Did you know … Nestlé markets its products in 130 countries across the world Nestlé manufactures around 10000 different products and employs some 250000 people Nestlé sells over a billion products everyday
People, products,brands What makes Nestlé the world’s largest food company are the millions of consumers across the globe who put their trust in its products, bite after bite, sip after sip, day after day.
Nestle India a subsidiary of Nestle S.A. of Switzerland Incepted in 1962 manufactures a variety of food products such as infant food, milk products, beverages, prepared dishes & cooking aids, and chocolates & confectionary Presently the world's largest and most diversified food company
VISION Being the best in everything they touch & handle
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions MISSION
Nestlé describes itself as a food, nutrition, health, and wellness company. Recently they created Nestlé Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy.
In order to reinforce their competitive advantage in this area, Nestlé created Nestlé Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition.
The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and beverage businesses. This unit is responsible for coordinating horizontal, cross-business projects that address current customer concerns as well as anticipating future consumer trends.
Nestlé’s competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestlé aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America.
When operating in a developed market, Nestlé strives to grow and gain economies of scale through foreign direct investment in big companies.In the developing markets, Nestlé grows by manipulating ingredients or processing technology for local conditions, and employ the appropriate brand.
Another strategy that has been successful for Nestlé involves striking strategic partnerships with other large companies. In the early 1990s, Nestlé entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Cola’s worldwide bottling system and expertise in prepared beverages.
In Asia, Nestlé’s strategy hasbeen to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans.Nestlé’s strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers.
Marketing Target Market Male and Female; Have many brands and products to meat the taste of each type of consumers. Have high allocation of advertising budget for endorser contract, TVC, print ads, and sponsorship activities. Have top endorsers who have a good image in the soap industry.
Distribution Nestle has worldwide distribution line Nestle has good distribution line to retailer Nestle has new ordering system, named Futures Ordering Program
STRENGTHS strong support from its parent company the world’s largest processed food and beverage company a presence in almost every country strong brands like Nescafe, Maggi and Cerelac continuously introducing new products for its Indian patrons on a frequent basis, thus expanding its product offerings
Expansion- potential to expand to smaller towns and other geographies Product offerings- The company has the option to expand its product folio by introducing more brands Global hub- Cheaper manufacturing facility at India than in other parts of the world OPPORTUNITIES
Competition- immense competition from the organized as well as the unorganized sectors Changing consumer trends- increased consumer spending on consumer durables resulting in lower spending on FMCG products Sectored woes- Rising prices of raw materials and fuels, and interns, increasing packaging and manufacturing costs
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