Export Management Nesle

HARSH VAGAL TYBA- 3626
RAMNARAIN RUIA AUTONOMOUS COLLEGE
Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019

Class -TYBA Sem- V COMMERCE ASSIGNMENT
PAPER CODE- RUACOM503 EXPORT MANAGEMENT

YEAR- 2020-21
NAME OF THE COMPANY- Nestlé
NAME- HARSH VIVEK VAGAL Roll No-3626
Commerce Assignment for 2021-22
Year:
Class: TYBA
Semester: V
Paper Code: RUACOM503
Paper Title: EXPORT
MANAGEMENT
STUDY OF EXPORT
Topic of Assignment: MANAGEMENT
STRATEGY,
COMPETITON AND
BARIERS OF NESTLE
ROLL NO- 3626 NAME- HARSH VIVEK
VAGAL
Date:
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INDEX
Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019
Class -TYBA Sem- V COMMERCE ASSIGNMENT
NAME OF THE COMPANY- Nestlé
NAME- HARSH VIVEK VAGAL Roll No-3626
SR TITLE PAGE
NO. NO.
1 INTRODUCTION TO THE COMPANY 3
2 PURPOSE, GLOBAL AMBITIONS, VALUES OF 4
NESLE
3 VISION AND MISSION OF NESTLE 4
4 PRODUCT RANGE OF NESLE COMPANY 5
5 COMPETITIVE GLOBAL MARKET 7
ADVANTAGE OF NESTLE
6 EXPORT MARKET ENTRY STRATEGY OF 8
NESTLE
7 HOW NESTLE SWIZERLAND TARGETED 9
INDIA FOR ITS MARKET STAR MAGGIE
8 2015 HEALTH SCANDEL OF NESTLE MAGGIE 10
9 INSIGHTS OF GLOBAL EXPORT SHARE OF 11
NESTLE (2020)
10 GLOBAL AND LOCAL EXPORT STRATEGIES 12
OF NESTLE
11 CURRENT POSITION OF NESTLE INDIA IN 13
MARKET
12 MAJOR COMPETITORS OF NESTLE IN 14
EXPORT MARKET
13 GLOBALLY USED MAJOR STRATEGIES OF 15
NETSLE
14 NETSLE (INDIA) REACTION TO COVID-19 16
(JULY-2021)
15 IMPACT OF COVID ON NETSLE GLOBAL 17
DECLARED ON ITS COMPANY
16 INITATIVES TAKEN BY NESTLE GLOBAL TO 17
TACKE COVID-19 PANDEMIC
17 NESTLE (INIDA) INITATIVES TAKEN TO 19
BATTLE COVID-19
18 FINDINGS OF THE STUDY 19
19 RECOMMENDATIONS TO NESTLE COMPANY 20
20 CONCLUSION TO THE STUDY 21
21 BIBLOGRAPHY 21
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INTRODUCTION TO THE COMPANY
Nestlé India Head Office, Gurgaon, Haryana

NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and large
number of co-packers, Nestlé India is a vibrant Company that provides consumers in India
with products of global standards and is committed to long-term sustainable growth and
shareholder satisfaction. The Company insists on honesty, integrity and fairness in all aspects
of its business and expects the same in its relationships. This has earned it the trust and
respect of every strata of society that it meets and is acknowledged amongst India's 'Most
Respected Companies' and amongst the 'Top Wealth Creators of India'.
The NESTLÉ Corporate Business Principles are at the basis of the Company’s culture,
developed over 150 years, which reflects the ideas of fairness, honesty and long-term
thinking. Nestlé is the world’s largest food and beverage company. There are more than
2000 brands ranging from global icons to local favourites.
Nestle is one of the most respected brand name in the global food and beverage industry. The
company promotes its products in around 130 nations across the globe. Some of its well-
known global brands include Maggi, Nestea, Nescafe, Friskies and Nestle. Apart from its
own products the company owns around 52% of shares of Alcon Inc and about 30 % of the
cosmetic giant, L’Oréal (Hoovers, 2010). Such diverse range of products makes it a leading
brand not only in the world of food and beverages but attempts to elevate it to greater heights.
Nestlé’s relationship with India dates to 1912, when it began trading as The Nestlé Anglo-
Swiss Condensed Milk Company (Export) Limited, importing and selling finished products
in the Indian market. After India’s independence in 1947, the economic policies of the Indian
Government emphasized the need for local production. Nestlé responded to India’s
aspirations by forming a company in India and set up its first factory in 1961 at Moga,
Punjab, where the Government wanted Nestlé to develop the milk economy. Progress in
Moga required the introduction of Nestlé’s Agricultural Services to educate advice and help
the farmer in a variety of aspects. From increasing the milk yield of their cows through
improved dairy farming methods, to irrigation, scientific crop management practices and
helping with the procurement of bank loans. Nestlé set up milk collection centres that would
not only ensure prompt collection and pay fair prices, but also instil amongst the community,
a confidence in the dairy business. Progress involved the creation of prosperity on an on-
going and sustainable basis that has resulted in not just the transformation of Moga into a
prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well.
Nestlé has been a partner in India's growth for over nine decades now and has built a very
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special relationship of trust and commitment with the people of India. The Company's
activities in India have facilitated direct and indirect employment and provides livelihood to
about one million people including farmers, suppliers of packaging materials, services and
other goods. The Company continuously focuses its efforts to better understand the changing
lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health
and Wellness through its product offerings. The culture of innovation and renovation within
the Company and access to the Nestlé Group's proprietary technology/Brands expertise and
the extensive centralized Research and Development facilities gives it a distinct advantage in
these efforts. It helps the Company to create value that can be sustained over the long term by
offering consumers a wide variety of high quality, safe food products at affordable prices.
Nestlé India manufactures products of truly international quality under internationally famous
brand names such as NESCAFÉ, MAGGI, MILKYBAR, MILO, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company has also introduced products of
daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n'
Natural Dahi and NESTLÉ Jeera Raita. Nestlé India is a responsible organization and
facilitates initiatives that help to improve quality of life in the communities where it operates.
PURPOSE, GLOBAL AMBITIONS, VALUES OF NESLE
THE PURPOSE OF NESTLE Nestlé's purpose is enhancing quality of life and contributing
to a healthier future. The company wants to help shape a better and healthier world. They also
want to inspire people to live healthier lives. This is how they contribute to society while
ensuring the long-term success of the company.
GLOBAL AMBITIONS OF NESTLE COMPANY Nestle have defined three overarching
ambitions for 2030 which guide their work and support the achievement of the UN
Sustainable Development Goals.
1. Help 50 million children live healthier lives.
2. Help to improve 30 million livelihoods in communities directly connected to the
business activities.
3. Strive for zero environmental impact in the operations.
VALUES OF NESTLE COMPANY
The values are reflected in the way they do business, always acting legally and honestly with
respect both for their own people and those they do business with.
VISION AND MISSION OF NESTLE
VISION: Nestlé is the world's leading nutrition, health and wellness company. The 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.”
MISSION: To be a leading, competitive, Nutrition, Health and Wellness Company delivering
improved shareholder value by being a preferred corporate citizen, preferred employer,
preferred supplier selling preferred products.
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PRODUCT RANGE OF NESLE COMPANY

