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In 1905 Nestle merged with the Anglo-Swiss condensed milk company which was good decision as you can see now. Nestle is the leading FMC company of Switzerland, more than 500 factories in 86 countries comprising almost all continents. One of the amazing things in Nestle is that “His family coat of arms, the nest with mother bird protecting her children, became the company’s logo and symbol of company’s care and attitude to life-long nutrition, the logo still using it until now. (History, 2013), 2. Marketing plan: Marketing plan of Nestle or in other words, the marketing strategy that Nestle Company is adopting is going global. This implies that the company is trying to take its business to greater heights by establishing in other countries. Nestle Equatorial African Region (EAR) is wholly owned subsidiary of Nestle S. A in Peeve, Switzerland. Nestle came in Africa toward the end of the 19th century and established its industrial presence in 1927 when the company opened its first factory in South Africa.
Today Nestle already have 28 factories which doing their business. Nestle products are sold in all the 53 countries of the African continent. (EAR, 2012) One of the countries which Nestle operating is Kenya and company is only intending to racket the Nestle ice cream product in Kenya since this market has not been utilizes well. So this report is aimed at providing the best solutions for the company as to be able to meet the goals in new market.
Mission& Vision The mission of the company since its inception is to provide the best Nestle products in the region by making sure that the quality of the products is researched before it is put to the market. With a lot of precision and seriousness, Nestle is aimed at meeting the needs of the customers by providing a variety of products which meet the demands of market in the country. The vision is to become the best in the region and to make sure that is reaches many countries as much as possible so that it can success in market as well as meeting the needs of each customers. Mission and Vision, 2012) PESTLE Analysts: Social & Cultural Kenya is a very viable ground for Nests ice cream product to succeed, Kenya is a multicultural country comprising of several cultures and ethnicities which are varied. These are the good reason for foreign company to enter the county. Nestle ice cream will have a chance to reach many individual at a given time, therefore increasing the sales in the market. Kenya, 2013) Economic The Kenya economy is known for its stability in issues of recession and depression.
Kenya economy has potential to achieve a five percent growth rate next year. For long time the country has been enjoying its stability in this aspects and therefore this would help the Nestle ice cream producing company in big way. (Ken’s economy, 2012) Political and Legal Kenya has very liberal government which can allow the company to transact business in it. The laws give room for the development for mergers and give a good environment for companies to thrive. Nestle ice cream will have a upper hand cause it would be easier to get into the new market in Kenya.
Legalities which are needed to set up the product in Kenya are fewer and the country offers a very nice scene where marketing of this can be very convenient. Technological Kenya is known because of its advancement in technologies. Over the years country has been trading with Australia in several other products and has been a lot of success. It is possible that through this product, Nestle producing company will also gain a strong market. Advancement in technology is makes the work easier for Nestle since the process at the ports become so easy.
Pestle; Soot Nestle, 2013), (Kenya technology, a preview, 2012), (FAQ, 2012) SOOT: Strengthened includes culture that is team focused and an open door policy, focuses on collectivism and performance orientation attitude which encourages employees to work hard. People all over the world trust and recognizes Nestle as a big brand name. I Weaknesses major weakness of Nestle is that it is entering into markets that are already mature and can give a tough competition to new entrants, also its same with most of companies.
I Oversimplifications in technology and give lots of offers for new market and entering company one of them s Kenya country. This will make process of work easier for new entry. I Threatened is facing the threats by worldwide community due to its violation of international marketing standards. Many conferences and campaigns have been held against Nestle in this regard which can damage the name and trust of its customer. When it’s lost the trust to customers it’s hard to regain became what the accomplished.
I (Curran, 2010), (Pestle; Soot Nestle, 2013) 3. 0 Application: Market Targeting, Segmentation ; Positioning The company needs to consider several issues that will be aimed at improving its target market. There are several factors that need to be considered when determining the target market. The fundamental questions therefore include Who is going to buy the product? And Who will be the customer? If these questions are taken into consideration then the target market will be met and the right customer chosen for the market.
