Principle of Marketing Assignment

Principle of Marketing Assignment Words: 5006

Mill is a milk average with chocolate and malt produced by Nestle and Arlington from Australia. It was developed by Thomas Maine in 1939 Mill. Mill was developed in the 1939 year during the depression when many children were not receiving enough nutrients form their daily diet. Mill created by the Thomas Maine who is a Nestle Industrial Chemist and he created the nutritious beverage using local milk knowledge and Swiss Cocoa expertise. Mill is also manufactured In other countries such as Singapore, Malaysia, China and so many countries In the world.

Nestle business bob]scuttles Is to manufacture and market Its product in a way that creates value that an be sustained over long term for shareholder, employees, consumer ,business partner in which Nestle operates. The aim of the creating values for the company include with improve business condition for the firm. The mission and vision statement of Mill is to obtain more reliable and high qualify source of raw material , improved government functioning and regulatory , employed skill and loyal workforce and superior quality products which successfully complete.

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Furthermore, Mill Is a very well-known product and also has variety of product Items under the same brand which is Mill. These are some type of Mill that Nestle have been produce. Example like the original Mill, Mill Fuzz, Mill 3 in 1 and so on which are very suitable children and adult to fulfill they energy . The most popular is Mill 3 in 1, it offer the complete creamy mix of Mill, milk and sugar plus energy releasing Acting-E and contained MGM of calcium covering 2/3 of the recommended daily allowance on adult dally calcium need for bone strength.

In addition, most consumers chose Mill since It Is a brilliant example of the superior quality and also basically selling directly to consumer and made the business is growing rapidly. Besides that, Mill has been around for decades and becomes one of Malaysian favorite chocolate malt drink to everyone and Malaysia also is the world largest consumer of mill. Malaysian were said to be world largest consumer of Mill. This because Mill was once used as a nutrient supplement when It was first Introduced In the country and has gained a in capita and make stalls offering version such as Mill Dinosaur, Mill Godzilla and Enclose in Malaysia.

So by time to time, Mill is become one of the drink beverage in daily life. Product Classifying Goods and Services For Consumer And Business Markets From our reduce, Mill, can be listed as consumer product and business product also. Consumer products are those products which the people bought and used by the ultimate consumers while business products which are also known as industrial or organizational products are contribute directly or indirectly to the output of other products for resale. (Kurt & Boone 14th e, 2008) Firstly, for the consumer product, Mill can be listed as convenience products.

Convenience products refer to the goods which the customers can be purchased immediate, purchased frequently and low in price. (Kurt & Boone 14th e, 2008) There are three types of nonviolence goods which are impulse goods and services, staples, and emergency goods and services. Mill is considered as staples. Staples are those convenience goods which consumers will constantly purchase along the days to maintain the ready inventory in their house. The examples of staples are shampoo, detergent, biscuits, and include with Mill also.

Consumers will purchase Mill as a drink which they can take it when they are hungry. Other than consumer product, Mill also can be considered as business product. Business products can be defined as the products which bought by the customer to process and modify the products and sell it again. (Kurt & Boone 14th e, 2008) In another words, business products are bought for the business purpose. There are six types of business products such as Installations, Business Service, MR. Supplies, Raw Materials, Accessory Equipment, and Component. For our product, Mill, is listed as the raw materials.

Raw materials refers to those product resemble component parts and materials in that they become part of the buyer’s final products. There are also the sellers or the owner of the restaurant buy mill as a raw material for them to produce the Mill ice or hot and sell to their customer. Product Life Cycle There are four stages in the product life cycle which are Introduction Stage, Growth Stage, Maturity Stage and Decline Stage. (Kurt ; Boone 14th e, 2008) For our product, Mill, it is still maintain in the maturity stage. Maturity stage states that the product in the market is existed for a period of time.

The competitors are coming into the market as well. Then, the profits of the product are going to decline as competition intensifies. In this stage, the competitors’ products are very alike with your company’s product. In order to increase their sales and market shares only at he expense of competitors, so the competitive environment becomes increasingly important. In order to maintain their status in the maturity stage, Mill tried to come out many other flavors of Mill products. For example, instead of Mill original, Mill Cereal, Mill Hi-Fiber, Mill Less Sweet, and Mill Segue.

Mill is trying to differentiate their products from being selling the similarity products with their competitors in they success to maintain their market shares in the market and their products are still available in the market since they launched their products for the first time in 1950. Nowadays, other than differentiate their products from the competitors’ products, they also do many advertisements on their products with the purpose to remind their customers that Mill products are still available in the market and they can get the products in the available distribution places.

