Nestlé CEO, Mark Schneider, unveils a strategic shift towards prioritizing volume growth through increased brand investment and focused marketing strategies in 2024, signaling a new chapter in the company’s growth trajectory. Here’s what sets this approach apart:
- Volume Over Pricing: Recognizing the need for sustainable growth, Nestlé aims to pivot from relying on price increases to driving volume growth as the main driver of success. This shift underscores the importance of maintaining a balance between pricing strategies and fostering organic demand for products.
- Focused Brand Investment: Nestlé commits to boosting brand support, particularly for its “billionaire brands” like Nespresso and KitKat, by increasing marketing investment and targeting spending on proven winners. This strategic allocation of resources highlights the effectiveness of channeling efforts where they can yield the most significant impact in a competitive market landscape.
- Innovation and Premiumization: Emphasizing innovation and renovation, Nestlé aims to keep products fresh and brands exciting, focusing on premiumization to drive organic growth and enhance margins. This forward-looking approach underscores the importance of continually evolving products and experiences to meet changing consumer preferences and market dynamics.
This case underscores the vital lesson that sustained growth requires a strategic focus on volume expansion, supported by targeted brand investment, innovation, and a relentless commitment to keeping brands relevant and compelling in the eyes of consumers.