Nestle

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 EBIT as % of sales Net profit as % of sales Capital expenditure as % of sales Market capitalization, end Dec. Earnings per share Dividend (proposed)

109 908 million Swiss francs 15 676 million Swiss francs 14.3% 18 039 million Swiss francs 16.4% 4 869 million Swiss francs 4.4% 150 409 million Swiss francs 4.87 Swiss francs 1.40

Most popular brands Beverages

Prepared dishes and cooking aids

Chocolate, Confectionery & Biscuits

Water

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Milk Products

Nutrition

PetCare

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, Israel

Switzerland

Russia

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 a

rm

Alcon Laboratories, Galderma

ac

eu tic

26.3% Beverages

al

s

Nescafe, Nesquik, Milo, Nestea, Perrier, San Pellegino

6.8%

• Chocolate Kit Kat, Smarties, • Confectionery11.6% Crunch. • Biscuits

25.8%

• Milk Products 17.9% Nestlé, NAN, • Nutrition NIDO, Cooking Aids • Ice Cream 11.6% Dreyer's, Prepared Mövenpick Dishes

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

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Energy & climate change

Thanx