E-marketing strategies for Nestle

E-merchandising strategies for approachConsumers buying behaviour and want often changed rapidly as the trend of the merchandise and the current fad had worked about with the advancement of technology. Marketing has withal moved to sustaining the buyer to buy rather than the traditional way of advertising that more(prenominal) towards to helping rater to sell which tow to companies to engagement the profits as the effective tool to set up the customer with discipline and gained their buying decision whilst develop a lasting relationship. (Charlesworth, 2009). there argon numerous of companies set up their business online, as a result, each business owner has to come out with new and appropriate e-marketing strategies in redact for their attach to to be one step further or stay competitive with its rivals. As in the solid food manufacturer industry, Nestl (M) Bhd. had growth and do expansion without Malaysian which became the trusted names in every household from gen eration to generation. As to move along with the current fab, Nestl (M) Bhd also fault its traditional ways of advertising and penetrate into the cyberspace world in order to stay on excrete of the summit of food manufacturer loss contracter in the agricultural and make up the company Return on investment funds.2.0 IntroductionE-business has become in vogue because of it benefits such(prenominal) as cost effective, enable burst customer relationship, gaining competitive favor and etc. By making the appropriate and critical use of e-marketing strategies and practices through Internet, companies back achieve their objectives and sustain competitive advantage over its rivals.As for this report, Nestl (M) Bhd. impart be elect as the case study. Nestl Malaysia is the food manufacturer which manufactures its products in 7 factories and operates from its head office in Mutiara Damansara, and 6 other offices in Malaysia. Nestl Malaysia manufactures more than 300 Halal products wi th the brand name such as MILO, NESCAF, MAGGI, NESPRAY, KIT KAT and etc. (See Appendix 1 for Nestl Malaysias history)In this business report, it illustrates e-marketing strategies of Nestl (M) Bhd. that erect be adopted to achieve the objective of the company, which are likely to produce the trump of Return on Investment (ROI). In order to achieve this objective, Nestl (M) Bhd. tolerateBuild and market Nestl Brand via internetAdvertise and curl more online users to Nestls web internet come outImprove online sales and boost business improvementDevelop and build relationship with customer baseThe e-marketing strategies recommended to Nestl (M) Bhd. to implement to achieve the company Return of Investment (ROI) as mentioned above are website development, viral marketing, link marketing, re see engine optimization (SEO), domain name, online advertising and e-mail marketing.3.0 E-marketing Strategies Nestl Malaysia can be Adopted to Achieve the best of Return on Investment (ROI) 3.1 Website exploitationTo achieve the objective of Nestl Malaysia to produce the best of Return on Investment (ROI), developing and designing a good website is the most important and initial symbolise in the e-marketing strategies. Based on the Internet World Stats (Figure 1), Asia has the highest percentage of Internet users in the world this shows that Asia is an Internet-mature country among the world and this indicates a potential online market whereby Internet is currently a fad tool for them to look for knowledge, therefore, a quality website design is a key to attract more online users to Nestl Malaysias website.3.1.1 PresentationBased on Dr. Wilson (2003), the splash scalawags which is the home pages with dancing logos powered by Macromedia fleet technology designed to annoy and turn away visitors before they reach the truly home page. Charlesworth, (2009) states that a website should be designed for its target readership and is easy to find in public figureation. In the case of Nestl Malaysia, some of the webpage of it brands such as NESLAC, MAGGIE are designed with Flash type technologies. Nestl Malaysia can improve on this area because a web page is designed for key audience and sending messages around their needs and gaudy graphic form the Flash will grabs attention and brand association from the audience. (Tobin, 2008).Nestl Malaysia also has to ensure that the entire site is consistent, with every page in the site is heed the same layout and structure. Besides, in terms of the subject of the page width, the site should be user printed friendly by setting the page width not more than the maximum width of 750 pixels to conveniences