Global Forces And Trends The Nestle Company Marketing Essay

Global Forces And Trends The nest Company Marketing EssayAfter we skimmed through the Fortune 500 tend of the companies, there were a lot of choices of well known companies, however, we picked up Nestl Corporation. Since we grow up with Nestls products which atomic number 18 nutritional and healthy products, and at the same metre rattling tasty, it seemed interesting for us to do the project about this well known Corporation. tally to the official website of the Company, Nestl was formed by Henry Nestl in 1867. He was a pharmacist. In the beginning he started to produce milk food for cleanborn babies, which was the first milk cereal for children. The troupe was located in Switzerland, where the existent largest headquarter is located even today. Then, in short period the companionship started to grow and flip ones lid, and as well as twistinging a large variety of products. Nowadays, the connection is a muckle which has multiple stockholders. Throughout its existence, Ne stl has merged with some world(prenominal) companies. For example, in 1905 merged with a Anglo-Swiss milk company. (MARKETING PROCESS OF NESTLE CORPORATION) In 1998 Nestl purchased the UK largest cocoa factory, then it do some other agreements with some other companies. In 2002, Nestl made a partnership with Coca-Cola, then with General Mills, LOreal. These mergers wait oned Nestl expand their market sh atomic number 18s on the spherical international market. (Nestl.)The strike off name of Nestl comes from Henries surname. It is a short name which can be easily remembered. It is a well known and e genuinelyone can identify its logo. The smell of Nestls products made the brand easily identified, including the shibboleth of the brand, Good regimen, Good Life. Since Nestl is a company which ope sends in the global market, it means that its products argon break worldwide and they atomic number 18 available whenever consumers need them.Nestl over the time has developed and co ntinues to chief(prenominal)tain a strong reputation on the Food Industry. We consider that Nestl is on the stage of brand insistency. This means that costumers insist on getting Nestls products, and this is considered to be a big advantage for the company. (Nestl)The legal status of Nestl is a corporation, which is a business that includes stockholders. The main headquarter of Nestl is in Switzerland Peter Brabeck-Letmathe is the CEO. According to the Global 500, the stockholders equity is 46,006.2 million dollars. (Global 500) The board of directors represents the stockholder on managing the corporation.Nestl cover ups with manufacturing of products, thus, its type of business is manufacturing. Nestl produces a goodly similar collection of individual products. Its products are produced on similar ways, they have fairly similar prices, which make up a great product line. They produce milk and chocolate products, water, baby food, cof earnings, and so on. Since Nestl is a huge c orporate, they produce on large amounts. We know that when a product is being produced in large amount, its production be are set about, comparing to products produced on small amounts, thus these sink production costs leads Nestl to bring its products on the market with reasonable prices, from which the consumers benefit directly. Further much than, they use a production program which includes blue jet technology (environmental friendly technology) that saves electricity, does non pollute the air which leads to consumers benefits.They sell contrary types of chocolates, ice creams, coffees, natural water, baby food, flavored milks, etc. more or less of the products offered from Nestl are NESCAF, NESQUIK, Hot Chocolate, Cocoa, Chocolates, AEROBAR ONEChocolate AssortmentsCHOCOLATE LOGCLASSIC SlabsCRISPCRUNCHBaking ChocolateKIT KATTEX whitish BARMILONestl GOLDROLOSMARTIESSUCROSE FREEPowdered Milk, Nutren ShakesConvalescing MalnourishmentDiabetes SupplementsCritical CareNestl B aby Foods, CERELAC GoldCERELACNESTUMInfant FormulaNestl Waters, Still sparklingFlavouredWater DispensersImportsIce Cream, ImpulseTake HomeOut of HomeNestl Cereals, and so on.Consumers may benefit in different ways from buying Nestls products. From the consumers nous of view, when we decide to buy something to eat or drink, we motive to get the or so satisfaction from it. Thus, we look at its price first, then its ingredients, if it is nutritious, if it is tasty, and healthy. Since Nestls company objective is to produce healthy, tasty, nutritious food, and they offer them at reasonable prices, we conclude that consumers benefit by buying Nestl products.Nestls products are considered as high quality products. Furthermore the raw material for example for chocolate, milk is purchased yet from the milk producers who grow and give food to their cows in natural ways.All Nestl products are pick outed, because Nestl first makes research and market analysis then starts to produce its p roducts. But compose chocolate products are the or so requisiteed products from Nestl.In order for Nestl to grow and expand its market share is to follow up and to adapt to the current trends that are affecting the food industry. For example, the trend of customers demanding low and no fat products is increasing, and if Nestl develops a schema to adapt and expand production of low and no fat products, this would be a growth opportunity. Franchising is perceived as a way for companies to expand on other markets. In our quality, this also would be a growth opportunity, however, they should supervise