ASA UNIVERSITY BANGLADESH (ASAUB)

Assainment
ON
Consumer behavior
Nestle Food Products In Bangladesh
Prepared To
Md.Kamrul Hasan
Course Lecturer
Faculty of Business
ASA University Bangladesh (ASAUB)
Prepared By
Sabbir Ahmed
ID # 13-1-14-0135
MBA, Batch-6
th

Major in Marketing

Submitted date:

30
th
December, 201
LETTER OF TRANSMITTAL

07.04.2014
To
Md.Kamrul Hasan
Course Lecturer
Faculty of Business
ASA University Bangladesh
Subject: Submission of report on Consumers behavior of Nestle in
Bangladesh.
Dear Sir,
I would like to submit the report on Consumers behavior of Nestle in
Bangladesh.
In preparing the report I collected and analyzed all the pertinent information. I
have tried my level best to analyze the information as comprehensively as
possible. Any shortcoming or flow may arises as I am very much notice in this
aspect. I will wholeheartedly welcome any clarification and suggestion about any
view and conception disseminated in my report.
Sincerely yours
_
Sabbir Ahmed
Id:13-1-14-0135
MBA,Batch-18
th

Major in Marketing
ASA University Bangladesh (ASAUB).




Acknowledgement

First of all thanks to almighty Allah for enabling me to complete this report within
the time frame given. To successfully prepare this report at the very beginning, I
obviously express my deepest thanks and appreciation to everyone who help me.
My special thanks go to honorable Course Lecturer Md.Kamrul Hasan for his
cooperation and helpful advice inspire me to prepare this report successfully.
Without his help it was quiet impossible to finish this report properly in time.
Computer makes my works very easy and saves my time. I would humbly give
thanks to all of them for their tolerance and valuable support that made this
project report a successful one.
At last,I express my sincere gratefulness to the class mates and my respondents
who give me important knowledge regarding to my report.













Executive Summary
The report has been prepared as a mandatory requirement of my course Consumer
behaviour. Executive summary presents a clear vision of the report with different
titles. After I identify an existing company, which is Nestle, Bangladesh. In my
report I mainly deal with the new product line and deigned the packaging and
leveling of the fruit juice and consumer characteristics. This report will help me to
determine the in-depth information and stand out position in the market demand.
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. Today Nestle is the worlds largest food and Beverage Company with
more than 250,000 employees and over 500 factories in 86 countries around the
world. Our products have been available.The Nestle Company has not introduced
any fruit juice. So it has decided to introduce new product line of fruit juice, which
will be healthy, nutritious and delicious compare to other fruit juices in our country
in.














Table of content
Sl. Topic Page No.
A. Letter of Transmittal
B.
Acknowledgement

C.
Executive Summary

1. Introduction
1.a
Nestle in Bangladesh

1.b
Scope of the study:

1.c OBJECTIVES
1.d LIMITATION
2.
Company Overview

3.
Nestle Principle

4. NESTLE PRODUCTS
5.
Practice of Marketing Concepts

6
Evaluating sbu

7.
Product mix

8.
Different line stretching strategies:

9. Bases of sagmentation
10.
Target Marketing Strategies

11.
Competitors

12.
Nestle Beverage

13.
RECOMMENDATON

14. conclusion










1.Introduction
a.Nestle in Bangladesh
Popular Nestle brands entered this part of the sub continent during British
rule and the trend continued during pre-independence days of Bangladesh.
After independence in 1971, Nestle World Trade Corporation, the trading
wing of Nestle, sent regular dispatches of Nestle brands to Bangladesh. By
that time some of the brands such as Nespray, Cerelac, Lactogen, Blue
Cross etc. became household names. In the early eighties Transcom Ltd. was
appointment the sole agent of Nestle products in Bangladesh. In 1992 Nestle
and Transcom Ltd. acquired the entire share capital of Vita Rich Foods Ltd.
Nestle took 60 percent while Transcom Ltd. acquired 40 percent. The name
of the company was also changed at this time to Nestle Bangladesh Limited.
In 1998 Nestle took over the remaining 40 percent share from Transcom
Limited. Today Nestle Bangladesh Ltd. is a solid based enterprise.

b. Scope of the study:
This study examines the organizational structure, culture, values, and background
objectives etc of beverage industry. Another scope of that in that study was to
discuss with the customer about the various kind of soft drinks in Bangladesh.
How beverage industry operate their business transaction with the local
customer. Now a days it is the fastest growing business in Bangladesh and also
contribute heavily on economic efficiency. Whether the customer are satisfied for
the continuous service of the soft drinks organization and their lengthiness.
c.OBJECTIVES:
Broad Objective:
Making our customers winners by constantly exceeding their expectations.
Marketing objectives are compatible with the overall corporate objectives of nestle.
Companys objective is to be the worlds largest and best branded food
manufacturer while ensuring that nestle name is synonymous with the products of
the highest quality.

