Nestle Case Study

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How can General Mills and Nestle create international competitiveness by joining forces in CPW? CPW or Central Partners Worldwide which was founded in 1990 as an equal shared venture between Nestle and General Mills in order to sell to-eat ready breakfast cereals worldwide. General Mills and Nestle was two separate companies before CPW. General Mills is a leading manufacturer of cereal food products. It operates more than 30 global markets and exports its products to over 100 countries. It has very solid technical excellence in production and production process which is called upstream process with respect to the current market. Also General Mills proven cereal market expertise and broad portfolio of successful brand. So it has 66 production…show more content…
America accounted for 42% the global sales which is around $28 billion in the year 2010. Kellogg Company has the highest market percentage by breakfast cereals according to the surveys 2010. Kellogg was started in 1906 in Battle Creek US. Currently Kellogg employees more than 25000 people and sells its product over 180 countries. According to the statistics Kellogg Company holds the record top percentage market share. In digits its 27% in Germany, 30% in UK, 30% and 30% from the World. A key target of the manufacturers are children and young women. Most of the time advertisements are aimed for that specific category by CPW. With parallel they were particular its association with sport personals. E: g: Tiger Woods. Cereal Partners Worldwide has performed in deploying new markets and developing markets in countries such as Russia and China, where Kellogg couldn’t establish a strong hold. Russia and China is a good assert for CPW as there is a rapid growth in the cereal breakfast. The Nestle brand was in Chinese market since 1990 providing good basement for the launch of Central Partners Worldwide in China. All the CPW’s breakfast cereals marketed under a universal name, as a strategy used by Nestle. CPW’s marketing campaign to rural and urban China is something people see from the great company…show more content…
Nestle and General mills has number of various items in their live production lines. And day by day they are innovating new products targeting specific groups of people and renewing the varieties for the current customer choices. Now with collaboration with these two to CPW, they have opportunities to introduce innovative products to the market. Blue oceans, most of the time they are associated with notable profit potentials so if the company want to archive the first place in the industry, company should have a clear pre-defined profit achievement

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