Factors influencing Strategy Implementation for Nestle

Student name

Oxford College of London

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Contents
Contents ........................................................................................................................................................ 2 Introduction:.................................................................................................................................................. 3 Topic: ........................................................................................................................................................ 3 Why topic selected: ................................................................................................................................... 3 Interest in the topic: .................................................................................................................................. 3 Relation with back ground ........................................................................................................................ 4 Research objectives:.................................................................................................................................. 4 Area of study:................................................................................................................................................ 4 Literature review:.......................................................................................................................................... 4 SWOT Analysis............................................................................................................................................... 5 Strengths: .................................................................................................................................................. 5 Weakness: ................................................................................................................................................. 5 Opportunities ............................................................................................................................................ 6 Threats ..................................................................................................................................................... 6 Hypothesis: ................................................................................................................................................... 6 Research methods: ........................................................................................................................................ 6 Project plan: .................................................................................................................................................. 8 Estimated budget:.......................................................................................................................................... 8 Conclusion: ................................................................................................................................................... 8

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Introduction:
This research document is about the major area of focus that is Factors influencing Strategy Implementation for Nestle. Strategic planning is the most important aspect for the business in which whole business relies as these are derived to achieve the business and marketing objectives. (Olsen, 2007) Now days organizations are relying more on the gaining of the strategic advantage over the other players and companies playing in the market that is very hard to attain.

Topic:
As we have discussed before research project deals with the topic of Factors influencing Strategy Implementation for Nestle in which we will discuss the all aspects of strategic plan that must be kept in mind to implement the strategy in the business to achieve the competitive advantage over the competitors.

Why topic selected:

With ever incoming day organization are getting more and more tough competition in the market. So organization like MNCs (Nestle) has to develop and implement such an effective strategy in more competent way that can drive the market towards more efficiently to achieve the organizations objectives and targets to achieve. (Keegan, 2002) This document will assist and help us and management of Nestle in understanding the major traits of the strategic management issues and will identify the major areas to focus more in implementation of the strategies.

Interest in the topic:

With the research conducting on the topic of strategic management I would be able to understand the current strategic point of views of nestle as well as the areas where it can improve to get better results in future. With more effective strategic designing Nestle and I can understand more about strategic approach towards business as well as in marketing aspect.

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Relation with back ground

This research report topic is about the Nestls strategic management that is specially designed to get keen knowledge about the strategic planning, implementation and evaluation of the strategies. On the basis of this courses and subject organization like MNCs develop effective strategies and get know how about how to manage and implement the strategies in the business.

Research objectives:
Following are the main objectives that will be covered under the research report. 1. What are the problems that are faced by the management of the Nestle in planning of the strategies? 2. Factors to kept in mind while strategic planning 3. How Nestle can attain competitive advantage with the implementation of the strategies. 4. Development of the business strategies for Nestle.

Area of study:
In this research project area of study in Strategic management in which we take strategic decisions for the organizations regarding the prospective view of business and its operations to achieve the targets. With effective way of planning companies achieve the competitive advantage over the competitors. These objectives are derived from the mission and vision of the business. (Burke, 1999) This proposal also propose to develop an effective strategic business plan for the Nestle that will cover, try and assist Nestle in achieving the objective of the business.

Literature review:
There are a number of terminologies that have been implemented and thought to be part of the word implementation. Sashittal & Wilemon (1996) have explained some of the terminologies of the word implementation, like execution and actualization of goals are the terms that are well known in management sciences, but these words are not well used frequently by the management. (Pietro Mazzola, 2011)When we talk about the word execution in the context of the strategy, very few of the writers has used this term for strategy implementation while there are number of writers who have used the word as strategy. It is well said that Formulating strategy is very difficult. And to implement the strategy in the organization is further more difficult. Thompson & Strickland (2003) have addressed this execution and implementation task as the most complicated and

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difficult to evaluate. So here in this context execution of the strategy and implementation of the strategy will be taken as in the same context. (Olson, 2004)

SWOT Analysis
Strengths:
FMCG food producers that are conducting their business in more than 100 countries includes the name of Nestle that has achieved the sales revenue of $10 billion in year 2008; that was far better than the targets and expectations in the market of low economy likewise in Asia.
1.

