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Nestle Corp.

Nestle Corp. Brent Hanson Justin Chen Lance Rambousek Randee Birkeland. History. Founded in Vevey , Switzerland by Henri Nestle Combination of two companies Popular during WWI and WWII. Industry Analysis. Brief for candy industry Health Issues Challenges Future Trends.

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Nestle Corp.

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  1. Nestle Corp. Brent Hanson Justin Chen Lance Rambousek RandeeBirkeland

  2. History • Founded in Vevey, Switzerland by Henri Nestle • Combination of two companies • Popular during WWI and WWII

  3. Industry Analysis • Brief for candy industry • Health Issues • Challenges • Future Trends

  4. Definition and History • Definition of candy industry • It’s a part of snack industry and belongs to food industry. • History of candy industry - Can be dated back to mid 1800’s.

  5. Health Issues • As a part of food industry, Candy industry is also facing health issues mainly as followings: • - Tooth Decay • - Obesity

  6. Challenges • Substitutes to candy in snacks risk the profit of candy industry. • - Chips and crisp • - Biscuits and cookies • - Popcorn

  7. Future Trends • -Improved technology • -High profit • -Fierce competition in market

  8. Global Analysis • Nestle and Ethiopian Government • Nestle and Infant Formula • Nestle and Kit Kat Kit-Kat Commercial

  9. Company AnalysisSTRENGTHS • Strong brand name recognition some of the most recognized brands in the candy and chocolate industry: -Nestle Crunch -Pixy Stix -Wonka Products -Butterfinger -Baby Ruth

  10. STRENGTHS Cont. • Internationalization throughout the industry • Very recognizable in nearly every country • Chocolate and Candy are popular worldwide • Very low operating costs • Allows Nestle to undercut pricing stategies of competitors

  11. WEAKNESSES • Candy division is small portion of company revenue----only 11% of annual sales---Nestlé's revenues • Company interests are more targeted toward other industries, not candy • Dependence on Foreign production -many Nestle products are made overseas for low costs

  12. OPPORTUNITIES • Healthier approach to candy Countries including U.S. are becoming more health conscious • Strong opportunity to join bubble gum market

  13. THREATS • Competitors • U.S. market slump • Foreign Labor • Tainted ingredients (Melamine)

  14. Competitor Analysis

  15. Hershey’s Company • Largest North American candy company • Headquartered in Hershey, Pennsylvania • Largest chocolate factory in the world • Twizzler’s, Reese’s, Milk Duds, Jolly Ranchers • Produces Kit Kat for Nestle

  16. Mars Incorporated • One of the largest private owned companies in the United States • Headquartered in Hackettstown, New Jersey • International Headquarters is Brussels, Belgium • Skittles, Starburst, M&M’s, Snickers • Recently purchased Wrigley Jr. Company

  17. Pearson’s Candy Company • St. Paul, Minnesota headquarters • Salted Nut Roll, Mint Patty, Nut Goodie • Very centralized – 80% of revenue from Salted Nut Roll and Mint Patty • Several ownership changes

  18. Cadbury plc • Worlds largest candy company • Based in London, England • Cadbury Cream Eggs, Trident Gum, and Halls cough drops • 60 countries, 50,000 employees • Sold United States subdivision to Hershey’s

  19. Recommendations • Short Term • Find more efficient and labor friendly production practices • Create even more low cost products to match the budgets of homes. • Produce environmentally friendly packages

  20. Recommendations Cont. • Long Term • New product lines • Health? • Expansion into untapped markets • Combine candy segment with another competitor

  21. Conclusion Nestle is one of the top producers of candy in the world. They share just a small share in the global market as well as just 11% of their own companies revenue, but their ability to transition into foreign markets and produce top brands lets them compete with all other companies worldwide.

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