HI6008 - Analysis of Nestle's Marketing Strategies in Australian Food

This report provides an analysis of the marketing strategies employed by the Australian food industry, with a specific focus on Nestle. It examines the impact and implementation of these strategies, including cost leadership, differentiation, and focus. The report identifies research gaps related to performance improvement and differentiation management. It uses an explanatory research design with both qualitative and quantitative approaches to investigate the relationship between marketing strategies and industry growth, addressing questions about the types of strategies used and their overall impact. The research aims to determine whether there is a direct relationship between marketing strategy and firm growth, considering both positive and negative impacts on the food industry.

HI6008
ASSESSMENT 2
Marketing strategies used by the food industry of Australia
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Table of Contents
Introduction................................................................................................................................3
Project Objectives......................................................................................................................4
Project Scope..............................................................................................................................5
Literature Review.......................................................................................................................6
What is marketing strategy.........................................................................................................6
Impact and implementation of marketing strategy on food industry.........................................6
Types of strategies used by Nestle.............................................................................................7
Research Gap.............................................................................................................................8
Research Question and Hypothesis............................................................................................9
Research Design and Methodology.........................................................................................10
Questionnaire...........................................................................................................................11
Research Limitations................................................................................................................12
Time Schedule..........................................................................................................................13
Conclusion................................................................................................................................13
References................................................................................................................................14
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Introduction
It is very necessary for each and every organisation to have a proper marketing strategy that
supports them in achieving desired goals and objectives in an effective and efficient manner.
It also assists in gaining competitive advantage in the market full of competitors. Marketing
strategy is considered as the approach of long-term that supports business association in
attaining desired aims and goals for the purpose of achieving success. This report is being
based on the ‘Marketing strategies used by the food industry of Australia’. The food
industry of Australia is growing up in a fast speed that by making use of the suitable
strategies of marketing which will make an increase in the business operations of the
industry. The chosen food industry is the ‘Nestle' so as to make a proper explanation. In this
assignment, there will be a description of the objectives as well as the scope of the project.
The literature review will be made to provide justification of the topic, gaps, and the
problems. Research methodology, questions and time schedule will also be presented so as to
draw the valid conclusion.
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Project Objectives
Each and every business activity is being done for the purpose to achieve various aims and
objectives for which the company operates in order to determine success. For this research
report, various project objectives are being made that will make analysis in regards to the
impact of strategies of marketing on the Australian food industry. The main objectives of the
research report are being defined as:
 To analyse the Impact of marketing strategies on the food industry of Australia
 To identify how marketing strategies are implemented for the growth of the food industry
 To identify types of strategies used by Nestle
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Project Scope
In this assignment, project scope of the report is having a wide nature as the strategies of
marketing is one of the major as well as the common component being used by each and
every company that supports in attaining objectives and goals so as to draw valid conclusion
and understanding. Strategies that are used for marketing and promotion are the significant
forces that support in increasing the sales as well as profits of the company and also to have a
competitive advantage in the market full of competition. Different types of marketing
strategies are used by the Australian food industry that supports an increasing number of
customers. The chosen company i.e. Nestle is the largest confectionary manufacturer in
Australia. The organisation is very successful in terms of market share and profit and is
making use of marketing strategies to have effective survival in the market full of
competition.
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Literature Review
What is a marketing strategy
As per Galbraith‐Emami and Lobstein, (2013) strategy of marketing is being defined as the
logic of marketing with the help of which units of business hopes to make the achievement of
the various objectives of marketing. It is defined as the endeavour by an association to
distinguish itself from the various competitors by making use of corporate strengths to satisfy
requirements and needs of the customer in an environment. For the company, targeted
customers are considered as the centre of the strategy of marketing. According to Grunert and
Traill, (2012) food industry makes identification of the entire market which they want to
serve and then divide into various small segments. After that, the selection of most promising
segment is being done and they are being focused fully. The marketing mix is being defined
by making use of mechanisms like product, place, price, and promotion. The industry also
gets engaged in marketing planning, control, implementation, and analysis so as to make
identification of the best marketing mix. These activities are being used by a company to
adapt and watch environment marketing.
In the words of Dietz, (2013) in a given environment, a strategy of marketing deals
effectively with the three forces like the corporation, customer, and corporation. These forces
are dynamic and are living with the objective to make a triangle of strategy. If the
requirement of customers does not match requirements of a corporation then association may
be at risk. There is a requirement of coordination among objectives and needs of corporation
and customer for the effective relationship. This type of coordination will be relative if the
better match is being provided by competition; there will be a disadvantage for a corporation.
In other words, it can be said that matching requirements among corporation and customer
should not be just positive; it should be stronger and better than the coordination among
competitor and customer.
Impact and implementation of marketing strategy on the food industry
As per Armstrong et. al., (2015), strategies of marketing help Australian food industry in
several manners, it allows food organisations like Nestle to make an establishment of the
powerful image and reputation in a competitive market. It also supports organisations in
making increment in the loyalty and trust of the customers and also provides with the
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opportunity to make an entry in the untapped marketplace. On the other hand, Berthon et. al.,
(2012) explains that strategies of marketing and promotion also make a negative impact on
the overall performance of the business organisation if not implemented in a proper manner.
Once there is an implementation and formulation of the marketing strategies, they cannot be
controlled by the marketer and this considered as the main disadvantage of the strategy of
marketing. Also, there is an investment of so much money and time for the formulation of
systematic marketing strategies and plans.
