Saturday, March 30, 2019
Market Segmentation Targeting And Positioning
Market Segmentation Targeting And PositioningMarket separateation involves aggregating of prospective buyers into groups, or segments that view common needs and leave alone respond similarly to a marketing action.1 come on provide a wide mark of nourishing sustenance and beverages for everyone to practice a balanced and full-blooded diet and keepstyle. on that point be four types of major segmentation variables for consumer markets which include geographic, demographic, psychographic and behavioral. Segment marketing has given the federation a cle atomic number 18r picture of their clients and competitors so that the telephoner posterior come up with a much fine-tuned results and services that satisfied customers needs. finished market segmentation, manoeuvering and positioning, come on lav reach step up to their customers to a greater extent intimately and serve their customers more effectively and efficiently.SegmentationWe set in motion out that cuddle leve lify their market by using geographic, demographic and psychographic segmentation establish on consumer characteristics. In geographic segmentation, draw near has divided their market into urban atomic number 18as (cities) and rural areas (villages). Besides that, nuzzle also uses demographic factor to segment its market, it consists on income level and educational level. The income level and educational level tush be categorized as low, affection and high level consumers. apart(predicate) from that, cuddle uses psychographic factor to differentiate the market. The segmentation variables that Nestle uses are personality, genial class and lifestyle. Nestle bottomland groups individuals according to their personalities such as extroert, self-disciplined or energetic. Nestle divides their customers into low social class, medium social class and high social class.TargetingA target market is a authorisation market that a union has decides to concentrate its marketing efforts a nd resources to enter those markets. Nestle segments its market by regions, income level, educational level, personalities, social class and lifestyle. By applying the teaching and observations that we get, we sight simply identify the target market of Nestle.In this case, we found out Nestle focuses on urban areas rather than rural areas. The role of Nestle products is a great deal in cities as compared to villages. This may be c exclusivelyable to income and educational level. The people in rural area mostly could not afford the products of Nestle as it is considered as luxuries. They do not have strong sense of health consciousness due to educational reason. This makes them the little attractive buyers.For segmentation by income level, Nestle has been targeting on those consumer who earn middle income and high income. People testament purchase healthy and nutritious food and beverages when they have enough monetary resources to back up them. Those consumers with high in come run for to be the potential buyers for Nestle because they bring most profit into the company.Furthermore, for educational level Nestle tends to pay more attention to those consumers who has an education background. They will be more concern of their health and they will do more to bear it. Through education, we raise mend our knowledge and develop life skills which can contribute to individual and community health. Those people with an education background are more likely to practice and maintain a healthy and balanced diet as they know health is more consequential than wealth.For personality segmentation, Nestle is targeting consumers who are more outgoing and outdoorsy. It is because they require more energy and nutrition that they have lost during their activities. By adapting nutritional stimulus to physical needs, they can get the most from their body.2These people wish to maintain their energy level and quick recovery after a feverish day by adapting a balanced di et that provides them with congenital nutrients and energy.In addition, from the social class and lifestyle segments, Nestle is targeting consumers who are belong to the higher social classes. They have high purchasing power so that they can afford more luxuries such as Nestles products. These people are the target market of Nestle because they tend to be more health conscious. Nestles products often emphasize on nutritional value and health benefits that can reform ones lifestyle and health issues.As conclusion, Nestle is able to reach out to their customers that it can serve best and most profitably. Through segmentation and targeting market, Nestle can enhance the profits for their company and increase effectiveness in their marketing campaigns.PositioningProduct positioning refers to the point an offering occupies in consumers minds on important attributes relatives to warring products. Nestle positioned itself as the world draw in sustainment, Health and Wellness, trusted by all its stakeholders, and to be the annexe for financial performance in its industry. 