Executive summary
Nestlé globally is recognized as one of the largest food and beverage manufacturers in the world recently released an innovative health drink to meet consumers’ growing demand for nutritional and tasty beverages. This paper focuses on the launch of the new product name Nestlé’s Health. It covers areas of situational analysis, potential market growth, segmentation, target market, positioning, pricing, and distribution strategies. Moreover, it also covers the financial information, product objectives, implementation milestones, evaluation and control metrics, methodology to measure performance and contingency planning for the new product.
Situational analysis The consumption of the new product will involve consumers from all over the world the reason being its affordable price and its availability. The product will be much available than any other health product in the market with an ease. The trends will see the company apply insight into changing lifestyles through the provision of innovative ideas that will appeal to consumers. There is a great need for the Nestle Company to focus on the culture of its markets. For instance, the American culture will definitely differ with that of India. Therefore, the new Nestlé’s health product need to be produced factoring out the culture of the consumers. This will help the company increase the consumer satisfaction.
SWOT Analysis Domestic Market The strength for the product is to build on which implies that people in the world still trust and recognize Nestle as a big brand name. Being a health product, Nestle will receive high sales volumes for the product following world’s consumers increased conscious about health. Nestle has a weakness in entering mature markets which give a tough competition for the product. An outstanding example is the United States market where it has high completion from V8 Splash, which is owned by the Campbell's Soup Company. V8 Splash contains fruit blends with an excellent source of vitamins A and C ("V8 Juice", 2013). However, being a new product proper market will help overcome this weakness. Nestle has an opportunity of increased demand for health products in United States. This provides a larger market for the company’s new health product. Finally, the company is exposed to the threat of trend towards healthy eating. The company has been producing products with high levels of calories thus following the change in consumer habits may affect the demand for the new product in the US. India Market Nestle Company will enjoy the strength of good brand and public image globally. Many consumers in India trust the company following its affordable products and its availability. This is a big plus for the company as it looks forward to launch the new product in India. In addition, it has strong distribution channels globally will help much in the distribution of the new product. On the other hand, Nestle Company faces a weakness failure to provide consistency in quality product for its customers. This may be a negative impact for the new product in the Indian market. There is great need for the company to ensure consistency in quality for the new healthy product. There is an opportunity in India where there is a high demand for health products. India consumers are developing high demand for Nestlé’s health products thus creating a great market for the company’s new products. Finally, there is need to focus on the threat from the worldwide community following its violation of international marketing standards which may affect the sale of its new product (Ryan & Jones, 2009). Market growth potential and competitive analysis
Nestle being the world’s largest food and Beverage Company has a great potential for market growth. There are increased emerging markets with limited access and knowledge of nutritional health. Through early market penetration and brand recognition Nestlé will be able to successfully increase global market share. On the other hand, the competition for healthy products still remains high. An outstanding example is the V8 Splash, which is owned by the Campbell's Soup Company. V8 Splash contains fruit blends with an excellent source of vitamins A and C ("V8 Juice", 2013). However, Nestlé Health will provide the ultimate combination of nutrients and taste helping it to gain a competitive advantage over its competitors. Segmentation, target market, and positioning Nestlé’s target market for the product will be segmented by geographic and behavioral characteristics. Geographically, the product will be segmented with reference to its local market in United States then a focus on global market in India. On the other hand behavioral characteristics will focus on analyzing the attitude of various groups of consumers towards the product then responding accordingly (Ryan & Jones, 2009). Nestlé’s healthy product positioning will involve placing the product in the market at a convenient time when it will face little competition. The product positioning strategies will involve the use of product attributes and benefits derived from consumption; its quality, class, or its application sway consumers to accepting the product. In addition, positioning will be aided by the use of perceptual and preference maps to analyse the competitive structure of the market. Pricing and distribution strategies Pricing strategies will focus on various factors. These include product fixed and variable cost, competition, objectives of the company, and the target groups. In addition, costs associated to transportation and value added tax will also be considered. On the other hand, distribution of the new product will depend on the marketing region. The company will need to open distributors in every market region in order to help reach every consumer (Ryan & Jones, 2009). . Marketing communication plan Marketing communication for the product will include personal selling, advertising, public relations, sales promotion, and direct marketing communications. Following the advancement in technology, Nestle will require to incorporate internet marketing in order to meet a large volume of its consumers (Ryan & Jones, 2009). Financial information Target demand for the product will be expected to be 30 million customers. This will help in attaining the sale target of 10 billion dollars annually. The marketing and promotional budget will be estimated at 4 billion dollars annually. Intended marketing objectives for Y1, Y2, and Y3 The intended marketing objectives for the product will be as follows;
- Y1: To increase sales revenue through the sale of the new product Nestlé’s health.
- Y2: To increase its market share grow globally through the sale of the new product.
- Y3: To take advantage of the available opportunity of the emerging markets.
Implementation milestones Implementation of the new product will involve incorporating various marketing strategies discussed above with focus on the environmental factors and the product objectives.
Evaluation and control metrics and methodology to measure performance Evaluation of the new health product will involve the focus on whether the laid objectives will be achieved. The control metrics will focus on continuous following of the marketing process adjusting the plan as per the market needs. Finally, the methodology for measuring performance will be management by objectives. Contingency planning Contingency planning will depend on the outcome of the product sale. The focus will be on whether the objectives for the product will be achieved. If yes, then the company will focus on developing new strategies in order to expand its market for the product globally. On the other hand, if no Nestle will require carrying a concrete market research to establish what could have caused this problem and then act accordingly.
References
Ryan, D., & Jones, C. (2009). Understanding digital marketing: marketing strategies for engaging the digital generation. London: Kogan Page.
Nestlé (2013). About Us. Retrieved July 7, 2013, from:http://www.nestleusa.com/aboutus
V8 juice. (2013). Retrieved from http://www.v8juice.com/Benefits_V8Splash.aspx
