ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 2 Marketing Essentials

Submission date 20 August 2020 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Bui Bao Tram Student ID GBD191127

Class GBD0804B Assessor name Nguyen Phuong Dung

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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 Assignment Brief (RQF)
Student Name/ID Number: Bui Bao Tram/GBD191127

Unit Number and Title: Unit 2 Marketing Essentials

Academic Year:

Unit Assessor: Nguyen Phuong Dung (Miss)

Assignment Title: Assignment 2 – Marketing Mix

Issue Date:

Submission Date: 20 August 2020

Internal Verifier Name:

Date:

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Table of Contents
I. Introduction.............................................................................................................................................. 1
II. The extended marketing mix (7Ps) ............................................................................................................. 2
II.1 The 4Ps marketing mix: ...................................................................................................................... 2
II.2 The shift from the 4Ps to the 7Ps and marketing mix .......................................................................... 4
III. Case study of different organisations: .................................................................................................... 6
IV. Analyse and evaluate marketing mix tactics ........................................................................................... 9
V. Recomendation......................................................................................................................................... 9
VI. CONCLUSION ....................................................................................................................................... 10
VII. References .......................................................................................................................................... 11

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Table of Figures
Hình 1 Production of Nestlé .............................................................................................................................. 1
Hình 2 The extended marketing mix (7Ps) ......................................................................................................... 2
Hình 3 The 4P Marketing Mix ............................................................................................................................ 3

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I. Introduction
The report will clarify the definition of the marketing mix, the method of marketing planning and it will
include the points for the company to better implement the marketing planning process or the marketing
mix. On that basis, companies can grow the organization high efficiently and achieve the targets set.
According to the 2017 Forbes Global 2000 ranking, Nestlé is the world's largest food and beverage group,
with more than 2000 different brands and presence in 191 countries.

Hình 1 Production of Nestlé

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II. The extended marketing mix (7Ps)
II.1 The 4Ps marketing mix:
Definition: Marketing Mix is a group of marketing variables that the firm combines and controls, to
produce the desired response in the target market. It is an important marketing tool that comprises of all
the elements which influence the demand for the products offered by the firm. (Business Jargons, 2019)

Hình 2 The extended marketing mix (7Ps)

There are seven ‘P’S of Marketing mix, include price, place, promotion, process, product, people and
physical evience. The different marketing activities are categorised by McCarthy into marketing mix tools,
of four types, which are commonly known as ‘four Ps of marketing’. (Business Jargons, 2019)

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 Hình 3 The 4P Marketing Mix

4Ps is a set of tactics that a business uses to promote and market its products. These tactics range from
product development, deciding the price and where to sell the product, to deciding on communication
and advertising strategies. (Compa Marketing , 2020)
✓ Product: Product refers to the goods and services, that are offered to the customers for sale and
are capable of satisfying their wants. A firm makes strategies to introduce products which are high
in demand and drop the ones which cause loss to the company. Strategic decisions regarding the
product variety, quality, design, features, brand name, packaging, size, returns, after-sales services,
etc., are to be made. Products offered by the firm should be such that which creates an impact in
the minds of the customers that the products offered by them are different than those offered by
the competitors. So, differentiation is the key, that helps in creating brand value. (Business Jargons,
2019)
✓ Place: Place refers to the easy availability of the product in the target market. It implies that a
suitable marketing channel is to be chosen, to reach the customers, because the better the chain
of distribution, the higher would be the coverage. (Business Jargons, 2019)
✓ Price: Price is described as the amount which a customer pays to get the desired product or service.
The pricing of the product should be done keeping in mind the list price, competitor’s price, terms
of sale, customer location, discounts and so forth. While deciding the prices, the value and utility
of the product to its customers are to be considered. (Business Jargons, 2019)
✓ Promotion: Promotion implies marketing communication, as in publicizing the product to convey
product features. It aims at grabbing the attention of customers and instigating them to buy it.
Promotion mix implies the promotional tools used by the marketers to reach the target audience.
It could be Advertising, Direct marketing, Sales Promotion, Personal Selling, etc. (Business Jargons,
2019)