Nestle is the world number 1 company that is ranked as the efficient water consuming organization all around the world as the objective of the Nestle is to reserve water resources. "America's Most Admired Food Companies" was the honor that Nestle earned for 12 years continuously in fortune magazine. Nestle has more than 1800 brands in all over the world that gives a competitive advantage over the competitors in sense of its popularity and quality aspect. These brands also include the world top leading brands. Nestle is in operation with professional institutes as well as with the colleges and universities, hotels that are generating big sales and revenues. Consistence growth in the revenue and sale of the area where Nestle is in operations huge product line and many brands are mos leading brands, if few declines many are raised to cover the gap.

2.

3.

4.

5.

Weakness:
There are many points of focus to think for Nestle where to focus more and these are the weakness of the Nestle.

Nestle introduced plain yogurt in USA market in last decade of years that was not successful planned and implemented so it showed bad impact for Nestle in that region. In year 2008 growth became flat while industry was growing at the rate of 8.9%. Since 2004 year health care product od cereal is in false advertisement while in real sense it is not as good as it is showing so it has showed very bad results, that is indicated as false claims that ais shown on advertisements and packaging of the product. There are many brands in USA that are in need of innovation in sense of product innovation as well as process innovation due to which these products are going back to back towars decline phase.

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Opportunities
Market of today is health conscious market, more health based products are now introduced in the market, and as they are claiming to be market leader, they will be more successful to sow the competitive advantage. There is a big demand of sugar free products in market so focusing the health in the products will be better for industry to get more demand. In FMCG market trends are moving towards the quality of the product as campaigns on radio and TV are generating more opportunities by identifying needs of quality of products. Nestle has opportunity to supply the product line to every station side of the UK market, as these are the points where FMCG products are purchased and transacted frequently.

Threats
There are a number of competitors that are working in the same market of FMCg trying to grab the market share of the Nestle, like Hershey's, Cadbury-Schweppes, Lindt and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, Del-Monte, Iams, Earth's Best, Heinz, Frito-Lay. Political instability in the region and terrorism in the Asian market is generating threat for the industry to amend their strategies as per industry requirement.

Hypothesis:
As discussed earlier this document is about the proposal of research report Factors influencing Strategy Implementation for Nestle? And there are two hypotheses that will generate the results. Ho: An effective leadership behaviors of senior-level is related directly to successful

implementation of the strategy H1: An effective leadership behaviors of senior-level is not related directly to

successful implementation of the strategy

Research methods:
To explore strategy implementation in the organization, there are a number of methods to be discussed: these might be questionnaire and/or interviews, conceptual analysis, case study analysis, investigation methods to explore the reports and there are other methods (such as a laboratory setting, literature review, hypothetical scenario, method of meetings and record analysis).

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Based on the above mentioned research methods, Analytical techniques is the technique that is used to make discussion on the theory and qualitative as well as quantitative research analysis that can help Nestle to assess level of correctness and preciseness of the data and implemented strategies.

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Project plan:
Research project plan is as under which will be discussed as per following dates;

Activities WBS
Proposal submission Initial conducted research Questionnaire and interview Data Collection Analysis and dissertation development Dissertation writing Submission of the dissertation Final dissertation submitted

Start date
19.09.2011 03.10.2011 04.11.2011 18.11.2011 11.12.2011

Finish date
03.10.2011 04.11.2011 18.11.2011 11.12.2011 18.12.2011

Duration
2 weeks 4 weeks 2 weeks 3 weeks 1 week

18.12.2011 02.01.2012 29.11.2011

02.01.2012 07.01.2012 05.12.2011

2weeks 1 week 1 week

Estimated budget:
Estimated budget for the research is 300 . This includes my all expenses including stationary, travelling, purchasing of the books and other relevant material for the research report.

Conclusion:
By the end of this research report I will be able to understand the professional implementation of the strategic planning and its implementation in the field of FMCG where Nestle is a big market leader. I will be able to understand more about the strategic planning and all the factors that are important for the organization to think about before and during planning process. Once the planning is completed it will also help me in understanding about the factors that are important to consider while the strategies are implemented and how to evaluate them for the results.

