Canadian Blood Services

Topics: Nestlé, Nestlé Purina PetCare, Friskies Pages: 8 (2308 words) Published: March 26, 2013
Company Environment
The company
Regulatory Situation
Global Environment
Major developments and general industry Trends
Opportunities and threats
Marketing Strategies
Mission and Corporate Values
Marketing Functions
Analysis and Suggestions
M analysis
G analysis

Global Environment
Major Developments

General Industry Trends
According to a survey conducted by the Pet Products Manufacturer Association, more than 71.1 million or 63% of U.S. households have a pet. (Gundersen, 2008) The pet food market has proven to be a very attractive market, according to the 2009-2010 American Pet Products Association, it is estimated that US$47.7 billion was spent on pets in the US in 2010, with US$18.28 billion being spent on pet food alone. The strong spending comes amid price increases in nearly every pet food category, the result of rising costs of fuel, ingredients and transportation for manufacturers. (Taylor, 2010) Opportunities:

One of the biggest advantages NPP has is that it is a subsidiary of Nestle. What this means is that NPP can rely on the substantial and large funds of its parent company in order to expand its line of products, do some more aggressive marketing and pricing and have a cushion to fall back on in case of having sales decrease. The second great opportunity for NPP is the fact that pet owners are seeking for more luxurious products for their pets and they’re getting greater interest in what they feed their pets with. What this means is that the pet food market is expanding rapidly, especially in North America. According to a survey conducted by the Pet Products Manufacturer Association showed that in the U.S. more than half of the households have at least one pet in their houselod. (Gundersen, 2008) Threats:

As in any business, one of the biggest threats is having numerous competitors; this is a big concern to NPP considering that they are not the leading company in the pet food industry. Not only NPP has to compete against the already established big pet care companies but there is a trend that all major pet care retailers are starting their own line of products. Having all these product lines and competitors only mean lower sales as more consumers decide to switch brands. Although North America is a well-established and growing market for pet care products, there are some other markets where customers are not well educated about the products and this may be an obstacle. An example provided by the Datamonitor report about NPP gives an example of owners believing home meals are more nutritious for their pets than commercially prepared food for pets. This is a common misbelief in emerging markets. Company environment

The Company:
The company we decided to research is Nestlé. Nestlé is currently the largest food and beverage company in the world. This company has a wide range of products such as milk based products, ice creams, prepared dishes and pharmaceutical products as of beverages. Its top brands or the ones that contribute the most to the company are Nestle, Nespresso, Maggi, KitKat, Purina and Friskies among others. Nestle is a Switzerland based company that was surged back in 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company. One year later, Henri Nestlé, a trained pharmacist, launched one of the world’s first prepared infant cereals ‘Farine lactée’ in Vevey, Switzerland. The two companies merged in 1905 to become the Nestlé you know today, with headquarters still based in the Swiss town of Vevey. The company is currently employing over 328 000 employees worldwide and has factories or operations in almost every country in the world. For the purpose of the marketing review, we decided to talk specifically of one of the many brands that Nestlé owns, being this “Nestle Purina PetCare...
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