Gap Analysis: For Nestle Company - Research Paper Example

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Nestle S.A is a Switzerland based company that had begun as a producer of condensed milk. The company was founded in 1886 by Henri Nestlé who was a pharmacist by profession. Nestle has become one of the largest FMCG companies in the entire world. …
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Gap Analysis: For Nestle Company
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The business of the company in the U.K. is one of the oldest ones. The purpose of this paper is to conduct a GAP analysis of Nestle in context of the U.K. market. The first section of the paper provides a basic understanding of the GAP concept. This is followed by identifying three major GAPs in the current business of Nestle and the final section prioritizes the strategy that must be followed by the Nestle to overcome the GAP.
GAP analysis is one of the most effective marketing tools that are used to find the existing gaps in the business and find ways in which these gaps can be removed to gain competitive advantage over rivals. The management literature identifies that there are four major types of gaps namely usage gap, product line gap, competitive gap and distribution gap. The schematic diagram below shows the types of gap for a company in any country.
The usage gap refers to the extent of demand that can be generated in the country for the subsequent periods which provides the basic framework for planning. The distribution gap refers to the loss of sales arising from places where the company does not distribute products but its competitor does. Product gap refers to the loss of sales due to variations of competitor’s products in the market and finally competitive gap refers to the loss of sales arising from factors like better image of competitors.
Market Gap: The current opportunity for Nestle arises from the diversification of the products in markets. ...Download file to see next pagesRead More
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