The above titles are actually questions for a two-part research assignment that I wanted to list all on one page. For the first one, Strategy and Positioning Analysis Part 2 Use the same product and organization you identified in your Week 3 Strategy and Positioning Analysis, here was my teams idea from Week 3 of the company and product we picked: Nestle Corporation and a Water Purification Product, specifically a single serve water purification product that comes in a small dropper and contains safe purifying water mixed with chlorine dioxide, which is a chemical youll find used in water treatment plants and is designed as a small, easy-to-grip bottle that can be convenient for any kinds of traveling, especially for something like camping outdoors, for workouts or to take on the job at work.Develop a 2,100-word analysis (excluding cover page and reference page words) that includes:IntroductionDescribe how your marketing efforts and marketing mix will change with each phase in the product life cycleExplain how the packaging you will use for your product or service will add value.Analyze the appropriate pricing strategy for your product or service and the price you will set at launch.Evaluate the channels of distribution you will use to sell your product along with a description of how each channel partner will add value.ConclusionInclude at least four sources of research that support your analysis; at least a few that are peer-reviewed researched and a few that are secondary research.Format your assignment consistent with APA guidelines, including citations used within essay paper.For the second assignment titled Marketing Research Report the instructions include the following: Use the same company from your Week 2 assignment.Company used was Netflix.Your company has decided to launch a new line of products.Create a 1,400-word report (excluding cover page and reference page words) and include the following information:IntroductionChoose the target market for your new product, and describe your target market in detail.Create a new product that would appeal to your market. This should be a product that you come up with, not something that the company is already releasing. (My idea I sort of had in mind for this one was possibly maybe expanding their service by adding a livestream feature where the technology and systems behind this could compete even better with other current online livestream options and provide better benefits in the future for consumers, but if you may have other ideas to offer, I wouldnt mind since Im having a difficult time thinking what kind of new service or product I could think up of for the Netflix Company). Focus now on what youve learned about marketing research. Develop at least one question youd try to answer via marketing research for each characteristic of the target market (demographic, geographic, psychographic, and behavioral) that will be important for you as you determine the marketing strategy for this new product.Recommend the best methods of conducting marketing research to answer these questions. Use at least some of the tools discussed in the text. Be sure to include why you chose these particular methods.Outline the steps you will take to bring your product to market from idea generation to commercialization, using a multi-step product development process. ConclusionFormat your assignment consistent with APA guidelines. As always, include a reference page and include citations used within essay research. Side Note: Attached below are some essay papers and a PowerPoint presentation, one of them Ive worked on with team members, but these two upcoming assignments are both individual ones and I appreciate any help I can get on them. Thanks!Elements of a Marketing Plan Report
Andrea Markiewicz
MKT/421
December 12, 2016
Susan Tomaski
Environmental Forces For Netflix Opportunities
When it comes to the changing times of technology and society, marketing strategies
need to be able to do the same. Marketing is a business technique that organizations use to
satisfy, maintain, and make a profit from their consumers while staying affluent. When
customers needs get met, most likely they may continue to be loyal clients. The company of
Netflix, which is a DVD mail service, has shipping that operates in less time and energy than
driving to a video store. The founder of Netflix, Reed Hastings, realized there was a need in the
movie rental industry. He thought with having DVDs sent in the mail would make it easier for
customers to receive videos without waiting in line. Netflix, in the beginning, started out as only
a DVD by mail service and by 2007 began movie streaming (Nocera, 2016).
Before Netflix, consumers had to wait in line to purchase their movies from either
independent mom and pop stores or Blockbuster. Sometimes these stores did not have a large
selection to choose from and would run out of videos. In this case, you would then either put
your name on a waiting list, which lasted from days to months, or possibly may not receive the
DVD at all. It seems Netflix did have a significant advantage over other movie rental companies
like Blockbuster, mom and pop independent video stores and Amazon. This opportunity for
Netflix created a chance to succeed in the movie rental business. However, to keep in mind, a
quick success does not always guarantee that a company will be successful in the long term.
