ENTREPRENEUR 2: Business Plan for Nestle in the Australian Market

This project presents a comprehensive business plan for Nestle's expansion into the Australian market, focusing on the introduction of innovative coffee capsules. The plan begins with an executive summary highlighting the need for a new business model and the importance of innovation, particularly in product customization to meet evolving consumer preferences. It includes a detailed market analysis, emphasizing the lucrative nature of the coffee industry and the increasing consumer demand for variety and health benefits. A PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting Nestle's operations in Australia. The project outlines a proposed management team, emphasizing the importance of a dedicated marketing team and quality assurance. A product analysis details the coffee capsule product, highlighting the variety of flavors and the user-friendly coffee machines. The project also includes a risk management section and a financial plan to ensure the business's feasibility. Finally, a proposed timeline is provided to guide the implementation of the business plan. This project is available on Desklib, a platform offering AI-driven study tools and resources for students.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Business plan for Nestle in Australia.........................................................................................4
Business Concept.......................................................................................................................5
Market analysis..........................................................................................................................6
Pestle analysis for Nestle in Australia........................................................................................7
Management team......................................................................................................................9
Product analysis.......................................................................................................................10
Risk management.....................................................................................................................11
Financial Plan...........................................................................................................................12
Proposed timeline.....................................................................................................................14
Bibliography.............................................................................................................................16

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Executive summary
In the present day scenario, each and every business house needs a proper business model in
order to carry on the operations successfully. However, as change is important in everything,
a business model is no exception. Rather, innovation is highly important in each and every
business model. A new product that the company is about to invent is coffee capsules. The
concept would be such that all the customers will be able to drink coffee as per the taste and
preference patterns of their own. However, in order carry forward this business innovation,
the company obviously needs to make up a business plan.

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Business plan for Nestle in Australia
A business plan represents the planning statement by an organization to achieve the
goals and objectives. It includes the goals and objectives statements, justification of the
objectives and the ways to achieve those. The background information of the organizational
structure and teams responsible for fulfilling the objectives are also part of the business plan
of an organization. A business plan includes many attributes, such as, competitive analysis of
markets, products and services, operation plans, market analysis, sales and marketing plans,
management team etc. Nestle is planning to launch a new product in the Australian market.
Hence, a business plan is required to capture the changes in perception of the consumers and
branding of the products.
Figure1: Business plan

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(Source: Google images)
The above diagram shows all the basic heads or the important categories that a company
needs to work upon. All these heads are to be taken into account when developing a new
business idea.
Business Concept
One of the most important aspects of the present day business scenario is customer
satisfaction. It is the prior duty of the business organizations to understand and analyse the
needs and demands of the customers, (Vilanova, Iglesias & Porcar, 2015). Nestle must work
accordingly to the present business trends that are existing in the market. The new business
idea that will be undertaken by the company is based on the concept of customization. In
other words, Nestle is about to undertake the production of such goods and services that will
be custom based. In other words, this company is trying to keep the customers at the top of
their priority list. They are about to offer the consumers a self controlled and managed
mechanised way of preparing coffee. This coffee will be just as the customers want them to
be (Bakker et al., 2014). In other words, the company realises the fact that not every
consumer have the same kind of taste and preference pattern. Moreover, in the modern era,
the needs and demands of the consumers are rapidly changing. They are being influenced by
so many different factors. Hence, this company has decided that, in order to expand their
business, they will now provide their customers with a very new and fresh product. The
consumers will be able to have a cup of coffee having the essential tastes and flavours that
they are actually looking for. There will be no co plaints regarding the flavours as it will be
customized. In other words, the company is about to launch a series of well packed, air tight
coffee pods or capsules which the consumers can use easily in the coffee machines as per

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their taste and preferences. Along with these coffee pods or the coffee capsules, this company
will also launch the coffee machines. This will be a new kind of coffee machine that will be
user friendly and will be used for making coffee using this newly launched coffee pods or the
coffee capsules.
Figure2: Business canvas model for Nestle
(Source: Niyazi, 2013)
Market analysis
Innovation brought by any business organization is successful only when there is a
proper market analysis done before launching it. Nestle also need to do market analysis in
Australia before launching the new product and expanding its business. Firstly, starting a new

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innovative idea in the field of coffee business itself is very lucrative. It is because among the
different kinds of beverages, this is the most widely consumed product. There is always a
very high demand for coffee and this demand is always on a global or a universal basis. It is
for this reason that there is always a very high demand for the same. Apart from this, over the
past few years, there has been a sufficient amount of increase in the awareness of people.
They are now looking for not only taste but also several other benefits in coffee. The
customers are now looking for varieties of flavours. Not only are this, but the consumers
nowadays also very much concerned about the health hazards that might be associated with
several kinds of carbonated soft drinks etc. Hence, Nestle has to make sure that all the input
materials that they are about to use in this production of the new coffee pods, must be
thoroughly tested.
Pestle analysis for Nestle in Australia
PESTLE analysis is a common tool to evaluate the external forces the determine the
flow of the business of an organization. It stands for Political, Economic, Social,
Technological, Legal and Environmental. For a business plan, PESTLE analysis must be
done to check the feasibility of the business. In this context, the PESTLE analysis has been
done for Nestle.
Political
There are often many changes and regulations that are made due to the changing food
standards and the marketing actions. There are also several questions that often arise due to
the change in the internalization process. As there are often new economies that keep on
emerging, there are also several changes in the marketing standards and also in the trade rules
and regulations.

