Nestle – Maggi Brand

History and origin of Nestle The company was founded in 1867 on the shore of Geneva vevey in Switzerland and its first product was “Farine Lactee Nestle” which is an infant cereal formulated by Henri Nestle to provide improved infant networks. Nestle has spread worldwide through various acquisitions and mergers from the year 1905-2007. It bears the name of a real man Henri Nestle. The company trademark is a bird in the nest derived from his personal cost of arms.

This symbol invokes value upon which the company was build. The values are security, maternity and affectionate nature and nourishment, family and tradition. It is one of the leading branded processed food companies in the country with a large market share in products like instant coffee, milk products etc. It also has a significant share in the chocolates and other semi-processed food market. One of its most successful brands in India is that of Maggi. Nestle product list –

Nestle India manufactures products of truly international quality under internationally famous brand names such as NESCAFE, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA its products range from syrups, Nestle milkmaid, ice-cream, jams, honey, candies, Nestle fresh and natural dahi, , Nestle slim milk, Maggi sauces, Maggi pizza mazza, Maggi pichkoo, Nescafe cappuccino, Nescafe sunrise, Nescafe Munch, Nestle milo smart plus, Nestle iced tea with green tea etc The Brand – Maggi origins

Maggi is a Nestle brand of instant soups, stocks, bouillon cubes, ketchups, sauces, seasonings and instant noodles. The original company came into existence in 1872 in Switzerland, when Julius Maggi took over his father’s mill. It quickly became a pioneer of industrial food production, aiming at improving the nutritional intake of worker families. It was the first to bring protein-rich legume meal to the market, which was followed by ready-made soup based on legume meal in 1886. In 1897, Julius Maggi founded the company Maggi GmbH in the German town of Singen where it is still established today.

In 1947, following several changes in ownership and corporate structure, Maggi’s holding company merged with the Nestle company to form Nestle-Alimentana S. A. , currently known in its francophone homebase as Nestle S. A.. Today, Maggi is particularly well known in the Baltic states for its dry soups. In Bangladesh, India, Pakistan, Nigeria, Australia, New Zealand, Brazil, Mexico and the Philippines, for its seasonings, such as Maggi sauce, which is a household product. And in Malaysia, Indonesia, India and Singapore for its instant Maggi noodles .

In West Africa, and parts of the Middle East, Maggi cubes are used as part of the local cuisine. Throughout Latin America, Maggi products, especially bouillon cubes, are widely sold with some repackaging to reflect local terminology. In the German, Dutch and Danish languages, lovage has come to be known as “Maggi herb”, because it tastes similar to Maggi sauce, although, paradoxically, lovage is one of the few herbs not present in the sauce. In Indonesia, Thailand and Vietnam Maggi seasoning sauce is a popular condiment used in flavouring meals, and the bottles are familiar sights on restaurant tables.

Maggi in India- Maggi in India is best known for its flagship product of instant noodles with its various desi sub-segments such as the traditional dal atta, veg atta and rice noodles along with their various variants, Curry, Masala, Tomato, Chicken in the traditional and shahi pulao, lemon Masala and Chilly Chow in the rice noodle segments. Nestle unleashes brand maggi in India almost 25 years ago in 1983 with the launch of its traditional ‘2-minute noodles’ in its masala, tomato, chicken flavours, followed by its curry flavor some years down the line.

Various products under Maggi – Noodles – MAGGI Vegetable Multigrainz Noodles, MAGGI 2-Minute Noodles, MAGGI Vegetable Atta Noodles, MAGGI Cuppa Mania Sauces – MAGGI Sauces, MAGGI Pichkoo, Tomato, Chilli garlic, Chilli, Extra hot chilli. MAGGI PASTA- MAGGI Pazzta Cooking Aids – MAGGI Magic Cubes, MAGGI Bhuna Masala, MAGGI Coconut Milk, Powder MAGGI Pizza Mazza, MAGGI Masala-ae-Magic, White rice seasoning, chicken stock, chicken stock less salt, beefand vegetable stock. Soups – Cook-up soups and instant soups, MAGGI Healthy Soups, Sanjeevani MAGGI Healthy Cup

Maggi Noodles Brand Ambassador – Nestle’s Maggi Noodles has recently introduced a new range of ‘devilled’ noodles which is expected to ignite the taste buds of local youth. Coming under three categories – devilled chicken, devilled kottu and devilled chilli chicken – the range has been created to suit the local palate, which often craves hot and spicy food. Taking the new range forward, the company also introduced its Brand Ambassador for the devilled noodles, Sri Lankan-born Bollywood actress Jacqueline Fernandez.

Maggi Devilled Noodles are extremely youth centric with dynamic, vibrant, fun and hot brand personalities. Jacqueline Fernandez was choosen as Brand Ambassador as she fits very well with this youth-centric range. As a young, dynamic and vibrant youth icon of international fame with a strong Sri Lankan identity, she had blended with the essence of the Maggi Devilled Noodles. Strategies Adopted by Nestle’ for the Maggi brand Nestle’ managed to create new product categories under the brand name of Maggi.

They adopted the following strategies : Maggi introduced the Maggi sauces category and promoted it under the brand name of Maggi. Since it is always easier to promote a product under the brand name of the established brand as the expenditure and people recognition time is less. More than it both are similar product category as sauces and noodles are interrelated to each other. Nestle’ also introduced the pizza variant by which one can be able to create the pizzas at home. It was also promoted under the brand name of Maggi.

Nestle’ also used the cultural base marketing in India as knowing the fact that indian people like rice, they introduced Maggi rice noodle mania. Also Nestle’ was able to successfully use the umbrella branding for Maggi. They introduced many variants under the brand name of Maggi. By doing so, they were successful in making the product popular, there was a greater acceptance for the product, they required a relatively lesser time to be accepted, they did not need to spend so much on advertising and promotional activities, and also it gave strength to the Brand name and ncreased brand equity. Maggi was successfully able to postion its noodles in the minds of the consumers as fast food items that can be eaten for breakfast or even lunch. They introduced new categorieshaving a coompelete diet of protein, calorie level, which is a must for the children. By doing this emotional marketing they were successfully able to market this product. And now it has successfully enjoys a 90%percent market share in this segment Diversification strategies –

The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, licensing of new technologies, and distributing or importing a products line manufactured by another firm. Generally, the final strategy involves a combination of these options. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company.

For the brand Maggi development of new products or perhaps even increasing brand extension , focusing on health as well as even a wide variety of flavours like cheese etc could help maggi diversify. Target Market of Nestle for the Maggi brand At the initial stage Nestle targeted the working women, however soon it realized that in order to boost sales its target market should be the children and teenagers. So they changed their positioning and came up with two minute noodles as it could be easily made by teenagers within a short p of time.

Nestle also has recently targeted housewives as by introducing the health noodles they can be consumed as the complete food which gives necessary calories to meet all health requirements. For these variants they introduced th new positioning “Taste bhi, health bhi”. Reasons for brand extensions- Maggi brand was extended to a variety of culinary products like soups, sauces, ketchups, and various cooking aids . they wanted to offer heathy products under the Maggi brand, in a bid to attract health conscious consmers. They were various health issue relating to the ingredient used that led to brand extensions.

They also wanted a strong brand recall, since maggi was doin gvery well in the market they wanted to use this as a positive point and went for a brand extension. Maggi’s competitors- Maggi main competitors were that of ‘Top Ramen’and that of ‘Hakka Noodles’and ‘Chowmeen’ due to which it had witnessed a decline in sales however with the new strategies adopted and new promotional activites it was a]ble to get back on top. Various Tag lines of Maggi- Through its adds maggi has been positioned as a ‘fun’ food for kids which mothers could prepare easily.

Some of the Tag lines used by Maggi for various add’s are- •‘Mummy,bhook lagi hai’(Mom I’m hungry) •‘Bas 2-minute’(only 2 minutes) •‘Fast to Cook Good to Eat’ •‘Taste bhi, Health bhi’ Suggest a new product- Future plans of Maggi – The company continuously focuses its efforts to better understand the changing lifestyle of modern India and anticipate consumer needs inorder to provide convenience, taste, nutrition, and wellness through its products. The company will focus on changing lifestyles and innovate and renovate to create delight in everyday meals.

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E-Commerce for Nestle

Nestle, one of the largest multi-national corporations with 200 operating companies and subsidiaries in 80 countries, has a crucial demand for a seamlessly integrated system which would foster strict regulations and control for its operations. The primary section focuses on the various supply chain management process which is required for Nestle to identify their business processes and effectively plan, execute and measure performance. It critically assesses the very viability of such process and the productive manner of utilization for the enterprise.

The secondary section entails the implementation of an E-Commerce application which would not only bring every resource at the same page but also facilitates communication among them. The final section discusses the change management principals which are utmost essential for Nestle to monitor and manage change in the organization. Supply chain management (SCM) The SCM for Nestle would manage their primary business segment and its manufacturing plants. The primary source of its raw materials for products from its various suppliers and manufacturers requires a large amount of tapping to reduce the cost of the final product.

The various integration of the businesses ensure efficient handling of the product transformation at every phase and handling all the business functions like shipment, delivery, warehousing, logistics and many others (Ballou, 2002). The primary matter of concern is to identify those operations in the entire business at the primary stage of product development requires an integrated system to manage the transfer of ownership of the product transformation and thus managing the costs involved in the process. The three processes involved in the fostering of an idea of SCM are as follows: a. Planning

The primary phase of Nestle requires a large management of the process transformation and requires bringing every external entity or better be called the stakeholders on the same page. Primarily the various business processes for delivery, distribution and management of the product sale ensures better handling of the product and their spread in the market (Aaker, 2002). The initial stages would mark the identification of the various functionalities where the product is in constant movement from one business process to another and requires an efficient handling to save time, effort and costs.

