Nestle’s strategy is geared towards reaching distinct geographic segments of the chocolate market as
opposed targeting the mass industry as a whole. Each region has been assigned a specific manager in
order to tailor to the operational needs of the segments which they are targeting. Operationally, this
strategy has led to an assortment of results with varying degrees of success.
Rowntree has become a coveted take-over target largely resulting from its organizational strengths in
terms of branding. Rowntree’s licencing agreement with Hershey has reaped numerous benefits for the
company. They have been remarkably successful within the chocolate industry, multiplying brand
equity with the consistent release of new products such as chocolate bars and breakfast cereals.
Rowntree’s biggest deficiencies lie with the lack of financial resources they have in order to grow
operations and market their confectionary products successfully. With their strength in brand equity
and name recognition as a huge surplus for interested buyers, Rowntree would be an excellent
candidate for acquisition. This would prove mutually beneficial for both Rowntree and the purchasing
company.