Nestle presntation Atif Nawaz

NESTLE 1. Atif Nawaz 2014-ag-2218

Institute Business and Management [email protected]

INTRODUCTIONTremendous fact that one billion population use nestle products in daily life.

Nestle No. 33 on the 2016 edition of the Forbes Global 2000 list of largest public companies.

Nestlé has 447 factories, operates in 194 countries, and employs around 339,000 people

SalesCHF 88,8 billion ( $878.38billion) 4,2% Organic growth

CHF 13,4 billion ($132.55billion)Trading operating profit 15,1% Trading operating profit margin

UNIVERSITY OF AGRICULTURE FAISALABAD – UAF

JOURNEY OF NESTLE THROUGHOUT YEARS

Nestle was found in 1866 by Henri nestle. 1866 - Founder , Henri Nestle created one of the first baby formulae. Become success throughout Europe Even doctors recommended that nutrient. The company open milk plant in Australia in (1910) South America (1921) Africa(1927) Asia (1932) 1905 - The first merger .

The Nestlé Company merged with the Anglo-Swiss Condensed Milk Company, large production and manage to penetrate the European Market.

CON. . . .

1914- 1918 – onset of the World War I bring a new revolution to the company. 1945 – 1975 – End of the World War II and the beginning of new phase. 1980’s – 2003 – More acquisitions.

Cereal Partners worlwide with General Mills Beverage Partners Worldwide with The Coca-Cola Company Lactalis Nestlé Produits Frais with Lactalis Nestlé Colgate-Palmolive with Colgate-Palmolive Nestlé Indofood Citarasa Indonesia with Indofood Dairy Partners Americas (DPA) with Fonterra Nestlé Snow with Snow Brand Milk products Nestlé Modelo with Grupo Modelo


CON. . . .• 2002 join Cadbury and purchased American company Hershey's• In December 2005, Nestlé bought the Greek company Delta Ice Cream for €240 million.• In January 2006, it took full ownership of Dreyer's Grand Ice Cream Holdings, Inc• In November 2006, Nestlé purchased the Medical Nutrition division of Novartis Pharmaceutical for

US$2.5 billion.• 2007 Acquisitions of Ovaltine• In April 2007, Nestle bought US baby-food manufacturer Gerber for $5.5 billion.• 1 March 2010 , Bought Kraft’s Food (Frozen Pizza) for $3.7 billion• In February 2013, Nestlé Health Science bought Pamlab.• In February 2014, Nestlé sold its PowerBar sports nutrition business to Post Holdings, Inc.• In December 2014, Nestlé announced that it was opening 10 skin care research centers worldwide• 2015, opening of Education and Longevity Development (SHIELD) centers



CON…

Good Food, Good Life’ is the commitment we make every day, in every part of the world. We have more than 2000 brands in our portfolio, from global icons to local favorites. We help people live more enjoyable, healthier lives, leveraging 150 years of passion for nutrition to bring them products and services they can trust.

A worldwide leader known for manufacturing products as diverse as chocolates and diaries, Nestle has clearly been through many changes over the years.

By now, Nestle company had become the world’s largest food company.

NESTLE HEADQUARTERS ARE LOCATED IN VEVEY, SWITZERLAND

Nestle Company has factories and operation in almost ever country in the world

World leader in coffee and chocolate

NESTLE’S HEADQUATERSIn Vevey, Switzerland

PRODUCTS The most diversified food product company Some famous brands include: Milk & Milk products, Ambient Dairy, Chilled Dairy. Nestle health care products , Pet food Nescafe, Maggi, Milky bar, Milo, Kit Kat, Milkmaid and Nestea, Nestle

Milk, Bottled Water. Baby Food, Breakfast Cereals, Nestle juices

PRODUCTS

Milk Products and Nutrition Nestle water Prepared Dishes and Cooking Aids Beverages Other mixed and health care Chocolates and Confectionery

MILK PRODUCTS AND NUTRITION

PREPARED DISHES AND COOKING AIDS

PRODUCTS BEVERAGES

PRODUCTSCHOCOLATES & CONFECTIONERY

MIX PRODUCTS


NESCAFE FACTORYNestlé inaugurated factory producing beans Nestlé factory located in Tri An, Amata Industrial Zone, Bien Hoa City, Dong Nai.

NESTLE CHOCOLATE UNIT


NESTLE ORGANIZATIONAL CHART



NESTLE MARKETING PLANNING IN PAKISTAN THROUGH VISION AND MISSION

National Organizational Structure

National Sales Manager

Constomer Service

ManagerArea

ManagerSystem Support

Executive

Event Manageme

ntSystem Support Officer

Event Management

Officer

Chiller Technician

Sales Associates

DSR Loader

Zonal Sales Manager

Regional Sales Manager

Constomer Service

Manager

Territory In-

Charge

MARKETING STRATEGY OF NESTLE

Growth Strategy

Transnational strategy : Low cost, Different products, Different Markets, High local responsiveness

Localization strategy : brand name resonates locally as the cultural habits difference in different nations

Customization : delivering goods that are modified to satisfy a specific customer need. 85 percent of the market for instant coffee in Mexico. 66 percent of the market for powdered milk in the Philippines


Nestle Marketing strategy

MARKETING ENVIRONMENT

Micro Environment: a) Suppliers: Suppliers provide the raw material resources, unfinished goods and labors to the company

in order to produce goods and services b) Marketing Intermediaries: The market intermediaries of the company help to advertise, sell and

distribute its product to the end customers. c) Customer: Immediate customers of Nestle are retail and grocery stores d) Competitors: Petra Foods Limited, Yeo Heap Sang Limited, Mail Dairy Industry Co. Ltd Macro Environment:a) Political Environmentb) Cultural Environmentc) Economic Environmentd) Technological Environment


What is the brand name that comes to your mind when you hear the word “NOODLES ”?

