Cost Leadership Strategy Of Nestle

848 Words 4 Pages
Cost leadership strategy
Nestlé uses significant differentiate strategy for cost leadership strategy. Nestlé follows less price transparency and significant differentiate of products in business to enhance the productivity and profit of the organization. By using cost leadership strategy, Nestlé winning market share from the cost-conscious or price-sensitive customers. They follow this differentiation strategy due to the changing demand of customers. In addition, this strategy will decrease the risk of complexity of supply chain and lower attractiveness for discounters. They want be the top and revolution in their products. Nestlé maintain the quality of the products at the same time low charging in selling price of products will helps in maximise
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As a result, quality and nutrition need to address carefully. Nestlé has provide variety of beverages, milk products, prepared dishes and also chocolate. There are almost 6000 brand with a wide range of products such as baby food, cereal, dairy, coffee, ice cream, frozen food, healthcare nutrition, Maggi sauce, Maggi pasta, Maggi noodles, Kit Kat, Nestlé milk and many more. Some products have variety of choices such as Kit Kat, offer variety of favourite such as Orange, Mint, Green tea and Dark Chocolate. In addition, Kit Kat is produced within 21 countries by Nestle, including Germany, UAE, Egypt, Indonesia, Venezuela, and …show more content…
It consists of Manufacturing-C&F agent-Distributors-Retailers and Manufacturing-Bulk buyers-Consumers. In channel distribution, Nestlé channel is known to be strong with a good marketing and sales network. Nestlé frequently offers bulk buyers trade discounts to keep the sales high as one of the strategy to encourage sales. In addition, Nestlé regularly introduces trade discounts and various tactics to keep the channel motivated. The distribution of Maggi which is the most in-demand product along with Nescafe encounter the major challenge in placing it. Nestlé is able to drive other products in the market well because of most in-demand products Nescafe and Maggi. Moreover, Kit Kat able to sell in so many countries due to its unique appeal and common availability. Nestlé's global Kit Kat team has developed distribution channels to make sure “Two- and four-finger biscuits” is ready available in everywhere whenever customers wish to purchase. Therefore, customers able to find it easily especially in convenience stores, corner shops, and

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