Nestlé, the world’s largest consumer packaged food company, rocked the food space in 2018 by leaving the industry’s most

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Nestlé, the world’s largest consumer packaged food company,
rocked the food space in 2018 by leaving the industry’s most
powerful special interest group in the United States, the Grocery
Manufacturers Association (GMA), amid disagreements about how to
respond to changing consumer tastes. The GMA is famous as an attack
group for large companies like Kraft and General Mills on US
legislative and regulatory issues, but many major members now
oppose some of its positions. The departure of Nestlé (a
conglomerate that owns thousands of brands) was a major sign that
the GMA’s influence (and perhaps the whole food industry’s
influence) on US federal regulation may be weakening.
GMA’s problems first emerged in 2014 when the US Food and Drug
Administration (FDA) unveiled a plan to start requiring foods to
list “added sugars” on their labels by 2020. The GMA argued that
such changes would only confuse consumers, but some members
publicly disagreed. Mars (one of the largest private global food
companies) argued that it was good for their businesses to embrace
changes that they believed consumers increasingly wanted, and
Coca-Cola bypassed GMA to tell the FDA that the new labels should
be introduced sooner. According to one food marketing expert,
"These companies are realizing that being more progressive is a
good place to be…They get kudos for it."
Since 2016, more and more companies have left GMA. Last year, not
only Nestlé but also Dean Foods (the largest dairy company in the
US) and Campbell (maker of iconic red-and-white cans of soups,
Goldfish crackers, and V8 juices) left, in part because the GMA
found itself being mocked and scorned in the media for fighting
bitterly against mandatory labeling for foods with genetically
modified ingredients, or GMOs. The GMA, backed by scientists,
highlight that there is currently no evidence that GMOs are
unhealthy for consumption, but this has not stopped the rise of a
widespread belief among consumers that they are somehow dangerous.
Observing this, Campbell had already started GMO labeling on their
own, arguing that part of their values would now embrace the idea
that consumers should have more information about their food
(regardless of whether they understand or appreciate what that
information means). Campbell then then surprised the industry by
joining the Plant Based Foods Association (PBFA), a new competitor
to the GMA that represents alternative foods and “all natural”
companies. The PBFA has lately been more effective at negotiating
regulation than GMA, in part by arguing positions that are more
popular with consumers (which make it and its members look good).
Furthermore, PBFA membership dues for large companies like Campbell
were only $25,000 at the time, much less than the $317,000 Campbell
had been paying GMA.
Nestlé, a Swiss company, became the world's largest consumer
packaged foods company through many successful strategic
acquisitions in the countries they wished to enter. Based on the
information available, which of the following is
thus most likely true about Nestlé's
marketing strategy? Select all that
apply.
(A) They grow by following a market development strategy
(B) They enter new markets using direct investment
strategies
(C) They enter new markets using direct exporting strategies
(D) They grow by following a diversification strategy
(E) They enter new markets using joint venture strategies
(F) They pursue a product adaptation strategy as they enter new
markets
explain in 3 sentences (max)