14 nestle project[1]

PROFILE OF THE COMPANY

Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by

Henri Nestlé and is today the world's biggest food and beverage company.

Sales at the end of 2004 were CHF 87 bn, with a net profit of CHF 6.7 bn.

We employ around 247,000 people and have factories or operations in

almost every country in the world.

The Company's strategy is guided by several fundamental principles.

Nestlé's existing products grow through innovation and renovation while

maintaining a balance in geographic activities and product lines. Long-term

potential is never sacrificed for short-term performance. The Company's

Submitted by SUHAS S DHAGE. 1

priority is to bring the best and most relevant products to people, wherever

they are, whatever their needs, throughout their lives.

BACKGROUND

Nestle was promoted by Nestle Alimentana, Switzerland, a wholly owned

subsidiary of Nestle Holdings Ltd., Nassau, Bahama Islands. Nestle is one of

the oldest food MNC operating in India, with a presence of over a century.

For a long time, Nestle India’s operations were restricted to importing and

trading of condensed milk and infant food. Over the years, the Company

expanded its product range with new products in instant coffee, noodles,

sauces, pickles, culinary aids, chocolates and confectionery, dairy products

and mineral water.

Nestle was incorporated as a limited company in 1959. In 1978, the

Company issued shares to the Indian public to reduce its foreign holdings to

40%. Its name was changed from Foods Specialties Ltd. to the current name

in 1981.The parent held 51% stake in the company as at 2000 end. It has

FIPB approval to hike stake by 10% and has been gradually acquiring shares

from the open market. Parent stake in the company as at 2001 end stood at

53.8%. The parent plans to continue hiking stake through open market

purchases.

Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading

branded food player in the country. It has a broad based presence in the

foods sector with leading market shares in instant coffee, infant foods, milk

products and noodles. It has also strengthened its presence in chocolates,


confectioneries and other semi processed food products during the last few

years. The company has launched Dairy Products like UHT Milk, Butter and

Curd and also ventured into the mineral water segment in 2001. Nestle’s

leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch

and Pure Life.

PLANT LOCATIONS

Nestle started its manufacturing operations with Milkmaid in 1962 at Moga

factory. Manufacturing of Nescafe started in 1964 at the same factory. The

company set up another factory at Cherambadi in Tamil Nadu, for

manufacture of infant foods, coffee etc. For almost two decades there were

no new additions of manufacturing facilities due to restrictive policy

environment. The company set up its Nanjangad (Karnataka) factory in 1989

and the Samlakha (Haryana) factory in 1992. The Ponda (Goa) factory

started operations in 1995. The Company set up its sixth manufacturing unit

in 1997 at Bicholim in Goa

BUSINESS PRINCIPLES

Since Henri Nestlé developed the first milk food for infants in 1867, and

saved the life of a neighbor’s child, the Nestlé Company has aimed to build a

business based on sound human values and principles.


While our Nestlé Corporate Business Principles will continue to evolve and

adapt to a changing world, our basic foundation is unchanged from the time

of the origins of the Company, and reflects the basic ideas of fairness,

honesty, and a general concern for people.

People first

Employees, people and products are more important at Nestlé than systems.

Systems and methods, while necessary and valuable in running a complex

organization, should remain managerial and operational aids but should not

become ends in themselves. It is a question of priorities. A strong orientation

toward human beings, employees and executives is a decisive, if not the

decisive, component of long-term success.

Quality products

Our focus is on products. The ultimate justification for a company is its

ability to offer products that are appealing because of their quality,

convenience, variety and price -- products that can stand their ground even

in the face of fierce competition.


Long-term view

Nestlé makes clear a distinction between strategy and tactics. It gives

priority to the long-range view. Long-term thinking defuses many of the

conflicts and contentions among groups -- this applies to employment

conditions and relations with employees as well as to the conflicts and

opposing interests of the trade and the industry. Of course, our ability to

focus on long-term considerations is only possible if the company is

successful in the struggle for short-term survival. This is why Nestlé strives

to maintain a satisfactory level of profits every year.

Decentralization

Switzerland is home to Nestlé's Swiss subsidiary, its international

headquarters and the registered office of Nestlé's holding company, but

Nestlé does not regard its Swiss headquarters as the center of the universe.

