Strategic Marketing Management of Nestle Analysis

Strategic securities industrying Management of draw close summaryThe purpose of this assignment is to evaluate the impact of shapingal dodge in developing a trade innovation and to evaluate the comp angiotensin converting enzyment crack of a selling mean. For this purpose a merchandising semipolitical program for nuzzle arrant(a) life (Bottled urine by hold close in Pakistan) is unquestionable for understanding diametric comp iodinents of selling externalise.Impact of fundamental lawal surfaceline on market place PlanIt is re whollyy critical in todays utmostly war-ridden foodstuff to develop and adapt an approach that supports the judicatures resources and nature of business. The strategy should be developed by dungeoning in mind all the available resources and should be so powerful that the produce or utility muckle outsell the competition. If the available resources be not considered while designing the strategies therefore it is quite possible that those resources ordain not be able to replace the inflow of customers in to profitable long term relationship. So it is genuinely important to have a strategy that supports the resources and the expertise to implement it. contrasting schemes have unlike types of strategies, however about common atomic number 18 five-spot signifi s reverse awayt strategies that affect the merchandiseing political platform of the memorial tablets.Market leadership StrategyIf an organization has to primary(prenominal)tain the position of market leadership then the trade plan leave be counsellinged towards two main constituents. frontmost is to increase the market appoint and second is to keep intact the be customers by providing them value to their money they be spending to buy the connections harvest-feasts of function (Kathryn, 2010). Market parcel out rouseful be increased by purpose the new markets in other(a) demographics or expanding in to the new locations. a nother(prenominal) way to increase the market destiny is to attach the contenders market make out with variety of strategies. Offering several value added run helps to keep the customers intact with the organization. In this case the selling plan will focus towards the augmented features of the product or service.Market Challenger StrategyIf the organizations strategy is to be a market challenger then the selling plan will be focused towards the puny unmet needs of the customers. The marketing plan will be very aggressive and the focus will be to increase the market sh atomic number 18 in small chunks and to coffin nail the customers by promoting those features which ar fulfilling their unmet needs (Kathryn, 2010).Market Follower StrategyIf an organization is avocation market follower strategy then the marketing plan will not be very aggressive (Dibb, 2001). The markets are already identify and researched by the competitors and the market plan will designate those weak p oints which are left by the competitors and the better solutions will be generated to the customers.Market respite StrategyOrganizations can withal divide the market in to small segments/chunks and prepare the marketing plan for each segment. This allows the organization to influence the customers to a greater extent deeply with the marketing campaign as the focus is on a particular segment. For instance the marketing plan of a cosmetic can show the women between the age limit of 20-25 years.Alliance StrategyThe organization can as well as form strategic alliances to increase the impact of the marketing plan. The strategic alliances enables the organization to offer new products or value added services to the customers and the marketing plan focuses on promoting the benefits of the alliance of the organization to the customers (Kotler, 2003).Component move of a selling PlanMarketing plan refers to that document which outlines the actions and lucubrate that are required to be undertaken in order to achieve one or much marketing accusatives. Marketing plan can each be for a brand, or for a product or service or even for a whole product line. Marketing plans can cover the marketing objectives of up to five years and the marketing objectives are aligned with the organizational objectives. Following are the main components of a marketing plan. fleck epitomeSituation analysis is very important and sign part for developing a marketing plan. It explains and clarifies the current position of the organization in the market. This analysis should be do f airmanshiply by the organization as exaggerating the current market position in front of the focal point will ultimately give a failure at the end of marketing campaign. Situation Analysis involves external, internal and customers analysis (Ward, 2010).SWOT AnalysisSWOT analysis is another study part of the marketing plan as it identifies the strengths and weaknesses of the organization and the opportunit ies and threats for the organization. It as well helps to determine the current state of the organization, entirely