Discuss about the Marketing Mix of Nestle Organization for Traditional 4Ps of the Both Vompany?
The marketing mix is a position of convenient, planned advertising utensils that work jointly to complete company’s objectives. In this assignment, our main focus is to examine chocolate taking into reflection the 4P’s of the marketing mix. The 4P’s include Product, Place, Price and the Promotion. These 4P’s are equally important for any of the company to identify time to time about the success and the growth of the company and also helps to identify the scenario of the new market trends. (Anpat ,2009) Cadbury’s strategy is basically to attract the customers emotionally associated with the chocolates, whereas nestle treat themselves as a nutrition and health company. Both the companies are advertising through printed media and the posters and pamphlets for the mass communication and promotion.
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There are basically 4Ps which are focused by the companies that are- Product, Price, Place, and promotion.
Cadbury diary milk is made from the actual chocolate which mainly includes cocoa butter. There is always a glass and semi full cream. Diary milk in each 200 grams of Cadbury dairy milk chocolate for making Cadbury milk chocolate they had to buy 65 million liter of fresh milk each year. They are also having some products like- bars, drinks, ice creams and deserts and they also make cakes and cookies. Cadbury is a primary name in chocolates across the world and has its occurrence in all over the world. In chocolate business they have diary milk, five star, and Cadbury éclairs and on the other hand, they have some of the names like- Oreo in the biscuit segment and bourn vita in the beverages segment which is also a brand reader in the milk addictives. (Chaudhuri ,2011)
Nestle is also having a strong product mix like- Chocolates’, beverages, milk and milk products and prepared dishes and cookies. They are having various accepted chocolate products like- Nestle kitkat, munch, milky- bar etc. This is also having a good share in the all over market. They are also earning a very good share in the beverages with a very well known coffee brand Nescafe as they are having the worldwide distribution and it is available all over the world. They are also offering some milk products like- Nestle everyday and Nestle milk and having one more category of prepared dishes like- maggi noodles. Which is one of the most usually sold prepared to cook brand in noodles. Maggi further having some extension like- Maggi pasta, Maggi sauce etc. Nestle is getting a good business value because of Nescafe and magi which is sold across India in small as well as large shops and super markets. This also helps them to be a big competitor. (Thirumal ,2015)
Cadbury is adopting competitive pricing strategy for the basic product whereas they are adopting premium pricing strategy on the other variants. They are also evaluating the pricing method by cutting down the quantity but not increasing the cost for example- for 5 rupees Pack earlier they were offering 13 grams whereas rupees 5 pack is now available with 10.5 grams only. Cadbury is offering quality with the price like- they are having some high prices in some of the cases, while in others it is very much realistic similar to- perk, five star and éclairs which provides the flavor of Cadbury still it lower prices. Cadbury dairy milk has a spot of gifting and selling elevated volumes even at lower prices with the help of Cadbury celebrations pack which sells in millions on every of the festival or celebration all over the world. (Punjwani ,2011)
Nestle is dependent on the market of every individual products like- maggi and Nescafe are the brand best with the higher margins for the business as compare to the opposition also. This is just because of the product value is good quality enough and a bit of high cost will not affect the consumer to change or shift to some further brands. The strength of the pricing for nestle comes from the wrapping or the consumption based pricing. They are offering a lot of sizes and package and options either small or big according to the consumer need like- magi are available in a single pack or it is also available in 16 packs. Nestle always offers competitive pricing. (Jobber ,2001)
Cadbury is manufactured at the chocolate factory in Bourneville. It is further transported to the stock rooms before finally coming for selling it to the shops that deals with the confectionary and the general stores. Then they sell it to the public which is our final consumer. The allotment of Cadbury is incredible and widely spread. It is strongly present in all the urban areas as well as A, B, & C class towns. Cadbury is available in each and every corner because of their widely covering area. In India they are having five manufacturing plants, four sales officers and a corporate office in Mumbai which clearly shows that they are having a strong presence. (Bilal ,2010)
Nestle is basically a Swiss company which is operating in more than 80 countries as a world’s top foodstuff and beverage company. People brands and the product are the main keys. Nestle is basically following the FMCG strategy of the distribution, Which involves manufacturers, C&F agents, distributors, retailers and the consumers. Nestle is known for the strong sales network for marketing and channel distribution for making it more effective. Nestle regularly introduces trade discounts and different imparted to be the channel motivated. Maggi and Nescafe is the mainly demanded product in the market and because of these foodstuffs nestle is capable to move other foodstuffs as well in the marketplace. The distributor is getting a discount on the big product on the purchase of one small product so, that we can also be move the products very easily. The confront for nestle is in the chocolate segments where it faces a huge contest from Cadbury itself enhance selling chocolate becomes more complicated. (Armstrong ,2001)
Promotion is the biggest factor for any of the company. Cadbury promotes each of its products very differently like they are using a tag line “kuch meetha ho jaye “, which means that lets have some deserts and people are always ready to purchase and stock Cadbury chocolates with them. Cadbury is also promoting celebrations pack on every festival. They are also targeting the habits of Indians to have some deserts or sweets after the meals by promoting their punch line “shubh aarambh”, which means having something sweets provides good luck. Cadbury is promoting vary fast through its hoarding, banners on shops, corners or hotels etc. Thus, just because of these actions people always remembered to buy a Cadbury chocolate when they have to buy a chocolate and making Cadbury a fast consumable product.
