Comprehensive Marketing Plan Analysis for Nestle and Cadbury

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This report provides a detailed analysis of Nestle's marketing strategies, comparing them with those of Cadbury. It begins with an introduction to marketing and the chosen company, Nestle, a global food and beverage manufacturer. The report covers Task 2, which compares the marketing mix (7Ps) of Nestle and Cadbury, highlighting their product, pricing, place, promotion, process, people, and physical evidence strategies. Task 3 involves producing and evaluating a basic marketing plan for Nestle, including a SWOT analysis, objectives for a new product (Nestle Aloe FIT), and strategies based on the STP framework (Segmentation, Targeting, Positioning). The plan also includes budget allocation and monitoring methods. The report concludes with a summary of the findings and a list of references. This document, contributed by a student, is available on Desklib, a platform offering AI-based study tools.
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Marketing Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT...........................................................................................................................3
TASK2.............................................................................................................................................3
P3 Compare the ways in which different organisation apply marketing mix to the marketing
planning process to achieve business objectives........................................................................3
TASK 3............................................................................................................................................5
P4 Produce and evaluate a basic marketing plan for an organisation.........................................5
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10
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INTRODUCTION
Marketing is considered as the investigation under which by applying various strategies
the value and image of a company is enhanced. Functions of marketing is prepare strategic plans
so that to develop pertaining marketing strategies in order to grow the product and service
offering of the company. The company taken is this report is Nestle which is a global level food
and beverage manufacturer (Chokshi and et. al., 2016). The company is having headquarter in
Switzerland and serves more than 189 countries of the world. This report includes the various
interrelationships and those significance, along with this new products feature and marketing
strategies are involved in marketing plan.
TASK 1
Covered in PPT
TASK2
P3 Compare the ways in which different organisation apply marketing mix to the marketing
planning process to achieve business objectives.
Marketing mix: Marketing mix is a tool under which all the marketing aspects and
variables are taken which are helpful and important in the marketing process. From the type of
product to the appearance of the product or the organisation is included in marketing mix.
Marketing mix involves 7 aspects which are product, price, place, promotion, process, people
and physical evidence.
Overview of 7P's of Nestle and Cadbury:
Marketing mix of Nestle: Marketing mix of Nestle includes all the marketing strategies
related to 7p's which are implemented by them in order to decide pricing and distribution
strategy of their products.
Marketing mix of Cadbury: Marketing mix of Cadbury involves all the strategies which
are required in the process of marketing, that includes 7p's. Marketing mix is helpful for Cadbury
in deciding promotional and process strategy for their products.
Marketing manager of Nestle prepared a chart of all the elements of marketing mix which
involves comparative study of Nestle and Cadbury.
Basis Nestle Unillever
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Product It is a Swiss multinational
organisation which deals in
manufacturing and selling of
milk and baby products,
confectionery, ice creams and
so many types of snacks (Sun,
Price and Ding, 2019).
It is British- Dutch
multinational company which
operates in consumer goods
such as food, ice cream,
personal care products and
home care products. Unilever is
a company which is having
diversified production of all the
regular needs of their customer.
Unilever own more than 25
brands which are fulfil daily
requirement of public.
Price The company is keeping two
strategies for pricing. One is
price skimming which is used
for the star products of the
company such as Maggi and
kitkat. And the other strategy
is competitive prices for those
products which are having
high rivals in the market such
as chocolates and cookies
(Fuchs, 2017).
Different strategies are used by
Unilever in order to position
the product in the market,
Market- oriented pricing
strategy is used for consumer
products so as to compete with
rivals. Premium pricing is used
for premium quality products
and for those product which do
not have near competitor in the
market. At last bundled pricing
is used at festive season tenure
under which multiple product
are sold at cheaper rates when
bundled and purchased
together.
Place Nestle operates in all over the
world in 189 countries
The company is operating their
business in 190 countries
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including UK, US and India. including UK, Ireland, Canada,
India, Australia, South Africa
and the US. As due to presence
in so many countries Unilever
is having high market coverage
and high customer base which
give them high brand recall
value due to this their sales are
increasing and they are earning
high profits.
Promotion The brand uses digital and
traditional tool of promotion.
They uses print media in order
to enhance the brand
awareness and provide
discounts on products in order
to capture market share.
Unilever uses advertising as
their primary method of
promotion. Along with this the
company is using discount and
bundled products during
particular season of a year and
further they uses direct
marketing tactics in order to
promote their products. With
the help of these promotional
tools Unilever is spreading
awareness about there products
which is assisting them in
boosting their sales.
