PROFILE OF THE COMPANY

Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri

Nestl and is today the world's biggest food and beverage o!"any# Sales at the
end of $%%& were 'H( 8) bn, with a net "rofit of 'H( 6#) bn# *e e!"loy around
$&),%%% "eo"le and have fatories or o"erations in al!ost every ountry in the
world#
+he 'o!"any's strategy is guided by several funda!ental "rini"les# Nestl's
e,isting "roduts grow through innovation and renovation while !aintaining a
balane in geogra"hi ativities and "rodut lines# -ong.ter! "otential is never
sarified for short.ter! "erfor!ane# +he 'o!"any's "riority is to bring the best
and !ost relevant "roduts to "eo"le, wherever they are, whatever their needs,
throughout their lives#
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BACKGROUND
Nestle was "ro!oted by Nestle /li!entana, Switzerland, a wholly owned
subsidiary of Nestle Holdings -td#, Nassau, 0aha!a 1slands# Nestle is one of the
oldest food 2N' o"erating in 1ndia, with a "resene of over a entury# (or a long
ti!e, Nestle 1ndia3s o"erations were restrited to i!"orting and trading of
ondensed !il4 and infant food# 5ver the years, the 'o!"any e,"anded its
"rodut range with new "roduts in instant offee, noodles, saues, "i4les,
ulinary aids, hoolates and onfetionery, dairy "roduts and !ineral water#
Nestle was inor"orated as a li!ited o!"any in 1676# 1n 16)8, the 'o!"any
issued shares to the 1ndian "ubli to redue its foreign holdings to &%8# 1ts na!e
was hanged fro! (oods S"eialties -td# to the urrent na!e in 1681#+he "arent
held 718 sta4e in the o!"any as at $%%% end# 1t has (190 a""roval to hi4e
sta4e by 1%8 and has been gradually aquiring shares fro! the o"en !ar4et#
9arent sta4e in the o!"any as at $%%1 end stood at 7:#88# +he "arent "lans to
ontinue hi4ing sta4e through o"en !ar4et "urhases#
Nestle India -td, 718 subsidiary of Nestle S/, is a!ong the leading branded
food "layer in the ountry# 1t has a broad based "resene in the foods setor with
leading !ar4et shares in instant offee, infant foods, !il4 "roduts and noodles#
1t has also strengthened its "resene in hoolates, onfetioneries and other
se!i "roessed food "roduts during the last few years# +he o!"any has
launhed ;airy 9roduts li4e <H+ 2il4, 0utter and 'urd and also ventured into
the !ineral water seg!ent in $%%1# Nestle3s leading brands inlude Cerelac,
Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life#
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PLANT LOCATIONS
Nestle started its !anufaturing o"erations with 2il4!aid in 166$ at 2oga
fatory# 2anufaturing of Nesafe started in 166& at the sa!e fatory# +he
o!"any set u" another fatory at 'hera!badi in +a!il Nadu, for !anufature of
infant foods, offee et# (or al!ost two deades there were no new additions of
!anufaturing failities due to restritive "oliy environ!ent# +he o!"any set
u" its Nan=angad >?arnata4a@ fatory in 1686 and the Sa!la4ha >Haryana@
fatory in 166$# +he 9onda >Aoa@ fatory started o"erations in 1667# +he
'o!"any set u" its si,th !anufaturing unit in 166) at 0iholi! in Aoa
BUSINESS PRINCIPLES
Sine Henri Nestl develo"ed the first !il4 food for infants in 186), and saved
the life of a neighbor3s hild, the Nestl 'o!"any has ai!ed to build a business
based on sound hu!an values and "rini"les#
*hile our Nestl 'or"orate 0usiness 9rini"les will ontinue to evolve and ada"t
to a hanging world, our basi foundation is unhanged fro! the ti!e of the
origins of the 'o!"any, and reflets the basi ideas of fairness, honesty, and a
general onern for "eo"le#
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People first
