Royal Holloway MN2306: Marketing Plan for Nescafe's Singapore Entry

This report provides a detailed marketing plan for Nescafe, owned by Nestle, aiming to re-enter the Singapore market after a previous failure. It begins with an executive summary and table of contents, followed by an introduction to Nescafe and an overview of the organization. A thorough situation analysis is conducted, incorporating SWOT and PESTLE analyses to assess strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. A competitor analysis identifies key players in the Singapore coffee market. The report outlines specific marketing objectives, including market segmentation, promotional campaigns, and social media utilization. It proposes market development strategies, including differentiation strategies, and details tactics, implementation processes, and control mechanisms to ensure successful market penetration and competitive advantage. The report concludes with a list of references.

Running head: MARKETING STRATEGY
MARKETING STRATEGY
Name of the Student
Name of the University
Author Note

1MARKETING STRATEGY
Executive Summary
This report will be on preparation of a marketing plan for the organization of Nescafe, who
are planning to expand in the market of Singapore after failing in their first attempt. A
situation analysis in the form of SWOT and PESTLE analysis will be done on Nescafe, which
will help the management of Nestle, who owns the brand of Nescafe, to design the marketing
plan. The marketing objectives of Nestle towards the market place of Singapore along with
the different marketing strategies will be laid in this paper, which will help the organization
to target the market more efficiently and effectively. Tactics or the action plan that need to be
need to be followed by all the departments of Nestle. Proper implementation process and
control over the marketing strategies will also be discussed that the organization needs to
follow in order to gain the competitive advantage over the rival organizations.

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Table of Contents
Introduction................................................................................................................................3
Overview of the Organization....................................................................................................3
Situation Analysis......................................................................................................................4
SWOT Analysis.....................................................................................................................4
Strengths...........................................................................................................................4
Weaknesses.......................................................................................................................4
Opportunities....................................................................................................................5
Threats..............................................................................................................................5
PESTLE Analysis...................................................................................................................6
Political Factors................................................................................................................6
Economic Factors.............................................................................................................6
Social Factors....................................................................................................................6
Technological Factors......................................................................................................7
Legal Factors....................................................................................................................7
Environmental Factors....................................................................................................7
Competitor Analysis...............................................................................................................7
Marketing Objectives.................................................................................................................8
Strategies....................................................................................................................................9
Tactics or Action Plan................................................................................................................9
Implementation........................................................................................................................10

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Control......................................................................................................................................10
References................................................................................................................................12

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Introduction
The main purpose of this report will be to prepare a marketing plan for the
organization of Nescafe, who has tried to expand in the region of Singapore, but failed in
their initial efforts. There will be an introduction about the organization along with the
present market scenario of the organization and its failure. A situation analysis will be done
on Nescafe, which will include a SWOT and PESTLE analysis as well as the analysis on the
competitors, whom are posing threats to the organization of Nescafe and failed their initial
efforts in the market place of Singapore. The marketing objectives of the business entity will
be discussed in this paper, along with the proper marketing strategies, that will help the
organization to target the market more efficiently and effectively. Tactics or the action plan
that need to be followed by the management of Nescafe, and proper implementation process
and control over the marketing strategies that the organization will follow will also be
discussed in this paper. The details marketing plan will help Nescafe to segment the market
more efficiently and target the prospects and make them regular customers of the product
manufactured by Nestle in the form of Nescafe.
Overview of the Organization
Nescafe is the coffee brand which is owned by the Swiss organization Nestle. The
brand was introduced in the market in the year of 1938. It is a brand name which is
consumed in the market places of almost every parts of the world. The management of the
branded organization of Nestle tried to expand in the region of Singapore where they failed to
enter due to some reasons. The brand has different types of variation s of coffee under the
brand name of Nestle, and they decided to prepare a proper and effective marketing plan
which will help them to penetrate into the market place of Singapore. The brand value of the

