Nestlé was founded in 1905 through the merger of Anglo-Swiss Milk Company and Henri Nestlé Company and operates in over 86 countries. The company seeks a centralized marketing approach to address emerging market challenges and reduce costs, emphasizing economies of scale. Their diverse product range includes instant drinks, dairy, and culinary products, while facing strengths like global recognition and weaknesses such as competition and low margins.

1. NESTLE
GROUP - 12
-Saurabh Arora (DM18246)
-Ajay Norman (DM18202)
-Ankur Kislaya (DM18206)
-Melissa Mariam (DM18233)
-Shivam Shukla (DM18248)

2. Overview of the company
■ Founded in 1905, and is headquartered in Switzerland.
■ It was founded as a result of merger between two companies namely
Anglo-Swiss Milk Company and Henri Nestle Company.
■ Operates in more than 86 countries across the globe.
■ It has its manufacturing and operational facility in almost all the countries
worldwide.

3. Problem at hand
■ Need for a centrally coordinated (or) common marketing
approach with emerging market forces worldwide.
■ Need for reduction of costs through economies of scale
through greater central coordination of marketing function.

4. Organizational Chart
Board of
Directors
Technical R&D
Product
Direction and
Marketing
Services
Finance Personnel
Legal
Trademark
Services
Executive
Committee

5. Organization structure
■ Board of Directors –
-Executive committee
■ Zone 1: Europe
■ Zone 2: Europe
■ Zone 3: South and Central America
■ Zone 4: N.A. – U.K. – Ireland
■ Zone 5: Africa

6. Products & Sales
Sr.No Product % 1982 Sales % 1983 Sales
1 Instant drinks 27.1 27.7
2 Dairy Products 21.4 20.4
3 Culinary Products 14.4 13.9
4 Frozen food & Ice Cream 9.5 10.3
5 Infant Food 8.9 8.4
6 Chocolates 8.0 8.1
7 Restaurants & Hotels 2.9 3.0
8 Liquid Drinks 2.8 2.9
9 Refrigerated Products 3.0 2.9
10 Pharmaceuticals 2.0 2.4

7. Statistics
25th
• Largest corporation in the US
75
• Operating countries
282
• Operating plants in 56 countries
140,000
• Employees worldwide with 3% Swiss nationals

8. SWOTANALYSIS
- Known to
global markets
- Scale and
market reach
- Low margin
products
- Low profits
because of
acquisitions
- More
competition
- Possibility of
overextension
- Consumer
interest in Health
& Nutrition
sector
- Improving
efficiency
S W
OT

9. The Standardization Debate
■ In 1950s, instant potato line in France was launched.
■ Center standardized Nescafe packaging but French and
German managers declined in 1970s
■ Center proposed Maggi liquid food enhancer bottle which
was declined byWest German manager.
■ Standard Maggi logo “Talking bubble” was developed which
was first developed byWest Germany.

10. Elements
of
Marketing
function
No HQ
initiative
HQ promotes
cross-
fertilization
among countries
HQ persuasion
for
standardization
HQ
decision
making
HQ enforced
standardization
Marketing
strategy
X
Product
positioning
X
Product
characteristi
cs
X
Branding X
Packaging x
Distribution X
Trade
promotion
X
Consumer
promotion
X
Media
Advertising
X

11. Thank you