Market Analysis Of Nestle Company In The UAE Consumer Goods Industry

Nature of Business

The aim of this study is to discuss about the company Nestle Company which is one of the leading companies of consumer goods. In this report, the discussion will be on the market analysis of the company Nestle Company by using different types of sources either primary or secondary. The objective of doing the market analysis of the company is to analyze the marketing position of the company in the consumer goods industry as well as in the markets of UAE. In this, the learning is about the target market, the buying behavior of the customers, the business segmentation of Nestle Company, etc. it will also mention about the B2B businesses that directly or indirectly impact the working and functioning of the company (Castaldo, Premazzi, & Zerbini, 2010). As the technology and the process of internationalization taking place, the companies are facing lots of competition as Nestle Company. There are various parameters that can help the company to curb the competition and change it into the opportunities. The report will provide such parameters as recommendations to the company that will improve the position of the company in the markets of UAE (Parasuraman, & Colby, 2007).

This study will discuss about the nature of business organization, the mission and its vision, the major objectives and aim, the marketing environment that can be internal and external environment that both influence the company’s position. There is a huge competition in the market of consumer goods as well as other but if the company applies effective strategies and policies than they can get over the competition and enjoy leading position in the market an industry. They impact the marketing of the company and its products, demand of the products and services, etc. the markets segmentation and targeting will also be determined by using effective measures. The marketing mix of the company will help to identify the each segment properly (Lohmann, Albers, Koch, & Pavlovich, 2009). At last conclusion and recommendations for the same will be provided to provide a summary on the marketing analysis of the Nestle Company.

Nestle Company is a consumer good industry which is international company based in the united Arab. The company provides commercial, daily basis, daily utility, food, beverages, products and services across the world. It is an independent entity that it operating independently in the market of united Arab. It works under a common management company that is Nestle Company group (Baker, & Hart, 2008). It is a multinational organization that is a leading brand of the global food business. The company was initiated by Mr. Henry nestle which have now become the world’s largest manufacturer and producer of food items. The company is famous for nutrition food and the research capability. The company has its presence in more 100 countries. The employees working in UAE are more than 10000.  

Marketing Environment

Nestle Company – its nature, vision, mission, and objectives

The nature of the business of the company, its vision, mission, and objectives are very clear and staring forward. Nestle Company objectives is to provide high class products and services to its customers in the most reasonable prices. This Nestle Company is also very much committed to its mission and vision which says “offering consistently high-quality value –for-money services and to be the best consumer goods company out of all”. In order to achieve such mission, the company is trying hard as they bring consistent innovation and also the services are customer-oriented (Seraj, 2012). They try to provide god quality products at reasonable prices to their customers. Products can be like chocolates, food and beverages, etc.

Marketing Environment

The external and internal environment elements affect the marketing of the company’s products, and these factors may directly influence the demand and the marketing of these products.

External analysis

It is very much important for Nestle Company to understand the external environment of the company so that they can make future plans (Vaaland, Heide, & Grønhaug, 2008). It helps in analyzing the threats and opportunities of the company.

Macro-environment

Demographic cultural and social factors

The company Nestle Company in operating and functioning in Dubai and the culture and society of that city provide various types of features that are unique in nature. Firstly, this city provides company a large number of customers who use a bulk of products manufactured by Nestle Company like ice cream, chocolates, nutritional food, yogurt, etc. (Lee, Broderick, & Chamberlain, 2007). It helps the company to put all the resources of the company in use. Firstly, this city provides company a large number of customers who use a bulk of products manufactured and using the products and service. It helps the company to put all the resources of the company in use. The fact is that the culture of Dubai is very open and the people of Dubai are from different communities, culture, nationalities, etc. who live together in an environment which is developed. Due to this, they are very foody and love to have food items.  (Babin, Hair, & Boles, 2008).

Political factors

There are rules and regulations imposed by the government of the different countries make according to the need and requirement. The government has made rules on the consumer goods and utilities. The company Nestle Company has huge potential to compete with the other big competitors of the world (Mulhern, 2009). The stable and easy rules of other countries help the company to do their operations and functions like liberalization in other countries, globalization, etc. it may increase the competition in the market.

External Analysis

Economic factors

The growth and development of Dubai take place due to the growth of Nestle Company as the economy has become one of the strongest economies in the world. There is a stable growth in the economy of Dubai which has a positive result. Recently, there was a downturn in the economy that has influence the working of the company as well as country (Jacob, & Ulaga, 2008). Due to this, many other consumer goods industry’s sale had decreased and their capacities in both national and international brands. Such challenges always influence the Nestle Company as they have to manage in the time of crisis (Day, 2011).

