2. Introduction-
Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food
and beverage company. Sales at the end of 2005 were CHF 91 b, with a net profit
of CHF 8 bn. Nestlé employ around 250,000 people from more than 70 countries
and have factories or operations in almost every country in the world. The history
of Nestlé began in Switzerland in 1867 when Henri Nestlé, the pharmacist,
launched his product Farine Lactée Nestlé, a nutritious gruel for children. Henri
used his surname, which means ’little nest’, in both the company name and the
logotype. The nest, which symbolizes security, family and nourishment, still plays
a central role in Nestlé’s profile. Since it began over 130 years ago, Nestlé’s
success with product innovations and business acquisitions has turned it into the
largest Food Company in the world. As the years have passed, the Nestlé family
has grown to include chocolates, soups, coffee, cereals, frozen products,
yoghurts, mineral water and other food products. Beginning in the 70s, Nestlé has
continued to expand its product portfolio to include pet foods, pharmaceutical
products and cosmetics too. Today, Nestlé markets a great number of products,
all with one thing in common: the high quality for which Nestlé has
become renowned throughout the world The Company's strategy is guided by
several fundamental principles. Nestlé's existing products grow through
innovation and renovation while maintaining a balance in geographic activities
and product lines. Long-term potential is never sacrificed for short-term
performance. The Company's priority is to bring the best and most relevant
products to people, wherever they are, whatever their needs, throughout their
livesTaste of Nestlé in each of the countries where Nestlé sell products. Nestlé is
based on the principle of decentralization, which means each country is
responsible for the efficient running of its business - including the recruitment of
its staff.
“Thinking Globally-Acting locally"
3. Evolution of Nestle-
1867
Henri Nestlé founded the company in Vevey, Switzerland.
1898
Nestlé purchases its first factory outside of Switzerland - Viking Milk factory
in Norway.
1905
Nestlé merges with Anglo-Swiss Condensed Milk Company.
1929
Nestlé merges with Peter-Cailler-Kohler Chocolates Suisses S.A.
1938
Nestlé launches Nescafé - the world’s first instant coffee.
1947
Nestlé merges with Alimentana S.A. with the brand Maggi.
1962
Nestlé purchases Findus.
1974
Nestlé becomes a significant shareholder in the Cosmetics Company L’Oréal.
1977
Nestlé purchases Alcon, manufacturer of eye care products and kits.
1985
Nestlé purchases the Food Company Carnation.
1988
Nestlé purchases the confectionary company Rowntree Mackintosh and the
pastacompany Buitoni-Perugina.
1992
Nestlé purchases the mineral water Company Perrier.
1998
Nestlé purchases Spillers pet foods business.
2000
Nestlé sells the Findus brand in all countries except for Switzerland.
2001
Nestlé merges with Ralston Purina, the premier pet food company in North
America, and with unique expertise in the dry dog food area.
4. Vision of nestle-
Nestlé's vision of making good food central to enjoying a good healthy life for
consumers everywhere. This implies gaining a deeper understanding in many
areas of nutrition and food research and transforming the scientific advances into
applications for the company.
Collaboration-
Our objectives are to deliver the very best quality in everything we do,
from
primary produce, choice of suppliers and transport, to recipes and pa
ckaging materials. Our operations and collaboration in the Nordic countries
gives us greater opportunities to be efficient and strategic and to function well as
an organization, both when it comes to the distribution chain and to
concentrating on joint product launches and campaigns.
Focus on e-business-:
Increased investments in the sphere of e-business give us swifter business
and direct contact with trade. Our website is a forum for consumers, students,
future employees and the media. We hope that through a sincere approach and
by conducting dialogues, we will be able to improve, change and satisfy the
demands and wishes of the people of today.
5. Detail brand product-
Coffee
Nescafé, Taster’s Choice, Ricoré, Ricoffy, Nespresso , Bonka, Zoégas,
Loumidis
Water
Nestlé Pure Life, Nestlé Aquarel, Perrier, Vittel, Contrex,S.Pellegrino,
Acqua Panna, Levissima, Arrowhead,
PolandS p r i n g, D e e r P a rk , O z a rk a , Hé p a r, Ic e M o unt a i n, Zephyrhi
lls
Other beverages
Nestea, Nesquik, Nescau, Milo, Carnation, Libby’s, Caro, Nestomalt, Nestlé
Shelf stable
Nestlé, Nido, Nespray, Ninho, Carnation, Milkmaid, LaLechera, Moça,
Klim, Gloria, Svelty, Molico, Nestlé OmegaPlus, Bear Brand, Coffee-Mate,milk
pak,yougart
Chilled
Nestlé, Sveltesse, La Laitière, La Lechera, Ski, Yoco,Svelty, Molico,
LC1, Chiquitin
Ice cream
Nestlé, Antica Gelateria del Corso, Dreyer's/Edy's,Drumstick/Extr
ême, Maxibon/Tandem, Mega, Mövenpick,Sin Parar/Sem Parar/Non Stop
Infant nutrition
Nestlé, Nan, Lactogen, Beba, Nestogen, Cerelac, Neslac, Nestum, Guigoz,
Good Start
Performance nutrition
PowerBar, Pria, Musashi
HealthCare nutrition
Nutren, Clinutren, Peptamen, Modulen
Bouillons, soups, seasonings, pasta,sauces
Maggi, Buitoni, Thomy, Winiary,Torchin
Frozen foods
Stouffer’s, Lean Cuisine, Hot Pockets, Buitoni, Maggi
Refrigerated products
Nestlé, Buitoni, Herta, Toll House
Chocolate and biscuits
Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat, Smarties,Butterfinger, Aero,
Polo
Cosmetics
6. Biotherm, Body Shop , Cosmence, Garnier, HelenaRubenstein, Innéov , La Roche-
Posay, Lancôme,L'Oreal ,Matrix , Maybe line ,Metamorphosis ,Plenitud.
