Marketing Strategy Of Nestle Vs Cadbury b5o3j

ASSIGNMENT ON

MARKETING STRATEGY OF NESTLE VS CADBURY (COMPARATIVE)

PRESENTED BY: SWATI SAXENA SWATI SINGH URVASHI DUBEY TASMIYA Group:33

MANAGEMET OF BUSINESS ISTRATION SHRI RAMSWAROOP GROUP OF PROFESSIONAL COLLEGES

What is marketing strategy? Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contributes to the goals of the company and its marketing objectives.

How to develop a marketing strategy? The benefits of a planned marketing strategy are numerous. Business owners often rely solely on their intuition to make business decisions. While this informal knowledge is important in the decision making process, it may not provide you with all the facts you need to achieve marketing results. A marketing strategy will help you in defining business goals and develop activities to achieve them. 1.

Describe your company's unique selling proposition (USP).

2.

Define your target market.

3.

Write down the benefits of your products or services.

4.

Describe how you will position your products or services.

5.

Define your marketing methods. (Will you , use Internet marketing, direct marketing, or public relations?)

Today, Nestle is the world leading Food Company. Nestle headquarters is in Switzerland. Its international R&D network s the products made in more than 500 factories in 86 countries. The Nestle factories are operating in the region of:

1. Africa 2. America 3. Asia 4. Europe 5. Oceania Being a company dedicated to food from the beginning, Nestle remains sensitive to culinary and eating habits, and responds to specific nutritional problems, whilst also setting and matching new trends such as growing out-of-

home consumption and caring about the well being of its consumers.

How Nestle Define Marketing: Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. The two fold goals of Nestle marketing is to attract new customers by providing superior value and to keep and grow the current customers by delivering satisfaction. Nestle defines marketing as: “A social and managerial process where by individual & groups obtains good food and good life through creating and exchanging products and values.”

Marketing Mix: Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its products. The many possibilities can be collected into four groups of variables known as the four P's that are as follows:

1- PRODUCT:

Product stands for goods and services that the company offers to target market. The labeling, packaging of the Kit Kat and Polo includes the Nestlé brand and logo. The packaging includes an expiry date and time along with a manufacture date. Second part of labeling includes the quantity of product in grams along with ingredients and contents of chocolates and candies. 1. Dairy products- Nestle Milkpak, Milkpak Butter 2. Chocolate drinks-Milo powder 3. Coffee- Nescafe classic, Frothe and Frappe 4. Fruit drinks-Frost, Juices 5. Dietic and Infant products-Lactogen, Cerelac, Neslac 6. Culinary products-Maggi noodles and sauces

2- PRICE: Nestle again decides it price on the basis of competition. The best think about the company nestle is that it is very flexible and it can come down with the price very quickly. The company is renowned to bring the price down even up to half if needed. But this risk taking attitude has also earned nestle losses. Though lowering the price would attract the customers but it would not help them cover up the cost incurred in production hence causing them losses. This was the situation earlier but now nestle is a full-

fledged and growing company. It has covered all its losses and is now growing at a rapid rate.

3- PLACING: Placing stands for company's activities that make the product available to the target consumer. Nestlé' distribution is using the direct distribution channel to supply confectionary products weekly to the retailers.

4- PROMOTION: A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate

image.

Nowadays

nestle

going

in

for Brand

Ambassadors to promote their product. These brand ambassadors are famous people who usually people idolize and people can relate to them.

The Cadbury’s Inc has taken the opportunity to offer us a broader view of chocolate category. The Cadbury India’s no.1 Chocolate is able to share with their market insights based upon unparalleled

breath Cadbury

of has

grown

chocolate from

strength

to

experience. strength

with

new

technologies being introduced to make the Cadbury confectionary business, one of the most efficient in the world. The merge in 1969 with Schweppes and the subsequent development of the business have led to Cadbury Schweppes taking the lead in both, the confectionary and soft drink market intech UK and becoming a major force in the international market. Cadbury Schweppes today manufactures product in 60 countries and a trade in staggering 120. The Cadbury story is a fascinating story of a family business that grew in one of the biggest, most loved chocolate brand in the world. A story that you will as the story of “The taste of life”.

MARKETING OBJECTIVES • Grow shareholder value…over the long term • Cadbury in every pocket • Marketing strategy is aimed at achieving this vision by growing the market, by appropriate pricing strategy that will create a mass market and to have offerings in every category to widen the market.

1- PRODUCT:

We have the competitive advantage that is our quality. It is recognized

throughout

the

world

and

our

product

is

a

convenience product. Currently Cadbury India operates in four categories viz. Chocolate confectionery, milk food drinks, candy and gum category • Cadbury dairy milk, 5 star, perk, Éclairs and celebrations • Candy category halls • Bubble gum brand bubbaloo • Bournvita - the leading malted food Drink (mfd)

2- PRICE: Cadbury has followed a well-planned strategy of fuelling volume growth by introducing smaller unit packs at lower price points. Simultaneously, the company seems to have absolutely juggled with the larger pack sizes and raised prices to a degree higher than what appears at face. Our pricing strategies are as follows: Weight 20gm pack,

Prices Rs.10

50 gm Pack,

Rs.30

150 gm Pack,

Rs.90

350 gm Tin,

Rs.175

500 gm Tin,

Rs.350

And it is concluded from the survey that customers by looking this price chart have accepted the prices and called it as an economical.

3- PLACING: • Chocolate needs to be distributed directly, unlike other fmcg products like soaps and detergents, which can be sold through a Wholesale network. • 90% of chocolate products are sold directly to retailers. • Cadbury’s distribution network used to Encomes 2100 distributors and 450,000 retailers. • To avoid cannibalization of its higher priced Products from lower priced ones, Cadbury is setting up two separate distribution channels –One for core business & other for mass markets

4- PROMOTION: • ments The ment aimed at conveying the idea that no Specific occasion is required for consuming cdm • Celebrities endorsements

Cadbury roped in Preity Zinta for its perk brand. Preity Zinta’s angelic dimples laid the foundation for what would become the Indian teenager’s Favorite snack. After this campaign, perk’s sale surged. • The big ‘B’ factor The big factor that has pushed up CDM sales is the Amitabh bachchan campaign. Cadbury appointed Amitabh Bachchan as its brand ambassador