PROFILE OF THE COMPANY

Nestl with headquarters in Vevey, Switzerland was founded in

1866 by Henri Nestl and is today the world's biggest food and
beverage o!"any# Sales at the end of $%%& were 'H( 8) bn, with
a net "rofit of 'H( 6#) bn# *e e!"loy around $&),%%% "eo"le and
have fatories or o"erations in al!ost every ountry in the world#
+he 'o!"any's strategy is guided by several funda!ental
"rini"les# Nestl's e,isting "roduts grow through innovation and
renovation while !aintaining a balane in geogra"hi ativities
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and "rodut lines# 2ong3ter! "otential is never sarified for short3
ter! "erfor!ane# +he 'o!"any's "riority is to bring the best and
!ost relevant "roduts to "eo"le, wherever they are, whatever their
needs, throughout their lives#
BACKGROUND
Nestle was "ro!oted by Nestle .li!entana, Switzerland, a wholly
owned subsidiary of Nestle Holdings 2td#, Nassau, 4aha!a
5slands# Nestle is one of the oldest food 6N' o"erating in 5ndia,
with a "resene of over a entury# (or a long ti!e, Nestle 5ndia7s
o"erations were restrited to i!"orting and trading of ondensed
!il8 and infant food# 9ver the years, the 'o!"any e,"anded its
"rodut range with new "roduts in instant offee, noodles, saues,
"i8les, ulinary aids, hoolates and onfetionery, dairy "roduts
and !ineral water#
Nestle was inor"orated as a li!ited o!"any in 1:;:# 5n 1:)8,
the 'o!"any issued shares to the 5ndian "ubli to redue its
foreign holdings to &%<# 5ts na!e was hanged fro! (oods
S"eialties 2td# to the urrent na!e in 1:81#+he "arent held ;1<
sta8e in the o!"any as at $%%% end# 5t has (5=4 a""roval to hi8e
sta8e by 1%< and has been gradually aquiring shares fro! the
o"en !ar8et# =arent sta8e in the o!"any as at $%%1 end stood at
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;>#8<# +he "arent "lans to ontinue hi8ing sta8e through o"en
!ar8et "urhases#
Nestle India 2td, ;1< subsidiary of Nestle S., is a!ong the
leading branded food "layer in the ountry# 5t has a broad based
"resene in the foods setor with leading !ar8et shares in instant
offee, infant foods, !il8 "roduts and noodles# 5t has also
strengthened its "resene in hoolates, onfetioneries and other
se!i "roessed food "roduts during the last few years# +he
o!"any has launhed /airy =roduts li8e -H+ 6il8, 4utter and
'urd and also ventured into the !ineral water seg!ent in $%%1#
Nestle7s leading brands inlude Cerelac, Nestum, Nescafe,
Maggie, Kitkat, Munch and Pure Life#
PLANT LOCATIONS
Nestle started its !anufaturing o"erations with 6il8!aid in 1:6$
at 6oga fatory# 6anufaturing of Nesafe started in 1:6& at the
sa!e fatory# +he o!"any set u" another fatory at 'hera!badi
in +a!il Nadu, for !anufature of infant foods, offee et# (or
al!ost two deades there were no new additions of !anufaturing
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failities due to restritive "oliy environ!ent# +he o!"any set
u" its Nan?angad @Aarnata8aB fatory in 1:8: and the Sa!la8ha
@HaryanaB fatory in 1::$# +he =onda @0oaB fatory started
o"erations in 1::;# +he 'o!"any set u" its si,th !anufaturing
unit in 1::) at 4iholi! in 0oa
BUSINESS PRINCIPLES
Sine Henri Nestl develo"ed the first !il8 food for infants in
186), and saved the life of a neighbor7s hild, the Nestl 'o!"any
has ai!ed to build a business based on sound hu!an values and
"rini"les#
*hile our Nestl 'or"orate 4usiness =rini"les will ontinue to
evolve and ada"t to a hanging world, our basi foundation is
unhanged fro! the ti!e of the origins of the 'o!"any, and
reflets the basi ideas of fairness, honesty, and a general onern
for "eo"le#
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People i!st
1!"loyees, "eo"le and "roduts are !ore i!"ortant at Nestl than
syste!s# Syste!s and !ethods, while neessary and valuable in
running a o!"le, organization, should re!ain !anagerial and
o"erational aids but should not beo!e ends in the!selves# 5t is a
question of "riorities# . strong orientation toward hu!an beings,
e!"loyees and e,eutives is a deisive, if not the deisive,
o!"onent of long3ter! suess#
"#alit$ p!od#%ts
9ur fous is on "roduts# +he ulti!ate ?ustifiation for a o!"any
is its ability to offer "roduts that are a""ealing beause of their
quality, onveniene, variety and "rie 33 "roduts that an stand
their ground even in the fae of fiere o!"etition#
Lon&'te!( )ie*
Nestl !a8es lear a distintion between strategy and tatis# 5t
gives "riority to the long3range view# 2ong3ter! thin8ing defuses
!any of the onflits and ontentions a!ong grou"s 33 this a""lies
to e!"loy!ent onditions and relations with e!"loyees as well as
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to the onflits and o""osing interests of the trade and the industry#
9f ourse, our ability to fous on long3ter! onsiderations is only
"ossible if the o!"any is suessful in the struggle for short3ter!
survival# +his is why Nestl strives to !aintain a satisfatory level
of "rofits every year#
De%ent!ali+ation
Switzerland is ho!e to Nestl's Swiss subsidiary, its international
headquarters and the registered offie of Nestl's holding o!"any,
but Nestl does not regard its Swiss headquarters as the enter of
the universe# /eentralization is a basi "rini"le of Nestl# 9ur
"oliy is to ada"t as !uh as "ossible to regional iru!stanes,
!entalities and situations# 4y deentralizing o"erational
res"onsibility, we reate strength and fle,ibility and are able to
!a8e deisions that are better attuned to s"eifi situations in a
given ountry# =oliies and deisions onerning "ersonnel,
!ar8eting and "roduts are largely deter!ined loally# +his "oliy
reates stronger !otivation for Nestl's e,eutives and e!"loyees
and a greater sense of identifiation with Nestl's business# 5t is not
Nestl's "oliy to generate !ost of its sales in Switzerland,
su""le!ented by a few satellite subsidiaries abroad# Nestl strives
to be an CinsiderC in every ountry in whih it o"erates, not an
Coutsider#C
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Unio!(it$
. very i!"ortant onern at Nestl has to do with unifor!ityD how
onsistent Nestl's "rini"les, "oliies, rules of ondut and
strategies should be, and to what e,tent they should differ
de"ending on the ountry, subsidiary, region, branh or grou" of
"roduts# 5n general, Nestl tries to li!it the unifor!ity of its
"oliy to a requisite !ini!u!# +his !ini!u! is then
syste!atially enfored, unless there are o!"elling reasons in a
given !ar8et that ?ustify deviation fro! "oliy#
Di)e!sii%ation
Nestl does not want to beo!e either a onglo!erate or a
"ortfolio !anager# Nestl wants to o"erate only those businesses
about whih it has so!e s"eial 8nowledge and e,"ertise# Nestl is
a global o!"any, not a onglo!erate hodge"odge# *e regard
aquisitions and efforts at diversifiation as logial ways to
su""le!ent our business, but only in the onte,t of a arefully
onsidered or"orate !ar8eting "oliy#
Nestl is o!!itted to the following 4usiness =rini"les in all
ountries, ta8ing into aount loal legislation, ultural and
religious "ratiesD
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Nestl's business ob?etive is to !anufature and !ar8et the
'o!"any's "roduts in suh a way as to reate value that an
be sustained over the long ter! for shareholders, e!"loyees,
onsu!ers, and business "artners#
Nestl does not favor short3ter! "rofit at the e,"ense of
suessful long3ter! business develo"!ent#
Nestl reognizes that its onsu!ers have a sinere and
legiti!ate interest in the behavior, beliefs and ations of the
'o!"any behind brands in whih they "lae their trust and
