Analyzing The Buying Behavior Of Potential Customers For Nestle Company’s Pure Water Product In Australia

Situational analysis

In this report, internal and external analysis has been made to evaluate the business functioning of the organization. In this report, Nestle Company has been taken into consideration.  In Australia, Nestle Company has been planning to increase to its overall sales and turnover with the increased growth rate with a view to increase its overall profit. This company is at its growth stage and introducing various products in market to increase its overall turnover.

Nestle Company is a Swiss multinational transactional food and drink company having headquartered in Vevey, Switzerland. It is the largest food company in world measured by revenue and other metrics. This company sells more than 2000 products brands under its FMCG business sectors (Baden-Fuller and Mangematin, 2013).

The current promotional programs of company mainly focus on using seminars and other sales plan methods to promote its products. However, in order to increase the pure water products sales by Nestle Company, it would focus on using cyber computing enterprises resources planning and online promotional of its products.

This Nestle Company has international brand image and has been selling more than 2000 brands under its FMCG business group.  Nestle Company has focused on creating cost leadership strategy in its business to increase its pure water products sales in market.

The main purpose of this analysis is to identify all the external factors of the Nestle Company while selling pure water products in Australia (Conway, 2013).

Political and legal factors

In Australia, there is very high level of tariff and traits which could increase the overall cost of its products in market. However, the political condition of the Australian market is stable which could be considered by Nestle Company while preparing its marketing plan.

Economic factors

As per the records, stated by Reserve Banks of Australia, the GDP of Australia is 49,927.82 USD ‎ (2016) which is 20% higher as compared to last five year data. This has shown that purchasing power of the clients in Australia is higher which would increase the demand of pure water (Boshyk, 2016).

Social factors

These factors reflect the perception, values, belief and other social factors of people in Australia. It is considered that people in Australia are more inclined towards the best quality of products in market.  In Australia, people are more interested to buy pure water which has zero level of chemicals and accompanied with high quality of contents.

Company analysis

Technological factors

It is considered that advanced technologies and introducing bacteria free packaging significant advanced packaging feature. This will attract high number of client’s inclination and will increase the overall sales of company. In addition to this, Nestle Company has also been using social media and cyber computing enterprises resources planning in its business to increase its overall outcomes (Bellamy, Chilvers and Vaughan, 2016).

Cultural factors

The Australian culture and people behaviour is ramified changing throughout the time. However, people in Australia are more inclined towards the best quality of products in market and advanced technologies.  However, product like, pure water will satisfy all the needs and wants of clients in Australia (Finch, 2016).

There are several rivals in the market who have high have been offering water products in market. However, the main competitor of Nestle Company would be AU seller who has been selling Water bottle and covers at least 17% market share in Australian market. Nonetheless, there are several rivals who are the major competitors of the Nestle Company.

Brand	Comments
Mount Everest Water	It is recognized brand which sells its water bottles to its clients. However, it has created strong brand image in market.
Kinley product	It is supervised under the Coca-Cola company. However, this company mainly focus on selling water bottles in Australia.
Aquafina product	It is brand of purified bottled water products produced by PepsiCo and covered at least 9% market share in Australia.

It is considered that pure water is convenience products which covers mass market share. However, the main target market for the Nestle Company is corporate, schools and hospitals where people do not compromise with the water quality content. However, company could sell bulk of its products to its clients with a view to increase its overall turnover through its cyber computing system.  In addition to this, company could keep its price as low as its other rivals in market to increase its overall sales and grasping more clients (Goi, 2015).

Strength

• Having strong brand image.
• Strong communication channel through its effective business chain system around the globe.
• Innovative and creative business plans accompanied with the highly experienced staff members
• Focus on selling advanced products and services in market which are high in demand.
• This Pure water product will be high in demand due to its less cost and high level of quality offered by Nestle Company (Blank, 2013).

Weakness

Nestle Company will have high cost of production of its pure water product due to its complex business functioning. In addition to this, there is high compliance program related to water product which needs to be followed by Nestle Company. In addition to this, there are several persons who would fill case against Nestle Company related to its pure water product.

Opportunity

It has strong brand image and due to high demand of water product in Australia, company could easily grasp more clients in market. In addition to this, water bottle sell in Australia is high in demand and company by following cost leadership and product differentiation strategy could easily increase its overall market share and turnover. Experienced staff indulged in the production of pure water will also increase the overall quality of the products.

Review of current promotional programs

Threats

 The main threat which Nestle Company would face is related to new entrants in market. In addition to this, Nestle Company could also face possible losses which may arise due to changes in policies and measures of government. In addition to this, other rivals may also showcase big amount of challenge to company if they use advanced technologies in their water bottle products (Johnston and Bate, 2013).

There are several benefits which Nestle Company would have while introducing pure water product in Australian market.

• It will increase the overall turnover of Nestle Company by very drastic amount.
• Company could focus on cost leadership and product differentiation strategy to increase its overall profit.
• Nestle Company has strong brand image and by installing cyber computing system enterprises resources planning, would also increase the online marketing business.

Objectives 

Marketing objective of Nestle Company

• To educate the Australian market on the health benefits of using pure water products.
• It increases the immune system if people drink purified water from Nestle Company.
• To raise the awareness of purified drinking water in Australia.

Sales objective

• To increase the market share by 30% in Australian purified water sell.
• To sell at least 15,00,000 units each and every years

Communication objectives

• It will increase the overall outcomes of the business units by establishment of effective communication chain.
• Experts IT staffs will be hired to make effective changes in business of Nestle Company
• To target the possible clients in market through its online and offline marketing channel (Boyd, et al. 2016.).

