Marketing Plan of Nestle

Marketing Plan of Nestle Nestle is the leading FMCG company of Switzerland established by Henri Nestle. Nestle is serving worldwide with its more than 500 factories in 86 countries comprising almost all continents. Nestlà ©s product portfolio is more than 500 products all over the world serving best to their customers. Henri Nestlà © endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird protecting her young, became the Companys logo and a symbol of the Companys care and attitude to life-long nutrition. The Nestlà © nest represents the nourishment, security and sense of family that are so essential to life Launched on the North American market in 2003, Nestlà © PURE LIFE is destined to become the worlds top and most widely distributed brand by 2010. Nestle is also willing and has goal to achieve the $1 Billion enterprise by 2014. Nestle Pure Life is a premium drinking water, produced to the highest standard of safety and purity. The company is seeking to provide customer with pure drinking water on suitable prices make the product as convenient as possible. According to their claim that they provide the best food throughout the world Nestle is leading brand in water market and has left behind many local brands which were working before the launching of Nestle Pure Life. Now it has maximum market share in developed and major cities of Pakistan like Lahore, Karachi, Islamabad, Multan, Hyderabad and many others. As we have discussed earlier that Nestle is going to become the fully market leader of water market in Pakistan, signs are clearly visible to achieve the set point of Nestle. Nestle Pure Life is also the star product of Nestle Pakistan and most probably all over the world where Nestle Pure Life exist. Here you can see the market share chart for the product and after that there is a Boston Consultancy Group Matrix is shown which would describe the ranking of Nestle Pure Life in product portfolio of Nestle Pakistan. Nestlà ©s business objective is to manufacture and market the Companys products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners. Nestlà © recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs, and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. Nestlà © continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. According to our observation and market survey, we have concluded that as such there is not set demographic techniques to set the specific target market. Because, water is something that everyone uses. Everyone can use any size of bottle that Nestle is offering. There are some variations that can be made throw OUR OBSERVATION but not from the company Nestle Pure Life comes in four different sizes. These four are targeting different types of people and lifestyles. The smallest size of Nestle Pure Life Water of 0.5L. This size is being heavily used by the consumers in place of soft drink. University and Colleges are also included in its target market of this size. But the product is used by everyone in the society also. It is not only specified people that have been discussed above. The second size of the Nestle Pure Life Water which is about 1.5L. This size is being used in mostly meetings. You can say that any kind of organizational meeting or any other social meeting, this product i s being used. The third size of the Nestle Pure Life which is used in mostly houses and offices in the waiting area. The fully household product and also using in executive rooms in offices with the dispensers. This Nestle Pure Life Water Bottle is also very helpful in many dispensers available in the market with good options We can easily observe that Nestle itself is not taking active part in social welfare. And on the other hand, we see the lower prices of the product as compared to the other FMCGs Companys products like Unilever, Colgate. Palmolive and Procter and Gamble. If we look at the prices, we can observe that Nestle is also using its name for the promotional activities and pricing strategies also. They have to maintain their level of efficiency and always provide the best at best price. Nestle cares about the customers. As the time is of inflation, nestle is trying to overcome the pricing problems to the extent they can do. Nestlà ©s point of view is Only by understanding their needs can we serve our consumers to the fullest Profit earning is the core aim of every company but in case of nestle their profit margin is small just for the sake of customers trust and happiness. Only a few amount of profit is collected from pure life water. Nestle always strive to give superior product at low rates . Nestle is also one of the leader of retaining their customers. This is one reason of their success. They use the simple formula for the price that is Cost + Profit. The main reason is Pure Water which is the name of this product. Rests of the water products are using chemicals which can be harmful for the human body but Nestle Pure Life is the only water product which is pure in nature. That is also the unique selling point of Nestle Pure Life. This is the most powerful point that is in the mind of the customers while purchasing any water bottle in their routine life. The brand name is