Marketing Essentials Report: Marketing Plan for Nestle and Hershey

This report delves into the core principles of marketing, emphasizing its critical role in organizational success. It begins with an introduction to marketing and its significance, followed by a detailed comparison of Nestle and Hershey's marketing mixes, examining elements like product, price, place, and promotion. The report then formulates a strategic marketing plan for Nestle, incorporating situational analyses such as PESTLE and SWOT analyses, alongside STP (Segmentation, Targeting, Positioning) analysis to identify market opportunities. The report also outlines the marketing mix components for the new product launch. The conclusion highlights the importance of marketing for business growth and effective decision-making.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART-1............................................................................................................................................3
PART-2............................................................................................................................................3
Comparing the marketing mix of two organizations...................................................................3
Formulating marketing plan.........................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is an inseparable part of every organization. Businesses are successful only
because of effective use of marketing tools and techniques and understanding it properly. It is a
much broader terms which basically deals with selling the product and services of the
organization to the end consumers along with the objective of promoting the business and
enhancing the strong customer base. In this report, Nestle is taken as an organization, which is a
British leading health and wellness company, headquartered in UK. It's main objective is to
enhance the quality of life and contribute to the healthier future. This report presents upon the
role and responsibilities of marketing and its interrelation with other business functions. It also
covers the comparison between the marketing mix of two organizations in order to achieve the
business objectives and also evaluating the strategic marketing plan for the organization.
MAIN BODY
PART-1
Covered in PPT.
PART-2
Comparing the marketing mix of two organizations
Marketing mix is a tool that combines different elements that can influence the demand
for the product which is offered by the organization. It helps in achieving business goals
effectively. To get a clear picture a comparison is drawn between two organizations is drawn
below.
Elements of marketing mix Nestle Hershey
Product It has a large product portfolio
which are diversified into
seven categories, that is,
powdered and liquid
beverages, nutritional health
products, milk products and
ice creams, petcare, prepared
dishes and cooking aids,
confectionary and water.
Hershey sells its products
under five categories and each
of which serves a different
product line. For example:
chocolates, candy, mint and
gum, nuts and caramel etc. Its
ells its products with diverse
variety to choose from. It
products are highly

differentiated with features
that are not offered by
competitors.
Price The food and beverage
industry is growing very fast
and is highly competitive.
Price has the major role in
such situation. Nestle has used
different pricing strategies
ranging from affordable to
premium (Abdul-Hamid and
et.al, 2017). The target of
Nestle is the middle class
consumers. The pricing
strategy of Nestle changes
with respect to the
geographical market and the
product packaging. For
example, Nescafe and Maggi
are the leaders with higher
margin because the quality of
product is good and the
organization used prices
skimming method to grab
more profits.
It is premium brand and is also
higher in price as compared to
its competitors. It's target
customer segment is upper
middle class population and
foreign tourists. It currently
uses competitive pricing
policy. It also sometimes uses
option product pricing strategy
for some of its products where
it offers base price of the
product and additional price
for the other accessories
attached to it.
Place Nestle uses different
distribution strategy for its
products. One is
manufacturing to agents, then
to distributors, after which to
It is present globally and has
online presence as well. It has
a strong distribution network.
It has its products present over
500 retailers throughout the

retailers and then to
consumers. Second is
manufacturing to bulk buyers
and consumers. Nestle also
provides trade discount to
keeps its distribution channel
motivated.
country. It has partnered with
several service providers to
provide timely delivery of the
products.
Promotion The most widely known tune
is Nescafe tune which was one
of the best campaign of Nestle
(Hersheys Marketing Mix
(4Ps) Strategy. 2020.). In case
of Maggi, it focussed on the
moments consumers spends
with maggi, the campaign of
maggi story worked very well.
Other promotion tactics used
for other products like Kitkat
is 'Take a break'. It is also
present online and social
media sites to promote its
products. Hence, it has a very
high brand value.
Hershey uses different
channels to promote its
products. It uses television,
radio, newspaper, uses online
and social media sites to
market and promote its
products. It also conducts trade
exhibitions around the year.
Physical evidence Nestle's physical evidence is in
the form of its logo,
infrastructure, products
packaging and promotional
tools used to assist the
organization in its growth
strategy.
The organization sells its
products in different colours
and packaging that can be
easily identified on the shelves
provided by the organization.
It also has its online website
which is user friendly.

