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End-To-End Case Study on the Business Model of Nestle | IIDE

By Aditya Shastri

Nestle India Ltd has a strong presence in milk and nutrition, drink, prepared plants, cooking aids, and chocolate, and is one of the leading players in the FMCG segment. In the food industry, the company is involved. Nestle India manufactures branded products, including Nescafe, Maggi, Milkybar, Kit Kat, Bar-one, Milkmaid, and Nestea.

This blog discusses the business model of Nestle, its revenue model, value proposition, target market, and other characteristics. We’re quite sure that you have a different view of Nestle as a firm by the end of this insightful blog. You can also read our other blog about the Marketing Mix and Marketing Strategy of Nestle.

 Let us begin the case study by learning more about Nestle.

About Nestle

Nestlé is a conglomerate company based in Vevey, Vaud. Nestlé S.A., a Swiss global food and drink processing company. Since 2014, it has become the world’s largest food company with revenue and other measures. In the edition of the 2016 Forbes Global 2000 list of the largest public corporations, it was placed no 64 on the Fortune Global 500 in 2017 and no 33. Products of Nestle are baby food, food for medical use, frozen food, pet foods, pet foods and snacks, coffee or tea, clothing, dairy products. 29 Nestlé brands, including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, and others, have over CHF 1 billion (approximately US$1.1 billion) in their annual revenues. Twenty-nine Nestlé brands, including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer, and Vittel generated yearly sales of more than 1 billion CHF (approximately $1.1 billion).

Nestlé has 447 plants in 189 countries and has about 447 employees, 339,000 people. It is among L’Oreal’s primary stockholders, the largest cosmetic corporation in the world. The company is focusing its efforts consistently on better understanding India’s changing way of life, anticipating the requirement of consumers to supply their product offerings to taste, nutrition, health, and health. Nestle offers a comprehensive range of high-quality, secure food items at competitive costs for large consumers.

Business Model of Nestle

Nestle has managed to find a comfortable position in every family with its business approach of value building and its rock-solid marketing mix. Naturally, since its inception, it has come a long way. And this makes FMCG the world’s number one brand. Nestle has seven vertical businesses with health, nutrition, and health goods. The stars in the BCG Matrix include dairy goods, powdered, and liquid drinks, ready dishes and culinary aids, and clothing business sectors. So, here is the business model of Nestle.

1. Channels

• Retail Stores
• Mail Order 
• Media Contacts
• Social Networks
• Club Nespresso
• Nespresso boutiques

2. Key Activities

• Food processing
• Manufacturing
• Quality control
• Production of natural body and aroma components.

3. Key Resources

Our agricultural raw materials are supported, mainly through trade channels, by coffee, cereals, vegetables, fruit, herbs, sugar, and spices. All suppliers around the world have a large variety and must comply with the quality standards of Nestlé. The suppliers with which they operate are audited routinely and raw materials are frequently checked to ensure that they continue to match these criteria.

4. Nestle’s Key Points of Business

• Ensures sustainable organic sale growth, enhanced margins, and consumer-relevant nutrition for all regardless of the degree of income.
• Improvement of operational efficiency to raise the underlying earnings from trade.
• Discipline and clear priorities for allocation of resources and capital.

5. Revenue Model of Nestle

Net profit for the Nestlé Group increased from approximately CHF 7 billion in 2017 to over CHF 12.2 billion in 2020. Nestlé has more than 2000 brands in over 180 nations and is one of the largest food and beverage companies in the world. In Vaud, Switzerland, Nestlé is a worldwide food and drink company. In 2019, Nestlé’s largest market, the Swiss enterprise, accounted for almost 46% of its global turnover in America. In Europe, the Middle East, and North Africa, almost 29 per cent were earned that year. Powdered and liquid beverages, which amounted to 23 billion Swiss francs this year, were the best-selling items of the Nestlé Group based on global trade. in 2019. With a total of just around 15 billion Swiss francs, Nutrition and Health Science came in second, yet in terms of organic growth, it was the highest in the product category that year. The category increased in the measured period by approximately four and a half per cent.

6. Services

Nestle will play a key role in establishing consumer loyalty with the pre-selling and post-sales services. Post-sales services are seen by modern customers as crucial as marketing and promotion. In today’s technologically advanced society, the force of negative e-WOM due to poor support services cannot be undermined. To avoid damaging brand reputations, the company should analyze its support operations and utilize them as a vehicle to promote a favourable word in its mouth because of fast, prompt, and effective services of support.

7. Positioning

The placement procedure is to create the desired picture in the mind of a customer for a business and its items. In terms of customers, Nestle KitKat has a competitive advantage over competitor chocolates. Nestle’s name and emblem alone are a brand that shows customers that attract them to their products. Thanks to the brand name, everybody knows that Nestle has a big quality mark for the client, which makes it easy to convey.

8. Target Market of Nestle

The objective market is the process of developing market coverage plans; which market segments offer Clogard the best opportunities may fundamentally be shown by the group of clients that have the fundamental requirement to buy the item from the organization.

Nestle KitKat is a product that everyone can love. However, when we launch this product, the market targets should also be selected. KitKat’s main target market will be children aged 8-14 because their children like chocolate very much. Youth aged 15-30 are the secondary focus. It is also possible to target both men and women with higher salaries. In urban rather than rural locations, the KitKat can be easily available. In the case of marketing initiatives, mid-size persons with good salaries in particular from urban areas should be targeted.

9. Value Proposition

The objective of Nestle is to improve the quality of life and contribute to healthy living and a healthier future. To improve the livelihoods of 30 million communities directly related to their operation. 

• Nescafe: soluble coffee
• Nespresso: premium restaurant coffee and home education and growth of lifespan.
• Dolce Gusto: different beverage machines and capsules

Nestle is the world’s biggest food producer and market leader in coffee and mineral water, featuring products including milk-based food and culinary aids, cereal, immediate coffee, and food for babies. In addition, Nestle is an organic design model. It is versatile and highly adaptive to the external competitive environment as well as decentralized decision-making authorities. Although Nestle Company has fulfilled its goals. Besides, we know that some theories, such as the law of demand, maybe applicable in our reality when the cost of the product reduces. The demand for the quality of the product will also rise, vice versa. We know the theories of micro and macroeconomics. In reality, the buyer wants to buy the product that has the lowest price instead of the highest.

Have you enjoyed our job? Would you like to find out more? Please visit our website for further information. You may also take the Free Digital Marketing Masterclass by Karan Shah if you’re interested in digital marketing.

Thank you for taking the time to read this and please share it with your friends if you enjoyed it. In the comment area below, please let us know what you think.

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

Wow amazing info, revenue graphs is mind blowing all the other factors With a focus on Nutrition, Health, and Wellness, Nestlé aims to meet the evolving needs of consumers worldwide. Business model of nestle is amazing

Seriously the pointers helped a lot to understand the business model of Nestle

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Research Paper on Nestlé Company Sample

By: Max Malak

Writing a  research paper  is a common assignment for students of high schools, colleges, and universities, alongside  essays . Studybay has selected one of the food and beverage industry giants, Nestlé, and created a sample research paper for you to use as an inspiration and reference for your own written works. Read ahead for informative and well-structured research on the Nestlé Company.

Company Overview

Nestlé company swot analysis , interview results, survey takeaway.

The topic of this research is Nestlé Company, one of the most renowned food and beverage manufacturers in the world. The goal of this study was to get an overview of Nestlé's business model and see how some of its consumers perceive this brand. The report is based on the results of web research, a questionnaire, and a round of interviews.

The questionnaire and interview were conducted at  Tunku Abdul Rahman College  in Setapak. For the questionnaire, 50 second-year students from the Diploma in Business Administration (2DBU) program were selected, while only 10 of them participated in the interview.

The key findings of this research showed a very positive response to Nestlé products and the brand's image. The results demonstrated that 50 students trusted the Nestlé Company and have grown to be loyal consumers of the Nestlé products over time. Notably, the only exception was a student who was not interested in Maggi. However, she did like Nestlé's other products.

All in all, the research results showed a high level of consumer satisfaction in the target group and incredible loyalty to the brand throughout the years. 

Introduction

The history of Nestlé started out in 1866 when the  Anglo-Swiss Condensed Milk Company  was created in Cham, Switzerland, with the participation of Charles and George Page, brothers from the US. 

Henri Nestle was a pharmacist who was fascinated by the power of nutritious food supplements to overcome the challenge of malnutrition. In 1867, he created an infant formula for a baby who was struggling to accept mother's milk by using his product called Farine Lactee Nestlé. 

In 1905 Henri's company from Vevey merged with Anglo-Swiss, one of its biggest competitors, forming the foundation of what we know as the  Nestlé Group  today. Henri Nestlé used his surname, which means 'little nest', in both the company name and logo. Throughout the years, it has become a symbol of security, family, and the company's care and attitude to nutrition. 

Nestlé's high-quality products with outstanding taste, alongside the company's innovations, have shaped it into a leading Food Company, employing more than  273,000 people  worldwide.

The objective of this report is to study Nestlé Company's profile and get an overview of its food products and business strategy by retrieving data from reliable sources and conducting a SWOT (Strength, Weakness, Opportunities, Threats) analysis.

This study also aims to gather information on how some consumers perceive the company's brand and its products via the information received from interviews. This research also provides recommendations on what could be improved in Nestlé products and how the Nestlé Company could satisfy its customers' needs better.

The report investigates the general profile of Nestlé products preference by 50 Tunku Abdul Rahman College students of the Business Administration program (DBU 2) only. Other Tunku Abdul Rahman campus branches were not included in the research.

