A

PROJECT REPORT
ON
NESTLE

FOR THE PARTIAL FULLFILLMENT OF MASTERS OF BUSINESS

ADMINISTRATION
GOVERNMENT ENGINEERING COLLEGE OF JHALAWAR RAJASTHAN

SUBMITTED BY:
ROSHNI JASUJA
2024-2025
DECLARATION

I hereby declare that the project work entitled “Disaster Management”

Submitted to the Engineering college Jhalawar, is a record of an original
work Done by me under the guidance of Dr Aditi Dwivedi, head of the
MBA Department. And this report work is submitted in the partial
fulfilment of the Requirement for the award of the degree of Master of
Business Administration. The results embodied in this thesis has not
been submitted to any other University or institute for the award pf any
degree or diploma.

Name of the student

ROSHNI JASUJA
ACKNOWLEDGEMENT

I would like to express my deep sense of gratitude to our Guide MR. Hitesh sharma
sir I Department of Management Studies for his active cooperation in Completion of
this work. She was kind enough to cater my never-ending queries. Without his
gracious cooperation and valuable guidelines, the work would not Have been in
present shape. For the accomplishment of this report work, Expression and words run
short to convey my gratitude to many individuals. This Report work is an outcome of
moral support and persuasive interest dedicated From many individuals directly or
indirectly involved. We are highly indebted and Grateful to Mr. Hitesh sharma and
other faculty members in the Department of Management Studies at (ECJ)
Engineering College Jhalawar for their continuous Blessings and encouragement.
Last but not the least; we would like to express Our gratitude to our parents for their
valuable support and encouragement.

ROSHNI
 INDEX

Sr. No. Particulars Page No.

1. Executive Summary

2. Introduction

3. Objective

4. Research Methodology

5. Company Profile

6. SWOT Analysis

7. Overview

8. Conclusion

9. References
EXECUTIVE SUMMARY

The current millennium has unfolded new business rules most the significant
of them being that company has to constantly look into minds of the customer.
Customer loyalty plays a significant role and today securing that loyalty
requires quality right price and of course last but not the least i.e., creating
awareness about their service. As a trainee, I was given knowledge about the
way and style of their working, their routine and their environment. It was a
great experience in getting under such a reputed company, which has in it the
ability to retain customer.
INTRODUCTION
Nestle India Ltd. Is a part of the Nestle SA group which is one of the largest
manufacturing companies in the World? Henri Nestle founded the company
(with its headquarters in Vevey, Switzerland) in 1867. Nestle has two major
divisions - Le Societe des Produits which looks after the production and
marketing and Nestec Ltd. which provides the technical assistance to the
group companies. Since its inception in 1867, the company has diversified its
product range from the infant weaning formula (which was its first product) to
beverages, confectionery, ice creams and pet foods among others. In a span of
130 years the company has ranked 26th among the world’s largest corporations
and boasts of a turnover of $48932.5 million and employee strength of 221,144
people spread over 75 countries worldwide.

Nestle has long been viewed as one of the most multinational of the
multinationals. This is because today only 2% of its turnover comes from
Switzerland. Out of the remaining 98%, Europe contributes 43.5%, North and
South America contribute 36.5% and Africa and the Asia Pacific Regions
contribute 18%

Nestlé S.A. is a Swiss multinational food and beverage company headquartered

in Vevey, Switzerland. It is the largest food company in the world measured by
revenues.
Nestlé's products include baby food, bottled water, breakfast cereals, coffee,
confectionery, dairy products, ice cream, pet foods, and snacks. 29 of Nestlé's
brands have annual sales of over 1 billion Swiss francs (about $ 1.1 billion),
including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and
Maggi. Nestlé has around 450 factories, operates in 86 countries, and employs
around 328,000 people. It is one of the main shareholders of L'Oréal, the
world's largest cosmetics company. Nestlé was formed in 1905 by the merger
of the Anglo-Swiss Milk Company, established in 1866 by brothers George
Page and Charles Page, and Farine Lactée Henri Nestlé, founded in 1866 by
Henri Nestlé. The company grew significantly during the First World War
and again following the Second World War, expanding its offerings beyond its
early condensed milk and infant formula products. The company has made a
number of corporate acquisitions, including Crosse & Blackwell in 1950,
Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, and Gerber in
2007.
Nestlé has a primary listing on the SIX Swiss Exchange and is a constituent of
the Swiss Market Index. It has a secondary listing on Euronext. In 2011,
Nestlé was listed No. 1 in the Fortune Global 500 as the world's most
profitable corporation. With a market capitalization of $233 billion, Nestlé
ranked No. 9 in the FT Global 500 2013.

