Political Environment And Social Environment Marketing Essay

political Environment And Social Environment selling EssayWe contribute chosen snuggle as the keep federation that we would learn in this assignment because nest is a great(p) and swell know discriminateicipation in todays era of globalization and precise much slew-oriented, and attached to understanding its consumers needs by means of with(predicate) and through break the world in order to bid the best increases for peoples lives which would top it easier for us to obtain and analyse the learning unless about(predicate) their merchandise componentation, market environs, marketing mix and priming coat of hold close. Further much(prenominal)(prenominal), in all our members, Chia Poh Ling, lee Yue Xhing, Leow Jo Yee and Yvonne Tay argon more(prenominal) familiar with this ships order, which would process to make analysing and discussions go more smoothly.Nestl S.A. is the biggishst nutriment for thought for thought company in the world. It is a S wiss multinational nutritional, pungency food, and health-related consumer goods company headquartered in Vevey, Switzerland. The worlds leading food manufacturer and the market drawing card in both coffee and mineral water, produces a wind lam of results.As the leading food for thought, nutrition, health and wellness connection, Nestl is the provider of the best food for whatever time of day and for whatever time of your invigoration. Nestls carrefours embroil baby food, bottled water, breakfast cereals, coffee, confectionery, dairy proceedss, ice-cream, pet foods and snacks. The main sh atomic number 18holders of worlds largest cosmetics company, LOral is Nestl.The objectives of the Nestl S.A. argon to be recognized as the world attracter in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the citation for financial performance in its labor.1Nestl S.A is the worlds leading nutrition, health and wellness company with an unmated portfolio of more than 2,000 global and local stigmatizes. It has 468 factories spread all over 86 countries, and employs around 330,000 people. Its growths atomic number 18 sold in all(prenominal) country in the world.2Its agricultural run provide assistance to correct the quality and yield of the raw materials it uses.In 1867, the infant began to take the milk food supplement Henri Nestl had developed, and a life history was saved. The product, called Farine Lacte Nestl, was soon marketed throughout much of Europe, and a new stag take in began to take on life.Henri Nestl adopted his own coat of coat of arms as a trademark in 1867. Translated from German, Nestl is universally understood to construe nurturing and caring, security, nourishment and family bonding which is little nest and the now-famous symbol. The company Henri Nestl put ined as it fulfills its lading to Good Food, Good Life.In 1905, the Nestl troupe merged with the Anglo-Swiss Condensed Milk Company, the archetypic al condensed milk factory which opened in Switzerland in 1866. Nestl entered into the milk umber business in 1904 when Peter Kohler Swiss General Chocolate Company produced milk chocolate under the Nestl trademark. The chocolate company later linked the Nestl Group in 1929.While the original business was establish on milk and dietetic foods for children, the new Nestl grew and diversified its slog of products, through acquisitions and mergers with the break away known brands of the time.3Nestl began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and expansion made a move to Kuala Lumpur necessary in1939. Since 1962, withits fit out-back factory in Petaling Jaya, Nestl Malaysia now manufactures its products in 7 factories and operates from its head government agency in Mutiara Damansara. The Company was publicly listed on the KLSE now known as Bursa Malaysia Berhad on 13 December, 1989. Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name much(prenominal) has MILO, NESCAFE, MAGGI, NESPRAYand KIT KAT return become trusted family names and enjoyed for generations.4Market Segmentation, scrapeing and positioningMarket segmentation involves aggregating of prospective debauchers into mathematical groups, or segments that select common needs and forget respond similarly to a marketing action.5 clutch provide a big range of nutritive food and beverages for everyone to practice a balanced and wakeless diet and lifestyle. in that location argon four references of major segmentation variables for consumer markets which include geographic, demographic, psychographic and behavioral. Segment marketing has given the company a classer picture of their clients and competitors so that the company cease come up with a more fine-tuned products and services that satisfied customers needs. finished market segmentation, targeting an d positioning, come on nooky reach out to their customers more well and serve their customers more effectively and efficiently.SegmentationWe found out that snuggle tellify their market by development geographic, demographic and psychographic segmentation based on consumer characteristics. In geographic segmentation, nestle has divided their market into urban areas (cities) and rural areas (villages). Besides that, Nestle similarly uses demographic factor to segment its market, it consists on income level and educational level. The income level and educational level arouse be categorized as small-scale, midriff and high level consumers. asunder from that, Nestle uses psychographic