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Background and research problem definition

Nestle being the world best leading brand FMCG product seller has a big and wide range of the products in line that give solution to every age group to satisfy their basic needs. (G., 2011) At the moment Nestle is in more than 100 countries that also includes more than 7500 brands in line. So for the every single product Nestle has to design the strategic plan as per needs of the market and target population. Strategy of think global and act local fits at this place at best because for every product target audience is different so we have to implement the strategy in various ways to make it more effective. So there are a number of factors that exist in it that are needed to be focused in details as in this project.

Research questions
Research question of this research proposal is Factors influencing Strategy Implementation for Nestle that covers the major aspect of questions that will be needed to focus to implement the strategy as per product and other factors that affect the implementation process internally as well as externally.

Research hypothesis
Following are the hypothesis of the research question that will be tested during this research project with different analytical tools and techniques. Ho: An effective leadership behaviors of senior-level is related directly to successful implementation of the strategy H1: An effective leadership behaviors of senior-level is not related directly to successful implementation of the strategy

Research objectives
In this research report following are the objectives that will be achieved during the research report. 1. What are the problems that are faced by the management of the Nestle in planning of the strategies? 2. Factors to kept in mind while strategic planning 3. How Nestle can attain competitive advantage with the implementation of the strategies. 4. Development of the business strategies for Nestle.

Literature review
Implementing the strategy after the analysis of the planning is very complex and difficult activity to conduct for any management team, and to implement the strategy so that it may work correctly. (Sam Charles Sarkesian, 1990) There are always a number of factors that are affecting the strategic implementation of the planned strategies. Strategy formulation is far away easy than the implementation of the strategies. This is all because of the reason that after the planning

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process implementation is very difficult to tackle and handle. There are also a number of difficulties that arise due to these factors as these are not kept in view at the time of implementation. Best strategies formulated sue to the same reason are flopped as they are not implemented as per requirement and standards of the organization. From various surveys conducted this thing is very clear that: 57 percent of firms were victims of this same problem as the strategies were not implemented properly. Every organization is now taking this strategic implementation as the most effective and important, (Richard L. Daft, 2010) and this has become a challenge for the Nestle like organization. So it is very clear that this problem must be addressed to implement the strategy in most efficient way. Factors are divided in soft hard and mixed factors that are basis of the success of the strategy implementation, and starts from the person who are implementing the strategy, evaluating the strategic results as well as with the controlling of it. So this is the best question for the management of the organization that how to implement the strategies in the organization to get more extra results in future.
There are a number of terminologies that have been implemented and thought to be part of the word implementation. Sashittal & Wilemon (1996) have explained some of the terminologies of the word implementation, like execution and actualization of goals are the terms that are well known in management sciences, but these words are not well used frequently by the management. (Pietro Mazzola, 2011)When we talk about the word execution in the context of the strategy, very few of the writers has used this term for strategy implementation while there are number of writers who have used the word as strategy. It is well said that Formulating strategy is very difficult. And to implement the strategy in the organization is further more difficult. Thompson & Strickland (2003) have addressed this execution and implementation task as the most complicated and difficult to evaluate. So here in this context execution of the strategy and implementation of the strategy will be taken as in the same context. (Olson, 2004)

SWOT Analysis
Strengths:
FMCG food producers that are conducting their business in more than 100 countries includes the name of Nestle that has achieved the sales revenue of $10 billion in year 2008; that was far better than the targets and expectations in the market of low economy likewise in Asia.
6.

Nestle is the world number 1 company that is ranked as the efficient water consuming organization all around the world as the objective of the Nestle is to reserve water resources. "America's Most Admired Food Companies" was the honor that Nestle earned for 12 years continuously in fortune magazine.

7.

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8.

Nestle has more than 1800 brands in all over the world that gives a competitive advantage over the competitors in sense of its popularity and quality aspect. These brands also include the world top leading brands. Nestle is in operation with professional institutes as well as with the colleges and universities, hotels that are generating big sales and revenues. Consistence growth in the revenue and sale of the area where Nestle is in operations huge product line and many brands are mos leading brands, if few declines many are raised to cover the gap.

