Marketing Essentials Report: Nestle and Cadbury Comparison

This report analyzes the marketing strategies of Nestle, a major confectionery company, detailing its roles and responsibilities within the marketing function. It explores key aspects such as pricing, promotion, branding, packaging, distribution, financing, customer service, and market research, all within the context of Nestle's organizational structure. The report further examines the interrelation of the marketing department with other departments like production, finance, HR, R&D, and customer service, highlighting the importance of coordination. A comparative analysis of Nestle and Cadbury is presented, focusing on their marketing mixes, including product, place, price, promotion, people, process, and physical evidence. Finally, the report provides an overview of Nestle's marketing plan, demonstrating the company's approach to achieving its business objectives. This report is contributed by a student and available on Desklib.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Important roles and responsibilities of marketing function...................................................1
P2 The roles and responsibilities of marketing in relation to the organisational context...........3
TASK 2............................................................................................................................................5
P3 Comparison between different organisation by applying the marketing mix in order to
achieve the objectives of business...............................................................................................5
TASK 3............................................................................................................................................8
P4 Marketing plan of Nestle.......................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing can be referred as the activities which are undertaken by an organisation to
promote and communicate the products and services to the customers in order to satisfy their
needs. The main motive of marketing is to increase the sales and revenue of the company by
influencing the customers to purchase the products. To complete this report, Nestle a
confectionery company is taken which is having the headquarter in Switzerland(Baker, and
Magnini, 2016). The company deals in wide range of products like chocolates, dairy products,
ice creams, pet foods and many more. The following project will describe different role and
responsibilities of marketing function and their interrelations with other functional unit of an
organisation. Apart from this it will also cover the differentiation of two companies on the basis
of marketing mix and marketing plan of an organisation is prepared in this report.
TASK 1
P1 Important roles and responsibilities of marketing function
Marketing refers to a process which deals in creating, transmitting and delivering the
products and services to the customers as per their requirement. The main purpose of marketing
is to influence the target market in order to maximise the profit of an organisation. The
marketing department plays a crucial role in the business and help them to achieve mission and
objective of an organisation. With the help of these activities present demand of the customers
can be known and future needs can be predict in order to satisfy the requirement of large number
of people. In context of Nestle, there are different types of role and responsibilities performed by
marketing manager. Some of them are explained below:
Pricing: It is defined as the amount which is paid by the customers in order to take the
services. The primary role of marketing department is to set the price of the product in such a
way which is affordable by every customers and also covers the production cost of the company.
Marketing manager of Nestle should set price of the product keeping in mind about different
competitors so that it can be most preferred among all (Campbell, Martin and Fabos, 2018).
Promotion: It includes some of the activities which are performed so as to attract ample
number of customers to buy the product and services of the company. The major role which
marketing department is to perform is in promoting the products of the company to the target
market. In order to promote the product of Nestle, the marketing manager of Nestle performs
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various promotional activities like advertisement in news paper, social media and many more in
order to promote the products.
Branding: It refers to giving a unique and distinct name to the product in a market that
could be easily identified. It is considered as one of the important role of marketing department
as after this only a product can be promoted. It is the responsibility of marketing manager of
Nestle to promote the brand image of the company by taking use of several promotion measures
(Cavusgil and et. al., 2014).
Packaging and labelling: Packaging refers to designing for the product where as
labelling refers to putting of desired information which is required for a specific product.
Packaging differs from product to product as some products are packed in bottles, some in plastic
bags, tin etc. In labelling a detailed information is provided about the product like
manufacturing date, expiry date, quantity etc. Thus it is the responsibility of marketing
department of Nestle to look after the packaging and labelling of the product so that customers
can easily take its benefit.
Distribution: It defines to the process through which products and services are delivered
to the end users. Distribution of product is very necessary so that customers can take benefits of
the products. It is foremost the responsibility of marketing department to deliver the right
product to the customers. The manager in the company is required to properly manage the supply
chain so that customers receive the services properly on time. Moreover proper modes of
transportation need to checked by the managers of Nestle in order to distribute the products to
the desired shops.
