Midterm Marketing Management - B05E PDF
Midterm Marketing Management - B05E PDF
Midterm Marketing Management - B05E PDF
MARKETING MANAGEMENT
MIDTERM EXAM
COMPANY: NESTLE
Bui Van An
Ha Vu Yen Nhi
2. The marketing process is a continuous, cyclical series of steps that guides companies in
their efforts to understand and reach their target audience. (amis.misa.vn, 2023) These
steps typically include:
- Market research and analysis: Collect and analyze data about target markets,
competitors, and industry overview.
- Market segmentation and targeting: Identify and group potential customers
based on common characteristics and needs.
- Product/service development and positioning: Create or refine products or
services that appeal to selected target segments and provide unique value.
- Pricing and distribution strategy: Determine appropriate price points and
distribution channels to reach target audiences effectively.
- Customer service and relationship building: Foster lasting connections with
customers through excellent service and ongoing communication.
- Measure and evaluate performance: Monitor and analyze the results of
marketing activities to evaluate their effectiveness and make necessary
adjustments.
3. Key roles in Marketing
Create value: Understand and satisfy the needs and wants of your target audience
through your products or services.
Provide value: Ensure that your product or service meets customer expectations and
delivers real satisfaction.
Value exchange: Build mutually beneficial relationships with customers through fair
and transparent transactions.
III. Roles and responsibilities of Marketing in Nestle.
1. Marketing department strategy of Nestle company
Market research
- The marketing department conducts market research to fully know the market,
customer wants and needs
- Detailed research on trends and competitors in the market
For example, Nestlé used market research to develop formula milk products
such as the first formula milk powder product supplemented with 5HMOs
nutrients in the Nestlé NAN product line, which will help children increase
their resistance to children.
- Marketing also has an influence on the production department. Through
marketing strategies, marketing helps businesses determine which products and
services need to be produced more, thereby helping the production department
adjust production plans accordingly.
For example, Nestlé used advertising on television, radio, newspapers, and
social networks to promote Nescafé coffee products. Nescafe sales increased,
causing the production department to increase Nescafe production output.
- Marketing also has an influence on the sales department. Through marketing
strategies, marketing helps businesses reach target customers, thereby making it
easier for the sales department to sell products.
For example, Nestlé has used television advertising to reach more customers,
especially children. Milo's commercials are often broadcast during prime time.
These advertisements often use eye-catching images and music, along with
messages that clearly convey the benefits of Milo products. This helps the sales
department easily sell more Milo milk products
- Marketing also has an impact on the finance department. Through marketing
activities, marketing helps businesses increase sales, thereby helping the finance
department increase revenue and profits.
For example, Nestlé also regularly gives gifts to customers when buying its
products such as Milo milk , buy 2 bags or 3 Milo 3 in 1 strings.
Marketing needs to have close interaction with other functional departments
within the Nestlé company organization to ensure that business activities are
carried out effectively.
1. Marketing influences and interacts with functional departments that support the broader
organizational context of Nestlé's corporate vision, mission and purpose as follows:
- Nestlé's company vision is to become the world's leading food and beverage
company, trusted and loved by everyone. Marketing helps businesses achieve this
vision by building positive brand awareness and attracting new customers.
For example, Nestlé partners with prestigious events and organizations to
increase awareness of its brand by sponsoring city-organized football sports
tournaments.
- Nestlé's corporate mission seeks to provide high-quality, nutritional products
and services that meet the needs and desires of customers, while creating value
for stakeholders. Businesses build on this mission by developing products and
services that meet customer needs and building strong relationships with
customers.
For example, Nestlé developed the product Milo to meet children's needs for a
nutritional product that helps children improve their physical and mental health.
- Nestlé's corporate purpose is to create a better world by nurturing and
protecting people and the planet. To achieve this purpose by raising awareness
of social and environmental issues and supporting Support social responsibility
initiatives.
Nestle has an official Facebook page where they share information about products,
recipes, news, and events related to the brand. They also use Facebook ads to show new
products and special offers to users.
