Nestle

STRATEGIC MANAGEMENT Presentation

On Nestlé (India)

Presented By :

Ashita Flora (28)

Archana Goyal (09)

Neha Virmani (02)

Sankalp Tyagi (18)

Aditiya Sharma (11)

Gurpreet Saini (38)

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History Introduction Mission & Vision SBUs of Nestle India - Milk & Dairy Products

- Chocolates & Confectionaries

- Beverages

- Prepared dishes & Cooking aids SWOT Analysis BCG Matrix Conclusion

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CONTENTS

History Henri Nestlé

established Nestlé in 1867 in Switzerland.

His first product was lactogen formula for infants by the name “Farine Lacteé”.


“Nestlé” is a Swiss-German word which means “Little Nest” which is its trademark.

Nestlé is the worlds’ number one food company.

5th largest company of the world according to its turn over.

2 million 31 thousand people employed from all over the world.

Over 700 products renovated or innovated in the past five years.

Introduction


Mission & Vision

Mission : “Nestle is dedicated to providing the best food to people throughout the day, throughout their lives throughout the world. With our unique experience of anticipating consumer needs and creating solutions. Nestle contributes to your well being and enhances your quality of life” .

Vision : “Our Vision is to be the leading Food & Beverage companies in the world providing customers with healthy food at affordable prices”.


Strategic Business Units (SBU’s) of Nestlé India

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STRATEGIC MANAGEMENT

Milk Products and Baby Food

Start Healthy Stay Healthy

Nestlé’s infant nutrition rooted in 1867 at Switzerland, when a local pharmacist named Henri Nestlé saved the life of a neighbour’s child.

The baby thrived on a special nourishing mixture Henri created. It was the world’s first infant formula.

In 1927 Nestle and Gerber, together have made an unwavering commitment to a healthier generation, one baby at a time.•04/08/23 •7•STRATEGIC MANAGEMENT

Children will remain a key area of business Powders have high perceived nutritional value Affordability is an opportunity for growth

“An innovative approach to fostering baby’s healthy growth and development, from birth to preschool. Giving baby nutrition designed for every stage and very smile”

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Dairy Products

Milk products and nutrition account for around 45 %of Nestlé India’s total revenues.

The culture of innovation, renovation continuous improvement and the thrust on value for money.

Provide wide variety of high quality and safe food products at affordable price.

Improving product availability and visibility and initiated efforts to make its products more relevant to the consumers.


Chocolates and Confectionaries

In view of the impressive potential for confectionery sales in the country, Nestle established an independent sales and distribution network for confectionery products.

From three main cities in 1996, it has grown into a nation-wide network.

NESTLÉ BAR-ONE NESTLÉ KIT KAT POLO NESTLÉ Eclairs NESTLÉ MUNCH NESTLÉ MILKYBAR NESTLÉ MILKYBAR Eclairs


Key Strategies… All the prices are totally based on quality, services

and organization makes sure that prices should be affordable by all the customers.

It determines the sales of its products against those of its competitors with the help of research.

Nestlé regularly uses both forms of research to gain a clear idea of consumer opinions and trends.

Every person, of any age, gender is the target customer of Nestlé.

Nestlé target its customers by know its customer needs & demands.


MUNCH It is the largest selling SKU in the

category. With less than 80 calories per serve and affordable price.

MILKY BAR Delicious Milky treat with a Calcium

Rich recipe.

POLO It is popularly described as a

‘Refreshment'. It is unique in the category – ‘The Mint with the hole'.

KITKAT It has a unique finger format with a

breaking ritual attached to it.


BeveragesGlobal coffee market segmented into– Instant Roast and Ground Chicory Nes means miracle and café means coffee

Market leader of instant coffee with 1st mover advantage Believes in innovation, improvement and thrust on value

for money 22% of company’s total revenue PLC on maturity stage (Nescafe) & growth stage ( Nestea)

PRODUCT PORTFOLIO


Which one is your favourite ?

Key Strategies …


Nescafe has targeted every segment of the market.

Low income group Middle income group High income group

Youth ( 16-30) ~ want to experience life & mature Family Builder (30-45) ~ social bonding, brings confidence,

focus No time to dream (46-60) ~ mental renewal, relax and reward

oneself

Product specialization from nescafe classic to nescafe premium torefreshingly good Nestea ( Undifferentiated to differentiated

market)

Positioned its self as the leader of coffee market setting high entry barrier for competitors. Outlets positioned on lines of theme “ Taste that gets you started ”.

Cont…

Quality product at reasonable price …

… Smaller SKUs as a move to improve visibility and availability.

Placing products in metros especially in South India .. Invasion through Penetration strategy in rural areas. Nescafe Coffee corners, Vending machines where footfalls are high.

Evolving portrayal of Nescafe as a Brand

- Wakes you up

- Perks you up

- Brings clarity to your senses

- Chance to relax & reflect

- Share a moment together

Sales and Promotion using Bundling, Discounts

1st Brand Endorser ~ Deepika Padukone04/08/23 STRATEGIC MANAGEMENT 15

sells the best drinking moment

Prepared Dishes and Cooking Aids

Standing strong on its promise of “Taste Bhi, Health Bhi”, MAGGI comes with "no added preservatives”.

Nestlé became a pioneer of industrial food production, aiming at improving the nutritional intake of worker families.

It was the first to bring protein-rich legume meal to the market, which was followed by Ready-made Soup, Atta Noodles and the newly launched “Multi Grain Noodles”.


MAGGI is revolutionizing the Indian kitchen with its latest offering based on intensive research and in depth understanding of Indian food habits and cooking practices.

E.g.: Maggi Bhuna Masala The dishes retain that “special touch” of the housewife.

E.g.: Maggi Cuppa ManiaIt is an ideal offering for the new generation pressed hard for time trying to juggle multiple roles all at once.


Key Strategies… Focus on creating distinctive image based on twin

benefit of “INSTANT” and “HEALTHY” with the emphasis on health conscious and rural market.

Conducting advertisement and promotional campaigns in schools, small towns with population more then 10,000.

Strengthen distribution channel of rural areas between 100 km of all metros.

Launch new advertisement campaigns (Radio, TV, Print media commercials) with brand ambassador.


BCG Matrix STARS :

Nestle beverages i.e. are somewhat the stars in their business, because with the high quality and new designs which comes every now and then makes them more popular among the customers.

CASH COWS : The cash cows are their baby food items i.e. nestle cerelac and other baby food products. Company has to take measures to make these products as stars.


DOGS : The pharmaceutical products are nestle Dog, because it has low-share business with low growth market.

QUESTION MARKS : The question marks are the breakfast cereals. They have high market growth but low market

Conclusion Nestle is a market leader due to different reasons :

Its price is high against its competitors but it matches its quality with its competitors.

Its packaging is good.

We can easily find Nestle from any retailer shop.

Due to its advertisement, Nestle attracts more customers & has very prosperous future if it continues to promote its products and bring all the possible innovational aspects using different product line strategies.


Nestle

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