...Nestle: Sustaining Growth in Mature Markets Describe the characteristics of each of the following elements in the Current Competitive Landscape: Globalization, Technology, Knowledge, Strategic Flexibility, Quality, and Profit Pool. Nestle’ recognizes that increasing globalization is leading to the development of more and more international recommendations. Although, as a general rule, these recommendations are addressed to governments they inevitably impact on business practices. [ (Brabeck-Letmathe, 2004) ]. The internet is changing the way of doing business. It concerns business-to-business relations and also the Company’s interaction with consumers. In this respect nestle’ S.A. has an Internet Privacy Policy which is available on the Corporate Website. This policy aims to protect the privacy of the users; it covers, for instance, the accessing, deleting or correcting of information, the security of information, and relates also to tracking technologies [ (Brabeck-Letmathe, 2004) ]. Nestlé’s broad known of their products and laws that are required in order to design different product are impeccable. Needless to say one company has to know about water, using raw materials, nutrition for not only infants but everyone including animals. Nestlé’s knowledge of human rights gives them a strong understanding of strategic flexibility. Nestle’ recognizes that governments are ultimately responsible for the establishment of a legal framework for protecting human rights...
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...Chapter-1 | Introduction | Nestlé is a multinational food processing industry headquartered in Vevey, Switzerland. Nestlé has around 461 factories, operates in 83 countries, and employs around 330,000 people. It is the largest food company in the world measured by revenues. Nestlé Logo Nestlé Logo Nestlé’s products include baby food, breakfast cereals, chocolate, coffee, culinary, dairy, drinks, confectionery, ice cream, bottled water etc. Twenty nine brands of Nestlé are available throughout the world including Nescafe, KitKat, Smarties, Nesquik, Nespresso, Maggi etc. Key information regarding the company is mentioned below: Type Societe Anonyme Industry Food Processing Founded Anglo-Swiss condensed Milk Company (1866) Farine Lactée Henri Nestlé(1867) Nestlé and Anglo-Swiss Condensed Milk Company(1905) Founder(s) Henri Nestlé, Charles Page, George Page Headquarters Vevey, Switzerland Area served Worldwide Key People Peter Brabeck-Letmathe (Chairman) Paul Bulcke (CEO) Operating $11.55 billion (2012) income Employees 330,000 Website www.nestle.com 1.1 Nestle History Henry Nestlé Henry Nestlé The key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy,economical alternative to breastfeeding for mothers who could not feed theirinfants at the breast.In the mid-1860s Nestlé, a trained pharmacist began experimenting with variouscombinations of...
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...Initiating Coverage March 23, 2012 Rating Matrix Rating Target Target Period Potential Upside : : : : Buy | 5074 12-15 months 10 % Nestlé India (NESIND) Strong brand dominance to rule growth… CY13E 16.8 18.0 19.0 19.0 | 4604 YoY Growth (%) (YoY Growth) Net Sales EBITDA Net Profit EPS (Rs) CY10 21.9 20.8 25.0 25.0 CY11 19.8 24.3 17.5 17.5 CY12E 18.8 17.3 22.4 22.4 Current & target multiple P/E (Adjusted) Target P/E EV / EBITDA P/BV Price / Sales RoNW RoCE CY10 53.0 59.9 35.3 51.9 7.1 95.7 131.2 CY11 43.6 51.0 29.2 34.8 5.9 75.5 62.3 CY12E 37.7 41.7 24.7 24.2 5.0 64.1 64.6 CY13E 31.7 35.0 20.8 18.1 4.3 57.1 67.0 Stock Data Bloomberg/Reuters Code Sensex Average volumes Market Cap (| crore) 52 week H/L Equity Capital (| crore) Promoter's Stake (%) FII Holding (%) DII Holding (%) NEST.IN / NEST.BO 17,361.7 6,515.0 44,389.8 4588 / 3501 96.4 62.8 10.9 8.0 Comparative return matrix (%) Return % HUL ITC GSK Nestle 1M 2.9 4.6 5.3 2.9 3M 9.1 (3.1) 7.8 9.8 6M 5.8 19.3 15.1 4.8 12M 25.2 47.9 29.2 22.7 Nestlé India Limited (NIL), the undisputed leader of instant noodles (~88% share by volume in FY11) and milk products segment in India, is largest food company in country. Its strong brands, ‘Maggi’, ‘Cerelac’, ‘Nescafe’ and ‘KitKat’ have become synonymous with the respective categories. Despite increasing competition in the segments (noodles, milk products and chocolate), NIL’s strong brand value has helped it to consistently maintain its volume growth (~12% CAGR FY04-11). Going ahead...