MILK PRODUCTS AND NUTRITION RANGE
 NESTLÉ EVERYDAY Dairy Whitener- It is a replacement of milk which is mainly used

for tea.
 NESTLÉ a+ Nourish Milk and a+ Nourish Dahi – A+ Nourish Dahi or curd is a dairy
product that comes packed with goodness of Protein and Calcium. Dahi can help supplement
your daily diet with a good source of quality Protein and Calcium both of which are needed
for growth and maintenance of the body. One serving (200g) of a+ Nourish Dahi provides
5.8g of Protein and 164mg of Calcium.
 NESTLÉ Bhuna Jeera Raita- It is a unique proprietary product from Nestlé, currently
available in Delhi NCR. It offers all the innate goodness of Dahi with real Jeera – a delicious
meal accompaniment which tastes exactly like home-made Raita. It aids in digestion and is
low in Fat (only 1.5% fat).
 NESTLÉ MILKMAID – It is a delicious dessert has been delighting generations of Indian
consumers over the past 100 years. In fact, MILKMAID defined Nestlé’s ‘sweet’ entry into
India –It was the first brand to be traded by the company in India.  NESTLÉ EVERYDAY
Ghee - Nestle Ghee is 100% Shudh [pure] Ghee which is untouched by hand and hygienically
packed.
BEVERAGES
 Nestle Coffee Range- Nestle have introduced a wide range of coffee products which are
Nescafe o Nescafe classic o Nescafe sunrise.
 NESTEA ICED TEA- It is an iced tea which has a flavour of lemon as well.
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 NESCAFÉ CAPPUCCINO- It is instant coffee which just need hot water to get ready.
PREPAIRED DISHES AND COOKING AIDS
 MAGGI 2-MINUTE NOODLES- MAGGI 2-MINUTE Noodles is one of the most popular
brands of instant noodles in India. It is a delicious any-time snack that’s ready in just 2
minutes.
 MAGGI VEGETABLE ATTA NOODLESMAGGI Vegetable Atta Noodles is a unique
innovative product with the goodness of whole wheat and real vegetables available in the
popular Masala flavours.
 MAGGI CUPPA MANIA- MAGGI Cuppa Mania offers you the delicious taste of MAGGI
combined with the convenience of cup noodles It is an ideal offering for the new generation
pressed hard for time trying to juggle multiple roles all at once and can be enjoyed any time
on the go.
 MAGGI SAUCESMAGGI offers a wide range of specialty Indian Sauces which are
relished for their unique taste. Available in the following delightful variants: Tomato
Ketchup, Tomato Sauce, Tomato Chili, Masala Chili, Tamarind and the all-time favorite
MAGGI Hot & Sweet Sauce.
CHOCOLATE AND CONFECTIONERY
 KitKat Dessert Delight

 Nestle Munch Nuts
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 Nestle KitKat Senses

