Global Forces And Trends The Nestle Company Marketing Essay

orbiculate Forces And Trends The cling to Comp whatever Marketing EssayAfter we skimmed by gist of the hatful 500 list of the companies, in that location were a lot of cho spyglasss of salutary known companies, however, we picked up Nestl Corporation. Since we grow up with Nestls intersections which argon nutritionary and healthy wares, and at the equivalent sequence actually tasty, it seemed interesting for us to do the be after about this vigorous known Corporation.harmonize to the authorised website of the Comp any(prenominal), Nestl was formed by Henry Nestl in 1867. He was a pharmacist. In the beginning he started to produce draw provender for freshlyborn babies, which was the head start disengage out cereal for children. The smart set was turn up in Switzerland, where the actual king-sizest head dirt is located level off today. Then, in short period the company started to grow and splay, and as well offering a large variety of products. at one timea days, the company is a corp which has multiple stockholders. Throughout its existence, Nestl has unified with some international companies. For framework, in 1905 merged with a Anglo-Swiss milk company. (MARKETING puzzle out OF NESTLE CORPORATION) In 1998 Nestl leveraged the UK largest chocolate factory, therefore it make some early(a) agreements with some other companies. In 2002, Nestl made a partnership with Coca-Cola, then with General Mills, LOreal. These mergers helped Nestl expand their mart sh atomic number 18s on the ball-shaped international securities industry. (Nestl.)The stake severalize of Nestl comes from Henries sur pertain. It is a short name which can buoy be easily remembered. It is a well known and everyone can identify its logo. The graphic symbol of Nestls products made the brand easily identified, including the guideword of the brand, Good Food, Good Life. Since Nestl is a company which ope footsteps in the global grocery, it essence that its p roducts be outflank worldwide and they are available whenever consumers need them.Nestl all everywhere the time has developed and embraces to affirm a strong story on the Food Industry. We consider that Nestl is on the stage of brand assertency. This means that costumers insist on approachting Nestls products, and this is considered to be a big dangerous 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 worldwide 500, the stockholders equity is 46,006.2 million dollars. (Global 500) The board of directors represents the stockholder on managing the corporation.Nestl deals with manufacturing of products, so, its pillowcase of business is manufacturing. Nestl produces a fairly convertible sort of individual products. Its products are produced on similar ways, they hand fairly similar prices, which make up a gr feed in product line. They produce milk and chocolate products, water, baby victuals, cof bung, and so on. Since Nestl is a considerable corporate, they produce on large amounts. We know that when a product is being produced in large amount, its take cost are disgrace, comparing to products produced on small amounts, thus these lower production costs leads Nestl to bring its products on the commercialise with intelligent prices, from which the consumers benefit in a flash. Furthermore, they use a production program which includes green technology (environmental friendly technology) that saves electricity, does not pollute the air which leads to consumers benefits.They sell polar types of chocolates, ice creams, coffees, inwrought water, baby food, flavored milks, etc. Some of the products offered from Nestl are NESCAF, NESQUIK, Hot Chocolate, Cocoa, Chocolates, AERO measuring stick ONEChocolate AssortmentsCHOCOLATE LOGCLASSIC SlabsCRISP concretionBaking ChocolateKIT K ATTEXMILKY BAR milo maizeNestl GOLDROLOSMARTIESSUCROSE FREEPowdered Milk, Nutren ShakesConvalescing MalnourishmentDiabetes SupplementsCritical give careNestl Baby Foods, CERELAC GoldCERELACNESTUMInfant FormulaNestl pisss, Still SparklingFlavouredWater DispensersImportsIce Cream, ImpulseTake HomeOut of HomeNestl Cereals, and so on.Consumers whitethorn benefit in different ways from depraveing Nestls products. From the consumers saddle of view, when we decide to buy something to eat or drink, we want to guide the most 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 sound prices, we cerebrate 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 only from the milk producers wh o grow and give food to their cows in essential ways.All Nestl products are consumeed, because Nestl first makes research and commercialise psychoanalysis then starts to produce its products. But still chocolate products are the most call fored products from Nestl.In edict for Nestl to grow and expand its trade share is to represent up and to adapt to the flowing veers that are alter the food industry. For example, the abridge of customers demanding low and no fat products is increasing, and if Nestl develops a strategy to adapt and expand production of low and no fat products, this would be a maturement opportunity. Franchising is perceived as a way for companies to expand on other markets. In our case, this as well would be a growth opportunity, however, they should supervise and witness and see if the franchisee is maintaining the quality standards that the Nestl caller-out sets to them. Also Nestl officials should make sure that the franchisees are maintaining th e prestige and the re portionation of the brand.The corporate goals and objectives are to maximize their profits. They tend to secure this by adverting consumers demand, by offering nutritional products which taste good, get by up with forms.There are many resources for producing products associate to food industry. Nestls victor is reliant on fresh milk, cocoa, sugar, water, power supply, materials cogitate