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...Caso Nestlé Italy Resumen Ejecutivo Actualmente presenta el inconveniente de que en Italia el consumo de Nescafé es mínimo, por lo que requiere readecuar su estrategia de marketing para aumentar el nivel de sus ventas. El problema principal de Nescafé es que el consumidor no llega a percibir el atributo más valorado que es sabor/aroma, “siente que le falta algo” para ser considerado Análisis DAFO Debilidades - Nescafé tiene menos del 1% del mercado en Italia. - La Inversión en publicidad como proporción a las ventas disminuyó en los últimos 3 años, pasando del 17,7% en 1986 al 5,9% en 1988. (Anexo 7) - La estrategia actual de marketing no es clara y no está generando los resultados esperados. Amenazas - Ha aumentado el cuidado de la salud y el consumo de productos sanos, siendo considerado el café malo para la salud. - Un estudio realizado demostró que el consumo de café instantáneo es mínimo. - Existen fuertes competidores del mercado de café, especialmente Lavazza, Procter & Gamble y C&B. - En Italia el consumo del café instantáneo es del 1% del total del consumo de café. - Muchos consumidores consideran que el café de cafeterías es mejor que el elaborado en casa. - Se ha demostrado que la apariencia de Nescafé no es asociada con la del café “real”, a demás de ser consumido por personas vagas y solitarias. Fortalezas - Nescafé ha estado por 30 años en ese país. - Nestlé compite mundialmente con una amplia variedad de productos como chocolate...
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...honorable Senior lecture, Department of Business Administration, East West University whose enthusiastic guidance and help during the entire study period made it possible for us to prepare this report. We are grateful to some prominent authors worldwide whose book I have consulted in the preparation of the assignment. We also thank to our course mates for their advice and comments to the success of the report. Thank You, Jahid Hasan Rajib Id- 2010-3-13-059 On Behalf of the Group September 28, 2012 Kashfia Ahmed Senior Lecture Department of Business Administration East West University 43 Mohakhali C/A, Dhaka- 1212, Bangladesh. Subject: Submission of Assignment on “Marketing Strategy of Nestle. Dear Madam, With due respect, we are please to submit herewith the assignment on “Marketing Strategy of Nestle” that you are assigned us to prepare by August 4, 2011. Thank you for assignment us such...
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...honorable Senior lecture, Department of Business Administration, East West University whose enthusiastic guidance and help during the entire study period made it possible for us to prepare this report. We are grateful to some prominent authors worldwide whose book I have consulted in the preparation of the assignment. We also thank to our course mates for their advice and comments to the success of the report. Thank You, Jahid Hasan Rajib Id- 2010-3-13-059 On Behalf of the Group September 28, 2012 Kashfia Ahmed Senior Lecture Department of Business Administration East West University 43 Mohakhali C/A, Dhaka- 1212, Bangladesh. Subject: Submission of Assignment on “Marketing Strategy of Nestle. Dear Madam, With due respect, we are please to submit herewith the assignment on “Marketing Strategy of Nestle” that you are assigned us to prepare by August 4, 2011. Thank you for assignment us such...
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...Nestlé is the largest food and beverage company in the world. Founded and headquartered in Vevey, Switzerland. It is also well on its way to becoming world leader in nutrition, health and wellness. Nestlé is more than just the largest food and Beverage Company in the world. Increasingly, Nestlé is becoming the world’s leader in nutrition, health and wellness. Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Nestlé employ around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world. -BACKGROUND: Nestle company had started off from a single man's idea, and developed into a giant corporation. In 1866 Henri Nestle, a pharmacist, developed a milk food formula for infants who were unable to tolerate their mother milk. His product became a success, and it created a demand throughout Europe. As Nestlé's popularity grew more businesses wanted to merge and become partners with Henri Nestlé's business. From 1866 to 1947 the Nestle Company had gone through several name changes. In 1905, Angelo-Swiss Condensed Milk Co. and Farine Lactee Henri Nestle merged and the company's name became Nestle & Anglo-Swiss Condensed Milk Co. Then in 1929, Peter-Cailler-Kohler Chocolate Suisse's S.A merged with the company. The name was then changed to Nestle &Angelo-Swiss Holding Co. Ltd, on November 27, 1936. In December 1947, Co acquired all shares capital of the Alimentana S.A Company...
