Marketing Plan for Nestle Cerelac: Strategies and Analysis

This report provides a detailed marketing plan for Nestle's Cerelac product, focusing on the Australian market. It begins with an introduction to marketing research and the Nestle company, followed by an executive summary outlining the report's objectives. The main body of the report includes a comprehensive analysis of the current marketing situation, including vision, mission, market summary, target market, market demographics, needs, trends, and growth. A SWOT analysis assesses the strengths, weaknesses, opportunities, and threats facing Nestle Cerelac. The report then outlines marketing strategies based on the marketing mix (product, price, place, and promotion), along with an action program, budgets, and controls. The report concludes with a summary of key findings and references used throughout the analysis. This report provides a comprehensive overview of the marketing strategies employed by Nestle for its Cerelac product, offering valuable insights into market analysis, competitive advantages, and future strategies. This report is available on Desklib, a platform providing AI-based study tools for students.

Marketing Research

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Marketing Plan ................................................................................................................................3
Executive Summary ....................................................................................................................3
Current Marketing Situation .......................................................................................................3
SWOT Analysis of Nestle............................................................................................................6
Marketing Strategies -..................................................................................................................8
Action Program - .......................................................................................................................10
Budgets - ..................................................................................................................................11
Controls - ..................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Marketing research is the process that links customers, producers and the end users to
marketers by information which can be used by identifying and defining the problems and
opportunities that can be refine, generate and evaluate marketing actions by monitoring
performance of marketing and improve understanding the market development strategies.
Nestle company was established in 1866. The company had completed over 130 years of
business trading across the world so company has great amount of knowledge related to the
business operation and functions. Company has gain the leading position in global food
operations. The company is operating its business across 77 countries. The report includes the
marketing plan of Nestle company for the product Cerelac.
MAIN BODY
Marketing Plan
Executive Summary
The above report includes the marketing plan for the Nestle Company which can be
helpful for the company in gaining the huge profit margin while competing with rivals in market.
Application of different theories and principles will be helpful in analysing the different market
opportunities, trends and current situation of market which have been faced by the company
during the execution of its product marketing strategies. The marketing plan is about the Nestle
company's product NESTLE Cerelac. The main aim of this product is to providing the customers
with best infant food on affordable price and making product convenient to the customers.
Current Marketing Situation
Marketing description -
Vision -
 The main vision of Nestle is to become leading Health and Wellness, Nutrition Company.
 Nestle Australia fully subscribe vision for being number one health and wellness
company in Australia.
Mission -
 The mission of the company is to enhance quality of living standard of people globally
and all this can be done by their products, brands and people.

Situational Analysis -
Market Summary
 The consumers for Nestle Cerelac are being spread all over the world and the major
reason behind that is the lowest price which is offered by the company and convenient to
the consumer products are available everywhere (Abdulkadiroğlu and et.al., 2017).
 Nestle Cerelac is that much available that customers can hardly find any replacement for
that in market.
Target Market
 The main consumers are infants but the customers are parents of the baby. The product is
selected by them for their baby which is best in quality and material which an Nestle
Cerelac have.
Market Demographics -
For occupying clear desirable and distinctive place which is related to competing foods
for baby in minds of the target customers Nestle Cerelac segments its market on the following
bases -
 Geographic Segmentation -
The Cerelac segments market geographically on divisional basis. Each of the divisions
are divided into various zones and thus every distributor is bounded for selling their products
only in their own zone.
 Demographic Segmentation -
Age – Early age infants to 5 years children are segmented under Nestle marketing. The
Cerelac is available in several flavours and types of Cerelac as per requirements (Bosch, 2016).
On other hand company has developed this product for the infant children but has targeted
mothers. As mothers are very conscious about the health of their children.
Income level – The lower income level people can not afford the ready-made foods for their
babies so Nestle is targeting segments whose income level puts individual into upper middle,
middle and higher income groups.
Social Stratification – In this consumers are divided into their lifestyles and social class which is
-
 Upper upper class
 Lower upper class

 Upper middle class
 Psychographic Segmentation -
Class consciousness – The company has segmented particular class of the mothers who don't
want to give breast feeding to their child so company is mostly preferred and best nourishing
food for infants.
Level of education – Nestle develop its promotional strategies by keeping in mind the level of
education of customer. If the education level of customers is high then there message will easily
conveyed to the public.
 Behavioural Segmentation -
Benefits – Buyers are divided according to benefits which are being seek by them. Different
flavours have been launched by Nestle and types of Cerelac which can benefits the child in the
growth of their early stage.
Market needs
 As the population is increasing day by day in Australia so the needs of healthy foods
which is helpful in nourishing infants have been raised.
 For the development and growth of the infant good nutrition is very essential for infant of
one year. Appropriate food is their requirement (McDonald, 2015).
 The children and infant are very active and thus they need calorie diets and high proteins
as lot of energy is spend by them.
Market trends -
 As the almost of the women are working women so they need he convenient food for
their babies.
 Now a days individual are turning to the brand to whom they can trust. The consumers
are increasingly getting more aware about the corporate behaviour of companies form
which the product is purchased.
 People are balancing their diets and lifestyles (Erickson, 2017). So the healthy food
option will be selected by them for their children.
Market growth -
 Nestle has seen healthy growth potentials for its food products which is helpful in
meeting needs of specific dietary of changing demands of customers which is being
failed by normal diets.

