Nestle's Marketing Principles: Launching New Herbal Drink - A Report

This report delves into the marketing principles guiding Nestle's introduction of a new herbal drink. It examines Nestle's existing brand and values, defining the target market through demographic, geographic, and psychological segmentation. The report analyzes the new market using PESTLE analysis, focusing on social and environmental factors, and employs Ansoff's Grid to explore product development strategies. A detailed description of the herbal energy drink, including its ingredients, target demographic (teenagers to young adults aged 20-40), and brand positioning (qualitative items at reasonable cost), is provided. The report also includes a comparative analysis of Nestle's competitors in the food sector, such as Mondelez and Mars, and concludes by highlighting the importance of marketing in creating demand and selecting target consumers.

Principles of
Marketing

Executive Summary
This report discusses the marketing principles that will termed to the actions of the business that
undertakes to advertise the purchasing or selling of the goods or facilities. Marketing involves
promotion, merchandising, selling and delivering goods to customers or other management. It
involves brand value and description of products of new product variations.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION ..........................................................................................................................4
Methodology....................................................................................................................................4
TASK...............................................................................................................................................4
Existing brand and Brand Values ...............................................................................................4
Description of the Target Market................................................................................................4
Analysis of the New Market, Including Trends..........................................................................5
An Explanation of the New Product...........................................................................................5
Comparative Analysis.................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
Appendices.......................................................................................................................................8

INTRODUCTION
Marketing will relates to the activities and business that undertake to draw in consumer and
manage dealings with them. Managing dealing with potential customer is the part of their work
to promote their brand and increase brand value (Ahmad, and et.al., 2021). The management
consider in this report is Nestle. It is a Swiss multinational food and drink management whose
headquarter is in Switzerland. In the following report new product named herbal drink in varied
flavours. The report covers the scenario of existing brand and brand value, description of the
target market, analysis of the new market with their trends, description about new products and
at comparative analysis.
Methodology
It will lead to analysis of the factors that are secondarily based on qualitative facts and to
evaluate it about the frequency distribution examined might be use by researcher.
TASK
Existing brand and Brand Values
The management of Nestle presently have over 2100 brands with wider term of products
that are dealings in varied term of market with the suitability of coffee, water bottle, milkshakes
and other beverage items, healthcare nutrition, seasoning, soups and sauces, frozen and
refrigerated foods and pet foods.
Vision of Nestle - As the Vision of Nestle is to maintain their term of the standards and
also managing effective term of leadership positioning in the field of the market place by
offering higher superiority facilities to consumers (Bondarenko, and et.al., 2021). The
management want to develop an efficient business culture by executing the terms of the exercises
and offering training and coaching to candidates that will help them in retaining them for longer
period of time.
Description of the Target Market Market segmentation – The marketing segmentation are based on demographic section
that involves age, gender, income, education. On the other hand, Geographic have

cultures and nation wide interest. And at last psychological will involves attitude, aspects,
knowledge, awareness, needs and behaviour of customers. Market targetting – The management of Nestle chooses distinguished marketing that
they offers diverse goods for varied term of sections as per to the age, occupation,
seasons, climate, gender etc (Brorewongtrakhul, and Kunthotong, 2021). By focuses
marketing the Nestle that has hold an effective and strong market value due to its
potential term of the knowledge of their consumers.
 Market positioning - The positioning have varied number of its physical factors to
determine that where the position of business exist in the eyes of customer. It has varied
term of market responsibilities that include all the marketing mix.
Analysis of the New Market, Including Trends
PESTLE analysis Social factor – As there are several sort of the factors that involves in social components
like number of youth in the nation, lifestyle of individuals and their social term of status.
As in the contemporary world of culture, it attracts towards the consumption of energy
drink that will increase the global term of opportunities for management. Environmental factor - The disposable of waster material is the biggest issues that are
faced by Nestle that will directly get affected on its managerial sustainability. As the
management will adapt waste recycling procedure and increase the utilisation of
aluminium cans that will secure the environment from their harmful effects.
Ansoff’s Grid
 Product development - In a product development tactic, the management will create a
new goods to offers the present section of the market. It will include an extensive range
of the research and growth of the progression of the business product range (Gunarso,
and et.al., 2021). As the product growth strategy is engaged when the business have an
effective by understanding of their present market and are capable to offers creative
answers to satisfy the requirements of the present field of the market place in an effective
and efficient term of the manner.

An Explanation of the New Product
Product or service of Herbal energy drink - The management of Nestle offers herbal drink
with having low term of caffeine and sugar that will raise high energy. The item is sale in the
packaging of blue colour that can have all source of data about item ingredients. Goods have
several ingredients like vitamin, herbs, nutrients and so on that makes it fitter and energetic.
Demographic of product – Herbal drink target consumers are teenager individuals with the age
among 20 to 40, young and as well as adults (Kipnis, and et.al., 2021). Respective management
targets both males and as well as females.
Brand Positioning – Herbal drink manages high term of goodwill in the mind set of their
consumers by offering qualitative items at reasonable cost (Ramli, and et.al., 2021). The
management of Nestle, promotes and sponsors several terms of the events to spread the
awareness about mental and as well as physical health care.
Comparative Analysis
Competition - One of the popular goods of Nestle are chocolate that is chocolate bar. It has been
liked by various individuals and also sold in various nations. As there are various competitors of
Nestle like Mondelez, Mars, Kraft foods, Danone, Hershey's and so on. They have high term of
portfolio of goods and services in food sector (Sulistiyani, 2021). As on the other hand, Nestle
will concentrates on the fact to create and offer higher qualitative and healthy food items.
CURRENT VALUATIONS
BRITANNIA NESTLE BRITANNIA/
NESTLE
P/E (TTM) x 54.6 82.6 66.1%
P/BV x 24.5 91.7 26.7%
Dividend Yield % 4.7 1.0 455.6%
CONCLUSION
From the above mentioned report it has been concluded that, marketing is the procedure of
advisedly challenging demand for the purchasing of the products and facilities with high term of

potentially that involves selection of the target consumers and at last it will choose the particular
term of the aspects and attributes of the competitors.

REFERENCES
Books and Journals
Ahmad, A.N., and et.al., 2021. Positioning HalalanToyyiban in Halal Food System: Production,
Processing, Consumption, Marketing, Logistic and Waste
Management. Halalpshere, 1(2), pp.17-40.
Bondarenko, O., and et.al., 2021. Improving Approaches to the Formation of Enterprise's
Marketing Budgets.
Brorewongtrakhul, S. and Kunthotong, T., 2021. Guidelines for Marketing mix strategies
Development of Coffee shop entrepreneurs and Factors Marketing mix affecting the
Consumer’s making to choose Coffee shop. Psychology and Education Journal, 58(4),
pp.1976-1979.
Gunarso, D.,and et.al., 2021. Digital Marketing Calendar untuk Bisnis Kuliner: Pendampingan
Social Media Instagram. Jurnal Abdi Masyarakat Indonesia, 3(2).
Kipnis, E., and et.al., 2021. Institutionalizing Diversity-and-Inclusion-Engaged Marketing for
Multicultural Marketplace Well-Being. Journal of Public Policy & Marketing, 40(2),
pp.143-164.
Ramli, Y., and et.al., 2021. The Implication of Digital Marketing that Influence the Political
Decision to Vote. Ilomata International Journal of Management, 2(4), pp.281-291.
Sulistiyani, P.T.P.H., 2021. Model of Product Quality Development on Marketing Performance
in Semarang District.

Appendices