MOD004454 Marketing Planning

STUDENT ID – 1827910
STUDENT NAME – Lijo Jacob

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TABLE OF CONTENT

TITLE PAGE

THE ORGANIZATION 3

MISSION STATEMENT 4

NON-FINANCIAL GOAL 4

FINANCIAL GOAL 4

CORE COMPETENCIES & SUSTAINABLE COMPETITIVE ADVANTAGE 5

& CUSTOMER SEGMENTATION

SECTOR TRENDS 5

FINANCIAL PERFORMANCE ANALYSIS 6

SWOT ANALYSIS OF NESTLE 9

PESTEL ANALYSIS 10

KEY DRIVERS OF CHANGE 11

COMPETITORS ANALYSIS 11

COMPETITOR ANALYSIS- BRITANNIA 14

SWOT ANALYSIS OF BRITANNIA 16

BIBLIOGRAPHY 19

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 SITUATION ANALYSIS
THE ORGANIZATION (Nestle, 2019)

Nestlé which is the largest global food and beverage company was found in the year
1866 and it is headquartered in Switzerland.

They have their presence in 191 countries across the globe and they have more than
2000 brands under them both global and local.

NESTLÉ India has its manufacturing facilities across India the first manufacturing
facility was setup at Moga in Punjab in the year 1961.In total there are 8 manufacturing
facilities in India.

Nestle has 4 Branch Offices in India wherein promotion and sales decisions are planned
and facilitated. The Nestle India’s Head Office is located in Gurgaon, Haryana.

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MISSION STATEMENT (Nestle, 2019)

Nestle is the world's leading nutrition, health and Wellness Company. The mission is "Good
Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide
range of food and beverage categories and eating occasions, from morning to night.

GOALS

NON FINANCIAL GOALS

To gain share in terms of sales and customers in the market and retain them by producing a high-
quality products.
Spend money on R and D and adequate marketing to make sure that product is of high quality
and market awareness is created about the product.
To ensure that advanced technology is used for production purpose and that demand is always
fulfilled.
To continue to be the market leader in volumes and to ensure that cost of the production is kept
minimum thereby keeping the price of products low.

FINANCIAL GOALS

Nestlé’s financial goal is to continue to generate sufficient funds i.e. to have a sustainable financial
performance to maintain its current activities and to reinvest surplus in R&D and business.

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CORE COMPETENCIES & SUSTAINABLE COMPETITIVE ADVANTAGE

 Nestle has a wide variety of brand under its umbrella they have a wide variety of products
that targets every age group.
 Their core competency lies in superior quality of products and the kind of aggressive
advertisements they use to promote their products.

Nestle has a massive competitive advantage when compared to its peers because of the following
reasons

 Nestle spends a massive amount of money in R&D to ensure that quality of products is
maintained. (Nestle, 2019)
 Nestle favors long term development over short term profit; it believes in maintaining long
term commitments and relationships. (Nestle, 2019)
 Nestle has been able to leverage technology in terms of both production of products as
well as ensuring that the products are promoted and marketed well. (Nestle, 2019)

SECTOR TRENDS (IBEF, 2019) (Fieldassist, 2019)

 Fast moving consumer goods (FMCG) are the 4th largest sector in the Indian economy.
 The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of
27.86 per cent to reach US$ 103.7 billion by 2020.
 The focus on agriculture, MSMEs, education, healthcare, infrastructure and tax rebate
under the Union Budget 2019-20 will directly impact FMCG sector.
 Brand consciousness – Consumers are increasingly becoming aware and prefer lifestyle
and premium range products owing to higher disposable income.
 FMCG companies are stressing on innovating their existing product portfolio and
developing new ones.

.CUSTOMER SEGMENTATION

 It has a vast geographic presence with varied product range targeting customers
irrespective of age groups but major market share is through youngsters. (Nestle, 2019)
 In India its major share is in urban area and most of the revenue comes from milk based
products.

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FINANCIAL PERFORMANCE ANALYSIS

INCOME STATEMENT COMPARISON (Nestle, 2019)

NOTE: ALL THE FINANCIAL DATA IS IN MILLIONS CHF

From the analysis of Income statement there has been a substantial increase all parameters from
2017 to 2018.

BALANCE SHEET COMPARISON (Nestle, 2019)

From the analysis of Balance sheet a decrease has been observed in Total Non-current assets and
Total Equity while rest of the parameters have seen increasing trend from 2017 to 2018..

