MKT Assignment 2- Report Marketing Environment (20%) PDF

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Summary

The marketing environment of an organization consists of the actors and forces beyond marketing that influence the ability of marketing management to establish and maintain effective relationships with target customers....

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FACULTY OF BUSINESS AND MANAGEMENT BACHELOR OF BUSINESS ADMINISTRATION (HONS) OPERATION MANAGEMENT (BA244)

PRINCIPLES AND PRACTICE OF MARKETING ( MKT420) REPORT MARKETING ENVIRONMENT (20%) PREPARED BY: NO

NAME

MATRIC NUMBER

1

MUHAMMAD AIMAN HAKIM BIN FADZIL

2020456022

2

WARDINA BINTI KHAIRUDIN

2020476502

3

SITI SYAHMIN KARMILA BINTI MOHD HASSAN

2020819556

4

MUHAMAD ALIF ASHWAD BIN ISHAK

2020827938

5

HASSLEDYA HAFIZA BINTI ABDUL HALIM HAFIZ

2020862362

GROUP: KBA2441A

PREPARED FOR: MADAM MURSYDA MAHSHAR

SUBMISSION DATE : 07/01/2021

TABLE OF CONTENT 1.0 INTRODUCTION …………………………………………………………………… 1-2

2.0 MARKETING ENVIRONMENT : MICROENVIRONMENT AND MACROENVIRONMENT…………………………………………………………… 3-11

2.1 IMPACTS OF MARKETING ENVIRONMENT TOWARDS NESTLE’S MARKETING STRATEGY………………………………………………………………..

2.2 RESPOND COMPANY TO THE MARKETING ENVIRONMENT……………….

2.3 THE OPINION OF WHY THE COMPANY NEEDS RESPOND TO THE MARKETING ENVIRONMENT CHANGES …………………………………………..

3.0 CONCLUSION………………………………………………………………………… 12

4.0 REFEREENCES…………………………………………………………………… 13-14

1.0 INTRODUCTION The marketing environment of an organization consists of the actors and forces beyond marketing that influence the ability of marketing management to establish and maintain effective relationships with target customers. Companies must watch and adjust continuously to the changing environment. Marketers must be environmental trend trackers and incentive seekers, more than any other group in the company. Although the outside environment should be watched by every manager in an organization, marketers have two unique abilities. They have disciplined methods such as marketing research and marketing intelligence for collecting information and developing insights into the marketing environment. Often, they invest more time in customer and competitor environments. Marketers may adapt their strategies to meet new marketplace challenges and opportunities, by carefully observing the environment.

The marketing environment consists of a microenvironment and a macroenvironment. The microenvironment consists of the actors close to the company that affects its ability to engage and serve its customers such as the company, suppliers, marketing intermediaries, customer markets, competitors, and the public. The macroenvironment consists of the larger social forces that affect the microenvironment such as demographic, economic, natural, technological, political, and cultural forces. In this assignment, the company chosen by our group is Nestle Malaysia.

Nestle has a rich working culture that motivates its workers to better serve its customers with the support of the variety present in their product line. Nestle included the benefits of the workforce in the organization’s objective statement because the company’s management firmly believes that only if the employees take care of all these aspects will the efficiency, quality, and reliability reflect on the product. Different company departments work to contribute to the organization’s growth, and these departments not only keep the customer’s needs and demand of consumers but also maintain the same form of focus for the internal customers of Nestle.

Furthermore, the company believes if the internal market of the company is fully satisfied, the company assumes that only the internal market will be able to satisfy its customers and able to understand their needs, and able to produce goods that can fulfill these needs. Nestle has a powerful top management team that works on the strong values and ideals of the company. The values of the company offer a strong focus on integrity, loyalty, and teamwork. The 1

efficient top management of the company can run departments of finance, operations, marketing, logistics, sales, and research and development departments with great success which eventually contributes to the organization’s target being achieved.

