Responding to changing customer requirements: the drive towards Wellness
A Nestlé case study

Page 1: Introduction

Consumer research shows that people are looking to adopt healthier lifestyles. Newspapers and television channels bombard us with health information and messages about the benefits of healthier living. Governments, keen to ensure that people are looking after their health in order to ease the burden on public health services, are also reinforcing these messages. As a result, many people are taking...
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Page 2: Responding to market demands

A market led company like Nestlé is continually monitoring customer attitudes and requirements through market research. This research takes two main forms: Qualitative research. This involves setting up small focus groups of consumers who express their ideas and opinions about their needs and views on different products. At one level, this might involve asking groups of athletes to...
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Page 3: Strategic development

A strategy is the means by which an organisation achieves particular ends. An agreed strategy answers the question "By what means are we going to achieve our objective?". For example, Nestlé's market research confirms that increasing numbers of consumers want to buy good tasting foods that can allow them to have healthier diets. Nestlé is keen to capture a greater share of this...
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Page 4: Ensuring strategic fit

An Environment, Value and Resources (EVR) fit is a simple but useful business tool to decide whether a proposed strategy is appropriate. The strategy the business chooses must match these three elements. For example, Nestlé's Wellness strategy must: Environment Match the strategy to the prevailing Environment, in which the business operates. In this case, it is a social environment, in...
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Page 5: Implementing the strategy

Having developed a clear strategy, it is important to implement it. Nestlé will look to ensure that going forward all its products retain a superior taste profile while providing enhanced nutritional benefits. This will involve: i. retain certain products ii. product reformulations (including salt, sugar, fat reduction) iii. launching new products with scientifically proven nutritional...
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Page 6: Conclusion

Consumer interest in the nutritional quality and health impact of foods has probably never been greater and for good reason. Governments have been busy 'spreading the message' that healthy foods and a balanced diet are vital for good physical and mental health and a general feeling of Wellness. Nestlé is one of the world's leading food companies and intends to remain so. Its commitment...
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