Nestle Position in the Market-Free-Samples-Myassignmenthlep.com

Question: Choose any International Organisation of your choice preferably where you are working or worked with or familiar with and prepare an entry plan for International Markets. Answer: Introduction Nestle is known as one of the biggest food and beverage industry. Nestle has a large distribution channel that offers its products in around 130 nations globally. The headquarter of Nestle is situated in Vevey, Switzerland. It is a supplier of food and drink products and also it has a range of milk products, chocolates, and coffees. Nestle also launched a joint venture in more than 80 countries. Earlier Henri nestle introduce milk for the babies who are unable to drink and to feed on their mothers. After 5 to 6 years the product was also used by the old age people. The company gives the main emphasis on offering quality products to its customers. In the recent years, the company has also given focus on becoming a nutrition and wellness company. Wellness gives emphasis on supporting the people who want to live healthy lives. Nestle is a world leader in the field of research and development and also it creates healthier and more focused nutrition foods. So the particular product that i s taken into consideration of the company is chocolates. Figure 1 By analyzing the figure 1 it is seen that the overall sales of the company is enhanced in 2012. By offering good quality and by taking into consideration effective marketing strategies the company attained success and growth. If the quality that is provided to the consumers is good, then it can be easy for the organization to accomplish the goals and objectives. In 2012 by 8302 crores the sales is enhanced and the company attained success in the market. Figure 2 In figure 2 it is seen that the sale of milk products and nutrition is 45 percent, cooking aids are 29 percent, beverages 13 percent and chocolates also 13 percent. The sale of chocolates is very less and the comparison is made with other products of the company. Marketing is very important for the organization so that the company can easily promote the products in the market. Nestle marketing management Nestle marketing management is related to the effectiveness and the ability to reach to the customers and also to satisfy the needs. The company uses very successful marketing strategies like it gives focus on advertising, publishing, and distribution of the products to the target audience so that the new customers can be attracted. The company takes into consideration many strategies for growth like the transactional strategy that is related to offering different products at low cost. The localization strategy is also considered in which the brand name resonates locally as the cultural differences (Dekker, R., Fleischmann et al., 2013). Figure 3 The figure 3 is the first advertisements given by nestle in 1951 and also there are many strategies that are taken into consideration by the company so that the products can be promoted effectively. The company has taken into consideration many promotion techniques like an advertisement, offers, and discounts so that the product can be easily promoted in the market. The advertisements given by the company helps to attain success and growth in the market (Payaud, 2014). Marketing Mix of Nestle Marketing mix involves 4 P's product, price, place, and promotion. The four elements give accurate data so that the company can easily follow the strategy to enter the target market and also to ensure that the money invested is in the right place (Fawcett and Waller, 2015). Product The product offered by the company is tangible in nature and also it satisfies the needs and wants of the consumers. Nestle offers many chocolate products and the most popular chocolate is kit Kat and milky bar. The company introduced Alpino is targeting the gifting segment so that the competition can be given to the chocolates like dairy milk and Bourneville. The chocolate section in nestle company is a star but due to the high competition and also the expense is high the company has to take into consideration various attractive strategies, that helps to enhance the growth in the market (Waters and Rinsler, 2014). Price Price is considered as an amount that the customer spent so that the product can be purchased. The customers always purchase those items that are nominal in rate. The price of the product depends upon the manufacturing cost of the products (Wood, 2015). In the recent scenario, it is seen that the competition level is so high that it requires quality products that can help the organization to sustain in the market. The price of the product is dependent on the market of each individual product. In the chocolate segment, the company should keep low prices as compared to the competitors so that the sales can be enhanced. The strength of the pricing of the company comes when packaging is taken into consideration. The company offer's chocolate in various segments, so that the customer can easily purchase it. Nestle also considers competitive pricing (Wolf, 2014). Place The place is one of the essential factors of the marketing mix and also it takes into consideration the products that should be available to the consumers easily. Nestle conducts its business by distributing the product globally. In supermarket and retail stores the product is easily available for the consumers. The distribution channel of nestle is strong with good marketing. The company also introduces many trade discounts and tactics that help the channel to remain motivated. Chocolates of the company are easily available in every supermarket and retail stores. In the chocolate segment, the company faces stiff competition from a product like Cadbury and also selling of chocolates becomes a difficult task. To convert the retailers to sell the nestle products instead of Cadbury id very difficult task. It can be implemented by taking into consideration various promotions (Stadtler, 2015). Promotion The company takes into consideration