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NAME & I.D. OF THE GROUP MEMBERS

SL NO. NAME OF THE STUDENT IDENTITY NUMBER

1 K.M.ASIF IQBAL 131-087-0-135

2 MD.RIYAD SHEIKH 131-091-0-135

3 S.M.NAZMUL ALAM 131-092-0-135

4 MD.HASAN MOLLA 131-093-0-135

5 SOHAG REZA 131-094-0-135

REPORT SUBMISSION DATE

12TH FEBRUARY 2014

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Selection of Company

According to the advise of our honurable teacher Salman Hasan,We have to

select two multinational company.

1.Unilever Group

2.Nestle Internetional Ltd.

And finally by the the discuss of our group member we have to selected the

worlds no 1 company-NESTLE

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Origin of the Report:

To expand the practical knowledge by implementing theoretical knowledge through the analysis program that would make a student to become a competitive with the world’s marketing sector. This program not only increases the knowledge but also give the idea about organizational activities before entering into an organization.BGMEA University of Fashion & Technology is one of the reputed private university in Bangladesh, has designed the curriculum of AMT,KMT & FDT course such way that international graduates will be produced. The report has been prepared as a mandatory requirement of our course MKT-1203(Principle of Marketing). It is the summarized outcome of what we have learned till now in the sectors Principle of Marketing.This summary presents a clear vision of the report with different titles. After we identify an existing company, which is Nestle, International Ltd. In our report we mainly deal with the new product line and deigned the packaging and leveling of the fruit juice. This report will help us to determine the in-depth information and stand out position in the market.We sum this philosophy up in four simple words – Good Food, Good Life - reflecting in everything we do and extending beyond what we make. On our path to being the leading food, nutrition, health and wellness company, we will continue to ensure that we do everything we can to build, nurture and develop family and community wherever we are.

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Main Contents Of the Report

SL No Name of Topic Page No

1 Introduction 4

2 Evolution of Nestle 5

3 General Principles of Nestle 6

4 Organizational Principles of Nestle 6

5 Major 10 Principles of Nestles Business Operation 7

6 Nestles Roadmap to Good Food Good Life 10

7 Brands & Products of Nestle 13

8 The Most Favourite Milkbar Range 21

9 Marketing Strategy & Segmentation Of Nestle 22

10 Marketing Mix of Nestle 28

11 Organizational Structure of Nestle 30

12 Competitors With Nestle 34

13 Quality & Safety 36

14 Nestle Quality Management System 37

15 Vision of Nestle 38

16 Conclution 40

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Introduction of NestleNESTLE, is one of the top class & leading products manufacturing company in worlds,

which starts it’s operation in 1866 by Henri Nestlé and is today theworld's biggest

food and beverage company. Nestlé employ around 250,000 people from more than

86 countries and have factories or operations in almost every country in the

world.The history of Nestlé began in Switzerland in 1867 . Henry Nestle, a chemist

from Frankfurt who had settled in Vevey, became interested in infant feeding. To

satisfy a clear need , he developed and produced a milk-based food for babies whose

mothers could not nurse them. The new product soon became well-known worldwide

under the name of “Farine Lactee Nestle ( Nestle Milk Food )”.In order to expand into

a broader category and meet more people’s needs, the Nestle Company’s first

diversification occurred in 1905 when it merged with the Anglo- Swiss Condenced

Milk Company (1866). Today, processing milk food is still the company’s chief activity

together with the other products of Nestle family such as chocolates, instant milk-

based drinks culinary products, frozen foods, ice cream, dairy products and infant

foods. Nestle is still primarily concerned with the field of nutrition, but it has also

acquired interest in pharmaceuticals and cosmetics industries. As a result of the

company’s initiative and bold activity, it has grown into a huge organization, nearly

500 factories worldwide. Nestle products are now widely distributed on all continents

and sold in more than 100 countries.

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Evolution of Nestlé: -

1867: Henri Nestle founded the company in vevey, Switzerland.

