Narcisa PašićNina DošenovićAmna KapićEmina HeljićNikola Ivanišević

Nestlé is the world's leading nutrition, health and wellness company.

They employ around 328 000 people and have factories or operations in almost every country in the world. Nestlé sales for 2011 were almost CHF 83.7 bn. 

History and evolution of Nestlé

Nestlé can trace its origins back to 1866, when the first European condensed milk factory was opened in Cham, Switzerland, by the Anglo-Swiss Condensed Milk Company

Year later Henri Nestlé, the pharmacist, launched his product , world’s first prepared infant cereals Farine Lactée Nestlé

The two companies merged in 1905 to become the Nestlé we know today.

Henri Nestlé

•Henri used his surname, which means ’little nest’, in both the company name and the logotype

Nestlé’s success with product innovations and business acquisitions has turned it into the largest Food Company in the world.

  Their strategy is guided by several fundamental

principles. The Company's priority is to bring the best and

most relevant products to people, wherever they are, whatever their needs, throughout their lives.

Nestlé is based on the principle of decentralization. That's not to say that every operating company

can do as it wishes. Headquarters in Switzerland sets the overall strategy and ensures that it is carried out.

Nestlé believes that they should think about their organizations globally but they deal with people by interacting with them locally.

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. 

Vision of Nestlé

Nestlé's vision of making good food central to enjoying a good healthy life for consumers everywhere.

Having a broad vision the company is doing its best for their consumers to show the great sense of responsibility.

Nestlé’s aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality

Mission of Nestlé

"Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

In addition to Nutrition, Health and Wellness, Nestlé products bring consumers the vital ingredients of taste and pleasure.

Strategy - Nestlé Roadmap to Good Food, Good Life

The Nestlé Roadmap is intended to 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.

The Nestlé Corporate Business Principles

The Nestlé Corporate Business Principles are at the basis of our company’s culture, developed over 140 years, which reflects the ideas of fairness, honesty and long-term thinking.

1. Nutrition, Health and Wellness

Their core aim is to enhance the quality of consumers lives every day ( tastier and healthier food and beverage choices and encouraging a healthy lifestyle)

2. Quality Assurance and product safety

Nestlé name represents a promise to the consumer that the product is safe and of high standard. 

3. Consumer Communication

Responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets.

4. Human rights in our business activities

United Nations Global Compact’s guiding principles on human rights and labour and aim is to provide an example of good human rights’ and labour practices throughout their business activities. 

5. Leadership and personal responsibility

Success is based on their 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, provide equal opportunities for their development and advancement .

6. Safety and health at work

They are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain.

7. Supplier and customer relations

They require their suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness.

8. Agriculture and rural development

They 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

They commit theirselves to environmentally sustainable business practices.

10. Water

They are committed to the sustainable use of water and continuous improvement in water management. They 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.

“to just keep pace in the industry, you need to change at

least as fast as consumer expectations.”

CEO, Peter Brabeck

his explanation of innovation is “to maintain a leadership position, you also need to leapfrog, to move faster and go beyond what consumers will tell you.” 

 280,000 employees globally Cooperation? joint ventures - Coca Cola, General Mills

and L’Oreal Social marketing oriented marketsoperates in an environmental friendly

manneremphasis on innovation

Quality

low cost products low operating costs. Globally, biggest ice-cream producer

( 17.5%)

Customer base loyalty

decentralized culture in the organization encourages employees

dynamic and innovative approach when it comes to new technology.

Innovation - one of Nestlé's key competitive advantages; more than 140 years of research, development and scientific know-how.

consumer benefit remains at the core of all activities.

Consumer Benefits

Nestlé R&D addresses three areas of benefits for consumers:

1. Safety and Quality - this underpins all Nestlé products

2. Nutrition and Health3. Taste, Texture and Convenience

Weaknesses

sales in the organic food division lay flat since 2008.

FDA and AMA (American Medical Association) - ‘low cholesterol’ or ‘heart healthy’.

Parents have also reported diabetic epidemic

Promoting infant milk Slaves in African countries

Logistics cost high • Many products are not understandable in different countries

– LC1  • Coordination with the Center • Transportation as well as storage (proper warehousing)

problems. • Supply Chain having a complex stature. • The immense diversification portfolio  • a single location export - Russia • Puts profit first.

Opportunities

What is everybody’s biggest concern?

more health based products are required

Why are some people limited with their choice of food?

• Can go into the anti-allergy products Very popular type of “food” They can also invest in snacks that

would further diversify its product portfolio.

Provide incentives to the retailers to increase sales volume

What would be the best possible presentation of all products on one place?

Open cafes that would exclusively provide Nestle products.

