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Complete a total of fifteen PowerPoint slides with my Marketing Plan Provided covering the entire plan.

Marketing Plan
I.
Executive Summary
Nestlé S.A. is a Swiss transnational food and beverage company headquartered in Vevey, Vaud,
Switzerland. It is the largest food company in the world measured by revenues.
Due to the enormous growth in the Chinese market, and since China is projected to be the 2nd biggest
market after the United States, a Nescafe marketing plan was in place to achieve Nestlé’s objective:
The main objective of Nescafe in China is to keep with the mission and objective of the mother
company Nestle in “Good food, Good life”. This mission demands the best quality in all aspects of the
processes and determines the competencies, the product categories and even the clients to acquire and
retain. Nestle should attain quality not only in taste but also in the production, roasting, and Blending.
To achieve the objective the following goals were set:
A- High-quality green coffee beans to be provided in desired quantities from farm plantations.
B- Green Coffee beans need to be processed using sustainable practices
C- The Finished product, Nescafe, delivered to individual consumers in a way that they would prefer to
buy Nestle’s product over the product of its competitors.
Reviewing the different results through KPI (Key Performance Index), showed a huge success and
suggested a great future and success in the years to come. Nevertheless competition and the volatile
nature of the markets demands utmost dedication and constant monitoring of all variables with adequate
response.
II.
Situation Analysis
A.
i-
The Internal Environment
Review of Current Marketing Objectives, Strategy, and Performance Nescafe a very wellknown brand for coffee; is a part of Nestle, a nutrition-health-wellness enterprise. As such
Nescafe should follow the mission statement of Nestle that says “Good Food, Good Life”.
Also, the main objectives of the Marketing Plan in China should be satisfied. These
marketing objectives are summarized as follows, to ensure sustainable practices and
consumption of coffee. This could be achieved by the following three conditions:
1- High-quality green beans to be secured from plantations with desired values.
2- Green coffee beans need to be processed using sustainable practices.
3- Nescafe needed to be delivered to individual consumers in such that they would prefer it
over the products of its competitors.
.
The Marketing strategy until now is performing great. The quantities are increasing at a
satisfactory rate where it was doubled to 40,000 tons in the year 2009 from the year 2004,
and just as importantly, productivity had improved, increasing roughly 50 percent. The
market share of Nescafe in China is the highest and has been increasing yearly. Nevertheless,
challenges are rising in securing new resources of green beans, securing a sustainable product
through certification, and changing old traditional habits to improve farming.
a. Review of Current and Anticipated Organizational Resources.
Nestle is a global food giant with the largest R&D network of any food company in the world,
with more than 34 R&D facilities. With such resources and finances, the Nescafe brand has
unparalleled strength to implement any marketing strategy designed.
b. Review of Current and Anticipated Cultural and Structural Issues:
Since Nestle is a longtime globalized company with a presence in more than 82 countries, the
firm is long time conversed in all cultural and structural issues and can adapt and integrate quite
efficiently.
B.
The Customer Environment
The Customer Environment is split into two types: The Buyers and The Farmers.
1 – The Buyers:
Although Nescafe has more than 71 percent shares in China, a lot of progress could be
made, because China is a tea-drinking society and coffee drinkers are increasing rapidly.
The focus will not be only on increasing the market shares but rather increasing the number
of coffee drinkers is more strategic. Not only coffee could be sold in retail shops and
markets for home drinkers but could be sold in Cafes and car stops for drivers. The special
taste of Nescafe and the various options make it very desirable to many consumers with
different tastes.
2- The Farmers:
The farmers are the most important part of the supply chain to sustain good and sufficient
green bean resources. Financial and learning support is needed to keep the process on the
right path. Improving the financial state of the farmers and the quality and abundance of
the coffee product are instrumental aspects of success. Currently, only a part of the product
is bought directly from the farmers while the remaining needs are bought from the open
market. The foundation of learning centers and the supply of seeds is helping the farmers
to work with Nestle and sell the product directly to it.
C.
The External Environment
Competition
Nescafe has no real competitors and has a dominance in the coffee market but recently
coffee multinationals saw a huge shake-up in 2012, reflected in the birth of Mondelez
International. Coffee marketers are thus assessing the changing competitive landscape, new
challenges, and new strategies6.
Although currently Mondelez has no real presence in China but has shown rapid growth
worldwide; this situation may change rapidly if proper marketing strategies are not
executed.
Economic Growth and Stability
Nestle as a major company is a trademark of growth and stability. Its continuous growth
and it’s worldwide known products have been a leader for others to follow. The only
issue that might occur is in the coffee beans production as it is still a family business
and still run by old tradition and methods.
Legal and Regulatory Issues and Technological Advancement:
More than 90% of the manufacturing is done locally. This feat was achieved by the
technological advancement the company possesses. Such an achievement, manifests
in many aspects. Price can be more competitive, Integration with the market is better
and cultural, rules and regulations are easier to handle.
Sociocultural Trends
The Chinese culture is much different and special attention had to be considered in
any move. Besides, the Chinese people prefer tea to coffee which makes integrating
coffee a more difficult task.
