Competitive Advantages of Nestle:

• Leading overall market position and number one or two brands in most areas.

•The extraordinarily large scope of Nestlé’s business provides for significant economies of scale in
manufacturing, marketing and administration.

•The research and development capabilities allow the Company to lead the way in innovation and
provides for maximum portfolio flexibility.

Competitors of Nestle:

•Food and Beverage: P&G, Mars, Danone, Kraft, ConAgra Foods, Sara Lee, Kellogg’s, Unilever.

•Commercial Products and Pharmaceuticals: Johnson & Johnson, Novartis, Bayer, P&G.

•Private Label: Costco (Kirkland’s Signature), Wal-Mart (Sam’s Choice, Great Value), Loblaw (President’s
Choice), Aldi, TESCO.

•Regional and Local Manufacturers: China Yurun Food, Nissin Foods, Indofood Agri, Illova Sugar, Marfrig
Alimentos, etc.

Barriers to Entry for Nestle:

•Economies of scale - To be successful in today’s food and beverage sector the cost component is critical
and economies of scale are a main cost driver.

•Shelf space - Between the shelf share of multi-billionaire brands and the recent push of retailer driven
private-label products a new entrant would be challenged into executing a successful distribution
strategy.

GENERIC BUILDING BLOCK

INNOVATION : Innovation is one of Nestlé's key competitive advantages. We have more than 140
years of research, development and scientific know-how. While there is a great deal of pure and applied
science research that takes place in our global R&D centres, Nestlé ensures that the consumer, and the
consumer benefit, remains at the core of all our activities.

Consumer Benefits
Nestlé R&D addresses three areas of benefits for consumers:
 Safety and Quality - this underpins all Nestlé products
 Nutrition and Health
 Taste, Texture and Convenience
 The last years of the 20 century saw a change in Nestlé’s business strategy. The company moved from
being a technology led company that produced convenient, tasty foods and beverages for sustenance, to
being a science driven, nutrition, health and wellness company.

Meaty soup granules

Maggi Mysabaw is a granulated meaty soup bouillon with the delicious flavour of meat, umami, and the
fresh taste of onion and garlic.

 Svelty Gastro Protect

 Size matters: How do you know if your pet is overweight?

 Sensational pleasure from La Laitière

 Affordable fortified milks

 Crunch Nougat Rolls: Indulgent breakfast cereals with whole grains, minerals and
vitamins

 Yang Sheng Le: Soup base with Chinese herbs

 Pensierini filled pasta: Balanced nutritional composition, Vitamin E, Calcium

 Light ice-cream: Low Temperature freezing – ½ the fat with all the pleasure

 Protection through probiotics

 Foam Booster - Creating the perfect cappuccino at home

 Easy opening and side pouring

 Future
The future for Nestlé's R&D is firmly set on the path of Nutrition, Health and Wellness. The innovations
and product renovations of the coming years will be driven by nutrition that is tailored to better meet the
needs to our consumers. These needs may be defined by our genes, the metabolites that our body
creates or by the way the brain perceives food. At the same time Nestlé R&D is committed to continuous
improvement in consumer insights, and translating these into innovative products and packaging to meet
consumer needs and preferences.

Reduction in environmental impact of packaging

Nestlé is committed to reducing the environmental impact of packaging without jeopardising the safety,
quality or consumer acceptance of its products.

 Kansei Engineering: Nestlé embraces the Kansei design method

 Functional Genomics and gene expression

 Metabonomics – What metabolic profile are you?

 Biovailability of nutrients

 Personalised nutrition – Getting to know the consumer better

CONSUMER RESPONSIVENESS : FACEBOOK FLOP OF NESTLE UPSETTING GRENPEACE

CROWD, ENVIORNMENTALISTS, HUMANITARIANS, & PROFESSIONAL COMMUNICATORS AS
WELL. WHEN NESTLE POSTED A WARNING ON ITS FACEBOOK PAGE ASKING PEOPLE NOT TO
ALTER COMPANY’S LOGO AFTER DOZENS OF POSTS POPPED UP CHALLENGING NESTLE’S
UNPOPULAR BUSINESS PRACTISES , SUCH AS DESTROYING RAINFORESTS AND TALKING
MILLIONS OF THIRD WORLD MOTHERS OUT OF BREASTFEEDING THEIR CHILDREN. AS A
RESULT NESTLE’S SOCIAL MEDIA TEAM RESPONDED WITH TERSE REPRIMANDS AND THE
DEBATE HEATED UP FASTER.

PEOPLE’S REACTIONS TOWARDS IT:

 1. CONSUMERS BCKED BY GREENPEACE ARE TRYING TO ENGAGE THE BRAND ONLINE
ABOUT THE ISSUE & SOME PLACED ALTERED VERSIONS OF NESTLE’S LOGO ON THEIR
PROFILE PAGES AS A FORM OF PROTEST & THE COMPANY’S CRISIS COMMUNICATIONS
RESPONSE HAS TO PASS NASTY INSULTS AS INSANE.
2. ACCUSED OF BAD SOCIAL NETWORKING IN MANAGING PUBLIC RELATIONS IN 2010.

THE PR TEAM NEEDS TO MANAGE CRISIS COMMUNICATION BEFORE THE CRISIS HAPPENS
AND NOT AFTER THAT