and control and see if the franchisee is adjudgeing the quality standards that the Nestl Company sets to them. Also Nestl officials should make sure that the franchisees are maintaining the prestige and the reputation of the brand.The corporate goals and objectives are to maximize their profits. They tend to achieve this by roleplaying consumers demand, by offering nutritional produ cts which taste good, coping up with trends.There are many resources for producing products related to food industry. Nestls achievement is reliant on fresh milk, cocoa, sugar, water, power supply, materials related packaging, technology, transportation modes.Suppliers define success when there is a huge demand for their products, while the stakeholders define success if they achieve to increase the market shares, having enough resources to meet the demand, and maximizing profits by increasing sales.Market AnalysisNestls primary target is considered to be commonwealth of all ages. In this range there are included infants, children, teenagers, adults, and time-worn people. If we take age into consideration, we conclude that it is a factor that distinguishes the consumers, since Nestls has products made e finically for infants, while on the other hand we have other products which are targeted to athletes, or to adults, such as coffee. Despite of the age, gender, income, and educat ion level are not factors to be included in targeting Nestl consumers. There is not a special product of Nestl which is dedicated to males or females, or to people with different levels of education, while when it comes to income, since our products are not expensive, we dont consider income a factor to target Nestls products.From the consumers point of view, we define Nestl as a successful company if they meet our demands, they eternally supply us with new products, we find Nestls products easily and with a fair price. Also, a factor of Nestls success would be seen if they are aware of companionable responsibility meaning that they should care more for the benefits of the society as a whole and not only for companies profits.In general, the food industry is in the level of steady market that does not necessarily grow since people constantly use food products because they are necessity goods which no one can substitute them with something else. Furthermore, even if Nestl is alway s bringing new products on the market, since the population is still growing, we cannot say that it is being placed on the growing level.SWOT analysisStrengths Nestl has a very organized structure, it manages to lead in an effective way more than 276 000 employees and that requires great organizational skills. Thus, one of the strengths of the company is considered to be the organizational structure, Nestl is divided in sectors and each sector has their CEOs, then it has the executive board and in the heyday is the CEO. The hierarchy on Nestl reports perfectly. Efficient chain of supply, it de liers its products in a good condition in a fast way. Furthermore, it is a Socially tariff and innovative company. It has skilled and educated employees.Weaknesses Since Nestl develops many products, it is im mathematical to promote each of them. Another weakness is that Nestls products are dependable on milk, any global disease on cows may impact directly on Nestls production.Opportuniti es Nestl has many growth opportunities which are considered to be current trends that allow the company to extend its market. If Nestl catches up with some of the trends that are affecting food industry then it may be an opportunity to increase their profits.Threats As a menace that intimidates the company may be the current global economic crises. Nestl has to react fast with a strategy in order to pass the world fadeout without many losses. It may overturn into a disaster for the company if they ignore what is happening in the global economy. Another threat is competitions operations.PEST analysis semipolitical The government plays a role on Nestle in terms of the rules that the government makes related to the food industry in general. For example failing to meet any standard of quality, hygiene or other set by the government may result in some sanction or fee for the company.Economic When it is about economics, companies always fear any recession that may occur. So if any r ecession occurs Nestle leave be affected, and result in possible losses. Another way of economic involvement is the tax rises which also interrelated to the Political (government regulations). However if the economy is doing well it means that also Nestle expectations are to do well on the market too, because it has the necessary conditions.Social Change of life styles, income level, place of residence, education level are some social factors, which might have an influence in a company. But when it comes to food industry they doesnt make a huge difference, because food is a necessity and whether you live in urban or rural areas, or whether you are educated or not, you need to eat unless it is a luxury, and most of the Nestle products are for general use or necessity.Techno system of logical Technological advancements always shape the industries interchange the way they are produced, and makes industries much more productive, but also the need for employees is lour. With the ne w technologies productivity has increased, the delivery of products is easier products are being safer with the new packaging. Another segment related to technology is that the advertisement of Nestle products is much easier with internet, other media