A Case Study on Nestle a Multinational Brand

The case study on the multinational brand Nestle, which occurs to be an FMCG international large displays the techniques and well-designed plans of the corporation whereby it tries to shift its photo from a meals organization to that of a diet fitness and welfare company. The motto of the enterprise has been that of correct food. The top existence has similarly prolonged the place the corporation appears ahead to coming into the area of fitness. And vitamin merchandise that will embody merchandise such as baby food, and weight loss plan food. And additionally that of healthcare products.

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In the process, we see that the business enterprise in its system of diversification of its merchandise has additionally at instances failed to attain its targets. However, the customary shape of the enterprise occurs to be massive and adequate to assist the enterprise in holding. Its function as the main healthcare enterprise in the world with some of the most mentioned and profitable brands.

Main Essay:

The case study reveals the well-calculated plans of the company Nestle. Where it had made conscious efforts that would change its very image in the market. It has been reflected through the case study that the then ongoing image where Nestle happened to be a leading brand worldwide in the field of food products looked forward to entering the field of healthcare food products and also dominating the market in the coming period. Hence Nestle soon embarked upon a marketing strategy through which it could extensively change its image. And develop an image of a nutrition, health, and welfare fostering company through the tool of its products.

Hence quite Nestle set forward to take up various measures to effect the same. In the process, Nestle did and tried several different tactics to achieve the same. It changed the composition of its products by eliminating excess sugar and salts and fats and by incorporating more healthier nutrients into its products. Once again we also see that Nestle embarked upon a method or business pattern of a large number of acquisitions. Through these acquisitions, Nestle tried to buy over certain reputed names in the healthcare product industry and enter the arena on a global scale. It made some very huge investments in the process of these mergers and acquisitions.

Essay Part 01:

In this context, one point that can mention could have been a pressing concern for the company. Especially during the years that immediately preceded the financial crisis era. The case study reveals that in the year 2005 Nestle did make drive the market for healthcare products and nutrition food. Which was when the company had to make some huge investments. However as even mentioned by the experts the company could not expect any immediate returns or profits from these investments. The company had to struggle considerably to push the volume of its sales. And face stiff competition from the already existing big layers of the said industry.

Another point that happens to be an addition to the mentioned point is that in the effort of being a world player in the NHW segment the company did make huge and well-diversified investments. This also could have posed a challenge to the company, especially during the recession period. We also see that as mentioned by the then CEO Bulcke, maintaining the company’s position in those challenging times happened to be quite critical. In those times we see that the company had taken a strategy that tried to maintain. Its market index also increases the sales and business volume as far as possible.

Essay Part 02:

We do see that in the strive of being a world-renowned NHW segment company and of changing the brand image of the company. The management of the company had invested heavily in various measures of entering the industry of NHW and of fortifying its market position in the company in the said industry segment. In comparison, the same not as aggressive stance stood taken by the company in boosting its sales vigor. And taking equally dynamic marketing endeavors. As result, we see that the company even failed to achieve its said initial targets. Which it had set for itself when it entered the NHW sector.

Once again we also see that the company at least to some extent did digress away from it. Its path of being an NHW company when it also bought some fast food chains. This the company said was a calculated measure. Since it could not do away with the strategy of being a diversified company. However, the company did induce certain health measures into the fast food items. And did incorporate some healthy items into the menu preparations.

It can say that the mission of the company happened to be of providing its customers with good taste and a healthy lifestyle through its products. To implement the same to an excelled level and to make a mark in the market in the long run the company did embark. This journey of entering the health and nutrition products. In doing so we see that the company stood faced with a series of advantages that arose. Its strengths and also disadvantages arose from its weaknesses. In the following part of the discussion we take a look at both of the considerations:

Advantages:

• The company that is Nestle happens to be a big name. Which ensures that the brand already has an acknowledgment in the market. And the consumers or the retailers do not need to be brief regarding the profile of the company. This facet was a particular strength of the company that enabled a certain percentage of market penetration.
• The company had enough capital power which could enable the company to indulge in strategies of acquisition and elaborate R&D endeavors.
• Nestle was already in the food industry, which gave it considerable leverage.

Disadvantages:

• The company went into a very elaborate process and method of acquisition and mergers. Which ate into a considerable amount of its financial resources of the company. This could have posed a challenge during the financial crunch period.
• Nestle in its strive to be a world leader in the arena of the NHW sector did not put enough stress on the marketing part. Which led to the loss of target achievement.
• It did pose a contradictory figure when the brand bought over fast food item chains. It helped its critics criticize its image as an NHW company.

Finale:

Quite surely the strategy of Nestle to enter the NHW sector was a well-tailored plan that will yield high returns in the future, nevertheless, a more profit-oriented endeavor could have helped the company overcome the revenue issues that did surface during its transition phase.

Suggestion:

It could recommend to the company that the brand instead of trying various products in the NHW field could single out a more streamlined array of products on which the company will try to concentrate during its initial period of entering the NHW industry or market segment. This would also help the company streamline its marketing procedure and the company can adopt more aggressive marketing endeavors that will help the company achieve better sales volumes. With time these returns could again be profitably used in the R&D endeavors that will help the company come up with better and improved brands and also at the same point establish itself as a global, market leader.

Reference;

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