III.
SWOT Analysis
A.
Strengths
1- Nestle Brand name and potential: Nestle is a leading brand name. Using Nestle’s strength
in marketing, sales, finance, and distribution are only a few examples of methods of
strengthening the Nescafe brand and sales.
2- Research and development facilities: Nestle has the largest R&D network of any food
company in the world. This is a major strength of the company that produced 3IN1 and
Nespresso and Nescafe Gold among others. Continuing this process will yield more
promising and successful results.
3- Localization: Where 90% of the product is manufactured locally. This can help in many
aspects. Price can be more competitive, Integration with the market is better and cultural,
rules and regulations are easier to handle.
B.
Weaknesses
1. Green beans are a farmer family business where automation is not possible due to the
complexity of the different processes in producing coffee.
2. Old habits in Farming green beans are hard to crack. Farmers have been doing farming for
many years and new and improved methods are hard to integrate.
3. The old age of farmers working in the business of farming. The average worker is 62 years
old. This indicates that the new generation is walking away from green bean farming which
could have a serious effect on coffee supplies sustainability.
C.
Opportunities
1. No major competitors. Currently, Nescafe is the only major coffee brand in China and can
monopolize the market.
2. Very fast-growing market. China is expected to be the 2nd highest consumer after America
and this provides a huge opportunity for growth.
3. The long-time presence of Nestle in China and having the big umbrella of food distribution
making it directly recognizable as a premium brand name will help with the spread of
Nescafe in china and with different cultures in China as well as dealing with the government
and different organizations.
4 Automation to be more competitive like the distribution of
An auto vending machine selling Nescafe could reduce the costs and help gain more market
shares.
D.
Threats
1. New competitors from the local market or abroad. New global companies are rising and
cause a real threat to the market. China is famous for copying and local firms could rise and
earn high market shares.
2. Sustaining green beans production. In the long run, the real concern of decline in the
farming of green beans is a real threat to the whole process.
3. The spread of different Cafes like Starbucks with their source and distribution.
E.
The SWOT Matrix
STRENGTHS
Brand Name
OPPORTUNITIES
Lack of competition
R&D
Big Market
All in house
Presence
WEAKNESSES
THREATS
Beans Family Business
Newcomers
Different culture
Continuation in Production
Tea company
Spread of Cafes
F.
Developing Competitive Advantages
1. Consider nearby countries to sustain growth. There are many rising countries in the Fareast
China. Korea, Malaysia, Thailand, and India to name a few upcoming countries. Special
Plans similar to the one designed for China should be made.
2. Improve consumption of the Chinese population by more advertisement and customization
of coffee to their taste.
3. Increase the automation process through R&D. The different processes of turning the
green bean to Nescafe are numerous and difficult. Nevertheless, the technological
advancement and the strong impact of Nestle R&D should be able to automate the processes
further to make the work easier, and faster.
4. Reduce the age of farmers by introducing new young families to green bean farming by
increasing incentives and training for newcomers. This can be also in long term leasing the
land from the government and make a partnership with young farmers trained by Nestle to
the newest methods and standards.
5. Understand the Chinese culture and habits more. Understanding the Chinese culture,
habits, and traditions can help improve the sustainability of the product as well as the sales.
Ensure more Chinese input in designing and implementing the marketing plan by having
more Chinese in the decision position and using expert Chinese advice informing the plans
Describe ways that the firm can match its strengths to its opportunities to create capabilities
in serving customers’ needs.
G.
Developing a Strategic Focus
The company developed a strategic focus by establishing KPI to monitor the success of this
marketing strategy.
Nescafe Key Performance Indicators (KPI) provides a focus for measuring and reporting
value, sustainability, and compliance. The KPI will help market planners to how to continue
executing the plan, where to focus more, or sometimes a change or an update is in order.
IV.
Marketing Goals and Objectives
A.The main objective is to keep with the mission and objective of the mother company
Nestle in “Good food, Good life”.
A1- High-quality green coffee beans to be provided in desired
quantities from farm plantations.
A2- Green Coffee beans need to be processed using sustainable
practices This will include proper organic certification precluded the use of synthetic
agrochemicals and promoted soil and water conservation.
A3- The Finished product, Nescafe, delivered to individual consumers
in a way that they would prefer to buy Nestle products over the product of its competitors.
V.
Marketing Strategy
The Nestle plan was meant to bring sustainable coffee farming, production, supply and
consumption under one umbrella. Responsible farming might encourage farmers to adopt
sustainable agriculture practices, and thereby reduce environmental impacts. Responsible
production could improve the company’s manufacturing processes, include energy and water
use, packaging, and transportation. Finally, responsible consumption assisted consumers
with making the right choice in the preparation and use of products to minimize energy and
water use and ensure proper disposal or recycling of packaging.
A broader objective of the Nescafe plan was to transition from the “transactional” model of
the supply chain, where Nestle bought coffee beans in the open market, to a partnership
model whereby Nestle could supply coffee growers with seedlings developed to suit local
needs, along with agrarian expertise and other inputs.