also very important for the consumers. The slogan of Nestle is Good Food Good Life. That is very attractive slogan people can attract from. It puts the perception in the minds of people that theyre being offered good products for their healthy lifestyle. If you look at the logo of Nestle, youll get to know that a bird is feeding the children. Obviously a mother cant deceive the children. Nestle pure life is a brand of nestle which explains a big symbol of quality to customers. Nestle Pure Life shows in their ads about the purity of water and the water need for you r body. In its launching advertisement, the company advertises Nestle Pure Life very successfully. In that advertisement, a lady is drinking Nestle Pure Life Water and then it goes towards inside the body to show the functions of pure water. That was the awesome commercial that boosted the sale of Nestle Pure Life. Nestle is also advertising on famous websites like you can observe that whenever you will login to your face book account, the ads of Nestle will be there. There are number of sign boards and banners you will see in the cities to aware people about the products of Nestle. Thus, Nestle is using all types of media to advertise their products in anyway. When Nestle Pure Life was launched, they distributed the free samples of 0.5L bottles for market testing and for their advertising purpose. Then a short walk was also arranged for the sake of good health and seminars was also conducted to make sure about the pure water needed your body. To understand the depth of Positioning, we will divide into three steps The final aspect of the micro environment is publics, which is any group that has an interest in or impact on the organizations ability to meet its goals. For example, financial publics can hinder a companys ability to obtain funds affecting the level of credit a company has. Media publics include newspapers and magazines that can publish articles of interest regarding the company and editorials that may influence customers opinions and our mostly products are selling on the public advertisement because the people are the too much concision about their health. Government publics can affect the company by passing legislation and laws that put restrictions on the companys actions. Citizen-action publics include environmental groups and minority group and can question the actions of a company and put them in the public spotlight. Local publics are neighborhood and community of the organizations and will also question a companys impact on the local area and the level of responsibility of their actions. The general public can greatly affect the company as any change in their attitude, whether positive or negative, can cause sales to go up or down because the general public is often the companys customer base. And finally, the internal publics impacts include all those who are employed within the company and deal with the organization and construction of the companys product. Each market impact has different characteristics and causes they find important. This can be beneficial to a marketer as they can decide who their product would benefit most and tailor their marketing plan to attract that segment. Demography covers many aspects that are important to marketers including family dynamics, geographic shifts, work force changes, and levels of diversity in any given area. Another aspect of the macro environment is the economic environment. This refers to the purchasing power of potential customers and the ways in which people spend their money. Within this area are two different economies, subsistence and industrialized. Subsistence economies are based more in agriculture and consume their own industrial output. Industrial economies have markets that are diverse and carry many different types of goods. Each is important to the marketer because each has a highly different spending pattern as well as different distribution of wealth. The natural impacts: The natural environment is another important impact of the macro environment for the organization. This includes the natural resources that a company uses as inputs and affects their marketing activities. The concern in this area is the increased pollution, shortages of raw materials and increased governmental intervention. As raw materials become increasingly scarcer, the ability to create a companys product gets much harder. Also, pollution can go as far as negatively affecting a companys reputation if they are known for damaging the environment. The last concern, government intervention can make it increasingly harder for a company to fulfill their goals as requirements get more stringent. The technical impacts: The technological environment is perhaps one of the fastest changing factors in the macro environment. This includes all developments from antibiotics and surgery to nuclear missiles and chemical weapons to automobiles and credit cards. As these markets develop it can create new markets and new uses for products. It also requires a company to stay ahead of others and update their own technology as it becomes outdated. They must stay informed of trends so they can be part of the next big thing, rather than becoming outdated