Market and Company Analysis of Nestle

grocery store and conjunction psychoanalysis of cuddleNestl, the worlds leading food gild, progress tos nutritious food and is conscious of the splendor of informing the consumer about the link between nutrition and health. A wakeless diet contri exactlyes signifi faecal mattertly to the all overall tint of a good life.2.2 go up gold coast LTD**Note Please REPHRASE and COMBINE this section its taken WORD BY WORD from the available source.Source 1 merchandising Information and Research Task 1and 3.pdfSource 2 hold close unmingled Life Drinkng Water.pdfNestle gold coast limited is a privy confederacy operating in gold coast. Its activities include condensed and evaporated dairy crossways, boozings, coffee, tea, and umber and confectionary. The alliance employs quartette hundred and seventy two work forces. Nestle started business in gold coast in 1957 under the merchandise name of Nestle point of intersections gold coast limited with the importation of nestle pr oducts frequently(prenominal)(prenominal) as milk and burnt umber. In 1968, it was in corporated as Food Specialties (gold coast) limited to manufacture and trade topically head known Nestle brands. The phoner became nestle gold coast limited in 1987. In 1971 the business of two products, Ideal Milk and milo started at the factory in Tema, the port city. The factory has since been further certain and now withal produces carnation milk, Chocomilo, Chocolim, Cerelac, Cerevita and Nescafe 3 in 1. These products ar not only produced for Ghana except excessively exported across West Africa. In 2003, Nestle Ghana limited invested in a new w atomic number 18house named the primal statistical distribution Centre, located next to the factory in Tema. The company runs sales offices with warehouse in Kumasi, Takoradi, Koforidua and tamale, all in Ghana. The business activity of Nestle Ghana limited is a purpose contribution to the delivery of Ghana. For all these and other en deavours, nestle Ghana limited has been recognized by the Government of Ghana and other bodies as a responsible corporate citizen.-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=Nestl Ghana peculiar(a) started business in Ghana in 1957, with the importation of Nestl products such as milk and chocolates. The company built its factory at Tema in 1971 and started the production of IDEAL Milk and MILO. In 1987 Food Specialties Ghana Limited became Nestl Ghana Limited. Since then, the product portfolio has increased with the additional production of chromatic, CARNATION TEA CREAMER, CHOCOLIM, CHOCOMILO, CERELAC (Maize, Wheat, Wheat Bean, 3 Fruits, Honey, Rice and Banana), NESCAF Crem 3 in 1 and NESQUIK, which is produced for import. Other products like NESCAF and MAGGI are imported from Cte dIviore. Nestl Ghana Limited continues to thrive in business because heavy(p) importance is put on look upon creation for our stakeholders and customers. Ensuring long term profitable appendage and susta inability has been achieved by building on the companys strengths and balancing the portfolio on three (3) live on pillars milk, deep brown beverage, and culinary. As a member of the Central and West Africa office (CWAR), Nestl Ghana aims to be an efficient and competitive inter-company supplier using and bestow to CWAR synergies by becoming a sound manufacturing base for Ghanaian exports like cocoa beverage aiming to increase Nestl Ghana exports from ten percent (10%) to cardinal percent (30%) of annual turnover. To achieve this, Nestl Ghana is diligently improving processes with capacity usage and working capital optimization, such as the gateway of environmentally amicable equipment, and upgrading information systems, with the introduction of GLOBE (SAP). The advent of these changes enhances and enforces Nestl Ghanas close develop Nestl employees.=-=-=-=-=-=-=-=-=-=-=-=-=In 2003, Nestl Ghana Ltd invested in a new warehouse, the Central Distribution centre, located next to the factory in Tema. The company also runs sales offices with warehouses in Kumasi, Takoradi, Koforidua and Tamale. The business activity of Nestl Ghana Ltd is a direct contribution to the Ghanaian economy. For all these and other endeavours, Nestl Ghana Ltd has been recognized by Government and other bodies as a responsible citizen.Since its establishment, Nestle Ghana limited has signifi give noticetly stimulated the Ghanaian economy with a dynamic, well trained dedicated work force, manufacturing and food tradeplaceing well-known brands such asIdeal Full Cream Evaporated Milk, Carnation Filled Milk, Carnation afternoon tea Creamer, milo, Chocolim, Chocomilo Cerevita porridge, Cerelac Maize Milk And Ce solid Wheat / Milk. Nestle Ghana also imports and distributes brands such as NIDO milk powder, lactogen infant formula, NAN infant formula, Nescafe dissolvable Coffee, and Maggi Bouillons and cold sauces.Nestle Ghana Ltd. is now seeking to capitalize on the goodwill enjoyed by it brand chocolim, by introducing chocoless, a brand extension, aimed at generating growth for the company.ANALYSISIndustry AnalysisIndustry of hot chocolate in Ghana deep brown beans were first introduced to Ghana in 1878 by Tettah Quarshie. Thereafter, the elaboration of cocoa increased steadily until Ghana became the worlds bounteousst cocoa producer, supplying more than one-third of world production by the mid-1960s. By the early 1980s, production was less than half that of two decades onwards merchandise conditions were aggravated by a drop of nearly 75% in world cocoa outlays between 1977 and 1982. In 1983/84, cocoa production totaled 158,000 tons, the natural depressionest since independency by 1999, production had rebounded to about 409,000 tons (second luxuriouslyest after Cte dIvoire). The Ghana burnt umber Marketing Board purchases and (at least in theory) exports the full cocoa crop, as well as coffee and shea nuts. chocolate export was made punishable by death in 1982.http//www.nationsencyclopedia.com/Africa/Ghana-AGRICULTURE.htmlixzz1DlAhbER2Since the introduction of nation in Ghana in 1992, the cocoa beverage industry has shown respectable growth. Total number of players is estimated around five. Difficulties in discovering this number arise due(p) to increasing of imported product by unauthorized company. The advent of a democratic government has led to a more business friendly environment and privatization policies lead led to an increase in the size of the private sector in the pastoral.Leading Businesses in the Industry deep brown beverage industry in Ghana is highly fragmented, with the presence of multinationals, domestic and remote companies. Except in categories where domestic players are protected by legislation, multinationals usually dominate. Notable players include Cadbury (Ghana), Cocoa treat Company (CPC) and NABB Brothers. It is coarse for large international companies to form alliances with Ghanaian com panies, to repackage and/or market their products in Ghana. This lowers the try of market entry, as well as enabling the international company to benefit from the existing marketing and distribution capabilities of the Ghanaian company.Factors That Affect growthEconomically, Ghana was in the lower floor of growth countries and classified as a least developed province (LCD) by international teaching agencies because its per capita annual income was US$400 textbook.A positive outlook is announce for consumer goods in Ghana. One of the master(prenominal) contributory factors will be the countrys governmental and economic stability. Higher disposable incomes and increasing company advertising are expected to boost value growth. The average Ghanaian will strike down more on packaged food, especially on items previously regarded as luxuries. Value growth will also benefit from the increasing mundanity of Ghanaian consumers and improving product quality. Food items that are fast and convenient, such as pasta and noodles, will continue to post dynamic value growth.The sector faces many challenges caused by the environment in Ghana such as poor infrastructure, poor standards of education, and high levels of corruption and a broadly speaking low level of disposable income of the existence. There is little manufacturing for export, but a signifi weedt activity exists in the manufacture of fast moving consumer goods aimed at the domestic market. In recent years, multinational corporations have increased their investiture in physical kit and boodles, information technology and staff training with a view to improving their operational performance.The consumer goods sector is a major separate of the manufacturing sector in Ghana. And like all other manufacturers, the consumer goods industry is characterized by low valued added production. What we see are processors who process imported bleak materials into finished products, with very little value added. Mu ltinational companies operating in this industry hardly add value because they import concentrates from their parent companies, which they convince into finished products with minimal value added.The industry is dominated by wholesalers and allocators. In fact, distributors and wholesalers account for over 50% of total sales inside the industry. Their potency is as a result of fragmentation nature at the retail end of the market. The retail end lacked adequate supermarket and glossary stores. They mainly check of roadside kiosks, stores, and small sized restaurants, whose sales volumes are ecumenicly low. Distribution to the retail market is hampered by huge enthronements required for delivery trucks general bad road network.Marketing Strategy-What types of marketing strategies are habitual within the industry?