Presented By :

Ravindra Deogharkar 06
Jnyanesh Hegde 18
Nivedita Sawant 51
Santosh Shinde 55
Bhushan Surve 57
Nestlé - The Early Years...
Born Heinrich Nestle 10 August, 1814, in Frankfurt, Gemany.

Left Frankfurt and Moved to Switzerland during the middle 1830’s.

Created the first milk and cereal based infant food

Farine Lactée Henri Nestlé

Founded the Company in 1867

 Nestlé India

 In India since 1912 as a Trading House.

 Manufacturing started in Dec 1962 – Moga, Punjab
 Largest diversified food company in India.
Vision

To rapidly build Nestlé India as

the Respected and Trustworthy leading Food, Nutrition,
Health and Wellness Company ensuring long term sustainable
and profitable growth
 Nestlé in India – major milestones

Launched
Launched in 1983 in 1995 Go Live 2006
Started as a Trading
House in 1912

Rs.10,000 mio.
India
Company in 1995 2007 - Best
Launched in 1986 performing
market in AOA

Launched in
1964 Launched in 2003

Launched in 1990
 Main Competitors

a. Pepsi co

b. Kraft foods
c. Unilever
d. Coca-cola
e. Cadbury
SWOT Analysis
 STRENGTHS
1. Strong supports
2. World’s largest processed food and bevarage co.
3. Strong brands

 WEAKNESS
1. Less Promotion (MAGGY, different entity)

 OPPORTUNITIES
1. Potential expansions
2. Existing markets

 THREATS
1. Major products – Amul & Cadbury

2.
Nestlé India Key Financials 2009

• Sales : INR. 5129.4 Crores

• % Increase in Net Sales : 18.6

• Net Profit as % of Sales : 22.6

 Food Sales (in billion USD)

0
10
20
30
40
50
60
70
80
Nestlé

PepsiCo

Kraft Foods

Unilever

Coca-Cola

Mars

Danone

Cadbury
Schweppes

General
Mills
World's largest food and beverages

ConAgra

Kellogg's

Sara Lee
BCG Matrix
 Position: Star
Product : NESCAFE Launched in
1964
Leading coffee brands in Indian market

Not only high market share but growth rate is also significantly high

The name Nescafe has become generic with coffee

Product : CERALAC
One of the leading baby food products

Long hold in its market share almost more than one & a half decade.

Easily almost every general or provisional store in Indian Market

It is a major contributor for Nestle India’s revenues.

Position: Cash Cow

Product : Maggi Noodles Launched in 1983

more households of consumption in India than any other country

become the first preference of Indian children in terms of instant food

cash cow and not a star

significantly high market share in the Noodles market in India, the market
growth rate of Noodle consumption is not very high.

number of repeat purchasers is high, the rate of increase among the new
purchasers is not too high.

Intended Placement: Star

Position: Question Mark

Product: Milo

Demand of the consumers arising in absence of other

products in the same design (e.g. Bournvita, Complan, etc.),

Unable to acquire a market in the basis of its brand name

not placed as a Dog as potential to expand & also because the product lies in
a market with high business growth rate

Milo has not been promoted as a health drink as Boost or Complan and to
some extent Bournvita has been done

huge avenues for growth especially analyzing the extending Indian market
for health and milk drink

Nestle can convert this question mark into a star by aggressively placing it
Position: Question Mark

Product: Maggi Sauce

Maggi Sauce highlighted with top television celebrities

but there was a considerable time lag in promotion

Maggi Sauce, acknowledge the retailers, has the capacity (both on account
of the reasons of price and taste) to wipe out competitors (both the branded
as well as the local ones) and thus has huge potential to be converted into a
star.

Competitors like Kissan, Tops (especially in north India) etc. do not pose
any barrier in the growth of Maggi Sauce as the leader.

Though it has been kept as a question mark yet, Maggi Sauce has the
potential of turning all odds in its way to become a dominating brand
Position: Dogs

Product: Milky Bar

Become quite popular in and around the year 2000 but it never reached the
stage of a power brand.

Milky Bar has lost the primary battle which it had with mindset of the
unaware Indian consumers who could never contemplate a non-brown
chocolate

The market positioning of Nestle Milky Bar has been only to children (as
one can contemplate from the advertisements which relate only to children
in the age group of 10 -15) and thus it has lost the adolescent consumer,
which is also a major part of the entire consuming segment of chocolates

(Other products - NESTLE DAHI, CRUNCH AND MUNCH)

Where Nestlé stands today

a. Largest diversified food company in India with the widest product range

b. Excellent Image, Strong Brands

c. Strong and effective distribution network

d. Excellent Image/Relations with Trade

 A trustworthy company
 principled and well managed
 consumers oriented
 creating long-term, sustainable value for stakeholders

Conclusions
thank you