5MARKETING STRATEGY
organization of Nestle is used to market the brand Nescafe, and it is widely accepted in many
regions of countries around the whole world (Nescafe.com 2019).
Situation Analysis
SWOT Analysis
Strengths
The major strength of Nescafe is the brand equity that is possessed by the
organization of Nestle. It has been found that the brand value of the product is more than
$17.4 billion, and is recognized as the largest brand of the overall, product portfolio of the
organization of Nestle around the world. Apart from this, the brand gets a strong financial
backing from different shareholders and other third parties in and around the world along
with ample availability of resources which is required to expand into new regions. Another
strong strength possessed by Nescafe is the quality of the coffee manufactured by them. It is
widely accepted among the global audience. Strong quality control techniques along with
excellent powerful campaign are also followed by Nescafe (Payaud 2014).
Weaknesses
One of the major weaknesses of the brand of Nescafe is the health consciousness,
which is one of the major reasons of the failure of the brand in the market place of Singapore.
It has been found that the people of Singapore are very much health conscious, and the type
of coffee manufactured and sold by Nestle does not suit the taste and preferences of the
people out there. Another prime weakness of them is the indirect competition that is faced
from the consumers of other beverages like tea, carbonated drinks, fruit juices and other
beverages that are available in the market place around the world apart from Singapore
(Jackson et al 2014).

6MARKETING STRATEGY
Opportunities
Due to the brand value that is possessed by the organization of Nestle, it helps to
provide some opportunities or scope for tie-ups with a number of educational institutes,
corporate houses and other public houses in order to gain the market share for the brand of
Nescafe as well as maintain the profit earning for the organization of Nestle. The rise in the
public income of the regions where the brand is sold is also another major opportunity to
target them with the premium taste and quality possessed by Nescafe. This will help them to
attract new people in the market where they are operating as well as help to attract new
market region liked that of Singapore (Rajan 2018).
Threats
One of the major threats that is faced by Nescafe is the direct competition from other
brands of coffee or other beverage companies in the market places where they operate. For
example, Tata Tea and Tata Coffee as well as Bru possess a tough competition to Nescafe in
the market of India, where it has been found that Bru is the market leader. Another major
threat that is faced by Nescafe is the problems related to Cocoa production or cultivation and
selling their manufactured products as the raw materials to the organizations like Nescafe,
which is hampering the business operations and profit generation for Nescafe, which is also
another reason of failure of them in the market place of Singapore (Lockrey 2015).

7MARKETING STRATEGY
PESTLE Analysis
Political Factors
The alterations in the regulations regarding the beverage market are one of the major
political factors that need to be considered by Nescafe. There are lots of complications which
need to assess regarding the food standards along with the marketing actions that the
management of Nestle need to assess before entering into the market of Singapore. The
stability of the government is also a major issue which needs to be taken into account. And it
has been found that Singapore possesses one of the most stable governments, which will help
Nescafe to target the market with a better marketing plan.
Economic Factors
The management of the organization of Nestle needs to be aware about the alterations
of inflation and economic growth rates along with the income levels of the people. The
knowledge should also be there the context of alterations in the budgets of the consumers of
coffee market in Singapore. Rise in the supply of the raw materials is also a major economic
factor that the management needs to be considered.
Social Factors
The changes in the tastes and preferences of the people of the market of Singapore
need to be identified by Nestle, which will help them to penetrate into the market place and
maintain a firm position out there. A healthier product need to be manufactured by the
organization as it has been found that people are moving towards the healthier beverages.
Changes in the lifestyle of the people also need to be assessed by Nestle, which will help
them to enjoy competitiveness in the market of Singapore and proper implementation of the
marketing plan in that particular region (Harun et al 2014).

8MARKETING STRATEGY
Technological Factors
Due to the advancement of technology all over the world, there is a sharp rise in the
usage of social media platforms and Singapore is not out of this advancement. Interactions
between the people and the management of the organization of Nestle will help to identify the
exact requirements of the people of Singapore. Platforms like Facebook, WhatsApp,
Instagram and others are widely used by them, and innovative ways can be used in the form
of promotional techniques in order to attract the maximum number of people at a single click.
Legal Factors
Alterations in the nature of regulations related to different acts related to food and
beverage industry need to be assessed and evaluated by Nestle in order to safeguard their
operations in the market place of Singapore. They also have to aware about the global
regulations along with the alterations across the region of Singapore as well as in other parts
of the world, which will help to avoid any legal issues for the management of Nescafe
(Tortajada and Zhang 2016).
Environmental Factors
The major attention that Nestle need to focus on operating in the market of Singapore
is performing the corporate social responsibilities, which will help them to follow a
sustainable market operations along with safeguarding the environment related issues. Issues
related to packaging and recycling need to be followed in the region of Singapore, as it
strictly followed in the region of Singapore.
Competitor Analysis
The key players in the coffee industry of Singapore include the Boncafe, Peets
Coffee, Starbucks and Farmer Brothers among others. It can be noted that Boncafe is the
leading coffee brand in Singapore, and will possess the main competition to Nescafe in the