9.

10.

Weakness:
There are many points of focus to think for Nestle where to focus more and these are the weakness of the Nestle.

Nestle introduced plain yogurt in USA market in last decade of years that was not successful planned and implemented so it showed bad impact for Nestle in that region. In year 2008 growth became flat while industry was growing at the rate of 8.9%. Since 2004 year health care product od cereal is in false advertisement while in real sense it is not as good as it is showing so it has showed very bad results, that is indicated as false claims that ais shown on advertisements and packaging of the product. There are many brands in USA that are in need of innovation in sense of product innovation as well as process innovation due to which these products are going back to back towars decline phase.

Opportunities
Market of today is health conscious market, more health based products are now introduced in the market, and as they are claiming to be market leader, they will be more successful to sow the competitive advantage. There is a big demand of sugar free products in market so focusing the health in the products will be better for industry to get more demand. In FMCG market trends are moving towards the quality of the product as campaigns on radio and TV are generating more opportunities by identifying needs of quality of products. Nestle has opportunity to supply the product line to every station side of the UK market, as these are the points where FMCG products are purchased and transacted frequently.

Threats
There are a number of competitors that are working in the same market of FMCg trying to grab the market share of the Nestle, like Hershey's, Cadbury-Schweppes, Lindt and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, Del-Monte, Iams, Earth's Best, Heinz, Frito-Lay.

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Political instability in the region and terrorism in the Asian market is generating threat for the industry to amend their strategies as per industry requirement.

Strategy formulation
While formulation the strategy process if the strategy is made that is not clearly described it will effecting in shape of problems creating in implementation phase. Strategies are always designed for the long term prospective view so we have not to focus on short term prospective. Many studies have discussed the thing that strategy formulation as well as process of the strategy implementation is the major point that effects the strategic implementation. So many schools of thought think that we should design the strategy with this thinking that either this strategy can be implemented in the market or not. Good strategies are always started with good inputs from data collected and formulation process. With more consistent strategy we can get long term goals and objectives as it needs time to adjust and yielding good results. (Jansson, 2008) This consistency needs the involvement of the people of the organization. So it is suggested that there are many products in the market for which the strategies are only effective when people of the organization play their part in the proper execution and well known with the results of the activities that they are performing. So we have to develop the synergism in the organization. (Patrick Flood, 2000)

Relationship in departments & different levels of strategy

Another significant factor in strategic implementation is the relationships in departments and level of the strategy. Business strategy behaviors are divided in three different types: (Walker, 2006) o o o Prospectors Differentiated defenders Low cost defenders.

These distinctions are based on the strategy categories that are overall cost leadership, differentiation strategies and focus. There are also many factors like corporate-business unit relationships, interfunctional structures and processes, marketing policies and processes that are inter-related with each other and helps in implementation of the strategy and effect significantly. Three aspects of the corporatebusiness unit are very vital to understand as they are exerting the effects on the success in implementing of many particular strategies: 1. Business unit autonomy, 2. Sharing programs 3. Synergies across As well as controlling mechanism. Furthermore there are many competencies of the organization like resources allocation, participation of the staff in decision making system and their influences in interfunctional conflicts and other inner department co-ordination can also effect the implementation process. Many authors have assumed that decision-making and coordination structures in the marketing

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department, and marketing policies and programs within the business unit, affect the performance of different business strategies in different ways. (Michael R. Czinkota, 2007)

Implementation tactics
Many researchers have researched the exerting effects of implementation tactics on implementation of the strategy. There are four identified four implementation tactics that senior management uses in implementation of the strategies: these are (Cynthia Ingols, 2011) o o o o Intervention, Participation, Persuasion, Edict.

