Sdda higher Essay Example

its employees, as well as its multicultural nature. Moreover, Nestle embraces the Corporate Business Principle endorsed by Harvard, which aims to benefit both the organization and society (Nestle 2006).

Nestle's sales increased slightly in almost all countries, ranging from 0.1% to 10%. However, there were slight decreases in sales in Italy, Spain, Canada, and Australia. In contrast, China experienced a significant improvement with a peak of 91.4% in 2012 (Financial Annual Report 2012). The report also highlighted the smooth operation of the business and a slight increase in earnings between 2011 and 2012, from CHEF 2.97 million to CHEF 3.33 million. Nestle has shareholders totaling 250,000 from Switzerland, the US, and other countries. Additionally, Nestle collaborates with Indonesia,Thailand, China Mongolia,and Colombia for sourcing raw materials and enhancing product quality. For instance,"coffee farmers in the Yunnan Province of China are improving both yield and quality as a direct result of our advisors' expertise as are farmers in Indonesia,Mexico,the Philippines,and Thailand" (Nestle Annual Report ,2006).

Nestle mandates suppliers to adhere to rigorous regulations for partnership eligibility. Moreover, Nestle's competitors lack the depth of experience and comprehension that Nestle possesses. With a century-long expertise and global presence, Nestle has acquired valuable insights into people's preferences, cultural heritage, religious convictions, and origins. This grants Nestle an edge over rival food companies in delivering products with exceptional taste and longevity.

Nestle is dominating the food production industry due to its strong brand and the trust it has garnered from consumers. To illustrate, Nestle sells over 1 billion products daily. In Africa alone, more than 75 million cubes of seasoning magi are purchased each day, along with over 5 million

cups of Unsafe drunk consumed daily (Herman 2011). Despite being a popular brand, Nestle consistently aims for affordability in its price strategy, ensuring that even its cheapest products provide a balanced nutrition and good taste.

Herman (2011) analyzes that the new product from Nestle has the lowest price on the market compared to competitors' baby formulas, being approximately 40% less expensive than Nestle© AL 110. Nestle (2006) states that their products are available worldwide through numerous points of sale. These include supermarkets, retail superstores, chain stores, grocery stalls, small markets, vending machines, and mobile machines.

Nestle sells its products in diverse places like fitness centers, hotels, airplanes, trains, and schools. Furthermore, Nestle operates its own Research Center located near Lausanne, Switzerland. This allows them to reduce dependence on external companies and promote their own innovation. The Nestle© Institute of Health Sciences is dedicated to biomedical research for science-based nutrition discovery. With a large workforce, Nestle can study consumer needs and assess their products globally.

Nestle company employs a micromanagement approach by dividing the global market into several segments based on consumer demand, culture, and areas. This enables Nestle to cater to different market segments such as demographic, economic, natural, technological, political, and cultural factors. In terms of demographic segmentation, Nestle targets all age groups and provides a wide range of products suited to specific ages, occupations, genders, family structures, and more. This ensures that consumers have various options when deciding to purchase Nestle products.

Nestle aims to meet the needs of people of all ages and acknowledges the relationship between specific products and different age groups. For example, Nestle provides Infant Formula and baby cereal

for infants, Nestle Baby & Me and Nestle Mom & Me formulas for pregnant women, Unsafe from Nestle for adults, Purina products for pets from Nestle's organization, Magi soy sauce for families, and Nestle health care Nutrition for elderly individuals.

Economic: Nestle strives to cater to the demands of all social classes by setting prices that are suitable for everyone. As Herman (2011) explains, several factors can impact customers' purchasing power, including steady growth of local economies and food price inflation. Nestle conducts research on these factors to ensure that the prices of its basic products become more affordable. Nestle understands that affordable pricing improves sales and profitability, so it carefully evaluates economic conditions and adjusts pricing accordingly.

According to Herman (2011), Nestle focuses on researching their customer's income situation and their demand for products in order to achieve affordability. Nestle (2006) also emphasizes that they offer a wide range of products with not only affordable prices but also good quality, taste, and nutrition, specifically targeted towards low-income classes. For instance, products like Unsafe, Mill, and Kitty are examples of affordable options that still maintain high-quality nutrition and taste.

