Marketing and Nestle Case Study

Topics: Marketing, Food, Globalization Pages: 6 (1884 words) Published: May 5, 2013
Nestle Case study

Q.1 A:
Impact of Globalization and technology change on Nestle:
Globalization means the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment. Pestle analysis is a useful analysis to understand the impact of Globalization on a company. Political analysis:

Taken advantage of globalization Nestle considers political stability of a country to build a plant that can operate. Considering th country’s political stability , good tax incentives as well as skilled work force nestle chooses Malaysia o be the site of regional manufacturing centre for Nescafe. Economic Analysis:

The economic factors lead to the strength of Consumer spending. During recession people stop to spend on the stuff like chocolates Americans likes luxury chocolates, a new line of cacao called Nestle Treasures God has been launched to encash in the recession period. Social analysis:

Nestle as a multinational corporate which operates their business in many countries, they do respect to people's culture and traditional which means that nestle is corporate that thinks global. Kit-Kat's formula is not same everywhere. A Russian Kit-Kat is smaller than a Bulgarian, but less sweet than Kit Kat in Germany and all this is possible because of globalization. Technological analysis:

In order to reach end consumer Nestle uses advertising to attract people to purchase their products  Nestle Policy and Environmental sustainable (2008) reports shown that during the manufacturing process, Nestle uses technologies to ensure that there is no wasted energy. In addition, they also controls Green house gas emmisiion. Legal analysis:

In 1996,Nestle s the first multinational company that uses Halal Certification for its products. As a global food company like Nestle, the most important thing is Hygene. Since Nestle has the Halal certification and hygiene is the procedure to get this certificate. Environmental analysis:

Nestle committed to produce best quality products for its customers. Nestle prevented the waste of maetrials by recycling them. But Kit Katis a environmental destructed produc because of the use of material that is used in candy bars. Nestle uses Maket penetration strategy as a response to Globalisation.It refers to increase in market share through exsisting products by giving offers like buy 1 get 1 free. Market penetration also involves 4ps Product

Nestle has differentiated products producing Kit-Kat in different flavor. A Russian Kit-Kat is smaller than a Bulgarian, Germany's Kit-Kat is less sweet. In Japan they are selling Stawberry kitkat.. The international price is related to the account market different between countries taking into account the exchange rates. Nestle always advertise their products through media like television and make sure that people know their products pursuing people to purchase there pro It is difficult to control from outside the overseas country to control distribution Nestle recruits people outside of overseas of the relevant country to solve the problem as warehouses, the selling markets etc. Q.2 A

Balance score card is a business model that emphasizes the need for a broad range key performance indicators and builds a rational structure that reflects longer terms prospects as well as immediate performance. It translates mission and sstrategy into objectives and measures and focuses onFinancial, Customer, innovative and learning perspective and internal business process. The financial perspective focuses on growths , turnover shareholder values by setting measures through talking directly with shareholders. The Nestle annual report 2012 indicates an organic growth of 5.9% , the net profit was 11.8% and earning per share increases by 12.2% , the operating cash flows also increases to 15.8 billion indicting a strong financial position of the company. The company should make...

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