 The food and nutrition for infant as category is growing 10-12%
Competition –
The Nestle company has a competition with other packaged foods companies along with
store brand retailers. Major competitors of company are -
 ENGRO FOODS
 EMEVEN GLOBAL LTD.
Competitive advantages -
Cerelac is the popular and mostly used baby food product in Australia. Its unique seal
which kept the product stay fresh and long lasting shelf life gave brand formidable competitive
advantage. The factor which made company successful for the product Cerelac is its quality and
superior nutritional value which fulfils needs of infant at various stages of age.
SWOT Analysis of Nestle
Strengths-
 Research and development capabilities are key strength of Nestle Cerelac. The amount
spent on research and development activities is 1.89% of the total revenue. Nestle do
have the largest R&D network of any food ans beverage company in the world. And this
provides a long and sustainable growth opportunity and this keeps Nestle ahead of its
competitors.
 Nestle operates in almost entire world reaching in 189 countries. Company has divided its
operating segment in three geographical areas that are, AMS (The Americans), EMENA
(Europe, Middle East and North Africa), AOA (Asia,Oceania and sub-Saharan Africa).
None of these regions earn more than 50% percent of its total revenue that shows that
company does not rely on any single market for its revenue (Yallop and Mowatt, 2016).
Big markets like U.S. and China's revenue is only 28.5% and 8% respectively.
 Product portfolio of Nestle is wider than all its competitors. Nestle offers 2000 product
choices under 7 main categories. Nestle Cerelac is a leading revenue generating product
offered by the company. And also offers flavours in that for early age infant to 5 years
children. And is very popular and trusted brand. And does not have many competitors
which is a key strength of the brand.
Weakness-
 Nestle Cerelac is heavily dependent on advertisement for its sales. So that it can shape the

attitude of modern people about its safety and benefits. This leads to high cost of
marketing.
 Increasing awareness of people about healthy products requires company to focus on its
production and constant improvements so that company can fulfil customer expectation.
This increases cost of production which ultimately affect the revenue of Nestle Cerelac.
Opportunities-
 Increasing awareness of people about nutrition and health is a big opportunity for Cerelac
as this is a protein rich supplement which is essential for children.
 Cerelac offers many flavours so people who are concerned more about taste are more
likely to buy these products (Thomas and et.al., 2016).
 Cerelac does not have too many competitors which is a big opportunity for the company
and through e-commerce sites it can sale its products to all the remote areas.
 Increase in working population which developed trend of ready to eat and processed food
Cerelac has become choice of people who are working or does have less time.
Threats-
 Increasing suspicion on packaged food as bring harmful and unhealthy and people want
to feed their children fresh and organic food and Cerelac can also get affected by this.
 As the brand become popular many duplicate brands come in market and Cerelac being
Very popular there are many duplicate brands available in the market.
 Cerelac being a brand of Nestle which is forced by the retailers like Walmart to cut price.
Because they are more interested in selling “house products” as they are more profitable
and stores highlight these products in their shelves (Price, Wrigley and Straker, 2015).
And this is a threat to Cerelac as Walmart and other big retailers are selling other
products and if they sell Cerelac they force company to reduce prices so in both the cases
Cerelac have a threat.
Objective and issues
Objectives -
Marketing Objective :
 Raising the market share of company.
 Maintaining the brand reputation.
 Effectively competing with the rivals in market.

 Building loyalty within customers.
Financial Objective :
 Reducing the production cost.
 Enhancing the profit margins of company.
 Raising the price of the shares.
Issues -
 Sales are limited due to inappropriate marketing.
 Lack of consumer awareness.
 High price thus lower class peoples couldn't afford the Cerelac.
Marketing Strategies -
For attaining the objective of the company marketing mix elements is being used by the
company (Ind, Iglesias and Markovic, 2017). The company wants to be world's best and largest
branded manufacturer of food by providing the high quality to their consumers at affordable
pricing.
Marketing mix -
Marketing mix is consist of different elements that is 4Ps of marketing that can be
Product, Price, place and promotions, which are the majorly used by companies while
developing the marketing strategies for particular product. That can be described below -
Product –
The product for which the marketing plan is developed that is Nestle Cerelac. The
product is majorly used by the children of infant to the 5 years old. The product is purchased by
the parents of the infant. The product is available in the three different size that is 350gm, 175gm
box packaging and 25gm sachet which is convenient for the consumers (Li, 2016). The shape
and colour of the product mar vary that it should be attractive for customers. The packaging and
labelling includes the Nestle brand and logo. And overall nutrition and ingredients details on the
packaging so that mother can go through the contents which are being added in the Cerelac. It
also includes the manufacturing date and time along with its expiry date so that it couldn't be
harmful to the children if the expire item is consumed by them. The positive aspects of this
product is that it provides the best high quality ready made food for the children. The negative
aspects of this product is that the company's this product can not be afford by the lower class
people (Du and et.al., 2015). The product is available in different flavours which can be selected

