Business Case Studies, Marketing Strategies / Strategic Marketing Case Study, Nestlé, Rejigging Product Portfolio on the Health Plank

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Case Title:

Nestlé: Rejigging Product Portfolio on the Health Plank

Publication Year : 2007

Authors: Shital Vakhariya & Mridu Verma

Industry: Food, Diary and Agriculture Products

Region:US

Case Code: MKS0107P

Teaching Note: Available

Structured Assignment: Not Available

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Abstract:
Nestle S.A. (Nestle) was a leading global food and beverage company. Nestlé’s product portfolio ranged from baby foods and pet care to chocolates and mineral water. However, the global food industry saw declining sales. With consumers switching to health food, the industry faced new challenges. So in 2001, Nestlé increased its product offerings by venturing into the health food segment. It repositioned its products to take care of good nutrition, health and wellness. The case study discusses Nestlé’s strategy for the nutrition food segment and its attempts to create a new market segment.

Pedagogical Objectives:

  • Discuss Nestlé’s innovation and diversification strategy
  • The concepts related to consumer preferences and changing trends
  • Nestlé’s product line extension strategy
  • To analyse the Nestlé’s strategy to compete with its rivals
  • Discuss the future prospects of Nestle with reference to increasing competition.

Keywords : Food & Beverage company, Obesity, Health consciousness, Innovator, Health care market, Nutrition Division, Aggressive price, Competitors, Marketing Strategies Case Study, Market share, Product re-launch, low carb diet, Extended its product line, Growth Fund, Expansion through acquisition, Promotional efforts

Contents:

  • Introduction
  • About Nestle
  • Background Note
  • Nestle and Health Care Market
  • New Initiatives
  • Outlook

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