1898: Nestle purchases its first factory outside of Switzerland- viking Milk factory in Norway.

1905: Nestle merges with Anglo – Swiss condensed Milk company.

1929: Nestle merges with peter-Cailler kohler chocolates Suisses S.A.

1938: Nestle launches Nescafe – the world’s first instant coffee.

1947: Nestle merges with Alimentana S.A. with the brand Maggi.

1962: Nestle purchases Findus.

1974: Nestle becomes a significant shareholder in the cosmetics company L’Oreal.

1977 :Nestle purchases Alcon , manufacture of eye care products and kits.

1985 :Nestle purchases the food company carnation.

1988: Nestle purchases the confectionary company Rowntree Mackintosh and pasta company Buitoni –Perugina.

1992: Nestle purchases the minarel water company Perrier.

1998: Nestle purchases Spillers pet foods business.

2000: Nestle sells the findus brand in all countries except for Switzerland.

2001: Nestle merges with Ralston Purina, the premier petfood company in North America, and with unique expertise in the dry dog food area.

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General Principles Of Nestle’

Nestle is more people and product oriented than systems oriented. Systems are

necessary and useful but should never be an end in themselve. Nestle is committed

to create value for its shareholders. However, Nestle does not favour short-term

profit and shareholder value maximization at the expense of long-term successful

business development. But Nestle remains conscious of the need to generate a

reasonable profit each year.

Nestle is as decentralized as possible within the limits imposed by basic policy and

strategy decisions, as well as the group-wide need for co-ordination and

management development.

Nestle is committed to the concept of continuous improvement of its activities,

thus avoiding more dramatic one-time changes as much as possible.

Nestle organizational principles

Nestle is in favour of :

Flat organizations with few levels of management and broad spans of control,

including project teams and task forces. Networking and horizontal

communication are encouraged without blurring the authority of the managers in

the decision-making process. These principles aim to make the organizational

structure and working methods more flexible and efficient, without undermining

the basic hierarchy.

Clear levels of responsibility in the management structure. It is to avoid too many

hierarchical levels and limit staff work to those tasks necessary for the support of

line management.

Well defined ling and function responsibilities and their inter-linked character.

Nestle gives line responsibility the edge over functions in order to assure

operational speed and responsibility. However, if functional departments are

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overruled and feel strongly about a line decision, both parties should discuss the

question or refer it to the next higher level for resolution.

Having at every level of the organization a team with a leader and not a team as a

leader (teamwork with responsible leadership).

The 10 Principles of Nestles Business Operations

Consumers1 Nutrition, Health and Wellness 2 Quality assurance and product

safety

3 Consumer communication 4 Human rights in our business activities

People of Nestle5 Leadership and personal responsibility 6 Safety and health at

work

Suppliers and customers7 Supplier and customer relations 8 Agriculture and rural

development

The environment9 Environmental sustainability 10 Water

Details of This 10 major Principles

1 Nutrition, Health and Wellness

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The core aim of Nestle is to enhance the quality of consumers’ lives every day,

everywhere by offering tastier and healthier food and beverage choices and

encouraging a healthy lifestyle. This company express this via our corporate proposition

2 Quality assurance and product safety

Everywhere in the world,the Nestlé name represents a promise to the consumer that

the product is safe and of high standard

3 Consumer communication

Nestle is committed to responsible, reliable consumer communication that empowers

consumers to exercise their right to informed choice and promotes healthier diets. It

respect consumer privacy.

4 Human rights in our business activities

Nestle is fully support the United Nations Global Compact’s (UNGC) guiding principles on

human rights and labour and aim to provide an example of good human rights and

labour practices throughout our business activities.

5 Leadership and personal responsibility

The success of Nestle is based on its People people. They treat each other with respect

and dignity and expect everyone to promote a sense of personal responsibility. They

recruit competent and motivated people who respect our values, provide equal

opportunities for their development and advancement, protect their privacy and do not

tolerate any form of harassment or discrimination

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6 Safety and health at work

Nestle is committed to preventing accidents, injuries and illness related to work, and to

protect employees, contractors and others involved along the value change.

