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“Nestle expands into the luxury chocolate market” as a business strategy.

This market strategy attempts to appeal to a wider range of target consumers. Although the factor of disengaging is not clear, this strategy seems to hold aspects of McGrath’s transient strategy rather than Porter’s Sustainable competitive strategy. Although the Callier chocolate brand was owned by Nestle for centuries, looking at the business decision from the point of view of the UK or the US, this decision goes under the “launch” section of the transient strategy.

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The effectiveness of this strategy can be better understood when viewing from the scope of the business model canvas discussed in our lectures. The key value proposition associated with the change, is to cater luxury chocolates high in quality and unique in flavor. Previously, the customer segment for most of Nestle’s snacks were the general public who sought for low-cost snacks without a substantial focus on quality. However, this product appeals to a new target sector who seeks for luxury and high quality chocolates. This expands the general consumer target of Nestle-based products and can potentially bring new consumers into the market of other Nestle-based products.

As seen from the article, the key channels of this product is the online platform. “Amazon will be the primary method of delivering this product to consumers”, although they will be “also sold in major airports”. Because of this, Amazon and stores in major airports shall be a key partner as it helps deliver the product. In the scope of amazon, because of the high quality customer support on Amazon, using it as a key method of delivery can maintain customer relationships. In addition, amazon can act as an advertisement factor as the amazon platform recommends items to people who are seemingly interested in such markets. Amazon would potentially provide a great deal of benefits for the marketing of Callier, and when partnered with their Prime service, can also deliver the product effectively.

Nestle’s move follows the modern idea of McGrath’s transient strategy. In addition, it has a strong business model with a particularly clear focus on its value proposition, distribution channels, and key partnerships. This change for Nestle can be seen effective as it has clear positive effects, yet minimum negative consequences associated.

Dunn, Katherine. “Nestle Expands into Luxury Chocolate Market.” MarketWatch. MarketWatch, 1 Oct. 2015. Web. 03 Oct. 2015.