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II.2 The shift from the 4Ps to the 7Ps and marketing mix
The marketing strategy of 4ps was suggested by E. It's Jerome McCarthy. There are four elements of the
marketing mix in 4p: product, price , place and promotion. Looking at these four variables, 4Ps focuses
only on goods, product quality, prices and how to persuade consumers to purchase their goods. These
four elements are easy to apply to all companies, so that this model is widely applied by both marketing
scholars, marketing scholars pointed out some important limitations of the 4Ps model.
Besides the 4P's, when there is consumer-oriented marketing or service marketing, 3P's are introduced
which are:
✓ People: When a business finds people who genuinely believe in the products or services that the
particular business creates, it's is highly likely that the employees will perform the best they can. In a
flat-structured organization like Nestlé, vertical (hierarchical) career development is complemented
and gradually replaced by broad-based growth, spurred on by gaining more news skills. With the size
of a global corporation, Nestlé offers employees the opportunity to develop their talent to the
maximum extent, thanks to its network of borderless operations. (Nestle, 2019)
✓ Process: Processes are needed to deliver services in the marketplace. The company should pay
attention to designing a simple system in order to save costs in providing services to its customers.
Nestlé manufactures and markets its products in a way that creates lasting value for shareholders,
employees, consumers, business partners, and the countries in which Nestlé operates.

✓ Physical Evidence: Nestle sell products in a distinct color packaging that easily identifiable on retail
shelves. These are placed on special shelves provided by the company, which also have a distinct color
and design. This makes it easier for customers to locate such shelves in busy retail stores.
Marketing planning process
The first step of the Marketing Process looks at who the customer is and what he needs and wants. Before
any other marketing activities make sense, the company
9.1 should gain a complete understanding of the
marketplace. For that, it must research the marketplace, as well as customer needs and wants.
Simultaneously, the information about the marketplace and customer data, which is to say marketing
information, must be managed. (Marketing-insider, 2020)
For example: Building customer relationship based on customer value and satisfaction is at thevery heart
of modern marketing. The two fold goals of Nestle marketing is to attractnew customers by providing
superior value and to keep and grow the current customers bydelivering satisfaction. Nestle defines
marketing as: “A social and managerial process where by individual & groups obtains good food and
goodlife through creating and exchanging products and values” (Academia, 2020)
The second step of the process is to design a customer-driven marketing strategy. How does a company
do that? It involves first of all market segmentation and targeting. The firm must segment the market and
then target and focus on one or more of these identified segments. This answers the simple question:
What customers do we want to serve? Answering this question and thereby carrying out a proper

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segmentation and targeting is necessary because a company cannot serve all customers in every way.
(Marketing-insider, 2020)
For instance: Nestlé Milo believes that "sport is a great teacher". Through sport, children will learn
valuable values, such as passion, team spirit, perseverance, determination to become real "champions" in
life. Along with that, sport helps children to be healthier and more active, to develop physically and
mentally - what all parents want. With that understanding, Nestlé Milo boldly inspires and encourages the
community, especially parents and children, towards an active and healthy lifestyle through sports and
nutrition activities. (Brands Vietnam, 2019)
Marketing stratregy
Research and development of new products is the foundation for success in business. Grasping the crux
of the problem, Nescafé has constantly focused on developing new and innovative products to bring to
the market a variety of instant coffee with different names to satisfy different tastes of consumers.
For example, Nescafé 3 in 1 helps users save time in preparation and also satisfy the familiar taste for
fastidious customers who are accustomed to enjoying homemade coffee, with the combination of coffee
and milk. and road. In addition, to satisfy Italian customers, Nescafe produces Cappuccino with a familiar
aroma of coffee that is only available outside the store or it takes a lot of preparation at home. (Industry
and trade magazine, 2020)

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 11.1

III. Case study of different organisations:

NESTLÉ VINAMILK
Objective The goal by 2030 will help 50 Vinamilk expects total revenue in
million children to have healthier 2019 will not be lower than VND
lives and strive to minimize 56,000 billion and the ratio of pre-
negative impacts on the tax profit to total revenue is not
environment. lower than 20%.
Always putting environmental and social factors first is essential for every business, and this is always in
Nestle's goal, so it is trusted by many customers. But Nestle must has to learn a lot of experiences from
Vinamilk about the Vietnamese market because it is a longstanding brand name.
NESTLE VINAMILK
Production - Coffee -Soy milk
- Bottles water - Liquid milk
- Food supplement - Yogurt
- Confectionery and chocolate - Powdered milk
- Nutritional cereals - Ice cream
- Food for children -Special nutrition products for
adults
- Milk
- Condensed milk
- Cooking spices
- Beverages
The strategy "Live happily, live healthy" is always promoted by Nestle with a range of healthy products
such as barley, rich in protein, minerals, and so on. Its products are always diversified not only in dairy
products like Vinamilk but also in essential nutritional supplements, seasonings, and so on. Product
diversification makes buyers preferable and increases revenue due to the corporation.
NESTLE VINAMILK
Price The price of all products created Prices of products are adjusted in
by Nestle is suitable for the accordance with income levels of
consumer, the reasonable price workers and low-income people.
goes with the high quality.