7 Supplier and customer relations

Nestle requires its suppliers, agents, subcontractors and their employees to

demonstrate honesty, integrity and fairness, and to adhere to the non-negotiable

standards. In the same way, Nestle committed to its own customers.

8 Agriculture and rural development

Nestle contribute to improvements in agricultural production, the social and economic

status of farmers, rural communities and in production systems to make them more

environmentally sustainable.

9 Environmental sustainability

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Nestle commit itselves to environmentally sustainable business practices. At all stages of

the product life cycle its strive to use natural resources efficiently, favour the use of

sustainably-managed renewable resources, and target zero waste.

10 Water

Finaly it committed to the sustainable use of water and continuous improvement in

water management. It recognise that the world faces a growing water challenge and

that responsible management of the world’s resources by all water users is an absolute

necessity.

Nestlé Roadmap to Good Food, Good Life     

Nestlé’s objectives are to be recognised as the world

leader in Nutrition, Health and Wellness, trusted by

all its stakeholders, and to be the reference for

financial performance in its industry.

This company believe that leadership is not just

about size; it is also about behaviour. Trust, too, is

about behaviour; and it recognise that trust is earned only over a long period of time by

consistently delivering on its promises. These objectives and behaviours are

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encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up our

corporate ambition.

The Nestle Roadmap is intended to create alignment for our people behind a cohesive

set of strategic priorities that will accelerate the achievement of our objectives. These

objectives demand from our people a blend of long-term inspiration needed to build for

the future and short-term entrepreneurial actions, delivering the necessary level of

performance.

Watch a short animation highlighting the company’s performance over the past year

and outlining Nestlé’s ambitions for the future:

Competitive advantages

Unmatched product and

brand portfolio

Unmatched R&D capability

Unmatched geographic

presence

People, culture, values and

attitude

True competitive advantage comes from a

combination of hard-to-copy advantages throughout

the value chain, built up over decades.

There are inherent links between great products and

strong R&D, between the broadest geographic

presence and an entrepreneurial spirit, between

great people and strong values.

Growth drivers

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Nutrition, Health and

Wellness

Emerging markets and

Popularly

Positioned Products

Out-of-home

Premiumisation

These four areas provide particularly exciting

prospects for growth. They are applicable across all

our categories and around the world.

Everything we do is driven by our Nutrition, Health

and Wellness agenda, Good Food, Good Life, which

seeks to offer consumers products with the best

nutritional profile in their categories

Operational pillars

Innovation & Renovation

Wherever, whenever,

however

Consumer engagement

Operational efficiency

Nestlé must excel at each of these four inter-related

core competences. They drive product development,

renewal and quality, operational performance,

interactive relationships with consumers and other

stakeholders and differentiation from our

competitors.

If we excel in these areas we will be consumer-

centric, we will accelerate our performance in all key

areas and we will achieve excellence in execution.

We are seeking to achieve leadership and earn that trust by satisfying the expectations

of consumers, whose daily choices drive our performance, of shareholders, of the

communities in which we operate and of society as a whole. We believe that it is only

possible to create long- term sustainable value for our shareholders if our behaviour,

strategies and operations are also creating value for the communities where we

operate, for our business partners and, of course, for our consumers. We call this

“Creating Shared Value”.

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We are investing for the future to ensure the financial and environmental sustainability

of our actions and operations: in capacity, in technologies, in capabilities, in people, in

brands, in R&D. Our aim is to meet today’s needs without compromising the ability of

future generations to meet their needs, and to do so in a way which will ensure

profitable growth year after year and a high level of returns for our shareholders and

society at large over the long-term.

Brands & Products of Nestle: Most people know us through our brands. Our portfolio covers almost every food and

beverage category – giving consumers tastier and healthier products to enjoy at every

eating occasion and throughout life’s stages including times of special nutritional need.

