Nestle Cereal Marketing Mix

Vietnam retail market is very important to FMCG manufactures. According to A.T Kearney's report, Vietnam is in the annual list of most attractive emerging market retail destination. Vietnam has one of the largest populations in Asia with over 86 million inhabitants. The rate of population growth has been steady; the population is relatively youthful, although it is gradually ageing. In terms of GDP growth, Vietnam has one of the fastest growing economies in Asia. GDP growth in the past couple of years may have been even higher if it wasn't for the impact of the bird flu epidemic (Grocery Retailing Vietnam by Planet Retail 2009).

To grow the business in Vietnam retail market, FMCG manufactures need to understand the consumer behaviour to solve their problem by structuring their marketing mix around the consumer behaviour (Hawkins, 2007, p.372). This can involve developing a new product or altering an existing one, modifying channels of distribution, changing pricing policy, or revising advertising strategy (Hawkins, 2007, p.522). The above combination will help to meet customer needs, provide customer values (Hawkins, 2007, p. 19).

NESTLE is the biggest company in Foods and Beverage with sales of CHF 109.9bn CHF in 2008, net profit of 18bn in 2008, over 280,000 employees, and 456 factories in 84 countries. Nestle enter Vietnam in 1995.

NIC is a brand of Nestle Vietnam in infant cereal category. NIC has been declining from 2007 till now and one of the reasons discussed between managers is that we do not thoroughly understand consumer behaviour in this brand leading to wrongly structure marketing mix.

This thesis aims to help Nestle Vietnam understand the consumer influence driving the marketing decision for NIC brand at two retail channels: Modern Trade and Traditional Trade in order to properly structure the marketing mix. This action will help to improve the growth of NIC brand in 2010 on wards.