Decentralization is a basic principle of Nestlé. Our policy is to adapt as

much as possible to regional circumstances, mentalities and situations. By

decentralizing operational responsibility, we create strength and flexibility

and are able to make decisions that are better attuned to specific situations in

a given country. Policies and decisions concerning personnel, marketing and

products are largely determined locally. This policy creates stronger

motivation for Nestlé's executives and employees and a greater sense of

identification with Nestlé's business. It is not Nestlé's policy to generate

most of its sales in Switzerland, supplemented by a few satellite subsidiaries

abroad. Nestlé strives to be an "insider" in every country in which it

operates, not an "outsider."


Uniformity

A very important concern at Nestlé has to do with uniformity: how

consistent Nestlé's principles, policies, rules of conduct and strategies should

be, and to what extent they should differ depending on the country,

subsidiary, region, branch or group of products. In general, Nestlé tries to

limit the uniformity of its policy to a requisite minimum. This minimum is

then systematically enforced, unless there are compelling reasons in a given

market that justify deviation from policy.

Diversification

Nestlé does not want to become either a conglomerate or a portfolio

manager. Nestlé wants to operate only those businesses about which it has

some special knowledge and expertise. Nestlé is a global company, not a

conglomerate hodgepodge. We regard acquisitions and efforts at

diversification as logical ways to supplement our business, but only in the

context of a carefully considered corporate marketing policy.

Nestlé is committed to the following Business Principles in all countries,

taking into account local legislation, cultural and religious practices:

Nestlé's business objective is to manufacture and market the

Company's products in such a way as to create value that can be

sustained over the long term for shareholders, employees,

consumers, and business partners.

Nestlé does not favor short-term profit at the expense of successful

long-term business development.


Nestlé recognizes that its consumers have a sincere and legitimate

interest in the behavior, beliefs and actions of the Company behind

brands in which they place their trust and that without its consumers

the Company would not exist.

Nestlé believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct, although in certain areas, additional

guidance to staff in the form of voluntary business principles is

beneficial in order to ensure that the highest standards are met

throughout the organization.

Nestlé is conscious of the fact that the success of a corporation is a

reflection of the professionalism, conduct and the responsible attitude

of its management and employees. Therefore recruitment of the right

people and ongoing training and development are crucial.

Nestlé continues to maintain its commitment to follow and respect all

applicable local laws in each of its

Research and development

The Nestlé research and development centers have two main tasks: to create

new products and manufacturing processes and to improve those that already

exist. These centers play a key role in product safety and quality and also

have their role in conserving resources and protecting the environment.

Environmental concerns are an integral part of any development process to

ensure that our future commercial operations meet the desired criteria.

The Nestlé Research Center provides the scientific support needed to

prevent and solve environmental problems arising in the development

groups as well as manufacturing. In addition, studies are carried out to find


new ways of using industrial residues to create valueadded byproducts. This

will reduce total emissions and effluents.

The Nestlé development centers prepare environmental impact studies for

new products and manufacturing processes. These cover all aspects, from

raw materials, through processing, to the final packed product. These

analyses provide additional elements for use in deciding whether to

commercialize a new product, or to introduce a new or modified process.

Foresight

At present, the world faces daunting questions about its ability to provide

enough wholesome food for everyone. Malnutrition and poor eating habits

are still serious problems in many developing countries. By 2100, the

world's population will double. Will it be possible to feed a world with so

many inhabitants? At Nestlé, the big picture is all about feeding the world

and providing food and nutrition for an ever-growing population. Our

response to this situation is to intensify research, strive for innovations and

improve quality.

Flexibility and simplicity

The public's sense of the power and size of a corporation is often inaccurate,

for a company's power is limited by a host of factors including legislation,

competition, regulatory bodies and publicity. From a business point of view,

it is desirable for a firm to achieve the size best suited to a specific industry

or mode of production. To be competitive internationally and make

significant investments in research and technology, a larger company has an

advantage. From a strictly organizational point of view, flexible, simple


structures work best and excessively large units should be avoided whenever

possible. In both respects Nestlé has a natural advantage: Although it is a big

company, it is spread out over many countries and each of Nestlé's factories

has its own management and responsibility.

