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PORTER’S FIVE FORCES FOR
NESTLE
Submitted By:
Nimisha Walecha (E13)
Sonam Mahajan (E21)
Raqueem Khan (E62)
About Nestlé
• Founded in 1866 by Henri Nestlé.
• Henri Nestlé developed a milk based baby food and soon began
marketing it. It became the first product of Nestlé.
• Incorporated as a limited company in 1959
• Name was changed from Foods Specialties Ltd. to the current
name in 1981 .
• Employs around 247,000 people and have factories or operations
worldwide.
KITKAT
• First created and launched by Rowntree Limited of England and was
later produced by Nestle which aquired Rowntree in 1988.
• Quickly gained much popularity and spread to all corners of the
globe.
• Now available in over 70 countries in many different varieties.
USP
1.Chocolate fingers
2.Well-known strapline - Have a Break, Have a Kit Kat.
MAGGI
• It was founded by the Maggi family in Switzerland in the 19th
century.
• Launched in India in year 1984.
• The brand is popular in India, Malaysia, New Zealand, Singapore,
South Africa, Australia.
• Nestle wanted to explore the potential for such an instant food among
the Indian market.
• Now it enjoys around 94% market share in this segment.
USP
1.2-minute noodles.
2.Fast to cook and good to eat (Taste bhi, health bhi).
NESCAFE
• The product NESCAFÉ – a combination of the Nes-root of Nestlé
and the word café.
• NESCAFÉ was first introduced in Switzerland, on April 1st, 1938.
• Popularity grew rapidly and soon became the beverage of choice for
teenagers.
• In 1965, Gold Blend was launched.
• In 1994, 'full aroma' process was invented to make the unique
quality and character of NESCAFÉ even better
CERELAC
• One of the most popular baby food brands manufactured by Nestle.
• Easily digested by infants.
• Considered very nutritious and good for babies' health and growth.
• Serves as a complimentary meal for babies above 6 months.
• Comes in a range of varieties:
Cerelac Rice, Cerelac Wheat, Cerelac Wheat – apple, Cerelac Wheat
– honey, Cerelac Wheat – banana, Cerelac Wheat - 3- fruits, Cerelac
Wheat - 4 - Vegetables
ANALYSIS AND
FINDINGS
Closest competitors
Home
made food
25% Cerelac
41%
Oats
19%
Heinz food
15%
Baby food
5-star
31%
Kit Kat
33%
Bar One
12%
Perk
24%
Chocolate
Wai Wai
7% Sunfeast
Pasta
21%
Maggi
45%
Top
Ramens
27%
Noodles
Bru
20%
Nescafe
44%Cappucino
24%
Coffee Beans
12%
Coffee
Reasons for purchasing
Cerelac
Taste
15%
Easily
available
9%
Do not buy
30%
Other
46%
Other
15%
Do not
buy
9%
Taste
22%
Easily
available
54%
Kit Kat
Maggi
Taste
76%
Other
14%
Easily
available
10%
Do not buy
0%
Nescafe
Easily
available
22%
Taste
74%
Other
4%
Do not buy
0%
Is price a constraint for buying
the chosen products
Disagree
45%
Stronglyagree
23%
Agree
9%
Neither agree
nor disagree
17%
Strongly
disagree
6%
Cerelac Kit Kat
Strongly
agree
14%
Strongly
disagree
10%
Agree
24%
Neither agree
nor disagree
32%
Disagree
20%
Maggi
Disagree
44%
Neither agree
nor disagree
23%
Agree
15%
Strongly
agree
8%
Strongly
disagree
10%
Nescafe
Coffee
Strongly
disagree
0%
Strongly
agree
15%
Agree
45%
Neither agree
nor disagree
23%
Disagree
17%
PORTER’S FIVE FORCES
MODEL
Study Of Nestle
Products With Respect
To
“Porter’s Five
Forces”
Kit-Kat
COLDCOLD WAR
Nestle Kit katNestle Kit kat VsVs Cadbury Perk…Cadbury Perk…
Nescafe
Maggi
Cerelac
RECOMMENDATIONS
Maggi
• They should target ‘Rural market’ too.
• They can think of extending the ‘Maggi’ product line.
Nescafe
• They need to consider the price factor in order to have a stable
position in the market.
• Proper research should be done while launching a new product.
• Should take in consideration the Indian psyche.
• Should act like market leader rather then follower.