channels.Nestl uses market section in order to develop a suitable market mixes for different consumers. For example, they segment market for only water consumers or products which are dedicated only for athletes. First step of market segmentation is to name broad product markets, for example, in the case of Nestl would be beverage and then as stated primarily segment this market on only a relatively homogeneous group of consumers, such as athletes.According to Fortune 500 the five most influential competitors of Nestl are considered to be Unilever, PepsiCo, Sara Lee, Groupe Danone, ConAgra Foods. However, Nestl has advantages over these particular competitors since it is a larger company and can produce with lower cost, thus the pro ducts can be offered with lower price, this can be seen as a weakness of these companies over Nestl. They, offer fairly similar products as Nestl does. They also use many advertisement tools such as, TV, radio, news paper and so forth, some of them also use direct advertisement against Nestl, for example PepsiCo. According to the research that we have done Nestl maintains to be onwards of these companies, so they are not taking market shares from Nestl.In order to increase its market shares, Nestl Corporation must continue to develop new products, to spread even more on the countries that do not have factories. It must cope up with trends and forces that are affecting food industry today.The promotional reckon of Nestl is set every year. Nestl for its products uses all known promotional tools. Nestls logo placed in a product makes Nestl responsible for the quality of the product. Advertising visualize has an important role on promoting Nestls products therefore, advertising a pro duct in an effective way increases chances for that product to be successful. They use many advertisement techniques to promote their products such as TV, Radio, Internet, Newspapers, and Magazines. (MARKETING PROCESS OF NESTLE CORPORATION) Beside advertisement, Nestl pays a lot of attention on the Public Relations field. They have a 24 hours media helpline so that journalists can contact them and inquire information whenever they want. Also, Nestl has developed a reputation and maintains that reputation through a variety of public relations strategy. The department of PR in Nestl tends to maintain a good relationship among employees and develop good willing. They have developed or branded their CEO in a very victor matter and made him well known also developed its reputation worldwide. Because of their reputation when they can easily contact media to make announcements or Press Releases.According to Nestl pricing strategy, Nestl has its own set of techniques for setting the prices of the product. It does not primarily focus on the competitors pricing strategies. It emphasizes on the market demand of the product. Nowadays market is deviation through tough recession, so they set their prices happening in view the purchasing power of the customers. Moreover the prices of the products are also subjected to the type of consumer product. If the product is a daily use then it can have a minimum price to attract the customer towards your product. Thus the company cannot influence much on the prices. (MARKETING PROCESS OF NESTLE CORPORATION)Trend 1 beat 1 State the focal issue or termination facing the enterprise.When a customer want to buy a product he goes through a decision process in order to choose between so many offers from different producers for the same product. Now when it comes to the food industry products, there are so many indicators that affect a persons decision. If it is farm friendly than it is an important factor that affects the decision of th e buyers. Buyers will always choose the products that are consistent of organic and natural ingredients. In our case Nestls most important materials that purchases are milk and cocoa. And it is very important that Nestl purchases organic and natural milk and cocoa for the production of its products.Step 2 List the signalize factors that influence this decision.Certainly success will be considered that all of our raw materials (milk and cocoa) to be purchased from the farm-friendly sources. When we sell our products we also put the farm-friendly sign on it than customers will differentiate our products not only with our brand name, Nestl, but also with its farm-friendly sign. Whereas mischance would be considered if we fail to purchase organic and natural milk and cocoa. Whether it is because we cannot afford to buy them or nobody produces organic and natural milk, it still would be considered misfortune to us.In order to purchase the organic and natural sources, we need to know o ur suppliers. Where are their farms located, are there sufficient hygiene sources, check for possible diseases that cows may have and also some other issues that would affect the milk quality.Step 3 List the driving forces that influence these key factors certainPeople will shift to the products that are farm-friendly (natural organic).Nestl will increase the profit.Nestls brand name will become stronger.Increase in the number of farmers who offer farm-friendly productsLess predictable separate food industries will use the same strategy.Higher competition.Highly uncertainCustomers will reject the farm-friendly products.The number of farm-friendly farmers will decrease.Step 4 Rank the key factors and driving forces by importance and by uncertainty.Step 5 Compose plots for alternate futures that could impact the decision.Best caseful ScenarioThe shell case scenario would be if our