About Nestle Final

8/8/2019 About Nestle Final

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SUBMITTEB TO :- PRAM SIR

SUBMITTED BY:- JITENDER KUMAR

(PGDM AICTE ) (09020)

Assignment of international marketing


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(Competitive advantages of dairy products of nestle. Social

capital, brand value &gains from divers of globalization.)

About nestle

Nestle was founded in 1867 in Geneva, Switzerland by Henri Nestle. Nestls firstproduct was "Farine Lactee Nestle". In 1905, Nestle acquired the Anglo-SwissCondensed Milk Company. Nestls relationship with India started 1912, when it

began trading as The Nestle Anglo-Swiss Condensed Milk Company (Export)Limited, importing and selling finished products in the Indian market.

After independence, in response to the then economic policies, which emphasizedlocal production, Nestle formed a company in India, namely Nestle India Ltd, andset up its first factory in 1961 at Moga, Punjab, where the Government wanted

Nestle to develop the milk economy. In Moga, Nestle educated and advisedfarmers regarding basic farming and animal husbandry practices such as increasingthe milk yield of the cows through improved dairy farming methods, irrigation,

scientific crop management practices etc. Nestle set up milk collection centers thatensured prompt collection and paid fair prices. Thus, Nestle transformed Moga intoa prosperous and vibrant milk district.

In 1967, Nestle set up its next factory at Choladi (Tamil Nadu) as a pilot plant toprocess the tea grown in the area into soluble tea. Nestle opened its third factor inNanjangud (Karnataka) in 1989. Thereafter, Nestle India opened factories inSamalkha (Haryana), in 1993 and two in Goa at Ponda, and Bicholim in 1995 and1997 respectively. Nestle India is now putting up the 7th factory at Pant Nagar inUttarakhand.


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Today, Nestle is the world's largest and most diversified food company. It hasaround 2, 50,000 employees worldwide, operated 500 factories in approximately100 countries and offers over 8,000 products to millions of consumers universally.

Brands & products

Dairy segment

NESTL EVERYDAY Dairy WhitenerNESTL EVERYDAY GheeNESTL MilkNESTL Slim MilkNESTL NESVITA PRO-HEART MILKNESTL Fresh 'n' Natural DahiNESTL Fresh 'n' Natural Slim DahiNESTL Jeera RaitaNESTL NESVITADahiNESTL MILKMAID Fruit yoghurtNESTL MILKMAIDNESTL NIDONESTL Dahi

Brand value

Nestle the biggest consumer packaged foods producer in the world. In 2008,Nestls brand value was more than $5,592 million dollars.

Nestle, the largest producer of consumer packaged beverages and foods inthe world, claimed the 63rd position in the Interbrand's list of 100 mostvaluable brands in the world.

In 1988, Nestle owned Rowntree Mackintosh PLC, widely known asRowntree. The main reason behind this acquisition was Rowntree's brandvalue.


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The brand "Nestle" has an important role behind the globalization efforts ofthe company. In 1996, almost 40% of the net revenues came from the

products that fell under the Nestle corporate brandThe main attraction of Nestls corporate identity is its logo. The design of

the logo is very innovative. The nest in the logo is a graphic translation ofthe founder's, Henri Nestle, name.

Nestle expanded the Kit Kat brand beyond the United Kingdom. Thecompany spending a lot of money to maintain a successful brand identity.

Nestls efficient brand management system continuously is working toimprove the company's brand value

Competitors

Nestle competes with other packaged foods companies as well as store brands fromretailers such as Safeway (SWY), Wal-Mart Stores (WMT), Walgreen Company(WAG). Nestls major competitors are:

Unilever NV (UN) - A Dutch company that produces packaged foods andproducts for the home and personal care markets. Unilever is one of Nestlslargest international competitors.

Kraft Foods (KFT) - A U.S. company that produces packaged foods products.Kraft is one of Nestls largest U.S. based competitors. On January 19, 2010,

Kraft bought Cadbury Schweppes (CSG) for $19.5 billion, creating the largestcandy company in the world and strengthening Kraft's international presence.Cadbury Schweppes (CSG) is a U.K. company that produces products for theconfectionery and non-alcoholic beverages markets; they compete with Nestls

beverage and confectionery products internationally and in the U.S.


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GROUPE DANONE (DA) - A French company that produces packaged foodsand beverages. Group DANONE competes with Nestle internationally and inthe U.S.

Hershey Foods (HSY) - A U.S. company that produces chocolate and sugar

confectionery products. Hershey Foods competes with Nestls confectionerybrands mostly in North America.

Competitive advantages

Quality is a competitive advantage

We live in a competitive world and must never forget that our customers have achoice. If they are not satisfied with a Nestl product, they will switch to another

brand. Our goal, therefore, is to provide superior value in every product categoryand market sector in which we compete.The pursuit of highest quality at any price is no guarantee for success, nor is asingle-minded cost-cutting approach. Lasting competitive advantage is gained froma balanced search for optimal value to customers, by simultaneous improvement ofquality and reduction cost.Success can never be taken for granted. We must watch and learn from ourcompetitors. If they do something better, we must improve our own performance.We can achieve competitive advantage through Quality.