Thus, in this assignment, we will explain how the marketing environment impacts the company’s marketing strategy, explain how did the company respond to the marketing environment, and giving our opinion about why the company needs to respond to the marketing environment charges based on Nestle’s company.

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2.0 MARKETING ENVIRONMENT : MICROENVIRONMENT AND MACROENVIRONMENT 2.1 Impacts of Marketing Environment Towards Nestle’s Marketing Strategy As years went by, Nestle has become one of the most popular food-producing company. From variety of drinks have been produced, instant food and other kind of beverages, many marketing strategies have been developed by Nestle to maintain its best performance. What are their marketing strategies? Based on the research found, Nestle uses demographic, geographic & behavioural segmentation marketing strategies to adapt in the changes of customers desires. Not just that, they also use a strategy called the mix of value-based & product-based positioning relying on the process of branding their products and which market that sells their product. However, unfortunately, this succession of Nestle’s marketing strategy can somehow be affected by the existence of marketing environment. What is marketing environment after all? Marketing environment can be divided into two groups which are microenvironment and macroenvironment. Microenvironment consists close actors that affect its ability to engage and serve its customers such as the suppliers, marketing

intermediaries,

customer

markets,

competitors

and

publics.

Next,

macroenvironment consists a larger-societal-forces that affects the progression of microenvironment too. For example, demographic economic, natural, technological, political and cultural forces. MICROENVIRONMENT First thing first, we are going to look at how Nestle’s microenvironment affects its marketing strategies. The first one is the power that customer hold. Nestle understands that each customer has different desires and interest. Some might be interested in drinking coffeetype of drinks but some might be interested in drinking milk-based drinks. By analysing the customers’ needs and wants, Nestle will try to differ their marketing strategies by changing the brand into a whole new brand or make a new taste of the product. Not to forget, by understanding the power of consumer wants and needs, Nestle can develop a strong bond with customers and positions their products as the first choice in customers hear. Next, one of the microenvironment actors in Nestle company is the suppliers. Suppliers play a very important role in supplying basic needs of the goods for Nestle. When Nestle can’t 3

have good relationships with the suppliers, this will effect their marketing strategy. For example, when Nestle can’t pay the debts they have for the suppliers, suppliers will tend to cut off their progress of supplying for the making of the goods for Nestle. When Nestle doesn’t have enough supplies to make their goods then it is hard to maintain their performance of selling the best products for the consumers. Next, competitors also play as the main role in Nestle marketing strategy. As years went by, we could have found many of rivalries for Nestle such as Kellog’s, Mars, Hershey, Kraft Heinz, Unilever and much more. So how do the competitors of Nestle give impacts for their marketing strategy? It is based on how they differ in positioning their products. When knowing there are some similarity that Nestle has with its competitors, Nestle will try to change their way of promoting, their ingredients including in what strategy they want to decide, how much worth their product in term of money. Thus, this will make sure that Nestle will always be the first choice from their customers. Another actor that plays important role is marketing intermediaries. Marketing intermediaries have their specific function which is to promote Nestle’s brands. Not just that, they also help Nestle to sell and distribute the products to the final buyers. For example, resellers function to distribute and find customers to make profit for Nestle. Customers will mostly know the existence of Nestle through their intermediaries. So, if Nestle can’t save a good bonding with their intermediaries, this will affect their marketing strategies such as the intermediaries reject their brands and products. If this situation occurs in the long-term, the existence of Nestle in customers’ acknowledgement wouldn’t be a success. Lastly, one of the important microenvironment actors is the public. Public is any group that has an actual or potential interest in o impact on an organization’s ability to achieve its objectives. There are different types of public such as financial publics, media publics, government publics, and citizen-action public. However, if Nestle can’t maintain their good performance, these public relations will not be interested to invest in their company. For example, financial public is the actor that supplies and support Nestle financially, however, if Nestle can’t have a good financial report, its financial public will stop to support immediately. This situation can have a big impact to Nestle’s marketing strategy. Nestle would not be able to buy supplies or pay for their business expenses in making sure their business run well.

