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1. Situation Analysis Nestle can be considered as a high to medium involvement brand since its product range comprises mainly of food products. The chocolate and milk products are high involvement products since it serves majorly the children and it also produces pet foods which are considered by the consumers as medium involvement purchase.
87) the market situation analysis of Nestle shows: Sales- It holds the first position in selling foods. It makes major profits from the sales of food products alone, this year sales rose to 67.6 billion swiss francs which were only 60.9 billion francs last year. Also it’s the world leader in manufacturing coffee. The first three months of 2013 shows that the company’s sales rose to 21.9 billion Swiss francs from the last year but it failed to meet the expected sales which are 22.5 billion Swiss francs. Competitors-Nestle give good competition to most of the fmcg brands like Kraft Foods Inc., Unilever plc. , P & G, PepsiCo, Coca-Cola, Heinz etc. Its huge range of diversified products makes it a strong contender in the fmcg & food sector (Express, 2012). Market Share- It’s the market leader in the coffee & mineral water segment. The table below displays the sales & market shares in the year 1992, of different companies- (Source: Pagell and Halperin 1999, p. 195) Product Range- The product range includes bottled waters, chocolates, cereals, dairy, coffee, drinks, food, ice-creams purina pet care etc. It puts more emphasis on the taste & nutrition content of the product & therefore it ends up fixing slightly higher prices than its competitors. ...
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