Marketing Analysis Free Essays

The company that is going to be analyzed in the report is Nestle with its brand Nescafe. Thus, the industry is consumer goods, the product instant coffee. The two core areas chosen for the analysis are market segmentation and targeting and promotion. We will write a custom essay sample on Marketing Analysis or any similar topic only for you Order Now Market segmentation and targeting. In the major part coffee is usually preferred by both male and female at the age of   20 to 45 approximately. Children are usually not allowed to drink much coffee, since caffeine is believed to provoke special hyper reaction. Older people, in turn, are trying to avoid coffee because at this age they are taking special care for their health. Thus, the typical segmentation in the sector can be represented in the following way: Demographic characteristics: men and women from 20 to 45; single/married/married with children; elderly people who prefer decaffeinated coffee. Economic: low, middle and premium segments; Consumption habits: regular buyers, random buyers; those who prefer to drink coffee at coffee bars/ those who prefer to drink coffee at home / those who prefer take-outs; those who prefer to drink coffee alone/ in a company; Psychographical characteristics: people who lead active style of life/passive style of life; people who prefer status/price/taste/convenience; businessmen/students/working people. (Cateora, 1990, p.116) Thus, it is obvious that market segmentation is follows four major criteria in order to distinguish certain groups and clusters. Nestle’s segmentation is quite thorough what helps the company to understand the needs of each separate group and satisfy those needs in the best possible way. Moreover, thorough segmentation allows the company to focus on specific segments, or simply saying to distinguish target segments. Thus, Nestle’s â€Å"Nescafe† target segments are: 1. Married and married with children people who prefer to drink coffee alone at home and buy instant coffee on a regular basis. It is caused by the fact that those people are oftentimes busy and they do not have time to brew their coffee. Moreover, those who have children usually face the problem that if they leave the coffee in the coffee machine, their children might tempt to drink it. Moreover, oftentimes there is too much coffee left in the coffee machine, which means the unnecessary waste. Yet, if you leave, it is going to be not fresh. Englishmen, however, prefer only fresh coffee. 2. Students who simply do not have coffee machines and prefer instantaneous coffee, which they can easily make at any given time. Generally, the main target segment of Nescafe are people with high or more than average income. Moreover, it is important to notice that Nestle targets younger audience. That is why , it is very important for the company with such a strong brand as Nescafe to distinguish the core values for this type of customers. Such values are individuality, independence, pleasure, self-confidence. Thus, the brand is positioned as the one, which has extraordinary taste that you want to enjoy every day. Promotion. Segmentation and targeting are preliminary stages that allow the company to understand what tools of promotion will be the most effective for the given brand. In our case, Nestle uses various tools of promotion. Large-scale advertising. Nescafe is advertised using a wide range of different media – TV, radio, printed media and Internet. Corporate site and brand site are believed to be an excellent tool of promotion, as it can host a good deal of detailed information about the brand. In fact, Nescafe has its own web-site separate from the site of the producer Nestle. Nescafe site was created in order to give its target audience ampful information about the product and the brand in particular. Moreover, the company believes TV commercial as an excellent method to keep brand awareness and brand recognition about the brand on the highest level. The key message that is being delivered is that Nescafe is a wonderful taste that needs to be enjoyed and enjoyed. Global commercial portraying woman in a peculiar garment trying to become unnoticed by her husband to be able to enjoy Nescafe alone is the best proof of that. Thus, we can see that brand managers of Nescafe are emphasizing physical qualities of the product, specifically its taste. Publicity. Publicity is achieved by creating different kinds of informational grounds. It can be sponsorship of certain events that are covered by different types of media. It can be informational articles discussing the problem of coffee-drinking. It can also be different special events that are also covered in media.   For instance, in 2004 in England there was a contest the winners of which could experience a luxury balloon flight and stay in the country hotel house. The event was transmitted via TV. This was a great informational ground and thus the cause of publicity. The main message that is delivered via publicity is that Nescafe is a reliable trustworthy and responsible brand. Thus, drinking Nescafe one can be sure of its exceptional quality. In other words, publicity is aimed to ensure good reputation of Nescafe and ultimately to form a strong brand loyalty of customers. Sales promotion. Especially popular are different contests and point of sale promotion, where the company used sampling to enhance brand awareness, to increase the level of initial ties and stimulate people to experience the taste of Nescafe. For instance, a lot of corporate Nescafe mugs are constantly given with the purchase of certain brand products. Moreover, special place is given to merchandising, as the company recognizes the importance of the fact that the product should be very appealing while being on the shelf, especially it concerns the instant coffee in bags, which is usually purchased at the very last minute. So, it is important that it is situated closer to the cash register In such a way, brand promotion that used by the company is based on the variety of tools. Moreover, it is important to keep in mind that those tools should be congruent with the target segments. Target segments, in turn, might be distinguished only as the result of thorough market segmentation using as many criteria, as possible.   