The paper “ Nestle Australia – Company’ s Goals and Objectives, Market share, Positioning, Market Analysis, Buyer Behavior” is a delightful example of a report on marketing. Companies need to be aware of the environment at which they are performing their business, so they carry out PEST analysis and SWOT analysis as well. However, in order for more accurate information, a company may conduct a situation analysis that is more detailed and precise; it shows the company’ s place in the whole industry. The following is a situation analysis of Nestle in the Australian foods and confectionery industry. Company analysis Goals and objectivesAs the main company, Nestle Australia is an extension of the desires of the shareholders.
Its main agenda s capital utilization and the realization of profit, however, a corporation this enormous does not only wish to make a profit but also to better the lives of other stakeholders that are part and parcel of the corporation. This includes its employees, its customers, and the general public and this is why CSR is a major part of the corporation’ s main agendas. The company believes in the devolvement of tasks and revenue in order to better the lives of its contractors and outsourced personnel. Source: (Tipton, Loon, & Nestlé Nutrition Institute.
2013, p. 45) Fig 1. Clearly stipulates the core values that nestle considers vital in their long term and short term goals. The realization of these goals will keep them at the forefront of the foods and confectionery industry. Market shareThe larger picture will show that nestle is the largest food company in the world in terms of market capitalization and market share; these boast a total of 233 billion US dollars and a 17% respectively (State Library of New South Wales. , & Nestlé Australia.
2004, p. 67). These numbers are not as far from the real case in Australia, fortunately, the nation is wide and boasts as a single continent that is also a nation. This gives the company a large playing ground for their products, however, this has been a very competitive industry but nestle has remained either in position one or two in all their products expect for chocolate which is in third place. PositioningThe company seeks to find a balance between profitability and market share, market sales have reduced a little and this prompts action from the management.
In the current market price reduction does not mean an automatic increase in sales, the company must put the long term objectives as the priorities since short term adjustment in their sales and strategy can end up robbing the company the chance to realize their long term goals. The position in which the company is taking is a more calculated strategy in the implementation of their short term and long term goals. Market analysis SizeThe most advantageous factor about Nestle is that all its products can be affordable for all markets; this includes the high and low-end markets; this is evident in that the company has been known to make sales even in low-income nations.
The size of the Australian confectionery market is expanding, it has been dominated by nestle after it took over the other competitors in the late 1980s. The company got 7.5% of the market share back then and as said earlier, this has been increasing.
In 2012 alone the company generated total revenue of 2,204,397,000 dollars including sales and other revenue.
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