Marketing Management of Nestle Company †Free Samples for Students

Question: Discuss about the Marketing Management Nestle Company. Answer: Introduction It is a company that engages in production and manufacture of food and non-alcoholic beverages that have zero calories content in them. The company is based in Vevey, Vaud, Switzerland. It had been formed in 1905 by the merger of the Anglo-Swiss Milk Company, established in 1886 by brothers George and Charles Page (Alvarez, Pilbeam, Wilding, 2010). The company does provide drinks with different flavors just like the other sodas that are in the market. The main aim of these drinks according to the company is to meet the needs of the people who have decided to adopt healthy lifestyles so as to avoid the high-calorie content drinks to expand their lifetime. Nestles Company Mission Statement Each and every organization always has a mission that it has set that will enable it to fulfill the various targets. When the organization or company has established a mission, it will be able to work hard for it to accomplish the mission it has been able to set. The company has always set its mission that it always wants to meet for the benefit of its customers and for the company to be able to earn more profit and develop (Alvarez, Pilbeam, Wilding, 2010). The mission statement of the company is to ensure that it provides sophisticated and inviting diet soft drinks that do not mislay the authenticity of the people health habits (Albaum, Albaum, Duerr, 2008). The company is determined to make sure that it meet the various needs of their customers through the provision of high-quality products, to ensure that they are satisfied and also provide a high level of professionalism. Also, the companies aim at making a difference and guarantee the creation of value as a company(Day, 2011) . This is the major mission that the company is focusing on which it has always set that brings in the workers and the employers together for them to work towards achieving that set mission. Strengths and weaknesses The company has a significant strengths that enable it produce more drinks to the customers. The diet of the drink is in high demand making the organization to deliver more drinks. The other strength that the company has is that the team members have great entrepreneurial skills that make them interact with the consumers efficiently and thus gets to know their needs (Jankovic, 2012). One of the weaknesses that the company has is that the level of competition is very high in the beverages industry. This makes the organization face a challenge of producing and maintain zero calories soft drinks. The other threat the company is facing is from Coca-Cola and Pepsi Companies that are already well established in the market(Kapferer, 2012). The 5Cs of Nestle Company Competitors Companies such as Coca-Cola and Pepsi are the main competitors in the industry. The company is using different types of fruits to make the drinks of different flavors instead of the chemicals that are utilized by the various competitors to ensure that the beverages are calorie free (Meldrum, Ashbridge, SA, 2010). The organization is more concerned with the health of the consumers as they would want the customers to take in more natural contents rather than take the chemical content of the body. Risk Analysis of Nestle Company Every individual in his/her life always has to face a risk for them to be able to be successful. These risks always tend to make people to become more confident and also to be strong in the activities that they are carrying out. This also applies to the various organizations or companies that are operating on different types of products (Morschett, Schramm-Klein, Zentes, 2015). Various organizations face different risks that hinder them in the proper completion of their functions. The company also faces some risks that it is trying to manage. There are three major types of risks that the company faces; they include compliance, finance and also the competitive risk. Compliance risks require the organization to comply with the various rules and regulations that have been set by the government. The company has been able to curb it by ensuring that it meets the necessary laws as well as the regulations that apply to it. In financial risk, the organizations always have to spend on the various activities that they are carrying out so that it may be able to make its production successful (Ngetich, 2010). The company manages all the cash that flows in and out of it in an efficient manner to avoid the deficits in the company. In competitive risk, various organizations always face competition from the different companies that are operating from the same products or even different products. The organization has been using better strategies to compete better than the other organizations. Various policies have enabled the company know how to beat their competitors in different ways so that it may be able to be progress more than its other companies. Overview of Nestles Distribution Channels After each and every company has been able to produce its products and they are finished, the company will have to distribute its products to the customers. The company has managed to develop a proper channel that enables it to reach out to the customers who keep on buying from the company (Alvarez, Pilbeam, Wilding, 2010). collaborators The distribution used by the company is mostly indirect. The company at uses the intermediaries who are the wholesalers and the retailers respectively who sells the products to the various customers. After the manufacturing of the Nestle drinks, the company distributes them to the wholesalers who then sell them to the retailers. The retailers are the ones who usually get in touch with the customers one on one after they have received the products from the company, and they sell to them. The company offers refrigerators to all the retailers to ensure that they can sell cold drinks to the customers during summer and also to make the soft drinks into good condition without spoiling. Climate The climate of Nestle Company is usually influenced by the external environment. Some of the external environmental influences on the company include; the political issues such as instability in some of the countries it operates in; social issues like satisfying the customers; technological issues where the company has to adopt the latest technology in running of its operations; economic issues where the company may experience budgeting depending on where they operate from and finally the legal and environmental issues like the use of green resources and the legal requirements that the company must adhere to. Company The company uses the SWOT analysis framework to gauge its operations. Through the framework, the company is now able to align itself with the many opportunities that are available in the market while at the same time ensuring that its weaknesses are not exposed to any possible threats. Customer Analysis Nestle company focuses on delivering the best quality products to its customers around the world. The company conducts a customer analysis value to enable it identify what exactly their customers want and value. It does this by assessing its own performance against its main competitors in terms of attributes. Customers Each and every organization always has a target market that it would always want to impress. This is to make the company be able to earn more profit and to be able to develop well than the other companies and to compete well (Karunakaran, 2008). The company understands that there are different ages of individual, people coming from a different