that without its onsu!ers the 'o!"any would not e,ist#
Nestl believes that, as a general rule, legislation is the !ost
effetive safeguard of res"onsible ondut, although in
ertain areas, additional guidane to staff in the for! of
voluntary business "rini"les is benefiial in order to ensure
that the highest standards are !et throughout the
organization#
Nestl is onsious of the fat that the suess of a
or"oration is a refletion of the "rofessionalis!, ondut
and the res"onsible attitude of its !anage!ent and
e!"loyees# +herefore reruit!ent of the right "eo"le and
ongoing training and develo"!ent are ruial#
Nestl ontinues to !aintain its o!!it!ent to follow and
res"et all a""liable loal laws in eah of its
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Resea!%, and de)elop(ent
+he Nestl researh and develo"!ent enters have two !ain tas8sD
to reate new "roduts and !anufaturing "roesses and to
i!"rove those that already e,ist# +hese enters "lay a 8ey role in
"rodut safety and quality and also have their role in onserving
resoures and "roteting the environ!ent# 1nviron!ental onerns
are an integral "art of any develo"!ent "roess to ensure that our
future o!!erial o"erations !eet the desired riteria#
+he Nestl Eesearh 'enter "rovides the sientifi su""ort needed
to "revent and solve environ!ental "roble!s arising in the
develo"!ent grou"s as well as !anufaturing# 5n addition, studies
are arried out to find new ways of using industrial residues to
reate valueadded by"roduts# +his will redue total e!issions and
effluents#
+he Nestl develo"!ent enters "re"are environ!ental i!"at
studies for new "roduts and !anufaturing "roesses# +hese
over all as"ets, fro! raw !aterials, through "roessing, to the
final "a8ed "rodut# +hese analyses "rovide additional ele!ents
for use in deiding whether to o!!erialize a new "rodut, or to
introdue a new or !odified "roess#
Fo!esi&,t
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.t "resent, the world faes daunting questions about its ability to
"rovide enough wholeso!e food for everyone# 6alnutrition and
"oor eating habits are still serious "roble!s in !any develo"ing
ountries# 4y $1%%, the world's "o"ulation will double# *ill it be
"ossible to feed a world with so !any inhabitantsF .t Nestl, the
big "iture is all about feeding the world and "roviding food and
nutrition for an ever3growing "o"ulation# 9ur res"onse to this
situation is to intensify researh, strive for innovations and
i!"rove quality#
Fle-i.ilit$ and si(pli%it$
+he "ubli's sense of the "ower and size of a or"oration is often
inaurate, for a o!"any's "ower is li!ited by a host of fators
inluding legislation, o!"etition, regulatory bodies and "ubliity#
(ro! a business "oint of view, it is desirable for a fir! to ahieve
the size best suited to a s"eifi industry or !ode of "rodution# +o
be o!"etitive internationally and !a8e signifiant invest!ents in
researh and tehnology, a larger o!"any has an advantage# (ro!
a stritly organizational "oint of view, fle,ible, si!"le strutures
wor8 best and e,essively large units should be avoided whenever
"ossible# 5n both res"ets Nestl has a natural advantageD .lthough
it is a big o!"any, it is s"read out over !any ountries and eah
of Nestl's fatories has its own !anage!ent and res"onsibility#
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Handlin& o !a* (ate!ials
+he Nestl 0rou" is in "rini"le not diretly involved in "ri!ary
"rodution of raw !aterials and other food ingredients# 5n general
we use loally available raw !aterials and "urhase the! either
diretly fro! "roduers or through e,isting trade hannels#
Eaw !aterials have to !eet learly established quality riteria and
are he8ed for "ossible onta!inants inluding environ!ental
onta!inants# 9ur "urhasing s"eifiations o!"ly not only with
legal require!ents but go further to ensure highest safety and
wholeso!eness of our "roduts#
*henever "ossible we give "referene to those goods for whih
environ!ental as"ets have been ta8en into onsideration# 5n those
ases where the required agriultural raw !aterials are not
available loally, but the natural "rodution onditions e,ist, we
enourage loal "rodution and "rovide assistane for ultivation
and dairy far! !anage!ent#
*e su""ort "lant growing and livesto8 husbandry !ethods
whihD
"reserve and i!"rove natural soil "rodutivity and
eono!ize and "rotet water resoures
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allow the lowest, !ost a""ro"riate and safe use of agro3
he!ials
use the least energy#
Pa%/a&in&
6anufaturing o!"rises all unit o"erations neessary to
transfor! "erishable raw !aterials into finished "roduts, with the
ai! to !a8e the! safe and onvenient for the onsu!ers# +he
!anufaturing ativities of the Nestl 0rou"D
res"et natural resoures by effiient use of raw !aterials and
energy
!ini!ize waste generation and e!issions
ensure environ!entally safe dis"osal of all waste whih
annot be reyled#
Eegular assess!ents of "roessing "raties are arried out# +hese
assess!ents inludeD
evaluation of individual "lant "erfor!ane with regard to
o"erations whih have an i!"at on the environ!ent
definition of targets for i!"rove!ent
review of "lant o!"liane with loal govern!ent
regulations, o!"any environ!ental standards, as well as
results ahieved in o!"arison with targets for i!"rove!ent
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full investigation of inidents whih !ay affet the
environ!ent#
5nfor!ation on develo"!ents in environ!ental "rotetion
tehnology and "raties is disse!inated as required to ensure that
all "lants are using the !ost effetive environ!ental "raties for
their ty"e of "roessing# +his a""lies also for o "a8ers#
Ma!/etin& and dist!i.#tion
6ar8eting is based on the "rini"le of satisfying onsu!er needs#
+his is the foundation also for the environ!ental !ar8eting
a""roah of Nestl#
1nviron!ental "rodut lai!s in advertising, "ro!otional !aterial
and on "a8aging are in aordane with legal require!ents, based
on solid sientifi evidene and used in a serious and reasonable
!anner#
9ur ai! is to !ini!ize wastage in o!!uniation, "ubliity and
"ro!otional !aterial, in "artiular through !ore "reise targeting
of !ar8eting ativities#
'onsu!er "ro!otions and !erhandising !aterial suh as
onsu!er offers, instore "ro!otions, dis"lay !aterial, leaflets,
"rinted !atter, et# ta8e environ!ental as"ets into aount#
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+his !eans due onsideration of environ!ental i!"at in seleting
both !aterials and "rinting !ethods#
5n distribution, energy effiient and "ollution ontrolled !ethods
are enouraged wherever "ossible#
Ino!(ation0 %o((#ni%ation and ed#%ation
Nestl's "oliy is designed to "rovide orret and oherent
infor!ation on the ativities of the 0rou"#
.tivities related to the environ!ent benefit fro! the sa!e
treat!ent and their o!!uniation is seured through all urrently
available !eans inside and outside the 0rou"#
5t is further!ore Nestl's duty to reate awareness, to train and
!otivate e!"loyees on their "ersonal res"onsibility with regard to
the "rotetion of the environ!ent#
Le&islation and !e&#lations
5t is the "oliy of the Nestl 0rou" to stritly o!"ly with all laws
and regulations relevant to our ativities# *e "artii"ate in
disussions on food legislation and regulations between
international organizations, govern!ent re"resentatives, industry,
the sientifi world and onsu!er assoiations# *e also a""ly this
"oliy to environ!ent related !atters#
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5n doing so, we oo"erate with legislators through loal industry
