Table of Contents
History of
Controversies and Scandals
Rising Costs and
Shrinking Margins
Research impact on
Stakeholders
Evaluation and Analysis
with Secondary Data
Table of Figures
Figure 1: Nestle Boycott campaign Poster at Hay
festiva 2002
Figure 2: Nestle increasing prices after slowing for a while due to
inflation (Reuters)
Figure 3: Article by "The Guardian" claiming poor labor
practices by Nestle
Figure 4: Waste generated by Nestle in metric tons (statista)
Figure 5: Graph showing Nestle has a large carbon footprint (statista)
Figure 6: Consumer behavior to sustainability (Bain & Co)
Executive Summary
Nestle is undoubtedly a global leader in the dynamic and evolving
food and beverage industry. This report investigates how Nestle can adapt its
strategies and operations to make sure it achieve a long term financial
success, better brand recognition and reputation, and long-term sustainability.
For this purpose, the secondary data is analyzed from various sources. The
analysis of secondary data revealed that there are several issues that need
adaptation. Consumers are increasingly becoming health conscious and
sustainability that disrupts the traditional product development of Nestle. They
are preferring healthier options with lower sugar and fat content. Also a shift
is observed towards plant-based and organic alternatives that further strain
the supply chain for Nestle. Ethical sourcing practices are also under heightened
scrutiny. With past controversies, the brand reputation is at stake in regard
to these ethical sourcing and operational practices. However, data suggests
that there is a strong positive correlation between Environmental, Social, and
Governance (ESG) practices and financial performance in long-term. This report
critically evaluates these trends under the light of different sources and
contrasting views, also what impact they have on Nestlé. The findings suggest that there is an urgent
need for adaptation. Nestle is a big
conglomerate hence making a small change can take significant resources and
efforts. Being a consultant it is advised to adopt a multi-pronged approach
that covers all aspects including investments in health-conscious product development,
sustainable sourcing practices, and robust ESG commitments. Transparency and
open communication with stakeholders is a key to gain confidence in the circle
and build trust in brand. It also helps in enhancing brand reputation. The
critical evaluation further reveal that ethical sourcing and labor practices
throughout supply chain is of utmost importance as it can lead to reputational
damage and boycotts. Nestle need to demonstrate a strong and proven commitment
towards ethical sourcing throughout its supply chain. Also, the investors are
more inclined to companies that are committed to ESG. The recommendations
outlined in this report include establishing dedicated team to keep track of
sustainable practices, investing in sustainable packaging, partnering with NGOs
and develop customer centric products. These are designed to benefit all
internal and external stakeholders across the value chain. Consumers will
benefit from healthier product options with an assurance of ethical sourcing
practices. Investors that are seeking companies giving good return of
investment (ROI) and also committed to sustainability will find Nestlé an
attractive proposition. By minimizing waste, adopting recyclable packaging, and
promoting resource efficiency, the recommendations can also be beneficial for environmental
well-being.
Introduction
The current business infrastructure of Nestle is facing number of
pressing issues. These including, consumer preferences, increased competition
from smaller, more agile players, ethical business practices, data privacy and
protecting, and growing concerns about
the company's environmental and social impact. The consumer market is becoming
more health conscious so the demand of sustainable and ethical products is
increasing that put pressure on Nestle to adapt its product portfolio and
manufacturing processes accordingly. Furthermore, the rise of e-commerce and
the proliferation of niche brands have disrupted distribution channels
operating traditionally, forcing Nestlé to revamp its channels, and
go-to-market strategies.
This report is a detailed examination of Nestlé’s challenges,
problems and its impact from a consultant's perspective. Drawing on secondary
data sources, the report will analyze the current position of Nestle and what
factors are contributing to shape this industry by using secondary data. The
report will also analyze the impact of these issues on different key stakeholders.
This report will conclude with well-justified recommendations that Nestle can
implement to address the identified issues. Also the recommendations can be
helpful to capitalized opportunities to enhance its long term sustainability
and competitiveness.
