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Swot analysis of Nescafe

Nescafe, a product of Nestle is a famous and well known brand of coffee made from fine cocoa beans. Its brand name says it all, everyone around the globe is well aware of this brand and people prefer Nescafe coffee over all others. Being a well known brand it has drawbacks and some strengths following with its opportunities.

Strengths:

  • Strong brand name as it is associated with Nestle
  • It has fascinating and excellent marketing campaigns
  • Their products are diversified into many flavors and segmented accordingly
  • It has a very strong financial position
  • Globally known brand with a very good reputation in the market worldwide
  • It has great Marketing P’s. Their Promotion, Placement , Product and Pricing strategies are too good
  • Health conscious products are made keeping in mind the nutritious values
  • Good quality control over the products

Weakness:

  • People avoid caffeine if they are health conscious
  • They have to pay a lot of sales and indirect taxes
  • They have a price point portfolio system

Opportunity:

  • They must reduce their price according to the places they are selling their products
  • They can expand their business into the rural areas
  • They can simplify their taxing schemes

Threats:

  • Food inflation causes threats to companies like Nestle
  • Competitors in the global market
  • Many people avoid coffee due to their health reasons

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