Group Member: Tham Li Ling

Kam Ka Mei

Cheam Huoy Vian

Ng Yi Xian

Riiko Leon

Cheam Huoy Vian

Ng Yi Xian

Riiko Leon

Nestlé is a Swiss-German word which means ‘Little Nest’ which is its trademark

Nestlé Milk Pak Limited (NML) was incorporated in Pakistan under the Companies Ordinance

Nestle is a Swiss company, founded in 1866 ---Henri Nestle

Nestlé Pure Life was launched in Pakistan in 1998

Product of Nestle

What is Pestle Analysis???

PESTLE analysis is a process to help understand the overall

market environment

→ income distribution or interest rates can seriously affect the

bottom line of a company like Nestle

→ fundamental information

→Affects a business or an investment's value taken into account when

determining the current and expected future value of a business or

investment portfolio

→ labour costs

→government policy and taxes

ECONOMIC

The technological factors have had a great impact. For an

example, the technology of Nestle reduces costs and the quality

also improves, the sold of the goods will also increases.

• Extrusion: have strong expertise in hot extrusion (eg breakfast

cereals), co-extrusion (eg filled bars and snacks) and cold

extrusion (eg ice-cream and chocolate).

• Healthier fats: developed technologies that allow them to use

natural vegetable oils instead of partially hydrogenated fats in

Maggi bouillon cubes and seasonings.

TECHNOLOGICAL

• Foam booster technology: produces the creamy head for Nescafé

Cappuccino, with less fat, and which is much denser and longer-

lasting than regular foam.

• Malt extraction: developed a new process for malt extraction for

Milo that meant less sucrose and more complex carbohydrates in

the product.

• Portion dispensing systems: This know-how is essential for

beverage systems

Healthy and safety law

Advertising law

Employment law

Consumer protection

Business regulation

Pollution control

LEGAL

* Climate change

* Pollution

prevention

* Air emissions

* Natural resources

* Water resources

* Energy conservation

* Recycling wasted

* Reducing wasted

Taxation Regulation

If government imposes heavy taxes on the industry then it badly effects the

industry growth.

Health and Safety Regulation

Most importance to Nestlé.

Environmental protection Laws

They do concern for environment and contribute more and more for the

better of environment.

POLITICAL

SOCIAL-CULTURAL

High Demand

People in demanding high quality at reasonable price

Change in population in age and consumer expenditure

Population aged above 65 is increasing

Consumer expenditure also increasing from year of 2009 to 2012. Among the

consumer expenditure, only a parts are spend on food and cause decreasing

Successful of the private-label brands by several of Europe's leading

supermarket chains

The trend is the shift away from branded food and beverages towards cheap

non-branded foods and cause price competition in key segments of Nestle

core products

• It is useful strategic planning tool

• Internal- strengths & weakness

• External- threats & opportunities

• A useful strategy for ensuring organizational

success can be formulated

STRENGTHS

BRAND STRENGTH:

Quality brands and products

Top selling brand: Nescafe, Maggi, Milo, Kit Kat, Honey

Stars, Pepsi and etc.

PRODUCT INNOVATION:

continuously introducing new products &

manufacturing is efficiency

o RESEARCH & DEVELOPMENT CAPABILITIES: have the largest

R&D network of any food company in the world,

with 32 R&D centres and over 5,000 people directly

involved in R&D

o MARKET SHARE: high level of market share and that

people all over the world trust and recognizes

Nestle as a big brand name.

MATURE MARKETS: Nestle is entering into markets that are already mature and can give a tough competition to new entrants Supply Chain: complex chain management

WEAKNESSES

Health-based products- transition to nutrition

company

Strong economy- developing & emerging

economics

More popular in the world- ex. United States

Possible new markets- Potential to expand to

smaller towns and other geographies

International Marketing Standards

Facing the threats by worldwide community

Due to its violation of international marketing standards

Damage the name and trust of Nestle ’s customer

Because many conferences and campaigns held against Nestle

Changing Consumer Trends

FMCG (fast moving consumer goods)

Increased consumer spending on consumer durables

resulting in lower spending

Performance of the FMCG sector has been lackluster

in past 2-3 years

Sector Woes

Rising prices of raw materials and fuels

Increasing packaging and manufacturing costs

Not able pass on the full burden onto customers

Reference List

• http://www.ukessays.co.uk/essays/business/nestle-growth-efforts.php

• http://www.research.nestle.com/researchandinnovation/valuechain/qualityandsafety

• http://www.slideshare.net/zakriazubair/nestle-juicesproject

• http://www.ukessays.com/essays/marketing/the-macro-environment-analysis-of-nestle-in-switzerland-marketing-essay.php

Nestle is a market leader

Its price is high against its competitors but it matches its quality with its competitors

The world’s largest food and beverage company with its mission to provide healthier lifestyle

Can easily find Nestlé's product from any retailer shop

“Nestle is the largest food company in the

world. But, more important to them is to be

the world’s leading food company.”

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