MKT600 Assessment 2: Nestle Marketing Plan and Strategic Analysis

This report provides a comprehensive marketing analysis of Nestle, examining its marketing objectives, proposed positioning strategies, and action plans. It delves into Nestle's segmentation and targeting approaches, analyzing its diverse market segments and target customers. The report also explores Nestle's value proposition, highlighting how it creates value through its health, nutrition, and wellness strategy, and its marketing mix, including product strategies, pricing, and promotional efforts. The report also considers the budget and control mechanisms for marketing campaigns. The analysis includes a discussion of the marketing mix, considering product, price, place, and promotion strategies, and concludes with a summary of the key findings and recommendations for Nestle's future marketing endeavors, emphasizing the importance of adapting to changing consumer preferences and maintaining product quality. The report is based on the provided assignment brief for the MKT600 course.

Running Head: NESTLE 0
Marketing

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Contents
Introduction................................................................................................................................3
Marketing objectives..................................................................................................................3
Suggested positioning strategy for Nestle..................................................................................3
Action Plan.................................................................................................................................4
Budget and control.....................................................................................................................4
Segmentation and targeting of Nestle........................................................................................5
Segmentation of Nestle...........................................................................................................5
Target market of Nestle..........................................................................................................6
Value proposition of Nestle.......................................................................................................6
Marketing mix of Nestle............................................................................................................7
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
It is true that Nestle is growing well in several countries. It has also positioned itself
well in the mind of customers. It has also taken several initiatives in order to bring the
positive results from the customers. In order bring changes; it can also add some of the
organic products bin its product line. It is because customers are increasingly moving toward
the healthy lifestyle. Due to this, they also want to adhere to the healthy products. in its
segmentation process too, Nestle has included the wide number of customers. It can also
bring several changes in its segmentation. Therefore, the report has discussed regarding these
changes.
Marketing objectives
 To launch the several new products in the market.
 To create the awareness of its quality products as well as remove the weaknesses in its
current products.
 To improve the quality of products and services where it is lacking.
 The major issue that Nestle facing is the consistent quality of its products. in order to
remove this issue, the marketing objective is set.
 To increase the satisfaction of customers in the coming years. It will ensure the more
products in order to work according to the needs and wants of the customers.
Suggested positioning strategy for Nestle
It is true that Nestle is the World’s biggest food company by talking significant
initiatives as well as innovation in order to position itself in the market. It is true that for the
product to win in the market, it must represent the right thing in the mind of target customers.
Therefore, Nestle should portray the picture distinct and clearly from its competitor. It will
help it in gaining the competitive advantage. Companies also able to gain the huge market
share with the help of product differentiation. It can also add some of the organic products
due to the increasing consideration of customers on the healthy living. It can also take the
help of best research team in developing the communication plan. Creativity can be

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developed by the Nestle that will highlight that Nestle sells the tools and insights on how to
create the best items. This will also increase the profit for the company in the market.
As compare to the direct promotion, Nestle can also start the campaigns in order to
make the positive impact on the world. After this, customers who are benefited from the
campaign will share their positive reviews (Brem, Maier & Wimschneider, 2016). Nestle
must also positioned itself as brand with purpose. It can also focus on the core issue of safe
drinking water and hygiene. It can also do the tie up with the well known brand in the same
market or any other market. It will lead to the increment in its market and customer base.
Besides this, it will also able to achieve more growth.
Action Plan
Nestle will bring its best marketing efforts in the coming few years. It will introduce
its some of the products in coming 1 years with different ingredients. It will also give its
major focus on the organic products as per the demand of customers for healthy life standard.
Due to this, the target customers will be those who want to keep their life healthy with the
help of organic products. An effective action plan will bring out the results in short period of
time. Accordingly, it will also be able to achieve the target in decided time. In order to
achieve this, it is also essential to prepare the clear plan so that objectives will also be
achieved.
Activities Time Duration Responsible department
Market Research 1/8/2019 to 31/1/2020 Research and Development
Department
Allocating Responsibilities 1/2/2020 to 9/2/2020 Top Management
Hiring Employees 11/2/2020 to 31/3/2020 Human Resource Department
Marketing of services From 1/4/2020 continuous
process
Marketing department
Evaluating results The evaluation will be done
after every six months
Administration department

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Budget and control
Innovative marketing
campaigns
Marketing $20,000
Initiative of several social
media campaign
Social $15,000
Research and development Best customer service $10,000
Publicity Advertising $8,000
In order to budget on several activities, it is also essential to decide the period when
these budget will start getting the expected results. Marketing campaign also requires the time
of at least 6 months in order to achieve the desired results. Marketing campaigns also requires
the due consideration time to time so that any deviation is facing will be removed. Actions
can be taken in order to remove the deviations. Besides this, research and development also
requires the time of at least 1 to 2 months to effectively know the market. After knowing the
market, they can start their working on the different areas. Proper and effective budget plan
will definitely help the nestle to improve its market and customer share (Espinoza-Orias,
Cooper & Lariani, 2018).
Management plays the significant role in controlling the activities of organisation.
Due to this, management team will keep the alignment of day to day activities in the
organisation in order to ensure that the raw material and inputs effectively and efficiently. It
will also take the regular feedbacks so that corrective actions can be taken when objectives
achieved will be vary from the actual objective (Camilleri, 2018).
Segmentation and targeting of Nestle
Nestle has targeted the diverse people across the World. in order to sell its product,
although it has successful identified the market. There are people who only prefer the
products containing less sugar. It can therefore target those customers too my putting
emphasis on this. It will also prove to be cost effective for Nestle. Its effort is to eat
responsibly as well as ethically will definitely fulfil the potential. In addition to this, it can
also give more emphasis on the rural people in several countries by ensuring the lower cost of

