Today, consumers attach more importance to the quality of food they buy. Nestlé is one of those brands that have managed to gain the trust of consumers worldwide.
How has this Swiss company from managed to enter the international market and succeed? What strategies did it adopt?
I - Presentation of the company:
In the nineteenth century, to overcome a very high infant mortality that was a result of a food shortage, Henri Nestlé created malted milk. In 1867, he developed a special manufacturing process to ensure the consistent quality and composition of the product. He then began marketing of flour and created the logo of the company, the nest, which would go on to become a central element of its corporate identity.
1866. This Company merged with Nestlé in 1905.
A diversification strategy
The company began with the production of malted milk but has added many other products over time. It includes chocolate, instant drinks, culinary products etc.
In 1929, Nestlé began to diversify its products and merged with the company of a chocolatiers Peter, Cailler and Kohler. This diversification continued in 1947 with its merger with Maggi. Then, in 1980, Frisco Findus in Switzerland merged with Nestlé SA in 1989, the operational activities of Franck & Thomi AG were included in Nestlé, Switzerland. In 1992, Nestlé acquired the Perrier-Vittel group. In 1997, it became the expert in the mineral water sector when it acquired San Pellegrino. In 1998, Nestlé acquired Spillers Petfoods, an English group.
Tags - Nestlé, internationalization, expansion, Switzerland
[...] In 1997, it became the expert in the mineral water sector when it acquired San Pellegrino. In 1998, Nestlé acquired Spillers Petfoods, an English group. The same year, it improved its sales and revenue by following a policy of innovation in the fields of marketing communication and products. It also conducted a careful management of its supply. Nestlé manufactures and markets a diverse range of products ♣ Chocolates: Crunch, Galak, Nestlé Black, After Eight, Kitkat, Lion, Nuts etc . ♣ Coffee and cocoa drinks: Nescafe and Nesquik ♣ Dairy products: Little Switzerland and LC1 ♣ Grains: Clusters, Fitness and Golden Grahams ♣ Frozen products: Findus ♣ Dough (baked) ♣ Ice: Far Cones ♣ Food and care products for children ♣ Culinary products: Maggi and Thomy ♣ Pasta (Italian): Buitoni ♣ Pet Food: Friskies and Matzinger Nestlé in the world Nestlé was the first food company in the world. [...]
[...] Study of the international strategy of Nestlé CONTENTS I Presentation of the company and its business • History • The diversification strategy. • Nestlé in the world II Description of the various strategic alternatives for internationalization • In developing countries • The conquest of emerging countries III Advantages and disadvantages of a multi-domestic strategy. • The benefits • The risks Today, consumers attach more importance to the quality of food they buy. Nestlé is one of those brands that have managed to gain the trust of consumers worldwide. [...]
[...] We chose to study the internationalization strategies of the Nestlé Group to better understand its meteoric rise. How did Nestlé manage to rise to a position where it dominates global markets that are highly competitive? This study demonstrates the very rapid geographic expansion that began in the late nineteenth century. Following numerous acquisitions and manufacturing facilities abroad, Nestlé has gradually created a global identity. Its diversification strategy is also a source of its growth and its importance. Thus, Nestlé is present on all segments of the food industry. [...]
[...] For example, Nestle has taken the risk of establishing itself in emerging markets to sell its products under a brand name of local consonance. The transition to the global brand name is not always well accepted by consumers. This strategy is also risky for Nestlé as control of its subsidiaries is more difficult. The main obstacle created by this strategy is its cost of implementation. Today, companies find the need to reduce costs and find new competitive advantages. Shareholders and financial analysts now favor restructuring that leads to economies of scale. [...]
[...] The demand for food has gradually homogenized in these countries. And this is why Nestlé adopted an internationalization strategy for these countries. It generally sells the same products under the same brands in Europe and the United States. The internationalization of the brand is a reproduction of the strategy used for malted milk in 1868. This product was introduced in four countries, within the same year, Switzerland, Germany, France and England. It was launched in the United States the next year. [...]
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