PLACE MARKING RUBRIC HERE
Opportunity Analysis for
MKT103 – Introduction to Marketing
Overview of plan including objective
Summary of Marketplace Environment
The market place environment is affected by a number of things that include the social political and legal factors. Penetrating into the market easily needs that a company develops a strategy that can easily counter all this forces. Without a proper strategy it can hard or even impossible to deal with these challenges.
Target Market and positioning
The target market that company is looking to venture in is the Suburban population. It is quite important to note that the Suburban promise to provide a wide accessible market that has never been taped into. With the people having some capital to spend it would be very easy to tap into this market and reposition the company.
Benefit to the company.
The company will get a chance to reposition itself in the world market. This means that it will be able to increase its profits and sty on the edge. The biggest advantages is that the company will be able to increase and offer competition to its competitors.
Executive Summary 4
Introduction and Company Background 6
Situation Analysis 7
Market Analysis 7
Environmental Analysis 7
Political Analysis 7
Economic Analysis 7
Social Analysis 8
Technological Analysis 8
Legal Analysis 8
Company Analysis 8
Competitor Analysis 9
Consumer Analysis 11
Marketing Objectives 11
Target Market & Positioning 12
Positioning Strategy 12
Conclusions and Recommendations..14
Reference List 15
Introduction and Company Background
While designing a good marketing plan it is always easy to think that the plan can simply please anyone but this is never the case. Though it is hard to get one secret to success, but the surest secret to failure is trying to impress everyone. This marketing plan is not simply directed at making everyone happy but at least reach a targeted population. The plan is also keen to ensure that the products suite the market. The most important part of this plan is that it is keen to ensure that accountability and responsibility are the major focus in the running of the plan.
Nestle Chocolate is amongst the leading Nutrition and wellness company. It has its headquarters in Switzerland. The company is famous for making some of the best nutrition supplements in the world. Its products are not only meant for the European markets but have been able to spread all over the world.
History of the company
The company stated way back inthe year 1867. The founder Henri Nestle saw the need to provide a nutrient supplement to mothers that could not breastfeed their children. He thought of a product that can be healthy and affordable as an alternative to babies that could not breastfeed from their mothers. Within a few years the company had developed and marketed its product all-over Europe. It is in 1874 that it launched it condensed milk, a product that was supposed to content with the Anglo-Swiss company. In the year 1905 the two companies merged. By the 1920s Nestle had developed to be able to make chocolate and powdered beverages. The following years saw a lot of developments in nestle line of products. The world wars was turf time for the company but after the war the company shaped its products and even merged with companies such as Alimentana S.A. from the 1980 to the 2000 the country has been in the verge of developing and getting more profits(http://www.nestle-ea.com, 2015).
Indicate what is happening in the marketplace
The improvement and the increased appetite for Nutrition supplement and chocolate products have pushed many other companies into the production of more competitive products. Today Nestle chocolate faces stiff completion from other companies that produce same product as it does. This has forced it to advance their products and look for the solution to the increasing competition. Despite manyefforts to overcome this challenge the problem still remains elusive. Some of its current competitors include Haigh’s, Zokoko,Tava, Kennedy Williams Chocolates. Many people seem to prefer the products from this other companies since they look relatively cheaper than those from Nestle.
Macro Environment Analysis
Government policies on the use of chocolate products, the use of chocolate products is under scrutiny due to the fear that the high sugar level in chocolate products affects people and increases the prevalence of diseases among citizens(Markedbyteachers.com, 2015).
Governmental pricing policies; the pricing policies have a negative effect on the production of chocolate products. There has been uproar that the biggest chocolate product producers are inflating the prices(Allen, 2015).
Taxes on chocolate products:the increase in the taxes can rip of the citizen the opportunity to buy the products and thus it market availability.
The change in the economies of the world. For instance the transformation of china from an isolated economy to a global economy presents a wide market for entrance of new companies. The chocolate makers can thus venture into this market(Allen, 2015).
World pricing trend of coffee products also affect the trend in the local market a factor that affects the pricing of chocolate from nestle(Allen, 2015).
Shifting economic trends in the world for instance inflation has a great effect on people’s ability to purchase products and this has an effect on the market in general.
Variations in culture; It is evident that various cultures have reservation on the use of chocolate. For instance the people in western China have their own evolution they have their own reservation on food. This effects the penetration of chocolate products into such a market.
Health consideration on the use of chocolate products is also a factor that can affect the market position of Nestle. Over the years there has been rising consideration on the effect of using foods that have a high content of sugar. These foods are thought to be the major cause of some of the illness people get(Allen, 2015).
The economic status of the people is also factors that affect the marketplace of the company. While people crumple with various taxes and payments there is a possibility of them cutting down on using such products since they might seem only as luxuries?
Technology transfer; there can also be the problem of moving or exchanging technology from one region to another. This can greatly influence the marketplace of the company.
Willingness to transfer the technology by the company is another player in the market place. If the companies can be ready to transfers the technology then they can easily penetrate into the market place but if they are not ready then it might be hard to venture into the marketplace('Consumer markets', 2015).
Various in patent laws can also affect the market place of the country. While some countries might have strict and stringent rules other might have easy to tackle rules.
Micro Environment Analysis
What are 3 major positives regarding the company/brand.
