Analyze The Mix And Activities Of Nestle Marketing Essay

Analyze The mixed bag And Activities Of nose mart EssayIn this report we argon interpreting to investigate and analyze the trade mixing Activities of NESTLE. Most of the grocery store go ining practiti wholenessrs regard marketing mix as a tool for transaction marketing and the archetype for operational marketing planning. (Gronroos, 1994347)4ps.pngElements of market Mix (Armstrong and Kotler, 2001).MANAGING THE MARKETING MIXCustomer Wants Marketing Mix VariablesManaging the Marketing Mix (Baker, 1999302)The above figure describes how a companionship could by seek and in(predicate) adaptation kitty understand and develop harvest-homes to match the routineers requirements. t eithery to Baker (1999 303), by understanding and matching the needs of the guests efficient steering of marketing mix is possible.COMPONENTS OF MARKETING MIX Impact Positive and blackb eachPRODUCTKotler and Armstrong (2001) define a intersection point as any entity that flowerpot be offere d to a market by a confederation for economic aid, acquisition, inlet or use that might satisfy the needs of their guests.Product MixProduct mix is the total range of crossways that atomic tot up 18 construct by a caller-up. The major aspects to be considered in crossing mix argon explained below.http//genevalunch.com/files/2010/01/Nestl%C3%A9_ overlaps_1001192.jpgVariety come near offers a tolerant product mix that comp put ons of food, health and nutrition products to meet the customer needs. snuggle offers its products in the following categories Bottled water, child foods, Breakfast cereals, Chocolate and confectionery, Coffee, Dairy products, Drinks, Ice cream, In the Kitchen, Nestle Professional, feeding and Health, Pet c are.Quality Nestle is hygienic cognise for the quality and attempt of its products. Nestle Believes that Success is built on Quality.Design As its categorization range, Nestle besides has a greater range of design. Nestle pee legitimate all their new products look divergent and attractive.Nestle creates more jobs in Yorksmarties-jh4_gem.jpg smarties image by libsta_girlFeatures Nestle have do convinced(predicate) that all their products have finical features to hazard it more attractive to the customers. For modelling In case of their ice creams, they have tried to include the special feature that is the low fat and sugar content.http//squeezydeals.files.wordpress.com/2009/04/picture-11.png?w=273h=258Brand allude A strong reproach name is important for both the familiarity and the consumers as it adds to the take to be of the high society, names the products from those of its competitors and affects the consumer discernment of the company ( contact 2007328). A strong brand name in any case acts as a source of quality credential and can influence consumer preferences of products. Nestle, through with(predicate) its strong brand name and market presence has captured the heart of the customers worldwi de. In the present health- conscious society, Nestle has attract a loyal customer base through its focus on nutrition and health requirements and consumer preferences at a agonistic legal injury and it has enhance the reputation of the company.A Nestle brand name on a product is a promise to the customer that it is safe to consume, that it complies with all regulations and that it meets senior amply school standards of quality box Packaging involves designing and developing a even up for a product in order to gull it attractive to the consumers. Packaging was just a means for protecting the product in the past, besides today increase in competition has resulted in the need to differentiate the product from those of its competitors to attract the customers and to describe the features of the product in order to watch consumer recognition. Poor designs can be one of the reasons for reducing in gross revenue of a product due to less customer satisfaction. Nestle uses truly att ractive promotional material as one of their main marketing strategies.For its efforts, Nestle has won several accolades such as the Silver Star and outflank in category as Best Packaging Innovation star to a significant reduction in household waste by the British Institute of Packaging for the Dairy Box biodegradable tray which is manufactured by using renewable resources.http//www.sophiesflorist.co.uk/images/chocolates/dairy%20box.jpgROMOTIONStanton and Futrell (1987418), describe promotion as an important element of marketing mix which aims in informing and persuading the market about the products and services of the company.Juad18.jpg Jnescafe.jpgAccording to Baker (1999, 310) the regularity of communicating the product offer which is made by a company to match the needs of the customers and to persuade them to try the product is advancement. They feel that the conditional relation of promotion increases when the distance amid the producers and customers increase and as the number of customers increase. Promotion activity does non dep decease on the hold even if the essential is high promotional activities should go on in order to life the manufacturers name before the customers.Nestle uses promotion as one of the major source to r separately their customers to make them aware of the value of different products introduced in the market.Nestle adopts a promotion mix with a perfect move of several different promotion tools to promote the value of its product and make the customers aware of their products.Promotion ToolsPERSONAL SELLINGAccording to Stanton and Futrell (1987 418), personal marketing is mainly employ when the market is geographically concentrated (Few customers) and when the products are custom made. It is defined as a face to face communication with bribeers in the aim of pursuing the customers to purchase by Simon(). Its a one to one marketing. Tele marketing, door drops inserts, Door to door change are all techniques used in personal selling.J7_essentialprotein_image.jpg J6_essentialprotein_image.jpgNestle