Introduction

An organization’s resources, goals, and market environment must all be compatible with one another for market strategy planning to succeed. An organization’s expertise and business environment are analyzed utilizing this technique. In summary, it is a framework for executing the orientation of the orient. For the marketing strategy, this article will describe particular approaches. The article will concentrate on four models due to time and word constraints. In addition to Ansoff’s matrix, PEST, Porter’s Generic Strategy and BCG Matrix will be explored as planning aids. It will concentrate on just one company, Nestle, to make the article more focused. To avoid confusing the reader, focusing on one organisation for all models is preferred. Nestle UK is selected to carry out this report.

PEST Analysis

The PEST study aids in the identification of the factors that have an impact on the performance of the organisation from the outside. It is because this model is effective for analyzing the impacts of external environmental facts that directly or indirectly influences the overall performance of the company (Perera, 2017). For analyzing this model, Nestle has been used as an example how the external business environment of the company in the UK.

Political factors: Although the government in the UK governs the business environments of its industry from both monarchical and parliamentary systems. The political system of the country is based on common law that focuses on the fulfilment of every business rule in the country made by the government and international communities (Trades Union Congress, 2022). Regarding this, it concluded that Nestle is a member of the European Union and in a positive relationship with the government of the UK.

Economic Factor: Although the economy of the UK is the third-biggest economy in the global world, it is still facing the impacts of Brexit, recession and Covid-19 impact. As a result of this process, the UK is facing economical issues in its GDP growth which affect the earnings and business activities of the UK (Trades Union Congress, 2022). Concerning this, it can be said that the current issues in the UK market have also affected the performance of Nestle in the UK but it is still gaining customers due to its product’s nature.

Social Factor: The majority of the population in the UK is between the ages of 15 and 64, which indicates towards ageing population (House of Commons, 2022). As a result, Nestle has a chance to develop new product lines that can be able to meet their needs related to energy and vitamins which are required to live a healthy life.

Technology Factor: The government of the UK places a strong emphasis on computer-based production technology to replace the possibilities of human error and maintain the high quality of the products (MIT Publishing, 2022). About this, Nestle is in a position to produce the products with the help of advanced technology to produce quality products through the help of effective product planning.

Ansoff Matrix

Fulfilling their business goals and objectives, companies use one of the below-presented strategies to intrude the products in the market that are defined by Ansoff Matrix that are market penetration, market development, product development and diversification (Fortin, 2017). Regarding the business operation of Nestle, it concluded that the company operates across a wide range of markets with different characteristics. First and foremost, the company uses a market penetration plan by making a reduction in its expenses that allows the company to enter the new market more efficiently and quickly. It has been observed that Nestle has entered the Indian market after the big loss of the Maggi market by offering their Meggi brand with herbs, vegetables, and spices, nutrient-rich ingredients and other grains to children at a very affordable price that helped the company to get recognition in product market quickly and get customers as soon as possible (Nestle, 2022 and The Quint, 2017). Further, market development is the process that helps a company to introduce an existing product to customers. When Nestle introduced its KitKat in China, it used Nescafe espresso which was its product that is an example of market development (Vandenberg, 2019). Further, the strategy of product development is used when an organisation continues to operate in the same industry. Regarding this, the company is already engaged in the market by expanding its offering to customers. Nestle was known to use product development while it remained in the European market, but it started branching out into health and nutritional items and broadening its product offering after it left the market (The Dollar Business Bureau, 2020). As a result of its investment in the cosmetics company L’Oreal, Nestle has a well-diversified portfolio. The company also has stakes in several pharmaceutical companies across the globe.

BCG Matrix

This model is used to example which product of the company is effectively helpful for the company to develop its market and achieve market objectives and aim (Pruschkowski, 2018). This model helps the company to divide entire product items of the company into four segments that are explained for Nestle company in the below-presented paragraphs:

Cash Cows: This product has low growth but a high share in the Indian market (Businessmavericks, 2021). Concerning this, infant food products, Kit Kat and chocolate brands are a cash cow for the company in the UK.

