A Report on

Nestle Company

Submitted

In the partial ulfilment of the Degree of Master

of Business Administration Semester-2

By:

Maharshi Gosai (23044311030)

Dhrumil Modi (23044311062)

Under the Guidance of

Dr. Mihir Shah

Assistant Professor

Ganpat University – V. M. Patel Institute of Management

Submitted to:

February 2024
 CERTIFICATE BY THE GUIDE

This is to certify that the contents of this report entitled “Nestle Company” by Maharshi
Gosai(23044311054), Dhrumil Modi (23044311051) submitted to Ganpat University- V. M.
Patel Institute of Management for the Award of Master of Business Administration (MBA Sem
II) is original research work carried out by him/her/them under my supervision.

This report has not been submitted either partly or fully to any other University or Institute for
award of any degree or diploma

Name Enrollment Number

Maharshi Gosai (23044311030)

Dhrumil Modi (23044311062)

Dr. Mihir Shah

Assistant Professor
Ganpat University – V. M. Patel Institute of Management

Date:
Place:

Page | 2
 CANDIDATE’S STATEMENT

We hereby declare that the work incorporated in this report entitled “Nestle Company” in partial
fulfillment of the requirements for the award of Master of Business Administration (Semester –
II) is the outcome of original study undertaken by us and it has not been submitted earlier to any
other University or Institution for the award of any Degree or Diploma.

Name Enrollment No. Sign

Maharshi Gosai (23044311030)

Dhrumil Modi (23044311062)

Date:

Place:

Page | 3
 PREFACE

Management Project Report is probably one of the most creative and challenging activities
enjoyed by the students of M.B.A. Throughout the activity there are many opportunities to study
various knowledgeable things. This activity clearly involves creativity.

It is a matter of great pleasure that we have undertaken a writing report as M.B.A. students of V.
M. Patel Institute of Management, Ganpat University. It is a challenging career, which requires
an adept and practical knowledge of business affairs and accounts.

Our management “Nestle Company” We tried to cover all the aspects of the topic. Being the
management students, it has been a valuable responsibility of performing small practical project.

The principle concern of this project is to reveal our learning of practical business scenario. In
writing this project we have drawn vast amount of information from various senior people and
simultaneously supplemented by various other people, annual reports, letters, journals, etc

. Here, we are presenting a project on the different concept that we have saw, fill and experience,
while the work on project report. We have tried our best to do the proper justification with our
work in this project.

Page | 4
G19 NESTLE 3IIA03MMA

ACKNOWLEDGEMENT

This project work would not have been a reality without the timely and involved
support of institution and several individuals. Every mature person in professional life
is keenly aware of his/her sense of indebtedness to many people, who have motivated
and influenced his/her intellectual development ordinarily. This feeling is formally
expressed in gestures of acknowledgement.

We are great thankful to Dr. Hiren J. Patel, Head (I/C), Ganpat University- V. M. Patel
Institute of Management.

We are thankful to Dr. Mihir Shah, Assistant Professor, Ganpat University- V. M.

Patel institute of Management, without his guidance and support our project work
cannot possible.

We are also thankful for the facility of Computer laboratory and Library of our
Institute where we got all the resources which proved helpful for making this project.
We wish to thank the whole teaching and non-teaching staff of institute for their
continuous support.

We also want to say thanks to our colleges who supported us and college to introduce
such good practice of making project report on various emerging topics as an integral
part of M.B.A. program.

And of course, we would be nowhere and nothing without the love and support of our
families. Our parents are a big inspiration and encouragement throughout the
education and allowing us to carry out this project being away from our homes.

P a g e 5 | 36
G19 NESTLE 3IIA03MMA

INDEX
SR.NO PARTICULAR PAGE
NO
1 INTRODUCTION 07
2 OVERVIEW OF THE MARKET 15
AND CHANGE TRACKING IN THE
MARKET
3 WORLD MARKET AND 16
MARKET SHARE
4 INDIAN MARKET AND MARKET 19
SHARE
5 COMPETITIVE SCENARIO 20
INCLUDINGFIVE FORCES MODEL

6 NESTLE PRODUCT LIFE CYCLE 22

7 SWOT ANALYSIS 23
8 THE NESTLE BCG MATRIX 25
9 MARKET SEGMENTATION OF 27
NESTLE
10 BRAND PERCEPTUALMAP 30
11 MARKETING MIX 31
12 EMERGING PLAYER IN THE 33
CATEGORY AND FUTURE
COMPETITION4