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CASH FLOW COMPARISON (Nestle, 2019)

From the analysis it is clear that there has a fall in Cash and cash equivalents at year end as
compared to last year but all other parameters have increased from 2017 to 2018.

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 (Vyas, 2018)

PRODUCT PORTFOLIO NESTLE (BusinessStandard, 2017)

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SWOT ANALYSIS OF NESTLE

•Highly differentiated organization.

•Serves various fragments of market.
STRENGTHS •Good associations with different organizations.
•Strong R&D abilities.
•Vast geographical presence.

•Excessive reliance on advertisements for

marketing resulting in high marketing cost
without guaranteed results.
•Accusations of compromise in product
WEAKNESSES quality in recent times.
•Allegations of child labour in production
facilities.

•Changes in lifestyle.
•Advancement in online retail could open
up new spread channels.
•Developing work area classes in
OPPORTUNITIES countries, for example, China India.
•Size of rural FMCG Indian market by
2025-US.
•In FY19, FMCG’s rural segment is
forecasted to contribute 15-16% of total
income. $ 220 billion .

• High competition in the food and beverage

industry.
THREATS • Ever increasing price of raw materials is
problematic for food and beverages industry.

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 PESTLE ANALYSIS
Political Factor –

 India because of being a democratic country is considered to be highly politically stable and
in the recent few years many pro-business decisions has been taken.
 Implementation of GST has reduced the complications of multiple taxes and improved the
way in which business is being.(AnkitAgarwal, 2018)
 The government is taking necessary steps towards create a single policy framework which
will bring together retail, FMCG and e-commerce which will ease the concerns of industry
and consumers. (EconomicTimes, 2016)

Economic factors-

 Increased Purchasing Power amongst masses due to Increased Income levels.

 Higher Rate of Urbanization.
 Depriciating INR with respect to other currencies will also have a major impact on Nestle
because it is a company that exports and imports goods from many
countries.(Infodriveindia, 2019)
 India set to become the fifth largest economy in the world by 2019. (PrableenBajpai, 2019)

Social factors-

 Nestle has promised to reduce salt, sugar, sodium and trans-fats content in its product for the
consumers with key focus on the health of the consumers. (Nestle, 2019)
 The company adheres to its strong values and principles in order to build the trust of its
consumers. (Nestle, 2019)
 Increase in population, coupled with higher percentage composition of Young population.

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Technological factors-

 Nestle has a brand has efficiently used social media and it is continuing to do so and it is
penetrating different segments and creating awareness about its products through social
media.
 For example, #WeMissYouMaggi campaign was used to bring back Maggi Noodles after it
was banned in India. Nestle partnered up with Snap deal to ensure the comeback of Maggi
Noodles. (ET, 2015)
 Nestle is uses the state of the art technology for the production of various products. (Nestle,
2019)

Legal factors

 Nestle has to follow the health and safety laws for their employees and also to produce
hygiene products for the customers. (Nestle, 2019)
 Allegations of child labour in production facilities. Nestle should ensure that it follows all
employment laws at production facility. (Bellon, 2018)

Environmental factors-

 Environmental Safety parameter of extreme importance for present & future business
growth.

 Nestlé has been reducing the weight of packaging since 1991, with a reduction of over 500
million kg to date. (Nestle, 2019)

 Nestlé has a mobile application for iPhone and Android devices to help people recycle waste
packaging correctly. (Nestle, 2019)

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KEY DRIVERS FOR CHANGE

 The digital era is at the peak Nestle can use this digitalization to its benefit in terms of
promotion of the brand as well as establish an online presence.

 Nestle partnered with Snapdeal to re-launch Maggi in India after the ban ended.

 The ever increasing population of youngsters can also be leveraged by Nestle for success
in business.

 Nestlé has been reducing the weight of packaging since 1991, with a reduction of over
500 million kg to date. (Nestle, 2019)

 Nestlé has a mobile application for iPhone and Android devices to help people recycle
waste packaging correctly. (Nestle, 2019)

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COMPETITORS ANALYSIS (Consultancy.uk, 2018)

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Competitor Analysis-Britannia India (Britannia, 2019)
Britannia Industries is one of India’s leading food companies with a 100 year legacy and annual
revenues in excess of Rs. 9000 Cr.
Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products
including Cheese, Beverages, Milk and Yoghurt.
Britannia products are available across the country in close to 5 million retail outlets and reach
over 50% of Indian homes.
They have a presence in more than 60 countries across the globe.

Britannia Portfolio (Britannia, 2019)

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SWOT ANALYSIS OF Britannia India

• Presence for over 120 years.

