STAGE 1:

Market Analysis. After beginning with a market overview, please organize your
information by using a SWOT analysis (strengths, weaknesses, opportunities,
threats).

Market Overview

Its history begins in 1866, with the foundation of the Anglo-Swiss Condensed
Milk Company. Henri Nestl develops a breakthrough infant food in 1867, and
in 1905 the company he founded merges with Anglo-Swiss, to form what is
now known as the Nestl Group. During this period cities grow and railways
and steamships bring down commodity costs, spurring international trade in
consumer goods. US brothers Charles and George Page help establish Anglo-
Swiss Condensed Milk Company. Using abundant supplies of fresh milk in
Switzerland, they apply knowledge gained in their homeland to establish
Europes first production facility for condensed milk in Cham. They start
supplying Europes industrial towns with the product under the Milkmaid brand,
marketing it as a safe, long-life alternative to fresh milk. Fierce competition
develops between Nestl and Anglo-Swiss, when both companies start selling
rival versions of the others original products: condensed milk and infant cereal.
Both firms expand sales and production abroad. Nestl begins selling
chocolate for the first time when it takes over export sales for Peter & Kohler.
Henri Nestl himself plays a key role in the development of milk chocolate from
1875, when he supplies his Vevey neighbour Daniel Peter with condensed
milk, which Peter uses to develop the first such commercial product in the
1880s.

Current Status

Nestl, the world's leading food company, produces nutritious food

and is conscious of the importance of informing the consumer about
the link between nutrition and health. A healthy diet contributes
significantly to the overall quality of a good life. Organizational
strategy in developing a marketing plan and to evaluate the
component parts of a marketing plan. For this purpose a marketing
plan for Nestle pure life (Bottled water by Nestle in Pakistan) is
developed for understanding different components of marketing
plan.

The last years of the 20 century saw a change in Nestls business

strategy. The company moved from being a technology led company
that produced convenient, tasty foods and beverages for sustenance,
to being a science driven, nutrition, health and wellness company.

SWOT analysis,
Nestle is a multinational packaged foods and beverage manufacturer
headquartered in Switzerland. It is widely considered to be the
worlds largest food manufacturer, with more than 2000 brands and
operations in 197 countries.[1]

Nestle reported revenues of $99.09 billion on December 31, 2015,

and estimated sales of $92.62 billion for the current fiscal year.
Nestle had a market capitalization of $245.71 billion, according to
YCharts.com; because the company is based in Switzerland, it does
not have to report its enterprise value like an American company
would.

Currently Nestle operates in 12 different segments of the consumer

products market, including baby foods, bottled water, cereals, candy,
coffee, prepared and prepackaged foods, dairy, drinks, food service,
healthcare and nutrition, ice cream and pet care. Its staple of brands
includes some of the best-known names in the industry, such as
Stouffers, Dreyers, Haggen-Daz, Purina, Aero, Butterfinger, Gerber,
Maggi and Perrier.

STRENGTHS

Nestle is a highly-diversified company operating in many different

markets and sectors of those markets.

The variety of brands gives Nestle a strong ability to weather

economics because it serves many different segments of the market.

It has well-established relationships with other powerful brands,

including Coca-Cola, Colgate Palmolive and General Mills.

Nestle owns some of the worlds most recognized and trusted

brands. Some families have used its products for generations. Gerber
has historically been one of the most trusted brands of baby food in
the United States.

It has strong research and development capabilities that are growing.

Nestle has strong relationships with retailers.

It includes well-established brands with a large amount of market

share in some of the largest national economies, including Europe
and the United States.

WEAKNESSES
Much of its sales depend upon a few well-recognized brands. This
makes the company vulnerable to any sudden changes in consumer
behavior.

Grocery sales in some major markets are increasingly concentrated

in the hands of a few giant retailers such as Walmart and Kroger in
the United States and Tesco in the United Kingdom. These companies
have the ability to force sharp reductions in price. Some of these
retailers are intent on supplementing name brand products with
more-profitable house brands.

Some of its brands, such as Carnation milk, are not tailored to

modern lifestyles and are seen as old-fashioned by some customers.

The company is heavily dependent upon advertising to shape

consumer opinion and drive traditional sales. This can lead to high
marketing costs with a questionable return on investment.

There is a high cost for launching new brands to supplement older,

less-fashionable food products.

OPPORTUNITIES

Growth in online retail could open up new distribution channels such

as Amazon Prime that can bypass traditional retailers.

Growing middle classes in nations such as China and India create

larger and broader markets for Nestles products.

Increased disposable income in countries like China could increase

the demand for luxury items like bottled water, ice cream and pet
food.

Changes in lifestyle, such as longer work hours, more women in the

workforce, and more single-person households, increase the demand
for prepackaged foods.

Increased mobility and car ownership increase the demand for candy,
bottled water and snack foods in nations like China.

Increased interest in health and nutrition could increase demand for

some Nestle products, such as energy drinks.