Nestle’s use of SAP for supply chain control has earmarked their entire product flow mapping and can be tracked at every point of time. The management of the product life cycle at every 200 operating companies would ensure better knowledge of the product at any given point. b. Execution The execution phase of the SCM is very critical and marks the implementation success of the entire SCM process (Harrison 2005). The very integrations made at every juncture of the product transformation process ensure better handling of the business operations of Nestle.

The execution stage also marks the binding of every business process with one another and to track the movement at every stage. Nestle’s initiative to take up SAP has fostered enough defined though process to manage their business processes and they have proven grounds of making large scale profit and have successfully cut costs at every logistic functionality (Claudio, 2006). c. Performance measurement The SCM, process model in the SAP software, process at Nestle has given large scale benefits.

Taking into account the various costs it had cut on the business logistics front has ensured better handling of the business and identification of the effective methods for optimizing business performance (Cooper, 2003). The performance analysis for Nestle is a long term affair and when such large systems like SAP is installed in place, the performance statistics show very good results. The various costs involved in effort and time spent in communication, business data transfer, decision making, reducing business operation life cycle, optimization on various resources and many more.

The results of such optimization initiate better degree of handling the business and right sense towards ownership for business resources. E-Commerce Strategy: Nestle’s operations and business spread is separated across geographical locations and deserve an E-Commerce implementation to reach out to the globe with the excellent brand it has developed. The global acceptance of the brand has brought about intense competition from every major market players in every country and exploiting the strengths of the internet and capitalizing on the weaknesses would foster better growth of the enterprise (Amoako, 2005).

The E-Commerce implementation can be strategized as follows: a. Planning The planning of the Nestle’s products to be put over the internet requires a definite plan to ensure better fetching the customer demands to display over the internet (Trepper, 2000). The customer mind needs to be fetched well which can be preliminary done using surveys and other forms of research. The primary benefits of doing so would be to better understand the customer and their preferences.

Nestle’s customer is not always the individuals but small to large scale institutions namely distributors, wholesalers and retailers who purchase in bulk to further redistribute the products. At this planning phase the business to business (B2B) model must be considered for better utilizing the internet business standards (Copacino, 2001). b. Design The design of the E-Commerce model would be in the form of a B2B website which would also feature selling options to individuals. The design would be in accordance to the various usability traits and would feature a large chunk of its products which can be availed by other business.

c. Implementation The E-Commerce system would be hosted over the internet and would be accessible by all its 200 operating companies at every point of time. The system in the form of website would be hosted at the internet server and would be marketed over the internet for its availability and reach. The data transfer regarding the products availability and supply oriented dynamics would be made possible with its mapping with the SAP system in place. The E-Commerce system would posse’s heavy duty business logic software to implement JIT ordering system linked with the SAP system of Nestle (Leymann, 2002).

The stock management system in place, another SAP function of Nestle would directly correlate with the E-Commerce system to facilitate efficient ordering process by its large chain of suppliers and distributors. Maintaining stock levels and management of the shipment of the goods would also be monitored using RFID system which also needs to implement in the E-Commerce system (Ngai, 2008). d. Operations The operations of the E-Commerce system would involve large scale ordering process and shipment details of the orders for various geographic locations over the world.

The primary advantage would be to manage efficiently the product dispatch process and its monitoring which would help all its 200 operating companies to stay synchronized with all the latest happenings with their orders. The localization and decision making regarding their business operations takes a large toll without a system in place. It brings forth human errors, often delay means losing certain lucrative business opportunities, delivery delays would erode customer confidence and irregularity in customer service for better competitive advantage.

E-Commerce implementation and operations with direct integration with SAP system in place would capitalize on the disadvantages and improve performance in the long run. Change management for Nestle: The change management process would not be too hard to implement as they already have taken a great initiative in implementing the SAP system (Hayes, 2006). The very process to curve out and implement SCM and E-Commerce with direct integrations with the ERP system would make the change management principal work really well (Hindu. com, 2008). The various points of concern would be high lightened as follows:

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Nestle’s International Business Strategies

Table of contents

Abstract

Operating in the global business environment takes more than pluck and capital investment. It also entails managerial decision-making and coordination skills, as well as knowledge and business savvy that will allow a firm to function and survive in the global business scenario. For leading food and beverage, health & wellness company, Nestle, continuous innovations and product diversifications have always been a top concern, all geared towards the attainment of its mission statement. With its foray into emerging markets and efficient tailoring of certain product brands to carve niches in those distinct global territories, Nestle has created inroads contributing to its overall success. As with other businesses, though, that have made great strides in international business operation, it can address loopholes.

Nestle’s International Business Strategies

Food and beverage giant Nestle carries the company mission statement, as may be gleaned from the company’s website, of utilizing “research (that) can help us make better food so that people live a better life.”  Nestle further expresses in its official website that:

Good Food is the primary source of Good Health throughout life. We strive to bring      consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs. In addition to nutrition, health and wellness, Nestlé products        bring consumers the vital ingredients of taste and pleasure (“Mission Statement,” n.d.)

Nestle’s mission statement comes to life through the company’s global executive team and key officers, led by its Chairman and former CEO Peter Brabeck-Letmath, and current chief executive, Paul Bulcke, who set the company’s main thrust of creating value.

Nestle’s organizational structure is multi-divisional; its management structure is decentralized. While the executive team in the main corporate headquarters have the strategic responsibility of monitoring global divisions, there are local managers who must assimilate cultures as they are assigned one country to another. Since the 1990s, Nestle has effected: a global matrix structure, decentralizing authority to managers in charge of seven        global product groups—coffee, candy…this allowed the firm to pursue a transnational    strategy, leading to lower costs and improved differentiation. The matrix structure facilitated sharing information within countries (Hill and Jones, 2004).

Nestle has also set out “to standardize computer systems and business practices around the world” (Hill and Jones, 2004). As such, it is able to respond to crucial business issues as they arise. Country managers have a sense of autonomy in supervising varied operational aspects in the assigned territory, and making high-level decisions.

Nestle relies on it brand-building machine and marketing savvy to maintain a competitive edge in the global marketplace. “The company’s seven strategic business units–dairy, confectionery, beverages, ice cream, food, pet care and food services… are also responsible for research and development, production expertise and systems control” (Benady, 2005). Emanating out of all these is a regional strategy, “which is in turn the starting point for local market business strategies” (Benady, 2005). This setup augurs well for success in international ventures, because by catering to local tastes and requirements, Nestle’s strategic business units gained steady revenues while making global business operations more cohesive. As Nestle Chair once expressed, “Every decision has to be made as close to the consumer as possible” (Benady, 2005). Handing “responsibility to foreign subsidiaries” (Benady, 2005) is expected to  lead to successful brand-building efforts across the world.

As far as it its entry in emerging markets in developed nations is concerned, Nestle has experienced steady growth. Back in 2001, the company assessed its performance in developed countries and carried out plans to innovate and churn out higher value added products, with special focus on more health” and nutrition product lines (Echikson, 2001). Nestle had expected its innovative products that have been imbued with local flavor, along with several strategic alliances or mergers, to work in its favor. “It can be argued that product innovation and market coverage… continue to be sources of advantage of the global strategy” (Roth, 1992). Indeed, creating consumer confidence through brands has been Nestle’s key strength. However, by diversifying into businesses outside its core products, Nestle must deal with the challenges or risks of losing customers foisted with too many product varieties.

Overall, I would recommend that Nestle maintain its competitive edge in developed countries with high-growth potential, not only through continuous brand enhancement, adhering to international fair trade practices, and proactive use of IT but also through some improvement in charting its own supply chains. It may also be wise to rethink further mergers and alliances that deviate  from its present main thrusts of food, nutrition and well-being.

References

  1. Benady, A. (2005). Nestle’s market wars: the food giant is drawing on local expertise to put marketing at the heart of its global growth strategy. Retrieved November 7, 2008 from http://findarticles.com/p/articles/mi_m4070/is_207/ai_n13787808
  2. Echikson, W. (2003). Online Extra: Nestle: Getting Fat and Happy. BusinessWeek. Retrieved November 8, 2008, from http://www.businessweek.com/magazine/content/03_23/b3836003_mz044.htm
  3. Hill, C. & Jones, G. (2004). Strategic Management – An Integrated Approach. Retrieved
    November 7, 2008, from http://classes.bus.oregonstate.edu/ba469/Dibrell/Chapter%20Outlines/irm13.doc
  4. “Mission statement.” (n.d.). Retrieved  November 8, 2008, from http://www.research.nestle.com/tools/mission_statement.html
  5. Roth, K. (1992). Implementing international strategy at the business unit level: the role of
    managerial decision-making characteristics. Retrieved November 8, 2008, from http://findarticles.com/p/articles/mi_m4256/is_n4_v18/ai_13928532/pg_1?tag=artBody;col1

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Third World and Nestle Infant Formula

What are the responsibilities of the companies in these or similar situations? When expanding into a new country, especially if it’s a third world country, the multinationals should be aware of the impact their products could have on that specific society which might not be prepared to use their products. Thus, before marketing and distributing the product, the company must first be sure that the population knows how to use it. For example, Nestle could have done some training to the new mothers in hospitals regarding the health of their child and also regarding their product. This could happen before the proper distribution of the product and might prevent also the malnutrition of the children. Furthermore, the company should be aware about any single fact of that society which can interact positively or negatively with their product.

