Document content PESTAL and SWOT analysis of NESTLE with examples and detailed analytics. #PESTAL #SWOT #NESTLE
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In this report you can study about Marketing Mix of Nestle Company
We are covering the following topics:
Nestlé’s History, Shape of the Nestlé Logo, NESTLÉ – An Introduction, Mission Statement, Vision and Values, NESTLÉ TODAY, Major Competitors, BCG Growth Matrix, Product Life Cycle, Our progress, The Nestlé Policy on Environmental Sustainability, Nestlé Environmental Management System, Product life-cycle approach, Nestlé – Four “Ps”, Products, Variety, Quality, Packaging,, Services & Brand name, Price, Industry overview and performance in FY09, Financial performance (FY04-10), Profitability, Liquidity, Asset management, Debt management, Market ratios, Future outlook, Place, Distribution Channel, Coverage, Inventory, Logistics, Promotion, Modes of advertising, Direct Mail/SMS to Users, Outdoor Advertisement, Transit Advertising, Segmentation, Targeting and Positioning Of Nestlé, Market Strategies, Marketing Strategy of Nestlé in Pakistan, Market Segmentation, Target Marketing, Differentiation, SWOT Analysis, Strengths, Weaknesses, Opportunities, Threats, PEST Analysis, Political analysis, Economical Environment, Social analysis, Technological, General Recommendations by the Public, Conclusion
This presentation was presented by me on Nestle ltd. The presentation figures out the History, background, performance and SWOT analysis of the company.
The strategic management for Nestle company which consist of SWOT Analysis, Value Chain Analysis, Pestle, Porter 5 Forces, along with reference list and appendices
THIS IS A REPORT ON PROBLEMS FACED BY NESTLE
“ Worldwide boycott of nestle products after the company failed to properly communicate and market its breast milk substitute (infant formula) product, which has resulted in the deaths of millions of infants. ”
We created this presentation for our class ENBUS 640, Strategies for Sustainable Enterprises. In this presentation, we analyzed McDonald's current sustainability initiatives and provided recommendations on how to grow and differentiate the company. The presentation is text-heavy because it is written and delivered like a report, as opposed to a verbal presentation.
Packaged Milkshakes Market Competitive Research And Precise Outlook 2023 To 2030subishsam
The research firm Contrive Datum Insights has just recently added to its database a report with the heading global Packaged Milkshakes Market .Both primary and secondary research methodologies have been utilised in order to conduct an analysis of the worldwide Packaged Milkshakes Market . In order to provide a comprehensive comprehension of the topic at hand, it has been summed up using appropriate and accurate market insights. According to Contrive Datum Insights, this worldwide comprehensive report is broken up into several categories in order to present the data in a way that is understandable, succinct, and presented
In this report you can study about Marketing Mix of Nestle Company
We are covering the following topics:
Nestlé’s History, Shape of the Nestlé Logo, NESTLÉ – An Introduction, Mission Statement, Vision and Values, NESTLÉ TODAY, Major Competitors, BCG Growth Matrix, Product Life Cycle, Our progress, The Nestlé Policy on Environmental Sustainability, Nestlé Environmental Management System, Product life-cycle approach, Nestlé – Four “Ps”, Products, Variety, Quality, Packaging,, Services & Brand name, Price, Industry overview and performance in FY09, Financial performance (FY04-10), Profitability, Liquidity, Asset management, Debt management, Market ratios, Future outlook, Place, Distribution Channel, Coverage, Inventory, Logistics, Promotion, Modes of advertising, Direct Mail/SMS to Users, Outdoor Advertisement, Transit Advertising, Segmentation, Targeting and Positioning Of Nestlé, Market Strategies, Marketing Strategy of Nestlé in Pakistan, Market Segmentation, Target Marketing, Differentiation, SWOT Analysis, Strengths, Weaknesses, Opportunities, Threats, PEST Analysis, Political analysis, Economical Environment, Social analysis, Technological, General Recommendations by the Public, Conclusion
This presentation was presented by me on Nestle ltd. The presentation figures out the History, background, performance and SWOT analysis of the company.