Key Findings

Here is a brief overview of the Nestlé Company in numbers according to its 2020  Annual Review :

• over 273,000 employees
• operating in 186 countries
• 14 billion total group salaries and social welfare expenses
• 2.6 billion corporate taxes paid in 2020
• over 1,210 products launched addressing special needs
• over 33 million kids received aid through Nestlé for Healthier Kids
• 354,900 farmers trained thanks to capacity-building programs
• 368 factories achieved zero waste for disposal

The company takes care of  multiple product lines  and brands, including:

• Baby foods - Cerelac, Gerber, NaturNes
• Bottled mineral water - Nestlé Pure Life, Perrier, S.Pellegrino
• Breakfast cereals - Cheerios, Fitness, Lion, Nesquik Cereal
• Chocolate & confectionery - Aero, Cailler, KitKat, Milkybar, Nestlé Les Recettes de l'Atelier, Orion, Quality Street, Smarties, Toll House
• Coffee - Nescafé, Nescafé 3 in 1, Nescafé Cappuccino, Nescafé Classic, Nescafé Decaff, Nescafé Dolce Gusto, Nescafé Gold, Nespresso
• Culinary, chilled and frozen food - Buitoni, Herta, Hot Pockets, Lean Cuisine, Maggi, Stouffer's, Thomy
• Milk products - Carnation, Coffee-Mate, La Laitière, Nido
• Drinks - Milo, Nesquik, Nestea
• Food service - Chef, Chef-Mate, Maggi, Milo, Minor's, Nescafé, Nestea, Sjora, Lean Cuisine, Stouffer's
• Healthcare nutrition - Boost, Nutren Junior, Peptamen, Resource
• Ice cream - Dreyer’s, Extrême, Häagen-Dazs, Mövenpick, Nestlé Ice Cream
• Petcare and pet food - Alpo, Bakers Complete, Beneful, Cat Chow, Chef Michael's Canine Creations, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet, Purina, Purina ONE, Pro Plan

For such a large company, it is crucial to have a holistic approach to business, considering its vast market. Nestlé Company takes care of its customers' well-being beyond the products' distribution. For instance, it provides  wellness tools  such as the  BMI Calculator  and  Waist Hip Ratio  Calculator. Using these tools allows everyone to assess, control or sustain their body weight, avoid obesity, and come up with a healthier diet.

Besides, every Nestlé's product features a  Nutritional Compass . It provides all the essential nutritional information to the consumers to enable them to make healthier choices when buying their product.

Nestlé research and development adjust to the local consumer trends in lifestyle, culture, and purchasing power. Besides, the company also conducts research to boost the nutritional value and flavor of the products. 

Nestlé Company offers great job positions to thousands of people worldwide. Its organizational  principle  is all about Trust, Respect, Involvement, and Pride. Furthermore, Nestlé company also provides a Management Trainee program ( NMTP)  to develop the skills of its employees and provide them with growth opportunities. 

Conducting a SWOT analysis was an integral part of the current research, providing useful insights on Nestlé's operations.

• Reputation - the brand has over 150 years of history delivering top-quality products to the market
• Global brand - the company sells its products in over 186 countries and is #82 on the  Fortune Global 500  list.
• Diverse product portfolio - Nestlé Group consists of over  2,000 brands . 
• Large pool of employees - the brand has over 273,000 workers worldwide.
• Sustainable development - Nestlé has a goal of achieving  zero environmental impact  in its operations by 2030.
• Strong R&D organization - the brand has the largest  R&D organization  in the F&B industry, with over 3,900 employees at more than 23 locations.
• Water issues - in 2018, the company was accused of  illegally pumping water  in 6 countries lacking it.
• Misleading labeling - some of Nestlé's products were admittedly having  wrong nutritional claims  on their packaging.
• Failed testing - in 2017, Maggi failed  lab testing  in India, resulting in Nestlé's boycott. 
• Child and slave labor usage - the company has been  sued  multiple times for the exploitation of child and slave workers in chocolate production.

Opportunities

• Startup support - the company has a lot of potential in helping young F&B brands develop and grow.
• E-commerce - Nestlé can improve its online shopping offers for their clients worldwide.
• Labeling - the brand should focus on providing accurate labeling at all times.
• Partnerships - Nestlé can form partnerships with other giant multinational corporations.
• Product line expansion - the company can continue to diversify and expand its product line to suit every taste.
• Competition - Nestlé competes with such brands as Mondelez, Mars, Kraft Foods, Danone, and many others.
• Water resources - the company's manufacturing is highly reliant on water, which is a scarce resource in many regions.
• Government regulations - Nestlé has to adapt to the arising legislation at all its distribution locations.
• Price inflation - as some commodities become more expensive, the brand may need to resort to increasing the product prices. This can potentially make Nestlé become unaffordable for some of its target customer groups.

Ten students were selected to participate in an interview round to contribute to the purpose of this study. Based on the findings, most students have been using Maggi and Milo for a long time:

• 3 students - 19 years
• 4 students - 18 years
• 2 students - 15 years
• 1 student - 3 years 

Milo turned out to be the most purchased Nestlé product in the target group. The students claimed it was good to drink Milo for breakfast. Some of them also mentioned they have been consuming it since their childhood. 

Nescafé was the next purchased product among the interviewed, while the third place was taken by Kit Kat. Maggi was in the fourth position, and ice cream by Nestlé took the last place in the top-five list. 

Some students concur that the Nestlé product was quite good in comparison to other brands available in the market. Yet, most students admitted they wanted Nestlé to introduce new products to the local market. A few interviewees mentioned new flavors for yogurt and ice cream.

Out of the 50 respondents from the DBU second-year students who took the questionnaire, 49 were satisfied with Nestlé products and described Nestlé as a trusted company, as it has been producing high-quality products for over a century. 

The respondents claimed it is easy to buy Nestlé products at any store. Some students suggested doing more promotions to increase customer awareness and purchasing rate.

According to this research, there are two major issues faced by the consumers when it comes to purchasing Nestlé Company products. The first one is the controversy faced by the brand in recent years, including water, labeling, and child and slave labor scandals. The second issue was the idea of the bad health impact of the majority of Nestlé's products.

However, these problems do not prevent a large number of customers from purchasing Nestlé products due to its outstanding taste and affordable pricing. Besides, the company seems to be tackling a variety of issues, including sustainability and nutritional value improvement, which makes it attractive for its audience.

If you need help writing a research paper or any other  assignment  for your educational institution, our Studybay experts are happy to help.

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Nestle: Production and Operations Management Analysis Report

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Introduction

Nestle production and services, nestle operations management, nestle operations strategy.

Bibliography

Nestle is a nutrition company that aims at enhancing better and quality livelihoods to people. It has varied products that mainly help in improving healthy lifestyle of the people.

Over the years, the company has used its resources and technology to find sustainable solutions to socio-economic needs of its customers.

Some of these needs include poverty eradication, better sanitation and food security. This gives the company a competitive advantage over many other companies.

Apart from corporate social responsibility, the company created Nestle nutrition, a business strategy meant to focus on the core nutrition business. Therefore, strengthening the leadership in this market is crucial for their success.

This market is the primary motivation for the purchase of its product based on the nutritional value. Nestle nutrition is autonomous global business unit that is meant to increase the competitive edge of the company.

The unit is charged with the profit and loss responsibility in its utmost domains, which include Infant Nutrition, Healthcare Nutrition, and Performance nutrition.

The latter is aimed at delivering superior business performance to consumers by offering science based nutritional products and services.

To enhance its competitive advantage, the company has Corporate Wellness Unit, which focuses on integrating nutritional value to food and beverage products. It encompasses communication effort, which brings the necessary expertise in consumer benefits.

Nutrition has been the cornerstone of Nestle Company since its inception in the year 1867. Therefore, most products and services provided by the company revolve around nutritional needs.

The company strives at providing quality products and services which will help in promoting a better and healthier well-being of its consumers. Nestle has gained a world reputation for its consistency in providing quality and safety products.

Many of the products generated by Nestle Company are beneficial based on the nutritional aspects. They include breakfast cereals, milk and other dairy products as well as bottled water which has diverse accrued advantages.

Many of these products dominate in both local and global markets. The company has ventured in chocolate and confectionery industry. Some of these products have been in existence for over a century.

For example, S. Pellegrino and Nestle Moca are known in Italy and Brazil for many years. The most revered world brands include Nescafe, Nestea, Maggi, Buitoni, Purina and Nestle. Other brands, such as Milo and Nespresso, sell in many countries.

Nestle takes a holistic approach in providing nutrition to the people. This entails devising of wellness programs that facilitate the people to make their living healthy.

The services include baby’s development, Sports Nutrition and Weight management. No doubt, Nestle brand portfolio practically covers all food and beverages categories.

The running of the company’s business is governed by two fundamental documents, Nestle Corporate Business Principles and Nestle Management and Leadership Principles.

The two provide the code of ethics that governs the policies and strategies of the company. They outlay the tone and style of approach to the running of the business.

The company’s business strategy is to produce and market its products in a way that creates sustainable value to all stakeholders including the employees, consumers and business consortium in the areas that the company operates. The company does not favour short-term profits over long-term business orientation.

The company recognizes that consumers have a legitimate interest in the behaviour and the success of the company’s business, hence it embraces cultural and social diversity.

The company is not discriminatory in management of the business on the basis of nationality, religion, race or age. The company does not involved in political issues.

The rich cultural diversity helps in building innovative ideas for generating products which would meet the needs of the society.

The company has not been left behind in environmental conservation. It has invested heavily in conservation of the environment. In a bid to save the environment, the company has endeavored in recycling of waste materials and packaging.

Nestle pioneered the Kyoto Protocol, an agreement to control carbon dioxide emissions in combating global warming. The company was the first to produce biodegradable containers as an alternative to plastics for packing their food products.