Financing: One of the responsibility of marketing department to make proper
communication with financial department of the company so that they are able to perform the
activities efficiently (Hair Jr and et. al., 2015). This practice will help to keep some of the fund in
the reserve so that the activities of marketing can be easily carried out. It is the role of marketing
manager in Nestle to make proper budget in advance so that present as well future cost can be
easily known.
Customer support service: As the product and services are provided to the customer so
it the responsibility of the manager to look after their needs. Moreover if customer is facing any
issue relating to the product then a proper solution need to be provided to them. The manager of
Nestle must look after the complaints of customers and address them properly as this will help
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the company in building a large customer base. Moreover through this service a proper feed back
of customers can be known and the area where there is a need for improvement can be identified.
Market research: Conducting a research in the market is very important as to know
about the demand of the customers. Major responsibility of manager lies in the conduct a
research so that demand and the changes in technology can be known (Kladou and et. al., 2016).
Marketing manager of Nestle should execute research over target market in order to supply
information to the production department so that they able to produce the products accordingly.
This will help company in satisfying more number of customers and assist in improving profit
and sales.
P2 The roles and responsibilities of marketing in relation to the organisational context
Marketing is defined as the process of creating the relationship with the customers by
supplying the best products and services of the company. It helps in creating the awareness of
products in the minds of customer. A single department alone cannot perform all the function
properly and for this a interrelation with department are very necessary. Below are some of the
points that describes the interrelation of marketing function with other section of Nestle:
 Marketing and production department: There is a very close relationship between
both this department as they both are important for enhancing the performance of an
organisation. The main function performed by production department of Nestle focus
more on creating new products, managing both quantity as well as quality. The
marketing department function is to concentrate on satisfying the basic needs of
customers. So, it the role of marketing manager of Nestle to proper coordinate and
cooperate with production department so that they capable to offer best products and
service as per the needs of customers. Marketing department provides information
regarding needs and preferences of customers to production department so that products
can be manufactured accordingly.
 Marketing and Finance department: Both these departments of Nestle are interlinked
with each other. The main role which is required to be perform by Finance department is
proper planning and organising the funds of the company. It is the duty of financial
manager to analyse the needs of every department and provide fund to other department
as per their requirement (Lane, 2015). Also marketing department performs various
promotional activities so as to promote the product of the company and for that they
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require large amount of fund. So, there requires a complete coordination and interaction
of marketing and finance department so that promotional activities for the organisation
can be effectively performed. Marketing managers of Nestle must communicate the
activities to the finance department and arrange fund for the same so that activities can be
performed properly.
 Marketing and Human resource department: Both these departments of Nestle shows
a close relationship with each other. As the main function of human resource department
lies in recruiting the best person who is most capable for the job. By selecting the most
capable person, goals and objective become very easy for the company to achieve
(Pappas, 2017). So there is requirement of proper coordination and communication
between both these departments so that HR manager can recruit the candidate that can
contribute towards the growth and success of company. Marketing department is
responsible for telling about the vacant position in the company and HR department
ensures availability of skilled candidates.
 Marketing and research and development department: Both these department in
Nestle shows a close relationship with each other. It is the role of R&D department to
conduct various surveys and collect the information about the requirement of customers.
Then, this information is further used by the marketing department of company to
formulate the strategies so that best services can be provided to the customers according
to their needs. The coordination and cooperation among both these department is very
necessary as through this they able to gather complete information about the targeted
market. The information provided by R&D department also assist the marketing manger
to use the promotional tools accordingly.
 Marketing and Customer service Department: Both these department of M&S are
interrelated to each other. The main role of customer service department is to file the
complaint or any issue faced by the consumer while using the product. These department
is only responsible for addressing the problem. Further the information is then
transferred to Marketing department which is responsible for taking feedback of the
customers properly for the products. (Pike, 2015).
Thus, from all the above mentioned point, it can be very clear that there exist a strong
relationship between marketing and other department of an organisation. Proper coordination and
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communication is very necessary in order to preform the activities properly with the available
sources. The interrelation of departments with each other helps in formulating some of the
strategies that contributes toward the success and accomplishment of the goals.