and suffering the consequences financially. The political impacts: The political environment includes all laws, government agencies, and groups that influence or limit other organizations and individuals within a society. It is important for marketers to be aware of these restrictions as they can be complex. Some products are regulated by both state and federal laws. There are even restrictions for some products as to who the target market may be, for example, cigarettes should not be marketed to younger children. There are also many restrictions on subliminal messages and monopolies. As laws and regulations change often, this is a very important aspect for a marketer to monitor. The final aspect of the macro environment is the cultural environment, which consists of institutions and basic values and beliefs of a group of people. The values can also be further categorized into core beliefs, which passed on from generation to generation and very difficult to change, and secondary beliefs, which tend to be easier to influence. As a marketer, it is important to know the difference between the two and to focus your marketing campaign to reflect the values of a target audience. Nestle is the world leader in FMCG industry. People trust on the products launched by the company even the product is facing some problems. Nestle was doing its good job in past but now it is facing some problems of low quality of their products. Nestle is sued by someone they claim that they are doing unethical business. They are mixing unhygienic things which can cause damage to customers health. Its example is that their water is not pure and good for health. You can see dust partials in Nestle mineral water when you keep it in sunlight that shows its product quality is down. Now they have to do more making their strong position in market because when you lose your image in customers eye then it is difficult to renew their image. Marketing plan of Nestle Marketing plan of Nestle MARKETING PLAN OF NESTLE NESTLE Nestle had setup its first plant in 1961 in Moga (Punjab). The company is acknowledged as one of the leading companies in the FMCG sector with â€Å"Top rated wealth creators of India â€Å". It is progressively evolving into food, beverage, nutrition, health, wellness, and touching lives of people. Nestle India has strong brands like Maggi, Nescafe, Cerelac, Lactogen, Kit, Kat Polo, Milo and Polo. It has set up â€Å"Cafe Nescafe â€Å"and â€Å"Coffee Corners† in mini metros. Nestle is leveraging the vast consumer base in India. There has been continuous focus on values. NESCAFE In Hebrew, the word â€Å"NES† means Miracle â€Å"CAFE† means Coffee so together its a miracle with coffee. Nescafe believes in innovation, improvement, thrust on value for money. Nescafe leads the market of instant coffee with Rs.361 crore. The companys beverage products generate 22% of the companys total revenue. Nescafe has pushed into more diverse media. Global Coffee market s segregated into three segments: Instant Coffee Roast And Ground Coffee Chicory Despite the ever increasing choice available to the consumer, Nescafe original maintains its position as not only the nations favourite coffee, but also the leading hot beverage brand overall. In 1930, the chairman of Nestle in Switzerland was approached by the Brazilian coffee institute and asked to develop coffee that was soluble in hot water and retained its flavour. From these beginings came not only the worlds first instant coffee, but also the emergence of a classic brand of the millennium. After years of painstaking research, scientists at the Nestle research laboratory in Switzerland finally achieved the desired results, and on April 1, 1938, Nescafe was launched in Switzerland. Nescafe original holds the pre-eminent position with a 36.5% retail share of the instant coffee market. The coffee sector s led by Nescafe brands which account for 55% of all instant coffee sales n the UK. BUSINESS STATEMENT Nescafe business objective , and that of management and employees at all levels , is to manufacture and market the Companys products in such a way as to create value that can be sustained over the long term for shareholders , employees , consumers , business partners and the large national economies in which Nescafe operates. Nescafe is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. It continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. It s conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and the employees. Therefore recruitment of the right people and ongoing training and development are crucial. MARKETING OBJECTIVES We are going to use the method SMART: Specific: The objectives have to be clear. For example, in each shop, the company of â€Å"NESCAFE† must achieve the selling objectives. The turnover to reach will not be the same in the different shop because we make the selling objectives according to size of the shop, the frequentation, the type of the clients. Measurable: The company has to follow the different targets in the sales outlets and if each Shop allowed reaching the objectives. To measure the sales we can calculate the sales by day In order to understand how the client bought the product. With these data