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Competitive Positioning For Nestle Essay

1008 words - 5 pages

Competitive Positioning for Nestle

Executive Summary:

Nestle is a MNC corporation which is based in Vevey, Switzerland. The turnover of the corporation is 86$ bn dollars. This is a private sector organization and has more than 325,000 employees. Nestle Everyday Ghee is a main product of the organization in India. The Ghee is effectively packaged with neat cover for hygienic layered complete packing. In this report we study the corporation, its background, the financial and competitive strength in market of their product “NESTLE EVERYDAY GHEE”.

Table of contents:

1. Introduction to company and ...view middle of the document...

This is an essential dietary item in the Asia continent. This product is also a value based offering in the dietary regime where privileged individuals or middle class is heavily consuming this product nowadays. The product is therefore most pure and hygienically packed.

Market analysis

Market size Rs 5000 crores industry

Competitors Amul, Dalda, and Mother Dairy

Growth 25% of annual ghee demand is being met. The overall dairy sector is expected to grow by 14% while the ghee industry is to set to increase demand by 8% annually as per consumption. Consumption for ghee is 32,000t ghee annual. India is today the largest milk producing country in the world (127 mn tonnes). 35% of average all milk produced is ghee.

SWOT

SWOT for Nestle Everyday Ghee

Strength

• Nestle is big in terms of overall sales and revenue

• The Ghee is dynamically packaged with neat and cleanliness

• Ghee is of standard quality assurance

• It is granular and unlike low quality grade ghee of competitors

• Branding is awesome

• Supply from warehouse is as demand in all areas

• Positioning is relevant and strong consciousness with simple

Weaknesses

• The ghee can be easily substituted by competitors from a longer store value

• The ghee has less worth from lower recalls and ratings

• Segment market consumes more by using other ghee variants high substitution

Threat

• Amul and Dairy Milk branding is more original

• Competitor analysis – brand recognition, value proposition

• Market for ghee increasing with demand allowing low grade ghee sales

• New supply relation is technologically weaker than other dairy products

• Market development shows low price elasticity for product

Opportunity

• from good quality products

• Simple yet reliable branding

• More effective counter sales

• Rural market untapped

• Urban market segment has shown good income elasticity which is unnoticed

PEST

Political

The ghee is potentially wrapped with more value allowing an international global brand to be welcome in consumer lifestyle

Nutrition and quality with good political standing for organization

Social

Product image is of natural ingredients

People connect with the ghee as an owned local variety

Value add of ghee is unlike others – quality, cost, storage worth

The firm has taken up the social causes like environment and employee relations seriously which allows firm product to have better social connect

Economic

The...

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