TASK 2
P3 Comparison between different organisation by applying the marketing mix in order to achieve
the objectives of business
Marketing mix is defined as the use of tactics through which a company is able to
promote the products and brand of a business enterprise . The primary objective of marketing
mix is to avail the right product to right customers (Pike, 2016). Apart from offering the services
to the target customers, it also help the company to formulate the strategies that help in success
of the company. The marketing mix consist up of 7P's or seven elements which are product,
place, price, promotion , people and physical evidence. The marketing mix of every company
differ from each other. Below is the comparison of Nestle and Cadbury on the basis of marketing
mix.
BASIS NESTLE CADBURY
Product Nestle is one of the largest
food company in the world. It
has its own 8000 brands and
provide wide range of product
worldwide. It offer various
type of products like
chocolates, dairy products,
ready to cook food etc. One of
the most famous product of
Nestle is Maggie and is sold
all over the world.
Cadbury is one of the biggest
competitor of Nestle which
offers various products in
different categories like
chocolate, milk additives,
biscuits, cake bars etc. One of
the famous product of Cadbury
is dairy milk which is most
famous all over the world.
Place The 90% of sales of the
company is generated through
the European country
(DPurvis, 2015). The channel
Cadbury is offering the
product in more than 200
countries all across the world
because of the worldwide
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followed by Nestle for their
distribution is FMCG. First
the products are transferred
from factories to warehouses.
There they get stored and then
send to retailer that make them
available at different shops.
Maggie and Nescafe are the
high demanded product of the
company and for this reason,
Nestle is able to move to other
foodstuffs at the market place.
name and effective channel of
distribution. The products of
cadbury are available at both
rural as well as urban area.
Price Price of Nestle product is
decided according to the
quality of product. For
instance, Nescafe Coffee and
Maggie prices are high as
compared to other competitors
As their quality and taste
cannot be compared by anyone
and for this reason, lot of
customers are attracting
toward the products. The
pricing strategy followed by
Nestle is competitive pricing
strategy.
The price set by the Cadbury is
according to the size, quantity
and quality. For example the
price of Bournville is high as
compared to five star, dairy
milk etc. to cater the need of
other segment. The company is
using economy pricing in order
to attract price conscious
consumers ( Rancati, Gordini,
and Capatina, 2016).
Promotion The company always use
distinct marketing ideas that
make their product famous
among all. The main
There are various promotional
tool used by Cadbury in
promoting the products. Some
of the strategies used by the
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promotional strategy used by
the company is in advertising
over TV, online adds etc.
Nestle make use of certain
catchy lines which is attached
to the value of products. Apart
from this, the company can
also launched tune for Nescafe
which is famous among all the
people all over the world. The
Tag line for Nescafe is “good
food good life”
company includes TV, online,
radio, posters, newspapers etc.
The company is also making
use of certain tag lines that add
value to taste of the customers.
People Nestle provide regular training
to their employees and make
them aware about the
objectives which need to be
achieved in order raise the
success of the company
(Scarborough, 2016).
Employees are trained in such
a way so that they able to
address problems and queries
of the customers easily.
Employees in an organisation
supports in the growth of the
company and for this Cadbury
provides adequate training to
their employees so that the
individual as well as overall
performance of the team can
be improved.
Process Nestle lays a major emphasis
on the customer services and
is customer oriented. The
company pays more attention
in providing training to the
employees so that they can
easily deal with customers.
The process followed by
Cadbury is transferring the
produced goods to the
wholesaler and from their to
the retailers and at lastly send
to the outlets where the
products of Cadbury as sold.
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Physical evidence Nestle, because of their
dealing in coffee has
established cafes at so many
places. These cafes have well
managed sitting arrangements,
logo of Nescafe, proper dress
code of the workers which
creates a good physical
evidence.
The product of Cadbury are
available at the front desk off
many shops as chocolate of
this company is famous among
all. Further the logo and Poster
of these company are found on
road side and in the so many
restaurant which able to create
their physical evidence.