13 ANY SPECIFIC OBSERVATION AND LATEST 34

IN THAT
CATAGORY

14 CONCIUSION 35

P a g e 6 | 36
G19 NESTLE 3IIA03MMA

1. Introduction

Henri Nestlé established the world's largest food and beverage corporation, Nestlé, in 1866.
At the end of 2005, sales totaled CHF 91 billion, and net profit was CHF 8 billion. Nestle
employs about 250,000 individuals from over 70 nations, and the company has businesses or
factories in nearly every nation on earth.
The company's history started in Switzerland in 1867 when pharmacist Henri Nestlé
introduced his kid-friendly nutritional gruel, Farine Lactée Nestlé. Henri incorporated his
surname, which translates to "little nest," into the name of the business and the emblem. The
nest, a symbol of safety, love, and sustenance, continues to be important to Nestlé's brand
image.
Nestlé has become the world's largest food company since its founding more than 130 years
ago thanks to its success in developing new products and expanding through acquisitions.
The Nestlé family has expanded over the years to include chocolates, mineral water, frozen
goods, yoghurts, soups, coffee, cereals, and other food items. Nestlé started diversifying its
product line in the 1970s and has since included pet foods, pharmaceuticals, and cosmetics.
These days, Nestlé sells a wide range of goods that are all united by the excellent quality for
which Nestlé has gained international recognition. A number of core values serve as the
company's compass. Nestlé's current product lines expand through innovation and
modernization, all the while balancing geographic activity and product offerings. One never
gives up long-term potential for immediate results. Providing the greatest and most pertinent
products to individuals at all times, no matter where they are or what their needs are, is the
company's top goal. Nestlé's taste in every nation where its goods are sold.
That is not to suggest that every business that is in operation has free reign. Vevey
headquarters establishes the overarching plan and makes sure it is implemented. 'Centralize
what you must, decentralize what you can' is the best way to describe this strategy.

P a g e 7 | 36
G19 NESTLE 3IIA03MMA

1.1 HISTORY OF NESTLE

In 1866, Nestle commenced operations as a global corporation. Since then, they have given
their clients their all, and the history of Nestlé is provided below.

1866 -1918
In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his mother's milk
or any of the usual substitutes. People quickly recognized the value of the new product,
after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was
being sold in much of Europe. In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk
Company. By the early1900s, the company was operating factories in the United States,
Britain, Germany and Spain. World War I created new demand for dairy products in the form
of government contracts. By the end of the war, Nestlé's production had more than doubled.
1918 -1944
After the war Government contracts dried up and consumers switched back to fresh milk.
However, Nestlé's management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the
Company's second most important activity
Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in1938
to $6 million in 1939. Factories were established in developing countries, particularly Latin
America.
1944-1975

P a g e 8 | 36
G19 NESTLE 3IIA03MMA

For Nestlé, a dynamic phase began with the end of World War II. Growth quickened, and
businesses were bought out. The merger with Maggi seasonings and soups occurred in1947.
In 1960, Crosse & Blackwell, Findus (1963), Libby's (1971), and Stouffer's (1973) followed.
Purchasing stock in L'Oréal in 1974 brought about diversification.
1975-1981
Nestlé's expansion in developing nations helped to somewhat offset the company's traditional
markets' downturn. Nestlé acquired Alcon Laboratories Inc. to launch its second business
venture outside of the food sector.
1981-1996
Nestlé sold off a lot of companies between 1980 and 1984. Nestlé's increased profitability in
1984 enabled the company to begin a new wave of acquisitions, the most significant of which
was the acquisition of American food behemoth Carnation.
1996 Onwards
Nestlé benefited from the dismantling of trade barriers and the development of global
markets into more or less integrated trading zones throughout the first half of the 1990s.
Acquisitions made since 1996 include Spillers Pet foods (1998), San Pellegrino (1997), and
Ralph Purina (2002).