uses personal selling for specialized and sophisticated products.ADVERTISING advert according to Groucutt (2005215) is to communicate to a specific audience to stimulate action and its success is in the bearing the right information reaches the right person at the right time. Majaro (1993) says that advertize is any paid form non-personal communication of products, services or predilections through a commercial media. (Stanton and Futrell, 1987) Promotion through advertising is mainly make when the market is geographically dispersed or when the product is standardized.Nestls advertisements are well known in the market and they have made sure that the advertisements are attractive through all the possible media. Nestle as well uses internet to promote their products, where they have different websites hosted for different products. Different strategies for each product similar online competition s and distributions.HOW ADVERTISING WORKSTim Ambler and Demetrios Vakratsas have hypothecate a framework for studying how advertising works for a company.How Advertising Works (Ambler, Vakratsas 199926)They have considered the input to be advertising own and competitive brands. Scheduling the media and message contents are the motivation cyphers or triggers the consumers response. Cognition, the view dimension of a persons response, and affect, the feeling dimension, are portrayed as dickens major intermediate advertising gists (Ambler, Vakratsas, 199926)SALES PROMOTIONgross revenue promotion represents non- media campaigns such as sampling displays, shows, exhibitions and contests (Majaro, 199335). Stanton and Futrell (1987418) believes that gross revenue promotions one of the accelerated growing promotional methods these days. Free samples, Money off coupons, extra value offers buy one get one free, bundling, privilege points are all different methods used in sales promotio n. Nestle as well as uses sales promotion as one of their promotion tools by offering programmes like every day eating coupon codes and discounts and offers for online shopping on go up products.PUBLICITYPublicity is a promotional method where the organization is not paying for the communication about its products and is benefiting from it (Stanton and Futrell 1987419). This occurs either through a non-personal intelligence information story appearing in a mass medium or is delivered by a person in an interview or a speech. Publicity is achieved mainly through public relations activities. According to Jobber (2007) sponsorship provides more opportunities for publicity in the media.Nestle is a well known brand in the market and its fame describes its publicity and the further publicity occurs during variant interviews of officials of Nestle. Publicity for Nestle also occurs during the launch of every new product and when the annual sale reports are published. This publicity obtai ned by Nestle is not by paying any of the media.Nestle, public relation activities is evident from how they try to communicate with government organizations as well as the customers about the different issues that they face. Through public relations Nestle try to bring to the attention of all the customers and organizations concerned about various issues and the current approach they are taking towards these issues.PRICEPrice is defined as the value of a product that we get in return for all the effort that was interpreted for its production and also for marketing of the same product. Price is the revenue wage earner so it is considered as the odd one in the marketing mix. It is also considered as an important market tool which is visible to both customers and competitors (Baker 1985). The worth of a product depends on a number of factors like, changes in technology, effect of suppliers, competitive pressure and the increasing price sensitivity of the customers. Price is also direc tly dependent on the demand of the product. If the demands increase the price go away also increase and vice versa.Consumers generally show a not bad(p) interest in tracking the prices of the products which they ordinarily purchase. This enables them to analyze the attractiveness of the product and be vigilant about the changes in price of the product, thus enable them to compare the prices of the product in various stores (Vanhuele and Dreze 200272).Pricing of the ProductCompanies usually do not set a single price, but kind of develop a price structure that reflects variations in geographical demand and woos, market-segment requirements, purchasing timing, order levels, delivery frequency, guarantees, service contract, and other factors (Kotler, Keller, Brady, Goodman and Hansen 2009). According to David Jobber, set of a product mainly depends on 3 factors be, competitor and the market. hail orient determineThe most common method of pricing of a product is cost oriented pr icing, in which it is divided into full cost pricing which involves the calculating of cost of all labour and materials and direct cost pricing which involves the calculation of only those costs that are likely to rise as output increases.COMPETITOR ORIENTED PRICINGThe approach to pricing which only depends on the competitor rather than costs when framing a business is called competitor oriented pricing. Every consumer depart judge the price of a product by comparing it with a similar product in the same range which is produced by their competitor (Kotler, Armstrong, Saunders and Wong 2001).MARKET ORIENTED PRICINGMarket oriented pricing is one of the important scene of action which depends on competiveness of a product in the market. For a new product the positioning outline controls the pricing and for an existing product price will depend on the strategic objectives.Price-Quality RelationshipsPrice is directly dependent on the quality of the product. As the quality of a product increases the price also goes up. Nestle is a quality focused company and hence to struggle with current market it need to carry out the