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...Report for case study: changing nestle Introduction of the Nestle In this study, it tells about the history background of Nestle. Nestle begin with Swiss national organization, they just only sold through sale agents to countries outside of its home market. Then, in 1900, Nestle change approach to global expansion and begin purchasing local subsidiaries in foreign market. Nestle launch into American market when First World War. During World War, Nestle grep the opportunity to sell daily product and their demand increase. In Secondly War, Nestle feeling of isolation in Switzerland led to transfer of many executive offices offshore to the United State. The movement offshore is one of the alternatives by Nestle to increase efficiency and effectiveness of the company. Furthermore, Nestle make first diversified with L’Oreal and become biggest shareholder in that company. This is one of the alternatives to promote growth of the company. Then, Nestle made another merge with Alcon Laboratories In cooperation which is pharmaceutical and ophthalmic product. Now, Nestle have change their CEO to Brabeck- Leetmathe, he has replacing 10 new executive in the organization. Brabeck want to focus on developing the strength of the organization. Nestle choose to maintain their longevity of the organization rather than improve its short term operating profit. In point of view of technology, Nestle do not deny the important of IT as a tool that can be used within the organization, but they more...
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...company. And also we are going to explain briefly about their internal environment includes their resources, type of their resources, company’s capabilities, evaluate their core competencies and so on. PROFILE OF THE COMPANY Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Sales at the end of 2004 were CHF 87 bn, with a net profit of CHF 6.7 bn. We employ around 247,000 people and have factories or operations in almost every country in the world. The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. BACKGROUND [pic] Nestle was promoted by Nestle Alimentana, Switzerland, a wholly owned subsidiary of Nestle Holdings Ltd., Nassau, Bahama Islands. Nestle is one of the oldest food MNC operating in India, with a presence of over a century. For a long time, Nestle India’s operations were restricted to importing and trading of condensed milk and infant food. Over the years, the...
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...Henri Nestlé AKA Heinrich Nestle Born: 10-Aug-1814 Birthplace: Frankfurt am Main, Germany Died: 7-Jul-1890 Location of death: Glion, Switzerland Cause of death: Heart Failure Remains: Buried, Territet, Montreux, Switzerland Gender: Male Race or Ethnicity: White Sexual orientation: Straight Occupation: Business Nationality: Switzerland Executive summary: Invented infant formula Born in Germany, as a young man Heinrich Nestle moved to a French-speaking area of Switzerland, where he changed his name to the more French-sounding Henri Nestlé. Working as a pharmacist's apprentice, he became concerned about infant mortality, and created a source of nourishment for babies who are allergic to mother's milk. After his farine lactee -- a dry mixture of cow's milk, sugar, and chemically-altered wheat flour -- saved an infant's life in 1867, Nestlé began marketing the first commercially-made infant formula. He retired in 1874, only seven years after founding his company, and Nestlé's chocolates and candies, coffees and seasonings, frozen foods and pet foods and dozens of other products were all added after the founder's death. Ironically, Nestlé's first product has become its most controversial. Nestlé (the corporation, not the man) has been criticized for marketing infant formula in third-world nations, where the "just add water" instructions are dangerous because local water frequently carries disease, and where poor and uneducated parents might not understand that unless...
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...Good Food, Good Life Nestle • Nestlé was founded in 1867 by Henri Nestlé in Switzerland • Merged with the Anglo-Swiss Condensed Milk Company in 1905 • Today it is the world's largest and most diversified food Company, and is about twice the size of its nearest competitor in the food and beverages sector. • Nestlé employ around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world Nestlé Principle • Nestlé is based on the principle of decentralization, which means each country is responsible for the efficient running of its business - including the recruitment of its staff. Nestle India Products Nestlé India - Famous brand names Milk Products & Nutrition Nestle Milk Nestle Slim Milk Beverages Nescafe Classic Nescafe Sunrise Premium Prepared Dishes & Cooking Aids MAGGI 2-MINUTE Noodles MAGGI Imli Pichkoo Chocolates & Confectionary Nestle Kitkat Nestle Munch Nestle Dahi Nestle Bhuna Jeera Raita Nestea Nestle Milkmaid Nescafe Cappuccino Nescafe Sunrise Nestea Iced Tea MAGGI Sauces MAGGI Healthy Soups MAGGI CUPPA MANIA MAGGI Vegetable Atta Noodles Nestle Bar One Nestle Milky Bar Nestle Polo Nestle Eclairs Nestle Everyday Whitener MAGGI Pazzta Distribution System • Competitive edge over its existing rivals. • Nestlé has its own distribution networks equipped with all necessary transportation facilities. • They transport their products at major regional sales offices, which are situated...
