Group Member:

Tham Li Ling Kam Ka Mei Cheam Huoy Vian Ng Yi Xian Riiko Leon

Cheam Huoy Vian Ng Yi Xian Riiko Leon

Nestl is a Swiss-German word which means

Little Nest which is its trademark

Nestl Milk Pak Limited (NML) was incorporated in

Pakistan under the Companies Ordinance

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

Henri Nestle
Nestl 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

ECONOMIC
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

TECHNOLOGICAL

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.

 Foam booster technology: produces the creamy head for Nescaf Cappuccino, with less fat, and which is much denser and longerlasting 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

LEGAL

Healthy and safety law Advertising law Employment law Consumer protection Business regulation Pollution control

* Climate change * Natural resources * Pollution * Water resources prevention * Energy conservation * Air emissions * Recycling wasted * Reducing wasted

POLITICAL
Taxation Regulation If government imposes heavy taxes on the industry then it badly effects the industry growth.
Health and Safety Regulation Most importance to Nestl. Environmental protection Laws They do concern for environment and contribute more and more for the better of environment.

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.

WEAKNESSES
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

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

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/n estle-growth-efforts.php http://www.research.nestle.com/researchandi nnovation/valuechain/qualityandsafety http://www.slideshare.net/zakriazubair/nestle -juicesproject http://www.ukessays.com/essays/marketing/t he-macro-environment-analysis-of-nestle-inswitzerland-marketing-essay.php

Nestle is a market leader

Its price is high against its competitors but it matches its quality with its competitors The worlds largest food and beverage company with its mission to provide healthier lifestyle Can easily find Nestl's product from any retailer shop

Nestle is the largest food company in the world. But, more important to them is to be the worlds leading food company.
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