Nestle in Vietnam do not import or produce

Nestle is making business about nutrition and healthy located since 1866 aggregation  by  2 factories Anglo-Swiss Milk and Farine Lactée Henri Nestlé that have main factory at Switzerland. They produce verity products include powder and liquid , water, milk product and ice cream, beverage , nutrition and health science , prepare dishes and cooking aids , confectionary and pet care . In Thailand Nestle located since 1893.  At the present Nestle have 7 factories, they produce, import and sales every product line. The roll of nestle Thailand is not only produce the food and high quality beverage but they also have commitment to drive the economic and communication including support any project about the environment in Thailand. Even Nestle have many factories almost around the world but some countries does not import or produce some products line because their countries were having own strong brand and popular factories that made products already , such as Vietnam. Nestle have a factory in Vietnam that produce and import every product line but they do not produce and import “confectionary”, its might because their county already have own popular and strong brand name, have high percent of market share and strengthen position and the last cause is the laws and the rules of this country is having changing all the time. That’s might be the cause that Nestle in Vietnam do not import or produce confectionary. So I think I’m going to import confectionary of Nestle from Thailand to Vietnam. Because Nestle Thailand is also produce and import every product line of Nestle and Thailand have a verity of resource to produce the product that enough for export to other countries such as Vietnam. Nestle Thailand could be improve confectionary including increase more flavor of KitKat. That’s not only the original flavor KitKat but also cloud have Thai tea flavor to present the flavor that unique, innovative and open the different market of chocolate and snakes for people who likes to try the new things.   Cultural The culture of Vietnam is one of the oldest culture in the world due to many years that Chinese rules Vietnam was influenced by Chinese such as policies and government after they got independent from china the culture life of Vietnam has been influenced by government controlled media and cultural influences of the socialist program. Characteristics of Viet Nam include respect for community and family, devotion to education. Symbol of culture in Vietnam are Turtle, Dragon, Lotus and bamboo.  Demographic Demographic is about Vietnam population such as population destiny, education level, health of populate and economic status. Vietnam have 93.4 million people in their country, this country have the most population in number 3rd of Southeast Asia and number 13th of the world. Nationality Vietnam people have Vietnam nationality 86 percent besides Khin or Viet and other nationality that spread over the plateau. The estimate of birth and death  Birth: 1472000 live birth in per year (period 2005 -2010)Death: 44800 deaths in per year (period 2005 -2010) Social economic Vietnam has enjoyed the economic growth averaging growth of GDP per capita of Vietnam is 6.4 percent of the year 2000s .Since renovation socio economic of Vietnam has been improved. By 1999 Vietnam export rice 1 million tons that make Vietnam becoming the 2nd  exporter after Thailand and they increase the number of export from 1 million to 5 million in 2005.   PoliticalGovernment of Vietnam set the political to support the foreigner to treading into their country by mean of updated and fixed the rules to accommodate for located treading company. They permit foreign people located the company that foreign people can register as owner 100 percent. So Vietnam is one of the counties that foreign investors most pay attention due to this country have many natural resources and the labor cost is quite low.  Technological In the past year the economical of Vietnam were increasing continually. Economic of this country can expand higher than analyst has predicted, the economic activity of Vietnam that in emergency period will motivate Vietnam people to have demand that make they wants to purchase more product and service, especially the product that relating to ICT and technology because at the present internet and social media are become famous in Vietnam. This is the easiest way to purchase online and the accessories that they use are tablet, computer and smart phone. Competitive Vietnam is 55 competitive nations in the world out of 137 countries in the ranked.This country is become more competitive because they have basic requirement including institutions, infrastructure, macroeconomic health and primary economic. Vietnam are attracting investments from overseas production increases as more anxious for the Government who want to stimulate private investment in order to slow down rapid growth. Foreign exchange  How to calculate the approximate exchange rate. The dollar with money Thailand divided a half then add a 0 to 3, the time value of money dong Vietnam as 100 baht, divided by half to 50 and add a 0 to 3 to 50000. dong (nam muy ngin dong) 1000 500000 baht Redeem Vietnamese dong (nam jam  ngin dong), which this was calculated by few. It will be more or less than this. It will be based on the exchange rate and the exchange between the baht against the dollar today is 1 baht = 500 dong.   LegalThe import tax.Storage is based on the General Agreement on tariffs and trade (GATT General Agreement on Tariffs and Trade) under Article 7 for imported goods stated in GATT, import prices used in tax calculations. The rate of import duty, the ledger as follows.1. the rate of import tariff rates, special (Special Preferential Rate) rate (Special Preferential Rate) and normal (Normal Rate) has several rate 1% 3% 0% 5% 10% 15% 20% 30% 40% 50% 60% and up to 100%.2. The rate of the General Ordinary Rates) apply to imports from countries where the main Non-MFN and equal to 1.5 times the rates.3. Special (Preferential Rate) applied to imports from countries with MFN agreements with Vietnam.4. Special rate (Special Preferential rate) applied to imports from countries with special tax agreement (Special Preferential Agreement) with Viet Nam, especially ASEAN group. 

