The report helps in analysis of the marketing communication plan and strategies for Nestle in the Australian market. The report will be discussing about the integrated marketing communication plan of the organization which basically manufacturers the food products for the children in the entire competitive market.
The communication objective of Nestle will be analysed with the proper implementation of the different marketing tactics and the type of media which is being used for understanding the position of Nestle in the overall competitive kind of market. The communication mix of Nestle along with creative strategies are required to be analysed which will be helpful for understanding the media plan which will be applicable for Nestle in becoming successful in the Australian market.
Nestle is one of the Swiss transnational drinks and food company which is being headquartered in Switzerland. This is one of the largest companies in the world which can be measured by the different revenues and other metrics since the year 2014. The company was founded in the year 1866 wherein Henri Nestle was the founder of the company. Furthermore, the areas which is being served by Nestle is worldwide along with number of employees working in the organization is 323000 (Nestle.com.au 2018).
The revenue which has been earned by the company is 89.791 billion till the year 2017 and the total assets of the company is 7.538 million till the year 2017. The main aim and purpose of Nestle is focusing on creating sustainable value among the different customers along with stakeholders in the market in an efficient manner. The company is trying to provide the different food products for the different kids as the organization have to properly develop the different kinds of strategies which is helpful for the success of the firm in a positive manner.
With the help of the SWOT analysis, proper analysis can be done in order to analyse the different kinds of strengths, weaknesses, opportunities and threats which can be faced by the Nestle in the Australian market.
Strengths
The extensive distribution system is the first strength as the diversified product portfolio of Nestle has been successful in penetrating rural along with urban markets in Australian economy. The distribution methods along with decentralization in the supply chain which is inclusive of the mobile street vendors along with door to door distributors has helped the company in making the different products visible in the Australian market (Andrews and Shimp 2017).
Nestle have the world’s largest food along with nutrition research organization which is the other strength wherein more than 5000 individuals are involved in the R&D along with the different corporate ventures with the different universities and there are more than 21 research centres globally. The broad portfolio of the different products of Nestle is inclusive of different ranges and varieties which is inclusive of different breakfast food, cereals along with sauces.
Weaknesses
The different kinds of consumer and legal issues are the major issue which has been faced by Nestle in Australia wherein there are different kinds of controversies over the different years as the baby formula products of Nestle and chocolate price fixing which has been of negative word of mouth.
The structure of the brand under the same umbrella group which will be managing the large number of different individual brands which can create conflict of interest among the different individuals. This is the other negative issue of Nestle which has affected the brand image of Nestle in an ineffective manner (Schivinski and Dabrowski 2016).
Opportunities
Strategic alliances of Nestle is engaged in different kinds of partnerships with different major companies such as Coca-Cola which can be creating different kinds of opportunities for the organization. This is one of the main shareholders of L’Oréal which is the largest cosmetics. This will be helpful in managing the overall competitiveness of Nestle and this can help in gaining competitive advantage.
Expansion of the entire market is the other opportunity for Nestle in the Australian market as there will be penetration of more in the rural areas in the robust kind of supply chain which will be beneficial for the success of organization.
Threats
There is huge competition in the market which can be a huge threat for Nestle as there are different local brands in the Australian market. In order to differentiate their products in the market, this will be a huge threat for development of the brand image of Nestle in a negative manner (Risselada, Verhoef and Bijmolt 2014).
The price of the commodities is the other threat in which increase in the price of the different commodities will increase the price and this will result in decrease in sales along with margins in a negative manner (Belch et al. 2014).
With the help of PESTEL analysis, the different kinds of external environmental threats are required to be analysed in an appropriate manner which will be providing huge view on the different factors such as:
Political factors are the first aspect in which this can be seen Nestle serves in several countries, wherein Australia is one of them. The political environment can be one huge issue for Nestle in the Australian market as there are different kinds of taxes and regulations which can affect the overall productivity of the firm in a negative manner (Balmer 2017). Nestle should consider changing global regulations which are required to be adopted by the company in a negative manner (Petersen, Kushwaha and Kumar 2015).