The strategic management for Nestle company which consist of SWOT Analysis, Value Chain Analysis, Pestle, Porter 5 Forces, along with reference list and appendices
THIS IS A REPORT ON PROBLEMS FACED BY NESTLE
“ Worldwide boycott of nestle products after the company failed to properly communicate and market its breast milk substitute (infant formula) product, which has resulted in the deaths of millions of infants. ”
We created this presentation for our class ENBUS 640, Strategies for Sustainable Enterprises. In this presentation, we analyzed McDonald's current sustainability initiatives and provided recommendations on how to grow and differentiate the company. The presentation is text-heavy because it is written and delivered like a report, as opposed to a verbal presentation.
Packaged Milkshakes Market Competitive Research And Precise Outlook 2023 To 2030subishsam
The research firm Contrive Datum Insights has just recently added to its database a report with the heading global Packaged Milkshakes Market .Both primary and secondary research methodologies have been utilised in order to conduct an analysis of the worldwide Packaged Milkshakes Market . In order to provide a comprehensive comprehension of the topic at hand, it has been summed up using appropriate and accurate market insights. According to Contrive Datum Insights, this worldwide comprehensive report is broken up into several categories in order to present the data in a way that is understandable, succinct, and presented
Financial analysis : Britannia Industries LtdKaustubh Gupta
Financial Analysis of Britannia Industries is a comprehensive research report on financial standing of the company and an in depth analysis with its peers. The report analyses financial documents of the company and provides an insight to the inflows and the outflows recorded.
Last Name 2Marketing Plan for Biotic JuiceStuden.docxpauline234567
Last Name 2
Marketing Plan for Biotic Juice
Student Name
University Affiliation
Course
Professor
Date
Introduction
In the 21st century, health issues have become rampant globally. Despite its benefits, many people avoid using GMO products, which harm human life (Jon Yaneff, 2015). Health and awareness-related products have gained fame and interest as it rewards people with a healthy lifestyle. Many institutions have emerged to ensure enough diversified produce is available to customers and fill the market gap. Juice and vegetable industries aim to produce foodstuffs that suit their customers' local and international preferences. Competitive industries research and identify premium ingredients, including turmeric, garlic, and vegetables such as cucumber, celery, spinach, carrot and broccoli, that stretch top blend in Juice to suit customers' health needs. However, reports reveal environmental hazards due to the release of carbon monoxide from industrialized beverage production (Essien et al., 2021). This marketing plan focuses on Biotic Juice production and retailing. The strategy focuses on how natural Biotic Juice products will be marketed.
Biotic Juice
The Biotic Juice is featured as a drink extracted from various fruits and blended with vegetables. The beverage can be ingested with droughts, cookies, macrons, or fruit salad. The product is 100% organic and contains entire nutritional composition that fits the customer's health target across all ages. The beverage is presented as cold-pressed, free from chemicals and Genetically Modified Organisms (GMOs). The Biotic Juice contains no added sugars, calories or junk. The Juice is prepared on customers' order, served fresh without any junk obtainable with it.
Market
a.
Product market
Over the past two years, the beverage industry's inventiveness has rapidly increased. The fundamental causes of the rapid shoot in this product industry are increased necessity for consumer nutrition and healthy lifestyle. Additionally, customer preferences have shifted from industrialized drinks and beverages with micro health hazards. According to (Statista, 2021), the juice segment, from a global perspective, has shot by 5.43%, which projects an increase in a market volume of $134.80 billion by 2027. About 23% of consumers in the US take Juice daily. Since 2006, New York residents have preferred 100% fruit juice with no added sugar, which is our market advantage.
b.
Geographical market location
The environment of business operation is an essential component that promotes business success. Environmental reasons drive the demand for Biotic Juice in a given country (Pandit & Suman, 2022). For instance, juice consumption in New York city increases by about 12% during summer and winter. The personal health aspect of a consumer getting refreshments during summer and an immunity boost from fruit juice during winter increases demand.
c.
Demographic factors
New Yo.
