Nestlé industry

Nestl industryExecutive SummaryNestl is the intumescentst intellectual nourishment and beverage industry in the world. Its r plain upue in million in 2008 were 89,630.00, they employ over 276000 commonwealth around the world. ( world(prenominal) euchre) Their goals atomic subroutine 18 to produce good, healthy, and peppery regimens which ar consisted of meaning(a) nutrients. (Nestl mho Africa) These features feign Nestl a unique business which wages by whirl harvest-times which gives satis itemions to whole customers.After we skimmed through the Fortune 500 run of the companies, in that respect were a lot of choices of well known companies, however, we picked up Nestl Corporation. Since we baffle up with Nestls results which ar nutritional and healthy products, and at the like epoch very(prenominal) tasty, it retardmed interesting for us to do the project well-nigh this well known Corporation.The approximately primal issue liner our association today i s to accommodate the quality of our products and continue to maintain our strong speck name known for its healthy products. patronage Mission Vision t anyy to the instituteer of Nestl, Henri Nestl, Nestls mission is to positively exploit the social milieu in which we operate as responsible corporate citizens, with due complicate word for those environmental examples and societal aspirations which improve quality of life. Further more than, the vision and values of Nestl argon to make Nestl a widening, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products. (Nestl South Africa)Description of the BusinessThe address of corporate headquarters is Ave, Nestle 55 Vevey 1800, Switzerland.Nestl operates in 83 countries, in five continents. It has more than 509 factories out of which 220 are located in Europe, 153 in America, 136 in Africa O ceania (MARKETING PROCESS OF nuzzle CORPORATION) gibe to the official website of the Company, Nestl was organize by Henry Nestl in 1867. He was a pharmacist. In the number matchless he started to produce take out solid food for sassyborn babies, which was the first milk cereal for children. The caller was located in Switzerland, where the actual largest headquarter is located even today. Then, in short period the telephoner started to sire and expand, and likewise go a large manakin of products. Nowadays, the come with is a corporation which has nine-fold stockholders. Throughout its existence, Nestl has merged with some international companies. For example, in 1905 merged with a Anglo-Swiss milk company. (MARKETING PROCESS OF NESTLE CORPORATION) In 1998 Nestl purchased the UK largest coffee factory, accordingly it make some opposite agreements with some other companies. In 2002, Nestl do a partnership with Coca-Cola, indeed with General Mills, LOreal. These mer gers serve uped Nestl expand their martplace shares on the globose international securities industry. (Nestl.)The nock name of Nestl comes from Henries surname. It is a short name which fecal matter be easily remembered. It is a well known and everyone give the sack fall upon its logotype. The quality of Nestls products made the brand easily identified, including the slogan of the brand, effectual nourishment, Good Life. Since Nestl is a company which operates in the planetary market, it means that its products are spread worldwide and they are available whenever consumers need them.Nestl over the time has giveed and continues to maintain a strong reputation on the Food Industry. We consider that Nestl is on the stage of brand insistency. This means that costumers insist on getting Nestls products, and this is considered to be a big advantage for the company. (Nestl)The efficacious office of Nestl is a corporation, which is a business that includes stockholders. The main headquarter of Nestl is in Switzerland woodpecker Brabeck-Letmathe is the CEO. According to the orbicular 500, the stockholders equity is 46,006.2 million dollars. (Global 500) The board of directors represents the stockholder on managing the corporation.Nestl deals with manufacturing of products, indeed, its type of business is manufacturing. Nestl produces a evenhandedlyly similar group of soulfulness products. Its products are produced on similar ways, they endure fairly similar prices, which make up a great product line. They produce milk and chocolate products, water, baby food, coffee, and so on. Since Nestl is a huge corporate, they produce on large amounts. We know that when a product is being produced in large amount, its performance costs are cut back, comparing to products produced on small amounts, thus these measlyer labor costs exacts Nestl to bring its products on the market with fair prices, from which the consumers r to each one directly. Furthermo re, they habit a end product program which includes green engineering science (environmental cozy technology) that saves electricity, does non pollute the air which leads to consumers benefits.They sell different types of chocolates, ice creams, coffees, indispensable water, baby food, flavored milks, etc. Some of the products offered from Nestl are NESCAF, NESQUIK, Hot Chocolate, Cocoa, Chocolates, AEROBAR whizzChocolate AssortmentsCHOCOLATE LOGCLASSIC SlabsCRISPCRUNCHbaking hot ChocolateKIT KATTEXMILKY BARMILONestl aureateROLOSMARTIESSUCROSE FREEPowdered Milk, Nutren ShakesConvalescing MalnourishmentDiabetes SupplementsCritical CareNestl botch up Foods, CERELAC GoldCERELACNESTUMInfant FormulaNestl Waters, Still SparklingFlavouredWater DispensersImports scum Cream, ImpulseTake HomeOut of HomeNestl Cereals, and so on.Consumers whitethorn benefit in different ways from bargain foring Nestls products. From the consumers token of have, when we decide to deal something to eat or drink, we want to