NESTLE: HOW TO KEEP THE MAGIC GOING....Getting to Know Nestlé Presented by, Nishad Kilikkottu PGDM-IB .
ABOUT THE COMPANY Founded by Henri Nestlé World’s biggest Food and Beverage Company Developed first milk product in 1867 Merger with the Anglo-Swiss Condensed Milk Company. Was listed number 1 in fortune global 500 as the world’s most profitable organization. Ranked no. 13 in FT global 2011 with market capitalization of $200. Mainly deals in chocolates, milk products, Maggi, soup, sauce, coffee, tea, milkmaid, and mineral water etc.. .
Cont.. Nestlés first expansion is into chocolate activity Introduction of Nescafe, a staple drink of US Military In 1947 came the merger with Maggi seasonings and soups. Acquisition of American Food Giant and Dreyer’s .
PRINCIPLES AND OBJECTIVES To create value Nestle does not favor short term profit Create trust among the customer Ensures that the highest standards are met throughout the organization. Recruitment of the right people & on going training & development Continue to maintain its commitment .
Global Organization Swiss company - global reach. Peter Brabeck CEO of the company-1997. approximately 254,000 people working. Operating in more than 70 countries. World´s leading food & beverage company. People, brands & products are key. .
Our ResponsibilityEnvironment Infant Formula Quality Coffee Prices UN Global Policy CompactSustainability Gene Nestlé Water Nestlé in the Technology Donations Community .
Marketing and Nestle Nestle uses the World Wide Web/Intranet/Extranet Nestle – E-commerce- Increased Effieciency Nestle- Interactive Marketing Nestle- EIS Nestle implemented six -SAP modules- purchasing, financial, sales and distribution, accounts payable, accounts receivable and advanced planning and optimization. .
Business Strategy Grow existing businesses – focus on priority groups with growth and profit potential – achieve 60/40 – improve brand positioning and communication Develop new businesses – improve innovation & renovation – select acquisition candidates Reduce cost – reduce structure cost – reduce production cost – restructure business portfolio .
Benchmarking Benchmarking is the process of comparing ones business processes and performance metrics to industry bests or best practices from other industries. Dimensions typically measured are – Quality – time – cost. .
12 Stage approach to Benchmarking Select subject Define the process Identify potential partners Identify data sources Collect data and select partners Determine the gap Establish process differences Target future performance Communicate Adjust goal Implement Review and recalibrate .
CONT.. Benchmarking is a continuous systematic procedure that measures a firm’s product and process against industry leaders. As NESTLE is industry leader in food products, each factory has its benchmark to improve quality. Nestle Milk Pak Kabirwala takes NestleTambula factory Australia as bench mark, which is the best Nestle factory in all over theworld. Nestle Milk Pak Kabirwala is at 2nd number. .
How can Nestle effectively utilize benchmarking?How well Nestle is performing compared to other companies? (competitors). What are the best practices? (technology) What improvement opportunities should Nestle focus on? (future)Internal growth rate? (performance) .
Swot analysis- strengths1.Nestlé is adapting its industrial base to the changingrequirements of the business environment.History PresentNestlés industrial set-up - operating with a modern Falling trade manufacturing base,is largely based on the barriers.economic and – economies of scale, Decreasing – flexibility,political realities of the transportation cost. – appropriate technology60s, 70s and 80s: & design, Importance of• Local markets IT. Etc. – low cost operation &• Local production location, - Nestlé is striving for an optimized, -industrial base to ensure long-term competitiveness. .
Weakness Limited presence inn organic food Subsidiaries difficult to manage. Lack of retailed presence. Too much products distract from core business. Slow growth rate of Chocolate & Dairy products . .
Opportunities Continuous growth in US coffee market Further development of global brands. Partnerships & farmer support. Ethical business activities and growth Emerging market penetration. More health based products in Germany & US. .
ThreatsPrivate label growthIncreased competition in bottle waterfrom niche brandsGlobal image may harm all brands if One brand fails.New diet trends.Competitors like HUL, DANONE, HERSHEY FOODS, CADBURY SCHWEPPERS. .