Nestlé is located in more than 100 countries. It is one of the world’s largest producers of food and beverage products. It has been ranked as the world’s largest bottle water company. In 2008, Nestlé has been named one of America’s Most Admired Food Companies for the 12th consecutive time. Nestlé products and all its subsidiary companies like Gerber, Carnation, Nescafe etc… are all top selling brands. They have been always successful in keeping consumer’s choice as their first priority. They renovate their existing lines in order to prevent their brands from slipping into saturation or declining. They have a high market share, with a strong brand portfolio. They have the ability to customize global products to local preferences. They have excellent strategic management skills and a strong future vision.
Their LC-1 division that is their dairy division was not successful in France as they thought it would be. They entered the market with yoghurt named Dannon. There was no growth in their organic food sales division in 2008 even though the industry grew by 8.9% Since 2004, their breakfast cereal products have been claimed as having false claims of “heart healthy” and “lower cholesterol.” They have been forced to reduce the amount of sugar in their products as American parents claim they were contributing to diabetics. Nestle’s extension product line General Mills has been behind in innovation and have not come up with a booming health food product.
They are unwilling to diversify weak brands.
Today, everyone is becoming more of health conscious hence; they have a huge opportunity to produce more health-based products and with their leading market power they are likely to be more successful. They launched a premium high-end chocolate named Nestlé Treasures Gold. It was immune to recession (so far) and hence is an opportunity for them to further enhance it. They opened Nestlé...
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