we can improve The strategy and the sales. The commercials can ask to the supermarket to put the product in A different way or to make more promotion. Achievable: The targets have to be realist. At the beginning the turnover would grow slowly and after the promotion, it would have a faster expansion. If we reach to win clients from Our main competitor (in a first time) and from the others tea brand (in a second time), the Sales would grow increasingly. The firm should have a long terms vision and should bereactive in front of decisions or problems which can occur. Relevant: the objectives have to be founded on fact and not on suppositions. The firm has to Respect its general strategy and its image. The firm should take into consideration the sales Of its competitors in order to be based on relevant objectives. Timed target: each objective should have a deadline. It can allow measuring the different Sales of the day, of the week, of the month, according to these data, the firm can change the Objectives or makes promotion to reach these objectives. INDUSTRY ANALYSIS TRENDS: In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely (Mintel 2005). Market analyst believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favourable movement in the tea industry can be attributed to two major factors: (a) Consumers need for convenience and time-saving services; and (b) the positive press given to tea. For the last decade, the health benefits of tea have gained wide coverage in the media. Studies continue to show the beneficial properties of tea, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely catapulted the demand for tea. Consumers believe that tea is very good for the body, thus, it is more logical to drink more tea and less soda pop and other drinks. Consumer considers Nestea as a healthy habit. COMPETITOR: One of the major competitor for Nescafe tea in the world tea markets Lipton tea. Moreover the alliance between Unilever and PepsiCo is expected to enable Lipton to strengthen its global position. Lipton tea is going above and above these days, so the competition would be strong. There are other tea also, like Tetley who s gaining good market. CUSTOMER PROFILE: There are two major target markets for ready-to-drink tea. One group s the consumers on the go. These are the employees, students, and other consumers who lead a busy lifestyle. Thus, there is a need for products that are accessible and readily available. Convenience has dominated the market, particularly the food and beverage industry. The other group is made up of health conscious consumers, specifically the baby boomers who patronize anything healthy. SWOT ANALYSIS Strengths Great leap forward in media. Sustained improvement in customer service levels. Global leader in instant coffee the company has a clear global lead in the important coffee sector, which is growing significantly in emerging markets, accounting for 21% of global value in 2007. It has solid financial base. Nestle has a number of cost-saving programmes in place and as a result ,has been able to place itself in a position where it is able to afford sizeable investment in brand development. Weaknesses Agencies spent all their time fighting each other. Adopted a pricing strategy higher than competitors. The mass-market positioning of Nescafe, presents significant difficulties in terms of tapping into the growing demand for premium coffee products. Nescafe has developed only minimal presence in tea, a sector which is benefiting notably from the rise in consumer health-consciousness. Opportunities Shortage of tea supply unlikely. Consumers are living a healthier lifestyle. Growth in tea market due to promotional efforts of healthy attributes of tea. Euro monitor International forecasts that Asia-Pacific will be the fastest growing market for hot drinks over the 2007-2012 periods. As Nescafes largest regional market, Asia-Pacific therefore presents significant opportunities for the company n spite of poor conditions in major Western European markets. It could further develop its confectionary brands n other hot drinks along the lines of existing products. Threats High quality tea prices will increase moderately. Tea market is very competitive and relative elastic. Sluggish prospects in developed markets market maturity and aggressive competition amongst retailers are set to constrain hot drinks growth severely in major developed markets during the forecast period. Increasing transport and raw material costs, mainly relating to rising bean, oil and packaging prices, are placing significant pressure on margins in the companys beverage operations. MARKETING STRATEGIES Nescafe FMCG giants wants to be a â€Å"preferred client†. Strike balance between tapping into local knowledge of markets and disseminating global practice. Communication efforts are directed effectively and with maximum return on investment. To work with the limited number of agencies so that they really know the business. Encourage its agencies and employees by making changes in remuneration. Nescafe has even in the past resorted to low-key market penetration strategies. Nescafe can take advantage of the positive press on the health benefits of tea to