Professional Documents
Culture Documents
Jayesh Budhrani 20
Pawan Lilani 52
Vinita Makhija 55
MISSION STATEMENT
Yes
Markets
No
Technology
No
No
Philosophy
No
Self-concept
Yes
No
No
Nestl at a glance
Sales by rgion
Percentage of total sales in 2008
Europe
36.0%
Americas
42.2%
Asia, Oceania, Africa
21.8%
3.
4.
NESTLE MODEL
SOLUTION
Introduces the nestle supplier code
Monitoring all participants in its supply chain and set clearer labor standards.
Give special training on how to address child
labor problem
RECOMMENDATION
Monitoring all of process for recruitment of child labor
Working with government
RAW MATERIALS
PROBLEM
1.
Unexpected demand by customers
2.
Bad weather and natural disaster
3.
Inaccuracy of orders receives in inventory or stocks in hands
SOLUTION
1.
Manager build multiple relationship with other raw materials suppliers
2.
The surplus products will be sell with promotion to clear the stock
3.
Build the Dealer Management Systems (DMS)
- Dms is a software for solutions that provide tools for managing sales, services,
parts and inventory management, business management, integration, and core
architecture
- Dms was build to maintain the relationship between dealer and consumers
RECOMMENDATION
Import inventories from other region
Not all region has similar demographic factor such as race.
Business-level strategy
Competitors
Many competitors
The same qualities
The same prices
Unilever, Kraft, Master foods
High pressure
Problem
Solution
ANALYSIS
1.
2.
3.
4.
5.
SWOT Analysis
Porters Five Force Model
PEST Analysis
IFE
EFE
SWOT ANALYSIS
STRENGHTS
Unmatched product and brand portfolio.
R&D capabilities.
Distribution channels and geographic
presence.
Competency in mergers and acquisitions.
Brand reputation valued at $7 billion.
Ability to customize and localize products
WEAKNESSES
OPPORTUNITIES
THREATS
Food contamination.
Trend towards healthy eating.
Growth of private labels.
Rising raw food prices.
1.
Threat of Substitutes:
Threat of substitutes for Nestle is also very high.
In all areas of its operations there are multiple
other firms that are offering either similar
products or substitute products. For this purpose
Nestle has to ensure that it offers a product
experience that cannot be imitated and is
demanded by its consumers.
Industry Rivalry:
Industry rivalry for Nestle is very high in no
matter what part of the world it operates in. In
United Kingdom it faces threat of competition
from brands like Kellogs, in India it faces
competition from local brands and brands such
as Knorr which are starting to venture into the
food industry
BCG Matrix
Thus, when all the products of the company are put in
four cells (thus it actually provides an opportunity to
reassess the entire position of the company in terms of
all the products it offers to the market), the market
standing of the company can be analysed in four
different classes namely, stars, cash cows, dogs and
question marks.
Each of these classes have a different meaning
attached to them and can be represented on the matrix .
BCG MATRIX
HIGH
LOW
STARS
Nescafe
Maggi Noodles
QUESTION MARKS
1.
2.
3.
4.
5.
6.
7.
Milo
Nestle Kitkat/Barone/ Munch
Maggi Sauces
Maggi Soups
Nestle Butter
Nesvita
Milk
CASH COWS
Ceralac
DOGS
1. Nestea
2. Milky Bar
3. Nestle Crunch
HIGH
LOW
MARKET SHARE
Product: Nescafe
Position: Star
Product: Ceralac
Position: COW
(The reason why these are is not placed as a dog is that it has the potential to
expand
and also because the product lies in a market with high business growth rate.
The retailers dont give much importance to these items as an item on the
shelf but they also do not completely disregard it off their stores.
WHY?
These might have not seriously taken promotional drive.
The main chunk of advertisements is seasonal
Extensive promotional exercise meant to place it in the mindset of the Indian
psyche.
It has huge avenues for growth especially analyzing the extending Indian
market.
(2) The sales of Maggi Pickles has never really trigged since its launch.
(3) The placement of Maggi Pickles is doubted for the twin reasons of its
high price and packing, which seems to target it to the upper substrata
while the lack of a significant number of variants poses it a challenge to
maintain itself in such households.
(4) It is not a dog because it is not the market which has low growth
rate. In fact the market of packaged pickle is growing but it is Maggi
Pickles which is unable to gather a substantial share in this growing
market.
Comments:
(1) Milky Bar has lost the primary battle which it had with
mindset of the unaware Indian consumers who could
never contemplate a non-brown chocolate.
(2) The market positioning of Nestle Milky Bar has been
only to children (as one can contemplate from the
advertisements which relate only to children in the age
group of 10 -15) and thus it has lost the adolescent
consumer, which is also a
major part of the entire consuming segment of chocolates.
(3) The promotion style of Milky Bar has disappeared. The
advertisements have been too soft and not too impressive.
Thus success of Milky Bar requires rebuilding the image of
Milky Bar.
REFERENCES
Thank you!