Twitter: Nestle also has an official Twitter account where they share news, product
updates and engage in conversations with users. They use hashtags and related tags to
mention their products and special events.
Instagram: Nestle uses Instagram to share attractive images and videos of their products.
They leverage Instagram features like Stories and IGTV to showcase products, provide
recipes, and create passion with users.
\
Focus on product quality: Nestle focuses on providing high quality products and
meeting customer needs. The company also focuses on improving the quality of its
products through research and development programs.
- Nestle Pure Life - Pure ice mineral water: Nestle has set the goal of providing
high quality drinking water to consumers.
Product promotion through events and sponsorship: Nestle often sponsors sporting and
cultural events to promote its products and increase brand awareness.
The marketing department works closely with the production department to ensure that:
- Full research and development is planned to meet current and future customer
needs
- Items can be manufactured according to the quality and design that consumers
desire
- The volume of orders generated by marketing activities can be met within the
timetable
Close coordination between the marketing and finance departments helps Nestlé
ensure that the advertising campaign will be financially successful. The campaign
achieved its brand awareness and sales goals.
V. Micro environment and Macro environment
1. Micro environment
Enterprise
- Human Resources
Nestlé: A pioneer in building a sustainable working environment
Nestlé is one of the world's leading food corporations, always striving to focus on
sustainable and stable development. In particular, human resources are considered an
important factor that determines the success of an enterprise.
To attract and retain talent, Nestlé has built a sustainable working environment,
including:
Competitive salary and benefits system: Nestlé offers employees a dynamic
salary and benefit system that competes with the market in all aspects,
including salaries, bonuses, additional benefits and social benefits .
Fair recruitment: Nestlé recruits fairly based on employees' abilities,
regardless of gender, age, religion ,...
Continuous training policy: Nestlé maintains a continuous training policy
from factory staff to senior management, to help employees develop
comprehensively and improve professional capacity.
Modern, comfortable working space : Nestlé's office is designed based on
the idea of a logo-like bird's nest, creating a feeling of comfort and relaxation
for employees.
With these efforts, Nestlé has built a sustainable working environment, attracting and
retaining talented people, contributing to the sustainable development of the business.
- Supplier:
Is a leading corporation in the field of food and nutrition. Nestlé not only provides
high quality and safe products for health. That's why choosing a supplier is extremely
rigorous and strict
Service providers for companies need to comply with the business principles of the
enterprise. It is these principles that have created Nestlé a system of reliable suppliers and
guaranteed product quality.
Principle 1: Integrity in business
Principle 2: Sustainability
Principle 3: Labor standards
Principle 4: Safety and health
Principle 5: Environment
Marketing Intermediaries
Marketing intermediaries are a special form of Marketing with the main objects being
production units, brands ,... and product distributors. Accordingly, instead of doing many
things at once such as production and marketing, big brands authorize marketing
intermediaries to promote and bring products to customers more quickly on their behalf.
- Distribution and transportation intermediaries:
Nestlé Vietnam has a large, modern and efficient distribution and transportation
system. This company currently operates 6 factories and nearly 2,300 employees
nationwide, including 4 distribution centers: 2 centers of Nestlé Vietnam and 2 centers of
La Vie. In 2019, Nestlé Vietnam opened a new Distribution Center in Thang Long II
Industrial Park, Hung Yen province. This center is equipped with modern technology of
the 4.0 era, helping to speed up the transportation and preservation of goods and ensure
the highest quality of products when supplied to the market. (Vietnamplus.vn, 2019)
With a modern distribution and transportation system, Nestlé Vietnam can bring food
and beverage products to consumers nationwide quickly and conveniently.
- Financial intermediation:
Nestlé is a large corporation, so financial control is extremely important and necessary.
It is not easy for a large company to manage its own financial problems, so Nestlé also
needs big banks, credit institutions or insurance companies, etc. to be able to protect risks.
finance in the business process and bring your business to sustainable growth.
