swot and pestle analysis for nestle company
DESCRIPTION
SWOT and Pestle Analysis for Nestle CompanyTRANSCRIPT
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.”
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