Nestle Case Study V13

In December 2005, Nestlé bought the Greek organization Delta Ice Cream for €240 million. In January 2006, it took

full ownership of Dreyer's, thus becoming the world's biggest ice cream maker with a 17.5% market share. In April

2011, Nestlé announced a partnership with Chinese food company Yinlu, a manufacturer of ready to drink peanut

milk and canned rice porridge.

Nestlé’s Strategy

The organization's strategy is guided by several fundamental principles. Nestlé's existing products grow through

innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term

potential is never sacrificed for short-term performance. The organization's priority is to bring the best and most

relevant products to people, wherever they are, whatever their needs, throughout their lives.

Nestlé is more people, product and brand-oriented than systems oriented. While systems are necessary, they

should never be an end in themselves. Nestlé favours long-term successful business development and endeavours

to be a preferred organization for long-term oriented shareholders. However, Nestlé does not lose sight of the

necessity to improve short-term results and remains conscious of the need to generate a sound profit each year.

Nestlé seeks to earn consumers’ confidence and preference and to follow and anticipate consumer trends, creating

and responding to demand its products. Therefore Nestlé is driven by an acute sense of performance, adhering to

and favouring the rules of free competition within a clear legal framework.

Since its foundation, Nestlé has been at the forefront of developing quality products that satisfy the need for good,

healthy food. During its 142 years of existence, Nestlé has analyzed its market and has adapted too many market

trends. Originally the market wanted food that was safe and food that was considered good. Soon consumer

demands became more sophisticated requiring food to be wholesome as well as quick to prepare. This meant that

if Nestlé were to attain its goals of producing good, healthy food that satisfied the needs of consumers, they needed

to create the right mix of good, healthy food, with important nutrients that are also tasty and enjoyable as well as

convenient to prepare.

Today, all these aspects are taken into account when producing Nestlé products. Nestlé has even gone further to

recognize the demand for variations in products, noticing that the market desires products with specific

characteristics to suit their specific needs e.g. specific food for specific age groups such as toddlers and not just

infants in general or the specific need for energy food for sporting activities. Nestlé has kept up with these

changing trends and is known as the leading organization for good, healthy food worldwide. Nestlé has a history

that shows its constant dedication to maintaining customer satisfaction and its aim to produce innovative products

of high quality. This is the result of a long-term strategy to develop products that are healthy and tasty.

The continuing focus is evident in Nestlé’s strive to produce the best quality products, which offers the best

benefits for the customer and attempts to effectively satisfy their ever-changing needs (www.nestle.com). Today

Nestlé conducts extensive research to deliver personalised nutritional products that also specifically target

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