Nestle Marketing Analysis

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18th Jul 2017 Marketing Reference this

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This is a report as well as a marketing plan about Nestle and its new product Nescafe Menu. The report is about the Halal food leader ― Nestle (Malaysia) and its activity on how they market their products and sustain their leader position in the current market. Moreover, there will be a detail analysis on the current marketing situation which included SWOT, PEST and financial analysis plus the marketing strategies applied by the company in order to domain the market. The marketing strategies will further the discussion by involving the pricing, product, distribution and promotion strategies. However, the main focus will fall on the company ― Nestle Malaysia, the market of soluble coffee, the brand Nescafe and its new launched products. In addition, recommendations and solutions are provided by the author to solve the current scenario and overcome the problems.

Nestlé (Malaysia) Berhad plays the role as the leader of Halal food manufacturer and the first multinational to voluntarily request for Halal Certification of all its food products when it was first introduced in 1996. Nestlé is establish in 1912 and public-listed on Bursa Malaysia since 1989. Currently the biggest Halal producer in the Nestlé world. In Malaysia, Nestlé employs 5000 people, owns 7 factories and 6 sales offices plus one national distribution centre. The head office based in Petaling Jaya, Selangor. (Nestle, 2008)

NestléWorldwide

Nestlé is a multinational company that leading the global food business. It is founds by a Swiss chemist ─ Mr. Henri Nestle. Nestlé have the world’s largest food manufacturer and the world’s largest private nutrition research capability based in Switzerland. Overall, Nestlé present in over 100 countries with 276,000 employees worldwide and 456 factories in 84 countries. Currently, Nestlé owns over 8500 brands and produce over 10,000 different products. Nestlé hits the sale of 32 billion products yearly. Furthermore, Nestlé have 24 Research & Development centres worldwide and invest RM5 billion annually on R&D. (Nestle,2008)

Introduction about the product ― NESCAFÉ®MENU™

At November 2009, Nestle introduced a new range of beverage to captures local’s heart. New Nescafe menu is your menu of Malaysian favourite. Bring home the authentic taste of your favourite coffee shop flavours anytime and anywhere. (Nestle,2009)

Key Benefit

Nestle provides good quality products with improving nutrition and health benefits under Halal policy benefits everyone especially Muslims so that consumers can enjoy their favourite food or beverage without worries with the Halal assurance promised by Nestle. (Nestle,2010)

The introduce of Popularly Positioned Products (PPP) brings affordable nutrition accessible (based on local considerations, food regulations, nutrient deficiencies and public health concern) for society and leads a healthier lifestyle and diet plan with the Nestlé Nutritional Compass label in all nestle products. (Nestle,2008)

Talk about the new Nescafe menu that contains coffee as the main ingredient. In fact, according to Don Howat (2009) coffee is something great because it contains antioxidants. Meanwhile, he hopes that there is a change of the wrong perception ‘coffee is bad for health’ among Malaysian and able to target non-coffee drinker and increases the consumption of coffee in Malaysia which is consider as low compared to other countries.

Current Marketing Situation

Nestlé Malaysia, currently the biggest Halal producer in the world, markets more than 300 Halal products in market, is warranting its appointment as the Halal Centre of Excellence for Nestlé worldwide. Exports its products to more than 40 countries worldwide with export sales of over RM470 million. Imports Halal products from the 66 Nestlé factories worldwide that are certified Halal. (Nestle,2010)

According to Philip Kotler and Gary Armstrong (2010), differentiated marketing means a firm decides to target several market segments and design separate offer for each.

Nestle (Malaysia) utilizing differentiated marketing (segmented marketing) strategy by having several categories of product that means to target different customer.