Geographic

In order to sell its pure water product in Australia, Nestle Company would focus on the people living in the metro cities in Australia which are flooded with highly advanced people. This area will have high demand of the pure water product which will help Nestle Company to increase its overall turnover of the market (Mohd, Idris and Momani, 2013).

Demographics

The main target markets of pure water are:

• Corporate going people and employees who are inclined towards drinking purified water.
• Student, young people and people who likes to maintain high standards of living.
• Main focus of selling pure water bottle near to desert areas.

Psychographics

This product is aimed to increase the strength the immune system and increase the overall quality of waters. This pure water helps in preventing bacteria, germs and other detrimental factors in water and provides purified water to each and every one in Australia (Brooks, Heffner and Henderson, 2014).

Positioning

Positioning of Pure water introduced by Nestle Company has been developed through its cyber computing enterprises resources planning and use of quality products in market.  Company has created strong brand image by offering best quality products in market (Rashid, and Ghose, 2015). 

Product

The main product of Nestle Company has planned to introduce pure water product in market to increase its overall sales.  This pure water is accompanied with the several contents which will help people to strengthen their immune system. In addition to this, people will also get purified water at reasonable price. This pure water product introduced by Nestle Company is 100 % natural has zero detrimental impact on human health and accompanied with great taste and not made of concentrate factors.

Price

Nestle Company has planned to introduce pure water product in market at least cost price to cover more market share. This cost leadership strategy will help in covering high market share and price of the each pure water bottle will be AUD$ .50. This is the least price for the purified water bottle which will attract people to drink purified water in place of normal water.  However, this industry is more characteristics by price factors and organization selling products at least price is more prominent to win the market. The demand of pure water product is more elastic.

Brand image of Nestle Company

Price	Objective	Reason
It will be set between $.30-$.50	Cost leadership strategy	It will increase the overall sales of the company.
It will be set between $.50 to $ to .80	Product differentiation strategy	It will create effective brand image in this business segment.
It will be set more than $ 1	High quality product	It will result to covering more market share.
It will be set between .80 to 1	Competition to group rivals in same segment.	It will build strong competition in market.

Place

Nestle Company has planned to cover all the cities of Australian market for selling all pure water products. Nestle Company could consider using offline and online marketing channel to sell its products in market (Bryman and Bell, 2015).

Promotion

Nestle Company will use cyber computing system, seminars and survey methods to promote its newly introduced pure water product in market. However, in order to attract more clients in Australia, company could use meeting and observation methods in offices and schools to increase its overall turnover throughout the time (Schmidt, Spann and Zeithammer, 2014).

Social media

Nestle Company could easily use Facebook, Twitter and other social media app to make online advertisement of offered newly advanced pure water product. This social media is the best option to spread the awareness of the offered product in market.

Public relation events

These are the best options which could be used by Nestle Company to increase the awareness of the purified water bottle in market. These public relation events could be operated in summer camp, seminars and other social programs.

It is the amount of estimation of expenses which would be incurred while marketing the new products in market. This budget will help management department to determine the future cash inflow and outflow from the business while introducing new pure water product in market (Siguaw and Simpson, 2015).

Budget for the 2017 for introducing new pure water by Nestle Company

Nestle Company
Profit and Loss Statement
For the Period ended Year One
Income
	Sales	52000	( 1,000 pure water  units @ $ 52 each)
	Total Sales	52000
Cost of Goods Sold
	Opening Stock	$                –
	Stock Purchases	34320
	Less Closing Stock	3120
Total Cost of Goods Sold(COGS)		31200	( See note below)
Gross Profit		20800
Expenses
	Social media, print coins	500
	Bank Service Charges	120
	Insurance	500
	Payroll	13000
	Professional Fees (Legal, Accounting)	200
	Utilities & Telephone	800
	Marketing expenses	480
	Expenses total	15600
Net Profit before Tax		5200
Note; Cost of Goods Sold calculation:
Nestle Company
Opening Stock                                                        Nil
Add Stock Purchased during the year		$34,320	(1100 units @ 31.20 each)
Equals Stock available to sell		$34,320
Less Stock on hand at end of year		$3,120	(100 Units @ 31.20 each)
Cost of Goods Sold		$31,200

(Fernandes, Ferreira and Moura, 2016).

Description	Details	No of days	Predecessor
1	Financial management	3
2	Business activities	2
3	Hiring of employees	9	2
4	Investment appraisal	11	1
5	Sales marketing plan	18	3
6	Implementation of sales marketing plan	16	4
7	Marketing plan sales team program	09	2

It is evaluated that if Nestle Company could follow proper strategic plan and cover all of its activities within the prepared action plan then it could easily increase the overall turnover of its pure water sell in market. However, all the marketing and campaign and other plans and objectives should be tested before its implementation (Solomon, 2014).

All the sales team indulged in marketing plan of Nestle Company to sell pure water product would test all the pre-conditions and all programs before implementing plan in market. This pre-test would be used to test all the internal and external business programs before implementing this marketing plan in market (Crane and Matten, 2016). 

It is evaluated that management department and concerned department will continuously monitor all the Medias and tools for more effectiveness of the marketing activities. Focused group and marketing sales persons would indulge in testing all the positive and negative impact of the marketing sales plan on the sales or turnover of the company.

Environmental analysis

Conclusion 

This report has reflected the proposed marketing plan of the Nestle Company for selling its new pure product in market. The main market segment for the company is to cover people indulged in buying purified to increase in demand and high growth of this water selling business. However, in the end, it is recommended in the end that Nestle Company needs to evaluate all the internal and external factors of business and should make possible changes in its marketing plan to increase the overall sales of its pure water product.

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