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How nestlé use marketing
- 1. How Nestlé Use Marketing by Joel
- 2. Qualitative Research Less participants Used to gather peoples opinions Use mainly words Can be told from focus groups or interviews
- 3. Quantitative Research More participants More number based Involves questionnaires, polls, surveys etc
- 4. Primary Research Internal External Research you find • Conducted by out yourself yourself All within business • Outside the business Interview with • Customers employees
- 5. Secondary Research Internal External Data gathered from • Far less time consuming to obtain an outside source. • More cost effective gathered for • May not always be different reasons as useful
- 6. Uses of Marketing Research Gathering information Changes in the marketplace Improving as a business
- 7. Uses of Market Research Reduces the risk of making important decisions Market research does not always give the best outcome Coca cola’s marketing disaster in 1980’s
- 8. Measuring progress over time Brand awareness trends Day-to-day sales Altering trends within a particular industry
- 9. Limitations of market research Thereare two main issues when considering marketing: Cost effectiveness Validity of the data collected
- 10. SWOT Analysis
- 11. SMART Analysis
- 12. PESTLE Political Economic Social Technology Legal Environmental
Editor's Notes
- Today I will be talking about Nestlé, and how they use their marketing methods in terms of advertising their products
- Qualitative research is a similar type of research alongside quantitative research. In qualitative research, The information gathered is more detailed, however it includes less participants. The main purpose is to gather peoples opinions of the business and the surrounding categories in order for personal research and action. After the research, it is usually organised in the form of words or stories which helps any business with their market research. Qualitative research is mostly gathered from focus groups or interviews. Nestle would do some qualitative research if they were to come up with new designs or even products, They would hold a focus group in order to get ideas.
- Quantitative research is effectively the opposite of qualitative research in the way that it involves more participants, and is more number based.
- There are two different types of research which is split up into two sections, primary and secondary. These are then divided into internal and external research. Primary internal research is research that conducted yourself, but the way it differs from external research is because it is research that is conducted within the business. For instance, the employees would be interviewed in order for research. Primary external research is research which is done outside of the business but is still conducted yourself, hence primary. The research is taken from customers views form methods such as surveys, questionnaires etc. It can be used to target a specific target market of a specific product.
- Secondary research involves research that has already gathered from, for example the internet or books. Secondary internal research is data gathered within the business but from an outside source. However, most secondary research is gathered externally as it is far more easier and useful for the business Secondary external research is mainly carried out on the computer, so it id often called desk research. It is far less time consuming to obtain secondary research as oppose to primary, along with the fact that it is more cost effective to produce. However, it is not always useful because it has not been done with the intention of finding out the specific information. An example of this regarding nestle would include looking at questionnaires on the internet to see how many people actually eat chocolate.
- Market research is primarily used in order to gain information. It is used to gain ideas for a particular product or design, using both qualitative and quantitative data, along with the four different types of market research discussed. Nestle would use market research when planning their products or to find out information about their target market. Business would also like to know what is currently happening within the recent marketplace, whether it be new trends, fashions and what people are buying. As the marketplace changes nearly every day, Businesses would want to keep on top of this and produce what the audience what. Nestle would do this by doing their market research on trends in the marketplace and make a product that will top all other trends. Another main reason why a business would use market research is to improve and make more of a profit. They would use it to change their strategies if they are doing something wrong as it can cause mistakes which can often be very costly. It would however cost a business a lot of money to do the market research but a lot more to repair any mistake they make. It would still be in their best interest to spend less money with a lower risk.
- A famous example of market researching going wrong is the coca cola disaster in the 1980’s. This happened in the midst of a brand battle between Pepsi and coca cola. The target audience for both brands would get asked the same question of “what do you prefer the taste of, Pepsi or coca cola?” The majority of the feedback from the customers would say that they preferred the taste of Pepsi, saying that coca cola needed to be sweeter. So doing this, coca cola changed their formula to make it taste sweeter, but failed drastically.. This disaster shows that market research does not always pay off, and sometimes the issue of spending money on the research and on paying for the errors can both have to be paid for, which can make some businesses go bankrupt. If Nestle had done this they, would have had a lot of money to make up for.
- Measuring progress over time is an important use of market research, in the case that making no progress without knowing is worse than just making no progress. Being aware of the trends within different brands helps the business to keep up to date and also update their products to keep with the recent trends. Measuring their day to day sales also helps them to change for the better. Nestle would look at their sales daily as part of measuring progress over time, in order to keep up with the trends therefore selling more products. Along with this, they would alter trends and create new ones. This would be great publicity for any business as it would be unique and original.
- Like everything, market research has limitations which can stop some businesses reaching the number of people they would like, or being able to collect the amount of data that they like. One of these is cost effectiveness – sometimes market research can simply be too expensive! It costs money to post questionnaires out, it costs money to employ those who specialise in this sector and it costs money in nearly every way. A business can only get research if they have the funds available, which many do not. A massive company affects a larger amount of people, meaning that they would have to gather a significantly larger amount of information. While Nestlé are a big company, they need to gather more research as their products reach a larger number of people and affect a greater quantity of the confectionary market. Sometimes, they will not have enough money to be able to send out the research, meaning they have to limit themselves to smaller research or using a cheaper method such as launching a questionnaire section of their website.
- SWOT analysis is, as you can see here split into different sections. Mainly, the middle section which is strengths, weaknesses, opportunities and threats. S trengths: characteristics of the business, or project team that give it an advantage over others W eaknesses: are characteristics that place the business at a disadvantage relative to others O pportunities: chances to improve performance (e.g. make greater profits) in the environment T hreats: external elements in the environment that could cause trouble for the business or project A business would use this in order to evaluate the strengths, weaknesses, opportunities and threats within it. The SWOT analysis itself involves specifying the objective of the business and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. Nestle would certainly keep on top of their SWOT analysis in order to change, introduce and improve products.
- SMART stands for Specific, measurable, achievable, realistic and time. You can see some brief example here, but here’s how Nestle would use it: Specific – setting a specific target, for instance how many units they plan on making in a day Measurable – Keeping track The quantity of certain products made daily Achievable – Assess how nestle can achieve this Realistic – Is the goal they are setting actually achievable Time bound – How long they have to achieve their target
- PESTLE is in effect an examination of an organisation's influences in regards to decision-making. The assumption is that if the organisation is able to examine its current environment and review changes, it will be better off than its competitors to respond to changes. Businesses would think about the 6 factors, Political, economic, social, technological, legal and environmental.