I need a Marketing strategy plan report about nadec company ( saudi company) https://www.nadec.com And i have determined the problem which is nadec considered as a second class after almarai
https://www.almarai.com , sometimes third or fourth class ( in the saudi costumers minds ) . And as marketing experts the requested report have to explain how solving this problem So i need explaining the problem and how to fix it as a marketing experts, the guidelines of the requested project attached, i need to cover some of the points in this guidelines which are: number 1,2,4,5,6,8
The information about nadec is in their website https://www.nadec.com, and the information about the market,competitors and all needed information are in the internet.
Competitors :
Almarai https://www.almarai.com
Saudia https://www.sadafco.com
Al safi https://www.alsafidanone.com
There is an executive summary about the project ( it’s attached ).
Marketing Plan Strategy Report about Nadec Company
1.Objectives
Nadec is one of the first agricultural firms founded in Saudi Arabia to provide food security and nutrition to the region’s residents. Notably, the firm was established by Royal Decree by King Faisal bin Abdul Aziz in the early 1980s (“History”). Despite being in the industry for decades, and leading in the manufacturing of dairy products, the target customers have a poor perception of the firm. Notably, customers rank the company second and sometimes third and fourth relative to its competitors who have not been in the industry as long as Nadec. Therefore, considering the identified problem, this marketing plan aims to develop strategies that will help Nadec improve and gain a favorable positioning in the customer’s mind relative to its industrial rivals within one year.
- Target Market
This marketing plan targets Nadec’s consumer market based on geographic, demographic, psychographic, and behavioral segmentation. The marketing plan’s priority target market is families and young people living in Saudi Arabia and the GCC countries, who fall under demographic segmentation. Notably, dairy and food products are an integral part of this population’s diet, making them a significant company’s target market. A distinctive trait of this target market is that they live as nuclear or extended families. Due to the large number of people in each household, this target market is likely to seek economic ways of food consumption. Arguably, this target consumer prepares meals such as breakfast, lunch, and dinner at home because it is more economical than take-aways. Therefore, dairy products are likely an essential accompaniment for their everyday meals. Thus, effective positioning of the company’s products in this market can likely enhance Nadec’s ranking in the food industry.
The second target market in the priority list is loyal, frequent customers who fall under behavioral segmentation. This category of consumers exhibits unique traits of repeated purchases and high consumption of products from a given business. Most notably, loyal customers have a high probability of purchasing Nadec’s products despite other brands’ existence in the market. Additionally, loyal customers are more likely to have a positive perception of Nadec and rank it higher in the industry than their counterparts if its products are well-positioned.
Thirdly, the marketing plan targets middle-high income health-conscious consumers who fall in the category of psychographic segmentation. This group of consumers has substantial income to afford dairy food accompaniments such as dairy-based desserts, beverages, and creams. Furthermore, health-conscious individuals are vigilant about the health benefits and quality of the products they consume. Some of these health-conscious consumers may include the elderly and individuals working on a healthy diet plan for fitness purposes. As suggested in the literature, the majority of older adults avoid milk and dairy consumption that have excess fat and cholesterol because it can be harmful to the body (Chollet et al. 5387). Therefore, this group of middle-high income and health-conscious consumers are a potential market for Nadec’s premium quality and healthy food and dairy products.
- Positioning
Currently, Nadec positions itself as a premium quality brand that offers tasty products with high nutritional value to optimize the customer’s health and happiness. However, an in-depth analysis of the market reveals that the company’s positioning in the customers’ mind lacks authenticity as its close competitors also adopt a similar market positioning. For example, Al Marai positions itself as a quality brand that offers nutritious foods and beverages that enrich consumers’ lives every day (“Mission, Vision and Values”). Similarly, Alsafi Danone positions itself as a quality and innovative brand that offers healthy foods and products that consumers can enjoy (“Our Company”). Arguably, the lack of authenticity in Nadec’s market positioning is likely a potential reason for its poor perception among its target customers.
Nadec’s poor perception among its target customer is also compounded by its failure to effectively fulfill its positioning strategy. As noted, Nadec positions its products as premium quality and highly nutritious. However, some of its target consumers do not feel the same about the products. For example, in one of the online reviews on Facebook, a consumer mentioned that the firm’s beverages, notably, its fruit juices were of “zero quality”. Conversely, some of the firm’s competitors, such as Al Marai, has, over the years, cemented its position in the consumer’s mind by acquiring a reputation of quality that is unmatched within the gulf countries (Singh and Hagahmoodi 2). A comparison of the two companies suggests that some of Nadec’s products’ failure to meet the customer’s quality expectations could be a significant reason for its poor perception among its target customers.
Recommended Positioning Strategy and Tagline
Based on the information gathered from the analysis and an assessment of Nadec’s competitive advantages, it is recommended that the firm should adopt a hybrid positioning strategy- based on price and quality. On the one hand, positioning based on price will involve positioning Nadec’s products as the most affordable in the industry relative to its competitors. This strategy is suggested for two main reasons. First, none of the firm’s competitors is currently positioned on a price basis, which implies that the strategy will distinguish Nadec from the rest of its rivals and likely trigger a new perception of the organization’s products that have not been witnessed in the industry before.
