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TheinternationalroadtoChinafor

NestleEnvironmentEntrymodedecisionLifecircleIntroduction

BackgroundDistributionandpromotionBackground

Nestle,(HenriNestle)createdin1867andheadquarteredinVevey,LakeGeneva,Switzerland(Vevey)Nestleisa138-year-oldcompanyoriginatedinSwitzerlandIn2005,Nestlehasmorethan500factoriesworldwide,25millionemployeesandannualsalesofupto91billionSwissfrancs.DIVISIONSOFTHECOMPANY

1BabyFoods

2BreakfastCereals

3Chocolate&Confectionery

4Coffee

5Dairyproducts

6Drinks

7IceCream

8IntheKitchen

9NestléProfessional

10Nutrition&Health

11Petcaremainproducts:1:Nescafe1Introducingfreeze-driedsolublecoffeewiththelaunchofGoldBlend2Sustainablepackaging:Findingtherightmaterials.3Ateamworkwithsustainableagriculture2:DairyProductsTherearemanyessentialnutrientsintheNestlemilkproductsprocessingtechnology

EnvironmentEnvironmentPESTAnalysis:Ascanoftheexternalmacro-environmentinwhichthefirmoperatescanbeexpressedintermsofthefollowingfactors:Political/Economic/Social/Technological.(1)PoliticalanalysisChina'stoplegislatureapprovedtheFoodSafetyLaw.In2001Shanghainestleresearchcenterwasfounded.PreconditonsandRisk

Preconditon:China'sopeninguppolicywassettled.Risk:ThegovernentofChinatakesactiontoproctectnationalindustry.(2)Economicanalysis1、Acertainlevelofpurchasingpowerisdirectlyaffecttheeconomicenvironmentformarketingactivities.2、China’highpurchasingpowerprovidesabroadmarketspaceforNestletointroduceamoresecure,high-qualitydairyproducts.(opportunity)3、Threat:(1)ThreatofNewEntrants:1)multinationalbrands2)domesticcoffeebeansuppliers(2)AvailabilityofSubstitutes(3)Socialanalysis1、ChanginglifestylesandgrowingurbanizationinlargercitiesinChinahavebroughtinwideracceptanceofnewerproductsandthepursuitofhigherlivingstandards.2、Nestlecompanycouldmeetpeople'sdemandforit.ThisprovidesthebasisforNestletoexpandmarketinChina(opportunity).

3、Threat:DuetotheinfluenceofChineseteadrinkingcustoms,someChinesepeoplestilladvocatetodrinkthetraditionalhotdrink-----tea.(4)Technologyanalysis1.Withthedevelopmentofscienceandtechnology,moreandmoreChinesepeoplehaveahighdemandfortheirdairyproducts.2、ThePRCgovernmentstronglysupportsthedevelopmentofe-commerceintheretailsector.3、NestlehastwoR&DcentersinChina,andfullyguaranteetheproductqualityandsafetyandinnovation.Soitoffersaninexhaustiblemotiveforce.(opportunity)4、Chinahasrapidlydevelopedinrecentyears,especiallyinthefieldsoftechnologyandinnovation,whichhavefarmorethanmanycountries.Therefore,manyhigh-techdomesticenterprisesareemerging.Threat:ThereforethiscausesagreatthreattotheNestlecompanyintechnology.MarketEntryMode