Nestle aims to safeguard the environment by allocating resources towards research and developing strategies to decrease emissions, particularly CO2, with the goal of mitigating global warming throughout their production activities. Consumer apprehensions surrounding a company's ecological footprint can influence its sales figures. Thus, Nestle dedicates funds and employs sustainable materials to preserve nature in order to foster customer confidence. Consequently, Nestle was honored with a gold medal from the 27th World Environment Center for its dedication to environmental sustainability (Nestle 2011).

According to Nestle (2006),

they invested 100 million and committed to following the Clean Development Mechanism, a component of the Kyoto Protocol that aims to regulate carbon dioxide emissions. In their factory in Chile, instead of using coal or fossil fuels, they have switched to natural gas for air heaters and boilers. This change has resulted in a decrease of 19000 tonnes of CO. Nestle (2006) also emphasizes their efforts in recycling waste materials and utilizing easily biodegradable substances to reduce pollution concerns. They highlight that they were the first company in Europe to adopt a new biodegradable alternative to plastic for their food products.

This text emphasizes on the eco-friendly nature of a biodegradable alternative to plastic that is created from renewable resources. The material undergoes decomposition when exposed to a water environment and completely disappears within a span of three months. Nestle, as an organization, is committed to continuous research and development of technological systems in order to provide the best service and offer healthier and more nutritious foods to its customers. Additionally, Nestle aims to design and introduce high-tech machines exclusively for the convenience of its customers in their busy daily lives. As a result, customers have the freedom to change their taste preferences, enjoy new experiences, and eagerly anticipate further innovative research from the company.

Nestle sells their products in various vending machines in certain countries, providing consumers with more convenience when purchasing Nestle products. They have also introduced the Nestle Special coffee machine, which allows consumers to quickly make a delicious cup of coffee with multiple options for hot, cold beverages, teas, and various flavors (Nestle 2011). Additionally, Nestle focuses on developing healthier options

to ensure customer satisfaction and ease of use. From a political perspective, Nestle believes in protecting both their customers and their brand by delivering the best service possible.

Nestle (2010) emphasizes the importance of trust and relationships with customers for their protection. They prioritize finding the highest quality products for consumers and have strict standards outlined in their Code of Business Conduct, including adherence to laws and anti-corruption measures. Nestle values cultural diversity and rejects discrimination based on nationality, religion, age, or gender. With a presence in 130 countries, they strive to understand and adapt to different cultures due to varying needs, tastes, flavors, and habits. For instance, while Maggi's soy sauce is sold in many Asian countries, it is not available in certain Western countries like England due to differing preferences.

Unlike its operations in England, Nestle does not offer pet products in Vietnam where there is low demand and pets are not prioritized by the Vietnamese population.

Strengths:

• Higher quality products
• Brand awareness and image
• Easy to find natural materials
• Had more than 17-year experience and gained trust from customer
• A consistent and high technology

Weaknesses:

• New product will be official to approach customers
• Lack of information about Nestle Enemies in the web

Opportunities:

• Technology development and innovation
• Vietnam Joined in WTFO and ASIAN this would more easy to export the products

SO Strategies:

• Attract more potential customers by using high quality and good design
• Further develop brand image to create demand

WOO Strategies:

• Open Nestle©'s website by Vietnamese style to introduce the product for customer and diminish distance between the products and customers. It leads to; customers understand more clearly the products.

Threats:

• Most Vietnam woman prefer to buy cheap products
• The increasing of Inflation in Vietnam

SST Strategies:

• Create close relationship with suppliers, which provide cheap raw material.
• To escape adverse impacts in the supply of goods caused by a poor transport system, Nestle development of stock chain management to deliver high-quality goods across the country.