B!"loyees, "eo"le and "roduts are !ore i!"ortant at Nestl than syste!s#
Syste!s and !ethods, while neessary and valuable in running a o!"le,
organization, should re!ain !anagerial and o"erational aids but should not
beo!e ends in the!selves# 1t is a question of "riorities# / strong orientation
toward hu!an beings, e!"loyees and e,eutives is a deisive, if not the
deisive, o!"onent of long.ter! suess#
Quality products
5ur fous is on "roduts# +he ulti!ate =ustifiation for a o!"any is its ability to
offer "roduts that are a""ealing beause of their quality, onveniene, variety
and "rie .. "roduts that an stand their ground even in the fae of fiere
o!"etition#
Long-term view
Nestl !a4es lear a distintion between strategy and tatis# 1t gives "riority to
the long.range view# -ong.ter! thin4ing defuses !any of the onflits and
ontentions a!ong grou"s .. this a""lies to e!"loy!ent onditions and relations
with e!"loyees as well as to the onflits and o""osing interests of the trade and
the industry# 5f ourse, our ability to fous on long.ter! onsiderations is only
"ossible if the o!"any is suessful in the struggle for short.ter! survival# +his
is why Nestl strives to !aintain a satisfatory level of "rofits every year#
Decentralization
Switzerland is ho!e to Nestl's Swiss subsidiary, its international headquarters
and the registered offie of Nestl's holding o!"any, but Nestl does not regard
its Swiss headquarters as the enter of the universe# ;eentralization is a basi
"rini"le of Nestl# 5ur "oliy is to ada"t as !uh as "ossible to regional
iru!stanes, !entalities and situations# 0y deentralizing o"erational
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res"onsibility, we reate strength and fle,ibility and are able to !a4e deisions
that are better attuned to s"eifi situations in a given ountry# 9oliies and
deisions onerning "ersonnel, !ar4eting and "roduts are largely deter!ined
loally# +his "oliy reates stronger !otivation for Nestl's e,eutives and
e!"loyees and a greater sense of identifiation with Nestl's business# 1t is not
Nestl's "oliy to generate !ost of its sales in Switzerland, su""le!ented by a
few satellite subsidiaries abroad# Nestl strives to be an CinsiderC in every ountry
in whih it o"erates, not an Coutsider#C
Uniformity
/ very i!"ortant onern at Nestl has to do with unifor!ityD how onsistent
Nestl's "rini"les, "oliies, rules of ondut and strategies should be, and to
what e,tent they should differ de"ending on the ountry, subsidiary, region,
branh or grou" of "roduts# 1n general, Nestl tries to li!it the unifor!ity of its
"oliy to a requisite !ini!u!# +his !ini!u! is then syste!atially enfored,
unless there are o!"elling reasons in a given !ar4et that =ustify deviation fro!
"oliy#
Diversification
Nestl does not want to beo!e either a onglo!erate or a "ortfolio !anager#
Nestl wants to o"erate only those businesses about whih it has so!e s"eial
4nowledge and e,"ertise# Nestl is a global o!"any, not a onglo!erate
hodge"odge# *e regard aquisitions and efforts at diversifiation as logial ways
to su""le!ent our business, but only in the onte,t of a arefully onsidered
or"orate !ar4eting "oliy#
Nestl is o!!itted to the following 0usiness 9rini"les in all ountries, ta4ing
into aount loal legislation, ultural and religious "ratiesD
Nestl's business ob=etive is to !anufature and !ar4et the 'o!"any's
"roduts in suh a way as to reate value that an be sustained over the
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long ter! for shareholders, e!"loyees, onsu!ers, and business
"artners#
Nestl does not favor short.ter! "rofit at the e,"ense of suessful long.
