Analyzing Nestlé’s growth strategy: How the company is prioritizing health & sustainability across its portfolio - CB Insights Research (2024)

FAQs

What is the most popular growth strategy of Nestlé? ›

Sustained growth

Our aim is to sustain a mid single-digit organic growth rate through rapid innovation, market share gains and portfolio management.

Nestle's vertical diversification entails seeking growth and business development by introducing new products within existing product lines. Horizontal diversification occurs when Nestle decides to introduce and participate in new product developments and launches that are unrelated to existing products.

In conclusion, Nestlé's global market success can be traced to different components including supply chain ability, global presence, research and development capabilities, breadth of its product range, brand value and supportability commitment.

Our talent acquisition and retention approach is outlined in our People Strategy 2025 for building a future-ready workforce; developing leadership that is inspiring, disruptive and inclusive; and, by offering employees new experiences, fostering a culture that is agile and purposeful.

Nestlé's financial strategy aims at striking the right balance between growth in earnings per share, competitive shareholder returns, flexibility for external growth and access to financial markets.

Nestlé India plans to invest ₹4,200 crore ($564 million) by 2025 to expand its manufacturing capacity for noodles, coffee, and chocolates in the country. The investment will help the company meet the demand for both mass and premium products. Suresh Narayanan, chairman and managing director of Nestlé India.

We have set an ambitious, company-wide target to grow the sales of our more nutritious products by CHF 20-25 billion by 2030, representing about 50% growth over 2022.

Full-year 2024 outlook confirmed: we expect organic sales growth of around 4% and a moderate increase in the underlying trading operating profit margin. Underlying earnings per share in constant currency is expected to increase between 6% and 10%.

We remain focused on achieving and maintaining 100% deforestation-free primary supply chains for meat, palm oil, pulp and paper, soy and sugar, and aim to do so by 2025 for coffee and cocoa. We are committed to certifying all Nestlé Waters sites to the Alliance for Water Stewardship (AWS) Standard by 2025.

Strong Brand Portfolio: Nestlé owns some of the most recognized and respected brands in the world, including Maggi, KitKat, Smarties, Milo, Nescafé, and Purina. Its brand portfolio includes over 2000 brands that cater to various consumer needs and preferences.

What is Nestlé's targeting strategy? ›

Nestlé's targeting strategy extends beyond standard practices, providing a comprehensive range of products to an array of different target groups. Their ability to identify and accurately target their market segments has played an integral role in making them one of the world's leading food and beverage companies.

Nestlé has placed itself as a prominent food, nutrition, health and wellness company. Its competitive strategies are mainly focused on foreign direct investment in dairy, ready meal and other food businesses.

Nestle's marketing strategy complements its tagline, “Good Food, Good Life,” with campaigns that convert. From Nestle's social media strategy to its in-store promotional banners, the brand's marketing strategy is a testament to Nestle's mission of harnessing the power of food to raise people's standard of living.

Key factors for Nestle's success include its highly developed HR department, understanding local cultures and needs, producing high quality products at lower costs, and operating in a favorable business environment with few competitors.

Prioritising the sale of healthier products will help Nestlé protect long-term brand value and growth. A shareholder resolution at Nestlé's AGM on 18 April 2024 will ask Nestlé to set a target to increase the proportion of its sales that come from healthier products.

In emerging areas, Nestlé employs a localization/regionalization approach. This indicates that the business customizes its goods and marketing plans to suit the local customs and tastes of each nation or location.

Nestle's broad differentiation strategy is a business strategy that aims to differentiate the company's products from those of its competitors across a wide range of attributes. This includes taste, quality, convenience, nutrition, brand image, and customer service.

Our goals are ambitious – we aim to achieve net zero emissions by 2050 and we have a detailed plan to get there. The majority of our packaging is recyclable or designed to be, and we are helping advance recycling infrastructure – because it should be easier for you to recycle.

What is Nestle India's Share Price in 2024? Nestle India's Share price target for 2024 is between Rs 3,197 and Rs 2,431.

Our priority is to grow our portfolio segments with a Health Star Rating (HSR) ≥ 3.5 and specialized nutrition products. We have set a new and ambitious target to grow the sales of more nutritious products by CHF 20-25 billion by 2030, representing about 50% growth over 2022 sales.

Which growth strategy is most commonly used? ›

Market penetration

According to the Ansoff Matrix, this strategy carries the least amount of risk, so it tends to be the most commonly used by companies when they want to grow.

Nestlé's positioning strategy aims to keep them at the top of consumers' minds when it comes to quality, nutrition, health, wellness, innovation, variety, and sustainability. By focusing on these elements, they manage to maintain their position as one of the world's leading food and beverage companies.