Marketing Essentials: Nestle's Marketing Plan and Analysis

This report provides a comprehensive analysis of Nestle's marketing strategies, focusing on the application of the marketing mix and the development of a marketing plan for a new energy drink product. The report begins with an introduction to marketing concepts, emphasizing the role of the mark...Read More

Marketing Essentials
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
P3: Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives...................................................3
P4: Produce and evaluate a basic marketing plan for an organisation...................................5
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing means activities undertaken by the company in order to promote effectively the
buying and selling of the products or services. The activities includes promotion, selling,
distribution of good to consumers or to other businesses. Marketing process uses the tool
popularly known as “marketing mix” to attain sustainability in the changing environment. Such
activities identifies the targeted customer and attract them towards the product or services
available (Alqahtani and Uslay, 2020).
The report is based on the company Nestle, is a Swiss multinational company deals in food
and beverages. The company adopts effective marketing activities to promote their products or
services. The leading FMCG Company uses efficient strategies to overcome the changing needs
of the competitive industry. Further Nestle refreshes its strategies to achieve its desired goals.
Thus, the report examines the roles and responsibilities of the marketing function accompanied
by effective marketing tool and plan.
TASK 2
P3: Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives
Marketing mix is the marketing tools help the organisation to achieve its organisational
goals effectively and efficiently. Further to gain competitive advantage Nestle need to compare
its strategies with its competitors in the marketplace (Hansen and et. al., 2020). The comparison
of Nestle and Cadbury are discussed below:-
Marketing Mix Nestle Cadbury
Product Nestle’s premium chocolates
covers large market. These are
Kit-kat. Milky-bar, etc. The
company aims to provide
products which are different
and attractive (Chernev, 2020)
The company deals with the
confectionary products which
are the largest selling products
in the market. These are gems,
dairy milk, 5 star, etc. The aim
of company’s product is to
provide better customer
experience.

Price Price structure is according to
the geographical demand,
market segments and other
factors. Thus, the company has
varied pricing strategy. Most
of its products are based on
competitive pricing. While
some products like coffee are
offered at high price as
compared to its competitors.
The company opts different
pricing strategies such as
skimming pricing for its
product like ores biscuits etc.
in order to keep price high. To
reach large audience the
company focuses on
economical pricing. Also the
company offers bundle pricing
during occasions at a discount
rate (Choudhury, 2020)
Place Nestle, a leading FMCG
company developed its strong
distribution structure in urban
and rural areas. Further its
sales offices focuses more on
rural areas.
Cadbury product are available
worldwide. The products are
available at both rural and
urban areas because of its
robust distribution network. Its
network mostly covers
distributors and retailers
Promotion The company uses the
channels like ATL, BTL and
digital platform to promote its
brand. Nestle has strong
presence with its campaign
#ItallStarts
The secret behind its success
is, the company uses emotional
advertising campaign to attract
consumers. Further
communicates its values and
brands in different states and
regions. It famous tagline is
“Kuch Meetha Ho Jaye”
People The company is performing
social responsibility by
developing new opportunities
of employment. They have
The company recruits many to
join their company. Further
they consist skilled work force
who contribute their best to

trained employees to solve the
queries of the customers. Their
aim is to satisfy customer with
their services
achieve the desired goals.
Physical Evidence The company is setting their
physical evidence by
establishing coffee corners for
their customers with their logo
on vending machines.
The company is providing
them the brochures and
pamphlets and further
company is evident in
entertaining customer feedback
and conducts survey
questioning the buying
behaviour of customer.
Process The company is engaged in
manufacturing its products
with the help of new
innovative technology. The
company knows the
requirement of its customers.
The company keeps a record
of all its process and the series
of actions taken to deliver the
product to its customers
P4: Produce and evaluate a basic marketing plan for an organisation
Marketing Plan
The market plan helps the company in outlining its strategies in respect of its products or
services. It helps the company to gain competitive advantage by attaining sustainability in the
market. Further it creates the position of brand in the minds of segmented customers. Flexible
market plan helps to maintain the consistency approach in the company. In modern era, the
competition has been increased by tremendous competitors in the marketplace. Also the
marketing plan must be accompanied by effective methodology (Khan. and Azam, 2017). The
plan is aimed at highlighting its new product. Apart from it the plan include marketing strategies,
marketing mix adopted by Nestle Company.