Nestle chocolate is one of the leading companies in the production of chocolate products in Australia and even the world all-over.
Nestle is constantly piling pressure on both legally and politically to make sore that it penetrates more into the market place.
Quality service delivery is another positive aspect that keeps the company on the leading edge.
What are 3 major negatives regarding the company/brand
High price. The fact that the company has a high dominance in the marketplace makes it to set it prices so how. This is quite a weakness to it as other company may take this and use it to overturn the companies development
Poor market penetration strategy. The company lacks the right strategies that can enhance its penetration into the market.
Low customer satisfaction; as the company strives to increase its proceeds one of the challenges it is facing is the lack of strategies to increase customer satisfaction.
It is quite evident that the company has an edge over the other companies in some areas but there are still a number of areas that it is still larking behind. It is then important that the company sets up strategies that can ensure that it increases its penetration into the market.
Direct competitors are those companies that provide the same type of products and services that Nestle provides. The names of the products might differ but there is a similarity in products since they serve the same population. Some of the direct competitors of Nestle include Mars, Hersey, Tava, Kennedy & Williamson, and Zokoko. Most of this companies provide exactly the same products as Nestle produce especially coffee products. However there are a number of points of differences as some of this companies produce good that are so varied and different from Nestle.
Competitive market Summary
Nestle has been leading in the production of chocolate over the years. The major target markets for the company are the developing cities in Australia.As such the company has to strive to develop products that meet the needs of these people. The primary purchase of the chocolate products is the young and the youth in the Urban and suburban.
The product that is purchased at a high rate from the company is chokito and Bertie Beetle. Though the company produces other products such as Nestlé Alpine White Nestlé with Almonds among others the largest sale in the company are chocolate products.
Other nutrition products also sale well in the company, but it is important to note that the most of the people purchase Chocolate products
This people buy this product at any time of the day. Most often sales of the product rise during the summer. Most customers buy nestle chocolate for the sole reason of eating. They often shop for this product to enjoy as individuals or as a group during function such as parties.
It is thus evident that the largest market for Nestle chocolate is the youth and the children.
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The objective of the marketing strategy is to make this Nestle products find a place in the developing cities. There is a wide market in the nations and this can provide a good ground for the company to venture in.
Increase the profits of the company and set it at the top of the competitors. This arises from the fact that the current market is flooded and that the new markets are a good source of customers. As well basing on the opportunities in these markets. It might be worth it to venture in it.
Target Market & Positioning
Selection of Target Market
The target market for the company could be the developing cities in Australia. It is evident that the upcoming economies like china provide a good market to venture in on the global platforms. Apart from such upcoming economies many of the nations in Africa that are still developing can provide great markets for the company. If the company can just develop good strategies to venture into this market then there is a possibility for a lot of development. The fact that the cities are developing means that many of its citizens are in demand for new products and at the same time they have some capital to spend. It is thus clear that these could be the best market fr the company to venture into.
In this case the positioning strategy that I opt to use is the pricing strategy. In this case it is evident that the competitor are using price to make sure that they pull down nestle. It is thus important for the company to also design a strategy that can counter the competitors. Reducing the prices can put the company on the edge. It is clear that already the company has a reputable name all over the world. In this case if it can simply adjust its pricing then it can be able to overshadow the competitors
Improving the quality of service delivery is the key factor in promoting the delivery and repositioning the company in the market place. While it has emerged that Nestle is a leading company in the world it is still clear that some other companies are taking edge over it due to the delivery of better service. The major objective of the repositioning is to ensure that it sets the company into the global scale by increasing the delivery of services to the clients. The company should make sure that the customer experience is enhanced. That is the customers get value for their money.
Conclusions and Recommendations
It is quite clear that repositioning the company and making it the leaders in the market place is not just an easy thing. There are many factors that affect the market place the company needs to be aware of. Dealing with these factors is the first step toward repositioning the company in the global market place. The repositioning plan is aimed at changing the fortune of the company and keeping it on the leading edge for the longest time possible.
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Austrade.gov.au,. (2015). Nestlé celebrates a century of success in Australia - Investment success story - Austrade - Austrade. Retrieved 18 April 2015, from https://www.austrade.gov.au/About-Austrade/News/Success-Stories/Nestle- celebrates-a- century-of-success-in-Australia
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Markedbyteachers.com,. (2015). Political decisions can affect Nestle for the good and the bad, because if taxes increase, therefore consumers decrease and sales of stock decrease. However if taxes decrease the likelihood is that consumers will buy more. - GCSE Business Studies - Marked by Teachers.com. Retrieved from http://www.markedbyteachers.com/gcse/business-studies/political-decisions-can-affect- nestle-for-the-good-and-the-bad-because-if-taxes-increase-therefore-consumers- decrease-and-sales-of-stock-decrease-however-if-taxes-decrease-the-likelihood-is- that-consumers-will-buy-more.html
Plan, N. (2015).Nestle Marketing Plan. Academia.edu. Retrieved 2015, from http://www.academia.edu/4113679/Nestle_Marketing_Plan
Slideshare.net,. (2015). Economic analysis of cadbury& nestle. Retrieved l 2015, from http://www.slideshare.net/tayyabaways/economic-analysis-of-cadbury- nestle