1. PORTER’S FIVE FORCES FOR
NESTLE
Submitted By:
Nimisha Walecha (E13)
Sonam Mahajan (E21)
Raqueem Khan (E62)
2.
3. About Nestlé
• Founded in 1866 by Henri Nestlé.
• Henri Nestlé developed a milk based baby food and soon began
marketing it. It became the first product of Nestlé.
• Incorporated as a limited company in 1959
• Name was changed from Foods Specialties Ltd. to the current
name in 1981 .
• Employs around 247,000 people and have factories or operations
worldwide.
4. KITKAT
• First created and launched by Rowntree Limited of England and was
later produced by Nestle which aquired Rowntree in 1988.
• Quickly gained much popularity and spread to all corners of the
globe.
• Now available in over 70 countries in many different varieties.
USP
1.Chocolate fingers
2.Well-known strapline - Have a Break, Have a Kit Kat.
5. MAGGI
• It was founded by the Maggi family in Switzerland in the 19th
century.
• Launched in India in year 1984.
• The brand is popular in India, Malaysia, New Zealand, Singapore,
South Africa, Australia.
• Nestle wanted to explore the potential for such an instant food among
the Indian market.
• Now it enjoys around 94% market share in this segment.
USP
1.2-minute noodles.
2.Fast to cook and good to eat (Taste bhi, health bhi).
6. NESCAFE
• The product NESCAFÉ – a combination of the Nes-root of Nestlé
and the word café.
• NESCAFÉ was first introduced in Switzerland, on April 1st, 1938.
• Popularity grew rapidly and soon became the beverage of choice for
teenagers.
• In 1965, Gold Blend was launched.
• In 1994, 'full aroma' process was invented to make the unique
quality and character of NESCAFÉ even better
7. CERELAC
• One of the most popular baby food brands manufactured by Nestle.
• Easily digested by infants.
• Considered very nutritious and good for babies' health and growth.
• Serves as a complimentary meal for babies above 6 months.
• Comes in a range of varieties:
Cerelac Rice, Cerelac Wheat, Cerelac Wheat – apple, Cerelac Wheat
– honey, Cerelac Wheat – banana, Cerelac Wheat - 3- fruits, Cerelac
Wheat - 4 - Vegetables
23. RECOMMENDATIONS
Maggi
• They should target ‘Rural market’ too.
• They can think of extending the ‘Maggi’ product line.
Nescafe
• They need to consider the price factor in order to have a stable
position in the market.
• Proper research should be done while launching a new product.
• Should take in consideration the Indian psyche.
• Should act like market leader rather then follower.
Kitkat
• Need to Find a unique strategy for making it a success in the Indian
market.
• Should look for product differentiation.
24. CONCLUSIONS
• Maggi is undoubtedly the market leader, having no
potential threat from its substitutes or any new entrants.
• Nescafe is facing a tough competition from Bru as its
substitute.
• Kitkat faces a severe competitive rivalry from Cadbury
chocolates.
• Cerelac enjoys the market monopoly as there is no other
major supplier of healthy baby foods.