Other than maintain the market shares in the market, Mill also have to extend their product life cycle. In order to extend the product life cycle, Mill can extend it by increasing the number of their users. Mill does come out with the new products to increase their users such as Mill Cereal, Mill Hi-Fiber, Mill Less Sweet, and Mill Segue. These new products were come out to attract the customers to buy their products in different flavors or benefits after they drink the Mill products. Thus, those new Mill products can help them to increase their number of users in the market.

For example, Mill Hi-Fiber and Mill Cereal are for those who are on diet and stay healthy. Then, Mill Less Sweet is for those who are caring for their healthy and especially for the old people. Mill Segue can be prepared by using the cold water and the children or teenagers would like it. Hence, Mill came out the new products and it may increase the users in the racket and maintain their market share in the market as well. Branding The brand for our product is Mill. Mill is the name and term that can let the marketers to identify the products from all the products which other firms put them in the market. Kurt & Boone 14th e, 2008) The buyers will identify and see the logo of Mill if they want to buy the Mill products. There are five types of brands which are manufacturer’s brand, private brand, captive brand, family brand and individual brand. For our product Mill, it can be stated as manufacturer’s brand. Manufacturer’s brand states that the brand which is wend by a manufacturer or a producer that they can produce the product by their own. Mill is one of the brands from Nestle Company. They do have their own factory to produce the Mill products by their own.

Thus, they can be stated as a manufacturer’s brand. Brand name is the part of a brand consisting of words or letters that form a name that identifies and distinguishes a firm’s offerings from those of its competitors. The brand name for our product is “Mill”. Whereas brand mark is the symbol or pictorial design that can help the marketers to distinguish and differentiate the products from other competitors’ product. The picture below is the combination of our product’s brand name and brand mark.

Packaging Packaging is carried out with the purpose to contain and protect the product to avoid it from destroyed or broken. For our product, Mill, it is only packaged in the size of sticks and there are around 20 sticks in a large package which is packaged by a plastic bag with the Mill logo. Other than using a plastic bag, Mill also does use the box which is made by the recycle paper. Normally the Mill that packaged by the paper box are the ready drinks or the Mill Segue product. Labeling Labeling can help to identify the product from certain brand. It also may describe plastic bag.

On the plastic bag, there are few details that describe about the products such as the ingredients of the product, the volume of the products and also the nutrition benefits after drink the Mill. Product Development Strategies There are four product development strategies which are Market Penetration, Market Development, Product Development and Product Diversification. These strategies can enable the company to put their products in the market and earn the profit. For our product Mill, there are three strategies used by Mill which are Market Penetration, Product Development and Product Diversification.

For the market penetration, it states that the company will improve the quality of the existing product and improve its quality as well for the existing product in the existing market. Mill does modify their products which is the original flavor. For example, they come out with the Mill Segue with the Mill drinks can be prepared by using the cold water. Other than that, they also changed their packaging to attract more buyers to buy their product and also add in more Mill in their product so that the customer will satisfy with their products.

Then, product development strategy states that the company will introduce the ewe product in the existing market to gain more market share. Mill does introduce their new product such as Mill Less Sweet into the existing market. Nowadays, the human are more care of their healthy. So, they more prefer the healthy food such as organic food. So, Mill comes out with the Mill Less Sweet to attract the customers who are likely to have lesser sweet for their drinks. Other than that, product diversification can be said as there’s new product introduced by the company in the new market.

Mill comes out with the new product such as Mill HI-fiber. This new product is a totally new product and Mill is trying to argue for the new market. Mill Hi-Fiber can help to promote bowel movement to reduce the occurrence of constipation. Mill can target the new customers in the new market with the new products. Pricing Pricing Objectives The pricing objectives that used by Mill are profitability objectives and volume objectives. Profitability objective states that the company will have this objective to gain the higher profit by setting the higher price for the product and reduce the cost to the lowest. Kurt & Boone 14th e, 2008) So, by selling the product at a higher price and using the lower cost to produce it, the company can gain more profit on the reticular product. Mill is trying to increase the price for their products recently. This might be one of the way for them to gain more revenue when they are trying to lower down the production cost and the cost for raw materials at the same time. Then, volume objective can be explained as the company would like to target for more volume that the product sold in the market and the company’s market share will be increased at the same time.

