Discuss About The Business Global Organizational Excellence.
The main aim of this task is to explain and analyze the marketing strategy and plan for the company. Nestle company and chocolate products have been chosen in the task to grow and explore the business globally. Nestle is leading food and beverage Corporation in the world. It has been able to make a strong and attractive image in the market by providing unique quality of products and services to the consumers. Before entering a foreign market, situational analysis is done by the company to analyze and identify the risks and challenges of the market. In addition, the paper explains that how the organization uses segmentation, targeting and positioning strategies to stand out against the competitors. Apart from this, marketing mix strategies are also initiated by Nestle to stay in the competitive market. Further detail of the task has been detailed below.
Nestle was established in 1866 by Henri Nestle with its headquartered is situated in Vevey Vaud, Switzerland. It is one of the biggest food Corporations across the world analyzed by revenue and other metrics. The company operates its business activities and operations in more than 194 countries with the help of potential employees. There are approx 335,000 workforce employs in the organization (Nestle, 2018). Nestle offers variety of products to the consumers including medical food, bottled water, confectionary, dairy products, coffee and tea, baby food, snacks and pet foods. The selected product is chocolate and confectionary. The company produces and launches tasty and delicious chocolates within the organization. Nestle offers milk chocolates with delicious taste for the consumers. The firm is enhancing and improving the quality of life and contributing to healthier future (Nestle, 2018). The Corporation is one of the leading FMCG Corporation in all over the world. It has been noted that the company has adopted the global culture for collecting information about the new countries business environment for expanding and flourishing the business in the international market (Enama, 2017).
The situational analysis may be defined as the collection of methods and technqiues that management and leaders use to evaluate an organization’s macro and micro environment to understand and know the company’s capabilities, business environment and customers. Nestle uses SWOT analysis, and Pestle analysis to know and evaluate the plans, policies and strategies of the competitors as it also helps overcome the rivalries in the marketplace. Situational analysis is essential to implement a marketing plan for the company (Siddik, 2016).
External analysis is done by the company to eliminate and reduce the challenges and risks of the marketplace. For this purpose, PESTLE analysis has drawn below.
Political factors: Nestle operations its business functions and activities in approx 194 countries with maintaining regulatory and hygiene environment that can affect the activities and operations of the firm. The rules and regulations fixedby the government is quite different in various countries. It has been analyzed that the Nestle must focus on these political elements such as taxation, rules, legislations and import export excise duties. It has been analyzed that Nestle promotes and encourages the government health procedures by maintaining the legislations, standards and rules (Grade, 2013).
Economic factors: It is one of the foremost issues for Nestle is foreign exchange swings as it has a vital impact on the outcomes of the firm. In addition, different nations maintain different economy and they are completely different from each other. In addition, exchange rate, recession, income level, changing inflation rate and economic growth rates also affect the purchasing power of the customers in the international market. It has been stated that the organization has to fix the different economic policies, rules and standards in order to handle the different market segments. An analysis report should be made by Nestle on daily basis to get the sufficient facts and knowledge related to the deflation and income level of people (Wells et al, 2012).
Social factors: The culture, thoughts, ideas, tradition, morals, beliefs, and traditions of the consumers could affect the activities of the firm. It has been further evaluated that the firm should understand the changing attitude and belief of the consumers to beat the consumers. The organization needs to focus on the social factors to gain competitive benefits (Nestle, 2013).
Technological factors: Latest and innovative technologies are used by the company to produce new products. E-commerce and internet are significant techniques and tools to monitor in the rivalry market. Thus, the Nestle uses technology and procedures in various business activities and activities to build a good reputation in the market (Bello, Shuangqin and Dalibi, 2017).
Legal factors: These factors include the legal environment of the firm. The legal factors influence the operations of the company to meet the demands and needs of the customers. In this regard, Nestle should follow the health and safety laws and regulations for their workers and also to introduce hygiene products for the consumers.
Environmental factors: The Company should focus and monitor on the environmental rules and legislations to produce healthy food products and services. The company should also contribute in society to maintain a clean and hygiene environment in the world (Williams, 2014).
