2xJawGzu6lleHRUA2FbQIxM O © E + 11 +BIUA EX B. SWOT Analysis STRENGTHS 1. Introduced vegetable portions to its food and beverage segment 2. Billion is invested in R&D annually 3. Decrease in Operating Expenses 1. WEAKNESSES Revenues from the dairy products segment decreased. 2. Confectionery Concerns 3. Nutrition and Health Science experienced a decline compared to 2019. 4. Sales of Plant-based meats have a notable increase. 5. Global Market Presence 4. Some confectionery segment sales are down 5. Sales for prepared dishes and cooking aids declined 6. Product Innovation or Renovation contributes significantly to sales. 7. Strategic Partnerships with international organizations 8. Established Customer Loyalty 9. Established Corporate Social Responsibility Programs 10. Commitment to Quality 6. Total water sales decreased in 2020. 7. Limited Growth of some product segment 8. High marketing costs 9. Pressure from public health concerns and Regulations 10. High Competition Across Diverse Product Lines OPPORTUNITIES 1. Special Formulas for infant products 2. To increase the reach of Nestle products in the world 3. Growth in E-commerce Sales 4. Rising demand for Prepared Dishes and Cooking Aids 5. Mostly frozen food is ready-to-eat in the industry. THREATS 1. Health Concerns in the World 2. Economic Issues that can impact people's ability to buy 3. People want something that is convenient to eat 4. Fast pace of growing E-commerce 5. Rising costs of raw materials affecting prices and profits 6. The number of pet owners are increasing 7. Plant-based alternatives for products 6. Intense market competition 7. Problems with water scarcity affecting production and sourcing 8. Growing health and Conscious people 9. Rising demand for powdered and liquid beverages 10. Changing Customer's preferences 8. Effects of climate change potentially disrupting agriculture and sourcing 9. Risks from counterfeit products damaging brand reputation and consumer trust 10. Challenges with regulatory compliance due to changing laws and standards -1- 12 + BIUA Search SWOT MATRIX SO 1. Creating a plant based product for the consumer who wants to take into consideration healthier options. (S1,S4, 07) Product Development 2. To increase the reach of Nestle by selling and promoting products from countries that have not reached. (S5, 02) Market Development 3. Improve the product packaging, taste, flavor, and the quality of the existing products. (S9, S2, S6, 010) Product Development 4. Start a partnership with other organizations in creating the products that are in demand (S7, 04, 09) Market Penetration 5. Nestle can introduce new products to the market and gain easy trust from consumers. (S5, 05, 06) Related Diversification 6. Nestle can utilize savings with its ST 1. reduced operating expenses and can lower its costs that are associated with online sales to become efficient. (S3, 03) Market Penetration Creating plant based and healthier products for the health conscious. (S1, S4, T1) Related Diversification 2. Navigate the major dangers posed by shortages of water and climate change, which could jeopardise manufacturing capacities and supply chains.(S2, S7, T7, T8) Related Diversification 3. Establish strong anti-counterfeiting measures and increase customer education on product authenticity.(S6, S10, T9) Market Penetration 4. Develop marketing plans and increase their customer loyalty programs. (S8, S5, T3, T6) Market Penetration WO WT 1. Leverage rising consumer health consciousness, as well as the rise of e-commerce and digital marketing, to effectively improve outreach and education. (W3, W9, 03, 08) Market Development 2. Developing new alternatives in both dairy and prepared dishes such as plant-based products and introducing different unique flavors to cater to the current trends. (W1, W5, 010) Divestiture 3. Improving products for a healthier version. (W9, W1, 01, 08) Market Penetration 4. Product innovation to be able to keep up with the consumers preference. (W7, 010) Product Development 1. Introducing products like dietary supplements and drinks. (W4, W9, T1) Related Diversification 2. They need to remove things that are not able to sell so much in the market. (W1, W5, W6, T5, T6) Retrenchment 3. Creating or improving into a healthier product from existing ones (W1, W2, T1) Product Development 4. Start food manufacturing with cheap labor to reduce prices of products. (W10, T2, T10) Related Diversification 5. Start working on social media marketing which is cheaper and most reliable. (W8, T4) Market Penetration 286 X

