MKTG6002 Marketing Assessment: Nestle's Situation Analysis Report

This report provides a comprehensive marketing analysis of Nestle, a leading food and beverage company. It begins with an executive summary and introduction, outlining the report's scope and objectives. The core of the report analyzes Nestle's external environment using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors impacting the company's global operations. It then delves into Nestle's internal environment, discussing its mission, vision, business portfolio, and market position. A detailed SWOT analysis follows, evaluating Nestle's strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and recommendations for Nestle to maintain and improve its market position. The analysis highlights issues such as child labor, raw materials, and ethical concerns, while also considering opportunities for growth through online distribution and evolving consumer preferences. The report incorporates relevant data, research, and recommendations to provide a thorough understanding of Nestle's marketing landscape.

MARKETING
NESTLE
EXECUTIVE SUMMARY
There are many problems with each of the company either its small or big company. Nestle has
also many problems like child labor issue. It includes child labor in cocoa production, because of the
poverty and need of schools, abuse of child labor law and enslaved children. Senior management or the
company persons can solve these problems by introducing nestle supplier code, monitoring all the
participants in its deliver sequence and set clearer labor standards, provide special training to deal with
the child labor problem. There are many other problems like raw materials and ethical and boycott issue.
These can also be solved very easily through import inventories from other regions as all regions is not

MARKETING
having the same demographic factors. Boycott can also be avoided by some small recommendations like
increase of the product quality, improvement of advertising strategies and fulfillment with the worldwide
code.
Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
ANALYSES OF THE EXTERNAL ENVIRONMENT..............................................................................4
ANALYSIS OF INTERNAL DEPARTMENT...........................................................................................5
SWOT ANALYSIS OF NESTLE...............................................................................................................5
CONCLUSION...........................................................................................................................................6

MARKETING
Bibliography................................................................................................................................................7
INTRODUCTION
Nestle is one of the biggest successful company which is dealing with food and beverages
section. They include baby food, bottled water, breakfast cereals, coffee, ice-creams, dairy products and
pet foods etc. Nestle is very much popular for their ultimate tastes and quality. In this, particular report we
are covering the PESTLE factors that are impacting on the organization, company information, profile,
business portfolio and moreover SWOT analysis of Nescafe with a detailed version. There are many key
issues with or within the company like Child labor, raw materials etc. We have given the
recommendations for each of the issue arisen. Company is always focusing and having a target of great
sales hike every year. They have some brands for which people are having a huge faith because of its
taste and quality. (UKEssay, 2016)