get the approximately satisfaction from it. Thus, we look at its price first, then its ingredients, if it is nutritious, if it is tasty, and healthy. Since Nestls company objective is to produce healthy, tasty, nutritious food, and they offer them at reasonable prices, we adjudicate that consumers benefit by buying Nestl products.Nestls products are considered as high gear quality products. Furthermore the raw material for example for chocolate, milk is purchased provided from the milk producers who grow and give food to their cows in intrinsic ways.All Nestl products are prayed, beca subroutine Nestl first makes research and market analysis then starts to produce its products. But still chocolate products are the most demanded products from Nestl.In companionship for Nestl to grow and expand its market share is to fol utter up and to adapt to the current trim downs that are affecting the food industry. For example, the inclination of customers dem anding pocket-size and no fat products is increasing, and if Nestl develops a strategy to adapt and expand production of low and no fat products, this would be a development opportunity. Franchising is behold as a way for companies to expand on other markets. In our event, this in addition would be a growth opportunity, however, they should supervise and control and see if the franchisee is maintaining the quality standards that the Nestl Company sets to them. Also Nestl officials should make sure that the franchisees are maintaining the prestige and the reputation of the brand.The corporate goals and objectives are to maximize their profits. They track down to discover this by meeting consumers demand, by offering nutritional products which taste good, coping up with trends. at that place are many an(prenominal) resources for producing products related to food industry. Nestls conquest is reliant on fresh milk, cocoa, sugar, water, power come forth, materials related pack aging, technology, transportation modes.Suppliers make up ones mind success when there is a huge demand for their products, while the stakeholders restore success if they achieve to increase the market shares, having enough resources to meet the demand, and maximize profits by increasing sales.Market AnalysisNestls original target is considered to be volume of all ages. In this range there are include infants, children, teenagers, adults, and elderly slew. If we take age into consideration, we conclude that it is a factor that distinguishes the consumers, since Nestls has products made especially for infants, while on the other hand we have other products which are targeted to athletes, or to adults, such(prenominal) as coffee. Despite of the age, gender, income, and education level are non factors to be included in targeting Nestl consumers. There is non a special product of Nestl which is employ to males or females, or to people with different levels of education, while w hen it comes to income, since our products are not expensive, we dont consider income a factor to target Nestls products.From the consumers point of view, we cook Nestl as a successful company if they meet our demands, they ever supply us with parvenue products, we find Nestls products easily and with a fair price. Also, a factor of Nestls success would be seen if they are certified of social responsibility meaning that they should care more for the benefits of the society as a whole and not just now for companies profits.In general, the food industry is in the level of steady market that does not necessarily grow since people always use food products because they are necessity goods which no one can substitute them with something else. Furthermore, even if Nestl is always bringing new products on the market, since the population is still growing, we cannot say that it is being placed on the growing level.SWOT analysisStrengths Nestl has a very organized structure, it manages to lead in an effective way more than 276 000 employees and that requires great organizational skills. Thus, one of the strengths of the company is considered to be the organizational structure, Nestl is divided in spheres and each sphere of mould has their CEOs, then it has the executive board and in the top is the CEO. The hierarchy on Nestl works perfectly. Efficient chain of supply, it delivers its products in a good narrow down in a fast way. Furthermore, it is a Socially Responsibility and advanced(a) company. It has skilled and educated employees.Weaknesses Since Nestl develops many products, it is impossible to promote each of them. some other weakness is that Nestls products are dependable on milk, any world(a) disease on cows may relate directly on Nestls production.Opportunities Nestl has many growth opportunities which are considered to be current trends that waive the company to extend its market. If Nestl catches up with some of the trends that are affecting f ood industry then it may be an opportunity to increase their profits.Threats As a threat that intimidates the company may be the current global economic crises. Nestl has to react fast with a strategy in order to pass the world recession without many losses. It may overturn into a disaster for the company if they ignore what is happening in the global economy. other threat is competitions operations.PEST analysisPolitical The government plays a enjoyment on Nestle in terms of the rules that the government makes related to the food industry in general. For example failing to meet any standard of quality, hygiene or other set by the government may result in some sanction or fee for the company.stinting When it is nigh economics, companies always fear any recession that may occur. So if any recession occurs Nestle get out be affected, and result in possible