THREATS
Retailers such as Walmart, Kroger and Aldi are increasingly
promoting house brands, which are more profitable for them. House
brands are often sold at a lower price and given greater visibility on
shelves. Some retailers such as Aldi and Trader Joes emphasize
house brands at the expense of traditional products.

There is pressure from large retailers such as Walmart to cut prices.

The growing use of new retail channels such as Amazon Prime and
dollar stores may not favor traditional retail products.

They have experienced disruption of the traditional grocery industry

in countries like the United States by new players such as Whole
Foods Market and online retailers.

There is a growing ineffectiveness of traditional advertising as new

technologies such as streaming video supplant traditional broadcast
and print media.

Consumers in some countries are eating fewer meals at home, which

means less demand for some Nestle products. Bloomberg reported
that Americans spending on restaurant meals overtook spending on
groceries for the first in April 2015.[3]

A growing suspicion of prepackaged foods as unnatural and

unhealthy in Europe and North America is becoming common. This
increases the demand for fresh and natural foods in some markets. It
also increases the demand for organic and other alternatives.

There is a possibility of increased government oversight and

regulations in some markets, such as India. Indias government
ordered billions of dollars of Maggi instant noodles be pulled from the
shelves in the summer of 2015 because of allegations of excessive
levels of lead in the product.[4]

Despite the threats, Nestle still owns some of the worlds best-
recognized and most profitable food brands. Unfortunately, it faces a
dramatically-changing grocery market in which traditional brands are
losing much of their effectiveness. Such brands are heavily
dependent upon traditional advertising and marketing strategies
such as television commercials, which are often ineffective in todays
world.

Changing patterns of consumer behavior, such as the demand for

more natural food in Europe and the United States and increased
spending on take-out and restaurant food, could be a greater threat
to Nestle. It might have to create products or revamp brands simply
to maintain market share.

Nestles prospects in a radically-changing consumer marketplace are

good because of its strong brands, reputation with consumers, good
relationships with retailers and research and development
capabilities. This company should remain one of the dominant names
in packaged food and beverages for decades to come.
 STAGE 2:

Market Segmentation and Targeting.

Nestle is global company of milk products and nutrition, chocolates', beverage,

catering and many type of confectionary goods. It has its millions of customers
worldwide. Today Nestl Singapore Limited is on good positioned to grow
through its business policy of constant innovation and renovation,
concentrating on its core competencies and commitment to better and high
quality, with the aim of availability to the best quality food to the people of
Singapore. In the report we have brought a discussion about the marketing
segmentation of Nestle, their target market and positioning strategy in
Singapore. The way Nestle chooses its different core customers different
needs with a better way and how it fulfilled satisfaction its consumers by
making greater facilities by the aggregate of different products or marketing
mixes is shown in market segmentation of Nestl. In the area of market
viewing we have talking how Nestle have made many segments and decided
to expand their whole business in whole Singapore. In the end of this we have
talking how Nestle available to the customers point more Efficiently and
effectively comparing with their other manufacture competitors in the highly
challenging food& beverage market of Singapore by making differentiation of
target Users and customers.

Nestle is the biggest nutrition and foods company in the globe, established his
headquarter in Vevey, Switzerland. The journey of Nestle begins with Henri
Nestl developed the first milk food for early in 1867, and saved the life of a
neighbor's child. This man makes a food for the needy babies who are not able
to take mothers feed can use food as an alternative food. Henri Nestle left his
job in 1875 but the Nestle was going on a top speed. In the coming year the
Nestl company introduced condensed milk, so that the company became
direct and strong rivals. After that the company was joined in 1905 with the a
firm named Anglo-Swiss Milk company which was established by two brothers
named George Page and Charles Page. The firm reenter significantly during
the First World War though it fall in debt, a banker provide facility and help it to
less its debt. After the 2nd World War , the company eventually increased its
providing beyond its firsty condensed milk and infant formula products. The
1920s saw Nestl's first enter into new products, with chocolate the Nestl's
second big important activity. Nestl felt the effects of World War II
immediately. Profits decreased from US$200 lakhs 1938 to US$60 lakhs in
1939. But after the World War II was the starting of a dynamic phase for
Nestl. Growth speeder and companies were taken. At this time the company
operates in 86 countries around the world and hired manpower around
283,000.
Demographic Segmentation:

In demographic segmentation, the market is divided into groups on the basis

of variables such as age, gender, income, occupation etc; these demographic
variables are so popular with marketers so that they are often associated
with the consumers needs and wants. Segmentation variables are easily
measurable. Here are the demographic variables have been used to segment
markets. Nestle Slim Milk categorizes its target on the following criteria.

Psychographic Segmentation:

Psychographic segmentation buyers are divided on following ways:

Lifestyle: Business class, working class executives, students

Personality: hardworking, health conscious.

