Marketing Mix of Nestle-Free-Samples for Students-Myassignment

Question: Discuss about the the Marketing Mix of Nestle. Answer: Introduction Marketing for any business organization has a key role to play. This assignment highlights the marketing mix of Nestle, along with highlighting various recommendations for each of the marketing mix that will ensure the success of the organization and will help the company to improve its business policies (Nestle.com, 2017). Nestle is one of the largest food product manufacturers in the world. The company is a Swiss transnational food and beverage company that operates in more than 194 countries, with 480 factories in 87 countries, all over the world (Nestle.com, 2017). Nestle is the largest food and beverage company with more than 2000 brands to sell to various customers. The headquarter of Nestle in Australia is at Rhodes, Sydney (Nestle.com, 2017). The number of employees of Nestle is almost 339,000 people, all over the world (Nestle.com, 2017). In the year 2011, the company topped the list in the fortune global 500, as the most profitable corporation in the world (Day, 2013). The factories of Nestle at Australia are located at various places such as Gympie, Carole Park, Blayney, Tongaia, Boardford and many other locations (Nestle.com, 2017). The various products of Nestle includes coffee, medicated lozenges, recipe bases, sauces of various flavours, Noodles, baking ingredients, cooking milks, baby food and toddler nutrition. Nestle has a strong product line (Nestle.com, 2017). The company has various business units and the company uses different business strategies, in order to manage the different food products. The beverage, milk products, chocolates, noodles as well as the recipe bases have different business units and they use different strategies in order to run the various business units (Schlegelmilch, 2016). The mission of the company is to influence the social environment and become responsible citizens (Nestle.com, 2017). The company is also motivated to improve the quality of life as well as the environmental standards. The vision of the company i s to become a lead and competitive nutrition, health and wellness company that delivers improved shareholder value (Nestle.com, 2017). The customer base of the company is of a wide variety. The customers range from children to adults. Since Nestle has a wide variety of food products, hence the customer base is also wide. Analysis Product The products of Nestle are categorised into 4 broad categories. These include beverages, milk and milk products, prepared dishes, cooking aids and recipe bases, and chocolates. The product portfolio includes 8 of the 30 most sole confectionary brands in the world (Nestle.com, 2017). The products of Nestle are of the best quality and maintain the food grade quality that the World Food Corporation maintains (Nestle.com, 2017). The product brands include Nescafe, Coffee-mate, Tasters choice, Nestea, Nestle carnation, Nestle Hot Cocoa, Sunsational, Nestle Vitality, Sunkist, Nestle Coolpro. The wide variety of the products attracts millions of customers to buy the products according to their needs. The wide variety suits the customization that each customer needs (Appiah-Adu Amoako, 2016). The milk and milk products include Nestle every day, Grekyo, Nestle a+ nourish, Nestle a+ slim, Nestle ActiPlus. The chocolate brands include Nestle Kit Kat, Nestle Munch, Alpino, Eclairs, Polo (Nestle .com, 2017). Other than these, the company offers a wide variety of baby food as well (Moskowitz Huang, 2017). One of the most sold products of Nestle is the instant noodles and sauces, under the brand Maggie (Day, 2013). The quality and the brand name are important for the products of Nestle. Price The pricing strategies of Nestle are customer friendly (Nestle.com, 2017). Competitive pricing is used as a pricing strategy for Nestle. This pricing strategy helps in ensuring stable sale and lifts the sale even in the tough markets. The competitive pricing strategies are useful in ensuring that the prices of the products are based on the pricing of the similar items of the contemporary companies (Day, 2013). This pricing is effective in ensuring that the customers get the right products, by paying the appropriate price (Nestle.com, 2017). Moreover, it is important that Nestle regulate the price according to the demands of the customers. However, the pricing decision is often influenced by the factors such as changes in technology, effect of the suppliers, competitive pressure (Appiah-Adu Amoako, 2016). Since most of the products of Nestle are basic food and dietary elements; hence, the prices have to be affordable to the customers (Moskowitz Huang, 2017). The customer friendly pr icing policies attract more customers, thus seeking customer loyalty. Place The place where the products of Nestle are available includes mainly the departmental stores and supermarkets. The places of the products are important, since the accessibility is important for the sale of the products of Nestle (Nestle.com, 2017). The supply chain and the distribution mixes of Nestle are strong and hence the products reach the customers easily (Day, 2013). The distribution centres include warehouse and distribution centres, fair prices shops, whole-sellers, retailers as well as small grocery shops (Nestle.com, 2017). The Nestle Corporation dispatches their products from the distribution centres all over the world, to the retailers and fair price shops (Appiah-Adu Amoako, 2016). Thus, the products are well connected and flows easily from the distribution centres to the retailers, thus ensuring successful distribution of the products of Nestle (Dadzie et al., 2017). The well-connected network ensures that the products reach the potential customers at the right time, with the right price. Promotion Promotion is one of the most important activities that need to be taken up by any business organization, such that the potential customers are able to know about the products. The promotional activities that are taken up by Nestle are effective in generating sales and creating brand loyalty (Moskowitz Huang, 2017). The main purpose of promotion includes advertisement of the products, increase