At Nestl, Quality is our first priority. Let us practice it

every day.

Nestl describes itself as a food, nutrition, health, and wellness company.Recently they created Nestl Nutrition, a global business organizationdesigned to strengthen the focus on their core nutrition business. They

believe strengthening their leadership in this market is the key element oftheir corporate strategy.


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In order to reinforce their competitive advantage in this area, Nestl createdNestl Nutrition as an autonomous global business unit within theorganization, and charged it with the operational and profit and lossresponsibility for the claim-based business of Infant Nutrition, HealthCare

Nutrition, and Performance Nutrition.The Corporate Wellness Unit was designed to integrate nutritional value-

added in their food and beverage businesses. This unit is responsible forcoordinating horizontal, cross-business projects that address currentcustomer concerns as well as anticipating future consumer trends.

Nestls competitive strategies are associated mainly with foreign directinvestment in dairy and other food businesses. Nestl aims to balance sales

between low risk but low growth countries of the developed world and high

risk and potentially high growth markets of Africa and Latin America.When operating in a developed market, Nestl strives to grow and gain

economies of scale through foreign direct investment in big companies. Inthe developing markets, Nestl grows by manipulating ingredients or

processing technology for local conditions, and employ the appropriatebrand.

Another strategy that has been successful for Nestl involves strikingstrategic partnerships with other large companies. In the early 1990s, Nestlentered into an alliance with Coca Cola in ready-to-drink teas and coffees inorder to benefit from Coca Colas worldwide bottling system and expertisein prepared beverages.

In Asia, Nestls strategy has been to acquire local companies in order toform a group of autonomous regional managers who know more about theculture of the local markets than Americans or Europeans. Nestls strongcash flow and comfortable debt-equity ratio leave it with ample muscle fortakeovers.

A pool of qualified suppliers that understand and support Nestlscommitment to excellence.

A pool of qualified suppliers that are directly aligned withunderrepresented and emerging communities and can promote positiverelationships with our customers

Better quality goods and services at a lower price as a result of increasedcompetition and an extended supply base

Access to new capabilities and innovations


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A competitive advantage as we seek government contracts, and assurancethat we are in compliance with the diversity expectations of our publicsector contracts.

Other advantage

Strong innovation heritageClear vision for the futureLeveraging research into products and services

Nestls competitive advantage is Nestls vision

Nestle Research Vision To

create the future, move

faster and go beyond what

consumers tell us

Science and technology as

the engine of innovation

Being consumer centric

Nestl Vision

To be the Nutrition, Health and

Wellness company

Innovation driven by superior

science and technology

Understand consumers

nutritional and emotional needs


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Nestls competitive advantage is leveraging research into products andservices

SOCIAL CAPITAL

We believe that the true test of abusiness is whether it creates valueforsociety over the long term

Peter Brabeck-Letmathe,Chairman and CEO, Nestl

Nestl India has always focused on long term, sustainable and profitable growthand helped communities around its factories to improve their quality of life in asimilar manner. Nestl Agricultural Services has used the experience gained by

Nestl across the world to set up a system of direct and efficient contact with thefarmers. Company veterinarians and agronomists supervise the milk routes andadvise farmers on various issues including proper feed for the herds. Milk storagefacilities have been set up close to the farmers. Veterinary services are providedfree, and medicines provided at wholesale cost. The company assists farmers in

y Weight Management

y Growth and Development

y Protection


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artificial insemination programs for their cattle, provides subsidy and helps them inprocuring loans. For more on Nestl Agricultural Services,

Safe Drinking WaterWater is a scarce resource. In India, availability of clean drinking water is a majorconcern for many communities. Almost 200 million people do not have access toclean drinking water. Nestl India is committed to improving the situation and

believes that the first step is to create awareness in the communities around itsfactories. A key focus area of our Corporate initiatives is to help provide CleanDrinking Water and educate children in schools to conserve this scarce resource.

Education and TrainingNestl supports initiatives to create awareness about the right to education andencourages the communities around its factories to send their children to school.

Nestl India employees have developed a special play 'Let Us Go to School' forthis purpose. This has been staged amongst the communities around our factories,and its recordings screened at smaller gatherings along the milk routes.

The Company also recognizes the active role that village women play in adopting

good dairying practices in dairy farms and regularly conduct special programs thathelp them.

Nestl India supports local schools, helps in the maintenance of public parks andgreen belts, facilitates blood donation camps and health awareness programs. Thekey messages of conservation, hygiene, health and wellness are progressively builtinto the communities where the Company is present. All these initiativesstrengthen the bond between Nestl India and the community.

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About Nestle Final