factor to differentiate the market. The segmentation variables that Nestle uses are mortalality, kindly class and lifestyle. Nestle endure groups individuals according to their personalities such as extrovert, strict or energetic. Nestle divides their customers into low social class, medium social class and high social class.TargetingA target market is a voltage market that a company has decides to concentrate its marketing efforts and resources to enter those markets. Nestle segments its market by regions, income level, educational level, personalities, social class and lifestyle. By applying the data and observations that we get, we washbasin simply identify the target market of Nestle.In this typeface, we found out Nestle focuses on urban areas rather than rural areas. The using up of Nestle products is a good deal in cities as compared to villages. This may be imputable to income and educational level. The people in rural area mostly could non afford the products of Nestle as it is considered as luxuries. They do non drop strong sense of health consciousness due to educational background. This makes them the little attractive procureers.For segmentation by income level, Nestle has been targeting on those consumer who earn middle income and high income. P eople exit procure healthy and nutritious food and beverages when they have enough monetary resources to back up them. Those consumers with high income range to be the potential procureers for Nestle because they bring most bread into the company.Furthermore, for educational level Nestle tends to pay more attention to those consumers who has an education background. They will be more concern of their health and they will do more to celebrate it. Through education, we depose reform our knowledge and develop life skills which lav contribute to individual and community health. Those people with an education background are more likely to practice and maintain a healthy and balanced diet as they know health is more authorised than wealth.For personality segmentation, Nestle is targeting consumers who are more outgoing and outdoorsy. It is because they require more energy and nutrition that they have lost during their activities. By adapting nutritional introduce to physical n eeds, they can get the most from their body.6These people wish to maintain their energy level and quick recovery after a feverish day by adapting a balanced diet that provides them with essential nutrients and energy.In addition, from the social class and lifestyle segments, Nestle is targeting consumers who are belong to the higher social classes. They have high purchasing power so that they can afford more luxuries such as Nestles products. These people are the target market of Nestle because they tend to be more health conscious. Nestles products often emphasize on nutritional value and health benefits that can reform ones lifestyle and health issues.As conclusion, Nestle is able to reach out to their customers that it can serve best and most profitably. Through segmentation and targeting market, Nestle can enhance the profits for their company and increase effectiveness in their marketing campaigns.Positioning merchandise positioning refers to the military post an crack coca ineing occupies in consumers minds on important attributes relatives to matched products. Nestle positioned itself asthe world leader in Nutrition, Health and Wellness, trusted by all its stakeholders, and to be the reference for financial performance in its industry.7Nestle uses the slogan Good Food Good Life to enhance lives, throughout life, with good food and beverages.8Nutrition content in their products is the main focus to strengthen their leadership in nutrition industry. To remain their position in that industry, they must identify their competitive advantages against their competitors. Nestle has listed out four competitive advantages of their company that may help their company to compete with their competitors, that are unmatched product and brand portfolio, unmatched research and development (RD) capability, unmatched geographic presence and lastly people, culture, set and attitude9.For unmatched product and brand portfolio, Nestle provide the largest range of food and beverages among all the food company. Their products range from global icons to local favourites that can adapt to consumer needs, gustatory modalitys and preferences, making Nestle as a global brand that relevant to everyone and everywhere. Besides that, it is birthed by unmatched RD capability that improves the products through innovation and renovation so that it can meet consumer needs and enhances consumer benefits. Nestle spent over billions of dollar on its RD just to ensure its consumer gets the essential nutrition that their body needed.Nestle has an unmatched geographic presence competitive advantage due to the number of countries where they presence. They have been in most countries for over decades and successfully created a strong relationship among their brands and their consumers.10This alike heart that they have has plenty of time to study about the local preferences and behaviors to improve their products taste to match the locals preferences. The most impo rtant competitive advantage for Nestle is their people, culture, values and attitude. The Nestle culture created a strong bond between their people with a shared set of behaviors and values into a angiotensin-converting enzyme way of doing business. Their people