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Economic
Economic factors are also many. There are often several changes that take place in the
income levels of the individuals. These changes in the income levels cause a direct influence
in the purchasing power of the consumers as well. Apart from this, there are also several,
changes taking place in the inflation rates (Dudin et al., 2015). The consumers also have the
right knowledge about the changing inflation rates and economic rates as well.
Over the years, there have also been a sufficient amount of increae in the price of the
raw materials. This means that the company needs to source all the raw materials from the
good and sustainable suppliers only.
Social
The social factors also largely affect the position and status of a company. There has
been a stark change in the social attitudes of the consumers. They are now looking for not
only taste but also health benefits in the food products. In other words, they are now governed
by several other parameters while purchasing the products. They have become very much
health conscious. They are now concerned about not only the tasty in the Nestle products but
also the nutritional benefits that it offers. In order to ensure that there is a good marketing of
the products, the company needs to make sure that they are having a good customer base.
This can be done only if there are personal touches and understanding added by the company
into their marketing of the produc6ts. In other words, it is very much essential for the
company to know and understand the exact demands of the consumers.
Technological
As is seen in the present day scenario, technology plays a major role in the marketing
of any company. There are many online suites and official pages of the companies through
which the consumers can keep a look on the products of the company. The consumers can

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easily interact with the company and can render their feedbacks as well. This technology thus
helps in adding innovation which acts like a fuel to the engine. Any and every modern day
business is largely dependent on innovation. It is also because of this new technological
wave, that the e-commerce platform has been launched. This happens to be a very good
platform for the companies.
Legal
As Nestle has its influence in several parts of the world, it naturally needs to abide by
several rules and regulations. Different countries have different economies. The Government
rules is also different among different countries, which the company needs to adhere to.
Environmental
Nowadays, the successful business expansion of the company depends of its corporate
and social responsibility. Apart from this, the company needs to keep in mind that none of
their activities must harm the environment in many means (Igba et al., 2015). They must take
care of the fact that, they use all the eco friendly procedures and products including
packaging, recycling etc.
Thus, it has been seen from the business model that diagram that, there are certain
errors or drawbacks that are existing in the present business model; of Nestle. The company
needs to focus upon these errors and then set up a new business model so that the business
can be carried on smoothly. The existing business model needs to be upgraded
Management team
This is a very important aspect that the company needs to consider. As the company is
trying to launch a new product in the market, it is even more essential for the company to
appoint a proper marketing team. The company will make sure that they try to use some off

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bit marketing techniques. In other words, Nestle will not select the same age old marketing
methods that have been used by all the other business firms existing in the market. This
company will appoint such a marketing team that will comprise of the best and competent
officials and the specialists for every line of business. There will be quality assurance officers
for checking and verifying the quality of all the products, both the input as well as the final
products. They will take sufficient advantage of the web designers and the animation
specialists so that there is proper advertising and marketing campaigns of their products.
Earlier food and retail was the main channel for distributing the products to the customers,
but now, this will be done through merchandise stores, internet sales and also by flagship
stores, so that the marketing team can directly have access with the customers.
Product analysis
The product that is about to be launched by Nestle in the Australian market is a series
of coffee pods or the coffee capsules. Along with this new product, they will also be
manufacturing an exclusive range of coffee machines. The main purpose for these coffee
machines is for using the coffee capsules (Mastropasqua, Dellapietra & Van Eeden, 2014).
These coffee pods will contain a various tastes, flavours and textures of coffee that have been
made by keeping in mind the taste and preference patterns of the consumers. About twenty
different tastes will be available in these vacuum packed capsules. These will likely have a
huge demand in the market, because it will bring a very quick, easy to use and fresh kind of a
product in the market. The customers will be able to taste such a large number of tastes and
flavours with these coffee pods, whereas earlier, they were just limited to taste only one
single flavour within just a single packet of coffee. Moreover, as this new business idea also
will launch a series of their own coffee machine, the customer’s will also buy these coffee
machines. This will increase the profit of the company and the customer satisfaction as well.

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The coffee pods and the machines are complementary to each other and needs to be used
together. Hence, the sales of the company are guaranteed and on the other hand, the
consumers will also be able to use an automated coffee machine that has the temperature
already set according to the coffee capsules.
Risk management
Some of the important methods that Nestle needs to follow under risk management
are as follows.
As the coffee pods are totally new and the process involved in making them is also a
very new concept, proper trainings must be given. These trainings are to be given both to the
employees of the company as well as to the consumers. Hence, the customers should be given
a thorough knowledge on how to use the machines as well as the coffee pods. Coffee by
nature is hot and can cause serious injuries if not handled properly.
There must be no compromise made with the quality of the products. Nestle must not
give any chance of complaints to the customers (Lacy & Rutqvist 2015). They must make
sure that this exclusive range of coffee is made with the pure, fresh and natural products.
There must be proper sustainability maintained in the production of coco. As coco is
the chief raw material for these coffee pods, it is of utmost importance to see that the
cultivation of coco takes place in a proper manner. In other words, the farmers must be given
the correct facilities. This company can also enter into some collaboration or partnership to
develop some after retirement benefits for the coffee farmers.
Apart from the coffee, Nestle also needs to focus on the part of the coffee machines as
well. As these coffee pods are usable only via the machines, care must be taken so that the
machines are maintained properly. Major accidents can occur due to the improper handling of

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the coffee machines. In order to mitigate such hazards, the users must be careful and have
proper knowledge of the manual.
Financial Plan
The financial plan for Nestle includes the statement on Start up Cost, Profit and Loss
Statement, Cash Flow Statement, and Balance Sheet. It says the feasibility of the business
plan.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$(600.00)
$(400.00)
$(200.00)
$-
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
$1,400.00
Net Profit (Amount in AUD)
Net Profit (Amount in AUD)
Linear (Net Profit (Amount in
AUD))
Figure 1: Projected Net profit of the business plan
(Source: Author)
It can be seen from the above figure that, the coffee pods would not yield more
positive revenue in the first month. However, it would bring in more revenues in the
consecutive months.