What is the company’s strategy with regard to business development in emerging markets? Does this strategy make sense?
The core of the company’s strategy when it comes to emerging markets is “Customization rather than globalization”. They take the time to research and develop products suitable to the specific market, thus making them accessible to the target market on both a functional and emotional level. Having personally worked for Nestle India (specifically in their instant-noodle & soup brand “Maggi” division), I have first-hand witnessed how meticulous the company is with their implementation steps. The flavors of the Instant- Noodle are closely matched the familiar “masala” taste & Spice The brand “Maggi” has become synonymous to instant-noodles in the country due to the SBU’s continued due-diligence. Every few years, the company evaluates the flavors and tries to introduce product variations and flavor profiles. They constantly manage to interact with the target influencers (school students) by having partnerships with several big private schools throughout the country. The top management for the Nestle India division comprises primarily of local executives reducing any resistance or hostility from the employees and customers. They trained the employees on both the global as well as the local perspective of the country and had several incentive programs to encourage involvement. I have always admired their strategy implementation techniques, then as an employee and now as an analyst.