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Our group has made a decision to choose Nestlé Company for our research. Our study was to execute research on Nestlé Company's general view because it would provide us with a wide range of topics for example what is their favorite Nestlé products, why so on Nestlé products, what is their opinion on the business and others. The research would be predicated on information from the web, questionnaire, and interview. The questionnaire and interview were done at Tunku Abdul Rahman College in Setapak. For the questionnaire and interview, most of us had made a decision to choose 50 students from year two Diploma running a business Administration (2DBU), students. Our key findings showed a very positive response to Nestlé products and its own brands. The results had shown that the 50 students trusted the Nestlé Company very much. They have grown to be a fan of the Nestlé products over time. Even though there was one student who was simply not interested in Maggi but she did like their other products and did trust the business. So, it was concluded that the research was satisfying because most students really liked the merchandise so much and are extremely loyal customers to Nestlé. They had used the products in a quite very long time.
The history of Nestlé started out in Switzerland in 1867. Henri Nestle, the pharmacist had learned nutrition food supplements to overcome the challenge of malnutrition. He helps an infant who was struggling to accept his mother's milk by using his product called Farine Lactee Nestlé. Then saves the life span of the infant. Henri used his surname, which means 'little nest', in both the company name and the logotype. Nestle means little nest which symbolizes security, family, and symbol of company's care and attitude to life-long nutrition. Nestlé's success using its product innovations and today has converted into a world-leading Food Company. Today, more than 5000 employees work in Nestlé Company. The Nestle Company also produces more than 300 HALAL products in Malaysia such as the brand Milo, Maggie, Nescafe, and Kit Kat have been trusted by household names and enjoyed for the generation today. Nowadays, Nestle products can be purchased in every country in the world.
The objective of this report is to study Nestlé Company's generally speaking profile. Do research on Nestlé products and with respondents to provide a view on Nestlé and some improvement or suggestion. Besides, is to research and analysis the Nestlé Company SWOT analysis (Strength, Weakness, Opportunities, threat). This proposal aims to provide recommendations on improvement in Nestlé products and how can Nestlé Company satisfied their customers' needs.
The report investigates the general profile of Nestlé products preference by Tunku Abdul Rahman College students from Business Administration (DBU 2) only. The other Tunku Abdul Rahman campus branches aren't one of the reports. It focuses on Nestlé products and exactly how consumers think about them. They were only 50 students to survey for this report. This recommendation is to improve Nestlé products and satisfying customer needs. If a long-term solution suggested doing more health science research to develop more nutrition level of the meals.
Findings from Internet
Nestlé Company owns several brands in their product such as junior food, coffee, beverages, culinary product, and others as well. The brands include Milo, Nescafé, Nestum, Maggi, and many more. Based on Nestlé's sales report, MILO, Coffee-mate, and Nescafé will be the best products sells. A culinary product like Maggi is the following best sells. A lot of people prefer to drink Milo or Nescafé in the morning as their breakfast drinks. Nowadays, there are many selections in Milo. More choices are given to acquire their customer's need. Now, Nestlé is promoting their new product such as 'Milo Sejuk', Mat Kool Spiro, and more to attract their customers. Many people prefer to buy Nestlé Company's products because their brands are trusted.
Besides that, Nestlé Company also provides wellness quiz and tools because of their beloved customers, for example, BMI Calculator and Waist Hip Ratio. When using these tools, everyone can easily look for their body weight whether is standard, underweight, or overweight. From then on, when you understand your weight, you can control or sustain your body weight by boost your diet or sustain your diet. Every Nestlé's product has a simple device called Nestlé Nutritional Compass. It offers the merchandise information clearly. This can help us to make healthier choices when buying their product. Apart from that, Nestlé provides an application to help those who are not very well at cooking. The software provides step by step cooking guide for the users. There are plenty of recipes give example how to bake honey chicken, how to cook Tom Yam fried rice, steps to make Chocolate Milo, and more. For individuals who are interested can simply try it out. It is easy to do it by just follow the task distributed by.
Nestlé research and development adjust to local consumer's trend in lifestyle, culture, and purchasing power. (Nestlé, Consumer Needs) This characteristic of consumers makes Nestlé research and development more understand about customer needs and also to make services. Besides it also does nutrition research to boost the nutrition level and tasty products. It makes all products standardize and safe to be consumed.