9MARKETING STRATEGY
market place. Though Nescafe possess a strong brand value and brand equity around the
world, they have to face tough competition from the regional well as international players
who are already settled in the competitive and rising coffee market of Singapore (Zhu 2013).
Marketing Objectives
The marketing objectives of the organization of Nestle towards their brand Nescafe
will help to identify the target market of Singapore along with the need and requirements of
the people towards the preference of selection of the beverages. The marketing objectives that
Nescafe have to follow are given as follows (Jeannet and Schreuder 2015):
 To segment the market efficiently in order to reduce the chances of failure in
the market of Singapore
 To target the identified segment with proper prom0otional campaigns and
awareness about the product
 To make the people aware about the benefits of Nescafe and its advantages of
the consumption process
 Maximum utilization of social media platforms in order to engage the
maximum number of people in Singapore
 To reach the break even within six months of the launch of the product in the
market of Singapore
 To follow and maintain a relationship marketing campaign throughout the
region of Singapore, in order to increase interactions between the management
of the organization of Nestle and the consumers or the interested people or the
prospects of Singapore
 To increase the sales volume after reaching the break-even of the organization,
by at least 10%, which need to be achieved within the following six months

10MARKETING STRATEGY
Strategies
In the context of growth strategy, market development strategy need to be followed by
the organization of Nestle for launching their brand Nescafe in the market place of Singapore,
as the management will sell Nescafe, which is an existing product in and around the world,
into a completely fresh market place (Al-Samadani 2013). All including the consumers,
suppliers, promoters and other parties will be brand new for them. The coffee need to be
manufactured according to the needs and requirements of the people, so that this type they
can accomplish a successful launch into the region of Singapore (Nad, Gu and Asmussen
2015).
Coming to the competitive strategies, differentiation strategy need to be followed by
Nestle towards their brand of Nescafe. It will help the organization ton differentiate their
product with the rival coffee producing organizations like Boncafe, Peets Coffee, Starbucks,
Farmer Brothers and others. As Nestle as well as Nescafe possess a global brand acceptance,
it will help them to differentiate their product with that of their rival organizations.
Improvement on competitive advantage will be the main focus point in this strategy (Lee et al
2015).
Segmentation, Targeting and Positioning
Segmentation
Demographic
Here, Nescafe need to target the areas mainly where the educated and working people
live, irrespective of the gender and marital status of the people out there. Coffee is loved
almost by all people irre4spective of their age and other attributes under this segment.

11MARKETING STRATEGY
Geographic
Nescafe will mainly target the urban, semi-urban and semi-rural areas across
Singapore. It has been found in researches that coffee is mainly consumed by people of these
classes.
Psychographic
Nescafe needs to focus on the people who possess a high or medium class society,
who consume at least one cup of coffee per day.
Behavioral
People who get benefit from consuming coffee will be targeted under this segment.
Type of consuming the beverage will be focused under this factor.
Targeting
The people who belong from the above discussed segments will be targeted, after
evaluation of receiving the amount of profitability from each of the segments. The size and
interested people or prospects along with the potential growth that Nescafe will enjoy in
future will be analyzed of each of the above discussed segments.
Positioning
Product differentiation strategy will be used by the management of Nescafe in the
market place of Singapore, to enjoy the competitive edge over its rival company’s along with
maintaining a uniqueness of their brand of coffee to the people of Singapore. The value
proposition need to be maintained there, which is followed by Nescafe in other parts of the
world. A separate positioning statement need to be designed by the organization of Nestle so
that people will be able to differentiate their brand from others that are present in the market
place of Singapore.