Posted at 01.02.2019
The purpose of this project is to evaluate the impact of organizational strategy in creating a marketing plan also to measure the component elements of a marketing plan. For this function a marketing plan for Nestle pure life (Water in bottles by Nestle in Pakistan) is developed for understanding different components of marketing plan.
Impact of Organizational Strategy on Market Plan
It is very critical in the current highly competitive market to develop and adapt a strategy that helps the organization's resources and characteristics of business. The strategy should be produced by remember all the available resources and really should be so powerful that the merchandise or service can outsell your competition. If the available resources are not considered while designing the strategies then it is quite possible that those resources will not be able to convert the inflow of customers directly into profitable long term relationship. So it is vital to have a strategy that facilitates the resources and the expertise to apply it. Different organizations have different kinds of strategies, however most common are five significant strategies that have an impact on the marketing plan of the organizations.
Market Command Strategy
If a business has to maintain the position of market authority then the marketing plan will be concentrated towards two main factors. First is to improve the market share and second is to keep intact the existing customers by giving them value with their money they may be spending to buy the company's products of services (Kathryn, 2010). Market talk about can be increased by finding the new markets in other demographics or expanding into the new locations. Another way to raise the market talk about is to add the competitor's market share through variety of strategies. Offering several value added services helps to keep the clients intact with the business. In cases like this the marketing plan will focus towards augmented top features of the merchandise or service.
Market Challenger Strategy
If the organization's strategy is to be a market challenger then your marketing plan will be targeted towards the tiny unmet needs of the clients. The marketing plan will be very ambitious and the target is to raise the market share in small chunks also to target the clients by promoting those features which can be rewarding their unmet needs (Kathryn, 2010).
Market Follower Strategy
If a business is following market follower strategy then the marketing plan will not be very ambitious (Dibb, 2001). The market segments are already discovered and investigated by the competition and the market plan will aim for those weak points which are left by the competition and the better alternatives will be provided to the clients.
Market Topic Strategy
Organizations can also split the market directly into small segments/chunks and prepare the marketing plan for every segment. This enables the business to influence the customers deeper with the advertising campaign as the concentration is on a specific segment. For instance the marketing plan of an cosmetic can aim for the women between your years limit of 20-25 years.
The firm can also form strategic alliances to improve the impact of the marketing plan. The strategic alliances enables the organization to offer services or value added services to the clients and the marketing plan targets promoting the great things about the alliance of the business to the clients (Kotler, 2003).
Component Elements of a Marketing Plan
Marketing plan refers to that report which outlines the actions and details that are required to be undertaken to be able to achieve one or more marketing objectives. Marketing plan can either be for a brand, or for something or service or even for a complete product line. Marketing programs can cover the marketing goals of up to five years and the marketing goals are aligned with the organizational aims. Following are the primary the different parts of a marketing plan.
Situation analysis is vital and preliminary part for creating a marketing plan. It talks about and clarifies the existing position of the organization on the market. This evaluation should be done fairly by the organization as exaggerating the current market position in front of the management will ultimately give a inability at the end of marketing campaign. Situation Analysis entails external, inner and customer's analysis (Ward, 2010).
SWOT analysis is another major part of the marketing plan as it recognizes the advantages and weaknesses of the business and the opportunities and risks for the organization. It also helps to determine the current state of the organization, but it addittionally adds the opportunities and threats to the business which can be targeted in the marketing plan (Dibb, 2001).
Marketing Goals and Objectives
After SWOT research the organization is at far better position to create the marketing objectives and goals. Goals will be the overall success that may very well be achieved by the organization and the targets are the benchmarks which enables the organization to meet those goals (Ward, 2010). It is vital the goals and objectives should be genuine and should reflect the quest of the company.
In online marketing strategy the marketing combine and the mark market is reviewed. Product features, placement, pricing and distribution will be the four main aspects of any service or product and the marketing plan provides the blend of these strategies and online marketing strategy is designed keeping in mind the mark audience (Kotler, 2003).
Implementation planning is another important part of the marketing plan. At first it is referred to that what's required to be done internally to be able to get success such as worker training, employee's empowerment etc. for the success of market plan. Second of all, a month-by-month marketing calendar is ready that tutorials the marketing activities.
Evaluation and Control
Evaluating the marketing plan is vital, as this can help to recognize that what's to be achieved in future and what not. In case the marketing plan is of three to five 5 years then regular evaluation is essential as changing market conditions can be expensive while sticking with the old techniques. Analysis also helps to identify whether the plan is applied properly.
