Presented By:

Prakash Sharma
PG-I-011
IMM, New Delhi
History & Background
• In 1866, Henri Nestle founded the company in
Switzerland

• Nestlé is one of the largest food and beverage

company in the world with sales of about CHF 109.9
billion.

• 283,000 employees worldwide

• Operates 479 factories in 82 countries

• Nestlé is about twice the size of its nearest competitor

in the food and beverage sector.
Sales 109 908 million Swiss francs
EBIT 15 676 million Swiss francs
as % of sales 14.3%
Net profit 18 039 million Swiss francs
as % of sales 16.4%
Capital expenditure 4 869 million Swiss francs
as % of sales 4.4%
Market capitalization, end Dec. 150 409 million Swiss francs
Earnings per share 4.87 Swiss francs
Dividend (proposed) 1.40
 Most popular brands

Beverages Chocolate, Confectionery & Biscuits

Prepared dishes and cooking aids Water

Continue….

Milk Products PetCare

Nutrition Ice-cream Pharma

 Local tastes and needs
 Nestlé tailors products to local tastes
and needs:
– around 200 Nescafé blends to answer local
consumers expectations

Japan Poland Europe Malaysia Africa, Greece Russia

Switzerland
Russia, Israel
Joint Venture
Nestlé is party to a number of important joint venture:
• BPW (Beverage Partners Worldwide) with the Coca
Cola Company
• CPW (Cereal Partners Worldwide) with General
Mills
• Innéov with L'Oreal
• Galderma, Lacteal's etc
Nestlé India
 seven factories and a large number of co-packers
 At 1912, traded as The Nestlé Anglo-Swiss Condensed Milk
Company (Export) Ltd.
 first factory in 1961 at Moga, Punjab.
 direct and indirect employment, including farmers, suppliers of
packaging materials, services and other goods.
 provide Clean Drinking Water and educate children in schools
to conserve this scarce resource
 create awareness about the right to education and encourages
the communities around its factories to send their children to
school.
 helps in the maintenance of public parks and green belts, and
facilitates blood donation camps and health awareness
programs.
Nestlé India
performance:
 net profit- 18.1%, amounting to Rs. 95.7crores, and
the net sales figure marks a rise of 23.2%.
 exports delineate improvement by 15.6 %, which is
calculated as Rs. 82crores.
 net domestic sales- Rs. 756.9 crores
Nestlé India
science-based nutrition products

 Nestle India is stepping up focus on science-based nutrition

foods in line with its global strategy
 recently set up a 500 million fund, named `W Health' to
complement Nestlé's internal R&D.
 Example, Nestlé's Milo for instance, was re-launched with
energy releasing Actigen-E, a team of B-vitamin complex and
essential micronutrients to boost optimum performance.
 also launched Nestle Ceremeal Daliya, a scientifically balanced
meal solution for two-plus toddlers, containing essential
nutrients.
Nestlé India
most popular brands
Nestlé Oceania

 wholly-owned subsidiary of the Swiss-based, global food and

beverages company, Nestlé S.A.
 Regions: Australia, New Zealand, and the Pacific Islands.
 employs more than 5,700 people in over 70 offices
 selling A$268 million Nestlé products and raw materials
 Athlete Career Scholarships
 Community Environment Program
 NESTLÉ Golden Chef's Hat Award
 The MILO in2CRICKET Program offers children aged 5 to 10
years the opportunity to kick start their cricket career
Nestlé Oceania
most popular brands
MARKETING MIX
Product positioning

 favor the rules of free competition

 under a clear legal framework
 Create and respond to demand for its product.
 Nespresso is a brilliant example
Place

decisions depend on:

 storing and transporting of products
 channel of distribution

Price
 ethnocentric pricing policy
(per unit price of an item to be the same, no matter where in
the world the buyer is situated)
 geocentric pricing policy approach in the
pharmaceutical product.
Advertising, Promotion &
Packaging
Advertising
• through newspapers, magazines, television, radio, billboard
or the internet
• Unique, Use creative slogan
• Example- Nesquik Rabbit

Packaging
mainly in plastics, but also to a lesser extent across metals and
paper and broad

Promotion
• Professional Athletes, Famous individuals
• Example: U.S. Nestle Crunch Commercials staring Shaq
 Sales by Product Group in
2008
Ph Nescafe, Nesquik,
arm Milo, Nestea,
Alcon Laboratories,
ac Perrier, San
eu 26.3% Pellegino
Galderma tic
al Beverages
s
6.8%
Kit Kat, • Chocolate
Smarties, • Confectionery11.6% 25.8%
Crunch. • Biscuits • Milk Products
17.9% • Nutrition Nestlé, NAN,
Cooking Aids NIDO,
• Ice Cream
Prepared 11.6% Dreyer's,
Dishes Mövenpick
PetCare
Stouffer's, Buitoni,
Maggi
Pro Plan, Purina ONE,
Friskies, Dog Chow
 Macro analysis
Health & wellness
Growing and developing populations

Micro analysis
 Quality and safety assurance
 Commercial behavior
 Environmental practices of suppliers
 Health & safety
 Energy & climate change
Thanx