ter! business develo"!ent#
Nestl reognizes that its onsu!ers have a sinere and legiti!ate
interest in the behavior, beliefs and ations of the 'o!"any behind brands
in whih they "lae their trust and that without its onsu!ers the 'o!"any
would not e,ist#
Nestl believes that, as a general rule, legislation is the !ost effetive
safeguard of res"onsible ondut, although in ertain areas, additional
guidane to staff in the for! of voluntary business "rini"les is benefiial
in order to ensure that the highest standards are !et throughout the
organization#
Nestl is onsious of the fat that the suess of a or"oration is a
refletion of the "rofessionalis!, ondut and the res"onsible attitude of
its !anage!ent and e!"loyees# +herefore reruit!ent of the right "eo"le
and ongoing training and develo"!ent are ruial#
Nestl ontinues to !aintain its o!!it!ent to follow and res"et all
a""liable loal laws in eah of its
Research and development
+he Nestl researh and develo"!ent enters have two !ain tas4sD to reate
new "roduts and !anufaturing "roesses and to i!"rove those that already
e,ist# +hese enters "lay a 4ey role in "rodut safety and quality and also have
their role in onserving resoures and "roteting the environ!ent# Bnviron!ental
onerns are an integral "art of any develo"!ent "roess to ensure that our
future o!!erial o"erations !eet the desired riteria#
+he Nestl Eesearh 'enter "rovides the sientifi su""ort needed to "revent
and solve environ!ental "roble!s arising in the develo"!ent grou"s as well as
!anufaturing# 1n addition, studies are arried out to find new ways of using
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industrial residues to reate valueadded by"roduts# +his will redue total
e!issions and effluents#
+he Nestl develo"!ent enters "re"are environ!ental i!"at studies for new
"roduts and !anufaturing "roesses# +hese over all as"ets, fro! raw
!aterials, through "roessing, to the final "a4ed "rodut# +hese analyses
"rovide additional ele!ents for use in deiding whether to o!!erialize a new
"rodut, or to introdue a new or !odified "roess#
oresight
/t "resent, the world faes daunting questions about its ability to "rovide enough
wholeso!e food for everyone# 2alnutrition and "oor eating habits are still serious
"roble!s in !any develo"ing ountries# 0y $1%%, the world's "o"ulation will
double# *ill it be "ossible to feed a world with so !any inhabitantsF /t Nestl,
the big "iture is all about feeding the world and "roviding food and nutrition for
an ever.growing "o"ulation# 5ur res"onse to this situation is to intensify
researh, strive for innovations and i!"rove quality#
le!i"ility and simplicity
+he "ubli's sense of the "ower and size of a or"oration is often inaurate, for
a o!"any's "ower is li!ited by a host of fators inluding legislation,
o!"etition, regulatory bodies and "ubliity# (ro! a business "oint of view, it is
desirable for a fir! to ahieve the size best suited to a s"eifi industry or !ode
of "rodution# +o be o!"etitive internationally and !a4e signifiant invest!ents
in researh and tehnology, a larger o!"any has an advantage# (ro! a stritly
organizational "oint of view, fle,ible, si!"le strutures wor4 best and e,essively
large units should be avoided whenever "ossible# 1n both res"ets Nestl has a
natural advantageD /lthough it is a big o!"any, it is s"read out over !any
ountries and eah of Nestl's fatories has its own !anage!ent and
res"onsibility#
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#andling of raw materials
+he Nestl Arou" is in "rini"le not diretly involved in "ri!ary "rodution of raw
!aterials and other food ingredients# 1n general we use loally available raw
!aterials and "urhase the! either diretly fro! "roduers or through e,isting
trade hannels#
Eaw !aterials have to !eet learly established quality riteria and are he4ed
for "ossible onta!inants inluding environ!ental onta!inants# 5ur "urhasing
s"eifiations o!"ly not only with legal require!ents but go further to ensure
highest safety and wholeso!eness of our "roduts#
*henever "ossible we give "referene to those goods for whih environ!ental
as"ets have been ta4en into onsideration# 1n those ases where the required
agriultural raw !aterials are not available loally, but the natural "rodution
onditions e,ist, we enourage loal "rodution and "rovide assistane for
ultivation and dairy far! !anage!ent#
*e su""ort "lant growing and livesto4 husbandry !ethods whihD
"reserve and i!"rove natural soil "rodutivity and eono!ize and "rotet
water resoures
allow the lowest, !ost a""ro"riate and safe use of agro.he!ials
use the least energy#
Pac$aging
2anufaturing o!"rises all unit o"erations neessary to transfor! "erishable
raw !aterials into finished "roduts, with the ai! to !a4e the! safe and
onvenient for the onsu!ers# +he !anufaturing ativities of the Nestl Arou"D
res"et natural resoures by effiient use of raw !aterials and energy
!ini!ize waste generation and e!issions
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ensure environ!entally safe dis"osal of all waste whih annot be
reyled#
Eegular assess!ents of "roessing "raties are arried out# +hese
assess!ents inludeD
evaluation of individual "lant "erfor!ane with regard to o"erations whih
have an i!"at on the environ!ent
definition of targets for i!"rove!ent
review of "lant o!"liane with loal govern!ent regulations, o!"any
environ!ental standards, as well as results ahieved in o!"arison with
targets for i!"rove!ent
full investigation of inidents whih !ay affet the environ!ent#
1nfor!ation on develo"!ents in environ!ental "rotetion tehnology and
"raties is disse!inated as required to ensure that all "lants are using the !ost
effetive environ!ental "raties for their ty"e of "roessing# +his a""lies also
for o "a4ers#
%ar$eting and distri"ution
2ar4eting is based on the "rini"le of satisfying onsu!er needs# +his is the
foundation also for the environ!ental !ar4eting a""roah of Nestl#
Bnviron!ental "rodut lai!s in advertising, "ro!otional !aterial and on
"a4aging are in aordane with legal require!ents, based on solid sientifi
evidene and used in a serious and reasonable !anner#
5ur ai! is to !ini!ize wastage in o!!uniation, "ubliity and "ro!otional
!aterial, in "artiular through !ore "reise targeting of !ar4eting ativities#
'onsu!er "ro!otions and !erhandising !aterial suh as onsu!er offers, in.