Competitors
Currently, there are 3 brands in the drinking milk industry that can be compared to
Milo in the Vietnamese market. Include:
- VINAMILK: Vietnam Dairy Products Joint Stock Company
VNM is currently the leading enterprise in the milk processing industry, accounting
for more than 54.5% of the liquid milk market share, 40.6% of the powdered milk market
share, 33.9% of the drinking yogurt market share, and 84.5% of the yogurt market share.
and yogurt. 79.7% market share of condensed milk nationwide.
In addition to strong domestic distribution capabilities with a network of more than
220,000 sales points covering 63 provinces and cities, VNM's products are also exported
to 43 countries around the world such as the US, France, Canada, Poland, and Germany. ,
Japan. Middle East, Southeast Asia… (Brademar.com, n.d.)
- Dutch lady:
- Ovaltine:
Ovaltine is a famous milk brand originating from Switzerland, established in 1904.
Most of Ovaltine's products use extracts from barley, milk and cocoa. Ovaltine is
exported to many countries and the United Kingdom was the first country Ovaltine chose
to invest in and develop in 1909. Up to now, after more than a century of development,
Ovaltine has been present in many countries, in almost all countries. on all continents and
is popular
Client
Nestlé is a world leading multinational corporation in the field of food and beverages.
Nestlé's business strategy is to become a leading, competitive company, bringing health,
nutrition and value to customers. To achieve this goal, Nestlé always researches
customers' preferences and consumption habits to produce products suitable for each
audience.
For children, Nestlé pays special attention to developing nutritional products to help
children develop comprehensively. One of Nestlé's outstanding products for children is
Milo milk with Actigen-E and Protomalt formula to help enhance physical and mental
health.
With the right business strategy, Nestlé has become one of the world's leading food
and beverage corporations, loved by a large number of customers globally.
Nestlé is committed to providing high quality products and services that are safe and
meet company standards. To fulfill this commitment, Nestlé:
- Ensure product safety and regulatory compliance by adhering to all policies,
guidelines and standards.
- Ensure and enhance the popularity and stability of products and services by
bringing the best value to consumers.
- Always aim for zero errors and zero waste by continuously improving.
- Ensure the commitment of each member of the company to build a spirit of
quality.
General public
Nestlé is a multinational corporation specializing in the production of food, beverages
and health care products. To promote the company's products as well as its name, Nestlé
has deployed many marketing campaigns, including the PR campaign "For a dynamic
Vietnam" in the Vietnamese market. This campaign is implemented under Project 614
Overall development of Vietnamese stature in the period 2011-2030. The campaign aims
to encourage an active, healthy lifestyle, regular exercise and sports, contributing to
improving the physical fitness of Vietnamese people.
The campaign includes cross-cutting activities, such as:
- Walking Festival: This is an annual activity, attracting a large number of
participants of many ages.
- Energy summer camp: This is a program for children, helping them participate
in sports activities, physical and mental training.
- Milo-Barcelona Training Camp: This is a training program for young athletes,
helping them access modern training methods.
(Nestle.com.vn, NESTLÉ MILO TỔ CHỨC TRẠI HÈ NĂNG LƯỢNG 2023
(E-CAMP) - TRUNG TÂM RÈN Ý CHÍ CHO NGÀN TRẺ EM TRÊN TOÀN
QUỐC, 2023)
Nestlé's communication crisis:
Milo products have a foul smell, strange milk substance or maggots
On the customer side:
- Nestlé directly recalled the product for inspection and apologized.
- Nestlé announced product testing results on its official website and sent a press
release to explain the incident.
- Nestlé has worked with stakeholders to prevent the spread of false information.
On the press side:
- Nestlé has been transparent about the incident.
- Nestlé has compensated customers for damages.
- Maggi noodles contain lead
On the customer side:
- Nestlé destroyed 400 tons of Maggi noodles and stopped producing this product.
- Nestlé has compensated customers for damages.
- Nestlé explained to the press the origin of Maggi noodles containing lead.
On the press side:
- Nestlé has been transparent about the incident.
- Nestlé has compensated customers for damages.
Conclusion: By being transparent with information and compensating for
damages, Nestlé has built customer trust and reaffirmed its position in the
Vietnamese market.
