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Involves the process of planning, executing, evaluating & controlling the use of our various promotional mix elements to effectively communicate with targeted audience, it provides framework for developing, implementing and controlling our organization’s ‘IMC’ program.
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Review of marketing plan: before launching our product we put in our minds that it will not be easy to compete with big names in tea industry such as Lipton for example; there for we understood that we must come up with some thing new, something different in-order to be unique, special and to attract our needed customers and play it wisely with the world’s number one Lipton.. therefore we had to understand our market situation: where we are (Now) and where it tends to go (Future) and how it will tend to go there, some detailed steps had to take place such as:
A detailed situation analysis:
Internal marketing audit and review
Nestle is one of the leading companies in the market it is structured in a way to integrate all its departments (sales, marketing, CCSD, & supply and demand) activities to reach a way to be profitable and to be the market leaders by owning the largest market share.
External analysis of the market competition and environmental factor
Nestle Egypt main brands are Maggie, Nescafe, Nido, and cerlak. Each brand has its own competitors and by introducing Nestea (Elite tea), our main competitors are Lipton, Ahmed tea, Dilmah. Each one of the competitors is serving a large target segment and the opportunity is to serve more specific segments (concentrated market) although Lipton is moving towards to be more customers specific.
Specific marketing objectives
Goal: From the heavens of earth, we provide our consumers with the finest picks of tea leaves for a royal taste…
Vision: To be ranked the best quality tea in the market
Time frame for marketing activities:
Mechanisms for measuring our performance: Surveys and telephone Questioner
Slogan: ‘Blend of quality and taste’tea leaf
NESTLE’s center of attention are People as a whole despite demographic, psychographics and geographic. The main aim of the firm is PEOPLE. This can be seen from their media and hoardings. Even on the packing design you can see the FAMILY, which focuses all the age groups. new-icon-customer-care
Plans for the 4p’s
Place: nestle divides the market or customers into two, modern trade (MT) and traditional trade (TT), according to Nes-tea (elite tea) we will focus more on the modern trade according the high price
Price: the price will be higher than the other tea brands due to the higher quality
Promotion: promotions will be settled upon giving sophisticated gifts to show and maintain the image of a high quality brand.
Product: the product is characterized by the best tea taste. The product display box will be expressing the high quality of the tea and people.
Program to implement the strategy
A subset of marketing research, advertising research is the systematic gathering and analysis of information to help develop or evaluate advertising strategies, ads and commercials and media campaigns.
Following are the types of the advertising research target-market-400×300
Advertisers use quantitative research to measure market situation in hard number.
3 basic methods to collect quantitative data are mkt manager
Nestle use this research method to get the results about their advertisement research.
Qualitative research seeks in depth, open ended responses, not yes or no answers to get people to share their thoughts and feelings. This research is used more often to give advertisers a general impression of the market, the customer, or the product. The methods used in qualitative research are usually described as Projective Techniques
Nestle do both type of research. They do ongoing research whole year and on the basis of the results they make their decision for the future.marketresearch
Process of monitoring and evaluating performance
At the end of every month there is a meeting for evaluation of results and to act on the feedback. The performance if not +, leads toward change in strategies
The effectiveness of a communication is assessed when the source receives a response. The response can be in many forms. Hopefully, the response or feedback is premeditated and desirable. The feedback can be a tangible product of the communication and can lend itself to easy evaluation.
For e.g. we like to buy Elite tea for its high quality or it is the best taste in the market.
Why it’s important in our perspective
It is very important to evaluate our progress to know if there is any broken link in our process to solve as soon as possible to maintain our success and to attain our goal effectively.
For us this step is an Integral part of the marketing strategy…
2. Promotional program situation analysis:
After reviewing the overall marketing; the next step in how to develop a promotional plan by conducting the situation analysis. This situation analysis mainly focuses on the development of the promotional strategy. Inside the promotional program situation analysis it includes two types the internal analysis and the external analysis. (Advertising and Promotion, 2009: p.29)
Assesses related areas involving the product, service offering. (Advertising and Promotion, 2009:P. 29)
. There is more than one thing that is related to “Product”. The promotional mix; it contains the sales promotions, advertising, and personal selling.
The sales promotion; it is direct to consumer and distributor channel members. Inside the sales promotion there is something called “consumer sales promotions techniques”. These techniques are used by the consumer to influence him towards purchase. Those techniques are also used by nestle for the “Elite-Tea”.
