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October 22, 2019

Nestle forms new strategy unit

Nestlé is to start the new year with a unit looking at the world's largest food maker's "group strategy and business development".

By Dean Best

Nestlé is to start the new year with a new unit looking at the world’s largest food maker’s “group strategy and business development”.

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Sanjay Bahadur, a 30-year veteran at the Swiss food giant, is to head the new function, which will analyse the performance of the company’s brands and weigh up possible acquisitions.

Bahadur, who joined Nestlé as a management trainee in India in 1982, has, since 2008, been the head of acquisitions and business development at the KitKat and Maggi maker.

“In a period of rapid change in our industry, it will be more important than ever to recognise key trends early and to act on them fast, including but not limited to portfolio adjustments,” Nestlé CEO Mark Schneider said. “Sanjay brings deep operational and financial experience to his new role. He knows that only those strategies succeed that are implemented thoroughly and fast, and he has done a superb job overseeing our recent portfolio adjustments to position the company for higher growth.”

A Nestlé spokesperson said the new unit – to be based in Switzerland – will “encompasses internal opportunities as well as external ones”.

The spokesperson added: “This newly created function will have a broader scope. For example, the existing Portfolio Strategy and Business Intelligence function will become part of Group Strategy and Business Development and provide analytical and strategic assessments as well as external market analyses and internal portfolio performance reviews. In addition, the new unit … will look after Nestlé’s strategic business partnerships, joint ventures and brand licensing agreements.”

In 2017, Nestlé said it would focus its “capital spending” on “advancing high-growth food and beverage categories such as coffee, petcare, infant nutrition and bottled water”.

Asked if the new unit would focus on those four sectors, the spokesperson said: “The work will not be limited to the mentioned high-growth categories. It can also relate to any other strategic activity of Nestlé.”

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Unilever- A Deep-dive into Product Launches and Advertising Strategy

Unilever product advertising is mainly through mainstream TV channels. Out of the products advertised so far at least 50% (over 850) of ads have been run on TV, while print media comes second with 496 ads. Unilever also utilizes social media platforms for advertisement. Unilever products are categorized by innovation ratings and tags in our product launch database. The North American region consists of almost 74 products with innovations related to the formulation of the product. Europe and other regions also have more products categorized under formulation-related innovation, followed by the packaging and positioning of the products. Most Unilever products are tagged with “High Vitamins”, “Recyclable”, and “Natural” tags to understand what the product differentiator is from other products available in the market. The majority of products belong to the personal care industry with a total of 5,788 products to date. This report, through the Unilever Example, illustrates how GlobalData Explorer enables you to:  
  • Track product launches by FMCG companies to get an understanding of the product-level strategies including geographic concentrations, innovation types, product claim, category focus and more
  • Monitoring the advertising strategies of various brands and gain insights into channel focus, regional focus, and more
  • Perform company-level analysis to understand business model, size, and geographic focus
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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