Swot Analysis Of Nestle

Nestle was involved in the unethical marketing practices, endangering consumer health to promote its infant formula in developing nation. Nestle often used deception and doublespeak to justify its unethical business practices. Many NGOs and groups spread the word about Nestlé’s unethical practices making people to boycott its products. Later Nestle changed its policy and stops free sampling and aggressive marketing techniques. Nestle promoted the infant formula over breast milk which caused the illness and death of many infants in the developing countries. There are many reasons that contribute to it:

Nestlé is a Swiss multinational nutritional, snack food, and health-related consumer goods company founded in 1866 and headquartered in Vevey, Switzerland. It is the largest global food company measured by revenues which amounted to over $98.92USD billion, as of December 31 2012 (Nestlé). Nestlé Trinidad and Tobago is a subsidiary of a larger segment of the company, Nestlé Caribbean. Nestlé produces a wide range of products including but not limited to Bottled Water, Baby Foods, Breakfast Cereals, Chocolates & Confectionery, Coffee, Dairy Products, Drinks, Weight Management, Ice Cream, Nestle Professional, and Nutrition & Health. In the breakfast cereal line, one brand – Nestlé Fitness – caters more to the increasingly health conscious consumer. This assignment examines Nestlé’s market segmentation, positioning strategies, marketing mix

Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material

Trend towards healthy eating. Nestlé is a leading supplier of chocolate and chocolate drinks that have high level of calories and due to changing customer habits (health consciousness) it will cause decline in demand.

Introducing a new product to the market is a very risky operation. Not only is it risky but it takes time, effort and money. In order for a product to be successful, it had to fully undergo the product life cycle. Kellogg’s has an advantage when it comes to the breakfast market as it holds the biggest market share. After providing the British public with breakfast for years, it most certainly has a larger customer loyalty base. The strong brand makes it easy for product launching as the public are already familiar with the brand. However, introducing a new product comes with its challenges and risks. Looking at the ratios, Kellogg’s has a current ratio to date of 1:1.1 . This in financial terms rings alarm bells as it shows that the company will struggle to pay its short term obligations. Kellogg’s however can operate on a low current test ratio as it has a good long term revenues coming into the business. This means that it is possible to borrow on this basis to meet its current obligation. After calculating the net present value, which gave a positive NPV of £38450million, I move that we go ahead with the introduction of a new product. In traducing a new product is a sign of innovation and growth on the part of the competitors. In order for a new product to be introduced to the market, Kellogg’s will have to spend money on the actual product, the marketing side of

Nestle Product includes features that contains combinations of health and hygiene and remembering the requirements in different taste. Nestle is to be tailored to individual needs by consumers and promotion will be used to attract all the consumers.

Nestle is one of the largest food and beverage company in the world. Nearly every of the world have the manufacturing facility of Nestle. Nestle can referred to the most multinational of the multinationals. Nestlé markets approximately 7,500 brands and in can organize into the few categories such as baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. (Nestlé S.A., n.d.)

Nestlé has ten principles of business operations that everything they do in their business revolve around; Nutrition Health Wellness, Quality assurance and products safety, Consumer communication, Human Rights in business activities, Leadership and personal responsibility, Supplier and customer relations, Agriculture products, Environmental sustainability, and Water. Under each of these topics is a set of things Nestlé follows such as, making it their core aim to enhance the quality of consumer’s lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. Another is Nestlé, promises that everywhere in the world their products are safe and of high standard.

Nestlé has formed a well-defined roadmap to achieve its global mission statement "Good Food, Good Life" (Nestlé, 2013). Nestlé chief goals and objective is creating shared value for shareholders while at the same time also create value for society (Nestlé, 2013). Nestlé also take a long-term view, to develop principles and values that are based on respect for people, environment and the world we live in (Nestlé, 2013). Besides that, it has developed to mark their achievement that is become the benchmark of nutrition, health and wellness, sustainable financial performance and trust by all stakeholders (Nestlé, 2013). In order to maintain its goals and objective, Nestlé apply three different corporate strategies which included operational pillars, growth drivers, and competitive advantage (Nestlé, 2013). In the operational pillars strategy, there are a sub strategy is innovation and renovation. Nestlé want to be a leader in innovation and renovation no matter in products, systems or processes. They wish there are some products will be entirely new and refreshed aspect (Nestlé, 2013). Therefore, Nestlé has using their creation of Nestlé Health Science to forge a major therapeutic role for

Nestle is the world’s leading nutrition, health and wellness company. From Henri Nestlé’s humble beginnings with the first product, Farine Lactée, which revolutionized infant feeding, the company’s priorities have remained the same -about bringing high quality, safe and nutritious foods and beverages to people through all stages of life. In Nestle’s pursuit of delighting and satisfying the customers, Nestle’s products are adapted to meet local, regional taste preferences, religious and cultural sentiments and disparities in purchasing power.

Since then the company has continued to flourish; mergers and acquisitions, global investment and product innovation have seen Nestlé position itself as a “global leader in Nutrition, Health and Wellness” (Nestlé, 2015) and, according to Forbes (2016), it is the largest company within the food industry and the 33rd ranked company on the Global 2000 (Forbes, 2016). Whilst renowned for chocolate, it did not become a global leader on the strength of one product. Its portfolio includes, baby food, beverages, frozen food, prepared dishes and healthcare nutrition. Food and beverages in particular have been prevalent in the aggrandizement of the corporation.

The shared thoughts and beliefs of the customers influence the business operations. The culture, life style, norms and values force Nestle to deliver the specific product to the right segment. Nestle so far has considered the social perspective well. The company has well understood the concept that consumers changing attitude has immense importance.

“Henri Nestlé, himself an immigrant from Germany, was instrumental in turning his Company towards international expansion from beginning. We owe more than our name, our logo and our first infant-food product to our founder. Henri Nestlé embodied many of the key attitudes and values that form part and parcel of our corporate culture: pragmatism, flexibility, the willingness to learn an open mind and respect for other people and cultures.” Peter Brabeck-Letmathe, Nestlé Chairman

According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.

Their main goal is they endeavour to bring buyers sustenance’s that are sheltered, of high calibre and give ideal supplement to address physiological issues. Nestlé gives choices to all individual taste and way of life inclinations.