Here is a sample of some of our brands.

Baby foods : Cerelac, Gerber, Gerber Graduates, NaturNes, Nestum

Bottled water : Nestlé Pure Life, Perrier, Poland Spring, S.Pellegrino

Cereals : Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness, Nesquik Cereal

Chocolate & confectionery : Aero,Butterfinger, Cailler, Crunch, KitKat, Orion, Smarties, Wonka

Coffee : Nescafé, Nescafé 3 in 1, Nescafé Cappuccino, Nescafé Classic,Nescafé Decaff,

Nescafé Dolce Gusto, Nescafé Gold, Nespresso

Culinary, chilled and frozen food : Buitoni, Herta, HotPockets, LeanCuisine, Maggi, Stouffer's, Thomy

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Dairy : Carnation, Coffee-Mate, La Laitière, Nido

Drinks : Juicy Juice, Milo, Nesquik, Nestea

Food service : Chef, Chef-Mate, Maggi, Milo, Minor’s, Nescafé, Nestea, Sjora,Lean

Cuisine, Stouffer's

Healthcare nutrition : Boost, Nutren Junior, Peptamen, Resource

Ice cream : Dreyer’s, Extrême, Häagen-Dazs, Mövenpick, Nestlé Ice Cream

Petcare : Alpo, Bakers Complete, Beneful, Cat Chow, Chef Michael’s Canine

Creations, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet,Purina, Purina ONE, Pro Plan

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Infant Food   :

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; it was the first

industrially-produced infant food,

based on ‘wholesome cow’s milk’

mixed with cereals. In the middle of

the nineteenth century, one in five

children born in Switzerland in the

working class died before the end of

their first year. Increasing numbers of

mothers were going out to work, and

had no time to breast feed.

Nestle Breakfast Cereal:

Cereals have been a crucial part of

mankind’s morning meal since time

immemorial. It wasn’t until the

19thcentury that scientific research

and technological innovation, and the

influence of a group of American

health reformers, gave rise to the

crunchy foodstuff known as breakfast

cereal. Cereals and milk are still a firm

base for good nutrition.

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The First Cereal for Infants :  

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It was against this background that

Nestlé had developed his infant food

for young children. In 1867 for the

first time Nestle’s new infant food

was tested on a 15-day old boy who

was very ill. The boy was 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. Nestle believes that

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.”

By the end of nineteenth century the demand for infant food was so great that it was

soon being sold throughout Europe, Russia, USA and Australia. The factors that made

it a success then — quality and nutritional value — are still as valid today for the wide

range of infant formula, cereals and baby food manufactured by Nestlé. The World

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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

conforms its infant food formula to the principles and aim of the WHO. 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.

Snacks And Ice-Cream And Chocolate:

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 and

introduced chocolate to the Old World, where it swiftly became a favorite food

among the rich and noble of Europe.

Milk and Dairy Products:

There is plenty of evidence that milk has always been one of mankind’s

essential food. But because milk is highly perishable, the storage and shipping of dairy

products was always a problem. An American, Gail Borden changed this concept

inventing sweetened condensed milk. Soon after,Henry Nestle launched his company

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into condensed milk business. Nestle’s rival Anglo- Swiss company merged with

Nestle in 1905.

Pet Care:

Nestle entered the pet care business with the purchase of “Carnation” in 1985

and consolidated its position in Europe with the acquisition of the “Spillers” brand in

1998. “Friskies” a product by

Carnation developed in USA since

1930 and in Europe and Asia since

1960’s. Nestle’s international network

in technology, distribution and

investment has helped expand the

Friskies brand in the international

market widely. Today Nestle’s global

market for cat and dog food exceeds

$25 billions.

