MU Store: Strategic Marketing Plan for Nestle Toll House Cookie

This report presents a comprehensive marketing plan for the introduction of Nestle Toll House Cookies in the Maldives, focusing on the MU store. It begins with an introduction and environmental analysis, utilizing PESTLE and SWOT analyses to assess the external and internal environments, respecti...Read More

MARKETING & MANAGEMENT

Contents
Introduction................................................................................................................................3
Environmental Analysis.............................................................................................................3
Strategic marketing plan............................................................................................................7
Strategy direction.....................................................................................................................10
Marketing mix analysis............................................................................................................11
Cross-functional needs.............................................................................................................14
Conclusion................................................................................................................................14
References................................................................................................................................16

Introduction
Company Introduction
MU store is longest established, identified, and trusted brand chain in nation`s wholesale
industry. Since last 35 years, the company is dedicated in availing and finally distributing
valuable and affordable items in nation. The mission of the organisation is to source best
quality coffee particularly at reasonable price.
Product
The Maldives’ segment aims to deliver quality coffee to customers, which aims to bring new
product named as “Nestle Toll House Cookie.” This franchise of Nestle has the charge of
creating cookie store in US. MU store has the ability to importing, use marketing campaigns,
and distribute “Nestle Toll House Cookie.”
Environmental Analysis
Selected model for external environmental analysis is PESTLE Analysis-
Political factors Economic factors Social factors
This factor play a
crucial role, which
affects the trade
procedures.
Stable and free foreign
trade policies (Rastogi,
and Trivedi, 2016).
Economic indicators show
the demand of the product
through GDP, per capita
income, and purchasing
power. PPP (purchasing
power parity) is estimated
at USD 15553 with GDP
MVR 27.70 billion in 2016
(Health.gov, 2019).
With increasing tourism,
the demand of tourists
have improved the income
level and GDP of
Maldives.
There is higher concern for
food, and personal health
(Bîrsan, Shuleski, and
Cristea, 2016).

Maldives is a tax-free
nation with limited taxation
of few imported goods.
Technological factors Legal factors Environmental factors
1. advertising
campaigns
2. Online promotional
activities
Majority of food staples
are imported especially
flours and sugar, this
necessitates the
implementation of food
security policy (Vintilă,
Filip, Stan, and Ţenea,
2017).
Malnutrition is major
concern for Maldives
people, which forces
government to bring
sustainable management in
imported goods
(Health.gov, 2019).
Climatic changes have
become severe threat to the
existence of Maldives.
It includes coral mining,
sewage disposal,
population issues, and
beach erosion (Islam, Al
Mamun, and Amanullah,
2017).
The selected model for internal business environment analysis, SWOT analysis has been
used.
 SWOT analysis

Strengths Weaknesses
 Introduction to redesigned items
 Accessibility of appropriate
distribution channel (Phadermrod,
Crowder, and Wills, 2019).
 Nestle was recently called for food
contamination.
 This can lessen the MU store`s
support for Nestlé’s Cookie Toll
(Aithal, 2017).
Threats Opportunity
 Unnecessary cost addition due to
distribution and marketing service
of MU store (Jiang et al., 2018).
 Competitor`s threat from
Pillsbury, Pamela, and Kellogg
 Offering gluten free Nestle cookies
 Maldives tourism has shown
increase in growth rate of 1.7
percent in food demand in 2016.
This shows there is greater chance
to become a holiday snack and
earn higher profits (Bull et al.,
2016).
Critical evaluation
 Influence on external environmental elements towards future marketing activities
Factor implications Critical examination
Political Stable political
environment avails a
chance to import new
product (Nestle Toll House
Easy accessibility of
imported goods will lead to
increasing revenue