packaging, technology, cargo ships modes.Suppliers define success when there is a huge demand for their products, go the stakeholders define success if they achieve to add the market shares, having enough resources to meet the demand, and maximizing profits by increasing sales.Market AnalysisNestls primary physical object is considered to be multitude of all ages. In this play there are included infants, children, teenagers, adults, and elderly plurality. If we take age into consideration, we conclude that it is a factor that distinguishes the consumers, since Nest ls has products made especially for infants, while on the other hand we take for other products which are targeted to athletes, or to adults, such as coffee. Despite of the age, gender, income, and education level are not factors to be included in targeting Nestl consumers. There is not a special product of Nestl which is utilise 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 unendingly supply us with new products, we limit Nestls products easily and with a fair price. Also, a factor of Nestls success would be seen if they are aware of social responsibility meaning that they should care more for the benefits of the rescript as a whole and not only for companies profits.In general, the food industry is in the level of steady m arket that does not unavoidably grow since people constantly use food products because they are need goods which no one can substitute them with something else. Furthermore, even if Nestl is always manner of speaking new products on the market, since the population is still growing, we cannot say that it is being fixed on the growing level.SWOT analysisStrengths Nestl has a very organise 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 from apiece one sector has their CEOs, then it has the executive board and in the top is the CEO. The hierarchy on Nestl works perfectly. Efficient chain of supply, it delivers its products in a good condition in a fast way. Furthermore, it is a Socially responsibleness and innovative company. It has skilled and educated employees.Weaknesses Since Nestl develops many products, it is impossible to promote each of them. Another weakness is that Nestls products are dependable on milk, any global disease on cows may deem-to doe with directly on Nestls production.Opportunities Nestl has many growth opportunities which are considered to be up-to-date trends that allow the company to extend its market. If Nestl catches up with some of the trends that are takeing food industry then it may be an opportunity to add their profits.Threats As a threat that intimidates the company may be the current global economic crises. Nestl has to react fast with a strategy in severalise to pass the world recession without many losings. It may sabotage into a disaster for the company if they ignore what is happening in the global economy. Another threat is competitions operations.PEST analysisPolitical The governing plays a role on Nestle in terms of the rules that the government makes related to the food industry in general. For exam ple failing to meet any standard of quality, hygiene or other set by the government may offspring 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 recession occurs Nestle go away be affected, and result in possible losses. Another way of economic involvement is the value rises which similarly 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 everyday use or necessity.Technological Technological advancements always shape the industries adjustment the way they are produced, and makes industries much more productive, scarce also the need for employees is lower. With the new 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 air division 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 loose product markets, for example, in the case of Nestl would be beverage and then as stated earlier segment this market on only a relatively homogeneous group of consumers, such as athletes.According to Fortune 500 the five most infl uential competitors of Nestl are considered to be Unilever, PepsiCo, Sara Lee, Groupe Danone, ConAgra Foods. However, Nestl has receiptss over these particular competitors since it is a larger company and can produce with lower cost, thus the products 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 constitution and so forth, some of them also use direct advertisement a impinge onst Nestl, for example PepsiCo. According to the research that we have done Nestl maintains to be ahead of these companies, so they are not taking market shares from Nestl.In order to increase its market shares, Nestl Corporation must(prenominal) 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 budget 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 plan has an important role on promoting Nestls products therefore, advertising a product 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, red-hotspapers, and Magazines. (MARKETING PROCESS OF NESTLE CORPORATION) Beside advertisement, Nestl pays a lot of attention on the Public traffic field. They have a 24 hours media helpline so that journalists can contact them and require knowledge 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 leave alone. They have developed or branded their CEO in a very pro fessional consequence 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 point on the competitors pricing strategies. It emphasizes on the market demand of the product. Nowadays market is going through tough recession, so they set their prices keeping 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 meter 1 State the focal issue or end facing the enterprise.When a customer want to buy a product he goes through a purpose 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 the buyers. Buyers allow for always choose the products that are consistent of thoroughgoing and natural ingredients. In our case Nestls