Professional Documents
Culture Documents
Em Nestle
Em Nestle
NESTLE
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ii
TABLE OF CONTENTS
1
MANAGEMENT PROCEDURES..........................................................................15
3.1
MARKETING STRATEGY....................................................................................38
6.1
6.2
INDUSTRY/SECTOR.............................................................................................11
SCOPE OF TRADE (NATIONAL/INTERNATIONAL)................................................13
LATEST DEVELOPMENTS REGARDING BUSINESS OF THE ORGANIZATION.........14
FINANCIAL PROCEDURES..................................................................................43
7.1
7.2
SWOT ANALYSIS....................................................................................................49
10 CONCLUSION..........................................................................................................55
11 REFERENCES............................................................................................................
iii
was operating factories in the United States, United Kingdom, Germany and Spain.
World War I created new demand for dairy products in the form of government
contracts; by the end of the war, Nestl's production had more than doubled.
After the war, government contracts dried up and consumers switched back to fresh
milk. However, Nestl's management responded quickly, streamlining operations and
reducing debt. The 1920s saw Nestl's first expansion into new products, with
chocolate the company's second most important activity.
as Ovaltine. In April 2007 Nestl bought baby food manufacturer Gerber for $5.5
billion.
In December 2007 Nestl entered in a strategic partnership with a Belgian chocolate
maker Pierre Marcolini.
Nestl agreed to sell its controlling stake in Alcon to Novartis on 4 January 2010.
The sale forms part of a broader US $39.3 billion offer by Novartis to fully acquire
the worlds largest eye-care company.
Our story begins in 1867, when Henry Nestle developed a baby formula that
saved childs life and marked the beginning of Nestle.
In 1890, Vevey factory produced 28 billion cans of Milk food and 2.2 million
cans of condensed Milk.
In 1912, Nestle begins it long relationship with South Asia when Nestle
condensed Milk company start.
Nestle In Pakistan
Nestle have been serving Pakistani consumers since 1988, when our parent
company Switzerland based on Nestle first acquired share in Milkpak.
1n 1992, Nestle takes over the running of company and begins to develop
its Milk collection network.
In 1997, the Kabirwala plant becomes a fully owned unit of Nestle Pakistan.
It is safe to consume.
We are committed to offering products and services to all customers that meat
their needs.
Our management takes the lead, sets the objectives and demonstrates its
commitment towards quality.
All Nestle functions across our value chain are fully responsible to follow
mandatory norms.
We focus on facts and results and we strive for Zero defect and excellence in
every thing we do.
As per our company vision in 2020 production capacity of all plants working
in Pakistan is being increased.
2.1
Industry/Sector
Nestl is conscious of the fact that the success of a corporation is a reflection
of the professionalism, conduct and the responsible attitude of its
management and employees. Therefore recruitment of the right people and
ongoing training and development are crucial.
Nestl continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.
As is the Nestl policy around the world, we care for our people. We
uphold the principles of the UN Global Compact and encourage
women to participate.
Over the years, better and more efficient machinery has been introduced. This
has helped us speed up production, and provide our consumers with their
favourite brands of bottled water in convenient package sizes.
We are proud that the Islamabad factory has made efforts to bring Pakistani
women into the workforce, by providing a comfortable and enabling work
environment.
2.2
C.
The Nestle Milkpak is following growth strategy. The immense competition is going
in the market; it is recommended that Nestle Milkpak should invest more in milk
business and other value added milk products. In this way Nestle Milkpak can fulfill
the local demand by locally processed milk and milk products instead of the imported
milk products. Nestle has brand recognition throughout the world and they can export
milk powder and other value added products in future.
2.3
For Nestl USA, training is more than just a transfer of knowledge and skills. It is
fundamental to our culture of learning and development and to the fostering of our
corporate principles and values.
Nestl University teaches employees how to cultivate their capabilities and how to
realize their full potential. Nestl University offers over 30 courses in five key
curriculum areas: Innovation, People, Execution, Functional Capabilities and
Working at Nestl. Web-based and instructor-led classes, plus online access to books
and media, are just some of the ways you can learn.