Categories of product in Malaysia:

Example of brand name in Malaysia

Ü Coffee and Beverage

Ü Nescafe / Milo

Ü Culinary Aids/ Prepared Foods

Ü Maggi

Ü Milks

Ü Nespray/ Nesvita

Ü Liquid Drinks

Ü Perrier

Ü Junior Foods

Ü Nestle Baby Cereals

Ü Breakfast Cereals

Ü Nestle Breakfast Cereals

Ü Chilled Diary

Ü Nestle Bliss/ Nespray Yogurt

Ü Ice-cream

Ü Nestle ice cream / Drumstick

Ü Chocolate and Confectionery

Ü Kit-Kat / Smarties / Milkybar

Ü Healthcare Nutrition

Ü Nutren Optimum / Fibre / Junior

Ü Performance Nutrition

Ü POWERBAR Performance / Gel

Ü Nestle Professional

Ü Nestle Professional

Table 2 : Nestlé’s categories of product and brand name in Malaysia

Adapted from Nestle in your life, our brands, 2010. From http://www.nestle.com.my/nestle+in+your+life/our+brands/

Nescafe commands 70 per cent market share in the coffee segment locally Nescafe practises differentiated marketing too by having 5 different range of coffee (mainstream coffee, healthy coffee, Nescafe Classic and Gold). Simultaneously, Nescafe Menu marketing three different beverages that include Nescafe Menu Tarik, Ipoh White Coffee and Nelso to targets a group of local people (Malaysian) includes coffee lovers and non-coffee drinkers (all age) by offering coffee shop’s all time top seller. (Don Howat, 2009)

Product review for NESCAFÉ®MENU™

Nescafe Menu Tarik

-satisfy your craving for a delicious foamy cup of coffee and indulge in the authentic taste of a tarik.

Nescafe Menu Ipoh White Coffee

-three minutes are all it takes for you to enjoy a deliciously creamy, smooth and aromatic cup of Ipoh white coffee, anytime of the day or night.

Nescafe Menu Neslo

-for those who must have your morning cup of neslo before the day can start, here’s the one for you with the rich taste of Nescafe coffee and the goodness of chocolate malt, all serve in one delicious blend.

Table 2: Product Review of NESCAFÉ®MENU™

Adapted From Nestle in your life, our brands, beverages ― Nescafe, NESCAFÉ® MENU™, (Nestle, 2010) From http://www.nestle.com.my/Nestle+In+Your+Life/Our+Brands/Beverages/Nescafe.htm

New Nescafe Menu benefits consumer by giving them a big flexibility and in-home enjoyment without stepping out the house to coffee shop for beverages. The new Nescafé Menu range is available at all leading supermarkets and hypermarkets in 15-pack bags at the recommended retail prices of RM12.90 (The Star Newspaper 2009).

Currently, only the white coffee produced by old town is consider as the direct competitor because they having the same product as Nescafe Menu’s white coffee. PowerRoot and BOH are indirect competitor because they don’t have the same (but similar) product as Nescafe Menu yet they are the strong competitor in the market so it’s important to keep an eyes on the company’s activities.

Competitive Review

White Coffee 3-in-1 Classic by Old Town

* Old Town kopitiam(coffee house) had 141 outlet in Malaysia and still growing (old town, 2010).

* Rated as Malaysians’ favourite hang out place for its signature white coffee.

* A perfect, smooth blend of original white coffee. Rich, creamy and aromatic, it has a heightened lingering mouth feel (Old Town, 2010).

* 15 sticks in a Packet, RM12.90

* The famous Cameron Highland tea

* Rated as Malaysia’s all time local favourite beverage.

* Experience the robust, full-flavour of Boh Teh Tarik Kurang Manis – with less sugar in each convenient sachet

* 12 sachet in a packet for RM7.90

Oligo cereal (6 in 1) by PowerROOT

* Nescafe’s main competitor for soluble coffee range

* Cereal drink mixed with a fine blend ofoats,cereal,B-Glucan,Oligofructose, sugar and non-dairy creamer

* 12 sachet in a packet for RM12.90

PEST analysis

Nestlé’s PEST Analysis

(P)olitical

* In support of the Government’s efforts to combat non-communicable diseases in the country, Nestle collaborated with relevant NGOs to participate actively during the Nutrition Month Malaysia campaign to promote good nutrition in the community (Nestle, 2008).