Second, this positioning strategy is suggested based on the firm’s ability to execute the promise of affordability to its consumers. Evidence from the literature reveals that Nadec has a vertically integrated business model which allows the firm to control the end to end value chain (Walker). Walker also adds that Nadec’s vertical integration helps the firm become one of the cheapest raw milk suppliers globally because it does not require outsourcing in its operations. Nadec’s business model sets it apart from the rest of its competitors and provides an opportunity to exploit and position its brand competitively.
It is recommended that Nadec’s price positioning be coupled with positioning based on quality. Notably, the firm will retain the perception of the premium quality of its brand among its consumers. The combination of the price and product positioning strategy is suggested to offset any negative perception that consumers may develop about the firm’s products’ quality. Arguably, portraying Nadec’s products as merely cheaper and affordable relative to its competitor’s brands is likely to raise concerns about the quality. Notably, consumers may think that the products are of low quality and poor value because of the low price. Therefore, to strike a balance between the two perceptions, the firm will adopt a combination of price and quality positioning strategy.
Positioning Tagline
The proposed positioning tagline for Nadec is “affordable, premium quality products”. This tagline will mirror the two perspectives that the company plans to inculcate in the consumer’s mind. Notably, the tagline will bring to life the brand’s affordability and quality to the firm’s customers.
- Pricing
Fundamentally, Nadec’s products are priced based on a competitive pricing strategy. This strategy involves setting prices based on what the industrial competitors charge for similar commodities. While this strategy is ideal for keeping pace with the competition, Nadec should focus on a plan that will help attract and retain its target customers.
The recommended pricing strategy for Nadec’s products is economy pricing. This pricing strategy involves setting low prices for commodities with lower production costs. As noted, Nadec has a vertically integrated business model, which implies that it has lower logistical, distribution, and operational costs compared to other firms that outsource some of their operations. Nadec’s low production costs can be exploited to establish economy pricing for its three product categories: dairy, juices, and foods. Arguably, setting relatively lower prices than other industry participants while maintaining and improving each product portfolio’s quality will help attract and retain consumers.
Besides economy pricing, Nadec will also issue discounts on some of its slow-moving products. It is worth noting that some of the firm’s products, such as juices, are yet to attract a significant market share in the industry. Therefore, the majority of the firm’s distribution channels are likely to have a considerable capacity for the old inventory of such products. The firm will offer discounts in these product categories to enhance customer traffic in purchasing the product, which will help clear the slow-moving inventory.
6.Distribution
Nadec’s products will be distributed through multiple channels to ensure that they reach the target customer at the right time and in the right quality. Among the distribution channels that will be utilized by the firm is convenience stores because of their accessibility and convenience for customers. Unlike other outlets with fixed operating schedules, convenience stores have extended operating hours, making them convenient for consumers who urgently require dairy products, food, or juices late in the night. The features of convenience stores match the set target of ensuring that the firm’s products are available to consumers any day, time, and everywhere across the region. However, convenience stores often stock limited goods; thus, the management must couple this distribution channel with a larger retailer, such as supermarket chains, to accommodate the company’s diverse product portfolio. Furthermore, the firm will distribute its products through wholesalers who will sell the products in bulk to other smaller retailers in the supply chain.
The firm will also use direct sales as part of its distribution channel to retain the lower prices as intended in the marketing plan. Arguably, retailers and wholesalers may slightly increase the commodities’ prices as they also operate based on profit maximization. Therefore, Nadec will distribute some of its products directly to consumers through its stores to prevent commodity prices from surpassing the intended cap.
The suggested distribution channels will be evaluated using two KPIs- accessibility and convenience. Notably, the appropriateness of a given channel will be determined by whether it is accessible and convenient to the final consumer. The distribution channels will also be managed using decentralized management to facilitate quick decision-making and agile changes where the need arises in each distribution medium. Furthermore, Nadec will use communication as a primary strategy to motivate the firm’s distribution channels. Arguably, building a strong relationship in the firm’s distribution channels and maintaining constant communication will motivate the latter to keep promoting the brand’s products.
Works Cited
“History.” Nadec, www.nadec.com/nadec-world/history/. Accessed 15 October 2020.
“Mission, Vision and Values.” Al Marai, www.almarai.com/en/corporate/almarai/mission-vision-values/. Accessed 15 October 2020.
“Our Company.” Al Safi Danone, www.alsafidanone.com/our-company. Accessed 15 October 2020.
Chollet, Magali, et al. “Short communication: Dairy consumption among middle-aged and elderly adults in Switzerland.” Journal of Dairy Science, vol. 97, no. 9, 2014, pp. 5387-5392.
Singh, Ajay and Hagahmoodi, S.O. “Performance Measurement of Almarai Products and Customer Satisfaction.” International Journal of Management Science, vol. 4, no. 1, 2017, pp.1-12.
Walker, Nell. “NADEC.” Supply Chain Digital, www.supplychaindigital.com/company/nadec. Accessed 15 October 2020.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