9
Project 1
June 16th, 2019
BGMT 364
Introduction:
The company is renowned for the delivery of the best natural products. The demand for these products is not limited to the US or Europe but is also high in China. Due to this, the company has decided to expand its product in these regions. Along with the expansion of their primary business, they have also introduced a whole new product range for infants, including an interest in pursuing an infant formula.
The external and internal factors of this new product line are analyzed so that favorable/unfavorable conditions that the company may face while introducing their new infant food line are examined. The paper presents a comprehensive view of SWOT analysis, PESTEL analysis, and Porter’s Five Forces analysis. All these analyses are summed up into goals and objectives that will be used in introducing this new product line.
PESTEL analysis:
Political
Currently, the company is free from any political barriers as it is successfully doing business in six countries. However, expanding the business in China, which is known as the biggest economy, can create a barrier for them. The changing regulations related to food standards and market actions may be a barrier for this new product line (Candela, 2019). The stability of the government in China also questions the risk as a part of the internationalization process. Also, the impending tariffs imposed by President Trump could hurt Great Start’s business in China. According to CNBC, “the Chinese authorities appear to be making operations more difficult for some companies.” (CNBC, May 2019) There has been decreased traffic and more inspections.
Economic:
The economic factor is quite favorable for this new product if they introduce it to new markets like China. However, the changing inflation rate, income level of people, and economic growth rate will affect the buying of these products. These are the factors that influence the buying power of the population. If these factors are under control, then there are many chances that this product sale will outperform.
Furthermore, the changes in consumer budget give rise to cost-conscious consumers. Here, the increase in prices of raw material due to changes in the inflation rate also affect the prices of products. A potentially concerning but advantageous thing to note is China’s One Belt, One Road Initiative. According to the Council of Foreign Relations, the new Silk Road would stretch from East Asia to Europe. “Some analysts see the project as an unsettling extension of China’s rising power.” (CFR, 2019) This Silk Road could make shipping our products more cost-effective, considering Great Start has locations in Switzerland, Belgium, and the Netherlands but considering the tariffs that affect American businesses in China could be potentially damaging.
Social:
The social factors are favorable for the company because the consumer attitude has changed as they prefer healthier .
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
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Digital Money Maker Club – von Gunnar Kessler digital.focsh890
Title One is a comprehensive examination of the impact of digital technologies on
modern society. In a world where technology continues to advance rapidly, this article delves into the nuances and complexities of the digital age, exploring Its implications across various sectors and aspects of life.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
SEO as the Backbone of Digital MarketingFelipe Bazon
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Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
How to use Short Form Video To Grow Your Brand and Business - Keenya Kelly
PESTAL and SWOT analysis on NESTLE Brand
1. Reasons for the Growth of
Digital Marketing -
PESTLE & SWOT
A guide by Matt Housden
2. 1. Nestle has to adhere to health and safety
requirements of significance in the food
and nutrition industry. The main aim of
these regulations is to protect the
consumer from poor quality products that
could serve to damage the consumers
health.
2. A rise in childhood obesity has led to the
government taking action and claiming to
halve childhood obesity by 2030.
https://www.gov.uk/government/news/new-measures-
announced-to-halve-childhood-obesity-by 2030
https://longbenton.org.uk/news/
2017-06-27-health-and-safety-
update
Political
3. 1. The rise in the price of their raw materials
used in their products. Even in rising markets
such as Brazil prices have been increased
https://www.independent.co.uk/news/brexit-nestl-price-rises-pound-crash-dollar-
euro-currency-exchange-unilever-a7371131.html
2. When a country goes through a difficult
economic crisis, luxuries such as chocolate
and coffee are not a priority for struggling
households. These both being their highest
grossing exports https://www.nestle.com/ask-nestle/products-
brands/answers/what-products-does-nestle-sell
3. Brexit will affect Nestle possibly more than
most companies. Most of Nestles products are
consumed in the UK but due to Brexit the price
has increased https://www.independent.co.uk/news/brexit-nestl-price-
rises-pound-crash-dollar-euro-currency-exchange-unilever-a7371131.html
Economics
https://www.timeshighereducation.com/c
omment/universities-and-economic-
growth-go-together
4. 1. Consumers are now more conscious of
the health implications of sugary diets
and are looking for healthier products.
