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Global Forces And Movements The Nestle Company Marketing Essay

After we skimmed through the Fortune 500 set of the companies, there have been a whole lot of options of well known companies, however, we picked up Nestlé Corporation. Since we grow up with Nestlé's products which are dietary and healthy products, and at exactly the same time very scrumptious, it seemed interesting for all of us to do the project about this well known Corporation.

According to the official website of the business, Nestlé was created by Henry Nestlé in 1867. He was a pharmacist. In the beginning he began to produce dairy food for newborn infants, which was the first milk cereal for children. The business was located in Switzerland, where the actual most significant headquarter is situated right now. Then, in short period the business started to develop and extend, and also offering a sizable variety of products. Nowadays, the company is a organization which has multiple stockholders. Throughout its presence, Nestlé has merged with some international companies. For instance, in 1905 merged with a Anglo-Swiss dairy company. (MARKETING PROCESS OF NESTLE Organization) In 1998 Nestlé purchased the united kingdom largest chocolate manufacturer, then it made various other agreements with some other companies. In 2002, Nestlé made a collaboration with Coca-Cola, then with General Mills, L'Oreal. These mergers helped Nestlé grow their market shares on the global - international market. (Nestlé. )

The brand of Nestlé originates from Henries surname. It is a short name that can be easily remembered. It really is a well known and everyone can identify its logo design. The quality of Nestlé's products made the brand easily determined, including the slogan of the brand, "Good Food, Good Life". Since Nestlé is a company which runs in the global market, it means that its products are disperse worldwide and they are available whenever consumers need them.

Nestlé over the time has developed and continues to maintain a strong reputation on the Food Industry. We consider that Nestlé is on the stage of brand insistency. Which means that costumers insist upon getting Nestlé's products, and this is known as to be a huge advantage for the company. (Nestlé)

The legal status of Nestlé is a corporation, which really is a business which includes stockholders. The primary headquarter of Nestlé is at Switzerland; Peter Brabeck-Letmathe is the CEO. According to the Global 500, the stockholders equity is 46, 006. 2 million dollars. (Global 500) The plank of directors presents the stockholder on managing the organization.

Nestlé handles creation of products, thus, its kind of business is making. Nestlé produces a reasonably similar group of individual products. Its products are produced on similar ways, they may have reasonably similar prices, which will make up a great products. They produce milk and chocolate products, normal water, baby food, coffee, and so forth. Since Nestlé is a huge corporate and business, they produce on large amounts. We know that whenever a product is being produced in great deal, its production costs are lower, checking to products produced on smaller amounts, thus these lower production costs leads Nestlé to bring its products on the market with realistic prices, from which the consumers profit directly. Furthermore, they use a production program which includes green technology (environmental friendly technology) that will save electricity, will not pollute the air which brings about consumers benefits.

They sell different kinds of chocolates, snow creams, coffees, natural water, baby food, flavored milks, etc. Some of the products offered from Nestlé are NESCAFÉ, NESQUIK, Hot Delicious chocolate, Cocoa, Chocolates, AERO

BAR ONE

Chocolate Assortments

CHOCOLATE LOG

CLASSIC Slabs

CRISP

CRUNCH

Baking Chocolate

KIT KAT

TEX

MILKY BAR

MILO

Nestlé GOLD

ROLO

SMARTIES

SUCROSE FREE

Powdered Milk, Nutren Shakes

Convalescing & Malnourishment

Diabetes Supplements

Critical Care

Nestlé Baby Foods, CERELAC Gold

CERELAC

NESTUM

Infant Formula

Nestlé Waters, Still & Sparkling

Flavoured

Water Dispensers

Imports

Ice Cream, Impulse

Take Home

Out of Home

Nestlé Cereals, and so on.