The study found a 100 percent success rate when key executives used an intervention tactic, but observed this tactic in less than 20 percent of the cases. Both the persuasion and participation tactics had 75 percent success rates; persuasion had the highest frequency of use, 42 percent, and participation the lowest, 17 percent. Implementation by edict had a 43 percent success rate and a 23 percent frequency of use. These factors are explained as under Intervention is the adjustment of the strategy as per requirement during the implementation stage with new introduction of norms and form for the organization. (Tactics in implementation) (1986) Participation mean to get more appropriate inputs in the strategy that how to make it more effective and nominating is to get a list of persons who will be there to implement the specific tasks of the strategy. Persuasions are the ways to convince the employee of the organization to take part in the strategy and to bring out the fruits from it. The main mechanism for implementation in the edicts tactics is the issuing of directives. In other school of thoughts, these four factors were found as 90% of the managers who were using these factors to implement the strategy in the organization. Persuasion and participation are the most effective tactics in strategic management, where as edict is found to be least active and effective in strategic management context. A contingency framework that uses situational constraints, such as a independence of the management and managers to act freely and to take decision on the basis of the time and situation. Many practitioners are in favor of this to decenterlize the decision making to manager levels.

Innovation
There are many businesses in UK and EU that cannot survive merely on the basis of the strategic implementation of new strategy. Some time they have to introduce new product or new features of the product in the product line. This increase the cost of the product for the certain time but this can be reduced by the means of bulk production and standardization. Another way to reduce the cost them is better way of communication in between buyers and suppliers of the organization as well as to make the transporting and effective supply chain management in process. (Aydogan, 2009)

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Innovation and Planning

In every business either that business is operating the operation

nationally or internationally it needs to focus on the innovation and planning with linkage of the strategy. Innovation that is not linked
with the strategy of the business brings losses in long terms or not effectively measured in real sense. (Pascal Le Masson, 2010)

Theoretical framework
If we really analyze the image of Nestle we will see that Nestle is focusing on the high quality of the product that makes the prices relatively higher. This price is brought down by the standardization of the product and bulk production of the products in line. This special focus on the price and quality of the product bring uniqueness in the Nestle in the mind of the consumers and market. Another factor that is important that Nestle directly purchase the supplies from the suppliers that make it sure that maximum quality of the product is gathered to get more and more focus on the quality aspect. And it also develops very strong relations with the suppliers and its stake holders. For the MNCs like Nestle it is the most important thing to develop the good relationship with vendors, consumers and maintain the best quality of products, with effective prices. By this means nestle can achieve a competitive advantage over the competitors. And if nestle involves the agents in this section then prices will be raised and quality will be reduced.

Research design and methodology

To explore strategy implementation in the organization, there are a number of methods to be discussed: these might be questionnaire and/or interviews, conceptual analysis, case study analysis, investigation methods to explore the reports and there are other methods like literature review and record analysis. Based on the above mentioned research methods, Analytical techniques is the technique that is used to make discussion on the theory and qualitative as well as quantitative research analysis that can help Nestle to assess level of correctness and preciseness of the data and implemented strategies.

Situation analysis
Market analysis
Andy Bangs define the importance of the marketing research as Market analysis is a process and a way of thinking about your business. It is a process which you precede systematically, answer a series of questions about the market and base your answers on facts. (Bangs, 1996) Market of the Nestle is very complex as it falls in the FMCG product that are high in demand and there are a large number of the competitors that are operating their operations and have a great demand in the market. These competitors are widely spread and their strategies are to increase the market share and to enhance the business profitability with increase the entry level barriers for the new incoming rivals. Meeting the demand and need of the customer is not enough at this stage as it requires a continuous increase in the

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quality of the customers and end consumers as the needs of the customers has been raised as now they are more aware of the facts and figures about the products available in the market.

Internal business Environment

T.R.Jain explains as internal environment includes internal factors of the business which can be controlled by the business. It refers to the environment whith in the organization. it includes objectives of the business, managing policies, different departments of the organization, management and employee of organization, labour management relationship, brand image and corporate image. (T.R.jain, 2009)Internal business environment refers to the internal factors of the business that are influencing the business operation and marketing aspects. These internal factors also includes the Human resource mobilization their capacity development for the operations and financial aspects. It also deals with the factor that all the activities are carried out by the staff to achieve the organizational objectives and all of the factors combine effects the increase in performance, operations and efficiency of the company as well as to increase the productivity. Another aspect is the demand generation and awareness rising activities that are conducting to increase revenue and maximize the profit of the company. These are all basically the internal market that ultimately affects the internal organization and generates the satisfied internal market. and a satisfied internal market can be able to build strong satisfied external market. Nestle is famous in its development of inside market and it is all because of its strong attachment of corporate level to functional level hierarchy by means of which they are achieving the targets and objectives of the organization.