The loyal reward program is done for targeting consumer who purchases this product for more than one. It allows him to collect points and at the end they concede these points and in return get a reward. For example: If consumer buys two-packs of “Elite-Tea”, then he/she will have a cup for free. The price of each pack is a deal between the consumer and the company, so the pack of the tea will be increasing by 25%. For example: “Eli -Tea” since the company has started to launch the product inside the market, so they decided to put inside each pack 25% more tea bags. Nestle was doing something new about this new product; they were doing something called online-coupons and these are coupons posted online on nestle web-site. In case of logging-on to the site and looking for the new products, coupons could easily get printed by consumers while being seated in his/her place.
In other cases like entering a hypermarket; consumers could also get have coupons from the sales person standing. Also at the same time consumers will get a free pack of “Elite-tea” for sampling and testing.
Advertising; Nestle is doing one of the most successful campaigns. The way of communication that’s convinces or motivates the viewer of the advertisement to purchase the product after watching it. Also “Nestle” tried to focus more on the direct response of the advertisement.
It is also one of the things that lead any campaign to be a successful one. In “Elite-Tea” advertisement; “Nestle” company is trying to mention or show how this product efficiently contains lots of benefits. In addition to this; it is clear in the advertisement, which market segment is being targeted by the company (Middle-Class & Upper-Class)
High – Quality
More Tea Bags inside the pack
Good brand name and image that have a reputation
Have Competitive Advantage. (Unique in the price, Product design, Product Packaging)
Segmented only For the Middle class and The Upper Class
There are a lot of competitors.
External Analysis :
It focuses on specific factors such as, characteristics of the firm consumers, market segment, positioning strategies, and competitors. Nestle is always caring about the external analysis. For consumers; “Nestle” cares about which type of consumers are buying the product through surveys and questionnaires. Like who buys our products and services?
The answer is the middle and the upper class that will be able to purchase this product. What does the consumer buy? What needs must be satisfied? Normally the consumer is buying the benefits of the product and that will satisfy his needs and wants. Then after they understand how the consumer thinks; they start to segment the market by dividing it based on the similarities among groups of people.
Nestle is segmenting the market, based on demographic variables such as the age (Teenagers-elders). Also by sex, it could be used by both genders. It might be considered as if it’s for psychographic segments because it depends on the lifestyle. I think big a percentage of consumers’ life style is to drink tea.
Who are our direct competitors?
Who are Our Indirect competitors?
El Arosa Tea.
More Market Share.
Better known in the market.
What Key Benefits are used by our competitors?
The price much lower
There reputation in the market
Known By the distributes
elit tea without boarders
Analysis of the communication process: (How our product can effectively communicate with consumer in it’s target market)
Communication goals: We want our customers to have a positive perception towards the tea which we produce, increase likability, and be the number one in the market.
Communication objective: are reports of what various aspects of the IMC plan will accomplish. (Advertising and Promotion, 2009: 211).
In order to reach the communication goals, objectives should be met. Improve brand awareness, brand quality.
Marketing objective: are generally stated in the firm’s marketing plan and are statements of what is to be accomplished by the overall marketing program within a given time period. (Advertising and Promotion, 2009: 210).
Our purpose of the marketing objective is to:
Increase market share.
Be the number 1 in the market.
Source: “Is the person or business that has information to share with another person or group of people”. (Advertising and promotion, 2009: 146).
Nestle is the source.
Encoding: “Involves putting thoughts, ideas, or information into a symbolic form”. (Advertising and promotion, 2009: 148).
Eli tea which Nestle provides it leads to a long healthy life because it
Gives refreshing and full energetic feeling.
Nestle tea contains chemical which is called polyphenols, which gives tea antioxidant properties that protects against cancer diseases.
Message: “The encoding process leads to development of a message that contains the information or meaning the source hopes to convey”.
(Advertising and promotion, 2009:148)
“We want to provide best quality and best taste”
Channel: “Is the method by which the communication travels from the source or sender to the receiver”. (Advertising and promotion, 2009:149).
Consists of two channels:
Personal channels: “Are direct interpersonal (face-to-face) contacts with target individuals or groups”. (Advertising and promotion, 2009:149).
In big supermarkets such as Carrefour, spinney’s and etc. there are booths standing inside them sales people who offer free tea samples and if the consumer likes the taste they could purchase.
Non personal channels: “Are those that carry a message without interpersonal contact between sender and receiver”. (Advertising and promotion, 2009:150).
Nestle Eli tea commercial on a prime time show.
Receiver: “Is the persons with whom the sender shares thoughts or information”. (Advertising and promotion, 2009:152).
Consumers are the receivers; the message should be simple so that they can decode it.
Our audiences are the clients whom are looking for a blend of taste and royalty at any age.
