Nestle Global: Forecasting International Market and Business Needs

This report provides an analysis of Nestle's strategies for forecasting international market and business needs. It covers various aspects including market intelligence collection, review of business performance, evaluation of the specific market, and recommendations for meeting current and emerging needs. The report details Nestle's market intelligence gathering methods, commercial services used, and the analysis of collected data. It reviews Nestle's international marketing and overall business performance, highlighting current capabilities, resources, and underperforming products. The evaluation of the specific market includes trends, comparative market information, and competitor analysis. The report concludes with recommendations for Nestle to address international market needs and necessary business changes. Desklib offers a platform to explore similar business reports and study resources.

Running head: FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS
Forecast international market and business needs

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 1
Executive Summary:
An organization can operate in long run with success when it fulfills the need of the industry
and market in which it operates. The needs and demands of the industry can be fulfilled with
the help of well-planned strategies. A business is required to analyze these demands and
needs on the priority basis which is known as the forecasting the market needs. This report
describes the business forecasting by the Nestle Global so that it can work accordingly in log
run to become successful and to earn higher revenue in comparison to its competitors.

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 2
Table of Contents
Report Development Team:.......................................................................................................4
Work Planning:..........................................................................................................................4
The Organization:.......................................................................................................................4
Knowledge Management System:..............................................................................................4
Work Schedule:..........................................................................................................................5
Gantt chart:.................................................................................................................................6
Market Intelligence Collection:..................................................................................................6
Market Intelligence Gathering:...............................................................................................6
Market Intelligence of Nestle:................................................................................................6
Commercial Services for Market Intelligence:.......................................................................7
Market Intelligence Collected and Analysed:........................................................................7
Review of Business Performance:.............................................................................................7
International Marketing Performance:...................................................................................7
Business Performance:...........................................................................................................8
Current Capabilities and Resources:......................................................................................9
Under Performing Products and Services:...........................................................................10
Summary of Business Performance Analysis:.....................................................................10
Evaluation of the Specific Market:..........................................................................................10
Trends and Developments:...................................................................................................10
Comparative International Market Information:..................................................................11
Competitor Analysis:............................................................................................................11
Recommended Target Market:.............................................................................................13
Sources of Intelligence:........................................................................................................13
Legal, Ethical and Environmental Constraints:....................................................................13
Current and Emerging Needs:..................................................................................................13
International market needs:..................................................................................................13

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 3
Changes in international market needs:................................................................................14
Forecast of international market needs:................................................................................14
Business change needs:........................................................................................................14
Recommendations:...................................................................................................................14
Additional information:............................................................................................................14
Lessons learned:.......................................................................................................................15
Additional Information:...........................................................................................................15
Preparation of Presentation:.....................................................................................................15
Conclusion:..............................................................................................................................15
Appendix 1:..............................................................................................................................16
References................................................................................................................................17

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 4
Report Development Team:
Name Role Expertise/Competency
Work Planning:
The work for the preparation of the report has been planned as per the requirements of the
assignment. This report mainly focuses on the stakeholders like customers, employees,
shareholders, analysts, government and business partners of the business those get affected by
the business and also affects the business.
The Organization:
Nestle S.A. is a Swiss transnational brink and food company headquartered in Vevey,
Switzerland. It is the largest food company in terms of revenue and other metrics (Anon.,
2017). The main products of the company include medical food, baby food, breakfast cereals,
bottled water, tea and coffee, dairy products, confectionary, frozen food, ice cream, snacks
and pet foods. Nestle operates in more than 194 countries with its 447 factories and provides
employment to more than 339,400 professionals. It is the main shareholder of L’Oreal, which
is the largest company of cosmetics in the world. The main purpose for selecting Nestle is the
brand value and success of the company which can provide a large database for the study of
the topics provided (Stevens, 2009).
Knowledge Management System:
The data and information for the development of the report have been majorly collected from
secondary sources like the website of the company, government proceeding reports, and
available online information.

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 5
Work Schedule:
Starting Duration Description
Report Development Team January 15 days Choice of the
professionals for
developing report
Choice of the organization 16th January to 31st
January
15 days Selection of the
organization on the
basis of
requirements.
Assessment of Market
Intelligence
1st February to 31st
March
2 Months Analysing market
intelligence is a
time-consuming
process.
Identification of current
capabilities and resources
1st April to 30th
April
1 Month Identifying all
revenue resources
helpful in
generating revenue
for the business.
Identification of
underperforming
Products
1st May to 15th
June
45 Days Identification of
such products
which are not
providing revenue
to the business.
Evaluation of business
performance according to
international market needs
16th June to 31st
July
45 days Measurement of
business
performance on the
basis of revenue
statements.
Competitor Analysis 1st August to 31st
August
30 days Finding out the
strengths,
weaknesses, and
strategies of

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 6
competitors.
Recommendations 1st Sept. to 30th
Sept.
30 days Providing
recommendations.
Gantt chart:
Market Intelligence Collection:
Nestle is a well-known brand in the food industry and providing continuous services to
society in form of a number of baby and food products. The international market conditions
of the company are favorable in the present scenario and this can be analyzed by the profit-
making trend of the company (Gracanin, et al., 2015).
Market Intelligence Gathering:
Objective:
Information about the market intelligence helps the company to find out the low performing
areas. On the basis of such identification, the management can take corrective actions. The
market intelligence is gathered by Nestle with an objective of increasing the profitability of
the company by introducing new and effective strategies required by the international market
conditions (Nikolaos, 2012).
Market Intelligence of Nestle:
Networking Activities:
The company uses its networks and sources of distributors, retailers, and supermarkets. The
company also make use of customer ratings on its official website.
Participating Activities:

