A comprehensive presentation on Nestle compny

1. NESTLE
1. Atif Nawaz 2014-ag-2218
Institute Business and Management Sciences
aafinawaz@gmail.com

2. INTRODUCTION
Tremendous fact that one billion population use nestle products in daily life.
Nestle No. 33 on the 2016 edition of the Forbes Global 2000 list of largest public companies.
Nestlé has 447 factories, operates in 194 countries, and employs around 339,000 people
Sales
CHF 88,8 billion ( $878.38billion) 4,2% Organic growth
CHF 13,4 billion ($132.55billion)
Trading operating profit 15,1% Trading operating profit margin

3. JOURNEY OF NESTLE THROUGHOUT YEARS
Nestle was found in 1866 by Henri nestle.
 1866 - Founder , Henri Nestle created one of the first baby formulae.
 Become success throughout Europe
 Even doctors recommended that nutrient.
 The company open milk plant in Australia in (1910)
 South America (1921) Africa(1927) Asia (1932)
 1905 - The first merger .
The Nestlé Company merged with the Anglo-Swiss Condensed Milk Company, large production and
manage to penetrate the European Market.
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4. CON. . . .
 1914- 1918 – onset of the World War I bring a new revolution to the company.
 1945 – 1975 – End of the World War II and the beginning of new phase.
 1980’s – 2003 – More acquisitions.
 Cereal Partners worlwide with General Mills
 Beverage Partners Worldwide with The Coca-Cola Company
 Lactalis Nestlé Produits Frais with Lactalis
 Nestlé Colgate-Palmolive with Colgate-Palmolive
 Nestlé Indofood Citarasa Indonesia with Indofood
 Dairy Partners Americas (DPA) with Fonterra
 Nestlé Snow with Snow Brand Milk products
 Nestlé Modelo with Grupo Modelo
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5. CON. . . .• 2002 join Cadbury and purchased American company Hershey's
• In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million.
• In January 2006, it took full ownership of Dreyer's Grand Ice Cream Holdings, Inc
• In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for
US$2.5 billion.
• 2007 Acquisitions of Ovaltine
• In April 2007, Nestle bought US baby-food manufacturer Gerber for $5.5 billion.
• 1 March 2010 , Bought Kraft’s Food (Frozen Pizza) for $3.7 billion
• In February 2013, Nestlé Health Science bought Pamlab.
• In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc.
• In December 2014, Nestlé announced that it was opening 10 skin care research centers worldwide
• 2015, opening of Education and Longevity Development (SHIELD) centers
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6. CON…
 Good Food, Good Life’ is the commitment we make every day, in every part of the world. We have more
than 2000 brands in our portfolio, from global icons to local favorites. We help people live more
enjoyable, healthier lives, leveraging 150 years of passion for nutrition to bring them products and
services they can trust.
 A worldwide leader known for manufacturing products as diverse as chocolates and diaries, Nestle has
clearly been through many changes over the years.
 By now, Nestle company had become the world’s largest food company.
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7. NESTLE HEADQUARTERS ARE LOCATED IN VEVEY,
SWITZERLAND
 Nestle Company has factories and
operation in almost ever country in the
world
 World leader in coffee and chocolate

8. NESTLE’S HEADQUATERS
In Vevey, Switzerland

9. PRODUCTS
 The most diversified food product company
 Some famous brands include: Milk & Milk products,
 Ambient Dairy, Chilled Dairy.
 Nestle health care products , Pet food
 Nescafe, Maggi, Milky bar, Milo, Kit Kat, Milkmaid and Nestea, Nestle Milk,
Bottled Water.
 Baby Food, Breakfast Cereals, Nestle juices

10. PRODUCTS
 Milk Products and Nutrition
 Nestle water
 Prepared Dishes and Cooking Aids
 Beverages
 Other mixed and health care
 Chocolates and Confectionery

11. MILK PRODUCTS AND NUTRITION

12. PREPARED DISHES AND COOKING AIDS

13. PRODUCTS BEVERAGES

14. PRODUCTS
CHOCOLATES & CONFECTIONERY

15. MIX PRODUCTS
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16. NESCAFE FACTORY
Nestlé inaugurated factory producing beans
Nestlé factory located in Tri An, Amata Industrial Zone, Bien Hoa City, Dong Nai.

17. NESTLE CHOCOLATE UNIT
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18. NESTLE ORGANIZATIONAL CHART
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19. NESTLE MARKETING PLANNING
IN PAKISTAN THROUGH
VISION AND MISSION
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20. National Organizational Structure

21. MARKETING STRATEGY OF NESTLE
Growth Strategy
 Transnational strategy : Low cost, Different products, Different Markets, High local
responsiveness
 Localization strategy : brand name resonates locally as the cultural habits difference in
different nations
 Customization : delivering goods that are modified to satisfy a specific customer need. 85
percent of the market for instant coffee in Mexico. 66 percent of the market for powdered milk
in the Philippines
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22. Nestle Marketing strategy

23. MARKETING ENVIRONMENT
 Micro Environment:
a) Suppliers: Suppliers provide the raw material resources, unfinished goods and labors to the company in
order to produce goods and services
b) Marketing Intermediaries: The market intermediaries of the company help to advertise, sell and
distribute its product to the end customers.
c) Customer: Immediate customers of Nestle are retail and grocery stores
d) Competitors: Petra Foods Limited, Yeo Heap Sang Limited, Mail Dairy Industry Co. Ltd
 Macro Environment:
a) Political Environment
b) Cultural Environment
c) Economic Environment
d) Technological Environment
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24. What is the brand name that comes to your
mind when you hear the word
“NOODLES ”?

