Nestle's Marketing Essentials: Mix, Planning, and Business Objectives

This report provides a comprehensive overview of marketing essentials, focusing on Nestle, a prominent food and beverage company. It explains the role and responsibilities within the marketing function and its interrelation with other organizational units. The report details the 7Ps of the marketing mix, comparing Nestle's approach with that of Coca-Cola and Cadbury. It includes a basic marketing plan for Nestle, outlining SMART objectives, a SWOT analysis, STP analysis (Segmentation, Targeting, and Positioning), and an action plan with budget allocation. The analysis covers various aspects such as product differentiation, channel differentiation, image differentiation, and service differentiation. The report concludes by emphasizing the importance of correct marketing strategies for an organization's success and highlights the key components of the marketing plan, including monitoring and controlling mechanisms using benchmarking and KPIs.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................3
LO 2.................................................................................................................................................3
P3 Comparison of the manner in which different companies use marketing mix to the
marketing planning process of marketing for achieving business objectives..............................3
P4 Basic marketing plan..............................................................................................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
The report is on marketing essentials. Marketing essentials are the necessary elements of
marketing which are essential for an organisation to achieve growth. The organisation taken for
study is Nestle. Nestle is an organisation working in food and drink processing sector and is
based in Switzerland. The report provides explanation of the role and responsibilities in
marketing function. The report explains the marketing role and its interrelation with other
functional organisation’s units. The marketing mix elements have been explained of the 7Ps. The
report gives description of marketing plan. The ways of organisations applying marketing mix
for process of marketing planning for achieving business objectives has been highlighted.
TASK 1
Covered in ppt.
TASK 2
LO 2
P3 Comparison of the manner in which different companies use marketing mix to the marketing
planning process of marketing for achieving business objectives
7Ps of marketing mix
Marketing mix is a tools and tactics with the help of which Nestle company managers can
analyse the current situation of the market in order to develop marketing plan. This section is
focus on analysing the marketing mix of Nestle company with the Coca Cola and Cadbury. The
marketing mix includes the following elements and components: Product: This component of marketing mix define the products and services actually
promote and sell by the company. Nestle company offer variety of foods and drinks i.e.,
multiple products to the customer which is available on different flavours including
chocolates (Ravangard, Khodadad and Bastani, 2020). While on the other hand, coca cola
offers only cold drinks and Cadbury offer only flavoured chocolates which means only
single products. Price: The price of the company's products will decide whether their products are going
to attract customers or not. The Nestle company uses the cost-leadership pricing strategy
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while on the other hand, Coca cola and Cadbury follow value-based pricing strategy to
set their price as per the quality and value of their products in market. Place: Place is the component of marketing mix which state the market area from where
the company can sell its goods to the customers. In such case, Nestle, Coca cola and
Cadbury uses both offline stores and online digital marketing place to offer and promote
its products and services (Do and Vu, 2020). But Coca cola and Cadbury rely more on
online sales while Nestle rely more on offline stores and supermarkets. Promotion: Nestle company's main focus is increasing nutritional value in their food
products while coca cola main purpose is providing only drinks which can easily refresh
the customers (Ravangard, Khodadad and Bastani, 2020). That's why Nestle uses the
advertising technique to promote its good such as newspaper, televisions etc. and on the
other hand Coca cola and Cadbury uses social media platforms to launch their videos and
marketing campaigns. People: They are the employees of the organization which carry out the daily operational
activities of business. Nestle company have large number of people irrespective of their
qualification and eduction and their main objective is to provide proper training and
development to the company. While on the other hand, Coca cola and Cadbury company
hire only high-qualified people and follows the standard operating procedure. Process: The process and system of the Nestle company put focus on availability of
goods all time at their retail store while on the other hand, Cadbury and Coca cola has put
focus on an online delivery service process which make difference between them and
Nestle (Do and Vu, 2020). Nestle company process involve product delivery to stores and
supermarkets and Coca cola and Cadbury process involve direct delivery to customer at
home.