This is backed up by government
initiatives to curb obesity.
https://www.gov.uk/government/publications/childhood-obesity-a-plan-for-
action/childhood-obesity-a-plan-for-action
2. Since the 1960’s Nestle has tried to
improve the income of their coffee
farmers by proving a farming training
programme https://www.nestle.com/csv/case-
studies/allcasestudies/sustainable-coffee-farming-training-programme-the-
philippines
3. Nestle started a Healthier Kids
programme to deal with the childhood
obesity epidemic. This was a reduction in
sugar, salt and saturated fats and
replaced with healthier alternatives
https://www.nestle.com/csv/global-initiatives/healthier-kids
Social
https://www.ndss.org/trifecta-
lifestyle-eating-healthy/
5. 1. The fast pace of technological
development and associated capabilities
portend significant challenge for
competitiveness in modern industry.
2. Nestlé has endeavored to keep up
through enormous investments in
research and development to enhance its
capability.
3. However, the company still experiences
challenges in its quality control with its
inability to provide consistent quality in
food products hurting company image
and affecting sales.
4. It has endeavored to ensure quality in the
foregoing and to safeguard confidence in
its products through its seal of guarantee
initiative.
Technology
https://mms.businesswire.com/me
dia/20130521005278/en/369915/
5/CRUNCH_Cocoa_Plan_Back_Lab
el_HI_RES.jpg
6. 1. Nestlé is involved in numerous
programs aimed at making the
company more eco-friendly which
are inherent in its CSR initiatives.
2. Some healthcare products like
cream & powder have great
demand in hot and tropical
countries.
3. The change in the weather can
also affect the supply chain.
4. Environmental concerns from
consumers including concerns over
recycling.
Environmental
7. 1. Global operations in diverse
jurisdictions require astute legal
capabilities which Nestlé seems
to be endowed with.
2. Nestle has to follow the health
and safety laws for their
employees and also to produce
hygiene products for the
customers. Nestle need to focus
on these too while operating in
different regions of the world.
3. Main Concerned laws to look
after for nestle:
a. Health and Safety Law
b. Consumer Protection Law
c. Pollution Control
d. Business Regulation
4. Nestle and the “UK Sugar Tax”
https://www.123writing.com/free-sample/pestle-and-swot-analysis-
of-nestle-2017
Legal
8. SWOT ANALYSIS
Bibliography: Shewan, D. (2018). How to Do a SWOT Analysis for Your Small Business (with Examples). [image] Available at:
https://www.wordstream.com/blog/ws/2017/12/20/swot-analysis [Accessed 5 Oct. 2018].
9.
10. • Founded: in 1866;
• Industries Served: Beverage,
Food;
• Geographic Areas Served:
Worldwide (189 countries);
• Company’s Main Products:
liquid beverages, milk
products, ice-cream,
confectionary & pet and care
products;
• Major Consumer Brands:
Nescafe, Purina, KitKat and
etc.
Bibliography: Ovidijus Jurevicius, O. (2017). SWOT analysis of Nestle. [image] Available at:
https://www.strategicmanagementinsight.com/swot-analyses/nestle-swot-analysis.html [Accessed 5 Oct. 2018].
Background
11. Nestle SWOT Analysis
STRENGTHS
• Unmatched research
and development
capability
• Strong geographic
presence, with one of
the best
geographically
diversified revenue
sources
• Unrivaled product
and brand portfolio
• Environmental
sustainability efforts
• Ownership of some of
the most recognizable
brands in the world
Bibliography: Jurevicius, O. (2018). Nestlé SWOT analysis - Strategic Management Insight. [online] Strategic Management Insight.
Available at: https://www.strategicmanagementinsight.com/swot-analyses/nestle-swot-analysis.html [Accessed 5 Oct. 2018].
WEAKNESSES
• Criticism over
high water usage,
selling
contaminated
food, anti-
unionism, forced
child labor and
using other
unethical
practices
• Contaminated
food recalls.
