IB387 Marketing Strategies : Nestle Company

Go to Nestle's Australian web site (www.nestle.com.au). Review its latest news and the Peter's brand page to identify recent new-product launches or promotional campaigns. Which segments of the market are these products/campaigns aimed at? Do you think they will be successful? Why or why not?

Activity 3

If a company is interested in estimating the distribution of income in the Northern Territory or New Zealands's North Island, how could it proceed? Be specific.

Activity 4

Visit three web services of fast moving consumer goods (FCMG) companies (for example Unilever and P&G). Is there evidence of a segmented approach or are they mass marketing? Rank the three companies in terms of how well they segment their market and prepare a set of recommendations on how they could segment their market further.

Activity 5

Discuss how worldwide demographic trends are affecting opportunities for international marketing and which industries are set to benefits from the ageing baby boomers.

Answer

Activity 1

1. Safe Kids Worldwide organization is a global non-profit that works in the prevention of childhood injuries. It conducts research, organizes community outreach and facilitates media awareness to support their activities. The organization has more than 500 coalitions in the States and partners in 25 countries(Worldwide, 2014).The mission of the organization is to protect kids from unintentional injuries, the primary cause of childhood deaths in the United States. Safe Kids Worldwide offer services on sports safety, first aid, child passenger safety, and television tip over prevention. The company obtains its funds from collecting contributions, gifts and grants and through fundraising events.

2. Billabong.com is an organization that implements marketing concepts analyzing the requirements of the customers. The company strives to supply the quality products that will satisfy the customers’ needs(Terry-Armstrong, 2014) .It uses the website to display the variety of goods and services that they offer to their customers. This company utilizes marketing concepts such as product concept and marketing concept. The company though sell their products at relatively high prices, their products seem to be durable and of high quality. The company offers a variety of information to their customers concerning the costs of their products and their terms of payment. It has designed products for men and women that suit consumption in their respective countries.

References

Terry-Armstrong, N., 2014. Billabong: A company in the financial crisis. 2nd ed. Auckland: Allen & Unwin Books.

Worldwide, S., 2014. Safe Kids Worldwide. 1st ed. Dunedin: Activity press.

Activity 2

Nestle Company deals with foods such as chocolate, ice cream, milk products such as milo and also gives recipes. The company provides national advice on the consumption of different varieties of food such as carbohydrates, proteins, and vitamins.  Recently, Nestle has launched new products such as Dark chocolate and Nescafe. The company aims at serving customers globally and provide products that are available in different packages at different costs. Mainly, more products Nestle offers primarily target the youth and children, for instance, chocolate. The company is likely to succeed using this market segmentation because youth and children make up the majority of the population. This segment is also the most extravagant and an individual in this segment is likely to spend more than the aged people. Peter's ice-cream is a brand based in Australia that deals with the production of subsidiary food products. The company was founded in 1907 in South Wales (Nestle, 2016). The Nestlé’s Peters brand page displays products such as peters ice cream, peters giant sandwich and peters original party cake.  The brand has continued to succeed and attracted loyal customers who are ice cream lovers. The Nestle Company has incorporated the Peters brand in its products, and this will aid in the marketing of such products that have good reputation using Nestle marketing strategies of segmentation.

Reference

Nestle, M., 2016. Food industry funding of nutrition research: the relevance of history for current debates. 3rd ed. Auckland: Activity press.

Activity 3

The company collects population data on robust estimates and population characteristics at national and regional levels in New Zealand. The northern territory is a smaller area and can be a sample observation that yields more accurate data. The appropriate approach should first involve estimating the area level relationship of income and its auxiliary variables. The extra variables are values of proportion concerning to every individual or household in the area, determined by the administration which provides the census data in the island. The household includes information concerning its sources of income. The information about the income is collected through administering questionnaires on household income (Ferguson, et al., 2016) (Ferguson et al. 2016). Four variables are investigated in household income that gives information about the cost of housing, size of household income and composition of income. These are gross household income per week, net weekly income, and net household income per week before housing cost and net household per week after housing cost.

The company may interview others in selected households using sampling techniques. The information gained can be used to compute the total income. An average income per household is determined, and the amount multiplied by the number of households in the region. 

Reference

Ferguson, M. et al., 2016. The comparative cost of food and beverages in remote Indigenous communities, Northern Territory, Australia. 2nd ed. Wellington: Atuanui press.

Activity 4

Coca-Cola is among the companies that lead in manufacturing, distributing and marketing of beverage. The company deals with more than 400 different product lines and a total of 3500 mixes of products. Coca-Cola Company has organized its market segment according to geographic, demographic and psychographic basis.

McDonald’s company is another that lead in the global foodservice retailer with over 35000 restaurants in many countries worldwide (Gibson, 2015). McDonald’s has used market segmentation strategy by dividing the population into groups considering geographical location, demographic data, and behavioral as well as psychographic information of customers they serve. The company uses the flexible type of commodity positioning that suitable for the target market. 

Pepsi Food Company also deals with fast-moving goods. It is an American multinational corporation that sells with snacks, food, and beverage (Balakrishnan, 2015). The company targets more market segments simultaneously with different packages of products and services. It uses market segmentation such as geographic, behavioral, demographic and psychographic market segmentation. Ranking the companies according to how well they segment their market, Coca-Cola company come first, followed by Pepsi then McDonald's.

The companies should also consider the rising concern about human health on the consumption of their services. For example, McDonald's company should advise on the use of fatty food delegacies.

Reference

Balakrishnan, M., 2015. PepsiCo: The role of packaging in brand activation. 2nd ed. Dunedin: Adventure Wroks Press.

Gibson, O., 2015. Coca-Cola and McDonald’s lead calls for Sepp Blatter to stand down.. 1st ed. Wellington: Activity press.

Activity 5

Worldwide demographic trends include the changes in the socio-economic status, birth rate, family size, average age of marriage among others. These trends affect the decisions of businesses, governments, non-profit organizations in conducting marketing and economic research and formulation of policies. A successful business first collects information about the market needs and set to produce products best for the market.

The percentage of middle-class household is shrinking especially in America. The financial gap between middle class and upper class has widened. This gap affects their ability to consume expensive products and hence international marketing strategies. Businesses should, therefore, consider the percentage of people from the middle-class household to provide affordable products (Cross, et al., 2015). Religions at times also dictate production consumption. This aspect is going to affect the marketing of products globally, and the people of the world are going to exhibit the same cultural characteristics soon. 

The aging population is increasing globally the majority of whom are aging baby boomers (Groden, et al., 2017). Their needs would prompt industries such as building and construction, health industries, transport and financial planning to offer more services. The retirees need homes to own, health issues to manage, tours to travel and money to manage. Marketing experts need to plan for the new demands arising from the increasing aging population.

References

Cross, J., Belich, T. & Rudelius, W., 2015. How marketing managers use market segmentation. 1st ed. Queenstown: Activity press.

Groden, S., Woodward, A., Chatters, L. & Taylor, R., 2017. Use of complementary and alternative medicine among older adults: differences between baby boomers and pre-boomers. 4th ed. Wellington: Book Design.