by the mother of infant that are Nestle Strawberry & apple Cerelac, Nestle Wheat Cerelac, Nestle
Wheat Cerelac, Cerelac Rice, Cerelac Wheat & Honey, Cerelac Wheat – 4 vegetables and
Cerelac Wheat 3 fruits.
Pricing –
The company basically set prices by keeping in mind to capture the greater customer
satisfaction and their product reach to the maximum number of customers. The company has set
high profit margin for the product as company is rendering high quality products. The pricing of
the Cerelac doesn't fluctuate according to the product demand in market place. The price scale is
set by the company at particular level so customer can pay money for that. For example – Nestle
Cerelac Banana Price Rs. 135, Nestle Cerelac Wheat Price is Rs. 135 and Nestle Strawberry &
apple Cerelac Price is Rs. 135. The positive aspects of pricing is that the company renders the
different flavours at the similar pricing which is helpful for customer to choose any of selective
flavour without any financial issue (Mooi, Sarstedt and Mooi-Reci, 2018). The negative aspects
for this is that the company has the high prices as they provide high quality products to their
customers which can have a negative impact on the lower class people that they can not afford
that product.
Promotions -
There are many different promotion strategies which are being followed by the company.
But company doesn't promotes its product on wide range so that it couldn't be reachable to the
customers easily. The promotional activity which can be further adopted by company is social
media, digital marketing and SEO. The company is using the TV advertisements, news papers,
hoardings of doctors, medical so that it can be visible to the all parents of infant and till 5 years.
The company set his advertisement budget for the years so that they only spend that much of
amount for their further expenses (Boddy, 2016). The shares of promotions varies year to year
but it can be 40% of the product. The positive feature of the promotions for product is that they
promote their product to the places where it can be easily reached out to the targeted people,
which is helpful in reducing the costing of advertisement. The negative feature of product
promotion is that they doesn't promote their product on the social media, news paper and digital
marketing which bounds the company to reaching through wide range of consumers. Further can
company adopt these promotion strategy for getting huge consumer attraction towards their
product.

Place -
The placement of the product is being done in the overall Australia. Through various
distribution channels that can be helpful for the company in distributing their products in the
country. Nestle Cerelac is available in all over Australia regarding the small and big cities. The
product is not directly sold by company due to extensive consumer groups. So they used to sale
their product to distributors for easiness of company. The company had its own warehouse for
storing the product and also hired some of the warehouse. The major mode of transportation
which is used by company is road. For example – company transport their products at main
regional sales offices, which are being situated at various cities of Australia. These distribution
office (sales offices) have their own vehicle with sales individual who sell and transport products
to small retailers (Tulung, and Ramdani, 2018). The negative aspects of this that it all depend on
the distribution channel no role of the company is further then. The positive aspects is that
product is reached to the wide range of people in the country and product is easily available to
the public at anywhere.
Action Program -
The above marketing strategies will be turned into action program so that the product can
gain huge attention among the consumer and sales of the company's product can be raised. For
this the marketing research will be conducted for the further processing and thus after marketing
research company can analyse the various aspects of the market research and further the
company implement the market strategies according to that so that they can successfully
implement their product in the market. It will be done before developing the marketing strategies
so that the overall objective of company can be attained and get through effective
implementation of marketing strategies (McQuarrie, 2015). It will be done by the manager of the
company. By appropriate decision making and all cation of useful resources with less cost
effective program so that it can be used for the betterment of company for further processing and
attaining the marketing plans objectives effectively and efficiently. It will cost approximately $ 1
Million. Which will be helpful for company in gaining the loyal customer base and support for
further growth of business.
Budgets -
Expenses Cost

Rent $1 Million
Salary $ 5 Million
Miscellaneous expenses $ 1 lacs
Promotion $ 50 lacs
Controls -
For monitoring and controlling effectiveness of company in gaining key business
objective of company. The KPI will be used by company for evaluating the success of reaching
to the targets and goals which are being attain by company. The high level of KPIs will focus on
overall performance of business, whereas low-level of KPIs focuses on processes in several
departments that can be marketing, sales, HR, support and others (Brace, 2018). The KPI means
Key Performance Indicator (KPI). KPI is related with the particular business outcomes with
performance measure. This will be further helpful for company in attaining their objectives both
managerial and financial during this year which is further fruitful for the overall growth of the
company. So that the company can raise their profit margins also with the low pricing strategy.

CONCLUSION
From the above study it is concluded that the marketing plan is very helpful for company
in meeting the prescribed goals and objectives which can be further used for growth of the
company. Company can easily form marketing strategies under this plan by conducting a
marketing research which further renders company in adopting the appropriate marketing
strategies which can be helpful for company to compete with its rivals effectively. With the help
of plan company can get through huge profit margin which can be attained by company with
effective marketing strategies and can easily attract wide range of consumer through promotional
strategies.

REFERENCES
Books and Journals
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