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...BACKGROUND Nestle is the world's leading nutrition, health and Wellness Company. Their mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. Nestle Foods was started by Henri Nestle in the mid eighteenth century, headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues. In his bid to find an alternative to breast milk for babies whose mothers could not nurse in order to reduce infant mortality. Consequently Nestlé’s first customer was a premature infant who could tolerate neither his mother’s milk nor any of the conventional substitutes and had being given up for lost by doctors. The value of the product was recognized after it saved the child’s life. Henri Nestle showed an early understanding of the power of branding as he adopted his very own coat of arms as the company’s logo and refused to allow Nestle in various countries to have different logos. The coat of arms reflected his name; which meant little nest in his dialect as it consisted of a birds’ nest with a mother bird and her three little chicks. The company expanded its product base very quickly, with the collaboration of Daniel Peter whose company figure out the mix of milk with cocoa powder to make milk chocolate. They also merged with Henri Maggi’s whose company created powdered soups and bouillon cubes, sources and flavorings...
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...The Nestle Company is a global organization with a well-known and reputable reputation since 1886. The company was founded by Henri Nestlé in Vevey Switzerland where there headquarters remain to this day. The Nestle Corporation is a leader in health, nutrition, and wellness and its company’s mission is to promote “Good Food Good Life.” It is an organization that thrives on looking forward and comprehends the trends and forces that shape global markets. The long- term vision for the Nestle Company is to continue to create new products while maintaining the integrity of their signature ones providing customers with the best tasting, most nutritious food and beverage choices from morning to night (Nestle, 2011). Nestle employs more than 280,000 associates all around the world with factories or operations in almost every part of the world. This has allowed for the organization to continuously cultivate and expand on the understanding on an evolving global market. The Nestle portfolio has brands in almost every category. These brands includes: baby food, bottled water, chocolate, coffee, frozen food, dairy, food service, health care nutrition, ice cream pet care, sports nutrition and weight management (Nestle, 2011). Nestle organization is seeking to enter a new product for professional athletes and exercise fanatics. The Nestle Company entered the athletic market with a performance bar called Power Bar. This is a sports nutrition product that is formulated to deliver maximum energy...
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...Nestlé is the largest food and beverage company in the world. Founded and headquartered in Vevey, Switzerland. It is also well on its way to becoming world leader in nutrition, health and wellness. Nestlé is more than just the largest food and Beverage Company in the world. Increasingly, Nestlé is becoming the world’s leader in nutrition, health and wellness. Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Nestlé employ around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world. -BACKGROUND: Nestle company had started off from a single man's idea, and developed into a giant corporation. In 1866 Henri Nestle, a pharmacist, developed a milk food formula for infants who were unable to tolerate their mother milk. His product became a success, and it created a demand throughout Europe. As Nestlé's popularity grew more businesses wanted to merge and become partners with Henri Nestlé's business. From 1866 to 1947 the Nestle Company had gone through several name changes. In 1905, Angelo-Swiss Condensed Milk Co. and Farine Lactee Henri Nestle merged and the company's name became Nestle & Anglo-Swiss Condensed Milk Co. Then in 1929, Peter-Cailler-Kohler Chocolate Suisse's S.A merged with the company. The name was then changed to Nestle &Angelo-Swiss Holding Co. Ltd, on November 27, 1936. In December 1947, Co acquired all shares capital of the Alimentana S.A Company...
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...Nestlé in 2008 PAGE LIST COURSEWORK COVER COVER……………………………………………………………………………………1 PAGE LIST………………………………………………………………………………..2 INTRODUCTION……………………………………...…………………………………3 HISTORY……………………………………………..…………………………………..4 * TIMELINE……………………………………………….………………………..7 BUSINESS MODEL AND FRAMEWORK…………………………...…………………8 QUESTION AND ANSWER………………………………………………..……………9 * QUESTION 1……………………………………………………………………...9 * QUESTION 2………………………………………………………….…………14 * QUESTION 3………………………………….…………………………………17 * QUESTION 4……………………………………………….……………………19 * QUESTION 5…………………………………………………………….………20 ANALYSIS………………………………………………………………………………22 * SWOT……………………………………………………………………………23 * PORTER’S 5 FORCES……………….…………………………………………30 * PORTER’S VALUE CHAIN……………………………………………………36 * BCG MATRIX…………………………………………..………………………39 * PORTER’S GENERIC STRATEGIES……………………….…………………41 FINANCIAL STATEMENT……………………………………………….……………44 CONCLUSION……………………………………………………..……………………49 RECOMMENDATION……………………………………………………….…………51 CITATIONS…………………………………………..…………………………………53 INTRODUCTION Nestlé is the largest food and beverage company in the world. It is also well on its way to becoming world leader in nutrition, health and wellness. Nestlé is a Swiss company, founded in 1866 by Henri Nestle. Henri Nestlé, the founder of Nestlé, was a life-saving chemist but also an innovative marketer. He used scientific knowledge to develop products that met consumer needs. He used his name to brand his products in a distinctive...
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