Purchasing Patterns Of Netflix Target Market
There have been quite a few changes in the purchasing patterns of Netflix. In the
beginning, Netflix offered their clients a package that included unlimited DVD rentals for $7.99.
When they added video streaming in 2007, the price for both was $11.99. Once the streaming for
movies began, Netflix offered a limited number of movies for video streaming compared to
DVD rentals (Guina, 2007-2016). This kind of strategy was used to help bring in customers who
were knowledgeable in electronics and technology. Once new subscribers of customers
increased, Netflix decided to change their plan. The plan this time consisted of video streaming
or DVD rentals for $7.99 and video streaming plus DVD rentals for $11.99 to $15.98, depending
on how many DVD’s the customer wanted to rent (Redwine, 2016). The Netflix price has
increased from $7.99 to $8.99 video streaming monthly and has offered a significant amount of
video streaming movies more than ever before (Guina, 2007-2016).
Another purchasing pattern with Netflix is that they used to offer video streaming movies
that lasted a long time. Now, some movies stay on Netflix for some time and then it is taken off
and then put back on DVD rental. If you are a customer who enjoys watching a video streaming
movie multiple times and is now no longer available, you must make a choice to either live
without the film being streamed or purchase the movie streaming and DVD rental package
(Redwine, 2016). The last purchasing pattern that I have noticed about Netflix is that they are
now appealing to a wider audience such as family movies, sports and same-sex films, TV shows
and documentaries. Netflix has also been the first video company to offer movies streaming on
multiple devices like cellular phones or any other handheld devices, plus video consoles.
One of the greatest things about Netflix is that they cater to all their customers needs.
There may be some consumers who may not be able to afford computers or handheld devices
and may only have a DVD player where Netflix still gives them the option to rent DVDs. If
Netflix continues to focus on the fact that they have been around since the 1990s, they will not
only stand out from the rest of their competition (Redbox, Amazon, Hulu, Blockbuster), but can
also show that they can meet the needs of their customers.
Netflix Environmental Scan
With Netflix expanding their business in popularity, no other movie rental industry has
achieved in making healthy profits, even though they may have come close like Netflix has. The
social impact Netflix sustained is beating out their competitors who their primary operations
were retail videos (Wang, 2014). Once Netflix began their movie rental streaming industry, it
caused a lot of video distribution centers who have not kept up with technological changes to go
out of business. This process is a known fact that Netflix came to dominate the DVD rental
industry and has given their consumers a great value for their money. However economically,
when you have the decline of Blu-ray discs and DVD movies and shows, Netflix could not
maintain its operating margin levels. Because of this major setback and change in technology
rapidly advancing, Reed Hastings decided that Netflix had to increase its monthly subscription
and focus more on video streaming. Netflix beat out Blockbuster videos just by using the DVD
mailing system alone (Cuffe, 2005).
Eventually, the success of Netflix caused Blockbuster videos to file for bankruptcy.
Technology has allowed Netflix to expand its movie viewing. Since customers can view their
movies or shows they like on computers, mobile devices, cell phones, video consoles and
laptops, they can take Netflix everywhere they go (Ware, 2014). Netflix has already shown that
they are staying ahead of their competitors within the video rental industry. By gaining loyal
customers, the streaming of movies and TV shows is Netflix’s greatest strength. Unlike Redbox
and Hulu, which are also online video industries who offer fewer devices and movies, Netflix is
an international movie rental industry. In being regulatory, Netflix has reduced their quality of
video streaming on devices to wireless customers of Verizon and AT&T. The purpose of this
was to protect their customers from exceeding their monthly data cap and accruing too many
charges on their bill (Russell, 2016).
Differentiation Strategy For Netflix Target Market
When it came to the differentiation strategy for Netflix, they wanted to raise their
subscription fees. This change though happened to disappoint many of their loyal consumers
who subscribe but did not take away the fact that they are successful (Goldman, 2016). For
Netflix to continue to stay ahead, they would need to evaluate their strengths and weaknesses
when it comes to the operations of the video streaming rental business. To do this, Netflix needs
to continue the separation of services without increasing their prices. However, there still can be
a risk to that. Long as Netflix can sustain their prices below their competitors while keeping the
best quality of movies and TV shows, they should have nothing to worry about for their online
business.