assoiations in order to "ro!ote laws and regulations in the field of
environ!ent whih are reasonable, rational, realisti, a""liable
and enforeable# *e o""ose un?ustified bans and any other
disri!inatory !easures#
*e favor the har!onization of food regulations in order to re!ove
e,isting trade barriers and to avoid the reation of new ones# +his
a""lies also to environ!ental issues# *e favor the e,hange of
infor!ation, of e,"eriene and of 8nowledge between the various
interested "arties#
+han8s to all these synergies, we an ontribute to valuable
disussions and be reognized as an ative "artner in hel"ing
authorities to for!ulate o!"rehensive strategies in the field of the
environ!ent#
THE NESTL1 POLICY ON THE EN2IRONMENT
Nestl res"ets the environ!ent and is o!!itted to
environ!entally sound business "raties throughout the world,
thus ta8ing into aount the need to "reserve natural resoures and
save energy#
+his o!!it!ent is "ut into "ratie by onsidering loal legal
require!ents as a !ini!u! standard# 5f these do not e,ist, our
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internal rules, ad?usted to loal onditions, a""ly# Eesearh and
/evelo"!ent and new invest!ents inlude an evaluation to ensure
environ!entally a""ro"riate "roduts, "a8aging and "roesses#
6anage!ent and "ersonnel within the Nestl organization
worldwide are enouraged to hel" resolve environ!ental "roble!s
within their own s"here of influene#
NESTLE3S BRANDS
Guality and nutritional value are the essential ingredients in all of
the nestle7s brands# 6illions of "eo"le "refer Nestl "roduts every
day, ha""y with the addition to their wellness that they bring# 5f
you are loo8ing for a s"eifi brand our "rodut, ?ust use the
al"habetial inde, below to ?u!" straight to a listing# 9r you an
e,"lore by ategory#
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Ba.$ Foods
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+he "rodution of infant food goes right ba8 to the origins of the
Nestl 'o!"any# Henri Nestl's '(arine 2ate' was the first
"rodut to bear the Nestl na!e#
5n 186) a "hysiian "ersuaded Henri Nestl to give his "rodut to
an infant who was very ill H he had been born "re!aturely and
was refusing his !other's !il8 and all other ty"es of nourish!ent#
Nestl's new food wor8ed, and the boy survived# (ro! the very
beginning, Nestl's "rodut was never intended as a o!"etitor for
!other's !il8# 5n 186:, he wroteD C/uring the first !onths, the
!other's !il8 will always be the !ost natural nutrient, and every
!other able to do so should herself su8le her hildren#C
+he fators that !ade baby foods suess in the early days of the
Nestl o!"any H quality and su"erior nutritional value H are
still as valid today for the wide range of infant for!ula, ereals and
baby food !ade by Nestl# +he *orld Health 9rganization
@*H9B reognizes that there is a legiti!ate !ar8et for infant
for!ula, when a !other annot or hooses not to breast feed her
hild# Nestl !ar8ets infant for!ula aording to the "rini"les
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and ai!s of the *H9 5nternational 'ode of 6ar8eting 4reast 6il8
Substitutes, and see8s dialogue and oo"eration with the
international health o!!unity and in "artiular with the *H9
and -N5'1(, to identify "roble!s and their solution# Nestl's
e,"ertise as the world's leading infant food !anufaturer, gained
over !ore than 1$; years, is "ut at the dis"osal of health
authorities, the !edial "rofession and !others and hildren
everywhere#
C,o%olate 4 Cone%tione!$
+he story of hoolate began in the New *orld with the 6ayans,
who dran8 a dar8 brew alled aahuaquhtl# 2ater, the .ztes
onsu!ed haahoua and used the ooa bean for urreny# 5n
1;$>, they offered ooa beans to 'ortez, who introdued
hoolate to the 9ld *orld, where it swiftly bea!e a favorite
food a!ong the rih and noble of 1uro"e# Nestle forayed into
hoolates I onfetionery in 1::% and has ornered a fourth
share of the hoolate !ar8et in the ountry## 5t has e,"anded its
"roduts range to all seg!ents of the !ar8et +he Kitkat brand is
the largest selling hoolate brand in the world# 9ther brands
inlude Milky Bar, Marbles, Crunch, Nestle Rich Dark, Bar-One,
Munch et# +he sugar onfetionery "ortfolio onsists of Polo,
oothers, !rootos and Milkybar "clairs# .ll sugar onfetionery
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"roduts are sold under the u!brella brand $llen%s# Nestle has also
!ar8ets so!e of its i!"orted brands li8e &uality treet, Lions and
$fter "ight# New launhes suh as Nestle Choco tick and Milky
Bar Choo at attrative "rie "oints to woo new onsu!ers#
'hoolate onfetionery sales registered a strong $1#;< yoy
growth in $%%1 aided by good volu!e growth in Munch, Kitkat
and Classic sales# Nestle relaunhed Bar-One during the year#
(ro! the beginning, turning raw, bitter ooa beans into what one
1)th entury writer alled Cthe only true food of the godsC has been
a fine art, a deliate !i,ture of alhe!y and siene#
I%e C!ea(
+here are !any !yths and stories as to the invention of ie rea!D
was it 6aro =olo who brought it ba8 fro! 'hina @along with
"astaBF =robably not, onsidering he !ost li8ely never visited
'hina#
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+he story of its "o"ularity is however onneted with the invention
of tehnology to !a8e it on an industrial sale, and to 8ee" it old
one !ade# 4efore refrigeration tehniques, food was frozen with
the aid of ie, !i,ed with salt, whih was either stored in ie
houses or shi""ed fro! old ountries# 4ut then at the end of the
1:th entury, both !a8ing and freezing it bea!e easier, and
together with the invention of the ie rea! one, !ade the
"rodut boo!#
+oday, the -nited States is the absolute leader in ter!s of volu!e
onsu!ed, but the highest "er head onsu!ers are in New Jealand#
(lavors you'd never have thought of and yet they're o!!erially
availableD
Sorbets 3 S!o8ed Sal!on, +o!ato, 'uu!ber
5e 'rea!s 3 0arli, .voado, Sweet orn#
+he ie rea! one is the !ost environ!entally friendly for! of
"a8aging# . Syrian fro! /a!asus, 1rnest 1 Ha!wi is redited
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with its invention# .""arently, during the 1:%& St 2ouis *orld's
(air, his waffle booth was ne,t to an ie rea! vendor who ran
short of dishes# Ha!wi rolled a waffle to ontain ie rea! and the
one was born#
P!epa!ed Foods
'onveniene foods H "a8aged sou"s, frozen !eals, "re"ared
saues and flavorings Hdate ba8 !ore than a entury# *ith the
5ndustrial Eevolution a!e fatory ?obs for wo!en and less ti!e to
"re"are !eals#
+he "roble! was so wides"read that it bea!e the ob?et of
intense study in 188$ by the Swiss =ubli *elfare Soiety, whih
offered a series of reo!!endations, inluding an inrease in the
onsu!"tion of vegetables#
+he Soiety o!!issioned Kulius 6aggi, a !iller with a re"utation
as an inventive and a"able business!an, to reate a vegetable
food "rodut that would be qui8 to "re"are and easy to digest#
+he results H two instant "ea sou"s and an instant bean sou" H
hel"ed launh one of the best 8nown brands in the history of the
food industry# 4y the turn of the entury, 6aggi I 'o!"any was
"roduing not only "owdered sou"s, but bouillon ubes, saues
and flavorings#
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#Ma&&i !erged with Nestl in 1:&)# B#itoni, the authenti 5talian
brand, whih has been "roduing "asta and saues in 5taly sine
18$), bea!e "art of the Nestl 0rou" in 1:88#
Be)e!a&es
4everages li8e offee, tea and health drin8s ontribute to about
>%< of Nestle7s turnover# 4everage sales registered a 1;< yoy
growth during $%%1# *hile about 1&< of sales o!e fro!
