SWOT Analysis of Nestle

STRENGTH:
BRAND IMAGE

Marketing strategies established by the company are innovative.

Customers.

Financial, marketing and sales strategies are formulated by gauging the periodic research
carried out to judge market trends.

It is a large scale organization, with abundant funds and has the capability of acquiring
weaker firms by throwing them out of competition. An example for this strength of the company:
Multinational.

Growing Sales and profits.

Major shareholder in the food industry of Pakistan.

Aggressive Marketing.

Efficient Distribution networks through out the country.

Quality Products.

Environment Friendly.

Skilled labour.

Educated staff.

Large number of offerings.

Pre purchase virtual display.

Good background of the company.

Easy to approach outlets.

Solid Financial position

Strong supply chain network

Focus on research and development Estimations of UHT Milk Production

WEAKNESES:
The target market of Nestle MilkPak is upper middle and high class because lower middle
and poor class cannot afford to buy UHT milk due to its premium price.

It is a main weakness of MilkPak that there are different companies of milk but the name
of nestle MilkPak is always stand in the last because of low advertising and marketing.
OPPORTUNITIES:
There are substantial growth opportunities considering the average yield of Pakistani
animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in Europe and
USA. There are nearly 20 million milk producing animals in the country, mostly in Punjab (80%).

The overall milk market in Pakistan is 20 billion liters, out of which processed milk
contributes only 3 million liters. Nestl MilkPak along with other processed milk businesses
contribute... [continues]

SWOT Analysis Nestl

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Strengths

Global food producer, located in over 100 countries. Consistently one of the world's
largest producers of food products, with sales in the USA in 2008 of $10 billion; sales and
earnings in 2008 were better than expected, even in a downturned economy. Global sales in
2008 topped $101 billion.

Repeatedly ranked as the world's largest bottled water company and have set up facilities
to operate water resources in a responsible manner.

In 2008, Nestl was named one of "America's Most Admired Food Companies" in Fortune
magazine for the twelfth consecutive year.

Nestl provides quality brands and products and line extensions that are well-known, topselling brands including:

Lean Cuisine, Yoplait, Maggi, Dryer's/Edy's, Haagen-Dazs, Stouffer's, Boost, Dibs, Hot
Pockets.

Chocolate and Candy: Kit Kat, Toll House, Butterfinger, Baby Ruth, Crunch Bar, the Willy
Wonka Candy line.
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Pet Products: Purina, Alpo, Cat Chow, Fancy Feast, Friskies, Tidy Cat.

Drinks: Carnation, Perrier, Nesquik, S. Pellegrino, Nescafe, CoffeeMate, Taster's Choice,

Juicy Juice.

General Mills: subsidiary which makes Betty Crocker, Bisquick, Hamburger Helper,
Pillsbury, Old El Paso, cereals, fruit snacks, frozen pizza, canned soups, frozen vegetables, readymade frozen meals.

Gerber: baby formula, prepared baby foods, baby cereals, water, juice, yogurt, foods for
infants, toddlers and preschoolers.

Professional brands sold to restaurants, colleges, hotels, and food professionals including
Jenny Craig meals, Impact liquid meals for trauma patients, liquid meals for diabetics, and
OptiFast weight loss products.

Successful due in part to their unquestionable ability to keep major brands consistently in
the forefront of consumer's minds (and in their shopping carts) by renovating existing product
lines, keeping major brands from slipping into saturation/decline and having superior access to
distribution channels.

Weaknesses

Their LC-1 division was not as successful as they thought it would be in France. In the
late 1980s, Dannon entered the market with a health-based yogurt, and become the top selling
brand of yogurt; Nestl's 1994 launch was behind the product life cycle curve in an already
mature market and could not compete against a strong, established brand.

Growth in their organic food sales division was flat in 2008, even though the industry
grew 8.9%.

Since 2004 the breakfast cereal industry has been under fire from the FDA and the
American Medical Association, both of which say that false claims of "heart healthy" and "lower
cholesterol" need to be removed from packaging and advertising. They have also been forced to
reduce the amount of sugar in their products, as parent's advocates groups claimed they were
contributing to the diabetes epidemic among American children.

General Mills is an experienced, established brand and are the market leader in the USA,
however, they have been lacking in innovation, have not cashed in on the booming health food
craze and have been behind in creating new, niche products, especially in their yogurt division,
where Yoplait is the only brand making a profit.

In 2008, although their products did not carry the recalled pistachios, several of their ice
cream brands, Dryer's, Edy's and Haagen-Dazs, were still plagued with bad PR and loss of sales.

Opportunities

In today's health conscious societies, they can introduce more health-based products,
and because they are a market leader, they would likely be more successful.

Provide allergen free food items, such as gluten free and peanut free.

They launched a new premium line of higher cacao content chocolates dubbed Nestl
Treasures Gold, in order to cash in on the "recession economy" in which consumers cut back on
luxury goods, but regularly indulge in candy and chocolate. Americans want luxury chocolates,
and high-end chocolate is immune to the recession (so far), because it is an inexpensive
indulgence.

Open Nestl Caf's in major cities to feature Nestl products.

Threats

Any contamination of the food supply, especially e-coli. Their Toll House brand cookie
dough was recalled in March of 2009 because of e-coli. Outbreaks were linked to 28 states and
the product had to be recalled globally. Nestl has yet to find out how this happened, and is still
investigating.

They were affected by the pet food recall in 2007, in which 95 different brands of dog and
cat food were recalled due to contamination with rat poison. Also in 2007, FDA learned that
certain pet foods were sickening and killing cats and dogs. FDA found contaminants in vegetable
proteins imported into the United States from China and used as ingredients in pet food.

Raw chocolate ingredient prices are soaring; dairy costs alone rose 50% in 2008, this
cuts heavily into their profit margins and often gets passed on to consumers, by shrinking the
packaging in a way that is almost unnoticeable-therefore the consumer is paying the same prices
for less product.

They have major competitors, like Hershey's, Cadbury-Schweppes (owned by Pepsi),

Lindt and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, DelMonte, Iams, Earth's Best, Heinz, Frito-Lay (owned by Pepsi).

Slides
Strengths
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High market share

Size and financial power
Strong brand portfolio
wide range of products
Ability to customize global products & brands to local preferences
Operational efficiency
Strong R&D
Geographically diverse of the major food and beverage companies
Noor the SOOOOR KA BILLAH

Weaknesses
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Limited presence in organic foods market

Unwillingness to divest weaker brands
Lack in retail presence
Didn't promote fully their new product LC1

Nestle is exactly a hoerenmongool

Opportunities
* Integration of new acquisitions in growth markets (i.e., RKF in Russia, Henniez)
* Growth in international & emerging markets
* Transition to a "nutrition and well-being" company
* Continuous growth in the US coffee market
* Ethical business activities and support in community
* Fair Trade argeements for cocoa and other products produced in third world
countries

Threats
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Private label growth

Allegations of unethical business activities
Increased competition in bottled water from niche brands
FDA regulations

Our Mission Statement

Nestls mission, in the words of our founder Henri Nestl, is to: ...positively influence the social
environment in which we operate as responsible corporate citizens, with due regard for those
environmental standards and societal aspirations which improve quality of life. -- Henri Nestl,
1857.

Our vision and values

To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved
shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier
selling preferred products.