People The employees of the
organization are working
under different domains with
the common objective of
achieving the organizational
goals. These employees are
properly trained to serve the
customers effectively and
working with full motivation
to achieve growth and success.
The people working under its
sales team, are provided proper
training in persuading
customers to buy the products
(Davis Henry, 2018.). Also, its
customer service team guide
the customers in getting their
issues resolved.
Process Nestle is actively involved in
market research to grab the
opportunity as per the market
needs. Also, it has a system
installed that helps it in
making sure that product are
available at the stores.
The Hershey is having an
online delivery process in
which orders are placed online
which is shown in the
computer system, based on
which order is shipped through
service providers. It also keeps
on researching about the
market trends and needs.
Formulating marketing plan
Company overview
Nestle is multinational organization with global presence in more than 190 countries.
The three most demanding and iconic brand is Maggi, Nescafe and Kitkat. It's product range
has been growing larger with more healthier products. Currently, the organization is facing
tough competition in relation to marketing and research and development.
Mission and vision
The mission of Nestle is “Good Food, Good Life”, which aims to provide consumers
with the best and nutritional choices with its wide range of product categories.
The vision of Nestle is to be the leading health and wellness organisation delivering

improved shareholder value by becoming the preferred corporate citizen, employer and
supplier.
Objective
 To introduce a new nutritional drink product in the market with different age
groups.
Situational analysis
Before making a marketing plan, it is essential to analyse the internal and external
business environment which are discussed below.
Pestle analysis: It used in identifying the external factors affecting the business.
Political factors:
The emergence of Brexit has affected the plans of the Nestle. This will affect the
livelihood of production and food workers. Europe is its major market in terms of production
and profitability (Frue Kiesha, 2019). Nestle is discussing to replace its production facility from
Newcastle and York to Poland to get out of this volatile situation. These factors will affect the
production of the new product. So, it will have a high impact on the business marketing plan.
Economic factors:
The swings in the foreign exchange rates is the major issue faced by the Nestle. There
has been a decline in price of products due production and distribution difficulty. So, it is there
is moderate impact of this factor on the introduction of new drink product in the market if
proper planning and strategies are implemented.
Social factors:
Any big organization that operates on a larger scale gets affected by the minor change in
the trends. With the increasing concern over the use of canned products and pre-cooked food,
Nestle has conducted a research and development so that public can be convinced on a
scientific basis (Varma and Ravi, 2017). The organization is also rolling out custom made
Kitkat in UK to keep everyone covered. This will have a positive impact on the introduction of
new drink product and will less or no impact on the marketing plan.
Technological factors:
There has been an increasing technological advancement in the industry which helps in
dealing with the competition and in attracting more customers. Nestle has already implemented
various system that helps in tracking its products and can also check the nutritional information

of its products (Oraman and et.al, 2018). Thus, this factor is having low impact on the
organizations plan to introduce new drink product in the market.
Legal factors:
Nestle has faced some legal issues with respect to its unique chocolate designs. Apart
from this, the new sugar tax law imposed by UK in food and drink products to reduce the
excess sugar consumption, this needs to taken into consideration while producing the new drink
product. So, it is having moderate impact on the business.
Environmental factors:
The increasing environmental awareness among consumers has a negative impact on the
business. Nestle has entered in agreements with different NGOs to reduce the negative impact
of its business operation on the environment (Abdul-Hamid and et.al, 2017, ). This will have
less impact on the business operation and can help in successful implementation and
introduction of new drink product in the market.
Swot analysis: It is a business analysis tool that is developed to determine the internal
environmental factors that can have an influence on the introducing the new product in the
market.
Strengths
 Reputed brand image
 Extensive product portfolio
 Large and extensive distribution
system
Weaknesses
 Tough price competition from other
competitors
 Adverse impact of maggi noodle
controversy
 Much of its sales depend upon
Nescafe, Maggi and Kitkat
Opportunities
 Entering into venture with small start
ups
 Increasing the trend of online shopping
 Market penetration for nutritional
drinks
Threats
 Rising competition
 Changes in government regulations