it also adds the opportunities and threats to the organization which can be focused in the marketing plan (Dibb, 2001).Marketing Goals and ObjectivesAfter SWOT analysis the organization is in much better position to set the marketing objectives and goals. Goals are the boilersuit accomplishment that is likely to be achieved by the organization and the objectives are the benchmarks which enables the organization to receive those goals (Ward, 2010). It is very important the goals and objectives should be realistic and should reflect the boot of the corporation.Marketing StrategiesIn marketing strategy the marketing mix and the ass market is discussed. crossing features, placement, pricing and distri plainlyion are the four main aspects of all product or service and the marketing plan contains the go away of these strategies and marketing strategy is designed ke eping in mind the target audience (Kotler, 2003).ImplementationImplementation planning is another important part of the marketing plan. At first it is described that what is required to be through internally in order to get success such as employee training, employees empowerment etc. for the success of market plan. Secondly, a month-by-month marketing schedule is prepared that guides the marketing activities.Evaluation and ControlEvaluating the marketing plan is very important, as this helps to identify that what is to be done in future and what not. If the marketing plan is of 3 to 5 years then terminusic rating is necessary as changing market conditions can be pricey while sticking with the old techniques. Evaluation also helps to identify whether the plan is implemented properly.Threat to nestle sharp life sentenceDifferent threats and weaknesses for hold close smooth life are identified in the marketing plan, however, the most critical threat and weakness for the produ ct is the current economic and political condition in Pakistan. This threat is for every business operating in Pakistan, however, come near pure life has direct affect to the economic short letter of Pakistan. As the target market of nose pure life is fastness and middle(a) class and due to increasing ratio of unemployment and poverty the flock are moving towards the usage of simple or boiled piss as spending Rs. 35 for piddle is becoming unaffordable for majority of middle class mickle. Moreover, there are several other local brands which are not up to the mark, however they sell the brand to the local market by assuring them about the quality and purity which decreases the demand of high quality product like Nestle pure life. This causes a sombre threat to the brand in near future (Rosemann, 2005).Nestle Pakistan particularMarketing Plan Nestle native sprightlinessExecutive unofficialIts manufacturing facilities are located in Sheikhupura, Kabirwala, Islamabad and K arachi, Pakistan.Nestle provides mineral pissing to the customers with an objective to provide value to the customers. The play alongs main target market is those people who believe that tap piss is not hale. The company savours the highest market circumstances in the mineral piss industry of Pakistan however Pepsis Aquafina has been giving sticker competition to nestle pure life. 1 year Marketing plan for year 2011 is developed distributing each activity in dissimilar months.Situation Analysis guild Profile Nestle Pakistan Limited is a footslogger of Nestle SA, a Switzerland based company, aimed to build a based on sound merciful values and principles. In 1992, Nestl was the first company to boldness to launch a mineral water, in five several(predicate) countries at once. Nestle Pakistan is engaged in the processing, manufacturing and sales of products such as dairy, culinary, confectionary and beverages. The major companys products include NIDO milk, NESVITA milk, MI LKPACK milk and ice-cream, Fruit yogurt Everyday creamed tea, Cerelac and Nestle mineral Water (Nestle pure life).Mission Statement Nestl believe that research can help to make better food so that people bouncy a better life.Objectives This marketing plan considers the following objectives of organization for its product Nestle pure lifeTo maintain the position as Market Leader.Increase the Market share.Exceed customers expectations both in terms of product quality and service.Create awareness of benefit of PET bottles and approach in homespun areas.SWOT Analysis SWOT analysis helps to understand the susceptibility of the organization internally and externally (Lyndsay, 2010). Blow is the SWOT analysis of the companyStrengthsStrong dispersal channelSkilled LabourEducated provideLarge number of OfferingsStrong Brand NameStrong setting of the companyEasy to approachWeaknessesSmall Target market want of awareness among the target marketDependency of other government and sponsor s for the sight of eventsOpportunityFavorable weather conditions (Summer most of the time)People love to enjoy eating ice creamFew and Weak competitorsThreatsMajor players whitethorn enter in the marketLegal and ethical issuesLocal