Handling of raw materials

The Nestlé Group is in principle not directly involved in primary production

of raw materials and other food ingredients. In general we use locally

available raw materials and purchase them either directly from producers or

through existing trade channels.

Raw materials have to meet clearly established quality criteria and are

checked for possible contaminants including environmental contaminants.

Our purchasing specifications comply not only with legal requirements but

go further to ensure highest safety and wholesomeness of our products.

Whenever possible we give preference to those goods for which

environmental aspects have been taken into consideration. In those cases

where the required agricultural raw materials are not available locally, but

the natural production conditions exist, we encourage local production and

provide assistance for cultivation and dairy farm management.

We support plant growing and livestock husbandry methods which:

preserve and improve natural soil productivity and economize and

protect water resources

allow the lowest, most appropriate and safe use of agro-chemicals

use the least energy.


Packaging

Manufacturing comprises all unit operations necessary to transform

perishable raw materials into finished products, with the aim to make them

safe and convenient for the consumers. The manufacturing activities of the

Nestlé Group:

respect natural resources by efficient use of raw materials and energy

minimize waste generation and emissions

ensure environmentally safe disposal of all waste which cannot be

recycled.

Regular assessments of processing practices are carried out. These

assessments include:

evaluation of individual plant performance with regard to operations

which have an impact on the environment

definition of targets for improvement

review of plant compliance with local government regulations,

company environmental standards, as well as results achieved in

comparison with targets for improvement

full investigation of incidents which may affect the environment.

Information on developments in environmental protection technology and

practices is disseminated as required to ensure that all plants are using the

most effective environmental practices for their type of processing. This

applies also for co packers.

Marketing and distribution


Marketing is based on the principle of satisfying consumer needs. This is the

foundation also for the environmental marketing approach of Nestlé.

Environmental product claims in advertising, promotional material and on

packaging are in accordance with legal requirements, based on solid

scientific evidence and used in a serious and reasonable manner.

Our aim is to minimize wastage in communication, publicity and

promotional material, in particular through more precise targeting of

marketing activities.

Consumer promotions and merchandising material such as consumer offers,

instore promotions, display material, leaflets, printed matter, etc. take

environmental aspects into account.

This means due consideration of environmental impact in selecting both

materials and printing methods.

In distribution, energy efficient and pollution controlled methods are

encouraged wherever possible.

Information, communication and education

Nestlé's policy is designed to provide correct and coherent information on

the activities of the Group.

Activities related to the environment benefit from the same treatment and

their communication is secured through all currently available means inside

and outside the Group.


It is furthermore Nestlé's duty to create awareness, to train and motivate

employees on their personal responsibility with regard to the protection of

the environment.

Legislation and regulations

It is the policy of the Nestlé Group to strictly comply with all laws and

regulations relevant to our activities. We participate in discussions on food

legislation and regulations between international organizations, government

representatives, industry, the scientific world and consumer associations. We

also apply this policy to environment related matters.

In doing so, we cooperate with legislators through local industry

associations in order to promote laws and regulations in the field of

environment which are reasonable, rational, realistic, applicable and

enforceable. We oppose unjustified bans and any other discriminatory

measures.

We favor the harmonization of food regulations in order to remove existing

trade barriers and to avoid the creation of new ones. This applies also to

environmental issues. We favor the exchange of information, of experience

and of knowledge between the various interested parties.

Thanks to all these synergies, we can contribute to valuable discussions and

be recognized as an active partner in helping authorities to formulate

comprehensive strategies in the field of the environment.

THE NESTLÉ POLICY ON THE ENVIRONMENT


Nestlé respects the environment and is committed to environmentally sound

business practices throughout the world, thus taking into account the need to

preserve natural resources and save energy.

This commitment is put into practice by considering local legal requirements

as a minimum standard. If these do not exist, our internal rules, adjusted to

local conditions, apply. Research and Development and new investments

include an evaluation to ensure environmentally appropriate products,

packaging and processes.

Management and personnel within the Nestlé organization worldwide are

encouraged to help resolve environmental problems within their own sphere

of influence.

NESTLE’S BRANDS

Quality and nutritional value are the essential ingredients in all of the

nestle’s brands. Millions of people prefer Nestlé products every day, happy

with the addition to their wellness that they bring. If you are looking for a


specific brand our product, just use the alphabetical index below to jump

straight to a listing. Or you can explore by category.

