Nestle Market Analysis

 Nestle Market Analysis Dissertation

The confectionary Industry examination for learning market dynamics for Nestle

Table of Contents

1 ) History3

2 . Industry Size and Trends3

2 . 1 ) The Syndication Mix5

installment payments on your 2 . Talk about of Grocery store, Petroconvenience and Route6

2 . 3. Export and Import Scenario6

3. Industry Characteristics6

4. Porters 5 forces7

4. 1 . Threat of recent entrants7

four. 2 . Industry rivalry7

some. 3. Risk of substitutes8

4. four. Bagaining power of Buyers8

four. 5. Negotiating Power of suppliers8

5. Confectionary industry Threats8

6. Confectionary industry Opportunities11

7. References11

1 . Background

* The confectionary came from thousands of years ago, when Hippocrates used desserts as channel to propagate his medicine pre 400 BC. * In 1600's cocoa veggie was discovered in South America by Spanish. After that it became an extravagance product to get the consumption of the elite in Europe. 5. The 1st chocolate house was exposed in London in 1657. In Europe, Nestle was founded in 1867. John Cadbury started making chocolate in England in 1831. * Wayne Stedman was the first in Australia to set up a tiny confectionary manufacturer in 1874. Nestle commenced its food operation nationwide in 1908. Allen's brand goes back to 1891 and Life Savers to 1921. Mac Robertson introduced the Mars products in the late fifties. * A series of take overs and mergers took place as business searched for economies of scale. In the 1980's, the Australian marketplace became a transnational industry from a national a single. After acquiring local company Life Savers and Allens in 1985 and Rowntree Mackintosh globally- Nestle Confectionary Ltd 20 years ago. This approach was to bring all brands under a single banner. During 1990's Multinationals-7. 5% in the Australian Confectionary industry. 2. In Oct 2008, Roter planet (umgangssprachlich) Inc. Acquired Wm Wrigley Jr and therefore became planet's biggest confectionary manufacturer. Even though in Australia, that they operate separately, Mars can be Mars- in charge of chocolate and Wrigley Firm for sugar confectionary and gum range.

2 . Industry Size and Trends

In 2008, Aussie Confectionary industry was approximated to be several. 7 billion; out of which 2 . six bililon was accounted for simply by Grocery, Petro convenience and Route. Other 1 billion sales was issued by seasonal confectionary and programs not captured through standard tracking (mass merchandisers, finance raising, etc). The price of sweets rose by simply 31. 5% and of cocoa by thirty seven. 9% in 2007-2008. This led to an increase in the price of companies also the trend of moving by a number of the industry's main players. The confectionary sales in 2009, was hardly troubled by the global financial disaster. Although, certain sectors in the market have demostrated tremendous expansion at the price of others – overall every capita intake did not modify much.

($2. six Billion)

Australian Confectionary Sector Segments

Chocolate ConfectionarySugar ConfectionaryChewing Gum

(62%)(28%) (10%)

RSV $ 1456 Million dollar 936 , 000, 000 $234 Million Source: AIR CONDITIONING UNIT Neilson

Crucial Trends:

* High grade Products

* Health Goods

* Classic Products

Crucial innovation areas for the industry to expand:

* No unnatural colours/natural

* Organic

5. Low/No, lowered sugar

2. High cocoa content

* Allergen cost-free

The testing instances are forward, for the industry because, awareness of ingestion of sugars, fats and obesity issues is increasing amongst the Australians. Although, the industry has already responded by simply introducing low/reduced sugar variations and small serving sizes. Chocolate companies are widely promoting the health benefits of cacao and dark chocolate and incorporating them with fruits, nuts and so forth 2 . one particular The Division Mix

Confectionary Sales

75% Food 13% Classic 12% Exported Super market items (Convenience and petro convenience independent small store) (In 1980s- Grocery store accounted for )

Supermarket restaurants...

References: * Hubbard, Rice and Beamish (2008) " Strategic management”, Prentice Corridor, chapter three or more,

Analysing environmental surroundings.