OPPORTUNITIES
• Clear and accurate
labeling indicating
of any harmful
products
• Transparency in
material sourcing
• Growing number of
small Silicon Valley-
based food startups
• Growing ready-to-
drink (RTD) tea and
RTD coffee
markets.
THREATS
• Poor quality water
and its scarcity
• Increased
competition in the
beverage and food
industries
geographically
• The price of coffee
beans could
significantly rise due
to major weather
disasters.
12. Bibliography: Nestlé (2017). Annual report 2015. Available at: http://www.nestle.com/asset-
library/documents/library/documents/annual_reports/2015-annual-review-en.pdf Accessed 6th January, 2017
Figure 2: Nestle’s Main Markets
Figure 1: R&D Spending by the largest F&B companies in USD billions
«Unmatched research and development capability»
«Strong geographic presence,
with one of the best geographically diversified revenue sources»
13. «Growing ready-to-drink (RTD) tea and RTD coffee markets»
Figure 3. RTD Coffee Growth Compared to the Growth of the whole liquid beverage market in the USA
Bibliography: Beverage Marketing Corporation (2016). Press Release: The U.S. Liquid Refreshment Beverage Marketing Accelerated in
2015, Reports Beverage Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=335 Accessed
6th January, 2017
14. Conclusion
• On the day when NESTLE introduced it was only food
for infants. Now it’s one of the world’s famous food
and drink producer company.
• With starting their on online platform to compete
with the current competitors and market. It has
more opportunity to start with.
• As we know Nestle is worldwide and using digital
marketing it opens the gate of seamless singular
marketing channel.
15. François-Xavier Roger, Nestlé’s CFO, said: “We do invest in
innovation. We invest in marketing. We invest in order to
premiumise our range of products but we do invest a lot
as well in new channels, and this is really at the core of
our strategy. And ecommerce is a good illustration of it.”
Chritiana’s Part:
What Is a SWOT Analysis?
A SWOT analysis is an analytical technique used to determine and define several key characteristics: Strengths, Weaknesses, Opportunities, and Threats – SWOT.
SWOT analyses are used at the organizational level to determine how closely a business is aligned with its growth trajectories and success benchmarks, but they can also be used to ascertain how well a particular project – such as an online advertising campaign – is performing according to initial projections.
Sofya’s Part:
Introduction to Nestle:
Nestle founded in 1866 and nowadays it is the largest F&B Company in the world;
Nestle focuses on selling F&B, particularly it sells 2000 different brands over 7 food and Beverage categories;
The company’s main products are liquid beverages, milk products, ice cream, confectionary and pet care products;
As an example, Nestle owns several major consumer brands such as Nescafe, Purina, KitKat and many other prominent brands;
Geographically takes a place in 189 countries;
Chritiana’s Part:
STRENGHTS:
1. Unmatched research and development capability (see Figure 1)
According to Nestlé, one of its key competitive advantages is research and development (R&D) capabilities. The company spent CHF1.678 billion or US$1.697 billion on R&D in 2015. This accounted for 1.89% of the total revenue. In comparison, The Coca Cola Company spent 0% of its revenue on R&D and PepsiCo, Nestlé’s chief rival, spent only 1.2% or just US$754 million of its revenue on R&D.
estlé’s R&D capabilities also stem from its R&D network. The company has the largest R&D centers’ network of any food or beverage company in the world, with 34 R&D facilities and over 5000 people working in them.
Nestlé’s superiority in R&D against its rivals provides a sustainable competitive advantage and long-term success.
2. Strong geographic presence, with one of the best geographically diversified revenue sources (see Figure 2)
Nestlé operates and sells its products in 189 countries, reaching almost the entire world. The company has divided its operating segments into 3 geographic areas: The Americas (AMS), Europe, Middle East and North Africa (EMENA) and Asia, Oceania and sub-Saharan Africa (AOA). None of the regions earn over 50% of the total revenue.
