nestle brand

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PRESENTATION ONNESTLE

BY

Nitin SrinivasaShreekar KumarJai SanthoshDanesh JainGanesh


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Nestls History1866-1905 :- The key factor which drove the early history of theenterprise that wouldbecome The Nestl Company

1905-1918 :- The Company formed by the 1905 merger was called theNestl and Anglo-Swiss Milk Company

1918-1938 :- The end of World War I brought with it a crisis for Nestl.

1938-1944 :- The effects of the onset of World War II were feltimmediately by Nestl.

1944-1975 :- The close of World War II marked the beginning of themost dynamic phase ofNestl's history

1975-1981 :- After the agreement with L'Oral in 1974, Nestl'soverall position changed

rapidly.


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1996 2002 :- The first half of the 1990s proved to be a favorabletime for Nestl: tradebarriers crumbled and world economic markets developed into aseries ofmore or less integrated trading areas.

2002-2007 :- Schller and Chef America Dairy Partners Americas (jointventure with Fonterra) Laboratoires innov (joint venture withLOral)

2003 Mvenpick and Dreyers

2005 Wagner, Protika and Musashi

2006 Creation of FoodServices Strategic Business Division (2009:Nestl Professional)Lactalis Nestl Produits Frais (associate) Jenny Craig, Uncle Tobys and

Delta Ice Cream

2007 Novartis Medical Nutrition, Gerber, Henniez

NESTLE TODAY :-

Nestle is now the world's largest food company. It is present on allfive continents has an annual turnover of 74.7 billion Swiss francs


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Our ambition

Nestl Good Food, Good Life clearly expresses what we aim to be:the global leader in nutrition, health and wellness, by offering ourconsumers a range of high-quality products that provide pleasure,

balance and a healthy diet.We want to keep this promise by creating shared value for thecompanyand for the communities everywhere we are active.

Our brands

Our unrivalled portfolio of brands and high-quality products enablesus to bepresent in the day-to-day life of our consumers, from morning to

eveningand at every stage in their lives. Around 70% of our total Food andBeveragessales come from brands that generate over CHF 1 billion each in sales.


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RESEARCH & DEVELOPMENT

Nestle, the world's biggest food Group, is also the global leader in theindustry with regard to Research and Development (R&D), No other

food company matches the R&D presence of Nestle, with a worldwidenetwork of centers in 17 locations on four continents. No other foodcompany dedicates so many human and financial resources to R&D:an international staff of 3500 engaged in the search for innovativenew products and the renovation of existing ones. Year after year,Nestle invests some 800 million Swiss francs into R&D as a major

driving force of its double strategy: to strengthen the Company'sbrands worldwide and to continue to support future long- term growthand competitiveness through innovation and renovation.At the threshold of this new millennium, Nestls objective is toconsolidate and strengthen its leading position at the cutting edge ofinnovation in the food area, in order to meet the needs and desires ofconsumers around the world, for pleasure, convenience, health andwell being.


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SCIENTIFIC DEPARTMENTS

Research at the Nestl Research Center encompasses the sensory andnutritional value of products along with consumer behavior, nutritionneeds and social desires for foods and beverages. At the forefront ofall research activities is Nestls commitment to the utmost safetyand quality. A diverse selection of scientific disciplines is necessaryfor this global approach to nutrition research.

The scientific departments currently at NRC include:

1.Bio Analytical Science2.Food Science3.Food/Consumer Interaction4.Plant Science5.Nutrition & Health


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WEAKNESSES :-

The weaknesses are as follows:

There is not much margins for retailers to prefer its sales.

They need to improve the facilities like chillers.

The distribution cost is high as compared to the competition in thelocal market.

Company mostly advertises its milk products, advertisement ofconfectionary products is not

so better.


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ITIES :-

e an opportunity to expand or capture the market by adding its produc

e the opportunity to offer snacks.

also capture the market of home appliances.

can open separate stores to eliminate retailers.

, they have created an opportunity for themselves by introducing chille

is trying to open stores in universities.

provide incentives to retailers to increase sales volume.

can enter in ice cream products


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-

ompanies are increasing their product lines that can prove to be a threars.

like Cadbury is giving more discounts to retailers as compared to distrietailers prefer its products for sale.

red to the local competitors, our distributor cost is very high. As Nestlary Products has to maintain and obey the Nestl standards.

panies are competing on the basis of cost.


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BCG MATRIX


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STARSHigh growth, High market share

Stars are leaders in business.

They also require heavy investment, to maintain its large marketshare.

