Nestle case study

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NESTLE CASE STUDY

Nestlé brings to mind its best-known product: chocolate. However, the company has become one of the world's largest companies when it comes to food, wellness and health. With more than 150 years of history, Nestlé has earned a prestigious place in the world of the world's largest companies. Its products are synonymous with good quality, and its brand image is still intact years after the company entered the market.  We analyse their business model below.

Origin of Nestle

Henri Nestlé worked as a chemist in Germany, who moved to Vevey in Switzerland in 1943. Their aim was to find an alternative option to breastmilk.to help mothers who were unable to feed their babies. This is how he created the initiative he named Nestlé. After several years of research, the first cow's milk product with wheat and sugar is born. A combination that saved a premature baby's life. Here begins the success story of a company that started to become popular by marketing condensed milk and chocolate milk. Other brands such as Nescafé and Maggi would follow, as well as the acquisition of many others, creating a huge empire with more than 2,000 brands and a presence in over 190 countries.

Nestle's business model

Nestlé operates under a very distinctive business model: a model business model of shared value creation (hybrid model). The objective is to generate value for society through the company's activity. This value is oriented towards sustainability and improvement of the quality of life of society at large. In short, it is about creating value, not only for the company, but also for customers, employees, shareholders and suppliers as well as the environment of each of these groups. This is achieved by production of healthier and more nutritious products, which generate benefits for the society for which they are intended.

Nestle Canvas Canvas

Nestle Canvas Canvas

VALUE PROPOSAL

The main value proposition on which Nestlé's business model is based is to focus the activity on the fact that to improve the quality of life of society, both now and in the future. It offers high quality food and beverages made with local and healthy products, with the aim of promoting a healthy lifestyle. On the other hand, Nestlé aims to provide clear communication about how each of its products are made, so that each of its customers can choose its products and introduce them into their diet, knowing all the information at first hand.

CUSTOMER SEGMENTS

Nestlé's target customer groups are mainly demographically segmented according to the different product lines it offers:

  • Familiesare consumers who buy in larger quantities, as Nestlé's product lines are part of a daily diet.
  • Individual consumers (adults, young people, children and babies)Each age group has a line of products adapted to its needs. For example, there is a line of baby food products, or coffee brands for adults and young people, as well as a wide range of dairy products and bottled water.

CHANNELS

The main channels through which customers can contact the company are:

  • Retail shops.
  • Social networking.
  • Website.
  • Customer Service: both by telephone and e-mail.
  • More specific channels that form part of their most recognised brands: Boutiques with the Nespresso business model, Nesspreso Club.

ACTIVITIES

NESTLÉ'S MAIN ACTIVITIES ARE:
  • Marketing and advertising: Nestlé is a particularly careful company when developing its advertising campaigns, transmitting the brand's values and offering a sustainable company image and concerned about the health of its consumers.
  • Manufacturing and production of its own products, as well as food processing.
  • Logistics.
  • Networking.
  • Quality control.
  • Research and Development: Nestlé uses the scientific research in the field of nutrition to be able to apply it in the production of their products, making them healthier, safer and also better value for money.

CUSTOMER RELATIONS

HOW DOES NESTLÉ COMMUNICATE BRAND VALUES TO ITS CUSTOMERS?
  • Customers accessing Nestlé's products can consult the company website. Here you can see how Nestlé makes each of its products. In addition, the company is also showcasing the different initiatives it has launched to promoting healthy eating starting from childhood. Nestlé also provides information on how it works sustainably to reduce its environmental footprint.
  • Nestlé Family ClubThe brand's website: consumers can access a specific space to take advantage of discounts, find out about all the brand's new products and promotions, view recipes or follow tips for a healthier lifestyle.
  • Consumer Servicescustomers can contact this service directly to resolve any queries related to the brand's services and products.
  • Social mediathrough these spaces, customers can contact the brand, express their complaints or needs as well as give their opinion on the products.
  • Retail shopsNestlé's food and beverages: in these spaces, customers can get to know the Nestlé brand products up close, check the nutritional value of the food and taste them.

SOURCE OF INCOME

Nestlé obtains revenue mainly from the sales of the different brands it owns.. These include beauty brands, children's product lines, food, beverages and animal products.

RESOURCES

  • Production plantsThe main part where the elaboration of the different products of the brand takes place.
  • EmployeesNestlé works with around half a million employees in countries around the world.
  • Raw materialssustainably sourced and from which Nestlé produces its products
  • BrandsNestlé is home to more than 2000 brands grouped in different categories such as bottled water, coffee, pet food, baby food, cereals, chocolate, health care, professional market products, dairy and ready meals.
  • WebsiteThe website: houses the activity, values and history of the brand, as well as all of the company's initiatives and projects. It also has a space for consumers to contact the company.
  • Social media

PARTNERS

NESTLÉ'S MAIN PARTNERS ARE:
  • Suppliers of raw materials.
  • Key partnerships of shareholders.
  • Researchers involved in R&D Nutrition and Food.
  • Owners of sustainable dairy farms.
  • Retail shops.
  • Sponsoring companies.

COST STRUCTURE

THE COSTS INCURRED BY NESTLÉ AS A RESULT OF ITS ACTIVITY ARE AS FOLLOWS:
  • Costs arising from advertising campaigns.
  • Production and manufacturing.
  • Maintenance of infrastructures and facilities, as well as web platform.
  • Distribution of its products through its sales channels.
  • Salaries of employees.
  • Taxes.
  • R&D investment.

NESTLÉ CURIOSITIES:

  • Have you ever wondered what the Nestlé logo means? The brand's distinctive bird's nest comes from the word "nest", which means "bird's nest". The addition of the suffix "-e" forms a diminutive. Nestlé therefore means "little nest".
  • Although known for its food products, Nestlé is a major shareholder in the cosmetics brand L'Oreal.
  • Curiously, the two periods of the brand's strongest growth coincided with the First World War and the Second World War.. Its flagship product was the coffee that soldiers drank.
  • Nestlé is the world's largest food company.

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Jaime Cavero

Jaime Cavero

Presidente de la Aceleradora mentorDay. Inversor en startups e impulsor de nuevas empresas a través de Dyrecto, DreaperB1 y mentorDay.
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