NESTLE

INTRODUCTION

“Nestlé” is a Swiss-German word which means

“Little Nest” which is its trademark
Nestlé is the worlds number one food company

5th largest company of the world according to its turn over

2 million 31 thousand people employed from all over the World

Present in 81 countries of the globe having 522 factories

Over 700 products renovated or innovated in the past five years, with wellness in mind
MISSION STATEMENT

"Nestle is the largest food company in the world. But,

more important to them is to be the world's leading
food company”.
PROFILE
Nestle India Ltd. is a 51% subsidiary of Nestle SA, the largest processed food
company in the world. In India, the company dominates the coffee, infant food,
weaning cereals and noodles markets. It has very strong brands like “Nescafe”,
“Maggie” , “Cerelac” and “Milkmaid”.

Nestle primary lines of business are beverages, infant foods, confectioneries,

culinary and milk products

Beverages: Beverages account for 38% of the company’s turnover and Nestle is a
market leader in instant coffee with its Nescafe and Sunrise brands
Milk Products : Nestle manufactures and markets a range of milk products like dairy
whiteners, sweetened milk, infant foods , weaning cereals under the Everyday,
Milkmaid, Lactogen, and Cerelac brands. Milk products form 34% of the
company’s turnover and are the cash generators for the company. These segments
are growing at a very slow pace.
PROFILE CONTD
Nestlé world-famous brands include Nescafe, Kit Kat and Perrier, among many
others. The group also owns a large shareholding in cosmetics company L'Oreal. As
with other food companies, recent years have seen a greater concentration on a
focused food and beverage business. In particular Nestlé has leveraged its
performance in sectors such as ice cream and petfoods with an aggressive
acquisition strategy. Advertising Age estimated global measured advertising
expenditure of $2.3bn in 2008, making Nestlé the world's #10 advertiser

Some of the Brands of Nestle are Nescafe, Gervais Extreme, L'Oreal, Maggi Nestlé,
Rowntree, Maxibon, Nestlé Purina / Friskies, Galderma, Nestea, Buitoni, Cereal
Partners, Herta, Dreyer's Ice Cream, Gerber, Nestlé Waters, Nespresso,
Baerenmarke, Alcon Laboratories, Nesquik, Jenny Craig, Baci, Nestlé Professional,
Nestlé Baby, Food Willy Wonka
HISTORY
Food is a core element of our daily lives. It enables us to survive as well as a balance and good
quality food also help to ensure a better standard of living.
 
HENRI NESTLÉ (The Founder of Nestlé) said:

“They thought that my invention could save the lives of so many children. Counted enormously,
the financial gain was not the prime motivation.”
 
Nestlé was founded in 1866. In 1905 the two companies Nestlé and the Anglo-Swiss
Condensed Milk Co. merged. They not only unite their worldwide distribution and production
network but also their milk-processing expertise. If we talk about taste and pleasure, many
customers think 1st and foremost of the range of chocolate products that has belonged to Nestlé
since1905 and was expanded significantly in 1929 with the taste over of Swiss chocolate makers
Peter, Cailler and Kohler the acquisition of Rowntree (Kit Kat, Smarties).

The expansion of their activities into the area of performance nutrition with the take over
of Power Bar in 2000 follows this trend. With the expansion of food services division and
takeover of Chef America in 2002, Nestlé acknowledgment the growing trend for eating out-of –
home.
HISTORY CONTD
With the acquisition of carnation in 1985, they entered the pet food business becoming
a joint world leader via mergers with Spiller (1985) and Purview (2001).

Since 1947, Nestlé has also held an indirect participation in L’Oreal. Following the
1989 joint venture, Gal derma, in dermatology, the 2002 joint ventures, “Laboratories
Inneov” combine the competencies of Nestlé in nutrition research with those of
L’Oreal in cosmetics. This creates access to a further dimension of nutrition, that of
promoting beauty and wellness via specific nutritional supplements.

The success of the 1977 move into the pharmaceutical companies with the takeover of
Alcon was highlighted with the partial IPO (around 25%) in 2002.
 
“With over the hundred years of experience, we know that the trust of our consumer
is based on the quality and safety of our products. We also know that we must
continue to deserve this trust”.
 
FINANCIALS
 SALES IN MILLIONS 2010 2009

 FOOD AND BEVERAGES

- ZONE AMERICA 7634 7487
- ZONE EUROPE 5336 5241
- ZONE ASIA,AFRICA 4120 3744

 NESTLE WATERS 2036 2068

 NESTLE NUTRITION 2512 2420
 OTHER FOD & BEVERAGES 2632 2338
 NESTLE FOOD AND BEVERAGES 24270 23298
 PHARMA 2008 1876

 TOTAL GROUP 26278 25174

PRODUCTS

Nestle
Ice Cream Syrups Jams Homey
Milkmaid

Nestle fresh Nestle slim

Huckleberries Candies Maggi sauces
and Dahi Milk

Nestle iced tea

Maggi pizza Maggi Nescafe
Nescafe with Green
mazza Pichkoo cappuccino
Tea

Nestle Milo
Nestle sunrise Nestle Munch
smart plus
PRODUCTS CONTD
 Milk Products and Nutrition
PRODUCTS CONTD
 BEVERAGES
PRODUCTS CONTD
 PREPARED DISHES AND COOKING ADS
PRODUCTS CONTD
 CHOCOLATE AND CONFECTIONARY
PRODUCT PORTFOLIO IN INDIA

