NESTLE INDIA LIMITED

HISTORY Henri Nestle combined cow’s milk with

wheat flour and sugar to produce a substitute of mother’s milk for does children who couldn’t accept breast feeding

He also began manufacturing and selling carbonated mineral water.

The company was involved in the production of nuts oil, rum, and vinegar.

Nestle launched the world’s first instant coffee in 1938.

By the 1960’s Nestle was one of Switzerland's biggest company with over 200 factories around the world.

OBJECTIVE

To be the world’s largest and best brand food manufacturer.

Eight of the thirty selling products out include nestle logo.

Not only make well selling products but be the best in the food market

NESTLE’S LOCATION

Nestlé Offices Worldwide

HEADQUARTERS:Nestlé S.A.Avenue Nestlé 551800 VeveySwitzerland

in india atGurgon, hariyana.

MISSION & VISION Vision

Using research make better food so that people live better life

missionStrives to a leader in nutrition,

health and wellness

INFANT FORMULA INDUSTRYDevelopment and marketing of milk food product for infants begin in 1867 - Creation of the product progressed due to the urgent need of a substitute for infants who could not consume any food

Infant formula foods were matured around the 1920’s - As an alternative to breast milk Sales boost after WWII and reached it climax in 1957 Market took a downturn around 1970’s - Nestle’s decided to market to countries like Africa, South South Africa, and Far East because of population growth

Infant Formula Industry Cont.

Total sales including of infant formula and other milk products was about $3.2 billion.

Nestle makes up about 40-50% of the market in developing countries -U.S. companies American Home Products, Bristol

Meyers, and Abbot Labs make up about 20%

- Foreign corporations come in at about 20-30%

- $600 million of sales came from

developing countries

The market in 2011 was expected to grow at about 20 to 30 % per year

Nestlé’s Company Owns and controls various companies in the food and cosmetics

industry - I973 Nestlé benefits from catering services, restaurants, and

hotel operations with the Stouffer Corporation -1975 the company bought food processor Libby, McNeil & Libby -1979 Beech-Nut the baby food maker became apart of the list

In 1980 the company expanded it marketing of products to countries like Europe, Africa, North America, Latin America, The Caribbean, Asia, and Oceania

- Diary products, instant drinks, and culinary/sundry were among the top three

- Infant foods, Infant formula, and dietetic tallied in at less than 10 percent of the corporation’s sales

Generated Sales of billion in

Nestle’s Marketing Practices Nestle’s marketing strategies seem to be

somewhat forceful

Marketing of the nestle came in many forms which include radio, newspaper, magazines, billboards, and loudspeakers, TV ads

Free samples of bottles, nipples, and measuring spoons were given out to consumers

Conducting school level competitions

Market their product through celebrities

Nestle’s Marketing Practices cont.,,

Segmentation: based on lifestyle and habits of urban and rural

families Targeting: family, kids, office gores Positing: with statement such as “2 minute noodles'”

“easy to cook” “mint with hole” “have a break, take kit Kat”

Differentiation: taste, flavor, quality, packaging

MARKETING CONT.,,

PROMOTION STRATEGY FOR MARKET EXPANSION AVAILABILITY OF NESCAFE ENHANCED THROUGH AN

EXPANSION OF THE VENDING MACHINE NETWORK. NEW CONSUMPTION OPPORTUNITIES FOR

CHOCOLATES

AND CONFECTIONERY WERE IDENTIFIED AND DEVELOPED IN AREAS LIKE RAILWAY PLATFORMS, COLLEGE CANTEENS AND MAJOR EVENTS.

NESTLE SET UP ‘CAFÉ NESCAFE’ AND ‘COFFEE CORNERS’

ACROSS METROS AND MINI-METROS.

S.W.O.T ANALYSISStrengths

Own largest worldwide baby food company (Gerber)

World’s #1 food company in terms of sales ($104+ million net in 2008)

World leader in coffee (Nescafe)

Weaknesses

History of poor accusations and lawsuits

Violations of world health organization codes

Opportunities

Joint ventures with general mills, coca-cola, L'Oreal, Jenny Craig and Colgate-Palmolive

Once Nestle sells its share with Alcon they will be able to focus on the food and beverage aspects of the business

Threats

Biggest competitors are Cadbury, Britannia, Hatsun and GSK, etc,,,

Repeating past unethical behavior

Nestlé’s Main Brands Nestlé expands across many different markets

including beverages, ice cream, baby foods/formulas, soups, frozen foods, snacks, pet care and of course candy. Some of Nestlé’s main brands include:

Kit Kat, Polo, Milkmaid, Crunch, Quality Street, Milky bar

Nestea, Nescafé, Taster’s Choice, Stouffer’s, Lean Cuisine, Huckleberries, syrups Purina, Friskies, Fancy Feast, honey, jam, Ice Cream, Ice Mountain, Nescafe Sunrise, nestle munch,

EARNINGS OF NESTLE Nestle, the world's largest food company, brushed off fears of

commodity price inflation and global slowdown to post the forecast 15.8 percent rise in 2007 net profits sending its shares higher.

Like 2007 the year 2008 is also the year of global growth. In 2008, consolidated sales were CHF 109.9 billion and net profit was CHF 18.04 billion. Research and development investment was CHF 1.977 billion.

Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18% from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet products, 6% from pharmaceutical products and 2% from baby milks.

Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world.

FUTURE PLANS Nestlé India’s objective is to manufacture

and market the company’s products in such a way soas to create value that can be sustained over the long term for consumers, shareholders, employees and business partners.

Nestle aims to create value for consumers that can be sustained over the long term by offering a wide variety of high quality, safe food product sat affordable prices.

The company continuously focuses its efforts to better understand the changing lifestyles of modern India and anticipate consumer needs in order to provide convenience, taste, nutrition and wellness through its product offerings