 Nestle Alpino
 Nestle KitKat.
 Barone
 Nestle Classic
 Nestle Milky bar
 Nestle Classic
 Nestle Milky bar Choo.
 Eclairs
 Polo
COMPETITIVE GLOBAL MARKET ADVANTAGE OF NESTLE
Nestle has described themselves as the food, health and wellness company. The Nestle
Nutrition was established with the purpose of strengthening their focal point, i.e. their core
nutrition business. Attaining leadership in this market is one of the primaries aims in their
well-defined corporate strategy. Modern day consumers are more influenced by the claims
that the company make regarding the nutritional contents of their products and the customer
while making his purchase decision makes it his primary motivation. The establishment of
Nestle nutrition as an independent business unit was with the aim to reinforce their
competitive advantage in this area. The unit was given the responsibility of looking after its
operations in the business of health care nutrition, infant nutrition and performance nutrition.
The aim was to confirm a superior performance by providing products which are enriched
with consumer trusted and scientifically approved nutritional components.
The corporate wellness unit has been responsible to integrate nutritional value in their food
and beverages worldwide. Its responsibility includes coordination of horizontal as well as
cross functional activities that properly address existing customer concerns and at the same
time anticipate consumer trends in future. In simple terms the unit is meant for aligning the
research and development expertise of Nestle with customer benefits.
The research and development division are one of its strong footholds, because of which the
company has been able to make its presence felt in the global market. It has its well-built
innovation heritage with a comprehensible visualization of the future (Bauer, n.d.).
The resources required to build up their business are readily available. Nestle has got access
to a pool of experienced suppliers who are aligned with Nestlé’s assurance for innovation and
excellence. Quality is surely one of the competitive advantages that Nestle has. Better quality
products and services at reasonable prices is what Nestle strives for. From the above, it is
apparent that the company operates on product differentiation with preference being given to
better quality. The suppliers, employees, processes, business units and the research and
development divisions have all contributed to make this happen.
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It can be deduced that Nestle has achieved its market leadership on the base of its cost
effectiveness and innovation. Nestle has a well-built economy of scale which helped it to
attain low cost of reduction. Another important factor which contributes to the success of
Nestle is their knowledge about the consumers in the market. To meet the varied customer
needs Nestle prefers to blend their product mix with that of their local ingredients. Nestle has
a well-established transportation system for its distribution network. This helps the company
to transport products in bulk to different factory outlets. Infrastructural development is
another major concern of Nestle. Nestlé has shown such an example in China. In China they
had developed roads to carry out their distribution process smoothly. Mentioned above are
some of the factors which have collectively assisted the company to excel in innovation and
customer services.
EXPORT MARKET ENTRY STRATEGY OF NESTLE
As the markets are getting more competitive as well as flatter, it is very much apparent that
Nestle would be looking towards other new markets from the growth perspective. Successful
implementation of strategies for market development requires more flexibility, ability to
adapt to an unforeseen market conditions and the vision to achieve long term goals. Nestle
has been relied on the foreign direct investment for entering different foreign markets (Rao &
Murthy, 1999). Nestle, being the first mover, tries to enter the emerging markets in an early
stage. Nestle is not generally inclined to go through the expensive process of setting up its
brand name in the prospective markets; rather the company prefers to acquire local
companies which are known in the indigenous market. This helps Nestle to overcome the
cultural hurdles and consumer resentment to the foreign brands. Nestle first used this policy
to start its business with the basic consumer needs like infant food; and after that they
expanded their business in the upscale market segments of chocolate, soft drinks, instant food
and beverage items as per customer needs. The strategy is quite simple but strong. The
strategy is to start from a basics and then only move to the more niches with the rise in
demand. Sometimes they connect their expansion plan with other brands as per the rising
income of the population present there. The company provides some 8500 product brands;
but only around 750 are registered in multiple nations and only about 80 are registered in
over ten distinct countries (Nestle, n.d.). Nestle uses this approach as it is easier to reach the
consumers with local brand names because of their attachment to these local names.
Consequently, the marketing becomes easier in such a situation as the local company has its
own distribution channel, reputation and its own customer base. With due course of time,
Nestle starts the marketing of its own products. In such a situation Nestle can very well
concentrate on enhancement of the product line as well as process innovation.
Nestle must evaluate their basic entry strategy before entering a new country. The company is
supposed to make choices based on the long run profitability of different foreign markets.
The strategy is all about balancing the cost, benefits, innovation and excellence.
Nestle matures by acclimatizing food components and processing technology in local
environment; it is mostly done by employing the appropriate local brand name. For an
instance, in many countries in Europe, nestle introduced few dairy products under the brand
name of ‘Sveltesse’ (Nestle, n.d.).
In Asia, the strategy was mainly to acquire the local companies present there. This is mainly
done with the motive to structure an assembly of independent regional managers since they
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know the local cultures and markets better than the foreign employees. The company’s strong
cash inflow as well as its powerful debt equity ratio gives Nestle with ample power to venture
into acquisition and consolidation.
Nestle has been using a broad strategy for Asian market. The strategy is to produce different
products in distinct countries to be supplied to the entire regional market. For an instance,
nestle produces soya sauce powder in Singapore (Nestle, n.d.), cereals and coffee in
Philippines (Nestle, 2008). All these products are produced to serve the regional market.
HOW NESTLE SWIZERLAND TARGETED INDIA FOR ITS MARKET STAR
MAGGIE
SUCESS RECIPIE OF THE MAGGIE BRAND AND WHY INDIA BECAME CRAZY
BEHIND IT?
Maggi is liquid gold. Maggi is curry-flavoured magic, everyone’s childhood in a bowl. Maggi
is perfect when soupy, perfect sans broth, perfect even straight out of the fridge. What Maggi
is this — a brick of instant noodles that you crack in half over boiling water, then cook with a
flavoured powder that looks like straight-up turmeric and tastes like 2,000 percent of your
daily recommended sodium intake. Maggi 2-Minute Noodle is a phenomenon: In 2014,
according to Fortune, Indians consumed 400,000 tons of it.
Maggi originated in Switzerland, was later acquired by the Swiss-owned Nestlé, and began
import to India in 1983, just 36 years after the country became independent from colonial