Cooking Items:

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The need for easy to prepare food was felt back more than a century. With industrial

revolution women got more involved in jobs and found they have less time to

prepare meals. So an alternative was needed. Julius Maggi, an inventive and capable

businessman created a vegetables food product that was quick to prepare and easy

to digest. That product is widely known as ‘Maggi’ which proved to be the best-

known brand in the history of the food industry. Maggi merged with Nestle in1947.

Now Nestle is producing not

only powdered soups but also “Bouillon Cubes”, Sauces, flavorings and a wide variety

of condiments.

Mineral Water:

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One of the recent additions to the Nestle Company is mineral water named “Perrier

Vittel S.A.” In fact, Perrier is not the first water associated with the Nestle name. The

products manufactured by the factory in 1843 were carbonated mineral water and

carbonated lemonade. For the production of this mineral water a spring at vergeze

had been utilized for more than two thousand years.

Hot And Cold Beverage:

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In 1937, after eight years of research, scientists at Nestlé’s research

laboratory formulated a powdered coffee product. It was introduced in 1938 under

the brand name Nescafé. It became so popular during World War II that for one full

year the entire output of the Nescafé plant in the USA (more than 1 million cases)

was reserved for military use only. Since then, Nescafé has become one of the world’s

best-known brands. With more than 3,000 cups consumed every second, Nescafé

has become the world’s leading coffee brand. In addition,

Nestlé is a major producer of chocolate-based and malted drinks. Its leading brands,

Nestlé Nesquik, Nestlé Milo and Nescau are very popular with a growing number of

young people in both developed and emerging markets. The Company’s other

beverage products include roasted coffees — for example Dallmayr, Zoegas and

Loumidis in Europe — as well as fruit juices. Nestlé’s ready-to-drink beverages Nestea

and Nescafé are sold in various forms (cans, bottles) frequently associated with the

Coca-Cola company.

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The Most Favourite Milkybar range

The Milkybar range consists of:

Milkybar bars – Small, Standard and Chunky

Milkybar Buttons – Small and Sharing bags

Maggie noddles range:

Original Flavour

Chicken

Curry (a healthier alternative is also

sold in supermarkets)

Kari Letup (“Explosive” Curry) in

Malaysia

Laksa Lemak (discontinued)

Tom yam

Chicken & Corn

Beef

Oriental

Masala

Prawn

Dal Sambar (whole wheat noodles)

Dal Atta noodles

Asam Laksa

Cheese

Pizza (only in Saudi Arabia and

South Africa, was available for a

period of time in Australia)

Sup Tulang (bone soup) (in

Malaysia)

Tomato

Chatpata

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Marketing Strategy & Segmentation of Nestlé

The strategic plan defines the company’s overall mission and objective and hopes

to achieve company’s objectives.Through market segmentation , targeting and

positioning the company decides which customers it will serve & how.The

company also designs a marketing mix made up of factors under it control

product,price,place & promotion.

Nestle’s basic strategy is to cover all of the countries over the world.That’s why?

Because They want to keep babies & childerns healthy and ensure their proper

nutrition.That’s why majority of their products are baby food products.They also

target new generation to build a strong relationship by providing various food

products.

In the report , we are going to focus on Marketing Stratigies of Nestle is to

segment,target the potential customers & to positioning of their profit oriented

products. Their segmentations, targeting,positioning process are given below.

They want to move customers towards their products. That’s why they are offering

new products continuously. They also arrange many social competitions for babies

to entire their mind.

In this report we are going to focus Marketing Strategies of Nestle is to segment,

target the potential customers and to position of their profit oriented products.The

revelent information is given below.

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The marketing concept calls for understanding customers & satisfying their needs

better than competitors do.But different customers have different needs and it

rarely is possible to satisfy all customers by treating them alike.Market

segmentation is the identification of portions of the market thet are different from

one other.Segmentation allows the firm to better satisfy the needs of its potential

customers.

1.Clearer understanding of the needs and wants of selected customer group.

2.More effective positioning.

3.Greater precision in selecting promotional vehicles and techniques.