Rich, poor or somewhere in between?

Middle class share in most of the economies are growing much larger.

Asia?

Nestle India as export hub In Asian countries - consumers are

mostly price conscious rather than health conscious.

End of recession?

Threats

What is the biggest fear of all food producers?

Product recalls- Contamined Nestle Cookie Dough

The company has a not so pretty history with the FDA.

Pet Food contamination 2007

Inflation effect?

Competitors : Cadbury Schweppes, Hershey’s,

Quaker, Heinz, Del Monte, Kellogg’s, and Kraft

Entering mature markets

In traditional countries- cooking or buying prepared food?

In the Indian market, fresh food is preferred than ready-to-eat meals.

Why were people sceptic about opening McDonald’s in Sarajevo?

In still developing countries as well as underdeveloped countries, Nestle will face a large competition in market both domestic and unorganized sectors.

Poverty sector in developing countries

Immense competition

Recently Indian Government reduced import duty of food segments so it intensified the battle even more

Changing consumer trends

More spending on consumer durables leads to less spending to FMGC

Rising prices of fuel, raw materials, increasing manufactuaring and packaging costs, ali they cannot pass the whole burden of that on consumers.

Violation of international marketing standards

Alleging violations in the areas of: aggressive marketing of baby milks

and foods and undermining of breastfeeding,  in breach of international standards;

trade union busting and failing to act on related court decisions;

failure to act on child labour and slavery in its cocoa supply chain;

exploitation of farmers, particularly in the dairy and coffee sectors;

environmental degradation, particularly of water resources;

Nestlé is the target of a boycott because it contributes to the unnecessary death and suffering of infants around the world by aggressively marketing baby foods in breach of international marketing standards

Price

Product

Promotion

Place

Product

Nestle - the world's largest food and nutrition company

almost six thousand products are being hosted under the brand named Nestle.

Products are very wide spread in range counting almost all daily use products as well as occasionally used products.

The products include coffee, bottled water, cereals, pharmaceutical products like lens care solutions, infant food, beverages, chocolates, candies, ice creams, refrigerated foods, yogurt, milk cream a very unusual product that is pet food and the largest selling brand milkman.

Products that are introduced in the market are first screened through high profile research and development sector including food processing, micro analytical research and proper delivery of functionalities in the food products thus promising the healthy goods for consumers.

Behind every one of Nestlé’s products is a team of scientists, product developers, designers, nutritionists, consumer service representatives and regulatory affairs specialists. 

Main raw material for its milk products are UHT treated and packed in tetra packaging, moreover the packaging is long lasting as well as tempting. 

As hygiene is a basic ethical question for edible products, so Nestle has a full concern and focus on this parameter.

Nestlé provides the product compliance to the customers including all legal supports.

Nutrition quality is preferably determined and is provided on the packing of the product to facilitate consumers to check their preferences with expiry dates.

The current position of the product in the market is matchless in quality and has no match. Ithas a sufficient name and place in the market

NESCAFÉ® Dolce Gusto® is new product of the Nestlé USA family of foods .

Named one of America's Most Admired Food Companies in Fortune magazine for the 10th consecutive year, Nestlé USA provides quality brands and products that bring flavor to life every day.

That's what "Nestlé. Good Food, Good Life" is all about. Nestlé USA is part of Nestlé S.A. in Vevey, Switzerland -- the world's largest food company.

Price

Flexible prices are the key factors of success of Nestle in global markets.

Their marketing strategy includes a wide precence of pricing strategy, and by doing this they can maintain their product rates at sustainable positions.

Prices are affordable to almost all types of consumer as they have wide range of single product as in the case of beverages, fruit juices are affordable to low economy class and expensive tin packed beverages are also doing business in the market

Bulk purchase discount is also provided at the whole sale markets as well as the market stores.

Seasonal price variations are also seen, especially in the case of chocolate products, either by upsizing at the same price or reducing the sale price.

Place

Nestle products have their main business area in Europe from where they get almost 90 % of the sales and revenues.

Nestle is running globally, its setup being run in 86 countries. So, the sales are also done globally and are impulsive ones.

The products are not directly thrown into the market, rather a full procedure is followed including all the essentials from Manufacturer, Distributor, Wholesaler, Retailer and finally to a Consumer.

Nestle products are available in all its variety at the maximum outlets, as the company is always looking forward to expand its outlets.

Promotion

Nestle has adopted the channels for promotion through TV, News papers, magazines Doctors and hoardings etc.

Nestle does not have any sponsors.

Promotion strategies of the company are very well planned and they always pay multiples of the expected amounts.

Advertising on electronic and print media along with sign boards having tempting figurations of the brand always proves good for the brand.