-Determine current operational/management trend within the industry?Neslte Creating Shared Value (Source Nestl Creating SharedValue Report 2009.pdf)care about the state urine treatmentWater treatmentBecause good water quality in the areas surrounding our plants has direct benefits for our business, society and the environment all our water is treated in wastewater treatment plants. Our preference is to use municipal wastewater plants to hold we return only cleaned water back into the environment, but where these are insufficient, we invest in our own on-site facilities (approximately 292 to date, including our latest in Tema, Ghana). We remove 97% of the organic load of the water leaving our factories before it is returned to the environment. In 2009, we discharged 91.34 meg m3 of water, a decrease of more than 5% on 2008, with an average level of organic load of 91 mg COD/l (Chemical Oxygen Demand per litre). During 2009, we have reviewed this KPI and have headstrong that figures for previous years were underreported.Competitor AnalysisNestle Ghana was approach a direct competition and indirect competition. Their direct competitors are Cadburr y Schweppes Ghana Ltd, NABB Brothers, Cocoa Processing Company, assort Cocoa Products Ltd and Kings Cocoa Processing Company Ltd (KCPCL). All those competitors are manufacture and marketed cocoa products. Cadburry and NABB Brothers are multinational companies which have wide experience in international marketing. The rest are local anesthetic companies which plant cocoa and manufactured cocoa products for Ghanaian.Multinational companies which enter Ghana earlier than Nestle is Cadburry Schweppes Ghana Ltd entered Ghana on 1910 for its own benefit. It was hundred% possess by Cadburry Schweppes (UK) with 120 employees. NABB brothers is imported cocoa products to Ghana, there are the leading distributor of supermarket products.The earliest local company which produced cocoas product is Cocoa Processing Company Limited established in 1965 and situated in the picturesque port city of Tema in Ghana. The company comprises three factories (2 Cocoa Factories and a Confectionery Factory). Kings Cocoa Processing Company Limited is a limited liability company incorporated in Ghana on November 30, 1981. The shares of the company are publicly traded on the Ghana Stock Exchange. Allied Cocoa Products Ltd was serving Ghana since 1998. Kings Cocoa Processing Company Limited is a private limited liability company which was incorporated in 2000 to take over the cocoa processing business of the parent company, Luki Investments Limited, which has been trading since 1992.Furthermore, Nestle Ghana was facing indirect competition as well. In Ghana, Milo and Chocolim were marketed for cocoa products by Nestle. They have to compete with other products which are not cocoa products because Ghana also planted tea, coffee and else and can be manufactured into variety products. Cocoa might be elect by children and teenagers but not elders.Competition by ProductCocoa is the largest cash crops in Ghana since 19th century. However, the earliest local company serving cocoa products for citi zen is Cocoa Processing Products in 1965. Cadburry Schweppes entered Ghana on 1910 while Nestle started in Ghana on 1957. This time found show us that even though Ghana have plant cocoas for a long time but they only manage to produce it on 1965 because they are classified as a least ontogenesis country (LDC). Their products are chocolate drink and princely channelise chocolate bars.The Cocoa beverage market is divided into three categories based on the product The Premium Segment, Mass Market and institutional Market. Nestle had a strong market in Premium and Mass Market segment. The institutional Market is for products that contain basic unsweetened cocoa powder supplied to school, hospitals, the gird forces, and so on. Nestle disintegrate cocoa drink consisted ofMilo and Chocolim. The major brand Nestle which manufactured Milo was the leader in the grant year, while state owned Cocoa Processing Company manufactured Golden tree diagram Vitaco was the strongest in the Institu tional Company.As we can se here, all of the companies were marketed cocoas products. Bournvita and Richoco which manufactured by Cadburry Schweppes Ghana Ltd, imported Ovaltine which marketed by NABB Brothers, Golden Tree Vitaco Instant Drinking Chocolate which made by