MARKETING
ANALYSES OF THE EXTERNAL ENVIRONMENT
Nestle is doing very well in the market all over but there is some PESTLE analysis which is a
strategic tool to analyze the macro environment of any organization. It is important because PESTLE
stands for Political, Economic, Social, Technological, Environmental and Legal factors that impact the
worldwide environment of Nestle. Nestle is a multinational food and beverages company which is
operating in many countries. Some of the PESTLE factors which are influencing Nestle are Political
factors in the realms of international business is continuing to grow stronger day by day. (Frue, 2019)The
relationship of trade between the countries and the level of government control and misunderstanding is
also affecting how the businesses execute in all over the world. Nestle being an international player
operating in almost more than 180 countries is also open to the elements to the Political forces in many
countries of the world. The company is subject to government control and failure to notice at various
places where the company is operating. Political stability is very much important for the business because
if the trade relations of any two countries are not good enough then definitely there will be heavy taxes
and less profit for any of the company. Nestle is also getting affected by political instability at various
places around the world. Economic factors also play an important role in the context of the business.
Economic recession has the direct impact on any of the company or on Nestle especially as they are
operating globally. If the economy is unstable then, definitely the employment, levels of income and the
revenue everything goes down and results to lower sales and profitability. (Haseeb, 2017) If any country
is not under the economic recession then company like Nestle can do better because they have the
operations all over the world itself. Next, comes the Social factor and they are also continuing to grow
stronger in the environment of business. Society and social factors are necessary to the business because
different cultures differ from one region to another. These factors have an explicit contact on demand and
how and what the people are purchasing. Social factors are depending upon different cultures and tastes
of the people. Nestle is having a large range of the products which is favoring people’s taste and their
needs of course. Nestle always think about socio-cultural factors when advertising its products at specific
places. Technological factor is now more significant than always in the environment of worldwide
business. From the starting till the reach of customer, technology has grown central for the performance
and the profitability. In other words, from manufacturing to supply chain and in the sales and marketing
also technology counts everywhere. Technology is focused everywhere either in manufacturing, quality
of the product, marketing and sales of course. Sales have also increased to a large extent because of
digital technology as people are purchasing products of Nestle through online shopping. (CRAM, 2014)
Through online promotion now company don’t have to spend so much on the promotions and it will be
very easy for their consumers to get their products through online. Legal factors are continuing to make a
tight grip on the global and international businesses. Observance linked pressure and expenses are greater
than before and violations can direct to huge fines as well which is fully affecting the sales and profits
also. Nestle was involved in many legal disputes like for example a dispute is still going on. Their well
known product maggi is having some quality issues. If they found accountable in maggi case then,
absolutely they have to pay a huge amount of fine and this is the only reason why companies like Nestle
is spending a lot on lawful agreement. Last, environmental factor is also a main concern in the situation of
the Nestle business. The environmental impact of their worldwide businesses also affects their public
representation. Environmental issues are also a headache for the companies like Nestle but they have to
follow the scenario of rules and regulations. Governments have tightened the loop among worldwide
brands that are having a huge ecological impact. Utilization of natural property can lead to huge fines and
fatalities for the company itself. (kush, 2017)

MARKETING
ANALYSIS OF INTERNAL DEPARTMENT
Nestle is the world’s largest diversified food and beverages company. Nestle is operating in
almost more than 180 countries all over the world. Nestle is having a huge products section which
includes nutritious and delicious products. Nestle is the leader in some business portfolios like coffee,
infant formula and bottled water also. Nestle is vastly approaching towards their suppliers of agricultural
supply chain located in water-stressed areas, moreover they are taking some action plans to attempt or
solve these issues, including teaching of the farmers, civilizing irrigation practices as well. (Rodrigo,
2017) Nestle is doing progress on this issue, so that water-stressed communities become more flexible.
Customers still love Nestle because of its ultimate food quality they are providing and some brands from
childhood haven’t changed for many customers. Their Mission is to completely power the social
environment in which we work as dependable business people, with due regard for those environmental
principles and common aspirations which improves the worth of life. Their Vision is also very much clear
they want to make their company a complete corporate delivering superior investor worth by being a
preferred corporate citizen, preferred employer selling preferred products with a tag of leading,
competitive, nutrition and health and wellness company itself. (Bartleby, 2013)
SWOT ANALYSIS OF NESTLE
Swot analysis stands for the strengths, weakness, opportunities and threats for a company or an
organization. There are many strengths for nestle for doing a fabulous business all over the world like
Nestle is having a number of brands through which they are serving many different segments of the
market. Nestle has some of the well established brands like coca cola, Palmolive and Gerber which is
most trusted brand for baby food in United states. Nestle is a well reputed brand all over the world and
having a good and strong relationship with the retailers itself. It helps them to capture a huge amount of
market share in some of the countries like Europe and United states. Nestle has some strong study and
expansion capability that are endlessly rising. There are many weaknesses like they are dependent upon
some particular brands which are hot selling or fast selling. Bigger and huge retailers like Walmart have
the ability to force sharp reductions in price as well. The company or the organization is fully dependent
upon marketing to outline customer view and make long-established sales. This can surely increase the
marketing expenses with a risk of return on the investment. There is huge price expenditure for beginning
new brands to complement grown-up, less-fashionable food products. (Jurevicius, 2017)On the other
hand, there are many opportunities for a company or an organization like growth through online
distribution channels or ways like Amazon prime or some online orders can be placed for any type of
products they need. These opportunities also help to increase some disposable income in countries like
china as in the form of bottled water or ice cream and pet food. This can also helps in changing lifestyle
like the people are busy with their schedule and the demand for prepackaged foods increase on high
priority. People are more taking care of their own health after the launching of some energy drinks from
Nestle. Collectively it helps Nestle to promote and increase the sales on benefit criteria itself. In last there
are many threats to the company or the organization like Nestle. Some bigger retailers like Walmart and
Kroger are promoting their own house brands more than Nestle as they are getting more margin or profits
from them. They are incurring their expenses from Nestle Company and are well promoting the local or
house brands for the sake of more profitability in their own bucket. Nestle is also having a lot of pressure

