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Advantage Of Nestle

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Nestle can benefit the investment to promote the products in rural distinct. It will help Nestle (Ghana) to reach to the majority of the population and have control of the market from both sides.

Competition by Market share
Nestle powdering cocoa drinks consisted of Chocolim and Milo. The two products are similar with sixty percent of the sales from Milo and forty percent from Chocolim. Chocolim is targeting rural areas and low-end urban market whilst Milo is one of the premier brands and targeting the high-end of the market.
Nestle brands are sold at return of 5% to 10% over competitors due to sense of better quality in the market. As I mentioned before The Cocoa beverage market is divided into three segments: Premium Segment, Mass Market and Institutional Market. Nestle managers forecast their share is 80% in the cocoa beverage market on the other hand other observers believe share of the company was closer to 55%.
Remarkable competitors for Nestle are Bournvita and Richoco, produced by Cadbury (Ghana) with a forecast 20% to 40% market share. Cadbury (Ghana) is 100% owned by Cadbury Schweppes (U.K) and has more than 100 employees. Another entrant is state-owned Cocoa Processing Company (CPC) which produce Golden Tree Vitaco Instant Drinking Chocolate. An additional competition is coming from imports, the most significant one is Ovaltine, marketed by NABB Brothers, one of the leading distributor in terms of supermarket products. Milo is the leader in the premium segment,

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