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its products (Andaleeb, 2016). It can also target the people in different occasions such as
birthdays or any wedding ceremony. By starting its innovative packaging, marketing and
ingredients, it can target the customers who want customize products. This will put the
concentration of wide number of customers toward its brand. A unique packaging always
seeks the attention of people to gift something unique.
Segmentation of Nestle
Nestle has segmented its market in several ways.
Geographical segmentation: Under the geographic segmentation, it tends to serve the several
countries. There are different elements for the different geographic units such as regions,
states and cities (Adefulu, 2015). It has brought the different categories such as healthy
products, water bottles, and chocolates. As per the demand of customers, it varies its
products. In Australia, the main purpose of Nestle is to enhance the quality of life as well as
contribute the healthier future. This will enhance the long-term success of the company
(Schlegelmilch, 2016). Nestle should also target the rural areas by opening its some of the
outlets in Rural areas. By charging the lower price, it can fulfil the demand of those
customers too.
Demographics segmentation: under this, companies tend to segment the market on the basis
of age, gender, income and occupation. Nestle has targeted the all age groups. Specially, it
has targeted the youth and children’s. It is true that youth now a day mostly prefer the
carbonated drinks. Due to this, it has also started targeting most of the youth by bringing
various innovative and new ideas. It has targeted both men as well as some form its brand.
Due to the healthy lifestyle concern of people, it has also included the Nestle slim milk who
wants to be healthy. In the income group, it has targeted the high income as well as lower
income group people. it believes in including both kind of people for its brand (Camilleri,
2018).
Psychographic segmentation: this segmentation is also divided into several ways. Under the
lifestyle, it must give more emphasis on the working class executives, business class people,
as well as students (McDonald & Wilson, 2016). In the personality, Nestle has included the
healthy conscious and hardworking people. The benefits of the Nestle products include the
healthy and quality. The user status of Nestle is also regular. It has included those people who
are grateful and enthusiastic.

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Target market of Nestle
It is true that Nestle has covered the wider market. It has targeted the every segment
of the society. As per the rural and urban market, it has both high as well as lower price
products so that every customer can afford it. It should also increase its target market by
including the more products in the baby segment. Due to its brand image, it will be easy for
Nestle to target these customers too.
Value proposition of Nestle
The major value that is created by Nestle is its Health, Nutrition and Wellness
strategy. Beverage and food are the core part of nestle. The main aim of Nestle is to provide
the healthy choices to people in proper manner. Due to this, it is also trying hard to capture
the several opportunities at affordable price. This adds the value in its product and brand with
the help of meaningful innovation and differentiation. It does this improving the convenience,
taste, as well as nutritional quality of its several products (De Mooij, 2018). It has also
positioned itself well to share and build the nutrition knowledge from the past several years.
In order to compete with several other competitors in countries, it is creating the good taste.
With the help of advertisement also, it is able to create the value for its products in the
market.
In the recent time also, it is able to increase the growth by doing differentiation,
innovation as well as satisfying needs of the customers. Value can be created by Nestle by
opening its more branches in some of the regions (Sarma, 2018). By adding innovative
packaging of its products, it can also create value for its products. On the different occasions,
it can customise its packaging. With the help of best marketing team, it can change the
packaging of its products. In different countries, different festivals are celebrated. According
to the culture of the concerned country, it can bring the changes in its packaging. The
innovative approach of the company will persuade the customers to buy the products of
nestle. In addition to this, it can also add some unique features in its products that will help it
in gaining the competitive advantage. the competitive advantage will definitely create the
value for Nestle (Jayaswal & Jewkes, 2016).