P a g e 9 | 36
G19 NESTLE 3IIA03MMA

Brands & Products of Nestle:-

1. Coffee

Product name Nescafe Gold

Product type Soluble Powered

Coffee

Owner Nestlé Global

Introduced 1938

Headquarters Vevey, Switzerland

2. Maggie

Curry Masala Maggi Hot Chili Garlic

Product type Maggi ,Egg Maggi
Cheese Maggi
Owner Nestlé Global

P a g e 10 | 36
G19 NESTLE 3IIA03MMA

Introduced 1983
Headquarters Switzerland

3. Kitkat

Product name KitKat

Classic finger to chunki, original to
Product type
peanut butter

Owner Nestlé Global

Introduced 1936

Headquarters York, United Kingdom

4. Milo

Product name Milo

P a g e 11 | 36
G19 NESTLE 3IIA03MMA

Product type Malted dairy milk

Owner Nestlé Global

Introduced 1934
Headquarters Vevey, Switzerland

5. Cailler

Product name Cailler

Product type Swiss chocolate

Owner Nestlé Global

Introduced 1819

Headquarters Broc, Switzerland

6. Petcare

P a g e 12 | 36
G19 NESTLE 3IIA03MMA

Product name Purina

Product type Dog food

Owner Nestlé Global

Introduced 2001

Headquarters St Louis, Missouri

7. Carnation

Product name Carnation

Cakes, pies, milk shakes,

Product type
smoothies
Owner Nestlé Global

Introduced 1899

Headquarters Washington

P a g e 13 | 36
G19 NESTLE 3IIA03MMA

8. Buitoni

Product name Buitoni

Product type Pasta and Sauces

Owner Nestlé Global

Introduced 1827
Sansepolcro , Toscana,
Headquarters
Italy

P a g e 14 | 36
G19 NESTLE 3IIA03MMA

2. OVERVIEW OF THE MARKET AND CHANGE TRACKING IN

THE MARKET
Nestlé SA (Nestlé) is a food and beverage manufacturer and marketer that distributes
its goods under recognizable brand names all over the world. Among the products
offered by the company are infant meals, cereals, and chocolates and confections.
Nestlé Ice Cream, Aero, Alpo, and Milkybar are a few of its well-known brands.
Nestlé is a prominent participant in the domains of environmental social governance
(ESG), e-commerce, social media, and supply chain management, bolstered by a
range of strategies and initiatives.
Asia is expected to experience medium to high growth in all of the industries in
which Nestlé is involved between 2022 and 2027. This is as a result of the
company's deliberate investments in Asia to expand its operations in several of its
biggest regions. Key conclusions from a market study and brand diversification by
industry and geography are presented in the Nestlé SA corporate analysis report.

Key Industries
 Baby Care
 Pet Care
 Non – Alchoholic Beverages
 Food
 Consumer Health
Leading Regions
 North America
 Latin America
 West Europe
 East Europe
 Asia
 Middle East and North Africa
 Africa
 Australia

P a g e 15 | 36
G19 NESTLE 3IIA03MMA

3. World Market and Market Share

Ensured by net sales, the Swiss company Nestlé S.A. is the world’s largest fast-moving
consumer goods company. The company is headquartered in Vevey, Switzerland, and
employs approximately 275,000 people worldwide. As a globally operating company,
Nestlé serves a large variety of consumer markets. With a 34.9 percent regional share of
worldwide sales, most of the revenue stems from the North America (NA), followed by
Europe (EUR), Asia, Oceania, and Africa (AOA).
Zone North America
Organic growth was 11.6%, with pricing of 12.4%. RIG was -0.8%, with a strong recovery
versus the fourth quarter of 2022. Net divestitures reduced sales by 2.3%, as a result of the
divestment of a majority stake in Fresh as well as the disposal of the Gerber Good Start infant
formula brand. Reported sales in Zone North America increased by 8.9% to CHF 6.3 billion.
Zone North America saw broad-based growth across brands and categories, driven by pricing,
strong operational execution and continued momentum in e- commerce. The Zone saw
market share gains in pet food, frozen meals and soluble coffee.
By product category, Purina PetCare was the largest growth contributor, with broad-based
demand across channels, particularly e-commerce. Purina ONE, Purina Pro Plan and Friskies
all saw strong double-digit growth. Sales for Nestlé Professional and Starbucks out-of-home
solutions grew at a strong double-digit rate, supported by distribution expansion. The
beverages category, including Coffee mate, Nescafé and Starbucks products, posted high
single-digit growth. Gerber baby food reported double-digit growth and gained market share,
with particular strength for healthy snacking products. Confectionery in Canada recorded
double-digit growth, led by KitKat.
Zone Europe
9.7% organic growth: -1.0% RIG; 10.7% pricing. Organic growth was 9.7%, with pricing of
10.7%. RIG was -1.0%. Foreign exchange negatively impacted sales by 5.4%, reflecting the
appreciation of the Swiss franc against the Euro. Reported sales in Zone Europe increased by
5.4% to CHF 4.9 billion.
Growth in Zone Europe was supported by pricing, sustained e-commerce momentum and a
strong sales development for out-of-home channels. The Zone saw market share gains in pet
food, confectionery and Infant Nutrition. Confectionery reported double-digit growth, with
strong demand for KitKat and seasonal products. Sales in Nestlé Professional grew at a
double-digit rate, supported by branded coffee solutions. Coffee saw high single-digit growth,
P a g e 16 | 36
G19 NESTLE 3IIA03MMA

supported by Nescafé and Starbucks products. Nescafé Farmers Origins, a range of coffee
capsules for Nespresso machines, saw strong growth and is now sold in seven markets.
Culinary reported low single-digit growth, with particular strength for Maggi.