For example, if Nestle can help the spread of HIV virus through trainings and free blood tests for mothers to be, it can be said that it is a responsible company in the same time with being profitable. Multinationals must understand when entering such a country, the numerous differences that exist between the population from the new market and the population from the home country. Moreover, on each label of the baby powder should be written the fact that the natural milk is the healthy one, and also be specified the circumstances in which the supplementary milk should be used. If there are many illiterate women, these facts should be told to the customer in any point of sale or with any free sampling action.

What could Nestle have done to have avoided the accusations of “killing Third World babies” and still market its product? Prove that the charges it was accused did not occurred because of the product but because of the inadequate use of it. For example Nestle cannot be accused that its product caused diarrhea and vomiting because the water used to make the formula was contaminated. Even if those babies would not have drink Nestle formula they would have drunk other formulas or concoctions prepared with water the result would have been the same. Nestle could promote its formula mainly to children aged over 6 months. Promote more the specialty formula for lactose intolerant or low birth-weight babies.

After Nestle’s experience, how do you suggest it, or any other company, can protect itself in the future? The companies that produce market and sell infant formula, including Nestle, should conduct a more aggressive research about the places where their product will be distributed and marketed in order to establish some differences and to be able to adapt their products. The third-world countries have a different culture and lifestyle than in U.S. and Western Europe. Before entering any of these markets any company need to understand everything about the environment, traditions, economy and health of that specific area. This kind of companies should also study the social and medical effects of their products and services. Companies that provide these types of food products can have a psychological effect on cultures, with the assumption that products replace certain vital nutrients. A marketing approach that could be used and that would be a success is that they should provide information about the products in the language of the places where the product is being distributed. These companies should be active advocates in promoting healthy eating habits starting with the mother, during her pregnancy and then the baby.

Assume you are the one who had to make the final decision on whether or not to promote and market Nestle’s baby formula in Third World countries. Were the decisions socially responsible? Were they ethical? Related to the corporate social responsibility matter Nestle was evading it’s responsibility to the public.

The marketing approach and the promotion used were unclear, which led the consumers to the misconception that formula was a good way to replace breast milk and other forms of nutrition vital to child development. The company should have played an important role in educating the public in relation to the product and the product’s characteristics and proper use. Also, Nestle did not take into consideration the differences in living conditions, culture, literacy, fact that led to a number of problems, such as the misuse of the formula. From an ethical point of view, Nestle took advantage of the lack of clarity in the marketing practices. Since this issue is a sensitive one, children and their development, the company should have been a lot more involved in the impact their product has on all types of consumers, not only on producing, promoting and selling the formula.

What advice would you give to Nestle now in the light of new problem of HIV infection being spread via mother’s milk? Now that this problem has occurred in the third world country, it is in order a better understanding of the phenomenon. Most of the women in both developing and developed countries will use the formula just to avoid any bad outcome. Nestle could take advantage of it and expand its sales in the same time with making the population aware of this problem. The company could also find their own new customers, especially new mothers that are infected with the HIV virus. Nestle should train properly these women about how to deal with this problem and in the same time buy the company’s products. In the interest of customers the company could also develop a better method of involvement as they are a cultural agent and can have an important participation in the battle against the spread of HIV and AIDS.

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Nestle project

Table of contents

Our project was aimed at studying the marketing mix of products marketed by Nestlé India there by understanding the concept of 4P’s better. It details how Nestle has marketed its product in India. Nestlé India has divided its product portfolio into four different segments, namely-

  • Milk Products and Nutrition,
  • Chocolates and Confectionery,
  • Beverages, and
  • Maggi (noodles, soups and ketchups).

Separate marketing mixes have been developed for these four different segments. The pricing, promotion techniques used and place of marketing and of course the product of one segment are very different from products of another segment. Therefore, we also decided to divide our project coverage into four different sections to cover the segments separately. Besides this Apart from the secondary research from newspapers, journals and the inter-net, we have interacted with some officials concerned with these things, present at Nestlé India, Gurgaon. All this has helped us in our extensive study of the marketing mix of various Nestlé India products.

Acknowledgements

We would like to put our thankfulness across to all those who have put in direct or indirect hard work towards the successful completion of this project. First & foremost, we would like to thank our teacher and mentor Prof. R. Kamble for his able direction and marketing proficiency devoid of which this project would have never concretised. We are also immensely grateful to the officials and product managers at Nestlé India, Gurgaon. Dr. S.N. BhatFood

Regulatory Manager

  • Ryan Fernandes Brand Franchise Manager
  • Rohit DograManager, Milk And Nutrition
  • Rashmi GuptaManager, Maggi
  • Himanshu Manglik

Communications Manager

A special thanks to Sudip Bandyopadhyay (Creative Consultant), who is handling the advertising for Milk Products and Nutrition division of Nestle India, on behalf of Ogilvy & Mather. As a final point, we would like to thank, “Institute of Management Technology, Nagpur” for providing us the pedestal to do this project.

  • Neha Katyal2009132
  • Karan Vyas2009159
  • Nishant Sharma2009170
  • Prachir Gupta2009185

History of Nestlé

Nestlé S.A. is a multinational packaged food company founded and headquartered in Vevey, Switzerland, and listed on the SWX Swiss Exchange with a turnover of over 87 billion Swiss francs. It originated in a 1905 merger of the Anglo-Swiss Milk Company for milk products established in 1866 by the Page Brothers in Cham, Switzerland, and the Farine Lactée Henri Nestlé Company set up in 1866 by Henri Nestlé to provide an infant food product. The two world wars both affected growth: during the first, dried milk was widely used but the second war caused profits to drop by around 70%. However, sales of the instant coffee Nescafé were boosted by the US military. After the wars, growth was stimulated by acquisitions expanding its range and taking control of several well known brands, so they now include Maggi, Thomy and Nescafé that are known globally. It is the world’s largest food company, with Kraft Foods being second.

Nestlé India is a subsidiary of Nestlé S.A. Nestlé India manufactures products of truly international quality under internationally famous brand names such as Nescafé, Maggi, Rice Mania, Milkybar, Milo, Kit Kat, Munch, Bar-One, Milkmaid and Nestea.

Milk products and nutrition

Nestlé India has a wide portfolio for Milk Products and Nutrition. It includes-

Nestlé has a very clear Charter of ethics and responsible behaviour in selling infant nutrition products. Nestlé India follows this Charter and also complies with The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 that guides the sale of infant nutrition products in India. Nestlé India does not advertise its Infant Nutrition products.

  • NESTLÉ CEREMEAL

It is for children over 2 years of age, to provide them with NUTRISHAKTI – a nutrient dense formula that has the right quality and quantity of key nutrients that meet at least 20% of your child’s daily nutrient needs in every serve. It is easy to prepare and takes only 3 minutes to cook. NESTLÉ CEREMEAL with ‘Nutrishakti’ benefits from the extensive Research and Development efforts and expertise of the Nestlé Group. NESTLÉ CEREMEAL Wheat Daliya contains the goodness of wheat with the added benefits of Vitamins and Minerals from ‘Nutrishakti’. NESTLÉ CEREMEAL Multi grain Daliya contains rice and ragi apart from wheat with the added benefits of Vitamins and Minerals from ‘Nutrishakti’. NESTLÉ CEREMEAL is available in select outlets in the markets in East and South India.

  • NESTLÉ EVERYDAY DAIRY WHITENER

It is a creamy Dairy Whitener, which is specially made to add a rich, smooth taste to your tea. NESTLÉ EVERYDAY Dairy Whitener was launched in India in 1986 and this innovative product created a separate category of Dairy Whiteners in India NESTLE EVERYDAY PURE GHEE

It is 100% Shudh [pure] Ghee which is untouched by hand and hygienically packed. NESTLÉ CURDS
It is 100% fresh and natural, just like homemade. It is made from high quality pasteurised toned milk. The Cultures in NESTLÉ Curds are good for digestion and for a healthy, active life. NESTLÉ Curds is available in Chennai and Banglore.

  • NESTLÉ MILKMAID

It is Partly Skimmed Sweetened Condensed Milk.

NESTLÉ MILKMAID is a versatile product and excellent as a dessert ingredient. Lip-smacking desserts can be whipped up in the shortest possible time.

NESTLÉ MILKMAID is a globally recognized and popular brand of Nestlé. It has been available in India ever since the Company first started importing and selling its products over 90 years ago.

  • NESTLÉ SET DAHI

It is 100% Fresh and Natural and is made from fresh, high quality pasteurised toned milk. It has all the goodness of natural Calcium and the Cultures used in Nestlé Set Dahi help improve digestion. NESTLÉ Set Dahi is available in all the metros.

  • NESTLÉ FRUIT ‘N DAHI

It is a delicious innovation that combines the goodness of Dahi and the nutrition and taste of real fruits.

NESTLÉ Fruit ‘N Dahi is available in all metros in Mango and Strawberry variants.

  • NESTLÉ JEERA RAITA

It is delicious and has all the goodness of Dahi and Jeera. It is made from double toned milk and has a low fat content. NESTLÉ Jeera Raita is also extremely versatile. You can use it as the base to prepare your own favorite Raita, simply by adding vegetables, fruits or spices of your choice.NESTLÉ Jeera Raita is available in Delhi.