mineral water manufacturersEconomic slowdown and bad political conditionsCompetitors AnalysisNestle pristine livelihood introduce the bottled water culture. No doubt Nestle pure life is currently a dominant leader in Pakistan market in mineral water Industry. Nestle Pure Life is currently dominating more than 80% of bottled water market share (Rosemann, 2005), when Nestle Pure Life start its bottled water business in Pakistan way back in 1998 on that particular time AVA was the major competitor in the market, but after a time period of one year AVA was acquired by the Nestle Pure Life and presently currently AVA is in the business of bulk water. on that point are incompatible brands of bottled mineral water but the most famous areNestle Pure LifeAqua finaSufiKinleyFor manufacturing and distributing mineral water in Pakistan the company has to obtain licenses and have to follow the rules and regulations of Pakistan Standard Quality Control ascendency (PSQCA). Particular in Lahore, gourmet is giving a very subtle competition to Nestle pure life as their price is slight than Nestle pure life. Moreover, gourmet is approaching the other cities and rural areas of the earth and possibly will emerge as a strong competitor of Nestle pure life in near future. There are also other competitors order within a local market which include Sparklet, Acqacare, Pure, Aafi, Oura, Aabshar and many other local brands, but their market share is very low as canvass to the Nestle Pure Life.macro Environmental AnalysisThe Macro-Environment forces, which include political, Social-Cultural and Economic forces, affect the overall cognitive operation of the brand (Kotler, 2003). Political instability always matter in a market situation, there should b e an investment security. PSQCA has approved Nestle Pure Life Nestle Pure Life is also promoting the culture of military man and higher labor as many people from Pakistan have got course in the different parts of the world in Nestle Food.No doubt Nestle Pure Life is a market leader, but some of the government policies affecting the marketing strategy of Nestle Pure Life as government closed many several companies by saying that they are producing un approved water for the people of Pakistan in the mention of mineral water, but such kind of situation doesnt affect any marketing strategy of Nestle Pure Life because it is producing a water according to the standard which is approved by World Health Organization WHO.As far as Social and Cultural forces are touch now the people are realizing the need of bottled water especially in cities, as they are more health conscious as compare to the people of rural areas. But now the trend is changing in stages the people live in countryside they also realizing the need of Safe and sponge water, they know that health is wealth, as Nestle is a dominant factor so they are utilise Nestle Pure Life as their first choice.Target MarketOn the consumer side the Target Market isPeople who believe that tap water are not hygienicPeople traveling by road on highways, railways and by airTourists or foreignersMiddle, Upper Middle and Elite classStudents of school, college or universitiesOn the Business side target market isHigh ways, Motorways, railway station Airports bus stops hotels etc.Educational Institutes of the city, where students might interactshop centers and Market placesDepartmental stores and bakeries, General stores and others etc.Restaurants and hotelsMarketing MixProduct Nestle Pure Life offers not only pure water but also pure Life because water is life and also purity is life Nestle has always been the symbol of purity. Nestle pure water provides a balanced mineral jurisprudence (on Average 150-170 mg per lite r)Price Another strategy for success may be employ by lowering the price of bottles including bulk water bottles to attract more and more customers who may switch to its direct or indirect substitutes0.8 liter Rupees 181.5 liter Rupees 35Placement Distribution should be done not only in urban areas but also the rural areas of the country. Distribution in small cities of the country is also one of the distribution strategies of Nestle Pure Life.Promotion Nestle Pure Life is using integrated marketing communication. The Company has adapted both Push and put strategies and using mass marketing by Advertising i.e. using different types of Medias like TV, radio, magazines, Sales Promotion i.e. sponsoring different events, using billboards and involves in different social activities.ImplementationThis action plan will carry out the marketing strategy and achieve the main Objectives of Nestle Pure Life through a variety of Scheduled programs. Following activities will be held during t he year 2011 to promote the Nestle Pure Life.ActivitiesJanFebMarAprMayJunJulAug family lineOctNovDecInvoices IncomeRecovery IncomesTrade sale PromotionRegional Offices fortunate drawsFree OffersResearchAdvertisingData AnalysisEducate Dealersconstruct for bottled waterImplementationPress and pour OfferNew Stores committal