Executive Summary: Nestle with the help of marketing strategies is planning to launch its new
product which is the energy drink. The new product will help the company to achieve its
organisational goals effectively and efficiently.
Vision
The vision of the Nestle is to fulfil the expectations of its targeted market, by providing
them the nutritious energy drink. Further delivering products in a high efficient and profitable
manner.
Mission
The mission of this new product i.e. energy drink is pioneer which will give our
customers a unique taste by adhering eco-friendly environment and a competitive spirit among
the confectionary companies.
Objectives
The objectives of nutritious energy drink introduced by the Nestle are:- Unique Taste: It will provide our customers the best energy drink with different flavours.
Further the tasty flavours will influence the kids to taste and try more. Brand Image: It will create a positive image of brand among the rivalry companies. Thus,
will help in creating goodwill of the Nestle company. Customer Attraction: The flavoured energy drink will attract the customers towards the
product. Thus, it help to gain competitive advantage in the business environment.
Attractive tetra pack will also influence customers to try the product. The small gifts with
the energy drink will create strong influence on kids to buy the product.
 Profitability: Increased customers will ultimately led an increase in the revenue of the
company. The company will be able to attain profitability for long term through its
annual sales (Percy, 2018).
SWOT Analysis
The analysis is conducted to understand the internal and external factors affecting the
working of an organisation. It is important to consider both external and internal environment
before launching new product in the market. The main aim is to encourage the company to
maintain its strength and acquire more, minimise the weakness, grab or exploit new opportunities
and eliminate threats in the path of attaining growth and success. Thus, the company used SWOT

analysis in respect of its new product in order to gain sustainability in the competitive
environment (Foutz, 2017). The analysis of energy drink is discussed below.
Strengths
Some of the strengths of the new product are:-
 The company can gain premium brand
image by launching energy drinks
among kids and mothers.
 The quality product accompanied by
various tasty flavour will help to attract
customers.
 This energy drink without caffeine will
ensure the health of its customers.
 The brand’s distribution network is one
of the biggest strength which will help
in availability of product in rural and
urban areas.
Weakness
Negative factors of the energy drink are:-
 The company’s long term growth will
get affected as the company will focus
to raise more fund in launching and
producing new product in the
competitive market.
 The price can be high if it contributes
effectively in creating premium brand
image.
 The energy drink for kids may not be
easily acceptable by the society.
Opportunities
The opportunities in respect of new product are
as follows:-
 The nutritious energy drink will help
the company to fulfil new trends in the
customer behaviour and meet the
objectives of customer satisfaction.
 In the pandemic situation, customers
has become health conscious and thus,
the nutritious drink will be the good
opportunity to improve the business.
Threats
The threats in relation to the new product are:-
 There are many other confectionary
companies which can threaten the
market position of the Nestle.
 The increased cost due to the
innovation of new drink with various
flavours will led a direct impact on the
growth of company.
 The toughest competition by other
companies such as Nutrilite can be a
threat.
STP Marketing Strategies

STP is an acronym for segmentation, targeting and positioning (Pogrebova and et. al.,
2017). The strategy aims to create the segments of the customers according to their preferences
and demand then target the segmented market and finally imprint the brand image in the minds
of the customers. Thus, STP strategy simplifies the complex process of market segmentation.
Segmentation
This is the process of dividing the customers according to their characteristics. The group
possessing similar characteristics are grouped together. The division is done on the basis of their
interest, geographical, needs, demographic and others. The aim is to satisfy the segmented
customers so as to sustain in the competitive market.
 Demographics: The nutritious energy drink is suitable for all age group of people,
aimed at adolescents. Further there in respect of income criteria, the cost of
product does not create any division of status or society.
 Psychographics: It bifurcates the segmented customer based on the variables such
as interests, values, beliefs, lifestyles etc. The energy drink will attract the
customers towards the new innovation.
 Geographic Segmentation: The Company has robust distribution network which
will help in availability of new products in rural and urban areas.
 Behavioural: Nestle updates its strategies in accordance with the changing
consumer behaviour. The pandemic situation caused a great impact on consumer
behaviour. Thus, the company by its new product focuses to provide quality and
healthy product to its customers.
Targeting
The process targets the segmented market and conduct activities to understand their
customers precisely and accordingly make strategy to attain customer satisfaction. Targeting
helps the organisation to whom its wants to offer its products or services. It helps the company to
select the targeted market out of the entire marketplace. It allows the company to concentrate on
the targeted market in order to achieve better outcomes.
The company target the youth audience especially the adolescents for their nutritious
energy drink. As the children are very fond of flavoured drinks. Further creates no division of
status which will create positive attitude towards the targeted market. The energy drink without
caffeine will attract the customers to try the product. The product is the result of its product

