This report addresses the need for changes to the current marketing strategy of Nestlé Lanka and to become more competitive in the industry.
The existing market segments were identified demographically and geographically, where the target markets are separated by different age groups and income levels of consumers. Nestle has taken a step ahead of its rivals by introducing the ready to drink pack of beverages to position themselves in the market more strategically. The challenges are identified in positioning these products in different geographical locations and in extreme weather conditions. The current buying behaviour is critically analysed to predict the possible future changes and as a result the rising health concerns and other environmental factors are identified.
Nestlé Lanka’s product mix is mapped against the product life cycle with the intention of identifying the current business volumes and changes required in order to retain in the market. Products like Milkmaid and Maggi Noodles are claimed as cash generators whereas Maggi Coconut milk and Nespray needed more investment to extend their product life. Present customer experience during the sales process and the promotional techniques used is also identified. Nestlé Lanka is sticking to the traditional advertising methods and not taking the changes in the consumer mind set is highlighted as weaknesses from marketing point of view.
For each of the issues mentioned in the report are given recommendations by critically analysing the current market status and the level of competition. Ways to improve the future market share after scrutinizing the resource capabilities are proposed in addition to the measures need to be taken to match changes in buying behaviour. Innovations in products, growth strategies and solutions like Maggi coconut liquid milk instead of coconut milk powder are suggested to attain higher volumes in market segments. A timely and appropriate digital marketing plan is proposed to reach the next level in the industry by adapting to technological developments and embracing social media to reach substantial consumers.
The report concludes by mentioning the expected outcomes in the future with the recommendations and setting up a goal where Nestlé Lanka will be a 50 billion Sri Lankan Rupees (LKR) worth company by 2018.