Geek Squad Case Study
When reading over the case study for Geek Squad, when it came to the advancement of
technology there were so many people who needed help in understanding the terminology of
computers and Internet access. With this problem in mind, Geek Squad at Best Buy saw an open
opportunity to assist those who were less educated in the field of computer technology. They
realized that even though men are the most equipped when it comes to anything electronically,
women are now gaining an interest in computer technology and electronics as well. Their focus
is to not only provide in-home service but to have the right staff in place answering questions in
a way customers can comprehend more fully. Another interesting concept I took away from the
Geek Squad company was that along with the Ford Motor car company, they developed a
partnership to install in-car communication and shows these techniques can help keep Best Buy
afloat in the industry (Kerin, Hartley & Rudelius, 2015).
References
Cuffe, S. S. (2005). Future E-Business Models and Strategies for Managers. Futurics, 29(1), 4146. Retrieved
from http://search.proquest.com.contentproxy.phoenix.edu/docview/219834926/FF74D206665C
41A5PQ/3?accountid=35812
Goldman, D. (2016). Netflix Prices Are Going Up. Here’s When You’ll Have To Pay More.
CNN Tech. Retrieved from http://money.cnn.com/2016/04/19/technology/netflix-prices/
Guina, R. (2007-2016). Netflix Review-Online DVD Rentals and Video Streaming. Cash Money
Life. Personal Finance and Career. Retrieved from http://cashmoneylife.com/netflix-reviewonline-dvd-rentals/
Kerin, R., Hartley, S., & Rudelius, W. (2015). Marketing. McGraw-Hill Education, 12th Ed.
Retrieved from The University of Phoenix eBook Collection Database.
Nocera, J. (2016). Can Netflix Survive In The New World It Created? The New York Times.
Retrieved from http://www.nytimes.com/2016/06/19/magazine/can-netflix-survive-in-the-newworld-it-created.html
Redwine, I. (2016). Renting From Netflix. Lifewire. Retrieved from
https://www.lifewire.com/renting-from-netflix-1854040
Russell, J. (2016). Netflix’s Overseas Problem: Still Too Expensive And Still Not Enough
Content. Tech Crunch. Retrieved from https://techcrunch.com/2016/07/19/netflixs-overseasproblem-still-too-expensive-and-still-not-enough-content/
Wang, U. (2014). How the Netflix Model Impacts the Environment, Economy and Society. The
Guardian. Retrieved from https://www.theguardian.com/sustainable-business/2014/feb/06/howthe-netflix-model-impacts-the-environment-economy-and-society
Ware, N. (2014). On-Demand Culture: Digital Delivery and the Future of Movies. The Journal
of American Culture, 37(2), 238-239. Retrieved
from http://search.proquest.com.contentproxy.phoenix.edu/docview/1560769223/53AE63DC2E
F24C7BPQ/1?accountid=35812
Perceptual Map for [Product]
Positioning for Netflix Video Streaming
Andrea Markiewicz
MKT/421
December 19, 2016
Susan Tomaski
1
Perceptual Map for [Product]
Netflix Introduction Summary
2
• About Netflix
• Video Consumers
• Strategy to Compete
• E-Commerce of Netflix
• Presentation Layout
© www.techforanyone.com, 2013
Perceptual Map for [Product]
Analysis & Recommendations
• Perceptual Position
• Netflix Positioning
• Netflix Competitive Analysis
3
Perceptual Map for [Product]
Analysis & Recommendations Cont’d
4
• Netflix SWOT Analysis
• Netflix Perceptual Mapping