Consumers may benefit in different ways from buying Nestlé's products. Through the consumer's point of view, when we end up buying something to consume or drink, we want to get the most satisfaction from it. Thus, we look at its price first, then its ingredients, if it's nutritious, if it is delicious, and healthy. Since Nestlé's company aim is to create healthy, tasty, nutritious food, and they feature them at acceptable prices, we conclude that consumers benefit by purchasing Nestlé products.

Nestlé's products are considered as high quality products. Furthermore the organic materials for example for delicious chocolate, milk is purchased only from the milk producers who develop and present food with their cows in natural ways.

All Nestlé products are demanded, because Nestlé first makes research and market examination then starts to produce its products. But nonetheless chocolate products will be the most demanded products from Nestlé.

In order for Nestlé to increase and extend its market show is to follow up and also to adapt to the current trends that are affecting the food industry. For instance, the development of customers challenging low no excessive fat products is increasing, and when Nestlé develops a strategy to adapt and expand production of low no fat products, this might be a growth opportunity. Franchising is perceived as a way for companies to extend on other marketplaces. In our circumstance, this also would be a growth opportunity, however, they need to supervise and control and see if the franchisee is retaining the quality expectations that the Nestlé Company pieces to them. Also Nestlé officials should make sure that the franchisees are retaining the prestige and the reputation of the brand.

The corporate and business goals and goals are to maximize their earnings. They tend to accomplish that by getting together with consumers' demand, by offering healthy products which taste good, coping up with styles.

There are numerous resources for producing products related to food industry. Nestlé's success is reliant on fresh dairy, cocoa, sugar, normal water, power supply, materials related presentation, technology, transportation methods.

Suppliers define success when there's a huge demand for their products, as the stakeholders define success if indeed they achieve to raise the market stocks, having enough resources to meet up with the demand, and making the most of income by increasing sales.

Market Analysis

Nestlé's primary focus on is known as to be people of all ages. With this range there are included babies, children, teenagers, individuals, and elderly people. If we take age into consideration, we conclude that it is a factor that distinguishes the consumers, since Nestlé's has products made especially for newborns, while on the other hands we've other products that are targeted to sportsmen, or to men and women, such as caffeine. Despite of the age, gender, income, and education level are not factors to be contained in targeting Nestlé consumers. There isn't a particular product of Nestlé which is focused on males or females, or to people with different levels of education, while as it pertains to income, since our products aren't expensive, we don't consider income one factor to target Nestlé's products.

From the consumers' perspective, we define Nestlé as a successful company if they meet our requirements, they always source us with new products, we find Nestlé's products easily and with a good price. Also, one factor of Nestlé's success would be observed if they're aware of cultural responsibility and therefore they should care more for the benefits associated with the society as a whole and not only for companies revenue.

In general, the meals industry is the level of steady market that does not necessarily grow since people always utilize food products because they are requirement goods which no one can swap them with something else. Furthermore, even if Nestlé is definitely bringing services on the market, since the populace is still growing, we cannot say that it is being put on the growing level.

SWOT analysis

Strengths - Nestlé has a very organized structure, it handles to lead in a powerful way more than 276 000 employees and that will require great organizational skills. Thus, one of the talents of the business is known as to be the organizational composition, Nestlé is divided in areas and each sector has their CEO's, then it gets the executive panel and in the very best is the CEO. The hierarchy on Nestlé works flawlessly. Efficient chain of resource, it provides its products in a good condition in an easy way. Furthermore, it is just a Socially Responsibility and progressive company. They have skilled and informed employees.

Weaknesses - Since Nestlé evolves many products, it is impossible to market all of them. Another weakness is that Nestlé's products are reliable on milk, any global disease on cows may impact directly on Nestlé's production.

Opportunities - Nestlé has many progress opportunities which are considered to be current styles that allow the company to increase its market. If Nestlé attracts up with a few of the movements that are affecting food industry then it can be an opportunity to increase their revenue.

Threats - As being a menace that intimidates the business may be the current global economic crises. Nestlé has to react fast with a technique to be able to pass the world recession without many loss. It could overturn into a tragedy for the business if they dismiss what is happening in the global market. Another menace is competitions businesses.