Management Procedures
The executive board, a distinct entity from the board of directors, includes:
Frits van Dijk, EVP of Asia, Oceania, Africa, Middle East divisions
3.1
Consumer Service
manager
Area
Manager
System
Suport
Event
Or
Consumer Service
Officer
Territory in
charge
System support
manager
Sales
Associates
Officer
DS
Leader
Event
Manager
4.1
Nestle Hot Cocoa Mix, Rich Chocolate, No Sugar Added, 8-Count Envelopes (Pack
of 12) $33.26
Visit Store
NESTLE NES70821 Coffee
$9.95
CSN Office
Visit Store
Baby Ruth 24 X 2.1 Oz
Baby Ruth 24 X 2.1 Oz
$21.88
Visit Store
Bit-o-Honey, 1.7 oz 36 ct
Bit-o-Honey, 1.7 oz 36 ct
$37.85
Visit Store
6 Pack-32 Oz. Cans/ Nestle Good Start...
6 Pack-32 Oz. Cans/ Nestle Good Start Baby Formula/mix
$39.99
Visit Store
Nestle Milk Chocolate Bar 24ct
Nestle Milk Chocolate Bar 24ct
$25.00
Visit Store
Nestle Cerelac Trigo con Leche
Nestle Cerelac Trigo con Leche
$14.95
Visit Store
Nestle GOOD START Supreme Infant...
Nestle GOOD START Supreme Infant Formula With Iron Powder 188oz.
Visit Store
Nestle Good Start Protect Plus Formula...
Nestle Good Start Protect Plus Formula - 12 oz Can $23.95
Visit Store
Nestle Good Start Protect Plus Formula...
Nestle Good Start Protect Plus Formula - 12 oz Can - - cs 6
$141.00
Visit Store
NESTLE ...
NESTLE NES24300
$24.99
CSN Office
Visit Store
NESTLE ...
NESTLE NES94100 Wonka
$12.99
CSN Office
Visit Store
Nestle Hot Cocoa Mix, Rich Chocolate,...
Nestle Hot Cocoa Mix, Rich Chocolate, No Sugar Added, 8-Count
$38.33
Visit Store
Nestle Nips Candy Coffee 4 oz
Nestle Nips Candy Coffee 4 oz
$1.99
Visit Store
Nerd's Rope .92 oz
Nerd's Rope .92 oz
$23.79
Visit Store
Nestle Aero Dark 24 X 42g Bars
Nestle Aero Dark 24 X 42g Bars
$34.56
Visit Store
Nestle Dark Raisinets Chocolate...
Nestle Dark Raisinets Chocolate Covering California Raisins
$20.35
Visit Store
Nestle 31831: Carnation Coffee-mate ...
Nestle 31831: Carnation Coffee-mate Pump Dispenser
$19.89
Visit Store
Nestle Carnation Instant Breakfast...
Nestle Carnation Instant Breakfast Essentials, Rich Milk Chocolate
$31.20
Visit Store
Nestle GOOD START Supreme Soy DHA & ARA...
Nestle GOOD START Supreme Soy DHA & ARA Infant Formula with Iron
$15.99
Visit Store
Nestle Glucose Control BOOST Strawberry...
Nestle Glucose Control BOOST Strawberry 8 oz - Case of 24
$41.99
Visit Store
Nestle Boost Nutritional Chocolate...
Nestle Boost Nutritional Chocolate Pudding - 24/8 ounce cups
$81.97
Visit Store
Visit Store
Nestle Good Start Gentle Plus Powder 12...
Nestle Good Start Gentle Plus Powder 12 oz Can - - cs 6
$122.08
Visit Store
Boost High Protein Nutritional Energy...
Boost High Protein Nutritional Energy Drink, Vanilla, 8 Ounce Bottle
$39.49
Visit Store
Nestle GOOD START Supreme NATURAL...
Nestle GOOD START Supreme NATURAL CULTURES BL Infant Formula Powder
$24.99
Visit Store
Nestle Coffee Crisp Dark 70% Cocoa 4 X...