  • NESTLÉ MILK

Nestlé has over 135 years of dairy expertise and NESTLÉ Milk ensures high quality and safety. NESTLÉ Milk goes through Ultra Heat Treatment to provide bacteria-free milk to its consumers. The product also goes through stringent quality checks and can be consumed straight from the pack as no boiling is required. The sealed pack of NESTLÉ Milk has a shelf life of 120 days without refrigeration. However, once opened, it must be refrigerated. The packaging is tamper-proof. NESTLÉ Milk is available in all metros.

  • NESTLÉ SLIM MILK

Nestlé has over 135 years of dairy expertise and NESTLÉ Slim Milk ensures high quality and safety. NESTLÉ Slim Milk has a fat content of less than 0.5%. NESTLÉ Slim Milk goes through Ultra Heat Treatment to provide bacteria-free milk to its consumers. The product also goes through stringent quality checks and can be consumed straight from the pack as no boiling is required. The sealed pack of NESTLÉ Slim Milk has a shelf life of 120 days without refrigeration. However, once opened, it must be refrigerated. The packaging is tamper-evident. NESTLÉ Slim Milk is available in all metros.

Analysis of the 4Ps for this division

Product Mix

“The essence of all nestle milk products, particularly those targeted towards infants remain same, irrespective of all the cultural nuances. So, our strategy remains more or less consistent in India as compared to rest of the world”, remarks Rohit Dogra, Brand Manager, Milk and Nutrients, Nestle. Nestle is the world’s largest dairy, with an annual turnover of more than U.S. 8billion$. So they understand the dairy business better than anyone else. When they operate in India, the focus is to put to use their vast expertise and knowledge in the diversified domestic market. However, the task is not uphill because their products address all basic needs of human beings. “There is a lot of science that goes while we make our products”, explains Mr. Dogra. This is particularly because of the sensitivity of the matter involved in manufacturing and delivering perishable consumption products. Any margin of error could spell doom for the company’s fortunes. So there comes a lot of responsibility while dealing in such products. Another sensitive area of concern is that a major chunk of its products cater to infants and due to perceived risks involved (like unwarranted objections by certain segments of the public, risk of depreciation in quality due to storage problems or transportation problems, etc.), the challenge is enormous for the company. Nestle realizes the need to constantly add new products to its portfolios to cater to different market segments. This is in tune with a natural tendency to constantly innovate. Over a period of time, we have seen new products being added to its list.

While products like ceramel and milkmaid doing well, in recent times nestle has come up with products like Lassi, fruit n dahi, etc to cater unexplored segments of Indian market. The example of nestle slim milk is a classic, on how it was positioned and which set benchmarks for others to follow. The pack of Nestle Slim Milk is being positioned as drink for fitness and it is mentioned that it is 99.5 per cent fat free. Apart from conveying that calories are kept in check, the concluding message reinforces the packaged milk health proposition by saying: “So, don’t think twice before making the switch to a healthier alternative.” Breaking the myth of packaged milk (or for that matter milk on the whole) being only meant for being ‘strong’ or to put on weight, the agency specifically conveys the message of being slim and trim through milk. OM creative consultant, Sudip Bandyopadhyay said, “The brief was to creative awareness about the brand. There seems to be a tendency of ignoring milk for putting on weight and also milk in tetra-packs or packets is being considered as an artificial one. There is also emergence of low-calorie sweeteners and other products. So the whole idea is to reinforce milk as an option for providing a refreshing nourishing boost.” Another interesting example is of variants like nestle Fruit n Milk The company worked on the ‘Tasty bhi healthy bhi’ proposition to gain acceptance among both kids and mothers.

A relatively new addition has been lassi, a classical case of adapting to the local Indian flavor. The company began the test marketing of sweet lassi in Delhi, Haryana and Punjab. “With changing lifestyles, there is a growing need for products that are convenient, tasty and of high quality. In order to cater to such emerging needs, Nestlé sweet lassi has been developed as a ready-to-drink product that provides refreshment, nutrition and wellness,” the Chairman and Managing Director, Mr Carlo M. Donati, said in a statement here. He said the product has been developed after extensive testing for consumer preferences and traditional styles of preparation. It is available in 200-ml packs for Rs 12. With big players like Amul and Mother Diary still ruling the roosts, “tetra pack milk is a good way to have a major slice of market share and go for penetration”, suggests Mr. Dogra. Lectogen is priced h liye

igher but it has more value additions, the product has been quite a hit with those who realize that steep prices can justify quality and good health. This reflects a pricing strategy in which company is charging higher prices in return for claiming superior value-additions. Efforts are underway to penetrate products like Milkmaid and Whitener but people’s stereotype perceptions about them are still major obstacles. In the `Milk Products and Nutrition’ category, the Company continues to focus on introducing products that leverage the Nestle Group’s Know-how and Research and Development competence. During 2003, the This was a major breakthrough in infant feeding. During the third quarter of 2004, the Company has also launched NESTUM123, which is a rice based weaning food, to ensure the right eating experience at the right stage of development for the infant.

NESTUM 123 also incorporates Nestle Group’s unique Z-line technology that makes the product easy for the infant to digest. Using its knowledge of infant nutrition and local needs, the Company introduced NESTUM Ragi in the Southern market and LACTOGEN 3 in select geographies, to provide proper nutrition at the appropriate stage. Also, since India has a high incidence of low birth weight infants’, who require specialized nutrition, the Company utilized its access to the technology from the Nestle Group to introduce PRE-LACTOGEN. To sum up, Nestlé’s Product Mix in milk and nutrients category, the company has been continuing to add new products to its portfolio, which are in tune with the local flavour, and is likely to do so. And with its value additions and proven expertise, it continues in its endeavour to become the market leader in other categories. “About five years back, India was predominantly a seller’s market but now there has been a marked difference in the consumers, psychologically and behaviourally. This awakening of Indian consumers brings great challenges to us”, Mr. Dogra observes.

Price Mix

The high costs of raw materials and processing are a cause for concern. However, The Company feels that raw material cost inflation could soon be brought under control. The management is implementing programs to control key raw materials costs. The company recorded very low sales growth of 3.7 per cent last quarter as sales were by a non-recurring factor of insufficient availability of milk solids, which restricted production. Due to high prices of solid milk, the use of the milk was allocated to the most profitable business in its product. Also sales to canteen store departments (army sales) and ghee sales were stopped during the period, impacting sales growth. This shortage has now been resolved and is unlikely to recur in 2H, the company said. For the export market, there has been a decline in sales value as there is a movement from retail packs to bulk packs. Overall, in milks, curd and powders, the products are priced higher. But the top brass of the company justify high prices on account of “superior quality”.

In milk segment, nestle is relatively dearer than brands like Amul and Mother Diary but Mr. Dogra explains that the cooperatives generally operate on a no-profit margins so they can afford to lower the prices. He feels that high prices are more than compensated by greater value additions. He cites the example of Lactogen, which although expensive, is still a hit with rural market because of greater benefits attached. “Somehow, consumers have to make a trade-off between prices and quality.” Overall newcomers like Fruit Dahi and Slim Milk are fairly charged, consumers feel. Thus, Nestlé’s pricing strategy is little influenced by competitive moves but more by promising customers more value additions. Place Mix

Supply chain

With increasing market penetration and larger coverage of geographies, the Company has initiated efforts to ensure that the supply chain and distribution structure remains efficient. In order to strengthen these efforts to improve the distribution of Stock Keeping Units (SKU’s) across retail outlets and to improve the quality of sales and consumer satisfaction, the Company has implemented web related processes to increase efficiencies in supply chain and order planning. During the year, the Company also initiated the rationalization of stocks in order to increase the freshness of stocks available to the consumer. These initiatives are necessary to maintain the high quality that Nestle Guarantees the consumer. In addition to these, there are efforts on to create more awareness among wholesalers and retailers to create storage value and minimize loss of quality or time. Promotion Mix

Overall, there has been a lot of emphasis on packaging, not only to safeguard products, but also to create a distinct brand entity. Nestle India bagged the Best Package Design Award and Portfolio Registering Highest Sales Growth Award at the second Annual Indian Dairy Awards presented at the National Milk Seminar 2003 held at Goa on 17 and 18 January. Hosted by Tetra Pak India, the fourth National Milk Seminar on Strategic Marketing, organized by the Ministry of Food Processing and Ministry of Agriculture was focused around Time to Act – Here & Now. Presentations and panel discussions were held to spotlight on business opportunities, perspectives of international and national speakers from within the dairy industry and outside highlighted the areas of successful government-industry cooperation, business strategy, innovating for category conversion and upgradation, premium branding, new channel development, and value branding. Using the health platform as a proposition for a milk brand is not an alien concept. But Ogilvy & Mather Delhi has used the same USP differently in its new ad campaign for Nestlé’s Fruit n Milk. The agency recently released two television commercials for the new brand. Mothers catching and correcting their children when they are up to mischief is quite common. Of course kids being kids love having fun even if it borders on what their mothers have forbidden them to do. Moms know this and have a habit of keeping tabs on their little ones.