Nestle is a global organization, and its international strategy should be the heart of its competitive domain. The competitive strategy of the company mainly focuses on foreign investment in dairy and other food businesses.

When operating in a more developed environment, Nestle strives to attain the economies of scale via foreign direct investment. In a developing environment, Nestle Company goes the local way by utilizing the local raw materials and employing the appropriate brand.

Nestle Company strikes strategic partnerships with other large companies. For example, the company entered an alliance with Coca-Cola Company to produce ready-to-drink beverages, such as tea and coffee.

This was in a bid to utilize the established bottling system and necessary expertise in beverage preparation. The Company has employed the strategy of acquiring the local companies to form an established autonomous regional manager who is aware of the local markets dynamics.

Nestle company has left a significant mark in food and nutrition sector, hence becoming very competitive in the scope of business.

Franzen, G. & Moriarty, S. The Science and Art of Branding . New York: M.E. Sharpe, 2008.

Kapferer, J.N. The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term 4 th . London, UK: Kogan Page, 2008.

Nestlé LC1. ‘ Nestle’s Competetive Strategy ‘. Castelar Articles , 2005. Web.

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IvyPanda. (2019, April 8). Nestle: Production and Operations Management Analysis Report. https://ivypanda.com/essays/production-and-operation-management-of-nestle-company/

"Nestle: Production and Operations Management Analysis Report." IvyPanda , 8 Apr. 2019, ivypanda.com/essays/production-and-operation-management-of-nestle-company/.

IvyPanda . (2019) 'Nestle: Production and Operations Management Analysis Report'. 8 April.

IvyPanda . 2019. "Nestle: Production and Operations Management Analysis Report." April 8, 2019. https://ivypanda.com/essays/production-and-operation-management-of-nestle-company/.

1. IvyPanda . "Nestle: Production and Operations Management Analysis Report." April 8, 2019. https://ivypanda.com/essays/production-and-operation-management-of-nestle-company/.

IvyPanda . "Nestle: Production and Operations Management Analysis Report." April 8, 2019. https://ivypanda.com/essays/production-and-operation-management-of-nestle-company/.

Table of Contents

Learnings from nestle marketing strategies , 10 key takeaways from the nestle marketing strategy.

The mother bird feeds its two young nestlings, and below comes the 'Good Food, Good Life' slogan. With a US $303 billion value, the leading health, nutrition, and wellness company– Nestle, stands out in the market with strong customer loyalty. It is the world's 22nd most valuable company by market cap. The well-crafted and consistently implemented Nestle marketing strategy has helped the brand cater to the needs of its consumers and their families worldwide, helping them live healthier lifestyles. Learn the Nestle marketing strategy and carve a distinguished presence in the market.

Discover 10 important marketing tactics by exploring the Nestle marketing strategy. 

1. Appeal to Every Consumer with Multiple Price Strategies 

With an aim to be affordable for the masses, the Nestle marketing strategy incorporates multiple pricing tactics. 

Nestle KitKat Sizes with Different Prices

If you go through any of Nestle's products, say KitKat or Maggie, you will realize that they offer several packaging options. Thus, targeting different income groups, Nestle appeals to all. Its mini packs are loved by people living alone and those with a low income. Nestle's statistics reveal that a chunk of its revenues comes from its beverages—particularly premium Nescafe.

Key Takeaway: Opt for a multiple-price strategy to capture a wider audience and be available for all. With set market prices, you generate high sales with low earning margins. However, with premium products, you get high returns, but the low sales risk stays attached. Strike a balance between value-based and competitive pricing strategies to stay afloat.

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2. Having a Multifarious Portfolio Lowers Risk 

Thriving the tough competition is a challenge, especially in the FMCG industry. Nestle has been wisely using product diversification to survive with successful results.

Nestle Products

For instance, on the detection of a harmful ingredient, Maggie was banned in India. Nestle chose to go for a diversification spree; they revamped Maggie and added several more products to its portfolio. The company smartly introduces horizontal product diversification whenever it hits a wall. 

Maggi Products

From coffee to milkshakes to other beverages, breakfast cereals, seasonings, infant foods, soups, chocolates, refrigerated foods, and pet foods, Nestle offers a wide range of products. 

Key Takeaway: With a diverse portfolio, you can lower risks and enhance revenues. 

3. Product Mix Strategy Attracts Cost-Conscious Prospects

Nestle benefits from its large product line by employing a product mix strategy . It often releases buy-one-get-one price promotions, special offers, discounts, deals, and giveaways. 

Bundle deals are perfect for introducing a product or marketing unpopular items. The Nestle marketing strategy adopts bundle deals from time to time, often during festive seasons.

Key Takeaway: A product mix strategy allows you to increase the visibility of your low-growth products and make the premium ones appear affordable. It also helps you sell low-demand stock.

4. Set Consistent Goals 

With a clear vision, Nestle has been able to create a special space for itself for over 150+ years. The company doesn’t deviate from its original mission– Good Food, Food Life. Back in the 19th century, when Henri Nestlé studied the rise in infant deaths, he introduced nutrition-boosting baby formula. 

When women entered the workplace, Nestle launched instant meals. Even today, the brand targets everyday kitchen challenges and strives to improve the quality of life. 

Key Takeaways: A strong commitment to goals gives you a competitive advantage in the market. Being consistent in your message while solving the grievances of the people can help you gain brand loyalty.  

5. Try Product-Driven Advertising When You Have a Large Product Line

Although many brands prefer a customer-centric strategy, the Nestle marketing strategy is largely product-based as it has an extensive product line. 

For instance, Nestle’s KitKat advertisements are not limited to any age group. The brand presents the product as a light snack and rarely uses demographics to personalize the advertisements.

Key Takeaways: Brands belonging to the FMCG industry must opt for product-driven advertising to increase the visibility of their diverse product line.

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6. Localize Your Products 

Nestle efficiently adapts its products to the local market. For instance, in Japan, the company markets coffee-flavored candies. Since Japan is traditionally a tea-drinking nation, Nestle introduced these candies so that kids could develop a taste for coffee. Later it introduced Nescafe and KitKat, and they were widely accepted. Today, Japan has 300+ KitKat flavors. 

Nestle also localizes its products for Indians by introducing Maggi Atta Noodles, Maggi noodles without garlic and onion, and the Maggi Special Masala. 

Nestle Localized Products

Key Takeaways: Localization is a crucial part of business strategy that ensures the satisfaction of a wider customer base. 

7. Maintain Brand Equity With Consistent Brand Image

The more recognizable the name of a brand, the higher your brand value. Nestle has exceptionally strong brand equity as it focuses on its product quality and consistent brand image in its packaging.

The color red has been associated with KitKat for ages. Although the company once tried to change the color to blue in the 1990s, it didn’t work. They changed it to the classic red. 

Key Takeaways: Brand equity helps you earn customer loyalty and creates your unique identity, giving you a competitive advantage.

8. Co-Branding Comes With Profit

Haven’t you come across Android KitKat and Nespresso Capsules? The Nestle marketing strategy also incorporates co-branding as and when needed.

Nestle collaborated with Google and launched an operating system named Android KitKat. The brand was facing a pet product scandal, and this move overshadowed the crisis.

Recently, Nestle joined hands with Starbucks and entered the new product development phase. Together they launched Starbucks Nespresso Capsules.

Key Takeaways: If your brand reaches a stagnant position, hunt for companies that complement your products and opt for co-branding promotions. It is an excellent strategy to broaden your reach. 

9. Promote Sustainability To Create a Mark 

The Nestle marketing strategy constitutes special efforts for sustainability and reducing its carbon footprint.

Recently, Nestle announced its aim to use food-grade recycled plastics. It also plans to invest over 700 million in Nescafe’s sustainable coffee production. It took the initiative to fight against deforestation.

Nestle Climate Change Efforts

Thus, consistent efforts have made Nestle a globally recognized sustainable brand. It was recognized by UN Global Compact for its efforts.  

Key Takeaways: Sustainability imprints a positive impact on your brand. The efforts help you take on a fair share of ethical responsibility while subtly shifting environment-conscious people’s minds toward your brand.

10. Digital Marketing is a World of Success

Nestle posts quality content on each of its brands’ YouTube channels. It has informative ‘how-to’ videos, cooking tips, product insights, and more.  

Its ‘Meri Maggi’ page gained up to 571,000 subscribers. The Nestle marketing strategy relies heavily on video content. It also has other established avenues for sharing information, such as the search engine optimized Nestle child nutrition website.

It serves as a comprehensive guide on nutrition for mothers. It also features a community aspect in addition to the expert advice section. 

Nestle Child Nutrition Website Content

Nestle also employs consistent efforts on Instagram, Twitter, and Facebook. It runs campaigns and posts eye-catching images and videos while also benefiting from the influencer community.

Key Takeaways: Leverage the power of digital platforms for marketing your business. It is a great way to engage your customers and help them beyond selling products.

The Nestle marketing strategy has enough in store for startups and established brands to learn from. Want to learn more? Enroll in our Digital Marketing Program and secure exciting digital marketing jobs in top tech companies.

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Nestlé Business Model Analysis

Nestlé is a powerhouse of consumer brands spanning baby foods, bottled waters, powdered drinks, cereals, coffee, drinks, pet care, and more. The company made over 94 billion Swiss Francs in 2022 (over $100 billion), with high margins on its powdered and liquid beverages (coffee, cocoa, and malt beverages and tea categories).

While many people might not relate directly to Nestlé as a brand , billions of people across the world relate to the brands it owns. You might be surprised by the portfolio of brands that Nestlé has, spanning from baby foods to pet care.

Table of Contents

Nestlé origin story

Nestlé history dates back to the late 1860s when the Anglo-Swiss Condensed Milk Company was founded.

Henri Nestlé, the founder, worked out an instant formula powdered milk product, which would become the company’s core product.

