Our group has made a decision to choose Nestlé Company for our research. Our study was to execute a research on Nestlé Company generally view because it would provide us with wide range of topic for example what is their favourite 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 was done at Tunku Abdul Rahman College in Setapak. For 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 on Nestlé products and its own brands. The results had showed 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 with Maggi but she did like their other products and did trusted the business. So, it was conclude that the research was satisfying because most students really liked the merchandise so much and are an extremely loyal customer to Nestlé. They had used the products in quite very long time.
The history of Nestlé started out in Switzerland in 1867. Henri Nestle, the pharmacist had learned nutrition food supplement 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 company name and the logotype. Nestle means little nest which symbolises security, family and symbol of company's care and attitude to life-long nutrition. Nestlé success using its product innovations and today has converted into world leading Food Company. Today, more than 5000 employees work in Nestlé Company. The Nestle Company also produce 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 generation today. Nowadays, Nestle products can be purchased in every country in the world.
The objective of this report is to study about Nestlé Company generally speaking profile. Do research on Nestlé products and with respondents to provide 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 recommendation on improvement 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 them report. It focuses on Nestlé product and exactly how consumers think about it. They were only 50 students to survey for this report. This recommendation is to improve Nestlé products and satisfied customer needs. If long-term solution, suggested to do more health science research to develop more nutrition level of the meals.
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 the Nestlé's sales report, MILO, Coffee mate and Nescafé will be the best products sells. Culinary product like Maggi is the following best sells. A lot of people prefer to drink Milo or Nescafé at the morning as their breakfast drinks. Nowadays, there are many selections in Milo. More choices are given to acquire their customers 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 product 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 choice when buying their product. Apart from that, Nestlé provide an application to help those who are not very well in 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 more. For individuals who are interest 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 consumer make Nestlé research and development more understand about customer needs and also to make services. Besides it also do nutrition research to boost the nutrition level and tasty products. It makes all products standardise and safety to be consume.
Nestlé Company offer great career opportunities for many who interested with expertise skill and be competent for individuals who desire to excel in their careers. Nestlé company provide rewarding career and additional develop to who would like 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, it's motivates them to run organization in successful way. Furthermore, Nestlé company also provide training program Nestlé Management Trainee program) to develop strength of employee. The Nestlé Company's looking for applicant whose holder degree cert with minimum CGPA 3. 2 and active in curricular activities. Program offer by Nestlé such as position in marketing & sales, supply chain, human resource and even more.
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 are 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 is undoubtedly 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 confectionary products like Kit Kat, Milo choco bar and Nestlé Crunch with the sales of 9, 065. The PetCare products possess the 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 2011 year. The sales of 2011 have decrease 9, 373 of sales from 2010.
The Strength of Nestlé Company is having been a trusted Company 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) is one of the strength to 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. The complex supply chain management usually happens in rural place such as India. The factory require good working environment, hygiene therefore it can produce good quality products. High distribution cost because not absolutely all product are manufacture at the country.
In addition, the opportunities for Nestlé is the company can expand their product line such as new "Milo sejuk" by differentiate the merchandise. Besides it have the chance expand to smaller town or geographical area. It chance of Nestlé is lower cost of raw material and produce product that is cheaper. Since cost is lower the manufacturer is mostly positioned in Asia country 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 launch new products by competitor. Existing competitor may take over Nestlé consumer by increasing the merchandise lines and by giving customers all of the choosing the products and it threatening to Nestlé. Nestlé also have to follow local policy that made by governments to produce certain products or goods.
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 these product a lot because they had been using it given that they were little such as product 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 convenience because it only takes about five minutes to get ready and usually if they already hungry they'll make Maggi to eat. Besides that, it is an instant noodle that tastes good. Moreover, they also felt these product are wonderful since it was easy to find and both of it meet 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 favourite chocolate to eat because it was delicious. This is because of the taste of it which is sweet. Maggi was at fourth because from it taste and also easy to get ready for this. At fifth was ice-cream by Nestlé. The students like the taste of the ice-cream that was very sweet and has many flavours 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 very informative. Moreover, almost all of them found the nutritional information helpful because it enable you to knew about the nutrient contains in the Nestlé product. So, they knew how much protein, vitamin and fibre 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 product 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 student 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 have been producing many of 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 are great so they don't really have anything to complaint 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 new flavour 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 in daily basis. Then, some said that Nestlé could improve their product quality by following a current demand in the market and see the feedback from the market and customer. Plus, they wanted Nestle to do more promotion on their products for students so they could buy it. They also said that Nestlé could give free gifts to their customer when they purchase the products. This may help retain their customers.
Out of the 50 respondent from DBU year two students who took questionnaire, 49 of they satisfied with Nestlé product and they believe Nestlé is trusted company because these were in market 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 respondent, some said product of Nestlé can't be consumed by every selection of ages so that as they give reason that coffee product is not ideal for children. Moreover, the latest product 'MILO SEJUK' as came to many people's mine 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 product at any store such as supermarket and grocery shop. In addition, we notice that the respondents are very often purchasing Nestlé product. Lastly, You will find suggestion from some student to do more promotion should be held on to increase customer's awareness and purchasing rate until it's end up being the household's brand in the market mainly.
Table 2: Source from questionnaire below shows student DBU year two's most preference on Nestle product and what DBU year two student applying for grants Nestle products are.
The problems faced the buyer in Nestlé Company Product is mainly on their nutritional. From our internet research we realise that many people complains about the nutrition.
The first problem is nutrition for elderly, we notice that it is a huge extent by way of a person diet and also their nutrition consumption. By firmly taking an improper nutrition and unbalanced nutria diet can boost the risks to possess disease. Secondly, Children obesity caused mainly because their consuming to much chocolate and confectionary, going for a lots of chocolate lead them to have disease in early ages. Lastly, inside our research we realise that Nestle is producing less 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 children 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.