ADVANCED NATIONAL DIPLOMA IN HUMAN RESOURCE MANAGEMENT

MARKETING MANAGEMENT

Name : Arafath Kaleel Reg. No. ANDHRM-E-11-101

NATIONAL INSTITUTE OF BUSINESS MANAGEMENT 120/5, WIJERAMA MAWATHA, COLOMBO 07, SRI LANKA.

1.0 COMPANY BACKGROUND 1.1 INTRODUCTION

Nestl is a world renowned Health, Wealth and Nutrient company whose commitment is to increase the nutritional standard of products as well as improved their taste. Henry Nestl established the Nestl Company in 1867 by developing the 1st milk food for infants and thereby saving the life of a neighbors child. (Nestle corporate website, 2010) Now the company is built to be a worlds leading Nutrient, Health and Wellness Company where the headquarters is situated in Vevey, Switzerland, where we engage in developing human values and principles. It is estimated that sales for the year 2009 was CHF 108 billion, where we employ around 280,000 people and have factories or operations in almost every country in the world. (Nestle corporate website, 2010) According to Colombo Stock Exchange website, (2010), The Nestle company in Sri Lanka was established in 1980 and was recently converted into a public limited company.

The company is situated in Colombo 10, whereas the factory is situated in Kurunegala and has a present number of 656 employees in Sri Lanka. And the current shares of Nestle Lanka in the Colombo stock Exchange is accounted to be Rs. 53,725,463. (Colombo stock exchange, 2010)

1.2 VISION & MISSION

VISION:
According to Nestle Corporate website (2010), Nestle Nordens aim is to meet the various needs of the consumer everyday by marketing and serving food of consistently high quality. The confidence that the consumers have in our brands is a result of our companys many years of knowledge in marketing research and development, as well as continuity-consumers relate to this and feel they can trust their products.

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MISSION:
According to Nestle Corporate website (2010) at Nestl, we believe that research can help us make better food so that people live a better life.

Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to Nutrition, Health and Wellness, Nestl products bring consumers the vital ingredients of taste and pleasure.

As consumers continue to make choices regarding foods and beverages they consume, Nestl helps provide selections for all individual taste and lifestyle preferences. Research is a key part of our heritage at Nestl and an essential element of our future. We know there is still much to discover about health, wellness and the role of food in our lives, and we continue to search for answers to bring consumers Good Food for Good Life.

1.3 PRODUCT PORTFOLIO & ITS NEED

NESTLE

Beverages

Baby Foods

Pasta

MILO Nescafe' Nestomalt

NESTLE CERELAC NESTLE NAN LACTOGEN

Maggi Noodles

Figure: 1.0 Product portfolio

Source: Authors work Satisfying the consumers thirst, hunger and nutrition 7|Page

2.0 MARKETING MIX

This refers to tactical tools the marketers use to attract customers which consists of the 4 Ps which are PRODUCT, PRICE,PLACE and PROMOTION.

2.1 PRODUCT
Any physical objective that can be offered to the market for attention, purchase and as well as consumption which will help to satisfy customer needs and wants can be described as price.(Kotler and Armstrong, 2006, p:232) NESTLE PROUDLY PRESENTS: PRODUCT- MILO ICE CREAM BRAND NAME- NESTLE (MILO) MILO ICE CREAM is the new product introduced by NESTLE which falls into the line stretching category as this is an innovative product which is an addition to the product portfolio of Nestle. Potential Product- This is where the customers expect transformations and better variety of the product so that it will help them satisfy their wants in a much broader manner that hasnt been supplied by any other competitor before. In future, Nestle promises to provide you with; o o MILO CHOC CHIP MILO WHITE CHOCO CHERRY ICE CREAM

Product Classification Milo ice cream is a convenience good which falls under the consumer goods category. This is a fast moving consumer goods which has the following features: o o o o o Confectionery product Impulse Product The price is relatively low when comparing to shopping and speciality goods. Frequent purchases are made Limited time is allocated when purchasing the product

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BRANDS
MILO ICE CREAM is manufactured from the NESTLE COMPANY which is renown worldwide. Therefore customers prefer to purchase products of this brand.