PEST analysis

Political - 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 arranged by the government may lead to some sanction or payment for the company.

Economic - When it's about economics, companies always dread any recession that might occur. So if any recession occurs Nestle will be infected, and result in possible losses. One other way of economic engagement is the tax increases which also interrelated to the Political (government restrictions). However if the current economic climate is doing well it means that also Nestle anticipations are to prosper on the market too, because it has the necessary conditions.

Social - Change of way of life, income level, place of property, education level are some communal factors, which might have an influence in a corporation. However when it comes to food industry they doesn't make an enormous difference, because food is essential and whether you reside in urban or rural areas, or whether you are informed or not, you will need to eat unless it is an extravagance, and the majority of the Nestle products are for everyday use or necessity.

Technological - Technical advancements always condition the business; change the way they can be produced, and makes market sectors much more beneficial, but also the need for employees is leaner. While using 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 advert of Nestle products is a lot easier with internet, other media channels.

Nestlé uses market segmentation in order to develop a suitable market mixes for different consumers. For instance, they segment market for only normal water consumers or products that happen to be dedicated limited to athletes. First step of market segmentation is to name broad product markets, for example, regarding Nestlé would be drink and then as explained earlier segment the forex market on only a comparatively homogeneous group of consumers, such as runners.

According to Bundle of money 500 the five most influential competitors of Nestlé are considered to be Unilever, PepsiCo, Sara Lee, Groupe Danone, ConAgra Foods. However, Nestlé has advantages of these particular competition since it is a larger company and can produce with lower cost, thus the merchandise can be offered with lower price, this can be seen as a weakness of these companies over Nestlé. They, offer reasonably similar products as Nestlé does. In addition they use many advertisements tools such as, Television, radio, news paper etc, some of them also use direct advert against Nestlé, for example PepsiCo. According to the research that we have done Nestlé keeps to be ahead of these companies, so they are not taking market shares from Nestlé.

In order to increase its market stocks, Nestlé Corporation must continue steadily to develop new products, to multiply even more on the countries that don't have factories. It must cope up with tendencies and makes that are influencing food industry today.

The promotional budget of Nestlé is defined each year. Nestlé for its products uses all known promotional tools. Nestlé's brand placed in a product makes Nestlé responsible for the quality of the product. Advertising plan comes with an important role on promoting Nestlé's products therefore, advertising a product in an efficient way increases chances for the product to reach your goals. They use many ad techniques to promote their products such as Television set, Radio, Internet, Newspaper publishers, and Publications. (MARKETING PROCESS OF NESTLE Company) Beside advertisements, Nestlé pays a lot of attention on the Public Relations field. They have a 24 hours press helpline so that journalists can contact them and find out information whenever they want. Also, Nestlé is rolling out a reputation and maintains that reputation through a variety of pr strategy. The office of PR in Nestlé will maintain a good marriage among employees and develop goodwill. They are suffering from or brand their CEO in a very professional subject and made him well known also developed its reputation worldwide. For their reputation when they may easily contact multimedia to make announcements or PR ANNOUNCEMENTS.

According to Nestlé costs strategy, "Nestlé has its set of techniques for setting the prices of the merchandise. It generally does not primarily give attention to the competitor's pricing strategies. It stresses on the market demand of the product. Nowadays market is certainly going through difficult recession, so they establish their prices keeping in view the purchasing electric power of the customers. Moreover the costs of the merchandise are also put through the kind of consumer product. If the product is an everyday use then it can have the very least price to entice the customer communicate product. Thus the business cannot affect much on the costs. " (MARKETING PROCEDURE FOR NESTLE CORPORATION)

Trend 1:

Step 1: Express the focal concern or decision facing the enterprise.

