G. External Factor Evaluation (EFE) Nestle external factor evaluation Key External Factors OPPORTUNITIES 1. Special Formula for Infant shows Nestle's commitment to ethical practices by eliminating the sucrose and maintaining the vanilla flavorings. 2. To increase the reach of Nestlé products worldwide. 3. Represented sales of e-commerce are 15.8% and grew by 9.3% 0.12 14 Increase total sales of Prepared Dishes and Cooking Aids by 15% 0.10 Weight Rating Weighted Score 0.10 3 0.30 0.05 3 0.24 4 0.48 0.40 5. 30% af frozen food is ready-to-eat in the industry. 0.12 3 0.36 6. Nestlé's PetCare segment reported sales of CHF 14 billion in 2020, representing nearly 17% of Nestlé sales 0.10 3 0.30 7. plant-based mik sales grew by 20% in 2020. 0.08 3 0.24 B. Contributed 14% of corporate sales in the segment of nutrition and health science 0.12 0.48 9. Profitable sales in powdered and liquid beverages represents 26% of total sales and a margin of 22.5% in 2020 revenues 0.10 0.30 10. Shifting consumer preferences 0.08 3 0.24 TOTAL: 2.84 THREATS A Study reported that Increasing Obesity is a major problem among the world's population, that 17% to 21% of calories from added sugar is harmful. 0.10 0.30 Economic Issues that can impact people's ability to buy 0.05 3 0.24 1 X Total Nestle's e-commerce sales contribute 15.8% to its total sales and grow by 9.3% year-on-year Yet, competitors are expanding taster which threatens Nostia 0.12 2 0.24 Hershey's a confectionary leader worldwide and annual revenues of over $8 billion in 2020 0.10 2 0.20 Rising costs of raw materials affecting prices and profits 0.08 An increase in New Pets Worldwide led General Mills to acquire Blue Buffalo and the sales grew by 10% over 2020 Problems with water scarcity affect the production of food and beverages, which depend on water, with agriculture representing 70% of water withdrawals. 0.32 0.10 3 0.30 0.12 4 0.48 Effects of climate change potentially disrupting agriculture and sourcing 0.08 2 0.16 Risks from counterfeit products damaging brand reputation and consumer trust 0.10 3 0.30 Challenges with regulatory compliance due to changing laws and standards 0.12 3 0.36 1.00 2.90

G. External Factor Evaluation (EFE) Nestle external factor evaluation Key External Factors OPPORTUNITIES 1. Special Formula for Infant shows Nestle's commitment to ethical practices by eliminating the sucrose and maintaining the vanilla flavorings. 2. To increase the reach of Nestlé products worldwide. 3. Represented sales of e-commerce are 15.8% and grew by 9.3% 0.12 14 Increase total sales of Prepared Dishes and Cooking Aids by 15% 0.10 Weight Rating Weighted Score 0.10 3 0.30 0.05 3 0.24 4 0.48 0.40 5. 30% af frozen food is ready-to-eat in the industry. 0.12 3 0.36 6. Nestlé's PetCare segment reported sales of CHF 14 billion in 2020, representing nearly 17% of Nestlé sales 0.10 3 0.30 7. plant-based mik sales grew by 20% in 2020. 0.08 3 0.24 B. Contributed 14% of corporate sales in the segment of nutrition and health science 0.12 0.48 9. Profitable sales in powdered and liquid beverages represents 26% of total sales and a margin of 22.5% in 2020 revenues 0.10 0.30 10. Shifting consumer preferences 0.08 3 0.24 TOTAL: 2.84 THREATS A Study reported that Increasing Obesity is a major problem among the world's population, that 17% to 21% of calories from added sugar is harmful. 0.10 0.30 Economic Issues that can impact people's ability to buy 0.05 3 0.24 1 X Total Nestle's e-commerce sales contribute 15.8% to its total sales and grow by 9.3% year-on-year Yet, competitors are expanding taster which threatens Nostia 0.12 2 0.24 Hershey's a confectionary leader worldwide and annual revenues of over $8 billion in 2020 0.10 2 0.20 Rising costs of raw materials affecting prices and profits 0.08 An increase in New Pets Worldwide led General Mills to acquire Blue Buffalo and the sales grew by 10% over 2020 Problems with water scarcity affect the production of food and beverages, which depend on water, with agriculture representing 70% of water withdrawals. 0.32 0.10 3 0.30 0.12 4 0.48 Effects of climate change potentially disrupting agriculture and sourcing 0.08 2 0.16 Risks from counterfeit products damaging brand reputation and consumer trust 0.10 3 0.30 Challenges with regulatory compliance due to changing laws and standards 0.12 3 0.36 1.00 2.90

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter2: Planning, Implementing, And Evaluating Marketing Strategies

Section: Chapter Questions

Problem 1SC

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