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 7
The company participates in the international food festivals of different countries and
examine customer behavior towards the various products of the company. The company also
participates in the online international trade for food companies and come to know about the
extraordinary services provided by its competitors (Igbaekemen, 2014).
Others Sources:
Other sources that are used in collecting the market intelligence of Nestle are consultants and
market research companies which gathered competition data and market research data timely.
These companies gather data from online surveys, government proceedings and international
market events related to the food industry (Bulley, et al., 2014).
Commercial Services for Market Intelligence:
The company uses various software for gathering effective and accurate market intelligence.
These are provided by some commercial service providers including Innovative Routines
International, Bulldog Drummond, Anthem Worldwide, Dematic, Bemore Solutions and
many more. (Anon., 2018).
Market Intelligence Collected and Analysed:
The market intelligence for the company is collected with the help of the above-mentioned
sources and commercial services provider. After collecting, the same is analyzed by the
research and analyst department of the company with help of specific tools. Some tools
include eWave, Subject Matter and SAP HANA (Anon., 2018).
Review of Business Performance:
The company was established about 150 years ago and has become the world's largest Food
and Beverages Company with a large diversified force of products. The company is
committed to contributing to the healthier future of its customers by enhancing the quality of
products. The company insists on fairness, honesty, and integrity in all aspects of its day to
day working (Anon., 2018).
International Marketing Performance:
Nestle is performing well in the international market with the sustainable growth in its sales
as well as in revenue. The main products that are earning the highest revenue for the
company are beverages as shown in the below-mentioned graph. After beverages, nutrition
and health science hold the second place in the composition of revenue for the company.

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 8
(Hughes, 2017)
Business Performance:
The performance of the company in its business is growing in a well-structured manner as it
can also be seen by the below image. The image shows that dividend per share of the
company in continuously increasing which is the result of its well performed and effective
strategies.

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 9
(Investor, 2016)
Current Capabilities and Resources:
Nestle has a well-structured environment for the development of the employee. The company
also runs training programmes to enhance the capability and performance level of employees.
Along with human resources, the company also has the benefit of the availability of finance
to take advantage of the market opportunities.
Capabilities Improvement Needed Possible Exploitation
Human Resources Employee Retention
Schemes are required to be
introduced.
The talent of the company
may not be utilized by any
other competitors.
Financial Resources The company should try to
invest in profitable areas as
per the demand of the
international market.
This would help in increasing
the revenue of the company
with minimum investment.
Market Reach Supermarkets must be
opened.
It will help in increasing the
sales of the company up to a

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 10
great extent.
Under Performing Products and Services:
There are some underperforming products of the company, which are not helpful in
generating expected revenue for the company.
Under performing products
and services
Summary of Analysis Suggested Actions
Perrier It is the name of a water
bottle. It is not successful
because of pre-existed
competitors in the market
Should sell it to some other
company.
Purina Dog Chow It is a pet care product. Should withdraw this
product from the market.
Gerber Nutrition and healthcare
product but not successful
because of its high prices.
The company either should
withdraw the product from
the market or to sell it at
lower prices.
Summary of Business Performance Analysis:
The business performance analysis of the company shows that Nestle has major capabilities
in form of human and financial resources which are required to be used in an effective
manner. Also, the company should either sale or remove the non-performing services and
brands from the market to save the money and efforts (Pawar, 2012).
Evaluation of the Specific Market:
Trends and Developments:
Developments Impact on international
market
Impact on company’s
business
Natural Products The market environment is
adopting the natural products
and customers are getting the
benefit to it.
Goodwill of the company
increased in terms of
customer welfare and thus
increasing the sales of the

FORECAST INTERNATIONAL MARKET AND BUSINESS NEEDS 11
company.
Organic products Elimination of artificial
products forms the market.
Increase in sales but not to
the expected level due to the
high range of the products.
Reduced level of Sugar Elimination of sugar content
by most of the companies.
Improves the quality of
products and thus increase in
sales.
High Protein Increase in competition High investment and low
revenue.
(Anon., 2012)
Comparative International Market Information:
Nestle has a number of consumer brands including Carnation, Kit-Kat, Nescafe, Nestle-
water, and Stouffers. The brands of the company are well settled in its largest economies
including Europe and the U.S. (Anon., 2018). Danone and Unilever are the main competitors
of the company. For providing better services in comparison to its competitors, Nestle is
continuously adopting new technology-based strategies that can result in the reduction of cost
and increase in the quality of products.
Competitor Analysis:
Competitor analysis can be done on the basis of the strengths, opportunities, weaknesses, and
threats of the company which has been identified by the SWOT Analysis of the company in
Appendix 1. The main competitors of the company and their characteristics can be
understood by the study of the below-mentioned table:
Hershey’s Company Mars Incorporated Cadbury Plc.
Headquarter Hershey,
Pennsylvania
Hackettstown, New
Jersey.
London, England.
Market Reach The largest
chocolate factory in
the world and also
the largest candy
producer in North
America.
One of the largest
food item
manufacturers on the
international level.
Largest Candy
company in the
world.