Marketing Environment of Nestle-Free-Samples-Myassignmenthelp.com

Question: Write a report on Marketing in an International Environment. Answer: Introduction Marketing is an important element for every organisation which enhances the chances of survival and growth of the business. Market analysis is an important aspect which helps in the analysis of the different factors present in the business environment along with their impact on the performance of the business. Different strategies are being adopted by the companies for promoting its products and services. This report covers the discussion of the background of the company, analysis of the micro and macro factors of the business environment and competitor analysis. Recommendations will be made for providing suggestions for enhancing the brand image and promoting the products offered. Background of the company For the purpose of discussing the different aspects of this report, an organisation has been selected. Name of the organisation is Nestle which is operating in the Food processing industry. Nestle was founded by Henri Nestle in the year 1866. Its headquarter is located in Vevey, Vaud, Switzerland and is engaged in providing quality services all around the globe. According to the data collected in the year 2016, it has a strong employee base of around 335,000 employees. Profit of Nestle in the year 2016 was CHF8.88 billion. Nestle is financially stable and this has helped in execution of its operations in an effective manner. Nestle is one of the largest food and beverage company which is having more than 2000 brands. It is operating in more than 191 countries all around the globe. It is offering different products to its customers for matching with their expectations and dealing with the competitors. For gaining a competitive advantage over its competitors, it has used innovative tec hnology including digital innovation. It has centralised expertise in system technology with a motive to bring the technology together for combining products and machines. These products include coffee, dairy products, breakfast cereals, bottled water, baby food, pet food, ice creams, confectionery, baked food, healthcare nutrition, infant food and yoghurt. Nestle is operating in different markets effectively and has established strong relationship with its retailers. It has effectively utilised research and development capabilities for the success and growth of the business. It holds large amount of market share which acts as its strength. There are few weaknesses of Nestle which can affect its growth. It is dependent on the sales of few well-recognised brands. Nestle is dependent on the advertisement which has increased its cost (Nestle, 2017). The purpose of Nestle is to enhance the quality of life of the customers and ensuring a healthy future for the society. Nestle is focusing on meeting the responsibilities towards the society for enhancing the quality of life of the society. Different strategies have been adopted by Nestle for promoting the products and services offered by it. Nestle is coping with the changing business environment so as to deal with changes taking place in the business environment. Its strategy is to provide quality products and meeting the expectations of the customers. It is planning to expand the area of operation it is adopting different marketing strategies for promoting the product in new markets and grabbing the opportunities available. It has effectively and efficiently utilised the resources available with it for enhancing its performance and providing quality products to the customers. It is planning to promote its product KitKat in the York market a city of England for expansion of the are a of operation and enhancing its customer base. The analysis will be done in the market of York for enhancing the image of the brand by promoting the products offered (Nestle, 2017). Figure 1: Marketing Source: (Docur8ed, 2016) Market selection PESTLE analysis Factors Analysis Political factors Political factors of different countries are different which can affect the performance of the company. KitKat is a product which is offered all around the world. Change in the political factors of the York can affect the growth of the company. Nestle is operating from a very long period and has established a healthy relationship with the political parties. Eyebrows have been raised in few countries which have affected the performance of the company (Haseeb, 2017). Economic factors Economic factors include tax rates, inflation rates, wage rates and interest rates which can affect the sales of the company. The increase in the interest rates can affect the borrowing capacity of the company. If the wage rates increases then this will increase the production cost of the KitKat. Fall in the income level of the people will result in fall in the purchasing power of the company. This will result in fall in the sales of the KitKat. Social factors Demand, taste and preference of the customers are changing due to which demand of the products get affected. In this changing environment, customers are more concerned for their health and the ingredients used in the product. Nestle need to consider the taste, preference and concern of the customers so as to enhance the sales of the company. The quality of the products affects the demand for the products. KitKat is a reasonable product is acting as an advantage and attracting the customers towards it (Nestle, 2008). Technological factors Change in the technology used for the production of products also creates an impact on the production cost of the company as well as the time involved in the production of the products. The demand of KitKat is growing and for the purpose of meeting the growing demand, there is a need to use technology for enhancing the productivity of the company and meeting the demand of KitKat. Legal factors For the health and safety of public, laws, rules and regulations are changing. These changes in the rules and regulations are affecting the manner in which companies are operating within the boundary of a nation. Rules and regulations are formulated for the safety of the customers as well as for the employees which must be complied by Nestle (ICMAI, 2012). Environmental factors Companies must follow rules and regulations for the safety of the environment formulated in England. Nestle has stopped using plastic for packaging of KitKat so as to protect the environment for pollution. SWOT analysis Strengths Weaknesses Nestle is a well-established company which is having strong employee base. Its products are reasonable which attracts the customers. It has gained a competitive advantage over