Star Products: this product of the company has high growth and high market share in the market. Regarding this, frozen food lines of the company are a part of this segment that is getting the declining cooking market of in the developed country like USA (Businessmavericks, 2021). This product segment of the company is gaining new market share in the country.

Dogs: These are those products that are not acquired high revenue from the market. These products are closed by the company to produce as they consume the profits of the company. Nestle is expressing an interest in investing in the pharmaceutical industry that is a dog product for the company (Businessmavericks, 2021). Hence, it is expected for the company to withdraw focus from this industry to start focusing on increasing efforts on nutritious goods.

Question Marks: These products are those products that are not performing for the company as per the expectations of the company. Concerning Nestle, the breakfast grains of the company is the question product in the Indian market. In Indian culture, people use the natural meal as a part of their breakfast and the use of cereal in breakfast is a rare activity (Businessmavericks, 2021). Regarding this, the company is still trying to explore the future of this product.

Porter’s Generic Strategies:

Porter’s generic tactics illustrate how a firm seeks market advantage (Eldring. 2009). Nestle has concentrated on differentiation in products and segmentation of target market to develop in this competitive sector. Nestle offers a broad selection of goods to meet the demands of diverse segments depending on the season, age, climate, and employment.

Figure: Market Share of Nestlé’s Items

(Source: Statista, 2022)

Nestle has launched a Café menu, Decaf, Super Premium and every day to cater to client behaviour. These strategies are helpful for the company to develop its business in each target market. Further, the products like Lectogen and Noodle products have helped the company to distinguish itself from its competitors’ market.

Conclusion

Based on the above discussion, it concluded that the market planning is effectively done with the help of the external business analysis that has effectively with the help of different models that have been described in the discussion.

References

Perera, R. 2017. The PESTLE Analysis. Nerdynaut.

Businessmavericks. (2021). BCG Matrix of Nestle in a Simplified Way. Retrieved from https://businessmavericks.org/bcg-matrix-of-nestle/

Eldring. J. 2009. Porter ?s (1980). Generic Strategies, Performance and Risk. Diplomica Verlag.

Fortin, F. (2017). Ansoff Matrix Essntials. CreateSpace Independent Publishing Platform.

House of Commons. (2022). The UK’s ageing population. Retrieved from https://commonslibrary.parliament.uk/research-briefings/cbp-9239/#:~:text=The%20UK’s%20ageing%20population&text=Around%20one%2Dfifth%20of%20the,or%20around%2012.3%20million%20people.

MIT Publishing. (2022). Technology roadmap for UK manufacturing industry unveiled. Retrieved from https://www.pesmedia.com/uk-manufacturing-industry-digitalisation-30032021/

Nestle. (2022). Good Food, Good Life. Retrieved from https://www.nestle.co.uk/en-gb/brands

Pruschkowski, M. (2018). The BCG Matrix and its Support of Management Decision Making. GRIN Verlag.

Statista. (2022). Market share of Nestle in 2020, by product. Retrieved from https://www.statista.com/statistics/1190357/nestle-market-share-by-product/

The Quint. (2017). The Dollar Business Bureau. 2020. Nestle Plan to diversify into premium coffee, pet care, careals. Retrieved from https://www.thedollarbusiness.com/news/nestle-plans-to-diversify-into-premium-coffee-pet-care-cereals/49502

Trades Union Congress (2022). Impact of Covid-19 and Brexit for the UK economy. Retrieved from https://www.tuc.org.uk/research-analysis/reports/impact-covid-19-and-brexit-uk-economy

Vandenberg, K. (2019). The Kit Kat in Japan, a Transliteration Success. Retrieved from https://thediplomat.com/2019/08/the-kit-kat-in-japan-a-transliteration-success/