Specific objectives:
To know the marketing strategy of Nestle Bangladesh
To find the List of Nestle products.
To find the Segmentation Strategy of Nestle bangladesh
To know the Product mix table of this company
Target marketing strategies of this company
Line streaching Strategies



d.LIMITATION
As far as report writing is concerned, I face various other problems. Thus, few of
the problems faced while preparing this report and some of the weaknesses of this
report are given below-
Nestle is a multinational company thats why I am unable to have
any physical survey. .
Getting relevant papers, documents and information were strictly prohibited.
In web sites there are lacks of information.
It was a very short time thats why I could not go through my report.



2.Company Overview
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 peoples needs, the Nestle Companys first
diversification occurred in 1905 when it merged with the Anglo- Swiss
Condenced Milk Company (1866). Today, processing milk food is still the
companys 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 companys
initiative and bold activity, it has grown into a huge organization, employing
almost 230,000 people in nearly 500 factories worldwide. Nestle products
are now widely distributed on all continents and sold in more than 100
countries.
3.Nestle Principle
Nestle General Principles
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
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 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).
4.NESTLE PRODUCTS.
List of Market Offerings (List of Product & Services of the organization with
Sizes and Prices). Nestle produces a wide variety of food products. A list of
products are described below:
1.Baby foods
2.Sports Nutrition
3.Chocolates
4.waters
5. Beverages
6.Coffee
7.frozen meals
8.Ice cream and frozen treats
9.imported foods
10. Healthcare Nutrition
11.Pet foods

Infant Food
The production of infant food goes right back to the origins of the Nestl
Company. Henri Nestls Farine Lacte was the first product to bear the Nestl
name; it was the first industrially-produced infant food, based on wholesome
cows 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.
The First Cereal for Infants It was against this background that Nestl had
developed his infant food for young children. In 1867 for the first time Nestles
new infant food was tested on a 15-day old boy who was very ill. The boy was
born prematurely and was refusing his mothers milk and all other types of
nourishment. Nestls new food worked, and the boy survived. From the very
beginning, Nestls product was never intended as a competitor for mothers milk.
Nestle believes that during the first months, the mothers 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 Nestl. The World Health Organization (WHO) recognizes
that there is a legitimate market for infant formula, when a mother cannot or
chooses not to breast feed her child. Nestl conforms its infant food formula to the
principles and aim of the WHO. Nestls expertise as the worlds 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
Nestle Breakfast Cereal
Cereals have been a crucial part of mankinds morning meal since time
immemorial. It wasnt until the 19
th
century 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.
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.
Cooking Items
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
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.
Milk and Dairy Products
There is plenty of evidence that milk has always been one of mankinds
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 into condensed milk business.
Nestles 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 1960s. Nestles international
network in technology, distribution and investment has helped expand the
Friskies brand in the international market widely. Today Nestles global
market for cat and dog food exceeds $25 billions

Hot And Cold Beverage
In 1937, after eight years of research, scientists at Nestls research
laboratory formulated a powdered coffee product. It was introduced in 1938
under the brand name Nescaf. It became so popular during World War II
that for one full year the entire output of the Nescaf plant in the USA (more
than 1 million cases) was reserved for military use only. Since then, Nescaf
has become one of the worlds best-known brands. With more than 3,000
cups consumed every second, Nescaf has become the worlds leading
coffee brand. Nestl is a major producer of chocolate-based and malted
drinks. Its leading brands, Nestl Nesquik, Nestl Milo and Nescau are very
popular with a growing number of young people in both developed and
emerging markets. The Companys other beverage products include roasted
coffees for example Dallmayr, Zoegas and Loumidis in Europe as well
as fruit juices. Nestls ready-to-drink beverages Nestea and Nescaf are
sold in various forms (cans, bottles) frequently associated with the Coca-
Cola company.

5.Practice of Marketing Concepts
Nestle Bangladesh ltd most of the time uses Production concept. Cause their
product is not so expensive. Products are affordable even to the middle class
family. And also they are highly available. We can easily find the Nestle product in
any grocery or retailer shops. We can take examples of MAGGIE , Nescafe,
NEDO, kitkat etc. Sometimes the also Use product concept. Their those products
are highly affordable and not reachable to all the sections of peoples. Such as
keylogs chocos. Nestle Cerelac. So we can say that Nestle uses both Product
concept.