the visitors when they want to do print-out from the site. The site also should avoid development the large images especially on the front page as this will slower down the download beat of the site and simply turn away the impatient web users. (Charlesworth, 2009).3.1.2 Usability fit in to Charlesworth (2009 ), website usability is to aid visitor to achieve their objectives for visiting the site in the simplest as easiest way. Most of the Internet users are used to a certain user interface elements where they usually loath to learn or adapt new thing with incisively to use the website. Nestl Malaysia should design its sites with a clear categorization of its brands. In a case of a user would like to look for the information regarding Growing Up Milk, the site should easily link to the user, e.g. Brands Milk Growing Up Milk NESPRAY. This is vital as a smooth visitors flow will definitely adding percentage of turning an Internet browser into e-shopper.As Nestl Malaysias website comes along with many pages with its myriad of product brands, the glide of the site should be taking into account. This is because some of the users might not arrive on the front page when they enter the site, so there is a contingent risk for this potential users might not aware of other matter from the s ite. Nestl Malaysia should ensure that the in-site search facility they provided will offer a marketing message, i.e. search again, whenever there are no matching products for the users particular search.3.1.3 ContentAccording to Chen Barnes (2007), shoppers make procure decisions based on the information provided by the sites. Besides, content is being recognized by the users where a successful Internet presence has evermore been about effectively delivery of the information of the visitors wants Content is king. Nestl Malaysia should always -update the content of its site by providing the latest and useful information of the product for each of its brands. Nestl Malaysia also can give a description of ingredients used, dietary transfigure per serving and allergen information such as eggs, milk, soy to steer clear of consequences of customers who are allergic to certain ingredients of each of its brand products.By adopting the web as a commercial medium, Nestl Malaysia can ben efited in a way that it can deliver its products such as products promotion, newly launched products through a direct and information oriented manner to the web users. This can help Nestl Malaysia to lower their cost for postage, printing cost, television commercial cost that incur when apply the traditional advertising.3.2 viral MarketingViral marketing support the extremely powerful effect in the form of word-of-mouth advertising techniques which utilizes the popularity of online social networks, forums, email, blogs and other resources to deliver marketing message and hence bring exponential business growth. Nestl Malaysia can market and build its brands through these channels such as Facebook, MySpace, Tagged, Twitter.According to Figure 2, more than 30 billion pieces of content such as web links, news stories, blog posts, notes, photo albums, etc had been shared each month in Facebook. Nestl Malaysia can use Facebook to build the brand of its products as the company can targe t these derive of users in Facebook to promote the brands. For instance, Jane a Facebook user who shared her newly experiences on the taste perception of Nestl new products, MAGGI TASTYLITE Atta Whole Wheat Instant Noodle by uploading pictures of her having the noodles will certainly draw the attention of her Facebook users friends to browse on the Nestls website. This can lead to the sum up of sales of Nestl and helps Nestl to achieve the Return on Investment.Based on the graph above (Figure 3), the numbers of visitors to Twitter.com in May are exceeding 20 million. The users of Twitter often post their daily status on their account and many user of Twitter will follow their friends tweets. This can help Nestl if for instance, Alan a Twitter user who satisfy after experienced with Nestl products and posted the review on his Twitter account, this will more likely to let his friend who follow his tweet will make purchase of Nestls product if they substantiate read positive commen ts from the tweet.3.2.1 Criteria that requires for Successful Viral CampaignNestl Malaysia has to ensure that the information on its site isEasy to forwardFor instance, Nestl should making sure that its website enhance a good usability techniques that will make the receiver to pass the information of the sites on to others.The Nestl site can add in the email to a friend