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Nestle has a fantastic opportunity to grow the number

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Nestle has a fantastic opportunity to grow the number ofsmall 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 likeMondelezandUnileveroffer similar food andbeverage products. It is hard for Nestle to compete in such a situation where thesubstituteproductsare easily accessible.Water scarcity –Nestle production is highly dependent on water usage. Accessing the cleanwater through less costly sources has become difficult for the company due to many reasons.These include increasing population, climate change, increasing pollution, water wastage, andoverexploitation of resources.IMPACT OF COVID ON THE FUNCTIONING / FUTURE WORKING OFTHE FIRM / INDUSTRYDemand 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 peopleparticularly the daily wage earners due to slowing activity in several sector.
Supply Side Impact –On the supply side, shutdown of factories and the resulting delayin supply of goods. Reduced manufacturing activity will have implications onemployment.PROBLEM STATEMENTRecent DisruptionTheyare facing production and supply chain challenges to make their product available at theshelf. For example, most production units and warehouses are trying to deal with low laboravailability, 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 theproduction levels.Total sales decreased in 3 months in 2020 is 6.2% (20.8 billion) as compared to 3 months of2019 (22.2 billion).Policy Issue affecting the industry:The Goods and Services Tax (GST) is beneficial for the FMCG industry. FMCG products suchas Soap, Toothpaste and Hair oil now came under 18 per cent tax bracket, previously 23-24 percent rate. Also rates on food products and hygiene products have been reduced to 0-5 per centand 12-18 per cent respectively.QUESTIONNAIREFollowing questionnaire has been developed after understanding various variables and Keysuccess factors which customers evaluate while making a purchase decision of a coffee.
1.Gendera.Maleb.Female2.Agea.10-18b.19-28c.29-38d.39 and above3.Occupation
4.Monthly income of family

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Term
Spring
Professor
N/A
Tags
Standard Deviation, Mean, Brand

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