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NUMICO The NUMICO’s strategy is usually translated by product development with nutritional products for hospital and by market development with sport diet. Research and development have been an important activity in NUMICO which watched over baby food and clinical diet. NUMICO made many acquisitions in many countries.
His strategy was based on “Medical Platform Marketing” which is: Substantial spend on the two R&D and marketing
NUMICO bought Standard Nutrition Businesses (GNC) of Pittsburgh (USA) in 1999 which allows NUMICO to fully make use of the division network of GNC Attaining GNC was obviously a sensible maneuver, it was reducing the competition and on the other hand it was improving the overall performance. As we observed it recently, NUMICO’s strategy is translated by product development with dietary products pertaining to hospital through market expansion with sport nutrition which usually led to the diversification with altogether new markets and new products.
We can see on this strategy initial’s NUMICO positioning and the new positioning of NUMICO when the goal has been afflicted. To conclude, Numico diversified by buying European companies in the field of neutriceuticals and by heading from his principal activity. At first there may be backward incorporation with raw materials manufacture that happen to be food product intended for babies (milk, vegetables, meat, …) and nutrition solutions. The components make are: plastic-type, packaging.
In addition, the R&D is interested by foods for infants and specialized medical nutrition. There is a lot of alternatives for a company. The lateral integration are the more competitive product which can be baby food, and after nutritional items, sport nourishment with supporting capabilities like R&D and marketing. To get forward the usage, distribution retailers are supermarkets, hospitals, specialized stores, … In 1999, NUMICO acquired an organization bigger than them when it comes to production and revenue.
When ever NUMICO bought General Nourishment Companies (GNC) of Maryland (USA) it had been the largest company of nutritional product in the world with a stronghold in sports-nutrition market. Its characteristics demonstrate that GNC is a Celebrity. NUMICO the cash cows becomes a Superstar thanks to this business. Moreover this acquisition enables a market penetration consolidation. Purchase of new businesses far from NUMICO’s key business produced NUMICO its very own rival since NUMICO previously had the presence in the market.
There is a risk from the growth of the activities in america (change dollars euro) Furthermore, sales of nutritional supplements were more sensitive to economical fluctuations. Besides, their main revenue generator was still baby formula Therefore NUMICO failed this variation Numico’s superstar was newborn product although due to wide range of exposure in low beginning rate countries their business was decreasing at an mind boggling rate. Numico should turn their infant product in cash cow by offering price leadership
NBTY’s success results: firstly, better strategy: excessive margin / growth business Secondly, vertically integrated business: producer and distributor Lastly, Match between core competences NBTY’s and Rexall They have allowed Danone to strengthen in products pertaining to baby (Danone already detained Bledina) and to enter out there of the medical nutrition. 2. With Numico the Group sharpened the health focus and turns into leadership of the baby and medical nutrition markets worldwide. * With Numico and Bledina merged, Danone is now Europe’s leading company pertaining to baby nourishment.
Two specialities which think of yourself as00 shock absorber in times of crisis. The first is sturdy because the father and mother don’t save on the food of their babies, the second is guaranteeing because of the getting older of the population. In 3 years ago, the acquisition of Numico produced Danone a world leader in baby and medical diet. At a time when ever many companies have their eyes around the health sector and wish to stake away positions, Danone’s exclusive give attention to healthy food sets it aside. ” Numico was a organic choice, having its links to health, development and quickening international expansion. ” Danone
