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Question: You are required to develop a detailed marketing strategy for the introduction of a new product or service into the Australian market, although this may also include other geographic areas as well. Your marketing plan must include detailed analyses of customers and competitors as well as the general marketing environment in addition to a comprehensive positioning strategy. Answer: Introduction and Background Nestle is a Swiss Transnational company with its headquarters in Vevey, Vaud, Switzerland. The company deals in foods and drinks sector and is largest in the world. The company employs more than 33,000 employees (Nestle, 2013). Nestle established in 1905 when Anglo Swiss milk company was merged. Nestle sells the products like Baby food, medical food, and infant products. The main development model of the company is to attain large market share so that risks that are involved could be minimized. The company works to enhance its product line so that development of new products can enhance the demand of the customers. There are many competitors like Coles and Woolworths (Moura, Branco Camoesas, 2015). FROSY is a fruit drink that nestle will launch in the Australian market by analyzing proper marketing strategies like Marketing Mix so that growth can be achieved in an effective manner. Marketing Mix Marketing Mix is related to a set of actions that the organization takes into consideration to encourage its brand or the product in the overall market. There are 4 P's that will be discussed in marketing mix like price, product, place, and promotion. Product FROST is a fruit-based drink that has four natural tastes like Kiwi, strawberry, blackberry, and pomegranate. The product with all the four flavors will be launched in the standard size of 250 ml. The fruit drink will be made from fresh fruits and no preservative will be there. The packaging of the product is blue in color that will help the customers to identify the product easily. Price / pricing It is related to the value when the product will be launched in the Australian market. There are two pricing method that can be considered like Cost based pricing and market comparison pricing method. Cost based pricing is the pricing strategy that will be used for introducing the energy drink in the market (Porter, Hills, Pfitzer, Patscheke, Hawkins, 2011). The price will be calculated by adding the overall cost of the product. By evaluating the current prices given by the other competitors we will try to keep the prices low at the initial stage so that more customers can be attracted (Crane, Palazzo, Spence Matten, 2014). Place/ distribution The customers will be targeted in the large urban areas. It is seen that the company has a good distribution channel that will help the customers to purchase the product easily. We will ensure that the product should not only be available in hypermarkets like Aldi but also in supermarkets like Seven-eleven. The target will be on local outlets and cafes as there are many people who spend more time there. We will also ensure that the energy drink should be available in the sports events so that the customer engagement can be enhanced (Hunt, 2014). Promotion / promotion strategy The target audience of the product should range from 15-54 so that promotion can be done effectively. In order to attract young people (15-30), we will be ensuring that there should be a proper distribution of products in sports events or the products should be distributed as a free sample in the events (Payaud, 2014). Customer Analysis Target Market The energy drink will give emphasis to youth and adults, both male and female customers as they have large customers of energy drinks worldwide and also in Australia. It is analyzed that the population of Australia is more than 23, 0000 with exactly 89 percent of the people living in urban areas making it easy for the businesses to provide products to an audience. The youth and working-age population (15 64) is about 66 percent and the focus will be on the people who are ( 50 54). They should drink this drink in the gym and also it should be distributed in sports events so that people feel energized (Peck, Christopher, Clark Payne, 2013). Competitors Analysis It is seen that the product will be an energy drink that will target the youth and working class. There are many competitors in the market but the company offers energy drink to the customers that are different from other competitors like juice world, Parker organic juice and nippy. The company will be offering energy that will target many sports and day to day activities. The products that will launch have four flavors grapefruit, kiwi, and blackberry. It will offer an opportunity to attract customers so that they can look healthier and energized. This product is different from other competitors as it has low amount of B vitamins, taurine and sugar. The energy drink is also sugar free that will help the diabetic patients. Marketing Environment Analysis Internal Analysis The internal microenvironment displays internal strength, weakness, opportunities, and threat to the company. SWOT analysis gives emphasis on various points. STRENGTH WEAKNESS a.) Top leading organization b.) Various range of products c.) RD d.) Corporate social responsibility e.) Well established brands a.) Quality b.) Publicity but in negative sense c.) High advertising cost OPPORUNITIES THREATS a.) Increase in demand of healthy food b.) New channels c.) Spending power is high d.) New joint ventures e.) Giving