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Khái quát chiến lược kinh doanh của tập đoàn nestle MKT260 Acknowledgement Assalamualaikum WBT, Alhamdulillah, we are very grateful to the Almighty God, who have bestowed us the will to complete our assignment about “Nestle Milo” which is connected to our scheme Introduction to Marketing, MKT260. Here, we would like to take this opportunity to express our highest gratitude and compliment to the people who are involved directly or indirectly in this assignment especially our beloved Miss Najihah bt Abd Rahim which is our MKT260 lecturer In this assignment, we examine that the important of the marketing strategies for the international firm like Nestle. Among the BBC global top 30 brands, we have analysis of how a product’s sales are driven by brand name, weighted for market leadership, stability and ability to cross national borders. The consumers are not aware of their origins. Beside, the product’s prices usually reflect its proper value in the eyes of the consumer. It’s always not a good idea that the strategy of offering lower prices is to penetrate the advantaged economies and to pay the costs for the unknown quality of their goods. Thank you to all people who are involved in making our assignment a successful one and may all your help and effort are blessed. Thank you (Muhammad Salihin Jaafar) ( Anisha bt Ramli ) ( Nur Adilah bt Md Zain ) (Nurul Zamieza bt Ahmad) 1 | P a g e MKT260 Executive summary The main aim of international marketing is to provide solid foundations that are useful for explanation, prediction and control of the international business activities. We are not an expert in nestle but we have analysis the firm’s global marketing strategy in the field of their brand awareness, products and system design, product positioning, advertising, packaging, distribution and customer service. We have notice that the firm utilized generic marketing strategy such as low cost leader in business, differentiated good and services satisfy the needs of customers through a sustainable competitive advantage. International marketing refer to using common products, price, promotions and distribution program on a world basis. My secondary data is the most of important for our research and I contributed in the area such as group or segment those types of potential customers that are most likely to benefit from their product line. That is why we effectively utilized the periodical articles which can be a great source of product, marketing and industry information. (Periodicals refer to magazines, journals and newspapers. Although we are living in an electronic age, there is still much information that can only be or best be found in print resources or books at library. Nestle management level is a decentralized as possible, within the framework compulsory by fundamental policy and strategy decisions requiring increasing flexibility and operational efficiencies, as well as the group-wide need for alignment and people development, may also set limits to decentralization. 2 | P a g e MKT260 Introduction Nestle SA , the world’s leading food manufacturer and the market leader in both coffee and mineral water, produces a wind range of products including prepared dishes and cooking aids, milk-based products, cereals, instant coffee, pharmaceuticals and baby foods. Nestle SA is a publicly owned company, with subsidiaries across the world. It website addresses in 104 countries. It is also the world largest food and beverage company with $71 billion in annual sales and almost 230,000 employees around the world. It markets some 8000 brands that include instant coffee. Remarkably, its products are sold in every country in the world, including in North Korea. Nestle coat of arms, the bird’s nest, which refers to his name, has become a symbol for the products being a safe care for their consumer product safety and quality. Research and development based innovation capacity and strong brands are priority for Nestle. Objective of NestleNestle business objective is to manufacture and market its products in a way that creates value that can be sustained over the long term for shareholders, employees, consumers, business partners and national economies in which Nestlé operates”. The aim of the creating values for the company include with improve business condition for the firm. To obtain more reliable and high qualify source of raw materials, improved government functioning and regulatory, employed skill and loyal workforce and superior quality products which successfully complete. 