do!esti !ar8et, e,"orts ontribute to about 16< of sales#
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Nestle's Nescafe do!inates the "re!iu! instant offee seg!ent#
Nestle7s other offee brand unrise has also been relaunhed under
the Nescafe franhise to leverage on the e,isting equity of the
brand# Nestle has foused on e,"anding the do!esti !ar8et
through "rie uts and "rodut re"ositioning# However it has been
losing share in the do!esti !ar8et, where it has a >)< !ar8et
share# Milo, a brown3!alted beverage was launhed in 1::6# 5t has
an esti!ated volu!e share of about >< in the !alted food drin8
seg!ent# Nestle has launhed non3arbonated old beverages suh
as Nestea 'ce( )ea and Nescafe !ra**e during $%%1#
Nestle is one of the largest offee e,"orter in the ountry# Aey
e,"ort !ar8et is Eussia, besides Hungary, =oland and +aiwan#
Nestle has reeived an award for highest e,"ort of instant offee
and highest e,"ort of offee to Eussia and '5S for (L%% and
(L%1# +urnover ontribution fro! e,"orts registered a 1)#;<
volu!e growth in (1$M%1# Nesafe sales to Eussia aounts for
8%< @Es$#;bnB of Nestl7s Es>bn e,"ort turnover#
"UALITY
1veryday, !illions of "eo"le all over the world show their
onfidene in us by hoosing Nestl "roduts# +his onfidene is
Sub!itted by S-H.S S /H.01# $&
based on our quality i!age and a re"utation for high standards that
has been built u" over !any years#
"#alit$ is t,e %o!ne!stone o o#! s#%%ess
1very "rodut on the shelf, every servie and every usto!er
ontat hel"s to sha"e this i!age# . Nestl brand na!e on a
"rodut is a "ro!ise to the usto!er that it is safe to onsu!e, that
it o!"lies with all regulations and that it !eets high standards of
quality# 'usto!ers e,"et us to 8ee" this "ro!ise every ti!e#
-nder no iru!stanes will we o!"ro!ise on the safety of a
"rodut and every effort !ust be !ade to avoid hazards to health#
2i8ewise, o!"liane with all relevant laws and regulations is a
!ust and is not negotiable# =eo"le, equi"!ent and instru!ents are
!ade available to ensure safety and onfor!ity of Nestl "roduts
at all ti!es# +he effort is worth it# 'o!"anies with huge quality
standards !a8e fewer !ista8es, waste less ti!e and !oney and are
!ore "rodutive# +hey also !a8e higher "rofits# Guality is their
!ost suessful "rodut# 5t is the 8ey to their suess, today and
to!orrow#
T,e %#sto(e! %o(es i!st
Nestle want to win and 8ee" usto!ersD distributors, su"er!ar8ets,
hotels, sho"8ee"ers and the final onsu!ers# +hey have very
Sub!itted by S-H.S S /H.01# $;
different require!ents# +rade usto!ers e,"et e,ellent servie,
orret infor!ation and ti!ely delivery# 'onsu!ers onsider taste,
a""earane and "rie when they !a8e their hoie# 5ts tas8 is to
understand what usto!ers want and res"ond to their e,"etations
ra"idly and effetively# *e serve various grou"s of onsu!ers and
there is de!and for "roduts at different levels of "ereived quality
and "rie# .ll usto!ers, however, e,"et value for their !oney N
good quality at a reasonable "rie#
*hen offering quality to usto!ers we also !ean environ!ental
quality# Nestl shares soiety7s onern for the environ!ent and is
o!!itted to environ!entally sound business "raties throughout
the world#
'usto!ers are entral to their business and they always res"et
their needs and "referenes#
Sub!itted by S-H.S S /H.01# $6
Co(petition
4aby food and 5nstant offee are ategories where brand loyalties
are very strong and Nestle is the !ar8et leader# H22 is a
signifiant o!"etitor to Nestle in instant offeeO while Heinz is
the !ain o!"etitor in the baby foods !ar8et# +he !ar8et for
ulinary "roduts, se!i3"roessed foods suh as noodles, ready
!i,es for 5ndian ethni brea8fast and sweets, is largely an urban
!ar8et# H22 and 5ndo Nissin (oods are the !ain o!"etitors in
these "rodut seg!ents# Nestle has also ahieved a signifiant $;<
share in the hoolateMonfetionery !ar8et# +he o!"any has
reently e,"anded its dairy "roduts "ortfolio to inlude, !il8,
urd and butter# +he o!"any also forayed into the bottled water
seg!ent with the launh of its Perrier brand in the "re!iu!
!ineral seg!ent and Pure Life in the "urified water seg!ent#
"#alit$ is a %o(petiti)e ad)anta&e
*e live in a o!"etitive world and !ust never forget that their
usto!ers have a hoie# 5f they are not satisfied with a Nestl
"rodut, they will swith to another brand# +heir goal, therefore, is
to "rovide su"erior value in every "rodut ategory and !ar8et
setor in whih we o!"ete# +he "ursuit of highest quality at any
Sub!itted by S-H.S S /H.01# $)
"rie is no guarantee for suess, nor is a single3!inded ost3
utting a""roah# 2asting o!"etitive advantage is gained fro! a
balaned searh for o"ti!al value to usto!ers, by si!ultaneous
i!"rove!ent of quality and redution ost# Suess an never be
ta8en for granted# *e !ust wath and learn fro! our o!"etitors#
5f they do so!ething better, we !ust i!"rove our own
"erfor!ane# *e an ahieve o!"etitive advantage through
Guality#
"#alit$ is a 5oint eo!t
9"erating o!"anies are fully res"onsible for !aintaining agreed
quality standards# Not only =rodution units, but also 6ar8eting,
=urhasing, /istribution and Sales have a vital role to "lay in
"roviding quality to usto!ers# +his i!"lies a thorough 8nowledge
of the "roduts and servies we offer#
Guality units at different levels of the organization "rovide s"eifi
su""ort, "ro!ote quality awareness, assu!e guardianshi" and
audit the syste!# Guality de"art!ents !onitor o"erations against
agreed standards and !ust intervene in ase of non3onfor!ity#
Guality "oliy and "rini"les, the !andatory standards and the
reo!!ended tools for i!"le!entation are laid down in the Nestl
Guality Syste! whih is a""liable throughout the grou"# (urther
diretions are given through instrutions, nor!s and guidelines,
Sub!itted by S-H.S S /H.01# $8
often s"eifi to a "rodut#
9ur business "roduts, suh as raw !aterial "roduers, "a8aging
su""liers, ontrat !anufaturers and distributors are e,"eted to
share our onern for Guality# +hey too !ust set u" an adequate
quality syste!, so as to !eet our require!ents onsistently# +he
quality efforts !ust be shared by every funtion and de"art!ent in
the o!"any as well as our business "artners#
"#alit$ is (ade .$ people
.dequate equi"!ent, "roedures and syste!s are needed to !a8e
GualityO so are involved and dediated "eo"le# 1ah and every
Nestl e!"loyee !ust do his best to "rovide quality "roduts and
servies# +raining and tea!wor8 are ruial to the suessful
i!"le!entation of high quality standards# 'ontinuous training
ensures that everyone understands his tas8s and has the neessary
s8ills to arry the! out# +ea!wor8 allows us to ahieve results that
are greater than the su! of individual efforts# *e !otivate
e!"loyees by de!onstrating !anage!ent o!!it!ent to Guality,
by setting hallenging goals and by giving the! res"onsibility and
reognition# 5t is through e!"loyee involve!ent that goals and
targets an be ahieved in the shortest ti!e# Guality !ust be a way
of life for everyone in the o!"any#
"#alit$ is a%tion
Sub!itted by S-H.S S /H.01# $:
Guality is the result of deliberate ation# 5t is the res"onsibility of
senior !anagers to o!!uniate the quality ob?etives and to
"rovide the resoures neessary for their i!"le!entation# 5t is then
u" to all e!"loyees to !a8e Guality ha""en throughout the
o!"any# =rogress is followed by listening to our usto!ers and
by !easuring our "erfor!ane# Shorto!ings and !ista8es !ust
be analyzed and orreted# =roble!s !ust be antii"ated and
"revented before they our# *e also !ust identify and ta8e
advantage of o""ortunities#+o stand still is to fall behind# So we
!ust strive for ontinuous i!"rove!ent in every area# 5t is through
!any s!all i!"rove!ents as well as through !a?or brea8throughs
that we will ahieve e,ellene# .t Nestl, Guality is our first
"riority# 2et us "ratie it every day#
Cons#(e! Se!)i%es
.t Nestl, we are o!!itted to offering onsu!ers high3quality
food "roduts that are safe, tasty and affordable# +he Nestl Seal of
0uarantee is a sy!bol of this o!!it!ent#
Sub!itted by S-H.S S /H.01# >%
*e also believe in !aintaining regular ontat with our
onsu!ers# +his a""lies both to how we "resent our "roduts and
to how we address our onsu!ers' questions and onerns# *hen
Henri Nestl "re"ared his first bo,es of infant for!ula for sale, he
"ut his address on the "a8ages so "eo"le would 8now where to go
if they had questions# +oday, our 'onsu!er Eelationshi" =anel
with the words C+al8 to NestlC e,"resses the sa!e o!!it!ent#
+his is why we have a worldwide Nestl 'onsu!er Servies
networ8 devoted to aring for our onsu!ers# 9ur "eo"le have
e,"ertise in a wide range of areas suh as nutrition, food siene,
food safety and ulinary e,"ertise# +hey "rovide the "ro!"t,
effiient and high quality servie that onsu!ers e,"et fro!