Internalfactors1.Firmsize2.Control3.Internationalexperience4.Productcomplexity5.ProductdifferentiationadvantageWhydoesNestlechoosethismode?Externalfactors1.Countryrisk/demanduncertainty2.Marketsizeandgrowth3.Directandindirecttradebarriers4.IntensityofcompetitionAstoNestle1.Large-size2.Diversification3.Internationalexperience4.Goodquality,innovationandgooddesignofadvertisement5.Chinesegovernment'ssupport6.LargedemandinChinaExportModeDirectexportingminimalrisksandinvestmenttoaspecificcauseacquiringexistsaleschannelsinanunfamiliarmarketHowever……h(huán)ardtocontrol,farfromthetargetmarket,contractscanbetroublesome,andcurrencyrisksuselocalmaterialsandsellinthelocalmarketIn1908,setupsalesagentinShanghaiIntermediateEntryModeLicensingAsellerallowsitstechnology,trademarks,companyname,design,processes,orintellectualpropertytobeusedbyabuyerIntheearly80s,begintonegotiatewithChinesegovernmentaboutinvestingtobuildfactoryinChina,chansferitstechnologytoChinaIntermediateEntryModeJointventuresharerisks,costs,andmanagementwithapartnerinaforeigncountrySince1987,cooperatewithChinesegovernmentIn1990,setupthefirstNestlejointventure—ShuangchengNestlelimited(雙城雀巢有限公司)In2000,cooperatewithTaitaileGroup(太太樂(lè)集團(tuán))andhave80%shareholdingIntermediateEntryModeJointventureIn2001,signajointventureagreementwithHaojiGroup(豪吉集團(tuán)),andhave60%shareholdingNow,NestletakesupalargemarketinChina.EntryModeDecisionTosumupitsEntryModeDecisionlaysasolidfoundationonitssuccessfullymarketinginChina.Consumerproducts:convenienceproductsBlackcoffeeInstantcoffeeThesourceofrawmaterialsinChinaNescafeinChinaTop3salesvolumeinChina(2010)NescafeMaxwellhouseCafeMocha

ThetasteThepackageTheprice“Goodtothelastdrop”BrandimageThetasteThepackageTheTasteisgreatThePopularityVariousstrategiesofproductProductinventionLifecircleThematuritystageTheproducthadachievedacceptancebymostpotentialbuyers.Competitorsbegintoreact.Theymarketdownprices,increasetheadvertisingandsalespromotion,andtrytofindbettervisionsoftheproducts.Ahighmarketrate.Itpossesstrongchallengestomarketingmanagements.During1998—2009,thetotalmarketsalesofcoffeewasincreasingbyarateof90%.In2005,Nestle’s

annual

salesinChiareach10.2billionRMB,submittaxpaymentforaboutonebillion.Pricing雀巢公司餐飲部產(chǎn)品價(jià)目表Nestle

Foodservices

Price

List產(chǎn)品編號(hào)產(chǎn)品名稱產(chǎn)地規(guī)格單價(jià)(元)1959雀巢1+2咖啡(袋裝)東莞700g551934雀巢1+2咖啡(小袋裝)東莞100*13g952116雀巢純咖啡(袋裝)東莞500g704154雀巢精選朱古力粉上海700g261907奇巧巧克力(迷你裝)天津11*50塊303096雀巢經(jīng)典巧克力天津800g301971雀巢巧克力威化天津48*20g33DistributionstrategyThebusinessmarketingchannelcanbethat:MAgentDistributorBDistributionistheprocessthatgoodsaredistributedfrommanufacturertotheenduser.AstoNestle,itchoosesanindirectdistributionchannel.NestlecompanySalesbranches,subsidiariesRetailerscustomersInChina:Thechannelstrategiescanbeintensivedistribution.DistributionstrategyShuangchengnestleLtd.TianjinnestlemilkcompanyQingdaonestlemilkcompanyDongwannestleLtd.TaiwannestleLtd.

PromotionStrategy1.SP(SalesPromotion)

Salespromotionisshort-termincentivestoencouragethepurchaseorsaleofaproduct.Itcanhelpshort-termsales.

PromotionStrategyPR(PublicRelation)

In2009,Nestlefirmlaunchedthe"studentnutritionalhealtheducationprojects”inHuining,Gansu.Thethemeis“Concernaboutthehealthandthefuture”.PromotionStrategyPromotionStrategy

AdsIntheearly1980s,thefirstsloganis“Thetasteisgreat“,topersuadeChinesepeopletotastetheirproductsofwestern"tea".Inspiteoftheadshaschangedmanytimes,thissloganisstillthesameformanyyears.Itwasalmostansuccessfulexampleforadvertisersatthattime.ConclusionThistime,throughacarefulinvestigationofNestle,WelearnthatNestlehasalreadyagreatinfluenceinchinaandeventheworld.Itisatrustworthybrand.Talkedaboutcoffee,itmustbeNestle.Inthenearfuture,theadvertisingslogan“Thetasteisgreat"willberememberedbymoreandmorepeople.ThankYou!謝謝1月-2514:15:5914:1514:151月-251月-2514:15

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