Challenges
History of Controversies and Scandals
Nestle has a long standing success but despite that it faces a
complex web of challenges throughout its existence. First in 1970s, it was
accused of doing false marketing and encouraging mothers to use formula milk
instead of breastfeeding. This led to a nationwide boycott in Europe and United
States (Neslen, 2018). It late 2008, six infants died in Hong Kong due to
kidney failure. The government found melamine in the Nestle milk product that
was Chinese made which resulted in this tragic loss (Gossner et al., 2009).
Then in June 2009, E. coli O157:H7 was outbreaked and this too linked with
Nestle as some traces were found in cookie dough that was refrigerated by
Nestle (Neil et al., 2011). In 2000, Nestle was under hot waters when he
encourage World Water council to revert its statement about water usage from
“right” to “need”. Critics pointed that was because Nestle wanted to take
control of aquifers to increase water bottle profile (Bloomberg, 2017). Later
in India in 2015, it was found that Maggi noodles made by Nestle India has 17
times more than permitted amount of lead and also monosodium glutamate (Dey,
2015).
 |
| Figure 1: Nestle Boycott campaign Poster at Hay festiva 2002 |
It can be observed from the history of Nestle about the
continuation of problems that it encountered from time to time. These
challenges stem from the confluence of evolving consumer market priorities,
environmental concerns, and global economic climate that is marked by uncertainty.
Scrutinizing upon the history and current challenges there are some critical
issues Nestle need to address:
Health & Consumer Preferences
Nestlé’s diverse product portfolio heavily relies on its
traditional processed foods and sugary beverages. These traditional products
are increasingly going out of fashion due to modern demands from consumers. Health
conscious consumers now demand products that are perceived as natural, organic,
and with lower sugar content. A 2023 study by McKinsey & Company found that
72% of global consumers are seeking healthy and body benefitting options when purchasing
food and beverages (Kohli, 2023). Some of Nestle’s popular products also
contain high sugar content which is why Nestlé has faced criticism for
products, like cereals marketed towards children (foodnavigator.com, 2022).
Children’s health is something Nestle has previously faced criticism and
serious backlash for. Being a consultant this has led to calls for
reformulation and marketing changes, so the brand image and sales cannot be
further impacted.
The Sustainability Imperative
Sustainability is no longer optional or peripheral concern but the
core driver of businesses. Consumer market is growing increasingly
environmentally conscious. Companies having poor sustainability practices or
environmental policies risk losing market share and facing severe consumer
backlash (Robinson, 2022). Nestle has been criticized for its plastic packaging
and unsustainable sourcing practices. This is specific to the palm oil
production that leads to deforestation (Naik, 2020). A report by Greenpeace
highlighted Nestlé's "broken promises" regarding plastic pollution
(Morgan, 2019). This further emphasize the importance of sustainability for
Nestle and pose significant threat to Nestle’s brand reputation, and its
ability to attract consumers that are environment conscious.
Rising Costs and Shrinking Margins
“Threat of New Entrants” is something
integral with big companies. Global inflation further disrupt the prices and
supply chain. The ongoing war in Ukraine, and a Middle East crises involving
Palestine and Israel is putting pressure on Nestle’s margins. The cost of raw
materials and transportation is rising that is forcing companies to make tough
decisions about pricing and product availability. CNBC reported that Nestle has
already taken the hard step and announced a price hike in its product portfolio
in response to inflation (CNBC, 2023). A study by Kjell Erik Lommerud and Lars
Sørgard (2022) stated that The price sensitivity among consumers can weaken
demand and create a gap for new entrants that are hungry to get a piece of
market share (Lommerud and Sørgard, 2003). A 2021 Mintel report found that 42%
of consumers globally now prefer purchasing products from independent and
smaller brands that suits their values, in comparison to just 28% who prefer
larger, established brands. Such new, small, and agile brands can disrupt the
market with their flexible prices further making hard for brands like Nestle to
sustain.
 |
| Figure 2: Nestle increasing prices after slowing for a while due to inflation (Reuters) |
Labor Practices: Child Labor and Worker Rights
In its own blog on sustainability and Human rights, Nestle
acknowledge poor labor practices as a “salient issue” within its supply chain
especially in cocoa production. There has been reports that documented
instances of child labor on cocoa farms in West Africa that are key sources of
Nestle chocolate production. Concerns also exists around fair wages and working
conditions for labor (Clarke, 2015). Nestlé's "Living Wage" and
"Living Income" initiatives are launched to address these issues, but
challenges remain as many stakeholders are involved and effective
implementation needs to be ensured across diverse regions (Nestle, 2023).
