. Nestle has positioned their snack food operations for foody people and
people who love to try new things. They have also positioned itself as the stores for food
bloggers. They position their product by competitor analysis and internal analysis.
PESTLE analysis
Pestle analysis is the tool used to analyse external or macro factors that impact the
functioning of the new snack food operation. It gives a broad picture of the industry and helps to
make strategy accordingly.
Political factor – These factors include the political stability, tax policy, environment
regulations, trade restrictions etc. All these factors if not favourable can impact the new snack
food operations in a negative manner (Perera, 2017).
Economic factors – These factors are disposable income of the people, unemployment
level, interest rates and trade tariffs etc. As high disposable income of the people is beneficial for
this snack food operation. Also unemployment leads to employment after establishing the store
as people will get employment.
Social factors – These factors are buying habits, emotional needs and behaviour of the
consumer. It also includes the trends and brand preferences of the people and these factors do
impact the functioning of the business. If these are favourable then it will positively impact the
operations of the snack food.
Technological factors – Factors like innovations in the market launching new varieties
of snacks as per the taste of the people do impact the business. Using new technology to make
snacks that attracts customers all these factors impact the business.
Legal factors – Legal factors like different laws like employment laws and competitive
regulations and many other standards which has to be taken into account to start the business.
Environment factors - It refers to the ecological and environmental aspects of the
business which re weather, climate, waste management, eco-friendly aspects which must be
taken care off when operating the business as Nestle can use eco-friendly serving plates and
packaging material which attracts customers by the innovative presentation.

SWOT analysis
SWOT analysis is the technique which is used to identify the strength, weakness,
opportunities and threats of the business. It is a type of strategic planning technique to evaluate
the companies internal factors.
Strengths
Nestle has an unmatched R&D capabilities and centres.
It has a great brand presence and image.
Strong geographical presence and with that they also concentrates on environmental
sustainability efforts which makes them more attractive.
Weakness
The company was also into the aligations of using water at a very great amount.
They have also used child labour and other unethical practices (Sarsby, 2016).
As there are many brands under the same name therefore sometimes it creates conflicts of
interest and brand structure.
Opportunities
The new snack food operations can include the provision of healthy breakfast and snacks.
The changing trends of taking snacks and also the increasing disposable income results into high
demand of these snacks stores.
Venturing small food start ups under their established brand name.
Giving the option of online delivery and payment methods can expand their market.
Threats
As opening new franchisee and stores needs more natural resources like water and there is
scarcity of it. Also increasing pollution and climate change is a threat to Nestle for opening new
snack food operations.
Rising competition is also a threat as there other brands and stores present in the market like
Snack vending machine, fabulous etc.
Increasing prices of commodities is also a threat as this increases the price of the snacks and
ultimately leads to decrease in sales.
MARKETING MIX
Marketing mix are the four areas of focus that the company uses to promote its brand.
Nestle uses this mix to promote its new snack food operations.

Product mix – Product is the item which the company sells to the customer to satisfy
their needs and wants (Wu. and Li, 2018). It includes factors like branding, packaging, labelling,
after sales services and varieties of items offered. Te product mix of this new operations includes
snacks such as little cupcakes, Cheese fondue, mini pancakes, different varieties of Maggie,
different varieties of sandwiches, rosti, muesli etc.
Price mix – Price of items or snacks depends of the quality and cost involved in
producing the snacks. The company focus to keep the price reasonable as the company is
offering snacks and people prefers it in between meals usually (Išoraitė, 2016). They use price
skimming to launch snacks as they focus on quality more.
Place mix – The place mix includes the the distribution channel and network and
planning to open these new snack food operations in major cities of country as per the taste and
preferences of the customers to increase the reach of their new launch and also to enhance the
brand awareness.
Promotion mix – To promote the new snack food operations they are using online
platforms and social media platforms that too in different languages as per region (Pogorelova.
and et.al., 2016). To promote these new operations various ad campaign to be floated with
tempting snacks.
BUDGET
A budget of $US75K is being allotted for these new stores which will include all the
infrastructure, water bill, electricity expenses, advertising expenses and all the raw material
needed.
Infrastructure – $US32K
Raw material - $US19K
transportation - $US9.5K
adverting - $US8K
electricity, water and other expenses – $US6.5K.
MONITORING AND EVALUATION
For monitoring and evaluating marketing plan various key performance indicators are examined
such as:

Revenue generation – If the revenue from the new stores is greater then it is also a great
indicator of successful marketing plan.
New customers – This is also a great indicator to monitor and evaluate the marketing plan as
customers increases because of the quality of the snacks and also word of mouth publicity.
Return on investment – It is an indicator to determine the success and failure of marketing plan
by subtracting the initial value of investment from the final value of the investment which is
equal to the net return. After this dividing this number by the cost of investment and finally
multiplying it by 100.
CONCLUSION
It can be concluded that to launched new snack food operations Nestle firstly establishes
SMART objectives. Then they segmented, targeted and positioned their new snack food
operations as per their objective. To undertake the business they undertook both internal and
external analysis which are Pestle and Swot. To promote their new snack food operations they
used the marketing mix tools. Lastly the budget to execute the plan was identified and
monitoring and evaluation was done.

REFERENCES
Books and Journals
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Išoraitė, M., 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Pogorelova, E. and et.al., 2016. Marketing Mix for E-commerce. International journal of
environmental & science education. 11(14). pp.6744-6759.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
Wu, Y.L. and Li, E.Y., 2018. Marketing mix, customer value, and customer loyalty in social
commerce. Internet Research.