• Strong brand recall and trust.
• Strong distribution network.
STRENGTHS • Presence in rural markets.
• Vast variety of products for every
segment.

• Over dependency on the biscuit business.

• Struggling dairy business.
WEAKNESSES • Heavy expenses on advertisement and
marketing.

• Changes in lifestyle.
• Advancements in online medium
can be beneficial for the business in
terns of both distribution and
OPPORTUNITIES promotion.
• Size of rural FMCG Indian market
by 2025-US $220 Billion.
• In FY19, FMCG’s rural segment is
forecasted to contribute 15-16% of
total income.

• High competition in the food and beverage

industry.
THREATS • Ever increasing price of raw materials is
problematic for food and beverages industry.

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IMPLICATIONS OF COMPETITORS BUSINESS MODEL ON NESTLE
 Nestle should take aggressive steps with regards to pricing and marketing activities so
that the product penetrates rural segment.
 Nestle should take steps to ensure that it continues to grow and consolidates its market
share.

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BIBLIOGRAPHY

AnkitAgarwal, 2018. http://www.businessworld.in. [Online]

Available at: http://www.businessworld.in
[Accessed 12 April 2019].

Bellon, T., 2018. https://www.reuters.com. [Online]

Available at: https://www.reuters.com
[Accessed 12 April 2019].

Britannia, 2019. http://britannia.co.in/about-us/overview. [Online]

Available at: http://britannia.co.in/about-us/overview
[Accessed 12 April 2019].

BusinessStandard, 2017. www.rediff.com. [Online]

Available at: https://www.rediff.com/business/report/move-over-maggi-nestle-will-sell-pet-food-
woof/20170518.htm
[Accessed 06 March 2019].

Consultancy.uk, 2018. https://www.consultancy.uk/news/18765/the-50-largest-fmcg-consumer-goods-

companies-in-the-world. [Online]
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companies-in-the-world
[Accessed 08 March 2019].

EconomicTimes, 2016. https://economictimes.indiatimes.com. [Online]

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[Accessed 12 April 2019].

ET, 2015. https://economictimes.indiatimes.co. [Online]

Available at: https://economictimes.indiatimes.co
[Accessed 12 April 2019].

Fieldassist, 2019. https://www.fieldassist.in/blog/indian-fmcg-industry-expected-evolve-2020/. [Online]

Available at: https://www.fieldassist.in/blog/indian-fmcg-industry-expected-evolve-2020/
[Accessed 12 April 2019].

GeneralMills, 2019. www.generalmills.co.in. [Online]

Available at: https://www.generalmills.co.in/
[Accessed 06 March 2019].

IBEF, 2019. https://www.ibef.org/industry/fmcg.aspx. [Online]

Available at: https://www.ibef.org/industry/fmcg.aspx
[Accessed 07 March 2019].

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Infodriveindia, 2019. https://www.infodriveindia.com. [Online]
Available at: https://www.infodriveindia.com
[Accessed 12 April 2019].

Nestle, 2019. https://www.nestle.com. [Online]

Available at: https://www.nestle.com
[Accessed 12 April 2019].

Nestle, 2019. https://www.nestle.com/aboutus/quality-and-safety/how-we-ensure-food-safety. [Online]

Available at: https://www.nestle.com/aboutus/quality-and-safety/how-we-ensure-food-safety
[Accessed 12 April 2019].

Nestle, 2019. https://www.nestle.com/asset-

library/documents/reports/csv%20reports/environmental%20sustainability/sustainability_review_englis
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Nestle, 2019. https://www.nestle.com/asset-

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[Accessed 12 April 2019].

Nestle, 2019. https://www.nestle.in/csv/tastier-healthier/sugar-sodium-fat. [Online]

Available at: https://www.nestle.in/csv/tastier-healthier/sugar-sodium-fat
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Nestle, 2019. https://www.nestle.it/asset-

library/documents/pdf_nostri_report/13_innovatingthefuture.pdf. [Online]
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Nestle, 2019. www.nestle.com. [Online]

Available at: https://www.nestle.com/
[Accessed 12 March 2019].

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PrableenBajpai, 2019. https://www.investopedia.com. [Online]
Available at: https://www.investopedia.com
[Accessed 12 April 2019].

SeattlePi, 2019. www.seattlepi.com. [Online]

Available at: https://www.seattlepi.com/business/fool/article/A-Staple-of-the-Global-Consumer-Foods-
Industry-4463879.php
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