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Nike, Inc. Marketing Plan

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Marketing entails processes that focus on delivering value and benefits to customers, not just selling goods, services and/or ideas. This uses distribution, communication and pricing strategies to give customers and stakeholders with the goods, services, ideas, values and benefits they desire when and where they want them. There are some market management philosophies. They are production orientation, sales orientation, market orientation and societal marketing orientation. Production orientation is the philosophy that gives what the firm want to give. They focus on internal capabilities of the organization rather than on the desires and need for the marketplace. It means the management assesses its resources and ask questions about their capabilities such as “What can we do best?” and “What can our engineer design?”. Next is sales orientation. Sales orientation is based on the ideas that people will buy more goods and services if aggressive sale techniques are used and that high sales results in high profits. In the other hand, market orientation is based on the understanding that a sale does not depend on aggressive sales force but rather customer’s decision to purchase a product. Besides that, market management philosophies also consists societal marketing orientation. Societal marketing orientation is based on satisfying the customer’s wants and needs and to meet organizational objectives and also preserve or enhance individuals’ and society’s long-term best interests.

Nestlé was found in 1886 by Henri Nestlé. It started off with initiatives to produce infant formula and grew into a multi-national cooperation worldwide. Nestlé has more than 250,000 employees and factories worldwide. Nestlé's commitment to provide quality products to Malaysians almost 100 years ago. Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company (Susu Cap Junjung) in Penang and later, move to Kuala Lumpur in 1939. Since 1962, Nestlé Malaysia is now manufactures its products in 7 factories and operates from its head office in Mutiara Damansara. The Company was publicly listed on the KLSE now known as Bursa Malaysia Berhad on 13 December, 1989.
Next, Nestle’s vision is to be the leader in Nutrition, Health and Wellness Company by delivering world-class products of the highest consistent quality, reliability and convenience based on business excellence principles throughout the operation. Nestlé’s first aim is to enhance the quality of consumer’s lives by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. Nestle express this by their corporate proposition 'Good Food, Good Life'. Nestlé also has built business on the conviction that to has long-term success for their shareholders, not only have to comply with all applicable legal requirements and ensure that all activities are sustainable, but additionally they have to create significant value for society. At Nestlé they call this Creating Shared Value. Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has ‘Milo’, ‘Nescafe’, ‘Maggi’, and ‘KitKat’ have become trusted household names and enjoyed for generations.

