Premium Essay

Nestle’s Sustainable Growth in Mature Market

In: Business and Management

Submitted By djintokyo
Words 1525
Pages 7
Nestle’s sustainable growth in mature market
The company establishment
Nestle was first founded by Henri Neslte in the 1860s by developing and producing food products for babies who could not adapt mother’s milk. Following the success in baby food products, Henri incorporated with an Anglo-Swiss condensed milk company to develop dairy products, especially for government supply in World War I. High sensitive and quick responding to the demand of consumer, Nestle continued to create and develop new product mix to canned food, beverage, pet care products, to maximize its scope of business in food segment.
Nestle had been incurring high success during its operation in food industry, proved by production many creative product portfolio, double sales and tripled profits, globally brand recognition, offices and factories around the world with the management of previous CEO Helmut Maucher. Maucher successfully promoted Nestle to higher position in market as a global company and has been operating beyond its original Europe boundary. Nestle seems not still happy with what it had obtained. Under leadership of current CEO Peter Brabeck, Nestle is now experiencing a more significant growth and synergies as the top nutrition and food company with strategic management of Brabeck since he took over Nestle in 1997.
In today, Nestle has developed another core business to Research and Development sector to support its traditional food and beverage business.
Vision and Mission
According to Chief Technology Officer, Bauer, of Nestle in his presentation, Nestle has two visions classified for its two core sectors. For the Nestle’s operation vision, it indicates Nestle’s ambition to be the world’s largest Nutrition, Health, and Wellness company that innovate and distribute nutritious products that satisfy consumers’ nutritional and emotional needs. Additionally, to have…...

Similar Documents

Premium Essay

Nestle Business Policy

...than 140 brands under the umbrella of Nestlé. One of Nestlé’s cash cow product lines is the ice cream. Popular household ice cream brands under Nestlé include Häagen-Dazs, Movenpick and Dreyer’s. Nestlé acquired its financial prowess and brand equity from a few sources. Firstly, Nestlé possesses an unmatched R&D capability enabling them to research on new ice cream products to satisfy consumers’ needs and retain their loyalty. In addition, Nestlé also has a huge resource pool, which they can utilize to expand their product lineup and business portfolio through various merger and acquisitions. Nestlé entered into the US premium ice cream market in 2002 through the acquisition of Dreyer’s ice cream followed shortly by Movenpick in Switzerland and Häagen-Dazs. This acquisition allowed Nestlé to venture into highly desirable niche premium market and expand their global coverage. It was not long before Nestlé overtook Unilever as the biggest ice cream manufacturer in 2011, in terms of both sales volume and market share (Nestlé: 17.5% vs Unilever: 16%). Switzerland, despite being Nestlé’s home market, did not provide a significant inflow of revenue. On the other hand, Nestlé derived most of its revenue from foreign markets which it has penetrated into, for example the USA and Europe. When news of the booming financial market in Asia went viral, Nestlé did not lack to expand its influence into emerging markets in Asia, especially China whereby they sell ice cream......

Words: 7384 - Pages: 30

Free Essay


...Nestle: Sustaining Growth in Mature Markets Describe the characteristics of each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool. Nestle’ recognizes that increasing globalization is leading to the development of more and more international recommendations. Although, as a general rule, these recommendations are addressed to governments they inevitably impact on business practices. [ (Brabeck-Letmathe, 2004) ]. The internet is changing the way of doing business. It concerns business-to-business relations and also the Company’s interaction with consumers. In this respect nestle’ S.A. has an Internet Privacy Policy which is available on the Corporate Website. This policy aims to protect the privacy of the users; it covers, for instance, the accessing, deleting or correcting of information, the security of information, and relates also to tracking technologies [ (Brabeck-Letmathe, 2004) ]. Nestlé’s broad known of their products and laws that are required in order to design different product are impeccable. Needless to say one company has to know about water, using raw materials, nutrition for not only infants but everyone including animals. Nestlé’s knowledge of human rights gives them a strong understanding of strategic flexibility. Nestle’ recognizes that governments are ultimately responsible for the establishment of a legal framework for protecting human......

