Nestle Malaysia Essay Sample
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Introduction of TOPIC
Customer’s loyalty for example, Dunkin donut’s gives out voucher and discount coupon to their customers to keep the customer loyalty strong. This will keep customers coming back to buy more products and it is one of the largest food industry in the world. A large share market of dunkin donuts has among all public listed companies. Strong brand names among its competitor Dunkin donuts have. ii. Competitive pricing
Dunkin ‘Donuts is the largest U.S. coffee trader cup, serving nearly 1 billion cups of brewed coffee each year. On average day, Dunkin ‘Donuts sells more than 30 cups of fresh coffee every second. Dunkin ‘Donuts uses 100% Arabica coffee beans and coffee has its own the specifications, which are recognized by the industry as a superior grade of coffee. Dunkin ‘Donuts offers nearly 1 billion cups of brewed coffee each year, or about 2.7 million cups a day.
Limited geographical presence
Competition from the other international snacking joints means limited stock marketplace growth. Still you penetrate into new emerging economies that can become a great segment. ii. Indebtedness, limited financial flexibility
The company does not market its products as the competitors market their products. This will results Dunkin donuts losses its market share. iii. Lack of marketing strategy Dunkin donuts is a lack of marketing strategy and the new product launches, it is seen that Dunkin the donuts are facing problems in launching and generat
e new types of food. Due to the fact that they was rigorous in by this mode of obtaining and combine
The economic slowdown
In the developing markets such as China, it has been exposed that there has been a rise in coffee consumption. Dunkin Donuts having such a strong brand name will advantage from these growths of numbers. It has been known for Donut shops to benefit with consuming the law implementation around. Dunkin Donuts offers breakfast items with its unique taste and likewise the doughnuts and baked foods are inexpensive as associated to other food stuffs, Dunkin Donuts would be the first to make turnover from this situation. Companies like Dunkin Donuts could benefit significantly. Dunkin Donuts delivers a website where you can go online and purchase a diversity of items.
Control in the classification of various fast-growing
Firms like Kraft Foods suggests many food products from the many categories is composed of crackers, the focus wellness products, animal feed, food-based cheesy, crackers, bread and cakes, chocolates, beverages, etc. This will increase their participation in such in severally different categories of risk encourages focus on only several food products.
Quality control, recent litigation with franchises
There are entry barriers into the coffee and donut industry, which essentially provided the impetus for threat to the large presence of competitors. There are also an increasing concern health issues in general as the people become greater conscious. Prices raw ingredients also rose, like soybean. It is a real threat as Dunkin Donut is now using cooking oil formulated, made from the soybeans, for the donuts to remove trans fats An increase in raw ingredients prices can result in increased in operating costs Dunkin Donuts.
Cannibalization as the new stores open
In several ways, this is also able to withstand and they regulate company products strategy and they variations within the food industry, with increase in the cost goods, each industry would be congested and they this will mimic the company’s expansion in the region iii Competitors like Starbucks and Mc Donald’s
Mc Donald’s and Starbucks are major competitors that offer similar kind of food items and snacks and there is chance of customer transferring to other food products. Another major competitor and hence threat for the company is Krispy Kreme that can cause a fall in the market share of Dunkin donuts.