1. A doubling of the amount of directly green coffee beans purchased
2. Ensuring widespread compliance of the Farmer Connect network
3. The procuring of 90,000 tons of green coffee beans grown according to the principles of
Rainforest Alliance and Sustainable Agriculture Network by 2020.
Going forward the Nescafe plan was a success in China but updating the plan is a necessity
to handle the different difficulties like the difficult mindset of the farmers to change and the
high growth of the consumer market, focusing on strengthening its local efforts to work with
coffee farmers to improve productivity. As per the original plan training farmers, providing
better plantlets, and paying more for the coffee beans.
Backward integration is the basic ingredient to add to the plan that will help provide better
results and help facilitate other issues too. Only 1 percent of the process goes to the farmers
and the rest goes into the supply chain that consists of a coffee farmer, processors,
Government Agencies, Exporters, Dealers, Roaster distributers, and End Users. Working
directly with the farmers and then to the end-users will cut many middlemen. This will
provide more interaction with the farmers for support and providing better prices, more
control over the process, and eventually earn more profit. Long time leasing land from the
government and contracting with new farmers
Will complete the control of the supply chain and enable Nestle to introduce the proper
farming method.
The basic plan is laid out but two basic factors should accompany it for continuity and
success.
1- Monitoring and controlling. No plan is perfect, and much tweaking and sometimes even
changing it or in extreme cases canceling it is necessary. This could be done by continuous
monitoring and control of the plan. A frequent meeting should be held routinely. Proper
indexes to help monitor should be upheld (KPI) and ideas should not be rejected and
discussed.
2- Communication. Communication is the most important tool sometimes neglected. The
right information should reach the right people and at the right time. Without adequate
communication best plans fail, and this should not be restricted inside the Nescafe team
only. Communication within the organization but the whole firm in Nestle locally and
globally. Also, communication is vital with the consumers and buyers. They should clarify
the objectives and plans of Nescafe. Establishing a special plan for communication will
solve many issues and help the smooth operation of the Marketing Plan.
:
VI.
Marketing Implementation
A.
Structural Issues
A new department will be established to handle the expansion to China. Although the
objectives are set by the company, the department will handle all the activities and tasks
required. The department will have a vice president that will report directly to the board of
directors. Proper training will be performed on the team and people with cultural knowledge
of China will be included in the team.
B.
Tactical Marketing Activities (be very specific—this lays out the details of the
marketing strategy and how it will be executed)
Person/Department
Responsible
Advertisement
Department.
Legal team and
cultural specialist
Marketing
Department
Required
Budget
500,000$
Completion
Date
6 weeks
50,000$
2 weeks
Employee
salaries
5 weeks
Distribution/Supply Chain Activities
1.Establish network
2.Evaluate efficiency
Purchasing
department
30,000,000
3 months
IMC (Promotion) Activities
1.Allocate Budget
2.Prepare campaign advertising
Advertisement
department
4,000,000
3 months
Specific Tactical Activities
Product Activities
1.Finilaze Chinese design to production
2.Check for cultural acceptance
3.
Pricing Activities
1.Analyze cost
2.Add profit margins
VII.
Evaluation and Control
A.
Formal Controls
Establishing the department requires a lot of work. Nevertheless, not all the jobs are new.
Expanding to new countries is an on-going process in Nestle. Therefore, finding qualified
resources is not an impossible mission. Specialized personnel who are experts in Chinese
methods and cultures must be added to the department.
The HR will provide adequate training to the employee, and proper incentives are
established for target achievement and dedication in work Key performance indicators
(.KPI) are installed to review and evaluate the work performance and target achievement.
Yearly analysis, will be held to determine the overall performance and the percentage of the
targets achieved including but not limited to dollar sales, sales volume, market share, the
share of customer, profitability, customer satisfaction, customer retention, or other
customer-related metrics.
B.
Informal Controls
As for, employee self-control that can influence the implementation of the marketing
strategy, the Nestle principles and regulations shall be used. Examples include employee
satisfaction, employee commitment (to the firm and the marketing plan), and employee
confidence in their skills.
Similarly, issues related to employee social control that can influence the implementation
of the marketing strategy will be handled. Examples include shared organizational values,
workgroup relationships, and social or behavioral norms.
C.
Implementation Schedule and Timeline
Month
Week
Activities
1
________
2 3 4
1
Product Activities
Finalize Chinese design to products
Check for cultural acceptance
X
X
X
X
X
X
X
Pricing Activities
Analyze cost
Add profit margins
X
X
X
X
X
X
Distribution Activities
Establish Network
Evaluate efficiency
X
X
X
X
X
IMC Activities
Allocate Budget
Prepare campaign ads
X
D.
________
2 3 4
1
________
2 3 4
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Marketing Audits
Nestle is in charge of all marketing audits as per the rules and regulations of the company. It
is operating in more than 100 nations worldwide and the same methods will be used. A subaudit department will be responsible for China operations with professional auditors in
charge,

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