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Running Head: NESTLE ENVIRONMENTAL INFLUENCERS 1

NESTLE ENVIRONMENTAL INFLUENCERS 4

Environmental influences that impact prices and marketing effort of Nestle Purina

Aretha Ribeiro Monteiro Pereira

Southern States University

February 17, 2021

Environmental influences that impact prices and marketing effort of Nestle Purina

Every business must analyze the environment in which it is operating in in order to make sound decisions lest it becomes irrelevant in the very market it has been operating for years. With branches in over 190 countries, Nestle needs to conduct an environmental analysis on both the internal and external factors that can affect its prices and marketing strategy. Political interference is very critical in influencing the prices and marketing effort because whenever political leadership in a country changes, there are likely to be new policies affecting import/export, taxation rate and even peace and stability. When taxes and import levy increases, the price will increase and the vice versa is true (Varma, & Ravi, 2017). A good example is when there was political unrest due to Brexit, Nestle Purina was highly affected and had to relocate to Poland, sales, prices, and marketing efforts were hardly hit by the political environment. Political stability is key for the business success.

Economic environment is another influencer which can determine whether prices go up or down or whether or not the business will make losses. The price of the raw material for Nestle Purina largely depends on China and the USA. When there are price wars between the two countries and there are trade sanctions, the price of raw materials will rise up and definitely have a ripple effect on the prices. When prices go up, marketing effort will be affected because the consumers will opt to get supplies from the competitors of Nestle Purina. Economic environment and stability therefore plays a very important roles in ensuring that the price is fairly charged and the marketing efforts bear fruits. China and the USA are the major consumers of Nestle products and economic sanctions between the two countries is likely to bring the business down (Akpoviroro, Amos, & Olalekan, 2019). On the social environment, the management must ensure that the attitude, changing in demography like migrating from UK to Poland and the buying behavior is treated with utmost care to win customer loyalty. Once the customers are loyal, it is easy to thrive in the market.

References

Akpoviroro, K. S., Amos, A. O., & Olalekan, A. O. (2019). Exploring the Link between Competitive Strategies and Organizational Performance in Beverage Industry. (A case of Nestle PLC).

Varma, G. R., & Ravi, J. (2017). Strategic Analysis on FMCG Goods: A Case Study on Nestle. International Journal of Research in Management Studies, 12-22.