A Competitive Audit of Nestles Milo Essay examples -- Business Manage

A Competitive Audit of Nestle's Milo I plan to produce a SWOT analysis, PEST analysis and a Competitive Audit on Milo. This is because I’m going to need to produce a good analysis on the market place, if I intend to create the best marketing strategy. This is important because there are a range of options available when creating a marketing strategy. Without these analytical processes I will not be able to identify, which strategy is appropriate. I am going to produce a SWOT analysis to find out how effective Milo is operating and what internal factors may influence its success. A SWOT analysis analyses the internal factors that may influence the success of a business. The initials SWOT stand for: Strengths Weaknesses Opportunities Threats Strengths and Weaknesses are internal factors within the control of the organisation. Opportunities and Threats are outside the control of the organisation. For example, products offered by competitors, or market forces such as seasonal fluctuations in demand. It enables an organisation to plan future activities by considering a number of questions such as: * What are our Strengths? How can we build on them to ensure that we offer a better product than our competitors? * What are our Weaknesses? How can we eliminate them? * What are our Opportunities? How are we going to use them to attract new customers or increase the number of products that existing customers buy? * What are our Threats? How are we going to minimise them so that they do not affect sales of our products? Here are the advantages and disadvantages of using a SWOT analysis: Advantages * Identified strengths (value for money) * Identified opportunities for marketing * Identified weaknesses (problems to be addressed) * Identified threats * Structure for analysis Disadvantages * May contain biases (If based whole strategy on SWOT information without considering validity of using other marketing tools could cause strategy to fail) * Results/Importance/Consequences need to be communicated to everyone in company to make it successful not just more paperwork * Prone to Human error * Focus could become too diverse and loose main objectives Here is a SWOT analysis on Milo: Strengths * Only chocolate energy drink * Unique selling point * Big sales in other countries * Part of Nestle (reputation) funds available for relaunch * ... ...ship and adverts in Australia * Advertising on TV, bill boards etc * Sponsorships for large sports events * Last sponsor was the Rugby World Cup * Buy one get on free * 25% extra free etc * Boosts performance makes athletes go 25% longer * Advertisements on T.V, internet websites, bill boards, magazines, etc. To conclude all three process (SWOT, PEST and Competitive Audit) have affected my strategy and marketing decisions. The SWOT analysis has help me to acknowledge and comprehend my weaknesses, which will be a benefit because now I know my weaknesses all I need now is search for a way to eliminate them. The PEST analysis has drawn my awareness to the external forces that may have an influence on the product (Milo). Therefore, when making marketing decisions the factors found will be taking into consideration. The competitive Audit has showed me where Milo’s competitors are (what level they are on) which is also a benefit because I can see what I’m up against, what I have to do to get ahead and whether I’m disadvantaged in anyway. This is very important in the competitive environment because as a competitor, you cannot allow rivals to gain advantages in any form or way.