Case For Sustainability Managing Business -Myassignmenthelp.Com

Question: Discuss About The Case For Sustainability Managing Business? Answer: Introduction The report will provide a detailed description related to the key components of a Marketing plan for an organization's product and service. The company that has been selected for the analysis is Nestle Australia. The company is known as one of the worlds leading Nutrition, Health and Wellness Company with the head office in Switzerland. Along with this, the company has operation and its offices, research, and development centers across the world. The report includes the full analysis of the marketing environment, target market and the marketing strategy of the company. Overview of company Nestle is the worlds largest food and beverage firm and has more than 2000 varieties. The company operates the business activities in more than 191 countries globally. The company came into the existence in the year 1886 and since then the purpose of the company is to improve the quality of life and contributing to a healthier upcoming years (Nestle, 2017). The aim of the company is to inspire the people of Australia to live healthier lives and through this; the company is able to ensure that they are able to achieve the long-term success. The products that are offered by the company include Coffee, recipe bases, Medicated lozenges and sauces, noodles, cooking milk, baking ingredients and some products related for the baby and toddler nutrition. Out of these products the core product of the company is baby milk products and this is the product that has been selected for the analysis (Nestle, 2017). The baby milk products include Nesquick, Koko Krunch, Cerelac and Nido. Situational analysis Porter's five forces model is an essential framework that supports the company in analyzing the industrial parameters and these forces identify how the decisions of marketer and customers get influenced (Rothaermel, 2015). Bargaining power of suppliers Nestle is well known in the market for its strong relationships with the suppliers across the world due to its vast buying power as the company believes that the quality of products is important. The company also provide the necessary guidelines to the suppliers to reduce the expenses due to which the suppliers deliver the quality products. Bargaining power of customers The bargaining power of the consumers is high as an enormous number of competitors of the company influence the preference of customers in the Australia market. Nestle is able to deliver the quality goods to the end users that help the company in grabbing the attention of potential customers (Njambi, Lewa Katuse, 2015). Threats of new entrants There are many companies who entered the market but Nestle is having good reputation and brand image in the market due to which the company has fewer threats of new entrants. It is challenging for the new entrants to work on the quality and to offer the quality products to its consumers in the presence of Nestle. Threat of substitute goods There is a high threat of substitute goods as the products provided by the company are daily use products which are provided by many other companies as well. Considering, the threat the company has to bring the innovation in the products so that the company will be able to grab the attention of customers. Competitive rivalry The company has a strong position in the food processing manufacturing but has to face the competition from the rivals who deals in baby food products. The rivals are Heinz Dominate, Mead Johnson, Abbott, and Groupe Danone (Njambi, Lewa Katuse, 2015). The people of Australia are taking the benefit of this competition as they can enjoy the products at fewer prices or with discounts. PESTLE analysis PESTLE analysis is a framework that helps the company to determine the external factors that can influence the decisions taken by the companies (Clarke, Friese Washburn, 2015). Political factors- The rules and regulations formed by the government can create an impact on the working of the company. These rules and regulations include taxation, import-exports, government permission. Nestle always follow regulations in Australia so that the company can smoothly operate its business activities in the country. Economic factors- The economy of country is developed with the largest diverse market economies of the world. The worth of exports and imports collectively is equal 41% of GDP with the regular implemented tariff rate is 1.9%. This shows that the company can easily perform the operations related to exports and imports (Economic Freedom, 2017). Socio-cultural factors- The culture lifestyle and the preference of the customers creates an impact on the company. In Australia, maximum numbers of peoples are becoming health conscious due to which the demand for the companys products might increase and they can try to introduce new products in the market (Haseeb, 2017). Technological factors- Nestle gets affected with the introduction of the advanced technology. The company is making use of the technology in numerous business operations such as maintaining the databases with the use of the software. The company should make sure that they are adopting new technologies in their business. Legal factors- Company has to implement the health and safety laws for their employees along with this the company follows the regulations in producing hygiene products to enhance the customer satisfaction. Environmental factors- Company has to take the responsibility for the clean environment and they are responsible for healthy food with environmental friendly operations (Schaltegger Wagner, 2017). Some of the laws that need to be followed include: Waste Management and Pollution Control Act 1998 (NT), Environmental Protection Act 1997 (ACT) and many others. SWOT analysis Strengths Weakness The company has strong research and development capabilities that are growing. The company is highly-diversified and offer a huge variety range in baby products. The company has strong relationships with brands like Coca-Cola, Colgate Palmolive and General Mills (PESTLE analysis, 2015). The company only make use of advertising for promoting the products in the market which is one of the traditional ways to promote product. The products offered by the company seem to be old fashioned which needs to improved considering the modern lifestyle of people. Opportunities Threats The company has the growth opportunity in the online retail. The company has the growth in the markets of China and India. The company has the opportunity to launch new products in the market as maximum numbers of customers are becoming health conscious and due to this, they are demanding for products like energy drinks (Hollensen, 2015). The company might face the threat from the