* Nestle is in full support of the Government’s efforts to encourage healthier diets and active lifestyles to help counter problems associated with obesity, diabetes and cardiovascular diseases. We have made significant change to improve our products’ profile to complement the Government’s efforts to create a healthier population (Nestle, 2008).

(E)conomic

* Flat domestic sales reflects slowdown in local economy and changes in consumer spending behaviour. (Nestle, 2009)

* The weak market sentiments due to the global economic slowdown and changes in consumer spending behaviour (spending less and saving more), have some bearing to the Group’s domestic business, which remained flat for the period under review. (Nestle, 2009)

(S)ocial

* Nestle was founded on social responsibility, sound human values and principles more than 140 years ago (Nestle, 2008).

* Malaysia’s majority = Muslim. Consumers trust and confidence on quality and peace of mind for Muslim consumers (Nestle, 2008).

* Our interest in Halal was borne out of social responsibility and respect for our Muslim employees and consumers, and today, we are beginning to appreciate the long-term investment we have made in manufacturing and marketing Halal products (Nestle, 2010).

* Though it is a global brand, Nescafe is locally produced to meet the taste preferences of local consumers (Nestle, 2010).

(T)echnology

* Improve innovation technology and supplier development through Halal knowledge (Nestle, 2010) plus innovate & renovate nutritious and healthier products using R&D expertise (Nestle, 2008).

* Every Nestle product undergoes as extensive R&D process and a stringent quality standard before it is launched, because we value the trust that our consumers have in us (Nestle, 2008).

* Nestle consumers all over the world benefit from world-class manufacturing facilities, the best private R&D capability in food and nutrition, international quality and safety standards but with products catered to local preferences (Nestle, 2010).

* Our global investment in R&D clearly shows Nestlé’s commitment in innovating and renovating products based on scientific evidence and trials (Nestle, 2008).

SWOT Analysis

(S)trengths

(1) High market share

Ü For instant, Nescafe commands 70 per cent market share in the coffee segment locally as the leader. (Don Howat, 2009)

(2) Size, operational efficiency and financial power

Ü Owns 7 factory and 6 sale office at Malaysia with one national distribution centre that involve exportation of Halal product to more than 40 countries. (Nestle, 2008)

(3) Wide range of products

Ü Nestlé owns over 8500 brands and produce over 10,000 different products. (Nestle, 2008)

(4) Ability to customize global product & brand to local preferences

Ü For example, markets more than 300 Halal products in market, to more than 40 countries. (Nestle, 2008)

(5) Strong Research & development

Ü Have 24 Research & Development centres worldwide and invest RM5 billions annually. (Nestle, 2008)

(6) Halal policy

Ü Helps in targeting Muslim by assuring them with all product is Halal and also attract non-Muslim customer at the same time. (Nestle, 2010)

(W)eakness

(1) Very narrow product line for beverages

Ü Only promotes chocolate malt (milo), coffee (Nescafe) and milk beverage.

(O)pportunity

(1) New product discover (expanding product line)

Ü The discover of New Nescafe Menu is a good example whereby it also help to expands the range of coffee under the Nescafe brand. In the future, they maybe will produce coffee candy in different flavour.

(2) Changing of customer needs/tastes

Ü For instant, customers have more awareness toward their health care and wish to have product that come with low sugar contain thus Nestle can introduces their products with low sugar contain to fulfil customer’s needs.

(3) New technology

Ü To improve the product’s quality by implementing the new technology and maintain their market share in the industry.

(T)hreats

(1) Economic downturn

Ü Threaten profit margins and bottom-line. If the firm decides to cut cost, many people might lose their job and social responsibility is frequently put on hold. (Nestle,2008)

(2) Entry of new competitor

Ü For instant, the Starbucks also blends into the soluble coffee market with their signature premium coffee. Thus, Starbucks might affect the sales of Nescafe premium range product.