 |
| Figure 3: Article by "The Guardian" claiming poor labor practices by Nestle |
Purpose of the Report
The primary purpose of this consultancy report is to provide Nestle
and its key stakeholders with detailed analysis of key challenges the company
is facing. Further it offer well-justified recommendations that can help
company to address these issues and capitalize on the opportunities it has. The
report examine the evolving consumer market, environmental concerns, and
economic uncertainties that overall shape the business environment for Nestle. The
issues in section 2 highlight the urgent need to address consumer preferences
for healthier and more sustainable products that directly influence consumer
buying decisions. Additionally, Ethical sourcing practices, environmental
impact, and labor rights pose a momentous threat to Nestlé's brand image and
market share. This report offer data-driven and objective assessment of company’s
current standing with the recommendations that can solidify company’s position.
Research impact on
Stakeholders
In conducting a thorough and effective consultancy report and proposing
successful recommendation it is important to first identify the key
stakeholders. Stakeholders are the people or groups who are impacted, or
influenced by a company’s, in this case Nestle, decisions and operations. The
following section will list down the Nestlé’s key stakeholders and analyze how
the report connects to their interests. Also it will evaluate the impact of
this report on each stakeholder group.
Internal Stakeholders
They are people who have direct relationship with company such as investors,
employers, owners (Fernando, 2024).
· Employees: Nestlé's has the workforce of 270,000 people worldwide, which
make them a critical internal stakeholder group. The recommendations on ethical
sourcing, sustainability practices, and brand reputation listed in this report could
impact employee morale and engagement positively. A committed company to
responsible practices can bring a sense of pride and purpose among its
employees. Furthermore, the report emphasize on addressing labor rights
concerns which make sure the employees get fair treatment and working
conditions throughout the supply chain for all employees.
· Management: Senior Management and leadership at Nestlé can benefit from the
report's analysis of challenges and recommendations to make decision-making.
The report provides insights into evolving consumer preferences, environmental
pressures, and best practices for ethical sourcing with the brief historical
consequences of ignoring such things in past. By understanding these trends,
management can develop strategies to avoid risks of falling into controversies
and maintain competitiveness.
External Stakeholders
They are people who are indirectly affected by company’s outcomes
and decisions. They can be suppliers, labor unions, government agencies,
customers etc.
· Consumers: Nestlé's primary external stakeholders are its consumers that are
spread across 188 countries. The report's emphasis on ethical sourcing,
sustainability, and healthier product options are basically revolves around
customers and directly addresses consumer concerns. Nestle can demonstrate a
commitment to these value that can earn him loyal customer base and good brand
reputation.
· Investors: Financial stakeholders make sure the brand have long-term
profitability and sustainability. The report address the previous controversies
Nestle was part of and the challenges that can increase the risk to brand such
as ethical sourcing controversies and environmental impact. A company that has
strong sustainability practices and a positive brand image can attract
potential investors and investment propositions.
· Suppliers and Distributors: Nestlé has a vast network of suppliers and distributors. The
report's recommendations regarding ethical sourcing and labor practices can
influence the suppliers to adopt fair labor and promote sustainability and
transparency across supply chain. Furthermore, the report encourages to focus
on sustainable practices with joint collaboration between Nestlé and its
suppliers so the overall carbon footprint of company can be minimized.
· Regulatory Bodies and NGOs: Regulatory bodies of government and non-governmental organizations
(NGOs) can have a huge impact on company’s policies. They make sure the
business is operating ethically and complies with environmental protection laws.
The report's focus on addressing these concerns hence it aligns with the
objectives of these stakeholders. By implementing the recommendations Nestlé
can show its commitment to responsible business practices which will keep it
safe from the risk of regulatory scrutiny or boycotts from NGOs.