store "ro!otions, dis"lay !aterial, leaflets, "rinted !atter, et# ta4e
environ!ental as"ets into aount#
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+his !eans due onsideration of environ!ental i!"at in seleting both
!aterials and "rinting !ethods#
1n distribution, energy effiient and "ollution ontrolled !ethods are enouraged
wherever "ossible#
Information& communication and education
Nestl's "oliy is designed to "rovide orret and oherent infor!ation on the
ativities of the Arou"#
/tivities related to the environ!ent benefit fro! the sa!e treat!ent and their
o!!uniation is seured through all urrently available !eans inside and
outside the Arou"#
1t is further!ore Nestl's duty to reate awareness, to train and !otivate
e!"loyees on their "ersonal res"onsibility with regard to the "rotetion of the
environ!ent#
Legislation and regulations
1t is the "oliy of the Nestl Arou" to stritly o!"ly with all laws and regulations
relevant to our ativities# *e "artii"ate in disussions on food legislation and
regulations between international organizations, govern!ent re"resentatives,
industry, the sientifi world and onsu!er assoiations# *e also a""ly this
"oliy to environ!ent related !atters#
1n doing so, we oo"erate with legislators through loal industry assoiations in
order to "ro!ote laws and regulations in the field of environ!ent whih are
reasonable, rational, realisti, a""liable and enforeable# *e o""ose un=ustified
bans and any other disri!inatory !easures#
*e favor the har!onization of food regulations in order to re!ove e,isting trade
barriers and to avoid the reation of new ones# +his a""lies also to environ!ental
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issues# *e favor the e,hange of infor!ation, of e,"eriene and of 4nowledge
between the various interested "arties#
+han4s to all these synergies, we an ontribute to valuable disussions and be
reognized as an ative "artner in hel"ing authorities to for!ulate
o!"rehensive strategies in the field of the environ!ent#
THE NESTL POLICY ON THE ENVIRONMENT
Nestl res"ets the environ!ent and is o!!itted to environ!entally sound
business "raties throughout the world, thus ta4ing into aount the need to
"reserve natural resoures and save energy#
+his o!!it!ent is "ut into "ratie by onsidering loal legal require!ents as a
!ini!u! standard# 1f these do not e,ist, our internal rules, ad=usted to loal
onditions, a""ly# Eesearh and ;evelo"!ent and new invest!ents inlude an
evaluation to ensure environ!entally a""ro"riate "roduts, "a4aging and
"roesses#
2anage!ent and "ersonnel within the Nestl organization worldwide are
enouraged to hel" resolve environ!ental "roble!s within their own s"here of
influene#
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NESTLES BRANDS
Guality and nutritional value are the essential ingredients in all of the nestle3s
brands# 2illions of "eo"le "refer Nestl "roduts every day, ha""y with the
addition to their wellness that they bring# 1f you are loo4ing for a s"eifi brand
our "rodut, =ust use the al"habetial inde, below to =u!" straight to a listing# 5r
you an e,"lore by ategory#
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'a"y oods
+he "rodution of infant food goes right ba4 to the origins of the Nestl
'o!"any# Henri Nestl's '(arine -ate' was the first "rodut to bear the Nestl
na!e#
1n 186) a "hysiian "ersuaded Henri Nestl to give his "rodut to an infant who
was very ill H he had been born "re!aturely and was refusing his !other's !il4
and all other ty"es of nourish!ent# Nestl's new food wor4ed, and the boy
survived# (ro! the very beginning, Nestl's "rodut was never intended as a
o!"etitor for !other's !il4# 1n 1866, he wroteD C;uring the first !onths, the
