Competitive Positioning for Nestle free essay sample

f all its products. Nestle India Ltd was incorporated in the year 1956. The product NESTLE EVERYDAY GHEE is a milk product which is essential as a food ingredient utilised for preparing healthy food, used orally or with other supplements. This is an essential dietary item in the Asia continent. This product is also a value based offering in the dietary regime where privileged individuals or middle class is heavily consuming this product nowadays. The product is therefore most pure and hygienically packed. Market analysis Market sizeRs 5000 crores industry Competitors Amul, Dalda, and Mother Dairy Growth25% of annual ghee demand is being met. The overall dairy sector is expected to grow by 14% while the ghee industry is to set to increase demand by 8% annually as per consumption. Consumption for ghee is 32,000t ghee annual. India is today the largest milk producing country in the world (127 mn tonnes). 35% of average all milk produced is ghee. We will write a custom essay sample on Competitive Positioning for Nestle or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page SWOT SWOT for Nestle Everyday Ghee Strength Nestle is big in terms of overall sales and revenue The Ghee is dynamically packaged with neat and cleanliness Ghee is of standard quality assurance It is granular and unlike low quality grade ghee of competitors Branding is awesome Supply from warehouse is as demand in all areas Positioning is relevant and strong consciousness with simple Weaknesses The ghee can be easily substituted by competitors from a longer store value The ghee has less worth from lower recalls and ratings Segment market consumes more by using other ghee variants high substitution Threat Amul and Dairy Milk branding is more original Competitor analysis – brand recognition, value proposition Market for ghee increasing with demand allowing low grade ghee sales New supply relation is technologically weaker than other dairy products Market development shows low price elasticity for product Opportunity from good quality products Simple yet reliable branding More effective counter sales Rural market untapped Urban market segment has shown good income elasticity which is unnoticed PEST Political The ghee is potentially wrapped with more value allowing an international global brand to be welcome in consumer lifestyle Nutrition and quality with good political standing for organization Social Product image is of natural ingredients People connect with the ghee as an owned local variety Value add of ghee is unlike others – quality, cost, storage worth The firm has taken up the social causes like environment and employee relations seriously which allows firm product to have better social connect Economic The economic environment aspects like deepening learning curve, changing demographics, more individuals in high income bracket stress for product to achieve brand awareness Less customer propensity to consume from rural areas while urban consumer buy propensity is largely affected from quality, competitors, supply and prices. Price rise has gained more effects on the brand popularity Technological Packaging technology is effective Technology used in preparing ghee is superior , also leads to longer lasting quality in ghee Ansoff model Relative market share is low Market growth rate is high â€Å"Question mark â€Å" Mckinsey model 7S Structure Division branch and non centrally controlled with offices in four metro cities. Systems SCM, intranet and good IT style Management style – decentralised, flat style of managing operations. staff 352,000 and more staff and employees shared values good work, steady attendance, commitment Skills rigorous processes, controls and high quality standards strategy subsidiary operations, branding Customer traits with segmentation Customer profile of NESTLE GHEE Have high incomes Go for quality Desire packaging, storage value Expect better branding Market Segmentation Typical Urban class (60% the other part is rural consumers of nestle ghee) Both Upper and Middle income classes Go for Quality purchases (almost 90% of consumers ) Inflation or price rise is accepted as a positive move (only 10-30% of urban consumers) Positioning strategy The market product NESTLE EVERYDAY GHEE is exceptionally well endowed for being a worthwhile purchase, easy to get, with good storage quality. Competition has effective net worth , acceptable quality. NESTLE EVERYDAY GHEE has competitive advantage in positioning as technologically superior in both packaging and product quality , storage. The current positioning strategy has competitive benefits in terms of better brand, peer recognition in resales, high price change (140 to near 190 for 1 ltr pack). Conclusion NESTLE EVERYDAY GHEE is probably the brand to purchase within product category in market. The dairy products market can increase supply to meet growing demands. There is high profit to gain. Overall, the competitive advantage shows a lot of brand worth, quality of product with fewer margins for error. The strategic input from competitive status is weak which shows major changes expected through brand recall, branding market sentiment with product supplier relations.