Technological factors

The technological factors play a vital role as there is always changes take place in the technology. The Nestle Company is fully dependent on the technology as all the production take place using heavy machines. So there is a need of technology advancement for the companies like Nestle Company. They have to adopt latest technology in order to remain in the competition and have competitive advantage. The company has full knowledge related to the technology and how to invest in the development of technology so that the operations can be performed in a smooth manner (Brown, 2007). In this way, the company has signed many agreements with other companies like production, supply chain management, etc. so that they can incorporate technological advancements. The company has been awarded as the best in consumer goods provider and best in developed awards (Ballantyne, & Aitken, 2007).

Performance

With the time, the performance of the company has improved for a long way. At the starting point, the organization focus was to add more products but now company is focusing on the overall growth of the consumer goods as well as the company. There are many issues faced by the company related to the globalization and internalization of the business. But gradually with time, they are able to set up their business in international markets as well. The company has tried to become more flexible to adapt the different cultures. The company then tried to cover more and more products. In order to achieve this, the company tried to improve their performance and productivity of the company. There are various challenges in upgrading the services as the company has to bring changes in the human resource department and workforce working with them.  The Nestle Company also have to focus on the prices of the products offered by them to their customers. They must be reasonable and competitive in nature. The company is trying to put their best efforts in determining the prices of the products to make it competitive in nature. Even in the situation of crisis, the company should deliver best and decent services to their customers

Demographic, Cultural, and Social Factors

Management and staff

The employees are highly skilled and work at different positions. The kind of people who are hired to work with Nestle Company are highly skilled, talented and qualified as they have to work as the production, sales members, HR, managers, etc. of the company. The people are asked to perform their jobs in the best way they can so that the objective can be fulfilled that is to deliver best goods and services to the customers (Hanson, & Grimmer, 2007). The service provided by the staff influence the reputation of the company due to which the personnel have been employed in the company. The company keeps their staff and employees motivated as it help in better performance and productivity in the company.  The mission is to take maximum output from the employees. The employability rate of Nestle Company is very high due to higher performances of the employees. 

Infrastructure and delivery

The infrastructure of the company is very hi tech with all possible latest technologies. To attract large number of customers, the company always tries to manage the fast and effective delivery of the products and services. They giver first priority to the goods and services as it is the core competency of this company.

Customers

The customers of Nestle Company are belonged to the customers who use products of Nestle Company. There are various challenges in upgrading the products as the company has to bring changes in the human resource department and workforce working with them.  The Nestle Company also have to focus on the prices of products offered by them to their customers. They must be reasonable and competitive in nature. The company is trying to put their best efforts in determining the prices of the goods to make it competitive in nature. Even in the situation of crisis, the company should deliver best and decent goods and services to their customers.

The growth and development of the company is directly related to the demand and supply of the products and services of the company. The company tries to place the demand in a very prominent way. The company always tries to follow the business ethics and values to the company when they try to place the demand (Gummesson, Lusch, & Vargo, 2010). The aim of the company is to place the demand of the resources that are required by the company and the consumer goods industry. There are two major resources that are required by the consumer goods industry that is raw material, machinery, labor and other resources. They fist make a list of the resources that are required and then arrange the resources. In this way, the Nestle Company planned to have strategic planning that is very effective and efficient. It includes the cost management, cost effective  management, cost cutting, etc. in the management of value chain  activities with respect to various types of demands like certain and uncertain demands (Daymon, & Holloway, 2010).

Performance

The markets of this company is affected the by the positioning strategy and targeting of the brand. The company always performs its best to remain on the top position in the markets. In order to maintain such position, the company makes bring modifications and revaluation in the marketing strategies and also in the services to the customers. The internal and external resources have been checked accordingly (Verhoef et al. 2009).

The segments of this company’s market are spread all over the world. The company is enjoying giving products and services to a large group of customers. The each segment of this company has followed a particular criteria, different policies and strategies so that they can remain satisfied. The characteristics of the segmentation of this company help in the strategy formation (Vargo, & Lusch, 2011). There are various types of changes take place in the markets that must be witnessed by the company.  The factors that influence the working of Nestle Company are prices of the raw material, increase and decrease in the availability of the natural resources, labor, delivery of food, supply chain, etc. due to the changes in the above written scenario, the manufacturers face many types of problems and issues in the process of production of the consumer goods. In such situations, they have to keep in mind that the products and services must be sustainable, eco-friendly and economic (Piekkari, Plakoyiannaki, & Welch, 2010). It is one of the major environmental factors that influence the functioning of the company.