In a bid to meeting the demands of all the customers, the company has identified several groups of customers in Kenya which it has put into several segments namely; the Coos, the retailers and the users which constitute of individuals who purchase the product Just for consumption. For the first segment, the Coos, the company will have a plan which will enable them to have the product in large bundle so that they can use it for a longer period of time without incurring other costs. The company has put in place ways of establishing a better product that will be more appealing to this group of individual.
These products will have a higher price than the others which will be targeted to the other segments. The company has made it possible that all the individuals in this group are catered for by making sure that their method of distribution and advertising reaches the Coos and since this is he major segments that will be relied upon, the company will invest more in its advertising in this group. The second segment which constitutes the retail group is a group of individuals that the company identifies as purchasing their products so that it can resell. The company is developing ways that will favor this group of customers.
Some of the ways include developing a plan that is aimed at creating a friendly process with the retailers. This plan involves having the retailers purchase the product at their convenient price so that they can complete the payments at a eater date and having the product in different packaged quantities so that they can adjust to the type that they want. The third segment which involves the users of the product is a special group that the company has laid plans for. Since this group is only involved in the consumption and not for resale of the product, the company has put in place special needs for them.
One of the concerns is making sure that the products are available in the right quantities so as to each of these consumers can have the product at their own convenience and putting in special prices for them. The company has also put in place advertising procedures which are aimed at reaching several parts of the world where the consumers can be found. Marketing Tactics: Product Modifications Nestle ice cream is a product which is associated so much with prestigious and therefore known to serve a higher social class of people.
This is because there are several cheap products that can be used instead of this product. Being aware of that, therefore the business is doing a lot of research in its marketing strategies so as to be able to reach the best people who can purchase these products. So far the rodents rank in use in towns than in rural areas. The strategy therefore is being inclined towards the rural areas where many potential customers still view this as a new thing and would want to give it a try. The product, Pestle ice cream is intended to be of high quality in the new country.
It will come in great flavors which will make every individual to choose the right one. These include having the right quality of the product like having the right vitamins and the right minerals. The research that has been in place before the actual product is put in place is very essential since it is owing to give the scope of our product line that will be a guideline to both the stakeholders and the customers. These therefore will serve as a gauge that will aid the company to rate its undertaking.
Price Modifications The pricing strategies are the most fundamental elements that need to be considered in deciding the right target market. The pricing of the company will be based on the competition that is in place which is posed by the other companies which are producing similar commodities. The company intends to offer a price that will be friendly to the customer and that which will give a reasonable return to the company. The company’s pricing strategy will be backed by making a list price that will be used in our retail outlet and make sure that this price is not hiked at any time.
The company further intends also to give discounts in our products so that more customers will be attracted towards buying it. Price Policy The company recognizes that price is the most important element in the company and therefore it’s going to develop some policies which are going to help attract most of the customers. The company will administer prices and therefore set prices consciously so as to be able to reach the objectives of the company. This is the best teeth that the company sees as what will attract the customers and keep them.
If the customers are expected to pay these prices, the company expects that this is going to be the most effective way of having it meet the objectives that it has put in place. The Nestle products company will use the fixed price policy which involves determining the price for customers who are willing to purchase the product under the same conditions and in the same quantities. These prices will be fixed in such a way that it will be very easy for the company to administer and in the long run be able to maintain a good will within the customers.
This strategy is one of the best that the company will consider as having the best returns for the company. The company will use competitive price level policy. This form of strategy is one that the company expects to use when it is considering counteracting the competitors in the market. Through this strategy the company is considering matching the prices of its competitors in the market which produce other related products and also be able to consider the stages that the product is in the product life cycle.