Economic factors are the other aspect in which Economy of Australia differs from other countries and there are different economic policies for the targeted segments. In Australian market, this can be analysed that the buying and purchasing power of the individuals is high and there are different income level individuals which will be beneficial for the success of the organization in a positive manner (Baker 2014).
Social factors are the different shared beliefs along with different business operations which will be successful for analysing the different business operations. Nestle tries to consider the different kinds of social perspective wherein they tried in considering the good reputation of the overall understanding along with evaluation of behaviour of the different customers in order to sustain the quality (Blakeman 2018).
Technological factors are the providing the different opportunities for development of the different new products or the improvement of the existing ones. Nestle needs to follow maxim in order to accelerate the growth of innovation in the Australian market which will be helpful for meeting the standards by installing the contemporary plants which will be beneficial for the success of the organization in an efficient aspect (Andrews and Shimp 2017).
Legal factors are the ones which is a weak point for Nestle Company as there are different kinds of rules and regulations for the different employees and there will be produce the hygiene and safety laws for the customers. Nestle needs to focus more on the operating in the different regions of the world (Foley 2017).
Environmental Factors are the last aspect in which the Nestle needs to focus on the different rules and regulations which will be helpful in producing healthy food along with environmentally friendly operations. The different kinds of aspects related to the CSR activities which will be helpful in managing the different kinds of issues in an effective manner (Valos et al. 2016).
There are different kinds of media which can be useful for promoting the Nestle in Australia which is inclusive of the following:
Online media is the one of promotional strategy which can be used for the promotion of the products through proper online marketing. The online marketing is the effective tool of marketing which is being used by Nestle in the market of Australia in the present time (Mikeska et al. 2017). Social Media is very popular tool which can be used by Nestle as the communication tool to become more effective in their approach of selling their products in the Australian market. It is assumed that more than 55% will be used in Facebook and the usage of the Email marketing can be used in the campaign in the market of Australia which will be helpful for the successful communication plan of Nestle (Stokes and Turri 2015).
Distribution of the information is the other aspect of the media tools which can be used by Nestle in the Australian market which will be beneficial for the overall success of the organization in an efficient manner. Social Media methods are effective on the different customers; however, the above process is costly in nature as well (Bacile, Ye and Swilley 2014). The respective method is useful for Nestle in connecting with the customers in the Australian market by putting different hoardings and posters on the busiest roads of Australia. This will be helpful in maintaining and grasping the attention of the different customers in the market (Parente and Strausbaugh-Hutchinson 2014).
Events is the other aspect in which this will be organized in order to capture the entire market. With the help of events, this can be analysed and identified that as Nestle is one of the leading food company in the market of Australia. The events can be conducted in different crowded malls along with places and this will be helpful in understanding the different needs and requirements of the customers (Wijaya 2015).
The main target audience of Nestle will be the different children from the age group of 12 and the reason for targeting the different individuals who are the children who will be the future of the Australian society (Fill and Turnbull 2016). Nestle tries to focus mainly on earning the trust of the different individuals and the main focus is on creation of sustainable value among the different customers (Singhal and Brown 2018). This helped in creating suitability for the different stakeholders, business operations along with marketing strategies. The company helps in providing the different kinds of food products for the various kids as the organization will be developing effective strategies of communication for the success of the different products (Quirke 2017).
There are different communication objectives in order to attract the customers for the different communication objectives by the organization. There are different kinds of advertisements which can be used in the communication plan such as posters, hoardings and the newspaper which would be placed in order to attract the customers of Nestle. With the help of this, the different packaging materials will be eco-friendly in nature which would be applied by the organization (Lovelock and Patterson 2015).
Nestle has covered most portions of the Australian market for the success of the different products by developing the effective kinds of communication objectives and strategies which will be improving their brand image in Australia. The different communication objectives of Nestle which can be adopted by them in the Australian market are as follows:
Products are the first aspect in which Nestle needs to include the different kinds of beverages such as Nescafe and this will be cash cow for Nestle. The different kinds of milk products which are different kinds of milk related products will be beneficial for the overall success of Nestle in the Australian market. There can be different introduction of the Nestle products such as chocolates which will be helpful in gaining competitive advantage in the market of Australia.