Nestl#
5n addition, we teah the! tal8 with onsu!ers and above all, to
listen# 2istening hel"s us to understand what "eo"le want# Nestl
uses the insights gained fro! relationshi"s with onsu!ers to drive
"rodut develo"!ent#
Sub!itted by S-H.S S /H.01# >1
.t Nestl, we are for our onsu!ers beause our suess de"ends
on !eeting their needs and e,"etations# +hrough listening and
understanding, we an !a8e "roduts that they will want to use all
through their lives#
FUTURE PROSPECTS
Nestle is foused on "rodut e,"ansion and i!"rove!ent of
distribution effiieny# +he /airy business is being e,"anded and
is e,"eted to drive growth in the long run, although short3ter!
"rofitability !ay be i!"ated in the invest!ent stage# +he
o!"any7s entry into the !ineral water seg!ent is a onern, as
the seg!ent is already overrowded and the o!"any faes stiff
o!"etition es"eially fro! the 'ola !anufaturers# .quisition
of an established brand ould ata"ult Nestl7s "osition in the
seg!ent# 5n ategories li8e beverages, ulinary "roduts and
hoolate onfetionery, the o!"any is loo8ing at driving growth
through launh of s!aller SA-7s, thus enabling affordability to a
wide setion of the "o"ulation#
Sub!itted by S-H.S S /H.01# >$
HISTORY OF NESTLE
+he 8ey fator whih drove the early history of the enter"rise that
would beo!e +he Nestl 'o!"any was Henri Nestl's searh for
a healthy, eono!ial alternative to breastfeeding for !others who
ould not feed their infants at the breast#
5n the !id3186%s Nestl, a trained "har!aist began e,"eri!enting
with various o!binations of ow's !il8, wheat flour and sugar in
an atte!"t to develo" an alternative soure of infant nutrition for
!others who were unable to breast feed# His ulti!ate goal was to
Sub!itted by S-H.S S /H.01# >>
hel" o!bat the "roble! of infant !ortality due to !alnutrition#
He alled the new "rodut (arine 2ate Henri Nestl#
Nestl's first usto!er was a "re!ature infant who ould tolerate
neither his !other's !il8 nor any of the onventional substitutes,
and had been given u" for lost by loal "hysiians# =eo"le qui8ly
reognized the value of the new "rodut, after Nestl's new
for!ula saved the hild's life and within a few years, (arine 2ate
Nestl was being !ar8eted in !uh of 1uro"e#
Henri Nestl also showed early understanding of the "ower of
branding# He had ado"ted his own oat of ar!s as a trade!ar8O in
Swiss 0er!an, Nestl !eans 'little nest'# 9ne of his agents
suggested that the nest ould be e,hanged for the white ross of
the Swiss flag# His res"onse was fir!D C5 regret that 5 annot allow
you to hange !y nest for a Swiss ross #### 5 annot have a
different trade!ar8 in every ountryO anyone an !a8e use of a
ross, but no3one else !ay use !y oat of ar!s#C
6eanwhile, the .nglo3Swiss 'ondensed 6il8 'o!"any, founded
in 1866 by .!erians 'harles and 0eorge =age, broadened its
"rodut line in the !id318)%s to inlude heese and infant
for!ulas# +he Nestl 'o!"any, whih had been "urhased fro!
Henri Nestl by Kules 6onnerat in 18)&, res"onded by launhing a
ondensed !il8 "rodut of its own# +he two o!"anies re!ained
fiere o!"etitors until their !erger in 1:%;#
So!e other i!"ortant firsts ourred during those years# 5n 18);
Vevey resident /aniel =eter figured out how to o!bine !il8 and
ooa "owder to reate !il8 hoolate# =eter, a friend and
neighbor of Henri Nestl, started a o!"any that qui8ly bea!e
the world's leading !a8er of hoolate and later !erged with
Nestl# 5n 188$ Swiss !iller Kulius 6aggi reated a food "rodut
utilizing legu!es that was qui8 to "re"are and easy to digest# His
instant "ea and bean sou"s hel"ed launh 6aggi I 'o!"any# 4y
the turn of the entury, his o!"any was "roduing not only
"owdered sou"s, but bouillon ubes, and saues and flavorings#
MISSION STATEMENT
Sub!itted by S-H.S S /H.01# >&
*herever you live, only Nestle an "rovide the best and !ost
relevant food and beverage "roduts to !eet your needs
throughout your day, throughout your life# +he Nestle Networ8
ion will ta8e you on the ?ourney of disovery through our world
of food#
CORPORATE STRUCTURE
Head Oi%e
+he registered and or"orate offie of Nestle 6il8"a8 2td# 5s in
2ahore#
>%8 N -""er 6all 2ahore
=.4PD ;);)%8$3:;
(a,D ;)118$%
Fa%to!ies
+here are two fatories of Nestle 6il8"a8 2td# (or dairy "roduts#
Shei8hu"uraD
$:
th
8!, 2ahore 3 Shei8hu"ura Eoad
Shei8hu"ura, =un?ab, =a8istan#
AabirwalaD
Ahanewal N Aabirwala Eoad, Aabirwala
/istrit Ahanewal, =un?ab, =a8istan#
+here are two "lants for 6ineral *ater situated inD
5sla!abad D
Sub!itted by S-H.S S /H.01# >;
AarahiD
Re&ional Oi%es
'o!"any has ten regional sales offies in following ities of
=a8istanD
Aarahi
Hyderabad
Su88ar
2ahore
6ultan
(aisalabad
0u?anwala
Guetta
5sla!abad
=eshawar
Mil/ Colle%tion Cente!s
+he ore raw !aterial of Nestle 6il8"a8 is !il8# 9ver the last
thirteen years the o!"any "ri!e onern has been to i!"rove the
quality and volu!e of !il8 for -H+ "roessing and for other !il8
base "roduts# So the o!"any has twenty five !il8 olletion
enters in =a8istan#
DEPARTMENTS
T,e!e a!e (ainl$ i)e di)isions6 In e)e!$ di)ision t,e!e #!t,e!
depa!t(ents6
Q =rodution /ivision
R Guality .ssurane /e"art!ent
Sub!itted by S-H.S S /H.01# >6
R 4rand *ise =rodution /e"art!ents
R =a8aging /e"art!ent
Q Hu!an Eesoure /ivision
R =ersonnel /e"art!ent
Q 6ar8eting /ivision
R 'usto!er Eelation /e"art!ent
R Sales /e"art!ent
R /istribution /e"art!ent
R Eesearh I /evelo"!ent /e"art!ent
Q (inane /ivision
R +reasury /e"art!ent
R .ounts /e"art!ent
Q 6il8 'olletion /ivision
R .griultural Servies /e"art!ent
R 2ogisti /e"art!ent
=E9/-'+ 25N1
P!od#%ts
Year Product Name
7897 UHT Mil/
789: B#tte!