Nestle makes emphasis on advertising, different PR activities (sponsorship, special events, publicity), and sales promotion. References Applbaum K. â€Å"The Marketing Era† Routledge, New York, 2004 Brown S. â€Å"Imagining Marketing: Art, aesthetics and the avant-garde† Routledge, London, 2000 Cateora P. †International Marketing†, 7th ed. Irwin, Homewood, IL, 1990 Laforet S. (1999)  «Managing Brand Portfolios: Why Leaders Do What They Do† In Journal of Advertising Research, vol.39, p.23 Parsons A. (1996) â€Å"Nestle; The visions of local managers† In The McKinsey Quarterly, no.2, pp.21-22 Nescafe official web site. www.nescafe.com Nestle’s official web site. www.nestle.com How to cite Marketing Analysis, Essay examples Marketing Analysis Free Essays As part of a multinational marketing policy, in this cases for Enshrines, the term local marketing means specific marketing actions and appropriate at the scale and geographical particularities of each potential market. Whether international or local marketing they are based on the same concepts. But, at an international level, the marketing approach is more difficult and we have to consider more important points. We will write a custom essay sample on Marketing Analysis or any similar topic only for you Order Now At an international level, we must learn more about culture and differences between each cultures to avoid cross-cultural risk for example. We can summarized that the international arresting differs from domestic marketing in that we have to take care about more facts like socio-cultural particularities or figures. Then, international marketing is more difficult to understand than marketing at a local level. To fix more at the expectations of customers, companies can do a global marketing strategy which is a marketing concepts of a global strategy with local adaptations. In this cases, Enshrines do a global marketing. Marketing concepts approaches A marketing strategy firm is a step of reflection and study with the goal of being as close to matching demand and supply. This approach is in the heart of the strategy of the firm. The goal for the company is to focus on increasing revenues, market share and customers by constantly differentiation, adjustment of supply solvent and increasing economies of scale. This process takes place in three steps : the segmentation, targeting and positioning which is corresponding to the three phases S. T. P (Segmenting, Targeting, Positioning) of the Framework of Dawn Jacobin. Ð’Â « up Ð’Â » Here, the Ð’Â « UP present correspond at the conceptions approaches of the Enshrines to its market. Price : For the France market, Enshrines have large range of price. Count 1 79 to 1800? for a machine. For the pod, they cost approximately 0,35? per pod which is less than a coffee in a traditional coffee shop but more expensive than a coffee in filter. The do differentiation by premium but often, they put promotion offers on machine, in Christmas time for example. Product : They have a large range of product. Each range count 3 – 6 machine per range, all design, refine and modern. Enshrines apply a luxury policy for each product. For the pod, Enshrines do a color code, to facilitate for the client to recognize their favorite coffee. Also Nestle sell Ð’Â « must-have Ð’Â », all print Enshrines Ð’Â » like cups, sugars, gift boxes†¦ Promotion : For their communication policy they inspirited by luxury brand. Enshrines do also a large communication and a restricted distribution which reduce the price sensibility of customers. Enshrines are innovative also because they create event and they were first at launch with mobile marketing Enshrines have a strong advertising policy. They spend MM? per year and MM? just for France which represent 20% of their turnover. In 2006 they launch the Ð’Â « saga Clooney Ð’Â » with the famous slogan Ð’Â « What Else Ð’Â ». With this strategy of personalization, they improve their brand’s image, conquer synod impious of coffee excellence. In internet : MM link about Enshrines in Google, KICK visit on the official website and nearly MM faceable fans. Place : Enshrines select precisely their resellers. They sell in Enshrines shop, on the internet. Moreover, in France Enshrines have choose larges specialized store like Fauna or Ballooner, large Ð’Â « premium Ð’Â » store like Galleria Lafayette, Culinary. They also do mail order selling with La Reroute or Less 3 cuisses. Segmentations, Targeting Positioning Segmenting a market is a marketing technique that involves subdividing a market according to various criteria. The next step is to create a representation of a group of consumers sharing some common criteria that can be geographical, psychological, ethnic, cue Trial, demographic The goal is to then define a product so to make it attractive to a consumer group. Subgroups must be defined and identified to be measurable, homogeneous, substantial, relevant and attainable. Targeting is to choose the segment or segments of a population (see segmentation) likely to buy a product. This phase allows for an assessment of he