Zone Asia, Oceania and Africa (AOA)

10.4% organic growth: 1.3% RIG; 9.1% pricing. Organic growth reached 10.4%, with pricing
of 9.1%. RIG was resilient at 1.3%. Foreign exchange reduced sales by 9.2%. Reported sales
in Zone AOA increased by 1.1% to CHF 4.7 billion.
Growth in Zone AOA was driven by pricing, improved mix and continued momentum of out-
of-home channels. The Zone saw market share gains in culinary, coffee and ice cream.
South-East Asia posted mid single-digit growth, with strong sales developments in Nescafé
and Maggi. Sales in Middle East and Africa grew at a double-digit rate, led by Maggi, NAN
and Nescafé. Japan reported mid single- digit growth, driven by coffee, confectionery and
Purina PetCare. Sales in South Korea grew at a double-digit rate, fueled by Starbucks
products and KitKat. Oceania recorded double-digit growth, supported by Purina PetCare,
Nescafé and KitKat.
Coffee saw high single-digit growth, with continued robust demand for Nescafé and
Starbucks products. Confectionery reported double-digit growth, fueled by strong momentum
for KitKat. Cocoa and malt beverages posted mid single-digit growth, with a solid sales
development for Milo ready-to-drink products.
Zone Latin America
12.8% organic growth: -0.6% RIG; 13.4% pricing. Organic growth was 12.8%, with pricingof
13.4% and RIG of -0.6%. Foreign exchange had a negative impact of 0.6%. Net acquisitions
increased sales by 0.2%. Reported sales in Zone Latin America increased by 12.5% to CHF
3.0 billion.
Zone Latin America recorded sustained broad-based growth, supported by pricing, strong
operational execution and continued momentum of out-of-home channels. The Zone saw
market share gains in Infant Nutrition, pet food and portioned coffee.
By product category, confectionery was the largest growth contributor, with strong
momentum for KitKat and seasonal products. Coffee saw high single-digit growth, supported
by Nescafé. Sales in cocoa and malt beverages grew at a double-digit rate, led by Nescau.
Purina PetCare reported mid single-digit growth, following a high base of comparison in
2022.
Zone Greater China

P a g e 17 | 36
G19 NESTLE 3IIA03MMA

3.1% organic growth: -0.8% RIG; 3.9% pricing. Organic growth was 3.1%, with pricing of
3.9%. RIG was -0.8%, partly impacted by the timing of Chinese New Year. Foreign exchange
had a negative impact of 6.8%. Reported sales in Zone Greater China decreased by 3.7% to
CHF 1.3 billion.
Growth in Zone Greater China was supported by strong operational execution, e-commerce
momentum and continued innovation. The Zone saw market share gains in confectionery, pet
food and ice cream.
By product category, Infant Nutrition was the largest growth contributor, led by NAN
specialty offerings and illuma. Nestlé Professional saw mid single-digit growth, supported by
innovation and distribution expansion. Purina Pet Care recorded double-digit growth, driven
by Purina Pro Plan dry cat and veterinary products. Coffee saw a sales decrease, as a positive
sales development in soluble coffee was offset by negative growth for ready-to-drink coffee.

P a g e 18 | 36
G19 NESTLE 3IIA03MMA

4. Indian Market and Market Share

Nestle India's share price as of Friday, February 16, 2024, is ₹2,467.30, ₹24,182.70 below
the 52-week high of ₹26,650 and ₹58.20 above the 52-week low of ₹2,409.10.
52- WEEK HIGH LOW
 ₹26,650 is Nestle India's 52-week high. On Friday, December 29, 2023.
 52-Week Nestle India The low, ₹2,409.10, happened on Friday, February 09, 2024.
ALL TIME HIGH
 On Tuesday, Jan. 02, 2024, Nestle India shares reached their highest price ever, which
stands at ₹27,693.
 On Monday, January 1, 2024, at ₹27,372.40, Nestle India shares posted their highest
closing price to date.
In 1990, the price of Nestle India shares was ₹64.67. By the end of 2024, your investment of
₹10,000 in Nestle India Shares in 1990 would have increased to
₹3.82 Lakh, a 34-year growth. With an 11.3% compound annual growth rate (CAGR) from
1990 to 2024, this shows a positive return of 3715.2%.

P a g e 19 | 36
G19 NESTLE 3IIA03MMA

 In the past ten years, the share price has ranged from ₹2,409.10 to ₹27,693.
 In 2014, the price of Nestle India shares was ₹6,282.89.
 Its share price fell to ₹2,467.30 by 2024.
 Over the last ten years, it provided a negative return of more than -61% with
a CAGR of -9%.
 In 2014, if you had invested ₹10,000 in Nestle India, your investment would
have decreased to ₹3,927 by 2024 after ten years.