losses. Another way of economic involvement is the tax rises which as well interrelated to the Political (government regul ations). However if the economy is doing well it means that alike Nestle expectations are to do well on the market too, because it has the necessity conditions.Social Change of life styles, income level, place of residence, education level are some social factors, which might have an shape in a company. But when it comes to food industry they doesnt make a huge difference, because food is a necessity and whether you live in urban or homespun areas, or whether you are educated or not, you need to eat unless it is a luxury, and most of the Nestle products are for everyday use or necessity. expert Techno logical advancements always shape the industries change the way they are produced, and makes industries much(prenominal) more productive, only when also the need for employees is lower. With the new technologies productivity has increased, the slant of products is easier products are being safer with the new packaging. Another segment related to technology is that the adverti sement of Nestle products is much easier with internet, other media channels.Nestl uses market segmentation in order to develop a suitable market mixes for different consumers. For example, they segment market for only water consumers or products which are dedicated only for athletes. First step of market segmentation is to name broad product markets, for example, in the cutting of Nestl would be beverage and then as state earlier segment this market on only a comparatively homogeneous group of consumers, such as athletes.According to Fortune 500 the five most influential competitors of Nestl are considered to be Unilever, PepsiCo, Sara Lee, Groupe Danone, ConAgra Foods. However, Nestl has advantages over these crabbed competitors since it is a larger company and can produce with lower cost, thus the products can be offered with lower price, this can be seen as a weakness of these companies over Nestl. They, offer fairly similar products as Nestl does. They also use many advertis ement tools such as, TV, radio, news paper and so forth, some of them also use direct advertisement against Nestl, for example PepsiCo. According to the research that we have done Nestl maintains to be ahead of these companies, so they are not taking market shares from Nestl.In order to increase its market shares, Nestl Corporation must continue to develop new products, to spread even more on the countries that do not have factories. It must mete out up with trends and forces that are affecting food industry today.The promotional reckon of Nestl is set every year. Nestl for its products uses all known promotional tools. Nestls logo placed in a product makes Nestl responsible for the quality of the product. advertizement plan has an authorized role on promoting Nestls products therefore, advertising a product in an effective way increases chances for that product to be successful. They use many advertisement techniques to promote their products such as TV, Radio, Internet, pertl yspapers, and Magazines. (MARKETING PROCESS OF NESTLE CORPORATION) Beside advertisement, Nestl pays a lot of attention on the Public Relations field. They have a 24 hours media helpline so that journalists can contact them and inquire study whenever they want. Also, Nestl has developed a reputation and maintains that reputation through a variety of public relations strategy. The department of PR in Nestl tends to maintain a good relationship among employees and develop good depart. They have developed or brand their CEO in a very professional matter and made him well known also developed its reputation worldwide. Because of their reputation when they can easily contact media to make announcements or Press Releases.According to Nestl set strategy, Nestl has its own set of techniques for setting the prices of the product. It does not primarily instruction on the competitors pricing strategies. It emphasizes on the market demand of the product. Nowadays market is personnel casualty through tough recession, so they set their prices keeping in view the purchasing power of the customers. Moreover the prices of the products are also subjected to the type of consumer product. If the product is a daily use then it can have a minimum price to attract the customer towards your product. Thus the company cannot influence much on the prices. (MARKETING PROCESS OF NESTLE CORPORATION)Trend 1 tread 1 State the focal issue or ratiocination facing the enterprise.When a customer want to buy a product he goes through a decision process in order to remove between so many offers from different producers for the alike product. Now when it comes to the food industry products, there are so many indicators that affect a persons decision. If it is farm friendly than it is an important factor that affects the decision of the buyers. Buyers pass on always choose the products that are consistent of organic and instinctive ingredients. In our slip-up Nestls most important materials that purchases are milk and cocoa. And it is very important that Nestl purchases organic and born(p) milk and cocoa for the production of its products. gradation 2 nominate the key factors that influence this decision.Certainly success leave be considered that all of our raw materials (milk and cocoa) to be purchased from the farm-friendly sources. When we sell our products we also put the farm-friendly scar on it than customers bequeath differentiate our products not only with our brand name, Nestl, moreover also with its farm-friendly sign. Whereas trouble would be considered if we fail to purchase organic and cancel milk and cocoa. Whether it is because we cannot afford to buy them or nobody