2. Macro environment
Demographic
As of December 31, 2022, Vietnam's population is estimated to be 99,329,145 people,
an increase of 784,706 people compared to the previous year's population of 98,564,407
people.
In 2022, the natural population growth rate is positive because the number of births
exceeds the number of deaths by 879,634 people. Due to migration, the population
decreased by 94,928 people.
Nestle's opportunities and challenges when entering the Vietnamese market
- Opportunity:
With a rapidly growing population, Vietnam is a potential market for businesses,
including Nestlé. Population increase means the number of consumers increases, creating
consumption opportunities and increasing revenue for businesses.
In addition, the increasing living standards of Vietnamese people also create
conditions for Nestlé's manufacturing industries to develop. As living standards increase,
people tend to spend more on nutritious, healthy products, such as milk, coffee, candy ,...
Nestlé has grasped these opportunities and has appropriate development strategies.
Specifically, Nestlé has segmented the market by age, region ,... to meet the needs of
each customer group.
For example, Nestlé Milo focuses mainly on children aged 6-14 years old, which is the
age group that needs the most energy supplementation. Nestlé has also launched many
products with many unique flavors, suitable for the tastes of each region.
Thanks to understanding the population situation, urban and rural population ratio,
migration rate , etc. Nestlé has launched many products that keep up with market trends.
This has helped Nestlé grow strongly in the Vietnamese market.
- Challenge:
The Vietnamese market also has challenges for businesses, including Nestlé. One of
the biggest challenges is fierce competition from domestic and foreign businesses.
In addition, Vietnamese consumers are increasingly demanding high quality products
and services. This requires businesses, including Nestlé, to constantly innovate and
improve the quality of products and services to meet consumer needs.
3. Legal politics
Nestlé Vietnam has been commended for 9 consecutive years for good implementation
of tax policies and laws, and contributions to the state budget. However, the business also
encountered some scandals about the quality of Milo milk products in 2021 and 2017.
After discovery, Nestlé quickly checked and fixed the problem.
Thanks to the stable political environment and economic promotion policies, Nestlé
Vietnam is expected to continue to develop and expand investment in the Vietnamese
market.
- Sociocultural:
Vietnam went through a difficult period, causing nutrition issues to be forgotten.
However, thanks to the strong development of media, people are becoming more and
more aware of the importance of daily nutrition. This has helped Nestlé easily access
domestic and international markets.
The beverage market in Vietnam is a potential market, especially in cities and towns.
Here, modern lifestyles are becoming increasingly popular, requiring companies to
continuously improve products to meet consumer needs.
Nestlé has been implementing many community programs focusing on three main
areas: nutrition, water resources and rural development. In particular, the Nescafé Plan
project implemented since 2011 in the Central Highlands of Vietnam has contributed to
stabilizing raw material sources, improving the quality of Vietnamese coffee beans and
farmers' income. This is the basic foundation of Nestlé's business activities to create long-
term value for the entire society
- Economy
Climate change is an urgent global issue, requiring the cooperation of all countries and
businesses. Understanding this, Nestlé has set a priority to combat climate change in its
development strategy.
To achieve this goal, Nestlé has been implementing many regenerative agriculture
initiatives. Regenerative agriculture is a sustainable farming method that helps protect
land, water resources and natural ecosystems.
One of the reasonable intercropping trends being encouraged by Nestlé is growing
pepper among coffee. This model has many benefits, including:
Enhance biodiversity, improve water cycles, preserve ecosystems and increase
soil resilience to climate change.
Reduce the amount of inorganic fertilizers, increase the use of organic
fertilizers and compost from coffee husks and post-harvest by-products.
Save irrigation water by applying economical irrigation techniques such as drip
irrigation, sprinkler irrigation or using simple, easy-to-find and cheap tools.
With these practical benefits, regenerative agriculture is being considered an effective
solution to cope with climate change. Nestlé is committed to continuing to implement
regenerative agriculture initiatives, contributing to building a sustainable agriculture and
protecting the environment. (Nestle.com.vn, 2022)
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