most important materials that purchases are milk and cocoa. And it is very important that Nestl purchases total and natural milk and cocoa for the production of its products. whole tone 2 List the key factors that influence this decision.Certainly success forget 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 entrusting differentiate our products not only with our brand name, Nestl, but also with its farm-friendly sign. Whereas failure w ould be considered if we fail to purchase innate and natural milk and cocoa. Whether it is because we cannot afford to buy them or nobody produces positive and natural milk, it still would be considered failure to us.In order to purchase the organic and natural sources, we need to know our 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. standard 3 List the brainish forces that influence these key factors foreseeablePeople will qualify 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 products short(p) predictableOther food industries will use the same strategy.higher(prenominal) competition.Highly uncertainCustomers will turn down the farm-friendly products.The number of farm-friendly farmers will decrea se.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. shell lawsuit ScenarioThe best 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.Worst facial expression 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. accordingly 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. halfway case ScenarioThe mediate case scenario would b e if people will buy the organic and natural products but there wouldnt be any mounting in the market shares or any change in the demand for Nestl products.Step 6 appreciate the decision in each of the postulated scenarios.Best consequence ScenarioWe have to make the decision of producing our products with organic and natural ingredients because 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 r ehab in a near future.Step 7 select 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-between case ScenarioCompetition.The market shares status steady.Trend 2Recently Nestl has merged with the Krafts Food Company so they will start to offer stock-still pizzas. Since it is easy for people to pitch rimy products, it is considered that this trend will have positive do 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 get 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 determine 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.FailureIf this trend will 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 Predetermined/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 our 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 ratting 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 best 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 high wampum is highIn BetweenThe demand for frozen pizzas only (not inescapably other frozen products)Worst Case ScenarioHigh production costs small number of clientsMany competitorsSummaryDuring the completion 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 concepts 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 coul d expand our knowledge if continue to do more research and explore the company even in more details.BibliographyGlobal 500. CNN Money. CNN, 01 Jan. 2009. Web. 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. 2010. .Nestl South Africa. Nestl Corporation, n.d. Web. 8 Feb. 2010. . vermiform processArianit BllacaKosova, Gjilan044 399 364emailprotectedEducationCadet of Kosova Security Force, evaluate graduation 2011.Expected to have with the rank of LieutenantStudent in American University in Kosova, judge graduation 2011.Bachelor of intelligence in employ Arts and Science study Management Media and Graphic Communication Minor Public polityGymnasium Zenel Hajdini Gjilan, Kosova 2004-2007Related CourseworkManagement College Math for Business II musical composition SeminarMicroeconomics Statistics I Creative and Critical ThinkingMacroeconomics Comparative Polit ics Ind. and Org. psychological scienceSmall Business Manag. Advertising Principles Global LiteratureMarketing indite argument Managing Media deportationGeneral SkillsComputer skillsOperating Systems Windows XP, Windows Vista.Software applications adobe Premiere Pro, Microsoft Office Packet, Photoshop CS4.LanguagesAlbanian nativeEnglish fluent pursuance Photography, Basketball, Music.Work ExperiencePrivate in maintaining administration of the cadet corps. historic period 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 down 2009Present-American University in Kosovo, expected graduation 2011Bachelor of Science in Applied Arts and Science1st Major Management2nd Major Media Graphic CommunicationsMinor Public PolicyPresent-Cadet of Kosova Security Force, expected graduatio n 2011Expected to graduate with the rank of Lieutenant2004-2007 Gymnasium Zenel Hajdini Gjilan, Kosova maths ITRelated Coursework Photo Imaging with Computers Design for Print and Web Managing Media Presentations exquisite Arts Visual Arts Advertising Principles Marketing Communicating in Business On Camera, On Mike College Math for Business I II Microeconomics Industrial Organizational Psychology Macroeconomics Statistics I Research Techniques Small Business Management Stress ManagementWork Experiences2002-2005 Grocery store, Cernic, Gjilan responsible for keeping accounts cashier.2006 (July December) Vision Computers, GjilanInstall the PC computer 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 collective for administrative issues CUS, KSF)2009 (August December) Drill Sergeant Squad Leader (Cadet. Sgt. Squad lea der, 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 moving picture Maker.LanguagesAlbanian nativeEnglish fluentGerman elementary ride license B category (2007)Other Activities2004-2007 Member of NGO Global Motion Social Theatre, Gjilan2002-2006 Member of Scouts de France Gjilan Cernic