Words: 1293 - Pages: 6

Premium Essay

Bus 499

...“Nestle: Sustaining Growth in Mature Markets” Bus 499 Summer Quarter 2010 Describe each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool. The Nestlé Food Company has been part of the global community since it was first founded in 1866 marketing its products in 130 countries across the world. “Over the previous 130 years, Nestlé had acquired profound knowledge of markets all over the world, and enjoyed great success in adapting its products to local tastes” (Hitt, Ireland, & Hoskisson, 2009). In doing this Nestlé has retained the reputation as a heroine company who “thinks globally but acts locally” (Hitt, Ireland, & Hoskisson, 2009). Nestlé has not just succeeded in the food industry but is taking strong leads to impact nutrition, health, and wellness. The Nestlé Company continues to stay competitive within the global market while continually working with a failing economy; according to Barbara Kollmeyer of Market Watch (2009) "It's still a good defensive stock. Its international profile, combined with presence in 25 businesses provides good resilience in a downturn. The development of the product mix towards Nutrition and Health should have increased the group's defensive profile. This strategy is based on a price positioning that should remain competitive.” The knowledge that Brabeck introduced in 1997 brought many new strategies to Nestlé......

Words: 1835 - Pages: 8

Premium Essay


... |About Nestle |8 | | |Nestle in Bangladesh |9 | | |Market Summary |10-11 | | |Objective |11 | | |Key to Success |12 | | |Marketing Strategy | 13 | | |Marketing Demographics | 13-14 | | |Market Needs | 14-15 | |10. |Market Trends | 15-16 | |11. |Market Growth | 16-17 | |12. |SWOT Analysis | 17-19 | |13. |Competition ...

Words: 7169 - Pages: 29

Free Essay


...much as I enjoyed developing it. SYNOPSIS OF THE NESTLE CASE Nestle is one of the world's largest global food companies. It has over 500 factories in over 70 countries, and sells its products in approximately 200 nations. Only 1% of sales and 3% of employees are located in its home country, Switzerland. Having reached the limits of growth and profitable penetration in most Western markets, Nestle turned its attention to emerging markets in Eastern Europe, Asia, and Latin America for growth. Many of these countries are relatively poor, but the economies are growing quickly. Thus a consumer base capable of buying many Nestle products will develop over the next couple of decades. Nestle tries to enter emerging markets ahead of competitors, and build a substantial position in basic foodstuffs. As income levels rise, the company progressively moves from these niches into more upscale items. It very much focuses on developing local goods for local markets, however, and places relatively less emphasis on its global brands in emerging markets. It also localizes its distribution and marketing strategy to the requirements of the local market. When good opportunities are available, Nestle acquires local firms. Nestle is a very decentralized organization, with operating decisions pushed down to local units. On top of this are both a SBU organization focused around food groups, and a regional organization that tries to help rationalize production and marketing among nearby......

Words: 3252 - Pages: 14

Premium Essay

Assignment 2 - Diversification Strategies.

...Brief Overview of Nestle Over the previous 130 years Nestle Company has been able to acquire great amount of knowledge of almost all the varied markets of the world since 1866. This is the reason why Nestle has been able to gain a leading position in the global food operations as it has factories operation in 77 countries and it is selling its gamut of products in all the six continents. The best part so Nestle is that it occupies the leading market shares  along with a  broad and diversified  business portfolio in varied and many product categories which include  nutrition and baby food, coffee, dairy products, ice creams, mineral water, confectionary, chocolate and pet food and many more.  Nestle has been committed to provide top quality products and brands which are essential for good health for all age groups. That is why it incorporated nutritional elements in its vast array of product categories so that they can be promoted into the markets as high quality products and safe too (Raisch & Ferlic, 2006).  In June 1997 Peter Brabeck –Letmathe was appointed the CEO of Nestle and the critical challenge in front of him was to enhance the profitability of the company which already had mature markets. A suite of process innovation initiatives were being launched by Brabeck so that financial means can be generated to be invested in growth initiates which would result in maximization of existing assets, maximise distribution logistics as well as enhance the capacity......

Words: 3296 - Pages: 14

Premium Essay


...Executive Summary The aim of this report is to focus on the major decision that the management team of Nestlé had to take in determining whether to introduce the Partners’ Blend Coffee into the UK market with their own Nestlé Initiative or to introduce the coffee into the market with Fairtrade certification. This decision was prompted by the feedback they received from their customers to introduce a coffee line that has Fairtrade certification. The main idea of the Fairtrade movement is to address issues of unfair conventional trade practices that discriminate against the poorest and weakest producers in order to empower them to improve their position and have more control over their lives. In the course of analyzing where to introduce Partners’ Blend, the management decided to incorporate it with Nestlé UK because the UK has a natural desire to donate to other less fortunate nations especially as they are a relatively wealthy nation. As a result, many charity organizations have their headquarters in UK. This report would analyze the challenges and opportunities that Nestlé should consider in making the final decision to introduce the coffee either with or without the Fairtrade logo. It includes analyzing the power of suppliers, consumers, the competitive rivalry, the threat of substitute goods and the threat of new entrants when they want to take advantage of the opportunity to position Nestlé in a positive light with ethical coffee line. This report......