Nestlé - Societal Marketing Orientation
Nestlé is an organization that fulfills the philosophy, societal market orientation. This is because Nestlé always concern about the society wants and needs. The company have released and make certain events and programs for the society. At Nestlé, they define sustainable development as the process of improving the world’s access to better quality food, while contributing to long-term social and economic development, and preserving the environment for future generations. As the world’s leading food company and with over 100 years of doing business in Malaysia, Nestlé has contributed towards the well-being of Malaysians not only through its high quality products, but has also played a role in social development and environment conservation.
They have released Nestlé Healthy Kids, a program to promote healthy lifestyles. This program is an initiative to raise awareness of nutrition, health and wellness and to promote physical activity among school-age children around the world. At Nestlé Malaysia, the program consists of two modules, one that is targeted to primary school children, and the other is to secondary school students. It is resulted in the development of educational modules, which presented to the Ministry of Education, with the hope that they be utilised by all schools in Malaysia. Next, the execution of a series of Teachers’ Seminars was held in 2013 involving teachers of three participating schools. This seminars provided these teachers with updates on the current nutritional problems among school children and the importance of healthy eating and lifestyle in preventing non-communicable diseases among the young. In addition, Nestlé Malaysia teamed up with the Malaysia Athletics Federation to train selected lecturers and coaches through the IAAF Kids’ Athletics Course in support of a five year global partnership between Nestlé and the International Association of Athletics Federations (IAAF). It is aimed at developing and strengthening the physical activity component in the Nestlé Healthy Kids Program, the course provided the lecturers and coaches with an insight to educating children about sports including information on healthy eating and active lifestyles.
Next, Nestlé launched an intervention program called ‘Program Cara Hidup Sihat’ in December 2012, targeted at lower secondary school students from 100 selected day-boarding schools nationwide. This program is part of the Nestlé Healthy Kids Global Programme. Implemented in collaboration ‘Program Cara Hidup Sihat’ with the Ministry of Education and Universiti Putra Malaysia (UPM), the three years program, 2012 – 2014, is aimed at promoting and enhancing the knowledge and practice of healthy eating and active lifestyles amongst students, their teachers and wardens, as well as the food operators responsible for preparing and serving them meals on a daily basis. The main objectives of the intervention program are to determine the nutritional status of the students, including Body Mass Index (BMI), dietary intake and physical activity levels, as well as knowledge, attitude and practice of healthy lifestyles among the target audience before and after the intervention program.
In line with the Nestlé position as “a trusted food, nutrition and wellness company”, they are focused on nourishing Malaysians to achieve overall wellness and deliver our promise to bring “Good Food, Good Life” to all members of society. The core of their business is based on the Nestlé Corporate Business Principles, which set out clear guidelines to every Nestlé employee on how to conduct business in an ethical and transparent manner. Just as their founder Henri Nestlé dedicated his life to the community by reducing the infant mortality rate through the development of his life-saving nourishing formula nearly 140 years ago, they continue to earn the trust and serve the needs of their consumers, employees, shareholders and society as a whole.
Nestlé - Marketing Issues
Just like any other company, Nestlé also faces marketing issues or problems. One of the issues is some of their customers have been boycotting their products since they are one of Israel’s company. There’s a war between Israel and Palestine and some of the Malaysians boycott their product due to this war. Nestlé is the world’s largest food company, it owns more than 50% share of leading Israeli food manufacturer Osem, an investment worth over $850 million. In June 2002, Nestlé opened its Research & Development Centre in Sderot, Israel. Since then, it has steadily increased its investment in Israel. Nestlé also owns Nespresso Israel Ltd in Tel Aviv which supplies coffee brewing equipment. In 2010 Nestlé acquired a 51% stake in Israeli baby food company Materna Laboratories for $72 million.
Nestlé has 9 factories in Israel, which after China, 18 and Russia, 11, is the highest number in any country in Asia. Next, in May 2011, Nestlé announced their plans to build another factory in Israel, an ice cream plant worth $40 million. Nestlé also owns 30% stake in L’Oréal, another company on the some of the customers’ boycott list. The Nestlé Research & Development centre in Sderot is considered particularly beneficial to Osem's growth as it gives Osem advantages in technology and increased export opportunities through Nestlé's distribution network. Nestlé's investment in Osem has meant that its products can reach a global market. Of the 23 global development centers Nestlé maintains globally, Osem is becoming a global training centre for Nestlé staff. It is producing a new breakfast cereal with a technology that is registered as a global patent.
This shows that they are cooperating with Israels. Some of the Malaysians do not want to spend anything for Israel’s products. Due to this boycott issue they have lost some of their customers and facing loss in their company.
Next is the issue that happened recently in Malaysia, Goods and Services Tax that start on the 1st April. Goods and Services Tax in Malaysia (GST) was scheduled to be implemented by the government during 2011 but the implementation was delayed until 1 April 2015. Its purpose is to replace the sales and service tax, which has been used in Malaysia for several decades. The government is seeking additional revenue to offset its budget deficit and reduce its dependence on revenue from Petronas, Malaysia's state-owned oil company. The 6% tax will replace a sales and service tax of between 5—10%
Contrary to some views, the GST does not increase the price of everything automatically by six per cent. The amount of price change in goods and services are depend on range of factors. For example, the GST will replace this country existing sales and services tax, it will not add up to the sales and services tax. The Malaysian government announced that they has signalled that it is focused on minimizing the GST impact by proposing a low standard rate of six per cent and the standard GST rate will not apply to all goods and services. More than 450 items will be zero rated such as basic food and some other goods and services, such as financial services, services provided by residential property developers, educational and health care organizations, the sale or rental of a predisential property, and public transport. Overall, this means that there will be some GST impact on the cost of these products including Nestlé. In the meantime, the accompanying list provides an early insight as to what to expect. As the government has described, GST is important in ensuring a strong and sustainable fiscal position that will support long term economic growth. Besides that, GST is also anticipated to expand the economy by three per cent. It may also bolster export growth by up to 0.5 per cent. This will be good for business and jobs. Of the 944 goods and services in the consumer price index basket of goods, the prices of 532 items, or 56 per cent, are expected to be reduced by up to 4.1 per cent.
Nestlé (Malaysia) Bhd will not determine the price of its products to end consumers in line with the Anti-Profiteering Act 2011 and the impending implementation of GST. Managing director of Nestlé, Alois Hofbauer said following the new tax regime, the savings made on its products would be passed on to its retail partners. This is because Nestlé did not sell its products directly to their consumers. He state that prices will depend on the product itself as some have a higher sales tax while others have a lower sales tax. At the end, the retailers of Nestlé are the ones who will set the prices with GST to consumers. Alois Hofbauer is confident the organization will be able to reduce the impact of GST on its products as the group have had experience with GST type implementation in other countries where Nestlé has presence.

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