1. Nestle Business Research Paper
Learning Team B
Dana Harvell, Jamie Stevens, Tiffanie Self
RES/351
August 15, 2013
Alan Preizer
Team B will be discussing Nestle, the Worlds leading Food Company with
headquarters in Switzerland. With products being sold in over 500 factories in 86
countries. Our topic will be marketing with the dilema of Nestle loosing Market
Shares based on competition. Nestlé is the world's biggest food and beverage
company, produces a wide range of products. Nestle mission is to provide the best
foods to people throughout the world with their unique expirence of anticipating
consumers needs and creating solutions ("Nestle Co., Market Research ", 2012). ).
Nestle defines marketing as a social and managerial process where individuals and
groups obtain good food and life through creating and exchanging products and value.
Nestle objective is to manufacture and market company products to create value that
can be used over a long term for shareholders, employees, consumers and business
partners("Nestle Co., Market Research ", 2012). We will include research questions for
Nestle, the scope, what the hypothesis of our research is, and what variables are to be
considered with Nestle. Along with what are Nestle ethical considerations must be

2. taken into account.
Our team has developed two research questions. The first question How does
Nestle maintain a top slot in marketing while satisfying fair trade practice? Two, How
can Nestle stay committed to their high quality product production and improve fair
trade practices. These questions will help clarify the questions that Nestle will need to
consider to remain in their current spot in the marketing and Trade world today.
Possible research hypothesis are; to improve fair trade practice Nestle can create
opportunity for financially disadvantaged producers and have an action plan to carry out
the hypothesis. Nestle will be accountable to consumers when finding inappropriate
behavior. Nestle will provide a fair price approved by producers and consumers. Nestle
will ensure no child labor. Nestle will provide safe and ethically fair working conditions
for all of their employees. As a flourishing company Nestle will always keep room for
growth as a priority. Nestle will be transparent and provide consumers with valuable
information about “all things Nestle” including Products and manufacturing of products
with honest advantage and marketing. Nestle will respect the environment by recycling
and using recycled products. Providing biodegradable materials for packaging and have
the least negative overall impact on the environment.
A market led company like Nestlé is continually monitoring customer attitudes and
requirements through market research. This research takes two main forms, qualitative
research, this involves setting up small focus groups of consumers who express their
ideas and opinions about their needs and views on different products("Nestle Co.,
Market Research ", 2012). Quantitative research, whereas qualitative research involves
only relatively few people, quantitative research involves much bigger numbers. For

3. example, professional market researchers may interview thousands of people through
postal or telephone interviewing. Nestle scope is to examine and identify key
information and issues about "Nestle USA, Inc." for business intelligence
requirements("Scope Nestle USA Inc.,", April 2013). To studies and presents the
company's strengths, weaknesses, opportunities (growth potential) and threats
(competition). Strategic and operational business information is objectively
reported("Scope Nestle USA Inc.,", April 2013). And Nestle profile also contains
information on business operations, company history, major products and services, key
employees, locations and subsidiaries("Scope Nestle USA Inc.,", April 2013).
There are four variables that must be considered in Nestle called the four P's.
Product, Price, Place and Promotion.In Nestle the product stands for goods and services
that the company offers to target a market. The price, the amount of money charged for a
product or service or sums of the values that consumers exchange for the benefit of
having or using the product. The placing stands for the company's activity that make the
product available to target the consumer("Scope Nestle USA Inc.,", April 2013). Nestle
uses the direct distribution channel to supply products to retailers. The last variable would
be promotion, producing a quality product, pricing and making it available for the
consumer. Assuring that customer satisfaction, demands for personal and nonpersonal
communication with the customer to build a relationship, by giving out free gifts,
products depending on the season attracts more customers. To be able to explore areas
that are unexposed to the people to better keep shares and stock up. Nestlé is one of the
world's leading food companies and intends to remain so. Its commitment to high quality
market research ensures that it remains fully aware of changes in consumer behavior and

