Having known this fact, the company is now focusing on innovation and launching new products in categories such as milk and nutrition, chocolate and confectionery, coffee and beverages, and dairy. Production lines of Nestle manufacture medicated food, baby food, water containers, breakfast cereals, tea, coffee, bakery products, dairy items, ice cream, freeze food, snacks and also pet animal food. According to him, market penetration and market share are driven by actual consumption of products, not just by increasing value through prices. Chocolate manufacturers are extensively promoting the health benefits of cocoa and dark chocolate and combining them with fruits, nuts etc. Changes primarily occur due to changes in environment, technology or changes in customer requirements Grable, 2010. Rising prices of raw materials Strengths 1. The company has well understood the concept that consumers changing attitude has immense importance.
Social Factors The shared thoughts and beliefs of the customers influence the business operations. This would not only guarantee conformance with requisite legislation but would also ensure that quality is maintained and adhered to across the entire supply chain. Obviously, Nestlé continued its succeed by a step into the chocolate industry. Brands include: Pure Life, S. It has a number of brands under its umbrella like Maggi, Kit Kat, Nescafe, Vittel and Nespresso.
Nestle market its products by advertising, word of mouth and many other promotional campaigns and packages. In 2014, Nestlé recalled and destroyed 37,000 tons of contaminated Maggi noodles in India. Return on Investment The company is providing help the clients to provide their products and it has invested some amount on different services. Brand loyalty and brand recall of Nestle is extremely high for the brand Weaknesses 1. In its consumer goods business, Nestlé is hugely dependent upon customer satisfaction and desirability of its products to achieve success.
Nestlé Asian head claims that it could take 3 years for the company to recover in this market segment. Fortune Global 500 ranked Nestle on 11th positioning 2014, while Forbes Global 2000 list public companies gave Nestle 33rd rank in the world. Personal Interview — 28th November, 2012: Responsible for European Affairs, Nestlé. Economically speaking, the effect of the global economic meltdown has had a less impact in food processing industry than in other industries due to its rising demand for convenience food and ready to serve products. Nestle so far has considered the social perspective well. The report aims to evaluate the strategic management of Nestlé Company by understanding their strategic intent for the business organisation. Bagaining power of Buyers 8 4.
This has been done by analysing the internal and external environment of the business that can offer significant opportunity or hinder the performance by presenting threats. The food brand keeps in mind the different sections of people and their requirements before launching of their food products. The products of this brand have great quality and they are getting popular among its clients. It is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes. Nestlé could start sourcing all of its materials from sustainably grown plantations and farms. Food processing industries include the following: cannery, meat processing, food packaging etc.
Nestle should focus on these political dynamics like taxation, import export excise duties, government permission to enter in to the target segment and also to introduce hygiene products allowed by the regulated bodies. Threat of new entrants 3. Geographic Presence and Distribution Channels: Nestle has activities in more than 100 nations of the world and has far reaching channel over the globe that backings its tasks over the world. Social factors As a producer of finished consumer goods, Nestlé is hugely dependent upon customer satisfaction and desirability of its product range to achieve success Jones, 2012. The organization is acclaimed over the globe and has a decent notoriety, or, in other words by day.
In September 1867, in Vevey. It had to follow different political changes occurring in developing nations. Additionally, they can be involved in partnerships with other multinationals such as the Coca Cola Company to create new products as well. It operates in approximately 500 factories in 83 countries and employ over 230,000 people. Food industry demands a lot of efforts to penetrate exactly in the targeted population. Although in Australia, they operate separately, Mars is Mars- responsible for chocolate and Wrigley Company for sugar confectionary and gum range.
It is the most astronomically immense food company in the world quantified by revenues. The culture, life style, norms and values force Nestle to deliver the specific product to the right segment. This makes the company vulnerable to any sudden changes in consumer behavior. One major key segment in the food processing industry is the increasing growing market for organic food and health products. Economic factors The global business environment has recently been significantly hindered by economic setbacks due to downturn and global recession. The top issues include- food sector, labor, pet care, health and environment- unsurprisingly the areas where it has faced multiple controversies.
Stiff competition in all product segments Nestle Competition Competitors Below are the 7 main Nestle competitors : 1. Thus, there are many contracts between Nestlé and manufacturers, some of whom provides exclusive services for the company. Refrigerated foods were a successful and emerging market in Europe and many global food manufacturers began to target the U. Nestle is a global brand but the product has been produced locally in order to sustain the quality. List of Contents Pages Executive Summary 1 List of Contents 2 List of Figures and Tables 4 1. The company has a Direct and Indirect Coverage Scheme to tap the rural market and stay ahead of its competitors.