 Physical Environment: The Nestle company sells its products in different colours
packaging in order to make it easily identifiable and also have own website which reflect
high-quality images of the products. While on the other hand, Coca cola and Cadbury
have limited packaging options as they beliefs having same packing improve their brand
image.
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P4 Basic marketing plan
Mission: The mission is providing consumers with best of taste, nutritional choice in range of
food and beverage category and occasion of eating throughout the day (Varma and Ravi, 2017).
SMART objectives
1. Achieving revenue contribution 15% within a year.
2. Acquiring new customers online during the financial year.
3. Enhancing average order value of sales to customer.
4. Increasing active customer purchase of products launched new.
SWOT analysis
Strengths
Brand is world known: It is listed in fortune 500 and one of the biggest company that is related
to food which is measured through revenue. Nestle has branding individually of different brands
of food that help them in awareness creation about brands of food.
Distribution system being extensive: Nestle can get success in urban and rural markets
penetration. There is distribution method that is locally adapted and is decentralised in supply
chain.
Weaknesses
Structure of brand: It has brands of different products which are large in number and managing
individual brands may create conflict of interest. It also happens that due to emphasising on one
brand, focus shifts from other brands which are not performing well.
Legal issues: Company has to steer itself from legal hassles and issues that are deviating from
progress (Varma and Ravi, 2017).
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Opportunities
Healthy breakfast: Healthy alternatives of breakfast can have big time future because alternatives
of breakfast are heavy and people become very conscious about health. Nestle needs to do
market penetration more regarding cereals.
Market expansion: Through market entrance and penetration in the markets of rural areas with a
supply chain that is robust and spots transition of business that is unorganised can lead to
expansion of organisation’s business further. Market expansion can also be increased through
online measures.
Increase in levels of income: Due to political stable scenario that is stable, rate of literacy can
be improved and controlled inflation, there is increase in disposable income resulting in demand
rise and lifestyle change.
Threats
Market competition: Increase in number of local and national competitors it has become difficult
for organisations for differentiating between themselves. Counterfeit products pose a threat
tarnishing the image of brand in market (Sohir, 2021).
Commodities’ price: There is increase in commodities’ price that can lead to price increase more.
Price increase further results in sales decline, switching of brands and margins.
STP analysis
Segmentation
The segmentation is a people’s group who have intension similar to brand that is particular,
different types of market segment and there are divisions of geographic, demographic,
psychographic and behavioural.
Demographic: Nestle’s customer segmentation is based on gender, age and education and
income.
As of age, nestle does not offer product that is same for age groups that are different. For
instance: milo is offered for kids while coffee is provided for adults.
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Income: Nestle has products which are affordable and a common man can also buy the product.
It thus aims at middle class customer whose segment is large and prices of products are kept
within reach of common man (Varshney, 2020).
Occupation: Nestle manufactures products in which a common man with normal occupation can
also buy. The occupation can be of employees within a company, at government offices or small
businesses etc.
Psychographic
The segmentation of products that is based on personality and lifestyle. For instance, kit kat of
nestle is for people wanting to have real chocolate and product of nescafe 3 in 1 is aimed for the
people not having sufficient time to eat.
Behavioural
The nestle segmentation on basis is based on awareness, knowledge and consumer’s attitude.
Targeting
The targeting of the company is on marketing that is differentiated where products that are
different are for segments that are different on age base, job etc. For instance, Nescafe 3 in 1
people have busy schedule with their work, koko krunch are for those wanting to eat real
chocolate and Nescafe ice that is consumable at all times.
Concentrated
Through this form of marketing, nestle gains market value that is strong due to possession of
good knowledge of the customers. Nestle has specialisation in manufacturing baby foods.
Positioning
Positioning has different physical elements that are more based on perception and is about
identifying company’s market position and the attention of customers. It makes the company
stand out in the customer’s view.
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Differentiation
Nestle produce products in large number for target customers where they can produce different
variety of food for kids and manufacturing lactogen and cereals.
Channel differentiation
Nestle sells the products through salesmen who are experienced and safe transportation so
products can reach with ease to customers (Varshney, 2020).
Differentiation of image
Nestle’s logo is different in complete manner from another companies and competitor so there
can be identification easily by the customer. This differentiates the brand from others and is also
famous among competitors.
