Management - Nestle's - FCMG - Assessment Answer

December 28, 2017
Author : Ashley Simons

Solution Code: 1AAII


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1 . KitKat product is a biscuit coated with chocolate, which targets the children and women market segment. Additionally, the product’s target segment includes the people who use chocolate. Additionally, Cheerios is a new product in the market. Cheerios is a cereal delicacy, which is consumed for breakfast. The delicacy of the new product will enhance its penetration, especially among the men market segment. The product is usually calorie-rich hence it is ideal for men. OPTIFAST is a service whose target market segment is obese and overweight people. The service is a weight loss, diet program, which is part of a healthy living package. The Nestle Nan toddler product is also a nutrient-rich product recommended for children above the age of one. The product is likely to penetrate the market because it is highly demanded by market segment target.

2 . According to Kakwani (2013), there is a high number of high-income earners and low number of income earners in the Northern Territory of New Zealand. This indicates a high disparity in the income distribution in the region. The disparity is a manifestation of social-economic status aspect in the society. The income distribution is subject to other factors including age and household composition. Johnson (2005), further asserts that a high-income earner earns as much as $2,500 per week. On the other hand, a low income earner earns as less as $600 per week. The fact that both groups operate under similar economic conditions implies that the low-income earners’ living standards are low compared to the high-income earners. There should be equitable distribution of wealth to enhance improvement of the living standards of the low income earners and boost the economy of the region.

Diagram: Household income distribution in the Northern Territory Vs. Australia

3. The FMCG companies have not adopted mass marketing but have applied segmented approaches. P&G has established five segments including Fabric Care and Home care, Baby, feminine and Family care, beauty, grooming and Healthcare market segments (Lorange & Rembiszewski, 2014). Unilever also adopts segmentation through the fielding of its Dove segments and scent segmentation, which enhance sound branding decisions. GSK Company also embraces segmentation because it employs a needs-based segmentation in all its operations. P&G is the most successful in the use of segmented approach followed by Unilever while GSK least benefits from the segmentation strategy. P&G and Unilever companies ought to expand their segments. GSK needs to increase the parameters of segmentation to appeal to many customers.

4. World-wide demographic trends are affecting opportunities for international marketing. There is a flow of suppler traffic towards a region perceived to be in high demand for a certain product. Such a scenario indicates that certain regions are saturated of certain products. The aging baby boomers are most benefiting the financial advisory, tax planning, and business appraising agencies. According to Tuljapurkar, Ogawa & Gauthier (2010), the tourism, cosmetic, healthcare and heritage industries will highly benefit from the ageing baby-boomers. The aging people direly need the services of these agencies for sound decision making on their capital and leisure.

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