relative attractiveness of each segment for the product or service. Ultimately, this allows the company to choose what(s) segment(s) can be targeted based on its products, and depending on the expected profitability. At first,the positioning it is to identify the specificity of a company, a brand, a product or service that allow differentiation with the competition. In a second step, the positioning is to define the nature and specific features that you want to provide the product, brand or company to differentiate themselves in the market. The positioning differentiation allows a product to be perceived s one by a group of consumers (see segmentation). For Enshrines, they apply the same segmentations, targeting and positioning ATA local level and at an international level. They are working on the coffee market especially in the coffee in pods. Then, they are concentrated on the segment of coffee in capsule specifically in a premium segment. This is a niche positioning. For this, Enshrines target their customer about : socio-economic criteria, about their income, specifically on middle to upper class (SSP+). And Enshrines target also by cryptographic criteria, people who are attract by new technologies. Often this kind of customers are concerned about quality and design seduction. About the age, Enshrines focus on the segment 30 to 50 years old. At the beginning they start on BIB market but it was a fail then they repositioning on a BBC market. Customer acquisition Thanks to their particular knowledge on marketing, they try to make the coffee, which is at the beginning, a current product a luxury product. For this, they convince the potential customer to invest in a Newspaper’s machine to be an active member of Ð’Â « club Enshrines Enshrines want also to offer at customer’s an professional express at home without the big tradition anal ND expansive machine. Thanks to their innovation, Enshrines can propose a real express at a small price. They attract their customer to with a large and famous promotion on media like TV advert or sponsoring. Customer retention Indeed, the brand managed to create a combined product offering, which involves the initial and only purchase of equipment , followed by its regular purchase refills for it to continue to operate. Strategy future trends About the strategy, Enshrines is a very good example of a strong understanding of the market and future trends. In spite of many competitors Taoism, Senses, etc) They are leader of pods coffee market, in machine innovation and customer’s fidelity. Thanks to the steady increase of the segment in portion’s coffee market, they can apply a differentiation and an innovation policy. To difference themselves about competitors they made for example Ð’Â « grand crush which are an exception anal coffee, they created ingenious machine with sweet design and developed an unique client service. Moreover, they work on an exclusive distribution (in closed circuit). The distribution of sales are made 50% on internet, 25% by phone and 25% in shops. They have their own network for the distribution implying that reduce of cost, fast of launch but it restraint the market and demanded heavy investments. But to avoid problems, Enshrines have signed a co-branding contract (Usurps/Magic) which involve a selective distribution in France for example. For their BIB, they created NBC (Enshrines Business Coffee Solutions) to help and customize at best Bib’s services. P Estes Politic : Enshrines wish to fight against all pollution’s form and they try to develop CEO-responsibility in customer’s behavior. Economic : Coffee sell are decreasing but segment valor of this market still increase (+3,6 n 2009) Increase of market valor in pod segment Enshrines have a lot of competitors like Taoism or Sense. The price of raw materials still increasing. They have also a strong Ð’Â « concurrence Ð’Â » of substitute in hot drink like the thee or milk which, for example, is a strong danger in Asian country because they prefer thee as coffee. Increase also of price consumption which involve lower coffee consumption because of the increasing of coffee price. Social : Coffee is the most consume drink with a high social valor symbol of social integrity. For several years, we can see an emergence of the monadic market, tit the implantation’s of many Struck for example. Mode of consumption are also changing : people take more and more care about gustatory pleasure. Nowadays time of meal is reduce and more and more people are force to adopt a fast lifestyle. A tendency for individualism which is link the 1 pod systems of Enshrines. The traffic coffee is the leader in the market and its also the customer’s preference. There is also a growing awareness of the customers for production methods and processes. Technological . Enshrines make constant innovation (at pods level or machine level) which is strong advantage between the competitors. Nowadays, Internet service providers are still increasing and an increase of the access internet involve the increase Of the segment Of online shopping. Ecologic : Customers are more and more sensible about sustainable development and about protection of the environment. We can see also an exponential wave of consumption of organic products and ethically produced product. Legal : Nowadays more and more patent are submitted. The patent which protected the pods fell in the public domain in 201 2 which open the market at the competition. In France for example, rules about laity of coffee consume are voted like in October 2001, the French minister for a decree about sells of coffee, the packaging and the composition of the coffee. How to cite Marketing Analysis, Essays