Cookie).
Social Due to heath concerns, the
demand of glue free
cookies have been
increasing.
Restriction on excessive
sugar cookies
Gluten-free products will
increase the cost.
Economic Being tax free state,
importing cookies will be
easy.
Increasing profit for MU
store
Legal Implementation of food
security policy laws will
safeguard consumer
interest.
MU store will have to
attention towards its
distribution channels.
Technological Addressing advertisement
campaigns and online
promotional activities
It will help to increase the
sales of Toll Nestle
Cookie.
 Influence on internal environmental elements towards future marketing activities
According to author Bellver et al., 2019-
Factors Impact Critical evaluation
Strengths Brand equity of Nestle
will help in succeeding
Gluten free Cookies.
Easy access to MU store`s
distribution services.
Author agrees to the
impact on brand equity of
Nestle.
Easy accessibility will
encroach more customers
Weaknesses A recent news called MU store has too careful

“Nestle” for food
contamination
while checking the
quality of cookies.
Threats MU store will add cost to
product.
Competitors threat
Nestle should come up of
its own to introduce its
new product in the
market.
Opportunity Youngsters are quite
health obsessed forces the
company to make gluten
free cakes.
Health freak tourists will
often prefer gluten free
cakes, which increases the
profit of the company.
Strategic marketing plan
Proposed segmentation plan
According to Kotler, market segmentation undertakes to understand the wants of customers
and satisfy them. It divides the group of potential customers into groups on the basis of
features, interests and needs. The segmentation is based on geographical, demographic,
behavioural, and psychographic (DeSarbo, Blanchard, and Atalay, 2017).
Basis Application
Demographic Gender- Male, kids and females
Age Groups-
Youngsters and kids (4-30 years)
Cookie does not offer same value for all
potential all age groups
Therefore, the preference of nutritional

value depend on nature of individual.
Cookie has different flavours caramel,
milky, chocolaty, and high protein with
gluten free.
According to above evaluation given by Schlegelmilch, 2016, MU store will be able to
effectively distribute and market the Nestle Cookie because it has become easier after
analysing the segmented customer in each segmentation base. On the basis of Behavioural
segmentation, it depends on awareness of content of Cookie and attitude while purchasing it.
Geographical segmentation comes up with segmented market area for Toll cookie of Nestle
depending on geographical weather, which includes warm chocolaty cookies, is best for
winters and normal cookie tastes quite well with cold milk Further, MU must distribute to
famous hotels where tourists are more.
Proposed target market
The selected target market for Nestle Cookie has been outlined in the demographical and
geographical segmentation. The aim is to find and understand the need of the customers and
propose marketing strategies in accordance to it.
Segmentation base Application
demographical and geographical segmentation Demographic age includes people
aging between 4 years to 30 years.
Kids and youngsters are the target
market for Cookies.
Tourists around the famous hotels
must have easy access to cookie

stores.
With changing needs, fluctuating behavioural attributes, personality, and wants of customers,
it is seen that Youngsters are thrill as well as fitness freak, who wants to enjoy their
destination with best tasty food definitely prefer gluten free cookies as their snack. While
feeding kids, it is tough to carry food items as luggage so high nutritional value of cookie can
often feed kids. Nutritional value will include Vitamin D, minerals, milky, full cream powder,
and protein. These elements will not lead to food poisoning. This targeting is based on the
tourists, who already have a considerable income level.
Proposed positioning strategy
On the basis of chosen target market (age group between 4-30), MU store has to undertake
appropriate positioning strategies to achieve maximum revenue.
Positioning strategy Application
Differentiation Differentiation of packaging for different
age groups for cookies with an aim to attract
children
MU store has come up with differentiated product, which is a gluten free imported Nestle
Cookie. Nestle has completely differentiated its channel of distribution, which markets the
product (Stead, M. and Hastings, G., 2018). MU store can easily avail cookies near the
famous hotels, which ensures that the quality of the imported products remains safe.
Positioning will need the organisation to bring marketing strategies such as engaging young
bakers who use Google and YouTube to reach millennial.

