Nestle International Business

Nestle
Team Members Roll No.

Tanay Agarwal 05
Akash Katta 45
Revati Pathak 64
Pratibha Shakya 84
Kamna Sharma 87
About Nestle
Swiss multinational food and drink processing
conglomerate corporation.
Headquartered in Vevey, Vaud, Switzerland.
Founder: Henry Nestle, CEO: Ulf Mark Schneider
Ranked No. 64 on the Fortune Global 500 in 2017.
Nestlé's products include baby food, bottled water,
breakfast cereals, coffee and tea, confectionery,
dairy products, ice cream, frozen food, pet foods,
and snacks.
 Nescafé, Nestea, Maggi, Munch, Kitkat and Friskies
contribute about 70% of the group's total sales.
 Nestlé has 447 factories, operates in 189 countries,
and employs around 339,000 people.
Nestle Timeline
1866: US brothers Charles and George Page help
establish Anglo-Swiss Condensed Milk Company. Establish
Europe’s first production facility for condensed milk in
Cham.
1867: Nestlé’s founder, German-born pharmacist Henri
Nestlé, launches his ‘farine lactée’ (‘flour with milk’) for
infant consumption in Vevey, Switzerland.
1875: Henri Nestlé sells his company and factory in
Vevey to three local businessmen.
1878: Fierce competition develops between Nestlé and
Anglo-Swiss, when both companies start selling rival
versions of the other’s original products.
1882-1902: In 1882 Anglo-Swiss expands into the US. In
1902 it sells its US-based operations, which paves the
way for an eventual merger with Nestlé.
1904: Nestlé begins selling chocolate for the first time
when it takes over export sales for Peter & Kohler.
Current Portfolio
Beverages
1938 when Nestlé launched the first commercially
successful soluble coffee. Nescafé, which today includes
ready-to-drink varieties, is by far the world’s most
popular brand of coffee.
Nestle markets traditional roasted coffees in several
European countries, as well as espresso coffee in
capsules through Nespresso.
Nestlé is also the worldwide leader in chocolate/malt
beverages, with brands such as Nesquik, Milo, Nido.
Nestlé is present in fruit juices, where its most important
brand is Libby’s in the United States, and in tea-based
drinks, particularly soluble and ready-to-drink Nestea.
Nestle Waters is one of the leading bottled water
manufacturers in the world representing organic growth
of 2.1%.
Current Portfolio
Milk products, nutrition and Icecream
Under nutrition products Nestle has launched a+ Grekyo
Greek Yoghurts added with fruit pieces projected as
healthier snack.
Nestle Everyday brand contains Ghee and Dairy Whitener.
Another milk and dairy products consist of Nestle a+ Slim
Milk and Dahi,Nestle Actiplus Dahi as healthy variants to
it’s regular slim Milk and Dahi.
Another proprietor product introduced by Nestle in Delhi
NCR region is Nestle Bhuna Jeera Raita.
Nestle Milkmaid is condensed milk synonymous with
desserts.
Nestlé merged its U.S. ice cream business with Dreyer's
Grand Ice Cream in 2002. The deal was valued at $2.4
billion and gave Nestlé control of the new company.
Current Portfolio
Chocolates and Confectionery
Under Chocolates Nestle has several famous
brands like Kitkat, Munch, Milkybar, Eclairs,
Nestle Classic, Polo, BarOne.
Net Sales of Confectionary of Nestle is 5th in
rank after giants like Ferrero Group, Mondelez
International, and Mars Inc.
Prepared Dishes and Cooking Aids

