Nestle Business Policy

In: Business and Management

Submitted By bongky18
Words 7384
Pages 30
Group members:
Alice Chen YuXin
Bong Kern Yih
Edward Setyadarma
Salman Kamani

Executive Summary
Nestlé is currently the biggest food and beverages (F&B) company in the world. The company has a long-standing history of 140 years and a business portfolio comprising of more than 140 brands under the umbrella of Nestlé. One of Nestlé’s cash cow product lines is the ice cream. Popular household ice cream brands under Nestlé include Häagen-Dazs, Movenpick and Dreyer’s.
Nestlé acquired its financial prowess and brand equity from a few sources. Firstly, Nestlé possesses an unmatched R&D capability enabling them to research on new ice cream products to satisfy consumers’ needs and retain their loyalty. In addition, Nestlé also has a huge resource pool, which they can utilize to expand their product lineup and business portfolio through various merger and acquisitions.
Nestlé entered into the US premium ice cream market in 2002 through the acquisition of Dreyer’s ice cream followed shortly by Movenpick in Switzerland and Häagen-Dazs. This acquisition allowed Nestlé to venture into highly desirable niche premium market and expand their global coverage. It was not long before Nestlé overtook Unilever as the biggest ice cream manufacturer in 2011, in terms of both sales volume and market share (Nestlé: 17.5% vs Unilever: 16%).
Switzerland, despite being Nestlé’s home market, did not provide a significant inflow of revenue. On the other hand, Nestlé derived most of its revenue from foreign markets which it has penetrated into, for example the USA and Europe. When news of the booming financial market in Asia went viral, Nestlé did not lack to expand its influence into emerging markets in Asia, especially China whereby they sell ice cream to cater for the local taste through its multidomestic corporate strategy.

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