Mill would target to get more sales volume so that they can get the long term profit in the future instead of targeting for the immediate sales and profits. They hope that their products can be sold in larger would continue to buy their products in the future days. Pricing Strategies There are three pricing strategies which are skimming pricing strategy, penetration pricing strategy and competitive pricing strategy. For our product, Mill, the pricing strategies that they used are competitive pricing strategy and penetration pricing strategy which is also known as market-minus pricing strategy.

Mill does set a low entry price when they came into the market many years ago. The low price will attract the marketers to buy and try their products. Other than that, the low price will also be helpful in the market acceptance. Mill hopes to gain more sales and market share by fighting for the volume of their products sold in the market since there are many competitors selling the undifferentiated products with Mill such as Vice. Other than using penetration pricing strategy, Mill also implement the competitive pricing strategy into their business.

They do set a price which may match their product’s selling price with others competitive firms’ products’ prices. By setting the same price with their competitors, they only can focus on the other marketing rabbles such as product, distribution and promotion to gain the advantages and win over their competitors. Pricing Policies Pricing policies can be explained as a general guideline that reflects marketing objectives and influences specific pricing decisions. Kurt & Boone 14th e, 2008) There are seven pricing policies which are psychological pricing, price flexibility, product-line pricing, promotional pricing, loss leaders and leader pricing, bundle pricing and also price quality relationships. The pricing policies used by our product, Mill, are psychological pricing policy, promotional pricing policy, and product line pricing policy. Mill does implement the psychological pricing policy when they set the price for their products. For example, Mill will set the price for their 3 in 1 Mill product with the price RMI 2. 9 and set the price for their Mill Ready to Drink products with the price RMI. 99 for 6 cans. These are the odd pricing policies that give an intention for the marketers that their products are selling at a lower price when the decimal points haven’t round up. Other than that, Mill also implements the promotional pricing policy in their business. A few months ago, Mill did come out with their Mill cars in the toy series. There are many series of Mill car since 1960. They will let the customers to redeem their toys by using the bag of Mill products.

At the same time, they also encourage the buyers to buy more Mill products if they want to redeem the limited edition Mill toys cars. Thus, the company can gain a higher profit when giving the promotion or some free gifts to the customers Moreover, Mill also sets their price by using the product-line pricing policy. There are different types of products with the different product lines for Mill such as Mill 3 in 1, Mill powder, Mill Segue and Mill Ready to drink. Thus, they do set different prices on the different product lines at each of these price levels.

For example, they sell Mill 3 in 1 at the price ARMS. 99, sell Mill powder for 2 kilograms at the price RMI 8. 99 and sell Mill Ready to drink at the price RMI. 99 for 6 cans. From this case, we can know that there are different price set for different product lines for Mill products. Place relates to decisions about selecting the products channel of distribution. These decisions are important for the success of an organization. The major distribution channel include with geographically consideration with the manufacturing place attitude.

It is very cost effective way for the firm’s expenses in distribution. Nestle Company must first be good at partner relationship management in order to be good at customer relationship management. Distribution Channel Distribution channel also known as marketing channel. It is a set of interdependent organizations that make a products or services available for use and consumption and enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user.

The major distribution channel include with geographically consideration with the manufacturing place situated. Marketing channel helps Nestle Company to facilitate the exchange process by cutting the number of contacts necessary. Nestle Company involves few marketing intermediaries which are wholesaler and retailer which operates between producers and consumers. Indirect channel is usually using by Mill Company which have to go through such channel intermediaries. Furthermore, Nestle are using two types of channel intermediaries to market its product which is Mill.

The two types of channel are by using retailer and wholesaler. It have a lot of advantages which is high frequency of ordering, shorter time for shipment and have high number of customers and these advantages make their company to be convenience. Consumer Retailer Producer Wholesaler Wholesaler Channel Retailer Channel Mill is using both wholesaler channel and retailer channel (Producer retailer consumers). Nestle is adopted Intensive distribution which means distribute the product to everywhere for Mill.

The Nestle is also distributing Mill at big stores and different bakeries for example, Good Luck, Sheehan and also giving it to the distributors. Wholesaling distributes these goods to retailers, other distributors or business-to-business (BIB). Kurt, 2006) In general, it is the sale of goods to anyone other than a standard consumer. The type of wholesaler used by Mill Company is merchant wholesaler. It is the largest group of wholesaler. There have many functions provided by merchant wholesaler, there are selling and promoting, warehousing, transportation and market information.