Using this mother-child peculiarity as a key, the agency worked on the ‘Tasty bhi healthy bhi’ proposition to gain acceptance among both kids and mothers. Says O&M associate creative director Sudip Bandyopadhyay, “There are these do’s sand don’ts for kids. Mothers have their eyes on kids. We have taken situations, where kids normally get caught. But when mothers find children sheepishly having Nestle Fruit n Milk, they don’t find it to be a problem. Instead, they have an expression of acceptance for this.” The first commercial has two mothers looking for their children. They anticipate them to be on the terrace and up to – as you guessed right – some mischief. As their kids see them approaching, they hide something. After a fair deal of urging, they reveal to their mothers what they are concealing: a pack of Nestlé’s new ready to drink milk brand. And their mothers, with a sigh of relief, say this is allowed. The frame then cuts to Nestlé’s new product and positioning statement. The second commercial shows an in-charge of a boarding school catching students in a similar situation with a torch. And the kids face a similar outcome with their headmaster condoning their sipping on their Fruit n Milk. “The campaign is for the 8-15 age-group. We have tried not only a fresh angle from the taste and health proposition but also from the new product launch perspective. We came up with this, when mothers says ‘yeh to allowed hai.’ This has been conveyed through the surprise element. Not only to catch kids but also to empathise with mothers,” says Bandyopadhyay. The commercials have been directed by Red Ice’s Koushik Sarkar. The campaign has been extended to outdoor campaign has rolled out nationally.

One major issue is that Nestlé India does not advertise it’s Infant Nutrition products due to legal obligations. So,quality considerations drive sales volumes in these segments. Nestle India launched a new print campaign for its packaged milk brand Nestle Slim Milk. Created by Ogilvy & Mather, the campaign focused on propagating milk as a proposition for staying healthy and trim with a stylish presentation of the pack amidst a yellow background. The campaign, released mainly in magazines, primarily targeted the socio-economic class A. Breaking the myth of packaged milk (or for that matter milk on the whole) being only meant for being ‘strong’ or to put on weight, the agency specifically conveys the message of being slim and trim through milk. O&M creative consultant, Sudip Bandyopadhyay said, “The brief was to creative awareness about the brand. There seems to be a tendency of ignoring milk for putting on weight and also milk in tetra-packs or packets is being considered as an artificial one. There is also emergence of low-calorie sweeteners and other products. So the whole idea is to reinforce milk as an option for providing a refreshing nourishing boost.” The pack of Nestle Slim Milk is being positioned as drink for fitness and it is mentioned that it is 99.5 per cent fat free. Apart from conveying that calories are kept in check, the concluding message reinforces the packaged milk health proposition by saying: “So, don’t think twice before making the switch to a healthier alternative.” “The whole presentation revolves around first glance, which should immediately strike the slim proposition. That’s why the pack is shown to be curved (portraying a body with slim waist) in the centre.

Instead of using blue colour, we have deliberately chosen yellow colour in the background,” adds Bandyopadhyay. Apart from the print campaign, the agency also worked on outdoor advertising.. Nestle, which had launched ready-to-drink milk market with its Fruit n Milk brand in mango and strawberry flavours earlier, is sourcing its Slim Milk and Fruit n Milk from Dynamix Dairy Industries. “In addition, other promotional tools like consumer contact programs, exchanges with medical personnel and a lot of ground work is involved”, informs Mr. Dogra. Earlier, Nestle only talked to kids but there is an ‘inclusive audience’ that is also being spoken to, these days and that is the mothers, as at the end of the day it is the mothers that are the buyers of the products. So the brand though specifically targeted at kids ‘has’ to speak to the mother too,” says one industry analyst. Against Competition

Perhaps the greatest challenge to Nestle comes from cooperatives like Amul and Mother Diary. Unfortunately for Nestle, it has been unable to be at the top of the ladder, with these domestic players still ruling the roost. Mr. Dogra acknowledged this and admitted that both these cooperatives have extremely efficient operations and a very good marketing set-up. However he points out to the fact that since these cooperatives generally operate on low/no profit margins, they enjoy higher sales volumes due to price slashes. Another interesting point he raised was that these cooperatives have been clever enough to manipulate food laws in the country, which puts them in an advantageous position.

Nestlé beverages

The portfolio of beverages segment of Nestlé is not so broad, still so strong as to make its presence important for Nestlé’s overall success. It includes some popular brands by Nestlé-It’s not the number of brands in beverages segment of Nestlé that makes it attractive, but the market share that they possess. Beverages account for 38% of the company’s turnover and Nestlé is a market leader in instant coffee with its Nescafé and Sunrise brands. Nestlé Milo also has a strong presence in the market.

  • NESCAFÉ CLASSIC

It is a 100% Pure Instant Coffee. It has the unmistakable taste of 100% pure coffee and is made from carefully selected coffee beans picked from the finest plantations, blended and roasted to perfection. 100% coffee…100% pleasure…. The beginnings of Nescafé can be traced all the way back to 1930, when the Brazilian government first approached Nestlé. In 1937, after eight years of work, scientists at Nestlé’s research laboratory in Vevey perfected a powdered coffee product that was commercially introduced in Switzerland, on April 1st, 1938 under the brand name Nescafé. Nescafé – a combination of Nestlé and café. It became so popular during World War II that for one full year the entire output of the Nescafé plant in the United States (more than 1 million cases) was reserved for military use only. By the 1950s, coffee had become the beverage of choice for teenagers, who were flocking to coffee houses to hear the new rock ‘n’ roll music. Since then, Nescafé has become one of the world’s best-known brands. With more than 3,000 cups consumed every second, Nescafé is by far the world’s leading coffee brand. In India, Nescafé was introduced in 1964.

  • NESCAFÉ SUNRISE

It is an Instant Coffee-Chicory mixture made from blends of Coffee and Chicory. Coffee 70% and Chicory 30%. The secret of great taste lies in the blend.

NESCAFÉ SUNRISE PREMIUM is a blend containing plantation beans to give you an incomparable experience. This unique blend of Coffee & Chicory was introduced in Indian market in 1980s with various variations- Nescafé Sunrise Premium, Sunrise Extra, etc. sunrise Extra has more Chicory in it (40%). Thus it tastes even stronger.

  • NESTLÉ MILO

It is a contemporary, brown health beverage with a delicious chocolaty taste. 1 in 6 cups of chocolate beverage consumed in the world today is NESTLÉ MILO. In India Nestlé Milo was introduced in 1996. It’s a combination of health and taste. It has essentials vitamins also and it gives you extra winning energy. Now it is available in different tastes also. Latest in the series is the Badam Shakti flavour. Analysis of the 4Ps of this Division

Product mix

“To be successful in this consumer era, a company needs to do anything and everything as per the wants of the consumers.” This much evident fact provides the basis for the success mantra of nestlé. What sets Nestlé apart from its competitors is its ability to reinvent and innovate. The beverages segment of nestlé has always followed the same strategy, i.e., innovation and renovation. It has conducted time-to-time surveys to find out what the potential consumers desire and expect from them and then, from adding those features to repositioning and reintroducing, it has left no stone unturned to satisfy its consumers.

The example of Nescafé

Science has always been a constant input for nestlé. Right from the invention of Nescafé to the regular improvements, research & development has been the basis of success. Before the invention of Nescafé in 1938, the need for a soluble coffee was felt among the consumers. This need was realized by nestlé & after eight years of research Nescafé was finally invented. This was not the end. Overtime, there have been so many innovations and improvements. From making Nescafé by using 100% pure roast coffee beans to the birth of the granule in1967 to capture more aroma and flavours from every single coffee bean, to the ’full aroma’ process which was invented to make the unique quality and character of Nescafé even better in 1994.
Talking particularly about India, from time-to-time, surveys have been done to judge the consumer wants. Introduction of new products, renovation, and repositioning- everything has been done accordingly. After introduction of Nescafé Classic in India in 1964, as the need was felt, company came out with a mixture of coffee & chicory, Nescafé Sunrise. Nestlé has come out with new variations of its products, Nescafé Sunrise Extra, Nescafé 3-in-1 readimix, to name a few. The new Nescafé 3-in-1 coffee readimix is actually a relaunch. Its previous attempt to instant coffee mix five years ago had come a cropper. Today Nescafé coffees are available to suit all tastes. In short, all its success is because of its strategy to make the product, as the consumers want it to be. It is easily one of Nestlé’s star performers.

The example of Nestlé Milo

In India Nestlé Milo was introduced in 1996. With its launch, nestlé was faced with the challenge of presenting Nestlé Milo as a worthy competitor in the Indian energy drink market that was dominated by Cadbury’s Bournvita and SmithKline Beecham’s Boost. So it was important to bring Milo as something different from others. A research campaign was launched to analyze consumer needs. The research following the campaign revealed the need for Milo to be perceived as a drink with 2 strong deliverables- Energy and Taste. This was just the beginning. Nestlé Milo was so many times repositioned, reintroduced in the market, which clearly reveals the Nestlé’s strategy for Milo, i.e., aggressive and alive. Milo was also relaunched in Dec 2001. On the other hand, the company has been offloading products too. Nestlé India was in the process of withdrawing its chocolate health drink brand Milo from southern markets. The brand did not stand up to the company’s expectations during the last several years; there were indications that it might be phased out. In fact, Nestlé India had also begun rationalizing its product portfolio. Once again in the near future, Milo is being relaunched by re-energizing it with ‘Badam Shakti’. Both examples clearly suggest the Nestlé’s product mix and the secret behind its success. The product mix started before the invention of the product and continued without any end. Even today the renovations are on.