Cocoa Processing Company, Broma which made by Allied Cocoa Products Ltd and Kings Cocoa Processing Company Ltd (KCPCL). All those competitors are manufactured and marketed cocoa products.Competition by PriceGhana has a long history of government-controlled prices for consumer goods and hatful were rest sensitive to price changes and were said to have long-term negative perceptions of companies that were perceived to engage in price gouging. These happened because Ghana was in the lower tier of developing countries and classified as a least developed country (LDC) by international development agencies because its per capita annual income was US$400. Nestle (Ghana) require to develop products that are low-priced to the common people because they are dealing with a developing country which has a low per capita income of US$400. Nestle perceived better quality products were sold at premium of 5% to 10% over competitors. The products were becoming less cheap with waning real incomes. There was also increasing price pressure from imports that were flooding the market as a result of import liberalization.People in developing countries look for affordable products and do not pay attention to the bankers bill of the products thereby Nestle (Ghana) should not have its products in a higher place the average price ofsimilar products in the market. Thus, Nestle (Ghana) should make its products more affordable to the common people. The disadvantage for Nestle (Ghana) is the immaterial economic environment was increasingly unfriendly and risky with the rapid increases in inflations high interest rates and the high level of currency dissymmetry were leading them to increase the prices.Competition by PromotionNestle also operated its own sales outlet and for the most part distributed through supermarkets and departments. Nestle had 100 regular distributors nationwide and the biggest distributor was Unilever s G.B. Ollivant subsidiary. Nestle used an amalgamation of media advertising and sales forward motions targeted at the youthfulness for Milo. The company sponsored highly popular youth soccer leagues, sponsored tennis tournaments and endurance contest race for all ages. Sales promotion technique of wet taste ( ingenuous drinks) was intended at promoting the sales. Media advertising promoted the themes of good health, growing up, and success as closely related and linked to drinking Milo. Nestle s dodging in Ghana was to ensure high awareness of its brands, widespread distribution and quality of its products which benefactored trounce its competitors in the cocoa beverage market.The statistics shows that only 35.8% of the universe of Ghana lives in urban areas, the res t 64.2% of the population lives in country-bred areas where there are low levels of consumer durable ownership such as telephone, television, house, radio and low circulation of print media. Such setbacks in rural areas nasty that mass promotion was viable primarily in the urban areas. The main drawback is that companies have to use large investment in promotion of product into the rural areas to tap 64.2% of the population. As an alternative of spending 150 million cedis (about US$150,800) on sales promotions in urban areas on non media promotion of 60% and 40% covered media expenditure, Nestle can utilize the investment to aggressively promote the product in rural areas. It will attend Nestle (Ghana) to venture into the volume of the population and take control of the market from both sides.Competition by Market shareNestle pulverized cocoa drink consisted of Milo and Chocolim. The two products were quite similar with sixty percent of the company s powdered sales from Milo a nd cardinal percent from Chocolim. Chocolim was aimed at rural areas and low-end urban market while Milo was the premier brand and was targeted to the high-end of the market.Nestle brands were sold at premiums of 5% to 10% over competitors because if its perceived better quality in the market. The Cocoa beverage market was divided into three segments Premium Segment, Mass Market and Institutional Market. Nestle managers estimated their share of 80% in the cocoa beverage market other observers believed Nestle share was closer to 55%.Major competitors for Nestle were Bournvita and Richoco, manufactured by Cadbury (Ghana) with an estimated 20% to 40% market share. Cadbury (Ghana) was 100% owned by Cadbury Schweppes (U.K) and had 120 employees. Another entrant, though on a much smaller scale, was state-owned Cocoa Processing Company (CPC) which made Golden Tree Vitaco Instant Drinking Chocolate. In the institutional market CPC was the strongest market. An additional category of competi tion came from imports, the most