MARKETING MANAGEMENT (GROUP ASSIGNMENT)

MARKET PLAN FOR NESTLE

YOGHURT

AHMED ZAHEEN (038267)

MARYAM JAMEEL (O38291)

ZIYANA ANEES (002329)

MINHATH ALI (044360)

 “Tingle your taste buds with Nestle Yogurt”

Table of Contents

EXECUTIVE SUMMARY ........................................................................................... 3

COMPANY ANALYSIS .............................................................................................. 4
NESTLÉ’S MISSION......................................................................................... 4
NESTLÉ’S VISION ........................................................................................... 4
NESTLÉ’S INTRODUCTION ........................................................................... 5
Nestlé Nutrition .................................................................................................. 6
NESTLÉ IN MALDIVES ................................................................................... 7
ORGANIZATION CULTURE ........................................................................... 7
CURRENT MARKETING SITUATION ......................................................................... 8
MARKET TREND ............................................................................................. 8
MACRO ENVIRONMENT ANALYSIS ........................................................... 8
OPPORTUNITY AND ISSUE ANALYSIS ...................................................................... 8
SWOT ANALYSIS ............................................................................................ 8
STRENGTHS .................................................................................................. 9
WEAKNESS ................................................................................................... 9
OPPORTUNITIES ........................................................................................ 10
THREATS ..................................................................................................... 11
COMPETITION AND COMPETITIVE PRODUCTS...................................... 11
OBJECTIVES .......................................................................................................... 12
MARKETING AND FINANCIAL ................................................................... 12
MARKETING STRATEGY ........................................................................................ 12
MISSION ......................................................................................................... 12
OBJECTIVES................................................................................................... 12
SEGMENTATION AND TARGET MARKET ................................................ 13
 “Tingle your taste buds with Nestle Yogurt”

POSITIONING ................................................................................................. 13
STRATEGY SUMMARY ................................................................................ 14
Marketing Mix .................................................................................................. 14
Product .......................................................................................................... 14
Price .............................................................................................................. 15
Place .............................................................................................................. 15
Promotion ...................................................................................................... 15
MARKETING RESEARCH ............................................................................. 16
Financial Projection ............................................................................................. 17
Implementation & Controls ................................................................................. 17
Evaluation ............................................................................................................ 18
 “Tingle your taste buds with Nestle Yogurt”

EXECUTIVE SUMMARY

For a company who aims to be the “world’s leading nutrition, health and wellness company”,
Nestlé reveals a surprising weak presence in the health segment in the Portuguese yogurt market.

Today consumers are looking for products aligned with a healthy lifestyle while maintaining
taste and pleasure. Nutraceutical food industry is growing as health awareness rises, especially
on the dairy sector. Therefore, it is crucial for Nestlé to position itself in the fastest growing
segment in the market, to be more aligned with its corporate mission and increase its market
share in the yogurt category.

To enter on the health segment, Nestlé should be looking for markets where they would get high
demand around the globe. Hereby, Nestlé is introducing its yoghurt to new market, Maldives
where we have a greater demand for the product. The company analyzed the market and created
a market plan to launch and promote he product in Maldivian market.

This plan is prepared after analyzing Maldivian market, its trend, analyzing the reports by current
yoghurt marketers in Maldives. The secondary information and researches were conducted by
observing the status of Maldives by visiting Nestlé official to Maldives. To launch the product,
implementing the plan, and to obtain the objectives would need lot of technical efforts, internal
strength and effort by Nestlé firm and its intermediaries.
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COMPANY ANALYSIS

NESTLÉ’S MISSION
“At Nestlé, our research makes it possible for everyone to enjoy better food for a better life.”
Good Food is the primary source of Good Health throughout life. We strive to bring
consumers foods that are safe, of high quality and provide optimal nutrition to meet
physiological needs. In addition to nutrition, health and wellness, Nestlé products bring consumers
the vital ingredients of taste and pleasure. As consumers continue to make choices regarding
foods and beverages they consume, Nestlé helps provide selections for all
individual taste and lifestyle preferences. R e s e a r c h i s a k e y p a r t o f o u r h e r i t a g e
a t N e s t l é a n d a n e s s e n t i a l e l e m e n t o u r future. We know there is still much
to discover about health, wellness and the role of food in our lives, and we continue to
search for answers to bring consumers “Good Food for Good Life.”