button on every product so the visitors can easily share the information with their friends. (Charlesworth, 2009)Right target audienceNestl Malaysia can provide more details information regarding the products so that the receiver will realize which message are worthy to forward to their friends. Take for example, the dairy products from Nestl Malaysia can be range from growing up milk to adult milk, therefore, Nestl should categorized its products accordingly so that the consumers will barely forward the message to their friends in accordance to their needs. (Charlesworth, 2009)Message is placed where it can be see nNestl Malaysia not only can target its products information message and ads on mailing list but it only can place them on an appropriate website, blog. For instance, Nestl Malaysia can place its product on the local famous food blog such as Criz Bon Appetite blog because there were many blog viewers who followed the blog and therefore they will also notice on Nestls ads. (Charlesworth, 2009)3.3 Affiliate MarketingThere were many types of affiliate marketing such as Pay-Per-Click (PPC), Pay-Per-Sale (PPS) advertising, loyalty websites, email lists and etc. Nestl Malaysia can use affiliate marketing as one of its marketing strategy to improve its sales while build up its brand and finally lead to produce the best of Return on Investment.For example, Nestl Malaysia can advertise its products in ClickBank.com where Nestl Malaysia itself become the vendor in ClickBank and wait for the affiliate marketers in ClickBank to promotes its products. Then, the marketers in ClickBank will promot e the Nestl products on the Internet, if any buyers who click and browse on the marketers link, ClickBank will charge on Nestl in the share profits basis upon a successful purchase. This type of charging are knows as Pay-Per-Click (PPC). One of the advantages of Nestl through this strategy is that it will have a wider place to sell its products and the more websites that publish by the marketers will naturally provide more customers and create more sales. As through this strategy, it will help Nestl to build up the brand name of and at the same time increase sales volume and achieve time efficiency.3.4 Search Engine Optimization (SEO)Search engine optimization is one of the very potent e-marketing approaches that can help Nestl Malaysia in achieving its objective of producing the best of Return on Investment by increase the handicraft to its website. This can be done by enhancing the visibility and approachability to Nestl Malaysia website from search engines such as Google, Yahoo , Baidu and etc.According to the Jupiter Media Metrix, surveyed resulted that 47% of web users said that the most common way they find products or online stores is through search engines. The top 10 results to the search query get 78% more web traffic as compared to the subsequent listing. (Strauss, El-ansary, and Frost, 2003).3.4.1 Comparison of daily traffic rank trend between Nestle Malaysia Berhad Unilever Malaysia from Jun-Aug10 of bothBased on Figure 4 5, Nestle Malaysia ranked number 205,070 while Unilever Malaysia ranked number 1,199,354 in the world according to the alexa traffic rank. This indicates that Nestle Malaysia had a very low percentages visitors visit on their sites as compared to its competitor, Unilever Malaysia. The fraction of visits to the site referred by search engines for Nestle Malaysia is roughly 11% while approximately 45% for Unilever Malaysia. Unilever Malaysia is relatively popular among users in the city of Kuala Lumpur which ranked 14,163.Figure 6 illustrates that Google dominated the market share of search engine in Asia which is about 86.30 percent out of the total market share. In order to gain competitive advantage and to increase the website traffic, Nestl Malaysia should adopt search engine optimization strategy through the famous search engines Google. Besides, Ottos Cookies also can place their advertisement in Google AdSense so that online users will aware of Ottos Cookies website that appeared on the various websites of Google. This also can help Nestl Malaysia to gain more visitors to their websites.3.4.2 Advantages of Search Engine Optimization (SEO)The advantage of search engine optimization is that it can deliver Nestl Malaysia website among the top ranked sites in the web. There will be a greater likelihood of internet users visiting Nestl Malaysia website if it is ranked on top of the first page as compared to the website ranked at third or latter page of search engines.Moreover, search engine optimization also aids Nestl Malaysia in promoting the brand on