STP analysis: This tool helps in identifying the most attractive market for the product.
Segmentation: Nestle should segment the new product on the basis of demographic factors. It
is available for all from small to adults and also for consumers more into sports and exercise
(Nadube and Didia, 2018). Also, it will target middle and upper class people.
Targeting: After identifying the segments, the next is targeting. Nestle will target the health
conscious consumers with similar needs.
Positioning: In order to position the product in the mind of consumers, Nestle should use social
media and television marketing sources to promote the new drink product. Also, should offer
various schemes to attract the customers.
Marketing mix
Product: It would focus on the quality of the product, labelling and designing.
Price: The price of the product would be little high as it is targetting middle and upper class
people (Saidani and Sudiarditha, 2019.).
Place: It will be initially introduced in UK as it is having a huge market which will give better
growth opportunity.
Promotion: For attracting the target customers, Nestle will focus on using social media
networking by highlighting the products benefits to different age groups.
People: Nestle needs to hire skilled employees having experience in launching new product in
the market.
Physical evidence: Nestle can get feedback about its products by asking consumers to share
their thoughts.
Process: Nestle should focus on using the process that is easily to use and is not harmful for the
environment. Consumers are much more interested in knowing this.
CONCLUSION
It can be summarized from above that marketing is very essential for every organization
in order to survive and grow as it plays numerous roles. A detailed description about the roles
and responsibilities of marketing has helped Nestle in identifying its importance and how it can
be beneficial in attaining the organizational goals. Along with this, the interrelation of different
organizational units with marketing has deepened the understanding which can positively
influence the business functioning. Also, the for introducing new product, an effective marketing

plan is very crucial which includes the complete market analysis that helps in effective decision
making. Thus, situational analysis and STP helps in successful implementation of marketing
plan.

REFERENCES
Books and journals
Abdul-Hamid, I. K., and et.al, 2017, June. Sustainability Marketing: The 7ps Perspectives. In 5
th International Conference on Contemporary Marketing Issues ICCMI June 21-23,
2017 Thessaloniki, Greece (p. 595).
Nadube, P. M. and Didia, J. U. D., 2018. Market targeting and strategic
positioning. International Journal of Marketing Research and Management. 8(1).
pp.32-45.
Oraman, Y., and et.al, 2018. WHAT EXTERNAL AND INTERNAL FACTORS AFFECT
ORGANIC FOOD SECTOR?. New knowledge Journal of science. 7(2). pp.33-44.
Perreault, W. D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Saidani, B. and Sudiarditha, I. K. R., 2019. Marketing Mix-7ps: The Effect on Customer
Satisfaction. Jurnal Pendidikan Ekonomi Dan Bisnis (JPEB). 7(1). pp.72-86.
Varma, G. R. and Ravi, J., 2017. Strategic Analysis on FMCG Goods: A Case Study on Nestle.
Online
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Product Successful. [Online]. Available
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important-role-of-marketing-in-making-a-product-successful/32289>.
Davis Henry, 2018. Nestle Marketing Mix Strategy 7Ps Analysis. [Online]. Available
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Frue Kiesha, 2019. PEST Analysis of Nestle: How politics and social culture affect its growth.
[Online]. Available Through:<https://pestleanalysis.com/pest-analysis-of-nestle/>.
Hersheys Marketing Mix (4Ps) Strategy. 2020. [Online]. Available
Through:<https://www.mbaskool.com/marketing-mix/products/17537-hersheys.html>.
Marketing and its relationship with other business activities. 2020. [Online]. Available through:
<http://www.sanandres.esc.edu.ar/secondary/marketing/page_14.htm>.
The Role of a Marketing Department. 2020.[Online]. Available
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