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14 Nestle Project
14 Nestle Project
Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded
food player in the country. It has a broad based presence in the foods sector with
leading market shares in instant coffee, infant foods, milk products and noodles.
It has also strengthened its presence in chocolates, confectioneries and other
semi processed food products during the last few years. The company has
launched Dairy Products like UHT Milk, Butter and Curd and also ventured into
the mineral water segment in 2001. Nestle’s leading brands include Cerelac,
Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life.
BUSINESS PRINCIPLES
Since Henri Nestlé developed the first milk food for infants in 1867, and saved
the life of a neighbor’s child, the Nestlé Company has aimed to build a business
based on sound human values and principles.
While our Nestlé Corporate Business Principles will continue to evolve and adapt
to a changing world, our basic foundation is unchanged from the time of the
origins of the Company, and reflects the basic ideas of fairness, honesty, and a
general concern for people.
Employees, people and products are more important at Nestlé than 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.
Quality products
Our focus is on products. The ultimate justification for a company is its ability to
offer products that are appealing because of their quality, convenience, variety
and price -- products that can stand their ground even in the face of fierce
competition.
Long-term view
Nestlé makes clear a distinction between strategy and tactics. It gives priority to
the long-range view. Long-term thinking defuses many of the conflicts and
contentions among groups -- this applies to employment conditions and relations
with employees as well as to the conflicts and opposing interests of the trade and
the industry. Of course, our ability to focus on long-term considerations is only
possible if the company is successful in the struggle for short-term survival. This
is why Nestlé strives to maintain a satisfactory level of profits every year.
Decentralization
Uniformity
Diversification
The Nestlé research and development centers have two main tasks: to create
new products and manufacturing processes and to improve those that already
exist. These centers play a key role in product safety and quality and also have
their role in conserving resources and protecting the environment. Environmental
concerns are an integral part of any development process to ensure that our
future commercial operations meet the desired criteria.
The Nestlé Research Center provides the scientific support needed to prevent
and solve environmental problems arising in the development groups as well as
manufacturing. In addition, studies are carried out to find new ways of using
The Nestlé development centers prepare environmental impact studies for new
products and manufacturing processes. These cover all aspects, from raw
materials, through processing, to the final packed product. These analyses
provide additional elements for use in deciding whether to commercialize a new
product, or to introduce a new or modified process.
Foresight
At present, the world faces daunting questions about its ability to provide enough
wholesome food for everyone. Malnutrition and poor eating habits are still serious
problems in many developing countries. By 2100, the world's population will
double. Will it be possible to feed a world with so many inhabitants? At Nestlé,
the big picture is all about feeding the world and providing food and nutrition for
an ever-growing population. Our response to this situation is to intensify
research, strive for innovations and improve quality.
The public's sense of the power and size of a corporation is often inaccurate, for
a company's power is limited by a host of factors including legislation,
competition, regulatory bodies and publicity. From a business point of view, it is
desirable for a firm to achieve the size best suited to a specific industry or mode
of production. To be competitive internationally and make significant investments
in research and technology, a larger company has an advantage. From a strictly
organizational point of view, flexible, simple structures work best and excessively
large units should be avoided whenever possible. In both respects Nestlé has a
natural advantage: Although it is a big company, it is spread out over many
countries and each of Nestlé's factories has its own management and
responsibility.
The Nestlé Group is in principle not directly involved in primary production of raw
materials and other food ingredients. In general we use locally available raw
materials and purchase them either directly from producers or through existing
trade channels.
Raw materials have to meet clearly established quality criteria and are checked
for possible contaminants including environmental contaminants. Our purchasing
specifications comply not only with legal requirements but go further to ensure
highest safety and wholesomeness of our products.
• preserve and improve natural soil productivity and economize and protect
water resources
• allow the lowest, most appropriate and safe use of agro-chemicals
• use the least energy.
Packaging
Activities related to the environment benefit from the same treatment and their
communication is secured through all currently available means inside and
outside the Group.
It is the policy of the Nestlé Group to strictly comply with all laws and regulations
relevant to our activities. We participate in discussions on food legislation and
regulations between international organizations, government representatives,
industry, the scientific world and consumer associations. We also apply this
policy to environment related matters.