Sub!itted by S-H.S S /H.01# >)
789; Mil/ Pa/ C!ea(
Desi G,ee
F!ost <#i%e
Mil/ Pa/ UHT Mil/
788= Nido
Ce!ela%
7887 Nest#(
Le%to&en
788> E)e!$da$ Tea ?,itene!
Glo!ia
Ma&&is Noodles
788@ Milo
Nesla%
788A Millo RTD
Nes%ae : in 7
788; E)e!$ da$ UHT Mil/
Nestle O!an&e <#i%e
Nestea
Polo
Nes%ae Classi%
Sub!itted by S-H.S S /H.01# >8
Ma&&i Ya/,ni
788B Nestle ?,eat
7889 Too
Soot,e!s
Nestle P#!e Lie
7888 Ma&&i Sa#%es
F!#it D!ops
B#tte! S/ot%,
>=== Tea C!ea(
>==7 Nes%ae C!ea($ Fla)o!s
MARKET ANALYSIS
ROLE OF MARKETING DEPARTMENT
.s !ar8eting is a ga!e to !eet the needs and wants of the
usto!ers to satisfy the!# 'usto!er satisfation is the
res"onsibility of !ar8eting de"art!ent by develo"ing new "rodut,
!odifying e,isting "rodut, "laing the "rodut at right ti!e at
right "lae# +he de"art!ent also hel"s in setting "ries with res"et
to o!"etitors and to satisfy usto!er as well# 5t funtions to
"ro!ote the "rodut# So in this way it reates an environ!ent
where transations an ta8e "lae#
Ma!/etin& Di)ision in Nestle
5n Nestle, there are three de"art!ents in the !ar8eting division#
Sub!itted by S-H.S S /H.01# >:
Q Eesearh and develo"!ent de"art!ent
Q 'usto!er relation de"art!ent
Q /istribution de"art!ent
.s the funtion of !ar8eting de"art!ent is to satisfy the usto!er
and to fulfill organization ob?etives# +hese an not be "erfor!ed
by a single de"art!ent# +hese an only be ahieved when there
will be oordination a!ong all de"art!ents of the organization# 5n
the ase of Nestle 6il8"a8 2td# !ar8eting division with its three
de"art!ents oordinates all other divisions and de"art!ents#
6ar8eting division doesn't ta8e deision it rather it "uts a lot of
efforts to get the onsensus of all other divisions# 6ar8eting "eo"le
are diretly related to the su""ly of the goods to the retailers, so
they have better esti!ation of the de!and of their "roduts#
6ar8eting division gets the feed ba8 fro! the sales "erson# +hen
after getting an esti!ation !ar8eting division o!!uniate to
"rodution division# +he "rodution division !a8es an analysis
that how !uh a"aity is available and how !uh de!and is
there# 5f there is so!e need of finanial resoures and wor8ers, the
"rodution !anager o!!uniates these needs to hu!an resoures
division and finane division# So these divisions ta8e ations to
fulfill the need of "rodution division#
5n this way the !ar8eting division integrates the ativities of
different de"art!ent to !aintain the overall o"erations of the
o!"any#
P!od#%t de)elop(ent and la#n%,in& st!ate&ies o Nestle
Nestle 6il8"a8 2td# is !ar8et leader in food and beverage
"roduts and o!"eting with its e,isting o!"etitors effetively#
Strong e!"hasis on usto!er7s needs and wants enable the Nestle
to be !ar8et leader in the industry#
Sub!itted by S-H.S S /H.01# &%
Nestle never develo"s any "rodut with blind eyes but before
develo"ing or launhing any "rodut, they go for o!"lete study
of !ar8et and identify the needs and wants of usto!ers and
develo" "rodut aordingly# Suh sorts of ativities are "erfor!ed
by !ar8eting division with its three de"art!ents# +he division has
an effiient researh and develo"!ent de"art!ent with !ar8ing
infor!ation syste! @685SB whih hel"s to identify the un!eet
needs of usto!ers through sientifi researh or surveys#
5n general, the !ar8eting division onentrates on following two
as"ets before develo"ing new "rodut#
1# +aste of "otential !ar8et#
$# 'onsu!"tion "attern of target !ar8et
+he !ar8eting e,eutives believe that "rodut suess de"ends
u"on whether it satisfies the basis needs and require!ents of
usto!ers or not# Seondly, they also believe that these !ust be
suffiient de!and @onsu!"tionB for the new "rodut#
5f !ar8eting researh analysis "rovide reasonable results on above
two as"ets then !ar8eting division "roeeds following new
"rodut develo"!ent ativities#
Ne* p!od#%t de)elop(ent a%ti)ities
5n order to get long ter! suess, !ar8eting division "erfor!