· Local Communities: Nestlé's operations directly impact on local communities
especially from where the raw materials are sourced. The report can benefit
local communities as it focus on ethical sourcing and fair labor practices. It
will ensure fair wages, safe working conditions, and responsible environmental
management. Furthermore, the recommendations of labor well-being and sustainable
practices can encourage having healthy and disease free local communities by
protecting natural resources and ecosystems.
The challenges identified in this report and proposed
recommendations can help Nestle to address the underlying issues and strengthen
its relationships with all stakeholders. This will help the company to get a
loyal customer base, enhanced brand reputation, and improved finances.
Evaluation and Analysis with
Secondary Data
Secondary data plays an important role to provide a well-rounded evaluation
of Nestlé’s strategies regarding its business. The existing research already contains tons of
data, evaluations, and analysis that can be time and cost saving as a
consultant. Also by leveraging the existing industry’s data, research, and
reports, valuable insights into consumer trends, market dynamics, and the
broader business environment can be gained (Smith, 2018). As a consultant this
data empower us to critically assess the current position of Nestle and
identify areas that can be improved to achieve long term financial benefits,
sustainability, and success.
When we are talking about secondary data, we mean data that was
already collected and analyzed in order to serve other research purposes rather
than the purpose of current study. With respect to cost-effectiveness, time
efficiency, and abundance of information, secondary data analysis poses several
advantages (Cheng and Phillips, 2014). ). Analyst can make sense and translate
secondary data into useful knowledge, patterns, or confirm hypothesis by using
synthesizing and interpreting process (Wickham, 2019). Additionally, secondary
data analysis helps in undertaking longitudinal analysis and comparing data
sets in different situations which in turn steer the width and depth of the
research findings.
Here is the breakdown of secondary data to a robust evaluation and
analysis of Nestlé's strategies:
Cost-Effective and Efficient:
When conducting primary research like surveys or focus groups particularly in a
research when a giant corporation like Nestle is involved, it is mostly very
time consuming and costly. Secondary
data collection is significantly less time-consuming and resource-intensive in
comparison and also allow to incorporate broader range of data points for
analysis in a shorter timeframe.
Benchmarking and Trend Analysis:
Secondary data provides a benchmark to compare performance of selected company,
Nestle in this case, against industry trends and competitor strategies. The
analysis of consumer reports, market research studies, and financial data can
help in identifying the on-going health and fitness trends, consumer behavior,
government policies, and purchasing behavior. For instance, the war conditions
in Ukraine disrupted the supply chain, the rising inflation is making people
price sensitive and budget conscious, Unilever is adopting strict pricing
strategy to stay ahead of competition etc. these things can be known by doing
market research.
Identifying Risks and Opportunities: Business is 90% how well you capitalize the opportunity, and
identifying risks is one milestone to that. By analyzing secondary data on
factors like economic forecasts, regulatory changes, and technological
advancements Nestle can identify the major threats and opportunities it can
have. This identification of business environment helps in making proactive
strategies and adaptation to changing market. Also, it make sure the company
remains competitive in the global market where brands are always ready to
replace competitors.
Supporting Recommendations: Data-driven understandings
gathered from secondary sources helps in building a strong foundation for
developing actionable recommendations for Nestlé. Arguments are strengthened by
quantifiable evidences such as for change and helps prioritize strategic
decisions.
Collection of Secondary Data
For this report, I plan to start analyzing secondary data that can
help to learn the roots and effects of these issues as well as their
implications with respect to Nestle’s business strategy. Ultimately, a
secondary data analysis aids in gaining a more in-depth comprehension of the
multifactorial constraints.
Sources of Secondary Data
Utilized
1. Academic
Journals:
Academic journals are a source of publication of peer-review papers
and studies of the experts working in different areas of subjects. That is
because these outlets provide critical information and evidence on issues that
Nestle is dealing with. For instance, Thomason Rajan (Christ Academy Institute
of Advanced Studies) published a paper in 2018 and discuss the Nestle’s
response to the temporary ban on Maggi noodles by Indian food regulator. This
paper tells us about the strategy Nestle adapted for example engaging with
customers, conducting independent tests, liaising with regulators, and
improving raw materials and production processes (Rajan, 2018). Another study
by Marko Markovic (2018) provide strategic analysis on Nestle and focus on its
responses to challenges in emerging new markets. Also it emphasizes the need
for MNCs to adapt their strategies as new competition is fearsome and
regulatory issues are hard to deal with.