effective marketing strategies and also various advertising campaigns were launched. The campaign gave enhancement to the chocolate segment in the market. The company gave effective taglines like "take a break" that attracts the customer attention towards the product. The website of the chocolate segment of the company is very innovative and also it the company considers ATL marketing. Nestle is also present online through smart and innovative ideas. The company gives focus on maintaining the quality of the products (Christopher, 2016). Role of marketing tool To explain the role of marketing tool the model that is taken into consideration is SWOT analysis SWOT analysis Strength The major strength of the company is that it is operating in many markets and is highly diversified. There is a variety of brands that help the company to access the capacity to the weather economies because it helps in many sections of the market. Nestle also has good relations with the brands of coca cola and general mills. The company also owns some of the known brands and also the families used its products. Nestle has good connection with the retailers. The company also has a large market share the largest national economies that include Europe and the United States (Fernie and Sparks, 2014). Weaknesses By considering nestle it is seen that the company sales depend upon popular brands. This creates a vulnerable condition for the company to the sudden changes in the behavior of the consumers. The sales of grocery in the markets are increasing day by day in the United States. Some of the retailers are intended to supplement the name of the goods with the more profitable brands. Nestle is dependent on advertising to induce customers views and also to drive the traditional sales. This can lead to high cost of marketing with ROI. There is a high cost of launching brands to supplement older and lesser fashionable products (Rushton, Croucher and Baker,2014). Opportunities There are many opportunities that are prevailing in the market. To grab the opportunity it is seen that the right time is required. The growth in the online retail could open new distribution channels like amazon prime that can beat the traditional retailers (Moura et al.,2015). The market of the nestle products is broader and also has enhanced the demand for the luxury items like pet food. The enhanced interest in health and nutrition could enhance request for some the nestle products like energy drinks. To enter the new market and also to enhance the supply chain can give success to the company. Due to the stable political scenario in the market, it has also improved the literacy rate and also the disposable income of the people is changing the lifestyle (Appiah-Adu and Amoako, 2016). Threats The major threat to the company is because of the increasing demand of the local and national players. It is very difficult for the organization to differentiate themselves from others. The threat is also from the counterfeit products that are destroying the image in the market. The threat is also from the price of commodities. The increase in the demand for the commodities can also result in the rise of the price. The rise in price will give decline in the sales and margins. With the high diversification of the consumer products market, there are many brands that are making difficult for the consumers to stick to one product (Bharucha, 2016). Product life cycle model Product life cycle model takes into consideration the stages through which a product goes and then considered by the consumers. It assists the company in narrowing down its options before the launch of the new product in the market. The product lifecycle nestle chocolate will be discussed. Introduction stage The first stage is introduction stage in which the product is introduced to the customers and also to the new world. The company fixes on one market and launches the product. In this stage, the company takes into consideration the market and the product and the level of competition. In U.A.E it is seen that the competition level is high and also the target should be made to all the age group people. As chocolate is loved by everyone and also purchased easily. The company should first introduce the product in the new market by taking into consideration this stage (Avittathur and Jayaram, 2016). Growth stage In this stage the customers start enhancing and also the customers start accepting the product. In this step, the demand for the chocolate will increase, so that company can easily attain the profitability of the market. Maturity This is the stage which is for a long period. In this, the competitors come in and the threat to the company increases. So the company should give focus to compete with the competitors in an effective manner. In this step, the company should also introduce innovation in the product so that it can be better than the competitors (Nestle, 2016). Decline It is the last stage of the product lifecycle with the less number of customers. If the company introduced the new product in the market, then it is important that on this stage proper strategies should be considered for maintaining proper sales (Mangan and Lalwani, 2016). Recommendation Target Nestle should give focus on targeting customers of all age groups so that the sales can be enhanced. Price strategy As seen the prices should also be nominal so that the customers can easily purchase the product in an effective manner. To compete with the competition in the market, it is important to keep the prices low. Distribution channel: Nestle should also adopt effective distribution channel so that the product can be easily available to the customers. Advertisement channels The company should use all the marketing channels to reach the maximum number of the audience by taking into consideration existing competition level. The good media is essential to enter the new market. Television advertisements can be effective when the company enters the new market. 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