Segmentation Targeting And Positioning Of Nestle Marketing Essay
Nestles promising to providing quality products to Singapore people. dates back more than 90 years ago trading MILKMAID condensed milk by Anglo-Swiss Condensed Milk Company.
After the some years it has been provided in Singapore for Singaporeans, Nestlé has won the trust of Singaporeans for being a food maker with the maximum safety and quality measurement with this products.Â
Nestlé started its business and operation in Singapore in 1912 and has become successful in this country, largely as a net result of its operating principles. These seek primarily to:-
Offer Singaporeans the mostly safety and quality measurement in our food and beverage products in Singapore.
Nestle Utilized the most new and up-to-date advance technology and its accounted science-based experienced in the manufacture of milk food products.
Nestle takes its broad responsible partner as a corporate citizen member by availability in community and social projects that contribute to the speedy development of the country.
Nestlé brands are household names in Singapore and very well-known company. These include MILO, NESCAFÉ, MAGGI, NESTLÉ NESVITA OMEGA PLUS ACTICOL, KIT KAT, PURINA, FRISKIES and many of other market competitors' in their product categories.
Â Segmentation, Targeting &Â Positioning ofÂ Nestle.
Nestle is global company of milk products and nutrition, chocolates', beverage, cateringÂ andÂ manyÂ typeÂ ofÂ confectionaryÂ goods.Â ItÂ hasÂ itsÂ millionsÂ ofÂ customersÂ worldwide. TodayÂ Nestlé Singapore Limited is on good positioned to grow through its business policy ofÂ constantÂ innovationÂ andÂ renovation,Â concentratingÂ onÂ itsÂ core competencies and commitment to better and high quality, with the aim of availability to theÂ best quality food to the people of Singapore. In the report we have brought aÂ discussion about the marketing segmentation of Nestle, their targetÂ 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 greaterÂ facilities by the aggregate of different products or marketing mixes is shown in market segmentation of Nestlé. 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 makingÂ 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 Nestlé 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 Nestlé 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 twoÂ brothersÂ namedÂ GeorgeÂ PageÂ andÂ CharlesÂ Page.Â TheÂ firmÂ reenter significantly during the First World WarÂ though it fall in debt, a banker provide facility and help it to less its debt. After the 2nd World WarÂ , the company eventually increased its providing beyond its firsty condensed milk and infant formulaÂ products. The 1920s saw Nestlé's first enter into new products, with chocolate theÂ Nestlé'sÂ secondÂ big importantÂ activity. NestléÂ felt the effects of World War IIÂ 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 phaseÂ for Nestlé. Growth speeder and companies were taken. At this time the company operates in 86 countries around the world and hired manpower around 283,000.
TheÂ StrategicÂ planÂ providesÂ theÂ company'sÂ overall mission and objective and new hpopes to achieve company's views. Through market segmentation, targeting and positioning the company takes decisions which customers it will provide and how. The company also makes designs a marketing mix made up ofÂ factors under its control product, price, place,Â promotion.
Strategy of Nestle in Singapore:
Â Nestlé's required strategy is to cover only the developed area of Singapore.
That's whyÂ theyÂ areÂ doingÂ theirÂ activitiesÂ inÂ mainÂ andÂ metropolitanÂ citiesÂ ofÂ Singapore. They want to put babies and children healthy and ensure theirÂ sufficient nutrition.Â That'sÂ whyÂ main and large rangeÂ ofÂ theirÂ productsÂ areÂ babyÂ milk foodÂ products. They also target new age generation to build a strong relationship byÂ providing various eatable products. In the information, we are going to point outs of Nestle is to segment, target theÂ potential customers and to positioning of their profitable products. TheirÂ segmentations, targeting, positioning process are given below. Nestle want to change customers toward their products.
