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Nestlé: Rurban Strategy

內容大綱
In 2023, the urban-centric food and beverage company Nestlé India (Nestlé) had accelerated its focus on the smaller towns and cities of India and upped the ante on on-the-ground activations in these markets. At the same time, it had not lost sight of its previous core market of urban customers. The company called its business plan—to remain deeply entrenched in the stronghold urban territories and concurrently increase traction in newer semi-urban and rural areas—a “rurban” strategy. Was this a viable strategy? Nestlé would have to cater to diverse consumer preferences across different geographical regions, cultures, and income groups in India and balance affordability and quality to woo price-sensitive Indian consumers. It would also have to determine which distribution approach would be most effective to tap rural customers.
學習目標
This is a quick case that can be read and discussed in class. The case can be taught in a class on strategy in undergraduate- and graduate-level strategic management courses. It can also be taught in a session on rural marketing in a marketing management course. Working through the case and assignment questions will give students an opportunity to do the following:<ul><li>Outline the elements of the marketing mix for rural areas.</li><li>Explain the concept of a k-shaped recovery.</li><li>Describe how a functional-level strategy is derived from a corporate-level strategy.</li><li>Analyze different distribution approaches, and identify the pros and cons of these approaches.</li></ul>
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