4. consumer tastes. Its excellent product research and development network ensures that it is
well placed to meet the challenge of changes in consumer expectations("Scope Nestle
USA Inc.,", April 2013).
Using Ethical Consideration Cconsidering that Nestlé's research and development is
highly equipped in handling challenges and changes in consumers' expectations, applying ethical
considerations is important as well. In order for Nestle to occupy a top slot in the market, they
must also consider ethical standards in order to improve their market share. Looking at Nestlé's
SWOT analysis of 2013, they have many strengths, but one of their weaknesses is the inability to
provide consistent quality in food products while receiving criticism from fair trade for providing
little room for other producers in the business (Strategic Management Insight, 2013). Using only
fair trade produce is important because fair trade helps to honor producers, communities,
consumers, and the environment. In order to settle the controversy and criticism that Nestle is
receiving from Fair trade is to use ethical considerations. Finding a technique to consider the
feelings of Fair Trade and other producers, without losing market share is the key. Issuing
surveys, not only to consumers, but to Fair trade and other producers may help in providing
solutions to provide room for other producers in business. Feedback is an ethical technique
because it considers the feelings of other consumers and producers, worldwide. Using this
feedback may help in providing solutions for Nestle to remain in a top slot, while making room
for others and satisfying Fair Trade production.
` In conclusion Nestle, being the world's leading food company with 500 factories
in 86 countries is tough to compete with. Competition from other producers criticize
Nestle for remaining on top and providing little from for other small producers. Because
of this, Nestle is catching much criticism from Fair Trade. Satisfying Fair Trade and
consumers is the key in remaining in a top slot in marketing. The point in our research

5. was to provide solutions to our questions. One, how does Nestle maintain a top slot in
marketing while satisfying Fair Trade production? Two, How can Nestle stay committed
to their high quality product production and improve Fair Trade practices? Our
hypothesis was to improve Fair Trade practices by creating opportunity for financially
disadvantaged producers and have an action plan to carry out. Therefore, Nestle will be
accountable for inappropriate behavior, provide fair prices approved by producers and
consumers, provide safe and fair working conditions for all employees and ensure no
child labor. Nestle will ensure environmental sustainability by recycling and they will use
ethical tactics by providing Nestle information for all consumers. Our qualitative
research has provided possible solutions for Nestle to provide insight to the feeling of
other consumers, producers, and Fair Trade in order to create opportunity for the
financially disadvantaged producers by using extensive surveys. Using this technique
also helps to ethically consider the feeling of others in order to maintain their great
reputation and maintain a top slot in market production.
Reference
Nestle Co., Market Research . (2012). Retrieved from
http://www.justfoods.com/marketresearch/nestle
Scope Nestle USA Inc.,. (April 2013). Retrieved from http://www.nestlescope.com

6. Strategic Management Insight. (2013). Retrieved from
http://www.strategicmanagementinsight.com/swot-analyses/nestle-swot-analysis.html
) Nestle scope is to examine and identifies key information and issues about "Nestle
USA, Inc." for business intelligence requirements("Scope Nestle Usa Inc.,", April
2013). To studies and presents the company's strengths, weaknesses, opportunities
(growth potential) and threats (competition). Strategic and operational business
information is objectively reported("Scope Nestle Usa Inc.,", April 2013). And Nestle
profile also contains information on business operations, company history, major
products and services, key employees, locations and subsidiaries("Scope Nestle Usa
Inc.,", April 2013).
There are four variables that must be considered in Nestle called the four P's.
Product, Price, Place and Promotion.In Nestle the product stands for goods and services
that the company offers to target a market. The price, the amount of money charged for a
product or service or sums of the values that consumers exchange for the benefit of
having or using the product. The placing stands for the company's activity that make the
product available to target the consumer("Scope Nestle Usa Inc.,", April 2013). Nestle
uses the direct distribution channelto supply products to retailers. The last variable would

7. be promotion, producing a quality product, pricing and making it available for the
consumer. Assuring that customer satisfaction, demands for personal and nonpersonal
communication with the customer to build a relationship, by giving out free gifts,
products depending on the season attracts more customers. To be able to explore areas
that are unexposed to the people to better keep shares and stock up. Nestlé is one of the
world's leading food companies and intends to remain so. Its commitment to high quality
market research ensures that it remains fully aware of changes in consumer behaviour
and consumer tastes. Its excellent product research and development network ensures that
it is well placed to meet the challenge of changes in consumer expectations("Scope
Nestle USA Inc.,", April 2013).
Reference
Nestle Co., Market Research . (2012). Retrieved from
http://www.justfoods.com/marketresearch/nestle
Scope Nestle USA Inc.,. (April 2013). Retrieved from http://www.nestlescope.com