3 | P a g e MKT260 Nestle Corporate Philosophy • Be the leading multinational company in food, nutrition and wellness. • Produce and sell world-class products of the highest consistent quality, reliability and convenience based on business excellence principles throughout our operations. • Maximizes the use of good quality local raw materials. • Be an exemplary employer with a progressive human resource and social policy; with a management style that is based on “Management Commitment and People Involvement” • Be a responsible corporate citizen, fulfilling all obligations to Government, shareholders, customers, communities and consumers. • Protect the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resources and save energy. • Guarantee that all products manufactured, imported and distributed by Nestlé Malaysia are certified HALAL by authorised Islamic certification bodies. • Deliver shareholder value through the achievement of sustainable and profitable long-term growth. Nestle Marketing strategy The firm applied a progressive human resource and social policy; with a management style that is based on management commitment and people involvement. 4 | P a g e MKT260 Moreover, the firm had responsible corporate citizen, fulfilling obligation to government, shareholders, customers, communities and consumers. Protest the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resource and save energy. For example, guarantee that all products manufactured, imported and distributed by Nestle Malaysia are certified HALAL by authorized Islamic certification bodies. Perhaps, the firm delivered shareholder value through the achievement of sustainable and profitable long-term growth. It’s a wide area research the branding. Branding strategy is corporate. Part of the branding strategy is the brand plan for each product. This is an integrated strategy. The brands of Nestle are a key strength but the executive levels are very aware today that brands alone are not enough to win. From its beginning, Nestle developed its business internationally and became aware of the fact that food products have to be closely linked to local eating and social habit. That is why Nestle form the very start has always shown respect for diverse cultures and traditions. Nestle activities to integrate itself as much as possible into the cultures and traditions where it is present, adding also to the local environment its own set of values. Therefore, Nestle embrace cultural and social diversity and does not discriminate on the basis of origin, nationality, religion, race, gender or age. Furthermore, Nestle believes that is activities can only be of long term benefit to the company if they are the same time beneficial to the local community. Precisely, the environment is changing very rapidly and in particular customers are looking for answer to their concerns. To our opinion, global thinking and strategies can best be expressed through local action and commitment as showed as Nestle Malaysia. And of course, Nestle applied “think globally act locally” as well as thinking out of the box idea in their product and distribution with the help of strategic global marketing. Nestle Malaysia Nestlé 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 in 1939. Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now 5 | P a g e MKT260 manufactures its products in 8 factories and operates from its head office in Petaling Jaya, and 6 sales offices nationwide. Introduction to Milo Milo is a milk beverage with chocolate and malt, produced by Nestlé and originating from Australia. It was developed by Thomas Mayne in 1934. Milo is also manufactured in other countries, including Singapore, Malaysia, China, Thailand, Indonesia, Philippines, Vietnam, New Zealand, Hong Kong, India, Japan, Jamaica, Trinidad & Tobago, Chile, Colombia, Peru, Nigeria, Kenya, Ghana, Papua New Guinea, South Africa, Sri Lanka, Syria and Taiwan. The name derives from the famous Greek athlete Milo of Crotona, after his legendary strength. Milo is added to hot or cold milk to give it a malted chocolate flavor and extra texture. When combined with cold milk, it retains the gritty texture of its raw state. Milo can be stirred into steamed milk or hot water to create something similar to hot chocolate or cocoa. Sugar can be added to the Milo beverage, but many people enjoy it without the addition of sweeteners, appreciating it for its subtle chocolate flavor. Another possible use is making a normal cup of cold Milo and microwaving it for approximately 40–60 seconds. This gives the Milo drink a biscuit cover on top. Another popular use is to sprinkle it on ice cream, especially vanilla ice cream. Milo can also be sprinkled on breakfast cereals. Milo is often the favored beverage for the Tim Tam Slam. Also very popular is the “Magic Milo” which involves adding Milo to a small amount of milk with sugar and whipping it to increase the amount of air in the milk, thereby doubling it in size. Then one adds small amounts of hot water and milk in layers stirring each new layer vigorously to maintain its lightness. A final layer of whipped cream topped with extra Milo or chocolate sprinkles. This is more of a ‘warm’ beverage rather than a ‘hot’ one and is a more popular version of hot Milo for children. Milo manufactured outside Australia is customized for local methods of preparation. In Ghana, Malaysia, the Philippines, Singapore and Indonesia, it is mixed with hot or cold water instead of milk, with the instructions “Add milk and sugar