External business environment

As there are internal factors that affects the organization similarly there are some external factors in numbers that affects the organization or business entity change in the industry, its economical situation in shape of ups and down and sometimes factors that are not in control of the business but they affects the whole business operations like government influences. Carl McDaniel states that no one business is large or powerful enough to creat changes in the external environment. Thus managers are primarily adapters to rather than agents of change. (McDaniel, 2008)These are the change that generates opportunities some times and many time it create horrible threats for the business and industry to deal with. Economic fluctuation in the market, value and attribute change in the customer, demographic aspects of the segment affects the Nestle.

SWOT analysis
Ricky W. Griffin states about the SWOT as The starting point of the formulating the strategy is usually SWOT analysis, SWOT is an acronym that stands for strengths weakness, opportunities and threats. SWOT is a careful evaluation of an organizaitons internal strengths and weaknesses as well as its environmental opportunities and threats. (Griffin, 2007)

Strengths
As working all around the globe, the big strength of the Nestle is its rich organizational culture that promote the team work and have an open door policy. Major focus of the Nestle is performance based

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and result oriented approach that encourages the staff and human resource to work more hard. Market share of Nestle is big strength due to which creates the brand image in the mind of the customer as the trust worthy brand that can generate more values for the clients. So we can sat trust of the clients is the strength of Nestle. Innovating new product with more extra feature is always been part of Nestle port folio as it has developed a large number of products. Being the cost leader Nestle enjoys the maximum profit throughout its production and it save a lot of resource that it mobilizes on the other aspects like Marketing and promotion, advertising the product in market and capacity building of the staff. Strong MIS of Nestle supports the organizations internal management information system as well as decision support systems of Nestle is very strong that assist in strategic decision making process.

Weakness
As nestle develops the new products in market and have much potential to enter but still market of the nestle is too much mature and resistant for the nestle that it requires strong dedicated team of staff that its lacking from past many years. Nestle Plain Yogurt is been very bad for the Nestle as it couldnt get development in market of the USA. But still Nestle can overcome this weakness.

Opportunities
In under development countries like Pakistan it is very hard for the markets to survive in because in Pakistan beverage and FMCG food sector is highly developed as its food sector demand in increased too much and they requires high quality as compare with other countries like INDIA or Bangladesh. So thats why for the country like China and India there is still so much opportunities to get as they are not so much rich in food sector and any product can be sold as they eat almost everything. But still a massive advertisement is necessary.

Threats
Many FMCG products makers that are making and manufacturing the products locally dont care for the international standards and deliver hygiene products in market that makes bad impacts regarding health and medical. Apart of that in Pakistan there have been run many campaigns against Nestle and other products like coca cola that destroyed the image of the company too much. Another threat is the incoming dairy product like Olpars as Pakistan and many countries like Pakistan is rich in live stock so many farmers and companies are introducing their own new brands.

External Market Environment

To conduct the external environment analysis that what are the factors that affect the organizations goals and objectives with operations. Let us consider the product MILO of Nestle. There are following external factors that may affect the market of the Nestle externally. As per Adrian Green, PEST analysis examines the factors under these four headings and how they might affect an organization. (Green, 1997)

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Political Factors
These are basically the enforcements of the government law and rules regulations, that also include the creation of the decrease in demand and obstacles awareness for the products that may be hard for the organization to tackle with as they are independent variable factors.

Economical Factors
There are a large number of factors that lies in shape like levels of income, rate of the inflation, rate of the taxes, percentage of the unemployment, rate of exchange and mortgage rates. These factors can affect the demand of the products in market and companies have to look inside these factors as these factors in influence the achievement of the factors and success of the organizational goals and objectives.

Social Factors
There are a number of social factors that affect the MILO demand in the market like social factors like Nestle targets market that are religious or a social sector that need energy and belongs to upper class that can spend money to be more energetic there is also group of people who spend their leisure time in playing sports activities. So there are many factors of society that can affect the MILOs marketing strategy and marketing environment.