emphasis more on research and development a.) Home grown brands b.) Food contamination c.) Cost wars d.) Enhancement in price of raw material Strength Top leading brand in food and beverage organization: To be a leader of the company has a good hold on the wide variety of food and beverages that is harder for other competitors to compete. It is seen that if FROST is launched in the market then overall growth can be easily achieved as the company name is good in the market (Saluja Mahajan, 2017). Diverse Range of the Products: Having a wide range and a global reach the company can easily cater to the need of the buyer by taking into consideration different regions. This will assist in increasing the overall image of the company and also grow the customer base. As FROST will be launched in the market the variety of the product will be increased (Dunning, 2014). Research and development: With proper incomes and reach the company has an emphasis on studying and emerging new products as per the need. By analyzing the necessity of the customers FROST will be the product that will be introduced in the market (Qiao, Zhang, Wei Chen, 2017). Corporate social responsibility: Not only the company focuses on its products and profits but the focus is also on the society to be better. They also focus on the ways to improve that how the products are made in less time (Prince, 2015). Well established brands: The Company is known as a popular and renowned brand that will ensure that the organization can compete with the competitors (Krafft, Goetz, Mantrala, Sotgiu Tillmanns, 2015). Weakness Quality: Time and time again the company is not able to offer a constant good quality of its products in and out of Australia. There are many recalls made in the product line of the company (Patrizia Gianluca, 2013). Publicity but in a negative sense: It is seen that due to the baby milk scandal the company has a past negativity and it has given a negative image on the relations with a large customer base (Ltkenhaus de Freitas, 2016). High advertisement cost: Nestle give emphasis on advertising cost so that public awareness can be created about the product and services. This does not assist at the time of advertising and also it does not consider high costs of the organization (Lusch Vargo, 2014). Opportunities Demand for healthy foods: The Company is already working in the health food sector and can enhance the changing habits of the individual and also it ensures that healthy food should be consumed by the customers. New channels: The Company has many new channels so the customers can reach easily to a large audience. Increase in spending power: It is seen that due to growing purchasing power the company has an opportunity to attract a large number of customers. Research and development: The Company spends a large amount of research and development so that competitive advantage can be gained and also the enhancement can take place in investments. It is important for every company to consider research and development so that the activities can be conducted smoothly. It is seen that if proper strategies are not considered then it can be easy to achieve success in the market. Threats It is seen that there are many chains are Coles and Aldi that create a challenge for the company to survive in the market. It is seen that the company is a known company then also there are many issues related to food contamination. This gives negative impact on the customers and also affects the brand image of the company. The costs of raw materials that are used produce the products that are rising so the companies offer large amount to source the products to its customers. External Analysis There are four parts of the analysis: Political environment: There are many factors that should be considered like employment laws and government regulations for foreign companies. In the recent scenario, there are many changes that are regulated the standards of the food. Economic environment: With the enhancement of the buying power of the customers it is seen that the businesses can sell the products. But the customers are becoming cost aware and there are many changes that are related to the consumer budgets. By considering all the things the company spends an amount on innovating and redesigning new products for the Australian market. Social environment: It is seen that the consumers are more aware of the healthy food and the demand for the food products enhances. This offers the company a new opportunity to diversify its lineup. Also, there is a change in the lifestyle of the people and also in culture. Technological environment: There are many challenges that are posed by the competitors to reach to the large mass of audience. The challenges are also related to the quality control so that the company can easily handle the situation. Conclusion Nestle is a leader in the market and there is high acquisition and merger so it is not difficult for the company to capture large market share. More emphasis is given on the quality so that the company can easily connect socially in the market. It is seen it is important to consider the changing trends of the consumers so that healthier option can be attained. The diversification in the energy drinks as seen in the report will help to attract a large mass of customers so that proper options can be considered. If the company consider natural and healthier energy drinks then it can be easy for the company to gain a competitive advantage in a proper manner. 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