following ativities for new "rodut develo"!ent#
1# =ri!ary "rodut
$# Guality test
># 6ar8et test
&# (eed ba8
;# 6odifiation
6# 'o!!erialization @launhingB
Sub!itted by S-H.S S /H.01# &1
=ri!ary "rodut is develo"ed in the fatory laboratory aording to
the de!and of the !ar8et# =rior to the !ar8et test, quality test is
a""lied in quality assurane laboratories in Singa"ore in whih
they evaluate whether the new "rodut inherent the reasonable
standard quality as e,"eted by the usto!ers# .fter offering the
new "rodut in few sa!"les to s!all e,"eri!ents grou"s of
usto!ers, the o!"any gets feed ba8 fro! the! and the !a8e, if
neessary, any !odifiation in the "rodut design or quality# .fter
"erfor!ing suh ativities or we an say the "rodut beo!e 1%%<
"erent o!"lete then Nestle goes for o!!erialization at the
large sale with full energy and o!!it!ent#
S*9+ .N.2LS5S 9( N1S+21
St!en&t,s
Nestle has following strengthsD
Nestle is world re"uted and reognized organization whih has
"ositive i!"at on "eo"le "ere"tion about it#
Nestle has strong finanial "osition whih enable it to attrat !ore
new investors and hel" it to raise funds fro! ban8s#
Nestle has strong ore o!"etenies i#e# highly e,"ert hu!an
resoures whih enable it to "rodue new high quality innovative
"roduts#
Nestle !odern o"eration failities are also i!"ortant strength
whih enable it to "rodue high standardized quality "roduts#
4eause Nestle is o"erating worldwide and has different strategi
business units @S4-B# 5t an o!"ensate losses, if inur in any one
S4- through other "rofitable S4-s#
Nestle has its own distribution networ8 whih !a8e it easy to
"rovide Nestle "roduts at all "ossible "laes on ti!e#
Sub!itted by S-H.S S /H.01# &$
?ea/nesses
Eaw !aterial is basi in"ut for every organization and !il8 is ore
raw !aterial of Nestle for whih it is de"endent on the outside
6il8!en# Nestle has no single its own dairy for! whih "rovide
high quality !il8 to the fir!#
.nother wea8ness of Nestle 6il8"a8 2td# is that its total
"a8aging de"ends u"on =a8ages @=vt#B li!ited#
Oppo!t#nities
Nestle an go for S4a8ward integrationT and establish its own
diary for!s# 'urrently, Nestle is de"endent on the outside
6il8!en whih so!eti!es don7t su""ly high quality !il8# Nestle
should o"en its own diary for!s beause Nestle has strong
finanial "osition and =a8istan is agriultural state whih su""ort
this ba8ward integration#
T,!eats
(ollowings are the !a?or threats for Nestle 6il8"a8 2td# O
=urhasing "ower of "eo"le in =a8istan is dereasing day by day
and "ries of Nestle "roduts are o!"aratively high# So in long
run, Nestle !ay fae "roble! if suh trend ontinues#
5n so!e "roduts Nestle is faing fiere o!"etition# (or e,a!"le,
in 6il8"a8 Nestle is faing o!"etition fro! 'hauhdary /airies
2i!ited who has launhed S/airy GueenT at lower "ries whih
has dereased !ar8et share of 6il8"a8# '/2 has also launhed
SN7rishT !il8 "owder at lower "ries, it also has a"ability to
dereased the !ar8et share of SNidoT# So in long run, if Nestle do
not res"ond to suh o!"etitors, they !ay reate a lot of "roble!s
in other "roduts also#
Sub!itted by S-H.S S /H.01# &>
=a8istan "olitis struture is very instable and is de"ressing
eono!i ativities and volatile business environ!ent in the state#
Suh instable environ!ent !ay influene the "erfor!ane of all
industries o"erating in state and Nestle !ay also be influened
fro! suh trends of instability#
COMPETITIORS
Nestle is the !ar8et leader in food and beverage industry# +hey are
"roduing high quality well 8nown brands# +here no is suh
o!"etitor that an o!"ete Nestle 6il8"a8 2td# in its total
"rodut !i,# +here are a few loal o!"etitors of the o!"any in
different "rodut ite!# +hese o!"etitors areD
Ra,anC
Eafhan is o!"eting Nestle in infant and follow u" ereals#
S,e+an and Ba(.inoC
Shezan and 4a!bino are o!"eting Nestle 6il8"a87s loal brand
S(rostT#
CDL and Ada!'e'/isanC
+hese two o!"etitors are o!"eting in !il8 and !il8 "owder
"roduts#
5n s"ite of this o!"etition, Nestle is en?oying about )%3);<
!ar8et share in =a8istan#
Co(petiti)e P!io!itiesC
(ollowing are the o!"etitive "riorities of Nestle
1# High "erfor!ane design
Sub!itted by S-H.S S /H.01# &&
$# 'onsistent quality
># /evelo"!ent s"eed
&# Volu!e fle,ibility
"UALITY
Guality is the one o!"etitive "riority of N6# +hey ta8e quality
in two ways# High "erfor!ane design and onsistent quality#
76 HIGH PERFORMANCE DESIGN
N6 ta8es all the required !easures to "rovide the high quality
"roduts to its usto!ers# +hey "rovide "ure quality "roduts
aording to the! usto!er require!ents# +hey have !ost
advaned "roess design for the "rodution of high quality
"roduts#
>6 CONSISTENT "UALITY
N6 "ays s"eial attention for !aintaining onsistent quality# +hey
have s"eial sort of equi"!ents and "roess whih failitates in
!aintaining a onsistent quality# So the eah and every unit of its
"rodut equally satisfies its usto!ers#
:6 DE2ELOPMENT SPEED
.s for as develo" s"eed is onerned N6 is the industry leader not
only in =a8istan but all over the world# +hey have a tea! of very
innovative "eo"le whih onsistently fous on the develo"!ent of
new "roduts and to i!"rove the already e,isting "roduts#
@6 2OLUME FLEDIBILITY
Volu!e fle,ibility is one of the o!"etitive "riority of N6# *hen
the availability of 6il8 is high in winter season they inrease their
"rodution as the !il8 annot be stored for longer "eriod of ti!e#
Sub!itted by S-H.S S /H.01# &;
5n season when there is shortage of !il8 their "rodution rates
dro""ed#
So they an ad?ust their volu!e of "rodution aording to their
require!ents#
& =s
PRODUCT
Ta!&et (a!/et o! Nestle p!od#%ts
+o satisfy the require!ents of ter! re"ort 5 selet the following
"roduts of Nestle#
R 1veryday
R Nido
R 6il8 "a8
R Nesafe
R 6ineral water
5n this setion 5 briefly e,"lain the target !ar8et for eah "rodut#
Ma!/et se&(entation
Nestle has been seg!ented its "rodut on de!ogra"his basis,
s"eially onD
Q .ge
Q 9u"ation
Q 5no!e grou"
Q (a!ily o!"osition
Sub!itted by S-H.S S /H.01# &6
Ta!&et (a!/et o! E)e!$da$
1veryday is basially "re"ared for "eo"le living in ities who
belong to the high ino!e grou"# it !eans the user or onsu!er of
everyday belongs to S . lassT beause, in general, "ere"tion
about everyday is that it is ostly but atually it is not too !uh
ostly# 5t is basially eono!ial for tea "ur"ose# it is onvenient in
tea !a8ing, so this is also target for offie use, where it an be
"re"ared easily and i!!ediately#
Ta!&et (a!/et o! Mil/pa%/
6il8 "a8 is targeted for quality onsious "eo"le !ostly living in
the urban areas# +he use of !il8"a8 belongs to all lasses# =eo"le
"refer to use !il8"a8 for tea !a8ing only# (or e,a!"le in hostels
!ost of the students use haleeb, where the fresh !il8 is not
available#
Ta!&et (a!/et o! Nido
Nido is generally targeted at the growing s"eially shool going
hildren beause hildren are fond of "laying as they do in
growing age# So they need vita!ins and aliu! for growth of
strong bones and teeth# +arget !ar8et for nido is shool going
hildren living in ities#
Ta!&et (a!/et o! Mine!al ?ate!