customers like the products that produce by the organic and natural ingredients. And if this happens, customers shift their demand to these kinds of products, and certainly we will have to shift all of our sources in the production of these products. Furthermore we will grow our market because our brand name will be stronger and we expect a market growth for Nestl. bruise Case ScenarioThe worst case scenario would be if customers reject the farm-friendly products. And all of our production will be a loss for our company. Therefore we will lose our market shares not only for these kinds of products but also for other products produced by Nestl. And this will lead to the weakening of our brand name.In-between case ScenarioThe in-between case scenario would be if people will buy the organic and natural products but there wouldnt be any raise in the market shares or any change in the demand for Nestl products.Step 6 Evaluate the decision in each of the postulated scenarios.Best Case ScenarioWe have to make the decision of producing our products with organic and natural ingredients becau se customers always tend to buy products that are natural and organic. And also products with natural and organic ingredients are much healthier and tastier too, so we will provide healthier and tastier products. By using this farm-friendly strategy of production we will affect also in the raise of the number of farmers in the rural areas.Worst Case ScenarioIf the worst case scenario occurs than Nestl will for sure face losses in the market shares and in other sectors of the company too.In-between case ScenarioWith the in-between case scenario occurrence Nestl will probably face some losses in some of its sectors, but it will be easier to rehab in a near future.Step 7 postulate indicators and signposts for each scenario.Best Case ScenarioThere will a huge demand for the products with organic and natural ingredients.Increase the market shares.Increase in profit.Worst Case ScenarioRejection of farm-friendly products by customers.High production costs.Loose the market shares.In-betwee n case ScenarioCompetition.The market shares status steady.Trend 2Recently Nestl has merged with the Krafts Food Company so they will start to offer wintry pizzas. Since it is easy for people to prepare crisp products, it is considered that this trend will have positive effectuate on Nestls profits.Step 1. State the focal issue or decision facing the enterprise.A lot of consumers are interested on frozen products because it is easy to prepare them. If a person can prepare a Pizza for 5 minutes by putting it on Microwave, then they will buy it. The focused target for this products will be people who work and do not have enough time for preparing food. Also, the fact that Nestls slogan is Good Food, Good Health, it is obvious that the frozen pizzas will be healthy, nutritious and they tasty, therefore, there will be a demand for them.Step 2. List the key factors that influence this decision.In order to achieve this goal, which is to be successful in frozen food industry, we must ge t information from other food industries which deal with frozen products. We will obtain information which we will analyze, and according to them we will come up with our products. An important factor that influences us to this decision is the name of our company (Nestl), which is a powerful name on the food and beverage industry. People will buy our products more when they realize that Nestl is the producer, thus they will increase the demand for the frozen pizzasThere will be a success if with this trend we increase the production and the profit to Nestl.There will be a failure if the target market will not accept our new products. If they do so, we have to start developing a new trend.Conditions/Events determining the success/failureSuccessIf the trend increases the profit and bring success of NestlIf consumers accept our products and get satisfaction from itIf the demand of our frozen products will be higher than the demand for our competitors products.bankruptcyIf this trend wi ll bring losses to our companyIf frozen products will not be demanded by our target marketCritical assumptions defining the logic of these responsesThe competition on the food and drink industries nowadays is very large. In order to keep our clients and gain new ones, we must develop the frozen products on the market. Therefore, Nestl will be differentiated from other companies and will gain success by this trend.Step 3. List the driving forces that influence these key factors.Highly mold/PredictableAn increase of people who consume frozen productsIncrease companies profitNew production technologyLess PredictableA decrease of unemployment rate on rural areasMarket SizeIncrease of employees incomeCompetitive advantage of NestlHigher production costsStep 4. Rank the key factors and driving forces by importance and by uncertainty.Step 5. Compose plots for alternate futures that could impact the decision.Best Case ScenarioIf we will be concentrated on frozen products, the demand for ou r frozen products and the profit of Nestl will be higher.In-Between OutcomesThe trend of frozen products will keep things going almost on the same direction, but with a lower profit and production.Worst Case ScenarioIf we will not go through the strategy of our trend, our market size would be decreased and we will no more have competitive advantage. No one would buy frozen products with a high price if they find almost the same product with a lower price.Step 6. Evaluate the decision in each of the postulated scenarios.Best