Baby Foods


The production of infant food goes right back to the origins of the Nestlé

Company. Henri Nestlé's 'Farine Lactée' was the first product to bear the

Nestlé name.

In 1867 a physician persuaded Henri Nestlé to give his product to an infant

who was very ill — he had been born prematurely and was refusing his

mother's milk and all other types of nourishment. Nestlé's new food worked,

and the boy survived. From the very beginning, Nestlé's product was never

intended as a competitor for mother's milk. In 1869, he wrote: "During the

first months, the mother's milk will always be the most natural nutrient, and

every mother able to do so should herself suckle her children."

The factors that made baby foods success in the early days of the Nestlé

company — quality and superior nutritional value — are still as valid today

for the wide range of infant formula, cereals and baby food made by Nestlé.

The World Health Organization (WHO) recognizes that there is a legitimate

market for infant formula, when a mother cannot or chooses not to breast

feed her child. Nestlé markets infant formula according to the principles and

aims of the WHO International Code of Marketing Breast Milk Substitutes,

and seeks dialogue and cooperation with the international health community

and in particular with the WHO and UNICEF, to identify problems and their

solution. Nestlé's expertise as the world's leading infant food manufacturer,


gained over more than 125 years, is put at the disposal of health authorities,

the medical profession and mothers and children everywhere.

Chocolate & Confectionery

The story of chocolate began in the New World with the Mayans, who drank

a dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua

and used the cocoa bean for currency. In 1523, they offered cocoa beans to

Cortez, who introduced chocolate to the Old World, where it swiftly became

a favorite food among the rich and noble of Europe. Nestle forayed into

chocolates & confectionery in 1990 and has cornered a fourth share of the

chocolate market in the country.. It has expanded its products range to all

segments of the market The Kitkat brand is the largest selling chocolate

brand in the world. Other brands include Milky Bar, Marbles, Crunch,

Nestle Rich Dark, Bar-One, Munch etc. The sugar confectionery portfolio

consists of Polo, Soothers, Frootos and Milkybar Eclairs. All sugar

confectionery products are sold under the umbrella brand Allen's. Nestle has

also markets some of its imported brands like Quality Street, Lions and After

Eight. New launches such as Nestle Choco Stick and Milky Bar Choo at

attractive price points to woo new consumers. Chocolate confectionery sales

registered a strong 21.5% yoy growth in 2001 aided by good volume growth

in Munch, Kitkat and Classic sales. Nestle relaunched Bar-One during the

year.


From the beginning, turning raw, bitter cocoa beans into what one 17th

century writer called "the only true food of the gods" has been a fine art, a

delicate mixture of alchemy and science.

Ice Cream

There are many myths and stories as to the invention of ice cream: was it

Marco Polo who brought it back from China (along with pasta)? Probably

not, considering he most likely never visited China.

The story of its popularity is however connected with the invention of

technology to make it on an industrial scale, and to keep it cold once made.

Before refrigeration techniques, food was frozen with the aid of ice, mixed

with salt, which was either stored in ice houses or shipped from cold

countries. But then at the end of the 19th century, both making and freezing

it became easier, and together with the invention of the ice cream cone,

made the product boom.

Today, the United States is the absolute leader in terms of volume

consumed, but the highest per head consumers are in New Zealand. Flavors

you'd never have thought of and yet they're commercially available:


Sorbets - Smoked Salmon, Tomato, Cucumber

Ice Creams - Garlic, Avocado, Sweet corn.

The ice cream cone is the most environmentally friendly form of packaging.

A Syrian from Damascus, Ernest E Hamwi is credited with its invention.

Apparently, during the 1904 St Louis World's Fair, his waffle booth was

next to an ice cream vendor who ran short of dishes. Hamwi rolled a waffle

to contain ice cream and the cone was born.

Prepared Foods

Convenience foods — packaged soups, frozen meals, prepared sauces and

flavorings —date back more than a century. With the Industrial Revolution

came factory jobs for women and less time to prepare meals.

The problem was so widespread that it became the object of intense study in

1882 by the Swiss Public Welfare Society, which offered a series of

recommendations, including an increase in the consumption of vegetables.

