Mission

Nestl is the world's leading Nutrition, Health and Wellness company. Our mission of
"Good Food, Good Life" is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
Our objective is to be the leader in Nutrition Health and Wellness, and the industry reference
for
financial
performance,
trusted
by
all
stakeholders.
We believe that leadership is not just about size; it is also about behaviour. Trust, too, is
about behaviour; and we recognise that trust is earned only over a long period of time by
consistently delivering on our promises. These objectives and behaviours are encapsulated
in the simple phrase, Good Food, Good Life, a phrase that sums up our corporate
ambition.
Nestl vision is to meet the various needs of the consumer everyday by marketing and
selling foods of a consistently high quality. Their objectives are to deliver the very best
quality in everything they do, from primary produce, choices of suppliers and transport, to
recipes and packaging materials.
Nestl. Good Food, Good Life
Nestl is more than just the largest food and beverage company in the world. Increasingly,
Nestl is becoming the worlds leader in nutrition, health and wellness. From the start,
nutrition has been at the core of our business. However, today we place far greater
emphasis on it and on health and wellness. Our Corporate Wellness Unit and the
individual business units are driving forces in bringing Good Food, Good Life to all our
consumers. We use four simple words to describe what we believe in and what we offer
consumers around the world: Good Food, Good Life. Food and beverages play an
increasingly important role in peoples lives not only because of the enjoyment and social
pleasure of eating together, but more and more in terms of personal health and nutrition.
Nutrition: The core of the Nestl business
Nutrition has always been at the core of our business. Indeed, the Company was founded,
back in 1866, on the launch of an innovative, nutritious baby food. Now, almost 150 years
later, we live in a very different world. The global population has grown to over seven billion.
People are living longer. Living standards have improved. Life styles have changed. These,
and other demographic factors, have had a considerable influence on Nestl both in terms
of the products we make and the way we run our business. Nestle today is at the forefront of
providing consumers with food and beverage solutions that generate a long, healthy life.
More than ever before, we are putting our priority on foods and beverages that contribute to
nutrition, health and wellness for everyone, and that includes babies, growing children,
senior citizens and other people with special dietary needs.
The Corporate Wellness Unit is responsible for driving the nutrition, health and wellness
orientation across the whole of Nestle covering the entire portfolio of our products, all over
the world. The Corporate Wellness Units Wellness in Action strategy aims consistently to
deliver better tasting, better-for-you nutritional products and solutions. We have a global
network of Wellness Champions in all our business units and in every country. Their job is to
facilitate, inspire, motivate and drive wellness initiatives.
Research & Development
Its the task of our Research & Development (R&D) to apply nutritional science and expertise
to create products that combine great taste with nutritional benefits. We firmly believe that
our research can make better food so that more and more people live a better life. Through
continuous innovation of new products and renovation of existing products, Nestl is creating

and enhancing hundreds of Nestl products, especially in terms of their nutritional benefits.
The Nestl Group invests around CHF 1.5 billion in R&D every year. Its more than any other
food company.
Our science-based nutritional research and expertise are driving nutritional innovations. One
example is our Branded Active Benefits (BABs). The objective of a BAB is to add a
specific health benefit to an existing product in a way that is meaningful and relevant to the
consumer. In this way, the nutritional content of the product is enhanced so that consumers
can enjoy even more health benefits for example, improving digestive health and
contributing to healthy physical growth. R&D also plays an important role in creating
products that have a proven taste advantage plus a specific nutritional advantage over
competitors products. A global system of rigorous product testing includes a scientific
nutritional assessment. Each product has a measurable nutritional value to prove its
superiority in delivering nutritional benefits.
Ensuring quality and food safety
With every bite or sip of a Nestl product, we have to ensure the highest levels of quality and
safety. This happens millions of times a day. Its a heavy responsibility. We have to assure
the highest possible standards all along the supply chain from raw materials via
manufacturing, packaging and distribution, to the point of consumption. Every Nestl factory
has a laboratory that systematically analyses raw materials and ingredients. Nestl products
are checked on the production line and in their finished state to ensure that they meet our
own strict standards, as well as national and international regulations. The quality assurance
laboratories at our Nestl Research Center in Lausanne, Switzerland are constantly
broadening their knowledge and know-how in microbiology, food safety, nutrients, additives,
contaminants and packaging. They share this information with our factories around the
world.
Nestls reputation over many years for consistent quality and safety has earned the respect
of consumers all over the world. Consumers eat and drink more and more out of home.
Nestl offers products for any occasion and any place. World demographics will carry on
changing. Other geographic, economic and social factors will all affect our diets and eating
habits. In this changing world, Nestl will continue to put priority on nutrition, health and
wellness, and apply its science-based research to develop food and beverage products that
improve the quality of living at every stage of life. Its not enough to meet existing consumer
needs. To stay in tune with developments, we have to be ahead of the game, fully aware of
trends, and ready to meet consumer needs that havent yet fully emerged.

