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EXECUTIVE SUMMARY

Nestlé's digital and social media marketing strategy is designed to harness the power of online
platforms to bolster brand visibility, cultivate consumer engagement, and boost sales.
Employing the SOSTAC framework—Situation, Objectives, Strategy, Tactics, Action, and Control
—this comprehensive approach is tailored to meet specific goals.

While Nestlé maintains a formidable presence in the global market, it faces mounting
competition and evolving consumer preferences. The dynamic digital landscape presents
opportunities to extend reach, forge deeper connections with audiences, and adapt to shifting
market dynamics.

The objectives of the plan are clear and actionable:

1. Increase brand awareness and engagement across digital platforms by 20%

2. Generate a 15% increase in online sales within the next fiscal year

3. Enhance customer satisfaction by 25% through enhanced digital interactions

To anchor the strategy, Nestlé will capitalize on the upcoming National Beverages Day with an
innovative campaign titled "Energizing the Future." This four-month online initiative will
empower consumers to contest in a fierce competition that align seamlessly with Nestlé's ethos
of 'Good Food, Good Life,' while driving towards the established objectives.

The strategic approach revolves around a multi-channel engagement strategy aimed at


connecting with consumers across diverse touchpoints. Central to this strategy is the creation of
relevant, compelling content tailored to different platforms and audience segments.
Transparency, authenticity, and sustainability will serve as guiding principles, resonating with
today's discerning consumers.

The tactics section of the plan will outline specific tools and strategies to be employed in
achieving the set objectives and realizing the overarching campaign vision. From influencer
partnerships to interactive social media campaigns, each tactic will be meticulously chosen to
drive engagement and deliver measurable results.

Continuous monitoring and evaluation of key performance indicators—including engagement


rates, conversion rates, and customer satisfaction scores—will be paramount. Regular
performance assessments will enable the team to gauge the effectiveness of tactics and make
informed adjustments to strategies as needed, ensuring ongoing success and alignment with
objectives.

By meticulously following the SOSTAC framework and implementing a dynamic, consumer-


centric approach, Nestlé is poised to not only meet but exceed its digital marketing goals,
cementing its position as a leader in the digital landscape while delivering value to consumers
worldwide.
INTRODUCTION - COMPANY PROFILE

Nestlé stands as a global powerhouse in the food and beverage industry, with a
presence spanning 187 countries worldwide. With a dedicated workforce of 291,000
individuals, Nestlé is unwavering in its commitment to its core mission: harnessing the
potential of food to elevate life quality for all, today and for generations to come.

In August 2018, Nestlé established the Nestlé East and Southern Africa Region (ESAR),
encompassing 23 nations. These include South Africa, Botswana, Namibia, Lesotho,
Mauritius, Zimbabwe, Zambia, Eswatini, Kenya, Mozambique, Tanzania, Comoros,
Madagascar, Seychelles, Burundi, Rwanda, Somalia, Ethiopia, Uganda, Malawi, South
Sudan, Eritrea, and Djibouti. Within the ESAR region, Nestlé proudly employs a
workforce of 3,200 individuals.

Operationally, Nestlé maintains seven manufacturing facilities across ESAR, strategically


located in South Africa (five), Zimbabwe (one), and Kenya (one). These facilities serve as
vital hubs for producing a diverse range of high-quality food and beverage products.

Across many of the countries where Nestlé operates, profound socio-economic


challenges persist, including the triple burden of disease: obesity, micronutrient
deficiencies, and undernutrition. In response to these pressing issues, Nestlé remains
steadfast in its commitment to its Creating Shared Value (CSV) business approach.
Creating Shared Value represents Nestlé's holistic strategy for driving sustainable, long-
term positive impact for both shareholders and society alike.

Through Creating Shared Value, Nestlé endeavors to address societal needs while
simultaneously creating value for its business. By integrating social and environmental
considerations into its core business activities, Nestlé strives to foster meaningful
progress and contribute to the well-being of communities across the globe.
1.0 SITUATION ANALYSIS

Digital consumers in the UK dedicate an average of 25 hours per week to online


activities (Petrosyan, 2023). Research indicates that 60% of the British population utilizes
the internet for purposes such as information retrieval, social networking, and news
consumption (Statista, 2022). Notably, Google emerges as the predominant search
engine of choice among users. (Figure1).

