SWOT Analysis of Nestle

1. Case Analysis
Presented by
- Rahul
- Shivam
- Raj
- Faizal
Presented to:
Prof. Hitesh Manocha

2. Our presentation is about how Nestle is
rebuilding its brand name and market
segments. The presentation is made for the
purpose to present the strategies and other
factors that Nestle has implemented and the
recommendations to Nestle to regain its
market.

3.  1866-1905- Henri Nestle founded and built
its first product “Farine Lactée Henri Nestlé”.
 1905-1918- merged with the Anglo-Swiss
Condensed Milk Company produced Dairy
Products.
 1918-1938- introduction of chocolate by
Nestle
 1938-1944- Nescafe was introduced and the
company growth rose in the wartime
economy.

4.  1944-1975- merging with Maggi seasoning
and soups and other companies also merged
in. Introduced in India 1912.
 1975-1981- made second venture outside
food industry by acquiring Alcon Laboratories
Inc.
 1981-1995- launched a new round of
acquisition , the most important being
American food giant Carnation.

5.  1996-2002- Nestle merged with Dreyer’s for
U.S ice cream business and with Chef America
Inc.
 2003- present- enhancing Nestle's position
as one of the world market leaders in their
product category.

6. Nestle is dedicated to providing the best foods
to people throughout their day, throughout
their lives, throughout the world. With our
unique experience of anticipating consumers'
needs and creating solutions, Nestle
contributes to your wellbeing and enhances
your quality of life.

7.  To manufacture and market the Company's
products to create value that can be
sustained over the long term.
 Not in favor of short-term profit
 Consumer place their trust so needs and
wants of consumer be considered.
 Ensure that the highest standards are met
 Recruitment of the right people and
ongoing training and development are
crucial
 To maintain its commitment and respect
local laws in each of its markets.

8.  Suppliers
-Corporate member of National Minority
Supplier Development Council
-Large diversification in obtaining raw
materials
 Customers :- Consumer markets
 Competitors:- Amul, Unilever, etc

9.  Social and Cultural forces
-Technological Environment (competitive
advantage, clean environment)
-Economic environment (prosperity stage)
 Political & Legal forces
-Lawful environment (opposes unjustified
prohibitions and other discriminatory
measures)
-Demographic Environment (all age group,
especially children)

10.  Threats of New Entrants
 Threats of Substitute Products
 Bargaining Power of Supplier
 Bargaining Power of Buyer
 Intensity of Rivalry Among Competitors

11.  Localization amidst (surrounded)
globalization
 Global brand strategy :- Nescafe, Nestea,
Taster Choice, Nesquick, Haagen-Dazs
 Successful Merger & Acquisition

12.  Health is wealth
 Advertising Push (communicate with
stakeholders)
 Simplifying organizational structure
 Tough competition to Rivals
 Consumer behaviour
 Women workforce
 Introduction of more products
 Educate middle class

13.  Strengths
-Unmatched product and brand portfolio
-R&D capabilities
-Strong distribution channels and geographic
presence
-Competency in mergers & acquisitions
-Strong Brand reputation

14.  Weaknesses
-Inability to provide consistent quality in food
product
-Weak implementation of CSR

15.  Opportunities
-Increasing demand for healthier food product
-Acquiring start-ups specializing in producing
well-being product
-Establishing new joint ventures

16.  Threats
-Food contamination
-Trend towards healthy eating
-Growth of private labels
-Rising raw food price

17.  Political
-Nestle should comply with the changes in regulation
surrounding food standards
-Nestle needs to consider the changes in global
regulations and maintain its quality standards

18.  Economical
- It is important to be recognizing of changing
inflation, income level of the consumers and
economic growth rates

19.  Social
-Nestle focuses on its strong values and
principles in order to build the trust of its
consumer.
-Nestle reduced the level of trans-fat , lead
content in its product for Indian consumer.

20.  Technological
-Nestle using e- commerce platform for
marketing.
-Nestle using social media to create awareness
about its products through various campaign:-
For example – We miss you Maggi
-Nestle uses the state of art, technology for
the production of various products, meeting
the global standards by installing the
contemporary plants.

21.  Roping in Brand Ambassador
 High Trust Value in audience
 Using numbers as a positive reinforcement
 Required changes which stick to the norms
 Building good relation with FDA
 Build a campaign
 Joint venture with the competitors
 Reduce to specific supplies
 Maintain the Prosperity Stage
 Win consumer trust
 Find new sources of growth for company future
expansion

22.  liveMint
 Competitors-www.Marketing91.com
 Academia
 Google.com
 Wikipedia