The business model canvas (BMC)
Customer segments Value proposition Channels
Individual and families To improve 30 million Retail stores
Communities livelihoods in communities Media
Average range directly connected to their Social media
Homes business activities News
Office Nestles’ purpose is Websites
enhancing quality of life and
contributing to a healthier
future.
Nestle is the world’s largest
food and beverage company.
Customer relationships Revenue streams Key activities
History and innovation Nestle health science Producing flavoring
combined product ingredients and natural
Trust Retails sales casing
Quality Coffee machine and Operations
Online shopping accessories Manufacturing
Online sales Networking
Key resources Key partners Cost structure
Production plants One of the main Spend about $350 million
328000 employees shareholders of L’Oreal. on dermatology Research
418 factories in 36 Memberships of Fair Labor and Development
countries Association. Chocolate price fixing
Brand portfolio Partnerships with IFRC Purchases
Farming community Taxes
Alliances
The business model canvas (BMC).
Customer segment
Every consumer has different needs. Hence, it is not possible to satisfy every customer using a single
product. To overcome this matter Nestle has produced many dairy and beverages product. Produce variety
of product that allows everyone to consume it. For example, in consumer product, Nestle baby milk product
is segmented only to infants and toddlers. Nestle not only focusing on one basic need which is hunger, but
also nutrition provided.
Channels
Nestle promote their new product using many media such as news, websites, and social media where these
are the most effective way to introduce new product to consumer.
Key activities
Nestle is very concerned to its manufacturing operation to ensure they achieve their production daily corner.
Their R&D tried to produce new flavoring ingredient to introduce. Nestle has quite effective strategic
marketing capability.
Value proposition
As the world’s largest food and beverage co, Nestle tried to give nutrition to every consumer based on their
purpose is to enhancing quality of life and contributing to a healthier future. It also to improve livelihood in
communities which directly connected to their business activities.
Customer relationships
Nestle emphasis on using today’s information technology, which they believe it will present a long-term
opportunity for them to sell their product. Nestle also has better technological capability, for instance, to
renovate the existing products to be innovative, higher quality, and much healthier product. With this all in
gain trust from consumer to use their product.
Key resources
One of the main key resources is production plants which refer to geographical scope like global, regional or
local. These is the main factor at the first time product was introduced to ensure people nearby accepted it
before it goes into larger scale production.
Key partners
Nestle join partnerships with other company to gain financial value and other resources, aligned with impact
and scale. Alliances also help nestle to overcome problem that occur or to add value in their shareholder.
Cost structure
Every year Nestle spend about $350 million on dermatology Research and Development to make sure their
product evolve to better depends on the environment and condition. They also cost a lot to get the main
ingredient because of higher price of raw materials nowadays. The increases of taxes and other material
cause increasing cost production every year.
Revenue streams
The lunch of new products and strong consumer and trade promotion were key contributors to nestle
revenue growth. This improve performance was underpinned by higher domestic sales, especially during
festive season, as well as growth in nestle export business.
