The Unrepentant Chocolatier Essay Example | Topics and Well Written Essays - 1750 words

The Unrepentant Chocolatier - Essay Example This will directly lead to the generation of revenue from the intended target consumers over a longer period of time as compared to that of new products introduced by various other competitors in the market. The company has increasingly committed itself to the development and fulfillment of long term goals and is dedicated to a slow process of brand building for its products. The long term dedication shown by the company towards the brand building as well as its promotion efforts of Nespresso led to increase in the number of consumer conversion from high profile coffee selling brands like Starbucks to a more affordable cheaper alternative provided by the Nestle brand. This shows that the long term effort of the brand has helped to establish consumer connect for the global Swiss company. Weakness The global brand Nestle has been facing a severe shortage in sales for the bottled water products. The bottled water division which constitutes 10% of its entire business interest around the world has been declining sales figures from the established markets due to the impact of recession. Though there are chances of revival of the bottled water market with the bouncing up of the economy, there are also chances of facing increasing resistance from the environmental groups. The lineup of bottled water products is also a source of tremendous weakness for the company as the quality of the bottled water products is declining significantly. In the second quarter of 2009, the products of Nestle’ lost high percentage of market share to various competitors in the high value market that is existent in the United States. The impact of recession has also hit the consumers spending on the company’s product lines in the advanced economies. As a direct step towards the reducing of lifestyle costs, consumers are increasingly shifting to unbranded food items, which have taken a direct impact on the revenue generation cycle of the company. The investors in the share market are also highly concerned with the fact that Nestle might reinvest majority or the entire portion of the cash that it will be receiving from the divesting off the shares of its eye care business in building up and developing the company’s non profitable businesses. This has brought down investor confidence in the company’s processes of handling its own businesses and has reversely affected the company’s share prices in the equity market. The brand Nestle has also stirred significant investor skepticism as the investors feel chiefly that the company has become large as well as unproductive. Opportunities The brand of Nestle is increasingly focusing its attention on the research and development of functional foods, which have high health benefits. Reports by Pricewaterhouse Coopers significantly predict that the global market for functional foods is estimated to stand at $128 billion by 2013. Also, with the increase in market demand for the functional foods in th e European market, it can be increasingly assumed that it will be the new product lines surrounding the functional foods that will be acting as a significant source of revenue for the future and will promote strong growth for the company in the European markets. The brand Nestle has made investments towards the development of functional foods almost a decade ago. This particular early investment plan provides the company with an advantageous position as