are determined to deliver their goals as piece as creating value to the public.11merchandising environmentMarketing environment consists of microenvironment (internal environment) and macroenvironment (external environment). It embraces all the marketing team inside a firm and includes all the after-school(prenominal) factors of marketing that affect the teams ability to develop and maintain successful customer relationships with their targeted customer group.12Nestle is using it to improve customer relationship focal point and adapt new strategies when it comes to challenges and opportunities.MicroenvironmentSuppliersSuppliers are the one who delivered the resources needed by the company to produce the products or servi ces to the consumers. Any problems that incurred in supplier can greatly affect the company trades and damage customer relationship. We can divide the suppliers of Nestle into 2 groups that are labour suppliers and material suppliers.13 task suppliers are in charge of the tack on of labour required by the company to optimize their production level. Labour strikes and labour relations are the most important factor to maintain labour satisfaction for company to improve their efficiency. For material suppliers, they deal with the materials needed by the company to place the finished goods on rack. The quality of the material is everything that the company focuses on as Nestle is in the food and beverages industry. By maintaining the quality and quantity of these dickens supplies, Nestle is able to produce high quantity product to refer their sales batch and customer satisfaction in the long run.Marketing intermediariesIt helps the company to promote, sell and distribute its prod uct to the final buyers.14The physical dispersal firms design the delivery chain for the company products to reach their final destination. The firms also in charge with the products safety without getting any damage tour storing them temporarily. Marketing service agencies of the company helps to target and promote its products to the right market.15It acts as a communication head between the customers and the company by explaining the features of the product and providing feedback with the help of survey for the company to improve the quality of the product.16Banks and insurance companies are financial intermediaries that help to provide monetary resources and protection to the product and company against risk that may be occurred during the operation of the company. Nestle works together with all marketing intermediaries to ensure their valuable customers have a clear image of their products features. customerNestle sells its goods to reseller markets that provide the goods t o final user at a reasonable profit. Nestle also deals with customer markets which consists of individuals and households that buy a wide range of its products. Nestle works hard on making the product uncommitted whenever the customer needs them to maintain customer satisfaction.MacroenvironmentPolitical environment and Social EnvironmentNestle adhere to the laws and regulations that involve in its activities and the environment. The government may set quotas on the quantity of the products that it can supply and set the come up of taxes that the company must pays in order to cope the business. To achieve a balance between them, Nestle participates in legislative and regulatory discussions between international organizations, government representatives, industry, scientific community and consumer associations.17In 2000, Nestl and former(a) chocolate companies created the World Cocoa Foundation. The WCF takes control of the issues that cocoa farmers facing, which is inefficient f arming techniques and poor environmental management. The WCF aims to increase farmer income, promote sustainable farming techniques, and launch environmental and social programmes.18Economic environmentCustomer purchasing power is majorly affected by a range of scotch factors such as income levels, inflation, taxes, unemployment, exchange rates and mortgage rates19. The disposable income and living standard of a country may bring big business opportunities for Nestle or the former(a) way round.Cultural environmentBefore Nestle start its operation in any country, it mainly focus on studying the societys cultural value, preferences and behaviors. This is because Nestle hopes its products can be accepted by the local with warm welcome and be competitive among some other companies that operating at the same level.20Technological environmentTechnologies are the vital part of Nestle RD. Investment in technology will definitely help the company to reduce production monetary value and im prove product quality. For example, Nestle have developed technologies that allow them to use indispensable vegetable oils instead of partially hydrogenated fats in Maggibouillon cubes and seasonings.21With the help of technology improvement, Nestle can create healthier products across their product range and thus improve health and quality of life in a country. reapingWe choose Nestl since it is a brilliant and well known example of where as the superior quality, patented technology and basically selling directly to consumers and this wholly business is growing rapidly.22The certified Halal status for all Nestl Malaysia products provides trust and pledge that Nestl products are manufactured, imported and distributed under the strictest and tightest hygienic and sanitary groom in