Nestle is also doing their promotion for their products very smartly for a victorious products or service it means nothing but for the benefits of that products can be promoted to the targeted marketplace. Nestle thinks globally and act locally. They have done a best advertising campaign, which is known as Nescafe tune, which helps them to come with a strong presence in the marketplace. On the other hand, nestle getting a good number of growth by the excellent product quality of maggi. They also promoted a recent promotion which was totally on your maggi story, where public had to come out by different ways those they had their magi. Nestle always do the businesses at the ground level where the promotion of the brand are very easy. Their basic strength is magi, Nescafe and the kitkat chocolate. Nestle also promote their products like giving free samples of the new products free with previous, accepted and prominent product. (Garg ,2010)
The marketing mix activity of any organization does not provide the desired results in two circumstances. Firstly when the organizations overemphasize on one of its products and secondly when it underemphasizes any of its products.
Cadbury is earning the heavy amount of its profits mainly from the sale of the chocolates manufactured by them .In today’s times, there are variety of chocolates available for the customers. Many national and international companies offer a variety of chocolates. Today, Cadbury has captured the whole market of the nation. So, to maintain its share in the market, firstly, Cadbury has to spend hefty amount of its income on the advertising of its product. With the modern times, where everything is technology driven, advertising is done through various channels which involve a big cost for the organization. Secondly, when there are large variants of chocolates available in the market, Cadbury is also required to continuously do some innovations in their product which requires heavy amount of expenditure in the form of Research and Development. Also, the business of chocolates is also influenced by the festivals celebrated in the nation because today many customers use chocolates as the gift item on many occasions. So in the season of festivals, Cadbury has to increase its advertising spree as well as its production. With increased production, there also comes the risk of handling and storage as the chocolates have some specific shelf life. (Chavan ,2010)
On the other hand, Nestle is earning mainly from the sale of its two products- its coffee (Nescafe) and it’s easy to cook noodles (Maggi). No matter Nestle does not have many competitors in both its main products. But, the biggest challenge faced by the organization is that the beverage offered by them is not used by every household in the nation and even the household which use it are not the regular users of it. Coffee is a product which is not regularly consumed during the whole year. It is highly influenced by the climatic conditions of the nation on which no one has control over. On the other hand, Nestle earned hefty amount of loss of income due to legal issues raised over the safety of its product ‘Maggi’ in the country- India. Due to which, Nestle was also required to spend a lot of money to maintain its goodwill in the market. (Jurevicius ,2013)
Both the organizations offer a variety of products. So in their present scenario, it would be beneficial for them if they equally focus on their other products to upgrade their income. Cadbury should make its efforts channelize to increase the sale of its other products like biscuits. Today when the name of Cadbury is spoken, only the chocolates are remembered. It should create awareness among people about their other products also. On the other hand, Nestle should work upon to maintain its goodwill in the market in terms of safety of their product so that it’s no competitor could take up their share in the market.
Conclusion-
Cadbury, chocolate company is a beverage manufacturing, established in 1905 at Bournville, U.K. Its Headquarter is in Bourneville, U.K. Nestle is a Beverage and chocolate manufacturing established in 1867 union of the Anglo- swiss milk company. Nestle and Cadbury are opponent and both are manufacture a viable product like Cadbury- milo. Both companies are deciding his price on the opposition bases but price is extremely flexible, Nestle come down price very rapidly. Nestle and Cadbury spread global. Nestle and Cadbury doing a large amount advertisement. But Cadbury additional advertisement in contrast to Nestle, both company have film star, cricketer for advertisement. Brand plays a main role for development in spirited business setting. It helps to sustain productivity in long run through differentiation in the products and reliability of consumer. Cadbury dairy milk trademark has developed its megabrand product choice having its individual personality, but now they all come in the dairy milk trademark. The suggestion point is designed to exploit the strong point of the both brand. The basis of the brand is your sign, website, wrapping and promotional material all of which should join together your logo communicates your trademark. (Gilber ,1995)
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Chavan, K 2010, ‘Weaknesses of the both brand and suggestion’,SWot analysis.
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Gilber, A 1995, ‘Conclusion’,Marketing.
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Punjwani, R 2011, ‘Traditional 4Ps for both the companies’,Cadbury Dairy Milk’s Marketing Mix!.
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