its competitors due to its pricing policies and availability. It is having a financial stability which has helped Nestle in coping with the economic changes in the nation (Soni, 2010). Nestle can enhance the quality of its product KitKat for meeting the needs of the health conscious customers. There is no special feature available in KitKat which acts as a weakness. Flavour of KitKat is same for every season and this flavour can be changed according to the season. Nestle has not changed the packaging of KitKat (Corona, 2014). Opportunities Threats KitKat can expand the area of operations so as to enhance its customer base. KitKat can be offered in different flavours for attracting customers. Nestle can offer KitKat for different occasions for attracting the customers as it can be used as a substitute for sweets (Soni, 2010). Competition is increasing and various companies are offering products on same rates. Change in the economic condition can affect the production cost and profitability of the business. Recent issues related to other products of Nestle can affect the sales of KitKat (Hershey Co. Marketing Team, 2014). Target market or Market Segmentation Nestle has targeted York market so as to promote KitKat and enhance the sales of KitKat. Segmenting must be done in an effective manner as it creates an impact on the sales and profitability of the company. For promoting sales of KitKat, Nestle is segmenting the market on the basis of economic criteria, behavioural criteria, demographic criteria and social criteria. KitKat has been reasonably priced so as to attract the customers. KitKat is light and can be consumed by the customers as snacks. This feature of the product has helped in attracting the customers. Another criterion is demographic criteria and KitKat is a light product which is suitable for people belonging from different age groups. People are focused on quality of the products offered and their lifestyle also affects the choice of product (Agante, 2013). Competitor analysis Market share: The market share of KitKat in different nations is increasing due to the availability as well as the affordable price of the product. KitKat is in the market for a very long period which provided a competitive advantage to Nestle and contributed towards the increase in the sales of the company. For coping with the increasing competition, it has adopted a reasonable pricing policy and wide availability. These aspects have resulted in a rise in the sales of the product (Ahmed, 2015).Positioning: Nestle has made KitKat available at different places such as supermarkets, departmental stores and local stores so as to expand the reach of the product. This wide availability has enhanced the sales of KitKat Marketing mix: elements of the marketing mix are discussed below: Product: Nestle is offering KitKat in different sizes so as to suits to the requirement of the customers. KitKat is widely recognised in the different markets due to availability in different sizes. This step has been taken by Nestle with a motive to convince the customers of different income group and age group (Schneiderova, et. al., 2010). Price:KitKat is affordably priced which has acted as an advantage for it and helped in attracting the customers of different income level (Presswire, 2011). Place: Nestle has made KitKat available at different places for ensuring that customers can consume their product. This ease of the availability of the product has encouraged customers for purchasing KitKat. Promotion: KitKat has been promoted on social media platforms as well as advertisements (Bhasin, 2016). Marketing strategies: Nestle has used different marketing strategies for the promotion of its popular product KitKat. It has adopted social media marketing strategy, pricing strategy, market segmentation strategy and target strategy. For the promotion of KitKat and interacting with the customers in a better manner, Nestle has used social media platforms (Anon, 2012). These social media platforms have helped in covering a large area at a minimal cost which has reduced the cost and efforts of Nestle for the promotion of KitKat. Nestle has divided the market into different on the basis of economic, behavioural, demographic and social aspects. All these aspects have helped in enhancing the reputation among the customers and gaining their attention (Presswire, 2015). KitKat is an affordable product which is being preferred by people of different income level. For the purpose of targeting the customers of different places, same messages are being used so as to attract the customers. These same messages have used for encouraging undifferentiated marketing strategy for attracting the customers (Kamath, 2016). Conclusion Thus, it can be concluded from the above discussion that Nestle is performing well and one of its popular product KitKat is doing well in the different markets. For the purpose of analysis of the impact of macro factors on the company and product offered by it, PESTLE analysis has been done. SWOT analysis for the product KitKat is done so as to analyse the strengths and weaknesses of the products and various opportunities available to it and threats which can adversely affect the performance of KitKat. Competitor analysis has been done for analysing the market share of KitKat, the basis of segmentation and positioning of the product in the market. Marketing strategies are adopted by the company for the promotion of the product offered. Nestle has adopted different marketing strategies for its popular product KitKat. These marketing strategies include social media platform marketing strategy, market segmentation strategy and target strategy. Recommendations Thus, from the above discussion, few recommendations can be provided to Nestle for the promotion of KitKat as well as enhancing the sales of KitKat. These recommendations are mentioned below: KitKat can be offered for different occasions and different packaging for enhancing the performance by attracting the customers. People prefer these attractive packages for special occasions. Nestle can offer KitKat in different flavours as it will encourage customers for purchasing the product. Feedbacks can be taken from the different customers regarding the new flavours offered by Nestle to its customers. These feedbacks can be used for implementing changes as per the needs and taste of the customers. References Agante, L., 2013, A Marketing Strategy for Gelados Nestl based on the Young Adults, School of Business and Economics. Ahmed, S. S. S., 2015, Competitors Analysis And Financial Analysis Of Maximus Mobile, BRAC University. 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