Kitkat
• Need to Find a unique strategy for making it a success in the Indian
market.
• Should look for product differentiation.
CONCLUSIONS
• Maggi is undoubtedly the market leader, having no
potential threat from its substitutes or any new entrants.
• Nescafe is facing a tough competition from Bru as its
substitute.
• Kitkat faces a severe competitive rivalry from Cadbury
chocolates.
• Cerelac enjoys the market monopoly as there is no other
major supplier of healthy baby foods.
THANK YOU

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nestle-ppt

  • 1. PORTER’S FIVE FORCES FOR NESTLE Submitted By: Nimisha Walecha (E13) Sonam Mahajan (E21) Raqueem Khan (E62)
  • 2.
  • 3. About Nestlé • Founded in 1866 by Henri Nestlé. • Henri Nestlé developed a milk based baby food and soon began marketing it. It became the first product of Nestlé. • Incorporated as a limited company in 1959 • Name was changed from Foods Specialties Ltd. to the current name in 1981 . • Employs around 247,000 people and have factories or operations worldwide.
  • 4. KITKAT • First created and launched by Rowntree Limited of England and was later produced by Nestle which aquired Rowntree in 1988. • Quickly gained much popularity and spread to all corners of the globe. • Now available in over 70 countries in many different varieties. USP 1.Chocolate fingers 2.Well-known strapline - Have a Break, Have a Kit Kat.
  • 5. MAGGI • It was founded by the Maggi family in Switzerland in the 19th century. • Launched in India in year 1984. • The brand is popular in India, Malaysia, New Zealand, Singapore, South Africa, Australia. • Nestle wanted to explore the potential for such an instant food among the Indian market. • Now it enjoys around 94% market share in this segment. USP 1.2-minute noodles. 2.Fast to cook and good to eat (Taste bhi, health bhi).
  • 6. NESCAFE • The product NESCAFÉ – a combination of the Nes-root of Nestlé and the word café. • NESCAFÉ was first introduced in Switzerland, on April 1st, 1938. • Popularity grew rapidly and soon became the beverage of choice for teenagers. • In 1965, Gold Blend was launched. • In 1994, 'full aroma' process was invented to make the unique quality and character of NESCAFÉ even better
  • 7. CERELAC • One of the most popular baby food brands manufactured by Nestle. • Easily digested by infants. • Considered very nutritious and good for babies' health and growth. • Serves as a complimentary meal for babies above 6 months. • Comes in a range of varieties: Cerelac Rice, Cerelac Wheat, Cerelac Wheat – apple, Cerelac Wheat – honey, Cerelac Wheat – banana, Cerelac Wheat - 3- fruits, Cerelac Wheat - 4 - Vegetables
  • 8.
  • 10. Closest competitors Home made food 25% Cerelac 41% Oats 19% Heinz food 15% Baby food 5-star 31% Kit Kat 33% Bar One 12% Perk 24% Chocolate
  • 12. Reasons for purchasing Cerelac Taste 15% Easily available 9% Do not buy 30% Other 46% Other 15% Do not buy 9% Taste 22% Easily available 54% Kit Kat
  • 14. Is price a constraint for buying the chosen products Disagree 45% Stronglyagree 23% Agree 9% Neither agree nor disagree 17% Strongly disagree 6% Cerelac Kit Kat Strongly agree 14% Strongly disagree 10% Agree 24% Neither agree nor disagree 32% Disagree 20%
  • 17. Study Of Nestle Products With Respect To “Porter’s Five Forces”
  • 19. COLDCOLD WAR Nestle Kit katNestle Kit kat VsVs Cadbury Perk…Cadbury Perk…
  • 21. Maggi
  • 23. RECOMMENDATIONS Maggi • They should target ‘Rural market’ too. • They can think of extending the ‘Maggi’ product line. Nescafe • They need to consider the price factor in order to have a stable position in the market. • Proper research should be done while launching a new product. • Should take in consideration the Indian psyche. • Should act like market leader rather then follower. Kitkat • Need to Find a unique strategy for making it a success in the Indian market. • Should look for product differentiation.
  • 24. CONCLUSIONS • Maggi is undoubtedly the market leader, having no potential threat from its substitutes or any new entrants. • Nescafe is facing a tough competition from Bru as its substitute. • Kitkat faces a severe competitive rivalry from Cadbury chocolates. • Cerelac enjoys the market monopoly as there is no other major supplier of healthy baby foods.