Nestle's Marketing Plan: A Report on the Australian Market (Marketing)

This report provides an analysis of Nestle's marketing management, focusing on its position in the Australian market. It begins with an executive summary highlighting the company's strengths in the breakfast cereal sector and the competitive pressures it faces. The introduction explains the significance of marketing management and its application to Nestle's operations. The report then provides an overview of Nestle, its product offerings, and its global and Australian market presence. It examines the current market position, including market growth statistics, and compares Nestle to competitors like Carman's Fine Foods and Lion. A perceptual map illustrates Nestle's positioning in terms of quality and price. The report then delves into market segmentation, detailing the target customer segments based on geographic region, demographics, and behavior. Finally, the report discusses the positioning of Nestle in the Australian market, emphasizing its high-quality, premium brand image. The report concludes with references to sources used.

Marketing Management

MARKETING MANAGEMENT 1
Executive Summary
The main objective of this paper is to learn to develop the marketing plan. Nestle has been taken
into consideration for analyzing its current position in Australian market. According to current
analysis, it has been seen that Nestle is the best company in terms of supplying breakfast cereals.
There is also other company that offers the similar food to consumers due to which those gives
the high competition to it. The perceptual map has been used to examine its position in market
and it is observed that the company provides the high quality of food with the high cost.
According to market segmentation, the company target the particular type of consumers that is
why; it is suggested that it has to set some new targets so that it provides more services and gain
the competitive advantage in the market.

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Introduction
Marketing management is the organizational discipline those attentions on the practical
applications of marketing orientations, techniques and methods. The company marketing
resources and activities are considered in marketing management. Marketing activities are
essential for the concern in order to promote the goods and services in the market. There are
different channels that can be used by the companies to promote the goods such as
advertisement, campaigns and the others (Dietrich, Rundle-Thiele, & Kubacki, 2017). In this
report, the discussion is made on the topic of marketing management. Nestle has been taken into
consideration to target the market to increase the volume of sales. Corn Flakes provided by the
company as a cereal product of breakfast for customer has been selected to target the market. In
the beginning of this report, the current situation of the company will be discussed. After that,
factor has been evaluated that affects the consumer’s behavior to buying the products. At the
end, target market of the company has been evaluated.
Overview
Nestle is a swiss multinational company of food and drink. It operates the business in
Switzerland and all over the world. It is the largest food organization in the world in terms of
revenue and other metrics. In Australia, it is also considered as one of the largest food and
beverage companies in terms of revenue and sales. It faced the challenges while expanding the
business at the international market such as social challenge, economic challenges and the others.
It offers the different products related to breakfast such as baby food, coffee and tea, breakfast,
dairy products, ice creams, pet foods and the others. There are 29 Nestle brands those have
annual sales over 1 billion. It has 447 numbers of factories that operates the business in 189

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nations. The workers help the firm to operate the business in the food and beverage market
successful such as it has 352000 numbers of employees in the market. Corn Flakes of the
company are also a major product which is selling by it as a breakfast cereal (Nestle, 2018). The
company produces this product according to requirements of potential consumers and existing
consumers. Health conscious consumers are increasing in Australian market due to which the
demands of Corn Flakes are also increases. There are also some other companies that provides
the Corn Flakes to consumers with the different strategies in the market.
Current market position
The Food and Beverage market of Australia has been increases to US$1855m in the year
2020. It is expected that annual growth rate is 7.9% and the market volume is US$2516m by the
year 2024. The average revenue per users is US$330.42 (Statista, 2018). The statistics depicts
that Australian food market has been growing and it is also observed that health conscious
consumers are also increasing in the market due to which the sales of healthy product has been
increases.
Nestle is one of the largest food and beverage firm in the industry. There are
approximately 4410 number of people that operates the business in Australia and Fiji. It is a
wholly owned subsidiary of the Switzerland which is based on food and beverage manufacturer
(Bloomberg, 2019). Carman’s Fine Foods and Lion are the other companies of Australia that
provides the Corn flakes to customers as their breakfast cereals. The consumers are also
preferred the corn flakes of Carman’s Fine Foods and Lion. Carman’s financial statement
represents that the financial position of the company is strong and its income is $75 million. The
sales revenue of Lion is 4016100 which state that the financial position of the company is high as

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compare to the competitors (IBIS World, 2018). Lion is one of Australia’s leading firm in food
and beverage industry in terms of revenue and sales volume. It is also noticed that the Lion
Company also associated with the National Advertising Association due to which it is set as the
higher priorities instead of the other companies. Lion Company also preferable by the customers
as it is local manufacturing company and also have more faith of consumers as it provide the
services after the approval of Australian government. As per the above discussion, Nestle is one
of the biggest companies in Australian market that offers the flakes in high quality with the
moderate prices but have high threat of competitors such as Lion.
Perceptual map
The perceptual map defines the position of the company in the market as compare to its
competitors. Nestle is one of the leading companies in Australia in Food and Beverage industry
that offers the quality of Corn Flakes to customers. The company offers the high prices of corn
flakes with the high quality to customers as compare to the other companies.
Map
High Cost
Low
Quality
High Quality
Lion
Carman
Nestle