Nestle Coffee Crisp Dark 70% Cocoa 4 X 24 X 42g Bars
$120.00
Visit Store
Visit Store
6 Cans - Nestle Good Start Gentle Plus...
6 Cans - Nestle Good Start Gentle Plus Infant Formula
$59.99
Visit Store
Nestle BOOST Plus Vanilla 8 oz Bottle -...
Nestle BOOST Plus Vanilla 8 oz Bottle - Case of 24
$26.99
Visit Store
Nestle Coffee Crisp Dark 70% Cocoa 24...
Nestle Coffee Crisp Dark 70% Cocoa 24 X 42g Bars
$34.56
Visit Store
8 Cans Nestle Good Start Gentle Plus...
8 Cans Nestle Good Start Gentle Plus Formula 12 Oz
$95.00
Visit Store
4.2
Nestle Juices
Nestle Nesvita
Nestle yogurt
Bottled Water
Chocolate
Baby Food
Maggi noodles
Nescafe
At Nestl, our chief commitment is to our consumers, and we make every effort to
make sure that their voices are heard.
When Henri Nestl prepared his first boxes of infant formula for sale, he put his
address on the packages. Today, our Consumer Relationship Panel exhorts people to
"Talk to Nestl", expressing the same belief in openness and accessibility.
Our consumer services department is staffed by experts in every area related to our
products and wellness, and is poised to provide prompt and relevant service to our
consumers.
We believe that consumer services requires us to talk to consumers and also, above
all, to listen to them.
Only by listening to what people say can we understand what they want and need.
Only by understanding their needs can we serve our consumers to the fullest.
Transaction Details
Frequency,
items bought,
prices paid,
Acquisitions Details
Marketing channel,
Address/city.
4.3
June 18, 2008 (Sawf News) - Nestle has dropped Bollywood star Rani Mukerji as
brand ambassador for its chocolate brand, Nestle Munch, because she has ceased to
be a youth icon.
Rani had endorsed the product for the last four years, and featured in many
Television commercials promoting the brand.
A few months earlier, Rani was dropped from Fanta commercials, and replaced by
rising South star Asin, Aamir Khan's Ghajini co-star.
A top PR official of Nestle India, based in Gurgaon, talked to us on condition of
anonymity.
"Our contract with Rani Mukherjee was due to get over and we were in the midst of
planning new marketing strategies for our brand. It is then that we decided that we
won't be renewing our contract with her," the official told us. "Our new strategies
include targeting the youth and Rani ceases to be any kind of a youth icon anymore.
Her films haven't really worked out at the box office and we are looking out for
someone who is very popular in this category. We are working out on a few options
and a final announcement shall be made very soon."
A source close to Rani confirmed the development, telling us, "Rani is extremely
disappointed by Nestle's unprofessionalism. They knew well that once the contract
came up for renewal, Rani would increase her price. They wanted to go in for
someone cheaper perhaps. They should be thankful that Rani has got their product
noticed in last four years."
Nestle's action seems to reflect the film industry's perception that Rani is no more the
box office draw that she once was.
Rani's stock in the industry has dropped following the poor box office response to her
recent films like Saawariya (2007), Laaga Chunari Mein Daag (2007), Ta Ra Rum
Pum (2007), and Babul (2006). She is also perceived to be too closely aligned to the
Yash Raj Films banner by other filmmakers.
Even her 'friends' in the industry are not ready to bet on her anymore.
When Kajol vacillated over signing up for My Name is Khan, the film's producer and
director, Karan Johar, a close friend of Rani, surprised industry watchers by
announcing that he would go with Kareena instead, even though Rani comes through
as a more natural Kajol replacement.
Till recently, every Karan Johar film featured Rani, often in cameo or relatively
insignificant roles, like in Kal Ho Naa Ho (2003), Kabhi Khushi Kabhie Ghum
(2001), and Kuch Kuch Hota Hai (1998).
Rani must find it hard to digest the manner in which her standing in the industry has
started to unravel. Not so long ago she counted amongst the top Bollywood actresses.
We select flexible, innovative people who are ready to confront new challenges and
make a difference. Our groundbreaking Management Trainee Programme aims to
develop talented young men and women and help them achieve their potential in a
dynamic and enabling environment.