5. Competitive Scenario Including Five Forces Model

The competitive environment facing the company and the variables influencing its industry
are both covered by Nestle's Porter's Five Forces analysis. The research centers on gauging
the company's standing in relation to factors like the threat of substitutes, the threat of new
competitors, buyer and supplier bargaining power, and competitive rivalry. The Nestle Porter
Five Forces Analysis will now begin:
Threat of New Entrants:
The following factors can be used to explain the Nestle Porter Five Forces Analysis's threat of
new entrants: As consumer preferences change over time, new brands that address certain
needs are introduced on a regular basis, which facilitates the achievement of product
differentiation. It is challenging to break into this market due to the comparatively huge
capital expenditures needed to produce, package, and deliver goods on a wide scale. At first,
it is difficult to achieve good unit economics due to the large economies of scale.
Threat of Substitutes:

P a g e 20 | 36
G19 NESTLE 3IIA03MMA

The following are the risks posed by competing goods according to Porter's Five Forces study
of Nestle: Growing rates of obesity and a pressing need to appear well have caused
consumers to place more emphasis on eating. Customers are now reconsidering their
purchases due to culinary trends that favor whole, natural foods over processed goods and
environmental action against plastic packaging.
Bargaining Power of Customers:
The customers' bargaining power is explained as follows in the Nestle Porter Five
Forces Analysis: Nestle distributes its goods via a range of physical stores and retailer.
Salespeople, distributors, wholesalers, retailers, and carriage and forward agencies are all
involved.
When the quantity of items consumed by each consumer is taken into account, individual
consumers have minimal influence If retail chains that handle higher quantities are unhappy
with their profits, they may switch to the products of their rivals. But, if Nestle's products are
in high demand, the chains' profits will suffer if they are not carried on their shelves.
Bargaining Power of Suppliers:
The suppliers' negotiating strength in Nestle Porter's Five force analysis is follow Nestle
relies on around 16,000 suppliers globally, and all of them are required to adhere to Nestle
responsible sourcing guidelines. Nestle is a perfect client for these businesses since it is a big
buyer and can bargain for advantageous terms in the event that there is a mismatch in
interests or disagreements with one supplier, it is simple and inexpensive to obtain items from
another. This stops any supplier from abusing their position of authority.
However, locating compliant suppliers and routinely validating them becomes more
expensive due to the growing popularity of culinary trends that demand responsibility and
transparency at every stage of the supply chain. Reputable vendors with specialized
merchandise, such as 100% organic.
Competitive Rivalry:
According to the Nestle Porter Five Forces Analysis, the following rivals have an
impact on Nestle: Nestle is the top FMCG company in the world with $93,610 million in
sales worldwide. The remaining four members of the top 5 are P&G, PepsiCo, Unilever, and
JBS.
The three Nestle product categories with the highest sales share are drinks, pet care, and
nutrition. In these categories, there is fierce competition and no obvious market leader. The
aggressive pricing techniques used have resulted in low margins per unit as well. Customers
are also able to interchange brands at no extra expense.

P a g e 21 | 36
G19 NESTLE 3IIA03MMA

6. Nestle Product Life Cycle

Introduction
The corporation has launched a number of products in the market, despite the fact that it did
so quite quickly. Nestle Fruita, Nestle Fitness, Nestle Milo cereals, Nestle iced and coffee
Growth
There are a lot of products at this level, and some of them are. Nestle Crunch, Nestle Coco
and Crush Cereals.
Maturity
A significant number of the company's goods, including Cerelac, Corn Flakes, Nescafe,
Nestle Pure Life, Nestle Nido, Nestle Every day, Nestle Fruita Vitals, Nestle Noodles, and
many others, are at an immature stage.
Decline
In a situation when a well-known corporation in the industry also has a large number of items
that were introduced to the market but were unable to thrive and quickly went into decline,
P a g e 22 | 36
G19 NESTLE 3IIA03MMA

along with some of its products going into decline from both the growth and maturity stages.
such as yogurt, Nestle Ombrella, Nestlebiotherm.

7. SWOT Analysis

P a g e 23 | 36
G19 NESTLE 3IIA03MMA

Strengths
 Nestle is one of the most important food and beverage corporations in the world, with
a solid presence in more than 186 countries and a lengthy history.
 A wide variety of products are available, featuring the most recognizable and
well-liked brands. Its subsidiaries possess an edge over rivals. Consumer have used
Nestle products for many generations and are familiar with them.
 The nation has considerable financial capacity, as seen by its natural growth rate of
3.6 percent in 2020—the highest in the previous five years.
 Nestle has established strong working partnerships with reputable suppliers and
retailers in a number of nations.
 The strong research and development division is dedicated to creating products that
safeguard the environment. A total of 293 factories have become pollution-free. In
addition, the environmental protection policy states that for every tonne of
commodities produced in 2018, greenhouse gas emissions will be reduced by 2.6%.
 Strong marketing department.