Nestlé Company offers great career opportunities for many who interested in expert skills and be competent for individuals who desire to excel in their careers. Nestlé company provides rewarding career and additional development to those who would like to work in Nestlé company. Next, Nestlé set the principle to organize their organization, and exactly how to treat each other. The principle set by Nestlé Company's Trust, Respect, Involvement, and Pride, motivates them to run the organization in a successful way. Furthermore, Nestlé company also provide a training program Nestlé Management Trainee program) to develop the strength of employees. The Nestlé Company's looking for applicants whose holder degree cert with a minimum CGPA 3. 2 and active in curricular activities. Programs offered by Nestlé such as positions in marketing & sales, supply chain, human resource, and even more.
Findings from Sales
Table 1: Sales of Nestle Product in Year 2011
Source:Nestle:http://www. nestle. com/Common/NestleDocuments/Documents/Library/Documents/About_Us/Quick-Facts-2011-EN. pdf
According to Nestlé company sales, the bigger sales are powdered and liquid beverages with 18, 204 sales. The products with high demanded that happen to be Milo, Nescafé, and Nestea. The lower sales are mineral water at 6, 526 sales. The sales of milk and Ice cream are 16, 406. The merchandise is Nestlé NIDO, Nestlé Coffee-mate, Nestlé Ice-cream, and Dreyer's. Nutrition and healthcare products have typically sales compare to the higher sales with the sales of 9, 744. Nutrition and healthcare products are undoubted as, Nestlé Nutrition, Nestlé NAN, and Nestlé Gerber. Furthermore, prepared dishes and cooking aids are like Maggi, Hot pockets, and Lean cuisine with 13, 933 sales. The confectionery products like Kit Kat, Milo choco bar, and Nestlé Crunch with the sales of 9, 065. The PetCare products possess sales of 9, 764. For example products like Purina, Friskies, and Dog Chow. The full total sales of most Nestlé products are 83, 642 in the 2011 year. The sales of 2011 have decrease by 9, 373 of sales from 2010.
Findings from Nestlé Company SWOT analysis (Strength, Weakness, Opportunities, Threats)
The Strength of Nestlé Company is having been a trusted Company for over a century of history. Penetrate the market share easily in the first stage, because the purchase price for the merchandise is low and today the Nestlé market share price is high at 54. 100. Nestlé products mix with many extensions of products offering high-quality brand and product that are well-known and top-selling brands. For instance, Nestlé brands are Milo, Maggi, Kit-Kat, Nescafé, and Häagen-Dazs. Research and development (R&D) are one of the strengths of Nestlé, it helps develop new products. Besides, it helps to improve the nutrition level, taste, and safety to be consumed.
However, the weakness is Nestlé getting into the markets that already are mature and can have tough competition between opponents in the market. Complex supply chain management usually happens in rural places such as India. The factory requires a good working environment, hygiene therefore it can produce good quality products. High distribution cost because not absolutely all products are manufacture in the country.
In addition, the opportunity for Nestlé is the company can expand its product line such as the new "Milo sejuk" by differentiating the merchandise. Besides, it has the chance to expand to a smaller towns or geographical areas. Its chance of Nestlé is the lower cost of raw material and produce a product that is cheaper. Since cost is lower the manufacturer is mostly positioned in Asia countries such as India for manufacturing goods.
The Threats is Nestlé Company has many opponents to be competing in the market. For instance company like Kraft food, Hershey, Ovaltine, and Cadbury. The Changing consumer trend in products due to the launch of new products by a competitor. An existing competitor may take over Nestlé consumers by increasing the merchandise lines and by giving customers all of the choosing the products and it threatening to Nestlé. Nestlé also has to follow a local policy made by governments to produce certain products or goods.
Findings from interview
Our group has conducted the interview on 10 students. Based on our findings, we've found out that most students have been using Maggi and Milo for so a long time. Three students have been using the merchandise for 19 years and two students have been using the merchandise for 15 years. Furthermore, four students have been using it for 18 years which was the highest based on our findings. All the students have said in the interview that they like this product a lot because they had been using it given that they were little such as products like Milo. They like both of this product due to its taste which most of them will describe it as very tasty and delicious. Furthermore, one student describes the taste as fantastic. These students said that Maggi was convenient because it only takes about five minutes to get ready and usually if they already hungry they'll make Maggi eat. Besides that, it is an instant noodle that tastes good. Moreover, they also felt these products are wonderful since it was easy to find and both of it meets their taste bud. Then, one student has been using these products for three years only. He did like the merchandise but not too much.
