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INRODUCTION & HISTORY OF Nestl

Nestl the worlds number 1 food company, 8th biggest company of Europe 31st biggest company of world Having 2million 20 thousand people power all over the world 500 factories Present in 80 countries of globe

HOW THEY STARTED

Henri Nestl established Nestl in 1867in Switzerland His first customer was infant for whom first lectogen formula Farine Lacte

MARKETING OF HIS FARINE LACTE


Farine Lacte Nestl was being marketed in much of Europe due to its life saving specialty

MISSION
Good food good life

VISION
They want to explore all over the worldsfrom baker to babies, parents to pet owners single servings to catering: providing for all their needs always with the assurance of outstanding quality.

COMPANY STRUCTURE
Nestle head-office in Pakistan is in Lahore. It also has its registered office in Lahore. Nestle has divided the whole Pakistan in to three zones. Northern Zone Central Zone Southern Zone Nestle has 8 regional offices in all over the Pakistan. These offices work under their respective zonal offices.

FACTORIES
Nestle has two factories in Pakistan for the production of different food items. One in Sheikhupura near Lahore and other in Kabeerwala near Khanewal

CEO
MANAGEMENT DIECTOR

FINANCE MANAGER

MARKETING MANAGER

PRODUCTION MANAGER

NATIONAL SALES MAANGER

ZONAL SALES MANAGER NORTH

ZONAL SALESMANAGER CENTER

ZONAL SALES MANEGER SOUTH

SALES DEPT A/C DEPT SALES PROMOTION DEPT REGONAL SALES MAANGER SALES DEPT AREA SLAES SUPERVISOR SALES FORCE A/C DEPT

ORGANIZATIONAL CULTURE
Nestl has very strong flexible liberal structure with tight internal control with strict check & balances Zonal and regional managers are told budget limitations & targets guidelines from Vevy

ORGANIZATIONAL COMMITMENT
The Nestl Environment Progress Report 2000 describes the results of continuous improvement in their environmental practices This leadership is only possible through the collective commitment of the tens of thousands of individual Nestl employees who, on a daily basis, work to make this a better planet on which to live. This Report is dedicated to them.

RECRUITMENT
Each year, they recruit a number of top young graduates . All have strong academic qualifications, essential language skills and relevant internships or professional experience

RECRUITMENT CRITERIA
High degree of adaptability and mobility Unquenchable thirst for knowledge Superb communication skills The ability to assume control anywhere in the world

TRAINING OF PEOPLE
firstly they will gain experience in sales and marketing-related activities and other areas of the business (such as production, supply chain and information systems, finance and control,purchasing,comm unication and market research)

WHAT EMPLOYEES GAIN


Immediate job satisfaction Long-term career development Superior pay and benefits The personal growth that comes from experience and training Materialistic as well as internal motivation

DOWN WITH MISSION STATEMENT


Voice of actions,achievements & words and promises. An attitude to life and work. Different job at different place. Great businesses by great people Strength in diversity

REWARD & BENEFITS


Health screening/on-site occupational health facilities Sick pay 25 days' holiday Mobile phone on a business need basis Company bonus scheme Contributory final salary pension scheme Childcare vouchers (dependant on salary) Gym facilities at larger sites

LEADERSHIP PRINCIPLES
Their motto is "Teamwork with responsible leadership". Nestl is people & product oriented Value for its stake holder but would not favor short term profit at expense of long tem business development As decentralized as possible Concept of Continuous improvement of activities

Nestl FAVORS
Flat organization structure

Clear level of responsibility


Function responsibilities Team with its leader

BUSINESS PORTFOLIO
Nestle a multinational company has acquisited and merged with various companies SBUs like pharmacy, breakfast cereals and cosmetics, ice cream, frozen foods, sauces.

BABY PRODUCTS
'Farine Lacte' Nan Lactogen Cerelac

MILK AND DAIRY


Nido Nespray La Lechera

CHOCOLATE AND CONFECTIONARY


Kitkat Nestle crunch Polo Foxs Allens soothers Lion nuts Galak milky bar

BEVERAGES
Nescaf Milo Nestle Nesquik Nescau Nescaf Rich Blend Nescaf Encore Nescaf Frothy Nescaf Ice. Frost Nestle orange juice Carnation Libby Caro Nestea

BOTTLED WATER
Nestle pure life Ava Vittel Perrier Contrex, S.Pellegrino Levissima Vera Panna Frst Bismarck Naleczowianka Arrowhead Poland Spring Zephyrhills Deer Park Ozarka