Words: 2684 - Pages: 11

Premium Essay

Strategic Management

...1. [BUMGT 3702 STRATEGIC MANAGEMENT] September 24, 2012Nestlé Company 41.0 IntroductionThe most important thing for most of business company is an understanding theirsuccessful performance among the other competitors in market place.For some parties, likeshareholders, it is essential for company to make a profit and gain above-average returns. Inthis assignment, I will discuss furthermore about Nestlé’s external environment in all aspectssuch as their general environment, industry environment, competitive environment, and scanthe opportunities and threats of the company. And also I am going to explain briefly abouttheir internal environment includes their resources, type of their resources, company’scapabilities, evaluate their core competencies and so on.1.1 Industry and Nestle summaryNestlé S.A. is a Swiss multinational nutritional and health-related consumer goodscompany headquartered in Vevey, Switzerland. It is the largest food company in the worldmeasured by revenues. Nestlé’s products include baby food, bottled water, breakfast cereals,coffee, confectionary, dairy products, ice cream, pet foods and snacks. Nestlé employ around330,000 people in over 150 countries and have 461 factories or operations in 86 countries.Nestlé sales for 2011 were almost CHF 83.7 billion. It is one of the main shareholders ofL’Oreal, the world’s largest cosmetics company. Nestlé history begins back in 1866, whenthe first European condensed milk factory was opened in Cham, Switzerland, by the......

Words: 5300 - Pages: 22

Premium Essay

Nestle Expanding Globally

...CHAPTER ONE Introduction 1 1.1 INTRODUCTION INTRODUCTION TO NESTLÉ S.A. Nestlé began in Switzerland in the mid 1860s when founder Henri Nestlé created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henri’s product was a carefully formulated mixture of cow’s milk, flour and sugar. Nestlé’s first product was called Farine Lactée (“cornflour gruel” in French) Henri Nestlé. The product was first used on a premature baby who could not tolerate his mother’s milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henri’s new formula and it provided the nourishment that saved his life. Within a few years the first Nestlé product was marketed in Europe. In 1874, Jules Monnerat purchased the Nestlé Company. Nestlé developed its own condensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. The Anglo-Swiss Condensed Milk Company made products like cheese and instant formulas. The two companies merged in 1905, the year after Nestlé added chocolate to its line of foods. The newly formed Nestlé and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong......

Words: 12626 - Pages: 51

Free Essay


...and the individual business units are driving forces in bringing Good Food, Good Life to all of their consumers Nestlé markets its products in 130 countries across the world and manufactures around 10,000 different products and employs some 250,000 people. Nestlé sells over a billion products every day. From this fact, Nestlé is more than just the largest food and beverage company in the world. Increasingly, Nestlé is becoming the world’s leader in nutrition, health and wellness. On April 2008, a new CEO of Nestlé being selected. Paul Bulcke the new role head of the world’s largest food and beverage company’s that been leading almost for 150 years. His challenge is to deliver the organic growth and improved margins necessary to meet Nestlé’s target. Nestlé’s historic success was built on deep agricultural supply chain, strong local market teams and strategic acquisitions. Sales in 2007 had the first time exceed CHF100 Billion a figure previous CEO and now chairman Peter Brabeck referred to in Nestlé 2007 annual report as an “almost mystical barrier”. Looking from it past Buckle’s challenge is to keep Nestlé moving toward. HISTORY “Nestlé” brand was originally taken from its founder named Henri Nestlé. He was a pharmacist that lived in Vevey, Switzerland. The word Nestlé itself in German meant “little nest” that later on becoming Nestlé’s trademark. This logo gives a clean, healthy, and caring image. Back in 1866, Anglo-Swiss Condensed Milk Company......

Words: 14085 - Pages: 57

Premium Essay


...INTRODUCTION The most important thing for most of business company is an understanding their successful performance among the other competitors in market place. For some parties, like shareholders, it is essential for company to make a profit and gain above-average returns. In this assignment, we will discuss furthermore about Nestlé’s external environment in all aspects such as their general environment, industry environment, competitive environment, and scan the opportunities and threats of the company. And also we are going to explain briefly about their internal environment includes their resources, type of their resources, company’s capabilities, evaluate their core competencies and so on. PROFILE OF THE COMPANY Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Sales at the end of 2004 were CHF 87 bn, with a net profit of CHF 6.7 bn. We employ around 247,000 people and have factories or operations in almost every country in the world. The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their......

