Nestle Ltd SWOT Analysis, USP & Competitors

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SWOT Analysis of Nestle Ltd with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis

Nestle Ltd

Parent Company

Nestle Ltd

Category

Food Products

Sector

Food and Beverages

Tagline/ Slogan

Good Food, Good Life

USP

Nestle is one of the biggest food processing, health and wellness brand in the world

Nestle STP

Segment

People looking for good quality, branded products like foods, dairy products, baby food, pet food, confectioneries, etc.

Target Group

Urban middle and upper middle class

Positioning

Nestle is a world class company providing good quality, healthy and tasty food and beverages

Product Portfolio

Brands

1. Nestle Milkybar

2. Nestle MilkMaid

3. Nestle Everyday Dairy Whitener

4. Nescafe

5. Maggi

6. Nestle Kitkat

7. Nestle Bar One

8. Nestle Polo

Nestle SWOT Analysis

Strengths

1. Nestle has an experience of more than 140 years in the industry
2. Nestle is one the world's biggest brand and is consistently in the Fortune 500 list
3. The company has a global reach with presence in over 86 countries
4. Employee strength of around 330,000 people worldwide

5. Nestle offers a wide product range including baby food, pet food, dairy products, confectioneries, pharmaceuticals, beverages, etc.

6. Popular brands owned like Maggi, Haagen-Dazs, Boost, Kit Kat, Nescafe, etc.

7. Largest R&D network facilitating continuous innovation

8. Nestle has a very strong supply chain network and products are available through groceries, supermarkets and even online worldwide

9. C.S.R. activities for rural development, environment protection, water conservation,, etc.

10. Mergers and acquisitions and joint ventures have strengthened Nestle's market position

11. Strong marketing and advertising through TVCs, print media, online ads, OOH and sponsoships

12. Brand loyalty and brand recall of Nestle is extremely high for the brand

Weaknesses

1.Being a big global brand, numerous controversies in different countries of operation cause issues
2.Strong competition by other brands means limited market share growth for Nestle

Opportunities

1.Introduce more health based food products to tap the health consciousness amongst consumers
2.Expanding focus on developing economies can boost business for Nestle 
3.Continue with acquisitions and joint ventures to increase its market share

4.Try to capture the rural markets

5. Tie-ups with leading hotel chains, restaurants, schools, government institutes etc can help Nestle maintain its market dominance

Threats

1.Failure of the complex supply chain at low levels can affect the business
2.Economic instability and recession in countries can adversely affect Nestle because it is a global player
3.Events like Eurozone crisis, as most of its revenue comes from Europe

4.Increase in cost of raw materials can affect profit margins

5.Stiff competition in all product segments

Competition

Competitors

1.Unilever
2.Kraft Foods
3.Sara Lee

4.Danone

5.Mars Incorporated

6.Hershey’s
7. Parle Products Ltd


The table above concludes the Nestle Ltd SWOT analysis along with its marketing strategy and brand parameters.

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