if desired.” Other countries the packaging is green and has people playing sports on the tin. There is an organization called “Milo Cricket” which operates in most areas by 6 | P a g e MKT260 volunteers, children participating are given small packets of Milo to eat or drink. The commercials and taglines are “Go and go and go with Milo” and a popular commercial is 4 generations of women on a skipping rope singing “and my mum gave me Milo to go and go and go” and the line “I need my Milo Today”, because it has a low glycemic index. The packaging of Milo tins in Singapore are also green and also have people playing sports on the tins. Milo is very popular in Malaysia, where the brand name is synonymous with chocolate flavored drinks: Milo has a 90% market share in Malaysia (not the often quoted 90% worldwide share of Milo consumption) [4] , and Malaysians were said to be the world’s largest consumers of Milo. [5] This is because Milo was once used as a nutrient supplement when it was first introduced in the country, and has thus gained a reputation as a ‘must have’ drink for the old and the younger generations. Milo manufactured in Malaysia is made to dissolve well in hot water to produce a smooth hot chocolate drink, or with ice added for a cold drink. Milo in Malaysia is served in kopitiams and mamak stalls offering versions such as “Milo Dinosaur” (a cup of Milo with an extra spoonful of powdered undisclosed Milo added to it), “Milo Godzilla” (a cup of Milo with ice cream and/or topped with whipped cream) and “Neslo” (combined with Nescafe powdered coffee). It gained popularity in Singapore soon after. Milo in Hong Kong Differentiation between Milo 1940’s Milo tin Product Life Cycle At Nestlé, they apply a product life cycle approach involving their partners from farm to consumer in order to minimize the environmental impact of their products and activities. 7 | P a g e MKT260 Their aim at all stages of the cycle is to use natural resources efficiently, to favor the use of sustainable-managed renewable resources and to target zero waste. In this way, they intend for their brands to stand for environmental sustainability. Nestlé’s initiatives aim to improve the environmental performance of the products along their entire life cycle. These include sourcing sustainable raw materials, reducing energy consumption and minimizing air emissions by moving to different fuel types. Nestlé invests an average of CHF 40 million a year to reduce its air emissions. Another significant step in the value chain is transport. Nestlé has initiated a pilot with Schenker, an international logistics company, to evaluate the effect of different types of transport, distances driven and fuel type used. Through internal research and development at Nestlé there have also been significant advances in the environmental impact of refrigerants and packaging. Without compromising product quality there was a reduction of 392 000 tones of packaging material between 1991 and 2008. Product Line width Nestle Malaysia product consist of 6 main aspect which is beverage, milk, prepared food, ice cream, cereals and chocolates. There are varieties of each product lines for each type of products. They also will upgrade their product lines through the changing of the lifestyle form time to time. Product Mix Width Beverage Milk Prepared Food Ice Cream Cereals Chocolates Milo Nespray Maggi Drumstick Honey Star Kit Kat Nescafe Neslac Buitoni Trophy Koko Crunch Smarties Canned Drink Mat Kool Cookie Crisp Milky Bar UHT Nestle Crunch The Marketing Mix of Nestle Marketing The following consideration included in our marketing analysis of the Nestle. • Product 8 | P a g e MKT260 • Place • Promotion • Price 1. Product Product item Nestlé seeks to earn consumers’ confidence and preference and to follow and anticipate consumer trends, creating and responding to demand for its products. Therefore Nestlé is driven by an acute sense of performance, adhering to and favoring the rules of free competition within a clear legal framework. We choose Milo since it is a brilliant example of where as the superior quality, patented technology and basically selling directly to consumers and this whole business is growing rapidly. Milo has been around for decades, and it is one of Malaysian favorite chocolate malt drink to everyone. Malaysia also is the world’s largest consumers of Milo. Product item depth Milo is a very well known product and Milo also has variety of product items under the same brand which is Milo. These are the type of Milo that Nestle have been produce. • The original Milo The original Milo contain nutritional icon on each pack reinforces the nutritional properties that consumer can get from every cup of nutritious and great-tasting Milo. • Milo Fuze 9 | P a g e MKT260 Milo Fuze comes in three variants and is the easy tasty way to enjoy nutritious Milo with Actigen-E and other nutritious ingredients. It is vary by 3 types which is cereals for hunger pangs, 3in1 for consumer convenience and better taste, and last one is high