2.  
Nestle’s SWOT Analysis

2.1 Strengths

v Nestle
is the huge factory and it had been built since 1866 until the present (151 years) cause it had been built for a
long time that can made customer royalty and brand royalty .

v  The factory located in proper geographic which
have many sources to make the products.

v Nestle
always have a good image and this brand is very famous, so most of people can
recognize this brand.

v Nestle
have verity products line and the products are very easy to purchase because
they sent their product to every supermarkets and minimarts.

v Nestle
have an outstanding of the taste and mallow. The taste of coffee of Nestle has
been developed by the expert and technology of Nestle that making difference
from other competitors.

v Nestle become an iconic of coffee of the world.

v Most
of people likes to eat snacks such as chocolate. Nestle also have chocolate as
knows as KitKat that very popular in the world.

v Nestle
has been maintain their advertising quality and have a great visibility with
many country.

v Global
and verity of drink and food, Nestle reach direct to the target group in many
ways such as store in supermarket, minimart and some local market.

v Nestle
keeping customer’s choice as their first priority and they improve their
product line to provide their brand to become declining.

 

2.2 
Weaknesses

v The food and beverage can be contaminate.

v Some
products might be forbidding in some counties.

v The
taste of the product such as coffee might be too strong for some customer.

v Some
product such as ice cream might have high cholesterol and high calories.

v The
expire date of product from Nestle has limited, it’s can’t be stored for long
time.

v Its
might have some fake product which copy their products that can damage the reputation
of their company.

v Because
Nestle is the global brand, so that could have argue
issues in different countries about their brand.

v The
strong competition by many brands can limit the market share growth of Nestle.

v  Unable to competing in sensitive
price of UHT milk markets.

v Unable
to fulfill demand of local markets.

v Nestle
have to recall of their product due to low quality Impede the company’s image
for a company that has such large customers, Nestlé does not expect harmful
errors occur because as a business in the food industry. The company is also
the target of being boycotted because of the media pressure and the environment
for a involvement in the practice, not the Green and the use of child labours.

 

2.3  Opportunities

v The
product have clear labeling and show the information about the product such as
expiration date, production date, ingredients and calories.

v Coffee
is the main breakfast for the new generation people due to the lifestyle of
them is very hurry, they will drink the energy drink such as coffee to restrain
the sleepiness during the day. This is the opportunity that able to expend the
market and have more marketing share.

v Because
the factory sent the product to many supermarket its effect to opportunity that
have more product sales.

v The
number of retailers are increase that made more opportunity for Nestle.

v Produce
more healthy based food for create health consciousness for consumers.

v The
most of people that living in far area give attention and set up the store
effective supply chain of the verity products of Nestle.

v Nestle
needs to have consistent and coordinate between manufacturing and markets to
provide the fresh products.

v In
fact that Nestlé has from being a mere food brand to brand nutrition and
well-being is a good opportunity for the company because it opens new
opportunities to expand the product line. Entry into emerging markets, and the
establishment of a production plant for help. Companies can reduce costs.

v Nestle
might marge with other global business for decline competitors.

v Able
to expending to other markets into the world.

 

2.4 Threats

v  Have many competitors.

v Costumers
can be switching brand and have low loyalty.

v The
price of the product could be rise depending on the weather and disaster.

v Nestle
have increase of many competitors such as other brand that make same product
such as Moccona trio that have many type of coffee like Nestle. Its might make
consumers not only loyal Nestle brand but also royal other brands.

v The
customer can switching brand and lower of royalty.

v Some
product in product line of Nestle are have strong competitors such as Vietnam
already have the famous and strong brand of snacks.

v    Failure of the product supply chain the
complex that low level the might effect to their business.

v Increasing
of the cost of raw materials can affect the price of product and the profit
margins.

v It’s
have strong competition in every product segments.

v The
food industry is probably one of the most saturated industry in the world. This
treatment, Nestlé faced a very serious threat in the race. This competition can
rise from both international brands and  in a country where Nestlé and attempt to
continue. The price of raw materials, raw materials, and political insecurity
that increased in many countries in the world, and also threatened their
mistrust in the production line.

v Competition
from domestic and foreign brands, price of raw material and fuel, increasing
political uncertainties.

 

2.5  SO

·       
Increase production about quality of milk to
respond unwanted needs.