Weakness
 Certain items have issues with their manufacturing and advertising reputations. For
instance, a California corporation is allegedly using illegal water and harboring anti-
union prejudice, some infant milk powder in China has excessive amounts of arsenic,
and some suppliers from underdeveloped nations use child labor.
 Heavily reliant on advertising to market their goods and keep up with rivals, which
results in high marketing expenses
 In the past, mislabelling products has caused consumers to lose faith in Nestle's
offerings and resulted in the company losing significant market shares, including
those in China and India.
 Absence of recognition as an ethical and sustainable enterprise.

Opportunity
 E-commerce sales grew at an 18.5% annual rate in 2019 and made up 8.5% of total
sales due to the growth of digital media.
 Zones Asia, Oceania, and Sub-Saharan Africa contain a lot of developing economies
and a lot of promise, albeit having the lowest overall turnover. Nestle can win back
people's trust and expand its market share in AOA nations.
 In order to support Nestle's new image and contribute to environmental sustainability,
establish partnerships with important ecological businesses like NGO Protection
International.
 Bolster ties with merchants to encourage a healthier diet.
 Social and environmental consciousness are new trends.

P a g e 24 | 36
G19 NESTLE 3IIA03MMA

Threats
 Due to the new healthy lifestyle, people are becoming more conscious of product
composition, which could hurt Nestle's sales as most goods contain artificial
additives.
 A lot of retailers are manufacturing their own goods. In terms of pricing and retailer
strategic positioning, Nestle has new competitors.
 People are spending less time at home as a result of their altered work patterns, which
suggests that there is less time for the demand for particular Nestle products.
 Growing costs for basic supplies, such coffee beans.
 Consumer preference is shifting away from brands and toward price. Due to intense
competition, certain Nestle goods have become less popular in recent years,
especially dairy items.

8. The Nestle BCG Matrix

Nestle is a multinational food and beverage corporation. undoubtedly the ideal company for
the majority of B- school graduates. It can be found in around 187 nations. Think about all
the different market niches and approaches it may cover. To understand Nestlé's practices, we
must first understand how its BCG matrix functions.
They have a wide range of brands and products to cater to their extremely varied customer
base. It is still in the lead in most international markets in spite of this.
Nestle BCG Matrix consists of the question mark, dogs, stars, and cash cows. We'll look at
Nestlé’s high growth products, low growth products, revenue-generating items, and potential
low growth products.

P a g e 25 | 36
G19 NESTLE 3IIA03MMA

Dogs
 These are products with a tiny market share or room to grow. Consider the case of
Milo. Milo, a chocolate and malt powder for milk and water, was first created by
Nestle. Nonetheless, the product was positioned in the dog quadrant of Nestle's BCG
Matrix and had minimal impact on the company's operations.
Stars

P a g e 26 | 36
G19 NESTLE 3IIA03MMA

 These are well-known products or brands with enormous return on investment

potential. Nestlé's BCG matrix places its mineral water and Nescafe coffee in the star
quadrant.
Cash cows
 These are well-established and consistently profitable, but there aren't many
opportunities for growth. With a market share of 80–85%, Maggi Noodles enjoys
strong customer loyalty and a stable position in the market.
Question marks
 These goods are ambiguous. They are referred to as "problem children" and have the
potential to either become dogs or celebrities. Chocolates & confectionery is another
business unit in the Question Mark quadrant of Nestle's BCG Matrix.

9. Market Segmentation & Positioning of Nestle

9.1. Market Segmentation :-

A collection of people with similar intentions toward a certain brand is referred to as a market
segmentation; there are three categories of market segmentation: mass marketing, one-to-one
marketing, and specialty marketing. One-to-one marketing deals with a single person, which
is not profitable; mass marketing treats all clients equally, which lowers user happiness; and
niche marketing concentrates on specific small specialty manufacturing areas.
P a g e 27 | 36
G19 NESTLE 3IIA03MMA

Among the demographics utilized in marketing segmentation include age, gender, income,
and education. geographic data about nations and cultures. Psychological aspects include
goals and needs, as well as attitudes, knowledge, and awareness.
Market segmentation strategies are predicated upon four key elements:
 Behavioral
 Demographic
 Geographical
 Psychographic difference

BEHAVIORAL
The main focuses of Nestlé's behavioral segmentation are the knowledge, comprehension,
and attitude of a consumer.
DEMOGRAPHIC
Nestlé divides their customer base according to factors like income, gender, age, and level of
education. Nestlé never gives different age groups the same product. For example, it serves
coffee to adults and milo to children. Because Nestlé produces its products in small quantities
so that everyone can afford them, even the typical individual can purchase the cost-effective
products. Nestlé bases the production of its goods on the occupations of its clients.
GEOGRAPHICAL
Nature: The Singaporean Nescafe ice market is divided into three sections according to the
temperature: warm, cold, and hot. The worldwide region, the rural area, and the country
region are also considered.
PSYCHOGRAPHIC
Nestlé classifies its products based on lifestyle and personality traits. For example, Nescafe 3
in 1 is meant for people who don't have time for breakfast, while Nestlé Kit Kat is meant for
people who want to experience true chocolate.