calcium for stronger bones. • Pack Extra Nutrition with Milo A healthier choice in new design UHT pack. Milo UHT packs, the ready-to-drink format of Malaysia’s best-known nutritious chocolate malt beverage is nutritious and healthier in a new attractive design. It contains all the nutritional benefits of Milo such as ACTIGEN-E and PROTOMALT in a convenient pack. • Milo Wafer bar Milo Wafer bar made with layers of crispy wafer and sprinkled with Milo kibbles on top. It contains ACTIGEN-E and it has 3.6% of our daily energy needs (based on 2000 Kcal). It will also tantalize children senses. Product nutrition 10 | P a g e […]… good for digestion Milo also contains a lot of nutrition which does not contained in the other competitor’s product such as Oligo Coco Oligo Coco is just a normal chocolate malt drink and they do not have nutrition such as Milo 17 | P a g e MKT260 Add more items Besides produce Milo for beverages, Nestle Milo also have create new product item such as Milo ice cream, Milo wafer and Milo energy bar This… price at the nearest Milo s branch Besides that, Milo can make a different packaging style They should combine all their products in one pack that include mini pack of Milo powder, Milo energy bar, Milo fuze, and so much more By doing this style of packaging, Milo can promote all their delicious product to the customer so that they are able to try all the product that produced by Milo If they interested… over the Product Life Cycle Nestle Milo are aware about higher price If they set higher price, they have to produce a good quality of Milo Besides that, the competitors also will influence the pricing strategy For example, if Nestle Milo introduces a new product that same with competitors, the price will be restricted and close to the price of competitors Unless, Nestle Milo can differentiate and convince… sponsored and giving out free Milo drinks It is really effective since it can instill relationship between product and consumers • Internet Nestle have their own website which is www .nestle. com and there are more than 100 countries are registered under this website Nestle also have their own website for each countries that is under Nestle including North Korea and Israel Uniquely, Nestle also have their own… buy 1 KG pack of Milo, they will get 1 Juara Cup This kind of promotion will attract all the kids and even the adult to buy it • Buy MILO 400g free 50g This promotion is for customer that likes to save their money This is because Milo s have make a promotion which is they will get free 50gm with every purchased of Milo 400gm pack • FREE 1 MILO sporty tumbler with every purchase of MILO 1kg pack This… attract children to drink Milo By doing this transformation Milo will be more up to date and can build loyal customer and as well as to be more different than their competitor such as Oligo Coco which are using the same green color for their packaging Milo product enhancement Milo has realized and able to fulfill customer needs, so that they produce 3 in 1 Milo from the normal powder Milo This is for the… Information in Milo Packaging 15 | P a g e MKT260 16 | P a g e MKT260 Product Differentiation Improve the packaging Nestle Milo have improve the packaging by replacing the old one with adding the interesting picture Before this, Milo packaging only have their brand name, but nowadays Milo have been through the transformation by using faces of national athletes to attract more customers Besides, Milo also… creative slogan in order to make sure consumer will remember Milo Type of Advertising Media used by Nestle • Television Nestlé applied this source for Milo product, which in the commercial break is about a boy or a girl that are more energetic in their daily live if after they consume Milo Also shown in the commercial break is the boy’s parent provide Milo for their children This strategy is to attract the… need a short time to make it This is because 3 in 1 Milo already has added creamer and sugar for consumer convenience Even kids also can do it by themselves because it already complete and they do not have to add anything Add more ingredients To differentiate Milo from other product they have produce a healthy Milo by adding cereal in Milo Fuze This Milo is very suitable for consumer that concern about… choices to buy Milo product and as well as positioning Milo as an established brand with a lot of choices than the competitors such as Oligo Coco and Ovaltine Product recommendation For product recommendation, Milo can make their product more variety by adding new flavor In our opinion, Milo should add some vanilla flavor in order to make their product line more variable Other than that, Milo also can . &quot ;Milo Dinosaur” (a cup of Milo with an extra spoonful of powdered undisclosed Milo added to it), &quot ;Milo Godzilla” (a cup of Milo with. Bar UHT Nestle Crunch The Marketing Mix of Nestle Marketing The following consideration included in our marketing analysis of the Nestle. • Product 8 | P

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