It leads to large amount of cash consumption and cash generation.

Attempts should be made to hold the market share otherwise thestarwill become a CASH COW.

CASH COWSLow growth, High market share

They are foundation of the company and often the stars ofyesterday.

They generate more cash than required.

They extract the profits by investing as little cash as possible


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QUESTION MARKSHigh growth , Low market share

Most businesses start of as question marks.

They will absorb great amounts of cash if the market shareremains

unchanged, (low).

Why question marks?

Question marks have potential to become star and eventually cashcow but can also become a dog.

Investments should be high for question marks.

DOGS


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DOGSLow growth, Low market share

Dogs are the cash traps.

Dogs do not have potential to bring in much cash.

Number of dogs in the company should be minimized.

Business is situated at a declining stage.


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BCG Matrix for Nestle

St


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Stars

Nescafe (Star)

Nescafe is one of the leading coffee brands in the Indian market. It has find a dominance which is unparalleled by any other brandin the country.

Not only does it have a high market share but it growth rate is also

Significantly high.

The name Nescafe has become generic with coffee.

Ceralac (Star)


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Ceralac (Star)

Cerelac has become one of the leading baby food products

It has witnesses quite a long hold in its market share with its sales

increasing on acontinuous basis for almost more than one and a half decade.

Its different variants have kept competitors at bay and its finds aplace easily at almost

every general or provisional store in the India market.

It is a major contributor for Nestle Indias revenues.


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Cash CowsMaggi Noodles (Cash Cows)

Maggi Noodles, has more households of consumption in Indiathat any other country in the world and has become the firstpreference of Indian children in terms of instant food, is only acash cow and not a star.

Maggi Noodles has a significantly high market share in theNoodles market in India, the market growth rate of Noodleconsumption is not very high.

Number of repeat purchasers is high in case of Maggi, the rateof increase among the new purchasers is not too high.


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Question MarksMaggi Pickles (?)

Limited variety (especially in this taste crazy country)

Maggi Pickles is doubted for the twin reasons:

1.High price and packing, which seems to target it to the uppersubstrata.

2.Lack of significant number of variants poses it a challenge tomaintain itself in such households.

It is not a dog because it is not the market which has low growthrate.

The market of packaged pickle is growing but Maggi Pickles which

is unable to gather a substantial share in this growing market.

Nestle Butter (?)


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Nestle Butter (?)

Salt less

Yet to grow from its pre-launch

Huge competition from AMUL, the market leader in this field.

Nestle Butter seems to be rejected by the consumers for the reason

that its taste does not suit the Indian psyche.


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DogsNestle Dahi (Dogs)

Unaware that Nestle offers a Dahi.

Competition from Amuls Masti Dahi.

The concept of packaged Dahi is not being accepted by theconsumer who prefers to play it safe with the localmanufacturer

Lack of a growing market makes Nestle Dahi to be placed in as

a Dog.

4 Ps for instant Nescafe in India


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4 Ps for instant Nescafe in India:

We will discuss now 4 Ps of Nescafe in India and we will also describeits effects on people.

Product Price Placement Promotion

Now we will describe products of Instant Nescafe

Product:-

Nescafe has introduced three types of Nescafe in its quantities and

taste in India. It hasincreased size of the products for customers so that they can havemore choicesaccordingly. These are given below.

-NESCAF CLASSIC (250,100,50gms)-NESCAF SUNRISE Premium(250,100gms)

NESCAFE CLASSIC:


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NESCAFE CLASSIC:

NESCAFE Classic starts your day and keeps you going and going. Ithasfurther 3 types in quantities.

NESCAFE GOLDThe premium

blends of coffeethat gives you

rich taste. It hastwo further sizes.NESCAFE SUNRISE PREMIUM

A fine blend of Arabica and Robustabeans is specially granulated to retain

its fresh aroma and flavor, giving you anincomparable coffee experience

Affect of Products on people:


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Affect of Products on people:

As it has introduced different tastes and flavors in coffee in India soits getting more market

share in this beverages industry. Its going to be common now in allover India. The more

important need is to identify culture in India. But still it is having gapto consumers.

It should create awareness among people so that they can know aboutthis product and can

make its more use. So if it does, then consumers will more likely to gofor this instant coffee

instead of tea which is already common in India.

Price Strategy:


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Price Strategy:

As regards pricing strategy, mostly people in India belong to middle-class, so it needsto create reasonable pricing strategy. Now coffee is more expensiveas compared to tea.We can see that tea industry has captured more market in Indiaagainst coffee.