Process Being a FMCG product the
company is having huge
channel of distribution. They
go through from so many
stages in order to make their
product to customer's reach
Unilever is having online
delivery system, where online
orders are placed by retailer to
the supplier and then supplier
take products from factory
warehouse and deliver that to
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(Sorescu, Warren and Ertekin,
2017).
retailer. They have a well
managed system of delivery
and this assist them in serving
their customer in a minimum
time so that to meet customer
expectation in a considerable
manner.
People The company is having
around 339000 employees
around the world, for lower
the labour turnover Nestle
provides job benefit to them in
the form of perks and fringe
benefits and to maintain
labour turnover rate they
provide continuous training to
their staff.
Unilever is having 155000
employees around the globe
and for the organisational
development they are providing
them training so that to cater
their customer in a better way.
They have a well defined and
well managed training system
which enables them to have
skilled employees in their
business concern so that to gain
market competitive edge and
sustainability.
Physical evidence Nestle is having a distinct
logo in which a bird is sitting
on the nest and feeding to her
children. On the other hand
product of Nestle is having
different packaging is the
form of design, colour and
size.
Logo of Unilever is very
distinct, it is of blue colour and
having 25 icons which is
having different meaning due
to which this logo is giving
message of caring. Their logo
is giving them specific identity
in the market and customer
recall.
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TASK 3
P4 Produce and evaluate a basic marketing plan for an organisation.
Marketing plan is tool which is used for functional planning and development of new
product or new service in the market (Green and Keegan, 2019). The marketing plan inculcates
overview of the company, SMART objectives, strength weakness of the company with the
proper execution of marketing mix. The marketing manager of Nestle has prepared strategic
marketing plan which is portrayed as follows:
Overview of the company: Nestle is a Swiss multinational food and other
confectioneries manufacturer having headquarter in Vevet, Vaud, Switzerland. It was founded in
1860's and later on from so many merger the company maintained their business and currently
running in more than 189 countries around globe. Nestle is world's largest company with respect
in revenues from the year 2014. It ranked number 64 among Fortune Global 500 and number 33
among Forbes global 5000 in the year of 2016. At present the company is planning to introduce
healthy drinks by the name “Nestle Aloe FIT” to their customer so that to spread awareness
about health and to increase brand value with high profits (Kotler and et. al., 2019).
Mission: Mission of Nestle is to provide best taste and nutritious food and beverages in
order to satisfy all day needs of the customers.
Vision: Vision of Nestle is to be renowned as Nutrition, Health and Wellness Company
by providing superior quality products.
Situational analysis:
SWOT analysis is a model which is used to recognise market opportunity which can be
grabbed by utilising strengths and threats can be identified which are occurring due to
weaknesses. SWOT analysis of Nestle is explained as under:
Strengths Weaknesses
Nestle is a reputed and globally
recognised brand which is operating in
189 countries with its diversified
production that is possible due to
ownership at more than 200 brands.
More than 5000 employees are
In the recent year Nestle was alleged to
drain water from illegal sources which
made the company face decreasing
brand value in the market.
Due to failure in laboratory test of
Maggie in India due to presence of lead
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involved in research and development
in Nestle, so this make the company
producing innovative and market
needed products.
In 2016 nestle awarded as 37th brand in
the world which adds brand equity and
brand awareness to the company
(Sheth, 2017).
in Maggi noodles. This caused loosing
80% market share in India due to which
the overall global market value of
Nestle has deceased over the years.
The advertising cost of Nestle is very
high due to which loss of capital is
faced by them.
Opportunities Threats
Company's inclination towards healthy
drinks can provide grater opportunities
in the market as now people are
adopting healthy lifestyles.
Nestle is having opportunity to boost
sale with the use of online platform.
Demand of packaged food has
increased due to long office working
hour which create opportunity for
Nestle to promote R&D in order to take
out need of the customers (Lalaounis,
2017).
As due to high market rivalry, so many
substitutes are available in the market,
so this may diminish the brand image
of Nestle.
Brand switching may take place due to
high inflation rate and decrease in
buying power of consumer, this may
lessen the profits of Nestle.
Due to scarcity of required resources,
the issue in quality of the product can
be seen by the company.
Objectives: The company has kept SMART objectives for the new product that is healthy drinks
“Nestle Aloe FIT”, which is elaborated as under:
Specific: Nestle is willing to increase their brand value, sale and customer capture by
introducing healthy drinks “Nestle Aloe FIT”.
