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Nestle Analysis In Us Market

3509 words - 15 pages

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Student Registration Number: | 120212798 |
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Word Count: | 2442 |

Table of Content

Introduction………………………………………………………………………...1

Discussion
Business environment
PEST………………………………………………………………………………...1-2
Competitor analysis……………………………………………………………………2
Consumer analysis…………………………………………………………………..2-3

Market mix
Product…………………………………………………………………………...….3-4
Price…………………………………………………………………………………....4
Promotion……………………………………………………………………………4-5
Place…………………………………………………………………………………...5

STP analysis
Segmentation……………………………………………………………………..……6
Targeting…………………………………………………………………………….6-7
...view middle of the document...

Mentioning to social impact, due to a large amount of child labor was found in chocolate manufacture, Global Exchange restricted the consumers purchasing on chocolate to support the camping for fair trade chocolate. Nestle may not suffer as they set up cocoa plan in 2009 and their supply chain was monitored by National Confectioners Association’s Sweet & Snacks Expo in Chicago. Finally in technology part, the taste of chocolate would influence by factors such as temperature, particle size distribution, moisture content, etc. Nestlé promised to provide the consumers with best tasting chocolate and they also improved its Nestlé Crunch by tasting not quite as sweet and just little chocolaty in 2006
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(Aliment, 2010).

Competitor analysis
In macro environment, it demonstrated that the sales on sugar confectionary, cereal bar and gum were far less than chocolate in the case study. Nevertheless, we can see that the competition in U.S. chocolate confectionery was fiercely. The two biggest competitors for Nestlé Crunch were Hershey and Mars (Barton 2012-2014). The record in the case study illustrated that Hershey gained the greatest market share in the leading 8 brands. In U.S. chocolate confectionery, the competition Nestlé Crunch faced was the direct competition. Business always competes by driving the performance and innovation, while decreasing the price in direct competition (The Guardian, 2014). However, although Hershey chocolate and Mars M&M’s set up the relatively higher price, they gained more than 10 percent market share comparing to Nestlé Crunch in 2009. Mars R&D director once reported that Mars kept on developing their product to cater customers’ demand. They made Mars M&M’s as the customized chocolate and optimized the price continually. Additionally, they did market research on every Mars customers and investigated why they purchased Mars’ product based on different regions as they thought the customers’ feedback reflected the actual purchase (Businessweek, 2009). It proved that the customers have the greatest effect on competition within a market (Wilson & Gilligan, 2005).

Consumer analysis
The evidence proved that the psychological and culture background had more effect on selecting food comparing to psychological product experience alone (Stauffer, 1998). In recent years, there was a growing amount of people in the U.S. considered themselves as connoisseur of chocolate (Afoakwa, 2010). From the case, it seemed that the group of 25-34 and 55+ aged people had the most consumption on chocolate and the sales of chocolate on female were more than males’ in the U.S. chocolate confectionery. Mentioning to the psychological impact, Hershey once identified 6
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psychologies in consumer buying behavior in chocolate confectionery in U.S. such as loyal indulger, confection loving moderators, etc. Morgan proposed that consumers’ buying motivation can be reflected by psychologies segmentation (Barton, 2012-2014). For...

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