Strategy direction
Ansoff matrix has been used for Nestle cookie to examine future growth strategies
(Yenidogan, and Aksoy, 2018).
Marketing performance targets
These SMART goals will aims to increase sales by 20 percent each year, increase brand
awareness by 10 percent, and increasing market share by retaining appropriate product
responsiveness (Yin, 2016).
Selected strategy Strategic direction
Product development  Introducing to the Maldives market
through MU store
 Extensive research conducted
above indicates that it has large
customer base
 Collaborating with the advertising
campaigns
Proposed performance targets for upcoming three years-
Criteria Sales volume Profits
1st year 4000 units $700
2nd year 5000 units $1000
3rd year 7000 units $1400
According to the Bellver et al., 2019, it is seen that proposed marketing strategies have to
effective to attract target market and meet performance targets proposed.

Marketing mix analysis
Marketing mix is the defined set of actions, which an organisation uses to promote the brand
in market.
1. Product
Nestle Toll House Cookie avails best tasting chocolate flavoured cookie in America.
Recently, nestle has planned to expand and promote this product in Maldives with the
assistance of MU store, which is a marketing and distributing company. In Maldives, Cookie
come up with different types of flavours in order to attract different age groups especially the
target market of people aging between 4 years to 30 years (Ramani, and Srinivasan, 2019).
Flavours offered will include cocoa cookie, vanilla sugar, cocoa butter, organic cookie,
bittersweet chocolate, milk flavoured cookie, and vintage based cookie. Further the offerings
are limited to chocolate and milk based, it also includes salted caramel cookie, Bourbon
caramel cookie, chocolate caramel cookie, almond caramel, and Rose water, caramel with
orange extract. The cookie will consist of nutritional value with high protein, milk extracts,
Vitamin D, minerals, and full cream powder, which can be proved as best snack for fitness
freak people. The parents will not have carry luggage for food so that they can feed their kids.
Cookies have the essence and high nutritional value for kids too (Festa et al., 2016).
Action plan
Criteria 1st year
Sales volume 4000 units
Organisational Profit $700
2. Pricing strategy

The price of Nestle Toll House Cookie is on the basis of quality of the product. The price
depends on the customer base of each types of cookie. Although, Nestle is often
overpriced because of high margins it creates over its competitors. MU store ensures that
it avails best quality product and cookie, which will not allow switching the brand. Nestle
Toll House Cookie will surely make creative packaging, which will differ from age to age
because glittering packing will definitely attract kids. For the chocolate based cookie, the
price will range between $3 to $4. Furthermore, cookies for kids have smaller size as
compared to the cookies offered to younger people so as the price. The cookies for kids
will be nearly $.7 to $1 especially the milk based and mineral based cookies. Other
caramel based cookies will be priced hike nearly to $3 to $8. The pricing is based on
packages of 6 pieces in the bar shaped packet same as the dark fantasy packet (Stead, and
Hastings, 2018).
Action plan-
As mentioned above in the product decisions, the company will earn $700 by selling 4000
units. Initially, it will have to bring its product at low price. However, once the cookie is able
to attain greater market share, cookie can increase its price and earn more profits.
3. Place decision
Placement for cookie is totally based on place where maximum target market audience is
situated. According to the segmentation, targeting, and positioning, target market include
youngsters, tourists, and people ageing between 4-30 years. Nestle Toll House Cookie
will follow MU store`s (channel of distribution to the retailers) (Akbar, Omar, and
Wadood, 2017). This will include distributors and retailers such as cafes, hotel cafeteria,
online MU store, and small retail shops. Once they attain a greater market share,
distributors can avail high discounts to retailers to offer customers.

