PESTEL Analysis example - Nestlé

Nestlé founded in 1873, is today in 2021, one of the leading agri-food companies in the world. In 2019, the turnover was 84.4 billion euros, and the brand is present in 187 countries. The number of employees stands at 291,000, with 403 factories in 84 countries.

Nestlé

Credit Photo : Nestlé

Online reading

Read all of Oboolo's documents - no limitations!

Register!

The group participates in the development of its activities in emerging countries, to the amount of 42% of its overall turnover, an increase of 5.8% in the space of 2 years. The group owns several brands, some of which are renowned worldwide such as Nespresso, Purina, Maggi or even San Pellegrino.

PESTEL analysis

Politics

Due to its presence in several countries, it is important for the group that political stability is preserved in these countries. This facilitates international trade and various exchanges. In addition, the rules are not the same in all countries, forcing it to comply with the different laws in force in each country concerned.

The political and economic fields are also closely linked since economic life is one of the priorities of the policies. Nestlé is clearly one of the leaders in the world agri-food market.


Economic

At the economic level, Nestlé emphasizes its knowledge of the evolution of inflation and consumer income levels. The price of raw materials is, sometimes, likely to raise or lower the prices of products offered on the shelves.

Consumers' budgets also change frequently, with a drop in purchasing power in a fairly large number of households.


Sociological

Consumers generally want to eat healthier products and pay more attention to where the products they buy come from. Many blogs and other marketing methods denounce the presence of too much sugar in food, which is harmful to health in the long term. We also note an increase in information, with Internet users more aware of food practices and manufacturing processes, this makes them much more demanding.

We are witnessing a change in consumption habits; many wish to return to a more home cooking culture, which can be seen as a threat to groups like Nestlé. With this in mind, the group adapts to these changes and proposes a marketing strategy more in line with the expectations and needs of their customers.


Technological

Nestlé, like a large majority of companies, has had to adapt to new technologies and the rise of digitalization, which has dramatically transformed sales methods and commerce.

Social networks make it possible to maintain constant interaction with Internet users and are therefore an opportunity for the group.

Finally, electronic commerce is taking an increasingly important place in society and in the purchasing habits of consumers.


Ecological

Nestlé has an increased ecological awareness, which is important today for marketing, as well as for consumers in their daily choices.

Corporate social responsibility and everything related to product packaging and recycling plays an important role in the group's action plans.


Legal

The food industry is full of changes, especially in regulations. This changes according to consumer habits, but also according to the countries and policies in place. Particular attention is paid to consumer protection, in the ingredients used or in the manufacturing processes.


Source: Nestlé