the related award Nestl Malaysia has won such as the Asian Marketing Effectiveness Awards (AMEA) 2007 from the NESCAF Kick-Start category. This will definitely lead to the visitors decision and assist visitors to come up o purchasing Nestl Malaysia products.3.5 Domain NameThe domain name of the company is the fundamental when considering the website as the company brand. According to Murphy and Scharl (2007), an effective online presence is crucial to a brands internet success whereby a successful online presence came in place. This can be successful when customers can found the brand name when they type the brand name followed by the global or the country suffix in the search engines. By using the company trademark or its brand name can certainly helps consumers to quickly find the site and adds power to the brands. (Strauss, El-Ansary, and Frost, 2006). This is added-value to Nestl Malaysia which registered the domain name with t he local country suffix as nestle.com.my.Besides, Nestl Malaysia also can create multiple domain names to cover variations of it products brand as well by using the top search engines- Google to promote its domain name. This can help Nestl Malaysia to promote its websites and attain more online users to its site.3.6 Online AdvertisingNestl Malaysia objective is to produce greater Return on Investment by creating brand awareness of the public through the medium of Internet. As for this, Nestl Malaysia can use the online advertising as it is the powerful tool to start and assure relationships with customers in brand promotion. Nestl Malaysia can place their advertisements of their various brand of product through the web.For instance, Nestl Malaysia can apply one of the forms of paid advertising models such as Pay-Per-Click (PPC). (Charlesworth, 2009). By using Pay-Per-Click advertising, Nestl Malaysia can place their advertisement in Google AdWords whereby Nestl Malaysia advertiseme nt will appear in the search results of Google when people search on Google using one of its keywords. For instance, the keywords of good food, good life will immediately link Nestl site on top of the search engines. Nestl Malaysia will only have to overcompensate to Google on performance when the users click on the advertisement of Nestl Malaysia.However, the keyword bid in Google also might be affected by the Clickthrough rate (CTR). The keyword bid of Google are depends on its quality score. If the previous ads of Nestl Malaysia had been attracting many clicks from the users, naturally this good track of record will gain more credit. This is a disadvantage for the first time advertisers as they will be penalized as they do not have record of history. (Charlesworth, 2009).With the increase number of information, people and time spend on Internet Nestl Malaysia can easily promote its brand through online advertising. Besides, by using the Pay-Per-Click advertising, Nestl Malaysia can easily track the number of people who gets to know their advertisement and this can help them to trace the popularity of their brand in the Internet and also the effectiveness of their advertisement.Moreover, Nestl Malaysia also can advertise its brands on the blog and forum in the form of banner ads. For instance, the famous social media sites such as Blogger, Lowyat.net forum and etc. There is also association websites where Nestl Malaysia can post its ads as the content of the community websites is decided by the community members. (Charlesworth, 2009).In addition, online advertising also has greater range as compared to publications such as TV advertising which cater to a particular geographical area. As Internet can reach people around the world, Nestl Malaysia brand will be recognized globally and hence this can create business opportunity by bringing Nestl Malaysia out of the country.3.7 Email MarketingNestl Malaysia can specially create lists of consumers who agree to r eceive email to have the privileges to redeemed special rewards such as gift certificate from Nestl Malaysia to attract consumers to give them permission to email them on relevant news from Nestl Malaysia. This can attract more consumers to visit their website and at the same time brush up Nestl Malaysia brand name.Additionally, Nestl Malaysia can request the consumers email address and information used to registers a site when they make an online or offline purchase. By doing so, Nestl Malaysia actually can give online memberships to their customers who register to their websites and for every new registered customers will entitle extra discounts when make purchase on their products. This can help Nestl Malaysia