Nesté

“Good Food, Good Life”

Aleksandra Rybarz
Anne-valérie Prunier
Katharina Peter
Tuğrul Tufan
Yue Zhao
 Present in
more than 80
countries
A Nutrition, Health and
Wellness company

456 Factories
283 000 People
143 Years
Marketing Mix Strategy - I. Selecting the firm 2
 History
Founders Incorporate
Capital and Product
History Current Missions
stockholders Families
Management Values
1866 – 1905
New formula of the breast-milk substitute
invented by Henri Nestlé and marked in
much of Europe.
1905-1918
The merger of Nestlé and the Anglo-Swiss Condensed Milk
Company; by the end of the war, Nestlé's production
had more
than doubled.
1918-1938
The first expansion into new products with chocolate.

Marketing Mix Strategy - I. Selecting the firm 4

1938-1944
The Company's newest product, Nescafé,
as a staple beverage of American
servicemen serving in Europe and Asia.

1944-1975
The merger with Alimentana S.A. and the acquisitions of
Crosse & Blackwell, Findus frozen foods, Libby's fruit juices
and Stouffer's frozen foods;diversification outside the food
industry - Nestlé as a major shareholder in L'Oréal.

1975-1981
The second venture outside the food industry by acquiring
Alcon Laboratories Inc.
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1981-1995
A new round of acquisitions including the
most important - American food giant
Carnation.
1996-2002
The acquisitions of San
Pellegrino (1997), Spillers
Petfoods (1998) and Ralston Purina (2002).

2003+
The acquisitions of Mövenpick Ice Cream, Jenny Craig, Uncle
Toby's, Delta Ice Cream, Novartis Medical Nutrition, Gerber,
Sources Minérales Henniez; the strategic partnership
with chocolate maker Pierre Marcolini.
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Founders and Current
Management
Founders Incorporate
Capital and Product
History Current Missions
stockholders Families
Management Values
 Founder: Henri Nestlé
• A pharmacist developed a
food for babies who were
unable to breastfeed

• Birth: 10. August 1814 in

Frankfurt am Main
• Dead: 7. July 1890
in Glion, VD, Schweiz

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 Organisational structure
Main organisational structure by geographies
• Example: Zones Europe, Americas and
Asia/Oceania/Africa
• exception: Nestlé Waters and Nestlé
Nutrition managed on global basis
• Nesspresso; pharmaceutical products.

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CEO: Peter Brabeck-Letmathe

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 Business Principles
• Sustainability for shareholders, employees,
consumers, and business partners
• Long term business development
• Company has responsibility for its customer
and the environment
• Respect the local law in each market

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Incorporate missions and
values
Founders Incorporate
Capital and Product
History Current Missions
stockholders Families
Management Values
 Incorporate missions and values

• Healthy products with high quality

• Customers and consumers

• Legislation and regulations

• Human Rights

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 Incorporate missions and values
• Childlabour

• Protection of the environment

• The Nestlé Water Policy

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Capital and stockholders
Founders Incorporate
Capital and Product
History Current Missions
stockholders Families
Management Values
 CAPITAL &STOCKHOLDERS

In 2006, the shares was supposed to be CHF

403 520 000. After the three years reduction
of 2 784 300, 7 663 200 and 10 072 500
respectively , the share capital shares an
amount of CHF 383 000 000 at the end of
2008.

Marketing Mix Strategy - I. Selecting the firm 16

 CAPITAL &STOCKHOLDERS

Due to listing no more than 100 000 000

registered shares with a nominal value of
CHF 0.10 each, the share capital more or
less increased totally CHF 10 000 000.

Marketing Mix Strategy - I. Selecting the firm 17

 CAPITAL &STOCKHOLDERS

In 2008, the turnover of Nestle

were CHF 109.9 bn, plus a net
profit of CHF 18.0 bn, and the
figures were 107.6bn and
10.65 bn respectively the year
before.

Marketing Mix Strategy - I. Selecting the firm 18

 CAPITAL &STOCKHOLDERS

Item Figure
Capital expenditure 4 869 million Swiss
francs
as % of sales 0.044
Market capitalization 150 409 million Swiss
(end December) francs
Earnings per share 4.87 Swiss francs
Dividend (proposed) 1.4

Marketing Mix Strategy - I. Selecting the firm 19

 Product families
Founders Incorporate
Capital and Product
History Current Missions
stockholders Families
Management Values
 Product families
Beverages

PetCare Nutrition

Professional
Products
for NESTLÉ Milk Products
foodservices

Ice cream Confectionery

Prepared
dishes and
cooking aids

Marketing Mix Strategy - I. Selecting the firm 21

 Product families
• Beverages
– Coffee: Nescafé, Nespresso
– Water: Nestlé Pure Life, Vittel, S.Pellegrino.
– Other: Nestea, Nesquik, Nescau
• Milk products
– Shelf Stable: Nestlé, Nespray, Nesvita,Coffee-mate, Juicy
Juice
– Chilled Dairy: Nestlé, Yoco.
• Ice cream
– Nestlé, Antica Gelateria del Corso, Dreyer’s/Edy’s,
Drumstick/Extrême, Maxibon/Tandem, Mega, Mövenpick,
Sin Parar/Sem Parar/Non Stop

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 Product families
• Prepared dishes and cooking aids
– Bouillons, soups, seasonings, pasta, sauces, noodles: Maggi,
Buitoni, Thomy, Winiary, Torchin, Osem, Totole, Haoji
– Frozen foods (prepared dishes, pizzas, small meals): Stouffer’s
– Refrigeratedproducts (cold meat products, dough, pasta, pizzas,
sauces, snacks): Nestlé, Buitoni, Herta, Toll House
• Confectionery
– Nestlé, Crunch, Cailler, Galak/Milkybar, Kit Kat,
Smarties,Butterfinger, Aero, Polo
• Professional products for foodservices
– Chef, Davigel, Minor’s

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 Product families
• Nutrition
– Infant: Nestlé, Nan, Beba, Nidina, Nidal, Good Start,
Lactogen,Guigoz, Nestogen, Alfaré, Mom&Me,
Nestum, Cerelac
– HealthCare: Resource, Boost, Nutren, Peptamen
– Performance: PowerBar, Musashi
– Weight Management: Jenny Craig
• PetCare
– Purina, Friskies, Fancy Feast, Alpo, Gourmet, Mon
Petit, Felix, Dog Chow, Cat Chow, Pro Plan, Purina
ONE, Beneful, Tidy Cats, Purina Veterinary Diets

Marketing Mix Strategy - I. Selecting the firm 24

Thank you for your attention
Aleksandra Rybarz
Anne-valérie Prunier
Katharina Peter
Tuğrul Tufan
Yue Zhao