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As per the above perceptual map, it is observed that Nestle is one of the leading
companies that offer the different services to customers. In terms of quality and price, it has been
seen that the Corn Flakes of Nestle is more popular as compare to Lion. Carman’s provides the
low quality and high cost of flakes to customers due to which its decision of customers has been
affected. Lion also offers the high quality of facilities with the low cost due to which it gains the
competitive advantage in the market. Nestle provides the Corn Flakes in high quality with the
high prices due to which the customers always prefers the company’s product in high quantity as
compare to the competitors. Lion is the main competitor of Nestle as both the companies such as
Nestle and Lion are the leading companies of Australia (IBIS World, 2018b). The decisions of
customers are also affected due to the decision of government. Lion is also gain the competitive
advantage due to which it is difficult for Nestle to beat the competitors. As per the above
analysis, it is represent that Nestle at the high position in competitive market, Lion is one the
second number as it also gain the advantage in competition, and the last is Carman (D&B
Hoovers, 2018). Carman’s offers the Corn Flakes in low cost but still it is not a threat for the
Nestle to beat the competitors (Lion, 2019).
Market segmentation
Market segmentation is the procedure of allocating the market in different segments in
order to target the customers. Customers of the company are also divided into groups, segments
which is based on different features. The segments of the market are developed on the basis of
consumers those can respond similarly to marketing strategies and who share the same
Low Cost

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personalities and taste. The different segment defines the market of the organization such as
geographic, behavior, gender and the others (Kartajaya, Kotler, & Hooi, 2019). This helps the
company to target the customers to gain the advantage in the market. Market segment also
decreases the risk of failed or ineffective marketing campaigns. The market segmentation split
the market on the basis of characteristics, and personalize due to which their needs and wants
also get satisfied. In order to target the specific buyers for the firm helps to gain the competitive
advantage as they respond quickly and effect (Camilleri, 2018). Marketers also provide the
priorities to those consumers that are targeted by the company for providing the services due to
which it has to analyze their behavior so that their demand and wants will be satisfied.
Positioning defines the position of the company in the market in terms of quality and prices.
Nestle also used the technique and framework in order to grab the market share in the Australian
market (Fee dough, 2018).
The market segmentation of Nestle will also discuss in this paper in detail and that have
been described below:
Segmentation Type
Segmentation Criteria
Target Customer
Segment
Geographic Region Nestle is available in
all over the world and
in Australia, it also
provides the Corn

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Flakes in different
locations
(Schlegelmilch, &
Bodo , 2016).
It supplies the large
variety of goods to
customers due to
which its achievethe
competitive
advantage in
Australian market
Density Urban/ rural areas
Age The main target
consumers of the firm
are 18 and above.
Demographic Gender Men, Women, Kid
and the others
Occupation Not required but
profession,
businessmen,
students and
teenagers consume
more quantity of
flakes as compare to

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the competitors.
Life Cycle Stage Lifetime
Loyalty High brand loyalty as
it delivers the
excellent quality of
goods and services.
The company uses
the high quality of
raw material and
ingredients for the
high quality of
services.
Behavioural Behavior Health conscious
consumers,
professionals and
businessmen and
those who stay far
away from their
home (Woolworths
Group, 2018c).
Psychographic
Social class, lifestyle
Upper class and
middle Class

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As described in table, it has been seen that the company target the health conscious
consumers, business people, professional and the others. There is no age is required for selling
the products to customers but mainly 18 age or above. Upper and middle class has been also
targeted by the company. In Australia, it is observed that the consumers are more health
conscious as they follow the diet chart and consume the light food. The product of Corn Flakes
states that the company provides the services in life time (Durand, 2018).
Positioning
As discussed above in perceptual map and in competitive analysis, it is observed that the
Nestle set the market position in Australian market. It has been found that the company offers the
high quality of goods to consumers with the high cost. It sets the mentality of consumers as the
premium brand as it offers the Corn Flakes with the high cost with the low quality. It is observed
that the market position of the company helps to attain the competitive advantage as the
consumers of the company target it on the high priorities just because of its high quality. The
middle and upper class is also set in positioning map of the company as it helps to grasp the
market share in the market (Simon, & Fassnacht, 2019).

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References
Bloomberg. (2019). Nestle Australia Ltd. Retrieved From:
https://www.bloomberg.com/profile/company/1390Z:AU
Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel Marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
D&B Hoovers. (2018). Carman's Fine Foods Pty Ltd. Retrieved From:
http://www.hoovers.com/company-information/cs/company-
profile.carmans_fine_foods_pty_ltd.61e4b5e1bdd2e6d3.html?aka_re=1#financials-
anchor
Dietrich, T., Rundle-Thiele, S., & Kubacki, K. (2017). Segmentation in social marketing.
Springer Singapore:.
Durand, A. (2018). Marketing and Globalization. Routledge.
Fee dough. (2018). Marketing Essentials. Retrieved From: https://www.feedough.com/market-
segmentation-definition-basis-types-examples/
IBIS World. (2018a). Lion Pty Ltd - Premium Company Report Australia. Retrieved From:
https://www.ibisworld.com.au/australian-company-research-reports/manufacturing/lion-
pty-ltd-company.html
IBIS World. (2018b). Nestle Australia Ltd - Premium Company Report Australia. Retrieved
From:

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https://www.ibisworld.com.au/australian-company-research-reports/manufacturing/
nestle-australia-ltd-company.html
Kartajaya, H., Kotler, P., & Hooi, D. H. (2019). Marketing Strategies For Value Exploration.
World Scientific Book Chapters, 127-148.
Lion. (2019). About us. Retrieved From: https://www.lionco.com/about-us
Nestle. (2018). Breakfast Cereals. Retrieved From:
https://www.nestle.com.my/brands/breakfast_cereals
Schlegelmilch, B. B. (2016). Segmenting Targeting and Positioning in Global Markets. In
Global Marketing Strategy (pp. 63-82). Springer, Cham.
Simon, H., & Fassnacht, M. (2019). Price Strategy. In Price Management (pp. 29-84). Springer,
Cham.
Statista. (2018). Food & Beverages. Retrieved From:
https://www.statista.com/outlook/253/107/food-beverages/australia