MARKETING PRINCIPLES OF NESTLE

Running head: MARKETING PRINCIPLES OF NESTLE
MARKETING PRINCIPLES OF NESTLE
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MARKETING PRINCIPLES OF NESTLE1
Table of Contents
Nestle..........................................................................................................................................4
Macro factors.............................................................................................................................4
Political factors.......................................................................................................................4
Economic factors....................................................................................................................5
Social factors..........................................................................................................................5
Technological factors.............................................................................................................6
Environmental factors............................................................................................................6
Legal factors...........................................................................................................................6
Micro factors..............................................................................................................................7
Strengths.................................................................................................................................7
Weaknesses............................................................................................................................7
Opportunities..........................................................................................................................8
Threats....................................................................................................................................8
Target audiences.........................................................................................................................9
Market position........................................................................................................................11
Corporate social responsibility.................................................................................................12
Recommendation......................................................................................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16

MARKETING PRINCIPLES OF NESTLE2
Nestle
Formed in 1905 with the merger of Auto-Swiss Milk Company, Nestle was
established by George and Charles Page, and Farine Lactée Henri Nestle. Twenty-nine of the
Nestle brand has annual sales over $1.1 billion. Including, Maggi, Nescafe, Kit Kat and so
on. Nestle has 447 factories and in operates in 189 countries with over 339,000 employees.
Nestle acquired various companies in their business operation from 1950 until 2012 .Nestle
become successful in the market after the acquisition of two major companies; The Anglo-
Swiss Condensed Milk Company and Rowntree’s. Nestle currently owns over 2000 brands
and has successfully transformed itself into a global force in the food industry with expansion
in other areas including baby food, beverages and frozen foods. Nestle is now the leading
food and beverage company in the world with market capitalization worth $247 billion
dollars (Xu 2019). Nestle is focused to serve Best quality food products to their consumers,
satisfying their needs. In 2019, Nestle generated over $92.6 billion sales worldwide. In 2019.
The net profit of the company has been increased by 24.4% to 12.6 billion and this profit was
benefited by the sale of Nestle Skin Health.
Fig 1: Logo

MARKETING PRINCIPLES OF NESTLE3
Macro factors
Several macro environmental factors affected the market of Nestle in U.K. The
PESTEL analysis is conducted to analyze the market condition of Nestle in U.K and other
regions over the next 12 months.
Political factors
Several political factors impacted the market of Nestle in U.K and America, which is
the largest market of Nestle. Political factors plays a crucial role over the success of the
business. Despite America, United States and United Kingdom has the largest market of
Nestle, Asia-Pacific region is developing fast and Nestle has large market for its products in
nations like China and India. The business of Nestle has been hugely impacted by the
disrupted trade relationship between U.K and China. Other political factors such as high tax
rate, governmental instability and reduced profit also impacted the market of Nestle in U.K
(Rahman 2019). The international market of Nestle is also going to get affected by these
international factors, impacting market of America, U.S and U.K massively. The mobility of
supply chain in U.K has also reduced by the effect of these political factors.
Economic factors
Economy plays a notable role in the market. With a stable economy, Nestle can
perform well in the market. In the recessionary periods, employment, level of income and
spending go down significantly, affecting the global economy (Galalae and George 2017). In
the year 2018, the global market of Nestle remained strong with strong financial
performance. The Americas and United Kingdom are the leading source of revenue of Nestle.
Improved economic activity in these regions as well as other regions such as Asia-Pacific
regions leads to improved profit and sales of the company. U.K yoghurt market has growing
faster since 2012, affecting the financial performance positively.