MKT 420

ASSIGNMENT 2: MARKETING ENVIRONMENT

NAME: MUHD ALI BIN TI (201980999)

LECTURER'S NAME: DR MOHAMAD BIN ABDULLAH
INTRODUCTION

Nestlé begins in 1866 with the establishment of the Anglo-Swiss Condensed Milk Company.
Henri Nestlé builds up an advancement baby food in 1867, and in 1905 the organization that he
established collaborated with Anglo-Swiss, to shape what is currently known as the Nestlé
Group (Mowbray, 2017). During this period, urban communities develop and railroads and
steamships cut down costs of the commodity, prodding worldwide trade in the consumer sector.
US brothers Charles and George Page help to set up Anglo-Swiss Condensed Milk Company.
By utilizing supplies of new milk in Switzerland, they apply information picked up in their country
to set up Europe's first creation for the condensed milk in Cham. They begin providing Europe's
factory towns with the item under the Milkmaid brand, promoting it as a long-life option in
contrast to new milk. In 1875, the founder of Nestlé's, Germany drug specialist Henri Nestlé,
dispatches his flour with milk in Vevey, Switzerland. It joins dairy animals' milk, wheat flour, and
sugar, and Nestlé creates it for utilization by babies who can't be breastfed, to handle and
lowered high death rates. Around this time, Henri Nestlé begins utilizing the now known as the
Nest logo.

Since 1912, Nestlé has been sustaining Malaysians through the quality of the brands and items,
while keeping up Halal greatness and trustworthiness (Nestlé, 2020). Today, Nestlé Malaysia
has 6 factories and hired more than 4,600 workers across the country, creating more than 500
Halal-affirmed items. Huge numbers of iconic brands have become a part of Malaysian families
for ages including Malaysian top picks, for example, MILO, MAGGI, NESCAFÉ, and KitKat. By
having available in the country and the hearts of Malaysians for longer than a century, Nestlé
Malaysia is immovably dedicated to offering the absolute best in quality, sustenance, and taste.

Nestlé Malaysia Bhd was recorded on the Bursa Malaysia in 1989. The company is listed under
the consumer sector in Bursa Saham. To identify the size of a company, market capitalization is
an accurate benchmark where it states that Mega company has over 200 billion market
capitalization, Large company have around 10 to 200 billion market share, Middle company has
around 2 billion to 10billion market capital, Small company has 300 million to 2 billion market
capitalization and Micro company have 50 million to 300 million market capital (Seth, 2019).
Nestle Malaysia Bhd had 32,830 billion market capitalization, this proved that the Nestle
Malaysia Bhd is a large company equivalent with most of the known company in this world.
Nestlé Malaysia Bhd is one of the leaders in their field industry that rules the consumer sector in
Malaysia. Nestle Malaysia Bhd new interim dividend date 10 November 2020 was given RM
0.70 sen per share (Malaystock.biz, 2020), this proved that many investors invest in the
company due to the stability, slow growth rate, and also low risk at loss due to the oddly the
company to become volatile as the market capital 30.830 billion. The P/e ratio of Nestle
Malaysia Bhd is 59.47 (Malaystock.biz, 2020), this proved that the investor willingly to invest
more compare to the company profit due to the trust that had been created. The ROE (return on
investment) of Nestle Malaysia Bhd is 93.03(Malaystock.biz, 2020), this also proved that the
company's ability to make a profit based on the investment is undoubtedly great and
unquestionable.
MARKET ENVIRONMENT

Macroenvironment: Competitors

The fact that Nestlé Malaysia was a pioneer in the consumer industry of Malaysia yet different
competitor who is giving intense rivalry to Nestle, such as Petra Foods Limited,
Chocoladefabriken Lindt and Spruengli AG, Yeo Heap Sang Limited(Yeo’s) and Mail Dairy
Industry Co., Ltd (Selvam, N.D). Nestlé Malaysia has an unmistakable preferred position over
the previously mentioned organizations of its essence in Malaysia for longer than a century at
this point. Nestlé Malaysia had the option to arrange a decent and believed dissemination
channel and a colossal retail organization. The trust value picked up by Nestlé among the
Malaysian public is work in a long time on difficult work and quality items and shifted scope of
costs. In this manner, even after confronting firm rivalry with the previously mentioned
organizations in chocolates, dairy items, and other bundled food items, the organization can
keep up the main concerns of its benefit and misfortune proclamations alluring for its
speculators and great picture openly.

Microenvironment: Cultural

Malaysian culture is no uncertainty of having light food at steady stretches and the youthful
horde of Malaysia likes to have great nourishing food in this way Nestle has incredible breadth
there. As the majority of the Malaysian is Muslim(Selvam, N.D), Nestlé assures that all items
produced, imported, and conveyed by Nestlé Malaysia are guaranteed HALAL by approved
Islamic confirmation bodies (Selvam, N.D). Having been pioneering Halal in the Malaysian food
and beverages industry since the 1980s, Nestlé Malaysia right now creates more than 500 Halal
items (Nestlé, 2020).
REFERENCES

1. Selvam, V. (n.d.). Nestlé in Malaysia Having. Retrieved November 11, 2020, from
https://www.academia.edu/8799248/Nestl%C3%A9_in_Malaysia_Having

2. Nestlé (2020). Nestlé in Malaysia. Retrieved November 11, 2020, from

https://www.nestle.com.my/aboutus/nestle_in_malaysia

3. Malaystock.biz (2020). NESTLE Share Price Movement. Retrieved November

12, 2020, from https://www.malaysiastock.biz/Corporate-
Infomation.aspx?securityCode=4707

4. Nestlé (2020). Our Halal Promise. Retrieved November 11, 2020, from
https://www.nestle.com.my/our-halal-promise

5. Seth, S. (2019). Market Capitalization Defined. Retrieved 20 November 2020,

from https://www.investopedia.com/investing/market-capitalization-defined/

6. Mowbray, S (2017). A Brief History of the Nestlé Brand. Retrieved 11 November

2020, from https://theculturetrip.com/europe/switzerland/articles/a-brief-history-
of-the-nestle-brand/