By 1905 a merger with Anglo-Swiss would form the Nestlé Group ever.

Since the company has managed to pass two World-Wars and several economic crises successfully.

What brands does the company own?

A powerhouse of consumer brands

Although not many might relate directly to the Nestlé brand , in many countries worldwide, most people can relate to the portfolio of brands owned by the company, which spans from baby foods to pet care.

Baby foods brands

Nestlé Brand Website

Nestlé baby foods brands comprise:

• Gerber Graduates.

Bottled water brands

Nestlé water brands comprise:

• Nestlé Pure Life.
• Poland Spring.
• S.Pellegrino.

Cereals brands

Nestlé cereal brands comprise:

• Chocapic.  
• Cini Minis.
• Cookie Crisp.
• Estrelitas.
• Nesquik Cereal.

Chocolate & confectionery brands

Nestlé chocolate and confectionery brands comprise:

• Nestlé Les Recettes de l’Atelier.  
• Quality Street.
• Toll House.

Coffee brands

Nestlé coffee brands comprise:

• Nescafé 3 in 1.
• Nescafé Cappuccino.  
• Nescafé Classic.
• Nescafé Decaff.
• Nescafé Dolce Gusto.
• Nescafé Gold.

Culinary, chilled and frozen food

Nestlé culinary brands comprise:

• Hot Pockets.
• Lean Cuisine.
• Stouffer’s.

Diary brands comprise:

• Coffee-Mate.
• La Laitière.  

Drinks brands comprise:

Food service

Food service brands comprise:

• Lean Cuisine.  

Healthcare nutrition

Healthcare brands comprise:

• Nutren Junior.  
• Peptamen.  

Ice cream brands comprise:

• Dreyer’s.  
• Häagen-Dazs.  
• Nestlé Ice Cream.

Petcare brands comprise:

• Bakers Complete.
• Chef Michael’s Canine Creations.
• Fancy Feast.  
• Purina ONE.

A business model still, in part, powered by powder

As highlighted in its financial statements:

Powdered and Liquid Beverages covers our coffee, cocoa and malt beverages and tea categories. This business features some of our most iconic brands, such as: Nescafé, the world’s favorite coffee brand ; Nespresso, our premium coffee experience; and Milo, the world’s most popular chocolate malt drink

What’s next for Nestlé?

Nestlé business strategy

As the ‘Good Food, Good Life’ company, we enhance quality of life and contribute to a healthier future. Winning with consumers is the source of our sustainable financial performance and our way to earning trust and maintain our market leadership. Based on a compelling Nutrition, Health and Wellness strategy , our company delivers sustainable value over the short term and the long term.

That is how Nestlé highlights its strategy by emphasizing how it moves around three key points:

Increasing growth   through innovation , differentiation and by being relevant to our consumers. We have committed to reach mid single-digit organic growth by 2020.

Improving operational efficiency   with the goal to increase our underlying trading operating profit margin to between 17.5% and 18.5% (from 16.0% in 2016), and

Allocating our resources and capital with discipline and clear priorities , including through acquisitions and divestitures.

In short, Nestlé focuses on generating demand for its current brands while improving its operational efficiency and allocating massive amounts of capital to buy and sell relevant consumer brands, which helps the company to keep its dominance in the consumer food and beverage industry.

Value Proposition

• Nutrition and Wellness : Nestlé’s value proposition revolves around providing nutritionally balanced and delicious food and beverage products that contribute to consumers’ overall health and wellness. With a focus on quality ingredients, innovative formulations, and portion control, Nestlé aims to meet the diverse dietary needs and preferences of individuals and families worldwide.
• Quality and Safety : Nestlé is committed to upholding the highest standards of quality and safety across its product portfolio. Through rigorous testing, sourcing of raw materials, and adherence to food safety regulations, Nestlé ensures that its products are safe, reliable, and of the highest quality, earning the trust of consumers globally.
• Variety and Choice : Nestlé offers a wide range of food and beverage products spanning multiple categories, including dairy, coffee, confectionery, pet care, and health science. By providing a diverse array of options, Nestlé caters to different tastes, lifestyles, and dietary preferences, allowing consumers to find products that suit their individual needs and preferences.
• Sustainability and Responsibility : Nestlé is committed to sustainability and corporate social responsibility, aiming to create shared value for society and the environment. Through initiatives such as responsible sourcing, water stewardship, and community engagement, Nestlé strives to minimize its environmental impact and positively contribute to the communities where it operates.

Revenue Model

• Product Sales : Nestlé generates revenue primarily through the sale of food and beverage products across various categories, including coffee, dairy, nutrition, pet care, and confectionery. These products are sold through a combination of distribution channels , including retail outlets, e-commerce platforms, and foodservice channels, catering to both consumer and institutional customers.
• Brand Licensing and Royalties : Nestlé earns revenue through brand licensing agreements and royalties by granting third-party manufacturers and distributors the right to use its brands and trademarks on products in specific categories or regions. These licensing arrangements provide Nestlé with additional revenue streams while leveraging the strength and recognition of its brands.
• Acquisitions and Investments : Nestlé strategically invests in acquisitions and partnerships to expand its product portfolio, geographic presence, and market share. By acquiring complementary businesses or investing in emerging brands, Nestlé aims to capture new growth opportunities and strengthen its competitive position in key markets.
• Nutrition and Health Services : Nestlé’s health science division offers specialized nutrition and health services, including medical nutrition products, supplements, and personalized nutrition solutions for patients with specific dietary needs or medical conditions. Revenue from health science services contributes to Nestlé’s overall revenue diversification and growth strategy in the healthcare sector.

Distribution Strategy:

• Retail Partnerships: Nestlé products are widely available through partnerships with major retail chains, supermarkets, and convenience stores. These partnerships ensure that consumers can easily access Nestlé brands during their regular shopping trips.
• Online Sales: Nestlé has embraced e-commerce and online retail platforms to reach consumers directly. Through its official websites and e-commerce partnerships, customers can purchase Nestlé products for home delivery or in-store pickup.
• Wholesale Distribution: Nestlé also utilizes wholesale distributors to supply its products to smaller retailers, restaurants, and businesses. This approach helps expand its market reach beyond large retail chains.
• Global Supply Chain: Nestlé maintains a robust global supply chain network to ensure efficient production, distribution , and delivery of its products. This network spans multiple regions and countries to meet local demand.
• Customized Approaches: Recognizing the unique characteristics of each product category, Nestlé tailors its distribution strategies accordingly. For example, perishable goods like ice cream may require specialized cold-chain logistics, while bottled water can follow a more conventional distribution model .

Marketing Strategy:

• Brand Portfolio: Nestlé’s extensive brand portfolio allows it to cater to various consumer preferences and market segments. Each brand is strategically positioned to resonate with its target audience.
• Digital Marketing: Nestlé embraces digital marketing channels to reach consumers where they spend their time online. This includes social media advertising, influencer partnerships, and targeted online campaigns.
• Content Marketing: Nestlé produces valuable and engaging content related to nutrition, health, and wellness. This content not only educates consumers but also reinforces Nestlé’s commitment to these principles.
• Sustainability Messaging: Nestlé emphasizes its sustainability initiatives and responsible sourcing practices in its marketing efforts. This resonates with environmentally conscious consumers and aligns with Nestlé’s corporate values.
• Product Innovation: Nestlé invests in research and development to create innovative products that meet emerging consumer trends. These innovations are often accompanied by marketing campaigns that highlight the unique features and benefits of new offerings.
• Health and Wellness Focus: Given the increasing consumer focus on health and wellness, Nestlé’s marketing often highlights the nutritional value and health benefits of its products.

Organizational Structure:

• Product Categories: Nestlé organizes its business into various product categories, such as baby foods, bottled waters, cereals, coffee, confectionery, pet care, and more. Each category has dedicated teams responsible for product development, marketing , and distribution .
• Regional Presence: Nestlé operates in numerous regions worldwide, each with its own management teams. This regional structure allows Nestlé to adapt to local market conditions and preferences.
• Functional Leadership: Nestlé has functional leaders overseeing critical areas like research and development, human resources, product supply, ethics and compliance, analytics and insight, branding, legal, sustainability, communications, and finance. These functions support the overall business strategy .
• Acquisition and Divestiture: Nestlé’s organizational structure accommodates strategic acquisitions and divestitures as it continues to evolve its brand portfolio to align with consumer preferences and market dynamics.

Growth Strategy:

• Innovation: Nestlé aims to increase growth through innovation , differentiation, and relevance to consumers. This involves continuous product development and adaptation to changing consumer preferences.
• Operational Efficiency: Nestlé strives to improve operational efficiency to enhance profitability. This includes optimizing supply chain management, production processes, and cost control measures.
• Resource Allocation: Nestlé allocates its resources and capital with discipline and clear priorities. This involves strategic acquisitions and divestitures to ensure its brand portfolio remains relevant and competitive.
• Sustainability: Nestlé’s growth strategy also places emphasis on sustainability and responsible sourcing. This aligns with consumer preferences for eco-friendly and socially responsible brands.
• Market Leadership: Nestlé aims to maintain its market leadership by delivering sustainable value in the short term and long term. This involves winning consumer trust and consistently meeting consumer expectations for quality and innovation .