This can give an idea how helpful academic journals can be in
research and analysis.
2. Industry
Reports:
Industries’ reports represent market research papers and industry
analysts offer collective studies of the market, the competitive landscape and
the sector. These reports on the data and the information about the e-commerce
industry, consumer behavior and the upcoming opportunities to the emerging
markets is very valuable. For this consultancy report the research reports from
firms such as Mintel and McKinsey & Company is accessed. They offer
accepted and detailed analyses of the global food and beverage industry,
consumer preferences, and the disruptive impact of e-commerce on traditional
businesses. Also the report review Nestle’s own sustainability reports,
financial disclosures, and press releases so a better case can be build and deeper
understandings about company's strategic priorities, operational challenges,
and stakeholder engagement can be gained.
3. Government
Publications:
Various government publications are considered sources of
information that indicate the regulatory setting, legal mechanisms and the role
of the government in Nestle's activities. These sources consist of the postings
about the regulators supervision, antitrust investigations, and compliance
rules (libguides, no date)
4. Company
Filings and Reports:
Nestle, itself, releases its own reports and filings, such as its
annual reports, financial statements, and sustainability disclosures, where the
information on the corporation's performance is presented, its strategies as
well as corporate governance practices. These sources deliver information on
metrics including financial ones, operational activities and strategic
intentions as Nestle.com reported about the 10 salient issues it is facing on
its own website (Nestle, 2023).
5. News
Articles and Media Coverage:
Amazing news outlets, media coverage from prime sources make it
possible to have quick notifications, reports, comments, and studies on current
events, business progress, and major scandals involving Nestle. These sources
the facts from the angle of public attitude, stakeholders involved and issues
that the company is facing.
Evaluation and Analysis
Based on the secondary data, the core question of this report are
analyzed and answered such as: How can Nestlé adapt its strategies and
operations so that it can achieve long-term sustainability, enhance brand
reputation, and achieve continued financial success despite the market
challenges?
Consumer Preferences: Health and Sustainability
Consumer preferences are changing as people are becoming more
health conscious, and with the health and sustainability emerging as key
drivers of purchasing decisions the companies are under pressure to adapt their
business strategies.
Here is the analysis of relevant data
Health-Conscious Choices: A 2023 global
consumer survey by McKinsey & Company found that 72% of respondents give
priority to food and beverages that benefit their health and body. This is
further corroborated by a 2022 NielsenIQ report that indicate a 23% growth in U.S.
alone in the sales of plant-based foods (The pulse of plant-based foods, 2022).
Nestle reliance on ingredients like palm oil faced serious backlash as it is
linked with environmental degradation. This forced the company to commit to
sourcing 100% of its palm oil from responsible and sustainable sources.
However, a study by the International Food Policy Research Institute (IFPRI) in
2020 suggests that affordability is still a primary factor for low-income
consumers, who may prioritize value of money over health benefits when making a
purchase (Headey et al., 2023).
Analysis: This data highlight the clear trend
towards consumer demand for healthy food options. Nestle being a global company
is undoubtedly impacted by these changing shifts. To meet the demand of health
conscious people Nestle needs to expand its portfolio. It should:
· Invest in research and development (R&D) to create healthier
product lines that contains lower sugar content and whole ingredients that are healthier.
· It can also expand its offerings in plant-based alternatives and
organic food. Also, Nestle need to focus on reformulating existing products to
reduce sugar, salt, and unhealthy fats.
· To build further trust an explicit calorie counts and ingredient
lists that are in line with consumer expectations can help brand to achieve
greater transparency and authenticity.
Sustainability Concerns: Consumer market
loves environment and favor product that benefit environment. A 2021 Mintel
report shown that 42% of consumers globally prefer buying from brands that are
sustainable (Mintel, 2021). Furthermore, a 2022 study by researchers at
Stanford University found an interesting link between sustainability practices
by a brand and consumer behavior towards it. They found that consumers are willing
to pay a premium for products associated with sustainable practices (Chen et
al., 2022).
 |
| Figure 4: Waste generated by Nestle in metric tons (statista) |
Analysis: Nestle can
address the growing concerns by
Implementing sustainable sourcing throughout its supply chain to minimize
its overall carbon footprint.