© www.globedia.com, 2012
Perceptual Map for [Product]
Netflix Perceptual Mapping Cont’d
• Perceptual Mapping Process
• Variables Used From Market Research
5
Perceptual Map for [Product]
Video Stream Attributes
Company
Price Per Month
Content Rating
Netflix
$7.99
9
Amazon Instant Video
$8.99
8
Hulu
$7.99
7
Showtime
$10.99
6
HBO Now
$14.99
5
Starz
$8.99
4
CBS All Access
$5.99
3
© Steele & Albanesius 2016
6
Perceptual Map for [Product]
Perceptual Map For Video Stream Services
© Steele & Albanesius, 2016
7
Perceptual Map for [Product]
Netflix Analysis
• Placement of Competitors
• Netflix Recommendation
• Netflix Positioning in the Market
8
Perceptual Map for [Product]
Conclusion
9
• Netflix Services
• Reasonable Prices
• Final Thought
© www.helpline-numbers.co.uk, 2014
Perceptual Map for [Product]
References
•
10
Auletta, K. (2014). Outside the Box: Netflix and the Future of Television. The New Yorker. Retrieved from
http://www.newyorker.com/magazine/2014/02/03/outside-the-box-2No
•
Clancy, M. (2016). Netflix Moves All Global Traffic to Open Connect CDN. Rapid TV News. Retrieved from
http://www.rapidtvnews.com/2016031942170/netflix-moves-all-global-traffic-to-open-connect-cdn.html
•
Dawar, N., & Bagga, C. K. (2015). A Better Way to Map Brand Strategy. Harvard Business Review, 93(6), 90-97. Retrieved from
https://hbr.org/2015/06/a-better-way-to-map-brand-strategy
•
Dorfman, A. (2016). 5 Ways Netflix is Changing Telecom Networks. Telco Systems. Retrieved from
http://www.telco.com/blog/5-ways-netflix-changing-telecom-networks/
•
Is Piracy A Serious Threat to Netflix? (2015). Forbes. Retrieved from
http://www.forbes.com/sites/greatspeculations/2015/03/17/is-piracy-a-serious-threat-to-netflix/
•
Kearns, B. (2015). The Impacts of I.C.T. on the Entertainment Industry. Prezi Inc. Retrieved from
https://prezi.com/wdr5_aqd8u8w/the-impacts-of-ict-on-the-entertainment-industry/
•
Kerin, Roger A., Hartley, Steven W., & Rudelius, W. (2015). Marketing, 12th ed. McGraw-Hill Education. New York: NY. Retrieved
from the University of Phoenix eBook Collection Database.
•
Nielsen, J. (2014). Perceptual Maps: A Step By Step Guide To Analyzing Value, Competition and Opportunities. The Innovative
Manager. Retrieved from http://www.theinnovativemanager.com/perceptual-map/
•
Nocera, J. (2016). Can Netflix Survive In The New World It Created? The New York Times. Retrieved from
•
Owens, J.C. (2016). Netflix Price Increase Does Damage, But Media and Subscribers Blamed. Market Watch. Retrieved from
http://www.marketwatch.com/story/netflix-price-increases-causing-subscribers-to-sign-off-2016-07-18
•
See What’s Next. (n.d.). Netflix. Retrieved from https://www.netflix.com/
•
Steele, C. & Albanesius, C. (2016). Which Video Streaming Service Is Best for You? PC Magazine. Retrieved from
http://www.pcmag.com/article2/0,2817,2489103,00.asp
1
Strategy and Positioning Analysis Part 1
Team B
(Andrea Markiewicz, Lance Hawkins, Andres Rodriguez & Shelbey Burgen)
MKT/421
December 19, 2016
Susan Tomaski
2
Strategy and Positioning Analysis Part 1
Our team, in participation with Nestle, has created a new water purification product. Our
product will come in a small dropper bottle. With the history of Nestle, the supply chain
resources, and the existing market, we believe that we have developed not just a profitable and
fruitful product, but a life changing product.
