Marketing Environment Analysis
Nestle is considered as the biggest Swiss Transnational organization. Headquarter is situated in Vevey, Vaud, Switzerland. It has been examined that the company manages the products in foods and drinks sector and the large market share is grabbed. There are more than 33,000 workers, who are managing the operations of Nestle. The company was established in 1905 when the merger took with the Anglo-Swiss Milk Company (Nestle, 2013).
The product selected for the task is named by “FROST”. It is a fruit drink that consists of four flavors such as KIWI, Strawberry and pomegranate. The product will be launched with the 4 flavors in the size of 250 ML. In the fruit drink, there will be no preservative and the packaging will be of blue color.
- Strength
Nestle is one of the leading company in the food and beverage sector. To be one of the leaders in the market, the company focuses on maintaining a hold in the food and beverages sector. It is examined that if FROST is introduced in the market, then it would be easy to attain a large market share in the market. The major strengths are:
- The diverse range of products: by having the diversified products range, it could be easy for the company to maintain the need of the buyers in different regions. This will help in boosting the company image and also assist in maintaining a large customer base (Kotler & Armstrong, 2015). In reference to the FROST product, it is seen that the product variety will be boosted with the launch of the product in the market.
- Research and development: The Company is focusing on emerging new products according to the need of the customers. It is examined that by accessing the requirement of the customers, FROST is one of the best product that will be launched in the market.
- Renowned brand: It is examined that Nestle is one of the popular brands that will help to compete with the competitors present in the market (Hunt, 2014).
Weakness
- Quality: it has been observed that the company is not able to maintain its quality in and out of the Australian market. The company is also recalling its product line so that growth can be attained in the market.
- Cost of advertisement: the company maintains customer awareness through considering the advertising strategies, but it sometimes also lead to a high rate in the overall cost. The company has to incur the huge cost at the time of introducing the products in the market (Crane, Palazzo, Spence &Matten, 2014).
Opportunities
- The demand for healthy foods: the company should focus on health and food sector so that it would be easy to ensure the overall quality of the products in relation to the healthy foods. The company can fulfill the demand of healthy products by introducing the FROST product in the market.
- New channels: the company has emphasized on the different channels, which has boosted the interaction with the customers in the competitive market. Nestle has the opportunity to grab the large market share by emphasizing on creating the new channel of distribution and communication with the customers (Lusch &Vargo, 2014).
Threats
It is analyzed that there are many competitors present in the market such as Coles and Aldi. This is one of the threats for the company in relation to achieving success in the highly competitive market. The next threat is also related to the cost of raw materials in which the production cost is enhancing (Payaud, 2014).
Political factor
It is examined that there are many factors that impact the operations of the company. In relation to the political aspect, laws, and regulations is one of the aspects that are considered by the company before introducing the products in the market. Nestle has to emphasize the safety requirement in the food and nutrition sector according to ISO 9002 and HACCP (Lütkenhaus & de Freitas, 2016).
Economic factors
The demand of the customers has impacted the demand for the products in relation to the spending power of the customers. The rise in the market economies has boosted the buying power and also the economies of scales. The leverage in the research and development capability has also affected the competitive advantage of the company. By maintaining the activities in more than 100 countries, the emphasis is on addressing the impact of the foreign currency fluctuations in export and import (Kotler, Burton, Deans, Brown & Armstrong, 2015).
Market Segmentation
Social factors
To maintain its brand image, the company emphasizes on the huge spending in the competitive sectors and boosts the product desirability. The competitive advantage in this sector needs continuous research and also development which can lead to the introduction of the FROST in the market.
Technological factors
To boost its capability, the company is emphasizing on research and development process, which also enables in maintaining differentiation in the market. The company has to experience the challenges in relation to quality control. So, when the FROST product is introduced in the market, it is important to maintain the quality of the products with the use of latest technology.
Environmental factors
Nestle is also engaged in the different programs that focus on maintaining the eco- friendly environment. But sometimes the company has also been criticized because of the weak approach considered to manage the operations. By introducing the FROST product, it is necessary to consider the eco-friendly approach to promote promoting the services provided to the customers (Moura, Branco &Camoesas, 2015).
