Marketing Essentials: Nestle Malaysia Marketing Plan & Strategies

This report provides a comprehensive analysis of Nestle Malaysia's marketing plan, strategies, and activities in sustaining its market leadership, with a focus on the Nescafe Menu product. It includes a detailed examination of the current marketing situation using PESTEL analysis, marketing environment assessment, and marketing strategies applicable to the company. The report also explores the marketing mix and 4Ps elements, such as people, place, product, price, promotion, physical evidence, and processes. It highlights strategies like collaboration with other companies and the formation of Strategic Business Units (SBUs). Market segmentation is analyzed across geographical, demographic, psychographic, and behavioral areas. The report concludes with recommendations for Nescafe to differentiate its products and expand into new markets, offering students valuable insights into Nestle's marketing approaches and strategies.

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Marketing essentials: A case of Nestle Malaysia
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Executive Summary
The report has examined Nestlé’s marketing plan, the company’s activities in sustaining
its leading position in the current market and product marketing including its new product
Nescafe Menu. The report has also comprehensively analyzed the current marketing situation
including PESTEL analysis, marketing environment, marketing plan and the marketing strategies
applicable to the company in dominating the current market. Marketing mix and 4ps elements
including people, place, product, price, promotion, physical and processes are also examined.
Different strategies like collaboration with other companies, forming of SBUs and armies has
enabled the company survive competitive environment. The market segmentation of the
company is divided into t geographical area, demographic area, psychographic area and
behavioral area. The paper concluded and recommended that Nescafe need to differentiate its
products and expand to other countries with potential buyers but limited opportunities to access
the products.

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Table of Contents
Executive Summary.......................................................................................................................2
Introduction....................................................................................................................................5
Background of the Company........................................................................................................5
Briefing Document.........................................................................................................................6
PESTLE Analysis........................................................................................................................6
Political Factors........................................................................................................................6
Economic Factors.....................................................................................................................7
Social Factors...........................................................................................................................7
Technological Factors..............................................................................................................7
Legal Factors............................................................................................................................8
Environmental Factors.............................................................................................................8
Marketing Mix.............................................................................................................................8
B2B Markets................................................................................................................................9
Marketing Plan of Nestle.............................................................................................................10
Purpose and Mission................................................................................................................10
Situation analysis......................................................................................................................10
Marketing Mix 7 P’s..................................................................................................................11
People.....................................................................................................................................11
Product....................................................................................................................................11

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Price........................................................................................................................................11
Promotion...................................................................................................................................12
Place...........................................................................................................................................12
Process....................................................................................................................................12
Physical Evidence...................................................................................................................13
Market Segmentation and Target Markets.................................................................................13
Marketing Strategies..................................................................................................................14
International Strategies adopted by Nestle.................................................................................14
Significance of Interrelationships between Marketing and Other Functional Units of an
Organization.................................................................................................................................15
Nestlé’s Strategy for Business Development.............................................................................15
Conclusion and Recommendations............................................................................................16
References.....................................................................................................................................17

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Introduction
The report is about Nestlé’s marketing plan, the company’s activities in sustaining its
leading position in the current market and product marketing including its new product Nescafe
Menu. In addition, the report analyzes in detail the current marketing situation including
PESTEL analysis, marketing environment, marketing plan and the marketing strategies
applicable to the company in dominating the current market. The strategies of marketing will
further involve discussions on the product, pricing, promotion and distribution strategies.
However, the report will mainly focus on Nestle Malaysia, its newly launched products and its
brand Nescafe. Additionally, the researcher will provide solutions and recommendations in
overcoming the problems and solving the current scenario. Nestle Malaysia continues to play the
role as the Halal food manufacturer leader and the first multinational which voluntarily requested
for Halal Certification of all the company’s food products after its introduction in 1996. In 1989,
Nestle was public-listed on Bursa Malaysia (Köse, 2007 p.78). Currently, Nestle has employed
five thousand people, owned seven factories and six sales offices in Malaysia including one
international distribution center. The head office for Nestle Malaysia is based in Petaling Jaya,
Selangor.
Background of the Company
Nestle is a multinational company which leads in food business globally. Founded by
Henri Nestle who was a Swiss chemist, the company has the largest nutrition research capability
which has its base in Switzerland and is the largest manufacturer of food in the world. Further
research by Payaud (2014 p.57) shows that Nestle boasts of having its presence in over one
hundred countries with an employment of 276,000 worldwide and four hundred and fifty-six