Action plan-
MU store and Nestle Toll House Cookie can attain estimated profits and sales only when it
places its products near to tourists place.
4. Promotional mix
To reach out the potential customers, MU stores can directly engage hoardings on their
channel and vehicle of distribution. This is a way to market the product. MU store can ask
modern and famous bakers to share their recipes for gluten free cookies and upload it on
YouTube, and Google. This medium can better reach millennial and also a proper content on
these social media as be made more realistic and story based. For example- A kid is feeling
hungry and in order to provide both tasty as well as nutritional value to the Kid`s food,
mother may prefer to add milk flavoured nestle cookie (Stead, and Hastings, 2018). The
company will prefer to run a marketing campaign in which tasting each of the flavour
available is free but only when a customer plans to buy cookie. The company will use social
media and other online sources to advertise the product and induce them to taste and analyse
whether it meets their nutritional needs or not (Camilleri, 2018).
Action plan
Campaign type Budget (Projection cost)
Public relations
1. Public events
2. Hoardings
$3000
$700
Local marketing
1. In-store marketing
2. Newspaper
$600
$2000

Cross-functional Availability
The product does not have any available cross functions because the product is a new product
to Maldives market supported by MU store (Yin, 2016).
While analysing the cross functions, which has assisted to achieve the performance targets
include human resource management, infrastructure, procurement, outbound logistics, and
technological development, marketing and sales (Nazarko et al., 2017).
Value chain analysis
Elements Application
Human resource  Sales team, research term, marketing
team, chefs, and distributors
 Employee competency is important
for the development of innovation to
coordinate with cross-functional
activities.
Technological development  This factor is quite important
because social media and other
advertising campaigns can help to
increase revenue (Sawhney et al.,
2017).
 Quality of product is important
where reputation of organisation is
maintained for both MU Store and
Nestle.
Firm infrastructure  In order to support and create a new

cross-functional, MU store will need
warehouse at ports.
 The firm can receive cookies from
the port and store them in an
appropriate way.
Procurement  The procurement team will assist to
create responsible sourced supply in
creating value.
 Supply chain supports in storing and
transporting the products in meeting
customer`s needs.
Performance targets 1-
In order to achieve the above stated profits-
MU store and Nestle will have to streamline and work on smarter management concepts.
Smart procurement and vendor relations can be the critical success factors (Dabbagh, Lee,
and Parizi, 2016). These goods range from efficient raw materials to supplies, which can
support departments procured from different vendors to achieve sales each year. The pricing
strategy is based on the demand of the customers in Maldives (Portugal, and Prado Leite,
2019).
Criteria Sales volume Profits
1st year 4000 units $700
2nd year 5000 units $1000

3rd year 7000 units $1400
Performance targets 2-
Supply chain management has selected its importance when they are serving business
operations. The human resource will need training, MU has to recruit team to delegate, and
sale cookies so that it can sell the product as soon as possible and dead stock will be limited.
To understand the strategic supply chain, use of data on technology will help to maintain
vendor relationship. Cost of operations will integrate and conduct automation by increasing
operations to save time in business operations (Dabbagh, Lee, and Parizi, 2016).
Performance targets 3-
Cross-functional units will need attention so that the company can undertake to achieve the
required sales within the available resources. Firm infrastructure will need refrigerators in
summer, which will increase the indirect costs of the MU store (Jiang, Mao, Hou, Wu, and
Tan, 2018). Furthermore, import will need to pay excise duty if it remains on port for more
days. Therefore, MU store will have to purchase or lease a storehouse to keep these cookies
and appoint a logistics manager according to it (Yin, 2016).
Conclusion
From the above discussion, it is seen that gluten free cookies have been introduced to the
Maldives market with the help of MU store. The report has undertaken marketing strategies
with the help of marketing mix so that plans can be made to reach customers. An appropriate
reach has been conducted by analysing internal and external environment of the Maldives,
and MU store to know the suitability of Nestle Cookie. For analysis, SWOT is used for
internal analysis and PESTLE analysis is used for. Further, marketing strategies were

proposed on the basis of segmentation, targeting and positioning into the consumer`s mind.
Moreover, marketing plan has considered the SMART goals while designing the budget. The
product definitely engages cross-functional activities such as Human resource, firm
infrastructure, outbound logistics, inbound logistics, sales, and marketing.

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