Case ScenarioWe should make this decision because it is a reasonable decision. First of all, the demand for frozen products is higher. Nowadays, most of the people are working and they need products which they can prepare quickly. By informing people about our trend which is Nestls Frozen Products, we will change the peoples behavior so the demand for our frozen products will increase even more.In BetweenOn this case, the things will diverge a little from the be tter(p) case, but we are sure that they will not get very bad. This is not a decision which brings us high profits, but it will help us to avoid failure.Worst Case ScenarioIf we take this scenario, we will face loses for sure. This is obvious that by having a high production cost, the price will increase, which would keep us away from clients.Step 7. Select indicators and signposts for each scenario.Best Case ScenarioDemand for our productsNumber of clients is highProfit is highIn BetweenThe demand for frozen pizzas only (not necessarily other frozen products)Worst Case ScenarioHigh production costs grim number of clientsMany competitorsSummaryDuring the conclusion of the project we have done a lot of research to find proper information for each sector of the project assigned to us. We tried to work together on each sector in order to make the project more cohesive. We found very interesting information about Nestl and how a big company should operate. We used the terminology and c oncepts learned through the quarter in the Global Forces and Trends course. During the completion of the project we found out that Nestl is a very serious company, each department of Nestl has its own responsibilities and it is very well organized. It is important for Nestl to observe forces and trends that are affecting the food industry nowadays. It is essential for the company to maintain its market shares and its position in the global market through following the current trends such as low and no fat products, use of green technology, farm friendly (use of organic and natural sources), healthy and tasty drinks, frozen products and so on. We could expand our knowledge if continue to do more research and research the company even in more details.BibliographyGlobal 500. CNN Money. CNN, 01 Jan. 2009. sack up. 8 Feb. 2010. .MARKETING PROCESS OF NESTLE CORPORATION. Http//www.scribd.com. Nestle Corporation, 29 May 2009. Web. 8 Feb. 2010. .Nestl. Nestl Corporation, n.d. Web. 8 Feb. 2 010. .Nestl due south Africa. Nestl Corporation, n.d. Web. 8 Feb. 2010. .AppendixArianit BllacaKosova, Gjilan044 399 364emailprotectedEducationCadet of Kosova Security Force, expected graduation 2011.Expected to graduate with the rank of LieutenantStudent in American University in Kosova, expected graduation 2011. bach of Science in Applied Arts and ScienceMajor Management Media and Graphic Communication Minor Public indemnityGymnasium Zenel Hajdini Gjilan, Kosova 2004-2007Related CourseworkManagement College Math for Business II Writing SeminarMicroeconomics Statistics I Creative and Critical ThinkingMacroeconomics Comparative Politics Ind. and Org. PsychologySmall Business Manag. Advertising Principles Global LiteratureMarketing Written argument Managing Media PresentationGeneral SkillsComputer skillsOperating Systems Windows XP, Windows Vista.Software applications adobe brick Premiere Pro, Microsoft military position Packet, Photoshop CS4.LanguagesAlbanian nativeEnglish flu entHobby Photography, Basketball, Music.Work ExperiencePrivate in maintaining administration of the cadet corps. Years 2008- 2009Shop assistant in a supermarket. Year 2008ReferencesAvailable upon request.Gzim OsmaniGjilan 60000, Kosovaemailprotected+377 (0)44 761 573 (Mobile)ObjectiveAn internship position with a consulting company.EducationAmerican University in Kosovo, AAS graduate 2009Present-American University in Kosovo, expected graduation 2011Bachelor of Science in Applied Arts and Science1st Major Management2nd Major Media Graphic CommunicationsMinor Public polityPresent-Cadet of Kosova Security Force, expected graduation 2011Expected to graduate with the rank of Lieutenant2004-2007 Gymnasium Zenel Hajdini Gjilan, KosovaMathematics ITRelated Coursework Photo Imaging with Computers Design for Print and Web Managing Media Presentations Fine Arts Visual Arts Advertising Principles Marketing Communicating in Business On Camera, On Mike College Math for Business I II Mic roeconomics Industrial Organizational Psychology Macroeconomics Statistics I Research Techniques Small Business Management Stress ManagementWork Experiences2002-2005 Grocery store, Cernic, Gjilan Responsible for holding accounts cashier.2006 (July December) Vision Computers, GjilanInstall the PC hardware and software, adjust hardware software problems.2009 (January August) Non-Commissioned Officer for administrative issues in the Center for Universitary Studies, Kosova Security Force. (Cadet Corporal for administrative issues CUS, KSF)2009 (August December) physical exertion Sergeant Squad Leader (Cadet. Sgt. Squad leader, CUS, KSF)2009 Present Staff Sergeant (Cadet Staff Sgt. Platoon leader, CUS, KSF)General SkillsComputerOperating Systems Windows 98/2000/XP/VistaSoftware Applications Adobe Photoshop CS3, Adobe Illustrator CS3, Microsoft Office Package (Word, Excel, PowerPoint, Visio Drawing, Publisher, Access), Windows Movie Maker.LanguagesAlbanian nativeEnglish flu entGerman elementaryDriving license B category (2007)Other Activities2004-2007 Member of NGO Global Motion Social Theatre, Gjilan2002-2006 Member of Scouts de France Gjilan Cernic