Nestlé, unlike most of its rivals, does not rely on any single country or a few different countries to generate most of its revenue. The U.S., which is the single largest company’s market only generates CHF25.293 billion or 28.5% of the total revenue. The next largest market, China, generates CHF7.06 billion or 8% of the total revenue.
In comparison, PepsiCo and The Coca Cola Company earn 56% and 46% of their revenue from the U.S. alone, respectively. This proves that Nestlé’s strong and diverse geographic presence, gives it a competitive advantage over its rivals, especially when the U.S. market is negatively affected.
3. Unrivaled product and brand portfolio
Nestlé’s product portfolio is wider than any of its rivals in the industry. The company offers over 2000 different product choices in 7 main categories:[3]
Powdered and liquid beverages. Brands include: Nescafé, Nescafé Dolce Gusto, Nespresso, Nestea.
Milk products and ice cream. Brands include: Nestlé, Dreyer’s, Movenpick.
Prepared dishes and cooking aids. Brands include: Maggi, Chef, Buitoni, Stouffer’s, Wagner.
Nestlé Nutrition. Brands include: Wyeth, Nan, S-26 Gold, Beba, Lactogen.
PetCare. Brands include: Purina, Friskies, Pro Plan, Felix, Gourmet.
Confectionary. Brands include: Nestlé, KitKat, Cailler.
Water. Brands include: Pure Life, S.Pellegrino, Vittel, Perrier.
Wide product portfolio allows Nestlé to better satisfy various consumers’ needs and target wider consumer segment. The company is also less affected by the changing consumer tastes or consumer backlash against one of its brands.
4. Environmental sustainability efforts
Nestlé prides itself on company’s sustainability efforts. The company’s environmental initiatives have helped to reduce waste, packaging material usage and to keep the environment cleaner.
Since 1991, the company has saved 500 million kg of packaging material by redesigning its packages. Nestlé uses recycled materials and chooses materials from renewable source whenever possible.
By 2016, 105 of Nestlé’s factories have reached zero waste in production, one of the best results in the industry.
Few of the company’s rivals could match the company’s efforts in sustainability, which result in lower production costs, cleaner environment and happier communities.
5. Ownership of some of the most recognizable brands in the world
Nestlé owns and markets a few well recognized brands, such as Nestlé, Nescafé, Maggi, Purina, KitKat and Nan. According to Forbes[4] and Interbrand[5], Nescafé brand is the 32nd and 36th most valuable brand in the world, and is worth US$16.3 billion and US$12.5 billion, respectively. Nestlé brand also ranks as the 49th and 56th most valuable brand in the world in Forbes’ and Interbrand’s lists.
Brand value is closely related to brand recognition. Nestlé’s brand recognition is also increased by its presence in 189 countries.
Brand awareness helps the company to introduce new products and sell the current products more easily.
WEAKNESSS:
1. Criticism over high water usage, selling contaminated food, anti-unionism, forced child labor and using other unethical practices
Being the largest food company in the world attracts lots of attention. Most of that attention is criticism over the companies’ practices and Nestlé is no exception to that.
Over the years, the company has been criticized for a number of its practices:
Unethical marketing of baby formula;
Claims that water should be privatized;
Asking for a debt payment from a famine struck country;
Misleading labeling;
Sourcing materials from suppliers using child and forced labor;
Anti-unionism.
The latest criticism is over the company’s uncontrolled water usage in California, where prolonged drought is hurting the state. California state has experienced water shortages over the last few years and many restrictions have been placed on businesses and residents to reduce their water consumption. On the other hand, Nestlé, which drains the water from aquifers in reservations’ areas, isn’t controlled by state laws and does not have to restrict its water usage.[6] Nestlé’s inability to address the communities’ needs and problems in California, but instead increasing the problems even more, draws lots of criticism.
Negative publicity results in damaged brand reputation, lost consumer confidence and declined sales. Few of the company’s rivals receive as much criticism as Nestlé.