NESTLÉ’S VISION
“Nestlé aim is to meet the various needs of the consumer every day by marketing and selling food
of a consistently high quality.”
The confidence that consumers have in our brands is a result of our company’s
many years of knowledge in marketing, research and development, as well as
continuity – consumers relate to this and feels they can trust our products. The mission and vision statement
covers almost all perspectives. Therefore, no necessary changes are required for it. But
particularly for Nestlé Yogurt, we have made a tag line or positioning statement as: “Tingle your taste buds
with Nestle Yogurt”
 “Tingle your taste buds with Nestle Yogurt”

NESTLÉ’S INTRODUCTION
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by
Henri Nestlé and is today the world’s biggest food and beverage company. Sales
for 2014 were CHF 91.6 bn, with a net profit of CHF 14.0 bn. Nestlé employ around
339, 000 people and operate in more than 197 countries in the world. Nestlé is the
largest food and beverage company in the world. It is also well on its w a y t o b e c o m i n g
w o r l d l e a d e r i n n u t r i t i o n , h e a l t h a n d w e l l n e s s . T h e N e s t l é Company is built on
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the foundation of very strong brands. Some are global, others are regional, and many are local to
a specific country. The company has god more than 2000 brands worldwide.

Nestlé Nutrition
Sales of CHF 9.6 billion, 7.7% organic growth, 3.6% real internal growth; 20.8% trading
operating profit margin, +80 basis points. Their infant nutrition business saw a very strong
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performance in many Asian markets including China. Growth was double-digit across Asia,
despite political unrest in parts of the Middle East that hindered the distribution of products
there. Growth in Latin America was solid, while in Europe and North America, the environment
was more challenging. Infant formula’s growth was driven by strong sales of NAN and our
premium brands S-26 and Illuma which benefited from the roll-out of successful innovation. In
baby food, infant cereals saw a steady recovery in the United States and Gerber Organic fruit
purée pouches for infants, combining good nutrition with convenience, were a highlight for
meals and drinks. Nestlé divested their Performance Nutrition business PowerBar during the
year. The trading operating profit margin rose 80 basis points to 20.8%, despite the impact of
higher input costs. The improvement was driven by the effects of portfolio management, the
good performance in Wyeth Nutrition and efficiencies.

NESTLÉ IN MALDIVES
Nestlé operates widely in Maldives having its branded products with higher market
share in Asian Region. It includes its branded beverages and drinks, food and
nutritional products, healthy products and many more. The company operates in
Maldives accompanying with the Maldivian wholesalers in a chain with retailers.

ORGANIZATION CULTURE
The Company’s strategy is guided by several fundamental principles. Nestlé’s existing products
grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term
performance. The Company’s priority is to b r i n g t h e b e s t a n d m o s t r e l e v a n t
p r o d u c t s t o p e o p l e , w h e r e v e r t h e y a r e , whatever their needs, throughout their lives.
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CURRENT MARKETING SITUATION

MARKET TREND
Nestlé Company has analyzed the trend in Maldives market for yogurt. It reveals that the product
is mainly consumed by children and at a level by adults. Also it has a great demand in food
production industry, as Maldives is highly based on tourism and the industry consumes huge
amount to the product in a daily basis.

MACRO ENVIRONMENT ANALYSIS

The biggest challenge for Nestlé Company is the competitive environment in Maldives towards
the product. As such, the biggest challenge is CAMPINA YOGHURT brand. It’s the best
running brand o yoghurt in the country with a huge demand by citizens itself and industries
basis. So to overcome this, and gain demand for Nestlé yoghurt will be challenging even if it’s a
familiar brand. As the yoghurt brand will be very unfamiliar to Maldivian market.

OPPORTUNITY AND ISSUE ANALYSIS

SWOT ANALYSIS
A SWOT analysis is a structured planning method used to evaluate the strengths, weaknesses,
opportunities and threats involved in a project or in a business venture. Below is a strategic
assessment of strengths and weaknesses, opportunities and threats of Nestle Yogurt which is to
be introduced to Maldivian market.
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STRENGTHS

 Company Name
The name of nestle is no doubt a strength as it has the trust and reliability in the
consumers mind and people do prefer nestle products especially dairy products over
other brands.

 Quality
All of their products are quality assured and certified by the quality
assurance companies and production facility cert ificate providers such
as ISO certifications and FDA approval certificates.

 Trustworthiness
Anything with nestle written on it is trusted by consumers and with the trust they
have established over the years not only in Maldives but also in other places
across the Globe they have sold many products.

 Consumption in Maldivian Culture

I n t h e M a l d i v i a n c u l t u r e t h e consumption of yogurt is very high.
Almost every household consumes yogurt every day. So the demand of
yogurt is indeed very high in Maldivian Market.

WEAKNESS

 Lack of Awareness
Lack of Awareness among the consumers is a major drawback for the yogurt.
Many people don’t even know that yogurt exists among Nestle products.
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 Limited Budget for Advertising

Nestlé’s budget for advertising is a fixed percentage of sales. The sales are not
high therefore the advertising of the product suffers.