Quality and nutritional value are the essential ingredients in all of the nestle’s
brands. Millions of people prefer Nestlé products every day, happy with the
addition to their wellness that they bring. If you are looking for a specific brand
our product, just use the alphabetical index below to jump straight to a listing. Or
you can explore by category.
The production of infant food goes right back to the origins of the Nestlé
Company. Henri Nestlé's 'Farine Lactée' was the first product to bear the Nestlé
name.
In 1867 a physician persuaded Henri Nestlé to give his product to an infant who
was very ill — he had been born prematurely and was refusing his mother's milk
and all other types of nourishment. Nestlé's new food worked, and the boy
survived. From the very beginning, Nestlé's product was never intended as a
competitor for mother's milk. In 1869, he wrote: "During the first months, the
mother's milk will always be the most natural nutrient, and every mother able to
do so should herself suckle her children."
The factors that made baby foods success in the early days of the Nestlé
company — quality and superior nutritional value — are still as valid today for the
wide range of infant formula, cereals and baby food made by Nestlé. The World
Health Organization (WHO) recognizes that there is a legitimate market for infant
formula, when a mother cannot or chooses not to breast feed her child. Nestlé
markets infant formula according to the principles and aims of the WHO
International Code of Marketing Breast Milk Substitutes, and seeks dialogue and
cooperation with the international health community and in particular with the
WHO and UNICEF, to identify problems and their solution. Nestlé's expertise as
the world's leading infant food manufacturer, gained over more than 125 years, is
put at the disposal of health authorities, the medical profession and mothers and
children everywhere.
The story of chocolate began in the New World with the Mayans, who drank a
dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua and
used the cocoa bean for currency. In 1523, they offered cocoa beans to Cortez,
who introduced chocolate to the Old World, where it swiftly became a favorite
food among the rich and noble of Europe. Nestle forayed into chocolates &
confectionery in 1990 and has cornered a fourth share of the chocolate market in
the country.. It has expanded its products range to all segments of the market
The Kitkat brand is the largest selling chocolate brand in the world. Other brands
include Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One, Munch etc. The
sugar confectionery portfolio consists of Polo, Soothers, Frootos and Milkybar
Eclairs. All sugar confectionery products are sold under the umbrella brand
Allen's. Nestle has also markets some of its imported brands like Quality Street,
Lions and After Eight. New launches such as Nestle Choco Stick and Milky Bar
Choo at attractive price points to woo new consumers. Chocolate confectionery
sales registered a strong 21.5% yoy growth in 2001 aided by good volume
growth in Munch, Kitkat and Classic sales. Nestle relaunched Bar-One during the
year.
From the beginning, turning raw, bitter cocoa beans into what one 17th century
writer called "the only true food of the gods" has been a fine art, a delicate
mixture of alchemy and science.
There are many myths and stories as to the invention of ice cream: was it Marco
Polo who brought it back from China (along with pasta)? Probably not,
considering he most likely never visited China.
The story of its popularity is however connected with the invention of technology
to make it on an industrial scale, and to keep it cold once made. Before
refrigeration techniques, food was frozen with the aid of ice, mixed with salt,
which was either stored in ice houses or shipped from cold countries. But then at
the end of the 19th century, both making and freezing it became easier, and
together with the invention of the ice cream cone, made the product boom.
Today, the United States is the absolute leader in terms of volume consumed,
but the highest per head consumers are in New Zealand. Flavors you'd never
have thought of and yet they're commercially available:
The ice cream cone is the most environmentally friendly form of packaging. A
Syrian from Damascus, Ernest E Hamwi is credited with its invention. Apparently,
during the 1904 St Louis World's Fair, his waffle booth was next to an ice cream
vendor who ran short of dishes. Hamwi rolled a waffle to contain ice cream and
the cone was born.
The problem was so widespread that it became the object of intense study in
1882 by the Swiss Public Welfare Society, which offered a series of
recommendations, including an increase in the consumption of vegetables.