Price Mix

The secret behind the price mix of Nestlé is the scale of production. In the
beginning, it may have been thought that the products are being priced higher, but as the market segments increased and economies of scale were reached, no one could complain about Nestlé’s prices at least in beverages. Nestlé has taken the Indian conditions in mind while deciding its price mix. Initially when Nescafé was launched, it was considered quite expensive. However, Nestlé has focused on expanding the domestic market share through price cuts and product repositioning. It is therefore no surprise that today Nestlé’s Nescafé dominates the premium instant coffee segment. Nestlé Milo also justifies its price. Its pack of 500-gms priced at Rs.96, which can in no way be dissatisfying and is comparable with other brands. Another example is of Nestlé 3-in-1 readimix, which is priced at Rs.5 per sachet, which is definitely justified keeping the benefits it gives in mind. Nestlé has so many outlets in India now to compete with Barista and Café Coffee Day. There is a clear difference between the prices of these coffee shops and Nestlé. Nestlé is a winner by a great margin. Where, these coffee shops are affordable to a very small section of market, Nestlé targets at a far greater market segment in term of its prices. To conclude, one cannot hold grudges about prices of Nestlé beverages. Nestlé has surely taken the spending capability of the domestic market in view.

Place Mix

As regards the place, they are available on almost all the outlets that are selling such products. Nescafé’s USP is its easy availability. One could find it in any departmental store big or small. It is also available at all small shops in an area. Nestlé has been using its vast distribution network to push into the market its chocolate-and coffee formulation Choc Café and Frappe (both under the Nescafé umbrella). Easy availability is one of the factors for Nestlé having a 44% share in the coffee market. About Sunrise, Milo, or, Nescafé 3-in-1, all are easily available at the shops near you. With the opening of its own outlets to compete with coffee shops, the distribution of the beverage segment of Nestlé has become even stronger. The location of these outlets make then even more important. Distribution is definitely a strong point for Nestlé beverages.

Promotion Mix

The rise in competition has made the promotion mix even more important. A company needs to show how its products are different from what is being
provided by its competitors. Nestlé beverages have done well in this regard also. From TV advertisements to sponsoring TV programmes, events like MTV Youth Icon of the Year 2005and even movies like ‘Koi Mil Gaya’, it has done everything to woo the customers.

The Case of NESCAFÉ

Till a few years ago, life with Nescafé was exotic. You could enjoy the aroma of the dark coffee beans, feel the nip in the air, overcome hurdles, win acclaim, bond with friends and peers with laptops, as the catchy Western jingle played in your mind. Remember, “The taste that gets you started up…”? This was how the Nescafé was promoted in the beginning. While talking about the ads, lets look at an interesting fact: Let’s watch out the Top 5 Coffee brands advertised on TV during the last three quarters of 2008. This table is a proof of the aggressive advertising adopted by Nestlé. One of the most memorable and popular campaigns of all times is the ‘Open Up’ advertisement of Nestlé. One thing, the world over, which helps people to take time out, to listen to each other and to open up is a cup of coffee. “Open Up” is the global campaign for Nescafé to celebrate the part that coffee plays in people’s lives. To capture the enormous diversity of experiences and emotions associated with coffee drinking the commercials were shot, over several months, all over the world. And they will also be seen worldwide. The noticeable difference between Nescafé’s old campaigns and the latest arranged marriage advert (and also the earlier train ad, featuring VJ Gaurav) is the latter’s bid to familiarise itself to the Indian middle class. This is evident from the subject of the story, which is spun around the most common of all cultural aspects of the Indian society – an arranged marriage. It’s also apparent that Nestlé and McCann-Erickson’s choice of protagonists – actors Kashish (Aamna Shariff) and Sujal (Rajeev Khandelwal) from STAR Plus’ popular serial ‘Kahin To Hoga’ – was driven by the single objective of making the brand popular with the masses. The serial is among the top four serials on STAR and even after a run of one year, still enjoys a TVR above 10. Clearly, with this particular ad, Nescafé is making a very conscious effort to bond with the masses.

To conclude the project, following is the SWOT Analysis of Nestle:

Strengths

  • Access to the Nestle Group’s proprietary technology/brands, expertise and the extensive centralised Research and Development facilities under the General Licence Agreement.
  • High quality, safe food products at affordable prices, endorsed by the Nestle Seal of Guarantee.
  • Strong and well differentiated brands with leading market shares.
  • Ongoing product innovation and renovation, to convert consumer insights.
  • Well-diversified product portfolio.
  • Efficient supply chain.
  • Distribution structure that allows wide reach and coverage in the target markets.
  • Capable and committed human resources.

Weaknesses

  • Exports of coffee to Russia constitute substantial part of overall exports.
  • Complex supply chain configuration.

Threats

  • Indications of shift in consumer spending towards asset building and non-food related life style changes, diverting consumer demand for FMCG products.
  • Rising prices of raw materials and fuels.
  • Change in fiscal benefits.

Opportunities

  •  Potential for expansion in the smaller towns and other geographies.
  • Potential for growth through increased penetration.
  • Growing trend for `out of home’ consumption.
  • Leverage Nestle Technology to develop more products that provide Nutrition, Health and Wellness.

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Business Strategy For Nestle

Table of contents

Further this report discussed on three strategy examples and the comparison of those strategies gaining the reader’s ability to think strategically. The continuation of the analyzing the first part will give a better understanding about the effective strategic planning. For the understanding about examine approaches to strategy evaluation and selection the report discussed about the evaluation possible alternative strategies for substantive growth and limited growth on retrenchment. Further discuss about the future strategies for the selected organization.

Introduction

This assignment is all about the Business Strategy module which has been taught to us throughout this semester. The research Is done through the Internet and the text book which has given for us. This assignment includes all the details regarding the question which our lecturer gave and those been explained in a manner where anybody who reads or go through this assignment.

The main objectives of doing this assignment are to make sound understanding of stakeholders, how to maintain relationship with them, Involvement of the stakeholders In decision making, how to improve the relationship with stakeholders, use of new technology to improve the relationship between stakeholders. Further on in this report described the improvements need for the selected organization to make good communication method by evaluating the existing process of communication, the communication skills of employees have been described in this report to obtain an Idea to develop them.

By Today, Nestle has been recognized y almost everybody in the world as one of the largest food Multi-national companies which is there in the globe. Furthermore Nestle has altered itself with time to satisfy and meet the expectations of their consumers. The Vision of Nestle “The vision of Nestle is to be the leading nutrition, health and Wellness Company in the world,” The mission and core competences of Nestle “At Nestle, we believe that research can help us make better food so that people live a better life.

Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal attrition to meet physiological needs. In addition to nutrition, health and wellness, Nestle products bring consumers the vital ingredients of taste and pleasure. ” Define the context of the business. The bottom line is that Nestle has become very successful due to one core reason which is, that they do not sacrifice long term goals and objectives for short term profit.

Business in the context of it is that the way how organizations used their infrastructure and how to use their employers , customers , bank is what makes the context of business , the way how the CEO or the coo of the organization uses, in this organization nestle is wide vast organization and their context of business is all about food products which is very needed in one selves in dad to-day living societies. Justifications to why you selected the particular industry organization will value into my concerns in time to come , this organization is one of the world’s leading organization.

The particular need in this industry is that we all can learn how well this organization is disciplined , organized . All this is very important while selecting as to what I have selected , my personal opinion is that this is the best vive taken forth for.

Strategy formulation

Stakeholder analysis

  • Identify the organizational position in the market. This refers to the market the organizational position in the market. This will also help the organization to identify their weaknesses and strengths.
  • To identify the strengths and weaknesses of an organization. This refers to identifying the internal and the external environment of Nestle Private Limited and identifying the internal and external factors which affect the organization.
  • To identify market gaps in an organization. Certain stakeholders such as managers are interested in business activities to identify the small market gaps in the market where certain people demand for facial goods and satisfying those special customers appropriately.
  • To utilize limited resources to achieve organizational goals. The main organizational strategy is to increase the performance to make more profits.

Stake holders are the parties who are affected by an also have an interest in how the business is operating and what it achieves. Stakeholders are people who will be impacted by the strategic plan of the company, who have information, experience or ideas that will be helpful in developing the plan and are visionary thinkers interested in exploring new opportunities. Customers, suppliers, employees and community are the main takeovers of souls.

External and internal stakeholder analysis

External analyses are the people or the party who are interested in a particular organization externally.

For example we can take the above diagram into account, distributors, suppliers, Shareholders, Regulatory bodies, Government, Competitors and the business partners of Nestle Private Limited. Internal Includes the parties who are interested in the business organization within the same particular business organization are called as internal stakeholders. These can be managers, employees and directors and so on. The internal stakeholders of the Nestle Corporation are managers, Board of directors, Unions etc. Stakeholders of an organization organization.

This might be a member of an organization, volunteer, staff, management, board member, founder or a contracting body, client, community of interests such as locality or grouping of people who might benefit. Every business organization has a range of stakeholders. An organization is established based on blending the various interests of these stakeholder groupings. An objective to be the market leader of an organization will benefit all stakeholders because customers will chive high quality products, shareholders will receive high dividends, and employees will receive high wages.

The employees are interested of the company is to ensure that their Jobs are bean secured and the company is in a stable situation

Suppliers

The suppliers want their payments on time. They are also interested in the company growth so that they could supply more and more.

Creditors

The company has to pay the creditors on time. The creditors are interested about the organization performance because the company runs from the creditor’s money

Government

The government wants the company to pay tax on time.

The government wants company to do well since it brings in large amount of revenue through taxation on importing and exporting goods. They also want the company to follow the government labor rules and regulations

Competitors

The competitors are interested about the company’s performance and the products so that they could compete with the organization

Financial institutions

The financial institutions are interested abut the performance because the company has to pay them the money back.

Customers

Customers the company to produce good quality tea expects a good service from the organization Applying appropriate positioning strategies to analyze the selected business . Strategic objective formation e can apply positioning strategies analysis to the selected business in which ways it can overcome difficulties of the normal positioning , in which case the same in the fast moving consumer goods market in the domestic market as well as world- wide.