When a customer need it a product he undergoes a decision process to be able to choose between so many offers from different makers for the same product. Now as it pertains to the meals industry products, there are so many indications that affect a person's decision. If it is plantation friendly than it can be an essential aspect that affects your choice of the potential buyers. Buyers will usually choose the merchandise that are steady of organic and natural and natural ingredients. In our circumstance Nestlé's most significant materials that buys are dairy and cocoa. Which is very important that Nestlé acquisitions organic and natural and natural dairy and cocoa for the development of its products.

Step 2: List the key factors that influence this decision.

Certainly success will be considered that all of the recycleables (milk and cocoa) to be purchased from the farm-friendly sources. When we sell our products we also position the 'farm-friendly' sign on it than customers will distinguish our products not only with this brand name, Nestlé, but also with its farm-friendly signal. Whereas failing would be looked at if we fail to purchase organic and natural milk and cocoa. Whether it is because we cannot afford to get them or nobody produces organic and natural dairy, it still would be looked at failure to us.

In order to acquire the organic and natural resources, we need to know our suppliers. Where are their farms located, is there sufficient hygiene resources, look for possible diseases that cows may have and also some other conditions that would have an effect on the milk quality.

Step 3: List the driving a car forces that influence these key factors

Predictable:

People will change to the merchandise that are farm-friendly (natural & organic and natural).

Nestlé will raise the profit.

Nestlé's brand name will become much better.

Increase in the number of farmers who offer farm-friendly products

Less predictable:

Other food market sectors use the same strategy.

Higher competition.

Highly uncertain:

Customers will reject the farm-friendly products.

The quantity of farm-friendly farmers will lower.

Step 4: Get ranking the key factors and driving a car makes by importance and by doubt.

Step 5: Compose plots for alternate futures that can impact your choice.

Best Case Circumstance:

The best case scenario would be if our customers like the merchandise that produce by the organic and natural and natural ingredients. And if this happens, customers switch their demand to these sorts of products, and certainly we must shift our options in the production of the products. Furthermore we will develop our market because our brand will be stronger and we expect a market growth for Nestlé.

Worst Case Scenario:

The worst case circumstance would be if customers reject the farm-friendly products. And all of our production is a damage for our company. Therefore we will lose our market shares not only for these varieties of products also for other products produced by Nestlé. And this will lead to the weakening in our brand name.

In-between case Scenario:

The in-between case situation would be if people will buy the organic and natural basic products but there wouldn't be any increase in the market stocks or any change in the demand for Nestlé products.

Step 6: Evaluate the decision in each one of the postulated situations.

Best Case Situation:

We have to consider of producing our products with organic and 100 % natural ingredients because customers always tend to buy products that are natural and organic. And in addition products with natural and organic and natural ingredients are much healthier and tastier too, so we provides better and tastier products. By using this farm-friendly strategy of creation we will have an effect on also in the increase of the quantity of farmers in the rural areas.

Worst Case Situation:

If the worst case scenario occurs than Nestlé will for certain face losses in the market stocks and in other industries of the company too.

In-between case Circumstance:

With the in-between circumstance scenario incident Nestlé will most likely face some losses in a few of its industries, but it'll be easier to rehab in a near future.

Step 7: Select indicators and signposts for every scenario.

Best Case Situation:

There will a huge demand for the products with organic and 100 % natural ingredients.

Increase the marketplace shares.

Increase in profit.

Worst Case Situation:

Rejection of farm-friendly products by customers.

High production costs.

Loose the market shares.

In-between case Circumstance:

Competition.

The market shares status: steady.

Trend 2:

Recently Nestlé has merged with the Kraft's Food Company so they'll commence to offer iced pizzas. Because it is easy for individuals to prepare freezing products, it is known as that this trend will have positive effects on Nestlé's profits.

Step 1. Status the focal issue or decision facing the enterprise.

