Strategic Marketing Plan and Analysis: Nestle Company

This report offers a comprehensive analysis of Nestle's marketing management, beginning with an introduction to marketing principles and a company overview. It delves into Nestle's situation analysis using Porter's Five Forces and PESTLE analysis, identifying opportunities and threats. The report examines Nestle's strategic priorities, objectives, and the application of the BCG matrix. It outlines strategic marketing planning steps, including mission setting, situation analysis, objective setting, and strategy development, incorporating the 7Ps of the marketing mix. Integrated marketing approaches, campaign channels, and various promotional techniques such as advertising, personal selling, public relations, and direct marketing are explored, along with modern promotional measures like guerrilla and mobile advertising. A budget analysis and action plan are also included, providing a complete overview of Nestle's marketing strategies and tactics.

Marketing Management

INTRODUCTION
Marketing is a platform to sales
 Marketing includes research, planning, advertising and promotional techniques to
increase the sales.
 Marketing management is a concept which reviews organisation's resources and
activities to increase its customer base, improve relationship with the customers by
providing them products and services as per their requirements.
 It helps the organisation to enhance its perceived value and brand image.
 The role of marketing manager is to examine resources and competencies, competitor's
cost structure, product differentiation, competitive positioning and other factors.

COMPANY ANALYSIS
 Nestle is world's leading health, and wellness
company.
 Nestle is a food processing industry which operates
in more than 194 countries in the world with
employee strength of over 339000 people.
 The organization serves numbers of products to the
customers.
 It includes products such as confectionery, coffee
and tea, baby food, dairy products, bottled water,
medical food, breakfast cereals, pet foods, ice
cream, frozen food and snacks. Nestle has around
450 factories in the world. Maggi, KitKat,
Nespresso, Smarties, Nescafé, Nesquik, Stouffer’s
and Vittel are the most popular brands of Nestle

SITUATION ANALYSIS
Porter's five forces model is an important tool that
analyses the level of competition within the
industry. Porter identifies 5 forces that determine
competitive intensity and attractiveness of the
industry.
 Threat of new entrants: Low
 Threat of substitute products: High
 Bargaining power of suppliers: High
 Bargaining power of customers: High
 Competitive rivalry within the industry: Low

PESTLE ANALYSIS
 Political Factors: ). Government regulations changes time to time and country to country
as they impose different tax laws, accounting standards and revised tax law interpretation
has affected the business operations of Nestle.
 Economic Factors: Nestle has faced some problems in supplying the products due to
different economic policies in different countries. Now company's clients and employees
are aware about the changing economic growth and inflation rate of the country.
 Social Factors: The social factors talks about the company's responsibilities towards the
society. The social media have provide awareness to the public about the uses of
ingredients in the production process of the companies, So Nestle need to maintain its
quality in production and sales process.
 Technological Factors: Nestle is required to adopt technical changes and improve its
quality products to maintain the top position in the food processing industry.

Continued
Legal Factors: Legal factors talks about health and safety of the customers. Nestle is a
well known brand and it needs to maintain the quality in the production process.
Environmental Factor: Environment affects the business operations and business
activities Nestle. IT gives companies a place to carry its business activities. It needs to
reduce wastage, control pollution from production to give a better environment to people of
society

OPPORTUNITIES FOR NESTLE
 Nestle has established its business in the global market. It has a well known brand image.
 The firm can expand its product line in growing economies and it has opportunity to carry out
its business in developing countries such as Brazil, Russia, China, India and South Africa.
 Nestle can capture the untapped market by offering high quality services to their customers.
 The company can build partnership with major companies in the world to run its business
activities smoothly.
 Nestle has a strong research and development department which can help them in introducing
new products as per the demand of the customers in the future).
 The demand for healthier food is rising, so it can also be seen as a good opportunity for Nestle
to maintain quality of healthy and nutritious products and grow the business in the future.
 The sales and distribution network of Nestle is so huge that it can develop its products in
countries of Africa as well.

THREATS FOR NESTLE
 The change in trends can be seen as a big threat for the organization.
 The people are becoming more health conscious which can impact on the demand of
Nestle products such as Chocolates and chocolate related products.
 The pre-packaged products are considered as unhealthy and unsafe products in Europe,
it can also affect the demand for some Nestle products.
 The major competitors like Walmart and other retailers have cut prices for their
products it could affect the demand of Nestle products in the market.
 The buying power of customers and suppliers in the food industry is also increasing
day by day.
 The customers may shift to another brand if the firm compromises with the quality in
products and services. The prices for raw material are also increasing which may harm
its competitive price in the future

BCG MATRIX
Stars
Ceralac
Nescafe
Question Marks
Smarties
Nestle Nestum
Nescafe Decaf
Nesquik
Cash Cows
KitKat
Maggi Noodles
Dogs
Milky Bar
Neastea
Nestle Dahi
Nestle Crunch
Nestle Munch

OBJECTIVES OF NESTLE

STRATEGIC PRIORITIES
The following are the strategic priorities of Nestle:
 To deliver sustainable financial performance
 To put resources behind the ideas,
 Products and categories to recognized for healthy and nutritious products.
 Create values for the customers and control wastage.
 Improve customer relationship by developing E-commerce channels.

STRATEGIC MARKETING PLANNING
 The first step in strategic planning is to set the mission of the company. It should benefit the
customers in the long term. The mission should be future oriented and the company needs to
ensure that all the employees should know about the mission of the firm and cordially works
towards it.
 The organisation is required to conduct a situation analysis. The company should know the
factors that affect the business operations. The company can do SWOT analysis to identify
the strengths, weaknesses, opportunities and threats.
 After the SWOT analysis, the organization is required to set marketing objective. The aim
should be specific, measurable, achievable, and realistic as well as it should be time bound
to achieve the objective.
 The last step in strategic marketing planning process is strategy development. It includes 7P's
of marketing mix. It also includes segmentation, targeting and positioning of the market
 The last step in the strategic marketing planning process is to evaluate the marketing plan. It
specifies how, when, by whom the marketing tactics can be monitored and accessed.