Nestle Malaysia Case Study

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Part (b):Background of the Nestle (M) BHD
Brief history:
Nestle(Malaysia) Berhad is a subsidiary of Nestle Group which is a leading company in food and beverages field. Nestle began in Malaysia as the Anglo-Swiss Condensed Milk Company in Penang in 1912 and yet, the company then move to Kuala Lumpur in 1939 in pace with the sustainability development in the Nestle Malaysia. Nestle Malaysia with people-oriented principle has been produced more than 300 halal products in the markets which intend to provide best products through understand their customers’ needs and serve them with the best services. Initial factory of Nestle Malaysia is in Petaling Jaya in year 1962 and followed by seven manufacturing plants which are located in Shah Alam, Rembau
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Innovation
Nestle Malaysia has been capable to launching new products in market from time to time in all its categories of products in Malaysia. This is because they adhered to founder’s beliefs and principles and create shared value for society, stand on the view of customers as well as understand their needs in order to build the trust and protect the customers’ trust.
Differentiation
In terms of the differentiation, Nestle Malaysia emphasised on the overall products especially on the ingredients. This is because they adhered to strong values and principles of the company and understand their customers’ needs, wants and even demands in the era of globalization. They believe that the quality of the product its nutritional value is the most important thing and most easily to create value for customers and capture value from customers in return and helped to get ahead to lead the market.
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Therefore, Nestle Malaysia utilize their brand name as one of the strategy to gain the independent image and not affecting the other products of same company. Nestle Malaysia can easily promote and obtain the market share of some new products launched due to its branding that trusted by their customers and then achieve their sales’ target.
Strength and Weaknesses:
Strength
Weaknesses

1.Branding
Nestle’s is a well-known brand in the whole world include Malaysia. It is a leading company in Nutrition, Health and Wellness company. Nestle able to maintain the brand for over 100 years. Their products are buy and use by the million customers every day. Therefore, Nestle Malaysia can charge the higher prices for their products because of the brand name.

2.Customer loyalty
Nestle has a big pool of loyal customers due to its long history in the food and nutrition market. Customers loyal to Nestle also because of their high quality products that can satisfy customers’ needs. Thus, Nestle Malaysia will only need to target new customersin order to grow their business.

3.Strong

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