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 NESTLE
Place Nestlé SA, a multinational food
producer. It is headquartered in
Vevey, Switzerland and operates
factories in more than 80
countries.
Also very popular with customers
around the hole word.
VINAMILK
- Currently there are 125,000
retail points
- Through 2 channels to expand
the domestic market, bringing
products to consumers:
+Tradition: consumer distributor
+ Modern: Supermaket

Vinamilk is a long-standing company and has a lot of experience in the Vietnamese market with a
distribution channel of hundreds of thousands of points, with no rival in domestic dairy products. It is
estimated that Vinamilk at that time held nearly 50% market share. But in 1995, Nestle started
operations in Vietnam with an investment of more than 600 million USD, 6 factories, and achieved
success when quickly ranked No. 2 in the Vietnamese market because quality products won the trust of
customers.
At the time the epidemic was spreading, many businesses applied online sales. Nestle has appeared on
most major online shopping and retail sites like Tiki, Shopee, and so on.
NESTLE VINAMILK
Promotion - Operations at Nestle Ice Coffee - Regularly change content, form
2017: Delivering coffee to and create more good ideas about
consumers and cultivating their advertising.
new way of drinking coffee. - Perform product testing
Increase your chances and programs in crowded places such
frequency of drinking coffee. as supermarkets, metro,
- Roadshow Nestle Crispy pedestrian street, etc. In addition,
Chocolate Waffle 2017: Enhancing the company also has social and
Nestle Crispy Chocolate overall charity programs such as study
brand image and brand new encouragement fund, sponsor,
popularity by leveraging the new such as "Program 3 million glasses
product launch event. Encourage of milk for poor children worth 10
consumers to taste new products billion VND"
and increase their awareness of
them, while effectively increasing
sales.
- Deliver multiple-channel focused
advertising in a way suitable to
the different cities.

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Specific promotions of Nestle Pure Life were arranged in some of the key outlets of Lahore.Elaborate shelf
space was acquired for product display and specially designed POS material wasextensively used to
promote sales. On a 12-bottle purchase of 1.5 ml, one 1.5 ml bottle wasoffered free to consumers. Similarly
on a 6-bottle purchase of 1.5 ml, one 0.5 ml bottle wasoffered free. Regarding trade promotion, the retailer
was also given an additional discount of 4 %during this sales promotion. Not only did the sales of Nestle
PureLife grow tremendously duringthe promotion, these continued at a higher pace even after it was over.
Product sampling andsticker sampling activities were carried out in Murree in summer of 1999. Nestle
marketing teamhas also undertaken a major education campaign on water use and its importance in daily
life. (Academia, 2020)
NESTLE VINAMILK
People -Nestlé offers employees a - There are remuneration policies,
dynamic salary and benefits bonuses, salary increases for
system that competes with the employees and encouraging
market in every way, including activities and keep employees in
salaries, short-term or long-term the company.
bonuses, salary supplementary or
social benefits. (Nestle, 2020)
- Ensure all Nestlé properties have
basic health and safety protection
systems for all employees.
Nestlé appreciates and respects the staff of the people who have a tremendous contribution to make the
brand as successful
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today. They have great ambitions and are proud to work for a multinational company
as well as a big brand that makes a great contribution to Vietnamese society.
NESTLE VINAMILK
Physical evidence Nestle sell products in a
distinct color packaging that
easily identifiable on retail
shelves. These are placed on
special shelves provided by
the company, which also have
a distinct color and design.
This makes it easier for
customers to locate such
shelves in busy retail stores.

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IV. Analyse and evaluate marketing mix tactics
NESTLÉ
Strength -The only brand in the area
maintaining its quality and taste
and having the same impact on its
customer
-Pure drinking water in market
(Free of chemicals)
-Diverse items
-Strong brand name in wordwide
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VINAMILK
- There are policy concerns for
customers, employees and
officials in the company
- Invest in scholarships for poor
students to increase image for the
company

Weekness -Not yet thriving in the - No big, long-term marketing

Vietnamese market campaigns

14.2 - No milk production process, it

can make consumers confuse

V. Recomendation
NESTLÉ is maintaining its position in the worldwide market, but still needs to change to keep up with
the trend of modern youth by creating many quality advertising products like Vinamilk's on television
- it interesting and meaningful, attracting viewers. expand more in the Vietnamese market and
maintain product quality and long-standing reputation to win customers' trust. Becoming a dairy brand
that is mentioned as much as Vinamilk

14.3

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VI. CONCLUSION
In conclusion, businesses should apply marketing strategies, marketing planning processes to achieve
their goals and achieve great results. The report clarifies the definition of the 7Ps marketing, the
marketing planning process and the marketing strategy. In addition, this report also analyzes
Vinamilk and Nestlé Group to see clearly that their marketing strategies have helped these two
companies achieve certain success in the Vietnamese market as well as reach the world. At the same
time, this report also shows the effectiveness of the marketing campaign for both companies.