Decoding: “Is the process of transforming the sender’s message back into thought”. (Advertising and promotion, 2009:152).
The receiver should be able to decode the message, the decoding here is the:
Noise: “The unplanned distortion or interference is known as noise”.
In case of advertising on T.V or radio we should be considering the signal, on bill board we should be considering traffic and weather. (Advertising and promotion, 2009:152)
Response / Feedback:
Response: The receiver’s set of reactions after, seeing, hearing, or reading the message is known as response.
Feed back: The part of the receiver’s response that is communicated back into the sender.
The response and feed back of the consumer is that they feel healthy when they drink Eli Tea.
tea leaftea leaftea leaftea leaftea leaf
elit tea without boarders529px-Nestlé
4. Budget Determination
– After determining the communication objectives, our attention now focuses on the promotional budget. In an ideal world, the amount needed to spend on our promotion should be determined by what must be done to accomplish the communication objective. However, promotional budgets are sometimes determined using a more simplistic approach, ex: how much money is available or a percentage in our company’s sales revenue. At this stage, the budget is often uncertain. It may not be finalized until specific promotional mix strategies are developed… (Belch & Belch 2009)
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Nestle in terms of financial analysis it focuses on how much amount it uses on its activities in the industrial sector and it also reflects how efficiently the organization is utilizing its resources. A new budget is formulated every year, each time a new product is introduced, or when either internal or external factors necessitate a change to maintain competiveness. Essentially, in our product we focus on two primary budgeting decisions: establishing a budget amount and allocating the budget.
Many firms employ more than one method, and even budgeting approaches vary according to the size and sophistication of the firm. Here in Nestle and specifically our new product ‘Nestle EliTe’ we use the Top-Down Approaches/or Budgeting instead of using contribution margin and/or marginal analysis approaches.
Here the budgetary amount is determined usually at senior manager level and then the duties are agreed down to the different departments.
Top management sets the spending limit
Promotion budgets set to stay within spending limit
However, Top-down methods include the affordable method, arbitrary allocation, percentage of sales, competitive parity and return on investment (ROI), yet according to our new product and it’s position in it’s product life cycle (PLC) it is still in the introduction level; it cannot fit in some of these approaches: like Percentage of sales and/or the ROI.
Affordable method: the organization agrees on the amount to be used up in different areas such as production and operations. Then it distributes what’s left to advertising and promotion, taking into account this to be the total it can afford. And this we think that it’s the best way or safest way to launch our product.
Adding to that, at the same time we could check our Competitive parity were Nestlé’s executives establish funds amount by linking the competition’s percentage of sales expenditures.lipton_logo
Q… We ask ourselves two questions in this stage!
What will be the promotional program cost?
Incentive & Discounts ramadan
Buy 3 and get 1 free
Overall company market share in the Egyptian market is 80%.
Cost of ‘TV’ Ad
Prime Time: 6-11 pm al7ayat
Channels: Al-Hayat, El-Mehwar, Ch.2 (EGY)
Cost in Prime Time: L.E 75,000/min elm7wr
Cost in Off-peak time: L.E 27,000 – 30,000/min
Cost of Billboard
Size: 2700 sq. ft
Skin: L.E 57,000
Rent for 1 month in (X) Area: 600,000 – 1,000,000
Cost of Hanging Hoardings
Size: 5ft x 2 ft
Rent: L.E 1,350/week
Cost of Posters
Paper weight: 135 gram
Size: 18 inch x 23 inch
Quantity: 3000 @ LE. 4.15/poster
Estimated Marketing and Promotional program expenditure: L.E 3 Million
* Additional sponsors: facebook_logo
Magazines (Teen stuff, Fatafeat…)
© Estimated numbers by Nestle Elite Tea
How will the money be allocated?
Once the budget has been appropriated, the next step is to allocate it. The allocation decision involves determining which markets, products, and promotional elements will receive which amounts of the funds appropriated.
Market size: While the budget should be allocated according to the specific promotional tools needed to accomplish the stated objectives, the size of the market will affect the decision.
Often easier and less expensive to reach the target market.
The target group maybe more dispersed and thus more expensive to reach.
Market share goals
Organizational characteristics: the organization structure, power and politics in the organization hierarchy, characteristics of the decision maker, approval and negotiation channels.
Loans: a serious amount of money (probably large) taken by the company from banks as to accomplish a specific task and then repay it with a certain amount of commission.
Sponsorship: All of the sponsors of our product, they try and help our product to penetrate the market.
Investment/Revenue: We would rely on the arbitrary allocation or ‘ROI’ approach.
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