 Availability
Retailers don’t want to keep an item in their stock that takes up their freezer
space. Rather they prefer to keep FMCGs which have higher profits or a high
turnover as a result of their higher demand.

 Lack of Distributor’s interests

Since yogurt has to be transported in chilled containers distributors don’t
prefer this product because of the many difficulties.

OPPORTUNITIES

 Potential market for yogurt

Since yogurt is highly demanded in household and as well as in
tourism sector as a meal component/culinary use, we can say that there
is a potential market for yogurt in Maldives.

 Higher Income Group

People with higher income tend to look for more luxury or differentiated
products.
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THREATS

 Poor economy
The poor economy and purchasing power of the people of Maldives only allow
them to purchase the cheapest yogurt.

 Competition
Constant introduction of product innovations in the different segments by
competitors is a threat for the product.

From the above SWOT analysis, we would be able to conclude that consumers nowadays need a
product which is aligned with nutrition, wellness and is in a convenient format which can be
taken anywhere. So, Nestle’ yogurt is an ideal product for Maldivian market.

COMPETITION AND COMPETITIVE PRODUCTS

With the less population the Maldivian market is a small market compared to other countries.
There are about 11 brands of yogurts available in Maldivian market. Since there are many brands
of yogurts already existing in Maldivian market, it would be a challenge for Nestle. They need to
put extra effort in ways to be the leader among the competitive products. The top brand of yogurt
in Maldivian market at the moment is Campina Yogurt from Friesland Campina. It has been in
the market for a long time with the trust of a large number of consumers. Their price has become
a challenge for competitors since consumers want a product which is lower in price but higher in
quality. So, competition and competitive products is the main challenge for the Nestle Company
to introduce yogurt in Maldivian market.
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OBJECTIVES

MARKETING AND FINANCIAL

The main marketing objective of every company is to be at the top in the market. To achieve
these objective sales and market share will be set for the initial launch and beyond. Since, it’s
the initial launch of yogurt for the Maldivian market; the goal is to attain a 10% market share on
the first year. Assuming that it will continue to grow at the same rate, the company attains 12%
of the market for the second year and 14% on the third year.

Apparently when the market share goes up the financial objective will be reached. The main
objective of the company is to maximize the profit. Assuming that the company reaches the
marketing objective, company will make approximately $5 million of retail sales in one year. In
the second and third year, sales will be $08.7 million and $10.3 million respectively.

MARKETING STRATEGY

MISSION
In Nestlé’s vision, food has entered a new era, nowadays consumers are looking for something
more, an improved nutritional value. Nestlé seeks to provide consumers the products they need
for a healthy life. It encourages a balanced, healthy diet and manufactures products that fit into it,
committing itself to increase the nutritional value of its products while improving taste and
pleasure. Nestlé’s yoghurt fits perfectly on the corporate mission, delivering a healthy and
balanced product allowing consumers to enjoy a wellness life.

OBJECTIVES
Nestles yoghurt’s main objective is to establish a credible Nestlé brand on the health segment in
the Maldivian yogurt market in which Campina brand has been leading. Considering that the
ultimate marketing objective for every company is to maximize profit, therefore sales (absolute
volume) and consequently market share (relative volume in the category) goals will be set for the
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initial launch period and beyond, since health is a growing market segment in Maldives and we
are launching a new product in this market.

SEGMENTATION AND TARGET MARKET

In order to maximize Nestlé ability to satisfy consumers, the market should be segmented
according to different consumer needs and preferences. Segmentation involves dividing the
market of potential customers into homogeneous subgroups, which may be distinguished in
terms of their behavior patterns, attitudes, demographic characteristics, psychographic profile,
and the like. Marketing effort will focus on targets whose needs correspond to the firm’s
capabilities. Yogurt market segmentation will be based on the benefits that consumers seek from
products in the category, thus the yogurt market will be segmented in two different sectors. That
is retailing for consumers from young age children to adults and wholesaling for resorts of
Maldives which is a huge market for yoghurt

POSITIONING
Brand positioning refers to the specific, intended meaning for a brand in consumers’ minds.
More precisely, a brand’s positioning articulates the goal that a consumer will achieve by using
the brand and explains why it is superior to other means of accomplishing this goal

It has got several competitive edges.

 Localization of product
 many brand extensions and product lines like dietary yoghurt, various flavors, fresh fruits
etc
 Decentralized focuses on consumer’s needs and preference.
 Well-known parent brand under many other famous brands like Kit Kat, Milo etc.
 Brand image and company reputation.
 visually and linguistically appealing Nutritional Compass with useful information about
the product’s contents
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STRATEGY SUMMARY
Defining marketing strategy involves two key activities: “selecting a target market and
determining the desired positioning of the product in the target customer’s minds; and specifying
the plan for the desired activities to reach the desired positioning” Aiming to establish a strong
product in the health segment, and also increase its share on the yogurt market in general, Nestlé
should follow a product development strategy, by launching a new product on a category.