25. STORY OF MAGGI 2-MINUTE NOODLES
•It’s a Brand of instant noodle made by Nestle India Ltd.
•It was founded by the Maggi family in Switzerland in the 19th century..
•The Brand is popular in:
• -Australia
• -India
• -Pakistan
• -Malaysia
• -New Zealand
• -Singapore
• -South Africa

26. Taste Bhi, Health Bhi
PRODUCT VARIANTS

27. (CONT.)
•NIL’s promotions positioned the noodles as a ‘convenience product
for mothers & as a ‘fun’ product for children.
•The noodle’s tagline , ’Fast to Cook, Good to Eat’ was also in keeping
with this positioning.
•They promoted the product further by distributing free samples, giving
• gifts on return of empty packets ,etc.
• Effective Tagline Communication.

28. PRODUCT DIFFERENTIATION
 Product differentiation strategy means how a particular product is different from others on the
basis of:
 Form, Features Performance quality Convenience Durability, Reliability, Style……….
 the form shape, size, physical structure of Maggi is very attractive as it is easy to carry, comes
in various packs and sizes according to customers convenience..
 The various features of Maggi noodles are first of all its perfect taste according to the Pakistan
touch & spices

29. MAGGI: PROMOTION
Sales Promotion
Exchange schemes
Price-off offer
Scratch n Win Offers
Money back offer..
Sponsor school quiz..
Awareness campaign..

30. Advertisement
Effective Taglines

31. F
SUPPLIERS
Distributors, Raw
material suppliers,
Packaging
F
F
F
F
NEW ENTRANTS
Foodles
INDUSTRIAL RIVALRY
Top Ramen,
Chowmein etc
BUYERS
Customer of Mind
set, Brand image
SUBSTITUTES
Chowmein, fast
Food, Pasta
PORTER’S FIVE FORCES MODEL

32. SEGMENTING TARGETING POSITIONING
AGE KIDS FAST TO COOK,
GOOD TO EAT
EATING HABITS YOUTH 2-MINUTE NOODLES
LIFESTYLE OFFICE GOING
PEOPLE
TASTE BHI, HEALTH
BHI
WORKING WOMEN
STP ANALYSIS

33. MARKET PENETRATION STRATEGIES
 Promotional campaigns in school.
Advertising strategies:
Focusing on kids
 New product innovation according to the need of consumers:
-Veg. Atta Noodles
-Dal Atta Noodles
Availability in different packages:
-50 gms
-100 gms
-200 gms
-family packs(400 gms)
Conducting regular market research.

34. MARKET SEGMENTATION OF SOME OTHER PRODUCTS
Geographic Segmentation
 Weather:
Nescafe Ice: Summer
Nescafe Classic: Winter
Demographic Segmentation
 Age:
Lectogen: Lactogen 1 is for babies less than 7 months
Lectogen 3 Is for babies below 12 months
Cerelac: For under 1 year baby
Nido: For children of 2 year
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35. NESTLE MARKET COMMUNICATION
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36. ISSUES OF NESTLE CO
During 1978-81 Nestle face decline situation in profits . The profits ratio was less then 4%.
Was very difficult situation for company , then company change some executive positions and solve the
situation
 CHILD LABOUR ISSUE
 PROBLEM SOLUTION
The use of child labor in cocoa production Introduces the nestle supplier code
• Because of the poverty and a lack of schools
• Violation of child labour law Monitoring all participants in its supply chain and set
clearer labor standards
• Enslaved children and child trafficking Give special training on how to address child labor problem
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37. CON….
 Water issues in Asia
Packaging claims (2008)
 Nestlé baby formula boycott
 Chocolate price fixing in Canada
 Ukrainian boycott (2015)
 CEO Statement about issues
Every company have its own problem whether small or big company. This also including Nestle
company either internal or external problems.
You can have slow and steady change, and that is nothing to be ashamed of”,
- CEO Brebeck Lemathe
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38. WORKING ENVIRONMENT
Creative culture:
 Less functional barriers
 High quality standers
 Team working
 Risk taking
 Encouraging innovation and flexibility
 Employee can take initiative
 Career development
 Expanding market share
 Result-oriented and competition
 High level of R & D
 Market research to reduce uncertainty

39. COMPANY MESSAGE
 Nestle co. Story is based on 150+ years of glory to serving people with focusing our basic
Good Food Good Life
we always focus on hygiene factors and best quality products .
Our keen mission to serve people with same and much better standers as we did last 150+ years and
many more coming years .
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40. CONCLUSION:
The advent of consumer food products has brought a immense change
in the field in the consumers food habit. Nestle has done well to
enhance its customers loyalty operating as a market challenger in its
industry. Nestle is one of the largest food processing company. Their
products and quality mainly depends on their experience and efficiency.
Nestle believe on quality that leads to good business and good
development. It has segmented the market based on certain clustered
preferences deploying multi-stage segmentation approach to meet
individual needs of the customers. Offering new products would also
close its existing products gaps to a great extend ensuring satisfaction
and loyalty.

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