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 VII. References
Academia.(2020). PLANNING PROCESS OF NESTLE PLC AS A TOOL FOR STATEGIC DECISION MAKING.
[online] Available at:
https://www.academia.edu/28789815/PLANNING_PROCESS_OF_NESTLE_PLC_AS_A_TOOL_FOR_STATE
GIC_DECISION_MAKING [Accessed 20 Aug.2020]

Business Jagons. (2019). Marketing Mix. [online] Available at: https://businessjargons.com/marketing-

mix.html [ Accessed 16 Aug. 2020]

Brand Vietnam.(2019). Quả ngọt từ nỗ lực bền bỉ thấu hiểu người dùng Việt của Nestlé.[online] Available
at: https://www.brandsvietnam.com/18655-Qua-ngot-tu-no-luc-ben-bi-thau-hieu-nguoi-dung-Viet-cua-
Nestle [Accessed 20 Aug.2020]

Compa Marketing. (2020). Marketing Mix 4P là gì? Ví dụ cụ thể về mô hình Marketing Mix. [online]
Available at: https://compamarketing.com/blog/digital-marketing/marketing-mix-4p-la-gi/ [Accessed 16
Aug.2020]

Emagazine. (2019). NESTLÉ Viet Nam phát triển bền vững dựa trên cơ sở “Tạo giá trị chung”. [online]
Available at: https://enternews.vn/nestle-viet-nam-phat-trien-ben-vung-dua-tren-co-so-tao-gia-tri-
chung-156537.html [Accessed 18 Aug.2020]

Industry and trade magazine.(2020). Chiến lược maketing sản phẩm của Tập đoàn Nestlé và bài học kinh
nghiệm cho các doanh nghiệp sữa Việt Nam.[online] Available at: http://www.tapchicongthuong.vn/bai-
viet/chien-luoc-maketing-san-pham-cua-tap-doan-nestle-va-bai-hoc-kinh-nghiem-cho-cac-doanh-nghiep-
sua-viet-nam-47378.htm [Accessed 20 Aug.2020]

Marketing-insider.eu.(2020). THE MARKETING PROCESS – ALL ASPECTS OF MARKETING AT ONE GLANCE.

[online] Available at: https://marketing-insider.eu/marketing-explained/part-i-defining-marketing-and-
the-marketing-process/marketing-
process/?fbclid=IwAR09oUp6YHu77u2jpsVnYqGUS0N29IqXid0zdf0Zn9znSYIi8e7bEh3kKug [Accessed 20
Aug.2020]

NESTLÉ. (2020). Annual Report. [online] Available at: https://www.nestle.com/investors/annual-report

[Accessed 20 Aug.2020]

Spearhead. (2017). Vỏ hộp | Khuyến mãi Nestle. [online] Available at:

http://www.spearhead.com.cn/en/index.php/article/info/id/42.html [Accessed 20 Aug.2020]

Vinamilk.(2019). CHIẾN LƯỢC PHÁT TRIỂN.[online] Available at: https://www.vinamilk.com.vn/vi/chien-

luoc-phat-trien [Acessed 20 Aug.2020]

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Index of comments

1.1 Inappropriate Frontsheet

1.2 P3 ✓

2.1 1. ACHIEVED: P3

2. STRENGTHS:

The student is able to compare ways in which organisations use elements of the marketing mix (7Ps) to achieve
overall business objectives.

(P3: achieved) The student can compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives by:

Identified specific objectives following SMART model

Explained relevant theory/concepts about the marketing mix (7Ps)

Provided a variety of examples and practices about how different organizations utilize each element of the
marketing mix

3. WEAKNESSES:

Lacks the Marketing Plan Process explanation

The recommendation is quite general and not tactical

Poor evaluation of Marketing Mix strategies

4. IMPROVEMENTS:

The recommendation needs to link to the evaluation and comparison of Marketing Mix

Improve critical analysis by combining other models/ frameworks in the recommendation and link to previous
analysis.

5. FINAL GRADING: PASS

6. ASSESSOR: NGUYEN PHUONG DUNG

9.1 Explained relevant theory/concepts about the marketing mix (7Ps)

10.1 Lacks the Marketing Plan Process explanation

 Index of comments

11.1 Identified specific objectives following SMART model

13.1 Provided a variety of examples and practices about how different organizations utilize each element of the
marketing mix

14.1 Weaknesses

14.2 Poor evaluation of Marketing Mix strategies

14.3 The recommendation is quite general and not tactical

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