Maggi is the biggest brand of Nestle competing in
read to cook segment. Maggi Noodles segment is
major driver of Nestle profit growth.
Nestle has introduced different noodles variants,
Masala Mix and Dips under Maggi brand.
Current Portfolio
Petcare
Nestle Purino Petcare produces and markets pet
food, treats and litter. The company was formed
in 2001 by combining Nestlé's Friskies Petcare
Company with Ralston Purina. It is the second-
largest pet food company globally and the
largest in the United States.
Childcare
 Gerber Products Company is a retail
store of baby food and baby products
headquartered in Florham Park, New Jersey.
Gerber is a subsidiary of Nestlé.
Nestle India
Nestle India Ltd, one the biggest players in FMCG segment.
CEO: Suresh Narayanan; Listed in NSE.
Nestle connection with India dates back to 1912, when it
began trading as Nestle Anglo Swiss Condensed Milk Company
(Export) Limited, importing and selling finished products in the
Indian market.
After India’s independence, Government emphasis on local
production Nestle set up it’s first factory in 1961 at Moga,
Punjab.
The company has 8 manufacturing facilities and four branch
offices across the region India. Head Office is in Gurgaon,
Haryana.
In 1983 Nestle launched Maggi in India as 2 minute Noodles.
On March 2018 Nestle succesfully completed 35 years of
existence.
MAGGI Noodles has further strengthened its leadership
position. with more than 50% market share in the Noodles
category as per Nielsen report.
Nestle India Porter’s Five Force
Threat of New Entrants
1. Government Policy- GST, Food Security Bill
2. Capital requirement
Threat of Substitutes
1. Buyer Switching cost
2. Number of substitute products available in
Market.
3. Relative Price Performance of Substitute.
Bargaining Power of Customers
1. Buyer Concentration to Firm Concentration
Ratio
2. RFM ( customer value Analysis)
Bargaining Power of Supplier
1. Employee Solidarity
Competitive Rivalry
1. Degree of Transparency
2. Level of Ad Expenses
Nestle India Marketing Strategy
Nestle employs “Think Globally and Act
locally” strategy.
Nestle uses the most suitable language
for advertising in different countries.
Nestle used low cost variants to target
price sensitive Indian Marktet.
Kitkat was relaunched in a new unique
single finger format at Rs 5.
Nestle Munch Chotu priced at Rs 2
contributed in brand performance.
Nestle India Operations
The three levels of supply chain consist of
multiple producers (also called factories or
suppliers), multiple intermediate warehouses
and multiple distributors (also called
customers). Several customers are grouped
together into zones, and are allocated to
each of the warehouses.
Road is the only type (mode) of
transportation.
Consumption of goods from warehouses
(removed to deliver to customers) is in first-
in-first-out (FIFO) order.
Each warehouse allocates only a certain
space to each type of good.
Nestle Malaysia
Established in Malaysia since 1912.
Biggest halal producer in the Nestlé world
and the Halal Centre of Excellence for the
Nestlé Group. Produces over 500 halal
products.
CEO: Juan Aranols
Head Office: Mutiara Damansara, Selangor
Public listed on Bursa Malaysia since 1989
Employees 5000+ people.
Milo, perhaps the most sought-after and
memorable chocolate drink in Malaysia.
Nestle Malaysia Porter’s Five Force
Threat of New Entrants

1. Government Policy- GST, Food Security Bill
2. Capital requirement
Threat of Substitutes
1. Availability of substitutes- High
Bargaining Power of Customers

1. Needs of the customers- Health conscious
Nestle Malaysia Porter’s Five Force
Bargaining Power of Supplier

1. Many local Manufacturers
Competitive Rivalry
1. Level of Ad Expenses
2. 10 competitors in Nestle's competitive
set are Mondelez International, Mars,
Hershey, Kraft Heinz, General Mills,
Danone, Unilever, Kellogg's, Ferrero and
Ghirardelli
Nestle Malaysia Marketing Strategy
 Differentiated marketing here nestle gets to decide to
target several market segments and design separate offer
for each.
Nestle (Malaysia) utilizing differentiated marketing
(segmented marketing) strategy by having several
categories of product that means to target different
customer.
Nescafe Menu utilizing the multiple segmentation bases
which included of geographic, behaviour, and
demographic segmentation.
Pricing strategies
Value Based Pricing: Set reasonably low price but still offer
high quality products and adequate customer services.
 Promotion Discounting: Nestle uses this strategy to attract
new and old customer and increase their sales during
promotion.
Nestle Malaysia Operations
Nestle Malaysia use this concept to plan the
capacity that they are going to produce.
Produce based on current demand and
consider about the fix cost and variable cost
that they have for a product. If the price of
raw materials is increased, they have to
adjust the products price to cover the costs.
Nestle currently try to maintain the products
price as the best as they can to help
customers. They also consider their
warehouse space to keep the inventory.
Nestle also buy raw materials in bunch to
reduce the variable costs. So they can
manage to obtain customers loyalty and
Advertisement Links
https://youtu.be/DyMtcblMXfM (India)
https://youtu.be/kzh9MrrBmV8 (Malaysia)

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Nestle

Team Members Roll No.

Prepared Dishes and Cooking Aids

Threat of New Entrants

Bargaining Power of Customers

Bargaining Power of Supplier

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