Key Highlights

• Diverse Brand Portfolio : Nestlé owns a wide range of consumer brands across various categories, including baby foods, bottled waters, cereals, coffee, confectionery, pet care, and more.
• Origin Story : Nestlé’s history dates back to the late 1860s when the Anglo-Swiss Condensed Milk Company was founded. Henri Nestlé’s instant formula powdered milk product became the core of the company.
• Baby Foods: Cerelac, Gerber, NaturNes, etc.
• Bottled Water: Nestlé Pure Life, Perrier, Poland Spring, etc.
• Cereals: Chocapic, Cookie Crisp, Nesquik Cereal, etc.
• Chocolate & Confectionery: KitKat, Milkybar, Smarties, etc.
• Coffee: Nescafé, Nespresso, Dolce Gusto, etc.
• Culinary & Frozen Food: Maggi, Lean Cuisine, Stouffer’s, etc.
• Dairy: Carnation, Coffee-Mate, Nido, etc.
• Drinks: Milo, Nesquik, Nestea, etc.
• Ice Cream: Häagen-Dazs, Mövenpick, Nestlé Ice Cream, etc.
• Petcare: Purina, Beneful, Fancy Feast, etc.
• Financial Performance : In 2022, Nestlé made over 94 billion Swiss Francs (over $100 billion) in revenue. The powdered and liquid beverages segment, including coffee, cocoa, malt beverages, and tea, contributed significantly to its revenue.
• Business Strategy : Nestlé’s strategy is centered around enhancing the quality of life and contributing to a healthier future. They focus on growth through innovation , operational efficiency, and allocating resources with discipline. Their aim is to reach mid single-digit organic growth by 2020 and improve their profit margin.
• Future Outlook : Nestlé aims to generate demand for its brands, improve operational efficiency, and strategically allocate capital for acquisitions and divestitures to maintain dominance in the consumer food and beverage industry.

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Nestle Case Study: How Nestle’s Marketing Strategy Helped Them Grow as a Brand-2023

How many of you can answer this?

What is one common thing among Nescafe, Caregrow, KitKat, and Maggi?

Any guesses?

Yes, they are world-renowned brands, are familiar names in every household, and are products you must have consumed in your life at one point.

Anything other than these?

Yes. All these belong to one and only Nestle.

Be it in the fresh smell of hot coffee, a short break, or a bowl of tasty noodles- we cannot deny that all of us have enjoyed the awesomeness of Nestle’s products.

The brand has come a long way, crossing so many hurdles and achieving success, and it keeps growing.

Today, nestle is a brand that everyone is familiar with and uses in their day-to-day life.

Curious to know how?

In this Nestle case study, we are discussing everything about Nestle company, the marketing mix of Nestle, nestle competitors in India, marketing sales promotion techniques of nestle, and much more.

Nestle owns more than 2000 brands, from global stars to local ones.

How did Nestle achieve this level of success?

The brand has been in the market for more than 150 years, but many companies got this opportunity but failed. Nestle survived.

What is the secret of Nestle’s success?

This Nestle case study shows you a glimpse of nestle strategy and what digital marketing and social media strategies they followed that led to achieving this success.

So, let’s start by understanding a bit more about Nestle as a company.

Nestle had come a long way from when it entered the market by selling infant food in the 1860s with a motto to reduce child mortality rates.

Gradually, it became a renowned name in the wellness, healthy food, and pet care industry with its evergreen tagline, “Good Food, Good Life.”

Now, you must be thinking that how did Nestle reach this position? How can a company build a legacy which is so powerful that it has stood still since its birth?

The answer to this may lie in Nestle’s digital marketing and functional strategy.

Nestle Case study: Introduction of Nestle company

Nestle is a world-renowned manufacturer of packaged foods and beverages. It is the world’s largest food manufacturer operating in more than 186 countries and with over 2000 product brands.

The brand came to India in 1956. Since that time, from selling its first milk product in the 1960s to selling a wide variety of Nestle products in India, Nestle has grown exponentially in India.

With such exponential growth, Nestle’s umbrella keeps widening day by day. They are not only the largest food and beverage company in the world but also one of the best companies that have effortlessly collaborated with the online world and achieved immense success.

Gradually, Nestle India started making its presence felt in the FMCG sector, and now the brand enjoys a good market share in the food and beverage industry.

Being the most extensive food and beverage brand in terms of revenue, the pricing strategy of Nestle company, along with its targeting and positioning system, has played a vital role in reaching the position where it is currently.

Let us find out how it has served the Indian market with its products and services.

Nestle offers products in breakfast cereals, beverages, dairy, chocolates, nutritious foods like vending, and food services.

Popular food products like Kit Kat, Maggi, Milkmaid, Polo, and Nescafe come under Nestle’s products sold in India.

For more than 150 years, this iconic brand has been applying its expertise in Health, Nutrition, and Wellness to help its customers, pets, and families live a healthier and happier life.

However, they believe what is good today might not be suitable for tomorrow.

So, they keep exploring and focusing on pushing the boundaries to find more to experiment with foods, nutrition, and beverages.

Nestle unlocks the power of food to improve the quality of life for everyone, not just today but for generations to come.

The brand focuses on bringing more pleasure and enjoyment to the customers, how they can enable better health, and how they can make the best nutrition affordable to everyone.

Not just these, but the brand tries new ways to protect and improve natural resources.

History & Founder

Nestle was founded in 1905 by the union of the Anglo-Swiss Milk Company, set up in 1866 by brothers Charles and George Page and Farine Lactee Henri Nestle, founded by Henri Nestle in 1866.

Nestle originated in 1860 when two separate Swiss enterprises later created Nestle.

In the following decades, the two rival companies grew their businesses throughout the United States and Europe.

In 1866, George Page and Charles Page, brothers from Lee County, Illinois, USA, formed the Anglo-Swiss Condensed Milk Company in Cham, Switzerland. The company’s British operation started in 1873 at Chippenham, Wiltshire.

It was during the First World War when the organization grew significantly, and again during the Second World War, the company increased its offerings beyond its initial condensed milk and infant food products.

Nestle Case Study : Facts & Figures

Here are a few interesting numbers about Nestle that sets it apart from others.

• Nestlé is the world’s largest food and beverage company.
• The brand has 276000 employees
• Nestle has acquired 30 companies

Nestle Case Study: Nestle competitors in India

Nestle has many major customer brands like Carnation, Kit Kat, Nestle-water, and Stouffers, among others.

Thirty of its brands netted more than $1 billion in earnings in the year 2010, which makes the company a vital force in the worldwide food and beverage industry.

With around 42 % of its sales being in North America, Nestle is one of the most geographically distinct companies in the food and beverage industry. It places it in a position that helps it edge over its competitors.

Its brands are well established in a considerable market share in leading economies like U.S. and Europe.

Danone and Unilever are important competitors for Nestle. These two are giants in the food and beverage industry, like Nestle.

In 2010, Unilever posted around 26% growth in yearly profits because of its accelerated sales in the food and beverage industry, especially ice cream, frozen food, tea-based beverages, and cooking products.

On the other hand, Danone stated around a 38 percent increase because of its improved share prices. In addition, a rise in its yogurt sales also enhanced the growth in earnings.

However, nestle handles positioned itself in the market by adopting a new accounting method which aided a decline in its cost of sales.

The company could also incorporate discounts, allowances, and promotions for its retailers through sales profits rather than the marketing line.

Though its sale was lesser for a year, nestle pricing strategy helped them match its peers, which in turn, made it a famous manufacturer even though the competition was so high.

Being the world’s most popular food manufacturer, nestle has intense competition with its rival company, Unilever.

Unilever has around 1,49,000 employees and operates in 160 countries, with its headquarters in London for food, home, and personal care.

The company is trying hard to beat Nestle in terms of the quality of their product, which has made Unilever the second company in the Western European ready meals market with a market share of around 8.6%, i.e., 0.3 points behind the iconic Nestle.

Nestle’s Target Audience and Products for Each Segment

The unique thing about Nestle is that it offers a wide range of products that covers audiences of different ages, from 2-year-old to working professionals.

Here’s a breakdown of Nestle’s Target Audience and the products meant for them.

• Target Audience
• Working Professionals
• General Audiences
• Koko Krunch, Caregrow, Lactogrow
• Sunrise, Nescafe
• Maggi, KitKat, Milkmaid

Everyone, especially coffee lovers, will know how Nescafe is a big hit among working professionals.

Nestle guarantees that Nescafe is the only coffee that would keep professionals fresh throughout the day, and who does not want to feel fresh?

Regarding kids, parents blindly trust the product “Caregrow” by Nestle. The product consists of cereals to keep young kids healthy.

However, nestle has several other products like KitKat, Milkmaid, and Maggi for the general audience.

It is how Nestle has designed something for everyone in India. In the coming section, we will dig into how Nestle has advertised itself and its products in the digital world.

Nestle’s Digital Marketing Strategies

By now, you must have understood that Nestle is the world’s largest food and beverage company in terms of revenue. So, it might be basic information for many of you.

But what if we say Nestle always tries to be one step ahead regarding marketing strategies and policies?

It has always focused on the most updated marketing ways no matter, whether it is digital marketing strategies or offline strategies.

Nestle’s marketing strategies will teach you to build marketing strategies that work and get a positive response from customers.

Let us start with Nestle’s Digital Marketing Strategies that must follow if they want to succeed as a brand.

Partner with influential celebrities

Nescafe, a product of Nestle, collaborates with celebrities to put forward their message and create more noise around their brand.

A few years ago, they announced Bollywood actress Disha Patani as their brand ambassador.

Recently, they launched a campaign with famous content creators called “Karne Se Hi Hona Hai,” which means “Only doing will make it happen.”

They created this campaign during the Covid Pandemic to inspire people and encourage them to keep working hard towards their dreams no matter their situation.

Through this campaign, they targeted the youth of India and asked them to dream, act, and achieve success.

• Run campaigns that foster connections and bring customers together

An ordinary 37-year-old guy named Arnaud, with 1,2000 Facebook friends, was challenged by the company to catch up with his friends over a cup of coffee.

So, he filmed these meetings and turned them into a 42-minute online video documentary. During the sessions, Arnaud enjoyed a cup of Nescafe with his pals.