I WET strategies aim to reduce production costs of goods sold, develop new products at cheaper prices, and increase attention on acquisitions to avoid problems with raw materials.
The first step in the process is segmentation, which encompasses geographic, demographic, cryptographic, and behavioral factors. In terms of demographics,

Nestle©'s Enemies targets users in the higher upper or middle class, as well as moderate income earners. With a busy lifestyle, women in particular seek a simple breakfast that is lightweight yet provides adequate nutrition to maintain body balance and energy for the day.
Cryptographic factors include personality and lifestyle, with Nestles Enemies milk recognizing that milk is an essential beverage in life and therefore ensuring the product's quality.

Nestle's advertising for the Enemies milk targets working women who aspire to success and higher goals. The campaign emphasizes the importance of taking care of their children, themselves, and their families. It aims to provide these women with more energy to fulfill their roles effectively. Enemies milk focuses on the specific needs of women who easily lose calcium from their bones, leading to weakness, bone fractures, and difficulty walking. Nestle Enemies aims to protect women from these diseases by offering a high calcium, low-fat product. Differentiating itself from other brands, Enemies is portrayed as the most healthy and nutritious beverage option. It was introduced to the Vietnamese market in 2013 with an innovative formula that includes whole grains, unlike its competitors Slaloms and Notified Just, which only contain cereal flakes (Van, 2013).

According to Hit (2007) in CBS News, the consumption of whole grains as part of a daily meal has been shown to lower cholesterol levels and reduce the risk of heart disease. Amnesia contains 32% cereal in its ingredients, while Notified and Slaloms cereals only have 25%. As a result, Enemies provides almost twice the amount of dietary fiber compared to Slaloms and Intuition cereal milk. Additionally, Enemies is marketed as a low-fat product,

making it suitable for individuals on a diet. It has an extremely low fat content of around 1g per sachet, while Slaloms has g of fat per sachet and Intuition cereal has 3g of fat per sachet.

In contrast, Enemies offers a full range of essential nutrients such as Vitamins and Calcium. Enemies provides all 6 different types of vitamins in one product, while Notified Just only offers 2 of them and Slaloms cereal does not provide any vitamins. It is worth noting that Nestle, a highly respected corporation in Vietnam with over 100 years of operation in the market, has gained the undoubted trust of Vietnamese consumers for each of its brands (Nestle 2013). Additionally, Enemies is manufactured in Vietnam's largest instant coffee factory, which was established with an investment of nearly $270 million by Nestle in Been Ho Province. As a result, their production line will undergo modernization.

This means that the quality of the product will be significantly increased. According to Van (2013) in Ingoing Ala Dong News, the price of Nestle Enemies is much higher compared to other competitors such as Intuition and Slaloms cereal. Nestle Enemies is sold for Vietnamese customers at around 70,VND higher, which is around 20,VND higher compared to Intuition and Slaloms cereal. As a consequence, the price of Enemies needs to be taken into account for comparison. The nutritious content of Nestle Enemies is richer and contains more elements than others, which could be the reason that affects the price of the product. Intuition and Slaloms cereals offer a lower quality of product.

The table shows that Enemies offers a more nutritious product, which results in a

higher price compared to the other two options. Enemies Product follows a "more for more" approach. Nestle, a reputable and trusted corporation with over 100 years of experience in the Vietnam market, has highly trained research teams supported by advanced technology to create top-quality products like Enemies. As a result, domestic consumers continue to choose Enemies due to their belief in Nestle's product quality. Additionally, one brand of cereal drink was reported for exaggerating its nutritional claims and intending to mislead consumers.

Nestle aims to offer the best products in the domestic market, giving customers more reasons to choose them. They strive to bring a wider range of products to Vietnam, providing consumers with a healthier diet. Their mission statement is to offer consumers the most nutritious and delicious options across various food and beverage categories throughout the day. Nestle's research teams with advanced technologies develop products like Enemies to meet the demand for healthy and nutritious choices. In summary, Nestle Enemies has become a successful brand globally.

The product being introduced to the Vietnam market boasts a higher nutritional value compared to other similar products. However, the price of the product remains significantly higher. In order to increase acceptance and consumer purchasing behavior, the marketing team plans to execute multiple commercial and promotional campaigns within the next year. Additionally, customer feedback regarding the taste of the product is essential for further improvement. This will ensure that the product aligns with consumer preferences and meets domestic demand.