Rome Business School

Mark  

 
Name Ms. Aye Aye Mu
Registration No.  
Subject Marketing Management
Lecturer Name
Professor Dr. Thin New Oo

Daw Zarni Min

Title Final-Term Assignment

Word Count 2068

Submission 27 ᵗʱ October 2019

Content

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- Executive Summary ......................................................................... pg-4

1. Introduction ......................................................................... pg-4

2. Purpose ......................................................................... pg-4

3. Current Market Situation ......................................................................... pg-5

3.1 Segmentation ......................................................................... pg-5

3.1.1 Demographic ......................................................................... pg-5

3.1.2 Psychographic ......................................................................... pg-6

3.2. Target Market ......................................................................... pg-6

3.3 Position ......................................................................... pg-6

4.0 Environment Analysis ......................................................................... pg-7

4.1 Internal environment ......................................................................... pg-7

4.2 External environment ......................................................................... pg-7

5.0 SWOT Analysis ......................................................................... pg-9

6.0 Marketing Objectives ......................................................................... pg-9

6.1 Mission Statement ......................................................................... pg-9

6.2 Vision and values ......................................................................... pg-10

6.3 Objectives ......................................................................... pg-10

6.3.1 Financial objectives ......................................................................... pg-10

6.3.2 Marketing objectives ......................................................................... pg-10

7.0 Marketing Strategies ......................................................................... pg-10

7.1 Strategic Partnership ......................................................................... pg-11

7.2 Differentiation & positioning strategy ..................................................... pg-11

7.3 Aggressive growth strategy ...................................................................... pg-11

8.0 Marketing mix (4P) ........................................................................ .pg-11

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9. Action program ......................................................................... pg-12

10. Budget ......................................................................... pg-13

11. Monitor and Control ......................................................................... pg-13

13.0 Conclusion ......................................................................... pg-13

Reference ........................................................................ pg-14

Executive Summary

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 The purpose of this assignment is to provide a marketing plan to highlight one of
the product line extensions of Nestle, the largest food and Beverage Company. It
explains the current market situation with a focus on the internal and external
environment of Nestle. And SWOT analysis that helps the company in Myanmar to
identify its strengths and weakness and to understand about the opportunities and threats
likely to be faced by the organization. In addition, the plan includes the marketing
strategies, brand promotion strategies, marketing mix and the competitive strategies
adopted by Nestle. The action program, evaluation and control are the conclusion of the
marketing plan.

1.Introduction

Based in Switzerland, Nestlé is the largest food and beverage company in the
world in terms of the revenue it generates. It’s also known as the world’s leading
nutrition, health and wellness company with 2000 different brands of over 7 food and
beverage categories and millions of customers worldwide. Several major consumer
brands such as Nescafé, Nestea, Nestle, Purina, KitKat and Vittel, including many other
prominent brands are under its ownership. Powdered and liquid beverages, milk products,
ice cream, confectionary and pet care products are its main products. Nestle selected six
brands to market in Myanmar namely Nescafe’, Milo, Bear Brand, Lactogen, Maggi and
Cerelac. It launched the Bear Brand and rich malted milk in Myanmar in 2017. It’s
entirely developed for the people of Myanmar and adjusted to the local taste.

2.Purpose

The main purpose of this marketing plan is to boost brand awareness of Bear
Brand Enriched Malted Milk and from there to increase market share and increase growth
by creating nutritional value for the customers. Nestle purpose itself is to enrich the
quality of lives and contribute to a healthy future.

3.Current Market Situation

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 The current market situation explains the organization’s marketing environment
and segmentation, targeting and PEST analysis.
In Myanmar, food and beverage industry is very competitive with local and foreign
brands. Nestle’ is a market leader for most of the brands it invested in Myanmar but it
needs to try to get the similar position for Bearn Brand enriched malted milk. With food,
package and beverages continuing to grow and the market focused to become US$ 5
billion by 2020, it's important for a global firm like Nestle to acquire a greater market
share against its competitors.

3.1.Segmentation

With market segmentation, targeting and positioning, decisions are made which
customers to provide and how. According to the report of World Health Organization,
people in developing countries are facing the iron deficiency problems and Myanmar is
no exception. They need to be educated how their health can be affected due to lack of
adequate iron and calcium in their body. Following is how Nestle segments based on;

3.1.1.Demographic

Gender: Both genders with especial emphasis on female group as Bear Brand Malted
Milk is targeted for the entire family.

Age: Starting school-aged children who need food supplement to adult with calcium and
iron deficiency

Income: Primarily consumers with middle and upper range-income and secondarily low-
income customers whose preference shifting to the brand products

Lifestyle: Modern time-constrained lifestyle

3.1.2 Psychographic

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 With the easily availability of information and the impact of influencers,
customers are becoming more brand-conscious and opt for healthy and nutritious drink.

3.2 Target Market

Target segment-1

Educated working adult with mid-range and higher income are getting aware of
the importance of healthy food and drink and be careful with their daily food intake.