The documentary was a big hit on social media. It got almost 8 million views on Facebook, around 63,050 likes, 4,850 comments, and 5,550 shares. 

The Facebook Page of Nescafe saw an increase in the number of fans by 400%.

Fans were excited by the documentary and wanted to know how to turn their online friendships into real-life relationships.

As a reaction, it created the “le Defi Nescafe,” a Facebook campaign to allow winners to reinvent the same experience.

More than 26,000 people applied, around 19,000 liked it, and nearly 1,725 shared.

Instantly, Nescafe became an online sensation by marketing itself as an item that stimulates connections and friendships.

2. Localization of Products

Localization is adapting an organization’s products to the local market. Nestle has gone huge on localization in various markets where it now manages.

For example, consider Japan, where the organization’s primary foray was through coffee-flavored chocolates.

Japan is traditionally a tea-drinking country, and the company established these candies so that kids could also get to know the taste of coffee.

Later, it introduced Nescafe and KitKat, and what happened is history.

3. Content Marketing

Nestle has created many video content on every brand’s YouTube channels. The content ranges from informative “how-to” videos to cooking tips to better insights on using the right products.

For example, the “Meri Maggi” has more than 530 videos with more than 5,71,000 subscribers.

Though video content is an expanding channel in Nestle’s marketing strategy, it has recognized other avenues to share relevant information with its consumers.

4. Out-of-Home Advertising

Nestle’s brands, including Maggi, Milo, KitKat, and Nescafe, use different ways to grab customers’ attention.

Whether benches, hoardings, or banners, Nestle’s brands have made it to the limelight for their contextuality and creativity.

What are the advantages of using OOH ads? First, most people correctly receive these ads. They are worth sharing.

People can take photos online, send them to their friends or relatives, and even marketers discuss them.

In addition, with the help of OTT, they can reach many people at a low cost.

Also, Nestle’s marketing strategies are exceptional and generate some customers.

5. Co-branding

Have you ever heard about Android KitKat?

A few years back, Google and Nestle united and invented an Android KitKat operating system.

Nestle was facing a new scandal with their pet product and wanted to capitalize on the image of Google. This movie created a buzz and surpassed the crisis.

Lately, nestle signed another deal with Starbucks to kill two different birds at a time.

First, the brand entered the new product development stage-i.e., roasted beans- and improved its brand by discovering a wide range of Starbucks Nespresso Capsules.

Did you understand how co-branding helped Nestle?

Co-branding is great for stepping into a new market and widening your reach. This marketing benefits startup that wants to create brand awareness or launch a new item.

It would help if you found companies that complement your products and collaborated with them to run co-branding promotional ads.

Nestle – Challenges Faced

Undoubtedly, Maggi was the most popular instant noodles brand in India. The brand had established its presence in India’s food industry, but suddenly it became controversial.

State food regulators stated that Maggi contains Monosodium Glutamate and lead above the recommended limits, which were dangerous, especially for kids.  

When nestle encountered lab results, it said that they had a world-class quality control procedure and that their products were safe for consumption.

Ultimately, the National Food Regulator FSSAI ordered to ban on the selling of Maggi, including product recall.

Consequently, various state governments imposed a temporary ban on selling Maggi noodles in a few states. As a result, the future of the company suddenly started looking dark.

Another acquisition of Nestle by the critics was they accused that the brand discouraged mothers from breastfeeding.

They showed that their baby formula is much healthier than breastfeeding, although they didn’t have any proof to support this.

It resulted in a boycott of Maggi for the first time after its launch in 1977 in the United States and slowly spread to Europe.

Several reports have acknowledged the widespread use of child labor in Cocoa production, slavery, and child trafficking, throughout the Western African plantations on which Nestle and other important chocolate companies depend.

As per the 2010 documentary, The Dark Side of Chocolate, the kids working are usually 12 to 15 years old. Nestle faced criticism from The Fair Labour Association for not properly checking.

Different Campaigns by Nestle 

• Ask Nestle Campaign

In this campaign, Nestle India launched a digital tool, NINA, which stands for Nestle India Nutrition Assistant on AskNestle, which used Artificial Intelligence to offer real-time nutritional information on the foods we consume.

In addition, it assisted Indian parents in designing a nutritious customized meal plan for their kids below 12.

This campaign by Nestle was India’s first artificially intelligent assistant that permits one to find nutritional information for kids.

So, this is how Nestle India set its foot on digital fronts and started driving organic traffic and improved overall engagement compared to competitors.

2. #WeMissYouToo Maggi Campaign

Maggi suffered a massive loss after it got banned as Maggi contained a high amount of Monosodium Glutamate (MSG) and lead content- more than what is allowed.

It was hard for them to hope for a comeback, but Maggi did their best and experienced huge sales. As a result, the price and volume of Maggi are now much more significant than before.

How did they do so?

They did so through their different marketing campaigns. One among them was the #WeMissYouToo campaign.

In addition, they published a few videos showing how people are kissing Maggi and how their life was better with Maggi.

Videos showed how Maggi has been a staple food for many and how its absence had affected their lives. 

In campaigns, characters addressed Maggi as “yaar” or a “close friend” who is always there for them when in need. 

Therefore, they considered Maggi’s return as a huge celebration that brought people’s life to normalcy.

3. A Campaign for kids: Poora Poshan Poori Tasalli

Nestle Caregrow started this campaign in 2019. The campaign targeted couples living in the cities who had kids between the age of 2 to 5 years.

India is where parents are very concerned about their child’s health and nutrition right from birth. Nestle kept this in mind and decided to portray this care through its campaign. 

The brand portrayed how Indian mothers worry about their kids’ proper nourishment.

The brand came up with a new product, Caregrow, which controls a child’s hunger and offers all the essential nutrients for enhancing the child’s immunity and overall development.

4. Celebrate the Breakers- KitKat campaign

Across the world, people consume around 12 billion KitKat chocolates every year.

It is one of Nestle’s most famous chocolate products available in India. The company also released “KitKat Senses, a premium “slow-whipped” chocolate.

Nestle sought to influence Instagram to support its “Celebrate the Breakers” campaign by raising awareness and message association among enthusiastic 15- to 34-year-old Instagram followers.

Nestle came up with a new worldwide advertising campaign that takes a different approach altogether with a famous slogan, “Enjoy a break, enjoy a KitKat.”

“Celebrate the Breakers” was a new idea that identified the different forms of breaks that generally “breakers” take.

The animated movies showed KitKat chocolates are the best for enjoying a break in life.

Instagram was the appropriate platform for Nestle to showcase this idea graphically.

The brand posted a series of pictures with the hashtag “# mybreak over seven weeks ,” showing how people enjoy different types of breaks, like sleeping at their workplace, enjoying a party, or listening to their favorite music.

The images of KitKat match efficiently with its customers, as Instagram is a place where people share their daily moments and experiences.

Future Plans of Nestle

Nestle planned to invest Rs. 5,000 crores in India in the coming 3 ½ years, as per Mark Schneider, the company’s CEO.

The FMCG company, which has nearly 2,000 brands across the globe, believes that this initiative will help Nestle to improve its core business in India and enjoy new growth opportunities.

It marks the brand’s most significant investment in India since the year it started manufacturing.

Nestle is renowned in food, nutrition, health, and wellness.

Its competitive strategies mainly focus on overseas direct investment in ready-to-eat, dairy, and other food businesses.

Though there is rising competition, Nestle has remained on top for a long.

It maintains its dominance by balancing sales between high-risk and low-risk nations.

Over the years, Nestle has proven itself as a leader in the food and beverage industry with product innovation and innovative marketing strategies.

It creates campaigns that are memorable, relatable, and share-worthy.

As it is moving toward developing a solid presence in the future, digital marketing will play an essential role in the future growth of Nestle.

As Nestle continues to follow its values, mission, vision, and purpose, it will continue to grow. 

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• Research Assignment : NESTLE COMPANY
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Completed orders: 14, requirement, introduction, pestle analysis, porter’s five forces model    , recommendation.

Write a Research Report on NESTLE COMPANY.

In this present paper, we will discuss the analysis of the nestling company. The paper also analyzes the company by pestle analysis and porters five forces model. On the basis of the analysis, recommendations have been made. Nestle company is a transnational drink and food company that lies in food processing industry. Headquarter of the company is in Switzerland, and it is the largest food processor company according to the revenue of the company. The company produces medical food,coffee, breakfast cereals, ice cream, tea, and others. The total revenue of the company in 2015 is 88.8 Billion. The company was founded in 1905 by the merger of Anglo-Swiss Milk Company (v et al., 2016) .The company is primarily listed on the SIX Swiss exchange and then secondary listed on the Euro next. The company is having a wide range of portfolio which includes the huge range of products such as Nesquik, Nescafe, and others. The total employees of the company in 2015 were 335,000. The company serves its product across the world. The company operates in eighty countries, and the most profitable market is North America. The company has strong internationalization strategy which shows the commitment of the company towards its resources and development of the capability to the external environment.