9.2. Market Positioning

It's all about identification and where the company's position in the market and the eyes of the
consumers is, and once we understand where we all are, we can figure out where we would
like to go. This is a marketplace with a lot of responsibility. It entails the whole marketing
mix.
 Differentiation of products:
Nestlé offers a range of products for its target market, such as cereals,
lactogen 1 and 3 for babies, and about 25 different varieties of Nido for
kids.
P a g e 28 | 36
G19 NESTLE 3IIA03MMA

 Channel Differentiation:
Nestlé makes sure that its products are easily available to clients by using
experienced salesmen and safe transportation.
 Differentiation of Image:
Customers can quickly recognize the Nestlé emblem since it is radically
distinct from that of other companies and competitors.
 Differentiation in service:
The Nestlé corporation provides 24-hour support lines so that clients may
readily reach out to them with difficulties or questions.

Technology of Nestlé:-
The use of technologies is essential to our R&D. We have engineers engaged in research and
development across multiple domains, ranging from food processing technologies and
packaging and equipment to developing novel beverage systems like Nespresso, Nescafé
Dolce Gusto, Special T, and BabyNes.
P a g e 29 | 36
G19 NESTLE 3IIA03MMA

Alongside engineers, our food scientists develop processes and technologies that enable the
development of safe, nutritious foods and beverages while keeping us on the cusp of new
developments in food science and technology.
Nestlé is a global leader in numerous technologies that it has developed or invented. Here are
few instances:
Fermentation and probiotics:
The Nestlé Research Centre was one of the first to look at the molecular interaction of
probiotics with intestinal cells. We have sequenced several probiotic genomes, so that we can
better understand their characteristics and mechanisms of action.
Healthier fats:
We have also developed technologies that allow us to use natural vegetable oils instead of
partially hydrogenated fats in our Maggi bouillon cubes and seasonings.
Foam booster technology:
This produces the creamy head for Nescafé Cappuccino, with less fat, and which is much
denser and longer-lasting than regular foam. In 2002 we relaunched Nescafé Cappuccino with
our new foaming mix products, which we created these using our foam booster technology.
Malt extraction:
We have developed a new process for malt extraction for Milo that meant less sucrose and
more complex carbohydrates in the product. It was launched in Malaysia in 2006, and in
2007 it was rolled out across Asia.

10.Brand Perceptual Map

P a g e 30 | 36
G19 NESTLE 3IIA03MMA

P a g e 31 | 36
G19 NESTLE 3IIA03MMA

11.Marketing Mix

Product Strategy :-
Nestlé's product strategy drives its food and beverage success. Product development,
portfolio management, branding, and packaging suit consumer wants, respond to changes,
and keep the organisation competitive. Nestlé prioritises product development and
innovation. The corporation invests much in R&D to create new and improved goods that
meet changing consumer tastes..
Price Strategy:-
Nestlé employs various pricing strategies to balance market share, consumer demand, and
product value while maintaining profitability. These include cost-based, market-based,
promotional, and value-based pricing With a diverse product portfolio spanning beverages,
confectionary, dairy, nutrition, and pet care, Nestlé targets diverse consumer segments and
emphasizes branding to build trust and loyalty. Prioritizing attractive, informative, and
sustainable packaging further enhances the product experience, reflecting Nestlé's
commitment to innovation and consumer satisfaction.
Place Strategy:-
Nestlé prioritizes distribution and positioning optimization to improve product accessibility
and convenience. It makes use of a range of tactics and alliances, including e-commerce
platforms and conventional distribution channels like supermarkets and convenience stores.
Nestlé positions its products in retail locations carefully, boosting sales with eye-catching
displays and in-store incentives.
Promotion Strategy :-
Nestlé's promotion strategy blends traditional and digital marketing methods to enhance
brand awareness, engage consumers, and drive sales. Through advertising, PR, sales
promotions, and digital media, Nestlé strategically targets its demographic, emphasizing
ethical practices and leveraging data-driven insights to tailor messaging and foster brand
P a g e 32 | 36
G19 NESTLE 3IIA03MMA