British rule. By the early 2000s, Maggi had found a frantic, loyal consumer base in
metropolitan India. It’s unclear what Maggi’s curry flavour is supposed to represent, since no
Indian curry ever tasted bears a passing resemblance: We have to assume it must be that
European-adjacent brand of nuclear yellow curry, heavy on nondescript “curry powder” and
low on any depth of flavour. But Maggi’s appeal lies in its potential for customization, no one
I know eats Maggi as-is. My friends make it with fried garlic, red chile powder sprinkled on
top. My mom cooks hers with cut-up hot dogs. As a kid, I liked mine with peanuts, doused in
ketchup. These doctored dishes are now an indelible memory for a generation of consumers,
nostalgia wielded as a powerful marketing tool.
But in 2015, Maggi was also at the centre of a massive food safety scandal, during which the
noodles allegedly tested positive for high lead content, and the Food Safety and Standards
Authority of India issued a brief, nationwide ban on all Maggi products. Nestlé India has long
maintained the product is safe, and that its own testing at the time “consistently show[ed]
levels in Maggi Noodles to be within permissible limits.” And despite the negative press,
Maggi retains a devoted fan base.
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From Delhi to Mumbai, outside train stations and office buildings, street vendors dish up
ladlesful of Maggi swimming in curry broth. Up from the northeaster state of Sikkim and all
the way down to Pune, college students and young professionals congregate at cafes for chai
and noodles made-to-order, with crispy onions, bright red chile pepper sauce, or a whole fried
egg. Butter chicken Maggi, tandoori Maggi, and paneer chile Maggi are all common
offerings, the noodles fortified with meat, vegetables, and spices drawn from Indian and any
fast-casual restaurants offer some variation of the Maggi samosa, with noodles replacing the
usual potato filling. The Mumbai-local homestead Pure Milk Centre popularized a Maggi
Dosa: a thin, crispy crepe, stuffed with cheese and Maggi noodles. The Mumbai chain
Hungry Head came up with Misal Maggi, a reimagining of the Maharashtrian classic Misal
Pav, with crispy-baked Maggi subbing out the traditional crunchy sev. It also serves a Maggi
bhel, riffing on the classic puffed-rice snack, and an exhaustive menu dedicated to Maggi
noodle mashups.
2015 HEALTH SCANDEL OF NESTLE MAGGIE
In June 2015, the health scandal broke. An inspection by a local food-quality lab found a
sample of Maggi that allegedly contained shockingly high levels of lead, in addition to
containing monosodium glutamate (despite advertising, on its package, that Maggi does not
contain any added MSG). The lead news spread across the country, and one by one, state
governments began issuing bans against the noodles. Media coverage of the scandal was
unforgiving, with news personalities debating the possibility of corruption or interference
from a political party; the supposed threats posed by Western corporations in India; and the
specific vulnerability of India’s children and youth, an important Maggi demographic.
The Food Safety and Standards Authority of India eventually ordered a nationwide recall of
all Maggi products, deeming them “unsafe and hazardous for human consumption.” Nestlé
countered by voluntarily withdrawing the noodles, insisting they were safe but citing “an
environment of confusion for the consumer.” Within a few chaotic weeks, a national ban was
issued, and Maggi was off the menu.
Without Maggi, India’s culinary landscape was left frenzied for alternatives. In August 2015,
Nestlé petitioned the Bombay High Court, which lifted the national ban but demanded further
lab tests. After multiple tests found samples to be compliant with regulations, Maggi was
released back on the market. Fortune estimates that the health scandal cost Nestlé half a
billion dollars, including lost sales and PR damage to the brand; the massive product recall
cost $70 million to implement.
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Nestlé is currently facing a class-action lawsuit worth $90 million in damages over unfair
trade practices and false labelling, which the Supreme Court reopened earlier this month. In a
statement, Nestlé stated it “welcomed” the recent Supreme Court decision, which would
allow a test conducted by the Central Food Technological Research Institute to decide that
suit. According to a Nestlé spokesperson, CFTR lab tests proved the samples to be compliant
with all health regulations: “We have carried out extensive tests of our Maggi Noodles in
India in addition to our regular testing of the finished product and raw materials, confirming
they are safe for consumption.”
Despite media hysteria and clamouring politicians, customer loyalty to Maggi did not wane.
Maggi still holds a majority share of India’s instant-noodle market, and Nestlé has seen a
healthy recovery at the Bombay Stock Exchange since the ban was lifted.
People remember their Maggi experiences, when they were in hostels, or at home, the late-
night hunger. The ads I remember watching on TV featured scouts cooking over a campfire,
teens in a dorm room, a mother sneaking broccoli into her kid’s plate of Maggi.
Nestlé’s comeback strategy makes a calculated appeal to this shared nostalgia. Right after the
national ban was announced, the corporation rolled out an ad campaign featuring a group of
young people waxing poetic about how much they missed Maggi, and later, a rotating cast of
mothers promising that the noodles were safe for children to eat.
INSIGHTS OF GLOBAL EXPORT SHARE OF NESTLE (2020)
Nestlé owns and operates a wide variety of different food and beverage brands. Some of its
most famous and well-known brands are Nestlé Toll House, Gerber, and Nescafé. Most of the
group’s sales are attributed to its powdered and liquid beverage category, followed by
nutrition and health science products. As of 2020, Nestlé was also the sixth leading
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confectionary company in the world.
Nestlé Confectionary
The candy brands KitKat, Smarties, and Aero are just a few of the confectionary brands that
belong to the Nestlé Group. The Nestlé confectionary sector can be broken down into three
categories: chocolate, sugar confectionary, and biscuits. In 2020, the chocolate sector of
Nestle was the largest of these categories, with sales of over five billion Swiss francs in that
year.
Nestle has been able to make its presence felt as the world’s largest food company. Since its
inception it has been able to increase the market share by implementing successful growth
strategies. This indicates that the overall tactical practice of Nestle has been quite effective in
the regional markets they have entered into. In conclusion it can be said that the key reason
behind the company’s success is their amalgamation of customization with globalization. It
would be wrong to say that the country has marked its sign with the help of globalization. For
an example, the company had entered the China market as part of globalization efforts; but it
was a success in that country because of the alignment of products and services with the
consumer demands over. Despite having inferior infrastructure, nestle was able to increase
the production of powdered milk by a large amount. This showed the triumph of their
strategy and flexibility. The reason behind company’s success in expanding into prospective
markets can be attributed to the organizational structure as well as its core corporate strategy.
Two significant reasons behind this success have been its flexible response towards the
environmental change as well as its willingness to learn about the new culture. Despite the
recent downturn Nestle has been able to maintain a continuous growth, even in the new