Reaching target audience is very important thing, so Nestle has to choose a right media. First, an
elaborate social media based marketing campaign to create customer awareness and generate
trial. This will include free samplings and deep discount coupons at our “Grand Opening”. The
initial cost of this offer will be more than offset by repeat sales. After this initial campaign, our
marketing strategy will focus on our two target markets separately.

Marketing Mix
Nestle yogurt marketing mix is comprised of the following approaches to product, pricing, place
and promotion.

Product
 It is rich in calcium content leading to a healthy bone structure. And the absorption of
calcium depends on the presence of vitamin D in the body, which is a key ingredient in
the various hormones that enable calcium to pass from the digestive system into the
blood or bones.

 Packaging is also becoming an increasingly important source of consumer information

for customers like nutrients etc
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Price
 Pricing should be in sync with the value creation process of the other elements of the
marketing mix.

 It can use penetrating price. Where the prices are fixed lower compared to competitor.
This helps to gain potential customer.

 Or can use competition pricing method t compete the market leader Campina

Place
 Bulk breaking for retailing segments in which customers can buy 4 units packs and in
single units.
 Can use manufacture to wholesale in wholesaling segment as they are the final
consumer.
 Resort segment can be implemented by a special agent from Nestle in each of the resorts.
He/ she can be trained for up selling and cross selling.

Promotion
 Firstly the company can use TV ads and social media in order to promote initially.
 And then it can have many promotional strategies like Buy One Get One Free or free
sample distribution
 TV advertisements heavily on the time when target audience can be reached like
children. They can be reached at evening time
 Give discounts at initial stages so that it will encourage higher sales.
 By providing wider shelve space so that potential customers can be attracted.
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MARKETING RESEARCH
To support a marketing plan conveniently it is crucial to have information about a particular
market segment, a geographic area, or customer preferences to fundament the decisions that can
make the plan work. Marketing research is the guide to obtain this information before launching
a new product in the market, as it can provide precious insight that can help shape the business
plan and prevent costly mistakes.

It was conducted by secondary research and primary research where all the information was
gained. From all these we knew that for a tropical country like Maldives which is located near
the equator will have a huge market for the product.

The two approaches together gave a global view of the market and the information needed to
support business decisions.
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Financial Projection

Financial Analysis for Nestle Yoghurt

Details 2015 2016 2017

Sales 5000000 8700000 10300000

Media Cost:
TV 580000 340000 340000
Magazines 440000 400000 300000
Outdoors 500000 500000 500000
POP Materials 10000 10000 10000

Promotion Costs: 1500000 1800000 2000000

Consumer Promotions: 800000 1000000 2000000

Estimated Profit 1170000 4650000 5150000

Implementation & Controls

Implementing a marketing plan is not as easy as to plan it. A planner can plan according
to the statistics however to implement a market plan, it should be quite realistic. In this plan, the
following measures are taken in order to make sure that the planned activities are implemented
and controls which can be taken to make the plan realistic.

A budget is allocated for the promotion and marketing activities and will be undertaken
according to the schedule.

A Gant chart is prepared with all tasks assigned to specific departments and to be more
specific, to specific staff. This is a schedule in which all the tasks are specifically assigned with
due dates and durations.
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This marketing plan will be publicized among all the staff of the company so that the
main objectives, targets and positions will be identified by the staff and each one will be clear
about their roles in achieving the objectives. Also, within the first month of the introduction, all
staff will be trained and informed in rotating sessions of their expectations and roles and
responsibility.

Periodical Key performance indicators will be introduced into the work environment,
where each staff is apprized. Staff will be assigned with targets and at the end of each month; the
targets will be assessed and apprized. Improvements needed will be communicated and changes
will be brought with the coordination of senior management.

An IT based software system will also be introduced so that the orders from the
wholesalers go down can be made online and the inventory, sales and other statistics can be
taken in a daily basis. This will allow the company to get in ready beforehand and attend any
issues that can arise.

Evaluation

Evaluation can be done in different aspects. It must also be customer based to get more
effective feedbacks.

Feedback through surveys on retailers and consumers separately. A survey questionnaire

can be prepared and within the first six months this survey will be conducted. And after
collecting the information, it will be processed in order to find out the results. Changes will be
brought according to the results after the senior management meeting.

After the assessing of key performance indicators, or appraisal, individual department

heads and staffs must be brought for feedback and communication. This will allow the staff to
motivate and finish the tasks on time. Also staffs who have reached their targets must be
reinforced.