2. Issue research & analysis
2a. Objectives
To find a strategic technique to win over prospective customers and retain current customers through school’s decision making units in order to increase overall sales revenues.
2b. Literature Research
Most of the data needed for research objectives are about Nestlé (Thai) ice-cream business unit, which are neither available in textbooks nor websites. Therefore, the data for primary research of this report will derive from an in-depth and recorded interview with Ms Thitikarn Suwansukhum, a trade marketing promotion executive of school channel in Nestlé (Thailand) company, ice-cream business unit. I will combine the interview with an analysis based on a theoretical method from CRM textbooks, as well as many academic journal articles related to Business-to-Business CRM and online website articles.
2c. Literature Review
i. The total revenue of Nestlé (Thai) ice-cream business unit in 2009 was 1,890 million baht. There are four sale channels of the ice-cream products. Sales volume in the school channel represented 480 million baht (49.68 Thai baht equal £1 Great Britain pound sterling as of 7 April 2010 quoted by Bank of Thailand), representing one fourth of the company’s total sales revenue in 2009. In the last five years, Nestlé school channel has expanded to around 5,000-7,000 schools. School channel penetration was hardest and toughest compared to other distribution methods. However, once the decision maker of a school trusts the brand, the loyalty is strong and sustained.
In Thailand, the entire ice-cream market is estimated to be worth a total of 5,400 million baht. The market share of Nestlé ice-cream is 36 percent, trailing behind Wall’s ice-cream which is distrib...
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...l data to look at length of relationship and share of customers. It is very important for Nestle to follows its every commitments to school DMUs. This commitment means forgoing the benefits of acting opportunistically and not look for bargains, discounts and better deals elsewhere, preferring instead the possible long-term benefits of doing business with the same supplier (Little & Marandi, 2003).
Relationship returns: The cost of execute RM to school DMUs as well as students must not exceed the profit. For that reason, a selection of customers to execute RM activities onto is essential. A consumer can be loyal to a product or a brand but not all customers are created equal. Only customers who are expected to deliver a profit should be retained (Stevens, 2005). Also, RM activities should increase customer lifetime value and generate longer customer life cycle.
Aaker, D. A., Kumar, V., & Day, G. S. (2007). Marketing research (9th ed.). Hoboken, NJ: John Wiley & Sons.
Kotler, Philip, and Kevin Lane Keller. Marketing Management 12e. Upper Saddle River: Pearson Prentice Hall, 2006.
Philip Kotler, Kevin Lane Keller. (2009) Marketing Management (13th Edition). Upper Saddle River, NJ : Pearson Education, Inc. pp.510-513
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
As a Business Administration major I have learned there are several different components that make up a successful business, and it is important that everyone work together to achieve a common goal. The ultimate goal of most companies is to create a product or service that will gain a place in the market and stay there. Customer relationships are the most important factor for companies to consider when aiming toward success. What can companies do to improve customer relationships? Improving customer loyalty means the customer keeps coming back even if they are not always completely satisfied with the product. When I think about what brings customers back, and the most important part of a company’s success, it is undeniably customer relationship management. With it being easier for customers to shop from their home or office, and the growing competition making it easier to switch, the relationships become increasingly more important every day. Focusing more effort on customer retention and loyalty in customer relationships would improve their chances of surviving in the market.
Nestlé set up milk accumulation focuses that would not just guarantee brief gathering and pay reasonable costs, additionally ingrain amongst the group, a trust in the dairy business. Advancement included the formation of success on an on-going and maintainable premise that has brought about not quite recently the change of Moga into a prosperous and energetic
Kotler, P., Brown, L., Adam, S., and Armstrong, G. (2004). Marketing (6th ed .). Pearson Education Australia.
In this report, there will be an overview, strategic direction and organizational structure of Nestlé S.A. This prompted investor groups who are interested to invest in this company and to decide whether they should invest their funds with Nestlé S.A. The purpose of this report is an opportunity to gain knowledge of how this company evolved and how they operate their business. This will not provide any information on the company situation, marketing strategy, financial performance, and company outlook.
This report consist the importance of marketing metrics and some brief definition on the return on marketing investment (ROMI) of Nestle Company.
Throughout the existence, the company tries to reach customer’s best satisfaction by constant improvement of products, as well as by innovating new ones. In 2013, the company introduced new flavors of chocolate, different packaging and modifications of shapes of a product. (Nestlé International Travel Retail S...
...his issue, the company can set up different promotion strategies in store that will help generate sales for the products. Lastly, there may be issues with the price. If Kellogg’s enters the Indonesian market with a lower product cost than its competitors, it could potentially initiate a price war. Before entering into a price war, Kellogg’s should evaluate its sunk cost and financial stability as these wars can drive competitors out of the market and cause bankruptcy. Kellogg’s should be wary of creating or participating in a price war as it has unfavorable consequences and effects. Overall, Kellogg’s should focus on gaining a market share with the company’s promotions, and global commitment strategy as these tactics will ultimately produce sales. In addition, these sales can be utilized to develop new strategies for financial stability and longevity in the future.
The purpose of this paper is to explain the four elements of marketing mix which are: product, place, price, and promotion. I will also implement each element with the company’s marketing strategies. The organization which I will be using is Sandy’s Day Care. In my organization I had child care services for ages from new born to eleven years old. Hours of operation ranged from 5:30 am to 6:00 pm. Monday thou Friday and Saturday’s only upon request. I will explain the marketing strategies that were applied in my home business which succeeded for over five years, with an income of six thousand dollars a month.
Pine, B.J., Peppers, D. & Rogers, M. (1995). Do you want to keep your customers?. Harvard Bussiness Review. March-April. pp. 103-104.
It is focused on competitiveness, calculated risk-taking and an unswerving determination to deliver their goals, while creating value for society as a whole. Nestle Company wants to be a leader in innovation and renovation, whether of products, systems or processes. They need to have the most efficient supply chain, from farm to fork tonsure that they have the best raw materials, the bet processes and the freshest products on their customer’s shelves. Nestlé Continuous Excellence is their approach to operational efficiency, with its objectives of eliminating waste, increasing efficiency and effectiveness, and improving quality in all operations. To make the most innovative products in the most efficient way, they also need to ensure that their products are available sustainably wherever, whenever and however consumers want to buy them. Of course, they need to communicate with their consumers in a dynamic way, both to keep them abreast of all that is new and exciting, but also to learn from them, so that Nestlé can bring their experiences to bear on their upcoming innovation and renovation (Nestlé.com, 2012)