BCG MATRIX
Stars Milkpak, Every day tea whitener
Cash cows Nido, Nescafe, Nestle pure life

Question marks ?? Maggi noodles


Dogs Confectionaries, Polo, Foxs, Kitkat

NUTRITION

INNOVATION AND RENOVATION

French Market Example of " Innovation as Growth Driver "

48 %

PRESENCE OF PRODUCTS

DEMAND & DIVISION OF ZONES


The demand for Nestl's product was so great that it was soon being sold throughout Europe and as far a field as Russia, the United States and Australia. World in three zones US, Asia, Oceania and Africa

AQUISITIONS AND MERGERS


Joint venture with Milkpak with Fontalia for bulk water with LOral Chef America Acquisition Nestl Waters acquires Saint Springs.

ASIA --A DYNAMIC MARKET


Nestl Pure Life In Asia Launched in Pakistan in 1998 New markets in China, Thailand, and the Philippines. Nestl Waters is number one in Vietnam with its La Vie brand. Annual consumption per person varies in Asia, from 1.2 L in Pakistan to 47 L in Thailand.

AREAS OF TECHNOLOGY
Concentration on R&D department. Standardization of laborarties. Quality maintenance of products Addition of confectionaries Changes in existing products Biotechnology adoption

MANAGEMENT PROCESS
PLANNING
ORGANIZING

LEADING

CONTROLLING

Recognition R&D Plan Formulation Estimation

People Process Situation

Decentralized People oriented Motivating activities

Comparing of Manufactured products

PLANNING
Needs of people are observed Plans by the process of market share Estimate the cost & expected profit

ORGANIZING
Nestle organizes the activities like Which kind of people are required Process that would be controlled by them & under which situation this process would be done

LEADING
Nestle is more people oriented and product oriented Then it is system oriented As decentralized as possible

CONTROLING
Comparing of manufactured products with standard products After feed make make any change if required

SWOT ANALYSIS
STRENGHT Value added products Brand name Six brands having 70% group sales R&D department Unique features and technologies 40 & 60% test result criteria

SWOT ANALYSIS
Weakness Less knowledge about host country Opportunity Market expansion by using biotechnology Threat Baby milk action New and indirect competitors Product acceptance

PRODUCT COMPARISION

COMPANY PRODUCT
QUALITY

SERVICE Excellent Normal Normal

LOCATION

EXTRA FACILITY Good Normal Average

Nestl Haleeb Halla

Better Normal Good

Excellent Normal Good

MARKET SHARE OF PRODUCTS


60% 14% 9% 9% 5% 11% Milk Cereals Maggi Sauces Mineral Water & Juices Others

PEST ANALYSIS
Political Strictly comply with rules and regulations Application as well Opposition of unjustified bans Economic Nestl's business objectives is to manufacture and market the Company's products to create value that can be sustained over the long term for consumers, shareholders, employees, business partners and the large number of national economies in which Nestl operates.

PEST ANALYSIS
Social Cutting the importing cost Hygienic environment for manufacturing Collection of expired cereals Helping to decrease unemployment in country Technological Strong belief on innovations Change in existing products Biotechnology

MARKETING MIX
Products Dairy products Soluble coffee Mineral water Other beverages Infant foods and dietetic product Frozen foods Chocolate and confectionery

MARKETING MIX
Price Own set of techniques Emphasis on market demand Buying power of customer Companys effect on prices Price structure in Pakistan Place Place for customers Products availability Middle man and distribution

MARKETING MIX
Promotion Using available promotional tools Promotional themes Other ways Prizes Door step service Free sampling

PORTERS FIVE MODEL


Threat of new entrants entrants

suppliers Bargaining power of suppliers

Rivalry among current competitors

substitute Threat of substitute

buyers Bargaining power of buyer

FUTURE PLANS
NESTLE has a plan that in year 2005 it will be the largest company of Pakistan according to the turnover. They are also introducing Sweet Treats in the market, and some new tastes. They say that At any time they can do any thing.

Conclusion
Nestle is a market leader due to different reasons: Its price is high against its competitors but it matches its quality with its competitors. Nestle is using its brand name to promote this product. Its packing is good. We can easily find Nestle from any retailer shop. Nestle brand name is very popular as compared to its competitors. Due to its advertisement, Nestle attracts more customers and it has a very prosperous future if it continues to promote its and bring all the possible innovational aspects using different product line strategies. It has maintained the quality of its products like NIDO.