Nestlé’s ‘Nutritious’ Growth : Peter Brabeck’s Organisational Strategies



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Code : LDS0015

Year :
2006

Industry :Food, Diary and Agriculture Products

Region : US Europe

Teaching Note:Available

Structured Assignment :Available

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Abstract: At a time when the overall food market is growing sluggishly at 1.55 a year, Peter Brabeck, the CEO of the world’s largest food-maker, Nestlé, had different plans. He was too bold to see his company’s growth shoot up by 5%–6%, and that too excluding acquisitions. In a market scenario, where the demand in the food industry was shifting from convenience food to nutritious food, Nestlé decided to focus on becoming a ‘nutrition, health and wellness’ company. Nestlé made nutrition into a full-fledged business division, on par with other food and beverage divisions. This case highlights how Nestlé nourished its corporate culture towards innovation through R&D in health and nutrition, and developed strategic tools for consumer information and education, and marketing strategies. Acquiring the weight management company, Jenny Craig, was aimed at reinforcing Nestlé in the nutrition segment. However, Nestlé faced intense competition not only from other manufacturers such as Unilever, Kraft, Pepsi and Danone, but also from the growing popularity of private label brands of retailers like Wal-Mart, Carrefour and Tesco.

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Pedagogical Objectives:

  • To analyse the emerging trends, and identify the critical success factors and key growth areas in the food industry
  • To highlight the growth strategies implemented by Peter Brabeck to transform Nestlé into a ‘nutrition, health and wellness’ company
  • To examine the challenges to Nestlé’s success in the nutrition segment due to competition from other manufacturers and retailers.

    Keywords : Growth Strategy; Food and Beverage Industry; Health and Nutrition; New Growth Initiatives; Kraft; Growth Strategies Case Study; Danone; PepsiCo; Wal-Mart; Carrefour; Tesco; Customer-Centric Innovation; Inorganic Growth; Private Label Brands; Operational Efficiency – GLOBE; Consumer Trends and Preferences; Decentralisation; New Product Development; Innovation; Segmentation; Targeting; Marketing

    Contents :
    » Food & Beverage Industry: Competitive Dynamics
    » Nestlé Nutrition: Peter Brabeck’s Growth Strategies
    » Opportunities and Challenges


    Case Introduction >>


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