The pestle analysis reflects the various external forces which influence the dynamics of an industry. These forces impact on the behavior of the consumers. The company has the ability to ensure a level of adoption, which is required for the various markets driven by different consumer behavior and cultures. 1. Political segment The political segment of the company is changing regulation which is surrounded by the actions of markets and foods standards. The international process is facing the risk due to the government stability in new emerging economies. The changes in the standardized practice of global regulation lead to the adoption by various political forces. The company faces various problems due to regulations in various countries which do not allow come products in various markets.  The company has to follow different political changes in the developing countries due to which the price of the product become expensive and citizens of developing country are not capable of buying various products (Steger et al., 2015). 2. Economic segment The knowledge of the change in economic rate, inflation rate, a level of income is required because it impacts on the economic stability of the company. The alteration in the budget of consumers and increase in the cost conscious consumer impacts on the profit margin of the company. The rise in the cost of raw material or increase in the demand of suppliers due to which price increases it leads to decrease the profitability of the company. The company faces the problem of economic changes in different countries due to which the problem of supplying the products to the consumers is faced by them. The price of raw material also increase due to which can cost of raw material also increases and selling price of the product is not afford by the consumers in developing countries (Loughlin et al., 2015). 3. Social segment It includes the change in the attitude of the consumers towards the nutrition and healthier products within the same product line by the initiatives of the government. The change in the lifestyle of the consumers by preferring home made products which impact on the sales volume of the company. The company needs to adapt various cultural settings which help to attract a large number of consumers. The personal approach should be used by the company for various promotional activities which help to understand the behavior of consumers. The company is viewed by the consumers as an agency for power in the large external environment. The consumer awareness is increased by social media due to which they want to probe in the manufacturing process. The company is using international standard of product manufacturing which helps to build the trust among the consumers towards the quality of the product (Macdonald et al., 2012).  4. Technological segment The rise in technology creates a large number of options for the consumers which develop the huge competition for the company to sustain in the market. The technical department of the company must be fuelled with innovation which helps to differentiate the product and create the brand image in the eyes of the consumers. The electronic commerce is the platform for the company which helps to develop the brand image through various promotional activities (Petruškevi?ius et al., 2014). 5. Legal segment The legal segment includes a change in the regulations and laws which impact the overall performance of the company. The company needs to adhere to global regulations and amendments across varied international markets (Modi et al., 2013).  6. Environmental segment The company must increase its attention towards the corporate social responsibility such as initiatives to the protection of the environment. The company also considers the packaging of products which must be recycled and does not harm the environment (Babatunde et al., 2012).

1. Bargaining power of buyers The consumers play an important role in terms of company’s performance so the reasonable value should be to the consumers at the time of accessing the position of the company. The bargaining power of consumers is very high in utilizing the various products of the company. The quality of productsmaintained by the company influences the choice of consumers despite various products served by the competitors. The consumer needs must be satisfied which helps to survive in the market by maintains a brand image in the eyes of the consumers. The company also cares about the health of consumers which is reflected in health and wellness programs of the company. Thus the bargaining power of buyer is high (Shankar et al., 2014). 2. Bargaining power of Suppliers The suppliers play an important role in building the brand's image in the eyes of the consumers by supplying raw material on time. The company is having the strong relationship with the suppliers which are necessary for producing agricultural and dairy products. The company is also focusing on developing a strong relationship with help to deliver the strong quality of its products. The company also guides the suppliers for working in an efficiency and effective manner which helps to reduce the redundant expenses. Thus the bargaining power of suppliers is high. 3. Threat of substitute The threat of substitutes is high because from bottled water to milk based products are a threat of substitute goods. The similar products are the arrays which compete directly with the products of the company. The local competitors of china in the same industry compete with the milk based products, so the must innovate their products continuously which helps to sustain in the market. The company has worked on the health and nutrients of the product for maintaining the customer loyalty and competitive edge in the market. 4. Threat of new entrants The company has the very large portion in food processing industry, and it is not common for the companies to quite well. Many companies try to enter into the same industry for gaining some amount of profit but still a threat of new entrants is low because the company is serving from decades by its superior quality of products which satisfies the need of consumers and which enables the company to get a high market share in the food processing industry. The company has constructed sixteen factories in china in 2000 (Njambi et al., 2015). The new entrants must attempt to seize a portion of company’s market share for its survival which is very difficult for the new entrants. The company is constantly targeting and producing its products through consumer focused strategy thus the threat of new entrants is low. 5. Threat of existing competitors The company is having very strong position in the industry of food processing, but the company has major competitors such as Group DANONE and Kraft foods. The companies are continuously competing with each other by its innovation and technology. The marketing and promotional activities of the company help to promoting the product effectively. The competition in food processing industry is violent which benefits the consumers to enjoy innovative products. The improvement in product qualities is persistently enjoyed by the consumers. Thus the threat of competitors is low (Robertson et al., 2014).

From the above analysis Following are the four recommendations:

1. From the pestle analysis it is reflected that environmental factors is the main problem of the  company so it is recommended that the company should adopt various corporate social responsibilities which helps to resolve the environmental problem by contributing towards the environmental health from various activities such as Go green campaign. The packaging must be recycled so that environment must not be harm.

2. Arising from porters five forces model it is reflected that legal factor is the main problem so it is recommended that the company should emphasize on strong business ethics in order to avoid various legal issues such as difficulty in adopting country’s laws and regulations. 

3. The company must generate the intensity to rivalry by providing high quality of product and services by adopting customer concentric strategy which helps to compete among the competitors in the same industry. The personal marketing must be done in order to understand the behavior of consumers which helps to satisfy their needs and demands. The company must use cost competitiveness which enables to generate higher revenue.

4. The bargaining power of consumers is high, so the company must provide speed service in order to satisfy the need of consumers which helps to build brands image in the eyes of consumers.

5. The threat of substitutes is also high so the company must continuously improve its product which helps to maintain the competitive edge in the market.. The strategy of the company must be created in such a manner which do not majorly impacted by the political, economic, legal and social environment. 

Nestle is the transactional food and beverage company which was founded in 1905. The company lies in the food processing industry. The company produces ice cream, coffee, tea, cereal breakfast and others. The portfolio of the company is very huge which consists of various companies such as Nescafe, Nesquik, and others. The pestle analysis describes that the change in government stability impacts on the operations of the company in various countries due to which the selling price increases which is not afforded by consumers thus the revenue of the company adversely affected. The changes in the rate of inflation and other economic factors increase the supply rate of raw material which impacts on the sales volume of the company. The consumer awareness is increased towards the healthy products by social media which impacts the taste and preference of consumers. The technological department of the change must continuously innovate in order to sustain among the competitors in the market. The global regulations must be adhering to the various international markets. The environment factors must be considered at the time of production. The bargaining power of buyers is high because it directly impacts on the demand for products. The bargaining power of suppliers is also high because they directly impact on the supply chain. The threat of substitute is also high because there is a large number of competitors who are providing the same quality of products. The threat of new entrant is low because the company is constantly focusing and satisfying the demand of consumers. The threat of existing competitors is also high because the competitors are also producing with innovative technologies. 

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Steger, J. (2015). Strategic Management of Mars Inc. A Combination of an Innovative Management Philosophy and Familial Eccentricity.

Macdonald, R. (2012). Unilever. A Strategic Analysis.

Babatunde, B. O., & Adebisi, A. O. (2012). Strategic environmental scanning and organization performance in a competitive business environment. Economic Insights-Trends & Challenges, 64(1), 24-34.

Shankar, N., & Perumal, P. V. (2014). A comprehensive strategic evaluation of success of Amul model. EXCEL International Journal of Multidisciplinary Management Studies, 4(6), 222-232.

Njambi, E., Lewa, P., & Katuse, P. (2015). Porter’s Five Forces Influence on Competitive Advantage in the Kenyan Beverage Industry: A Case of Large Multinationals.

Robertson, D., & Caldart, A. A. (2014). The Dynamics of Strategy. Journal of the Operational Research Society, 62(5).

(2016). Nestle.com. Retrieved 19 October 2016, from http://www.nestle.com/

Petruškevi?ius, J., & Granskas, J. (2014). Reducing “NESTLE BALTICS” vending machines idle time. Petruškevi?ius, J. Reducing “NESTLE BALTICS” vending machines idle time: bachelor thesis [Manuscript]. Vilnius, ISM University of Management and Economics, 2012.

Modi, S. (2013). Study on Food and Dairy Industry.

Loughlin, D. (2015). Global Summit of Pest Management Services.International Pest Control, 57(4), 216.

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Developing And Using Core Capabilities In Business Strategy: A Case Study Of Nestle

2,808 Words Published On: 12-03-2019

Background of Nestle

Research how organisations develop and use core capabilities into their broader business strategy. You should choose an organisation or business that has clearly identifiable core capabilities. You should also discuss how these activities and processes are essential in driving business strategy from a variety of perspectives (commercial).

The report focuses on the key products, services, and customers of Nestle Company which has been selected in the paper. Nestle is one of the leading companies which deals with various food and beverage products and services. The firm is rendering its products and services across the world to attain the competitive advantages in the market. In today’s era, the firm is expanding and flourishing its business across the world by offering innovative and tasty products to the customers. Further, the report depicts the business level strategy and core capabilities of the company. The key core capabilities are an essential part of the organization because it helps to make a strong position in the competitive market. It describes that how business level strategies are leading to core capabilities in the world. The firm also uses corporate-level strategies in order to overcome the competitors in the international market (Nestle, 2016).

Nestle is a Swiss international food and drink corporation with its headquartered is located in Vevey, Vaud Switzerland. It was incorporated in 1867 by Henry Nestle who was a trained pharmacist.  It is one of the biggest food companies in the world measured by the revenue and profit. The firm deal with various products such as medical food, baby food, breakfast cereals, bottled water, coffee and tea, frozen food, pet foods, ice cream and dairy products etc. Nestle brands include Nescafe, Smarties, Kit Kat, Maggi, and Nespresso. It is one of the biggest shareholders of L’Oreal which is the biggest cosmetics company. The company manages and operates 447 factories in more than 194 countries.There are approx 339,000 employees employed in the firm. In today’s era, the corporation is increasing its revenue and profit with maintaining sustainability in the organization. The firm introduced its chocolates in 1904 in the market (Nestle, 2016).

