swot and pestle analysis for nestle company

Group Member: Tham Li LingKam Ka Mei

Cheam Huoy VianNg Yi XianRiiko Leon

Presented By:

Cheam Huoy VianNg Yi XianRiiko Leon

Introduction

Nestlé is a Swiss-German word which means

‘Little Nest’ which is its trademark

Nestlé Milk Pak Limited (NML) was incorporated

in Pakistan under the Companies Ordinance

 Nestle is a Swiss company, founded in 1866 ---

Henri Nestle

 Nestlé Pure Life was launched in Pakistan in

1998

Product of Nestle

What is Pestle Analysis???

PESTLE analysis is a process to help

understand the overall market environment

→ income distribution or interest rates can seriously affect the bottom line of a company like Nestle

→ fundamental information

→ Affects a business or an investment's value taken into account when determining the current and expected future value of a business or investment portfolio

→ labour costs→ government policy and taxes

ECONOMIC

The technological factors have had a great impact. For an example, the technology of Nestle reduces costs and the quality also improves, the sold of the goods will also increases.• Extrusion: have strong expertise in hot extrusion (eg

breakfast cereals), co-extrusion (eg filled bars and snacks) and cold extrusion (eg ice-cream and chocolate).

• Healthier fats: developed technologies that allow them to use natural vegetable oils instead of partially hydrogenated fats in Maggi bouillon cubes and seasonings.

TECHNOLOGICAL

• Foam booster technology: produces the creamy head for Nescafé Cappuccino, with less fat, and which is much denser and longer-lasting than regular foam.

• Malt extraction: developed a new process for malt extraction for Milo that meant less sucrose and more complex carbohydrates in the product.

• Portion dispensing systems: This know-how is essential for beverage systems

Healthy and safety law

Advertising lawEmployment law

Consumer protection Business regulation

Pollution control

LEGAL

Environment

* Climate change

* Pollution prevention

* Air emissions

* Natural resources

* Water resources* Energy

conservation* Recycling wasted* Reducing wasted

Taxation RegulationIf government imposes heavy taxes on the industry then it badly effects the industry growth.

Health and Safety RegulationMost importance to Nestlé.

Environmental protection LawsThey do concern for environment and contribute more and more for the better of environment.

POLITICAL

SOCIAL-CULTURALHigh DemandPeople in demanding high quality at reasonable price

Change in population in age and consumer expenditure Population aged above 65 is increasing Consumer expenditure also increasing from year of 2009 to 2012. Among the consumer expenditure, only a parts are spend on food and cause decreasing

Successful of the private-label brands by several of Europe's leading supermarket chains The trend is the shift away from branded food and beverages towards cheap non-branded foods and cause price competition in key segments of Nestle core products

• It is useful strategic planning tool

• Internal- strengths & weakness

• External- threats & opportunities

• A useful strategy for ensuring

organizational success can be formulated

STRENGTHS

BRAND STRENGTH: Quality brands and products

Top selling brand: Nescafe, Maggi, Milo, Kit Kat, Honey Stars, Pepsi and etc.

PRODUCT INNOVATION: continuously introducing new products & manufacturing is efficiency

o RESEARCH & DEVELOPMENT CAPABILITIES: have the largest R&D network of any food company in the world, with 32 R&D centres and over 5,000 people directly involved in R&D

o MARKET SHARE: high level of market share and that people all over the world trust and recognizes Nestle as a big brand name.

MATURE MARKETS: Nestle is entering into markets that are already mature and can give a tough competition to new entrants

Supply Chain: complex chain management

WEAKNESSES

OPPORTUNITY

Health-based products- transition to nutrition company

Strong economy- developing & emerging economics

More popular in the world- ex. United States

Possible new markets- Potential to expand to smaller towns and other geographies

THREATSInternational Marketing Standards

Facing the threats by worldwide community

Due to its violation of international marketing standards

Damage the name and trust of Nestle ’s customer

Because many conferences and campaigns held against Nestle

THREATSChanging Consumer Trends

FMCG (fast moving consumer goods) Increased consumer spending on consumer durables resulting in lower spendingPerformance of the FMCG sector has been lackluster in past 2-3 years

Sector WoesRising prices of raw materials and fuelsIncreasing packaging and manufacturing costs Not able pass on the full burden onto customers

Reference List

• http://www.ukessays.co.uk/essays/business/nestle-growth-efforts.php

• http://www.research.nestle.com/researchandinnovation/valuechain/qualityandsafety

• http://www.slideshare.net/zakriazubair/nestle-juicesproject

• http://www.ukessays.com/essays/marketing/the-macro-environment-analysis-of-nestle-in-switzerland-marketing-essay.php

ConclusionNestle is a market leader

Its price is high against its competitors but it matches its quality with its competitors

The world’s largest food and beverage company with its mission to provide healthier lifestyle

Can easily find Nestlé's product from any retailer shop

“Nestle is the largest food company in the world. But, more important to them is to be the world’s leading food company.”

-THE END-