Over a hundred people travel out of the country every year to take advantage of our
international training and development events
5.1
Employees, people and products are more important at Nestl han systems.
Systems and methods, while necessary and valuable in running a complex
organization, should remain managerial and operational aids but should not become
ends in themselves. It is a question of priorities. A strong orientation toward human
beings, employees and executives is a decisive, if not the decisive, component of
long-term success.
5.2
There are a number of ways you can join us. We like to recruit people into real jobs,
and when a position becomes available, we will select the best person for it. Our
recruitment and selection practices and procedures are transparent, fair, and comply
with legal requirements. Making use of selection panels that are utilised for all
vacancies ensures transparency. The persons involved in the selection panels fairly
represent a diverse group. Management Trainee ProgrammeIf you're young, bright
and hard working, the Management Trainee Programme may be the place for you.We
hire fresh graduates as potential managers to develop new competencies and skills
through on-the-job development.You'll be hired in one of various departments at
inductee level on a 12-month training programme. Once you've completed the
Marketing Strategy
Optimise and consolidate resources and processes for a low-cost but efficient
Develop and manage simplified and effective supply network to achieve a high
level of service
reward
Today, Nestl Milkpak produces in over 81 countries and achieves 98% of its
turnover outside Europe. Nestl milkpak is the worlds largest milk company, which
does 98% of its business. It has an annual turnover of 70 billion Swiss francs, 522
new factories in 81 countries, 200 operating companies, 1 basic research outer and 20
technological development groups, has more than 231,000 employees and more than
8000 products around the globe. There are three companies co-ordinate the activities
of some 200 operating companies around the globe. Their functions and details are as
follows: The first, Nestl milkpak, holds the financial shares in the allied companies.
It also checks the profitability of these companies and to ensure the profitability of
the group as whole.
The second, Nestl milkpak, has two areas of activities that are as follows:
Product Segmentation
Manufacturers diversify products within each needs base to appeal to buyers with
different tastes and wealth.
6.1
company will inform their consumer about the new, upcoming product and value
added services to the existing product. The sources which can use by the company to
inform their consumers are print, electronic as well as through their websites.
As a mother you want the best for your child and almost always *worry about his/her
health. But are you completely sure if your child is getting sufficient nutrition for his
or her good health and development?
Many of you may not be so sure. Children between 1 to 3 years of age experience
rapid growth and strong height and weight gains making their nutritional
requirements unique.
That's why we have NESTL NESLA, growing-up milk for children 1-3 years of
age. NESTL NESLAC provides the right vitamins and minerals in the right
proportions that your little one needs at this particular age.
NESTL NESLAC is available in Honey flavour and is enriched with the right
balance of Protein, Iron, Calcium and Multivitamins to help give your child a strong
and healthy foundation for life!
Market Positioning:
They will position our product as a high quality product consumer focused. Messages
like
They knows your taste better than us, Nestle Milkpak now at your door step;
Add additional flavors to your life will help us portray our picture clearly and
distinctly. Milkpak will position our product against the competitors and gain
competitive advantage through our efficient promotional methods, using innovations,
and by reaching closer to our target market through the arrangement of events like
BASANT, VALENTINE DAY and etc. In short consumers will view us as a product
providing highly quality, in terms of taste, customer focused and, at the same time
reasonably priced as compared to others.
Milkmaid Sweetened Condensed Milk did not perform as per plan, and Mr Rolland
said the company is taking corrective action to improve the performance of Milkmaid
Squeezy. Similarly, in confectionery, Nestle Chocostick is being reviewed, even as
the company said products such as Nestle Milkybar Eclairs, Nestle Eclairs and Polo
lozenges have performed well.
In the recent past, Nestle has been reviewing the performance of Milo Chocolate
Energy Food Drink and it launched Milo with `Badam Shakti' in select cities of Tamil
Nadu during last fiscal. The Chairman said performance of the new variant is being
monitored.
Among the products that continue to perform well from the Nestle stable are Nestle
Munch and Nestle Kitkat chocolates, Nescafe instant coffee and Everyday Dairy
Whitener.