A whole lot of consumers are interested on iced products because it is easy to get ready them. If a person can make a Pizza for five minutes by placing it on Microwave, they will buy it. The focused target because of this products will be people who work and don't have sufficient time for getting ready food. Also, the fact that Nestlé's slogan is Good Food, A HEALTHY BODY, it is obvious that the frozen pizzas will be healthy, wholesome plus they tasty, therefore, there will be a demand for the coffee lover.

Step 2. List the key factors that impact this decision.

In order to achieve this goal, which is to be successful in iced food industry, we should get information from other food companies which offer with frozen products. We will obtain information which we will review, and matching to them we should come up with our products. A significant factor that affects us to the decision is the name in our company (Nestlé), which is a powerful name on the food and beverage industry. People will buy our products more when they recognize that Nestlé is the manufacturer, thus they will raise the demand for the frozen pizzas

There is a success if with this development we boost the production and the earnings to Nestlé.

There is a failure if the mark market won't accept our new products. If they do so, we have to start out creating a new style.

Conditions/Events determining the success/failure:

Success

If the pattern increases the earnings and bring success of Nestlé

If consumers admit our products and get satisfaction from it

If the demand of your frozen products will be higher than the demand for our competition' products.

Failure

If this trend will bring deficits to our company

If frozen products will never be demanded by our concentrate on market

Critical assumptions determining the logic of these responses

The competition on the meals and drink business nowadays is very large. In order to keep our clients and gain new ones, we must develop the frozen products on the market. Therefore, Nestlé will be differentiated from other companies and can gain success by this trend.

Step 3. List the generating forces that effect these key factors.

Highly Predetermined/Predictable

An increase of individuals who consume iced products

Increase companies' profit

New development technology

Less Predictable

A decrease of unemployment rate on rural areas

Market Size

Increase of employees' income

Competitive benefit of Nestlé

Higher creation costs

Step 4. Ranking the main element factors and traveling forces by importance and by doubt.

Step 5. Compose plots for alternate futures that may impact your choice.

Best Circumstance Scenario

If we are concentrated on frozen products, the demand for our frozen products and the income of Nestlé will be higher.

In-Between Outcomes

The trend of iced products will keep things heading almost on the same course, but with a lesser profit and production.

Worst Case Scenario

If we will not feel the strategy of our own pattern, our market size would be reduced and we will forget about have competitive advantages. No one would buy frozen products with a high price if indeed they find almost the same product with a lower price.

Step 6. Evaluate the decision in each of the postulated situations.

Best Circumstance Scenario

We should make this decision because it is an acceptable decision. First of all, the demand for iced products is higher. Nowadays, the majority of the people will work plus they need products which they can put together quickly. By informing people about our development which is Nestlé's Frozen Products, we will change the individuals' behavior therefore the demand for our iced products will increase even more.

In Between

On this case, the items will diverge a little from the best circumstance, but were sure that they'll not get very bad. This is not a decision which brings us high profits, but it can help us to avoid failure.

Worst Circumstance Scenario

If we take this situation, 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 indications and signposts for each and every scenario.

Best Circumstance Scenario

Demand for our products

Number of clients is high

Profit is high

In Between

The demand for iced pizzas only (definitely not other frozen products)

Worst Circumstance Scenario

High development costs

Small number of clients

Many competitors

Summary

During the completion of the task we've done a lot of research to find proper information for each sector of the task assigned to us. We attempted to work together on each sector to make the task more cohesive. We found very interesting information about Nestlé and exactly how a big company should operate. We used the terminology and ideas discovered through the one fourth in the Global Pushes and Fads course. Through the completion of the task we discovered that Nestlé is an extremely serious company, each department of Nestlé has its responsibilities and it is very well structured. It's important for Nestlé to see forces and tendencies that are affecting the food industry nowadays. It is essential for the business to keep up its market stocks and its own position in the global market through following current developments such as: low no unwanted fat products, use of inexperienced technology, farm friendly (use of organic and natural resources), healthy and delicious drinks, iced products etc. We could develop our knowledge if continue to do more research and explore the business even in additional information.