Milk
Milk Product
Chocolate
Product and
Chocolate 19.5%
Nutrition
and 23.2
19.5%
Nutrition 47.3%
47.3%
Dishes
Beverages
Dishes and
and cooking
Beverages 23.2 Aid
cooking %
% 10%
Aid 10%
PRODUCT PORTFOLIO CONTD
 Nestle India Ltd (NIL)Nestle India Ltd a 59.8 per cent subsidiary of Nestle
SA,Switzerland, is a leading manufacturer of food products in India. Its products
include soluble coffee, coffee blends and teas, condensed milk, noodles (81 per cent
market share), infant milk powders (75 per cent market share) and cereals (80 per
cent market share). Nestle has also established its presence in chocolates,
confectioneries and other processed foods. Soluble beverages and milk products are
the major contributors to Nestlé's total sales. Some of Nestlé's popular brands are
Nescafe, Milkmaid, Maggi and Cerelac. The company has entered the chilled dairy
segment with the launch of Nestle Dahl and Nestle Butter. Nestle has also made a
foray in non-carbonated cold beverages segment through placement of Nestea iced
tea and Nescafe Frappe vending machines. Exports contribute to 29 per cent of its
turnover and the company reported net sales of US$ 650 million in 2009.
PRODUCT WIDTH AND DEPTH
Chilled Meats
- Franfurter classics 10s and 4s
- Frankfurter Jumbos
- Chicken Franfurter 10s

Breakfast Cereals
- Nestle Cheerios
- Nestle Honey Nut Cheerios
- Nestle Honey Oat Cheerios
- Nestle Shredded Wheat
- Nestle Shredded Wheat Bitesize
- Nestle Honey Nut Shredded Wheat
- Nestle Fruitful Shredded Wheat
PRODUCT WIDTH AND DEPTH CONTD
- Nestle Shreddies
- Nestle Froasted Shreddies
- Nestle Coco Shreddies
- Nestle Honey Shreddies
- Nestle Golden Nuggets
- Nestle Cinnamon Grahams
- Nestle Fitnesse
- Nestle Fitnesse and Fruit

Drinks
Coffee
- Nescafe Original
PRODUCT WIDTH AND DEPTH CONTD
- Nescafe Gold Blend
- Nescafe Black Gold
- Nescafe 37
- Nescafe Decaf

Water
- Vittel Bonne Source
- Perier
- Buxton natural Mineral Water

Hot Choclate
- Aero
- Skiny Cow
PRODUCT WIDTH AND DEPTH CONTD
Confectionary
Choclate Bars
- Aero
- Milkybar
- Heaven
- Kitkat

Choclate Sweets
- Rolo
- Smarties
PRODUCT WIDTH AND DEPTH CONTD
Sugar Confectionery
- After Eight
- Black Magic
- Dairybox

Cakes
Ambient Cakes
- Smarties celebration Cake
- Smarties Gift Cake
- Funtastic Traybake
- Smarties Cup Cakes
- Jellytots Cup Cakes
- Smarties Mini Bites
- Smarties Cake Bars
-
PRODUCT WIDTH AND DEPTH CONTD
- Rolo Valentives Cake

Instore Bakery
- Smarties cookies
- Smarties Mini Cookies
- Quality street Matchmaker
- Rolo Cookies
- Toffee Crisp Cookies
- Yorkie cookies
- Rolo Doughnuts
- Marties Iced Ring Doughnuts
- Smarties Mini Doughnuts
- Toffee Crisp Doughnuts
PRODUCT WIDTH AND DEPTH CONTD
Cake
- Smarties Party Cake
- smarties Funny Faces Cup Cake
- Rolo Choc Brownie
- Yorkie Choc Cookie
- Milkybar my First Baking Mix
MARKETING MIX

Product
Price
Promotion
Placement
STPD ANALYSIS
STPD Analysis Segmentation:- Based on lifestyle and habits of
urban families

Targeting:- Kids, Office goers

Positioning:- With statements such as “2 minute noodles” and

“Easy to cook, good to eat”

Differentiation:- Taste, Flavours, Packaging

CUSTOMERS
Every person, of any age group, gender etc is the target customer of Nestle

Nestle target its customers by knowing customer needs & demands. For this purpose it made
customer profile.

Customer profile based on two criteria:

Qualitative research

This involves setting up small focus groups of consumers who express their ideas and opinions
about their needs and views on different products.

At one level, this might involve asking groups of athletes to talk about their lifestyles, dietary
habits and training regimes.

At another level, it could involve a consumer focus group discussing the quality of the nutritional
labeling on a yogurt drink.
CUSTOMERS CONTD
Quantitative research:-

This involves only relatively few people like professional market researchers may
interview thousands of people through postal or telephone interviewing.

Nestlé regularly uses both forms of research to gain a clear idea of consumer opinions
and trends.

Using these customer profile techniques, Nestle developed its different product
strategies to target the customers.
CUSTOMERS CONTD
Quantitative research:-

This involves only relatively few people like professional market researchers may
interview thousands of people through postal or telephone interviewing.

Nestlé regularly uses both forms of research to gain a clear idea of consumer opinions
and trends.

Using these customer profile techniques, Nestle developed its different product
strategies to target the customers.
SEGMENTATION
Segmentation of world in three zones

 US
 Asia
 Oceania & Africa
THANK YOU