Mill Company sales forces help manufacturer reach many small retailers and customers at low cost. Besides, Mill company hold inventories thus reducing the inventories costs and risks of suppliers and customers. Mill Company also provided the quicker delivery to buyers such as use their company’s Lories to stubbier the product to those retailers. Mill Company also provides information to customers and retailers about their competitors and the price development. They also give details information about the new product, such as benefit the product, ingredients and design.

Retailing Retailing includes all the activities involved in selling products or services directly to final consumers for their personal or business use. (Kurt, 2006) In simple word, business is flowing to consumers. Those retailers of Mill Company play a very important role in the market which is known as the final stop in the consumer’s path to purchase. The type of retailer for Mill Company is relative prices charged. It means that when during Sales, Mill Company will offer a discount for their product to the consumers.

There are several product line classifications used by Mill Company to help them sell their product to the customer easily. The first one is supermarket, such as Tests, Giant, Tunas Ninja and many more which is large, high- volume and self-service store that carries a wide variety of food, laundry, and household products. Second is convenience store such as seven-eleven, a small store that located near residential areas that are open long hours 7 days a week and carry limited line of high-turnover convenience goods. The last one is superstore.

I-Joy superstore is an example of superstore that sells Mill product. A Superstore is larger than the regular supermarkets and offers a large assortment of routinely purchased food products, nonfood items, and service. Promotion No matter how well a company developed a product, prices or places, it also cannot survive in the marketplace if it without an effective promotion. Promotion is communicating with the public in an attempt to influence them toward buying your products and services. Promotional strategy is a plan of optimal use of the elements of promotions that is used by Nestle to promote Mill.

The main function of their promotional strategy is to convince their target customers that their goods and services offered provide a differential advantage over the competition. As example, Mill convinced their customer that children will be more energetic if they consume Mill. After setting the promotion objectives, Mill continues to decide how much money to spend in. It is not an easy task to deal with because there are several elements needed to spend on in promotional activity such as advertising, sales Mill effectively communicates their differential advantage through advertising.

Advertising is the non-personal communication of information usually paid for and usually persuasive in nature about products, services or ideas by identified sponsors through the various media. (Above, 1992) It is a very important promotional tool, particularly for Mill, which is targeted at mass consumer markets. But the communication is not Just about advertising only, it is also often creates a creative slogan to make sure consumer will remember Mill. Nestle company are depends heavily on advertising. They advertise on Television

Advertising through television by showing the vitamin, calcium and protein that can gain in Mill to show to the consumers and also promote some new product like Mill 3 in 1, Mill Segue, Mill Ready To Drink, Newspaper which grab the attention of reader by let consumers know that drinking Mill beneficial to the body. Besides, they also advertise Mill at internet site like Faceable as they created a page named Nestle Mill in Malaysia that provides loads of details and information of Mill. Billboards about Mill are also displayed by the roadsides like highway where display loads of billboards of different products.

The aim of Mill billboard are attracting many people who pass by that roadside and those people who cannot afford their time in reading newspapers or watching televisions. Sales Promotion Sales promotion consists of marketing activities other than personal selling, advertising, guerrilla marketing, and public relations that stimulate consumer purchasing and dealer effectiveness. (Kurt, 2006) Nestle Company had prepared many activities to return to the customer. For example, if consumers buy a can of Mill 1. 9 kilogram, there will be a WIN A AD TV sticker attached to the lid.

Then they ay have the chances to win the contest and get the AD Television. Furthermore, to attract more customers Nestle Company will also give discount for their product or free gift such as water flask or mug along with the Mill pack that consumer’s buy in the supermarket. Public Relations Public relations involve the management function which evaluates public altitudes, identifies the policies and procedure of an individual or organization with the public interest, and carry out a program of action to develop positive relationships with the organization’s media public in order to earn public understanding and acceptance.

Nestle Mill is well known for their commitment and sponsorship efforts for any type of events in Philippines especially for those primary and secondary school. Mill sponsors almost all type of sports event and Nestle also collaborate with Ministry of Sports and Youth in order to organize national and international sport event. For example, they normally open a booth in every event they sponsored and giving out free Mill drinks. It is effective since it can increased or maintain the relationship between products and consumers. Moreover, Mill had organized a MILL inculcate program.

It is recognized as Australian cricket’s premier Junior development program. This program offers children (who are aged 5 to 10 years) the opportunity to to develop social skills, teamwork and making new friends. This creates a good impression towards the consumer about Nestle Company and they will purchase Mill product since this program was held. Furthermore, Mill also giving financial help to orphan children’s through EDDIE organization. Mill is giving one rupee on the sale of every Mill to EDDIE organization in order to help those orphan children. Market Opportunities We have identified two market opportunities for Mill.

