NESTLE

Strategic Management
Presented to: PARAKHIYA VASANT

INTRODUCTION
Nestl is a Swiss company, founded in 1866 by Henri Nestle.

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Brands of Nestle

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Did you know

Nestl markets its products in 130 countries across the world Nestl manufactures around 10000 different products and employs some 250000 people Nestl sells over a billion products everyday

People, products, brands

What makes Nestl the worlds largest food company are the millions of consumers across the globe who put their trust in its products, bite after bite, sip after sip, day after day.

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Nestle India
a subsidiary of Nestle S.A. of Switzerland Incepted in 1962 manufactures a variety of food products such as infant food, milk products, beverages, prepared dishes & cooking aids, and chocolates & confectionary Presently the world's largest and most diversified food company

VISION
Being the best in everything they touch & handle

MISSION
Continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions

Competitive advantages

A pool of qualified suppliers that understand and support Nestls commitment to excellence. A pool of qualified suppliers that are directly aligned with underrepresented and emerging communities and can promote positive relationships with our customers Better quality goods and services at a lower price as a result of increased competition and an extended supply base Access to new capabilities and innovations A competitive advantage as we seek government contracts, and assurance that we are in compliance with the diversity expectations of our public sector contracts.

Major Competitors
AMUL

CADBURY BRU

The Internal Assessment

Nestl describes itself as a food, nutrition, health, and wellness company. Recently they created Nestl Nutrition, a global business organization designed to strengthen the focus on their core nutrition business. They believe strengthening their leadership in this market is the key element of their corporate strategy.

In order to reinforce their competitive advantage in this area, Nestl created Nestl Nutrition as an autonomous global business unit within the organization, and charged it with the operational and profit and loss responsibility for the claim-based business of Infant Nutrition, HealthCare Nutrition, and Performance Nutrition.

The Corporate Wellness Unit was designed to integrate nutritional valueadded in their food and beverage businesses. This unit is responsible for coordinating horizontal, cross-business projects that address current customer concerns as well as anticipating future consumer trends.

Nestls competitive strategies are associated mainly with foreign direct investment in dairy and other food businesses. Nestl aims to balance sales between low risk but low growth countries of the developed world and high risk and potentially high growth markets of Africa and Latin America.

When operating in a developed market, Nestl strives to grow and gain economies of scale through foreign direct investment in big companies. In the developing markets, Nestl grows by manipulating ingredients or processing technology for local conditions, and employ the appropriate brand.

Another strategy that has been successful for Nestl involves striking strategic partnerships with other large companies. In the early 1990s, Nestl entered into an alliance with Coca Cola in ready-to-drink teas and coffees in order to benefit from Coca Colas worldwide bottling system and expertise in prepared beverages.

In Asia, Nestls strategy has been to acquire local companies in order to form a group of autonomous regional managers who know more about the culture of the local markets than Americans or Europeans. Nestls strong cash flow and comfortable debt-equity ratio leave it with ample muscle for takeovers.

Marketing
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Target Market Male and Female; Have many brands and products to meat the taste of each type of consumers.

Have high allocation of advertising budget for endorser contract, TVC, print ads, and sponsorship activities.

Have top endorsers who have a good image in the soap industry.

Distribution
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Nestle has worldwide distribution line Nestle has good distribution line to retailer Nestle has new ordering system, named Futures Ordering Program

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STRENGTHS
strong support from its parent company the worlds largest processed food and beverage company a presence in almost every country strong brands like Nescafe, Maggi and Cerelac continuously introducing new products for its Indian patrons on a frequent basis, thus expanding its product offerings

WEAKNESSES
complex supply chain management

OPPORTUNITIES
Expansion- potential to expand to smaller towns and other geographies Product offerings- The company has the option to expand its product folio by introducing more brands Global hub- Cheaper manufacturing facility at India than in other parts of the world

Competition- immense competition from the organized as well as the unorganized sectors Changing consumer trends- increased consumer spending on consumer durables resulting in lower spending on FMCG products Sectored woes- Rising prices of raw materials and fuels, and interns, increasing packaging and manufacturing costs

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