Financial Analysis

Financial analysis use and transformation of financial data into a form that can be used to monitor and evaluate the firm’s financial position, to plan future financing, and to designate the size of the firm and its rate of growth (allbusiness.com, 2010).

Based on the 5 years’ statistics (appendix 2), it proved that the company is growing healthy from the year 2004 to 2008. In 2008 Nestle Malaysia post a turnover of RM3.9 billion (approximately) for the year ending 31 December 2008, which represents a 13.5 % growth over 2007. Profit before tax is increasing from year 2004 to 2008. However, the percentage of turnover which is rated as 11.6% in 2007 fall to 11.4% in 2008, due to heavy capital expenditure(which contributed to higher financing costs) (Nestle, 2009). With the implementation of lower tax expenses by government, Nestle (Malaysia) manage to nudge the profit margin after tax from 8.5% to 8.8%. According to Nestle (2009), the Board of Directors has recommended a final net dividend of 80 cent per share, giving a total net dividend proposed and declared for the financial year of 191.19 cent per share that represents a 68.0% increase compared to the previous period and hits the highest in the Group’s history.

From the balance sheet (appendix 3), we can see that the Nestle group and Nestle Malaysia are growing stronger and having a very positive view about their assets with the increments. Overall, the group have RM1,660,401,000 of asset while the company have RM1,110,879,000 of assets. Furthermore, it achieved a balance with their equity and liability that shows the company is healthy with strong financial.

By observing the income statement (appendix 4), the company is making more profit (compared by year 2007 and 2008). Nestle Malaysia hits RM435,269,000 of revenue for 2008 which is higher than year 2007 by increase of RM75,116,000. For the Nestle group the gain approximately RM3.9 billion at 2008 and it’s better than the previous year with RM3.4 billion. The basic earnings per ordinary share (cent) for year 2008 is 145 while year 2007 is 125. It shows that currently the company is still doing well.

Based on the cash flow statement (appendix 5), the available cash of the group and company is decreasing. It is because of the cash is used for heavy financing activities.

Group 2008

RM’000

Group 2007

RM’000

Company 2008

RM’000

Company 2007

RM’000

Net cash from operating activities

555,972

290,657

401,005

226,134

Net cash from investing activities

(185,696)

(100,721)

28,219

21,667

Net cash used in financing activities

(376,256)

(214,094)

(445,550)

(234,505)

Cash and cash equivalents at 31 Dec

25,690

31,670

1,042

17,368

Objectives

1st year’s objective (short term)

  • Hoping to double our share (to reach 70 per cent of the total market) of the speciality coffee market by next year with the launch of New Nescafe Menu (Don Howat,2009)
  • Catering to Malaysian tastes by offering a mix of drinks across different ranges and the new products add to the company’s product portfolio of these ranges. (Don Howat,2009)
  • See an increase in coffee consumption in Malaysia. (Don Howat,2009)
  • Hope to change the perception that coffee is bad for health and educate consumer on the goodness of antioxidants contained in coffee. (Don Howat,2009)

2nd year’s objective (and long term objective)

  • Improving current portfolio to ensure the products has more nutritious without affecting the taste (for example, less sugar, salt and fats). (Nestle, 2008)
  • Maximise the use of good quality local raw materials. (Nestle, 2010)
  • Creating and increasing consumer’s awareness on nutritional labelling, food safety and consumer rights to safe and quality food. (Nestle, 2008)
  • Guarantee that all products manufactured, imported and distributed by Nestlé Malaysia are certified HALAL by authorised Islamic certification bodies. (Nestle, 2010)
  • Produce and sell world-class products of the highest consistent quality, reliability and convenience based on business excellence principles throughout our operations.(Nestle, 2010)

Marketing Strategies

Nescafe Menu utilizing the multiple segmentation bases which included of geographic, behaviour, and demographic segmentation.