Legal factor
It is analyzed that Nestle has endowed the legal capabilities which are important to be considered. Also, mergers and acquisition have enabled the company to diversify at the time of new entry of the products. So, it is important for the company to focus on these factors at the time of entering into the Australian market and also at the time of introducing FROST in the highly competitive market (Krafft, Goetz, Mantrala, Sotgiu &Tillmanns, 2015).
The customers of the urban areas will be targeted. It is examined that Nestle has effective distribution channel that could assist the company in purchasing products. The product should be offered in hypermarkets like Aldi and also in the supermarkets like Seven Eleven. The local outlets and cafes will be the target for the product. Also, it is important to ensure that the drink is supplied in the sports events so that the demand for the products can be boosted.
The target audience of the product should be from 15 to 54 so that it could be easy to promote the product effectively. To attract the youngsters, towards the products it is important to distribute the free samples in the events. It will help to boost the demand for the products and also will maintain a large customer base (Saluja &Mahajan, 2017).
This product will be more preferred by the youngsters or by the people who take precaution to maintain their health. It is seen that in the present scenario, the demand for the healthy product is enhancing so that customers will prefer FROST which will be introduced by the Nestle Company.
Target Marketing and Positioning Strategies
Nestle focuses on maintaining the lifestyle of the people by offering them quality products in the market. The company market itself as a healthy product offered in the market. In relation to this product, the company will emphasize on keeping the people healthy and energetic by introducing the fruit drink in the market (Dunning, 2014).
The targeting strategy that should be considered by the company is to offer the products in the gym and also in the sports events so that individuals can gain energy after consuming it. The energy drink will focus on the youth and adults of the Australian market, as it has been seen that the customer base is large of energy drinks in Australia. To position the product the company should consider distribution and social media marketing as it will help in boosting the demand for the product (Patrizia &Gianluca, 2013).
Conclusion
Therefore, it is concluded that the company should introduce the FROST product in the Australian market, as there are a majority of the people who are health conscious. It has also been seen that the population of the Australian is more than 2, 30,000 and approximately there are 89% of individuals who are living in the urban areas. So, this market is selected to position the product. It is necessary for the company to consider these marketing environmental factors before introducing the product in the market, as it can help in boosting the demand for the product in the highly competitive market. The company should target adults and youngsters so that it could be easy to maintain its competitive advantage in the market. So, it can be concluded that the company should focus on introducing the product in the Australian market as it could be boost the product demand in the market and also it will help in maintaining the large market share.
References
Crane, A., Palazzo, G., Spence, L. J., &Matten, D. (2014). Contesting the value of “creating shared value”. California management review, 56(2), 130-153.
Dunning, J. H. (2014). The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.
Hunt, S. D. (2014). Marketing theory: foundations, controversy, strategy, and resource-advantage theory. Routledge.
Kotler, P., & Armstrong, G. (2015). Principles of Marketing-Global Edition. Pearson.
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015). Marketing. Pearson Higher Education AU.
Krafft, M., Goetz, O., Mantrala, M., Sotgiu, F., &Tillmanns, S. (2015). The evolution of marketing channel research domains and methodologies: an integrative review and future directions. Journal of Retailing, 91(4), 569-585.
Lusch, R. F., &Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog, debate, and directions. Routledge.
Lütkenhaus, D., & de Freitas, M. N. (2016). Strategic management applied to the Six-Sigma suitability appraisal for R&D in FMCG companies. RevistaiPecege, 2(1), 80-99.
Moura, A., Branco, M., &Camoesas, M. (2015, June).NESTLÉ, A global firm and its customer relationships.In IMC 2015 International Management Conference 26th June 2015 (p. 96).
Nestle, M. (2013). Food politics: How the food industry influences nutrition and health (Vol. 3). Univ of California Press.
Patrizia, G., &Gianluca, C. (2013).Stakeholder engagement between managerial action and communication. Annals of the University of Oradea, Economic Science Series, 22(2), 97-105.
Payaud, M. A. (2014). Marketing strategies at the bottom of the pyramid: Examples from Nestle, Danone, and Procter & Gamble. Global Business and Organizational Excellence, 33(2), 51-63.
Saluja, N., &Mahajan, V. (2017). Profitability, Efficiency and Risk Analysis of Nestle India Limited. Choice, 6(1), 63-70.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
