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Assignment 2 MKT410

introduction to marketing (Universiti Teknologi MARA)

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INTRODUCTION TO MARKETING (MKT410)

ASSIGNMENT TITLE:
GROUP PROJECT

LOCATION :
PENANG

PREPARED BY:

NAME STUDENT ID

PREPARED FOR:

SUBMISSION DATE:

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TABLE OF CONTENT

INTRODUCTION 1

MACRO ENVIRONMENT 3

DEMOGRAPHIC 3

ECONOMIC 3

NATURAL 4

TECHNOLOGICAL 4

POLITICAL AND SOCIAL 4

CULTURAL 5

RECOMMENDATION 6

EXECUTIVE SUMMARY 7

REFERENCES 8

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INTRODUCTION

Nestle is the big firm we chose for our project. The company began in Switzerland as
a Swiss multinational food and beverage company, and it is now one of the world's largest
food corporations. They are also the largest agricultural suppliers and industry leaders in
coffee, mineral water, and other products. Nestle employs the coat of arms and the bird's nest
symbol to indicate that the product is of better safety and quality for the consumer. Nestle
consistently provides appropriate food relevant to the nutritional, health-related consumer
lucrative business. Infant food, frozen food, bottled water, yoghurt, biscuits, milk beverages,
ice cream, morning cereals, pet food, and other goodies were also added by the group. Nestle
owns L'Oréal, one of the world's largest beauty companies. Following that, Nestle aspires to
be the most prominent brand in the world, as well as the most fantastic food brand associated
with the finest quality things

Furthermore, Nestle is more focused on its mission slogan, "Good Food, Good Life,"
which exemplifies the purpose of the company's founding. The impact of the social climate in
the design of balanced cuisine that promotes health cleanses the environment and yields
healthier food. They have been using our knowledge in Nutrition, Health, and Wellness to
assist people, families, and pets live happier, healthier lives for over 150 years. But what is
good today will be obsolete tomorrow. That is why Nestle is continuously researching and
attempting to push the frontiers of what is possible with meals, beverages, and nutritional
health products. They use the power of food to improve people's lives today and for future
generations to increase pleasure and enjoyment.

Nestle has been nourishing Malaysians with exceptional brands and products since
1912 while ensuring Halal excellence and integrity. This is consistent with Nestle's mission
of harnessing the power of food to improve the quality of life for everyone, now and in the
future. Nestle's dedication to supplying Malaysians with high-quality products extends back
more than a century. Nestle originated in Malaysia in 1912 as the Anglo-Swiss Condensed
Milk Company in Penang and then moved to Kuala Lumpur in 1939 due to growth and
expansion. Nestle Malaysia now has 6 plants and employs over 5,000 people across the
country, manufacturing over 500 Halal-certified goods. Many of their core brands, including
Milo, Maggi, Nescafe, and Kit Kat, have become household names in Malaysian households

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for generations. Nestle is strongly committed to giving the absolute best in quality, nutrition,
and taste, having been present in the nation and in the hearts of Malaysians for over a century.

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MACRO ENVIRONMENT

The macro-environment refers to all those factors that indirectly affect the business operation
and working conditions. Those factors are uncontrollable and the organization is not capable
of exercising any control over them. The macro-environment focuses more on the broader
issue of the business such as technology and the socio-cultural environment. In particular
detail, we can say that the macro environment includes all of the factors over which any
business. Those factors in the macro-environment are demographic, economic, natural,
technological, political, and last but not least cultural. These all factors affect the
functionality and decision-making process of any business in the industry.

1. DEMOGRAPHIC

The demographic environment is the first factor that states in the

macro-environment. The demographic sector can be defined as splitting up
and dividing the human population into different parts in terms of age, gender,
occupation, race, density, and location. The world population would only tell
about certain figures of people that are living in some country instead of any
solid information. Nestle's primary target is the customer's age and family life
cycle. For instance, Nestle had launched coffee products for adults and Milo
milk for children. The company usually provides the same product in different
sizes of packaging to satisfy the various types of needs according to the size of
the family.

2. ECONOMIC

Economic environment, which includes economic variables that influence

client purchasing power and consuming behaviors. Markets require both
buyers and sellers. Economic variables can have a significant impact on
consumer spending and shopping behavior. Malaysian consumers, for
example, had been spending freely until lately, fueled by income growth, a
stock market boom, significant rises in property prices, and other economic
good graces. They bought and bought, almost recklessly, accruing record debt
levels. As a result, they have adopted a back-to-basic attitude in their lifestyles
and spending habits that will most likely persist for years to come. They buy

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less and seek greater value in the items they purchase. Indeed, for many
advertisers, value marketing has been the buzzword.

3. NATURAL

The natural environment comprises both the physical environment and the
natural resources that marketers demand as inputs or that are influenced by
marketing activity. Nestle is responding to customer demand for more
ecologically responsible products by manufacturing biodegradable or
recyclable packaging, recycled materials and parts, tighter emissions controls,
and more energy-efficient operations. Nestle now aims to perform more than
just good deeds as part of its major goals, which include environmental
conservation. Nestle, for example, strives to collectively decrease
environmental issues in their production by switching to lower-carbon energy
solutions and utilizing inventive processes and technologies.