Geographic:

Weather: Nestle segmented its market for Nesscafe Ice based on the geographic

weather ,hot and cold.

Nescafe Ice : A coffee which can be consume with ice.During hot season consumers

consume this coffee with normal or cold water with cube to bring freshness in their

mind.

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Lactogen : Nestle brings full cream milk powder in our world.It gives baby

proper nutrition . Lactogen 1 is for babies whose age less than 7 months and 4 is

for babies whose age is below 18 months.

Income: Nestle segmented their market based on customers income in an effective

way.

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Marketing Mix of Nestle“Marketing is the process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to create exchanges

that satisfy individual and organizational goals. While strategy is the action plan

to do something and hence”

Marketing Strategy is the managerial process of developing and maintaining a viable fit

between the organization’s objectives, skills and resources and its changing market

opportunities. The aim of marketing strategy is to shape the company’s business and

products so that they yield targeted profit growth.

Marketing strategy include 4 P’s strategy i.e. Product, Price, Place and Promotion

strategies.

Product is something that is offered to the market. Nestle’s product strategy

studies show that they are positioning the product with respect to its attributes that is

safe, pure, refreshing and healthy water. Nestlé also does product line expansion;

recently it has offered a 0.25 liter bottle of Nestle in the market. It’s also using the

company name with its product name i.e. Nestlé Pure Life. NPL round shape and

elegance of the bottle are instantly recognizable. Quality is cornerstone of NPL success.

Nestle people say: “Quality is our more successful product and it is key to our success

today and tomorrow.”

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In Price strategy, Nestle has adopted the strategy of non-price competition. It is

offering one price for all over the world. It also keeps the check on distributors to

maintain single price of Nestle. It offers trade discounts to its distributors.

Placement is the distribution of the product to its customers at right time, in

right quantity, at right price and at right place. To ensure this, channel adopted by the

Nestlé for distribution of Nestle is as follows:

Producer Wholesaler Retailer Consumer

NPL comes under the category of FMCG, so for this the timely supply is very important

that’s why Nestlé is following intensive distribution strategy.

Promotion is the very important and crucial element of marketing strategy as

through it the company establishes its image in the minds of the customers. Nestle is

promoted by using different ways of promotion. Advertisement is done through TV,

radio, billboards, newspapers and magazines. Current advertising slogans are that is

trust, hope and happiness and ” Good Food,Good Life.” Nestlé also conducts the

tradeshows, concerts, events, sponsorships, and discounts for sales promotion. For

establishing public relations, Nestlé distributes its newsletters, annual reports, calendars

and diaries, lobbying, donation for charitable and civic events. For the victims of

8th October 2005 earthquake, Nestlé has donated 90 trucks, which were containing

different foods items, and was one of them which is around Rs. 2 Billion. The Nestle

organized its teams to distribute products to the effected areas and all employees

contributed from top to bottm.

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Organizational structure of Nestlé :

Sales Department

Sales department is a primary source of getting the information about the market.

Nestles workers are actually visit the market and find out that who are the competitors,

and what strategies they are adopting. They also collect the complaints of the

customers and make sure the availability of the product in the markets.

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Customer Service Department

For Every product there is customer service department. This is head office based

department i.e. every head office has its own department.

In this department, customer’s complaints are collected which are gathered through the

sales force or directly submitted by the customers. Then batch number is assigned to

these complaints and is transferred to the Marketing Department. If Marketing

Department can’t be able to solve the problem then these complaints moved to the

Quality Assurance Department, which is working in the Factory.

Nestlé believe in maintaining regular contact with their consumers. This applies both to

how it presents its products and to how it addresses its 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, Nestlé’s Consumer Relationship Panel with the words "Talk to Nestlé" expresses

the same commitment.

This is why Nestlé have a worldwide Nestlé Consumer Services network devoted to

caring for consumers. The employees 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,

employees are taught to talk with consumers and above all, to listen. Listening helps to

understand what people want. Nestlé uses the insights gained from relationships with

consumers to drive product development.