2. Contaminated food recalls
Nestlé is a huge food company selling tens of thousands of different food products daily. Even with strict quality control measures the company often has to recall its products in various markets due to some form of contamination. In 2014, Nestlé recalled and destroyed 37,000 tons of contaminated Maggi noodles in India. This resulted in hundreds of millions in lost sales and damaged brand reputation. Recently, the company had to recall various prepared dishes in the U.S., which may have contained pieces of glass. The company has to recall some of its products almost monthly. Such negative publicity heavily affects Nestlé’s business.
Sofya’s Part
OPPORTUNITIES:
1. Clear and accurate labeling indicating of any harmful products
According to the study done by Delimitate, consumers are more likely to buy products that are clearly and accurately labeled. Almost 62% consumers are more likely to choose products that are free of any harmful products. 51% of the surveyed said that their decisions will be influenced by clear and accurate labeling and 47% would like to see clearly displayed information.
Nestlé, which has a history of providing misleading nutritional information on its labels should improve its practices and clearly label the products and include all the necessary information in addition to nutritional values.
2. Transparency in material sourcing
Consumers are becoming more and more conscious of where the food came from and how it was grown or made. Many young consumers are placing sustainability as an important decision making factor when buying their food. Social responsibility of buying ethically grown, sustainable foods is often more important that price.
Nestlé could start sourcing all of its materials from sustainably grown plantations and farms.
3. Growing number of small food startups
There is a growing number of food startups that are looking for ways on how to disrupt the food industry. According to CB Insights,[8] food startups raised nearly US$5.5 billion in 2015, indicating a significant support for the food startups. These new startups are developing the next generation foods and drinks, provide various solutions on food delivery, new meal kits, specialty foods and introduce new ways to grow and sell the food.
In the current situation, where the established brands are losing sales and the capital is still very cheap, Nestlé could increase its investments in startups that will help the company to meet the future challenges and increase the sales.
4. Growing ready-to-drink (RTD) tea and RTD coffee markets (See Figure 3)
According to the Beverage Marketing Corporation Report,[9] RTD coffees is the fastest growing liquid beverage sector in the U.S. for the last 3 years. While the whole beverage industry grew only slightly, RTD coffees grew by a staggering 37%. Healthy beverages, such as RTD teas were also growing over 4% annually.
Even though Nestlé is one of the biggest coffee sellers in the world, the company doesn’t have any significant brands in RTD coffee or RTD tea markets. The are many smaller brands that could be acquired in the industry or the company could push its own RTD brands to the U.S. market to take the advantage of the growing RTD sectors.
THREATS:
1. Poor quality water and its scarcity
Beverages, make over 25% of the total Nestlé’s sales and water is used in all of their production. Bottled water products alone generate 8% of the total company’s revenue.
Water is scarce and is becoming even more scarce due to the factors such as climate change, growing populations, overexploitation of resources, the increasing demand for food products, increasing pollution and the poor management of waste water. Demand for water is increasing, and it will likely become more difficult for Nestlé to access both clean and inexpensive supplies of drinking water, resulting in potentially increased production costs and therefore lower profitability.
The company also currently receives lots of criticism and negative publicity over its high use of drinking water near the communities suffering from droughts. In the future, water scarcity will likely become a more significant problem that will negatively impact company’s operations.
2. Increased competition in the beverage and food industries
According to Nestlé, competitive rivalry is one of the key threats affecting the company. The beverage and food industries are highly competitive and consist of numerous small, large and multinational companies. Beverage, food and snack products compete primarily on the basis of brand recognition, taste, price, quality, product variety, distribution, advertising, packaging, convenience, service, marketing and promotional activity, as well as the ability to anticipate and respond to consumer trends.[1]
Food and beverage markets are growing very slowly and with so many new startups, Nestlé will find it hard to compete in the future.
3. The price of coffee beans could significantly rise due to major weather disasters
Coffee generates over 10% of the company’s total sales and coffee beans are the major raw material used in its production. Therefore, Nestlé’s profit margins are dependent, to some extent, on the price of coffee beans, which over the past several years has been very volatile.
The major reasons for such price volatility are droughts, unusually high or low temperatures and many other weather disasters in Brazil and other coffee-growing countries. In addition to those factors, growing demand has increased competition for the best quality coffee beans and has pushed the prices up significantly.