1. Comprehensive Study of
By: Sumali Parikh
B K School of Management
P G Dip. In International Business (Evening)

2. Timeline / History
Years Details
1866 Nestlé’s beginnings in Switzerland in 1866
1867 Henry Nestlé's Infant cereal developed
1905 Nestlé and Anglo Swiss Condensed Milk Co. (new name after merger)
1907 Corporation began full-scale manufacturing in Australia,
1914 Corporation had 40 factories, & world production had doubled
1921 Corporation recorded its first loss
1938 Launch of Nescafé
1944 - 1973 Dynamic Phase (1947 – Maggi, 1950 – Crosse & Blackwell , 1963-
Findus, 1971 – Libby’s, 1973- Stouffer’s)
1974 -1979 L'Oréal (associate) & Alcon
>1980 Carnation (1985), Rowntree Mackintosh & Willy Wonka (1988) San
Pellegrino (1997), Spillers Petfoods (1998), and Ralston Purina (2002).
2002 – 2003 Mövenpick and Dreyer's
2006 Jenny Craig ( Diet / Weight Loss Program), Novartis Pharmaceutical
2007 Gerber, Pierre Marcolini. (Begian Chocolate maker)
2010 Krafts (frozen Pizza)
2011 Hsu Fu Chi International Ltd

4. Human Resource @ Nestle
• Some of the things that make them stand out
from the rest.
• Nestlé employs over 283,000 employees globally
• Nestlé has around 10,000 different products
globally and around one billion products sold
every day
• One cocoa tree produces around 2,500 cocoa
beans, which is the approximately 50 x 100g bars
of AERO® Chocolate

5. Human Resource (cont.)
• Nestle – A Human Company
– The most important parts of Nestlé’s business strategy and
culture are the development of human capacity in each
country where they operate.
• Training Programs at Nestlé
– Guiding and coaching is part of the responsibility of each
manager and is crucial to make each one progress in his /
her position.
• Literacy Training
– A number of Nestlé companies have therefore set up
special programs for those who, for one reason or another,
missed a large part of their elementary schooling
• Nestlé Apprenticeship Program
– The young trainees spent three days a week at work and
two at school

6. Human Resource (cont.)
• Local Training
– On-the-job training is also a key element of career development in
commercial and administrative positions
– The growing familiarity with information technology has enabled
“distance learning” to become a valuable resource, and many Nestlé
companies have appointed corporate training assistants in this area
• International Training
– For over 30 years, the Rive-Reine International Training Centre has
brought together managers from around the world to learn from
senior Nestlé managers and from each other. The centre delivers
around 70 courses which is attended by 1700 managers from 80
countries.
• Performance Management
– Formal assessment by Line Managers and HR once in a year with
feedback
• Recruitment
– People with realism, hard work, honesty and trustworthiness are
looked for. Match between candidates values & company’s culture
are recruited.

7. Human Resource (cont.)
• Nestlé’s overarching principle is that each employee
should have the opportunity to develop to the
maximum of his or her potential.
• Believe it pays off in the long run. Business results,
that sustainable long-term relationships, highly
competent people, the communities. Operates
enhancing their ability to make consistent profits.
• By offering opportunities to develop, not only enrich
themselves as a company, also make themselves
individually more autonomous, confident, and, more
employable & open to new positions within the
company.

8. Employees who joined as Trainees
CAREER GRAPH OF PAUL BULCKE
Nestlé S.A. Marketing Trainee (Switzerland, Spain,
1979
Belgium)
1996 Nestlé Portugal, Market Head
1998 Nestlé Czech and Slovak Republic, Market Head
2000 Nestlé Germany, Market Head
Executive Vice President for Zone Americas: United States of
2004-Jan 2008
America, Canada, Latin America, Caribbean
Since April 2008 Chief Executive Officer of Nestlé S.A.
CAREER GRAPH OF PATRICE BULA
1980 Marketing Trainee –Switzerland
1983 Product Specialist – Nestlé Japan
1988 Market Specialist, Zone AOA – Nestlé Headquarters
1992 Market Head – Nestlé Taiwan
1997 Region Head – Nestlé Southern African Region
2003 Market Head – Nestlé Germany
May 2011 Executive Vice President Nestlé S.A.

9. • Around 150+ Brands
• Operating in 80+ countries
• Nestle is the world’s largest dairy, with an
annual turnover of more than U.S. 8 billion$.
So they understand the dairy business better
than anyone else.

