Nestle Foots Essay

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Nestle is the world's biggest food manufacturer, with well over 500 factories in 85 countries, and a portfolio that ranges from baby foods to pet care, from chocolate to mineral water. Its world-famous brands include Nescafe and Perrier, among many others. The group also owns a large shareholding in cosmetics company L'Oreal. As with other food companies, recent years have seen a greater concentration on a focused food and beverage business, its most successful line is its confectionery section.

Nestle Rowntree is the UK's #3 confectionery company (after Cadbury, and now behind Mars). It has a sizeable portfolio of well-known brands, and just under 18% of the UK confectionery market. By far the biggest brand is Kit Kat, which is
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Proportions of KitKat volume sales are 67 percent for the UK, 10.6 for Germany and 5.6 for France, and over the last decade overseas markets have grown by more than 50 percent.

Each product group has objectives. The company has a system that each brand has it's own brand plan. One of the strategic objectives is to increase sales across the European markets. Also meeting customer's expectation, and service with improving performance. And continuous innovation with existing brands.The company's long-term aim is to become the clear leader in the UK confectionery industry, and to generate real growth in the profitability and productivity of it's confectionery business.

The company's strategy is to pursue the company's objectives rather than to defend it's position against competitors. For example, some brands are `below threshold level' there objective is to improve performance to threshold level.

Basic principles drive the company's brand strategy, it believes in offering the consumer value for money. It also believes in developing long-term brands and also aims to differentiate its products from one another within the brand portfolio, which the company thinks will offer a competitive advantage over those of its competitors. Part of the company's brand policy is also to dedicate large sums of money to advertising and promotions. This helps to build customer loyalty and block the entrance of new competitors. On average, 10

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