SWOT Analysis of Nestle and 5 Projects

Presenters : Rajesh Chandra Mourya Maruthi Mehanth Ratnesh Kumar Ratan Prem sukh Godara Rakesh meel

SWOT Analysis
y Consistently one of the world's largest producers of

food products, Global sales in 2008 topped $101 billion. Present in over 100 countries y In 2008, Nestl was named one of "America's Most Admired Food Companies" in Fortune magazine for the twelfth consecutive year. y 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

y Nestle having all type of product

y Ex. Maggie, Boost, Chocolate and Candy y Pet Products: Purina, Alpo, Cat Chow, Tidy Cat. y Drinks: Nescafe, Coffee Mate, Taster's Choice.

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

Opportunity
y 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. y Provide allergen free food items, such as gluten free and peanut free. y Opened Nestl Caf's in major cities to feature Nestl products.

Threat
y recall in 2007, in which 95 different brands of dog and cat

food were recalled due to They were affected by the pet food contamination with rat poison. y 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. y They have major competitors, like Hershey's, CadburySchweppes (owned by Pepsi), Lindt and Ghirardelli, Kellogg's, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods, Dannon, Del-Monte, Iams, Earth's Best, Heinz, Frito-Lay (owned by Pepsi).

Products

5 Projects can be launched

1 2 3 4 5 Introduction of Cold Drinks Introduction in Snacks section like Chips Introduction in RTS fruit juice segment. Introduction in other FMC goods like Shop, Shampoo, Tooth paste, Creams Introduction in Micro finances

Thank you