·       
Nestle should increase more product line.

·       
Nestle need to increase their exportation.

·       
Nestle should respond a verity need of
unsatisfied demand by improve their distribution network.

2.6  WO

·       
Nestle should respond the demand that increase in
everyday as nestle have ability to expending their markets.

·       
Nestle should make a strong distribution for
respond the benefit of growing markets.

·       
They should use efficient marketing strategy
for promotion of their products.

2.7  ST

·       
To invest more in some product line are still
large in chunk of markets that require improvement.

·       
Introduction about the new technology for
quality assurance and having better productivity.

2.8  WT

·       
Nestle should improve their coordination
between department for cost reduction and increase the efficiency of the
company.

Conclusion

Because Vietnam is a country with
a large population and a GDP increasing every year. The country has a
population of just Show that if the investment company, open to novelty. There
seems to be a market for our goods. When a lot of people The demand is huge as
well. The needs of the individual, it may not be the same. When we are in an
extremely exotic to have a person of interest. In terms of politics The
government is open to foreign investors to trade with rather liberal. When
foreign investors wishing to invest and build factories in Vietnam. Investors
have the right to own 100 percent
full. It is easy to make products from Thailand or invest in this country.

                 The analysis of a SWOT

               
Nestle, a company that would rather trade advantage. There is quite
obvious strengths The brand has come a long rather have people be loyal to a
brand royalty loyal to this brand of Nestle factory in virtually every country.
The rate of import exported at a higher rate so diverse product line that
Nestle has become the world’s top brands. There is a high market share. But on
the other hand, was a rival Nestle marketing their  products and certain goods such as health and
food must be consumed. These Risk that quality will decrease or expire before
they reach consumers. Imitating certain products of the company upset customers.
Nestle
should add more products to existing ones. And have access to the stores in
more rural areas. To add channels to be distributed and extend the reputation
of the band as well. Respectively need to think of Nesle is a brand with a
great reputation around the world. It has many competitors. And the risk of the
product being counterfeit. Some countries have a strong brand. It may be a
small market share. Making it difficult to increase profits for the product.

The reason that I choose Vietnam to export the product is this
country already have  Nestle factory ,
which means that there have a market for this brand. It is easy to launch new
products or import a new product under this brand. And the basic character of
the people in this country are quite royal to their family and when they visit
relatives or social gathering Vietnamese people also often go shopping together
and give the souvenir to other.  Vietnam
people usually buy the snacks or some chocolate as a souvenir of the meeting or
in the conversation in the family. People in Vietnam, with more than 29million people,
so inevitably there is a market for new products. Due to Vietnam is already
have the famous snakes and chocolate brand already, so the product the will
imported from Thailand such as chocolate KitKat really need to have a taste of
the exotic and show the difference. It may be expressed through its bordered by
Thailand. by putting the taste of milk tea or some Thailand local snakes . To
create a novelty to consumers and to increase the production and distribution
.because Vietnam Technology has added to online purchases. Nestle should add this
channel. To increase volume so Vietnam. A country with an investment of
political and civil enough to have the ability to buy. Nestle is the market for
the goods to be imported because a lot of people and the demand is there as
well. Vietnam continues to push for foreign investment by various measures,
such as regulations allow foreign investors to benefit from the tariff rates
lower Since 2558, Vietnam has imposed regulations on foreign investment are
clear. And more transparent and improve various approvals, permits faster, made
a year ago, with foreign investors flock to the content. So in the year 2560,
Vietnam will have to “pick” at sowing time. Earlier in Vietnam under
the supervision of the Communist government. This work late and clumsy and dependence
on imports from China. However, the current changes direction the private
sector to play a role in various businesses, both retail and export. The flow
of new business as “StarCraft” beer “cranked up the media”
as well as “entertainment” and “online transaction” is now
very popular in Vietnam. Made years ago with the establishment of local venture
capital funds. Incoming funding to those companies cranked up a lot. And Forbes
expects. Private businesses are hoping to become a bigger engine for propulsion
Vietnam’s economy The
terms “Strategic Economic Partnership Pacific”, or TPP, which is the
hope of Vietnam in attracting foreign investment and trade. May ended the
“Donald Trump” swearing in the United States presidency. And
announced that it would tear this agreement, however, Vietnam has left a free
trade agreement (FTA) reached No. 16, has already made a deal. Especially those
made with Chinese and Japanese. As two major powers the global economy.

 And the last Vietnam’s middle class will increase two-fold in 2563 gave rise to 33 million middle class means that purchasing power is increasing as well. The middle class will earn about 714 dollars a month. Enough to pay the phone bill. Motorcycles Left for tourism and health products.