to targets their consumers based on geography, age, income, spending powers and etc. Nestl Malaysia gets to build and maintain the relationship through a variety of communications such as newsletters, special offers or promotions to members, and customer services.With email marketing, Nestl Malaysia can transmit their email about the company products and services promotions instantly to the potential customers with literally just the click of a mouse and this factor already make email marketing strategy an extremely cost effective. In addition, as compared to offline normal postage, email advertising is faster and convenient. There are also no printing and postage charges required for email advertising.4.0 Conclusion and RecommendationIt is important to Nestl Malaysia to have a better understanding on how the e-marketing strategies will bring effects towards achieving the company objective of producing the best of Return on Investment. Applying the appropriate strategies based on the company needs will help the company to stay competitive and stand strong in the market. In order to be better and having more opportunities than the rivals, the e-marketing strategies that chosen by the company also must compatible with current fad of the market and be cr eative from others in the sense that it also should applicable to the company.(3310 words)5.0 Harvard Referencing5.1 appropriate ResourcesCharlesworth, A., 2009. Internet marketing a practical approach. Slovenia Butterworth-Heinemann.Strauss, J., El-Ansary, A. and Frost, R., 2006. E-marketing. 4th ed. United States of the States Pearson Prentice Hall.Turban, E., King, D., Viehland, D. and Lee, J., 2006. Electronic Commerce A Managerial Perspective. 4th ed., United States of America Pearson Prentice Hall.5.2 Electronic ResourcesAlexa Internet, 2010. Nestle Malaysia Berhad. Online for sale at http//www.alexa.com/siteinfo/nestle.com.myAccessed 20 tremendous 2010.Alexa Internet, 2010. Unilever-static Version. OnlineAvailable at http//www.alexa.com/siteinfo/unilever.com.myAccessed 20 August 2010.Available athttp//www.crizfood.com/Accessed 15 August 2010.ClickBank, 2010. OnlineAvailable at http//www.clickbank.com/index.htmlAccessed 16 August 2010.Facebook ,2010. Press room Statistics. O nline.Available at http//www.facebook.com/press/info.php?statisticsAccessed 18 August 2010.Folio Snap, 2010. Twelve reasons not to have flash website. OnlineAvailable at http//www.foliosnap.com/whynotflash.phpAccessed 10 August 2010.Google AdSense. Maximize revenue from your online content. OnlineAvailable athttps//www.google.com/accounts/ServiceLogin?service=adsenserm=hidefpui=3nui=15alwf=trueltmpl=adsensepassive=truecontinue=https//www.google.com/adsense/gaiaauth2followup=https//www.google.com/adsense/gaiaauth2hl=en_USAccessed 22 August 2010.Google Adwords. Advertise your business on Google. OnlineAvailable athttps//www.google.com/accounts/ServiceLogin?service=adwordshl=en_USltmpl=adwordspassive=trueifr=falsealwf=truecontinue=https//adwords.google.com/um/gaiaauth%3Fapt%3DNone%26ugl%3Dtruegsessionid=dv6snIDEoVr750b7WVNf8gAccessed 25 August 2010.Internet World Stats, 2010. Internet Users in the World Distribution by World Regions 2010. Online (Updated 30 June 2010)Available at http //www.internetworldstats.com/stats.htmAccessed 9 August 2010.Maggie, 2010. Lets masak-masak. OnlineAvailable at http//www.maggi.com.my/Accessed 9 August 2010.Murphy, J., Scharl, A., 2007. An investigation of global versus local online branding. International Marketing Review, Online 24(3), pp. 297-312.Available at http//www.emeraldinsight.com/10.1108/02651330710755302 Accessed 8 August 2010.Nestl, 2010. Neslac excella gold. OnlineAvailable at http//www.excellencebeginsyoung.com.my/Accessed 8 August 2010.Nestl, 2010. Nestl insights Awards and Recognition. OnlineAvailable athttp//www.nestle.com.my/Nestle+Insights/Corporate+Information/awards.htmAccessed 23 August 2010.Nestl, 2010. Nestl insights Awards and Recognition. OnlineAvailable athttp//www.nestle.com.my/Nestle+Insights/Corporate+Information/awards.htmAccessed 23 August 2010.Nestl, 2010. Nestl insights Nestl in Malaysia. OnlineAvailable athttp//www.nestle.com.my/nestle+insights/corporate+information/nestleinmalaysiaAccessed 8 Au gust 2010.StatCounter Global Stats, 2010. Top 5 search engines in Asia from Jan 10 to Aug 10. OnlineAvailable at http//gs.statcounter.com/search_engine-as-monthly-201001-201008-barAccessed 21 August 2010.TechCrunch, 2010. CostoloTwitter now has 190 million users tweeting 64 million times a day. OnlineAvailable at http//techcrunch.com/2010/06/08/twitter-190-million-users/Accessed 15 August 2010.