Nestle Background, Industry, and Product
Nestle operates in the food processing industry, and their food company is considered the
largest around the world. The company was officially created in 1905 when Henri Nestle merged
his products with those of the Anglo-Swiss Milk Company. Henris first product was infant food
intended for babies in consumption who could not be breastfed to get a handle on high death
rates (The Nestle Company History, 2016). The business expanded with the merger to include
more than just condensed milk and baby food. The company was working on creating a milk
chocolate product but was having a difficult time in developing a milder version of chocolate that
would be edible to consume. With the help of Henri Nestle, they combated the issue and create a
milk chocolate manufacturing process that gets used still today. Unfortunately, the company was
affected financially by the second world war until their creation of Nescafe (The Nestle
Company History, 2016). The product was loved by soldiers in the military and helped Nestle
bounce back from their troubles in finance. Today Nestle has around 2,000 brands that people
rely on for everyday use including Kit-Kat chocolate bars, Coffee-Mate, bottled water and
Carnation (Brands, 2016).
3
Nestlé’s knowledge and background of bottled water products made it the perfect
company to launch our new product. The product is water purification drops that can be used
anywhere and by anyone. They contain chlorine dioxide that is known to be both essential to
destroying pathogens and purifying water, plus safe for consumption. These drops have many
different uses including making hiking and camping trips easier, improving the quality and taste
of tap water, and helping people survive in emergency situations. No matter how cloudy or
murky the water is, the drops will enhance the appearance and taste of the water. Chlorine
Dioxide, the initial breakthrough of this product, has been used safely at water treatment plants
for several years (Rittmann, 1990). Everyone wants clean drinking water, and the creation of
these drops can help provide that. They can also be beneficial to underdeveloped countries
around the globe by providing clean drinking water to people that do not have access to it any
other way. The drops will get manufactured in an easy, small carry-on bottle that can get taken
anywhere. If there happens to be an emergency when someone is camping and they run out of
water, these drops can make an impact on life and death.
Description of Product/Service
Our team has developed a single serve water purification product coming in a small
dropper and contains a mixture of safe purifying water and chlorine dioxide in a small easy-togrip bottle that is convenient for any kinds of traveling.
Nestle SWOT Analysis
Nestle S.A. is a holding company that is based out of Switzerland and specializes in the
manufacture of beverage and food products marketed and sold in more than 78 countries around
4
the world (“Nestle S.A.”, 2006). Nestle reported sales of $88 billion for the 2015 annual report
(Letter to Our Shareholders, 2016). The company also recorded a market capitalization as of
December 12, 2016, of $214 billion (Nestle Market Cap, 2016). Since the business has their
location in Switzerland, they are not required to report their enterprise value as needed in the
United States. With focusing on the water segment specifically within the Nestle products
(2015), “4.2\% organic growth and 2.2\% real internal growth…Trading operating profit margin of
15.1\%, up 10 basis points in constant currencies…Strong operating cash flow at CHF 14.3
billion” (“Full-Year 2015”, 2016, para. 1). Nestle Waters has a strong presence in the world and
has delivered substantial growth in developed and emerging markets.
Strengths (Internal)
Nestles’ brands are virtually well known
around the globe and are used by millions of
customers.
Multiple distribution channels around the
world.
They possess healthy development and
research capabilities that experience
continuous growth.
Nestle establishing significant relationships
with retailers and other large marketed brands
such as General Mills and Coca-Cola.
Having multiple brands across various
segments assuring the ability to recover from
economic downturns in a market segment.
Opportunities (External)
Increased need for nutrition and health
products by consumers creates opportunities
for products such as mineral waters, water,
water purification products and energy drinks.
Current infrastructure breakdown in the U.S.
creates the need for bottled water for safety
and health reasons.
Nestle is currently working with companies
such as Colgate-Palmolive and Coca-Cola to
develop new modern products for the market.
Increased mobility and growing middle class in
countries such as India and China create the
need for sodas, snacks, and bottled water on
the go.
Working long hours and modern lifestyles
create a demand for the convenience of quick
prepackaged foods.
Weaknesses (Internal)
Large retailers starting to sell their house
brands. In turn, causes brand name products
to reduce prices to compete.
In recent years, Nestle reporting recalls on
several products due to supplies of poor
quality and contamination.
Older brands appear outdated and unwanted
leaving customers to purchase other products
that fit into their modern lifestyle.
Changes in consumer behaviors can make the
company vulnerable as majority of their sales
depend on some well-recognized brands.
