SWOT Analysis of Nestle
Ø
Strengths
o Nestlé
have a high market share. Nestlé is delivering its product to
almost all
countries in the world. Globally its share in the market is quite substantial.
The first quarter sales of the year 2010 for the group were 26.3 billion with
4.8% internal growth.
o Nestlé
has one of the most advanced research and design capabilities through which
they introduce new products every year giving the brand a huge advantage over
its competitors.
o Nestlé
has not only been forming partnerships with other leading companies, but is
also acquiring several others, resulting in remarkable growth.
o Nestlé
is a reputable brand and is well known almost everywhere, as its products are
used by millions of people each day.
Ø
Weakness
o Inability
to provide consistency in the quality of their food
products, as Nestlé often
has to call in many products due to poor
supplies or contamination, hurting
the image of the company.
o Nestlé
has faced a lot of criticism on a variety of issues, such as the horsemeat
scandal and child labor, which it has not been able
to avert.
Ø
Opportunities
o The
increasing demand for healthy food products has opened up an
immense market
for companies. Nestlé in response to the health
trend tries to introduce
healthier food products.
o Nestlé
is already engaged in partnerships with a number of major
companies, such as
Coca-Cola, and several others, opening doors of opportunities for the company.
Ø
Threats
o The
brand’s irresponsibility to run thorough quality assurance on
its products
resulted in providing contaminated food and other products on the market, which
can hurt the reputation of the company and lead to losses.
o Nestlé
is the leading supplier of chocolate and cocoa products. The increasing trend
towards healthy eating will result in major declines in demand.
o The
demand for raw food is expected to increase as population and economy grows. As
a result, Nestlé will have to face higher costs and tighter margins.
SWOT Analysis of Kit Kat
Ø
Strengths
The main strengths of Kit Kat is its parent company. Because being owned by Nestlé, the world’s largest nutrition and food
company that almost always success in all its products and brands. Nestlé has
enough financial strength to keep up every products advertisement and
promotions. Besides that, Kit Kat has another strength. Some of it are :
1. Kit
Kat has creative, simple and visible advertising where the
slogan “Have a
Break, Have a Kit Kat” created a hype among customers especially children and
youngsters which creates high brand awareness.
2. Kit Kat products are easily reachable as it
can be found in small grocery until huge hypermarkets.
3. Price
is not too expensive, compared to its competitors.
4. Kit
Kat was the first product that comes up with a chocolate-wafer combination and
until now its still more popular than Cadbury’s
Time Out.
Ø
Weakness
Some weakness of Kit Kat are :
o Nowadays,
people are becoming more health conscious and
avoiding having chocolates.
Moreover, Kit Kat does not have any health- conscious chocolate bars that
attracts health conscious crowd.
o Packaging
is a silent promoter for a brand and Kit Kat has not change its packaging style
for some time. Possibility to attract more customers indeed is there if Kit Kat
tries changing its packaging style.
o Kit
Kat keeps experimenting with new flavors that keeps bringing out new flavors
out in the market whereas the consumers just want to stick to its original
flavors and most of the time these new flavors which it comes out with are flop
in the market, such as Kit Kat Chunky Caramel flavor.
o Although
has expanded a lot in some countries but in regions like Asia, Kit Kat still
needs to enlarge and expand especially in small towns and villages.
o Expanding
market growth in emerging countries such as Russia,
Brazil, India and China
would be an excellent strategy to improve their revenue. Company can operating
to establish a company in China And India for cheap labor.
o Growth
of technology, helps Kit Kat continuously improve their product into a quality
and environmentally friendly.
o Chocolate’s
are also considered as substitutes of sweets. This is an opportunity for Kit
Kat to bring out a chocolate packing that matches every occasion for example
birthdays and religious occasions like Eid ( Idul Fitri ), Christmas, etc.
o Kit
Kat can introduce more health based products for the health conscious society,
such as low fat chocolate-bar.
Ø
Threats
Main Threats of Kit Kat is the increase or rising costs of raw
materials, fuels, dairy cost and price of packaging and manufacturing that
result in the increase of Kit Kat price. In reality, a lot of consumers want to
get a product by pay with same price to get a good quality product. The other
threats are :
1.
Contamination to the product that caused by the
weather or
irresponsible attitude of workers and quality check.
2.
Huge competition with Mars, Cadbury and Twix in
market where Kit Kat has to compete to remain an established brand and favorite
chocolate-wafer.
No comments:
Post a Comment