differentiation (Saad, 2020). Reasonable price along with offers will also help the company to
attract price sensitive consumers.
Positioning
The process influence the potential customers towards the established brand image. The
process helps the company to position brand image in the minds of its potential customers. It
further helps to maintain image by updating the needs and wants of the customers. The main aim
is to influence consumer perception towards the brand. This strategic tool is generally exercised
by the company in an effective manner so as to derive better performance.
It is important to imprint the positive brand image in the minds of the customers. This can
be done by making the consumers aware about its products or services. Proper positioning help
the company to gain competitive advantage in the market. Thus, the flavoured energy drink will
create desired image of the company. #Feeltheenergy tagline will attract the adolescents to try
the product.
Four P's
The marking tool is applied in order to conduct marketing activities effectively. It will
help the company to implement effective strategy for its new product. Further the company is
required to update the strategies keeping in view the changing environment. As consistent
strategy may led the failure of new product in the marketplace.
Product Strategy
The energy drink somehow will help the company to fulfil the upcoming needs of the
consumers. The product will maintain the positive brand image of the company in the society.
The product strategy of the company ensures that the customer is satisfied with their innovative
products.
Pricing Strategy
Varied price strategy can be used economical pricing to make products available in rural
and urban areas. Whereas skimming can also be used to sustain in the competitive market.
Further company can use bundle pricing during occasions in order to generate revenues.
Place
The product will be available in all the areas with the help of the company’s effective
distribution network. The strong distribution level will make the easily availability of product
both at rural and urban areas.

Promotion
As the product is associated with all class of people thus use of mass media and other
techniques will make sense. Further using celebrities face to promote the energy drink will help
to attract the targeted customers effectively. The company must use the platform of digital and
social media marketing so as to attract customers in short period of time. Also the company may
provide small gifts with the energy drink, as this will create strong buying influence on kids
towards the product. (Valos and et. al., 2017).
Action Plan Budget
The budget refers to a plan with an aim to maintain cost of the company. The action
budget plans are generally formed after the strategy is devised. The marketing budget is required
to estimate the cost in respect of marketing activities conducted by the company to promote
energy drink in the market (Wilson, 2018). Further helps the organisation to outline actions
which are required to be taken in order to achieve the desired goals effectively. The process is
vital as it will help the company to overcome loss during its financial period. The budget for the
new product is discussed below.
Particulars Amount (£)
Marketing 10000
Promotional activity 20000
Plant and machinery 120000
Print media 7000
Total 157000
Controlling and Monitoring
This process provides the company with the necessary course of actions to help the
company to meet its objectives. Further measures ensures that the project or plan is within the
scope and budget or not. The approach helps the company to compare the actual performance
with the planned performance. Also provides the organisation with the other alternatives course
of actions in case the difference is evolved between actual performance and planned
performance. Thus, allow other alternatives to achieve the goals effectively.

To attain goal effectively, Benchmarking should be implemented as it is best practice to
attain the customer satisfaction goal (Wooliscroft and Ganglmair-Wooliscroft, 2018). Thus, the
process will help the company to maintain its brand image in marketplace. Performance
Benchmarking will help the company to take standard measures on the bases of data gathered or
collected. Thus, will help the company to implement its business plan effectively and efficiently.

CONCLUSION
With the above context, it is concluded that the marketing activities are essential to
achieve the desired goals in the market. The report examined the roles and responsibilities of
marketing function in an organisation. Further effective marketing tools help the company to
perform better in the targeted market. The report discussed the new product called energy drink
launched by the Nestle Company in the market. Further the company formed effective business
plan with appropriate marketing strategies so to derive better outcomes. The company evaluated
the targeted market involving potential customers to make the product successful in the
competitive market. Accordingly strategies and approaches are applied in order to achieve
growth and success in the competitive market.

REFERENCES
Books and Journals
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pp.47-55.
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Valos and et. al., 2017. Integrating social media within an integrated marketing communication
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Wilson, A., 2018. Marketing research. Macmillan International Higher Education.
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