Figure 1: UK’s most used search engine (statcounter, 2024)

1.1 COMPETITOR ANALYSIS


Despite intense competition, Nestlé has effectively positioned itself in the market through strategic
initiatives. By adopting innovative accounting methods, Nestlé successfully reduced its cost of sales,
enabling the inclusion of allowances, discounts, and promotions for retailers within sales proceeds
rather than marketing expenses (Doganis, 2020). This approach, coupled with meticulous cost
management, enabled Nestlé to maintain competitiveness and achieve parity with its peers, solidifying
its status as a leading manufacturer in the face of formidable competition (Johnson & Smith, 2019).

Nestlé boasts a diverse portfolio of major consumer brands, including household names such as
Kit-Kat, Carnation, Nescafe, Stouffers, and Nestle Water, among others (Bhattacharya et al.,
2018). In 2010, a remarkable 30 of its brands surpassed $1 billion in earnings, solidifying
Nestlé's position as a powerhouse in the global food and beverage industry. With 42 percent of
its sales concentrated in North America, Nestlé exhibits exceptional geographical diversity,
offering a strategic advantage over competitors (Chakraborty & Sohal, 2017).
The company's well-established brands command significant market shares in key economies
such as the United States and Europe, further bolstering its competitive position. Notable
competitors like Unilever and Danone, also industry giants, present formidable challenges. In
2010, Unilever experienced a notable 26 percent growth in annual profits, driven by accelerated
sales in food and beverage categories such as frozen food, ice cream, tea-based beverages, and
cooking products (Gonzalez et al., 2019). Likewise, Danone reported a remarkable 38 percent
increase in earnings, fueled by heightened share prices and increased sales of yogurt products
(Smith & Johnson, 2020).

The following analysis shows the digital environment of Nestle in relation to its
competitors;

COMPANY WEBSITE
Nibbler score: 9.8
Accessibility: 9.9
Marketing: 10
Technology: 9.7
62 average
words per
page

Nibbler score: 8.9


www.unilever.co.uk
Accessibility: 9.9
Marketing: 5.9
Technology: 9.1
746 average
words per
page
www.mondelezinternational.com Nibbler score: 8.9
Accessibility: 9.7
Marketing: 9.5
Technology: 8.7
563 average
words per
page

Nibbler score: 8.9


www.pzcussons.com Accessibility: 10
Marketing: 6.1
Technology: 9.1
10 average
words per
page

Figure 1: March 2024 Website Analysis (Data Source: nibbler.insites.com)

Company
Likes Followers Followers Followers

11M 433K 287K 28.2K


3.9M 216k 239.5k 1.4K

293.5K 77.9K 33.2K 162.5K

9K 3.7K 3.2K 2.4K

Figure 2: Social Media Platform Analysis (Data Source: All respective social media
pages.)

Figure 2: Various deals available through Milo rewards (Milo, 2023)


SWOT Analysis of Nestle

The following is the SWOT analysis of Nestle:

Strengths:

1. Brand Recognition: Nestlé is a globally recognized brand with a strong presence


in various sectors such as food and beverage, healthcare, and nutrition. This
recognition provides a solid foundation for its social media and digital marketing
efforts.

2. Diverse Product Portfolio: Nestlé offers a wide range of products catering to


different consumer needs and preferences. This diversity allows for targeted
marketing campaigns across various social media platforms and digital channels.

3. Engagement with Consumers: Nestlé actively engages with its consumers on


social media platforms, responding to queries, addressing concerns, and
soliciting feedback. This direct interaction helps in building trust and loyalty
among its customer base.

4. Innovative Campaigns: Nestlé has a history of launching innovative marketing


campaigns that resonate with consumers. Leveraging digital platforms allows
Nestlé to create interactive and engaging campaigns that drive brand awareness
and sales.

Weaknesses:

1. Compliance and Regulation: The food and beverage industry is heavily regulated,
especially concerning advertising and marketing. Nestlé must navigate these
regulations carefully to ensure compliance, which can sometimes limit the
creativity and flexibility of its digital marketing campaigns.

2. Negative Public Perception: Nestlé has faced criticism in the past regarding its
business practices, such as water bottling controversies and concerns about
product ingredients. This negative perception can sometimes hinder the
effectiveness of its social media and digital marketing efforts.

3. Competition: The food and beverage industry is highly competitive, with


numerous brands vying for consumer attention. Nestlé faces competition from
both established players and emerging brands, which can make it challenging to
stand out in the crowded digital space.

Opportunities:

1. Emerging Markets: There is significant growth potential for Nestlé in emerging


markets, where increasing disposable incomes and changing consumer
preferences present opportunities for expansion. Digital marketing can be
instrumental in reaching these new audiences effectively.

