North South University

School of Business and Economics

Department of Marketing and International Business

Semester: Spring 2020

Course Code: INB 372, Secti on: _ 10 ____

SLA Case Study

Faculty: SSA1

Date: 26 th April 2020

Marks obtained:

(This space is for faculty’s usage. Do not write here.)

Name ID
Sanjida Samiha 1821338030
Tajkia Tarannum 1620090030
Abir Mashrur 1812482630
Jubayer Ahmed Yean 1721357630
Munif Ittehad Tanim 1731285630

1. Does it make sense for Nestlé to focus its growth efforts on emerging markets? Why?
The growth level of Nestle is rising in developing nations such as China, South East Asia and a
few markets of Middle East, Africa and Latin America. Thus, it makes sense for Nestle to
focus its growth in emerging markets. The reasons are given below
 Its growth developed by mergers and acquisitions.
 Expanding the operations along with increase in market share in emerging markets.
 Rising markets are providing a lot of opportunities for Nestle to expand their business
in certain growing economies.
 Growing economies can provide them opportunity for future sustained growth.
 Fast-growing emerging markets will enable them to make future market growth with
the help of new products as well as their existing products.
 It is important for Nestle to expand its market in emerging nations for its future growth.

2. How is culture influencing Nestlé’s product development and marketing strategies around
the globe?
Cultural preferences have greatly shaped Nestle’s product development and marketing strategies
around the globe. Through an intense process of research and development in local affiliates,
Nestlé is able to find certain product variations that are suitable for a given market.
1. Key attitude like pragmatism, flexibility, willingness to learn, open mind and respect for
other cultures makes Nestle cross cultural borders easily.
2. A home to 8000 different brands, Nestle shapes their local brands to meet the customer
demands for that particular region. Other products like, Nescafe and KitKat have the
identical marketing strategies in all the markets.
3. Nestle has merged all the brands into their single identity which incorporates all the
products, brands and production strategies and optimizes line of production to yield high
returns.
 4. Nestle knows food is always local, hence while providing the basic food needs such as
infant formula, condensed milk, noodles, and tofu, they do not provide much variations
in the 70 different countries they operate in.
5. Nestle is the world’s biggest producer of halal food, which makes it widely popular in
the Muslim community.
6. KitKat has numerous flavors in Japan that cannot be found anywhere else
7. Even within Japan, Nestle has variations for small parts of the country. These variations
range from yubari melon and baked corn from Hokkaido Island to cherry and bean
flavoured chocolate bars in the Tokyo region
Hence we can see that different tactics are used to make sure Nestle is adjusted into different
cultures across the globe.

3. Do you think the formation of EU might have benefitted Nestlé? Justify your answer.

The formation of the EU helped Nestle just like it helped many other companies as-

 A larger portion of the European market became accessible after the fall of the Berlin wall
to Nestle.
 The Chinese market became available to the company because of the political and
economic stability ensured by the EU.
 Nestle diversified widely and acquired many companies to enhance their product line and
offer to a larger number of customers.
 The company could easily acquire other popular brands such as Ralston Purina, Dreyer's
ice cream, Movenpick ice cream, Chef America,Jenny Craig and Uncle Toby's.

4. How would you describe Nestlé’s entry mode across the globe? Explain with examples.
5. Critically analyze Nestlé’s business strategy for international markets.

 Nestle has been following a lot of strategies while entering international markets. One
response has been to look toward emerging markets in Eastern Europe, Asia, and Latin
America for growth possibilities. The logic is simple and obvious— a combination of
economic and population growth, when coupled with the widespread adoption of market-
oriented economic policies by the governments of many developing nations, makes for
attractive business opportunities.
 The company’s key strategy has been to enter emerging markets early—before competitors
—and build a substantial position by selling basic food items that appeal to the local
population base, such as infant formula, condensed milk, noodles, and tofu. By narrowing
its initial market focus to just a handful of strategic brands, Nestlé claims it can simplify
life, reduce risk, and concentrate its marketing resources and managerial effort on a limited
number of key niches. The goal is to be a market leader in each of these niches.
 Customization rather than standardization is the key to the company’s strategy in emerging
markets. They make their products consumable by every market segment. For example,
they produce halal food more than any other company in the world, so that the muslim
communities around the world are not left out.
 Among the 8000 brands under Nestle, some local brands are designed to perfectly meet the
demand in that particular market and are distributed solely in this one region I,e kitkat in
Japan. Other, global brands are distributed worldwide or at least in several markets at the
same time and advertised almost identically in most of those markets.