produces organic and natural milk, it still would be considered failure to us.In order to purchase the organic and natural sources, we need to know our suppliers. Where are their farms located, are there able hygiene sources, check for possible diseases that cows may have and also so me other issues that would affect the milk quality. trample 3 List the driving forces that influence these key factorsPredictablePeople will elusion to the products that are farm-friendly (natural organic).Nestl will increase the profit.Nestls brand name will become stronger. improver in the number of farmers who offer farm-friendly productsLess certainOther food industries will use the akin strategy. lavishlyer competition. extremely uncertainCustomers will reject the farm-friendly products.The number of farm-friendly farmers will abate.Step 4 Rank the key factors and driving forces by splendour and by uncertainty.Step 5 Compose plots for alternate futures that could impact the decision. best award ScenarioThe best(p) case scenario would be if our customers like the products that produce by the organic and natural ingredients. And if this happens, customers shift their demand to these kinds of products, and certainly we will have to shift all of our sources in the producti on of these products. Furthermore we will grow our market because our brand name will be stronger and we expect a market growth for Nestl.Worst sheath ScenarioThe flog case scenario would be if customers reject the farm-friendly products. And all of our production will be a loss for our company. Therefore we will lose our market shares not only for these kinds of products but also for other products produced by Nestl. And this will lead to the weakening of our brand name.In-between case ScenarioThe in-between case scenario would be if people will buy the organic and natural products but there wouldnt be any raise in the market shares or any change in the demand for Nestl products.Step 6 Evaluate the decision in each of the postulated scenarios.Best Case ScenarioWe have to make the decision of producing our products with organic and natural ingredients because customers always tend to buy products that are natural and organic. And also products with natural and organic ingredients are much healthier and tastier too, so we will provide healthier and tastier products. By using this farm-friendly strategy of production we will affect also in the raise of the number of farmers in the rural areas.Worst Case ScenarioIf the worst case scenario occurs than Nestl will for sure face losses in the market shares and in other sectors of the company too.In-between case ScenarioWith the in-between case scenario occurrence Nestl will probably face some losses in some of its sectors, but it will be easier to rehab in a scrawny future.Step 7 Select indicators and signposts for each scenario.Best Case ScenarioThere will a huge demand for the products with organic and natural ingredients.Increase the market shares.Increase in profit.Worst Case ScenarioRejection of farm-friendly products by customers.High production costs.Loose the market shares.In-between case ScenarioCompetition.The market shares status steady.Trend 2Recently Nestl has merged with the Krafts Food Company so th ey will start to offer crisp pizzas. Since it is easy for people to constitute polar products, it is considered that this trend will have positive effects on Nestls profits.Step 1. State the focal issue or decision facing the enterprise.A lot of consumers are interested on stock-still products because it is easy to prepare them. If a person can prepare a Pizza for 5 minutes by putting it on Microwave, then they will buy it. The focused target for this products will be people who work and do not have enough time for preparing food. Also, the fact that Nestls slogan is Good Food, Good Health, it is obvious that the crisp pizzas will be healthy, nutritious and they tasty, therefore, there will be a demand for them.Step 2. List the key factors that influence this decision.In order to achieve this goal, which is to be successful in crisp food industry, we must get information from other food industries which deal with frozen products. We will drive information which we will analyz e, and according to them we will come up with our products. An important factor that influences us to this decision is the name of our company (Nestl), which is a herculean name on the food and beverage industry. People will buy our products more when they realize that Nestl is the producer, thus they will increase the demand for the frozen pizzaso There will be a success if with this trend we increase the production and the profit to Nestl.o There will be a failure if the target market will not give birth our new products. If they do so, we have to start developing a new trend.Conditions/Events determining the success/failureo Success If the trend increases the profit and bring success of Nestl If consumers accept our products and get satisfaction from it If the demand of our frozen products will be higher than the demand for our competitors products.o Failure If this trend will bring losses to our company If frozen products will not be demanded by our target marketCritical assump tions defining the logic of these responseso The competition on the food and drink industries nowadays is very large. In order to keep our clients and gain new ones, we must develop the frozen products on the market. Therefore, Nestl will be differentiated from other companies and will gain success by this trend.Step 3. List the driving forces that influence these key factors.Highly Predetermined/Predictableo An increase of people who consume frozen productso Increase companies profito New production technologyLess Predictableo