In addition, we discovered that Milo was the highest product that they can buy because the majority of them like the taste of Milo. Meanwhile, students said it was good to drink Milo for breakfast. Plus, they are drinking Milo since they were little. Nescafé was the next highest product they'll buy. Most of them agree with the taste of Nescafé that was tasty to drink not like some other coffee. Then, the third-highest product was Kit Kat. They described Kit Kat as one of these favorite chocolate to eat because it was delicious. This is because of the taste of it which is sweet. Maggi was at fourth because of its taste and also easy to get ready for this. A fifth was ice-cream by Nestlé. The students like the taste of the ice-cream that was very sweet and has many flavors that they could choose from. Furthermore, some like to eat ice-cream because to cool down their body. The final product was Coco Crunch since it is a wholesome cereal food to eat for breakfast. But, one individual said that she will buy Nestle products depends on her needs. It is because she also likes products from other brands.
Besides that, all of the students found that the nutrition information is very informative. Moreover, almost all of them found the nutritional information helpful because it enables you to knew about the nutrient contains in the Nestlé product. So, they knew how much protein, vitamin, and fiber consumed by them when they eat the Nestlé product. Plus, they also would notice which kind of fat and how much would it contain in the merchandise. Moreover, they can watch what types of products supply the best or good nutrients for them because they needed a lot of energy.
Then, we discovered most students haven't any complaint about Nestlé products so far except for one student only that have a complaint. Many of them really like the products. As we could see obviously throughout the interview that they had become a fan of Nestlé products for so many years. Some students concur that the Nestlé product was quite good in comparison to other brands that already been in the market. Moreover, a student said it was hard for other brands to contend with Nestlé because Nestlé has been producing many good quality products searching for so a long time. Then, they haven't any problem with the Nestlé products and its brands. They had been using the merchandise for so a long time and didn't face any problem. The merchandise by Nestlé is great so they don't really have anything to complain about. But there was one student who thinks Maggi was bad. She said that it had not been good for your health to be consumed often. If there is any severe case then this will threaten the Nestlé Company.
Besides that, we also discovered that most of them wanted Nestlé to produce more products and give more choices in the market. A few of them said they will make a new flavor for yogurt and ice-cream. Furthermore, they all wanted Nestlé to lessen the price tag on their product. So, it will be easier for them to buy the product on daily basis. Then, some said that Nestlé could improve their product quality by following the current demand in the market and see the feedback from the market and customers. Plus, they wanted Nestle to do more promotions on their products for students so they could buy them. They also said that Nestlé could give free gifts to their customer when they purchase the products. This may help retain their customers.
Findings from Survey/Questionnaire
Out of the 50 respondent from DBU year two students who took the questionnaire, 49 of they satisfied with Nestlé product and they believe Nestlé is a trusted company because these were in the market for over a century and produce more good quality products. Besides that, Most of them agreed that it is a realistic price yet somehow some said that they are incredibly expensive. According to our respondents, some said the product of Nestlé can't be consumed by every selection of ages so that as they give a reason that coffee product is not ideal for children. Moreover, the latest product 'MILO SEJUK' has come to many people's mind and yet almost all of them said it is delicious and few of them said it isn't delicious. The respondent claims it is easy to buy Nestlé products at any store such as supermarkets and grocery shops. In addition, we notice that the respondents are very often purchasing Nestlé products. Lastly, You will find suggestions from some students to do more promotions should be held on to increase customer's awareness and purchasing rate until it ends up being the household's brand in the market mainly.
Table 2: Source from questionnaire below shows student DBU year two's the most preferred on Nestle products and what DBU year two student applying for grants Nestle products are.
The problems faced by the buyer in Nestlé Company Product is mainly on their nutritional. From our internet research, we realize that many people complain about nutrition.
The first problem is nutrition for the elderly, we notice that it is a huge extent by way of a person diet and also their nutrition consumption. Firmly taking improper nutrition and an unbalanced nutria diet can boost the risks to possess the disease. Secondly, Children obesity caused mainly because they're consuming too much chocolate and confectionary, going for a lot of chocolate lead them to have the disease at an early age. Lastly, inside our research, we realize that Nestle is producing fewer energy beverages.
Based on our research, we will like to recommend to Nestlé to create more products that are suitable for older people such as protein milk and cereal with necessary nutrition where every older people can make it as their daily use as well as should produce some organic and natural product to whom are extremely health conscious so it can be considered a healthy snack. Since childhood obesity is increasing, Nestlé can produce a chocolate bar with less sugar so that obesity won't increase. Moreover, Nestlé should produce more energy drink that is well suited for all ranges such as students and folks that is active in their lifestyle.