boost the sales of its tea product line. The company can use recent studies on the health benefits of tea as the basis of its press releases and advertising campaigns. TARGET MARKET We want to touch the target group n a progressive way. At the beginning, it is important to touch the consumers of black tea, fruit tea and health tea. In second time, we should attract consumers of the main competitor â€Å"LIPTON TEA†. The next step will be to touch the tea drinkers in general and at the end, the consumers of coffee. We can argue for the coffee drinkers that the black tea is as strong as the coffee and good for the health. DISTRIBUTION CHANNEL Mc cann and publicis mojo is the lead global agency of Nescafe. Products are sold throughout India and also are exported to Russia, Hungary and several other countries. Visibility and availability of product had been supported by smaller stock keeping units. MARKETING MIX Product Nestea will be a high quality product offered as specially blended Black tea as well as Fruit and Herbs. Contents of the Nestea black are: 40 bags, 80 bags, 150 bags, 250 bags (Family pack) The amount of bag refers to different target groups. 40 bags for singles, 80 bags for couples, 150 bags and 250 bags are Family packs. Contents of Nestea fruit and Nestea herbal is 25 bags. This is standard size, very common on the tea market (comparison with competitors) The different tastes offered will be: Peppermint, citrus fruit, mango and peach, apple, vanilla. Place Tea is imported from India because the company is able to get high quality for a reasonable price. The final product will be distributed to Retailers such as supermarkets and small shops so the end consumer has easy access to it. Place in supermarkets: The fruit and herbal tea boxes should be placed on the top of the shelves in the supermarkets. Beneath them on the middle and lower levels the black tea should be placed according to the content of tea bags. 40 bags should be placed higher than the ones containing more bags. Price Nestea price would be Content Price Nestea Black 40 bags Rs. 40.99 Nestea Black 80 bags Rs. 78.99 Nestea Black 150 bags Rs. 145.99 Nestea Black 250 bags Rs. 235.99 Peppermint 25 bags Rs. 49.99 Mango Peach 25 bags Rs. 39.99 Apple 25 bags Rs. 40.99 Vanilla 25 bags Rs. 41.99 Promotion The promotion is the most important point to launch our products because we want to be able to compete with our biggest competitor â€Å"Lipton Tea†. We are going to set up original events in order to attract new customers and consumers of the other tea brands. Promotion in supermarkets: We want to set up a stand in the supermarket in order to make tasting to the supermarkets clients. The stand should represent the brand with the colour of the company During the launch of our product, all the customers at the supermarket will receive a sample of â€Å"Nestea† for free at the cashers including a voucher which explains the game to win a trip to London. Promotional offers during the year: If a client buys a box of 150 bags, he will get a free cup or a spoon. If he buys a box of 250 bags, he will get a free box of vanilla tea. The top companies markets spend 40% of their budget on TV. FINANCIAL PROJECTIONS Updated General Fund Projection for FY 2008 There are no specific fiscal actions that result from acceptance of this report. The Fiscal impact of the FY 2008 budget projection will be considered as part of the FY 2008 budget process. As a result of updating the FY 2008 current level of services, the estimated deficit faced by the County is between $201.6 million and $238 million, which is, at the high range, $36.4 million above our August estimate. Between now and June, the projected County deficit could also change as a result of new information, and State and/or Federal budget impacts. As part of the County Executives FY 2008 Recommended Budget, the Administration is likely to propose modified solutions to address the deficit above the original $201.6 million CATEGORY FALL 2006 PROJECTIONS FEBRUARY 2007 PROJECTIONS VARIANCE % Salaries and Benefits $1,079,122,529 $1,104,392,402 $25,269,873 2.3% Services and Supplies $980,299,690 $985,905,536 $5,605,846 0.6% Other Charges $14,975,229 $13,419,939 ($1,555,290) (10.4%) Operating/Equity Transfers $312,285,789 $319,670,115 $7,384,326 2.4% Expenditure Transfers/Reimbursements ($191,727,494) ($203,671,731) ($11,944,237) 6.2% Total Net Expenditures $2,194,955,743 $2,219,716,262 $24,760,519 1.1% Total Revenues $1,993,330,215 $1,992,472,684 ($857,531) 0% Net Cost ($201,625,528) ($232,176,299) ($25,618,050) 12.7% CONCLUSION This new product will definitely help Nescafe to grow better and better. The only thing that the strategies used should be according to the plan. As according to the plan first preference should be the customers taste. The competitors are strong so in the starting we should be on our toes. Ultimately the goal s to make it big and really big. This Nestea will definitely make a change to NESCAFE. BIBLIOGRAPHY www.foodeditorials.com www.nescafe.com www.nestle.in/nestle_india_landing.aspx www.ciims.net/2008/09/nescafe_atack_green ­_tea_market.html www.allbusiness.com/marketingmarketing/236907-1.html en.wikipedia.org/wiki/nestle