Service differentiation
Nestle company provides all time help line centre so customer can be accessible easily to
removal of problem and doubt.
Marketing Mix of Nestle
Product: There are business units which are 4 in Nestle that are used for managing products of
food like:
a) Beverages: One of popular coffee brand belong to Nestle and is the cash cows for Nestle.
It is not the cash cow that is biggest. Nestle has distribution world over and has variants
that are different. Nestea was launched by Nestle (Adhikari, 2017).
b) Milk made products and milk : Nestle slim, Nestle everyday, and Nestle Milk maid are
few of the products of milk by Nestle.
c) Chocolates – Nestle has some famous products of chocolate, some famous being Eclairs
and Polo, Milky bar, Munch, Kitkat. The new introduced Alpino targets the segment
gifted in answer to different chocolates such as Bournville.
Price: The price depends on each products’ market. For example, Nescafe and Maggi being the
leader are high priced for the organisation compared to competition. That is because the product
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quality is nice with skimming price not allowing the customer to do switch of brand (Adhikari,
2017).
Place: Nestle is concerned with strategy of FMCG distribution involving bulk breaking. The
Nestle’s strategy of distribution has two different form. This is notable for a FMCG company.
Promotion: The widely known tune is Nescafe tune being the best advertising campaign and it
helped gain popularity for Nescafe. On one hand, Nestle brand got famous through good quality
of Maggi and its campaigns that were innovative. As Nescafe focus on value, Maggi focuses on
moments shared (Kee and et.al., 2021).
Budget
Particulars Amount
Local marketing £1300
Public relations £1200
Content marketing £1500
Social media £600
Online £1500
Advertising £500
Miscellaneous £500
Total £7100
Action plan: For executing the digital marketing plan, the tasks have been allotted to employees
according to skills and capabilities in order for completion of assignment in manner that is
suitable. Managers will have to monitor the actions which have been taken for task completion.
Performance have been evaluated on base of KPIs through which final outcome has been
analysed.
Monitoring and controlling
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Through help of benchmarking and KPIs, managers shall evaluate and monitor employees’
performance. Comparison has been done with targets set as to whether the target has been
achieved or not.
CONCLUSION
It can be summed up that marketing is a diverse subject and an organisation success depends on
the correct marketing strategies. The report discussed marketing role in an organisation and the
interrelation of marketing function in the organisation. It did a comparison of organisations using
marketing as their different strategies. Marketing plan for the organisation was talked about
which did a SWOT and STP analysis of the company, also laid out smart objectives of the
company and action plan for it to follow.
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REFERENCES
Books and Journals
Adhikari, V.P., 2017. Business model and marketing strategy of Nescafé Alegria 510.
Do, Q. and Vu, T., 2020. Understanding consumer satisfaction with railway transportation
service: An application of 7Ps marketing mix. Management Science Letters. 10(6).
pp.1341-1350.
Kee, D.M.H., Syakirah, N.H., Najihah, N., Aliya, N.A. and Sikumbang, N.Z., 2021. How Nestle
Succeed in the Food Industry: A Consumer Perspective. International journal of Tourism
and hospitality in Asia Pasific (IJTHAP), 4(2), pp.84-97.
MAURYA, A., 2020. An Analysis Of Consumers’ Perception Towards brand Nestle.
Ravangard, R., Khodadad, A. and Bastani, P., 2020. How marketing mix (7Ps) affect the
patients’ selection of a hospital: experience of a low-income country. Journal of the
Egyptian Public Health Association. 95(1). pp.1-8.
Sohir, Y., 2021. Analyse SWOT-Nestlé. Publications Études & Analyses.
Varma, G.R. and Ravi, J., 2017. Strategic Analysis on FMCG Goods: A Case Study on
Nestle. International Journal of Research in Management Studies, pp.12-22.
Varshney, V., 2020. CUSTOMER RESPONSE TOWARDS MARKETING STRATEGY IN
CHOCOLATE SEGMENT: A COMPARTIVE STUDY BETWEEN NESTLE &
CADBURY.
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