Mill can open a dessert and beverage shop which is similar to Cataracts rather than Just selling the drink itself. Mill is only offering beverage, breakfast cereals, ice cream and choc bar for now therefore Mill can take this opportunity to offer a new kind of product or service to the public. Since Mill is popular in Malaysia, it will not have any problem in attracting customers to visit the shop. By taking advantage of the opportunity, Mill has a very big potential to start its own franchise business like Cataracts. This concept is very attractive because no one will ever expect Mill to start up a new cuisines like this.

This initiates a new profitable business and therefore maximizes their profit. Mill has been well-known in Malaysia, Philippines, Australia and some other countries. However, it is not popularly recognized by other countries like US and in Europe. Mill can take the advantage to let US and Europe people know about Mill and what it is. The US and Europe market is a very big market therefore it is a good opportunity for Mill to expand its business internationally and do more advertising on the coming international sports event, the Olympic 2012 which is held in London,

England and the World cup 2014 which will be held in Brazil. By doing this, Mill will able to spread its brand to the world and more people will know about Mill which is nutritional and provides energy to people who consume it. Mill will then export the products to worldwide and expand their oversea market share. Recommendations For the recommendations, Mill can offer a variety of drinks and desserts in their dessert and beverage shop by adding on some other flavors in the drink or use Mill to make a cake. For example, Mill milkshake, Mill cake, Mill ice-cream waffle and others.

This can attract generation Y which more emphasizes on life balance and therefore they will choose to relax at this kind of environment. Mill should find a strategic place to start this business like in shopping mall, somewhere near colleges, universities or secondary schools. This is because when shoppers tired they can go rest and have a drink at there and students can also do revision at there. Mill can also offer free drinks for first 100 customers on their opening to attract people to come and create crowd. This can increase its publicity because people often curious ND will take a look when there is a large crowd.

Thus, public is aware of the new products and service offered by Mill. Secondly, to successfully export Mill to worldwide and expand its market share, Mill should sponsor more international events and athletes so that people from worldwide know what Mill is. For the World Cup 2014 in Brazil, Mill can take the 10% of their sales to poverty in Brazil. By doing this, Mill will gain a lot of fame and recognition while promoting their brand to the whole world. Moreover, Mill can set up some booths giving out free Mill drinks to the people during the Olympic or the World Cup.

People who never tried Mill drinks before will have the chance to taste Mill and therefore can expand the market in overseas. Thirdly, Mill should provide more vending machine all over the world. Mill can install more vending machines in shopping centers, sports complex and so on. For example, they can place the vending machines at the stadium for the upcoming Olympic 2012 and World Cup 2014. The vending machine should provide not only the drink itself but also the snacks like Choc bar and ice-cream because the audience and supporters often eat snacks in the stadium.

This event can maximize Mill’s profit ND it is also convenient to people that wish to buy Mill products whenever they want. Besides, placing vending machines are low cost because it does not require any stuff and it only needs a couple of hours for keeping them serviced and stocked with the products. So, Mill should make and install more of their vending machines throughout the world. Conclusion As a conclusion for this whole assignment, we have understand that marketing mix of Mill. We also have to know that how important this marketing mix strategy for the Mill.

By using this strategy, Mill have been successfully become the popular product around the world. By summary this whole assignment, we only can provide some of the view which are the research that we done. Firstly, Mill have to provide different type of package , features and so on in the product strategy. Mill should do more practices on that strategy to improve product image to the customer. Mill can put in more heath ingredient or different it with other competitor similar product .

In the pricing strategy , Mill have to estimated demand , cost and profit and it is important for Mill to know the corresponding cost for each product price. So they need to estimate the profit that they will earn and after that would determine level of price and how much market share they will get. Besides that, the competitor also will influence the pricing strategy. If Mill introduces a price of competitor product that same with competitor the price will restricted and close to the , unless Mill can differentiated and convince consumer.

Place strategy relates to decision about the storing and transporting of products and also about selecting product channel of distribution. These function (e channel have their own function such as transactional function (contacting , promotion , negotiating and risk aging),logistical function (physically distributing , storing and sorting) and facilitating function ( researching , financing ) Promotional strategy is a plan of optimal use of the elements of promotions that is used by Nestle to promote Mill.

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