A decrease of unemployment rate on rural areaso Market Sizeo Increase of employees incomeo Competitive advantage of Nestlo Higher production costsStep 4. Rank the key factors and driving forces by importance and by uncertainty.Step 5. Compose plots for alternate futures that could impact the decision.Best Case ScenarioIf we will be concentrated on frozen products, the demand for our frozen products and the profit of Nestl will be higher.In- in the midst of Ou tcomesThe trend of frozen products will keep things going almost on the same direction, but with a lower profit and production.Worst Case ScenarioIf we will not go through the strategy of our trend, our market size would be decreased and we will no more have competitive advantage. No one would buy frozen products with a high price if they find almost the same product with a lower price.Step 6. Evaluate the decision in each of the postulated scenarios.Best Case ScenarioWe should make this decision because it is a reasonable decision. First of all, the demand for frozen products is higher. Nowadays, most of the people are work and they need products which they can prepare quickly. By informing people about our trend which is Nestls Frozen Products, we will change the peoples behavior so the demand for our frozen products will increase even more.In BetweenOn this case, the things will diverge a little from the best case, but we are sure that they will not get very bad. This is not a d ecision which brings us high profits, but it will help us to avoid failure.Worst Case ScenarioIf we take this scenario, we will face loses for sure. This is obvious that by having a high production cost, the price will increase, which would keep us away from clients.Step 7. Select indicators and signposts for each scenario.Best Case ScenarioDemand for our productsNumber of clients is highProfit is highIn BetweenThe demand for frozen pizzas only (not necessarily other frozen products)Worst Case ScenarioHigh production costsSmall number of clientsMany competitorsSummaryDuring the completion of the project we have done a lot of research to find proper information for each sector of the project assigned to us. We tried to work together on each sector in order to make the project more cohesive. We found very interesting information about Nestl and how a big company should operate. We used the terminology and concepts learned through the quarter in the Global Forces and Trends course. Dur ing the completion of the project we found out that Nestl is a very dangerous company, each department of Nestl has its own responsibilities and it is very well organized. It is important for Nestl to stick to forces and trends that are affecting the food industry nowadays. It is essential for the company to maintain its market shares and its position in the global market through following(a) the current trends such as low and no fat products, use of green technology, farm friendly (use of organic and natural sources), healthy and tasty drinks, frozen products and so on. We could expand our knowledge if continue to do more research and explore the company even in more details.BibliographyGlobal 500. CNN Money. CNN, 01 Jan. 2009. Web. 8 Feb. 2010. .MARKETING PROCESS OF NESTLE CORPORATION. Http//www.scribd.com. Nestle Corporation, 29 whitethorn 2009. Web. 8 Feb. 2010. .Nestl. Nestl Corporation, n.d. Web. 8 Feb. 2010. .Nestl South Africa. Nestl Corporation, n.d. Web. 8 Feb. 2010. .S cenarios from HomeworkArianit BllacaTrend gloomy and no-fat productsStep1 TrendThe food industry is a very competitive market and companies are trying to adapt to changes of customer tastes, attitudes, beliefs in order to childs play as much market shares as they can. Nestle is one of the most important brand on food industry that deals mainly with producing products such as chocolate, ice creams, beverage and so forth. Although, it is a leading company on this industry it has a very strong competitors. Nowadays many people are concentrating on buying products that have very low or no fat at all. Until now Nestle products had on average amount also included fat. The key issue is whether we as a company should shift our production on products with low and no fat? Or, perhaps give no importance to this trend and focus on other potential trends with higher importance?Step2 Key Factors that influence the decisionIn order to have clearer picture of the problem and wee a strategy on th is issue, we need to have more information on the impact and importance of this trend on our company. We should do main(a) market research in order to create alternatives for solving the problem. If the results demo that there is enough evidence that the trend will impact the market in wide range then we should go on with the decision.o If the companys decision to increase the production of the products that have low or no fat increases market shares, this would be considered as a success. It is also important that the shift of production in this direction will not impact on the cost of producing these types of products the cost is lower or approximately the same as previous.o Failure is, if the decision for making more products with low or no fat essentially depreciates our customers base. The customers do not move positively and do not appreciate the change.Conditions/Events determining the success/failureo Success The decision increases profit. The changes made by the company lead to more market shares. The actual customers like our new products. We are comprehend as shapers of the market. We wider our customers base.o Failure If our market shares drop significantly. The products do not taste as delicious as previous ones. The actual customers perceive it as an unnecessary move. We cannot attract new customers.