3Nestle uses the slogan Good food for thought Good Life to enhance lives, by centre ofout life, with good food and beverages.4Nutrition content in their products is the main focus to strengthen their leadership in nutrition industry. To remain their position in that industry, they must identify their free-enterprise(a) advantages against their competitors. Nestle has listed out four belligerent advantages of their company that may friend their company to compete with their competitors, that are unpaired product and grade portfolio, unmatched research and development (RD) capability, unmatched geographic presence and lastly people, culture, determine and attitude5.For unmatched product and brand portfolio, Nestle provide the largest range of food and beverages among all the food company. Their products range from global icons to local favourites that can adapt to consumer needs, tastes and preferences, making Nestle as a global brand that relevant to everyone and everywhere. Besides that, it is supported by unmatched RD capability that purifys the products through innovation and renovation so that it can meet consumer needs and enhances consumer benefits. Nestle spent over billions of dollar on its RD just to ensure its consumer gets the essential nutrition that their body needed.Nestle has an unmatched geographic presence competitive advantage due to the number of countries where they presence. They have been in most countries for over decades and successfully created a strong relationship amongst their brands and their consumers.6This also means that they have has plenty of time to study about the local preferences and behaviors to improve their products taste to match the locals preferences. The most important competitive advantage for Nestle is their people, culture, values and attitude. The Nestle culture created a strong bond in the midst of their people with a shared set of behaviors and values into a adept way of doing business. Their people are determined to deliver their goals as duration as creating value to the public.7 marketing environmentMarketing environment consists of microenvironment (internal environment) and macroenvironment (external environment). It embraces all the marketing team inside a firm and includes all the removed factors of marketing that affect the teams ability to develop and maintain successful customer relationships with their targeted customer group.8Nestle is using it to improve customer relationship instruction and adapt new strategies when it comes to challenges and opportunities.MicroenvironmentSuppliersSuppliers are the one who delivered the resources needed by the company to produce the products or services to the consumers. Any problems that incurred in supplier can greatly affect the company sales and damage customer relationship. We can divide the suppliers of Nestle into both groups t hat are labour suppliers and material suppliers.9 toil suppliers are in charge of the supply of labour required by the company to optimize their production level. Labour strikes and labour relations are the most important factor to maintain labour satisfaction for company to improve their efficiency. For material suppliers, they deal with the materials needed by the company to place the finished goods on rack. The quality of the material is everything that the company focuses on as Nestle is in the food and beverages industry. By maintaining the quality and quantity of these two supplies, Nestle is able to produce high quantity product to keep their sales volume and customer satisfaction in the long run.Marketing intermediariesIt helps the company to promote, sell and distribute its product to the final buyers.10The physical dispersion firms design the delivery chain for the company products to reach their final destination. The firms also in charge with the products safety withou t getting any damage eon storing them temporarily. Marketing service agencies of the company helps to target and promote its products to the right market.11It acts as a communication channel between the customers and the company by explaining the features of the product and providing feedback with the help of survey for the company to improve the quality of the product.12Banks and insurance companies are financial intermediaries that help to provide monetary resources and protection to the product and company against risk that may be occurred during the operation of the company. Nestle works unitedly with all marketing intermediaries to ensure their valuable customers have a pardon image of their products features.clientNestle sells its goods to reseller markets that provide the goods to final user at a reasonable profit. Nestle also deals with customer markets which consists of individuals and households that buy a wide range of its products. Nestle works hard on making the prod uct available whenever the customer needs them to maintain customer satisfaction.Macroenvironmentpolitical environmentNestle adhere to the laws and regulations that involve in its activities and the environment. The government may set quotas on the quantity of the products that it can supply and set the measuring of taxes that the company must pays in order to conduct the business. To achieve a balance between them, Nestle participates in legislative and regulatory discussions between international organizations, government representatives, industry, scientific community and consumer associations.13Economic environmentCustomer purchasing power is majorly affected by a range of economic factors such as income levels, inflation, taxes, unemployment, exchange rates and mortgage rates14. The useable income and living standard of a country may bring with child(p) business opportunities for Nestle or the other way round.Cultural environmentBefore Nestle start its operation in any coun try, it primarily focus on studying the societys cultural value, preferences and behaviors. This is because Nestle hopes its products can be accepted by the local with warm welcome and be competitive among other companies that operating at the same level.15Technological environmentTechnologies are the vital part of Nestle RD. Investment in technology will definitely help the company to reduce production cost and improve product quality. For example, Nestle have developed technologies that allow them to use graphic vegetable oils instead of partially hydrogenated fats in Maggi bouillon cubes and seasonings.16With the help of technology improvement, Nestle can create healthier products across their product range and so improve health and quality of life in a country.