NESCAFÉMENU’s Segmentation for Consumer Market

Geographic

Country

Malaysia

Country religion

Asia

Demographic

Age

12 ― 65+

Gender

Male and female

Family size

1―5+

Family life circle

Single/ married (with or without children)

Income

Upper low and above

Occupation

Students, working adult, housewives & retired

Religion

Muslim(mainly), Hindu & Buddhist

Race

Malay, Chinese, Indian & others

Nationality

Malaysian

Behavioural

Occasions

Regular

Benefits

Quality and convenience

User status

Potential user and regular user

User rates

Medium use

Loyalty Status

Strong and absolute

Readiness stage

Interested, desirous and intention of buying

Attitude toward product

Positive

Table 3: NESCAFÉMENU’s Segmentation for Consumer Market

Adapt from Major Segmentation Variable for consumer markets by Philip Kotler, Gary Armstrong (2010).

Available at Principles of Marketing (13th edition) Chapter 7― Customer-Driven Marketing (Market Segmentation) page 217.

Selective marketing (differentiated marketing) ― market-coverage strategy in which a firm decides to target several market segments with separated offers (Philip Kotler, Gary Armstrong 2010). Nestle as leader of global food market applied selective targeting by differentiated their products to numbers of categories that means to target different customer.

Categories of product

Example of product

Targeted customer (in general)

Ü Coffee and Beverage

Ü Nescafe / Milo

Ü All range

Ü Culinary Aids/ Prepared Foods

Ü Maggi

Ü Household, mainly teenager and university students.

Ü Milks

Ü Nespray/ Nesvita

Ü Household

Ü Liquid Drinks

Ü Perrier

Ü Upper middle range

Ü Junior Foods

Ü Nestle Baby Cereals

Ü Parents with baby

Ü Breakfast Cereals

Ü Nestle Breakfast Cereals

Ü Parents with children

Ü Chilled Diary

Ü Nestle Bliss/ Nespray Yogurt

Ü Household

Ü Ice-cream

Ü Nestle ice cream / Drumstick

Ü Parents with children

Ü Chocolate and Confectionery

Ü Kit-Kat / Smarties / Milkybar

Ü All range

Ü Healthcare Nutrition

Ü Nutren Optimum / Fibre / Junior

Ü Household

Ü Performance Nutrition

Ü POWERBAR Performance / Gel

Ü Student & working adult

Ü Nestle Professional

Ü Nestle Professional

Ü Medium/ large Companies

Table 3: Nestlé’s products, brand name and their targeted customer.

Adapted From Nestle in your life, our brands (Nestle, 2010) From http://www.nestle.com.my/Nestle+In+Your+Life/Our+Brands.htm

Nescafe is a convenience product type of consumer product that consumers usually buy frequently, immediately, and with a minimum of comparison and buying effort. Normally low priced and marketers place them in many locations to make them readily available when customers need them (Philip Kotler and Gary Armstrong, 2010).

(a) Pricing Strategies

Major base pricing strategies

î Value-based pricing [Everyday low pricing (EDLP)]

§ Set reasonably low price but still offer high quality products and adequate customer services. Prices are not the highest in the market nor are the lowest, consistent with the benefits and costs associated with acquiring the product.(O.C. Ferrell & Michael D. Hartline, 2008)

§ For instant, Nestle(M) re-launched the everyday low price Nestle branded range of Take-Home Tubs with Hi calcium, in line with the Nestle corporate wellness initiatives, to further strengthen the leadership position in the affordable segment. (Nestle, 2008)

î Competitive Matching

  • Pricing strategy focuses on matching competitor’s prices and price changes. Although some firms may charge slightly more or slightly less, these firms set prices at what most consider to be the ‘going rate’ for the industry(O.C. Ferrell & Michael D. Hartline, 2008).
  • Nestle set the Nescafe Menu according to the ‘going rate’ whereby market the 15-pack bags at the recommended retail prices of RM12.90 which is almost the same with the Old Town’s white coffee (RM12.90)

Strategies for adjusting

î Promotion discounting

  • Virtually all firms, even those using value-based pricing, will occasionally run special promotions or sales to attract customers and create excitement (O.C. Ferrell & Michael D. Hartline, 2008).
  • Nestle uses this strategy to attract new and old customer and increase their sales during promotion.