Threat to Nestle Pure Life
Different risks and weaknesses for Nestle pure life are recognized in the marketing plan, however, the most critical hazard and weakness for the merchandise is the current economic and politics condition in Pakistan. This risk is for each and every business operating in Pakistan, however, Nestle real life has immediate have an impact on to the economic situation of Pakistan. As the mark market of Nestle natural life is higher and middle income and credited to increasing ratio of unemployment and poverty the individuals are moving for the utilization of simple or boiled normal water as spending Rs. 35 for normal water is now unaffordable for most middle class people. Moreover, there are several other local brands which are not up to the mark, but they sell the brand to the local market by ensuring them about the quality and purity which reduces the demand of high quality product like Nestle clean life. This triggers a serious risk to the brand in near future (Rosemann, 2005).
Its processing facilities are situated in Sheikhupura, Kabirwala, Islamabad and Karachi, Pakistan.
Nestle provides nutrient water to the clients with an objective to provide value to the customers. The business's main target market is those individuals who believe that tap water is not hygienic. The company enjoys the best market show in the nutrient drinking water industry of Pakistan however Pepsi's Aquafina has been offering challenging competition to nestle 100 % pure life. 12 months Marketing plan for calendar year 2011 is developed distributing each activity in several months.
Company Profile - Nestle Pakistan Limited is a subsidiary of Nestle SA, a Switzerland based mostly company, aimed to build a based on sound human beliefs and key points. In 1992, Nestl was the first company to dare to release a mineral normal water, in five different countries simultaneously. Nestle Pakistan is engaged in the control, developing and sales of products such as dairy products, culinary, confectionary and beverages. The major company's products include NIDO dairy, NESVITA dairy, MILKPACK dairy and ice-cream, Fruit yogurt; Everyday creamed tea, Cerelac and Nestle mineral Water (Nestle 100 % pure life).
Mission Affirmation - Nestl believe that research can help to make better food so that people live a better life.
Objectives - This marketing plan considers the following objectives of organization because of its product Nestle 100 % pure life:
To keep up with the position as Market Head.
Increase the marketplace share.
Exceed customers' expectations both in terms of product quality and service.
Create knowing of benefit of Dog or cat bottles and approach in rural areas.
SWOT Research - SWOT analysis helps to understand the power of the organization internally and externally (Lyndsay, 2010). Blow is the SWOT evaluation of the company:
Strong distribution channel
Large range of Offerings
Strong Brand Name
Strong Background of the company
Easy to approach
Small Goal market
Lack of consciousness among the mark market
Dependency of other federal government and sponsors for the arrangement of events
Favorable weather conditions (Summer almost all of enough time)
People love to enjoy eating glaciers cream
Few and Poor competitors
Major players may type in the market
Legal and honest issues
Local mineral drinking water manufacturers
Economic slowdown and bad political conditions
Nestle Pure Life create the bottled water culture. Without doubt Nestle pure life is currently a dominant innovator in Pakistan market in Nutrient normal water Industry. Nestle Pure Life happens to be dominating more than 80% of water in bottles market talk about (Rosemann, 2005), when Nestle Pure Life start its bottled water business in Pakistan way back in 1998 on that particular time AVA was the major competitor on the market, but after a time period of one year AVA was attained by the Nestle Pure Life and now currently AVA is in the business of bulk normal water.
There are different brands of bottled nutrient water but the most famous are:
Nestle Pure Life
For creation and distributing mineral drinking water in Pakistan the company must obtain licenses and also have to follow the rules and laws of Pakistan Standard Quality Control Specialist (PSQCA). Particular in Lahore, premium is giving a very challenging competition to Nestle real life as their price is less than Nestle real life. Moreover, premium is nearing the other metropolitan areas and rural regions of the country and perhaps will emerge as a solid competition of Nestle pure life in forseeable future. There's also other competition found within a local market which include Sparklet, Acqacare, Pure, Aafi, Oura, Aabshar and a great many other local brands, but their market share is very low as compare to the Nestle Pure Life.
The Macro-Environment makes, which include politics, Social-Cultural and Economical forces, affect the entire performance of the brand (Kotler, 2003). Political instability always subject in a market situation, there must be an investment security. PSQCA has approved Nestle Pure Life; Nestle Pure Life is also promoting the culture of mankind and higher labor as many people from Pakistan have got job in the different parts of the planet in Nestle Food.
No hesitation Nestle Pure Life is a market leader, however, many of the federal government policies impacting on the online marketing strategy of Nestle Pure Life as federal government closed down many several companies by stating that they are producing un approved water for the folks of Pakistan in the name of mineral drinking water, but such kind of situation doesn't impact any online marketing strategy of Nestle Pure Life since it is creating a water according to the standard which is approved by World Health Company WHO.
As much as Community and Cultural forces are worried now the folks are realizing the necessity of water in bottles especially in places, because they are more health conscious as compare to the people of rural areas. However now the trend is changing little by little the people live in countryside in addition they realizing the need of Safe and Clean drinking water, they know that health is wealth, as Nestle is a prominent factor so they are using Nestle Pure Life as their first choice.