6. Evaluating sbu
(Category of their Products, Businesses)
Stars
( nestle beverage)Questions mark
( breakfast cereals)
Cash cow
( baby food items)Dogs
(Pharmaceutical )
STARS The stars are the high relative market share and high market
growth. Nestle beverages are somewhat the stars in their business, because with
the high quality and new designs which comes every now and then makes them
more popular among the customers, because customer with upper class wants the
quality and nestle offers the best quality food items.
CASH COWS
The cash cows are their baby food items nestle cerelace and other baby food
products. Company has to take measures to make these products as stars
DOGS
The pharmaceutical products are nestle Dog, because it has low-share business
with low growth market especially when we talk about Pakistani market. The
company has to think on what it can do by improving the low share and growth
market.
QUESTION MARKS
The question marks are the breakfast cereals. They have high market growth but
low market share. The company has to decide about which question mark they
should try to build into the stars and which one of these should be phased out.
7.Product mix
Width and length
Infant
foods
beverages chocolates pet care other food
items
Carelac Milo kitkat Purina Maggie
Lactogen Pure life shreddies pedigree Herta chilled
meat
Nestle boost Nescafe crunch Keyloges
cornflakes
(kids essential buitoni Other
confectionary
Nestle good
start
Milky bar Cookies and
cakes
Carnation
cream
Depth:
We are showing some produts range size and flavours as depth:
Cerelac:
Cerelac Banana & Wheat with milk available in a 400g tin.
Cerelac Apple & Wheat with milk available in a 400g tin.
Cerelac Mixed Vegetables & Rice with mi k available in a 400g tin.
Cerelac Mixed Fruits & Wheat with milk available in a 400g and 1kg tin.
Cerelac 3 Cereals with milk available in a 400g tin.
Cerelac Honey & Wheat with milk 400g and a 1kg tin
NESCAFE:
Nescafe body partner available in doy pack
Nescafe decafe jar 100 gm
Nescafe 3 iN 1 availabe in soft pack-mild 30 stics,regular 10 sticks,regular 30
sticks,rich 25 sticks
Nescafe classic jar-50 gm,100 gm,200gm
Nescafe gold jar-50 gm,100gm,200gm
Nescafe RTD- 100 gm jar

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)
Chatpata
Tomato

Keyloggs kornflakes:
Keyloggs kornflex cereal 43.0 total ounce two bag value box
Keyloggs kornflex cereal 7 ounce pakage
Keyloggs kornflex single serve cereal



8.Different line stretching strategies:

Nestle has Different Line strecting Strategies.They are using upword,
downward and as well as the combination of both.
Upward line stretching: is used by companies located at the lower end of
the market but to add prestige to their current products and services they
introduce some high profile products. Nestle has added new product those
are having high values.They have added kitkat and crunch ice creams in
their ice cream section.
Downward line stretching: is used by companies located at the upper end
of the market but to fulfill a market gap or to respond to a competitors
attack they introduce some low profile products.For downward nestle has
their own product MAGGIE.Now a days they are also planning to introduce
low cost baby foods
Combination of Both: is used by companies located in the upper or middle
range of the market but to achieve both goals of upward and downward they
offer both high and low profile products simultaneously .NEstle have
Cerelac,they have coffiemate.their product Nescafe is also a good example
of both line stretching.





9.Bases of Segmentation:
Nestle bangladesh ltd. uses Demographic as well as behaverial segmentation
too.
As we know that Demographic segmantation divides the market into
different groups based on some demographical variables.Nestle are launched
their product for some variables such as:
Age:Nestle has launched various types of product for various ages
people.Such as they have launched Nestle Cerelac and Lactogen for the babys
for 1 month to 4 years.Then they have launched Nescafe for the young
people.They have theire product Keylogges Kornflakes vor different ages
people.They have also Milo, Boost for Different ages people.
Family Size:Nestle also launched theier product on the basis of Family
sizes.They have their mini products for small families also they has their
famili size for the big family.Such as Maggie family pack
noodles.Kornflakes Small and large size.
Occupation:They have also various products for various occupated
peoples.Such as they have Nescafe for the people who has to work a
lot.They have also MILO.Its one type of enargy drink.They have also
KEYLOGGS CORNFLAKES.
Loyality Stutus:By many products nestle has segmented their market by
consumer loyality.Consumers are loyal to brands maggie,nescaffe,kitkat etc.