Technological Factors
As the technology develops in the world it generate many opportunities for the business like introduction of the new mediums of communications can develop more rapid ways to convey the message to the right audience., another example of this is the rapid growing use of computerized reservations systems of Nestle products for the whole sellers.

Marketing Objectives
Nestle defines the marketing objective of this organization as Nestle business objective is to Produce and deliver the products in the market to generate values for the customers that can be sustainable for the Nestle shareholders, working force and its employees, customers, clients and its consumer market and national economies in which Nestl is operating its business. The purpose of the creation of the value is to improve the business of the Nestle and increase the credibility of the firm. In order to get and attain the best quality of the materials and to make the process smooth Nestle build strong relationship with its vendors, suppliers and other staff of the organization with whom they are working with.

Market Segmentation
As per McDaniel with in a market a market segment is a sub group of people or organizations sharing one or more cherectristics that cause them to have similar product needs (McDaniel, Essential of Marketing, 2008)Segment of the market is basically a group of people that are having characteristics same as each other and needs of the customers are the same. Marketer professional are not responsible to create the segment, all what they have to do is to identify these segments of the market and to decide which one of the target is best suitable for the organization. there are a large number of benefits

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of segment marketing rather than the mass marketing. By means of this strategy company can design the product more fine tuned as per needs of the customers and price of the product remains as per the affordability of the consumer. By this strategy company can also choose the best alternatives for the distribution and delivery system, and it will also create a deep inside image of the competitors that are working in market for the same segment. Marketing segment is basically a combination of the analysis of the organization and product on the offer. Customers can be classified further in following major categories.

Geographic Segmentation:
Regions: in case of the MILO common people like to drink the MILO product in every season in every region.but season wise it can be segmented. Cold MILO usage is slow in rainy weather as people like to drink hot one. While vierse situation exist in summer season when weather is hot. Cities: usage of the product MILO is higher in the cities while low in villages as there is a difference in between both areas regarding awareness and education. So availability of the product in such areas is highly necessary where it generates more demand.

Demographic Segmentation:
Age: Nestle can target many group of people of different age like for MILO most special target group is children and old people who need strength and more energy to live for children it provides extra neutritions and minerals. While for the old people it is necessary to be stronger. So only it need is to get this group familiar with this product. Gender: Targeting the female and women can be beneficent as most of the shopping is done by the women. If they will feel convenience in the MILO purchase they will purchase it more than others. Income and occupation: Consumer only buys these types of the products when they are having some extra income or saving in their pockets. People with white color jobs can be good customer for the MILO as they need more energy to work on a station sitting continuously for a long time.

Psychographic segmentation:
Social class and life style: Consumer market of higher class having great savings can buy these product more frequently rather than the lower classes that tend to save some. Such class can be targeted easily with more frequent positioning of the product as the health oriented.

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Branding
It is the collection of various attributes that a consumer from market expects from the product when he goes to market to buy it, it will affect the buying behaviors of the consumer. It can be a company name, image, symbol, slogan or value that he gets when he consumes. It promise the consumer the benefits for the products and value to provide, like best quality desired and value for the value that he spend in shape of money. For the past many years these values have been built up in the market of the consumer that their expectation have become higher and higher. Now brand name is having worth more than the business itself like in case of many companies like NIKE, Unilever, and Nestle. In a market of competition when we see the profitability factor the most profit gaining companies are those who are having great worth in their brands. A good name of brand eye catching symbols and heart touching slogan is main keys to build a brand, but most important factor is mind of the customer that what they think it to be. Organization like Nestle regularly builds their brands in shape of more and more advertisement in Medias and with marketing tools. It helps the marketers to build more values in the brand image.

