Sunday, November 29, 2009

Can Country Compete with Nestle?

In our last class we discussed whether Country Juice is a competitor of Nestle. As both sell juices we could assume they are competitors. However we must take other things into consideration as well. For example Nestle markets its juice to slightly more affluent upper middle class people who wouldn’t mind paying an extra 5-10 rupees for a juice. Country on the other hand targets those who earn much less, probably lower middle class who prefer the cheaper product.

Also both companies are not in the same league. Nestle is a brand with worldwide recognition and a reputation for high quality whereas Country is merely a local company. And it is difficult to consider them competitors since Nestle’s resources are far greater than Country’s.

7 comments:

Haider said...

hmm.......interesting, however i think what must be taken into account is that "value-added.... thingy" we talked about as well. So a person might not mind paying 5-10 rupees extra for that product. Along with a brand reputation Nestle offers a higher quality product. This is the the reason, I don't understand how Country CAN be considered Nestle's competition, because they are totally different products(Milk Pak and Olpers is competition, Milk Pak and Olwel{the low fat milk} is not). But as far as competing with Nestle is concerned, I believe it is very much possible that Country comes out with an improved product with a catchy marketing strategy. Maybe if the youth is targeted, they could could give Nestle a run for their money. E.g. with an improved product they could set their prices at 14-15 (Nestle is 17 i guess?) this way they could get the good of both sides. Because I don't think Nestle can go further in terms of pricing or quality over here. If they do. The competition would change completely e.g. Nestle could decide to compete with Minute Maid for pulpy juices etc.

Haider said...
This comment has been removed by the author.
Syed Ahmad Hashmi said...

Nice Addition brother.

Faizaan Ali said...

i agree with you that Country can try and compete with Nestle but it wont be so easy considering Country's lack of resources to establish that image

Rana Aqeel Akhtar said...

according to me... if we are talking about juices then COUNTRY is competitior for nestle. nestle jucies are 4-5 rupees more than COUNTRY which is nothing. we all know that nestle product quality is better than COUNTRY. but we can't ignore it and say that COUNTRY can't compete with nestle. it can if they can improved their product quality and their strategy.

Haider said...

hmmm..... you have your point man. But i don't know if this example fits here, but a few years back Shezan started a new brand of juice "Twist(or Twister)" and they have had a very good run and are still in business. I don't know if Shezan's and Country's resources are comparable, but if Country chooses to improve their product and its image on the lines of Nestle, there's nowhere Nestle can go. It's already at the top.

Rana Aqeel Akhtar said...

here is a simple question:
do you think COUNTRY and SHEZAN juices are competitors for NESTLE juices???