The nature of competition in the company’s market is low entry barriers intensify competition in the consumer goods industry of Dubai and all over the world. Due to low barriers to entry the consumer goods industry like Nestle Company are highly competitive and also intensive, the nature of capital invested in consumer goods industry is very high, the fixed cost and the barriers to exit are also very high. There is high competition in the consumer goods industry as it is one of the intense industries as there are barriers to the entry are comparatively low (Gummesson, & Mele, 2010). This is because of the process of liberalization of the international markets and globalization.

The competition in the consumer goods industry increases due to the increase in the companies for the consumer goods. In order to maintain a leading position in the markets, the company is required to be very competitive (Gummesson, & Polese, 2009).

Management and Staff

Product

The Nestle Company provide unique and primary products and services as they are designed in a way to impress the customers that use and eat the products manufactured by the same. The company offers a range of superior and luxury products, style and refinements in their products. They try to provide high quality and enjoyment to their customers (Chumpitaz & Paparoidamis, 2007). The Nestle Company team is very skilled and world class members who are selected to maintain the work in the production of the products like dairy items, chocolates, ice creams, breakfast, nutrition, power bars, etc.

Some of the exceptional products provided by Nestle Company are small Nescafe white coffee, neslo, Maggie, chocolates, etc. that are very much liked by the children as well as elders are very much fond off the same. There are various types of nutrition products are available in the market (Backhaus, Lügger, & Koch, 2011)

Price

The price value at which the company charges its customers is very flexible as they decide their price according to the economic conditions   and also the current scenario of the markets. The prices are very reasonable as compared to the other companies. The prices of the products, goods and services also keep moderating according to the customers. There are distinguishing part of the Nestle Company whose prices are comparatively lower than the other one (Creswell, 2013).  They are reasonable and cheap and the buying process is also convenient. As per the other companies of food manufacturing, Nestle Company is providing 23% more cheap goods and products to their customers. The price of the products are planned in a very smart way and taking care of all the customers present in Sydney, Auckland, Bangkok, Bangkok, and Singapore (Mertens, 2014).

Promotion

According to the present condition, the company Nestle Company have become one of the leading companies of consumer goods industry so it does not need promotion. But when the companies try to introduce some new policies and products, than the requirement of promotion and marketing requires (Mulhern, 2009). The company tries to contact to the regular customers to update them about the new policies.

People/ personnel-

The kind of people who are hired to work with Nestle Company are highly skilled, talented and qualified as they have to work as the managers, HR department, and production members of the factories. The people are asked to perform their jobs in the best way they can so that the objective can be fulfilled that is to deliver best services to the customers (Hanson, & Grimmer, 2007). The service provided by the staff influence the reputation of the company due to which the personnel have been employed in the company.

Infrastructure and Delivery

Conclusion

In order to work properly in the market an industry of consumer goods, it is relevant for the company to analyze and identify the market in which the company operates. The company can gain competitive advantage over the competitive over the competitors. There are particulars strategies and policies that help the company to have effective management of the functions and operations. The company Nestle Company are now trying to cope up with the marketing situations by applying new techniques to the company.

In order to survive in the competition, the company is trying hard to as they make effective and efficient policies related to the innovation and creativity. There must be incorporation of all the strategies with the requirement of the company as it will help to cover all the key areas. To stand in the competition, the Nestle Company is using the help of latest technology and other factors like advancement in the workforce, effective products and services, etc.

The fact about the consumer goods industry is that the competition faced by this industry is high due to the other companies. The consumer goods industry is fully dependent on the products and services provided by the company so it is the major area on which the Nestle Company must focus.  They should enhance the quality of goods and service provided by them to their customers. It will help in increasing the brand value and brand loyalty. There are various challenges in upgrading the products and services as the company has to bring changes in the human resource department and workforce working with them.  The Nestle Company also have to focus on the prices of goods offered by them to their customers. They must be reasonable and competitive in nature. The company is trying to put their best efforts in determining the prices of the goods to make it competitive in nature. Even in the situation of crisis, the company should deliver best and good quality goods and services to their customers.

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