4. TECHNOLOGICAL

Nestlé firms have employed information technology to make their operations

more effective and efficient. Information technology is a combination of
software and hardware resources used for data collecting, transmission, and
storage. The Nestle global information technology team provides this
information technology to all Nestle enterprises worldwide. Communication,
hardware, database, security, software, application, servers, internet, network,
and support are examples of information technology used by businesses.

5. POLITICAL AND SOCIAL

Marketing decisions are strongly influenced by the establishment in the

political and social environment. The political factor can be defined as an
activity having to do with the government and its administration that has the
potential to change or affect a business. Seeing that Nestle operates in more
than 190 countries, any change in the regulatory environment can have a
massive impact on its business. Multinational companies like Nestle have a
greater risk of production obstacles due to government actions and changes.

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Generally, the more countries a company covers the greater the possibility that
policy changes can disrupt the operation.

6. CULTURAL

The cultural environment consists of institutions and other forces that

influence the basic values, preferences, perceptions, and behaviors of a
society. Nestle is a good example of how to integrate into the cultural
environment before the company is established in a country. They studied and
researched the demands and needs of society. Thus, the production of Nestle
products was accepted and well received by the public. Nestle has a
well-developed corporate culture, which is reflected in the corporate logo
itself. The logo "Good Food Good Life", which is constantly displayed on the
goods, is the main direction for every activity within the company. Nestle
believes that good food is the most important foundation for good health
throughout life and therefore places nutrition, health, and wellness at the heart
of its business.

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RECOMMENDATION

Anyone on this globe has heard about the glory of Nestle which has been expertise in
producing consuming products in cereal, milk, and many more. Nowadays, Nestle products
such as cereal have been boring in packaging. Thus, make the product not look attractive,
especially to the children. Approximately 10 years ago, cereal products included CDs that
consist of video games that do not need to be installed and can be directly played once
inserted into the computer. This kind of attraction can attract children to buy the product. The
attraction may not be due to the taste, but the packaging which also includes video games.
Especially for those who do not have access to the latest video games.

The variety of products of Nestle can sometimes attract people to buy the specific
product. For example, milk-based products produced by Nestle consist of more than 3 types:
Fresh Milk, Full Cream, Low Fat Milk, etc. Nestle needs to improve the availability of the
product since some groceries only buy specific products such as fresh milk. Consumers that
might come to the groceries to buy other types of milk might get disappointed due to the fact
that they have to visit other places to get their hands on the specific milk.

Nestle should increase their investment in the research and development team. Their
team should increase their effort in producing new products to attract consumers. Nowadays,
products produced by Nestle only can attract children and teenagers with the current trend of
having breakfast with cereal and milk. They also should increase their research on
enhancement especially by enriching their product with vitamins that can increase mothers’
health when they consume the milk. By starting with the mother’s health, they can also
contribute to enhancing the infant’s health

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EXECUTIVE SUMMARY

In conclusion, Nestle is indeed one of the largest and most successful companies in
the world. The company has focused on food and beverages as its main trading communities.
Despite this, Nestle is the largest company which is in the world’s leading food manufacturer,
and the market leader in both coffee and mineral water, products including prepared dishes
and cooking aids, milk-based products, cereal, instant coffee, and baby food. Besides, Nestle
is an organic model of organizational design. It is flexible and highly adaptive to the
competitive external environment.

In another way, Nestle exerts great efforts to achieve its vision to be the leader in
nutrition, health, and wellness by producing better quality products for the consumers. Nestle
also studies consumer needs from time to time and satisfies the consumers as much as
possible. Nestle's strengths such as high financial capability, effective strategic marketing
capability, strong research, and development, as well as great leadership, have helped them
through the obstacles. Above all, Nestle focuses on its missions and ensures constituency by
making the right decisions to manage and build its business to deliver the promise of Good
Food, and Good Life over the world.

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REFERENCES

● Shaw, A. T. A. A. A., & Shaw, A. A. (2020, November 20). What is a

macro-environment? definition and examples. Marketing Tutor. Retrieved June 7,
2022, from https://www.marketingtutor.net/macro-environment/
● Frue, K. (2020, November 24). Pest analysis of Nestle: How Politics and Social
Culture affect its growth. PESTLE Analysis. Retrieved June 7, 2022, from
https://pestleanalysis.com/pest-analysis-of-nestle/
● How to identify your target demographics. Indeed Career Guide. (2021, December
30). Retrieved June 7, 2022, from
https://www.indeed.com/career-advice/career-development/target-demographic
● “The Nestlé Company History | Nestlé Global.” Nestlé Global, www.nestle.com,
https://www.nestle.com/aboutus/history/nestle-company-history#:~:text=Our%20histo
ry%20begins%20in%201866,known%20as%20the%20Nestl%C3%A9%20Group
● “Nestlé in Malaysia | Nestlé Malaysia.” Nestlé Malaysia,
www.nestle.com.my,https://www.nestle.com.my/aboutus/nestle-my
● “Recommendation to Nestle Company”, StudyModeResearch,
https://www.studymode.com/essays/Recommendation-To-Nestle-Company-1888580.ht
ml . Accessed on June 7, 2022.

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