!other's !il4 will always be the !ost natural nutrient, and every !other able to
do so should herself su4le her hildren#C
+he fators that !ade baby foods suess in the early days of the Nestl
o!"any H quality and su"erior nutritional value H are still as valid today for the
wide range of infant for!ula, ereals and baby food !ade by Nestl# +he *orld
Health 5rganization >*H5@ reognizes that there is a legiti!ate !ar4et for infant
for!ula, when a !other annot or hooses not to breast feed her hild# Nestl
!ar4ets infant for!ula aording to the "rini"les and ai!s of the *H5
1nternational 'ode of 2ar4eting 0reast 2il4 Substitutes, and see4s dialogue and
oo"eration with the international health o!!unity and in "artiular with the
*H5 and <N1'B(, to identify "roble!s and their solution# Nestl's e,"ertise as
the world's leading infant food !anufaturer, gained over !ore than 1$7 years, is
"ut at the dis"osal of health authorities, the !edial "rofession and !others and
hildren everywhere#
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(hocolate ) (onfectionery
+he story of hoolate began in the New *orld with the 2ayans, who dran4 a
dar4 brew alled aahuaquhtl# -ater, the /ztes onsu!ed haahoua and
used the ooa bean for urreny# 1n 17$:, they offered ooa beans to 'ortez,
who introdued hoolate to the 5ld *orld, where it swiftly bea!e a favorite
food a!ong the rih and noble of Buro"e# Nestle forayed into hoolates I
onfetionery in 166% and has ornered a fourth share of the hoolate !ar4et in
the ountry## 1t has e,"anded its "roduts range to all seg!ents of the !ar4et
+he Kitkat brand is the largest selling hoolate brand in the world# 5ther brands
inlude Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One, Munch et# +he
sugar onfetionery "ortfolio onsists of Polo, oothers, !rootos and Milkybar
"clairs# /ll sugar onfetionery "roduts are sold under the u!brella brand
$llen%s# Nestle has also !ar4ets so!e of its i!"orted brands li4e &uality treet,
Lions and $fter "ight# New launhes suh as Nestle Choco tick and Milky Bar
Choo at attrative "rie "oints to woo new onsu!ers# 'hoolate onfetionery
sales registered a strong $1#78 yoy growth in $%%1 aided by good volu!e
growth in Munch, Kitkat and Classic sales# Nestle relaunhed Bar-One during the
year#
(ro! the beginning, turning raw, bitter ooa beans into what one 1)th entury
writer alled Cthe only true food of the godsC has been a fine art, a deliate
!i,ture of alhe!y and siene#
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Ice (ream
+here are !any !yths and stories as to the invention of ie rea!D was it 2aro
9olo who brought it ba4 fro! 'hina >along with "asta@F 9robably not,
onsidering he !ost li4ely never visited 'hina#
+he story of its "o"ularity is however onneted with the invention of tehnology
to !a4e it on an industrial sale, and to 4ee" it old one !ade# 0efore
refrigeration tehniques, food was frozen with the aid of ie, !i,ed with salt,
whih was either stored in ie houses or shi""ed fro! old ountries# 0ut then at
the end of the 16th entury, both !a4ing and freezing it bea!e easier, and
together with the invention of the ie rea! one, !ade the "rodut boo!#
+oday, the <nited States is the absolute leader in ter!s of volu!e onsu!ed,
but the highest "er head onsu!ers are in New Jealand# (lavors you'd never
have thought of and yet they're o!!erially availableD
Sorbets . S!o4ed Sal!on, +o!ato, 'uu!ber
1e 'rea!s . Aarli, /voado, Sweet orn#
+he ie rea! one is the !ost environ!entally friendly for! of "a4aging# /
Syrian fro! ;a!asus, Brnest B Ha!wi is redited with its invention# /""arently,
during the 16%& St -ouis *orld's (air, his waffle booth was ne,t to an ie rea!