markets, with the help of skilful market enhancement strategies. This excellent performance
is facilitated by the execution of its unique strategy in building up bonds with customers
through the local employees and managing the entire process using a very distinct approach.
With most of the marketing strategy in its favour Nestle is expected to continue making
profits and increase its market share but it also has to take certain factors like economic,
cultural and into account while pursuing the strategy to ensure an all-around development of
the company.
GLOBAL AND LOCAL EXPORT STRATEGIES OF NESTLE
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Nestle is one of the renowned global organizations. So, it is not surprising that the
international strategy would be at the core of its tactical focus. Nestle is a decentralized
company with the operational responsibilities spread out among the local units. The local
units enjoy autonomy regarding pricing, marketing, distribution etc.
For an example, in Nigeria, nestle has done away with its traditional distribution procedure of
operating from a central warehouse because of Nigeria’s poorly developed road system.
Instead Nestle has constructed several small warehouses around the country. This shows that
the company’s responsiveness to diverse local conditions. Nestle even employs local staffs
for their regional offices as they are better equipped to handle the business procedures and
customers. This in turn helps the organization to respond to the local demand more
effectively and efficiently, resulting in increased market share and profitability for the
company.
The adaptation procedure embraced in China is another example of the company’s focus on
long term goals. After some 13 years of discussion, Nestle was finally invited to China in the
year of 1987 by the government. Nestle started by opening of a powder milk producing farm
in 1990; but soon after that the company realized that transportation infrastructure over there
was inadequate to carry on the process. The infrastructure used to inhibit the accumulation of
milk and delivery of the finished products. Rather than putting up with the existing
infrastructure, nestle planned to build up its own road for the transportation of milk and other
finished products. Farmers used to bring the milk to the centres where it was weighed and
checked for quality. Nestle used to pay the farmers on time. That acted as an incentive for the
farmers and they increased the production of milk. This resulted in an increased number of
cows in the district. After a period, it became the responsibility of the area managers to
organize the delivery of the milk to the factory centres. Although initially the whole
procedure seemed very costly; but Nestle had the vision to see its long-term profitability.
This paved the way for the company’s success in China.
Another example which shows that Nestle inclination to adapt local products is its operation
in Syria. In Syria there is a huge demand for tomato and its related ingredient. The company
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used it to boost their sales. By using local ingredients and concentrating on the local demand,
the company has earned a good rate of return in those regions.
However, this is not the case everywhere. Nestle had faced severe problems in Japan. Failure
to make its coffee brand compatible to the weather condition, forced Nestle to lose its
significant market shares to Coca Cola.
CURRENT POSITION OF NESTLE INDIA IN MARKET
Nestle India gained 4 per cent to Rs 12,397, and surpassed its previous high of Rs12,266,
recorded on August 9, 2019. Since August 5 2019, the stock has outpaced the market by
gaining 8 per cent after the fast-moving consumer goods (FMCG) company delivered strong
volume and mix-led growth in the April-June quarter and announced that its ninth factory in
India would come up in Gujarat. In comparison, the S&P BSE Sensex has remained flat
during the same period. The company had also declared a dividend of Rs 203 per share,
including a special dividend of Rs 180 per share out of the accumulated profits of previous
years. The management said this cash pay-out will reduce the future generation of ‘other
income’ and will improve the overall capital efficiency. Analysts at JP Morgan are
‘overweight’ on Nestle India with June 20 target price of Rs 12,800 per share. The brokerage
firm remains optimistic about Nestlé’s long-term growth potential, given low penetration
levels and the dominance of unorganized players in the Indian processed foods industry. The
brokerage firm has also welcomed the management’s renewed focus on volume/innovation.
MAJOR COMPETITORS OF NESTLE IN EXPORT MARKET.
Nestle is an eminent food and drink company located in Switzerland. The company is one of
the largest food companies in the world. The business operations include producing about
2000 brands where their main products fall into categories of tea, coffee, bottled water,
medical and baby food, breakfast cereals, confectionery products, and lots more. The
company is seen in about 189 countries worldwide. One of the famous products of Nestle is
the Nestle milk chocolate which is a chocolate bar. It is liked by many people and sold in
many countries. The company focuses on the fact to produce and supply great quality and
healthy food products. Nestle has a huge portfolio of products and sees an enormous
competitor across the food industries.
TOP COPETITORS OF NESTLE
1- Hershey’s- Hershey’s, one of the largest chocolate makers in the world, is betting on
India to increase its business in the future. Hershey India is present across multiple
food and beverage categories with its iconic brands.
2- 2- Unilever- Unilever is a British-Dutch company that is formed during the year 1930
and headquartered in the United Kingdom and Netherland. It is a consumer goods
producer company and their products include food and beverage. It is also into the
production of cleaning and personal care products. It is the world’s largest consumer
foods company. Due to its many years of existence, the brand is popular and is a
brand image of the customers which is the main strength of this brand. The company
is also updated with regards to products and has a huge fund in research. Due to its
extensive distribution channel, Unilever is a top Nestle competitor.
3- 3- Amul- A famous Dairy industry of India, Amul is based out in Anand, Gujarat.
The company was formed during the year 1948. The company is also the largest
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producer of ice cream and many other dairy products. Amul follows a three-tier model
in their development process. At the village level, it has a dairy cooperative society, at
the district level, it has the milk union, and finally, at the state level, it has the
federation. The company has established a direct connection among the milk
producers and the consumers to eliminate distributors. The company has multiple
products and its products have a unique taste and are of good quality. Due to their
strong distribution and supply chain, Amul is considered as a top Nestle competitor.
4- 4- Starbucks- A famous American company, Starbucks is a company that was formed
during the year 1971. The company is headquartered in Washington, United States. It
represents the biggest coffee business in the world. The brand’s dark roasted coffee is
famous for the coffee lover. The company has a global network. Due to their huge
business by means of subsidiaries, Starbucks is considered as one of the tops Nestle
competitors.
5- 5- Parle- Parle Products company was founded in 1929 in British India by the
Chauhan family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939.