That's why they are offeringÂ newÂ productsÂ regularly.Â TheyÂ alsoÂ provideÂ manyÂ social competitions for babies to go theirÂ mindset. In this report we are looking to focus of Nestle Singapore is to segment,Â targetÂ theÂ majorÂ customersÂ andÂ toÂ positionÂ ofÂ theirÂ profitable products. The relevant information is given below:-
The marketing concept asks forÂ understanding customers' requirements and satisfying theirÂ requirements and needs better than the others do. But many customers have different requirements and it hardly chance to satisfy all customers by treating them same just like. Market segmentation is the searching of part of the market that are not similar from other. Segmentation provides the firm to good satisfy the needs of its major customers.
1.Â ClearerÂ understandingÂ ofÂ theÂ requirementsÂ andÂ needsÂ ofÂ selectedÂ customerÂ groups.
2. More effective positioning in this place.
3. Greater precision in selectingÂ promotional Transportation vehicles and techniques.
Bases forÂ Segmentation:
Users markets can be divided on the basis of these customer characteristics.
1. Geographic area
2. Demographic area
3. Psychographic area
4. Behavioral area
Nature: Nestlé Singapore segmented its market for Nescafe IceÂ depends on the geographic weather: warm hot and cold.
Â Nescafe Ice: A coffee which may be consume with ice. During warm season consumers making this coffee with normal, chilled or cold water mixing ice cube toÂ bring freshness in their body.
Nestlé segmented market area for its main products based on the genration. ForÂ the products Cerelac, Lectogen, Koko Krunch, Nido, Nestle divided the market area segment for new born baby andÂ children of different ages.
It isÂ nutritious milk specially makes for children 2 years onwards. It includes 25 minerals and vitamin D which helps child's growth.
: Nestle also provide cerelac for new aged baby. It contains milk and rice mixture for less than oneÂ year's baby. It fulfills baby's proper nutrition in foods.
Nesquick, Koko Krunch
: above are chocolate milk for babies. NesquickÂ and Koko krunch contain child's required growth. It's very sweet and delicious and also includes vitamin protein, mineral.
: Nestle Singapore brings full cream milk powder in the country. It gives baby required nutrition. Lactogen one is for childs whose age not more than 6months and lectogen 3 is for babies whose ageÂ is below 1 year.
: Nestle segmented their market based on customer's earnings in an effective way.
:Â NestleÂ segmentedÂ theÂ marketÂ basedÂ onÂ theirÂ user's occupation.
: This product is for that type of persons those who work busy and hard and requireds more freshness. Both the male andÂ female who need more caffeine and this type of needs Nescafe classic is for them.
LifeÂ styleÂ andÂ personality:Â NestleÂ SingaporeÂ providesÂ KITÂ KATÂ theseÂ people who really want to taste and enjoy chocolate. Nestle Nescafe 3 in 1 is for specially those users and customers who are really ingaged in activity and do not have more time. They can use by taking Nescafe 3 in 1.All the things are mixed sugar, milk and coffee.
Based on benefits Nestle Singapore segmented their market in an efficient way. So they make available Cerelac for those customers who want moreÂ profit from the product. Cerelac includesÂ a high nutrition for baby's whose age is less than 1 year. Two very important things rice and milk remain added in cerelac. On the other part, cerelac includes vitamin, more mineral and all major useful nutritious elements for babies.Â
Market segmentation reveals the firm's market opportunities. Then the firmsortÂ marketÂ targetingÂ byÂ evaluatingÂ theÂ many typesÂ marketÂ segmentsÂ and deciding which and in which quantity segments it will target.
Â Nestle examined the different type of market segments on the basis ofÂ segmentÂ sizeÂ andÂ growth,Â segments,Â structuralÂ attractiveness,Â and Nestle objectives and resources and decided to introduced their operation whole of Singapore country. Nestle distributes their target market because of having unique requirements and wants.Â Nestle Singapore selected theirÂ target market into two market coverage policy:
: Nestle also choose the differentiated marketing. He provides different product for many segments based on different ages, occupation, season and climate of Singapore.
Nescafe 3 in 1
: Coffee for customers who are busy in life.
KokoÂ Krunch,Â NesquickÂ
:Â ChocolateÂ milkÂ whoÂ wantÂ toÂ getÂ tasteÂ ofÂ real chocolate.