Submitted by SUHAS S DHAGE. 15
vendor who ran short of dishes# Ha!wi rolled a waffle to ontain ie rea! and
the one was born#
Prepared oods
'onveniene foods H "a4aged sou"s, frozen !eals, "re"ared saues and
flavorings Hdate ba4 !ore than a entury# *ith the 1ndustrial Eevolution a!e
fatory =obs for wo!en and less ti!e to "re"are !eals#
+he "roble! was so wides"read that it bea!e the ob=et of intense study in
188$ by the Swiss 9ubli *elfare Soiety, whih offered a series of
reo!!endations, inluding an inrease in the onsu!"tion of vegetables#
+he Soiety o!!issioned Kulius 2aggi, a !iller with a re"utation as an
inventive and a"able business!an, to reate a vegetable food "rodut that
would be qui4 to "re"are and easy to digest# +he results H two instant "ea
sou"s and an instant bean sou" H hel"ed launh one of the best 4nown brands
in the history of the food industry# 0y the turn of the entury, 2aggi I 'o!"any
was "roduing not only "owdered sou"s, but bouillon ubes, saues and
flavorings#
#%aggi !erged with Nestl in 16&)# 'uitoni, the authenti 1talian brand, whih
has been "roduing "asta and saues in 1taly sine 18$), bea!e "art of the
Nestl Arou" in 1688#
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'everages
0everages li4e offee, tea and health drin4s ontribute to about :%8 of Nestle3s
turnover# 0everage sales registered a 178 yoy growth during $%%1# *hile about
1&8 of sales o!e fro! do!esti !ar4et, e,"orts ontribute to about 168 of
sales#
Nestle's Nescafe do!inates the "re!iu! instant offee seg!ent# Nestle3s other
offee brand unrise has also been relaunhed under the Nescafe franhise to
leverage on the e,isting equity of the brand# Nestle has foused on e,"anding
the do!esti !ar4et through "rie uts and "rodut re"ositioning# However it has
been losing share in the do!esti !ar4et, where it has a :)8 !ar4et share#
Milo, a brown.!alted beverage was launhed in 1666# 1t has an esti!ated
volu!e share of about :8 in the !alted food drin4 seg!ent# Nestle has
launhed non.arbonated old beverages suh as Nestea 'ce( )ea and Nescafe
!ra**e during $%%1#
Nestle is one of the largest offee e,"orter in the ountry# ?ey e,"ort !ar4et is
Eussia, besides Hungary, 9oland and +aiwan# Nestle has reeived an award for
highest e,"ort of instant offee and highest e,"ort of offee to Eussia and '1S
for (L%% and (L%1# +urnover ontribution fro! e,"orts registered a 1)#78
volu!e growth in (1$M%1# Nesafe sales to Eussia aounts for 8%8 >Es$#7bn@
of Nestl3s Es:bn e,"ort turnover#
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QU*LI+,
Bveryday, !illions of "eo"le all over the world show their onfidene in us by
hoosing Nestl "roduts# +his onfidene is based on our quality i!age and a
re"utation for high standards that has been built u" over !any years#
Quality is the cornerstone of our success
Bvery "rodut on the shelf, every servie and every usto!er ontat hel"s to
sha"e this i!age# / Nestl brand na!e on a "rodut is a "ro!ise to the
usto!er that it is safe to onsu!e, that it o!"lies with all regulations and that it
!eets high standards of quality# 'usto!ers e,"et us to 4ee" this "ro!ise every
ti!e#
<nder no iru!stanes will we o!"ro!ise on the safety of a "rodut and every
effort !ust be !ade to avoid hazards to health# -i4ewise, o!"liane with all
relevant laws and regulations is a !ust and is not negotiable# 9eo"le, equi"!ent
and instru!ents are !ade available to ensure safety and onfor!ity of Nestl
"roduts at all ti!es# +he effort is worth it# 'o!"anies with huge quality
standards !a4e fewer !ista4es, waste less ti!e and !oney and are !ore
"rodutive# +hey also !a4e higher "rofits# Guality is their !ost suessful
"rodut# 1t is the 4ey to their suess, today and to!orrow#
+he customer comes first
Nestle want to win and 4ee" usto!ersD distributors, su"er!ar4ets, hotels,
sho"4ee"ers and the final onsu!ers# +hey have very different require!ents#
+rade usto!ers e,"et e,ellent servie, orret infor!ation and ti!ely
delivery# 'onsu!ers onsider taste, a""earane and "rie when they !a4e their
hoie# 1ts tas4 is to understand what usto!ers want and res"ond to their