On the buyer side the Target Market is:
People who think that tap water are not hygienic
People touring by street on highways, railways and by air
Tourists or foreigners
Middle, Upper Midsection and Elite class
Students of university, college or university or universities
On the business enterprise side target market is
High ways, Motorways, railway Channels Airports bus can stop hotels etc.
Educational Institutes of the town, where students might interact
Shopping centers and Market places
Departmental stores and bakeries, Standard stores and others etc.
Restaurants and hotels
Price - Another technique for success may be employed by lowering the price of containers including bulk drinking water bottles to catch the attention of more and more customers who may move to its immediate or indirect substitutes
0. 8 liter Rupees 18
1. 5 liter Rupees 35
Placement - Circulation should be done not only in urban areas but also the rural areas of the country. Syndication in small cities of the united states is also one of the circulation strategies of Nestle Pure Life.
Promotion - Nestle Pure Life is using included marketing communication. The Company has modified both Press and Draw strategies and using mass marketing by Advertising i. e. using different types of Medias like Tv set, radio, mags, Sales Advertising i. e. sponsoring different occurrences, using billboards and entails in different social activities.
This action plan will perform the marketing strategy and achieve the key Goals of Nestle Pure Life through a number of Scheduled programs. Pursuing activities will be performed during the 12 months 2011 to market the Nestle Pure Life.
There is variety of risks mixed up in marketing plan. Following are a few of the potential risks and their mitigation strategies for the marketing plan of Nestle clear water.
Wrong Market Information - In Pakistani market segments the availability of complete and traditional data is very difficult. There are very few government resources which supply the market information, but those also cannot be relied upon as the data collection is not known. In case the data or information extracted from the governmental options is available to be wrong then the company will rely upon the data collected from surveys and past movements.
Outsourcing - If the inner resources are not able to meet the growing demand of the customers then the creation will be outsourced, however the quality will never be sacrificed regardless.
Mismatch of Projections - If there is a mismatch of the financial projection then your efforts will be re-doubled and the target will be on immediate marketing. However, the other marketing bills will never be decrease as it's very essential to keep conveying the concept across the target audience.
The organizational aims of Nestle Pakistan are aligned with the marketing plan. However the change in the market conditions bring about the change in organizational goals which also reflects the marketing plan. The marketing plan mentioned above tries to meet the following organization aims.
Nestle genuine life is retaining market leader's position at the moment in Pakistani bottled water market. The marketing plan's aim is also to keep up this position also to increase the market show by focusing on the rural areas along with the urban areas. For this the circulation network is organized to be stronger in small metropolitan areas and villages.
The target of the organization is to provide the customers with safe drinking water. Nestle brand provides the customers reassurance that they demand for satisfying their most basic and important need. Marketing plan of Nestle real life also focuses on educating the sellers and consumers immediately about the great things about mineral water.
The formula developed for Nestle pure life provides minerals such as calcium mineral, which is vital for bone development and advertising of this benefit through marketing and immediate marketing team demonstrates in the marketing plan and fulfills this organizational aim.
Another target of the company is to supply the mineral water to the target customer at affordable prices. The costs of all the formats of the nutrient water bottles are incredibly affordable for the prospective market and that is the reason Nestle pure life's market talk about is highest in Pakistan.
Nestl's objective is to make the mineral water available to the consumers just about everywhere. Marketing Plan of Nestle natural life target the clients at seperate location like railway place, schools, colleges, airports etc. which fulfills the product availability target of the organization.
Nestle is using different approaches for the campaign and publicity for Nestle Pure life. Below is the quick description of all the strategies employed by Nestle Pure Life.
The company is using press strategy utilizing the sales team and promoting the product to the wholesalers and sellers. The Nestle cool is one of the example in this respect as the dealers sells and provide the coolers with Nestle genuine life brand and that promotes the product. This type of strategy is mostly used for the organization clients like different companies, banking companies etc. where the Nestle Pure Life branded coolers are placed and the containers are refilled by the retailers/company representatives periodically.
The company is also using yank strategy by straight connecting to the consumers through high advertisements through different stations. This results in the walk-in of the clients in the outlets and other distribution channels requesting the merchandise.
Above the Line (ATL) - Company advertise above the line by using different TV channels, radio, magazines, billboards etc.
Below the Range (BTL) - Company advertise below the collection as well by distributing the fliers, through internet (Facebook), inserting stores at roadsides etc.
The company is also using Mass marketing where in fact the complete market is communicated the same product. The business through different marketing channels communicates to all the market of Pakistan by overlooking the segments and marketplace as being humans all people are the potential prospects of the product.
The company also guarantees that the features and advantages of the merchandise are communicated to the clients. Through advertisement promotions the company conveys a note of purity and safeness to the clients and also clarifies the materials of the merchandise which are beneficial for our body.