Measurable: Nestle is planning to have increased sales by 8% and customer base by
10% with their new venture of healthy drinks “Nestle Aloe FIT”.
Attainable: For attainment of this objective Nestle is planning to recruit some new
personnel in which they will hire candidates for research and development and marketing team
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as well. Research and development team is responsible to make proper mix of all the ingredient
and to make sure that this drink does not contain any harmful content. On the other hand
marketing team is accountable for promoting and developing marketing strategy in order the
make the product a success.
Relevancy: With the achievement of these goals Nestle will be able to enhance their
brand value and brand recognition with a new segment. Further the company can fulfil the
demand of the customer and establish themselves as a diversified brand.
Time bound: These goals are planned to attain by the year end of 2022.
Strategies
STP framework:
Segmentation: Nestle is planning to bifurcate their customer on the basis of health,
preference and taste (Pitel, 2016). These segments are finalised because people opting for
healthy lifestyle tend to opt healthy drink in their daily routine. Nestle is segmenting the market
on the basis of demographic and behavioural characteristics.
Targetting: Nestle is Planning to target their product into those customers which are not
concerned about money but they are concerned about their health. So this healthy drink will
decrease the health hazards for the customers.
Positioning: Nestle is one of the largest company in the world as in context of sales and
profit. The product which are manufactured and sold by Nestle have a separate and distinct
identity in the market. So the new healthy drink “Nestle Aloe FIT” will boost their sales with
high increase in market share and brand value(Madhani, 2016).
Budget allocation: Estimated budget prepared by Nestle is as under:
Particulars Amount (£)
Marketing 12000
Promotional activity 25000
Research and development 150000
Print media 5000
New recruitments 120000
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Training and development 100000
Total 412000
Monitoring and controlling: Sales analysis will be done by Nestle in order to monitor the
business plan. Further the company will use key performance indicator and efficiency ratio in
order to compare the actual and budgeted performance (Nasirun and et. al., 2019).
Sales Analysis: Under this analysis the annual sales of Nestle is to be analysed taking
base the past years so as to recognise the sales increase.
Efficiency Ratios: This is the ratio under which analysis of expenditure is made taking
base annual revenue. This is helpful for Nestle in order to find out their level of expenditure as
according to their revenue to find out their profitability.
CONCLUSION
From the above detailed report it is deduced that various roles and responsibilities are
carried out by an organisation's marketing department which are necessary for organisational
growth. All the functional department in an organization are interrelated which is helpful in
eliminating nay communication gap between organisation and provide sustainability to the
business. Further marketing mix is helpful in order to examine suitability of the new product so
that to establish marketing strategies as according to the market need. At last a business plan is
prepared which is helpful in resource allocation and efficient implementation of all the strategies.
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REFERENCES
Books and journals
Chokshi, P., Shah, H., Arora, R. and Agrawal, N., 2016. Perception of Consumers towards
Cadbury and Nestle. Asian Journal of Research in Marketing. 5(6), pp.8-27.
Fuchs, C., 2017. Social media: A critical introduction. Sage.
Green, M.C. and Keegan, W.J., 2019. Global marketing. Pearson.
Kotler, P., Keller, K.L., Brady, M., Goodman, M. and Hansen, T., 2019. Marketing
management. Pearson UK.
Lalaounis, S.T., 2017. Design Management: Organisation and Marketing Perspectives.
Routledge.
Madhani, P.M., 2016. Competitiveness and sustaining performance: integrating sales and
marketing. SCMS Journal of Indian Management. 13(1). pp.19-36.
Nasirun, N., Noor, S.M., Sultan, A.A. and Haniffiza, W.M.H.W.M., 2019. Role of marketing
mix and halal certificate towards purchase intention of agro based products.
International Journal. 2(7). pp.37-46.
Pasquier, M. and Villeneuve, J.P., 2017. Marketing management and communications in the
public sector. Routledge.
Pitel, D., 2016. Marketing on a shoestring budget: A guide for small museums and historic sites.
Rowman & Littlefield.
Sheth, J., 2017. Revitalizing relationship marketing. Journal of Services Marketing.
Sorescu, A., Warren, N.L. and Ertekin, L., 2017. Event study methodology in the marketing
literature: An overview. Journal of the Academy of Marketing Science.45(2). pp.186-
207.
Sun, W., Price, J. and Ding, Y., 2019. The longitudinal effects of internationalization on firm
performance: The moderating role of marketing capability. Journal of Business
Research, 95, pp.326-337.
Wood, M.B. and Jobber, L., 2016. The marketing plan handbook. Pearson.
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