The company is therefore in a bid to competing with other companies which are producing the same prices. Allowances are grants that the company will give to customers so that they can be able to purchase more of their products. Discounts on the other hand are reductions from the normal prices that sellers often give to customers or members who have proved to be very obedient to the company and therefore they are trusted by the company. The Mill Company intends to use a non cumulative method of calculating the price reduction or discounts based on the number of products that the company will have purchased.
It’s therefore evident that if the intermediary will purchase a higher amount of products, then the intermediary will benefit more from he allowance. This form of plan will generally benefit those who are stocking their products in the intermediary level. The company is intending to use this strategy in determining its prices. This means that the company will consider the sensitivity of the prices to its customers. The company follows the law of demand that sensitivity of its products increase with increase in the substitutes.
The company will focus on establishing a price that is customer referenced which implies that the company will set relatively higher prices so that it will mean higher status and consequently a boost on the company. The price that will charge will be between $5 to $10 depending on the customers who are going to use the product. The company has a product line to consider. It will however opt for two categories, full line pricing and market oriented pricing. Market oriented pricing involves setting prices for similar products which makes it fundamental since all the prices are related in the market.
Full line pricing involves setting prices for the whole line of product. The difference which is to be obtained in the two categories should be reasonable enough so that the company will weigh the pros and cons of the two strategies. Through this, the company expects that the setting of the prices will be fair in the market and that the price will be a reliable one for the customers. Promotional Modifications The company intends to use various media so as to reach its target market. Research will be made so that the right media is selected which is more efficient and more reliable.
The promotional activities that the company intends to put in place include having a chain of distribution that is well coordinated and that which can provide the right channel to the market that is targeted. Some of the channels which are available in Kenya include use of mass media, newspapers, the internet and personal selling. Through these methods, the company is able to reach many people at the same time and establish a strong market in Kenya. (Vigil, 2012), (Nestle case study, 2013) Changes to Distribution/Place This aspect normally covers the distribution of the product of the company.
The Nestle producing company has a very organized mode of distribution which involves very qualified personnel. They intend to use very flexible methods of distribution which can reach many customers at the same time and which are not expensive to the company itself. Kenya is a very comfortable country in terms of the transportation network and therefore it can offer a good opportunity for the company to have access to many parts of the country and target many customers. (Market segmentation, 2010), (Robinson, 2012), (Nestle s. A, 2005), (Nestle marketing, 2013), 4. Conclusion: For a company that will turn one hundred in a decade, Nestle has almost tried all of the strategies there can be. Nestle company has expanded internationally, helped countries’ economies grow, be environmentally conscious and create Joint ventures with other companies in which enhanced Nestsg’s and these companies’ performance costively. Followed are a couple of recommendations in which might enhance their performance which are: * Exploit lands in poor countries: It’s Just like what they did for Nestle such countries are in South Africa for they suffer starvation.
Nestle can take advantage of the deserted lands, turn them to farms and employ from that land’s population to overcome their starvation problem or at least decrease. This way, the company will still keep their values of being a people’s company, which cares of people. * Avoid actions that are bound to fail Even though there is no way that someone can know the future, but a good management team should be able to extrapolate if a plan they have might back fire such as the scandalous event resulting from their oil practices, for cosmetics, activities mentioned earlier.
They should’ve expected that dealing with such activities might result in leakage and that they should’ve taken precautions before head. * Invest on R&D Nestle should concentrate on that in order to come up with new products. Since the company started out to serve infants in need for nutrition, Nestle should enhance and find way to enrich their product with substances and vitamins that will provide hillier their daily needs of calcium and even mothers. Because they should start from mothers’ health in order to provide infants’ health. Especially now when children suffer diabetes amongst other things, they need more care than before. Joint ventures Nestle should carry on with their partnership activities that will increase their competitive advantage more. However, they shouldn’t venture their business with companies that can’t sustain the pressure of the market and in which waver under the scrutiny of competitors. They should choose qualified companies and companies that show promising performance. Even though the future can’t be told by looking at numbers and financial performance, companies should extrapolate what might happen and look at all the angles of matters in both ways, positively or negatively.