The document discusses the fast-moving consumer goods (FMCG) sector in India, highlighting its significance as the fourth largest sector of the economy, with household and personal care products making up 50% of its sales. It emphasizes growth trends, particularly in the rural market, forecasts revenue growth from $49 billion in 2016 to an estimated $104 billion by 2020, and outlines competitive dynamics using Porter's five forces model. Additionally, it provides a detailed overview of Nestle's operations, its historical background, marketing strategy, and SWOT analysis, along with a focus on its product differentiation and market share.

1. FORIDUR RAHMAN
PRESENTED BY-

2. MM.DD.20XX2
SECTORAL INFORMATION
Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy with Household and Personal Care
accounting for 50 per cent of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth
drivers for the sector. The urban segment (accounts for a revenue share of around 55 per cent) is the largest contributor to the overall
revenue generated by the FMCG sector in India However, in the last few years, the FMCG market has grown at a faster pace in rural
India compared with urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50 per
cent of total rural spending.
52.75
103.07
FMCG Market in India (US$ billion)
2017 2020

3. MM.DD.20XX3
GROWTH OR DECLINE OF THE SECTOR
The FMCG sector in India generated revenues worth US$ 49 billion in 2016.
By 2020, the revenues of the sector are forecasted to reach US$ 104 billion.
In 2017, revenues for FMCG sector stood at US$ 57.4 billion.
In the long run, with the system becoming more transparent and easily compliable, demonetization is
expected to benefit organized players in the FMCG industry.
35.7
38.8
43.1
49
57.4
0
10
20
30
40
50
60
70
2013 2014 2015 2016 2017
Trends in FMCG revenues over the years (US$ billions)
Trends in FMCG revenues over the years (US$ billions)

4. MM.DD.20XX4
PORTER’S FIVE FORCES MODEL
Bargaining Power of Suppliers –
Low– Big FMCG companies are able to
dictate the prices through local sourcing
from a fragmented group of key commodity
suppliers.
Threat of Substitutes –
High–Presence of multiple brands.
Narrow product differentiation under many
brands.
Price war.
Competitive Rivalry–
High– Private label brands by retailers are priced at a
discount to mainframe brand limits competition for the
weak brands.
Highly fragmented industry as more MNCs are entering.
Bargaining Power of buyers–
High– Low switching cost induces the customers’
product shift.
Influence of marketing strategies.
Availability of same or similar alternatives.
Threat of New Entrants–
Medium - Huge investments in setting up
distribution network and promoting brands.
Spending on advertisements is aggressive.

5. MM.DD.20XX5
COMPANY INFORMATION
Nestlé is the world’s largest food and beverage
company. We have more than 2000 brands ranging
from global icons to local favorites, and they are
present in 191 countries around the world. 150 years
ago it started. 3,28,00 employees 418 factories in 86
countries, CHF 89.5 Billion (Rs. 5,934 Billion)
UNIQUE GLOBAL PRESENCE OF NESTLE

6. MM.DD.20XX6
History
1866: US based brothers Charles and George Page established Anglo-Swiss Condensed Milk Company in
Cham, Switzerland, under the name of Milk Maid. They marketed the brand as a safe, long life alternative
to fresh milk.
1867: Henry Nestle named pharmacist launches his ‘farinelactee’ (flour with milk and sugar) in Vevey,
Switzerland. He used the image of a Nest (which is present now in every Nestle product) as his logo.
1875: Henry Nestle sells his company and factory in Vevey to three local businessmen.
1878: Both the companies became rival to each other by adding similar products in their product line. In
this span of time they started expanding, and operating their business in US also.
1879: Henry Nestle’s company started selling milk chocolate which was invented and commercialized by
Daniel Peter.
1902: The death of George page, founder of Milk Maid led to the selling of the US operations to
Farinelactee, which eventually became the merger of Nestle.
Both the company jointly operated for the first time for selling Swiss chocolate- Milk Nestle.

7. MM.DD.20XX7
PRODUCT/SERVICES

8. MM.DD.20XX8
COMPETITORS
Unilever: Unilever is a Dutch-British transnational consumer goods company co-
headquartered in Rotterdam, Netherlands and London, United Kingdom. It is one of the
oldest multinational companies; whose products are used by 2.5 billion people on any given
day of the year. In the year 2016 Unilever has done a turnover of 52.7 Billion Euros. It has a
workforce of 1,69,000 people in around 190 countries.
Hindustan Unilever limited has sales of INR 34619 crores in 2017-18.
Britannia: Britannia is one of the largest competitors of Nestle in India. It is one of the
biggest food processing company with a market revenue of Rs. 828.55 Crores. Britannia is
headquartered in Bengaluru, India. It is one of the oldest company founded 125 years ago in
Kolkata, India. Britannia is one of the subsidiaries of Wadia group. It sells its Britannia and
Tiger brands of biscuit throughout India.

9. MM.DD.20XX9
Strengths in the SWOT analysis of
Nestle-
•World Renowned brand
•Extensive distribution system
•Broad Product
•R & D centers:
Weaknesses in the SWOT analysis of
Nestle-
•Maggi Controversy
•Brand structure
•Legal & consumer issues
Opportunities in the SWOT analysis
of Nestle-
•Healthy
•Expanding market
•Increasing income levels
•Strategic alliances
Threats in the SWOT analysis of
Nestle-
•Competition in the market
•Buyers power
•Increasing prices of raw foods

10. MM.DD.20XX10
Marketing Plan of Nestle
Marketing plan of nestle consists of the following framework:
•Purpose and Mission
•Situational Analysis
•Marketing Strategy and Objectives
•Additional Consideration
This marketing plan is aimed at highlighting one of the product line extensions of Nestles’. It
mainly focuses on the internal and external environment of Nestle. Apart from that, this plan
includes the marketing strategies, brand promotion strategies, marketing mix involved and
competitive strategies adopted by Nestle. SWOT analysis one of the major content which is
included in this marketing plan. SWOT analysis helps in finding out the strengths and weaknesses
of the organization. Apart from that it helps the organization to have a deep knowledge about
the opportunities and threats which the organization is likely to face.

