Marketing Essay On Nonprofit Org. Management.

Marketing of WWF

Discuss about the Marketing of Nonprofit Organisations Management.

The aim of the assignment is to study the marketing of organisational groups of various types like non profit making organisation, FMCG companies and baby boomers. The first section delves into a non profit organisation and its marketing activities. The paper takes the WWF as an example to study the marketing of non profit organisation. This is followed by a study of relationship creating by Billabong. The second section delves into new product launches by Nestle and their success factors. The successive section studies and compares three FMCG companies namely P&G, Unilever and Nestle. The final section studies the opportunities of international marketing and the professions suiting baby boomers of North America.

The Worldwide Fund for Nature (WWF) headquartered in Switzerland is a non-profit making organisation that implements marketing management concepts. The WWF partners with several international corporate organisations as well as individuals all over the world.

The WWF exchanges gifts and several other benefits with the business organisations and the individuals. The business organisations give donations to the Worldwide Fund for Nature and obtain benefits like corporate social responsibility (CSR) enhancement in exchange. Corporate social responsibilities ensure that the companies conduct business in more sustainable ways and minimise the waste disposal and fuel consumption. This leads to conservation of natural resources and reduction of pollution which encourages social wellbeing. The WWF provides the corporate organisations in return with technical support to source raw materials like paper from sustainable sources. Thus the organisations can attend sustainability which boosts their corporate image. The individuals provide the WWF with donations and get items like recyclable bags and bottles in exchange(www.worldwildlife.org, 2017).

The WWF applies marketing concept and collaborate with both the body corporate and individuals. This can be told from the fact that the WWF engages with corporate organisations to license its logos, promote the causes, gain sponsorships   and gifts for their employees(Van Wijk et al, 2015).

Billabong is an Australian adventure sports accessories making company offering the consumers information on skating industries. It is an Australian company making skateboards, skating costumes and other adventure sports accessories for men and women. The company provides very little information about its products on its official website. It does not help Billabong to build relationships with the target customers. This is because lack of information about the products inhibits the customers from having complete perception about their products which prevents them from making purchase decisions to buy Billabong products(eu.billabong.com, 2017).

Billabong's Relationship Building Strategy

The latest news of Nestle as on August 19, 2017 contains information about Karen Hasan winning the Nestle and Salzburg Festival Young Conductors Award.  The award is a part of Nestlé’s’ social initiative to promote culture which is a part of its corporate social responsibilities. A review of the article shows that the multinational food manufacturer and marketer is concerned about promoting social welfare and encourages cultural development among its consumer groups(nestle.com.au, 2017).

The new product launch by Nestle consists of KitKat bar of chocolate in a new packaging which has a fresh look. The product is available in two new variants, ‘Kit Kat Travel Break Sharing pack’ and ‘KitKat mini chunky snacking bag’. The company has also released ‘Nestle Swiss’, which is a chocolate dessert made with dark chocolate. The product is available in variants like ‘chocolate hazelnuts’ available in 300 gram packs. The other two available variants are ‘almond and honey’ as well as ‘almond and nougatine’(Zhao, Cavusgil & Cavusgil, 2014).

The target segment customers aimed by KitKat products would be people who love chocolate items. The Swiss dark chocolate is a premium product and would costly. The target market for Swiss would be the rich upper class people who enjoy premium bars of chocolate from multinational diary companies. The KitKat travel bags are lifestyle products target the people to travel to places. Similarly, the KitKat snacking packs target customers who enjoy having chocolate for snacks(Kitkat., 2017).

The new product launches by Nestle would be successful in all its major markets around the world and would contribute to deeper market competitiveness. Nestle would be successful in gaining higher position in the market because the accurate positioning of its products in the market and appropriate segmentation. Nestle products aim the consumer segments who prefer using superior dairy products and can afford to buy them. The customer segments Nestle targets are health conscious and are ready to spend on high quality food items(Kotabe & Kothari, 2016). Nestle positions itself as the world’s largest manufacturer and marketer of high quality food products which are consumed by people all over the world. Thus the appropriate segmentation, positioning and targeting of the middle and upper class society would lead to the success of the new products by Nestle in the market(Liu et al., 2014).

A company interested in estimating income distribution in the Northern Territory of Australia can proceed in two ways, the qualitative and quantitative way. It can conduct interview of a large number of people and then analyse the responses gained statistically. This would help him to gain quantitative information about the income of the people in Northern Territory in Australia. The person can consult the official website of the Statistical Bureau of Australia to gain information on income of the people which would provide him with qualitative data(Abs.gov.au., 2017).

Nestle's Product Launches

Unilever, Procter & Gamble and Nestle are among the top FMCG companies in the world whose official websites give detailed information about their products. There are evidences in their websites that these companies segment their markets according to the products they offer and the product prices. For example, Lux soap manufactured by Unilever targets the middle and the lower income segment of the society and is low priced. Dove and Lux International are costlier than Lux and target the middle and the upper middle income group(Darmani et al, 2016). The products of Nestle are high priced which indicate their high quality. The target customer segment of Nestle products are middle and upper class income people. It is evident that the multinational FMCG giants like Nestle, P&G and Unilever segment their markets on the basis of various factors like customer income, lifestyle, agewise and so on(Santos, Pache & Birkholz, 2015).