prominent of which was Ovaltine, marketed by NABB Brothers, a leading distributor of supermarket products. Milo was the leader in the premium category, while Golden Tree was the strongest in the Institutional Market. Richoco was believed to lead Chocolim by about 5% to 10% market share in the mass market.http//www.goldentreeghana.com/thecompany.htmlhttp//www.alibaba.com/member/lumor/aboutus.htmlhttp//www.scn.org/rdi/kw-coc.htmhttp//business.everythinghana.com/index.php?option=com_mtreetask=viewlinklink_id=48Itemid=26http//en.wikipedia.org/wiki/List_of_bean-to-bar_chocolate_manufacturershttp//alliedcocoa.com/index.aspDefinition of Population growth rate The average annual percent change in the population, resulting from a surplus (or deficit) of births over deaths and the balance of migrants entree and leaving a country. The rate may be positive or negative. The growth rate is a factor in determining how great a burden would be imposed on a country b y the changing needs of its people for infrastructure (e.g., schools, hospitals, housing, roads), resources (e.g., food, water, electricity), and jobs. Rapid population growth can be seen as threatening by coterminous countries.SWOT AnalysisStrengthsGlobal food producer, located in over 100 countries. Consistently one of the worlds largest producers of food products, Global sales in 2008 topped $101 billion.Nestl provides quality brands and products and line extensions that are well-known, top-selling brands.Successful due in part to their unquestionable ability to keep major brands systematically in the forefront of consumers minds (and in their shopping carts) by renovating existing product lines, keeping major brands from slipping into saturation/decline and having superior inlet to distribution channels.WeaknessesGrowth in their organic food sales course was flat in 2008, even though the industry grew 8.9%.Nestle Ghana lack of rural market promotionProducts are not affordabl e by common peopleOpportunitiesIn todays health conscious societies, they can introduce more health-based products, and because they are a market leader, they would likely be more successful.Provide allergen free food items, such as gluten free and peanut free.They launched a new premium line of higher cocoa content chocolates dubbed Nestl Treasures Gold, in order to cash in on the box economy in which consumers cut back on luxury goods, but regularly indulge in candy and chocolate.Opened Nestl Cafs in major cities to feature Nestl products.Nestle strategy in Ghana was to ensure high awareness of its brands, widespread distribution and quality of its products which helps trounce its competitors in the cocoa beverage market with its theme of good health, growing up and success as closely related to its products.Expand to Institutional MarketNestle (Ghana) needs to develop products that are affordable to the common people because they are dealing with a developing country which has a low per capita income of US$400.ThreatsAny contamination of the food supply, especially e-coli.Raw chocolate ingredient prices are soaring dairy costs alone travel 50% in 2008, this cuts heavily into their profit margins and often gets passed on to consumers, by shrinking the packaging in a way that is almost unnoticeable-therefore the consumer is salaried the same prices for less product.They have major competitors, like Cadburry Schweppes Ghana Ltd, NABB Brothers, Cocoa Processing Company, Allied Cocoa Products Ltd and Kings Cocoa Processing Company Ltd (KCPCL)The external economic environment was increasingly hostile and risky with the rapid increases in inflations high interest rates and the high level of currency instability were leading them to increase the prices.RECOMMENDATIONSWe would suggest Nestl (Ghana) should make products affordable to the common people. By developing Nestl (Ghana) products that are affordable to the common they can reach majority of the population because they are dealing with a developing country which has a low per capita income of US$400. Nestls perceived better quality products can help it market in rural areas if the product is affordable. It will help Nestl (Ghana) also exploit 64.2% of the rural population and take control of market from both the sides. It will also help Nestl expand into new market segments like the Institutional Marketing. People in developing countries look for affordable products and dont pay attention to the eminence of the products thereby Nestl (Ghana) should not have its products above the average price of similar products in the market. Nestl (Ghana) can make level best profits from a developing country like Ghana and exploit to every side of the population, urban and rural.