Nestlé cares for its consumers because its success depends on meeting their needs and

expectations. Through listening and understanding, it can make products that they will

want to use all through their lives.

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Research and Development Department

In Nestlé, R&D departments are localized. Its head office is in Switzerland. Nestlé has

divided the whole world into 3 zones each has its own R&D.

1. America

2. Europe

3. A.O.A. (Asia Oceania Africa)

The R&D in America Zone is in America itself, in Europe Zone, it is in France and in A.O.A.

Zone it is in Australia.

The customer complaints are forward to the R&D where research is conducted. The

results of the research and decisions are then transferred form R&D to localized offices.

Suppliers and distributors

To know about the market Nestlé has established the close relationship with their

suppliers who provide the raw material and the distributes who distribute the product

in the market. As these both have an up-to-date knowledge about the market as they

have a close interaction with the customers and also with the competitors.

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There is a chain of command that extends from upper organization levels to the lowest

levels and clarifies who reports to whom. The orders move from upward to downward

and suggestions move downward to upward direction. The continuous improvement

section is made for this purpose. It encourages employees to give their suggestions and

share the new ideas. The jobs are formalized; there are explicit job descriptions,

numerous organizational rules, and clearly defined procedures covering work

procedures. But in spite of formal rules and regulations, Nestlé keeps on changing to

keep a pace with the changing environment. So, it is strict but not rigid organization. In

effort to be more flexible and responsive, there has been distinct trend in this

organization toward decentralizing decision-making.

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COMPETITORS WiTH NEsTLE

Main Competitors – Competitive Analysis

Nestle Pure Life has two very strong competitors in the market, which are trying to

compete with Nestlé’s water brand using innovative strategies and approaches. These

are:

Aquafina Water is bottled by the Pepsi Co.

The other is Dasani which is bottled by Coca Cola Company.

Pepsi’s Aquafina’s purification of water involves the processes of charcoal filtration and

reverse osmosis. In an effort to have a competitive edge in the market they have

extended their brand to include six different varieties of fruit flavored flat water and two

varieties of carbonated water that are also fruit

flavored. Pepsi’s Aquafina water is also available in different countries with different

brand names. Pepsi has been striving hard to penetrate Nestle Pure Life’s market with

different strategies (Hanson, 2012).

9.

On the other hand, Coca Cola’s Dasani process their water through reverse osmosis

process, but once the contaminated or other materials are removed they add special

blend minerals to their water which gives its characteristic crisp flavor. They have other

flavored brands but the company has limited itself to four different flavors. Coca Cola’s

bottle water is present in different countries with different brand names i.e. Kinley

water etc.

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Although Nestle Waters bottles their product in polyethylene terephthalate (PET), this

material is 100% recyclable and does not have BPA (Bi-Sphenol A) which is known to be

organic compound used to make polycarbonate plastic. This has been declared as toxic.

In addition their bottles are an average of 30% lighter.

Nestle waters has so many brands that they can accommodate even the most

demanding customer. The line of Nestle Pure Life has flat water, flavored water and

carbonated water. Nestle Pure Life is quite different from the Aquafina and Dasani, and

Nestle has used different brand promotion strategies to promote their product. The

quality provided by Nestle Pure Life has built a strong trust and long lasting relationship

between company and consumers of its products.

Quality and Safety

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Our commitment to consumers

Quality and Safety for our consumers is Nestlé’s top priority. This applies to our entire

portfolio, from foods and beverages to all our systems and services.

Quality assurance and product safety is one of Nestlé’s 10 Corporate Business Principles

(pdf, 1 Mb), which form the foundation of all we do.