.Maggi merged with Nestlé in 1947. Buitoni, the authentic Italian brand, which
has been producing pasta and sauces in Italy since 1827, became part of the
Nestlé Group in 1988.
Beverages like coffee, tea and health drinks contribute to about 30% of Nestle’s
turnover. Beverage sales registered a 15% yoy growth during 2001. While about
14% of sales come from domestic market, exports contribute to about 16% of
sales.
Nestle's Nescafe dominates the premium instant coffee segment. Nestle’s other
coffee brand Sunrise has also been relaunched under the Nescafe franchise to
leverage on the existing equity of the brand. Nestle has focused on expanding
the domestic market through price cuts and product repositioning. However it has
been losing share in the domestic market, where it has a 37% market share.
Milo, a brown-malted beverage was launched in 1996. It has an estimated
volume share of about 3% in the malted food drink segment. Nestle has
launched non-carbonated cold beverages such as Nestea Iced Tea and Nescafe
Frappe during 2001.
Nestle is one of the largest coffee exporter in the country. Key export market is
Russia, besides Hungary, Poland and Taiwan. Nestle has received an award for
highest export of instant coffee and highest export of coffee to Russia and CIS
for FY00 and FY01. Turnover contribution from exports registered a 17.5%
volume growth in F12/01. Nescafe sales to Russia accounts for 80% (Rs2.5bn)
of Nestlé’s Rs3bn export turnover.
Everyday, millions of people all over the world show their confidence in us by
choosing Nestlé products. This confidence is based on our quality image and a
reputation for high standards that has been built up over many years.
Every product on the shelf, every service and every customer contact helps to
shape this image. A Nestlé brand name on a product is a promise to the
customer that it is safe to consume, that it complies with all regulations and that it
meets high standards of quality. Customers expect us to keep this promise every
time.
Under no circumstances will we compromise on the safety of a product and every
effort must be made to avoid hazards to health. Likewise, compliance with all
relevant laws and regulations is a must and is not negotiable. People, equipment
and instruments are made available to ensure safety and conformity of Nestlé
products at all times. The effort is worth it. Companies with huge quality
standards make fewer mistakes, waste less time and money and are more
productive. They also make higher profits. Quality is their most successful
product. It is the key to their success, today and tomorrow.
Competition
Baby food and Instant coffee are categories where brand loyalties are very
strong and Nestle is the market leader. HLL is a significant competitor to Nestle
in instant coffee; while Heinz is the main competitor in the baby foods market.
The market for culinary products, semi-processed foods such as noodles, ready
mixes for Indian ethnic breakfast and sweets, is largely an urban market. HLL
and Indo Nissin Foods are the main competitors in these product segments.
Nestle has also achieved a significant 25% share in the chocolate/confectionery
market. The company has recently expanded its dairy products portfolio to
include, milk, curd and butter. The company also forayed into the bottled water
segment with the launch of its Perrier brand in the premium mineral segment and
Pure Life in the purified water segment.
We live in a competitive world and must never forget that their customers have a
choice. If they are not satisfied with a Nestlé product, they will switch to another
brand. Their goal, therefore, is to provide superior value in every product
category and market sector in which we compete. The pursuit of highest quality
at any price is no guarantee for success, nor is a single-minded cost-cutting
approach. Lasting competitive advantage is gained from a balanced search for
optimal value to customers, by simultaneous improvement of quality and
reduction cost. Success can never be taken for granted. We must watch and
learn from our competitors. If they do something better, we must improve our
own performance. We can achieve competitive advantage through Quality.
Quality is action
We also believe in maintaining regular contact with our consumers. This applies
both to how we present our products and to how we address our consumers'
questions and concerns. When Henri Nestlé prepared his first boxes of infant
formula for sale, he put his address on the packages so people would know
where to go if they had questions. Today, our Consumer Relationship Panel with
the words "Talk to Nestlé" expresses the same commitment.
In addition, we teach them talk with consumers and above all, to listen. Listening
helps us to understand what people want. Nestlé uses the insights gained from
relationships with consumers to drive product development.
At Nestlé, we care for our consumers because our success depends on meeting
their needs and expectations. Through listening and understanding, we can
make products that they will want to use all through their lives.