Threats (External)
Healthier lifestyles are lowering the demand
for high-calorie sweets and products
containing other additives and preservatives.
Nestle has inadvertently provided
contaminated products to the market making
quality assurances a priority. This problem has
resulted in a loss of sales and revenue and
tarnished their reputation with customers.
Supermarket chains and large retailers are
developing private label products to reduce
cost and increase profit, thus causing reduced
prices on brand name products to compete
and lower sales.
Healthier grocery chains such as Trader Joes
and Whole Foods are becoming increasingly
popular. These chains will not allow products
that do not meet their strict specifications such
as Nestle products.
5
Despite the threat of health food grocery stores and chains that are creating their name
brands, Nestle maintains some of the worlds most recognized commercial brands. Marketing
healthier products such as water purification additives and mineral waters may create a
significant demand in the market for developing countries and those such as the United States
experiencing the effects of old infrastructure (Purified Water, n.d.).
.
Nestle Competitive Analysis
When it comes to the U.S. water distribution market, Nestle Pure Life has two major
competitors, Dasani and Aquafina. There are many other water bottling companies, but they have
smaller regional markets that do not stretch across the continent quite like Dasani or Aquafina.
Both competitors get backed by major food corporations where Dasani gets distributed through
Coca-Cola and Aquafina is bottled by the Pepsi company.
Dasani has a unique taste that can get attributed to their purification process. Dasani uses
reverse osmosis, a process removing certain large particles and ions, from any impurities in the
local water supply and gets more of an enhanced blend of minerals for a cleaner crisp taste (Kent
& Farahbakhsh, 2011). The Dasani corporation has taken a major stance with the importance of
recycling. The half liter bottle is 100\% recyclable and can be twisted down to a much smaller
size to fit in the recycle bin at your home. These bottles once recycled are used to create new
bottles, t-shirts, shoes, and backpacks. Since Dasani is part of the Coca-Cola Company, it
supports the Give It Back initiative that reclaims bottles put into the market. Dasani drops were
created to enhance the taste of water with natural fruit flavors. There are no significant nutritional
6
specifications once you add the Dasani drops, which means its strictly for taste not adding
nutritional value (Dasani Water, n.d.).
Aquafinas process of water purification is like Dasanis where they use reverse osmosis,
but they take it a step further by adding filtration from charcoal. Their water purification process
gets called HydRo-7 because there are seven stages to extract minerals or chemicals such as
chlorides, salts and alternative matters affecting the quality of taste in the water. They currently
manufacture three naturally flavored drinks of water sold by Aquafina; grape, mixed berry and
raspberry (Aquafina For Happy Bodies, 2016).
Nestle owns the rights to many subsidiary water companies’ such as Perrier, S.
Pellegrino, and Poland Spring. Each of these companies follows different bottling and
purification processes. Nestle Pure Life is their own brand which enhances purified water with
minerals. They have four flavored drinks of water that have dominated the market; strawberry
dragonfruit, mango peach pineapple, key lime, and tangerine. Nestle states that their water brands
are tested so many times per day before shipments (Quality of Water, n.d.).
Nestle’s Target Market Segments
Per authors Kerin, Hartley, and Rudelius, “the target-market-one or more specific groups
of potential consumers toward which and organization directs its marketing program” (Kerin,
Hartley, and Rudelius, 2015, P.10). Since our product that the team has come up with is a
necessity in making sure every person in the world has access to clean drinking water, we have
narrowed our target market down to three primary markets, the Red Cross and other
7
humanitarian organizations that respond to disasters. The first responders and the military who
may have interest in it for their own organizations and for providing it to individuals and local
communities to where they are helping. And on a smaller scale, our last target market would be
to the outdoor and survivalist consumer, those who may engage in outdoor activities or who
would like to have the security of knowing they will always have a clean water source.
Geographically, our product could get used anywhere in the world. In developing
countries, there is always a need for fresh drinking water. For water shortages, it would be
important to understand that a global water crisis can be a human problem rather than just
isolated inconveniences geographically. It is more about economic resources than just a real lack
of water. This reason is why a segment of our target market is to humanitarian organizations like
the Red Cross since they would have the abilities and the means to deliver and obtain our product
to many areas of the world where it is needed most.