î Reference pricing

  • Firms use reference pricing when they compare the actual selling price to an internal or external reference price. All customer use internal reference prices or the internal expectation for what a product should cost. As consumers, our experiences have given us a reasonable expectation of how much to pay for the product (O.C. Ferrell & Michael D. Hartline, 2008).
  • A pack of 15 pack-bags coffee cost above RM7.90 above and at the average price of RM11.50 to RM13.50 thus consumer expectation price also will be around that ‘reference price’.

(b) Product Strategies

The launched of New Nescafe Menu is using product line extensions strategy by adding new flavours of coffee to Nescafe brand. These products supplement an existing product line with new styles, models, features or flavour and it allow the firm to keep its product fresh and exciting with minimal development cost and risk of market failure (O.C. Ferrell & Michael D. Hartline, 2008).

Product Strategies

Branding strategy

* Line extensions

î It occurs when a company extends existing brand names to new forms, colours, sizes, ingredients, or flavours of an existing product category. (Philip Kotler and Gary Armstrong, 2010)

î In this scenario, Nescafe introduce the new Nescafe menu by proving three new flavour of coffee to meet consumer variety.

Packing and labelling

* Nescafe Menu used a simple design by implements the photo of beverages in the packing and picks the colour to suit the beverages.

* A big and clear brand name is spot in the top of the packing.

* 15-pack bags at the recommended retail prices of RM12.90

* Nescafe also provide 3 flavour in a box of 6-pack bags for consumer who want to have a try for all the flavour.

Customer Support Service

* According to O.C. Ferrell & Michael D. Hartline (2008), a firm may have difficulty differentiating its products when all products in a market have essentially the same quality, features, or benefits. In such cases, providing good customer support ― both before and after the sale helps in identifying and defining consumer needs.

* Nestle provides the toll-free customer service line (1800 88 3433) in order to help them to know more about consumer’s needs and strengthen the current position.

Product Life Cycle ― Nescafe

Introduction stage

i. Attracting customer by raising awareness of and interest in the product offering though advertising, public relation and publicity efforts that connect key product benefits to customers’ needs and wants (O.C. Ferrell & Michael D. Hartline, 2008). First, Nestle make the official launch for new product included Press conference then advertising their product through newspaper, radio and television.

ii. Inducing customer to try and buy the product through the use of various sale tools and pricing activities (O.C. Ferrell & Michael D. Hartline, 2008). Nestle conducts free testing section, gives free samples to customer at hypermarket and offers their product in cheaper price during the promotion of new launched product.

iii. Furthermore, Nestle ensure there is high availability and visibility of the product through trade promotion activities that encourage channel (hypermarket, convenient store and etc) to stock and support the product (O.C. Ferrell & Michael D. Hartline, 2008).

Growth stage

i. Nescafe has a strong branding, high quality with reasonable price to secure their market position.

ii. Utilize advertising to stress the product’s benefits for target customer (O.C. Ferrell & Michael D. Hartline, 2008).

iii. Maintain and control over product quality to ensure customer satisfaction (O.C. Ferrell & Michael D. Hartline, 2008). For example, Nestle collect the customers’ feedback through their customer service line and email.

iv. Contact with key channel especially retailers to get a better shelf space that easily catch customers’ eyes.

Maturity stage

i. Nescafe manage to hold the 70% market share of the Malaysian market share with its soluble coffee ranges (Don Howat, 2009)

ii. Nestle able to create cash flow and invest it for new products or technology to improve their company’s portfolio.

iii. At this stage, Nescafe also develop a new product image and apply the new technology to their products.

(c) Distribution strategy

Nestle uses the indirect marketing channel with intensive distribution that makes a product available in the maximum number of merchants or outlets in each area to gain as much exposure and as many sales opportunity as possible (O.C. Ferrell & Michael D. Hartline, 2008).