Mr Rolland said in the annual report that the company is aware of the fact that with
changing lifestyles, consumers are seeking food products that provide greater
convenience, along with taste and pleasure, and that Nestle is working on several
initiatives to provide consumers with products of their choice.
Among new products that Nestle launched last year are Nestle Coffee Eclairs, Nestle
Chocolate Eclairs, Nestle Sweet Lassi and Nestum 123.
The company reiterated its commitment to the `value for money' and affordability
planks and retained investments in brands, while refraining from passing on the
entire increase in commodity prices to consumers.
Financial Procedures
strengthen its capital base, which is required to meet company's expansion project.
He said an extra-ordinary general meeting of the members of the company has been
called on May 14 to seek the shareholders approval for the preferential allotment.
These investments would also result in enhancing the company's turnover from the
present Rs 86 crore to Rs 160 crore on completion of the projects. Ambika Cotton is
eyeing Europe and the US as emerging markets for its yarn exports.
As per the present shareholding pattern of ACM, of the 50 lakh equity shares, the
promoters and their close relatives/associates hold 34.51 lakh shares or close to 70
per cent, while the institutions including banks/FIs and the public hold another 14.81
lakh shares or 30 per cent.
The post-preferential allotment will consequently see dilution in the promoters
holding in the company by 10 per cent.
UTI Mutual spreads wings in eastern region
SALES figures logged in the eastern region, considered a relatively risk-averse
market for long, have sprung a surprise for UTI Mutual Fund, thanks mainly to what
is being identified as the region's growing appetite for equity schemes.
As much as 75 per cent of the fresh sales recorded by the fund is on account of
inflows into various equity products managed by it, figures pertaining to the year
ended March 31, 2005, indicate.
Considering the previous year's contribution of equity to UTI MF's total sales, this
represents a 100 per cent escalation and a significant change for the fund house.
An increasing interest displayed by investors based in the region in equity funds,
buoyed by the stock markets and driven partly by dividends announced in some of
the better-known schemes, have resulted in the change, said Mr T.K. Maji, head of
UTI MF in the East.
He was referring particularly to the dividends declared by schemes such as UTI
Master Value and UTI Mastershare; the former, incidentally, paid a 100 per cent
dividend earlier this year.
While this interest has primarily benefited plain-vanilla diversified growth funds,
some of the sectoral schemes too have received attention from the investing public, it
is pointed out.
These include funds dedicated to sectors such as auto and petroleum.
The penchant for equity, the MF has conceded, has been witnessed nationally and the
eastern market is not really an exception.
However, what is also admitted that trend in the region is quite noticeable, especially
when it is seen against the backdrop of the past.
The MF had an overall asset base of around Rs 21,000 crore at the end of March.
UTI MF's latest offering, UTI Dividend Yield Fund, is currently being marketed
aggressively in the region, Mr Maji observed, adding that the fund house expects
decent inflows from centres such as Kolkata, Bhubaneswar and Guwahati.
"Guwahati, if you go by last year's sales, can well turn out to be a good market. Local
investors have been responding well to all sorts of products, including liquid and
floating rate funds," he said.
7.2
Investment Opportunities
INTERNAL COMPETITORS
Haleeb Milk
Olpers milk
Good Milk
EXTERNAL COMPETITORS
DANONE
MILUPA
COMPETITORS ADVANTAGES
Our extensive milk collection system ensures that the Milk you get is of the
finest quality.
9 SWOT Analysis
One opportunity that Nestle has is that health-based products are becoming more
popular in the world, including in the United States. Consumers are becoming more
health conscious, and realize that living longer isnt only by luck and genetics. LC1
has not been introduced in the United States yet. Nestle also has an opportunity of
being even a larger market leader in Germany with LC-1. Within two years of
launching the product in Germany, they had captured 60% of the market. This was
due to the fact that they differentiated the product, and Germans simply preferred the
taste. Another opportunity of LC1 is that, because they are a market leader, they can
introduce more health-based products in Germany.
A threat to Nestle is the fact that some markets they are entering are already mature.