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MACROENVIRONMENT Next, we will take a look how macroenvironment actors in Nestle’s business. Macroenvironment in Nestle consists economic, demographic and technological. Firstly, we will take a look on how economic actor gives impact on Nestle’s marketing strategy. Food is now considered as the most basic human necessities to keep on surviving. Economically, food is the highest ranking in human basic needs. Nestle has finally adjusted a lot of different preferences from the customers. For instance, there are a lot of circumstances living in a country or area that urges its netizen to have high salary in order to keep on surviving. Nestle concerns about this particular situation by making sure their price range of product would not be a burden to buy. Therefore, Nestle has produced instant noodle such as Maggi. This can help the buyers to enjoy delicious food but with reasonable and affordable price. Moving on, second actor in macroenvironment of Nestle that affects its marketing strategy is the changes in demographic. The demographic is a study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics. Nestle really concerns about these changes in demographic to make sure their plans and strategies in marketing will work along very well. For example, using the generations and occupations. We all have known in this world, we have few different types of generation from X to Z. In term of the way to promote such as making ads, and how Nestle wants to be closer with their customers, Nestle heavily concerns about it. If the way to approach the customers from different generation is no suitable, this will affect the interest of a customer wanting to buy their products. Thus, Nestle will try to be more creative creating ads to promote their products that suitable and easy to understand by every generation. Next, what about changes in occupation? Therefore, we all have readily-informed that in this world, there are different types of occupation from the most-leisured occupations until the less-leisured occupation. So how Nestle decides to adapt these changes in making sure their marketing strategy works well? The answer is, Nestle has been producing drinks and food that is suitable for those who don’t have enough time and for those who have enough time. For example, Nescafe 3 in 1 doesn’t require its consumers to spend more time making the coffee because the ingredients in it are already enough to be served as a complete drink. Lastly, the last actor in macroenvironment is technology. Nestle needs to be updated with technological factors in order to make sure their marketing strategy works well. As years went by, we have seen that our technologies have been improving from the slowest until the

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fastest and advanced. By concerning about the changes in technology, Nestle will improve a bit by bit their technologies so that they would not be so late from others’ advancements.

2.2 Respond Company to The Marketing Environment Macroenvironment The macro-environment nestles analysis and responds separately into five sections. The five-section name PEEST because combines five things first political, second ecological, third economic, fourth social, and the last is technology. Nestle needs to respond to this macroenvironment because there are operating in over 130 countries and they need this macro because want to analyze the external of the business.

Nestle also needs to know this

opportunity because of the benefits in the macro-environment. The macro-environment is the external or the outsider of the firm like political. Analysis of this very important to stabilize their company in the future. Nestle already a brand that popular among the people so because of that they have to respond fastly to the factor of outside the company. First things that they respond in a political. In politics, the most important factor to consider is the product. Product of Nestle has to get permission from the European Food Safety Authority (EFSA). EFSA must check Nestle product because to make people believe and have a prove that Nestle product is safe. That can make Nestle produce their product in many countries without afraid of safety in the product. That also can show that Nestle's product is healthy. Nestle using trade with the World Trade Organization (WTO) to make bilateral trade deals at Doha 2011. Benefits trade with WTO is can help Nestle in importers, exporters, producer of goods, and service to conduct their business. WTO is the big organization that many countries join in the organizations to make their product follow the rule of trade between nations. Dairy UK in April 2012, has signed up with the Department of Health`s to reduce their calorie in the Nestle product. The aim of Nestle to give consumers eat and drink with fewer calories on daily basis. The second thing is ecological. Nestle uses packaging that can be recycled to save the environment. That is good for the social responsibility image into the corporate. Then the environment can be friendly with nature. They also make a product that suits for climate change adaptations. For example in summer Nestle produce a product like ais cream to make us still cold in the heat weather. The important part of ecology is water management is an emerging 6

priority. Nestle needs clean water to produce quality products for the consumer in the beverage. Nestle also wants to obtain stakeholder input and explore the future direction in the world clean water because Nestle utilizes a small fraction of the world`s water.