Multiple customer-marketing channel
Adapted from Business (tenth edition)by William M. Pride, Robert J. Hughes, Jack R. Kapoor, 2009.

Available at

http://books.google.com.my/books?id=zb0cItqvLJUC&pg=PT427&dq=customer+marketing+channel&hl=en&ei=PNa4S6_3I4SyrAfPpfXDCg&sa=X&oi=book_result&ct=result&resnum=7&ved=0CFMQ6AEwBg#v=onepage&q=customer%20marketing%20channel&f=false
Nestlé as the producer keep the product in their national distribution centre which is used as the main logistic function ― warehouse. Next, wholesaler represent hypermarket that gets the products for the agent (sales office) and then sell it to retailer and customer.

(d) Promotion strategy

Nestle applied the promotion mix as the promotion strategies.

Nescafe use product advertising to promote the image, features, uses, benefits, and distribution of products (O.C. Ferrell & Michael D. Hartline, 2008). They present their advertising through television, radio, magazines, newspapers, outdoor display and the internet. Thus, consumers can have a look of the physical evidence of the product.

Public relations can be referring to the process in the 7Ps of the marketing mix. It used to promote the firms, its people, its ideas, and its image and even to create an internal shared understanding among employees and can create specific images such as quality, innovativeness, value, or concern for social issues (O.C. Ferrell & Michael D. Hartline, 2008). Nestle uses different methods such as press conferences, press releases and event sponsorship. For instant, Nescafe organizes press conferences and releases official press to announce the launch of the Nescafe Menu.

Personal selling refers to personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. Sales people (as one of the 7Ps of marketing mix) will carry out the communication that attempts to inform customers about products and persuade them to purchase those products. Nestle uses the 6 sales offices and their employees to sell their products.

Sales promotion direct towards consumers and trade is applied. Nestle gives sale promotion by giving out samples, point-of-purchase promotion and contests. For example, Nestle promotes different contests for their product seasonally to create excitement for consumers and increase the sales. Moreover, they offer trade allowance and selling incentives offered to an intermediary’s sales force.

Conclusion and recommendations

In conclusion, Nestle group is a strong financial corporate and Nestle Malaysia is a Multinational company that have a bright future in exporting Halal product to more countries out of Asia. The ‘born’ of the new Nescafe Menu means a revolution of Nescafe beverages by offers local-styled coffee according to consumers’ needs.

Furthermore, I discovered that Nestle do not have a brand that offers tea beverages as new line of product and attract non-coffee drinker to be Nestlé’s consumer. Moreover, Nescafe ought to provide all their beverages in can so that it easy to carry to everywhere and enjoy it at anytime.

As the awareness of health issues is rising rapidly in Malaysia, Nestle should provides their product with low sugar range or replace it with sugar cane which is more healthier compare to fine sugar.

Lastly, Nestle should re-design their logo, label and packing as it rated as less attractive compare to its competitor. As the fast-development of multimedia, Nestle should fully utilize it in their packing and advertisement to suit the new generation.

Reference

Books and e-books

Principle of Marketing 13th edition by Philips Kotler & Gary Armstrong, 2010. United State of America, Pearson Prentice Hall.

Marketing Strategy (global edition) 4th edition by O.C Farrell & Michael D. Hartline ,2008. United State of America, Thomas South-Western.
Business (tenth edition)by William M. Pride, Robert J. Hughes, Jack R. Kapoor, 2009. (Online) Available at http://books.google.com.my/books?id=zb0cItqvLJUC&pg=PT427&dq=customer+marketing+channel&hl=en&ei=PNa4S6_3I4SyrAfPpfXDCg&sa=X&oi=book_result&ct=result&resnum=7&ved=0CFMQ6AEwBg#v=onepage&q=customer%20marketing%20channel&f=false [accessed at 20th March 2010]

Introduction to marketing conceptsBy Graeme Drummond, John Ensor, fifth edition

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