2xJawGzu6lleHRUA2FbQIxM O © E + 11 +BIUA EX B. SWOT Analysis STRENGTHS 1. Introduced vegetable portions to its food and beverage segment 2. Billion is invested in R&D annually 3. Decrease in Operating Expenses 1. WEAKNESSES Revenues from the dairy products segment decreased. 2. Confectionery Concerns 3. Nutrition and Health Science experienced a decline compared to 2019. 4. Sales of Plant-based meats have a notable increase. 5. Global Market Presence 4. Some confectionery segment sales are down 5. Sales for prepared dishes and cooking aids declined 6. Product Innovation or Renovation contributes significantly to sales. 7. Strategic Partnerships with international organizations 8. Established Customer Loyalty 9. Established Corporate Social Responsibility Programs 10. Commitment to Quality 6. Total water sales decreased in 2020. 7. Limited Growth of some product segment 8. High marketing costs 9. Pressure from public health concerns and Regulations 10. High Competition Across Diverse Product Lines OPPORTUNITIES 1. Special Formulas for infant products 2. To increase the reach of Nestle products in the world 3. Growth in E-commerce Sales 4. Rising demand for Prepared Dishes and Cooking Aids 5. Mostly frozen food is ready-to-eat in the industry. THREATS 1. Health Concerns in the World 2. Economic Issues that can impact people's ability to buy 3. People want something that is convenient to eat 4. Fast pace of growing E-commerce 5. Rising costs of raw materials affecting prices and profits 6. The number of pet owners are increasing 7. Plant-based alternatives for products 6. Intense market competition 7. Problems with water scarcity affecting production and sourcing 8. Growing health and Conscious people 9. Rising demand for powdered and liquid beverages 10. Changing Customer's preferences 8. Effects of climate change potentially disrupting agriculture and sourcing 9. Risks from counterfeit products damaging brand reputation and consumer trust 10. Challenges with regulatory compliance due to changing laws and standards -1- 12 + BIUA Search SWOT MATRIX SO 1. Creating a plant based product for the consumer who wants to take into consideration healthier options. (S1,S4, 07) Product Development 2. To increase the reach of Nestle by selling and promoting products from countries that have not reached. (S5, 02) Market Development 3. Improve the product packaging, taste, flavor, and the quality of the existing products. (S9, S2, S6, 010) Product Development 4. Start a partnership with other organizations in creating the products that are in demand (S7, 04, 09) Market Penetration 5. Nestle can introduce new products to the market and gain easy trust from consumers. (S5, 05, 06) Related Diversification 6. Nestle can utilize savings with its ST 1. reduced operating expenses and can lower its costs that are associated with online sales to become efficient. (S3, 03) Market Penetration Creating plant based and healthier products for the health conscious. (S1, S4, T1) Related Diversification 2. Navigate the major dangers posed by shortages of water and climate change, which could jeopardise manufacturing capacities and supply chains.(S2, S7, T7, T8) Related Diversification 3. Establish strong anti-counterfeiting measures and increase customer education on product authenticity.(S6, S10, T9) Market Penetration 4. Develop marketing plans and increase their customer loyalty programs. (S8, S5, T3, T6) Market Penetration WO WT 1. Leverage rising consumer health consciousness, as well as the rise of e-commerce and digital marketing, to effectively improve outreach and education. (W3, W9, 03, 08) Market Development 2. Developing new alternatives in both dairy and prepared dishes such as plant-based products and introducing different unique flavors to cater to the current trends. (W1, W5, 010) Divestiture 3. Improving products for a healthier version. (W9, W1, 01, 08) Market Penetration 4. Product innovation to be able to keep up with the consumers preference. (W7, 010) Product Development 1. Introducing products like dietary supplements and drinks. (W4, W9, T1) Related Diversification 2. They need to remove things that are not able to sell so much in the market. (W1, W5, W6, T5, T6) Retrenchment 3. Creating or improving into a healthier product from existing ones (W1, W2, T1) Product Development 4. Start food manufacturing with cheap labor to reduce prices of products. (W10, T2, T10) Related Diversification 5. Start working on social media marketing which is cheaper and most reliable. (W8, T4) Market Penetration 286 X

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter10: Marketing Research

Section10.5: Technology In Marketing Research

Problem 1LO

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