MARKETING
from some big retailers like Walmart to cut down their prices as they have to get some more profits in
retail from the customers. New retail channels like Amazon prime and dollar stores are not favoring
traditional retail products because of lot of products in their bucket at a particular time. In some countries
like United States and Europe they are not ready to use packaged food, in fact they are demanding for
fresh or natural foods which are giving a high competition to Nestle. (Bhasin, 2018) Last but not the least
Government supervision and system in some markets are disturbing the sales all over. Threat of losing
any popular product like Maggi is really a game changing effect for the company like Nestle. Nestle
being a world’s most recognized and most profitable food brands all over is still affecting by some threats
like non promotion or less promotion is facing many challenges day by day. (baba, 2017)
CONCLUSION
Nestle being as a leading food and beverages company all over the world is facing some
challenges like child labor, raw materials etc. Nestle is still having a clear vision to be number one
preferred brand name all over the world. Nestle is still having a tremendous sales all over for the huge
range of their products but some problems are not giving them the exact position they actually hold. They
are serving from almost 150 years and everyone is having a favorite brand of nestle either in any of the
category like coffee, baby food, bottled water and many more. (Kabii, 2018)
Bibliography
baba S. (2017). Swot analysis of Nestle. Swot analysis of Nestle . Retrived
from(https://www.slideshare.net/shikhu_baba/swot-analysis-on-nestle).
Bartleby. (2013). Analysis of internal department. Nestle: Macro Environment and Micro Environment
Retrived from Analysis (https://www.bartleby.com/essay/Nestle-Macro-Environment-and-Micro-
Environment-Analysis-P3X9ACA5HKGEZ).
Bhasin H. (2018). Swot analysis of Nestle. SWOT analysis of Nestle – Nestle SWOT analysis. Retrived from
(https://www.marketing91.com/swot-analysis-of-nestle/).
CRAM. (2014). Analysis of the external environment. Essay on Nestle Environmental Analysis. Retrived
from (https://www.cram.com/essay/Nestle-Environmental-Analysis/FKQ3RRK5J).

MARKETING
Frue K. (2019). Analysis of the external environment. PEST Analysis of Nestle: How politics and social
culture affect its growth . Retrived from (https://pestleanalysis.com/pest-analysis-of-nestle/).
Haseeb. (2017). Analysis of the external environment. Pestle analysis of Nestle . Retrived from
(http://marketingdawn.com/pestle-analysis-of-nestle/).
Jurevicius O. (2017). Swot analysis of Nestle. SWOT analysis of Nestle. Retrived from
(https://www.strategicmanagementinsight.com/swot-analyses/nestle-swot-analysis.html).
Kabii D. (2018). Conclusion. Nestle Market Analysis and Marketing Strategy . Retrived from
(https://medium.com/@david.kabii/nestle-market-analysis-and-marketing-strategy-8bd2ffbd8acb).
kush J. (2017). Analsis of the external environment. PESTLE AND SWOT ANALYSIS OF NESTLE 2017.
Retrived from (https://www.123writing.com/free-sample/pestle-and-swot-analysis-of-nestle-2017).
Rodrigo. (2017). Analysis of internal department. Analysis of Nestlé’s Business Environment . Retrived
from (https://writepass.com/journal/2017/01/analysis-of-nestles-business-environment/).
UKEssay. (2016). Introduction. Introduction And Company Profile Of Nestle Marketing Essay. Retrived
from (https://www.ukessays.com/essays/marketing/introduction-and-company-profile-of-nestle-
marketing-essay.php).