When analyzing the macro environment of a product category, PEEST analysis is used to identify the five main forces that influence marketing decisions. The five forces of analysis are political-legal factors, ecological-physical factors, economic factors, socio-cultural factors, and technical factors..Pestle Analysis
Political: Nestle is a global company and in the food and beverage one of the most important factors to consider globalization. According to Jose Lopez, Nestle’s vice president of operations explained that the impact of globalization on Nestle is very different from what was originally expected. For example, when Nestle inevitably affects its products, it must face multi-layer regulations (Nestle 2008).
Economics: Food is a basic human need and therefore a necessity for survival. From an economic point of view, this means that the basic demand for food is high. Although food eating patterns may change, they vary from place to place. An example of Nestle is to open factories in different places, from packaging, pricing to taste, to cater to the local market.
Social cultural: Malaysian culture is undoubtedly a light food every once in a while, Malaysian young people like to have good nutritious food, so Nestle has a lot of room for development at there. The average age of culture, religion and population often determines or at least affects the pattern of food consumption.
Technological: Malaysia is technically talented in terms of technical availability and technical staff with highly skilled and well-educated human resources in Malaysia. For Nestle and the products offered by the company, these factors will not have much impact in general.
Supplier: Suppliers provide raw materials, unfinished products and labor to the company to produce products and services. The effectiveness of the supplier determines the efficiency of the company in producing goods. Nestle maintains high quality efficiency in dealing with the quality and quantity of two different supplies (For example, labor supply and material supply), so despite the company’s business trends, the company can operate smoothly for more than 100 years. Global market.
Marketing Intermediaries: The company’s market intermediaries help promote, sell and distribute their products to end customers. The company’s logistics network determines the medium in which the finished product is delivered to the end customer on time and safely. The insurance company guarantees the company’s property and goods from various operations and the risk of buying and selling products. With the different strengths of working with all marketing agencies, Nestle helps deliver the best pure food to our valued customers around the world.
Customer: The retail store and grocery store will provide the nestle product to the customer. The retail and the grocery store will use the reasonable price and reasonable profit to earn. The ultimate customer of Nestle is the consumer, who consumes a wide variety of products. The company have a good image in the customer base.
Marketing: Nestlé’s basic marketing strategy is to develop a brand for each product, rather than focusing on creating brand value for the entire company, thus never allowing the product to kill each other and gain multiple brand values for the entire company.