Goals for the plan | Sharksavewriters

Goals for the plan

By introducing or launching a new product to the market. Some of the primary goals the company sets to achieve with this new product include;

Achieving product differentiation:Nestle company is a conglomerate corporation that deals with various products in the food and beverage industry. Nestle Company faces stiff competition in the food and beverage industry from players in the industry such as Kraft Foods and P&G companies. The stiff competition also results from the threat of substitutes because Nestle Company deals with easily substituted products. Thus by introducing a new product different from those offered by rival companies, the company will have achieved product differentiation and an additional competitive advantage (Semuel et al., 2017).
Promoting health: Nestle company has been criticized in various fields, including the health sector. The company’s critics argue that some of Nestle’s products are risky to people’s health due to contamination claims. For instance, in 2008, Hong Kong’s government found that the Chinese-manufactured Nestle milk commodity had melamine that resulted in six infants’ death due to kidney damage. Thus, the company will promote health by introducing chocolate oat milk, a new product that contains natural sugars obtained from dates. Chocolate oat milk is also rich in fiber, calcium, vitamin D, protein, iron, and antioxidants essential for people’s health. Besides the product having a nutritional value, it is vital to boost body immunity, prevent anemia, fortify bone density, and reduce cholesterol levels.
Building the company’s brand:By introducing a new product to customers, Nestle Company will be building and strengthening its already established brand. Usually, a company’s brand promises its customers because when a customer hears the company’s name, they easily relate to the company’s products and the promise to deliver high quality and experience at an affordable price. Thus, introducing a new product to the company’s product line reinforces the company’s brand because of its commitment to delivering innovative products in the industry. The company also gets new, more customers who want to associate with its products and experiences through this.

Market analysis

The market needs trends and behaviors: Consumer demand for dairy commodities is sluggishly rising, indicating the shift in consumer tastes and preferences, especially in most developed nations. For example, Europe and North America are experiencing a slow growth rate in the last few years. The fluid milk consumption rate has also decreased in the United States (Megan, 2020). Similarly, the Dairy Information Center of Canada argues that the consumption rate of fluid milk in Canada and Mexico has declined. Nevertheless, the decreasing consumption rate of dairy products in European countries like Germany, Italy, and France is less drastic. Dairy product alternatives from plants include the entire products’ ecosystem that is slowly replacing ordinary counterparts or products. Therefore, the prevailing environment is conducive for the growth of chocolate oat milk products in these areas.

Competition: The primary key player in providing oat milk and oat-based dairy commodities is Oatly Company. Oatly Company is a Swedish brand, and it was the first player to enter the oat milk market. Therefore, the level of competition is low in the international market. Nestle is likely to face little competition from small enterprises because it is cheap to use locally available resources. The low competition locally can also be attributed to such small firms’ inadequate financial ability; thus, they cannot pose a huge threat to Nestle Company, which has the financial capability. A few domestic industry players in the United States market, such as Califia Farms, Danone, and Chobani produce differentiated oat-based milk products and beverages.

Competitive advantage:

Nestle company will produce chocolate oat dairy products of different tastes and flavors. It will have a competitive advantage over Oatly Company, which is a key player in the industry. The company will also ensure the new product’s pricing goes with the quality due to the constant change in consumer behaviors, tastes and preferences. The company has a widely distributed marketing network worldwide, distribution channels and financial muscle; thus, it has an additional advantage over the key player in the industry.

Barriers to entry (strong force): It is relatively difficult to achieve the economies of scale in the sector where Nestle Company is operating, making it easier for the company to pose a cost advantage. The cost of production for new entrants is high; thus, it is easier for Nestle to enter the market. By producing strongly differentiated products rather than standardized products, carrying out strong advertisements and providing quality customer service makes the entry barriers a strong force.

Regulation: Nestle will face diverse regulations in various countries due to different food systems while operating in international markets. The various governments usually monitor wholesomeness, safety and labelling of the foods and beverages to ensure they are economical, high quality and convenient for consumers. The food safety regulations are an integral part of many countries, especially in the United States, where agencies like the Food Inspection and Safety service and Food and Drug Administration establish and enforce food safety laws (Fung et al., 2018).