Danone had an established leadership position in the yogurt market in France. Since
Danone was the first to arrive in the market, they have always been the market leader
there. Also consumers in France liked the taste of LC-1, but researchers believe they
did not repurchase the yogurt because they preferred the taste of Danone products
better. Another threat to Nestle is that there is intense competition in the United
States yogurt market. General Mills Yoplait division is the leader in the yogurt
market in the United States. Yoplait has been the leader for years and is constantly
innovating new health products.
General Mills has been a strong competitor of Nestle and they are not short of
experience and strength. One strength that they have is their brand recognition. One
of their main goals has been to deliver brands that consumers trust and value and they
have succeeded. Another strength they have is their distribution. Yoplait is distributed
to more stores in the United States than any other brand of yogurt. This is one of the
reasons why they have been the market leader in yogurt for so long. Another strength
that General Mills has is the fact that consumers simply know Yoplait is healthy.
Yoplait is the only leading brand of yogurt to offer vitamin D and this vitamin is
especially important for adult women.(Yoplait.com) It is not just a coincidence that
Yoplait has vitamin D, but they have purposely added this vitamin to target female
consumers.
General Mills also has some weaknesses. They fact that they are the market leader in
the United States may be hindering them from innovation. They have been producing
Yoplait yogurt for many years, and have offered a series of new products in the past
few years in the nutrition department. Most of these products however, are very
common, and are widely offered in the United States. The health food industry in the
United States has been booming and General Mills does not offer enough products in
the smaller niche markets. They have not entered into many unknown areas because
of their success in the yogurt market.
An opportunity General Mills has is that its Yoplait division is so successful. Yoplait
is the only division of General Mills that is currently earning a profit. They have a
large market share over their main competitors in the yogurt market. Another
opportunity that they share with Nestle is that the health-based and nutritional food
market is booming. They are continually releasing and marketing new products in
these markets and they will continue to do so while the market continues to yield
profits.
The main threat that challenges General Mills is that there is intense competition
amongst the top players in the yogurt and related markets. Nutrition and health is
becoming more and more important to consumers in the United States, and
worldwide. Along with this comes increased competition to gain market share.
Simple supply and demand theories are prevalent in these markets. Another threat
General Mills has is that smaller companies are producing similar products with the
same or added nutritional benefits.
Strengths
Skilled labor.
Educated staff.
Arrangement of events.
Quality product
Weaknesses
on official website.
The target market of Nestle Milkpak is upper middle and high class because
lower middle and poor class cannot afford to buy UHT milk due to its premium
price.
but the name of nestle milkpak is always stand in the last because of low
advertising and marketing.
Opportunities
31billion customers are there in Pakistan for milk. Upton now only 4 billion
customers are being facilitated.27 billion customer markets is still available to
be penetrated.
2008-09
=>
648.43 353.71
2009-10
=>
753.89 372.05
The projected values of UHT Milk consumption and production are obtained
from the ARIMA model.
More people are coming towards processed milk because loose milk is
dangerous for health due to a lot of contamination.
Threats
Economic slow down can reduce demand. Two main competitors Haleeb and
Olpers are main threat for Milkpak especially the Olpers is growing very fast.
Inflation is getting higher and higher so the purchasing power of the people is
decreasing day by day.
There is no entry barrier for new entrants as the Olpers has come in the
market.
10 Conclusion
Problems Faced By Nestle
Nestle is facing the problem that is regarding the quality of mill . it is being perceive
that infant or child belonging to poor family who use low quantity of milk then
required in daily use are getting effected.
It is hard to agree the customer to swich to pack milk because of taste which is
huredel for further expansion
Recommendations
Nestle must state in writing that it accepts that the international code and the
subsequent relevant World Health Assembly Resolutions are minimum requirements
for every country.
Nestle must state in writing that it will make required changes to bring its Baby Food
Marketing policy and practice into line with International Code and Resolutions.
11 References
www.nestle.com Media
wikipedia.org/wiki/Nestl
www.foodanddrinkeurope.com
www.foodnavigator.com
www.Google.com
www.shareinfoline.com
Ask.com
sharekhan-firststep.com