The business model canvas (BMC)
Customer segments
 Individual and families
 Communities
 Average range
 Homes
 Office
Customer relationships
 History and innovation
combined
 Trust
 Quality
 Online shopping
Key resources
 Production plants
 328000 employees
 418 factories in 36
countries
 Brand portfolio
Value proposition Channels
 To improve 30 million  Retail stores
livelihoods in communities  Media
directly connected to their  Social media
business activities  News
 Nestles’ purpose is  Websites
enhancing quality of life and
contributing to a healthier
future.
 Nestle is the world’s largest
food and beverage company.
Revenue streams Key activities
 Nestle health science  Producing flavoring
product ingredients and natural
 Retails sales casing
 Coffee machine and  Operations
accessories  Manufacturing
 Online sales  Networking
Key partners Cost structure
 One of the main  Spend about $350 million
shareholders of L’Oreal. on dermatology Research
 Memberships of Fair Labor and Development
Association.  Chocolate price fixing
 Partnerships with IFRC  Purchases
 Farming community  Taxes
 Alliances
The business model canvas (BMC).

Customer segment

 Every consumer has different needs. Hence, it is not possible to satisfy every customer using a single

product. To overcome this matter Nestle has produced many dairy and beverages product. Produce variety

of product that allows everyone to consume it. For example, in consumer product, Nestle baby milk product

is segmented only to infants and toddlers. Nestle not only focusing on one basic need which is hunger, but

also nutrition provided.

Channels

 Nestle promote their new product using many media such as news, websites, and social media where these

are the most effective way to introduce new product to consumer.

Key activities

 Nestle is very concerned to its manufacturing operation to ensure they achieve their production daily corner.

Their R&D tried to produce new flavoring ingredient to introduce. Nestle has quite effective strategic

marketing capability.

Value proposition

 As the world’s largest food and beverage co, Nestle tried to give nutrition to every consumer based on their

purpose is to enhancing quality of life and contributing to a healthier future. It also to improve livelihood in

communities which directly connected to their business activities.

Customer relationships

 Nestle emphasis on using today’s information technology, which they believe it will present a long-term

opportunity for them to sell their product. Nestle also has better technological capability, for instance, to

renovate the existing products to be innovative, higher quality, and much healthier product. With this all in

gain trust from consumer to use their product.

Key resources

 One of the main key resources is production plants which refer to geographical scope like global, regional or

local. These is the main factor at the first time product was introduced to ensure people nearby accepted it

before it goes into larger scale production.

Key partners

 Nestle join partnerships with other company to gain financial value and other resources, aligned with impact

and scale. Alliances also help nestle to overcome problem that occur or to add value in their shareholder.

Cost structure

 Every year Nestle spend about $350 million on dermatology Research and Development to make sure their

product evolve to better depends on the environment and condition. They also cost a lot to get the main

ingredient because of higher price of raw materials nowadays. The increases of taxes and other material

cause increasing cost production every year.

Revenue streams

 The lunch of new products and strong consumer and trade promotion were key contributors to nestle

revenue growth. This improve performance was underpinned by higher domestic sales, especially during

festive season, as well as growth in nestle export business.