Strategic objectives

Nestle company will utilize three primary objectives appropriate to the firm based on the launch of the new product to the market. By accomplishing its objectives, the company will fortify its independent market position to maintain on a long-term basis. The objectives include;

To be an attractive partner to its customers:The company can try to be an attractive partner to its customers by providing them with quality service and products at competitive prices. Its international growth strategy will also provide its staff with personal development opportunities while providing suppliers with opportunities to create new product lines and increase their product sales. The society, in general, will benefit from the increased employment opportunities and resultant tax revenues.
To enhance food safety:Nestle company is aware of food safety because it is a supplier of foods, beverages and related drinks. The company will take food safety precautions that aim to keep risks away from its customers and its employees. The company will observe tight safety practices concerning food processing and the products throughout various levels in the firm. The company has a quality assurance department that is well-equipped with qualified personnel involved in rigorous quality checks on the company’s products. The company’s procurement department also emphasizes the need to adhere to high-quality standards and procedures and monitor compliance with those standards, directly and indirectly, using specialist institutions.
To promote environmental protection:The new product presents the company with sustainability features because it is made from plants. The product is one of the most sustainable and provides the best alternative to dairy, thus switching to chocolate oat milk from a cow’s milk may save more than 70% carbon emissions. It is because oat is a sustainable crop that is not linked to excessive water uptake or deforestation (Eranki et al., 2019).

Target market analysis

Segmentation

Nestle company is a brand that operates in both domestic and international markets. The domestic market in Switzerland provides the company with the domestic market. The company can also target global markets in Europe, Asia, Africa, and the Americas. The target consumers for this new product will be children (above three years), the teenagers, the youth and the elderly. The company will also target consumers of both genders (male and female). The company will target individuals from different educational spheres (both the educated and uneducated) based on education (Camilleri, 2018). The Nestle Company will also target individuals of diverse income levels by producing products of various quantities to suit each level of income earners. Based on the lifestyle, the company will target individuals of all kinds of lifestyles, especially vegans. The loyal consumers of the company will also be targeted because of their regular purchasing habits. Consumers from all ethnic groups will be targeted because the product is processed from plants and does not include any animal supplements which can hinder certain religions from consuming the product.

Size: Nestle company has a considerable market size because it is a widely known brand worldwide. Thus, its market size is large enough to promote its products.

Accessibility: Nestle company has a strong distribution network across the world. Therefore, it will ensure the new product is available in all its outlets worldwide to enhance product accessibility to its customers. Strong advertisements will also supplement product accessibility to inform the potential consumers that the new product is available in all the company’s outlets.

Value: The market value will depend on the number of potential customers when the new product is launched. Though Nestle company has a worldwide market, its market value is likely to be high through its several outlets across the world.

Objectives for chocolate oat milk concerning;

Marketing strategy: In the marketing strategy, the new product presents the company with many objectives. Some of the objectives include;

To increase the company’s sales
To target new consumers or customers
To increase the company’s profits
To enter new local and international markets

Positioning strategy: The primary objective that the launch of the new product strives to achieve in the positioning strategy is;

To build the company’s brand image

Product strategy: The primary objective that the launch of the new product strives to achieve in the positioning strategy is;

To upsell new services

Pricing strategy: With the introduction of the new product, the following objectives are established;

To maximize the current profits
To target returns on investment
To target the market share in the industry (AlJazzazen, 2019)
To satisfy and win customers’ confidence
To face rivalry or competition in the industry

Distribution strategy

Based on the distribution strategy, the new product presents the company with the following objective;

To improve the company’s efficiency by ensuring the goods are available to consumers at the right time and place.

Marketing communication strategy: In the marketing communication strategy, the launch of the new product will strive to achieve the following objectives;

To enhance internal communications
To improve customer relationships
To enhance stakeholder relations