accordance, match to the Islamic faith.23The beverages offered by Nestl is milo, a jam jam-packed with the natural goodness of malt, skimmed milk and cocoa for that great chocolatey taste loved by Mala ysians from all walks of life as a unfermented Food Drink. MILO 3in1 offers the great taste of MILO in a more convenient format that easily prepare for your breakfast. Have a delicious goodness of a can of Milo whenever you go to keep energized. There are original, Mocha and Hi-Cal flavors of Milo Can. Bring home the icy delicious taste of the MILO Sejuk, just add cold water, its that easy. Milo UHT, MILO with the same energy-packed, rich chocolatety taste also comes in adept ready to drink packs escpecially during festival.Nestl has employed a wide-area strategy for Asia that involves producing different products in each country to supply the region with a given product from one country such as Nestl produces soy milk in Indonesia, coffee creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for regional statistical dissemination.intersection FeaturesWhy do you like Milo? This is because Milo contain varying features and benefi ts, such asNatural Goodness of malt, skimmed milk, and cocoa.ACTIGEN-E a combination of 8 vitamins and 4 minerals which helps in theoptimal release of energy.PROTOMALT a malt extract with a assortment of different Carbohydrates thatprovides energy and nutrients the body needs24Product BrandingIt is very important and vital because a brand is a term, name, sign, symbol, or design, or combination of these, that identifies the products or services of one seller or group of sellers and distinguishes them from those of competitors.25Branding helps the seller to segment markets, helps buyers and consumers identify products that might benefits them. For example, rather than just offering one general product to all customers, Nestl can offer the different Koko Krunch, Honey Star, Nestle Bliss, Nescaf, Maggi, Nestle La Cremeria, Tropicana, and Kit Kat. In line with the Nestl position as a trusted food, nutrition and wellness company, Nestl also focused on nourishing Malaysians to achieve ov erall wellness and deliver their promise to bring Good Food, Good Life to the people from all walks of life.26PackagingIn todays era of globalization, for consumers, refreshing, ready-to-enjoy drinks are part of an projectile and energetic lifestyle whether at play, home or work. Going beyond healthy refreshment, convenience, and quality, Nestl works hard to ensure that all promotion including drinks packaging respects the environment. In 2009, Nestl was able to save 58995 tonnes of packagingmaterial (paper, board, plastic, glass, metal) through its efforts to prevent food waste, guarantee their high quality.The approach includes many go such asdecrease the volume and weight of packaging materialsusing recycled making material in packaging content wherever vividsupporting local packaging recycling and energy recovery activities luck customer to understand and take action to recycle more packaging27LabelingLabel, is a part of packaging to perform several functions like identi fies the product or brand, describe several things about the product who made it, where it was made, when it was made, its contents, how it is to be used, and how to use it safely, and lastly is to promote the brand, support its positioning, and connect with customers.28Nutritionists and scientistshas corporate tariff through food labeling, like Nestle has provided the details of the nutrients that the average person needs to consume each day, so that consumers could easily understand. The symbols on the auxiliary were designed to show the amount of nutrition contains of Milo.Product Support workCustomer service is another element of product strategy, which can be a minor part or a major part of customer service.29Nestle, one of the worlds largest food and nutrition company, has been a popular food brand in India for nearly a century, which include head office, manufacturing plants and limb offices spread all over India. Nestle offers excellent customer support for their produc ts and if you need any assistance from their customer support team, following information through browsing internet will help you to get in touch with Nestle customer care division easily and more quickly.Approach Nestle customer-care via onlineVisithttp//www.nestle.in/and you can find information about many brands and products like Milk products and baby food, prepared products, beverages, chocolate and confectionaries, yogurts, drinks and so forthIf you have any request, query, interest, concern or complaint, submit the form at http//www.nestle.in/contact_us.aspx.You can submit Maggi related information athttp//www.maggi.in/contact_us.aspx.You can chidehttp//www.starthealthystayhealthy.in/, which is a site special to mothers and new born babies.PlacePlace, also known as distribution and it involves company activities that make the product available to target consumers. It must be as conveniently available as mathematical that the customers want the product and service. Choosing the right product channel of distribution is key to the success of an organization because it will affect the sales volume of a company. This shown that selecting a place is very important and challenging for every company.Distribution ChannelNestle are subject intensive distribution where a firm tries to place their products into outlets as many as possible to meet the needs of consumers