In 1930, Nestle introduced enormous new products such as Nescafe and Milo. Therefore, the company is increasing its revenue and profit day by day. Along with this, the firm uses marketing mix strategies, product growth strategies, and diversification strategies in order to beat the competitors in the market. Apart from this, the company uses personal selling, advertisement, and promotional strategies in order to promote and enhance the food products in the global market. In today’s competitive world, Nestle is number one food Group Company across the world. The main target market of the firm is kids, young girls and boys who buy food products on daily basis. The corporation uses several strategies to attract more people and to differentiate its products from the competitors in the market. Apart from this, marketing mix strategies are used by Nestle to stand out against the rivalries in the competitive market (Nestle, 2016).

Product and service description of Nestle

The company has approx 8,500 brands in over 80 countries in the world. Nestle provides a wide range of food products and services to the customers across the world. The products and services include coffee, chocolates, Nestle water, beverage products, frozen meals, ice-cream, baby food, tea, and pet foods. In this way, the firm has been able to maintain a dynamic position in the competitive market. Along with this, the organization uses innovative and new technologies to produce delicious food products to the customers across the world. In addition, home delivery is also provided by the firm to promote the products and services across the world (Nestle, 2016).

Nestle is one of the largest brands in the international market. The key core capabilities of Nestle have been discussed below.

• The firm maintains a unique team to understand the needs, expectations, and desires of the customers in the market. It helps to maximize and increase the revenue and profit of the firm.
• The firm has the capability to produce and launch more nutritional food and beverage products in the competitive market. Further, Nestle has been able to attract and retain more human resources in the international market. It is one of the biggest core capabilities of the firm.
• Along with this, the company is able to win and develop trust through quality among the customers in the world. This core capability provides a chance to increase the number of customers in the market.
• In addition, Nestle follows positioning strategy to make a strong financial position in front of customers in the competitive market (Varma & Ravi, 2017). Furthermore, the company wants to attract other well-known companies for joint ventures, strategic alliances, and partnership.
• Along with this, the firm is exporting its breakfast cereals to more than 130 countries.

A future roadmap has been created by Nestle with the help of effective and dynamic key core capabilities within the organization. The employees of the company are more capable to deliver the best products and services to the customers in the world. On the other hand, the company maintains unique core competencies which have been discussed below.

• Innovation and renovation are one of the significant core competencies of Nestle which help to introduce new products and services in the market. The firm has been able to make a separate portfolio by using and maintaining the core competency.
• Operation efficiency is another competency of the firm which helps to eliminate and reduce the wastage in the organization (Sethi, 2012). It also helps to increase and improve the performance and effectiveness of the workers.

These are two effective and attractive core competencies of the firm which helps to attract more consumers in the competitive market. By using these core competencies, the company can maintain a unique communication and collaboration with customers across the world. On the other hand, the firm uses tangible and intangible resources to overcome the competitors in the marketplace. The key core capabilities are also important to develop and build the business strategy within the organization. Nestle cannot use a business level strategy without key core capabilities and competencies. Mainly, the business level strategy outlines and explains the key core competencies and capabilities of the firm. The capabilities demonstrate the strengths of Nestle which helps to create a market share in the competitive business environment. Nestle assimilate the core capabilities into a business-level strategy to gain the competitive benefits in the international market (Lawrence & Beamish, 2012). The core capabilities are integrated into business level strategy in order to reduce and eliminate the risks and challenges of the market. In addition, business and growth level strategies help to measure and analyze the plans, strategies, and procedures of competitors in the global market. Furthermore, porter five forces model is used by the company to initiate the business level strategies with maintaining core competencies within the organization. This strategy also helps to assess and measure the needs, wants desires, expectations, and requirements of the customers across the world. The suppliers, customers, substitute’s goods, new competitors, and rivalry are the main and significant five forces of business level strategy. The firm has been able to make effective decisions by using business level strategy in the organization. Now it is assumed that there is a unique connection between key core capabilities and business level strategy (Furrer, 2016).

Key core capabilities of Nestle

There are three business level strategies are used by Nestle to attain the long-term success and growth of the firm. These strategies include cost leadership, differentiation, and focus strategies. The business level strategies have been discussed below.

Low-cost leadership strategy: Nestle is a well-known brand in the world. It purchases high quality of raw material from the various suppliers in the market. In this way, the company reduces the cost of raw material in the global market. The company focuses on the quality in order to achieve the goals and objectives through cost. The firm controls and manages the unnecessary costs to beat the competitors in the international market. The main aim of the current strategy is to achieve the operational efficiency within the organisation.

Differentiation strategy: It is the second important strategy of Nestle to stand out against the competitors in the market. The main aim of this strategy is to differentiate the products from the competitors (De Wit & Meyer, 2010). The other purpose of using this strategy is to develop and build a unique brand image and positions in the minds of customers. Currently, Nestle manufactures and produces more than 10,000 products under 8,500 different brand names. Along with this, the company uses pricing strategy, packaging strategy, and labeling strategy.

Focus strategy: It is the third most significant strategy of Nestle which focuses on the low-cost leadership and differentiation strategy to accomplish the vision and mission. The company uses focused low-cost strategy in order to control and manage the marketing and manufacturing cost. Now it is assumed that competitiveness and success of Nestle depend on the business level strategy to make a good image in the market. Apart from this, the firm also uses corporate level strategies to manage and tackle the different market situations. The corporate level strategies include growth strategies, stability strategies, and retrenchment strategies to analyze and identify the needs, requirements, and choices of the customers (Wheelen & Hunger, 2011). Nestle is one of the leading beverage and food manufacturing company. The firm is expanding and flourishing its business by using corporate-level strategies in the organization. Furthermore, Nestle uses several motivational strategies to motivate and encourage the workers that have been discussed below.

Reward strategy: This strategy is used by the organization to improve the productivity and efficiency of the employees. The company provides enormous rewards to the customers in order to provide job satisfaction and job security to the workers. In addition, the firm also provides incentives, compensation, and other benefits to the workers. There are two types of rewards which include financial and non-financial rewards.

Business level strategies of Nestle

Motivation strategy: The motivation strategies are used by Nestle to increase the efficiency and effectiveness of the workers. There are two types of motivation which include extrinsic and intrinsic motivation.  These strategies help to provide pleasure and happiness to the employees for performing task and duties effectively and successfully (Armstrong and Taylor, 2014).

All these business strategies help to increase the sale of the company. Further, it also helps to maintain a strong goodwill in the global market. Further, Nestle can gain the competitive advantages in the international market. These strategies also help to maintain a good working environment in the workplace. Nestle still faces competition in the international and local market which influence the trading activities and operations adversely. Groupe DANONE, Yinlu foods, and Mars are the main competitors of the company. The company uses business-level strategies to overcome the competitors across the world. The business level strategies help to maintain core capabilities within the organization. It also helps to maintain customer’s relationship with customers in the competitive market.

Low-cost leadership strategy provides helps to the customers to provide happiness and satisfaction to them. The activities, strategies, and processes are leading to core capability from a variety of perspectives which have been discussed below (Enama, 2017).

Commercial perspective: The low-cost leadership strategy helps to maintain a good culture in the organization. In this way, it helps to attract and retain the employees within the organization. It also helps to maintain dynamic core capabilities in the organization. The core capabilities provide a framework to the Nestle where they can identify and measure their core strengths and strategize in the organization. Furthermore, the company measures and identifies the core competencies by using effective and unique business level strategy.

Customer perspective: The firm reduces the prices of products by using low-cost leadership strategy. In this way, it creates a positive working environment in the environment as well as the organization. It also helps to enhance and develop unique core capabilities of the company. The consumers can buy the products at reasonable prices from the market. It also helps to make a unique image in the mind of customers across the world (Peters, Hofstetter & Hoffmann, 2011). Apart from this, Nestle has been able to provide innovative and attractive food and beverage products to the consumers in the competitive market. The customers easily buy the products of the company due to its strong image in the international market.

Market perspective: The core capability is the key success factor for the company which helps to determine the long-term success and growth of the company. Nestle has been able to beat the competitors by maintaining and using dynamic core competencies and business level strategies within the organization. Apart from this, the firm is able to deliver the innovative food and beverage products to the market. In this way, optimum utilization of resources can be done by the firm. In addition, low-cost leadership strategy helps to maintain sustainability in the market. The firm uses this strategy to provide satisfaction to the marketers (D'heur, 2015).

Society perspective: The business level strategy also provides benefits to the society. Nestle can easily run the business successfully and effectively by using these strategies within the organization. It also helps to increase and enhance the operational efficiency and effectiveness of the workers as well organization. The core capabilities also generate sustainable competitive benefits for the company. It helps to evaluate and analyze needs, preferences, tastes, and choices of the people. Further, the business level strategy also helps to maintain teamwork and communication with customers across the world. In addition, people have become aware in the market to make the effective and unique decisions. Further, the company uses leadership styles to provide satisfaction to people. Now it is assumed that business level strategies help to build and develop core capabilities of Nestle in the competitive market. These strategies play a vital role to maintain sustainability and CSR practices effectively and efficiently (Williams, 2014). Further, the core capabilities provide benefits to the customers, society, and market. It also helps to make a good and strong image in the international market.

On the above aforesaid information, it has been evaluated that Nestle is one of the largest corporations in the world. The company offers tasty food and beverage products to the customers in the competitive market. Apart from this business level strategies are used by the company to gain the competitive advantages in the global market. Further, Nestle maintains unique key core capabilities within the organization to increase the number of customers in the international market. There is a close connection between business level strategy and core capabilities. The core capabilities help to achieve the long-term vision and mission of the company. Along with this, core capabilities provide various benefits to the market, customers, and society. Nestle cannot run the business successfully and effectively without using and maintaining core capabilities within the organization. Furthermore, key core capabilities help to encourage and promote innovation and renovation in the organization (Islam, 2016). These core capabilities also access and evaluate the opportunities and threats of the market.

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