Nestle has a fantastic opportunity to grow the number

Nestle has a fantastic opportunity to grow the number of
small food start-ups under its popular brand name. Nestle can also collaborate with the new start-
ups to promote its brand name.
THREATS:
Rising competition – Many CPG companies like Mondelez and Unilever offer similar food and
beverage products. It is hard for Nestle to compete in such a situation where the substitute
products are easily accessible.
Water scarcity – “ Nestle production is highly dependent on water usage. Accessing the clean
water through less costly sources has become difficult for the company due to many reasons.
These include increasing population, climate change, increasing pollution, water wastage, and
overexploitation of resources. ”
IMPACT OF COVID ON THE FUNCTIONING / FUTURE WORKING OF
THE FIRM / INDUSTRY
• Demand Side Impact – “ Extended lockdown will lead to shift in consumption habit.
Consumption is getting impacted due to job losses and decline in income levels of people
particularly the daily wage earners due to slowing activity in several sector. ”

• Supply Side Impact – “ On the supply side, shutdown of factories and the resulting delay
in supply of goods. Reduced manufacturing activity will have implications on
employment. ”
PROBLEM STATEMENT
Recent Disruption
“ They are facing production and supply chain challenges to make their product available at the
shelf. For example, most production units and warehouses are trying to deal with low labor
availability, which is as low as 30-40 per cent of normal levels in certain cases. ”
Due to COVID 19, a complete lockdown has a shortage of manpower and cut down the
production levels.
Total sales decreased in 3 months in 2020 is 6.2% (20.8 billion) as compared to 3 months of
2019 (22.2 billion).
Policy Issue affecting the industry:
“ The Goods and Services Tax (GST) is beneficial for the FMCG industry. FMCG products such
as Soap, Toothpaste and Hair oil now came under 18 per cent tax bracket, previously 23-24 per
cent rate. Also rates on food products and hygiene products have been reduced to 0-5 per cent
and 12-18 per cent respectively. ”
QUESTIONNAIRE
Following questionnaire has been developed after understanding various variables and Key
success factors which customers evaluate while making a purchase decision of a coffee.

1. Gender
a. Male
b. Female
2. Age
a. 10-18
b. 19-28
c. 29-38
d. 39 and above
3. Occupation
4. Monthly income of family