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people and four hundred and fifty-six factories in eighty-four countries. The organization
currently owns 8,500 brands and produces over 10000 products which are different. Annually,
the company sells over thirty-two billion products. Moreover, Nestle has twenty-four centers for
research and development globally and makes an investment of RM5 billion each year on
research and development (Wymer, 2011 p.20). Nestle Malaysia which is the biggest global
Halal producer, engages in the marketing of Halal products. In addition, the organization has
differentiated its marketing whereby the firm has targeted several market segments and has
designed offers which are separate for each. Nestle Malaysia has utilized segmented marketing
(differentiated marketing) strategy by having several product categories intended at targeting
different customers.
Briefing Document
PESTLE Analysis
Political Factors
According to Varma and Ravi (2017 p.16) dynamic government regulations surrounding
the marketing options and standards of food affect the company. Nestle collaborated with various
relevant Non-Governmental Organizations (NGO’s) in support of the efforts of the government
of combating diseases which are non-communicable, during the Nutrition Month Malaysia
campaign in promoting healthy nutrition in the community. In addition, in support of the efforts
of the government in encouraging active lifestyles and healthier diets in order to assist in
mitigating challenges associated with cardiovascular diseases, diabetes and obesity, the
organization has made significant changes in improving the profile of its products to complement

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the efforts of the government in creating a healthier population. In addition, changing global
regulations result in challenges in adapting to different political forces.
Economic Factors
Domestic sales which are flat have reflected a change in the behavior of consumers in
regards to spending where they spend less and save more and has resulted to a slowdown in the
local economy which has affected the organization’s domestic business which has generally
remained flat for the reviewed period.
Social Factors
The company is founded on social responsibility and sound human principles and values.
In consideration, the population of Malaysia majorly consists of Muslims the trust and
confidence of consumers on peace of mind and quality affect their purchasing behavior for the
products of the company. Nestlé’s interest in Halal was due to the social responsibility and
respect for the Muslim consumers and employees whereby the company has currently begun to
appreciate the long-term investment it has been making in the marketing and manufacture of
Halal products. To ensure social responsibility to the Malaysian community, Nescafe is produced
locally to suit the preferences and tastes of local consumers although it is a global brand (Varma
& Ravi, 2017 p.17).
Technological Factors
All Nestle products undergo an extensive process of technological research and
development before its launch so as to ensure that the trust and loyalty of consumers have been
maintained. The customers of the company enjoy and benefit from the products of world-class
manufacturing facilities, international safety and quality standards, the best private research and

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development capability in food and nutrition and products catered to local preferences through
the use of high-level technology. In addition, the company is also committed to renovating and
innovating products with a basis of scientific and technological trials and evidence.
Legal Factors
Nestle has been affected by the changing nature of regulations. Therefore, the
organization has been forced to adhere to global changes and regulations across various
international markets. As a legal requirement, the organization is also required to pay taxes in all
the countries which it operates in addition to other different legal obligations.
Environmental Factors
The business environment for the company has greatly been influenced by the increased
attention which has been directed towards corporate social responsibility. Furthermore,
consumers’ and employees’ concerns including the strategies for recycling, manufacture and
packaging products have critically influenced the organization’s operations.
Marketing Mix
Nescafe uses the advertising of its product to promote the distribution, benefits, uses,
features and the image of its products. The organization presents its advertising strategies
through the internet, outdoor display, newspapers, magazines, radio and television. Therefore,
consumers can have a look at the physical features and evidence of the product. In the 7 P's of
Nestlé’s marketing mix, process refers to the company’s public relations (Berthon et al., 2012
p.265). The public relation in the marketing 7 P's of the organization’s marketing mix is used to
promote the organization, the people, ideas and image and also create various specific images