Target market-2

Myanmar house wives who love green tea and pickled salad need to supplement
iron in their daily food intake. They are influencers of their family (parents, husbands and
children), especially for the food they take.

Target market-3

For pregnant women, Bear Bran enriched malted milk serves a better choice for
calcium and iron they need during their pregnancy.

Target market-4

Teenage girls who lose iron during their period

Target market-5

School-aged children whose brain function and concentration relate to the food
they take.

3.3 Positioning

Bear Brand Malted Milk is positioned by its mission of building strong Myanmar
families and providing healthy future by raising public awareness of iron deficiency
related problems and delivering quality product with differentiated nutritional values at
affordable price. With its strategic Marketing efforts, customers will feel that Bear Brand
Malted Milk is more than a drink but help them fight against iron deficiency.

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Furthermore, Nestle Myanmar is building on its strong position in emerging markets by
allocating capital for growth.

4. Environmental analysis

4.1 Internal environment

Nestle focuses on the welfare and satisfaction of its workforce well which results
in the employees working hard to reach the goals and objectives set by the organization.

Nestle has efficiently employed its resources to the maximum extent.

It possesses a good reputation among customers by creating customers’ satisfaction and

superior value.

It employs more local staff with strong knowledge of the local market, taste and needs of
customers and expertise to achieve organization’s goals and objectives.

4.2 External environment

Competitive forces

One of the key threats that affect Nestle’ is competitive rivalry which comprises
numerous small, large and multinational companies. And it has to compete with the local
companies operating pretty well with respect to local taste. They are pretty active with
good distribution and also active in following the role of development.

Analysis on existing competitors

Nestlé competitor Unilever opened a production facility in May 2013. In June

2013, soft-drink manufacturer Coca-Cola opened a bottling factory outside Yangon.
Rival PepsiCo followed suit in March, opening its own bottling facility.

Politics

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 Political factors are important especially in food industry. It can affect the
company policies and its budget. So far, there aren’t any significant changes of regional
political landscape

Economy

In Myanmar, with the Food and beverage markets growing very slowly and with a
lot of new startups, Nestle will have a hard time for competition. Foreign exchange had a
negative impact of 1.2% according the annual report of Nestle.

Technology

With the awareness of technological changes in the industry and industry-leading

research and development network, Nestle speed up meaningful innovation and leverage
new technology in a cost effective manner to meet business objectives and deliver quality
products to diverse consumer markets.
Society

Among the urban population in Myanmar, awareness on the goodness of dairy

products is widespread. This established dairy tradition can create the practice that they
will buy dairy products especially for child nutrition once their incomes permit.

Regulation and policies

As one of the well-established and leading companies, Nestle will have no

difficulty in following regulations and policies laid down by the government and the
ministry of health to protect the customers.

5. SWOT Analysis

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 Strength Weakness
- Health benefits, nutritional value, - Entering into the already
well-known brand mature market
- R&D Market research and - Distribution cost is high as
innovation in production pattern compared to competition in
- Create customer value the local market.
- Superior access to distribution - Product availability only in
channels major cities

Opportunities Threats
Well-known company and strong brand - Increasing prices of raw materials
name - Increased competition in beverage
- Health based products becoming and food industries
more popular in the world, - Strict regulation on dairy products
- Clear and accurate labeling indicating and supplement of infants by the
of any harmful products Ministry of Health

Realizing its strength and taking advantage of its opportunities, Nestle

Myanmar can solve its weakness and overcome threats.

6.0 Marketing Objectives

Marketing objectives of Bear Brand Enriched malted milk are made based on the
organization’s mission statement, vision and values.

6.1 Mission Statement

"Good Food, Good Life" is its mission statement, made in order to give consumers the
best taste, maximum nutritious choices in a broad range of food and beverage categories.

6.2 Vision and values

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 To be a leading, competitive, Nutrition, Health and Wellness Company delivering
improved shareholder value by being a preferred corporate citizen, preferred employer,
preferred supplier selling preferred products.

6.3 Objectives

In 2017, Nestle Myanmar has targeted that Sales volume of Nestle brands in
Myanmar should grow four times in four years, 2020. Now the time is nearly at the end
of the 2019 and the 2020 marketing objective should stick to the already set goal.

6.3.1 Financial objectives

To increase the profit around 10% in 2020 (This amount should come from the
increased brand awareness and sales volume by marketing objectives)

6.3.2 Marketing Objectives

- To capture large share of market

- To develop brand awareness and image among the target customers in lower and upper
regions of Myanmar by 2020

- To provide the differentiated products with affordable price

- To raise sales volume of Bear Brand Malted Milk 20% higher than last year (This
should be acquired through aggressive growth strategy)

7. Marketing Strategy

To achieve the set marketing objectives, Nestle Myanmar has to apply the
corporate strategies and marketing mix, making sure the strategies are linked with the
company's purpose and customer's expectations.

7.1 Strategic Partnership

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 Nestle partners with MDG and its extensive distribution network to expand its
market across Myanmar and to reach the customers easily and effectively.