Nestlé Quality PolicyNestles actions to ensure quality and food safety are guided by the company’s Quality

Policy which describes our commitment to ------

Build trust by offering products and services that match consumer expectation and

preference

Comply with all internal and external food safety, regulatory and quality requirements

Gain a zero-defect, no-waste attitude by everyone in our company

Make quality a group-wide objective

Nestlé Quality Management System

Our Quality Management System is the platform that we use globally to guarantee food

safety, compliance with quality standards and to create value for consumers. Our

internal Quality Management System is audited and verified by independent

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certification bodies to prove conformity to internal standards, ISO norms, laws and

regulatory requirements.

Our Quality Management System starts

From farm to fork : on farms. We have a

long history of working together with

farmers in rural communities to help

them improve the quality of their

produce and adopt environmentally

sustainable farming practices.

The Quality Management System not only ensures our ongoing access to high quality

raw materials. It also enables farmers to protect or even increase their income. Often

the standard of living of entire rural communities is raised as a result. The system helps

address key global environmental and social issues.

Quality by design

Quality is built in during product development according to the requirements of the

consumers and following all food safety and regulatory requirements. Nestlé’s R&D

network applies in this “Quality by design” to all of our products.

Good Manufacturing Practices

We apply internationally recognized Good Manufacturing Practices (GMP) to ensure

quality and food safety. GMP covers all aspects of manufacturing, including standard

operating procedures, people management and training, equipment maintenance, and

handling of materials.

Vision of Nestle :

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DYNAMIC GLOBAL NETWORK: Behind every Nestlé product is a team of people

committed to creating safe products of the highest quality.

People understand that food is a source of nourishment and satisfaction, but also

pleasure, health, happiness and peace of mind. They are increasingly aware that their

food and beverage choices can impact their quality of life and affect the lives of others.

Innovation has been at the heart of our

company since its beginning. Ever since

Henri Nestlé invented Farine Lactée to

alleviate infant mortality, we have been

dedicated to enhance people’s lives.

Each day we strive to make our products

tastier and healthier choices that help

consumers care for themselves and their

families. This would not be possible

without our unmatched R&D capability,

We have the largest R&D network of any food company in the world, with 34 R&D

facilities (3 Science & Research centres and 31 Product Technology Centres

and R&D centres worldwide), and over 5,000 people involved in R&D.

Behind every one of Nestlé’s products there is a team of scientists, engineers,

nutritionists, designers, regulatory specialists and consumer care representatives

dedicated to earn our consumers’ trust with safe products of the highest quality: at

Nestlé, safety and quality are non-negotiable.

Whether it is in terms of convenience, health or pleasure, we are able and committed to

create trustworthy products, systems and services that contribute to improving the

quality of consumers’ lives.

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At Nestlé we are committed to delighting our consumers with healthy food and

beverages of the highest quality.

The role of   R&D   in quality and safety :

The R&D organisation includes a dedicated Quality and Food Safety Network. This has a

number of different elements such as:

An Early Warning Network, which identifies and helps prevent potential safety issues

A Microbiological Safety Network that provides fast and reliable microbiology safety

assessments.

An Analytical Methods Network to develop and improve analytical standards

A Global Analytical Laboratories Network. Nestlé has 29 regional testing labs that

provide analytical data and Quality Assurance support to operations and R&D.

CONCLUTIONFor a company that will turn one hundred in a decade, Nestle has almost tried all of

the strategies there can be. Nestle company has expanded internationally, helped

countries’ economies grow, be environmentally conscious and create joint ventures

with other companies in which enhanced Nestlé’s and these companies’ performance

positively. Followed are a couple of recommendations in which might enhance their

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performance which are:1.Exploit lands in poor countries, 2.Avoid actions that are

bound to fail, 3.Invest on R&D, 4.Joint ventures.

Even though the future can’t be told by looking at numbers and financial performance,

companies should extrapolate what might happen and look at all the angles of matters

in both ways, positively or negatively. This action is crucial in the business field in

order to come up with a plan to overcome these obstacles and enhance their

strengths for a better performance in the market. This report outlaid, evaluated and

analyzed Nestlé’s performance in the market along with presenting recommendations

that might help the company upgrade their activities in the market.