Nestle and Unilever, Ice Cream Market Essay Example

forced to sell their products (organizational resources).

On the other hand, large market share allows Unilever to explore economies of scale. Unilever’s main strengths are: local brand image through local ice cream brands acquisitions that allows Unilever to profit from different regional market shares; development of well positioned and profitable products such as Magnum and Cornetto; large market share that allows the company to explore economies of scale and strong distribution links with retailers.

Unilever main weakness is the lack of investment on confectionary market. To face the threat of Nestle and Mars advantage on the manufacturing market, the multinational licensed two global brands: Cart D’or (Toblerone ice cream) and Lavazza coffee ice cream (from Kraft Jacobs Suchard). The problem with the licenses is that the profits have to been shared between Unilever and the brand owners.

If I was thinking about entering the ice cream market, I would adopt a similar strategy as Unilever: buy local brands and try to adjust my management strategies according to the local client’s tastes and demands. The second main investment would be in physical assets such as manufacturing installations and machinery and freezers to give, not rent, to local stores, so I could always have my brands present in those small retailers. (Continuing)