7.2 Differentiation and positioning strategy

It differentiates the needs of nutrition depending on the cuisine Myanmar people

eat. Myanmar cuisine is rich in starch and it also consists of heavy of carbon nitrate, salt
and fats which are filling but result in nitro-nutrient deficiency. Seeing this fact as an
opportunity, Nestle Myanmar addresses this health problem by differentiating its
products from its competitors and creates competitive advantages.

7.3 Aggressive Growth Strategy

Seeing the prospect of Myanmar market of food, package and beverages

continues to grow, Nestle applies the aggressive growth strategy to build solid
foundations that will propel them ahead of competitors over the targeted years. It used the
initial investment of US$ 25 million and continues to invest further to aggressively
launch the new products with regional flavors (Bear Brand products).

8. Marketing Mix

Product

Bear Brand Enriched Malted Milk is richly nutritious and high in calcium and
iron for strong body and brain. Most importantly, it’s non chemical products. It’s a
solution of iron deficiency of people in Myanmar who are getting health-conscious.

Pricing

Nestle uses competitive-based pricing strategy for its high quality product with
distinct nutritious value. Regular price for milk power sachet is 100 Kyat while a sachet
of Nestle Bear Bran Milk costs Kyats 200 and a packet of 20 sachets is 3200. The price is
neither too expensive nor low but within affordable range of its target customers.

Place

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 Nestle has targeted both urban areas and rural areas and its products are available
in almost all the super-markets, all other out-lets and online from Shop.com.mm and
LOLA Online Shopping.

Promotion

Nestle will invest in advertisements which is considered to be a very good medium of

promotion in today's competitive world. Moreover it has adopted various other modes of
promotion like posters outdoor, Magazine, sale promotion, PR campaign etc while
carrying marketing activities online. It's because advertising is an effective way to deliver
a brand’s practical and emotional benefits and values (Chernatony, 2006).
9. Action Program

As Bear Brand enrich malted Milk already has brand recognition in Yangon, Nay
Pyi Taw and Mandalay, the following action plan is targeted in major cities in Lower and
Upper regions including Shan State.

The marketing management teams will conduct awareness raising campaigns

along with free medical examination and sampling at major cities,

Awareness raising TV commercials and pamphlets at private hospitals and clinics

for pregnant women

Specially created Nestle Bear mascot will visit schools and educate the children
with gifts and samplings.

It’ll also conduct educative talks with sampling and medical check-up for iron
deficiency in government departments and companies alternately as well as supermarkets
where mothers and teenage girls never fail to go. They’ll further disseminate the shared
knowledge to their friends and families and the needs to take Bear Brand milk as the
supplement.

Its strong distribution network and sale promotion teams will make sure the
product availability at supermarkets, convenience stores and retail outlets after the PR
and promotional activities.
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 Sales teams will join the sale promotions activities of the leading supermarkets
during special occasions offering discounts and gifts.

To reach the target sales volume and targeted net profit, Nestle will award the
retailers and staff with outstanding performance and dedication.

10. Budget

The awareness raising and promotional campaigns will be at least 40% of the
coming year promotional budget. Additionally, advertisements in mass media will
constitute 35 % of the budget allocation. The remaining 25% will be used in sales
promotions activities for demand generations.

11. Monitor and control

Marketing director and Sale director will work together to monitor if the action
plans are implemented accordingly. The monthly sales will be checked to know the sale
growth and the effectiveness of the strategies and alternate marketing strategies will be
used to reach the targeted sale volumes and net profit. By applying measuring
performance to compare the firm’s performance over different time period, they will do
corrective action if the plans are out of track.

Conclusion

In conclusion, from the marketing plan outlined, it is quite safe to conclude that
Nestle Myanmar will achieve its marketing objectives, satisfying its customers and the
mother organization profitably.

Reference

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Fast-moving consumer goods market analysis, https://www.marketwatch.com › press-
release › fast-moving-consumer-good...

Mizzima (Jan 2018) - Nestle Myanmar expects fourfold growth by 2020, mizzima.com ›
business-domestic › nestle-myanmar-expects-fourfold-gro

Market Segmentation-Nestle (2017),

https://nestleblogcom.wordpress.com › 2017/09/02 › market-segmentation

Nestle Bear Bran-Wikipedia, https://en.wikipedia.org

Nestlé: strong foundation, clear path forward, bright future Mark Schneider: Chief
Executive Officer

Perston Henske, Business Day (2001) Aggressive growth strategies are key to surviving
recession

The Myanmar Times (Sep 2014) Nestle products to be made in Myanmar

Abul Bashar, Strategy of the Nestle Company

Alan Sarsby, SWOT Analysis, https://books.google.com › books › about ›

SWOT_Analysis

David Kabii, Nestle Market Analysis and Marketing Strategy

Essays, UK. (November 2018), Segmentation Targeting And Positioning Of Nestle

Marketing Essay.

Philip Kotler & Gary Armstrong, Principles of Marketing, 17 th edition, Pearson

publishing house

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