· Nestle is one of the largest brands in the world.
· The company is having a team around 330,000 worldwide.
· Wide range of products including beverages, baby food, pet food, confectionaries and dairy products.
· The company has a very strong and unique supply chain network that helps to provide various types of groceries and beverage products across the world.
· CSR activities are effectively exercised by the organization.
· Effective and unique marketing strategies are initiated by the firm.
· Being a global and unique brand, enormous controversies are being faced by the company in different countries.
· High and immense competition exists in the global market.
· The company is planning to introduce healthy food products among the customers.
· It focuses on the economies to boost and increases the business in the international market.
· Nestle is making unique strategies to capture the rural market.
· Acquisitions and joint ventures are used by the firm to maximize its market share.
· Raising the cost of raw material can influence the profit margin. It is one of the biggest threats for the company.
· Economic instability and recession also influence the growth and success of the firm.
· Immense competition in all the food products segments.
The two main competitors of Nestle include Unilever and Danone that affect the success and progress of the firm. Unilever provides food and beverage products to the consumers whereas Danone food and bottle products to the consumers across the world. Both the companies maintain a strong position in the marketplace. Danone is one of the biggest leaders in dairy products and bottled water. Thus, it influences the profitability of Nestle adversely. On the other hand, Unilever also maintains a strong and unique portfolio in the international market. Therefore, Danone and Unilever are considered the competitors of Nestle. Both the companies maintain an effective and dynamic research and development team to focus on the activities and operations globally.
Comparative review of marketing mixes in Nestle, Danone and Unilever: A comparison and contrast of marketing mix in Nestle, Unilever and DANONE have been detailed below.
Nestle provides wide range of attractive products including dairy products, beverages, chocolates and pet foods. The Unique quality of products helps to distinguish its products from the competitors.
DANONE always focus on the quality of the food products. The company’s products are considered best products in the marketplace. The water products include Font Vell, Aqua and Damavand. Therefore, the organization sees customer’s needs and requirements.
Unilever products include refreshments, foods, personal care products and home care products.
The price of Nestle is based on the quality of the products. The pricing strategy in the company is dependent upon the rivalry products and prices.
DANONE is considered one of the premium brands in the world. The company has maintained high prices for its products as compare to its rivalries.
Unilever uses three type of pricing strategies such as market oriented pricing strategy, premium pricing strategy and product bundle pricing strategy.
Nestle follow a FMCG channel of distribution to decide the place for the selling of the products and services. Most of the revenue and sales for the company come from European countries.
DANONE uses intensive distribution channel to attract and retain more clients in the marketplace. The company has combined with Yakult in India to flourish its business globally.
The main places of Unilever include retailers, stores and kiosks. It uses generic strategy and product development strategy within the organization.
Unique marketing and promotion strategies are being used by the company. Apart from this, the organization also uses advertisement strategy to attract more consumers in the global market.
The promotions and advertisements plays a significant role to connect with consumers in the international market. Strong and unique marketing campaigns are done by DANONE to satisfy the needs and requirements of the consumers.
In promotion mix strategy, the company uses personal selling, direct marketing, sales promotion, personal selling and direct marketing strategy.
Consumer buyer characteristics
The consumer segment of Nestle is comprised of children under the age of 12 years and young girls who want to like to eat chocolates and other food products. Along with this, middle class and upper class people are also considered the main target audience of the company. In addition, young girls and boys are highly contributed in success and growth of the firm. The sale of the company is dependent on the buying behavior of the consumers in the marketplace. Nestle products are based on the generation. Along with this, it has been analyzed that political, social and psychological factors also influence the consumers buying behavior. It has been noted there is no age, income and any kind of restrictions on use of the company’s products and services. Anyone can use Nestle products as per their needs and requirements. The primary target audience plays a vital role to make unique decisions in the global market. When the company launches new and innovative products in the global market, a marketing survey and research is done by the firm to analyze and evaluate the buying behavior of the consumers. By focusing on the social, cultural and psychological factors of consumers, Nestle has been to make a unique and effective brand image in the minds of the consumers in the international market. On the other hand, it also focuses on packaging strategies to attract more consumers. It has been studied that target audience is highly involved in the decision making process.