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including concern for social issues, value, innovativeness and quality. Nestle uses different
methods of marketing its products including event sponsorship, press releases and press
conferences which are organized to announce the launch of its new products, for example, the
Nescafe Menu. The firm’s sales force is referred to by personal selling for the purpose of
building customer relationships and making sales. The salespeople who are included in the
company’s marketing mix carry out the role of communicating with customers with an intention
of informing them about available products and coercing them to buy the products. The
organization uses its employees in the six sales offices to sell its products (Park, Ungson &
Cosgrove, 2015 p.82).
B2B Markets
According to Woodside (2010 p.1), business to business (B2B) is the best practice and
technique used by a company in the production of products and services and later on sell them to
other companies or businesses. B2B of Nestle Company focuses on both individual and
organization buyers. The company uses business-to-business marketing to meet the demands of
other businesses and companies despite some consumers driving the products offered by the
company. Nescafe being a large direct sale of Nestle and other products it sells the products in
bulk to other business like supermarkets and wholesalers. Furthermore, the relationship that
exists between Nestle Company and other trading companies has been linked with other
companies’ growth and expansion.

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B2C Markets
Business to Consumer (B2C) is the best practice and techniques used in the promotion of
organizational services and products among customers. Nestle company have been practicing
BC2 marketing techniques during promotions of its products. The products are promoted through
road shows, websites, blogs and social media so they can create awareness provide to the public
about the existing product or new products in the market.
Marketing Plan of Nestle
Nestles marketing plan is aimed at examining one of the company’s product line
extension focusing on both the external and internal environment. The plan also includes
marketing mix, marketing strategies, marketing mix 4 P’s and competitive strategies adopted by
the organization.
Purpose and Mission
The key purpose of the business plan is analyzing several elements of Nestlé’s product
line extension. The brands chosen are Nescafe Menu and Bear Brand Choco with the mission of
the plan being to find out how the products have met the company’s expectations before the
product is launched in the market.
Situation analysis
In order to bring the products in the market, Nestle Company has applied lots of
creativity and innovation on the existing production pattern. The company has further kept
preferences and taste of its target group including moms and kids. Moms want healthy kids while

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kids prefer tasty foods. Therefore, the products are mixtures of both healthy and tasty and it
creates value to the target group.
Marketing Mix 7 P’s
The 7 P’s marketing mix includes product, people, price, promotion, place product and
physical elements. The 7ps are essential for nestle company as they help in reviewing and
defining the company’s key issues affecting markets of its products.
People
Nestle Company has high reliance on all internal and external stakeholders. Having the
best staff who have provided customer satisfaction and repetitive purchases is a key essential to
why the company is offering high quality products and services.
Product
In order to sustain the competitive market, Nestle Company has launched a product called
Bear Brand Coco. The product is a healthy drink ideal for children and mothers. Despite its
irresistible taste of chocolate, the product has milk goodness. Furthermore, Bear Brand Choco
milk powered is fortified with resistance-building Vitamin C and Zinc that are good from
maintaining body fitness and strengthening immunity. In addition, these nutrients have beneficial
elements that assist in fighting fatigue and sickness. The product is also delicious, affordable and
nutritious to the customers.
Price
According to Molinari, Abratt and Dion (2008 p.363) customers will always relate the
prices to quality of the product. The relation is always founded when the products are ego

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intensive or technology-based. Nestle company has emphasized on quality of product and it has
offered reasonable and affordable prices making sure people from all income classes like middle-
income, high income and low income consume the product.
Promotion
Nestle company has the main focus on advertisement which is an effective considerate
medium of promoting its products. The media has a wide coverage and reaches many customers
within short time frames. Nestle company has recently adopted numerous promotions modes like
magazines which are believed to assist in creating public awareness. During promotions period,
the company uses both push and pull strategies. According to Wang and Tzeng (2012 p.5600),
push strategy is as a way of using all available distribution channels in order to push the products
on offer into the marketplace while pull strategies are the way an organization facilitates its
direct interface with clients.
Place
Nestle company has a high customer segmentation and its targets are to all customers
from urban and rural areas. Irrespective of place, Nestle products are readily available in all the
supermarkets and other outlets. The availability ‘of the products in diverse markets has enhanced
customer satisfaction and repetitive purchases.
Process
Nestlé’s product delivery is usually done with the presence of customers. Furthermore,
the consumers are subjected to pay for the services delivered to them.