Nestle: Multinational Vevey Vaud

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Nestle

Nestle is a Swiss multinational food and drink processing


conglomerate corporation headquartered in Vevey, Vaud,
Switzerland. It is the largest food company in the world, measured by
revenues and other metrics.
Products:
 Baby Food,
 Medical food,
 Bottled water,
 Breakfast cereals,
 Coffee and tea,
 Confectionery,
 Dairy products,
 Ice cream,
 Frozen food,
 Pet foods,
 Snacks.
Competitors:
 Hershey’s
 Kellogg
 Unilever
 Ferrero Rocher
 Amul
SWOT Analysis
Strength:
 Unmatched research and development capability
 Strong geographic presence, with one of the best
geographically diversified revenue sources
 Unrivaled product and brand portfolio
 Environmental sustainability efforts
 Ownership of some of the most recognizable brands in the
world

Weakness:
 Criticism over high water usage, selling contaminated
food, anti-unionism, forced child labour and using other
unethical practices
 Contaminated food recalls

Opportunities:
 Clear and accurate labelling indicating of any harmful
products
 Transparency in material sourcing
 Growing number of small Silicon Valley based food start-
ups
 Growing ready-to-drink (RTD) tea and RTD coffee markets

Threats:
 Poor quality water and its scarcity
 Increased competition in the beverage and food industries
 The price of coffee beans could significantly rise due to
major weather disasters

Strategies:
 Differentiated targeting strategy can help the company
in targeting the homogeneous set of customers (i.e.
customers with similar needs) with their bundle
of products.
 The broad product portfolio help the company in
maintaining a high share of wallet of customers.
 Its dairy products, powdered & liquid beverages,
bakeries& cookies and confectionary business verticals
are stars due to nestle having a strong hold in these
businesses with large product length.
 Developing nations have been the
biggest opportunity for a company like Nestle as there
is challenges & opportunity in penetrating the market.
Nestle uses multi-channel strategy to distribute its
products.
 Nestle is Fortune 500 company and it
does individual branding of their brands which help it in
creating high visibility & awareness.
 With a large number of players fighting in the same
market, penetration to the untapped market is what
drives the industry to further growth.

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