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Nestle presentation

  2. 2. NESTLE
  3. 3. The nutrition business - Health and Wellness “Our core aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition 'Good Food, Good Life'. Nestle Nutrition program:  products for infants  young and elderly  health conscious consumers  Nestlé Home Care (high-nutrition foods and nutrition-related services)
  4. 4. According to the Ansoff Matrix, diversification is the point where the company moves away from existing market and existing products. The strategy of NESTLÉ when launching the nutrition business is to achieve different markets through different products. It is a competitive advantage that NESTLÉ has created recently. However this strategy does not drive NESTLÉ to a Blue Ocean as it does not create an unknown market. The competition still exists in a red ocean, where many companies try to get greater share of existing demand.
  5. 5. NESTLÉ´s new strategy doesn’t satisfy the Sequency of BOS. The reasons are for the Price, which is not accessible to the mass of buyers and also because of the Cost, as the company had to spend a lot on R&D for the new range of health and wellness products.
  6. 6. Cost Drivers Nestle's market leadership and leading brands provide economy of scale which is important as NESTLÉ has high product development costs. It takes advantages on country specific differences,addapting it´s products to the host country´s. Market Drivers The presence of global customers is a market driver that could be related to NESTLÉ´s need for internationalization.
  7. 7. Competitive drivers Interdependence between countries increases the need of internationalization specially companies like NESTLÉ, which the parent country´s market is too small and the competition is fierce. Globalized competitors would pressure NESTLÉ to adopt an international strategy, as they would be competing with them inside NESTLÉ´s in the domestic market.
  8. 8. Government drivers NESTLÉ´s strategy in foreing markets avoid the disadvantages of policies issues, operationg mainly through joint ventures and partnerships with local companies avoiding this risks. “Part of Nestle's recent success has been down to its ability to weather currency and raw material price Fluctuations. Considering the strategy of acquisition the company will be able In integration of these acquisitions will only improve profits further”
  9. 9. Unique capabilities: NESTLÉ exploits advantages in technologies and scientific capabilities around the world. It has strong R&D investments in many countries. Product tehcnology centers are present in 34 countries and 4 in-house fundamental research centres counts with partnerships with universsities around the world in order to exchange experiences with their centres and explore overseas knownledge in the filed of new technologies and development.
  10. 10. NESTLÉ international strategy is global. The coordination of the activities is high and Cofiguration of Activities is disperse. Uses international value Networks.
  11. 11. Joint ventures and alliances NESTLÉ owns some world´s well known brands across diverse products categories. It´s diverse portifolio is it´s global leadership. Enters foreing countries through joint ventures and alliances that avoid the risks of lack of knownlege on target country
  12. 12.  1/3 of the Britain population has not a perception of the NESTLÉ name. The company fail in the UK in what concerns linking it´s name to it´s well known brands. Less then 5% of NESTLÉ´s total profit is from UK market.  The marketing strategies in the UK market are weak. There is a need for consolidation of the advertisement in a global pattern. In the UK NESTLÉ works with some local agencies.  CEO is not likely to standardization of products, as he thinks food needs to be to customized to the local market conditions in each country.  The NESTLÉ brand needs to be more evident in the packaging in the UK for gaining the credibility the brand has all over the world.
  13. 13.  The company owns 32 billionaire brands, that generate more than CHF1 billion ($1.13 billion) in revenues annually.  In FY2012,these billionaire brands achieved 7% growth in revenues through organic means.
  14. 14. MARKETLINE.COM, 2013. Nestle SA. Available: 4E6B-95D2-40255DDFB362. Viewed 6 July 2013. TUNGATE, M., 1999. Nestle makes moves to befriend the British. Marketing, , pp. 15. COMPANY SPOTLIGHT: NESTLE' 2007, Marketwatch: Food, 6, 6, pp. 30- 37, Business Source Premier, EBSCOhost, viewed 5 August 2013 COMPANY SPOTLIGHT: Nestle' 2004, Marketwatch: Drinks, 3, 11, pp. 21- 25, Business Source Premier, EBSCOhost, viewed 5 August 2013. MINTZBERG, LAMPEL, QUINN and GHOSHAL, 2003. The Strategy Process: Concepts, Contextes, Cases. Pearson, Ed.4. New Jersey, pp. 115-208.