Target market, positioning and branding analysis
Segmentation analysis: The Company divides its market on the basis of geographic area, demographic area, psychographic area and behavioral area. The products of Nestle are dependent on the geographic weather cold and warm hot. Along with this, nestle main products also based on the generation (Kotler, 2015). The firm is divided the market area segment for new born baby and children of different groups. The psychographic factors also influence the sale and revenue of the firm. The lifestyle and personality of people could affect the buying behavior of the target market. Furthermore, the organization also focuses on the behavioral factors to analyze and examine the behavior of the consumers in the market (Hassan and Craft, 2012).
Targeting strategy: Nestle examined and analyzed the different types of market segment on the basis of segment size, growth, and nature of the market. The company distributes its products after considering the needs, requirements and wants of the consumers in the international market. Therefore, the company uses distribution strategy to analyze and identify the target audience (Payaud, 2014).
Positioning strategy: By creating channel, product, service, image differentiation, the company can reach the touch point of the consumers in the market. Positioning is done by the company after focusing and identifying the prices and products of the competitors (Mitra and Neale, 2014).
Product strategy: The unique and effective pricing strategy is used by the company to maximize the number of consumers in the global market. Nestle primarily focuses and monitors on the dairy products, cook food products, beverages and chocolates and confectionaries. The product quality is one of the significant characteristics of nestle brand that help to distinguish products from the other competitors. It has been noted that three level of products of nestle include core products, actual products and augmented products. The product level helps to fulfill the needs, requirements and wants of the clients in the international market (Jewell and Saenger, 2014).
Price strategy: The price of Nestle products is based on the worth and features of the products. It has been analyzed that competitor’s products are less costly as compared to Nestle products. For example of Maggi, its price is greater than as compared to Yippee noodles or wai-wai. This is just because the quality of product is much better than others and consumers can easily pay extra money to get a better quality. The pricing strategy of the company is based on the rivalries prices, and geographic area (Payaud, 2014).
Place strategy: The Company generates its sales and revenue in European countries. The company uses FMCG channel of distribution to sale the products and services. The consumers can buy the products through retailers and suppliers. The magi and Nescafe are two main products that are in high demand. With the help of these two products, the organization can easily more their other products and services. Hence, the distributor can easily get discounts and offers on stronger products (Kiran and Sharma, 2011).
Promotion strategy: Nestle uses promotional and advertisement strategies to maximize the number of clients across the world. It will help to increase the revenue and sales of the firm. Marketing campaigns and survey are done by the company to reach its target market. By focusing on the promotional strategy, the organization has been able to focus on the quality and nutritional values of the products and services. The organization also maintains effective relations with public in the marketplace. Nestle also uses digital marketing and personal selling to increase returns (Amit and Zott, 2012).
Extended marketing mix variables: An essential factor of marketing mix is people. The company uses effective staff to produce innovative and new products for the consumers globally. Training and development coaching is provided by nestle on regular basis.
Apart from this, Nestle also uses effective and unique processes and procedures to produce new food products. Dynamic and latest technologies are used by the company while producing new products (Dumitrescu and Scalera, 2012).
Physical evidence is one of the essential ingredients of the marketing mix that used by the firm. Evidence and facts are collected by the firm in terms of value, prices and feature of the products (Laforet, 2011).
Nestle has extended its partnership with the Singapore agency for science, technology and research to provide unique products to the consumers. It maintains strong relationship with consumers to maximize the outcomes and revenue (Wymer, 2011).
On the above mentioned analysis, it can be concluded that Nestle is one of most significant brands in the world. PESTLE analysis, SWOT analysis, marketing mix is done by Nestle to implement a marketing plan within the organization. This situational analysis helps to accomplish the long term mission and vision of the firm with minimizing the prices of the food products. STP (segmentation, targeting and positioning) strategies are used by Nestle to identify and analyze the requirements and wants of the consumers. Furthermore, advertisement and promotional strategies are initiated by the company to strive with competitors in the global world.
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