Bibliography

"Global 500. " CNN Money. CNN, 01 Jan. 2009. Web. 8 Feb. 2010. .

"MARKETING PROCEDURE FOR NESTLE CORPORATION. " Http://www. scribd. com. Nestle Corporation, 29 May 2009. Web. 8 Feb. 2010. .

Nestlé. Nestlé Organization, n. d. Web. 8 Feb. 2010. .

Nestlé South Africa. Nestlé Company, n. d. Web. 8 Feb. 2010. .

Appendix

Arianit Bllaca

Kosova, Gjilan

044 399 364

Education

Cadet of Kosova Security Drive, expected graduation 2011.

Expected to graduate with the get ranking of Lieutenant

Student in North american University or college in Kosova, expected graduation 2011.

Bachelor of Science in Applied Arts and Science

Major Management & Press and Graphic Communication Minor People Policy

Gymnasium "Zenel Hajdini" Gjilan, Kosova 2004-2007

Related Coursework

Management College Mathematics for Business II Writing Seminar

Microeconomics Figures I Creative and Critical Thinking

Macroeconomics Comparative Politics Ind. and Org. Psychology

Small Business Manag. Advertising Rules Global Literature

Marketing Written debate Managing Multimedia Presentation

General Skills

Computer skills

Operating Systems: Windows XP, Windows Vista.

Software applications: Adobe Premiere Pro, Microsoft Office Packet, Photoshop CS4.

Languages

Albanian - native

English - fluent

Hobby: Photography, Basketball, Music.

Work Experience

Private in keeping administration of the cadet corps. Years 2008- 2009

Shop assistant in a supermarket. Calendar year 2008

References

Available upon question.

Gëzim Osmani

Gjilan 60000, Kosova

nline. org

+377 (0)44 761 573 (Mobile)

Objective

An internship position with a talking to company.

Education

American University in Kosovo, AAS graduate 2009

Present-American College or university in Kosovo, expected graduation 2011

Bachelor of Technology in Applied Arts and Science

1st Major: Management

2nd Major: Media & Graphic Communications

Minor: People Policy

Present-Cadet of Kosova Security Power, expected graduation 2011

Expected to graduate with the list of Lieutenant

2004-2007 Gymnasium "Zenel Hajdini" Gjilan, Kosova

Mathematics & IT

Related Coursework

Photo Imaging with Personal computers Design for Printing and Web

Managing Marketing Presentations Fine Arts: Visible Arts

Advertising Principles Marketing

Communicating running a business On Camera, On Mike

College Mathematics for Business I & II Microeconomics

Industrial & Organizational Psychology Macroeconomics

Information I Research Techniques

SMALL COMPANY Management Stress Management

Work Experiences

2002-2005 Supermarket, Cernicë, Gjilan In charge of keeping accounts & cashier.

2006 (July - December) "Vision Computers", Gjilan

Install the Laptop or computer hardware and software, modify hardware & software problems.

2009 (January - August) Non-Commissioned Officer for administrative issues in the guts for Universitary Studies, Kosova Security Power. (Cadet Corporal for administrative issues CUS, KSF)

2009 (August - December) Drill Sergeant & Squad Head (Cadet. Sgt. Squad head, CUS, KSF)

2009 - Present Staff Sergeant (Cadet Staff Sgt. Platoon innovator, CUS, KSF)

General Skills

Computer

Operating Systems: House windows 98/2000/XP/Vista

Software Applications: Adobe Photoshop CS3, Adobe Illustrator CS3, Microsoft Office Bundle (Phrase, Excel, PowerPoint, Visio Pulling, Publisher, Access), Home windows Movie Machine.

Languages

Albanian - native

English - fluent

German - elementary

Driving permit B category (2007)

Other Activities

2004-2007 Member of NGO "Global Motion" Social Theater, Gjilan

2002-2006 Person in "Scouts de France" Gjilan & Cernicë

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