Nestlé: Rurban Strategy

In 2023, the urban-centric food and beverage company Nestlé India (Nestlé) had accelerated its focus on the smaller towns and cities of India and upped the ante on on-the-ground activations in these markets. At the same time, it had not lost sight of its previous core market of urban customers. The company called its business plan—to remain deeply entrenched in the stronghold urban territories and concurrently increase traction in newer semi-urban and rural areas—a “rurban” strategy. Was this a viable strategy? Nestlé would have to cater to diverse consumer preferences across different geographical regions, cultures, and income groups in India and balance affordability and quality to woo price-sensitive Indian consumers. It would also have to determine which distribution approach would be most effective to tap rural customers.