e,"etations ra"idly and effetively# *e serve various grou"s of onsu!ers and
there is de!and for "roduts at different levels of "ereived quality and "rie# /ll
Submitted by SUHAS S DHAGE. 18
usto!ers, however, e,"et value for their !oney N good quality at a reasonable
"rie#
*hen offering quality to usto!ers we also !ean environ!ental quality# Nestl
shares soiety3s onern for the environ!ent and is o!!itted to
environ!entally sound business "raties throughout the world#
'usto!ers are entral to their business and they always res"et their needs and
"referenes#
(ompetition
0aby food and 1nstant offee are ategories where brand loyalties are very
strong and Nestle is the !ar4et leader# H-- is a signifiant o!"etitor to Nestle
in instant offeeO while Heinz is the !ain o!"etitor in the baby foods !ar4et#
+he !ar4et for ulinary "roduts, se!i."roessed foods suh as noodles, ready
!i,es for 1ndian ethni brea4fast and sweets, is largely an urban !ar4et# H--
and 1ndo Nissin (oods are the !ain o!"etitors in these "rodut seg!ents#
Nestle has also ahieved a signifiant $78 share in the hoolateMonfetionery
!ar4et# +he o!"any has reently e,"anded its dairy "roduts "ortfolio to
inlude, !il4, urd and butter# +he o!"any also forayed into the bottled water
Submitted by SUHAS S DHAGE. 19
seg!ent with the launh of its Perrier brand in the "re!iu! !ineral seg!ent and
Pure Life in the "urified water seg!ent#
Quality is a competitive advantage
*e live in a o!"etitive world and !ust never forget that their usto!ers have a
hoie# 1f they are not satisfied with a Nestl "rodut, they will swith to another
brand# +heir goal, therefore, is to "rovide su"erior value in every "rodut
ategory and !ar4et setor in whih we o!"ete# +he "ursuit of highest quality
at any "rie is no guarantee for suess, nor is a single.!inded ost.utting
a""roah# -asting o!"etitive advantage is gained fro! a balaned searh for
o"ti!al value to usto!ers, by si!ultaneous i!"rove!ent of quality and
redution ost# Suess an never be ta4en for granted# *e !ust wath and
learn fro! our o!"etitors# 1f they do so!ething better, we !ust i!"rove our
own "erfor!ane# *e an ahieve o!"etitive advantage through Guality#
Quality is a -oint effort
5"erating o!"anies are fully res"onsible for !aintaining agreed quality
standards# Not only 9rodution units, but also 2ar4eting, 9urhasing, ;istribution
and Sales have a vital role to "lay in "roviding quality to usto!ers# +his i!"lies
a thorough 4nowledge of the "roduts and servies we offer#
Guality units at different levels of the organization "rovide s"eifi su""ort,
"ro!ote quality awareness, assu!e guardianshi" and audit the syste!# Guality
de"art!ents !onitor o"erations against agreed standards and !ust intervene in
ase of non.onfor!ity# Guality "oliy and "rini"les, the !andatory standards
and the reo!!ended tools for i!"le!entation are laid down in the Nestl
Guality Syste! whih is a""liable throughout the grou"# (urther diretions are
given through instrutions, nor!s and guidelines, often s"eifi to a "rodut#
5ur business "roduts, suh as raw !aterial "roduers, "a4aging su""liers,
ontrat !anufaturers and distributors are e,"eted to share our onern for
Guality# +hey too !ust set u" an adequate quality syste!, so as to !eet our
Submitted by SUHAS S DHAGE. 20
require!ents onsistently# +he quality efforts !ust be shared by every funtion
and de"art!ent in the o!"any as well as our business "artners#
Quality is made "y people
/dequate equi"!ent, "roedures and syste!s are needed to !a4e GualityO so
are involved and dediated "eo"le# Bah and every Nestl e!"loyee !ust do his
best to "rovide quality "roduts and servies# +raining and tea!wor4 are ruial
to the suessful i!"le!entation of high quality standards# 'ontinuous training
ensures that everyone understands his tas4s and has the neessary s4ills to
arry the! out# +ea!wor4 allows us to ahieve results that are greater than the
su! of individual efforts# *e !otivate e!"loyees by de!onstrating !anage!ent
o!!it!ent to Guality, by setting hallenging goals and by giving the!