Marketing Strategies
Nestle has applied a large effective human resource and very effective social policy that committed with the involvement of the people around the Nestle. Other than this Nestle is committed for the fulfilling obligation of the rules and regulations of the government, shareholders, consumers clients and customers, nestle development and market communities. Nestle is also taking a part in saving the energy and saving the sources of the world. It make it sure that all products that are being imported and distributed in market by Nestle are certified with HALAL foods by authorized bodies that are Islamic certified. Nestle in short plays a vital role in long run stability in market as well as sustainability of its products. Its a wide area research the branding. Branding strategy of the Nestle MILO is corporate. Being the part of the plan every product has its own branding plans which are clear integrated strategy. All brands are supporting each other as they are completely encouraging and not fighting with each other. From the very start nestle has adopted the international global strategy with close link up with locally suppliers and vendors of food sector and FMCG products to get more involved in the market and to minimize the cost of the production and increase the integeration of the company vertically or horizontally. This is the major reason for the Nestle success in very diverse market where a lot of cultures and civilizations exists. This is the strategy of the Nestle that is called a global thinking and all proposed planned and implemented strategies through locally implemented action and list of operations and with a dedication and sense of commitment.

Positioning
As nestle has decided its marketing corporate vision and objectives now nestle can develop its marketing objectives in order to create the demand of the product of the milo which is introduced as the energy FMCG product targeting the children and old people. The major and most priority objective of the Nestle MILO is to introduce the product and to develop the market to capture the maximum share of the MILO product that can bring Nestle as market leader. For this purpose above we have discussed the marketing Mix that helps the Nestle in creation of the marketing plan and strategic plans. Nestle is trying to position the MILO as the product that may survive as long as it could with help of

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positioning it to be part of daily life as energy milk chocolate drink and a product that every child and old person can use in its routine life.

Implementing, monitoring and controlling

Implementing
Marketing plans develops the strategies that are planned to develop the strategies and these strategies cant be implemented until and unless it is subdivided into many activities that operational staff can perform to generate the result in shape of more demand, awareness and more over it helps in order to promote the product various campaigns are designed under which company try to develop a strong brand in market that can recall the product for the long time. Now days marketing is not only to generate new demands but it is to sale the product repeatedly. This makes more and more revenue for the business and product with organization develops indie the market.

Monitoring and controlling

For the evaluation of the implemented plan and strategies Nestle has developed feedback mechanism from the internal market and external market as well. Internal feedback from the employee enhances the grip of the Nestle over the flaws in system and it develops a sense of linkage of employee with Nestle. External market feedback includes call centers and service providing facilities that works for Nestle 24/7 throughout the year. This feedback is gathered and evaluated for making activities better in future. These strategies are developed and activities are designed. At the same time for the evaluation Nestle also set up some bench marks and standards in shape of targets for the period of specific time. These targets are all related to the completion and achievements of the objectives of the marketing and business as well. Strong MIS systems development in Nestle enabled it to evaluate the strategies with information analysis orienting reporting systems that not only helps in development of the strategic decision but to evaluate them to manage the changes in it.

Data collection and analysis techniques

Research is always based on the two main factors that are the data collection and there analysis as per requirement of the data and results. As Nestle is engaged in variety of the products so business strategy must be well defined and clear with every respect. As the data is very complex so both primary and secondary research will be focused to gather the information. Interviews and questionnaires will be the tools for gathering the primary data. Apart of that meeting face to face is a good and better option in this regard. Primary data gives inside view of the organization as well as relevant data is collected for the research. Secondary data is collected from the research that is already been conducted from the researchers. This is also an efficient way to conduct the research report as there are a number of difficulties as no one can conduct research in all departments as no one is specialist in every respect. And second point is the low cost, this data can be retrieved on the internet libraries articles and journals that are published already.

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o o o o

Published Newspapers Published Journals Published Magazines Online web sites and Internet

Data validity and reliability

This head includes the preciseness of the data and the relevancy of the data as per topic and research is obtained. This relevancy is judged on the basis of the required results that either it can help in making some useful results at the end or not.

Ethical issues
There are many issues that are needed to kept in mind while doing research like discrimination, cultural issues, moral values of people and standards. These are tha major areas that must be focused even while conducting interview, discussion and all activities conducting throughout the research program.

Research conclusions and recommendations

By the end of this research report I will be able to understand the professional implementation of the strategic planning and its implementation in the field of FMCG where Nestle is a big market leader. I will be able to understand more about the strategic planning and all the factors that are important for the organization to think about before and during planning process. Once the planning is completed it will also help me in understanding about the factors that are important to consider while the strategies are implemented and how to evaluate them for the results

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