In India Parle is a very old and trusted brand as mostly Indian families are
emotionally attached with the brand.
6- 6- Cadbury- Cadbury India Ltd is a subsidiary of the Krafts Group. Chocolate
confectionary, Beverages, Biscuits, Gum and Candy are the different categories the
company operates. The operations of Cadbury India initiated in 1948. It has five
manufacturing units all over India. Cadbury India’s one of the most popular brands,
Cadbury Dairy Milk is a benchmark for other chocolates in India and is regarded as
the “gold standard”. Some of the other popular brands are 5 Star, Perk, Bournville,
Celebrations, Halls, Éclairs, Tang and Oreo. The main brand in the Milk Food drinks
segment is Bournvita, which is known as the leading Malted Food Drink (MFD) in
the country.
GLOBALLY USED MAJOR STRATEGIES OF NETSLE
 The Company’s objective is to provide consumers with the best tasting, most
nutritious choices in a wide range of food and beverage categories and eating
occasions and help consumers maintain optimum Nutrition, Health and Wellness.
Nestle Company has access to the extensive global network of Nestlé R&D. This is a
competitive advantage in the rapidly emerging areas of technology and scientific
research and enables your Company to provide safe and nutritious products of very
high quality.
 The ‘Chocolate and Confectionery’ business worked on improving consumer
insights and has been working with Nestlé R&D to innovate and renovate products
that will strengthen its portfolio. The focus was also on portfolio optimization for long
term benefit, though it impacted short term growth. Towards the end of the year it
launched MUNCH NUTS, a new extension of the ever-popular MUNCH.
 Nestlé ‘Start Healthy Stay Healthy’ reached out to the supporting eco system of
mothers to emphasize the importance of their role in continued breastfeeding with the
objective to build greater awareness and advocacy. The key message was
‘Breastfeeding Is Not Just A Mothers Responsibility’. The campaign received 1.9
million views outperforming industry’s benchmark.
15
 During the year Nestle Company enhanced labelling of products with QR codes.
This enables consumers to use their mobile phones to scan the QR code on the label
for information on Nutrition, Environment and Community as relevant to the product.
During the year the Company also created ‘The Design Lab’ to inspire a strategic shift
in packaging design keeping the consumer experience in mind and to achieve
operational excellence with key distribution centres ready to operate in the future with
proper infrastructures, systems, processes and a sound safety.
 The Company has successfully piloted a new demand forecasting system based on
analytics and automated the replenishment to the distribution centres in all factories,
improving accuracy and people productivity. The roll out of the warehouse
management systems (WMS) with Radio Frequency (RF) technology has been
extended to additional factories. During the year the Company focused on further
improving freshness of products ‘on shelf’ for consumers and reduce waste.
 Nestlé’s approach to business is Creating Shared Value or ‘Saanjhapan’ as used by
the Company and it is about the impact of the business and engagement through it.
The Company has been conducting business in a way that both deliver long-term
shareholder value and benefit society under approach of “Creating Shared Value”.
 In 2013 Nestle focused on Nutrition, product development 2014 Renovation and
innovation, market development, product development 2015 Renovation and
innovation, market development, product development Continually development in
supply chain.
THE MAJOR STRATEGY OF NESTLE
I. Fixing underperforming businesses.
II. Constant innovation in products and business model
III. Investments in high growth categories and regions
IV. Embracing digital opportunities
V. Improving operational efficiency
VI. Reducing cost
VII. Freeing up resources
VIII. Creating shared value
IX. Investments in organic growth
NETSLE (INDIA) REACTION TO COVID-19 (JULY-2021)
Nestle India, NSE 0.18 % on 15-07-2021 said the impact of coronavirus pandemic on its
business operations has not been "materially adverse" so far and the company will continue to
evaluate the consequences of the health crisis and subsequent lockdown as the situation
evolves. The company also does not see any "specific challenge in terms of its capital or
financial resources" or any "significant deviation in profitability." Nestle India said in a
regulatory filing. Nestle India, a subsidiary of NESTLE SA of Switzerland, further said it has
"strong cash position" and is in a "comfortable liquidity position" to meet its financial
commitments.
While the impact of COVID-19 on the company's business operations has not been materially
adverse so far, it is extremely difficult to assess its impact on near-term and annual results.
The company continues to evaluate the impact of COVID-19 as the situation evolves," said
Nestle India. It further said it has resumed operations at all its eight plants and distribution
centres/warehouses. The company has resumed operations at all of its manufacturing
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locations and distribution centres/ warehouses and scaling up continues in all areas of
operations while adopting stringent safety practices and following standard operating
procedures for social distancing," it said.
Nestle India continues to witness demand for most of its products and its focus in the
immediately period is to make sure that its products are available to consumers. Commenting
on the impact of COVID-19, Nestle India said it is "extremely difficult" to assess its impact
in the near-term and on annual earnings. Due to the unpredictable and fast changing COVID-
19 situation, it is very difficult to assess the future impact of COVID-19 on business
operations and it is expected to evolve over a period of time," it said.
The company also said that it has a "strong cash position" and has enough liquidity to meet
its financial commitments. "Further, the company does not foresee any challenge in
realising/recovering its assets and thus there shall not be any significant impairment to the
carrying value of its assets," it said. In June 2021 Nestle India, which follows January-
December financial year, had reported 13.54 per cent rise in January-March quarter net profit
at Rs 525.43 crore and 10.84 per cent increase in its net sales at Rs 3,305.78 crore. The
company had witnessed a volume growth and contribution from e-commerce went up
significantly, while out of home sector performance was subdued.
IMPACT OF COVID ON NETSLE GLOBAL DECLARED ON ITS COMPANY
The effect of COVID-19 varied materially by geography, product category and sales channel,
depending on the timing of the outbreak, the scope of restrictions and consumer behaviour:
 Geographies: Most markets, particularly in North America and Europe, saw
significantly increased growth in March, partially supported by consumer stockpiling. China
posted a sharp sales decline, due to movement restrictions in place for almost the full quarter,
limited consumer stockpiling and relatively higher exposure to out-of-home channels.
 Product categories: Essential products saw increased demand. Prepared dishes and
cooking aids, Purina Pet Care, coffee and Nestlé Health Science products reported increased
growth. Confectionery and ice cream posted a sales decline, reflecting reduced gifting and
impulse buying.
 Sales channels: All markets saw a significant shift from out-of-home to in-home
consumption. Out-of-home channels posted negative growth, with significant sales declines
for Nestlé Professional, water and Nespresso boutiques. E-commerce sales grew by 29.4%,
exceeding 10% of total Group sales for the first time.