in the sale of the products, increased public relations (Day, 2013). Moreover, effective promotion enhances the brand loyalty and brand image. The customers are also made aware of the existing products as well as the new products. As promotional activities, Nestle uses advertisements, television commercials, hoardings, newspaper advertisements, as well as celebrity endorsement. Along with these, high discounts are given to the customers, such that new customers could be attracted to the brand Nestle (Nestle.com, 2017). Nestle also believes in personal selling. Nestle has various team of vendors , who are dressed in the branded t-shirts and jackets, selling various products as soon as new products are launched (Appiah-Adu Amoako, 2016). Promotion of Nestle through advertisements such as billboards, brand umbrellas, wall paints, product samples are also taken up by the company. Promotion through public relations is also taken up by Nestle (Moskowitz Huang, 2017). The promotion is useful and effective in enhancing the business of Nestle. People People form an important part of any business organization. The people refer to the target customers, who are the main source of selling the products (Peck et al., 2013). Market segmentation is an important process that needs to be taken up, in order to reach the target customers (Day, 2013). The bases of segmentation that is done by Nestle, are one the basis of the geographical, demographical, psychological and behavioural characteristics of the potential customers (Appiah-Adu Amoako, 2016). Division of the market geographically helps the company to identify the requirements of the customers based on the geographical region (Nestle.com, 2017). People living in the countries, where winter predominates, the usage of coffee is much more, than that of the warmer countries (Dadzie et al., 2017). Thus, demographic segmentation has a major role to play, in identifying the customer base (Morschett, Schramm-Klein Zentes, 2015). The people mix, taken up by Nestle is effective, as it is succ essful in ensuring customer satisfaction of people of various countries. Processes The process refers to the system and the operations that the company follows in order ensure the successful working of the business organization (Dadzie et al., 2017). The process is important since the manufacturing of the products, timely delivery as well as reaching the customers are an essential part of the process (Nestle.com, 2017). The quality check and quality assurance, along with the discarding the items that are out of date are essential processes and have to be taken care by Nestle, in order to avoid operational delay (Appiah-Adu Amoako, 2016). Physical evidence The physical evidenced refers to the products being delivered to the employees, along with the quality of the products that are being delivered by the company (Moskowitz Huang, 2017). The satisfaction of the customers, by receiving the products of their choice is an essential part of the physical evidence (Day, 2013). The perception of the customers is also included in the physical evidence of the products that are given to the customers. Partnerships Partnership with various organizations is beneficial for any business organization. Nestle also has partnership with various organizations, and together, they work towards the successfully to provide the best quality food products to the customers (Nestle.com, 2017). The key partners of Nestle are as follows: Imperial college of London The research partner of Nestle is the Imperial college of London, which works diligently, ensuring high level research being taken up by the college, to ensure nutritional development of the products of Nestle (Morschett, Schramm-Klein Zentes, 2015). A*star Nestle shares a positive relation in the partnership with Singapores government agency for Science, technology and research (Nykiel, 2016). This partnership is important and provides a new base for the companys regional centre (Nestle.com, 2017). EpiGen Consortium This partnership is important as it explores epigenetic and explores how nutrition and the dietary habits affects the genes (Nestle.com, 2017). Recommendations Product The products of Nestle have a wide variety. The wide variety is able to carter to a variety of customers, thus fulfilling the demands of most (Moskowitz Huang, 2017). The products of Nestle are of high quality and are suitable for customers of various ages. However, it is recommended that along with a wide variety of products, the diversity of the products might also be increased. Specialised and nutritious food such as baby food or food for patients suffering from various diseases might also be introduced (Nestle.com, 2017). This will be a significant initiative on the part of Nestle, since the company has already gained confidence of the customers. The introduction of any new product will be well-accepted by the customers. Another recommendation for the products of Nestle includes the sale of all products to all the countries where Nestle is operational (Moura, Branco Camoesas, 2015). At present, the products of Nestle vary from one country to another (Dadzie et al., 2017). Howev er, people of the other countries might also have the demand for the products sold in a particular country. Hence, the products of Nestle could be globally available, in order to ensure globalization of the products. Price The competitive pricing strategy is effective for the products of Nestle. However, it is recommended that price skimming or psychological pricing. Price skimming refers to the decrease of the price of the products in order to stay in competition with the similar companies (Morschett, Schramm-Klein Zentes, 2015). Price skimming is important, such that Nestle is able to gain competitive advantages over the competitors such as Unilever (Dadzie et al., 2017). Moreover, in case of psychological pricing the companies work on the psychology of the customers (Wymer, 2017). For example, the price of any product being $99 has a stronger effect than $100 (Lockrey, 2015). Thus, Nestle could work on the psychology of the customers, increasing the number of customer base for the various products of Nestle (Moura, Branco Camoesas, 2015). Place