giant retailers that include Heinz Dominate and Donone related to the cut in the prices of products. Changes in the preference and choices of the customers are one of the emerging threats for Nestle in Australia market. Competitors analysis The competitors of the company include Heinz Dominate and Groupe Danone is strong competitors of the company. These companies give strong competition as they offer the similar range of products like Nestle. Heinz Dominate is well known for high quality, great taste and nutrition and Groupe Danone is leading Food Company that offers healthy and nutrition baby products (Njambi, Lewa Katuse, 2015). The quality standards of the Heinz (Kraft Heinz) dont meet the high-quality standards of Nestle due to this the price kept by the company for their products is high then the Kraft. These competitive companies spend a huge amount of marketing and promotion activities so that they can attain good position in the market. Though, Nestle has to bring improvement in the promotion and marketing strategy (Nestle, 2017). Consumer market A consumer market is defined as a market where the goods and services are purchased by the end users. Every customer has diverse choices and preferences in the single market (Solomon, 2014). Thus, the buying behavior for the product is influenced by some of the factors. Factors affecting the consumer buying decisions Psychological factor affects the purchase decision of the customer. It includes motivation, perception, learning, attitudes, and beliefs. Many people in Australia might get influence due to the other customers (Rani, 2014). For instance, Cerelac; the different flavours and the quantity of nutrition of the product are liked by the different customer that might influence the other buyers. Cultural factors consist of the consumers culture, social class, and subculture. Australians are health conscious due to which they like to consume products having high quality and are suitable for healthy life (Rani, 2014). A situational factor might influence the people depending on the situation due to this end users might get influenced in certain situation. Concept of Segmentation, Targeting and positioning Segmentation is marketing concept that helps the company in classifying the consumers on the basis of Demographic, Geographic, Behavioural and psychographic. Geographic- Company has segmented its product Nesquick and Koko Krunch on the basis of weather of the regional and local places. Demographic- Nestle offers a wide range of products and these products are available for different age groups such as Cerelac; Nido; a nutritious milk, available for the age group of 2 years or above. Nesquick and Koko Krunch; chocolate milk for babies. Apart from the age group the company also targets the people from different income. The products offered by the company are available for the middle and high income grouped people in Australia (Nestle, 2017). Psychographic- The people having the faith in lifestyle and social class make use of the products provided by Nestle. Behavioural- The Australian market is segmented considering the need for the product. Nescafe coffee was in demand in Australia when Australians get to know about the benefits of the products. Targeting Targeting refers to as the group of individuals that are targeted by the company for products and services. The company makes use of the differentiated targeting strategy in which the company targets the buyers considering the need for the customers for different products. The primary target of the company is the people with the age group of 2 or above and parents of childrens in between the age of 25-35 years belongs to the middle class (Nestle, 2017). Positioning Positioning refers to as a place that is occupied by the company in the mind of the customers. The place of the company is in a quadrant of high price and high quality which is clear from the below-positioning map of the company. Branding strategy The branding strategy of the company covers the logo of the company which is an important part of the Companys corporate identity. The nest was a graphic translation of Nestls name is meant as little nest. Marketing mix Product- Nestle offers the wide range of products with the line extension product mix in the Australian market. The core product of the company is Cerelac which is a baby milk product. Cerelac comes in different flavours with innovative packaging and labeling with a system of Nestle on it. The product contains the vitamins and minerals that are essential for the babies (Patil Bach, 2017). Price- Company provides the discount and coupons for their products and they make use of the price skimming strategy. It is a strategy in which the company charges a huge initial price that is paid by the company. When the demand of the initial customers get satisfied then the company lower the prices to attract other customers (Spann, Fischer Tellis, 2014). Place- The company provides it product malls and supermarkets along with this the company has own sales and distribution across Australia. The company makes use of the Intensive distribution coverage strategy with the help of this company try to make the product available in a maximum number of outlets. Promotion- Promotion of the products is done by endorsing the product with the celebrities. Along with the advertisement, the company also make use of the social media concept in which the company promote their products with the use of the social media (Facebook, Twitter, LinkedIn, etc.) and try to attract the customers who want to consume healthy products. People- Company hires the people on the basis of skills which include effective communication. Nestle provide training to their employees so that they can effectively deal with customers. Process- Company manufactures the product with the use of new ideas and technology. In Australia, the company makes use of the vending machine which makes the process of the company easier. Physical evidence- Nestle is forming a better evidence connectivity by providing the baby milk products in the departmental stores with the logo of Nestle. Partnerships- Nestle is having strong relations with the companies like Coca-Cola, Colgate Palmolive and General Mills (Patil Bach, 2017). Conclusion A marketing plan is a comprehensive outline of the business strategies of the company. The report includes the marketing plan of the Nestle Australia. The company is leading company having to operate in many international companies. The report shows the situational analysis, consumer market, Segmentation, targeting, positioning, and marketing mix of the company. The situational analysis of the company includes the external factors that might impact the working and decision-making of the company. 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