Nestle Crunch Marketing Plan Essay

Executive SummaryThis marketing plan was created for Nestle comminute to position itself in the next year to deliver at least $13 million in profit without increasing the budget by over $2 million. An analysis of the deep brown confectionery market forgeting be analyzed to develop marketing strategies to implement to satisfy these objectives. situation analysesMarket SizeCrunch is produced by the largest food and beverage company, which is Nestle. Retail gross revenue of chocolate confectionery comprised of $33.8 billion in retail gross sales, which $16.9 billion were in chocolate sales.Market TrendsThe growth rate of chocolate confectionery lagged behind the cereal, gum, and lollipop confectionery and founding very little projected growth through 2014.Unit Volume35% of the market sh ar in sales were the fixity sized Chocolates, 30% were for the miniatures, 25% were of advancemental items (promotes seasonal sales), and then there were the king sizes which made up of only 10 % of the market sales.PriceNestls strategy was to list the lowest wrong on their bars at $0.79 each for Butterfinger and Crunch, patch its close competitor, Hersheys priced its Bars and Reeses cups at $0.89. The new(prenominal) competitor, Mars, priced theirs even higher at $0.99 each. Price increase would result in lost in sales.Product Services OfferedNestle Crunch offered consumers a chocolate confectionery that served as an indulgent treat in contrast to satisfying hunger.SWOT AnalysisIn SWOT, strengths and weaknesses are internal factors. In business, the strengths identified are what a business works to maintain, build, and leverage. Weaknesses that are identified should be removed, resolved, or remedied. Opportunities and threats are external factors. External factors are, in most part, out of our external locale of control. We can only either optimize it or deal with it. Opportunities should be prioritized and optimized. Identified threats must be acknowledged by a busin ess and/or develop counter measures for it, if any (SWOT Analysis, 2009).INTERNALStrengthsOffer the lowest prices among competitorsCrunch is regarded as an indulgence, a reward, or treatParticipates in all channels of distributionProduced by the worlds largest food and beverage company Nestle WeaknessesMarketing budget cannot increase more than $2M from the previous year (2009)Its positioned to target males and young adults who were not the largest chocolate consumersEXTERNALOpportunitiesLarge market in the MidwestFemales and children consumed most of the chocolate confectioneryPsychographic segments that are potential target marketsPractical value seekersConfection kind moderatorsTV has the greatest reachThreatsChocolate sales lag behind sugar confectionery, cereal bar and gum Competitors Hershey and Mars in the U.S. market treatmarketing strategyPositioningWe want to position Crunch asNestle Crunch is for women and children who want to reward themselves to an indulgent chocola te treat, because Nestle Crunch is the only chocolate bar that tells you best that you deserve it. strategy developmentObjectiveThe mission is to deliver at least $13 million in profit without increasing the budget by more than $2 million. Targeted Consumer DemographicsTarget MarketCrunch satisfies a consumers need to satisfy an indulgent desire, and promotion is used to trigger these impulses. Therefore, promotion is vital to increasing sales. Specifically, to children and females (teenage females, adult females, and mothers) who mostly attribute chocolate as an indulgent desire according to theFigure downstairsIn addition, according to the research, women are 51% of the population and consume 6% more chocolate than men. Children and young adults under the age of 25 comprise 60% of the population. In terms of geography, the Midwest is 22% of the population and the region that sells the most chocolate confectionery.strategy developmentFinancial ProjectionsStrategy and ExecutionMinu s 1 fact of free standing insert (FSI) coupon good on one regular size Crunch bar Add I event of A regular bar bonus size (+25%) is offered during 2-week promotional period it was not offered in 2009 Minus 1 event of a 2-week keep display featuring regular size Crunch Distribution increases by 2.0 percentage pointsA Crunch price increase of +12.5% on all products would match Hersheys retail prices but would still be less than Mars prices no pricing action was taken in 2009The following table shows the impact on sales and profit when making changesin the marketing mix.According to the table, with the marketing mix selected we are able to achieve our objective of ensuring production contribution of at least $13 million, our profitability percentage change is at least over 15%, and budget does not increase by more than $2 million.Advertising and PromotionMedia MarketingThe media vehicles for publicizing that will be utilized are TV, print, and online. Since TV has the greatest reach , 70% is allocated in the budget for TV advertising and promotion 20% for online and 10% of the budget for print marketing. The total budget for these media marketing is a little below $12.9 millionWe have an estimated reach of 90% for the TV advertising and marketing and 10% and 20% for print and online respectively.The pie graph below illustrates the media mix selectionPricing strategyThe pricing strategy will be to increase the price of Crunch by 12.5%, which will match the Hersheys retail price, but will still be below the price of Mars. An increase in price does result in a decrease in sales, but after thorough examination of the P&L, it will show an increase in profitability to justify the drop in sales.Distribution strategyIncreasing the distribution showed to increase sales. Since a large percentage of sales were sold through other distribution channels besides mass merchandisers, supermarkets, and convenient stores, an increase in distribution to the other channels that inc lude medicine stores, warehouse club, and vending machines, justify a slight budget increase as shown in the Figure below.The following figure summarizes the marketing planPromotions, advertising, and specific events are concentrated on the special holidays that historically show increase sales in the chocolate confectionery market.Many of the events are also rivet mostly in the Midwest, because this region is shown to have the highest sales and consumption in the nation.The budget is kept below a $2 million increase while still accomplishing the goal of increasing profitability.Other MetricsThe following table shows 2008 and 2009 chocolate confectionery market size and market shares of Nestl Crunch and its competitors as surplus references.ReferencesAlan Chapman. SWOT Analysis. (2009, October 13). Retrieved October 16, 2009, from http//www.marketingteacher.com/Lessons/lesson_swot.htmU.S. CHOCOLATE CONFECTIONERY DYNAMIC MARKETING PLANNING. Retrieved on June 02, 2014 from https/ /brenau.instructure.com/courses/1209789/pages/course-documents?module_item_id=10683688