6ineral water is targeted for the "eo"le who are health onsious#
6ostly eduated "eo"le and "atients are target !ar8et for !ineral
water#
Ta!&et (a!/et o! Nes%ae
+he target !ar8et of Nesafe is "eo"le who swith fro! tea to af
and !ostly "eo"le belonging to u""er lasses and !iddle3!iddle
lass#
Sub!itted by S-H.S S /H.01# &)
=E5'5N0
E2ERY DAY
5t is one of the !ost fa!ous "roduts by Nestle# 5t is s"rayed
instant dairy whitener, s"eially for!ulated to bring out the best
taste# 5t is !ade fro! the best quality fresh !il8 aording to the
Nestle 5nternational standards that guarantee quality and "urity#
4asially everyday has no o!"etitor in the tea whitener#
MILKPAK
6il8"a8 is the "rodut of Nestle, whih is available in liquid for!#
Nestle designed this "rodut beause of greater de!and of !il8#
6il8"a8 is !ore "ure I hygieni !il8, whih says fresh for quite
longer ti!e "eriod# 5t is ideal for fa!ily use#
NIDO
Nido if full Nrea! "owdered !il8 enrihed with vita!in . I / #
Nido is !ade fro! "ure fresh !il and retains aliu!, vita!in,
"roteins and other nutrients# Nido is s"eially designed for the
growing hildren#
NESTLE PURELIFE ?ATER
Nestle is offering !ineral water in three different sizes# +heir
"ries de"end
u"on sizes in whih they are offered# 2arge bottles have relatively
low "rie as o!"ared with s!all bottles#
SIEES AND PRICING
E2EY DAY MILKPAK
NIDO PURELIFE
Sub!itted by S-H.S S /H.01# &8
7===&( F78@'
RsG
7'Lit!e F:='RsG 77==&( F788'
RsG
76A'lit!e F>>'
RsG
@==&( F9A'RsG H'Lit!e F7:'RsG @==&( F99'RsG H'lit!e F7>'
RsG
>==&( F@B'RsG I'Lit!e F8'RsG >==&( FA;'RsG
I Lit!e liJ FB'
RsG
>A==&( F9:='
RsG
P!i%in& St!ate&$
Nestle is offering different "ries de"ending on the size of the
"rodut# +hey are trying to a"ture different ino!e grou"s by
offering different "ries de"ending in the size of "rodut# +o
inlude low3ino!e grou" in their target !ar8et, Nestle offered
s!all "a8s with low "rie, while for high3ino!e grou" they are
offering large "a8s i#e# 13litreM1%%%g!# 5n large "a8s they offer
low "rie as o!"are to s!all "a8s de"ending on the size#
=2.'161N+
DISTRUBUTION
+he distribution is arried out effetively and eono!ially with a
fleet of >3wheelers whih average 1$3 re3fill tri"s a day# 1ah tri"
is a one !an o"eration, with the driver also serving as a sales!an,
a loader, HH o"erator and !anual reord 8ee"er# +o ensure
eono!ial and effiient o"eration the distribution enter is
onstantly engaged in u"dating the revising rout "lanning#
CONTINUOUS IMPRO2EMENT FCIG
Sub!itted by S-H.S S /H.01# &:
+he ter! Sontinuous 5!"rove!entT is not new for "rogressing
fatories# 5n the Nestle syste!, this gives a o!!on "latfor! to all
i!"rove!ent tea!s# 5t is a "artii"atory a""roah to "roble!
solving with a very defined and strutured "roess# '5 hel"s in
hanging the !indset of the "eo"le so that they should always be
thin8ing of i!"rove!ents, by hallenging the old "roedures and
"ere"tions#
/uring the N=+ "ro?et, a ontinuous i!"rove!ent drive was
launhed in Shei8hu"ura in 6arh and in Aabirwala in ."ril, with
a "resentation to de"art!ent heads# +o onvey the !essage to
everyone at floor level, se"arate "resentations were !ade to
e,eutives, su"ervisors and wor8ers# 1veryone in the fatory an
be a "art of this "roess either by ontributing ideas or by
beo!ing a !e!ber of the "roble! solving tea!# +he ontinuous
i!"rove!ent is not only foused on ost redutions but ta8es into
aount ideas that i!"rove "roess, quality, safety, hygiene or
environ!ent#
=E969+59N
'o!"arable "rogress has been ahieved within our logistis, sales
and distribution struture, where stronger distribution and !ore
i!"at !erhandising have ertainly !ade a !a?or ontribution to
our high growth rates# +he strategi 41'. "ro?et bea!e
funtionally o"erational by the end of the year#
Sub!itted by S-H.S S /H.01# ;%
*ith regard to new "roduts, you are all aware that we had the
"rivilege of being the first in the world to introdue the strategi
new "rodut, N1S+21 =-E1 25(1# 4y the end of the year,
N1S+21 =-E1 25(1 is fir!ly established with !ar8et share over
;%< and is well "laed to onsolidate its "osition in $%%%#
5n 1::8, the brand "ositioning was further strengthened, using the
"urity "latfor!# . !a?or a!"aign was develo"ed to highlight
"urity as the !ost i!"ortant attribute in !il8, strongly assoiating
652A=.A with "urity and quality#
MILKPAK
KK,alis Hi S#. K#%, HAIL *as .#!st #sed to o#t*it t,e
%o(petition and ind#%ed %ons#(e! to s*it%, o)e!
NESTLE Mil/pa/ UHT (il/6 It *as la#n%,ed on Ap!il
>: in Nis,at 4 Ma!ia( %olonies and late! in Pi! 4
Fa!ooJ %olonies6 T,is %a(pai&n di!e%tl$ in)ol)ed
%ons#(e!s and !etaile!s and spanned o)e! a pe!iod o
si- (ont,6
T,e Re'la#n%,in& o MILKPAK
+he new !ar8eting effort was based on a hange in "a8aging
design in order to o!!uniate the new "ositioning and the i!age
of an old and trusted brand#
.+V a!"aign was develo"ed to fous on 8ey !essage e#g#,
Nestl is behind 652A=.A, assurane is "urity through Nestle
and Nestle being No#1 (ood 'o!"any with 1>% years of !il8
e,"eriene# +his !essage was further "ro"agated through "rint
!edia and outdoor advertise!ent# +he a!"aign was su""orted
through flier,
te!"orary hoarding, street banners, and sho" banners, "osters,
buntings and trade letters#
Sub!itted by S-H.S S /H.01# ;1
+he "ro!otion targeted our ore !ar8et of young adults between
183$; years, with "rizes having been seleted to a""eal to this
grou"#
NIDO
Sine last year N5/9 has seen a onsistent and substantial growth
in sales volu!e# +he growth learly indiates that onsu!er
onfidene in "roessed !il8s is growing# +he fators that have led
to this are rising ost of gawala !il8 des"ite its questionable
quality, the growing size of the !il8 !ar8et to ra"id urbanization
and better awareness about "roessed !il8#
Nido !et its 1::: 9=2 annual volu!e targeted on Kuly 1;, 1:::,
when the highest ever invoiing and retail "er day reord was
ahieved in Kune 1:::#
(inally, to reate goodwill a!ongst !others, N5/9 launhed the
N5/9 Guiz 'ontest overing ); shools of Aarahi, 2ahore and
5sla!abad#
Nestle celebrates N'DO mother+s Day each year for sales
Promotion#
NESTLE PURE LIFE ?ATER
6urree Hills draw enor!ous rowds fro! all over =a8istan in
su!!ers# +hose who a!e to 6urree this su!!er were in for
"leasant sur"rise# +hey were greeted by N1S+21 =-E1 25(1#
+he brand and sales "ro!otion tea!s of the North Jone had "ut
together an effetive outdoor a!"aign# +he road to 6urree was
awash with billboards, sho"s signs, sho"s boards, brand
u!brellas,stands,sho"s "aintings, wall "aintings,=9S !aterials,
regular !erhandising, ross road signs, "rodut sa!"ling and
sti8er sa!"ling# +he ativity reated a re!ar8able i!"at and the
visitors were i!"ressed#
Sub!itted by S-H.S S /H.01# ;$
'9N'2-S59N
.nalyzing all the data we obtained fro! the organization, we
onluded that Nestle is basially a dairyMfood o!"any# +he good
thing about Nestle is that, they are fa!iliar with their atual target
!ar8et# 9ne e!erging industry i#e# 652A, is being a"tured by
Nestle through its quality "roduts# +hey have develo"ed de"th in
6il8 line, i#e# starting fro! growing babies to old age tea lovers#
Sales "ro!otion ativities are effetively arried out# 5!"ortant
thing about Nestle is that they have "laed their "roduts at
usto!er7s doorste"#
*ea8ness of Nestle lies in !any "roduts where they are not
"ro!oting the! effetively or wea8 !ar8eting li8e Nesafe#
.nother fator of failure is onsu!er taste li8e Nesafe is
s"eifially for higher lass# (ew years ago, they were offering
"roduts only for health onsious or high ino!e grou"s but now
they have inluded low ino!e grou" in their target !ar8et by
offering s!all "a8s li8e 1very /ay in liquid for!#
Sub!itted by S-H.S S /H.01# ;>