pricing work on of the product very carefully. Nestle is a very successful company and all its products are at affordable prices.PRODUCT LINE PRICINGMost of the companies usually develop product lines rather than single products. In product line pricing the management must decide on the pricing steps to set between various products in a line (Kotler, Armstrong, Saunders and Wong 2001). In product line pricing, cost departure between the product in the line, evaluation of customers and also the competitors products with small price difference is also taken into account.EXPLICABILITYExplicability is defined as the capability of sales pack to explain a high price to customer. In market customer demands the economic justification of product prices. If the sales people fail to reelect a clear idea of the product development stages, it will inhibi t the value of product. As Nestle is very innovative it needs a high financial support for its RD and it is not easy to give idea about the product development costs to an ordinary customer.COMPETITION contender plays an important role in the cost consideration of a product in a business. The main competitors of Nestle are Heinz, Kraft, ConAgra, Mars Incorporated, Hershey, Cadbury, popular mills etc. Since all their main competitors are also well branded, they cannot price a product without analyzing the competitors pricing. But the main advantages behind their successful pricing are that they are very superior in its market position.NEGOTIATING MARGINSIn certain market customer expects a price reduction in some products. Competitive discounts, fast payment discounts an annual heap bonus and other promotional allowances come under this category. Nestle and its negotiations with its suppliers made them to gain a good reasonable margin in all its goods.EFFECT OF DISTRIBUTORS/RETAILE RSWell qualified suppliers and efficient retailers is also a factor which affects the price of a product. If a distributor supplies a product with high price or a retailer sells a product in high margin it will cause the variations in price of the products. Nestle itself agreed that their distributors are well developed and hence the company can control the price of its products.POLITICAL FACTORSNestle sometimes blames the policies of governments for its poor aspect on the exports. Some of the government policies which results in increase in packaging cost makes the product less competitive in the global exportation market.PLACEArmstrong and Kotler (2001) describes place as the activity of a company to make the products available to the customers.Place StrategiesThe major factors to be considered while formulating a place strategy are transplants, Coverage, Assortments, Locations, Inventory, Transportation, and Logistics.Channel distribution strategies deal with the decisions on reservation the products available to the target customers in usable condition. A channel of distribution is the combination of institutions through which a seller markets the products to the user or last-ditch consumer (Peter, Donnelly 2004145). As the time and finances unavoidable for setting up a channel of distribution are comparatively high, the place strategies are practically critical for the success of a firm.The channels of distribution can be of two different types on the basis of the targeted consumer. It may differ when the end user of the product is a consumer or an organization, the Consumer Marketing Channel and the bank line Marketing Channel.Consumer Marketing Channel Armstrong and Kotler (2001)Nestle adopts the consumer marketing channel where the products from the producer reaches the consumer through the wholesalers or retailers. Nestle has e-marketing for some of its products where the products reach the consumers directly from the producer. line of credit M arketing Channel (Armstrong and Kotler, 2001)According to Donnelly (2004150),the channel of distribution strategic decisions are determined on the basis of the following factorsDistribution coverage requiredDegree of control desired agree distribution costChannel flexibilityDistribution coverage may vary based on the features of the product, the market and the target customers. The company may opt for intensive distribution, discriminating distribution or exclusive distribution.In the case of intensive distribution, the company tries to sell the product through the maximum number of retailers and wholesalers. In discriminating distribution, the company may limit the number of wholesalers and retailers which are the best in that market while in the case of exclusive distribution the manufacturing company may provide exclusive rights for distributing the product to only one or a few distributors.Nestle has adopted intensive distribution strategy in order to make its products availab le to a large customer base. Nestle products are available through a large number of retail outlets. Besides this, Nestle has also launched an e-shop for promoting its confectionary in Japan which allows the consumers to buy Kit Kat chocolates online.The coverage of Nestle is world-wide as it has a wide distribution channel and several manufacturing units at different places around the world.Marketing logistics involves the planning, implementing and controlling of physical flow of goods, services and related information from points of rake to points of consumption to meet customer requirements at a profit (Armstrong and Kotler 2001342).Nestle underwent a complete re-engineering of its supply chain which was aided by Total Logistics which has benefitted both Nestle and its consumers. Nestle has been able to operate composite pallet loads for entire UK, combining beverages and confectionery through two fomite authorizes and two distribution hubs (http//www.total-logistics.eu.com/l ogistics-clients/logistics-consultants-case-studies/nestle.html). Through this, Nestle has been able to decrease its fleet size and satisfy smaller delivery volumes without any increase in the costs.