10. Target Marketing Strategies:
Nestle uses Differentiated marketing for target market. It targets different
market segments and designs separate offers for each. It has launched
various types of products to achieve higher sales and stronger position in the
markets within the segments. It has targeted the markets by ages, family
sizes, income, occupation and thus they are launching their products.they are
also targeting the market by loyality stutus.thus consumer can be loyal to
their Brands.




11.Competitors
v UNILIVER

v Craft Food

v Hershey Food

v Dano

v Diploma

The substitute competitors are:

v Cadbury Foods

v Heinz Group

12.Nestle Beverage
Nestle is the worlds largest food and beverage company, with 2009 sales of
over 107 billion CHF .Nestle owns several major consumer brands such as
Stouffers, Nescafe, Kit-Kat, Carnation, Nestle Water, and many others All in
all, 30 of Nestles products earned 1 billion CHF or more during 2008,
making Nestle a major force in the global food and beverage industry. Nestle
competes with companies such as Unilever NV (UN), Hershey Foods
(HSY), Kraft Foods (KFT), Cadbury Schweppes (CSG), and GROUPE
DANONE (DA) in the packaged food market. With only 42% of its food
and beverage sales coming from North America, Nestle is one of the most
geographically diverse of the major food and beverage companies.
Beverages
Beverages comprised 26% of Nestles 2009 revenues making it the second-
biggest segment after Milk Products, Nutritional and Ice Cream. Nestle
owns several international beverage brands including Nescafe, Nesquick,
Nestea, and Nestle Waters, each of which generated more than 1 billion CHF
in 2007. With more than 400 factories around the world, Nestle is able to
formulate each product to local tastes; Nescafe in Switzerland has a
different recipe to the same product sold in the USA. Nestles strong brand
recognition helps them compete with other brands such as Maxwell House,
Lipton, and Evian as well as various store brands. In 2009, Powdered &
Liquid Beverages had sales of 19.3 billion CHF. This segment grew 9.5%
from 2008.
In 2009, Nestle Waters saw sales decrease 1.4% to 9.1 billion CHF. Nestle
Pure Life, the largest water brand in the world, achieved growth of 14%,
while both Perrier and Pellegrino also saw positive growth. However the
segments overall decrease reflects a weakening bottled water market, at
least in the United States. The combination of the recession and upper class
consumers increased environmental consciousness has lead many customers
to cut back on bottled water in favor of tap water and reusable containers. In
2008, bottled water was the third most popular beverage (behind soda and
milk) in the US, but compared to 2007. Americans consumption declined for
the first time, down to 8.7 billion gallons from 8.8 billion gallons. Although
this is a seemingly small decrease, industry experts dont expect bottled
water to bounce back anytime soon, and the trend may expand beyond the
US

Milk Products, Nutritional, and Ice Cream
Milk Products, Nutritional, and Ice Cream was Nestles largest segment in 2009
with 27% of the companies total sales. This divisions brands include Carnation,
Coffee Mate, Dreyers, and Edys, each of which totaled more than 1 billion CHF
in 2007 sales. Nestles milk and ice cream brands compete with products such as
Breyer Ice cream and store brands. Their nutritional products include Gerber
Brand baby food and Nestle brand yogurts. Nestles nutritional products compete
against brands such as Dannon Yogurt and store brands. In 2009, Nutrition had
sales of 10 billion CHF, reflecting organic growth of 2.8%. In particular, Infant
Nutrition saw double-digit growth in most emerging markets, including 30%
growth in Russia. In 2009, the Milk Products segment had revenues of 19.6 billion
CHF with organic growth of 2%.
[33]
The companys Nutrition segment became part
of Nestle HealthCare Nutrition in early 2011 and will report under this wholly
owned subsidiary in the future.
Prepared Dishes and Cooking Aides
Nestles Prepared Dishes and Cooking Aides segment, which contributed 16% of
the companys 2009 sales, consists mostly of products, like microwave lasagna,
that are designed to be ready to eat very quickly. Nestle owns brands such as
Stouffers, Lean Cuisine, Hot Pockets, and Maggi, which each totaled more than 1
billion CHF in 2007 sales. Nestle has increased the nutritional value of its prepared
dishes in order to compete with products such as DiGiorno, Bertoli, and Kraft
Macaroni and Cheese. On January 5, Neslte bought Krafts frozen pizza business
for $3.7 billion, approximately 2.3 times its total sales in 2009. The purchase adds
the DiGiorno, Tombstone, Jacks and Delissio brands to Nestles stable of
products, as well as the license to sell California Pizza Kitchen frozen pizza. In
2009, these brands generated revenues of $1.6 billion for Kraft. With this
acquisition added to Nestles existing product line, the company controls 33% of
the market share for North American frozen foods. In 2009, the segment had sales
of 17.2 billion CHF with organic growth of 0.8%. Consumers in the US bought
more family-sized frozen products such as Stouffers and Hot Pockets than single-
serving dishes such as Lean Cuisine; Pizza was the most dynamic category for
Europe throughout the year.