TASK 3
P4 Marketing plan of Nestle
Marketing plan refers to a written written document that outlines the effort of the
company which it is going to execute in the upcoming year. In other words, it can be said as the
overall plan of the business (Smith, 2014). It can be of made of coming year, quarter or month. It
also tells about the current holding position of the company. Marketing plan of Nestle is
mentioned below:
Executive Summary:
Nestle is one the biggest multinational food and drink company that deals in large
number of product range like medical food, baby food, coffee, chocolates etc. The company was
founded by Henri Nestle in the year 1905 and is having the headquarter in Switzerland. Nestle at
present operates in around 189 countries and is having approx 447 factories. The company is
planning to expand their business by launching of the new product i.e., Sugar free chocolates.
The main reason to expand the product in this sector is increasing day by day the issue of health
and diabetes. By entering into this segment, company is able to increase its sales and
profitability.
Vision and Mission:
Its Vision is to become a leading brand which all values and love. The mission of Nestle
is Good food, Good Life to provide customer with such a great taste that is unbeatable by other
company.
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Objective:
One of the primary objective of the Nestle is to widen the category of product by
introduction of brand-new product i.e. sugar free chocolates. For this Nestle is required to adopt
SMART objective which is specific, measurable, attainable, realistic and time bound.
 Objective of Nestle is to acquire 20% of market share by 2020.
 Another objective of the organization is to increase the sale by 15% in the year 2020.
STP Approach:
STP refers to the common marketing tools that help in formulating of the marketing
strategy. It is a tool which defines about the brand and product in the market. Below is the STP
of Nestle:
 Segmentation: It defines as the activity of dividing unit of people with similar interest
toward the product. Segmentation of Nestle is done under three categories i.e.
demographic, geographical and psychological. Demographic segmentation includes age,
lifestyle,social class, income etc. Geographic covers cultures and countries.
Psychological includes attitude, awareness, wants and needs.
 Targeting: It defines as the process of breaking of market into segment that are
beneficial for certain group of people. Nestle is most famous brand among the all and is
loved by all the age group. The new product which Nestle is launching is sugar free
chocolates and the targeted group is from child to infinite age group.
 Positioning: It defines as the procedure of giving identity and positioning of product in
the minds of customers (Zolkifly and Baharom, 2016). Nestle being one of the most
famous brand among food industry will take help of advertisement and other
promotional ideas to promote the brand. Company will position its new sugar free
chocolates by advertising the healthy benefits.
SWOT Analysis:
It is a framework that helps an organisation to evaluate the strength and weakness which
are internal to an organisation and on the other hand threat and opportunities which are external
to an organisation. Below mentioned is the SWOT analysis of Nestle:
Strength
 It is one of the most recognizable brand
in the world.
Weaknesses
 Earlier the controversies were faced
with the product Maggie and this has
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 Nestle is having a strong geographic
presence and because of this, it is able
to earn high amount of revenue.
 Nestle has highest product portfolio
which means it has more than 8000
brands.
affected the brand name of Nestle.
 As now the awareness among the
customers have increase a lot which led
to the decline in the consumption of
chocolates.
Opportunities
 Company can increase distribution by
expanding into the new market or in the
rural areas.
 As the level of income of people is
increasing which result in increasing
demand of the product.
Threat
 The production of company is highly
depended upon the water usage and
now a days a measure issue is faced as
overall country is facing the water
scarcity.
 Increasing the number of competitors in
food industry which are selling similar
type of products.
Budget:
It defines as an statement which tells about the estimation of income and expenditure
during the specific time. There are two type of budget namely short term budget and long term
budget. Below mentioned table shows the budget plan of Nestle:
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Form the above table of budget, it can be interpreted that for launching new product i.e.,
sugar free chocolates, Nestle requires the minimum investment of about 13000£.
Monitoring and Controlling:
In this step, marketing manager monitor all the activities and ensure that these are
performed in appropriate manner. If any deviations found, then they take control measures so
that all the activities can be run effectively and firm can be able to attain high profits and
improved productivity.
CONCLUSION
From the preceding section of the report, it can be concluded that a major role is played
by marketing in promoting the product and services of an organisation. Practice of marketing is
used by every organisation so as to create awareness among the consumer about the product.
There are various roles and responsibilities which are required to be properly perform in the
company in order to attain the highest growth. The marketing department cannot be performed
alone, it requires to coordinate with other departments of organisation. Further the marketing
plan plays a great role in providing the detail analysis of the company which helps in achieving
its goals and objectives.
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REFERENCES
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