By: Fei Lu, Yicun Chen, Jayne Ridl, Josh Teigen
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Transcript of By: Fei Lu, Yicun Chen, Jayne Ridl, Josh Teigen
By:By:Fei Lu, Fei Lu,
Yicun Chen,Yicun Chen,Jayne Ridl,Jayne Ridl,Josh TeigenJosh Teigen
NestleNestle• IntroductionIntroduction• HistoryHistory• Best Chocolate (Demo)Best Chocolate (Demo)• Water Global MarketWater Global Market• Chocolate Global MarketChocolate Global Market• Corporate MissionCorporate Mission• SWOTSWOT• Financial AnalysisFinancial Analysis• RecommendationsRecommendations
IntroductionIntroductionCorporate MissionCorporate Mission
• While our Nestlé Corporate Business While our Nestlé Corporate Business Principles will continue to evolve and Principles will continue to evolve and adapt to a changing world, our basic adapt to a changing world, our basic foundation is unchanged from the time of foundation is unchanged from the time of the origins of our Company, and reflects the origins of our Company, and reflects the basic ideas of fairness, honesty, and a the basic ideas of fairness, honesty, and a general concern for people. general concern for people.
FUN FACT FUN FACT
According to a survey of According to a survey of sex shop owners, chocolate sex shop owners, chocolate is the least popular flavor is the least popular flavor of eatable underwear.of eatable underwear.
QUIZQUIZ
Chocolate HistoryChocolate History
• 66thth Century AD Century AD
• CacahuaquchtlCacahuaquchtl
• XocoatlXocoatl
Chocolate HistoryChocolate History
• Columbus’s GiftColumbus’s Gift
• Currency of beansCurrency of beans
• English BuccaneersEnglish Buccaneers
• Chocolate MarketChocolate Market
Marquis de SadeMarquis de Sade
CasanovaCasanova
Madame de PompadourMadame de Pompadour
Viewer Discretion Viewer Discretion AdvisedAdvised
Madame du BarryMadame du Barry
Chocolate DiscoveriesChocolate Discoveries
• 1755 America
• 1780 Spain
• 1800 History
• 1819 Swiss
DEMODEMO
• Hand out chocolate barsHand out chocolate bars
Best ChocolateBest Chocolate• AppearanceAppearance
• SnapSnap
• AromaAroma
• Mouth FeelMouth Feel
• TasteTaste
Nestle HistoryNestle History• 1860 Founded1860 Founded
• 1875 Nestle 1875 Nestle ChocolateChocolate
• 1905 – 1918 1905 – 1918 Condensed MilkCondensed Milk
• Swiss Chocolate RuleSwiss Chocolate Rule
Nestle HistoryNestle History
• 1947 – 1988 1947 – 1988
• 1992 Nestle water1992 Nestle water
• Chocolate WarChocolate War
FUN FACTFUN FACT
Despite the popular, myth chocolate does not cause acne. Acne is usually do to an improper diet or a body chemical imbalance.
Bottled Water Bottled Water Market StatusMarket Status
●●EuropeEurope AquarelAquarel●● FranceFrance Perrier & VittelPerrier & Vittel●● ItalyItaly VeraVera●● North AmericaNorth America
StrategyStrategyTwo kindsTwo kinds ●● Northern hemisphereNorthern hemisphere ■■ West--health, pleasure, wellnessWest--health, pleasure, wellness ■■ East—new productsEast—new products innovative packaginginnovative packaging ■■ North America North America ●● Southern hemisphere– safe waterSouthern hemisphere– safe water
ChocolateChocolateMajor 5 companiesMajor 5 companies MarsMars NestleNestle Hershey’sHershey’s
KraftKraft
CadburyCadbury
KitKatKitKatStrategy—varietyStrategy—variety
FUN FACTFUN FACT
In a recent survey, 70% of female respondents said they would rather have chocolate than sex.
STRENGTHSTRENGTH• Brand-diversified brands but Brand-diversified brands but
distinctivedistinctive• Leadership-being the first globallyLeadership-being the first globally• Research center-ensure the productResearch center-ensure the product• Adjustability-customize the productAdjustability-customize the product
WEAKNESSWEAKNESS• Inventory-unsold products influenceInventory-unsold products influence• Supply chain-input selected Supply chain-input selected • Revenue declineRevenue decline
OPPORTUNITYOPPORTUNITY• Health awareness-getting more Health awareness-getting more
popularpopular– Jenny CregJenny Creg
• Eco-awarenessEco-awareness• Marketing potential-broaden the Marketing potential-broaden the
marketmarket
THREATTHREAT
• Unethical marketing-reputation Unethical marketing-reputation impairedimpaired
• Internal chaos-embezzlementsInternal chaos-embezzlements• Package cost-goes upPackage cost-goes up• CompetitorsCompetitors
FUN FACTSFUN FACTS
The average American eats about 10 lbs of chocolate per year. The Swiss average 20 lbs per year.
Financials of NestleFinancials of NestleRevenues
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
Nestle Hershey Kraft Foods Con-Agra
Brands
Mill
ions
of D
olla
rs
2003
2004
2005
2006
Financials of NestleFinancials of NestleRetained Earnings Profit for the Year
0
2
4
6
8
10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Year
Billions
of d
ollars
Financials of NestleFinancials of NestleGlobal Market Value and Growth in Confectionaries
1.8%2.2% 2.3% 2.2% 2.0% 1.9% 1.8% 1.8% 1.8%
80859095
100105110
Year
Billi
ons
of
Dolla
rs
0.0%0.5%1.0%1.5%2.0%2.5%
% o
f Gro
wth
$ Billion % Growth
Financials of NestleFinancials of Nestle
Candy Competitors in Sales
Mars, 10.9%
Nestle S.A., 9.8%
Cadbury, 9.1%
Private Lable, 4.9%Other, 65.3%
Financials of NestleFinancials of NestleGlobal Market Volume and Growth of Confectionaries
0.6%0.8%
1.3% 1.4% 1.3% 1.2% 1.3% 1.2% 1.2%
13
13.5
1414.5
15
15.5
16
Year
Billo
ns o
f Kg
0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%
% o
f Gro
wth
Kg Billions % Growth
Financials of NestleFinancials of NestleGlobal Bottled Water Market Value and Growth
9.1%8.3%
5.5%6.3% 5.8% 5.9%
5.2% 4.7% 5.3%
01020304050607080
Year
Billi
ons
of D
olla
rs
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
% o
f Gro
wth
$ Billion % Growth
Financials of NestleFinancials of Nestle
Global Bottled Water Market Segmentation
Sparkling Flavored
3.2%
Still Unflavored
66.5%
Sparkling Unflavored
29.0%
Still Flavored
1.3%
Financials of NestleFinancials of NestleGlobal Market Values and % of Growth of Bottled Water
8.6% 9.3%
6.2%7.4% 6.6% 6.3% 5.6% 4.9% 5.5%
0
50
100
150
200
Year
Billi
ons
of L
iters
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
% o
f Gro
wth
Liters Billion % Growth
RecommendationsRecommendations
• Increase Advertise MoreIncrease Advertise More– CouponsCoupons– 2 for 12 for 1– Less shelf lifeLess shelf life
• Introduce Low Fat Chocolate Introduce Low Fat Chocolate • Narrower Focus on ProductsNarrower Focus on Products• Special Contracts (US)Special Contracts (US)
Any QuestionsAny Questions