res"onsibility and reognition# 1t is through e!"loyee involve!ent that goals and
targets an be ahieved in the shortest ti!e# Guality !ust be a way of life for
everyone in the o!"any#
Quality is action
Guality is the result of deliberate ation# 1t is the res"onsibility of senior !anagers
to o!!uniate the quality ob=etives and to "rovide the resoures neessary for
their i!"le!entation# 1t is then u" to all e!"loyees to !a4e Guality ha""en
throughout the o!"any# 9rogress is followed by listening to our usto!ers and
by !easuring our "erfor!ane# Shorto!ings and !ista4es !ust be analyzed
and orreted# 9roble!s !ust be antii"ated and "revented before they our#
*e also !ust identify and ta4e advantage of o""ortunities#+o stand still is to fall
behind# So we !ust strive for ontinuous i!"rove!ent in every area# 1t is through
!any s!all i!"rove!ents as well as through !a=or brea4throughs that we will
ahieve e,ellene# /t Nestl, Guality is our first "riority# -et us "ratie it every
day#
Submitted by SUHAS S DHAGE. 21
(onsumer .ervices
/t Nestl, we are o!!itted to offering onsu!ers high.quality food "roduts
that are safe, tasty and affordable# +he Nestl Seal of Auarantee is a sy!bol of
this o!!it!ent#
*e also believe in !aintaining regular ontat with our onsu!ers# +his a""lies
both to how we "resent our "roduts and to how we address our onsu!ers'
questions and onerns# *hen Henri Nestl "re"ared his first bo,es of infant
for!ula for sale, he "ut his address on the "a4ages so "eo"le would 4now
where to go if they had questions# +oday, our 'onsu!er Eelationshi" 9anel with
the words C+al4 to NestlC e,"resses the sa!e o!!it!ent#
+his is why we have a worldwide Nestl 'onsu!er Servies networ4 devoted to
aring for our onsu!ers# 5ur "eo"le have e,"ertise in a wide range of areas
suh as nutrition, food siene, food safety and ulinary e,"ertise# +hey "rovide
the "ro!"t, effiient and high quality servie that onsu!ers e,"et fro! Nestl#
1n addition, we teah the! tal4 with onsu!ers and above all, to listen# -istening
hel"s us to understand what "eo"le want# Nestl uses the insights gained fro!
relationshi"s with onsu!ers to drive "rodut develo"!ent#
Submitted by SUHAS S DHAGE. 22
/t Nestl, we are for our onsu!ers beause our suess de"ends on !eeting
their needs and e,"etations# +hrough listening and understanding, we an
!a4e "roduts that they will want to use all through their lives#
U+UR/ PR0.P/(+.
Nestle is foused on "rodut e,"ansion and i!"rove!ent of distribution
effiieny# +he ;airy business is being e,"anded and is e,"eted to drive growth
in the long run, although short.ter! "rofitability !ay be i!"ated in the
invest!ent stage# +he o!"any3s entry into the !ineral water seg!ent is a
onern, as the seg!ent is already overrowded and the o!"any faes stiff
o!"etition es"eially fro! the 'ola !anufaturers# /quisition of an established
brand ould ata"ult Nestl3s "osition in the seg!ent# 1n ategories li4e
beverages, ulinary "roduts and hoolate onfetionery, the o!"any is
loo4ing at driving growth through launh of s!aller S?<3s, thus enabling
affordability to a wide setion of the "o"ulation#
Submitted by SUHAS S DHAGE. 23