2. Data Analytics: The proliferation of digital technologies provides Nestlé with vast
amounts of data on consumer behavior and preferences. By leveraging advanced
analytics and AI tools, Nestlé can gain valuable insights to tailor its marketing
efforts and improve ROI.

3. E-commerce Growth: The growth of e-commerce presents opportunities for


Nestlé to reach consumers directly through online channels. By integrating its
social media and digital marketing strategies with e-commerce platforms, Nestlé
can enhance its online presence and drive sales.

Threats:

1. Changing Consumer Trends: Consumer preferences and trends can change


rapidly, posing a threat to Nestlé's marketing efforts if it fails to adapt quickly.
Keeping abreast of changing consumer behavior and preferences is crucial to
maintaining relevance in the digital space.

2. Data Privacy Concerns: Heightened concerns about data privacy and security can
impact Nestlé's ability to collect and utilize consumer data for targeted
marketing. Stricter regulations and consumer backlash against data misuse could
limit the effectiveness of its digital marketing strategies.

3. Emergence of Disruptive Technologies: The rapid pace of technological


innovation means that new platforms and tools can emerge, disrupting the digital
marketing landscape. Nestlé must stay ahead of these developments to remain
competitive and ensure its marketing strategies remain effective.

By addressing these factors in its social media and digital marketing strategies, Nestlé
can capitalize on its strengths, mitigate weaknesses, leverage opportunities, and
navigate potential threats more effectively.
2.0 Smart Objectives

 Increase brand awareness and engagement across digital platforms by 20%

The situational analysis shows that Facebook is the most engaging application and
Nestle has many followers. To take advantage of the popularity in Facebook and to gain
consumer attraction in Instagram, the objective is to increase followers of Facebook and
Instagram by 20% during Q2 and Q3 2024, which is 13.2M and 519.3K respectively.

 Generate a 15% increase in online sales within the next fiscal year

With Nestle having the upper leverage on social media, all social media platform will be
weaponize to generate 15% increase in sales. With previous online sales amount to
90billion naira. Through this initiative the online sale is expected to rose to 103.5billion.

 Enhance customer satisfaction by 25% through improved digital interactions


Nestle engagement on all social platform is massive statically speaking based on
nibbler.insites.com, Nestle has the below rating:

Nibbler score: 9.8


Accessibility: 9.9
Marketing: 10
Technology: 9.7

Increasing this to 25% will foster the improvement, interaction and engagement on the
digital platform of Nestle and also improve the quality time of consumer spend on the
sites. This gives them the opportunity to explore more product and also drive sales.
3.0 Strategy

3.1 Market segmentation refers to the process of dividing a market into distinct
groups of individuals with shared characteristics and preferences. These groups are
targeted based on various factors such as demographics, geography, psychographics,
and behavior.

Demographic factors commonly used in market segmentation include age, gender,


income, and education level. Geographical considerations encompass regional
differences in climate, culture, and lifestyle. Psychographic factors delve into attitudes,
values, interests, and lifestyle choices. Behavioral segmentation focuses on consumer
purchasing behavior, knowledge, and brand loyalty.

Nestlé employs a strategic approach to market segmentation, leveraging geographical,


demographic, psychographic, and behavioral factors to effectively target and serve
diverse consumer segments.

1. Geographical Segmentation: Nestlé tailors its marketing efforts based on


regional preferences and environmental factors. For example, the company
customizes its Nescafe ice products for warm, cold, or hot climates, considering
both urban and rural areas.
2. Demographic Segmentation: Nestlé categorizes consumers based on age,
gender, income, and educational background. This allows the company to offer a
diverse range of products tailored to specific demographic groups. For instance,
Nestlé offers Milo for youngsters and coffee for adults, catering to varying
preferences and needs.
3. Psychographic Segmentation: Nestlé segments consumers based on
personality traits, values, and lifestyle choices. For instance, Kit Kat is positioned
as a treat for those who seek indulgence, while Nescafe 3 in 1 target busy
individual who prioritize convenience.
4. Behavioral Segmentation: Nestlé's marketing strategy is informed by consumer
behavior, including knowledge, attitudes, and purchase patterns. By
understanding consumer preferences and purchase motivations, Nestlé can
develop targeted marketing campaigns and product offerings.