STORY OF MAGGI 2-MINUTE NOODLES

•It’s a Brand of instant noodle made by Nestle India Ltd.

•It was founded by the Maggi family in Switzerland in the 19th century..

•The Brand is popular in:• -Australia• -India• -Pakistan • -Malaysia• -New Zealand• -Singapore• -South Africa

Taste Bhi, Health Bhi PRODUCT VARIANTS

(CONT.)

•NIL’s promotions positioned the noodles as a ‘convenience product for mothers & as a ‘fun’ product for children.

•The noodle’s tagline , ’Fast to Cook, Good to Eat’ was also in keeping with this positioning.

•They promoted the product further by distributing free samples, giving • gifts on return of empty packets ,etc.

• Effective Tagline Communication.

PRODUCT DIFFERENTIATION

Product differentiation strategy means how a particular product is different from others on the basis of:

Form, Features Performance quality Convenience Durability, Reliability, Style……….

the form shape, size, physical structure of Maggi is very attractive as it is easy to carry, comes in various packs and sizes according to customers convenience..

The various features of Maggi noodles are first of all its perfect taste according to the Pakistan touch & spices

MAGGI: PROMOTION

Sales PromotionExchange schemesPrice-off offerScratch n Win OffersMoney back offer..Sponsor school quiz..Awareness campaign..

Advertisement

Effective Taglines

F

SUPPLIERSDistributors, Raw material suppliers,

PackagingF

F

F

F

NEW ENTRANTSFoodles

INDUSTRIAL RIVALRYTop Ramen,

Chowmein etc

BUYERSCustomer of Mindset, Brand image

SUBSTITUTESChowmein, fast

Food, Pasta

PORTER’S FIVE FORCES MODEL

SEGMENTING TARGETING POSITIONING

AGE KIDS FAST TO COOK, GOOD TO EAT

EATING HABITS YOUTH 2-MINUTE NOODLES

LIFESTYLE OFFICE GOING PEOPLE

TASTE BHI, HEALTH BHI

WORKING WOMEN

STP ANALYSIS

MARKET PENETRATION STRATEGIES Promotional campaigns in school.

Advertising strategies: Focusing on kids

New product innovation according to the need of consumers: -Veg. Atta Noodles -Dal Atta Noodles

Availability in different packages: -50 gms -100 gms -200 gms -family packs(400 gms)

Conducting regular market research.


MARKET SEGMENTATION OF SOME OTHER PRODUCTS

Geographic Segmentation Weather: Nescafe Ice: Summer Nescafe Classic: WinterDemographic Segmentation Age: Lectogen: Lactogen 1 is for babies less than 7 months

Lectogen 3 Is for babies below 12 months

Cerelac: For under 1 year baby

Nido: For children of 2 year

NESTLE MARKET COMMUNICATION


ISSUES OF NESTLE CODuring 1978-81 Nestle face decline situation in profits . The profits ratio was less then 4%.Was very difficult situation for company , then company change some executive positions and solve the situation CHILD LABOUR ISSUE PROBLEM SOLUTION

The use of child labor in cocoa production Introduces the nestle supplier code

• Because of the poverty and a lack of schools

• Violation of child labour law Monitoring all participants in its supply chain and set clearer labor standards

• Enslaved children and child trafficking Give special training on how to address child labor problem



CON….

Water issues in AsiaPackaging claims (2008)

Nestlé baby formula boycott Chocolate price fixing in Canada Ukrainian boycott (2015)

CEO Statement about issuesEvery company have its own problem whether small or big company. This also including Nestle

company either internal or external problems.You can have slow and steady change, and that is nothing to be ashamed of”, - CEO Brebeck Lemathe

WORKING ENVIRONMENT

Creative culture: Less functional barriers High quality standers Team working Risk taking Encouraging innovation and flexibility Employee can take initiative Career development Expanding market share Result-oriented and competition High level of R & D Market research to reduce uncertainty


COMPANY MESSAGE

Nestle co. Story is based on 150+ years of glory to serving people with focusing our basic Good Food Good Life

we always focus on hygiene factors and best quality products .Our keen mission to serve people with same and much better standers as we did last 150+ years and many more coming years .

CONCLUSION: The advent of consumer food products has brought a immense

change in the field in the consumers food habit. Nestle has done well to enhance its customers loyalty operating as a market challenger in its industry. Nestle is one of the largest food processing company. Their products and quality mainly depends on their experience and efficiency. Nestle believe on quality that leads to good business and good development. It has segmented the market based on certain clustered preferences deploying multi-stage segmentation approach to meet individual needs of the customers. Offering new products would also close its existing products gaps to a great extend ensuring satisfaction and loyalty.