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Marketing mix of Nestle
Products of Nestle: In the recent time, Nestle give emphasis on the differentiation strategy
with the effective segment of market. Nestle has several products according to the different
segment. The market segment is based on the age, season, climate, as well as occupation. For
example- it has included the coffee in its products line for the busy people. Besides this, it
also has the Decaf, every day, Café Menu, and Super premium. For the hot season also, it has
introduced the Nesquick who all love the taste of chocolate, and chocolate milk. It is also
specialised in the baby food products for the babies who are less than 7 months. It has also
included the soups of several qualities (Eggert, Ulaga, Frow & Payne, 2018).
In order to maintain the value proposition of its products, it must give emphasis on
maintaining the consistent quality of its products. In the recent time, it is also true that
customers are increasingly demanding the healthy products in order to keep their lifestyle
healthy. The main motive of Nestle is also to maintain the healthy living standard that will be
fulfilled by ensuring the best quality. It is also required to bring some changes such as several
companies are also giving focus on the organic products in the emerging economies.
Therefore, in order to promote the health living standard, it can give emphasis on this too. It
will also answer all the three level of a product. Each level will add the value to customer
(Chaffey & Ellis-Chadwick, 2019). The core reason for buying the Nestle product is to
value
proposition
of Nestle
helath and
wellness
strategy
strong rband
iamge
differentiation
startegy

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promote the healthy living. The second level of the product is the actual product. in this, it
will develop the features of the product, maintain the level of quality, design, as well as
packaging. The second level reveals the level of product in order to build up on each other.
Nestle can therefore state the product name, features, styling, packaging as well as other
attribute in order to deliver the core value for the customer (Nagle & Müller, 2017). The final
level of product is the augmented product. it is built around the actual product and its core
value. If the customer will buy the product of Nestle, they will get the more customer value
(healthy product). It can also start providing the additional customer benefits and services
such as after sales service in the form of feedback (López & Monfort, 2017).
Price: It is true that Nestle targets both type of people whether it is higher class or lower
class. It has included wide range of products in its brand. The prices of Nestle differ on each
of its products. Due to the leader in some of its products, it also charges the high prices. It is
because the quality of product is too good. According to the variety of its products and price,
customers have the different choices to select (Baker Collier & Jayaraman, 2017).
In order to make the entry into any market or any new product, it must use the lower pricing
and differentiation strategy. Under this strategy, it will able to tap the market very soon and
many emerging economies (Davcik & Sharma, 2015). The lower pricing strategy will
definitely persuade the customers to at least try the product for once. The lower price of any
product will encourage the customers to buy that. Besides this, lower pricing strategy also
helps in increasing the value of its other product too. The difference in its new product as
compare to other competitors will help it in gaining more market share as well as customers.
Therefore, it should give its focus on the adoption of these two strategies. Nestle can also
invest in several new products by tapping the higher-class segment of the market. Due to its
strong brand image, it will be able to achieve the growth in its higher price market too. It can
also use the price skimming strategy by keeping the higher prices for some of the product. it
will help it in gaining the maximum profit by targeting the higher class people.
Place: The most of sales in Nestle generates found from the European countries. Besides this,
nestle also follows the FMCG channel of the distribution. Chocolate is one such product
where it finds difficulty. It is because there are several competitors present in this area. In
order to remove the obstacles, it can start opening the stores of its chocolates where it can sell
its customize chocolates as well. Besides this, it can also offer the discounts in the festive
season by ensuring the outlets in several countries. As per the taste and preference of the

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customers, it can start making the different products. It can also start the retail outlets by
contacting with the many suppliers. This will lead to increase its distribution of the products.
In the recent time, customers are also demanding best services at the faster time duration.
Due to this, Nestle can give more emphasis on the online distribution of its products. This
will help the Nestle in gaining more profit by adding the value to process of distribution. It
can also give more emphasis on the opening of more distribution centre. By contacting with
the more retailers, it can increase its channels of distribution.
Promotion: It is true that the Nestle always come up with the innovative ideas in promoting
its products. Nestle also put emphasis on the advertising in order to market its products. For
ensuring the more promotion of its products, it can give more focus on the several
promotional channels such as print media, TV, and hoardings (Key & Czaplewski, 2017). It
can also ask the customers to provide their feedback. The unique feedbacks it can post on its
personal website and channel. The positive feedback on the side of customers will persuade
the other custo5mers too for buying its products. It can also offer the discounts and gifts to its
those customers who will have the highest purchasing of its products (Reason, 2016). At the
time of purchasing its product, it can ask for the contact number of customers that will add
the points in their account. After deciding the criteria, it can accordingly provide the
discounts and various gifts to the customers who are able to pass the decided criteria (Mullin,
2018).
It is true that the hash tag is going viral these days. Therefore, it becomes essential for
the businesses to keep the eye on the new generation. By creating, the hash tag that will be
easily identified with the brand will definitely increase the reach of the products. The creative
design team will help in designing the channels and campaigns (Porter & Kramer, 2018). It
can also ensure the promotion by explaining the product making process to the customers. As
a result, it will also help in generating the revenue and sales. Customer loyalty and trust will
also get increase if customers will come to know their process. By adding the several
products, it can also provide the recipes. In the recent time, customers demand is increasingly
changing that requires the companies to ensure the proper research regarding the changing
taste and preference of the customers.

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Conclusion
In the limelight of above discussion, it can be concluded that Nestle is growing well in
several countries. It has segmented the market on several basis that proves to be effective for
it. However, it can also brought several changes that are suggested in the report. It can
expand its wider market reach by ensuring new and innovation products under its brand. It is
true that customers are increasingly becoming health conscious in recent time. Therefore, it
can included more organic products in its brand.

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References
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