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Nestle Philippines

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Case Analysis on Nestle Philippines

I. INTRODUCTION
Background of the Case Nestle was the only foreign coffee producer in the Philippines owned by Nestle S.A. of Switzerland, the largest producer and marketer of food products in the world, and San Miguel Corporation, the largest beer brewer in the Philippines. For the past decades, the coffee consumption in the country has doubled causing its sales to increase. As Nestle’s market share increases it brought pressure to the company on how will they maintain high performance while facing the rapid change of the environment and competitors increase.
Statement of the Problem Nestle is the major producer of coffee in the Philippines, and over the past decade its market share has increased from 55% to 66%. Nestle has producing and selling many products, but Nescafe has the biggest role in increasing its market share. However, other major competitors had strategies that rocked the market share of Nestle, causing it to rise and fall for years; also increasing number of new entry of imported products and no name products. Nestle competes in maintaining their market position.
Objectives of the Case Study As the business environment in the Philippines is changing rapidly, the objectives of this study is to know (1) what are the factors affecting Nestle’s market position; (2) Nescafe’s role in rising and falling of market share; and (3) the strategies in maintaining its position.

II. FACTS OF THE CASE
Nestle Philippines Nestle first came to the Philippines as a trading company in the early 1930s. In 1962 it formed a joint venture with San Miguel Corp., the largest beer brewer in the Philippines with extensive interests in agribusiness, food products, and beverages. San Miguel’s Magnolia Foods Division had been merged with Nestle so that by 1996 San Miguel had a 45% equity share in Nestle and 65% owned by

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