Numico

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NUMICO

The NUMICO’s strategy is translated by product development with nutritional products for hospital and by market development with sport nutrition. Research and development had been an important activity in NUMICO which took care of baby food and clinical nutrition. NUMICO made many acquisitions in many countries.

His strategy was based on “Medical Platform Marketing” which is: High spend on both R&D and marketing
NUMICO bought General Nutrition Companies (GNC) of Pittsburgh (USA) in 1999 which allows NUMICO to take advantage of the distribution network of GNC Acquiring GNC was a sensible move, it was reducing the competition and on the other hand it was enhancing the performance.

As we saw it previously, NUMICO’s strategy is translated by product development with nutritional products for hospital and by market development with sport nutrition which led to the diversification with altogether new markets and new products. We can see on this plan initial’s NUMICO positioning and the new positioning of NUMICO when the purpose has been affected. To conclude, Numico diversified by buying European companies in the field of neutriceuticals and by going away from his principal activity.

At first there is backward integration with raw materials manufacture which are food product for babies (milk, vegetables, meat, …) and nutrition solutions. The components manufacture are : plastic, packaging. Moreover, the R&D is interested by baby food and clinical nutrition.

There is a lot of options for a manufacturer. The horizontal integration include the more competitive product which is baby food, and after nutritional products, sport nutrition with complementary capabilities like R&D and marketing.

For forward integration, distribution outlets are supermarkets, hospitals, specialized stores, …

In 1999, NUMICO acquired a company bigger than them in terms of production and revenue. When NUMICO bought General Nutrition Companies (GNC) of...
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