Comprehensive Study of By: Sumali Parikh B K School of ManagementP G Dip. In International Business (Evening)
Timeline / History Years Details 1866 Nestlé’s beginnings in Switzerland in 1866 1867 Henry Nestlés Infant cereal developed 1905 Nestlé and Anglo Swiss Condensed Milk Co. (new name after merger) 1907 Corporation began full-scale manufacturing in Australia, 1914 Corporation had 40 factories, & world production had doubled 1921 Corporation recorded its first loss 1938 Launch of Nescafé1944 - 1973 Dynamic Phase (1947 – Maggi, 1950 – Crosse & Blackwell , 1963- Findus, 1971 – Libby’s, 1973- Stouffer’s)1974 -1979 LOréal (associate) & Alcon >1980 Carnation (1985), Rowntree Mackintosh & Willy Wonka (1988) San Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002).2002 – 2003 Mövenpick and Dreyers 2006 Jenny Craig ( Diet / Weight Loss Program), Novartis Pharmaceutical 2007 Gerber, Pierre Marcolini. (Begian Chocolate maker) 2010 Krafts (frozen Pizza) 2011 Hsu Fu Chi International Ltd
Human Resource @ Nestle• Some of the things that make them stand out from the rest.• Nestlé employs over 283,000 employees globally• Nestlé has around 10,000 different products globally and around one billion products sold every day• One cocoa tree produces around 2,500 cocoa beans, which is the approximately 50 x 100g bars of AERO® Chocolate
Human Resource (cont.)• Nestle – A Human Company – The most important parts of Nestlé’s business strategy and culture are the development of human capacity in each country where they operate.• Training Programs at Nestlé – Guiding and coaching is part of the responsibility of each manager and is crucial to make each one progress in his / her position.• Literacy Training – A number of Nestlé companies have therefore set up special programs for those who, for one reason or another, missed a large part of their elementary schooling• Nestlé Apprenticeship Program – The young trainees spent three days a week at work and two at school
Human Resource (cont.)• Local Training – On-the-job training is also a key element of career development in commercial and administrative positions – The growing familiarity with information technology has enabled “distance learning” to become a valuable resource, and many Nestlé companies have appointed corporate training assistants in this area• International Training – For over 30 years, the Rive-Reine International Training Centre has brought together managers from around the world to learn from senior Nestlé managers and from each other. The centre delivers around 70 courses which is attended by 1700 managers from 80 countries.• Performance Management – Formal assessment by Line Managers and HR once in a year with feedback• Recruitment – People with realism, hard work, honesty and trustworthiness are looked for. Match between candidates values & company’s culture are recruited.
Human Resource (cont.)• Nestlé’s overarching principle is that each employee should have the opportunity to develop to the maximum of his or her potential.• Believe it pays off in the long run. Business results, that sustainable long-term relationships, highly competent people, the communities. Operates enhancing their ability to make consistent profits.• By offering opportunities to develop, not only enrich themselves as a company, also make themselves individually more autonomous, confident, and, more employable & open to new positions within the company.
Employees who joined as Trainees CAREER GRAPH OF PAUL BULCKE Nestlé S.A. Marketing Trainee (Switzerland, Spain, 1979 Belgium) 1996 Nestlé Portugal, Market Head 1998 Nestlé Czech and Slovak Republic, Market Head 2000 Nestlé Germany, Market Head Executive Vice President for Zone Americas: United States of2004-Jan 2008 America, Canada, Latin America, CaribbeanSince April 2008 Chief Executive Officer of Nestlé S.A. CAREER GRAPH OF PATRICE BULA 1980 Marketing Trainee –Switzerland 1983 Product Specialist – Nestlé Japan 1988 Market Specialist, Zone AOA – Nestlé Headquarters 1992 Market Head – Nestlé Taiwan 1997 Region Head – Nestlé Southern African Region 2003 Market Head – Nestlé Germany May 2011 Executive Vice President Nestlé S.A.
• Around 150+ Brands• Operating in 80+ countries• Nestle is the world’s largest dairy, with an annual turnover of more than U.S. 8 billion$. So they understand the dairy business better than anyone else.