Moving beyond segmentation, Nestlé employs differentiated marketing strategies to


effectively target and serve specific consumer segments:

 Differentiated Marketing: Nestlé offers a diverse range of products tailored to


different consumer segments based on factors such as age, profession, gender,
and seasonal preferences. For example, Nescafe 3 in 1 target busy individual,
while Koko Krunch cereal appeals to those craving real chocolate.
 Concentrated Marketing: Nestlé focuses its marketing efforts on niche markets
where it has a strong competitive advantage. For example, the company
specializes in producing infant meals, leveraging its expertise to cater to the
unique needs of this consumer segment.

In terms of positioning, Nestlé differentiates its products through various means:

 Product Differentiation: Nestlé offers a wide array of products catering to


different consumer needs and preferences. For example, the company offers
around 25 variants of Nido for children, as well as cereals and lactogen for
infants.
 Channel Differentiation: Nestlé ensures its products are easily accessible to
consumers through professional salespeople and secure transportation channels.
 Image Differentiation: Nestlé's distinctive branding and logo set it apart from
competitors, enhancing brand recognition and consumer trust.
 Differentiation in service: The Nestlé corporation provides 24-hour support
lines so that clients may readily reach out to them with difficulties or questions
Figure 3: Buyer Persona ( Decision Marker)
Figure 4: Buyer persona (Time Saver)

Buyer persona (Milo Lover)


Figure 5: Online Digital Marketplace Map

There is a mind map about Nestlé market segmentation, targeting, and positioning

Nestle Market Segment


3.4 The Big Idea
The proposed initiative will center on the theme "Energizing the Future," aligning with
the upcoming national Beverage Day celebrated annually on May 6, 2024. The goal is to
boost brand awareness and engagement across digital platforms by 20%, increase
online sales by 15% within the next fiscal year, and enhance customer satisfaction by
25% through enhanced digital interactions.

This concept will be encapsulated by the slogan "Cup of Energy," which will be
prominently featured across all of Nestlé's digital channels. The event will be structured
as an online festival, leveraging the national Beverage Day as a focal point. "Energizing
the Future" will serve as an educational platform, offering insights into various aspects
of beverages, including historical significance, sourcing methods, preparation
techniques, and Nestlé's product offerings.

The initiative will employ a range of tactics to engage the audience, including a "Did you
Know Series," influencer marketing partnerships, competitions contest, and targeted
advertising campaigns. These strategies will be deployed strategically to maximize
reach, drive engagement, and foster a deeper connection with consumers.
4.0 Tactics
RACE is a practical planning framework for marketing. It gives marketers a more
structured way of planning and managing their activities. Developed by Smart Insights’
Dave Chaffey, it’s also an acronym for the 4 stages of the marketing funnel: Reach, Act,
Convert, and Engage.
For the purposes of our discussion, we’ll talk about RACE with a focus on digital
marketing strategy. However, note that RACE wasn’t designed solely for that.

4.1 Did you Know Series

In the fast-paced realm of digital marketing, standing out is key. Did You Know mode
and moments offer a unique way to engage customers with bite-sized, informative
content that sparks curiosity and conversation.

Figure 6: Did you know series


4.2 Influencer Marketing:
Influencer marketing entails a partnership between well-known social media
personalities and brands to endorse products or services. As part of this strategy,
influencers will receive branded merchandise, such as t-shirts, mugs, and reusable cups
featuring the tagline "Cup of Energy," to incorporate into their content.
To generate excitement for the Energizing the Future festival and provide insight into its
offerings, influencers will regularly share details about the event on their social media
platforms. Additionally, influencers will participate in a beverage tasting session hosted
by Nestlé's master roaster, further engaging their audience and promoting the brand's
products.

Figure 7: Influencer Image


Influencer Analysis

4.3 Competition
Hosting a contest presents an effective method to raise awareness of a product or
brand. Utilizing platforms like Nestlé's Facebook page with built-in sharing features
encourages contestants to spread the word among their social circles. As awareness
grows and subscriber numbers increase, the natural progression is towards boosting
sales. Contests serve as a means to convert leads into loyal customers, particularly for
contest winners who have experienced the product firsthand. Offering the product as a
prize rather than an unrelated item like an iPad increases the likelihood of winners
becoming repeat customers if the product meets their expectations.

Figure 8: Contest Competition Packages

4.4 Advertising Campaign This display ad concept is tailored to Nestlé's target demographic:
beverage enthusiasts residing in both urban and rural areas, aged 22 to 60. The ad aims to
captivate attention with a visually striking image of a steaming cup of Milo, emphasizing the
irresistible flavor of Nestlé Milo.