So in my perspective the organization should focus on technological developments along with human resource and marketing factor developments which will take the Nestle a step forward towards the achieving more market share and growth while maximizing profit and retaining and creating new customers. An objective can be defined as the specific targets that must be achieved if a equines should fulfill its aims. And in brief when a result of a goal is expressed in a more certain and a clear manner it is known as an objective.

Strategic planning

According to the above mentioned data we can easily conclude the fact that the organization is simply at the top of the fast moving consumer goods hierarchy in almost all the countries around the world. The strategic objectives which in my perspective I would like to develop for the next areas that Nestle Corporation should take into consideration which is in as follows,(by using previous studies as well). Increase the profit margin by 25% within the next two years (2012).

Increasing the market share of the organization by 10% within the next three years (2013).

Double the productivity level within the time period of 12 months.

Gain a 15% increase in sales by the end of 2012. Comparison of the characteristics of objectives with the newly developed objectives

  • Specific – Simply all three objectives mentioned above are specific. All objectives are regarding profit maximizing, increasing market share, multiplying the productivity level and increasing sales of the organization.
  • Measurable – All the above mentioned objectives are measurable. Simply all of them have themselves a target time duration where the organization can measure the performance.
  • Achievable – As mentioned earlier, Nestle is a highly reputed organization within the market for producing a variety of products. It is simply one of the best fast food manufacturing organizations worldwide. All the above mentioned objectives are basically regarding the maximizing profit, market share and doubling the productivity level are totally achievable by the organization.
  • Realistic – The above mentioned objectives can be achieved since the high reputation of the organization and the position of the organization within the domestic and the outbound market.
  • Time-bound – Time bounded refers to a specific time frame which the objectives are been addressed to. All the above mentioned objectives are referred to a specific time limit in years and months in case of the third and the last objective.

The formula for productivity is efficiency + effectiveness = productivity or output/inputs. The more the productivity the more the consumer gets persuaded. It’s the organizational responsibility to measure the efficiency and to make sure that the organization is engaging in the business activities as best as they could and give 1st preference to the customer. Doubling the productivity level of Nestle can be implemented as follows,

Increasing and adapting new motivational strategies for employees. Adapting new and modern management theories. E. G. Bureaucracy Management approach Human relations approach

Employee welfare and satisfaction and Improving labor relations This is one of the ultimate goals of a Human Resource Manager. Employees should be treated in an appropriate manner and should be satisfied accordingly by providing them with necessary welfare services. The Human Resource Managers are responsible for improving labor relations within employees in a specific organization.

Utilizing new technological factors which there for the taking As mentioned earlier the organization is simply been run by high technological systems.

So Nestle can take it as an advantage and manipulate on that opportunity to increase the efficiency level while decreasing the occurrence of additional costs.

Optimizing the level of Planning

There are many methodologies in optimizing planning now a days in the world due to globalization development. So Nestle can adapt such methodologies in order to increase efficiency levels and effectiveness. Strategy = Increasing the market share of Nestle by 10% within the next three years Nestle is simply one of the huge dominator in the fast moving consumer goods market in the within almost any market world-wide.

The primary reason behind this is the following facts,

  • Innovation
  • High market awareness about the organizations products
  • Good planning and implementation of good plans (Promotional campaigns)

Due to the above mentioned reasons, Nestle is one of the dominating organizations in the fast moving consumer goods market. The current market share of the organization is approximately amounted as 40% out of the total organizations in the specified industry.

However, in order to increase the market share of the organization the following should are my recommendations,

Increase the capability and strengths f the organization An organizational audit regarding the SOOT analysis is been analyzed earlier in this assignment. And in my opinion what nestle should do is to focus on their strengths such as Specialists in the industry, Generation of new products and The Profitable Location and improvise on the opportunities they gain to achieve this target successfully. * Importing new products which are not available This factor will be discussed later on this assignment.

Nestle can strategies themselves to bring down and import the products which are not available in the domestic market to capture the market . Simply in the domestic market, Nestle is targeting the children as their primary target market. So if they can widen their target market, they have the competency and have created the charisma to achieve profit within a short period of time which will lead to high market share.

Focus on increasing profit of the organization Nestle can focus on their profit maximizing strategies which are mentioned above to increase market share.

Evaluation and selection

Evaluate strategies using appropriate methods

  • The current situation: The current market share of the organization is according to he researches is 6. 1%
  • Objective: To increase the market share by 10% within the end of 2011 As I mentioned earlier Nestle is in a very demanding position at the current situation, the organization should strategies themselves to conserve and retain the position in which they are right now and to create more and more sales and maximize profit.

However in order to increase the market share from by 10%, the organization should identify the methodologies in which they can achieve the targeted objective by closing down the gap. Nestle can be recommended to follow the following business traceries in order to achieve the desired target.

  • Focus on good management of resources and increasing the productivity levels within the organization.
  • within the organization and Increase the motivational levels of the management.
  • Take modern management approaches to achieve short term goals which will facilitate the primary objective goals. Innovation of new product categories which are targeted at new target market segments and improvisations.
  • Using the Pricing and promotional strategies as tools to create and retain customers while utilizing technology at its optimum. Identifying and evaluating resources requirements to implement the new strategy. Resources can be defined as a stock or supply of materials and assets. In economic terms there is a limitation in resources when compared to the unlimited wants of people. This been further defined by the term “scarcity’.

This implies, in brief there is limited number of resources to fulfill unlimited amount of wants. So the organizations should use these resources carefully and sustainable to make the future generation also have an amount of resources to be utilized. However when we discuss about the resource requirements o achieve the newly developed strategies for the organization, the most important point in perspective are people. By the term “people” I refer to the employees who are engaged in organizational activities and Labor activities in Nestle. Implementing the strategy which I developed will come as a challenge to the Nestle.

And the capability of an organization to face challenges depend on a few things such as the culture, organizational hierarchy and the most important aspect is management practices of resources efficiently and to utilize the correct resource at the correct time. Besides all the facts the most valuable point which a manager should eye on is “people”. Managing People are the ultimate objective for managers and it is the most crucial constrain that an organization faces. The respective parties should focus and should highly prioritize on people and human capital and labor rather than any other resource when achieving an objective like this.

The organization should be indulged with capable employees who can control people or subordinates of the organization. For me in my perspective human capital plays a vital role in achieving profit and arrest share for the organization because any organization should prioritize on customers and they should be satisfied efficiently and effectively to achieve goals and objectives. So in order to identify those customer necessities the perfect resource that can be utilized is employees itself.

Even though there are other resources such as Information and technological factors, they can only provide options to achieve targets successfully. But it will not generate 100% accurate decisions. So in my opinion Nestle should adapt Informational technology to gain information but the primary resource that they should focus on is “people”. Selecting an appropriate strategy to implement. The strategic objective that I proposed to Nestle should be analyzed and monitored appropriately in order to make optimum usage of it and to identify that the organization is running on the correct path and track.

A Manager cannot perform and monitor all the functions of an organization, due to the lack of time and specialized knowledge, and in my perspective I would recommend Nestle to have a specific department which will monitor the performance level and the accuracy level of the strategy implementation which will enhance the quality of the work which are en done by the respective parties as well as it will increase the efficiency in department of any organization there is a process namely “performance appraisal”.

Nestle can adapt and improvise on this and innovate a performance appraisal methodology to monitor the strategy implementation effectively and efficiently. I would like to suggest to monitor the performance of the organization every 2 months so that if there is a specified department responsible for the strategy implementation they actually can inform the defects to the top level managers and take decisions in how to overcome those constraints and etc. L the positive and the negative effects of the strategy implementation should be analyzed and the respective parties should take actions to minimize the negative effects and to optimize the positive effects for the organization. The reviewing process should be done accurately so that the organization can improvise n the opportunities they gain by analyzing these strategy implementation plans which will also benefit the organization in an enormous way.

However all in all this strategy which I proposed to implement will also create corporate social responsibility for the organization by creating more Job opportunities for the public. So Nestle can take as an advantage to achieve their targets and desired objectives efficiently and effectively. Finally by reviewing this, the organization also can come up to alternative contingency plans to execute if something by any chance go wrong in the uncertain environment for nestle.

The organization also can take advantage of the technological factors which are available for them to monitor the performance as well. The following are some products which are been produced by Nestle which are extinct and yet and yet to be introduced to the domestic market. These can be taken s options available for Nestle to import to the domestic market as a product development strategy.

So far in the Domestic Market there are no Cappuccino drinks available at market stored except for a specific number of hotels such as Tag Samara and Cinnamon Grand (Coffee stop). Introducing the Unsafe Cappuccino into Sir Lankan would be a perfect opportunity for Nestle to diversify their product options ND to increase the market share which will indirectly increase the profit for the Uniqueness Cereal.

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Nestle Pakistan Limited

Nestle Pakistan Ltd. is a food processing company, which is registered on Karachi and Lahore stock exchanges. It established its first production unit in 1988 in Sheikhupura, Pakistan with the name of Nestle Milkpak Limited but its name has been changed and now it is called Nestle Pakistan Limited. Headquartered in Lahore, the Company operates five production facilities. Two of its factories in Sheihupura and Kabirwala are multi product factories, while another one at Karachi is already for production. One factory in Islamabad and two in Karachi produce bottled water.