Product StrategiesMilk Products and Nutrition• Nestle realizes the need to constantly add new products to its portfolios to cater to different market segments. This is in tune with a natural tendency to constantly innovate.• While products like caramel and milkmaid doing well, in recent times nestle has come up with products like Lassi, fruit n dahi, etc to cater unexplored segments of Indian market.• The example of nestle slim milk is a classic, on how it was positioned and which set benchmarks for others to follow.• The company worked on the Tasty bhi healthy bhi proposition to gain acceptance among both kids and mothers.• With other players like Amul and Mother Diary still ruling the tetra pack milk is a good way to have a major slice of market share and go for penetration
Product Strategies (cont.)Beverages• After 8 years of survey finally in 1938, the need for a soluble coffee felt was furnished by Nescafé invention• From making Nescafé by using 100% pure roast coffee beans to the birth of the granule in 1967• Company has then introduced Milo in 1996 as energy drink in competition with Bournvita and Boost
Product Strategies (cont.)Prepared Dishes and Cooking Aids• Considering the changes being faced and the margin trends in the global market Nestle launched another variation in its noodles category known by vegetable atta noodle.• Maggi soups are examples of product diversification being specifically targeted at different consumer profiles.
Product Strategies (cont.)Chocolate and Confectionaries• Nestlé primarily focuses on the areas where it can be the market leader. It believes that one cannot take a competitor head-on where the latter already has considerable competitive advantage.• Now, Nestlé India is planning to launch the Kit-Kat chocolate with new flavors- cumin and masala - both staple spices used in Indian curry dishes
Pricing Strategy• Nestle India Ltd’s presentation made to analysts in Nov 2011 The presentation shows that during Jan’ 2011- Sept’ 2011, in the domestic market:• Sales rose 9.5% year-on-year while Value rose 21.5%.• Compared to the exports markets,• Sales declined 10.2% year-on-year, but it rose 8.9% in value terms.• The immediate conclusion is that Nestle has been hiking prices sharply, a strategy that runs the risk of hurting consumer demand and even becoming uncompetitive.
Promotion Strategy (Nestle Pure Life - NPL)• Promotion is the very important and crucial element of marketing strategy as through it the company establishes its image in the minds of the customers• Slogan of Nestle Pure Life is “fresh and rejuvenating taste” and “Embrace the pure life”.
Nestlé motivates people to drink NPL by informingcustomers about importance of water, which is pure and safe• Hydration, Support and Performance – During athletes & sports• You are what you drink! – Drink a glass of water 20 minutes before your meals and you will not eat as much.• Drink to Health – Make sure your children drink plenty of pure, safe water every day.• Best Thirst Quencher! – Drink before you feel thirsty and drink cool water as it helps lower body temperature• Cool Down! – Caffeinated and sweetened drinks are not the answer to thirst.• Develop a Hydration Habit! – Drink water when you wake up, with every meal and bedtime.• Radiant and Clear! – Drink 6-8 glasses of water to prevent your skin for becoming dry and prone to wrinkles.
Place Mix• The company has been very thoughtful about its geographic segmentation.• NESTLÉ Set Dahi, NESTLE MILK and SLIM MILK is available in all the metros and NESTLÉ Jeera Raita is available in Delhi for similar reasons.• Nescafés My First Cup sachet, Maggie is easily availability. One could find it in any departmental store big or small.
Nestlé Roadmap to Good Food, Good LifeFour Competitive Advantages• product and brand portfolio• unmatched research and development capability• unmatched geographic presence• people, culture, values and attitudeFour Growth Drivers• Nutrition, Health and Wellness• Popularly Positioned Products (PPP),• Premiumisation• out-of home consumption,Four Operational Pillars• innovation and renovation• operational efficiency• whenever, wherever and however• communicate with our consumers
NESTLE’s 100 YEARS IN INDIA After nearly a century-old association with the country, today, Nestlé India has presence across India with 7 manufacturing facilities and 4 branch offices spread across the region. They are in Delhi, Mumbai, Chennai and Kolkata. The Nestlé India head office is located in Gurgaon, Haryana.Nestlé India’s first production facility, set up in 1961 at Moga (Punjab), was followedsoon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently,Nestlé India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha(Haryana), in 1993. This was succeeded by the commissioning of two more factories -at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory wasset up at Pantnagar, Uttarakhand, in 2006.