: Cold coffee for the customer in hot and warm weather.
Through concentrated marketing, Nestlé earned a strong market position because of its very good knowledge of consumer requirement.
In thenichesÂ itÂ servesÂ andÂ specialÂ reputationÂ itÂ acquires.Â NestléÂ specializesÂ inÂ producing baby foods. It offers nutritious milk powder Lectogen 1 forÂ babies whose age is less than 7 months and lectogen 3 for babies whose age is not more than 12month. It also make available baby nutrition cerelac for baby more than 12 months.
ByÂ creatingÂ product,Â service,Â channel,Â peopleÂ andÂ imageÂ differentiationÂ Nestle arrives the consumer touch point more easily, effectively & efficiently in comparing with other competitors in the highly competitive food processing market.
: Nestle brings a many ofÂ product for target customers.
Â They make available 25 types of minerals in Nido for children.
It also arranged Cereals'Â andÂ Lactogen 1Â &3Â forÂ newlyÂ bornÂ babyÂ exclusively.
Â NowÂ the doctors says these products for child's to their parents for great & maximum nutritionÂ NescafeÂ isÂ aÂ productÂ whichÂ containsÂ 4Â typesÂ ofÂ categories.Â TheyÂ offerÂ Â Nescafe ice for hot and warm weather, TheyÂ provideÂ MaggiÂ includingÂ MaggiÂ instant;Â MaggiÂ 2Â minutesÂ which Includes and contain various minerals, vitamins and nutrition's.
:Â NestleÂ reachÂ theirÂ productsÂ toÂ theÂ customersthroughÂ theirÂ experiencedÂ marketÂ salesmanÂ andÂ transportation.Â SoÂ thatÂ theirÂ Â products.
are much easy toÂ their customers.
Nestlé's logo isÂ totally different from others competitors that are greatly choices by its users.
For that way customer easily choose them in theÂ market which is another effective benifits for Nestle products.
The company has a large number of manpower's that are highly educated and trained. In Singapore, 400 employees are employed in market Company chairman; They are running thisÂ business successfully for a long time.
AnotherÂ advantageÂ forÂ thisÂ companyÂ isÂ betterÂ service for its respective users from its competitors. They provide 24x7Â hotÂ lineÂ service.Â HighÂ qualityÂ checkingÂ isÂ providing forÂ its customers. Its marketing dept. and public relation dept. are working forÂ finding out customer's new needs andÂ response toward their nestle products.
Positioning Statement BabyÂ Products
ToÂ babiesÂ whoÂ areÂ deprivedÂ ofÂ properÂ nutrition,Nido,Cerelac,Lactogen are the very nutritious milk Product that provide you more use full nutrition different from any other brand because these includes different types of vitamin, mineral etc.
GOOD FOOD for GOOD LIFE
The advent of consumer food products has brought an immense change in the field in the consumer's food habit. Nestle has done well to adding itsÂ customersÂ loyaltyÂ operatingÂ asÂ aÂ marketÂ competitor'sÂ inÂ its industry. NestleÂ isÂ oneÂ ofÂ theÂ largestÂ foodÂ processingÂ company. Their products and quality mainly includes on their experience and efficiency.Â Nestle provides quality that leads to good business growth and good development.ItÂ hasÂ segmentedÂ theÂ marketÂ basedÂ onÂ certainÂ clusteredÂ preferencesdeploying multi-stage segmentation approach to meet individual requirements ofÂ the customers. Offering brand new products would also close its old products gaps to a great extend promise satisfaction and loyalty. In our report, we contribute to make available the segmentation, target marketing andÂ positioningÂ strategyÂ ofÂ NestleÂ andÂ suggestÂ some recommendations based on the marketing procedure.
Â IMC Stratgies
Promotion activities perform a major role in re-launching any product. Addition in target market is make sure by personal selling. It adds persons in small stores describe the benefits to important customers about importance of milk in standardÂ packed form. Awareness performs the most important role. They should taste housewives on many places. Because they are the main servers of such kind ofÂ nutritional diets toÂ their members of family.