Through its effective marketing and a vast sales and distribution network throughout the country, it ensures that its products are made available to consumers whenever, wherever and however. Nestle Pakistan is a subsidiary of Nestle S. A. – a company of Swiss origin headquartered in Vevey, Switzerland. Marketing Mix Of Pakistan Nestle Pakistan Limited is selected to study that how they have planned their marketing strategy for Nestle Pure Life (water). Nestle is a multinational food company and offering Fast Moving Consumer Goods (FMCG).

The motto of Nestle is “Good Food, Good Life”, so delivering the qualitative products to the customer is their main objective. It is offering 75 brands of bottled waters worldwide. Nestle Pure Life (NPL) is one of them that was first offered in Pakistan by Nestle Pakistan Limited in 1998. People felt need of Pure, safe and clean water because of impurities in water especially in the industrialized cities like Karachi, Lahore, Faisalabad etc. Nestle identified this opportunity and lunched NPL that satisfied the customer needs and Nestle become market leader in the water industry.

The customers of NPL showed interest on NPL because of trust on Quality of Nestle, at the heart of which there are qualitative products and its long term commitment to deliver better products to consumers. Being the market leader, the market share of NPL is 78% that is much higher than its competitors. NPL is passing through its Growth stage (of Product Life Cycle) i. e. its sales are increasing tremendously and competitors are entering in the market like Aqua Fina by Pepsi and Askari Waters.

There are different SKU’s of NPL to cover a wide market needs like for Home and office delivery there are 3gallon and 5 gallon bottles (bulk usage) and for day to day usage easily carrying light weight like “1. 5, 0. 5, 0. 2 liters” bottles are available in the market. Still Nestle is working on bringing the changes and innovation in this field. For this it has close relationship with its suppliers and distributors to get their suggestion to improve the quality of NPL. Nestle Pakistan also has the Customer Service Department with the logo “Talk to Nestle” in Lahore to receive the complaints and suggestions from the customers.

In this way Nestle analyze its market and becomes aware of the new market trends. Marketing strategy include 4 P’s strategy i. e. Product, Price, Place and Promotion strategies. Product is something that is offered to the market. NPL product strategy studies show that they are positioning the product with respect to its attributes that NPL is safe, pure, refreshing and healthy water. Nestle also does product line expansion; recently it has offered a 0. 25 liter bottle of NPL in the market. It’s also using the company name with its product name i. e. Nestle Pure Life.

NPL round shape and elegance of the bottle are instantly recognizable. Quality is cornerstone of NPL success. Nestle people say: “Quality is our more successful product and it is key to our success today and tomorrow. ” In Price strategy, Nestle has adopted the strategy of non-price competition. It is offering one price for NPL to all cities of Pakistan. It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors. Placement is the distribution of the product to its customers at right time, in right quantity, at right price and at right place.

To ensure this, channel adopted by the Nestle for distribution of NPL is as follows: Producer Wholesaler Retailer Consumer NPL comes under the category of FMCG, so for this the timely supply is very important that’s why Nestle is following intensive distribution strategy. Promotion is the very important and crucial element of marketing strategy as through it the company establishes its image in the minds of the customers. NPL is promoted by using different ways of promotion. Advertisement of NPL is done through TV, radio, billboards, newspapers and magazines.

Current advertising slogans are that NPL is trust, hope and happiness and JIYO! Kay yahi hay Zindagi. Nestle also conducts the tradeshows, concerts, events, sponsorships, and discounts for sales promotion. For establishing public relations, Nestle distributes its newsletters, annual reports, calendars and diaries, lobbying, donation for charitable and civic events. For the victims of 8th October 2005 earthquake, Nestle has donated 90 trucks, which were containing different foods items, and NPL was one of them which is around Rs. 2 Billion.

The Nestle organized its teams to distribute products to the effected areas and all employees contributed from top to bottm (MD himself was involved personally to distribute products physically) Market Market consists of people or organizations with needs to satisfy, money to spend, and willingness to spend it. Markets are made up of current and prospective customers, defined as any person or group with whom a marketer has an existing or potential relationship. Analysis of Market Analyzing the market means getting the information about the current market trends.

The needs and wants of the customers are identified; the availability of the products is monitored as well as information about the competitors is gathered through this analysis. The image of the product in the minds of the customers is also judged and then on the basis There are different ways, which are adopted by Nestle to get the information of the market. Sales Department Sales department is a primary source of getting the information about the market. They actually visit the market and find out that who are the competitors, and what strategies they are adopting.

They also collect the complaints of the customers and make sure the availability of the product in the markets. Customer Service Department For Every product there is customer service department. This is head office based department i. e. every head office has its own department. In this department, customer’s complaints are collected which are gathered through the sales force or directly submitted by the customers. Then batch number is assigned to these complaints and is transferred to the Marketing Department.

If Marketing Department can’t be able to solve the problem then these complaints moved to the Quality Assurance Department, which is working in the Factory. Nestle believe in maintaining regular contact with their consumers. This applies both to how it presents its products and to how it addresses its consumers’ questions and concerns. When Henri Nestle prepared his first boxes of infant formula for sale, he put his address on the packages so people would know where to go if they had questions.

Today, Nestle’s Consumer Relationship Panel with the words “Talk to Nestle” expresses the same commitment. This is why Nestle have a worldwide Nestle Consumer Services network devoted to caring for consumers. The employees have expertise in a wide range of areas such as nutrition, food science, food safety and culinary expertise. They provide the prompt, efficient and high quality service that consumers expect from Nestle. In addition, employees are taught to talk with consumers and above all, to listen. Listening helps to understand what people want.

Nestle uses the insights gained from relationships with consumers to drive product development. Nestle cares for its consumers because its success depends on meeting their needs and expectations. Through listening and understanding, it can make products that they will want to use all through their lives. Market Entry Strategies The price of NPL is maintained constant over the period as the base for this is qualitative product which over the time period has reaped more market by keeping price constant. Discounts and Allowances

Discounts and allowances result in a deduction from the base (or list) price. The deduction may be in the form of reduced price or some other concession, such as free merchandise or advertising allowances. Discounts and allowances are common in business dealings. Nestle (NPL) offers the Trade Discounts to it customers. Trade discounts sometimes called functional discounts are deductions from the list price offered to buyers in payments for marketing functions the buyer will perform. The examples of these functions are: storing, promoting, and selling the product.

One-Price Strategy NPL is using this special price strategy i. e. one-price strategy in which the company charges the same price to all similar customers who buy identical quantities of a product. But for different quantities the company is offering different price. Even prices are set for the NPL products. Resale Price Maintenance Some manufacturers want to control the prices at which middlemen resell their products; this is termed as resale price maintenance. Nestle is also following this strategy.

It is doing so to protect the brand’s image. They say that their control of prices provide middleman with ample profit margins. Place Inn marketing strategy, Place means distribution of the products. It is a very important element of the marketing-mix. Ownership of a product has to be transferred some how from the individual or organization that makes it to the consumer who needs it and buy it. Goods also must be physically transported from where they are produced to where they are needed. For this purpose, middlemen are used.

Middleman is a business firm that renders services related directly to the sale and/or purchase of a product as it flows from producer to consumer. Due to these middlemen, activities such as creating assortments and storing products can be shifted from one party to another in an effort to improve efficiency. They are also able to carry out distribution activities better or more cheaply than either producers or consumers. A distribution channel consists of the set of people and firms involved in the transfer of title to a product as the product moves from producer to ultimate consumer or business user.

Marketing Mix (4 Ps) for Nestle Malaysia Product: Nestle has one of the biggest and finest product range in food and nutrition in Malaysia. The prepared food market has been rising in Malaysia which was correctly and elegantly captured by the Nestle. So I recommend for nestle to continue its dominance in the prepared food market and produce new products in prepared foods area which can be assumed as healthy food such as chicken-salad, tuna-salad and other food with salad Price: Price range offered by the Nestle on its products has a huge variety from being very low to very high.

The packaging of lower to higher priced products helps Nestle to capture all sectors of customers with any age and any buying preferences in bulk of a small price. The market is very intense competitive in pricing and Nestle is never behind in it. so we recommend to use current nestle pricing strategy. Place: as the Nestle is in Malaysia for more than 100 years they have a vast distributed network of distributors, wholesalers, retailers and suppliers. The loyalty and association with the company of the entire channel player is so strong that Nestle never face any problem in distribution network in any part of Malaysia.

As for our new products we need to focus on the healthy perception, so the expire date should be within 5 days so it can be assumed as fresh food and it should be kept in suitable environment. Promotion: Nestle has used a variety of promotional strategies for its long range of products. In chocolate section Nestle has offered promotions strategies under which free bars will be offered in the multi bar family pack. The company has also had tie up with Burger King in recent past in order to win exciting prices such as meal coupons to its customers.

As for the healthy prepared food Nestle promotion team will work with health and fitness centers like fitness first and true fitness to encourage and recommend their customers to eat nestle healthy prepared food. According to Nestle’s CEO, Paul Bulcke, the major strength of the company is its long presence (FLEXNEWS 2008). Nestle Malaysia has an existence that dates back to 1912. It has had a first mover advantage on most of the product lines and hence it cannot at this point sacrifice the chance of being the leader in the market.

And as the healthy consciousness and awareness increased in the recent years people prefer to eat healthy food. Physical Evidence: Nestle has adopted some of the newly and eye catching strategies as done by the Pepsi and Coke to invite people to their factories and check the quality and hygiene of the products produced by the company. Nestle also adopted this strategy and was able to capture people and thus increase their markets by many fold. Also Nestle started getting medical teams associations to get them accredited and better their images in their customers.

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