International market evironment analysis

1.Analysis of the influence of market environment (industry trends and prospects)

Today, the fast moving consumer goods industry has developed into the world's largest industry, only its sub sectors of the food industry, starting in 1998 has become the world's largest industry. Nearly $four trillion a year, far more than the turnover of cars, electronics, information and other industries.   

2. international market environment analysis

1. the increasingly fierce competition

Fast consumer goods market channels change fast, product update period is short, and the people's livelihood is closely related. It is because of its cruel, countless businesses here to grow, baptism, growth, and then become a classic textbook. Procter & Gamble, Johnson & Johnson, Unilever, L'Oreal, Henkel, Avon, Amway, Coca Cola, Nestle, Pepsi, McDonald's, KFC, Kraft Foods, can, Mars, Shiseido in global range relatively well-known industry of fast moving consumer goods multinationals. With the information developed, people's consumer psychology and behavior tends to be more changeable, target consumer groups demand is changeable, of a brand or product acceptance of the duration of the relationship; FMCG industry competition is intense, different scale enterprises rely on the price, the channel, some agglomeration degree of consumer demands and market penetration and segmentation.  

1. a few companies occupy most of the market share

The fierce competition to accelerate the industry brand focus speed, the advantage of brand enterprises occupy more and more market share, poor management of enterprises gradually get into trouble, was eventually advantage of enterprise mergers or disappear from the market. We can give a few examples to illustrate this phenomenon.  

Mars is one of the world's largest producer of food, in the chocolate, pet care, candy and other industry with leading position, with many world famous brand, mainly active in six business areas, including pet care, chocolate, Wrigley, the staple food, beverage and biological science.  

The Wrigley Company is recognized by the international confectionery industry leader and the world's largest chewing gum manufacturer, with "juicy fruit", "green arrow", "white arrow" and "big red" a series of world-renowned brands. Airwaves she is still within the scope of global marketing taste many, "Alpine", "Eclipse", "extra", "Freedent", the orbit, "peekay" and "surpass" and "winter fresh" and so on chewing gum brand products. In 1891 4 January day by William. Wrigley Wrigley Company Mr. founded (Mr. William Wrigley Jr.), after years of painstaking 100 business, have rise for the kingdom of the world's gum. Although the Wrigley Company 1923 starting in already publicly listed, but lead the Wrigley Company creating a brilliant, Wrigley family of four generations of business leaders, they are passing on, for the Wrigley Company shareholders created from generation to generation business growth and business prosperity. Arrow chewing gum products have covered more than and 150 countries in the world, are part of the daily life of people all over the world. Currently the arrow products occupy the American chewing gum market nearly half of the country, and accounts for about 50% of the chewing gum all profits in Europe. Arrow product is the absolute leader in the 18 European market, market share is as high as 80% or above.

1. the rise of emerging companies

In recent years, some enterprises through learning the advanced management and marketing model of well-known enterprises, coupled with their own continuous innovation, to create a series of consumers like the brand. The emergence of these emerging brands in the market competition, but also to those famous international brand caused a certain impact.

NESTLE OPERATIONAL PILLARS

Nestlé’s strategic business units focus on the geography and product development. In the product development sector, Nestle is currently focusing on providing healthier product options for their customers. The company claimed that they are concern on the nutrition, health and wellness and try to be innovative and supports the constant renovation of their products.

Nestle is in the process of delivering products with reduced amount of salt, sugar and saturated fats while maintaining customer’s preferences. In the past few years, they also expanded their strategy by creating “Nestle Health Science” which specialized in improving the role of nutritional therapy to change the course of the health for consumers, patients and for their partner in healthcare. And “Nestle Skin Health” focused in medical skin treatment to help develop their products.   

Not only focusing on developing their own products, but Nestle also creates awareness about healthier lifestyle through several events. They created few science based education programme called “Start Healthy Stay Healthy, United for Healthier Kids, Nestle Healthy Kids”. These programmes help parents and caregivers provide their children with food nutrition knowledge and also focus on delivering a healthier lifestyle for children and also encouraging physical activity in their daily life.  

         Nestle has their own roadmap framework that guides the corporation to reach their goals. It shows how they deliver profitable growth, competitive advantages and all the strategies to help them be effective and efficient in their business.  

The operation pillars consist of:  

1. Consumer engagement 

Nestle believes that they have to engage with their consumer in two ways, not only by providing them information about the innovation that Nestle is currently developing but also they are open to get feedback from consumers in order to improves their products to become better.  

2. Operational efficiency 

Ensuring the best raw materials, the best processes, safest and highest quality products. Their objectives are to eliminate waste and errors, increase efficiency and improve the quality and safety in all operations.

3. Whenever, wherever, whoever 

Ensuring not only the quality and efficiency of the operations, but also to ensure that the products available are sustainable in every part of the world.   

4. Innovation and Renovation 

To be the leader in innovation and renovation not only in products, but also in systems and processes. Focus on-going renewal to satisfy consumer’s requirement.

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