poter 5 forces
TRANSCRIPT
PORTER’S FIVE FORCES FOR NESTLE
Submitted By:Nimisha Walecha (E13)Sonam Mahajan (E21)Raqueem Khan (E62)
About Nestlé
• Founded in 1866 by Henri Nestlé.
• Henri Nestlé developed a milk based baby food and soon began marketing it. It became the first product of Nestlé.
• Incorporated as a limited company in 1959
• Name was changed from Foods Specialties Ltd. to the current name in 1981 .
• Employs around 247,000 people and have factories or operations worldwide.
KITKAT
• First created and launched by Rowntree Limited of England and was later produced by Nestle which aquired Rowntree in 1988.
• Quickly gained much popularity and spread to all corners of the globe.
• Now available in over 70 countries in many different varieties.
USP1.Chocolate fingers2.Well-known strapline - Have a Break, Have a Kit Kat.
MAGGI
• It was founded by the Maggi family in Switzerland in the 19th century.• Launched in India in year 1984.• The brand is popular in India, Malaysia, New Zealand, Singapore,
South Africa, Australia.• Nestle wanted to explore the potential for such an instant food among
the Indian market.• Now it enjoys around 94% market share in this segment.
USP 1.2-minute noodles.2.Fast to cook and good to eat (Taste bhi, health bhi).
NESCAFE
• The product NESCAFÉ – a combination of the Nes-root of Nestlé
and the word café.
• NESCAFÉ was first introduced in Switzerland, on April 1st, 1938.
• Popularity grew rapidly and soon became the beverage of choice for
teenagers.
• In 1965, Gold Blend was launched.
• In 1994, 'full aroma' process was invented to make the unique
quality and character of NESCAFÉ even better
CERELAC
• One of the most popular baby food brands manufactured by Nestle.
• Easily digested by infants.
• Considered very nutritious and good for babies' health and growth.
• Serves as a complimentary meal for babies above 6 months.
• Comes in a range of varieties:
Cerelac Rice, Cerelac Wheat, Cerelac Wheat – apple, Cerelac Wheat – honey, Cerelac Wheat – banana, Cerelac Wheat - 3- fruits, Cerelac Wheat - 4 - Vegetables
ANALYSIS AND FINDINGS
Closest competitors
Homemade food
25% Cerelac41%
Oats19%
Heinz food15%
Baby food
5-star31%
Kit Kat33%
Bar One12%
Perk24%
Chocolate
Wai Wai7% Sunfeast
Pasta21%
Maggi45%
Top Ramens
27%
Noodles
Bru20%
Nescafe44%Cappucino
24%
Coffee Beans12%
Coffee
Reasons for purchasing
Cerelac
Taste15%
Easily available
9%
Do not buy30%
Other46%
Other15%
Do notbuy9%
Taste22%
Easily available
54%
Kit Kat
Maggi
Taste76%
Other14%
Easily available
10%
Do not buy0%
Nescafe
Easily available
22%
Taste74%
Other4%
Do not buy0%
Is price a constraint for buying the chosen products
Disagree45%
Strongly agree23%
Agree9%
Neither agree nor disagree
17%
Stronglydisagree
6%
Cerelac Kit Kat
Stronglyagree14%
Stronglydisagree
10%
Agree24%
Neither agree nor disagree
32%
Disagree20%
Maggi
Disagree44%
Neither agree nor disagree
23%
Agree15%
Strongly agree
8%
Stronglydisagree
10%
Nescafe Coffee
Strongly disagree
0%Strongly
agree15%
Agree45%
Neither agree nor disagree
23%
Disagree17%
PORTER’S FIVE FORCES MODEL
Study Of Nestle Products With Respect To
“Porter’s Five Forces”
Kit-Kat
COLD COLD WAR
Nestle Kit katNestle Kit kat VsVs Cadbury Perk… Cadbury Perk…
Nescafe
Maggi
Cerelac
RECOMMENDATIONS
Maggi• They should target ‘Rural market’ too.• They can think of extending the ‘Maggi’ product line.
Nescafe• They need to consider the price factor in order to have a stable
position in the market.• Proper research should be done while launching a new product.• Should take in consideration the Indian psyche.• Should act like market leader rather then follower.
Kitkat• Need to Find a unique strategy for making it a success in the Indian
market.• Should look for product differentiation.
CONCLUSIONS
• Maggi is undoubtedly the market leader, having no potential threat from its substitutes or any new entrants.
• Nescafe is facing a tough competition from Bru as its substitute.
• Kitkat faces a severe competitive rivalry from Cadbury chocolates.
• Cerelac enjoys the market monopoly as there is no other major supplier of healthy baby foods.
THANK YOU