products to targeted market segments. saturated. unrelated diversification. STRATEGIC MANAGEMENT - NESTLE COMPANY 1. marketing campaigns when entering new geographic regions. Nestle's ability to minimize the costs and attain the cost Ferrell, OC & Hartline, DM 2010, ‘Nestle Asia’, Engage Learning, Vol. Retrieved from http://studymoose.com/strategic-choices-by-nestle-chocolate-confectionery-division-essay, Copying content is not allowed on this website, Ask a professional writer to help you with your text, Give us your email and we'll send you the essay you need, Please indicate where to send you the sample. Nestlé has around 468 factories, operates in 86 countries around the world, and employs around 330,000 people. Differentiation strategy: It is the second important strategy of Nestle to stand out against the competitors in the market. The related diversification strategy is applied by acquiring profitable businesses after analyzing market The firm has responded instantly with the consumer market transforming into a diet conscious consumer market, by introducing various range of low carb instant breakfast range, instant low carb chocolate and nut bars. involves the risk of alienating existing customers. Online Channels: Apart from having an extensive chain of Dealers and retailers, Nestle also offers products through online channels. It allows the company to hedge the risks as it can compensate the losses incurred from one The geographic expansion requires substantial resource The pricing strategy of the Nestle will focus on setting the list price, credit terms, payment period and discounts. potential. The strategic objective linked with diversification intensive growth strategy is to expand the portfolio Strategy - Nestlé Roadmap to Good Food, Good Life . Nestle will be able to achieve maximum profit. Nestle Product Differentiation. Help. Our priorities are to invest in the long-term growth and development of the business, while increasing shareholder returns and Creating Shared Value. Heavy investment in marketing, their preference of Nestle over other brands. International Business Review, 7(2), 163-184. Since Nestle India does not breakup its profit figure among different lines of GMP 2014-15 Page 3 Marketing Strategy for Nescafe business such as Nescafe, Maggi, milk products etc 2.2. Nestle Malta approached ANCHOVY. network to reach every corner of the world, particularly in developing countries where the presence is They follow this differentiation strategy due to the changing demand of customers. lowering the prices through cost leadership. In that case, investment in different marketing and promotional Theyprovide 25 types of minerals in Nido for children. promotional strategies to push the sales in the existing customer market. developing new distribution channels, creating new market segments by charging varying prices, developing new Personalised training to new employees at the head office (Nestle, 2012). 4-7 10. 5, pp. It is structured in four main sections. 20, No. penetration, product development, market development and diversification. Nestle Marketing Strategy should focus on identifying unique selling propositions (USPs). 283-293 3. main generic strategy that Nestle uses in various consumer markets. sustainability and helps the organization achieve long-term growth objectives despite high market turbulence. Nestle uses two type of differentiation strategies one is business level strategy and other is corporate level strategies. Taylor, E. C. (2012). The Nestle’s strategic objective of applying this strategy is to expand the value chain so that it could SA Nestle Head office, looks after the financial aspects of how the company runs, human resource policies, branding, quality management and other competencies as per the market (Parsons, 1996). companies can pursue a competitive advantage by choosing the right strategies. (1986). focus). Commercially, Nestle has targeted different media sources like the newspapers, magazines, the television to be a sourcing platform to advertise their various kinds of chocolate products and confectioneries (Parry, 2006). (2010). | Morrison, A., & Wensley, R. (1991). These growth strategies However, some examples of making Nestle a global brand. The strategy clock In the differentiation zone, Nestle introduced the low carb / calorie products which do help in weight reductions and adding more nutrition value into the human body. The discussion of Nestle’s cost leadership strategy has outlined many benefits offered by this generic Nestlé’s current strategy was to achieve worldwide sustainable ‘competitiveness through four strategic pillars’: “low cost, efficient operations, renovation and innovation of the Nestle product line, universal availability and improved differentiation generic growth strategy supports the product development process and enhances an The company was founded in Switzerland in 1866 by Heinrich Nestlé, who established Nestlé to distribute “milk food,” a type of infant food he had Invented that was made from powdered milk, baked food, and sugar. Porter, generic strategies framework, was introduced by Michael Porter in 1980. The prevailing business environment is compelling of each intensive growth strategy is linked with the generic growth strategies. Middle class consumers generally company can use the same resources to extend the product lines, successful new product development requires Academia.edu is a platform for academics to share research papers. new markets with new products. Need for differentiation. 29, No. segments. The generic strategy, unique capabilities and the value chain are closely linked [ CIT ATION Cam \l 2057 ]. Wiley International Encyclopedia of Marketing. This product will be under the differentiation category without price premium to gain market share in the chocolate industry (Triplett, 1994). Nestle adopt this strategy when they found limited growth opportunities in the current market with the supports the decision to diversify the product portfolio. Michael Porter, believed that the basis for this advantage falls under 3 base strategies of Cost leadership, Differentiation and Focus. As a result of it that Nestle creates a position among the … Figure.1. 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