Confectionery
Nestles Confectionery segment comprised 11% of their total 2009 sales.Nestles
confectionery brands include Kit-Kat and Nestle Chocolate, each of which
generated more than 1 billion CHF in 2007 sales. The Nestle Chocolate brand
produces famous products such as Baby Ruth and Nestle Crunch.Nestles
confectionery products compete with chocolates and candies from Hershey Foods
(HSY) and Cadbury Schweppes (CSG) (recently purchased by Kraft Foods (KFT)
and snacks from manufacturers such as Kraft Foods (KFT), as well as various store
brands. With Kraft Foods (KFT) purchase of Cadbury in January 2010, Nestle
dropped to the third largest chocolatier. In response to the merger, many industry
analysts are speculating that Nestle may set their sights on H.J. Heinz Company
(HNZ), General Mills (GIS), or Hershey Foods (HSY) as potential takeover
targets. Officials from the first two companies have not responded to these rumors,
however Heinzs stock rose more than 5% on possible takeover speculation.

Other Food & Beverages
In 2009, this group, consisting of Nespresso, Nestl Professional, and Cereal
Partners Worldwide, generated revenues of 10.2 billion CHF. The segment grew
6.8% from 2008, spurred largely by Nespressos 25% growth; the brand had sales
of 3 billion CHF in 2009. Nestl Professional, previously Nestl Food Services,
saw business remain essentially flat in 2009 as a result of overall declines in the
food service industry. Cereal Partners Worldwide had sales of more than 2 billion
CHF as a result of mid-single digits growth in 2009. They have ongoing operations
in more than 130 countries and account for nearly 25% of all cereal sales outside of
the United States and Canada.


Pet Care
Nestles Pet Care group contributed 12% of the companys total 2009 Sales.Nestle
owns several pet care brands that produced more than 1 billion CHF in 2007 such
as Purina, Dog Chow, and Friskies. Nestles pet care products compete against
brands such as Iams and store brands. In 2009, Pet Care generated revenues of
12.9 billion CHF with organic growth of 7.9% from 2008. In particular, Purina
outperformed the other brands in its market with mid-to-high single digit growth
around the globe.
Healthcare Nutrition
Using funds from its sale of eye-care company Alcon to Novartis AG (NVS) for
$28.3 billion (USD), Nestle created the Nestle Health Science company.This
wholly-owned subsidiary will create food-based products meant to help prevent
and treat various medical conditions such as heart disease and diabetes. The
company will also oversee the Nestle Institute of Health Sciences which will
undertake research aimed at bridging the gap between pharmaceuticals and food
and unraveling the web of connections between food, drugs, and disease. Nestles
existing Healthcare Nutrition segment will now become part of the new subsidiary.
The majority of the companys brands were acquired from Novartis AG (NVS) in
2007. In February 2011, Nestle purchased UK-based CM&D Pharma; the company
developed a chewing-gum that helps people with kidney disease that is currently in
testing. The purchase is the first for Nestle Health Science as they expand their
portfolio of food-based products that help prevent and treat various medical
maladies.



13.RECOMMENDATON
1. Nestle should expand its business.
2. Nestle should more conscious on its product-life cycle.
3. Nestle should more attentive on its advertising activities.
4. Nestle should improve its product day by day.
5. Nestle should minimize its product price.


14. CONCLUSI ON
Nestle has seen a strong start to 2008, partly thanks to its strategy of increasing
product prices quickly in line with commodity price increases. Through internal
research and development at Nestl there have also been significant advances in
the environmental impact of refrigerants and packaging. Without compromising
product quality there was a reduction of 392 000 tonnes of packaging material
between 1991 and 2008. Evidence shows that Nestl advertised and still advertises
its formula as a risk-free substitute (or even a preferable alternative) to its products,
resulting in increased use.

15.Referrences
1.www.nestle.com
2.Wikipedia