Develop eco-friendly packaging solution to reduce waste and promote
recyclable products. Nestle is already working in this regard, as report by
Nestle’s own website reveal that 10.5% reduction of virgin plastic in packaging
is achieved by Nestle in 2022. Also 83.5% of Nestle’s plastic packaging is
designed for recycle (News, 2024; What is Nestlé doing to tackle plastic
packaging waste?, no date).
Still it has a long way to go to achieve complete sustainability
throughout its supply chain.
 |
| Figure 5: Graph showing Nestle has a large carbon footprint (statista) |
Ethical Sourcing and Brand Reputation: Ethical Sourcing is no longer optional but a necessity for
organizations. It impact brand reputation to utmost level. Following data shed
light on this matter:
· Heightened Scrutiny: A 2017 report by Oxfam International revealed that 70% of
consumers globally are concerned about the operating conditions in garment
factories (Oxfam, 2017). Although, Nestlé operates in the food and beverage
industry, but this data highlights how the public awareness is growing regarding
ethical sourcing practices across different sectors. However, a report by The
Center for Corporate Accountability (2019) suggests that companies
overemphasize self-reported data on ethical sourcing that can downplay
independent verification need (Sethi, Martell and Demir, 2015). As already
discussed in History of controversies, Nestlé's past controversies regarding child
labor in its cocoa supply chain which serve as a stark reminder of the
potential consequences if the ethical sourcing matter is neglected (Nestlé and
Child Labor, 2023).
· Impact of Boycotts: A study by researchers at the University of Washington in 2020 examined
the customer boycotts impact on corporate social responsibility (CSR)
practices. The study found that the boycott can significantly force companies
to improve their CSR practices following the boycott (Berrone et al., 2020; 35
Sustainability facts & statistics for business & CMOs | 2023, 2023).
 |
| Figure 6: Consumer behavior to sustainability (Bain & Co) |
Financial Performance and Investments: There's a growing recognition that strong environmental, social, and governance (ESG) practices are not just ethically correct but excellent business strategies. Here's how data sees this connection:
Shifting Investment Trends: A report by The Economist Intelligence Unit (EIU) on sustainable investment trends shows that investors are increasingly interested in putting capital towards companies that are committed to strong ESG practices (The Economist Intelligence Unit, 2019). It further reveal that 70% of surveyed institutional investors prefer considering ESG factors when making investments.
Sustainability and Financial Performance: A 2022 study by NYU Stern School of Business analyzed the financial performance of companies that have strong commitment towards sustainability practices. The study found that there is a positive relationship between sustainability practices and long-term financial performance (Whelan et al., 2021). This suggests that companies who adopt ESG practices may experience benefits such as:
- Reduced operational costs by efficient resource allocation and waste minimization.
- Improved brand reputation that leads to increased customer loyalty and better market share.
- ESG-focused investors are more inclined to such brands.
Analysis: Embracing sustainability can bring Nestle with benefits such as:
- Long-term financial stability and profitability.
- Attract and retain talent.
- Gain a competitive edge in the marketplace.
Limitations of Secondary Data Analysis
While secondary data is beneficial, it's crucial to acknowledge limitations:
- Data Generalizability: Consumer preferences and buying behavior can vary significantly depending upon geographic regions and socioeconomic condition of that region. Data collected in one market may not be accurate for other markets.
- Data Currency: The timeliness of data is critical. Outdated data or limited data may fail to properly reflect the current market trends and preferences.
- Data Bias: The source of the data can impact its objectivity and authenticity. Although the report make sure the accuracy of collected data but there is a chance of potential biases of research institutions or industry publications.
- Data contrast: There is a contrasting data on a similar point that makes it hard to decide which data is accurate to use.
Recommendations
The key purpose of this report was to point out how Nestle can
adapt its strategies and operations to make sure it achieve long-term
sustainability, better brand reputation, loyal customers, and financial
success. The analysis in this report revealed some key areas where adaptation
is mandatory:
- Product Development: Investing in
R&D to create healthier products. Exploring plant base, budget friendly
alternatives and organic food categories so the consumer preferences can be
satisfied.