The products of Nestle are available in a variety of places. These include the supermarkets, departmental stores as well as valued retailers (Morschett, Schramm-Klein Zentes, 2015). The place is important for the success of the business, since the availability of the products determines the sale of the products (Moura, Branco Camoesas, 2015). Though the place where the products of Nestle are available yet it is recommended that the products could be available online widely (Nestle.com, 2017). This will increase the number of loyal customers, as they would be able to buy the products as and when required. The online presence is important in enhancing the business of Nestle (Lockrey, 2015). The ease of availability of the products of Nestle is important to enhance its business. Hence, the ease of availability of the products at the departmental stores, need to match with that of the online presence. Promotion The promotional activities that are taken up by Nestle are useful in promoting the various products of Nestle. The television advertisement, along with that of the hoardings and placards, celebrity endorsement are effective (Dadzie et al., 2017). However, the company needs to take up proactive initiatives of social media marketing (Bhattacharya, 2016). Using the social media, for promotion of the products is useful and is likely to be effective in order to ensure the success of the business (Morschett, Schramm-Klein Zentes, 2015). Moreover, the word-of-mouth is also an important promotional mode, thus ensuring successful promotion of the products of Nestle (Moura, Branco Camoesas, 2015). Processes The operational activities and processes that are followed by Nestle are effective and ensures the successful workflow. However, it could be recommended that the new technologies could be in order to ensure the steady workflow (Dadzie et al., 2017). New technologies such as RFID could be used to track every activity that the company undergoes, thus helping Nestle to ensure remote tracking of the various processes (Bhattacharya, 2016). With the use of the RFID technology, the RFID tags that are attached to each component, could be traced from remote locations (Morschett, Schramm-Klein Zentes, 2015). Moreover, delay in the supply chain or logistics could also be kept in track, thus enhancing the process of operations (Lockrey, 2015). Physical evidence The recommendation for the physical evidence includes the enhancement in the customer services that will attract many new customers, along with retaining the loyal customers. Since the physical evidence includes the feel of the products as well, hence, it is important that the qualities of the products be not compromised (Moura, Branco Camoesas, 2015). Hence, it is recommended that the customer assistance be improved (Bhattacharya, 2016). Moreover, the physical evidence also includes the ways the customers are handled and the after sale services. Thus, it is important that the physical evidence have to be taken up diligently (Lockrey, 2015). People The people includes the potential customers of Nestle. The people needs to be given adequate importance. The target customers have to be identified, along with reaching out to new customers. For Nestle, it is recommended that they spread their business in other regions of the world. Reaching out to the new customer base will result in the increase in the number of potential customers (Lockrey, 2015). Moreover, reaching out to more people will result in enhancement of the business. The demands of the customers will be identified and changes according to the demands of the customers will be incorporated (Morschett, Schramm-Klein Zentes, 2015). The people should be given adequate importance, such that the business of Nestle will receive a boost. Partnerships The partnership of Nestle, with the various organizations is important in order to enhance the business of Nestle. The partnership is important and had to be ensured that positive partnership and alliance is taking place in Nestle (Dotti, 2015). It is recommended that Nestle should enter into partnership with various other organizations such that the research and development of Nestle could take place (Morschett, Schramm-Klein Zentes, 2015). Moreover, scientific research will enhance the products of Nestle. Hence, it is important that Nestle should enter into partnership with various research labs and scientific research centres, in order to ensure nutritional enhancements of the products (Lockrey, 2015). Thus, with active participation and partnership are important in order to bring enhancement of the products of Nestle. Conclusion Marketing mix has a key role to play in any business organization. It has a key role to play in Nestle as well. The marketing mix includes various essential components that have a key role to play in the marketing activities of the business organization. The marketing mix includes the various components such as the product, price, place, promotion, people, physical evidence, processes and partnership. Each of these components has a key role to play in enhancing the business of Nestle. The products of Nestle are of wide variety. Thus, a large variety of customers could be catered with the variety of the products of Nestle. The price of the products is competitive and according to the affordability of the target customers. The places where the products are available are well accessible by the customers. The distribution of the products from the warehouse to the retailers is well connected, thus ensuring steady flow of the products, according to the demand of the customers (Bhattacharya , 2016). The promotional activities are taken up effectively by promoting the products using social media, advertisements, and print media. Discounts and loyalty discounts are also given to the customers, as a promotional activity. The people include the target customers. The company, thus choosing the target customers appropriately, does the market segmentation effectively. The processes and systems are followed strictly, thus ensuring steady flow of the operational activities. The physical evidence is also important and has to be given adequate importance. 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