Words: 13382 - Pages: 54

Premium Essay

Unilever vs Nestle Analysis

...9 5.1. Swot analysis 10 6. Recommendations 11 6.1. Emerging markets 11 6.2. Mature markets 11 7. Appendix 12 8. Bibliography 17 1. Executive Summary This report describes the global branding strategy of Unilever Plc. and Nestle companies. It shows the importance of cultural differences and problems that might arise if are omitted in advertising. It explains why to adapt the products locally rather than standardize and the way how each company perform it. The report sets the recommendation for both companies to focus on emerging markets with high demand for basic products and to try to gain their share on mature markets again, which offer a big potential due to the changing socio and economic patterns. 2. Introduction The world has become increasingly globalized, a term that Levitt (1983) used in his work, to point out that firms can be using the same standardized......

Words: 3373 - Pages: 14

Premium Essay

About Hcl Tech

...Chocolate SLIDE 1 Good morning friends !! Please take your chocolates from the basket. Thank you. Myself and nithya will share on Chocalates……………… SLIDE 2 So Where Chocolates come from? Yes!! It comes from most of the tropical parts of the world like Africa, Ghana the number one producer, then Indonesia, Brazil, Mexico etc etc… This is a Cacoa Tree which bears the Cocoa pods. The tree takes 5-6 years to mature and bear a fruit. The ripe cocoa pod has about 30 usable pods each year ie rougly 1000 cocoa beans a year Around 500 beans make 1 pound only ie 2 pound of bittersweet cocoa per tree in a year. Cacao farming is very labor intensive. Every part of cacao farming, from planting to harvesting to fermenting, is best done by hand, not machines. Pods must be removed from the trees individually, by hand, because not all ripen at the same time. Farmers generally use machetes or large knives attached to poles to slice down the ripe pods, taking care not to hurt nearby buds. The pods are split open by hand. The beans are scooped out and the outer shell is discarded. If you tasted a bean at this point you would notice a sweet, lemony flavor from the pulp. The actual bean would be bitter and hard to eat. SLIDE 3 Fermentation Once the cacao beans are scooped from the pods, they are fermented and dried in the two-step curing process that sets in motion the development of the flavor nuances which maketasting chocolate so exciting. Fermentation is the first critical process to......

Words: 4444 - Pages: 18

Premium Essay

Hnd Assignment

...needs of the consumer every day by marketing and selling food of a consistently high quality. The confidences that consumers have in our brands is a result of our company’s many years of knowledge in marketing, research and development, as well as continuity – consumers relate to this and feel they can trust our products”. In particular, we envision to Lead a dynamic, motivated and professional workforce – proud of our heritage and positive about the future Meet the nutrition needs of consumers of all ages – from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality. significance of stakeholders Deliver shareholder value through profitable long term growth, while continuing to play a significant and responsible role in the social, economic, and environmental sectors of Pakistan. Effective dialogue with our stakeholders is central to Creating Shared Value, both in terms of understanding opinions and concerns, and in delivering our commitments. Our stakeholder engagement programme helps us to shape responses to shared challenges, drive performance improvements, and ultimately strengthen collective action. While we encourage our businesses to identify key stakeholders at a national level, our global engagement is co-ordinated centrally, through the Creating Shared Value Forum series and regular stakeholder convenings. Together, these are an important part of an engagement process that......

Words: 4427 - Pages: 18

Premium Essay


...CONSUMER MARKETS – JUNE 2014 A taste of the future The trends that could transform the chocolate industry T he outlook for the world’s chocolate industry is brighter than it has been for eight years. Euromonitor predicts the industry will enjoy a 6% rise in revenues in 2014, delivering record global revenues of US$117bn. This robust performance is driven by a 2.1% increase in volume, reflecting growing appetite for chocolate in emerging markets. The challenge for the industry’s major players is how to make best use of this boom to profitably grow their volumes faster than the markets, achieve sustainable improvements in core operating margins and make the right investments – be they in capacity, acquisitions, the supply chain, marketing or R&D – to seize the significant opportunities ahead. The single biggest factor improving the industry’s performance is the fact that, at long last, the global economy is showing signs of sustained recovery. Growth in many major markets is accelerating. The stellar performers are India (expected to grow by 22% this year), Brazil (13%) and China (11%). The potential long-term growth in emerging economies – many of which have growing middle classes – is vast. To give just one example: the per capita consumption of chocolate in China is only a tenth of that in Switzerland. Yet, as this global tour of the chocolate industry suggests, the future is not without challenges. The immediate concern is the balance between supply of......

Words: 9969 - Pages: 40