The third thing is economic. In the economy, they respond to the unemployed rate. The unemployed rate rise by 8.4% in January 2012. The data get at Trading Economic that make in 2012. That shows many people who do not work are increasing. So the solution of Nestle is to give them a job and take a new employer in the Nestle company to decrease the rate of unemployed. The yogurt market in the United Kingdom (UK), grows slow but steady pace over the last year. That shows the economic growth of the market because the rate of yogurt UK is increasing by 2.5% in 2012. That is good for Nestle because their product in the economy has been growing in the years. The fourth thing is social. In the social talk about the cultural factor. The factor Nestle makes their health product because of preoccupation with trying to lose weight. So that why Nestle uses a low calorie to help people that busy with life to make them can lose their weight with use Nestle product. Then also can help them get nutrients in the products. The analysis show adults remain the largest population segment so that also Nestle make much product that suits for the age for the adults. Now a day people are really like snacks and forget to take food that has more fiber. That the challenge for Nestle in recent years because priority people like snacks between fiber products. It also makes Nestle come with many products that suit all ages like Milo that give the people stamina because of the ingredients in the product. They must make the product that suits all age because expected in the number of children between 5 and 9 years old with strong growth. Lastly in technology. They use the internet through online grocery. Retailing directly influenced operation, process, supply, and food retailers. They use online grocery because online grocery becomes famous. The popularity increase due to the access to broadband internet in the UK. All of the market overall use the broadband and the rate is 70%. Challenge in technology is Government reduces funding in the Research and Development ( R&D ). But this does not stop the product of Nestle in research a good ingredient in Nestle's product because they have a billion of money and also have a lab to develop their product in the future. The worker in the lab also a knowledge people or example professors because they have a good brain in making the product come a benefit to the people. 7

Microenvironment Micro-environment analysis or response in both internal and external environment. The identify this analysis use Strengths, Weakness, Opportunities, and Threats that name SWOT. The micro-environment can give impact directly a company like Nestle. In micro also can influence d general performances and daily proceedings of the company. The microenvironment includes suppliers, customers, resellers, competitors, and the general public. First in SWOT analysis to respond to the micro-environment is on strengths. The strength of Nestle in the global established brand like Ski. Ski is a brand of Nestle that sells yogurt. Then Nestle also makes their product into the innovation. The innovation is important to attract suppliers and customers to buy the product of Nestle. Nestle very strong in promotional for example their give promotional with exclusive gifts. Then Nestle is has a historical background that makes this company stable in any situation. Nestle company can recover the loss from the market in the short term. This is special of company Nestle between other company. Lastly product Nestle never out of stock because Nestle product availability to all major because of their production. Nestle product is high demand because perceived a quality brand in the market. Second in SWOT is weakness. The weakness of Nestle is in tv advertisements. But this weakness also a strength of Nestle products because in the tv advertisement they always share a benefit of the Milo product that uses athletes person. In social media, Nestle very less informational and interactive because of lacking updates. For example, we can see a current image of Ski, not the same current positioning because Nestle not consistent in that. So the conclusion for the Nestle needs more update in the media social to attract consumer and also need more frequents relaunches new product over the years. All this because in online and media social is opportunity to any company like Nestle make their profit also give trust to the supplier, customer and can bet the competitor. The third is about opportunities. Nestle took the opportunity the increase the use of the internet because know many people now have a smartphone. They also increase online advertising because online advertising can make Nestle products get a huge profit. The importance is they also increase nutritional awareness because Nestle serves a nutritional product that good for health and the ingredient good for the consumer. Consumer en...