Benefits: Quality, health

User status: regular user

Usage rate: regular

Loyalty status: regular Loyal

Readiness stage: intending to buy

Attitude toward product: enthusiastic, grateful

Geographic Segmentation:
Geographic segmentation is done using the spatial location to segment the
market. In geographic segmentation there are different schemes for the
different geographical units such as states, regions, cities. Markets are mainly
divided into the rural and urban areas. The Geographical variables have been
used to segment markets in following ways:

Area:Nestle Slim Milk limits itself to semi urban and urban

India as that is their major consumer base
City:Class-A and Class-B cities i.e. metro politician cities
Region:Distribution is constant across urban areas

Targeting
In geographic segment they target cities with a rampant IT culture.In
demographic segment their main target is young working professionals (20
to 40 years).

In psychographic segmentation they targeted a2, b1 and b2 socio-economic

classes.In behavioral segmentation it was found that they were targeting the
first time users and also their regular users. They target grocers,
departmental stores and hyper markets.

Perceptual Map

Theoretically a perceptual map can have any number of lines, to keep things simple
they usually have 2 lines the x and y axis. The x axis goes left to right and the y axis
goes bottom to top. Any criteria can be used for the map for example price, quality,
status, features, safety and reliability. Once the two lines have been drawn and labelled
existing products will be placed onto the map.

o Define a consumer problem/opportunity in your international

business setting (e.g., is there no satisfactory smartphone for
teenagers in China?)

Identify potentially unmet needs/wantsamong consumer

segments, considering culture, demographics, lifestyles,
consumption patterns, purchase trends and interests, etc.
 Locate a market opportunityconsidering underserved
consumer segments. In other words, think about whether
there is potential to satisfy unmet needs/wants through your
product, making sure to be mindful of the specific culture of
the international business setting.

o Perform targeting (e.g., male teenagers in China)

Officially choose your target segmentfor your international

business setting based on the research and analyses you
have now conducted.

Briefly explain an initial basic idea for solving the consumer

problem or satisfying unmet needs/wants of your target
segment in your international business setting.

Describe your value proposition: explain why your offering

is better than your competitors offerings in your international
business setting from your target segments perspective.

* Each team will have about 20 minutes for their

presentation (15 min presentation, 5 min Q&A). About 10-12
PowerPoint slides should be sufficient.

STAGE 3:

Positioning Through a Marketing Mix (4Ps and Branding Strategy). Given

that you have selected your market and target segment, you should now
position your product though the following steps:

o Better understanding of your target segment: First, gain a deeper

understanding of your target segment in your international business
setting by collecting more information from the Internet or library
resources.

o Create your positioning: Considering your target segments ideal

point and where your competitors are positioned, decide where you
want to reposition your companys product through the 4Ps (product,
price, promotion, and place), including your companys general
 branding strategy. Certain aspects (e.g., individual Ps) will be revised
from the companys current positioning, while other aspects may
simply maintain how the company is currently positioned.

Discuss your companys current 4Ps, as well as any

individual Ps you will be revising to meet the unmet
needs/wants of your target segment in your international
business setting.

Revise your perceptual map to now also include where

your companys product will be repositioned (ideally
positioned closer to the ideal point of your target segment).

STAGE 4:

1. Implementation Planning:

o Create an implementation plan for your marketing strategy to meet the

unmet needs/wants of your chosen target segment and to differentiate
it from competitors in your international business setting. This is your
chance to be creative and specific. To be an effective implementation
plan, you should incorporate the following possibilities and/or any
others that might be appropriate, making sure to be mindful of the
specific culture of the international business setting:

Mass media option(s) for your company to reach your target

segment (e.g., television, billboards)

Social media and/or other Internet/mobile possibilities

Celebrity endorsers

Collaborations with other brands

Brand licensing opportunities (e.g., other types of products to

potentially lease your brands logo to)

Product placement opportunities

 * Again, each team will have about 20 minutes for their
presentation (15 min presentation, 5 min Q&A). About 10-12
PowerPoint slides should be sufficient. You can use the first
few slides to summarize content from the Midterm
presentation that the Final presentation may build from.

Individual Final Report: Stages 1-4

You will now have at least 20 slides from the two

presentations. Please organize your thoughts and ideas, and
write a report using the slides as your foundation, and
following the general organization (main sections and
subsections) presented throughout the Guideline above.

Each student is required to submit his or her own individual

report (minimum: 15 pages). This should not exceed 20
pages including a table of contents(about 1
page), executive summary (1-2 pages), main text,
and reference section. (Note: In addition to including
references in the reference section,please include citations at
the appropriate spots throughout your paper).

Remember that the final report is individual. While you will use the slides your
team created as the foundation for your report, you must write your final report
completely on your own.

For the executive summary, use the executive summary format you have been
using for your case memosthroughout the semester to summarize what you
have written in your final report so that your client could scan it and obtain the
key idea(s) easily.

Remember that the main text of the final report should follow the general
organization (main sections and subsections) presented throughout the
Guideline above, and so should be organized by the following sections:

* Table of Contents

* Executive Summary
 * Market Analysis

* Market Segmentation and Targeting

* Positioning Through a Marketing Mix

* Implementation Planning

* References

Use headings in your final report that correspond to the requirements list.

Good luck! Remember to have fun during this process, as you are on
your way to becoming a better writer and better marketer! As always,
dont hesitate to ask me any questions you may have throughout this
process.