If Nescafe will introduce reasonable price with quality product, thenpeople can be attracted towards instant coffee of Nescafe .If we lookat the prices of Nescafe, then we can easily get to know that its muchexpensive and for elite class only. So if it doesnt concentrateon that pricing strategy, it can loose market share in this beveragesIndustry.

As few people in India are elite class, app 5-10%. So if they aretargeting this segment, then its well pricing strategy. But to getmiddle-class people as their market, they need to fix reasonablepricing strategies.

Placement:


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Placement:

If we look at its placement strategy, its available in superstores &general stores all over India. Its very easily accessible for people to

get it in more convenient way. So this part is also affecting somepeople, because its being placed in major areas of India. But ifcompare it with tea its not available in each shop. As a result, we cansay that its easily accessible to the customers if they want to use it.


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Now this campaign can also increase sales and its awareness in thepeople. People will more attract towards this product if they see thesekinds of promotional campaigns and changes.

Its lacking promotional activities in India. If it focuses on thesepromotional tools as it is described and shown above, then it can havedistinct increase in its sales, market share and also awareness to thepeople of India.

Conclusion:


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Conclusion:

As a result, Nescafe is unique product in India, all fourPs includingPrice, Products, placement and promotion are affecting people indifferent way.

But major Ps Promotion and price segments needs tobefocused more in order to capture more market in beverages industryand also to enhance its customers all over India.

As far as we discuss about the consumer behaviorabout the Nescafe,we came to know that in Indian culture, coffee is being used as thesymbol of status. There are some misconceptions that has beencreated by the elders for younger generation that coffee is harmful

for the people under the age of 40.

That is why, the Nescafe is not more in into the market.You can easily observe in Lahore that there are special coffee barslocated with high prices. Only those people go there who are rich and

take care about their status.


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FOUR PS OF CHOCO LITE

1.PRODUCT2.PRICE3.PLACEMENT4.PROMOTION

duct:-

Introducing Nestl's first Sugar Free chocolate CHOCO LITE.is known for its Varity of chocolate & now to add to its collectione kind of chocolate is being introduced which has a no sugar free.

ood news for chocolate lovers there would be no need to go on a dietbite of chocolate.


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PRICE:

Two different size are to be introduced

1.Choco Lite (50gms) Priced at Rs.152.Choco Lite (250gms) Priced at Rs.45

This priced a bit high than the regular chocolate because it is a unique

and no competitionFor this kind of chocolate & it is target at Middle & higher classsegment.

A key advantage of maintaining a strong brand image in a competitivemarket is a degree of

flexibility in the pricing strategy.When looking at the pricingstrategy for Choco Lite And it starts from Rs.15 & Rs.45 only.

PLACE:


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PLACE:

If we look at its placement strategy, it will be available in superstores

& general stores all over metropolitans in India. Its very easilyaccessible for people to get it in more convenient way. So this part isalso affecting some people, because its being placed in major areasof India. But if compare it with normal chocolate its not available ineach shop. As a result, we can say that its easily accessible to thecustomers at metropolitan.

PROMOTION:


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PROMOTION:In todays competitive world, everyone wants to have edge overothers. Effective promotion plays a very important role in the

business in order to have hold over one major competitor.Nestl has used a wide range of promotional tactics with Kit Kat ,Munch , ect.;. Promotion offers have included free bars in the multi-bar familypacks and an instant win deal with Mc Donalds.

This promotion strategy has left a great impact on the consumersbecause there were many ofthem who never got a taste of kit kat and due to this strategycompany has gained manycustomers. Coco Lite would also follow the same strategy.

Advertising is concentrated in following Medias:

Television commercials (Intensive)

Posters and billboards where the powerful colors of the pack andproduct are used to

dramatize the message

Reference


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ReferenceA study on the construction of BCG Matrix for Nestle India by Tarun Jain(http://ssm.com/abstract=1120857)

http://tutor2u.net/business/strategy/ansoff_matrix.htmhttp://www.valuebasedmanagement.net/methods_ge_mckinsey.htmlhttp://www.quickmba.com/strategy/matrix/ge-mckinseyhttp://www.slideshare.net/siddharth/nestle-maggi-282129http://flashnewstoday.com/index.php/maggi-losing-instant-noodles-market-share-in-india/

http://business.mapsofindia.com/india-company/n/nestle-india.htmlhttp://www.wikinvest.com/stock/Nestle_%28NSRGY%29http://www.oppapers.com/essays/Nescafe-India/134552


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