10. Product Strategies
Milk Products and Nutrition
• Nestle realizes the need to constantly add new products to its
portfolios to cater to different market segments. This is in tune with
a natural tendency to constantly innovate.
• While products like caramel and milkmaid doing well, in recent
times nestle has come up with products like Lassi, fruit n dahi, etc
to cater unexplored segments of Indian market.
• The example of nestle slim milk is a classic, on how it was
positioned and which set benchmarks for others to follow.
• The company worked on the 'Tasty bhi healthy bhi' proposition to
gain acceptance among both kids and mothers.
• With other players like Amul and Mother Diary still ruling the tetra
pack milk is a good way to have a major slice of market share and
go for penetration

11. Product Strategies (cont.)
Beverages
• After 8 years of survey finally in 1938, the need
for a soluble coffee felt was furnished by Nescafé
invention
• From making Nescafé by using 100% pure roast
coffee beans to the birth of the granule in 1967
• Company has then introduced Milo in 1996 as
energy drink in competition with Bournvita and
Boost

12. Product Strategies (cont.)
Prepared Dishes and Cooking Aids
• Considering the changes being faced and the
margin trends in the global market Nestle
launched another variation in its noodles
category known by vegetable atta noodle.
• Maggi soups are examples of product
diversification being specifically targeted at
different consumer profiles.

13. Product Strategies (cont.)
Chocolate and Confectionaries
• Nestlé primarily focuses on the areas where it
can be the market leader. It believes that one
cannot take a competitor head-on where the
latter already has considerable competitive
advantage.
• Now, Nestlé India is planning to launch the Kit-Kat
chocolate with new flavors- cumin and 'masala' -
both staple spices used in Indian curry dishes

14. Pricing Strategy
• Nestle India Ltd’s presentation made to analysts in Nov
2011 The presentation shows that during Jan’ 2011-
Sept’ 2011, in the domestic market:
• Sales rose 9.5% year-on-year while Value rose 21.5%.
• Compared to the exports markets,
• Sales declined 10.2% year-on-year, but it rose 8.9% in
value terms.
• The immediate conclusion is that Nestle has been
hiking prices sharply, a strategy that runs the risk of
hurting consumer demand and even becoming
uncompetitive.

15. Promotion Strategy (Nestle Pure Life - NPL)
• Promotion is the very important and crucial
element of marketing strategy as through it
the company establishes its image in the
minds of the customers
• Slogan of Nestle Pure Life is “fresh and
rejuvenating taste” and “Embrace the pure
life”.

16. Nestlé motivates people to drink NPL by informing
customers about importance of water, which is pure and safe
• Hydration, Support and Performance
– During athletes & sports
• You are what you drink!
– Drink a glass of water 20 minutes before your meals and you will not eat as
much.
• Drink to Health
– Make sure your children drink plenty of pure, safe water every day.
• Best Thirst Quencher!
– Drink before you feel thirsty and drink cool water as it helps lower body
temperature
• Cool Down!
– Caffeinated and sweetened drinks are not the answer to thirst.
• Develop a Hydration Habit!
– Drink water when you wake up, with every meal and bedtime.
• Radiant and Clear!
– Drink 6-8 glasses of water to prevent your skin for becoming dry and prone to
wrinkles.

17. Place Mix
• The company has been very thoughtful about its
geographic segmentation.
• NESTLÉ Set Dahi, NESTLE MILK and SLIM
MILK is available in all the metros and NESTLÉ
Jeera Raita is available in Delhi for similar
reasons.
• Nescafé's My First Cup sachet, Maggie is easily
availability. One could find it in any departmental
store big or small.

18. Nestlé Roadmap to Good Food, Good Life
Four Competitive Advantages
• product and brand portfolio
• unmatched research and development capability
• unmatched geographic presence
• people, culture, values and attitude
Four Growth Drivers
• Nutrition, Health and Wellness
• Popularly Positioned Products (PPP),
• Premiumisation
• out-of home consumption,
Four Operational Pillars
• innovation and renovation
• operational efficiency
• whenever, wherever and however
• communicate with our consumers

19. NESTLE’s 100 YEARS IN INDIA
After nearly a century-old association with the country, today,
Nestlé India has presence across India with 7 manufacturing
facilities and 4 branch offices spread across the region.
They are in Delhi, Mumbai, Chennai and Kolkata. The Nestlé
India head office is located in Gurgaon, Haryana.
Nestlé India’s first production facility, set up in 1961 at Moga (Punjab), was followed
soon after by its second plant, set up at Choladi (Tamil Nadu), in 1967. Consequently,
Nestlé India set up factories in Nanjangud (Karnataka), in 1989, and Samalkha
(Haryana), in 1993. This was succeeded by the commissioning of two more factories -
at Ponda and Bicholim, Goa, in 1995 and 1997 respectively. The seventh factory was
set up at Pantnagar, Uttarakhand, in 2006.

20. Thanks
A
Million