SWOT Analysis
Strength
* Fulfill one of our Basic Requirement among Air , Water , Food, Shelter
* Widely accepted in all Generations
* Easily available in various forms
* Provide good Instant Remedy for hunger in the form of readymade food
Preserves the non seasonal food and makes it available all throughout the year
Weakness
* Decreases nutritional value
* Increases the cost of food product
* Industry and technology requires high investment
* Regular usage of processed food can cause alteration in health
Opportunities
* Increase economy of India
* Generate employment opportunity
* Good quality of Goods
* Improve living standard
* Provide goods to nation at cheaper rate
Threats
* Many companies are result oriented
* Increase in pollution
* Sometimes provide poor quality of product for more profit
* Unable to utilize all the resources efficiently

PORTERS FIVE FORCES MODEL

Michael Porter provided a framework that models an industry as being influenced by five
forces,
PORTERS FIVE FORCES ANALYSIS
RIVALRY WITHIN THE INDUSTRY:

Major players dominate the Indian market.

High competition among the players in the industry to capture maximum marketshare.

Unorganized sector cannot compete with major players in the case of Advertising.
ENTRY BARRIERS :
Low entry barriers because of,

Capital intensive manufacturing, advertising and distribution

Heavy competition from major players.

BARGAINING POWER OF SUPPLIERS:

In the case of major players bargaining power of suppliers is very low as

theydictate the prices.

The ingredients are basic commodities such as wheat , sugar etc.46

POWER OF BUYERS:
High because of,

Availability of many biscuits from low, moderate prices

Availability of biscuits from non organized sector

Loyalty of the buyers to biscuits that have brand identity makes them
m o r e powerful in the case of new entries.
THREAT OF SUBSTITUTES:
It is high because ,

Substitute threat is more in the case of biscuits

Growing packaged industry and bread industry

Traditional Indian homemade snacks.47

High level of competition within the industry has lead to innovations in several
areas,thereby raising the overall capability levels in the sector. This will
facilitate sustainedgrowth in the sector and help it to become globally

Define biscuit industry

The Indian biscuits industry is growing at the rate of 13-15 per cent. But it is still
in its nascent stage when compared to the global biscuit industry. The bakery
sector in India is estimated to be worth over 3.2 billion euros (Rs 210 billion), and
is still the cheapest form of ready-to-eat food .The rate of growth is
approximately 13-15 per cent. According to Research and Markets reports, the
bakery/biscuit industry is the third-highest revenue-generator in the processed
food sector. The market size for the industry is pegged at $5.5 billion in 2013,
and is expected to reach $7.6 billion by 2015. The unorganized sector accounts
for about half the total biscuit produced in India, which is estimated at about 1.8
million tonnes. Today, the Indian biscuit industry has an important place in the
country. Biscuits are items of mass consumption, in view of their low prices and
high nutrient values. With rapid growth and changing eating habits of people,
biscuits have gained popularity among the masses. If the urban population shirks

the usage of imported biscuits and start consuming locally made biscuits then
the industry shall make rapid inroads.
India Biscuits Industry came into limelight and started gaining a sound status in
the later part of 20th century when the urbanized society called for ready made
food products at a tenable cost. Biscuits were assumed as sick-man's diet in
earlier days. Now, it has become one of the most loved fast food products for
every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and
reasonable at cost. Maharashtra and West Bengal, the most industrially
developed states, hold the maximum amount of consumption of biscuits.Apart
from Big 3 ( Britannia ,Parle , ITC ) there are around 150 medium to small biscuit
factory in India.
The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a
bright future of India Biscuits Industry. According to FBMI, a steady growth
of 15 percent per annum in the next 10 years will be achieved by the
biscuit industry of India.In terms of volume biscuit production by the
organized segment is estimated at 1.30 million tones. In the organized
sector, the industry is dominated by Britannia and Parle, which account
for 70 per cent of the industry's volumes. The two major organized players
are Britannia and Parle.Parle derives a large portion of its revenues from
low-priced biscuits.
Infact, Britannia's market share in the medium and premium varieties is
significantly higher.Other organized players include domestic players like
Brakemans, Champion, Kwality, Priya and MNCs like SmithKline
Consumer, Sara, Heinz, Excelsia (Nestle) and United Biscuits.The
unorganized sector consists of small bakery units, cottage and household
type manufacturing . Lower overhead cost due to limited local area, family
management, focused product lines and less expenditure on marketing
help the unorganized sector to grow.
The biscuit industry in India witnessed annual growth as below in the last couple of years:

2008-09 - 16%

2009-10 - 14%

2010-11 - 11%

2011-12 - 11%

2012-13 - 09%

2013-14- 15%