Ad Title: Celebrate national Beverage Day with Nestlé's "Energizing the Future" Festival

Ad Copy: Embrace the spirit of national Beverage Day with Nestlé! Dive into a world of flavor
with our "Cup of Energy" and join us online on May 6, 2024, for an unforgettable celebration.
Discover our exclusive Beverage flavor, engage in thrilling games and contests, and seize the
chance to win fantastic prizes! Don't miss out on the excitement – be part of the festivities with
Nestlé!

Ad Visual: The ad will feature a vibrant and captivating image showcasing a variety of Milo
products arranged in a festive display, prominently featuring the Nestlé logo.
Figure 9: (Ads Image)

5.0 Action Plan


Key action plans have been created alongside expected duration of completion to
ensure the seamless delivery of the Nestle big idea.
Figure 10: Grant Chart

The action plan will kick off with the did you know series, with exciting content about
milo to engage on starting from Feb. follow by the signing of influencer with a huge
number of follows to back up the campaign with followership, promotion activities will
start in March till May before every activity is ended on the part of influencer.

Lunching of competition will also start in February where by online user will compete for
a prize and raffle winner will be pick by May.

Billboard will be mounted in strategic area targeting it audience with nice picture quality
and caption to catch the eye of its audience.

6.0 Control

The final stage of the SOSTAC model for Nestlé's social media and digital marketing plan
involves "Control" or "Control and Feedback." In this stage, Nestlé will monitor and
evaluate the performance of its digital marketing efforts to ensure they align with the
objectives set in the earlier stages and make necessary adjustments for improvement.
Here's how Nestlé can execute the Control stage:

1. Key Performance Indicators (KPIs): Define and measure relevant KPIs such as
engagement rates, reach, conversion rates, website traffic, sales figures, customer
satisfaction scores, and brand sentiment. These metrics will help Nestlé assess the
effectiveness of its digital marketing activities and track progress towards achieving its
objectives.

2. Analytics and Reporting: Utilize digital analytics tools to gather data on the
performance of various digital marketing channels and campaigns. Analyze the data
regularly to identify trends, patterns, and areas for improvement. Generate
comprehensive reports to provide insights into the effectiveness of different strategies
and tactics.

3. Regular Review Meetings: Hold regular review meetings with the digital marketing
team and relevant stakeholders to discuss performance metrics, review campaign results,
and evaluate the overall effectiveness of the digital marketing plan. Use these meetings
to identify successes, challenges, and opportunities for optimization.

4. Benchmarking: Compare Nestlé's digital marketing performance against industry


benchmarks and competitors to gain perspective on its relative position in the market.
Benchmarking can help identify areas where Nestlé is excelling and areas where there is
room for improvement.

5. Feedback Mechanisms: Solicit feedback from customers, stakeholders, and internal


teams to gain insights into their experiences with Nestlé's digital marketing efforts. Use
surveys, social media listening tools, and customer reviews to gather feedback and
identify areas for enhancement.

7.0 Limitation and Conclusion

The major limitations identified in this study is the daily changing data of the analysis
done in the competitor section. In conclusion, Nestlé has demonstrated a commitment
to leveraging digital marketing and social media to enhance brand visibility, engage
consumers, and drive sales. The company has utilized a multi-channel approach,
spanning websites, e-commerce platforms, social media channels, mobile apps, and
more, to connect with consumers across various touchpoints.
Nestlé's digital marketing and social media efforts have enabled the company to reach
wider audiences, foster deeper relationships with consumers, and adapt to the evolving
preferences and behaviors of modern consumers. By creating relevant, engaging
content and embracing transparency, authenticity, and sustainability, Nestlé has sought
to resonate with its target audience and differentiate itself in a highly competitive digital
landscape.
Despite facing challenges such as regulatory restrictions, brand perception issues, and
algorithm changes, Nestlé continues to innovate and evolve its digital marketing
strategies. The company's ongoing focus on monitoring, evaluating, and optimizing its
digital initiatives ensures that it remains agile and responsive to market dynamics and
consumer feedback.
Looking ahead, Nestlé is poised to further capitalize on emerging trends and
technologies in digital marketing and social media, while maintaining a strong
commitment to ethical and responsible marketing practices. By staying attuned to
consumer preferences, embracing innovation, and adapting to changing market
conditions, Nestlé is well-positioned to drive continued growth and success in the
digital age.

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