In choosing our market segments with this product and considering the relationships
Nestle already has with some of our target markets, it helps to further understand the
psychographics and behavioral factors of our target market. Nestle has had a global relationship
with the International Federation of the Red Cross (IFRC) and the Red Crescent Groups. What
makes them want to use our products so far has been out of necessity to get clean drinking water
to those who need it most (Nestle and Red Cross Red Crescent Join Forces on Water, 2006).
We do not feel their motivation or need to buy has changed. These organizations are motivated to
buy out of the need, which no one anticipates will go away. The demographics of our target
8
markets would be those who make the purchasing decisions for governments, outdoor stores, and
humanitarian organizations.
Nestle Positioning Statement
Product and Services
Research shows companies like Nestle has managed to establish other competitors along
the way by trying to outdo them. Their services and products are distributed mainly to consumers
in lower income nations across the globe. Companies like Nestle has been a company that strives
on making not only just chocolate but pet food, baby food, specialty drinks and dairy products as
well. Throughout the years, Nestle has managed to create variations of different drinks such as
Nesquik, Nestea, Pure Life Water, Ovaltine and Skinny Cow (Brands, 2016). With nutritional
value added to Nestle water products, it adds to the pleasure of taste and consumption for
consumers.
Target Market
For an organization to know who their relevant target market to be, it is important to
know who they are. Not only do these drinks help sell their products, but also encourage
customers to be health conscious. When positioning a market, Nestle must make the decision of
who their target market is. Nestle water drinks get designed for everyone to enjoy. Nestle target
markets are consumers that range from men and women, pets and babies. This type of market is
where Nestle mostly makes its significant portion of their profits. Nestle purification drops are
full of essential minerals such as calcium and magnesium. There are more and more
organizations who are helping to build recognition and feel they “have a responsibility to help
9
build awareness of how people can exercise control what they eat and drink-to ensure that they
enjoy a balanced diet, (Nestle Consumer Communication Principles, 2011, P.4, Para.1).
Target Market Needs
Nestle solves the target markets needs by creating products that get priced affordably.
Nestle provides safety and quality on its product more than any other goods. Nestles targeted
customers are those who are not health conscious. They strive on informing people on health and
wellness and nutrition which includes a moderation in food consumption, regular exercise and a
balanced diet (Nestle Consumer Communication Principles, 2011). To know the target market
needs, Nestles way of capturing their customers attention is by creating advertisements that are
direct and more efficient.
Difference in Competition
The difference between Nestle water drinks and other competitors such as Dasani and
Aquafina is that Nestle continues to be the largest beverage and food manufacture. Unlike their
competitors, in undeveloped and developed countries they put their attention towards a healthy
lifestyle. Not only does the company provide products that consumers will enjoy all the time, but
they also show diversity in the creation of their products to reach a broader audience. Nestle has
managed to stay above the fray among their competitors by staying alert and developing a
relationship with their customers. Long as Nestle continues to strategize their products, they will
be in a better position among their clients minds than others.
10
Conclusion
Overall, Nestle has tremendous opportunity to spearhead the water purification drops
since there is a great need during droughts, infrastructure failures, and disasters. They are a long
standing and stable company with an excellent reputation for success and growth. Their water
segment has thrived for many years, and with their development and research capabilities, they
can nurture this idea and expand to one-day service municipalities around the world. The need
for fresh drinking water will never cease, but the ability to obtain it will be threatened more by
the decade.
11
References
Annual Report 2015. Letter to Our Shareholders. (2016). Nestle. Retrieved from
http://www.nestle.com/asset-library/documents/investors/others/letter-to-shareholders-en.pdf
Aquafina For Happy Bodies. (2016). Aquafina. Retrieved from http://www.aquafina.com/enUS/our-products.html
Brands. (2016). Nestle. Retrieved from http://www.nestle.com/brands
Dasani Water. (n.d.). Dasani. Retrieved from http://www.dasani.com/water/index.html#about
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