loyalty. This multifaceted approach ensures Nestlé remains competitive in the food and
beverage industry while prioritizing brand equity and community engagement.
Market Leader:-
Nestlé, being the industry leader, focuses on three main areas: market penetration, brand
expansion, and innovation. They make research investments to develop new items and
improve current ones, bolstering their brand with advertising efforts that prioritize client
loyalty, quality, and trust. Most importantly, they put a high priority on comprehending and
meeting the demands of their clients, utilizing insights and feedback to personalize their
services and increase client happiness.
Market Challenger:-
A challenger to Nestlé could differentiate itself by focusing on specific attributes like organic,
sustainable, or niche products. They might also engage in aggressive marketing, investing in
ads, promotions, and PR to boost visibility and attract customers. Innovation and disruption
are crucial, too, as challengers aim to change the market with new ideas, technologies, or
business models. Lastly, forming partnerships and alliances can help challengers grow their
reach and capabilities, making them stand out from Nestlé.

P a g e 33 | 36
G19 NESTLE 3IIA03MMA

12.Emerging Player in the Category , and Nature of Present and Future

Competiton
Nestle, a prominent figure in the global food and beverage industry, operates across various
sectors such as confectionery, dairy, pet care, and nutrition. In each of these domains, it
competes with both established giants and emerging challengers.
In the confectionery market, Nestle faces fierce competition from industry veterans like Mars,
Ferrero, Mondelez International, and Hershey's. In the dairy segment, it locks horns with
Danone, Fonterra, and Arla Foods. In the pet care arena, Nestle Purina PetCare encounters
rivals such as Mars Petcare, JM Smucker, and Hill's Pet Nutrition. Lastly, in the nutrition
sector, Nestle Health Science competes with Danone Nutricia, Abbott Nutrition, and Reckitt
Benckiser.
The competitive landscape in these categories involves a blend of factors, including
innovative product development, competitive pricing strategies, targeted marketing
campaigns, global expansion initiatives, and commitments to sustainable practices. To stay
ahead of the curve, Nestle focuses on developing new products, penetrating emerging
markets, and investing in cutting- edge digital technologies.
In the future, competition is expected to intensify due to the growing impact of globalization,
rapid technological advancements, and the increasing influence of e-commerce platforms.
This may lead to an influx of new market entrants and heightened activity among existing
players, including strategic partnerships, acquisitions, and mergers.

P a g e 34 | 36
G19 NESTLE 3IIA03MMA

13.Any Specific Observation and Latest In That Category

In the world of confectionery, people are now looking for healthier and more environmentally
friendly chocolate options. Companies like Nestle, Mars, and Ferrero are responding to this
trend by creating new products that meet these preferences. Nestle's "Nestle Confectionery
Plan" aims to make all its chocolate products recyclable or reusable by 2025.
In the dairy industry, plant-based alternatives are becoming increasingly popular. Big names
like Nestle, Danone, and Fonterra are developing innovative plant-based milk, yogurt, and
cheese alternatives to cater to vegans and eco- conscious consumers. Nestle's "Plant-Based
Foods" plan targets $1.5 billion in sales from plant-based products by 2025.
Lastly, in nutrition, personalized nutrition and digital health solutions are on the rise. Brands
such as Nestle Health Science, Danone Nutricia, and Abbott Nutrition are using technology
and data analytics to create tailored nutrition plans and digital tools that help people manage
their health better. This includes using AI, telemedicine, and mobile apps to provide
personalized advice, track progress, and offer targeted nutritional products.
These trends show that the market is changing, and companies like Nestle need to focus on
innovation, sustainability, and consumer needs to stay competitive and relevant in the future.
Natural and quality pet food is becoming more and more popular in the pet care industry.
Because pet owners demand the best for their animals, premium pet food brands like Nestle
Purina PetCare, Mars Petcare, and Hill's Pet Nutrition are introducing new lines with
premium ingredients and environmentally friendly production method.

P a g e 35 | 36
G19 NESTLE 3IIA03MMA

Conclusion
The advantages and insights we have gained from our group survey and research on the
Nestle firm for our Business Communication report are undeniable. Nestle is the biggest food
manufacturer in the world, dominating the markets for coffee and mineral water, as well as
prepared foods, cooking tools, milk-based goods, cereal, instant coffee, and baby food.
Additionally, Nestle is an example of an organic organizat ional design. It also decentralizes
decision authority and is incredibly a daptable to the competitive external environment.
Despite this, Nestle Company's goals and objectives have been met. Furthermore, having
studied the theories of macroeconomics and microeconomics, we are aware that some of
them have application in the actual world, such as the law of demand, which states that as a
product's price decreases, so does its quality demand. In the actual world, customers would
rather buy the goods at the lowest price than the most expensive one. Nonetheless, the
majority of people have low economic

P a g e 36 | 36