The three multinational giants Unilever, Procter & Gamble(P&G) and Nestle can be arranged in the order with Unilever on the top followed by Nestle and Procter & Gamble. Unilever manufactures both food and non food products unlike P&G and Nestle. The company manufactures products which can meet the requirements of more number of customers compared to the other two multinational companies. For example, Axe is the men’s grooming product owned b y Unilever(Kothari, Kotabe & Murphy, 2013). It is available in form of shampoos, soaps, shower gels, hair creams and shaving creams. The shaving cream is low priced and targeted towards especially young customers from lower and middle class. The shower gels and the shampoos are premium products which are targeted at the upper class market segment.

Unilever owns two the frozen dessert brand Kwality and Magnum. While Kwality has ice creams of both high and low price ranges, Magnum is the premium ice cream brand owned by Unilever. Kwality has targets both the low and the high income customer segment using prices as a differentiation factor. Magnum unlike Kwality, is the premium brand of ice cream which is targets the rich customer segments(unilever.com, 2017). The toughest competitor of Magnam is Connoisseur by Nestle while P&G has no answer to it. Again the company makes Clear shampoo whose toughest competitor is Head & Shoulders by P&G while Nestle has no answer to it(us.pg.com, 2017). Unilever has products which are not marketed by any of the two competing companies, P&G and Nestle. For example, the FMCG company owns the water purifier range under the name Pureit while the other companies do not manufacture any such product. This vast product line consisting of both food and non food consumer products have allowed Unilever segment its market most widely which gives it the top position.

Procter & Gamble, the largest FMCG company in the world has a product line smaller than Unilever hence loses it to the latter because it cannot segment the market as variedly as Unilever. The company owns the antidandruff brand H&S which has both low and high priced variants. However an analysis of the segmentation of the customer base of the company shows that it has succeeded in segmenting its base owing to its product line(Gupta & Pirsch, 2014).

Nestle has restricted its product line to food products and only most of its products are high priced. The company owns brands like Maggi which is the instant noodles product owned by the company. The company segments its customer base into adults, women and babies. The company manufactures and markets beverage products like Nescafe and Nestea. It is evident from this the company segments its market based on lifestyle , for example, Nescafe is meant for the customer segment who consume coffee or tea as a part of every diet. Its milk products are among the sought after milk products in the market and are extremely high priced. Here the target customer segment is the upper and the middle class who consume high quality milk products and are ready to spend to buy such products(Kardes, 2016).

A comparison between the three companies Unilever, P&G and Nestle shows that Unilever is present in both food segments like Nestle and non food segments like P&G. It is evident that Unilever gives both the companies tough competition owing to its strong product line. It serves maximum number of customer segments which places it on the top as far as segmentation is concerned. The American multinational FMCG company is able to segment its market into several types by offering a variety of products serving diverse needs like H&S anti dandruff shampoo, Old Spice shaving accessories and Febreze range of freshners. Thus it has earned the second position after Unilever. Nestle occupies the third position because its product line restricted to food products and its market segment is mostly restricted to upper class consumers.

The following recommendations can be made to the three FMCG giants based on the above discussions:

1. It can be recommended that Unilever should increase its dairy products which will allow it to serve to new customer segments who consume dairy products. This extension of product line will allow Unilever to compete with Nestle in the dairy market segment as well.
2. It can be recommended that Procter & Gamble should market food products like dark chocolate bars. This will allow it to cater to new consumer segments who prefer high quality dairy products.
3. It can be recommended that Nestle should venture into manufacturing and marketing consumer products like household items and body care products like soaps to serve new consumer bases in the market.
4. Nestle should lower the prices of its dairy products which will allow it to cater to the lower class consumer segments.

Worldwide demographic trends are affecting opportunities for international marketing in a large way.  This is because demographic trends like increase in income of the people in the emerging markets and globalisation have led to expansion of international market into the emerging markets. This has the following impacts:

Estimating Income Distribution in Northern Territories

The multinational companies have expanded into the emerging markets like Asia and South America which has led to the new marketing opportunities to sell products to the customers in these markets(Auerbach, Buerhaus & Staiger, 2014).

This marketing of products in the new markets have helped the FMCG companies to earn huge profits which enabled them to strengthen their marketing activities to gain deeper market penetration.

The industries which are benefit baby boomers are service industries like tax planners, property developers, healthcare, travel agents and aged care facilities.

Conclusion:

It can be summarised from the study that marketing is used by both profit making organisations like Unilever and non profit making organisations like the WWF. The companies need to expand their product lines to cater to more diverse market segments. The emergence of new markets in the east has strengthened international marketing and helped it to expand.

References:

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Marketing Partnerships | Partnership Categories | WWF. (2017). World Wildlife Fund. Retrieved 19 August 2017, from https://www.worldwildlife.org/partnership-categories/marketing-partnerships

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