PACKAGING
The ice cream is packaged in a manner which is eco friendly and disposable, so that no harm is made to the environment. The packaging is done differently to suit customer preferences. MILO ice cream is packaged in the following ways-:

Cone MILO ball

Tub Cup

LABELLING
By this the customers are able to identify the brand of the ice cream easily and as details as ingredients, place and date of manufacture, date of expiry, nutrition table etc for the convenience of the customer.

2.2 PRICE
The amount of money or the monetary value which is charged for the product, can be defined as price. In other words, the value of which the customers pay in exchange of the respective product is known as price. (Kotler 2006, p: 307)

Pricing Process
1. 2. 3. 4. 5. 6. Selecting the pricing objectives Determining Demand Estimating costs Analyzing competitors cost, price and offers Selecting the pricing strategy Selecting the final price

2.3 PLACE
Place is the space or a location where the product will be distributed at the market place for the targeted customer group. (Kotler and Keller, 2006, p:302)

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Nestle consider on following prospective to decide a place to market MILO Ice cream which is a newly launched product. Convenience Manufactures will need specific outlets in order to expand their market. Estimate and evaluate sale growth in different area.

2.4 PROMOTION
This refers to the communicating activities which will be carried out by the company in order to inform and persuade the target consumers to purchase new MILO ice cream and also to remind them about the brand.

3.0 MARKETING COMMUNICATION PROCESS

1. 2. 3. Identify the target audience Determine the communication objectives Design a communication message

3.1 TOOLS FOR SPECIFIC COMMUNICATION PLATFORMS

Advertising TV & Radio Billboards & Posters Internet Print Media Cinema

Personal Selling Product Samples -MILO Ice cream promotional stalls are put up at leading shopping malls. Sales Promotion Sales Offers Games

Direct Marketing- Feedback form We can print a feedback form on the MILO Ice cream inside cover so that the customer can make any comments on the product which help us to increase the productivity and quality level of MILO Ice cream. 7|Page

Measure results As this is the final stage of the process the marketers had to measure the effectiveness and efficiency of the marketing activities which was carried out in order to gather data for future plans of MILO Ice cream. The measure results can be identified by the following indicators. Product awareness Customer recall rates Inquiries of sales Returns on marketing

If the above indicators have been met, MILO Ice cream can come into a conclusion that the promotion campaign has been effective.

3.2 PROMOTIONAL STRATEGY

Nestls promotional efforts are mainly practicing pull strategy where the company attracts customers to seek and purchase the new product. However the company also depends on the marketing intermediaries to push the new product to customers. So there is a combination of the pull and push strategy being practiced

4.0 CONCLUSION
The Nestle company has gradually built themselves up to the position they are in today as they have understood the needs and wants of their customers and also keeping up to date with the necessary products in the market. As the establishment of Nestle has been for over a century they have the experience in this field. Accordingly they have understood the importance in creating benefits from its customer and how to capture the value and achieve profitable situations. By introducing this new product, Nestle yet again shows us that they will not stop with what they have achieved but will continue striving to be among the best as long as the existence of the company. Furthermore, the marketing strategy which Nestle is using is very satisfactory and has ended up in broadening their customer base covering all ages in the overall products of the company. To conclude, Nestle has become a world renowned company due to the courage and hard work which has built them up to what they are today.

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5.0 REFRENCES

http://www.milo.com.au/ Kotler, P, Keller, K.L.2006, Marketing Management,12th edition, Pearson Education Inc, India. Kotler,P, Armstrong,G.2006, Principles of Marketing,11th edition, Prentice Pearson Education, USA. Milo corporate website, 2010, [online], Available at: Nestle corporate website, 2010, [online], Available at: http://www.nestle.com/AllAbout/AllAboutNestle.htm

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