AwardSpecific promoContingency PlanningThere is variety of risks tortuous in the marketing plan. Following are some of the risks and their mitigation strategies for the marketing plan of Nestle pure water.Wrong Market Information In Pakistani markets the availability of complete and authentic information is very difficult. There are very few government sources which provide the market information, but those also cannot be relied upon as the data collection is not known. In case the data or information taken from the governmental sources is found to be incorrect then the company will rely upon the data collected from surveys and past trends.Outsourcing If the int ernal resources are not able to meet the growing demand of the customers then the production will be outsourced, but the quality will not be sacrificed in any case.mismatch of Projections If there is a mismatch of the financial projection then the efforts will be re-doubled and the focus will be on direct marketing. However, the other marketing expenses will not be cut down as it is very necessary to keep conveying the content across the target audience.Nestls Organizational Objectives and Marketing PlanThe organizational objectives of Nestle Pakistan are aligned with the marketing plan. However the change in the market conditions lead in the change in organizational objectives which also reflects the marketing plan. The marketing plan discussed above tries to meet the following organization objectives.Market LeadershipNestle pure life is holding a market leaders position at the moment in Pakistani bottled water market. The marketing plans objective is also to maintain this positi on and to increase the market share by targeting the rural areas along with the urban areas. For this the distribution network is plotted to be stronger in small cities and villages.SafetyThe objective of the organization is to provide the customers with safe drinking water. Nestle brand provides the customers reassurance which they demand for fulfilling their most basic and important need. Marketing plan of Nestle pure life also focuses on educating the dealers and consumers directly about the benefits of mineral water.Healthy ProductThe formula developed for Nestle pure life contains minerals such as calcium, which is intrinsic for bone development and promotion of this benefit through media and direct marketing team reflects in the marketing plan and fulfills this organizational objective.Affordable Mineral WaterAnother objective of the company is to provide the mineral water to the target customer at affordable prices. The prices of all the formats of the mineral water bottles are very affordable for the target market and that is the reason Nestle pure lifes market share is highest in Pakistan.Convenient availabilityNestls objective is to make the mineral water available to the consumers almost everywhere. Marketing Plan of Nestle pure life target the customers at different location like railway station, schools, colleges, airports etc. which fulfills the product availability objective of the organization.Publicity and Promotion Strategy for Nestle Pure LifeNestle is using different strategies for the promotion and publicity for Nestle Pure life. down the stairs is the brief description of all the strategies used by Nestle Pure Life.Push StrategyThe company is using push strategy by using the sales force and promoting the product to the wholesalers and dealers. The Nestle cooler is one of the example in this regard as the dealers sells and provide the coolers with Nestle pure life brand and that promotes the product. This type of strategy is mostly used for the somatic clients like different companies, banks etc. in which the Nestle Pure Life branded coolers are placed and the bottles are refilled by the dealers/company representatives periodically. pouffe StrategyThe company is also using pull strategy by directly communicating to the consumers through high advertisement through different channels. This results in the walk-in of the customers in the outlets and other distribution channels request for the product.Above the Line (ATL) Company advertise above the line by using different TV channels, radio, newspapers, billboards etc.Below the Line (BTL) Company advertise below the line as well by distributing the fliers, through internet (Facebook), placing outlets at roadsides etc.Mass MarketingThe company is also using Mass marketing where the whole market is communicated the same product. The company through different media channels communicates to all the market of Pakistan by ignoring the segments and target market as being human beings all the people are the potential customers of the product.Integrated Marketing CommunicationThe company also assures that all the features and benefits of the product are communicated to the customers. Through advertisement campaigns the company conveys a message of purity and safety to the customers and also explains the ingredients of the product which are beneficial for the human body.