- Sustainable Sourcing: Implement
robust ethical sourcing practices so the carbon footprint can be minimized,
also a fair labor environment is created.
- Transparency and Communication:
Increase transparency by regularly communicating with stakeholders regarding
sustainability efforts and ethical sourcing. Collaborating with independent
auditing bodies is an excellent way to verify these claims.
- Brand Reputation Management: Proactively
address past controversies and demonstrating a genuine concern and commitment
to be ethically sound. Engage in open dialogue with all stakeholders to rebuild
trust.
- Based on these key findings, the following recommendations are proposed:
- Establish a dedicated Sustainability Task Force: Being such a big company, this cross-functional team should be made
to handle the responsibilities of developing and implementing an all-inclusive
sustainability strategy that stays in accordance with long-term business
objectives.
- Invest in Sustainable Packaging Solutions: Research and develop eco-friendly packaging materials and minimize
waste, promote recyclability, and eco-friendly products.
- Intelligent Pricing: Adjust pricing
intelligently comparing competitors, and broader market trends in front.
Incorporate price sensitive customers with better and enticing deals so the
threat of new entrants can be minimized.
- Partner with NGOs and Sustainability Experts: Collaborate with reputable NGOs and sustainability experts helps
in making sure the sourcing is ethical to utmost standards. NGOs have vast
connections that helps companies to be fair in their dealings.
- Develop a Data-Driven Approach to Consumer Preferences: Conduct regular market research to stay updated about the market
and consumer trends and preferences. Also it helps to keep a track of what
people are preferring and what is the purchase power of consumer market.
- Implement a Sustainability Reporting Framework: Adopt a globally recognized framework, such as the Global
Reporting Initiative (GRI), to make sure transparency is intact, also it allows
comparability with industry peers, and in this way stakeholders can easily
track progress.
Conclusion
This report and analysis presented paints a clear picture that:
Nestlé's long-term success centers on its ability to adapt in answer to the shifting
needs of consumers and stakeholders. By
embracing sustainability throughout its supply chain, ethical sourcing
practices, and product development that satisfy the health and wellness trends,
Nestlé can achieve the top place in the market with long-term financial
stability, better brand reputation, and above all, continued market leadership.
The data indicates that consumer market is not aware than ever, they are
careful about their health choices. Hence, companies that fail to adapt to
consumer preferences can risk losing market share and also face reputational
damage. Nestlé's is proactively investing in these areas that shows its
commitment to change and adapt. The right investment, and robust communication
and transparency efforts, will be critical in securing its future success.
While secondary data provide a deeper understanding of existing
information, further research through primary data collection methods, such as
consumer surveys or focus groups in key target markets can be beneficial is
getting better and specific understanding of consumer preferences and concerns
in any specific area. This additional data could further be used to refine
product development strategies, operational management, and tailor
communication efforts to create a maximum impact.
It is true that Nestlé stands at a crossroads but the history of
company revealed its diligence and stronghold in this niche. By showing
commitment and embracing the recommendations outlined in this report Nestle can
secure a sustainable future. Also, by actively adapting its strategies Nestlé
can enjoy continued success for generations to come.
References
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Cheng, H.G. and Phillips, M.R. (2014) ‘Secondary Analysis of Existing Data: Opportunities and Implementation’, Shanghai Archives of Psychiatry, 26(6), pp. 371–375. Available at: https://doi.org/10.11919/j.issn.1002-0829.214171.
Clarke, J.S. (2015) ‘Child labour on Nestlé farms: chocolate giant’s problems continue’, The Guardian. Available at: https://www.theguardian.com/global-development-professionals-network/2015/sep/02/child-labour-on-nestle-farms-chocolate-giants-problems-continue (Accessed: 26 April 2024).
CNBC (2023) ‘Nestle plans price hikes after inflation eats into profits’, CNBC. Available at: https://www.cnbc.com/2023/02/16/nestle-plans-price-hikes-after-inflation-eats-into-profits.html (Accessed: 26 April 2024).
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