There are many promotional methods like personal sales, advertisement's, salesÂ promotions, public relations etc.Â but the method accepted byÂ Nestlé for introducingÂ Nestlé UHT Milk was advertising, outside printed media for advertising like, hording board, newspaper, posters outdoor etc.Â NestléÂ seeing theÂ oldÂ customerÂ ofÂ theÂ imported brandsÂ andÂ potentials customers via its advertising promotions. In their advertisement, Nestlé mostly focus the small kids who are the majorÂ Â portion of our population and milk and such kinds ofÂ ProductsÂ areÂ mainÂ requirementÂ ofÂ enhancing ability inÂ childrenÂ thatÂ theÂ reasonÂ Nestle launchedÂ NesvitaÂ MilkÂ product especiallyÂ designedÂ forÂ youngerÂ childrenÂ because addition of calcium diets inÂ routine diet chart is mainÂ requirement. To remind the consumers about the nestle, Nestlé also made some special platform for retailers and hold them on their shops and as make difference to other milk providing companies running in the country Nestle shows always attracting messages to feels customers that always drink milk but only IÂ real form .
RE - LAUNCHING
large number ofÂ competitors Nestle takes decisions to re-launch it product with different new packing. It was an opportunity for Nestle to control the market in that a wayÂ that it will introduce. it's all the discrepancies such asÂ shortage, inflation based pricings which given opportunity to the competitors to control the market.
BELOW THE LINE
Below the line includes followingÂ mediums of advertisement.
â€¢ Direct mail to usersÂ
â€¢ OutdoorÂ advertising
DIRECT MAIL ADVERTISING
ItÂ isÂ any formÂ ofÂ advertisingÂ presentÂ directlyÂ toÂ theÂ new comers,Â this can beÂ through the mail, fax, online computer services, sales personnel's, retailers orÂ other means rather than through traditional massÂ media.
Nestle has distributes many types of leaflets, which inform information about
Nestle Milk products, at different outlets.
Folders / brochures
Nestle distributes brochures of their product to their users through internet to make them inform of new research and innovations and products. This helps nestle in adding more customers.
Nestle expenses a big share ofÂ their advertisement budget on the outdoorÂ advertisement in Singapore, which includesÂ
â€¢Painted Billboards at different places
â€¢MMT in various locations
â€¢Vinyl Sheets located in public places
â€¢ They have put on different themes of them, which are presenting different situations in which peopleÂ areÂ usingÂ realÂ water.Â AccordingÂ toÂ theÂ NESTLE theyÂ perform heavy outdoor advertisement to aware people about the presence of their product due to it is a product for which consumer never pre-determined plan to purchase it so to encourage them for the purchase of Nestle Milk Products they have to place billboards.Â BesideÂ thisÂ they rotateÂ theÂ postersÂ ofÂ theirÂ billboardsÂ afterÂ some months the reason for this is that users not interest in those themes when they see it for a longer time so when they exchange them and place the new different one that create the interest among theÂ people.
Transit advertising is a type of public places out of private media that adding bus and taxicabÂ advertisingÂ asÂ wellÂ asÂ postersÂ onÂ transitÂ places, BusÂ terminals,Â and Display at airports
.Types ofÂ transit advertising
â€¢Inside cards in public transports
â€¢Outside posters on Vehicles
â€¢TerminalÂ posters at various locations
â€¢Taxi / bus walls.
Nestle 2010 Creating affordable access to protein [online] Available from: http://www.nestle.com/CSV/CSVinAction/SlideShows/essentialprotein/essentialprotein.htm
Nestle 2010 Press Release [online] Available from: http://www.nestle.com/MediaCenter/PressReleases/AllPressReleases/NovartisMedicalNutrit
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Peter, J. P., Donnelly, J. H (2004).Marketing Management: Knowledge and Skills. 7th ed. China: McGraw Hill Book Co. 145.
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