Anh La

Nestle
The largest packaged food and beverage brand in the
world in terms of revenue.
Headquarters: Vevey, Switzerland, est. 1866.
Vast network of 450 manufacturing factories, retailers and
328,000 employees present in 117 countries and 5
continents.
Nestle owns over 8,000 brands
More than 20 brands with annual sales of CHF 1 billion/year

Growth Report
Six operating segments:
oZone Europe, Zone Americas, Zone Asia, Oceania, and Africa, and Other (Nestle Waters,
Nestle Nutrition).
Total Revenues in 2013: CHF 92.186 million
oAmericas:
CHF 29.897 million
oAsia, Africa, Oceania: CHF 18.912 million
oEurope:
CHF 15.385 million
oOthers:
CHF 13.930 million
Nestle Waters: CHF 7.174 million
Nestle Nutrition: CHF 7.858 million

Asia, Oceania, and Africa - most promising segment for the corporation.
oOrganic sales increased 8.4% in 2013, which accounts for 21% of total sales revenue.
United States and Europe
oSegments sales revenue increased by 2.5% 4.3%.
oHowever, this market is saturated causing slow growth rates.

Global Growth
Infographic

Growth Strategy
To achieve consistent profit sustainable
growth

o Significant economic advantages in:

brand equity
products manufacturing and distribution.

o Manufacture
Using local materials and suppliers in manufacture to avoid
production cost.
Easy to adapt to the local tastes of the consumers.
Create local employment opportunities.

Management Strategy
Four Pillars
Established by former CEO Brabeck
1.
2.
3.
4.

Low cost but highly efficient operation.

Innovation and renovation of product line.
Universal availability of products to local and global customers.
Communication with consumers through better branding.

Nestle Model
o.Long term organic growth is 4% 6% per year.
o.Year to year improvement in (EBIT)
o.Improve capital management.

SWOT Analysis
SWOT Analysis
Strengths

Unmatched product and brand

Weaknesses

portfolio

Effective R&D Department

Distribution channels and

geographic presence: infrastructure,
well developed supply chain from
good relation suppliers (farmers)

Brand reputation value

Integrated Management with history

Some mergers and acquisition were

shady and questionable

Diversified product lines led to some

production quality concentration issue

Few organic profiles in portfolio

The company has announced and is

involved in many programs that aim
to make company more eco-friendly
and improving the working conditions

of capable leadership along with

of its suppliers

Strong corporate culture to focus on

core business

Opportunities

Opportunities to expand to

Threats

developing markets

Develop healthy nutritious products

consumption

to existing markets

Promising merger and acquisitions

with bio lab startup and establish
joint venture with other firms for
products quality

Customer trends toward healthy food

Growth of rivals and smaller private

retailers and supermarkets

Issue in raw resources and local

regulation

Merger & Acquisition

Focus

on external growth Merger &

Acquisition
o Start-ups with strong innovation in Biotechnology
Contribute to the growth of Nestle in terms of nutrition
and health.
Pamlab Acquisition example
provides nutritional for chronic medical customers.

o Joint Venture Strategy

Coca-Cola Company Joint Venture
Produce ready to drink tea products.
Help Nestle expands market and customer bases.

Market Expansion Strategy

Emerging Markets Concentration
o

Asia, Oceana and Africa zones

oNeeds to continue
Current paths expansion and aim to gain
foothold in every country possible.
Continue to grow and gain more brand
recognition on a global scale.
Create optimal position for a new brand or
product to enter the market successfully and
gain market share.

Products Transition
Lacking organic profiles in business portfolio.
Healthy and nutrition food trend in consumers tastes
External Growth Strategy
oCombining
Acquired biotechnology
Manufacturing strategy

oCreate gradual transition in product nutrition quality

Divestiture strategy
oExit product lines that harm to companys reputation in terms of
health quality.
(GMO)s are gradually being removed.
Artificial flavoring products are being replaced with natural flavors.

Bibliography
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2013.
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N.p., n.d. Web. 10 Nov. 2013
"Press Center." The Coca-Cola Company. The Coca-Cola Company, n.d. Web. 9 Nov. 2013.
http://www.coca-colacompany.com/press-center/
Poulter, Sean. "That's a Smarties move! Nestle becomes first confectioner to ditch all
artificial additives from its products." Mail Online. N.p., n.d. Web. 12 Nov. 2013. <
http://www.dailymail.co.uk/news/article-2109025>
Tosh, Mark. "Nestle Sees Growth Opportunity in 'Science-Based Nutrition'." Medivo BTP
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Nov.
2013.
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Nov.
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<http://beyondthepill.medivo.com/2013/>
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