race, different education level and also have different financial status. This makes the company care for the people on how they will be able to purchase the beverage products. This makes the organization be able to bring in more customers to the organization as the company is more concern about the people and it does not choose which type of clients to serve (Kotler Armstrong, 2010). Therefore the organization does not have a primary target, but it targets all the people. Companys market competition In the business environment, competition plays a critical role because it has a direct effect on the ability of such an establishment to be successful or not in the market(Ludwig Nestle, 2008). The company has been experiencing competition from various companies like that also manufacture the non-alcoholic drinks and alcoholic beverages. The major competition that the company is facing is from Coke, Pepsi, and Gatorade (Kumar, Noida, Gangal, Singh, 2011). These companies have for a long time been producing non-alcoholic beverages to many people across the globe. Nestles Strategic Position The primary objective of Nestle Company is to ensure that it remains the leading diet beverage in the United States and across the world as a whole. The company has come up with a strategic position that aims at ensuring that the soft drinks are made with the high quality and healthy ingredients and also that the drinks are dietitian directed to make sure that they meet the health needs of the people (Mason Lalwani, 2008). Nestles Company target consumers are the people who are looking forward to taking healthy drinks and have zero calories content as they are more concern with their health to avoid any form of a disease. The market can be said to be strong because the United States as one of the developing countries has a high number of people who are obese. The company states that when an individual takes the non-alcoholic beverage, he/she is in a position to manage their weight. Sales Strategy The company has developed a strategy to sell its products. In the modern world, many people are engaging mostly with the media, both the youth and the old (Payaud, 2014). This has been an advantage to the company as it easily markets its products to the people. The organization uses the social media such as Facebook to build its brand. This tool has been useful to the company because many people in the modern society use the Internet and have accounts with social networks like Facebook and Twitter. This is a sale strategy that the organization does implement and reaches out to many customers. The company has people who monitor the activities on the social media platforms(Steel, 2010). They are responsible for responding to any inquiries that are raised through the social media platforms. The other strategy the company has been using is print media. The company uses this to enable the people who are not able to have the social media accounts that make them be informed of the products that the company is producing (Peck, Christopher, Clark, Payne, 2013). Strategic Financial Planning Techniques/context Each and every organization always has a financial plan that will enable it to be successful. The organization always has a better plan that makes it be able to manage its operation that it is being carried out. This is the plan that the company uses for it to perform its functions therefore enabling it to develop and also earn more profit and also to bring in more customers. Trends in the Non-Alcoholic Beverage Industry In the world today, the non-alcoholic beverage industries are producing more sugary drinks and juices to the customers as various people would go for them since they have the sugary content in them. Nestle Company is more concerned with the health of the people as the company is aware of the various diseases that are affecting the individuals in different regions across the globe (Shapiro, 2008). The company has come up with the various kinds of flavors so as to attract more customers(Smith, 2012). The beverages act as an excellent source of hydration; it enables the company to meet the needs of individuals who prefer these flavors instead of having plain water to drink(Rowley, 2002). Budgeting The company is using budgeting as its most basic form of analyzing its finances for a better strategic management. The company conducts its budget variance analysis so that it can know where the previous budgets were inaccurate and the reason for the inaccuracy. This helps the company to make the necessary changes where deemed possible especially that cause adverse budget outcomes (Karunakaran, 2008). Marketing Mix of the Company Pricing Analysis The company conducts a pricing analysis of its products. The company always projects the effects of increasing or decreasing the price of its products in the market. This helps the company to create better pricing strategies like selling at a low price hence generating higher volume sales or selling at higher prices that might result in low selling volume of the products (Kotler Armstrong, 2010). The analysis helps the company to be able to determine the effect of these strategies on its gross profits. Performance Analysis Performance analysis is very critical to the company especially when the company considers buying another company or shutting any of its branches. The company does review its performance in the market before it makes any decision. The management does not only seek to know its profitability performance, but it also looks at the financial effects on the whole of Nestls Company (Kapferer, 2012). This makes the company expand and have a better chance of having more customers buying from them Place Nestle Company understands very well the importance of distribution and placement of its non-alcoholic beverages as it is also part of its product mix. The company has put in place strategies to ensure that it positions and distributes its products where its potential customers can easily access them (Meldrum, Ashbridge, SA, 2010). The company deeply understands its customer through the business intelligence analytics of what its customers really need. Through the understanding of its clients, the company has now discovered the most effective distribution and positioning channels that will help it speak directly to its market. Some of the strategies the company employs include; exclusive, selective, intensive and franchising distribution. Promotion The company is well aware of the importance of promotion as one of the best components when it comes tomarketing of its products. Promotion has helped the company to boost its sales and additionally its brand recognition. Some of the elements of promotion include; public relations, sales promotion, sales organization and advertising (Peck, Christopher, Clark, Payne, 2013). The company has heavily invested in advertising through the use of social media platforms, print media, television advertisements and the internet advertisements. The company also uses public relations to promote its products. References Albaum, G.S., Albaum, G. and Duerr, E., 2008.International marketing and export management. Pearson Education. Alvarez, G., Pilbeam, C. and Wilding, R., 2010. Nestl Nespresso AAA sustainable quality program: an investigation into the governance dynamics in a multi-stakeholder supply chain network.Supply Chain Management: An International Journal,15(2), pp.165-182. Day, G.S., 2011. Closing themarketing capabilities gap.Journal of marketing,75(4), pp.183-195. Jankovic, M., 2012. 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Nestl takes a beating on social-media sites.The Wall Street Journal,29