The financial impact of COVID-19 remains difficult to quantify and will depend on the
duration and the economic consequences of this crisis. Nestlé continues to adapt quickly to
supply chain challenges and changing consumer behaviour. The Group remains resilient
given its diversified portfolio of products and presence across the globe.
INITATIVES TAKEN BY NESTLE GLOBAL TO TACKE COVID-19 PANDEMIC

KEEPING NESLE’S EMPLOYEES HEALTHY, SAFE AND SUPPORTED
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 In addition to Nestle Globle’s normal strict hygiene standards, putting in place

additional safety measures in their factories, offices and distribution centres.
 Encouraging office-based employees to work from home whenever possible.
 Asking employees worldwide not to travel internationally for business purposes.
 Offering generous sick leave arrangements for those who contract the virus.
 Providing cash loans or advances for those in financial distress.
 Paying all hourly and salaried staff affected by temporary stoppages in full for a
minimum of twelve weeks.
 For employees in factories and distribution centres, offering free meals and transport
for staff to help reduce the risk they fall ill.
 Providing parents with the flexibility to manage their family responsibilities and their
role.
HELPING WITH LOCAL RELIEF EFFORTS
 Providing support to medical institutions, food banks, food-delivery organizations and

relief organizations in the frontline of the fight against this pandemic.
 Working closely with physicians to develop a new tailored COVID-19 medical
nutrition treatment protocol.
 Joining the drive to speed up vaccination against COVID-19 and ensure broad,
equitable distribution of vaccines to developing countries.
 Donating to food banks and food delivery organizations to support people in need.
 Providing prompt and pragmatic support to Nestle’s business partners.
 Extending payment terms, suspending rental fees for coffee machines and offering
free products to our customers in the out-of-home and food service sector, as part of
Nestle’s 'Always open for you' initiative.
JOINING FORCES WITH THE INTERNATIONAL FEDERATION OF THE RED

CROSS AND RED CRESCENT SOCIETIES (IFRC)
18
 Donating food, medical nutrition products and bottled water to bring relief to those
most affected by the pandemic.
 Deploying available logistics capacities from our out-of-home business to support the
needs of the IFRC in various countries.
 Donating CHF 10 million for immediate deployment in countries where it is most
needed.
 Matching 1:1 any donations to the Red Cross and Red Crescent National Societies or
Federation made by Nestle’s employees.
NESTLE (INIDA) INITATIVES TAKEN TO BATTLE COVID-19 ENCOMPASS
FIVE AREAS TO WHICH IT COMMITS ENERGY, FOCUS AND RESOURCES.
1) For the Communities: Nestle commit to initially, a sum of INR 15 crores towards feeding
programs for less privileged sections of society through participation with leading and
credible NGOs engaged in this along with distribution of essential groceries to the needy.
They will also support out of the fund, purchase of medical equipment, PPEs as needed, we
have started with a contribution of INR 1 crore to Narayana Hrudayalaya Foundation for
purchase of much needed ventilators for Delhi/NCR. Nestle have already started the process
of donating their brands to local governments to support the needy.
2) From Nestle’s Employees: Nestle employees stand together to support fight against
COVID-19 in this hour of need, and they have an “Employee voluntary contribution
program”, topped up with equivalent contribution from Nestlé India, through which they will
engage with the Indian Red Cross Society to strengthen its efforts and for providing much
needed relief in most impacted areas and people suffering due to the present conditions.
3) For Nestle’s Sales Force: Nestle’s front-line sales force who work for their distribution
partners are the heroes who ensure Nestlé India’s standing in the marketplace and Nestle
India will be looking at rolling-out a “NESTLÉ SURAKSHA” program to cover each one of
them, who is not covered by Employees’ State Insurance, with a COVID-19 insurance
protection for a period of three months. Nestle India want them to be safe and protect them
from any unfortunate COVID-19 related event be fall them. As a measure of their
commitment and trust in them, they have been paid 100% of their Sales Incentive.
4) For Nestle’s Operators: Nestle India’s factory operators are the heroes, who have heeded
a national call to enable production of much needed food and beverage products. They have
taken, strict social distancing measures and other precautionary measures at all our
manufacturing locations, to ensure the health and well-being of their people. To honour this
commitment, nestle have rolled out across all operating factories a “NESTLÉ
SAMMAN” program that will reward each operator for working during the stipulated period.
5) For Nestle’s People: At Nestlé India, the safety, well-being and security of
their PEOPLE has always and will remain paramount in their minds. Each of us has had to
embrace new and very different ways of working in terms of “work from home” and been
subject to stresses, fears and anxieties never experienced. They are cognizant and sensitive to
19
the human and emotional needs of Nestle’s employees and have rolled out numerous
“virtual” engagement programs, training programs, mental health initiatives, check-in”
programs with youngsters who live alone or far from home, free advisory calls with
accredited doctors in India and overseas pertaining to COVID-19.
Nestle India’s response to this crisis is to be sensitive to fellow Indians, their employees,
stakeholders, partners and above all commitment to their consumers to serve them nutritious
and essential brands as they stay safe and secure in their homes. A company like Nestlé finds
its calling and renews its purpose at such times and they are proud to be doing the best they
can.
FINDINGS OF THE STUDY
1- Nestle company is a very known company in India. It was started in 1866 by
“Henri Nestle” from Switzerland then in 1905 it was merged with Anglo-Swiss and
company named as Nestle Group.
2- Nestle came to India as Nestle India in 1961 and setup its first factory at Moga,
Punjab where the government wanted to develop the milk economy.
3- Nestle is the world’s largest food and beverage company which has more than
2000 brands and present in 191 countries across the world.
4- In India Nestle have its 8 manufacturing facilities and 4 branch offices with
headquarter in Vevey, Switzerland.
5- Nestle is also working with social ambitions like helping children and people to
live a better life and to protect the environment.
6- Nestle have a wide range of products available in India including milk products,
beverages, prepared dishes and cooking aids, and chocolates.
7- The organization structure of the company is divided into different hierarchy which
includes top, middle and lower-level management.
8- To survive and its top position in India Nestle company must deal with a lot of
competition and its major competitors are Hershey’s, Unilever, Amul, Cadbury,
Starbucks etc.
9- To deal with the competition Nestle Company also must make strategies like
providing the best tasting food with nutrition, wellness and health.
10- Nestle also try to gain advantage and market share with its chocolates segment by
constantly introducing something new.
11- Nestle operates 447 production units, serving in 194 countries and hired almost
339000 employees.
12- Nestle have a very good research and development capability which help the
company to gain the competitive advantage.
13- Nestle also have some brands for which it faces very less competition due to
which its profit increases.
14- As Nestle operates worldwide so it also has to make sure to know and follow rules
and laws of different companies properly.
15- As the food and beverages industry is constantly increasing Nestle will have to
face a lot of competition in the coming time.
16- Nestle also had to face a lot of criticism due to high water usage and unfair
practices.
17- In 2018 the net profit of the Nestlé Group rose to 10.14 billion CHF from about
7.16 billion CHF in the previous year.
RECOMMENDATIONS TO NESTLE COMPANY