According to Morgan et. al., (2012), one of the major marketing functions being used by the
food industry of Australia is the market research that supports them in analysing latest food
trends as well as the needs of a customer. Adoption, as well as an implementation of the
marketing strategies, help in the development and growth of the food industry. With the
support of gathered information and data, necessary changes can be made in Nestle in their
strategies, policies, services, and products. In the views of Hassan et. al., (2013), research
market can support organisation to have an effective survival in the competitive marketplace.
It is very important for the business to have a proper analysis of the external environment so
as to implement marketing strategies as per the competitors which will support company in
gaining competitive advantage.
Types of strategies used by Nestle
As per Papadopoulos and Heslop, (2014), two different types of competitive advantage are
being possessed by a firm i.e. differentiation and low cost. The importance of any weakness
or strength used by a firm is basically a function of its effect on differentiation and relative
cost. These two things are being derived from the structure of the industry. Two different
kind of competitive advantages being related with the scope of activities which is attained by
firms for attaining them leads to three generic strategies for attaining high performance in the
industry: focus, differentiation and cost leadership.
Cost Leadership: According to Grunert and Traill, (2012) Nestle is pursuing a strategy of
cost leadership and have an aim to be the low-cost producers in an industry. There is a broad
scope of the company, it can serve various segments of the industry and can also make
operations in the related industries. The cost advantage sources depend and vary as per the
structure of the industry. They can be preferential access to raw material, economies of scale
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and propriety technology etc. Heslop, (2014) said that if the firm can sustain and achieve
overall leadership of cost, then they will be above average performer in an industry.
Differentiation: The second sort of strategy as per Berthon et. al., (2012), is differentiation.
As per this strategy, the firm makes a function to be different in the industry along with
various dimensions that are being valued by the buyers. It makes a selection of the one or
more attribute that is being perceived by buyers of the industry as a unique and important
position to meet the requirement. It is pleased with the premium price for its uniqueness.
Focus: The third strategy is the focus and this strategy is different from the others as the
narrow competitive segment is being chosen in the industry by the firm. By making use of
this strategy for the targeted segment, the focuser achieve can attain competitive advantage.
There are two variants of the focus strategy, differentiation focus and cost focus. As per the
cost focus, firms achieve cost advantage in the targeted market while in the differentiation
focus; differentiation is being adopted by a firm in the targeted segment.
Research Gap
In this assignment, there is the discussion of the various marketing strategies that are being
used by the Australian food industry for the increment in the performance of the business.
With the support of the marketing strategy, more appropriate research of the market can be
done so as to make identification regarding needs and requirements of the customers as well
as different strategies used by the competitors. The first gap in the research which has been
identified is that there is no discussion regarding the improvement of performance and sales
through marketing strategies in the food industry. There is very little research that focuses on
the management of productivity as well as service quality. Another research gap in the study
is that the explanation is also not there for the management of the differentiation by the
company in the market for achieving desired objectives to increase goodwill and reputation.
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Research Question and Hypothesis
There are two kinds of questions being made in the research like:
Primary question
1. To make a determination of the marketing strategies used by food industry?
Secondary question
1. What types of marketing strategies are used by Nestle?
2. What is the impact of marketing strategy on growth of food industry?
Hypothesis:
The major hypotheses that are considered in the research are:
H0: There is a direct relationship between marketing strategy and growth of the firm.
H1: There is both negative and positive impact of marketing strategies on the food industry.
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Research Design and Methodology
In this research paper, there will be explanatory research design. This kind of design is being
used to make recognition of the various causes as well as the impact of the relationship
between independent and dependent variables. The main idea to use this kind of research to
acknowledge a relationship with the support of previous researchers and hence the
clarification and hence the purpose of the research is to make a clarification.
There are two approaches that are being used in the research methodology and they are like
the Quantitative and Qualitative approach that is being defined as follows:
Qualitative Approach
As per this research, a proper investigation is being done. It is being used to collect
understanding regarding opinions and reasons as well as fundamental motivations. As per this
approach, better insights are provided regarding the problems to make the development of
ideas and hypotheses to conduct a potential quantitative investigation (Neuman, 2013). There
is an involvement of inductive approach where data is accumulated by an investigator and
then clarifications are made.
Quantitative approach
As per this kind of approach, phenomena are being estimated from a large number of persons
by making use of survey method. In this method, a proper process is being followed like:
statement of research issues, the purpose of research, review of the literature, formulation of
variables and hypothesis, selection of design of research, identification of the sample, a
collection of data, analysis of data, findings and conclusion (Neuman, 2013).
Sampling and sample size
In this assignment, non-probability sampling is being used and the sample size of 50
respondents is taken.
Reliability and validity of data
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The collected data and information is reliable and valid and is gathered from the trusted
source. The reliability of data should be ensured by utilizing application of statistical
technique.
Questionnaire
1) Does the company make the development of the marketing strategies for promoting its
products and services
Options Responses
Yes 30
No 20
Analysis: The responses showed that it is imperative for the companies to implement
effective marketing strategies for the promotion of products and services. Majority of people
have the opinion that marketing strategies enhance market position.
Responses
Yes
No
2) How are business plans of the company formulated?
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Responses
On the basis of
market research
On the basis of
technological
advances
Options Responses
On the basis of market research 20
On the basis of technological advances 30
Analysis: The business plans of the company are formulated on the basis of technological
advances as well as market research. The company framed the policies to conduct the market
research effectively through technological advances.
3) What kind of marketing strategy is being used by the organisation?
Responses
Porter’s generic
strategy
Marketing Mix
Options Responses
Porter’s generic strategy 30
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