Pet food
Arthur's, Bakers, BETA, Bonio, Felix ,FriskiesGo-Cat ,Go-dog, Pro Plan,
Purina ,Spiller'sWinalot.
Cereals
Cheerios & Honey Nut Cheerios, Cinnamon and Golden Grahams ,Clusters,
Cookie CrispShreddies , Fibre 1,Fitnesse ,Force FlakesFruitful ,Golden Nuggets
,Nesquik cerealShredded Wheat including: Bite size, Fruitful, Honey Nut,Shred
dies: Coco and frosted.
Board of directors-:
Peter brabeck letmathe Chairman
Paul Bulcke Chief executive officer
Andreas koopmann Chairman
Beat hass Chairman
Renatoo fassbind Chairman
SWOT anaylysis of Nestle
Strengths:
Nestlé’s has much strength.1.Their first is that they have a great CEO,
Peter Brabeck. Brabeck emphasizes internal growth, meaning he wants to
achieve higher volumes by renovating existing products, and innovating
new products.2.His explanation of innovation is “to maintain a leadership
position,you also need to leapfrog, to move faster and go beyond whatconsumers
will tell you.” Brabeck has led Nestle into a position to better achieve the internal
growth targets with his.3.Another strength that Nestle has is that they are low
cost operators.This allows them to not only beat the competition by producing
lowcost products, but by also edging ahead with low operating costs.
Weakness:
1.The main weakness of Nestle is that they were not as successful asthey
thought they would be in France. The launch in France was in1994, but since the
late 1980s, Danone had already entered the marketwith a health-based
yogurt.2.The second weakness is that LC-1 was positioned as too scientific,
andconsumers didn’t quite understand that LC-1 was a food and not
adrug.3.Nestle also has multiple critical resources. They have a great
7. researchand development team. James Gallagher and Andrea Pfeifer were
themasterminds behind the research on the La-1 cultures in the LC-1yogurt. They
were also the two that decided on selling LC-1 as afunctional food. This enabled
Nestle to position the product in a waythat differentiated it among the other
products in the market. They alsohave four pillars that Brabeck, Nestle’s CEO has
identified he believeswill help their internal growth worldwide. These are
operatingexcellence, innovation and renovation, product availability,
andcommunication.
Opportunities:
1.One opportunity that Nestle has is that health-based products
are becoming more popular in the world, including in the United States.Consumers
are2.Becoming more health conscious, and realize that living longer
isn’tonly by luck and genetics. LC1 has not been introduced in the UnitedStates
yet.3.Nestle also has an opportunity of being even a larger market leader
inGermany with LC-1. Within two years of launching the product inGermany, they
had captured 60% of the market. This was due to thefact that they differentiated the
product, and Germans simply preferredthe taste.4.Another opportunity of LC1
is that, because they are a market leader,they can introduce more health-based
products in Germany.5.As nestle has more then 9000 brands all over
the world .they areincreasing their products day by day. With very new changes.
like nowthey are introducing Nestle LEMU Malta
Threats:
1.A threat to Nestle is the fact that some markets they are entering
arealready mature. Danone had an established leadership position in theyogurt
market in France. Since Danone was the first to arrive in themarket, they have
always been the market leader there.2.Also consumers in France liked the taste
of LC-1, but researchers believe they did not repurchase the yogurt because they
preferred thetaste of Danone products better.3.Another threat to Nestle is
that there is intense competition in theUnited States yogurt market. General
Mills’ Yoplait division is theleader in the yogurt market in the United States.
Yoplait has been theleader for years and is constantly innovating new health
products.4.The main threat of Nestle these days isthe campaign led by
theInternational Nestlé Boycott Committee primarily targets
Nescafe, thecorporation's flagship product. To boycott Nestlé products until
thecompany stops promoting its baby milk
.
5.Another threat now a days is in nestle pure life. as it’s the leading brand
and people prefer Nestle pure life but their may be a threat fromaqua fena which is
introduced by Pepsi6.Threat of Olper Milk and Haleeb Milk .
8. Nestle Relationship with India-:
Nestlé’s relationship with India dates back 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 emphazised 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, advise
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. For more on Nestlé Agricultural Services.
PRESENCE IN INDIA
Beginning with its first investment in Moga in 1961, Nestlé’s regular and substantial investments
established that it was here to stay. In 1967, Nestlé set up its next factory at Choladi (Tamil Nadu) as a
pilot plant to process the tea grown in the area into soluble tea. The Nanjangud factory (Karnataka),
became operational in 1989, the Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé
commissioned two factories in Goa at Ponda and Bicholim respectively. Nestlé India has commissioned
in 2006 its 7th factory at Pant Nagar in Uttarakhand.
Key online sources-:
Sources:
www.nestle.in
www.nestle.com
www.wikipedia.org
www.financialexpress.com
OPERATIONS
Nestlé has been a partner in India's growth for over nine decades now and has built a very
special relationship of trust and commitment with the people of India. The Company's activities
9. 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 NESTEAand in recent years the Company has also introduced
products of daily consumption and use such asNESTLÉ 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 the quality of life
in the communities where it operates.
Board of Directors in India
Suresh narayanan Chairman and managing director
Shobinder duggal Finance and Control
Aristides protonotarios Director-Technical
R.V kanoria non executive and independent
officer
Made by –Abhinav Mehta
PPM-IT –assignment-2
PRN NO.-16030141043
MBA-IT