1- Nestle should work on its segmenting technique to gain more customers.
20
2- Nestle should launch some of its brand in India which are available in foreign countries.
3- As many people are getting diet conscious now-a-days nestle should increase its focus on
that segment.
4- As Nestle have brand which provide nutrition to children Nestle should also focus on
launching such kinds of products and brand for adults and old aged people.
5- Nestle can also focus on mothers as its one of the big segments is infants.
6- Nestle should carry on with their partnership activities that will increase its competitive
advantage.
7- Nestle should also invest in new industries as it’s an established brand it will automatically
get the attention from its old customers.
8- Nestle can also work on its innovations in advertising and marketing of its products.
9- Nestle should also put more efforts in tea and coffee segments as this segment have a lot
of scope of growth.
CONCLUSION TO THE STUDY

Nestle has been able to make its presence felt as the world’s largest food company. Since its
inception it has been able to increase the market share by implementing successful growth
strategies. This indicates that the overall tactical practice of Nestle has been quite effective in
the regional markets they have entered. In conclusion it can be said that the key reason
behind the company’s success is their ambulation of customization with globalization. It
would be wrong to say that the country has marked its sign with the help of globalization. For
an example, the company had entered the China market as part of globalization efforts; but it
was a success in that country because of the alignment of products and services with the
consumer demands over. Despite having inferior infrastructure, nestle was able to increase
the production of powdered milk by a large amount. This showed the triumph of their
strategy and flexibility. The reason behind company’s success in expanding into prospective
markets can be attributed to the organizational structure as well as its core corporate strategy.
Two significant reasons behind this success have been its flexible response towards the
environmental change as well as its willingness to learn about the new culture. Despite the
recent downturn Nestle has been able to maintain a continuous growth, even in the new
markets, with the help of skilful market enhancement strategies. This excellent performance
is facilitated by the execution of its unique strategy in building up bonds with customers
through the local employees and managing the entire process using a very distinct approach.
With most of the marketing strategy in its favour Nestle is expected to continue making
profits and increase its market share but it also has to take certain factors like economic,
cultural and into account while pursuing the strategy to ensure an all-around development of
the company.
BIBLOGRAPHY
https://gulfnews.com/business/markets/nestle-sees-food-price-pressure-easing-1.1059950
https://www.nestle-mena.com/en/media/pressreleases/allpressreleases/three-month-sales-2020
https://www.thehindu.com/business/Industry/covid-19-impact-on-business-not-materially-adverse-so-far-nestle-
india/article31745919.ece
https://www.spglobal.com/marketintelligence/en/news-insights/trending/otCMAX2_reZ7BQLUx_uXsw2
21
https://www.slideshare.net/ravindrocks/nestle-11400375
https://www.ukessays.com/essays/management/supply-chain-management-of-nestle-management-essay.php
22

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HARSH VAGAL TYBA- 3626

RAMNARAIN RUIA AUTONOMOUS COLLEGE

Ramnarain Ruia Autonomous College, Matunga, Mumbai 400019

PAPER CODE- RUACOM503 EXPORT MANAGEMENT

INTRODUCTION TO THE COMPANY

Nestlé India Head Office, Gurgaon, Haryana

PRODUCT RANGE OF NESLE COMPANY

 NESTLÉ EVERYDAY Dairy Whitener- It is a replacement of milk which is mainly used

 KitKat Dessert Delight

 Nestle KitKat Senses

confectionary company in the world.

INITATIVES TAKEN BY NESTLE GLOBAL TO TACKE COVID-19 PANDEMIC

 In addition to Nestle Globle’s normal strict hygiene standards, putting in place

HELPING WITH LOCAL RELIEF EFFORTS

 Providing support to medical institutions, food banks, food-delivery organizations and

JOINING FORCES WITH THE INTERNATIONAL FEDERATION OF THE RED

RECOMMENDATIONS TO NESTLE COMPANY

CONCLUSION TO THE STUDY

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