Price is the other aspect in which Nestle will be applying the price skimming strategy which will be beneficial for the company as the lower prices of the different products in the Australian market will be beneficial for the overall success of the organization in a positive manner. This will allow the customers to switch their brands and gain more competitive advantage in the market.
Place is the other aspect in which Nestle can follow the FMCG strategy of the distribution which is involving the breaking bulk and this will be beneficial for the overall success of the organization in an effective manner. This respective tactic will be helpful for Nestle in positioning their brand in Australian market and gain competitive advantage effectively.
Promotion is the aspect in which the different kinds of advertising tactics can be used in order to improve their brand awareness in the market. With the different advertising strategies, this will be helpful for increasing the sales promotion and this will recall the brand value as well (Rossiter, Percy and Bergkvist 2018).
The communication mix is effective in nature which can be used by the different organizations in order to measure the effectiveness of the advertisement along with evaluation of extent which will be helpful in communicating with the advertisement. The different effectiveness of the communication mix of Nestle is inclusive of the following:
According to (), the creative strategy is described as the one which helps in defining that what kind of information is required to be provided to the different customers by the different advertisements. For the advertisements of the different products, proper and effective tagline is required to be provided to the customers which will be beneficial for Nestle in gaining competitive advantage.
The main aim of the communication mix plan will be helpful in improving brand image of the organization and this will allow Nestle in capturing the market effectively as well. The target market of Nestle is inclusive of individuals under age 12 and the main concern is regarding the health of the different individuals who are the target customers of Nestle.
Time Frame- Five Months
Firstly, increasing the awareness of the different target audience to more than 90% is essential which will be inclusive of the awareness related to advertisements on television, newspaper along with other media channels which will help in informing the targeted customers by repeating the analysis of the different aspects of the benefits of the different products of Nestle.
Secondly, increasing the interest among the different customers relating to the benefits which are being provided by Nestle products to the customers. Nestle can be helpful in gaining competitive advantage among the Australian market as this will be helpful in managing the overall motive of the customers.
Thirdly, the purchasing power of the customers is required to be analyzed in an effective manner which will be beneficial for the overall success of the firm. In order to gain competitive advantage and increase the sales of the company, this will be helpful in managing the different kinds of activities which is effective in nature.
Lastly, the brand image can be improved the introducing the communication tactics which will be helpful in managing the overall effectiveness of the firm in a positive manner. Nestle is required to be improve the overall sales of the organization which will be beneficial for the overall success of the firm.
Therefore, this can be recommended that Nestle is required to consider the following aspects in order to become more effective in nature. The different recommendations which can be provided are as follows:
Nestle can include the personal selling aspect as their communication strategy which will be beneficial wherein the focus will be provided on older group individuals wherein the tag line can be changed for the different segments. With the help of personal selling, Nestle will be beneficial in selling the products and there can be analysis of the different appearance and specialist knowledge regarding the products as well.
Furthermore, the promotional and discounted prices are required to be offered to the different individuals on the different special occasions such as for the different regular customers and the special offers can be provided to them which will be beneficial for the overall success of the firm in a positive manner.
The launch of the different health drinks for the older group customers can be beneficial for the overall success of the firm which will be essential for the overall success of the firm. The prices of the different new products which will be launched in the market is required to be lowered down as this will be successful in improving their brand image effectively.
Conclusion
Therefore, from the above, this can be concluded that the different marketing communication tactics which have been adopted by Nestle is effective in nature in order to communicate the different relevant kind of information to the different customers. Apart from the different existing marketing activities along with increase their position in the entire globe, this is required for Nestle should take the take into consideration the different kinds of recommendations which will be helpful in reducing the risks which can hamper the overall growth of Nestle in the market of Australia.
References
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