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Nestle's Diverse Product Mix Strategies

Nestle has a wide range of product lines that target different consumer segments. The document analyzes Nestle's milk products, which target parents of young children aged 1-5 and health-conscious adults. Within milk products, Nestle offers growing up milk, full cream milk, filled milk, and adult milk with functional benefits like bone and heart health. Nestle has a broad product mix width with 10 different product lines, and an average product line length of 2.8 items. The company can expand its business by widening its product mix with new lines, lengthening existing lines, adding more variants to deepen lines, or increasing consistency across lines.

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Mohammad Ali
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458 views3 pages

Nestle's Diverse Product Mix Strategies

Nestle has a wide range of product lines that target different consumer segments. The document analyzes Nestle's milk products, which target parents of young children aged 1-5 and health-conscious adults. Within milk products, Nestle offers growing up milk, full cream milk, filled milk, and adult milk with functional benefits like bone and heart health. Nestle has a broad product mix width with 10 different product lines, and an average product line length of 2.8 items. The company can expand its business by widening its product mix with new lines, lengthening existing lines, adding more variants to deepen lines, or increasing consistency across lines.

Uploaded by

Mohammad Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Product mix strategies of Nestle

Nestle has an extensive product mix targeted at many different segments of the market. The
chosen product category for in-depth analysis is Nestle milk products, which is targeted at
parents of young children (age 1 – 5) and health conscious adult consumers who desire to
retain heart and bone health. In the adult category in specific, the functional milks offer a
range of functional benefits, from cholesterol management and heart health to bone health.

A product mix is the set of all products a particular seller offers for sale. A product mix
consists of various product lines and has a certain width, length, depth, and consistency. The
table below shows the product-mix width and product-line length for Nestle products in
Singapore.

Product-Mix Width

Baby Foods

Milk

Cereals

Chilled Dairy

Ice Cream

Confec-tionery & Choco-lates

Beverages

Culinary/ Foods

Healthcare Nutrition

Perfor-mance Nutrition

Pet Care
Product Line Length

Junior Foods

Growing Up Milk

Breakfast Cereals

Yogurt Drink

Drumstick

Kit Kat

Milo

Maggi Noodles

Nutren

PowerBar

ALPO Dog Food

Infant Cereals

Full Cream Milk

Yogurt

MatKool

Milkybar

Nescafe

Maggi Porridges

Peptamen

Pro Plan Dry Food

Adult Milk

Take Home Tubs

Crunch
The width of a product mix refers to how many different product lines the company carries.
Nestle’s range of product lines includes baby foods, milk, cereals, dairy products,
confectionery, ice cream and chocolates, culinary foods and pet care products. Nestle also
provides a broad range of nutritional and flavored beverages and offers product line with
specific nutritional functions. The length of a product mix refers to the total number of items
in the mix. Nestle had an average product length of 2.8. Within the range of Nestle’s milk
products include growing up milk, full cream, filled milk and adult milk. The depth of a
product mix refers to how many variants are offered of each product in the line. For instance,
Nestle adult milk comes in two functional forms (bone and heart health). The consistency of
the product mix refers to how closely related the various product lines are in end use,
production requirements, distribution channels, or some other way. Nestle’s product lines are
consistent insofar as they are consumer goods that go through the same distribution channels.

Company can expand its business in four ways: it can add new product lines, thus widening
its product mix; it can lengthen each product line; it can add more product variants to each
product and deepen its product mix; or it can pursue more product-line consistency. To reach
our targeted market, Nestle can add new product line in the area of elderly health food, thus
widening its product mix.

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