The Society commissioned Julius Maggi, a miller with a reputation as an

inventive and capable businessman, to create a vegetable food product that

would be quick to prepare and easy to digest. The results — two instant pea


soups and an instant bean soup — helped launch one of the best known

brands in the history of the food industry. By the turn of the century, Maggi

& Company was producing not only powdered soups, but bouillon cubes,

sauces and flavorings.

.Maggi merged with Nestlé in 1947. Buitoni, the authentic Italian brand,

which has been producing pasta and sauces in Italy since 1827, became part

of the Nestlé Group in 1988.

Beverages

Beverages like coffee, tea and health drinks contribute to about 30% of

Nestle’s turnover. Beverage sales registered a 15% yoy growth during 2001.

While about 14% of sales come from domestic market, exports contribute to

about 16% of sales.


Nestle's Nescafe dominates the premium instant coffee segment. Nestle’s

other coffee brand Sunrise has also been relaunched under the Nescafe

franchise to leverage on the existing equity of the brand. Nestle has focused

on expanding the domestic market through price cuts and product

repositioning. However it has been losing share in the domestic market,

where it has a 37% market share. Milo, a brown-malted beverage was

launched in 1996. It has an estimated volume share of about 3% in the

malted food drink segment. Nestle has launched non-carbonated cold

beverages such as Nestea Iced Tea and Nescafe Frappe during 2001.

Nestle is one of the largest coffee exporter in the country. Key export market

is Russia, besides Hungary, Poland and Taiwan. Nestle has received an

award for highest export of instant coffee and highest export of coffee to

Russia and CIS for FY00 and FY01. Turnover contribution from exports

registered a 17.5% volume growth in F12/01. Nescafe sales to Russia

accounts for 80% (Rs2.5bn) of Nestlé’s Rs3bn export turnover.


QUALITY

Everyday, millions of people all over the world show their confidence in us

by choosing Nestlé products. This confidence is based on our quality image

and a reputation for high standards that has been built up over many years.

Quality is the cornerstone of our success

Every product on the shelf, every service and every customer contact helps

to shape this image. A Nestlé brand name on a product is a promise to the

customer that it is safe to consume, that it complies with all regulations and

that it meets high standards of quality. Customers expect us to keep this

promise every time.

Under no circumstances will we compromise on the safety of a product and

every effort must be made to avoid hazards to health. Likewise, compliance

with all relevant laws and regulations is a must and is not negotiable. People,

equipment and instruments are made available to ensure safety and

conformity of Nestlé products at all times. The effort is worth it. Companies

with huge quality standards make fewer mistakes, waste less time and

money and are more productive. They also make higher profits. Quality is

their most successful product. It is the key to their success, today and

tomorrow.

The customer comes first

Nestle want to win and keep customers: distributors, supermarkets, hotels,

shopkeepers and the final consumers. They have very different requirements.

Trade customers expect excellent service, correct information and timely

delivery. Consumers consider taste, appearance and price when they make


their choice. Its task is to understand what customers want and respond to

their expectations rapidly and effectively. We serve various groups of

consumers and there is demand for products at different levels of perceived

quality and price. All customers, however, expect value for their money –

good quality at a reasonable price.

When offering quality to customers we also mean environmental quality.

Nestlé shares society’s concern for the environment and is committed to

environmentally sound business practices throughout the world.

Customers are central to their business and they always respect their needs

and preferences.

Competition

Baby food and Instant coffee are categories where brand loyalties are very

strong and Nestle is the market leader. HLL is a significant competitor to

Nestle in instant coffee; while Heinz is the main competitor in the baby

foods market. The market for culinary products, semi-processed foods such


as noodles, ready mixes for Indian ethnic breakfast and sweets, is largely an

urban market. HLL and Indo Nissin Foods are the main competitors in these

product segments. Nestle has also achieved a significant 25% share in the

chocolate/confectionery market. The company has recently expanded its

dairy products portfolio to include, milk, curd and butter. The company also

forayed into the bottled water segment with the launch of its Perrier brand

in the premium mineral segment and Pure Life in the purified water

segment.