whenever. Nestle has developed distribution bring which to make sure the provision of products that the consumers able to purchase it whenever and wherever.30Hence, Nestle attempts to provide as many outlets as possible and expand it. Nestle uses two types of channel intermediaries that are jobber and retailer and it is convenient for Nestle because both channels have a lot of advantages in high number of ordering, piffling period of time to shipment, and have a large number of customers.31 retail merchant and wholesaler as their intermediaries between a producer and consumer where the products from the producer to the consumer through the retailer or wholesaler.32Nestle as the producer and distribute their products to wholesaler or directly to retailer then retailer sells the goods and products to consumer.Location lash-up StoresA small store which is located near a residential area or along the roadside and it usually open 24 hours such as 7-eleven, petrol stations, rest stops, and so on. Consumers can buy Nestle products at the convenience stores because Nestle tries to ensure the availability of products so that the consumers able to purchase it whenever and wherever. Consumers are more convenience and easily to buy Nestle products.SupermarketsA large, low-cost, low- moulding, high-volume, self-service operation designed to serve the consumers gist needs for grocery and household products such as Jusco, Tesco, Carrefour, and so forth. Supermarkets have a huge selection of products available for consumers at low values. So, consumers can choose Nestle products which b ased on their needs then purchase it at low harms because supermarkets offer many choices for Nestle products compare with other small stores.SuperstoresA store much larger than a secureness supermarket that offers a large assortment of routinely purchased food products, nonfood items, and services such as Walmart. Superstores stock huge stocks Nestle products purchasing them in large lots. So, the determines of products are cheaper. Consumers can take advantage of these price savings with buy a lot of various kinds of Nestle products such as Milo, Nescafe, Nestea, and so on. Consumers are saving greatly on time, effort, and money.PriceA product price influences wages, rent, interests, and profits, of course some prospective customers are interested in low prices, where as another segment is more concerned with other factors, such as service, quality, value, and brand image.Nestl estimated and predicted the cost by doing accumulated production as if they produced mass production so it reduced their labored cost and other cost for production process its a big advantages and benefits of the Nestl company who produce large quantity of units. With the help accumulated and estimated the production Nestl Company has a low cost of production and high profit margin and Nestl Company selecting a price method of going rate price because their set near the competitor set. A good example is Nestle juices have a market leader in beverage industry and lastly Nestl set the final pricing related to their market competitors so Nestl price do not have impact on the company policy, and other marketing activities.33Flexible and elastic prices are the key factors of success of Nestl in global market, for example Milkpak world the largest selling brand is being sold out at the same price as that of other lower quality products while maintaining its quality. Their marketing strategy includes a wide range of pricing strategy, and by doing this they can retain and keep their pr oduct rates at a sustainable position. Prices are affordable and have enough money to buy to almost all types of consumers as they have wide range of single product as in the case of beverages, fruit juices are affordable to low economy class and high-priced tin packed beverages are also doing business in the market. mickle purchase discount is also provided at the whole sale markets as well as at the market stores and besides seasonal price variations are also seen, especially in the case of chocolate products, every by upsizing at the same price or reducing the sale price.34Price StrategyPrice strategy is a basic, long-term pricing structure, which creates the initial price for a product and the intended direction for price movements over the product life cycle. There are three type of pricing strategy which is Market-Skimming Pricing, Market-Penetration pricing. Nestle Malaysia at present practicing penetration pricing to market Milo which is away where Nestle charges a relativ ely low price for a product (Milo) at the beginning as a way to reach the mass market.Establishing Price GoalMarketers have two choices whether to use profit towards profit maximization or satisfactory pricing. The trafficker need to have an understanding of trends and changes in the market place to set a goal, mission and vision. If Nestle Milo has decided to go for profit maximization objective, they must be able to afford large amount of investment. It is not difficult to follow competitors pricing but they may not have the best to think about cost, demand and changes in Product Life Cycle. So they have to require a careful and thorough analysis before setting the price.35Price Tactic Diagram34-9c9f2ae321Product Bundle PricingIn United States and Canada,Hagen-Dazs products are produced by Nestl and come in several traditional flavors. The example of price roll up is Haagen-dazs, a company which is famous as