11. MM.DD.20XX11
STP AND MARKETING PLAN OF NESTLE
Marketing Segmentation
The market is looking for the basic food trend among the people and Nestle is providing its food products to
the clients relating to different segments of society. As the food items are cheap so they can be available to
people of all classes and these are also available with great ease. The food brand keeps in mind the different
sections of people and their requirements before launching of their food products.
Target marketing
Nestle is expanding its market in different regions of the world and these food items are provided in different
variety. The company is looking for new market including the rural areas, where these food products can be
made available through their effective and quick distribution channels. The food brand is providing its food
products in the target market and it needs to meet the requirements of the clients.
Product Differentiation & Positioning
Nestle has prepared its food products in vast range, in which juices, yogurt, milk, butter and other food items
are included. The products of this brand have great quality and they are getting popular among its clients.
Nestle is the market leader in the food products and the quality of the food products is unique and
wonderful. The food brand has unique position and the good quality food items or ingredients are used to
make these food products, which can have long shelf life and they can be used for longer time and these
can also be preserved.

12. MM.DD.20XX12
MARKET SHARE OF NESTLE INDIA
15%
40%
34%
6% 5%
NESTLE HUL ITC BRITANNIA OTHERS

13. MM.DD.20XX13
BCG MATRIX OF NESTLE

14. MM.DD.20XX14
CASH COWS:
•Cash cows are the products that have a high market share in a market that has low growth. For
Nestle, there is one product that has undoubtedly been the Cash Cow and its Nestle’s Maggi
Noodles.
•With a market share of 80-85 %, Maggi Noodles holds a very strong hold in the market and have
high customer loyalty.
•The product requires very less investment to maintain its market share and fight off any
competition.
STARS:
•The products or business units that have a high market share in high growth industry are the stars
of the organization. In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe Coffee fall in
the Star quadrant of the BCG Matrix of Nestle.
•Growing healthier lifestyle trends and emerging markets have prompted the brand to invest large
amounts of investments in order to differentiate the bottled water brands from competitors in
mature markets and grow brand awareness in emerging markets.

15. MM.DD.20XX15
QUESTION MARK:
•There are products that formulate a part of the industry that is still in the phase of development, yet the
organization has not been able to create a significant position in that industry. The small market share
obtained by the organization makes the future outlook for the product uncertain, therefore investing in
such domains is seen as a high-risk decision.
•With increasing competition and growing need to consume healthy products among
consumers, Nestle’s Milk products and Nutrition requires significant investment from the brand to
maintain and grow its market share.
DOGS:
•Dogs are those products that were perceived to have the potential to grow but however failed to create
magic due to the slow market growth.
•Failure to deliver the expected results makes the product a source of loss for the organization, propelling
the management to withdraw future investment in the venture.

16. MM.DD.20XX16
ALL RATIOS
LIQUIDITY RATIO/CURRENT RATIO OF NESTLE- 0.80
RETURN ON INVESTMENT CAPITAL(ROIC)%- 12.50%
PROFITABILITY RATIO OF NESTLE- 20.94
TURNOVER RATIO OF NESTLE INDIA-
INVESTMENTS TURNOVER RATIO- 11.29
FIXED ASSETS TURNOVER RATIO- 2.98
TOTOL ASSETS TURNOVER RATIO- 2.25

17. MM.DD.20XX17
ASSETS AND LIABILITIES
Assets and Liabilities (Standalone) as on 201806(U) (Rs. in Crores)
Share Capital 96.42
Reserve 3618.65
Share Holder's Funds 3715.07
Long Term Debt –Calc 35.14
Short Term Debt –Calc
Total Debt –Calc 35.14
Net Block 2510.73
Long term Investments 734.59
Short term investments 1283.48
Total Investments 2018.07
Cash and Bank Bal 1941.49
Net Current Assets 2733.93

18. MM.DD.20XX18
Employee Training at Nestle
During training, the Trainees work in close collaboration with an experienced Manager who
facilitates their learning in many key areas such as:
•Marketing Strategy – incorporating elements such as brand positioning and communications, and
also designing business plans built to support the long-term strategic vision for different brands.
•Setting Objectives – how to determine targets for factors like distribution, profitability, market share,
volume, and brand awareness.
•Production – learning about product profiles, renovation and innovation; how the R&D network
and Nestlé Product Technology Centers function in the context of the organization.
•Communications – sponsorship, advertising, preparing briefs, consumer promotions and working
with Nestlé Communication Partners.
•Market and Environment Analysis – price point elasticity analysis, competitors, consumer/shopper
research and insights, and various market studies and methods.

19. MM.DD.20XX19
ORGANIZATION STRUCTURE OF NESTLE IN HIERARCY

20. MM.DD.20XX20
ORGANIZATION CULTURE
PROS
•Work life balance, good teamwork
•Amazing work environment, freedom to take initiatives"
•Invest on people development
•They give time for learning and don’t rush things”
CONS
•Too much work pressure, no work life balance
•Slow in certain processes
•You have to take an extra step to prove yourself as there is competition so it's important to think
out of the box.

21. THANK YOU…