Quality is a competitive advantage

We live in a competitive world and must never forget that their customers

have a choice. If they are not satisfied with a Nestlé product, they will

switch to another brand. Their goal, therefore, is to provide superior value in

every product category and market sector in which we compete. The pursuit

of highest quality at any price is no guarantee for success, nor is a single-

minded cost-cutting approach. Lasting competitive advantage is gained from

a balanced search for optimal value to customers, by simultaneous

improvement of quality and reduction cost. Success can never be taken for

granted. We must watch and learn from our competitors. If they do

something better, we must improve our own performance. We can achieve

competitive advantage through Quality.

Quality is a joint effort

Operating companies are fully responsible for maintaining agreed quality

standards. Not only Production units, but also Marketing, Purchasing,

Distribution and Sales have a vital role to play in providing quality to


customers. This implies a thorough knowledge of the products and services

we offer.

Quality units at different levels of the organization provide specific support,

promote quality awareness, assume guardianship and audit the system.

Quality departments monitor operations against agreed standards and must

intervene in case of non-conformity. Quality policy and principles, the

mandatory standards and the recommended tools for implementation are laid

down in the Nestlé Quality System which is applicable throughout the

group. Further directions are given through instructions, norms and

guidelines, often specific to a product.

Our business products, such as raw material producers, packaging suppliers,

contract manufacturers and distributors are expected to share our concern for

Quality. They too must set up an adequate quality system, so as to meet our

requirements consistently. The quality efforts must be shared by every

function and department in the company as well as our business partners.

Quality is made by people

Adequate equipment, procedures and systems are needed to make Quality;

so are involved and dedicated people. Each and every Nestlé employee must

do his best to provide quality products and services. Training and teamwork

are crucial to the successful implementation of high quality standards.

Continuous training ensures that everyone understands his tasks and has the

necessary skills to carry them out. Teamwork allows us to achieve results

that are greater than the sum of individual efforts. We motivate employees

by demonstrating management commitment to Quality, by setting

challenging goals and by giving them responsibility and recognition. It is


through employee involvement that goals and targets can be achieved in the

shortest time. Quality must be a way of life for everyone in the company.

Quality is action

Quality is the result of deliberate action. It is the responsibility of senior

managers to communicate the quality objectives and to provide the resources

necessary for their implementation. It is then up to all employees to make

Quality happen throughout the company. Progress is followed by listening to

our customers and by measuring our performance. Shortcomings and

mistakes must be analyzed and corrected. Problems must be anticipated and

prevented before they occur. We also must identify and take advantage of

opportunities.To stand still is to fall behind. So we must strive for

continuous improvement in every area. It is through many small

improvements as well as through major breakthroughs that we will achieve

excellence. At Nestlé, Quality is our first priority. Let us practice it every

day.

Consumer Services

At Nestlé, we are committed to offering consumers high-quality food

products that are safe, tasty and affordable. The Nestlé Seal of Guarantee is a

symbol of this commitment.


We also believe in maintaining regular contact with our consumers. This

applies both to how we present our products and to how we address our

consumers' questions and concerns. When Henri Nestlé prepared his first

boxes of infant formula for sale, he put his address on the packages so

people would know where to go if they had questions. Today, our Consumer

Relationship Panel with the words "Talk to Nestlé" expresses the same

commitment.

This is why we have a worldwide Nestlé Consumer Services network

devoted to caring for our consumers. Our people have expertise in a wide

range of areas such as nutrition, food science, food safety and culinary

expertise. They provide the prompt, efficient and high quality service that

consumers expect from Nestlé.

In addition, we teach them talk with consumers and above all, to listen.

Listening helps us to understand what people want. Nestlé uses the insights

gained from relationships with consumers to drive product development.

At Nestlé, we care for our consumers because our success depends on

meeting their needs and expectations. Through listening and understanding,

we can make products that they will want to use all through their lives.


FUTURE PROSPECTS

Nestle is focused on product expansion and improvement of distribution

efficiency. The Dairy business is being expanded and is expected to drive

growth in the long run, although short-term profitability may be impacted in

the investment stage. The company’s entry into the mineral water segment is

a concern, as the segment is already overcrowded and the company faces

stiff competition especially from the Cola manufacturers. Acquisition of an

established brand could catapult Nestlé’s position in the segment. In

categories like beverages, culinary products and chocolate confectionery, the

company is looking at driving growth through launch of smaller SKU’s, thus

enabling affordability to a wide section of the population.