Nestlé
We unlock the
power of food to
enhance quality
of life for
everyone, today
and for
generations to
come
OBJECTIVE
• To identify the services and products offered by NESTLE.
• To study and analyse the customer perception and preference about
NESTLE.
• Finally, to draw the various conclusion and recommendation on the on
the basis of study conducted.
RESEARCH METHODOLOGY
Managers need information in order to introduce products and services that
create value in the mind of the customer. But the perception of value is a
subjective one, and what customer’s value this year may be quite different from
what they value next year. As such, the attributes that create value cannot
simply be deduced from common knowledge. Rather, data (information) must
be collected and analysed. The goal of Marketing Research(analysis) is to
provide the facts and direction that managers need to make their more
important marketing decisions. The analysis involves the following steps:
• Define the problem.
• Determine research design.
• Identify data types and sources.
• Determine sample plan and size.
• Collect the data.
• Analyse and interpret the data.
• Prepare the research report.

For the purpose of study, data from the in-house survey conducted by the
marketing department (secondary data) has been used and also for coming out
with the recommendation. It was also felt that mere secondary data would not
provide in-depth information for the analysis, hence it was decided that
interactive discussions with the managers and the head of every department
would help in an in-depth and true understanding of challenges faced by the
department.
The methodology adopted was to gather relevant information from the
appropriate department, correlate the information obtained and to present the
information in a logical and systematic manner.
Company Profile
Although Nestle has been associated with India since the beginning of the
century through the importing and trading of infant food and condensed milk,
manufacturing in India only began with the setting up of the factory in Moga
in 1962. The first product to be manufactured was Milkmaid. In the last 35
years the company has shown rapid progress and has increased its product
range to 80products as of October 1997. Nestle India Ltd. Now ranks
22ndamongst India’s most valuable companies (Annexure B). Its gross revenue
has increased from Rs 1001.1 crores to Rs. 1213.8 crores to Rs 1001.1 crores
to Rs. 1213.8 crores in 1996. This remarkable growth has been achieved
through –
• Rapidly creating greater manufacturing capacity, both at factories as
well as with co-packers.
• Taking measures to ensure availability and improved quality of key raw
materials – fresh milk in particular.
• Strengthening of the sales and distribution network (particularly in
smaller towns)
• Ambitious and cohesive manpower training and development programs
for the personnel of the company across all disciplines.
The company’s exports also resulted in a very successful year in this area as
exports grew by 27% to Rs. 250.8 crores in 2003. The main contributors to
this increase were the export of tea and coffee to USA, Japan, Russia,
Hungary and Taiwan. Nestle India Ltd. wants to further increase its
operations in India and has started construction of its sixth Factory at
Bicholim, Goa for the manufacture of culinary products (a key thrust area)
for this purpose.
The Spirit of Nestle
“Organisational excellence is never achieved through a one-time effort; It is
always a process of continuous improvement across a number of areas of
operation.”
A key factor for Nestle’s success has been its quest for continuous
improvement through ushering in greater productivity and more efficiency in
everyday operations. Despite the infrastructure impediments in India, Nestle
has set itself high standards of business performance. This is reflected through
the essence of the company – its mission statement.

Nestle’s mission
“To be in every way the leading company in the Indian food industry and a
good corporate citizen by providing our consumers with superior quality
products, our shareholders with rapid growth & fair returns and our
employees with a challenging and satisfying work environment.”
To translate this spirit into a planned and measurable process, Nestle has set
up key objective across all divisions.
Key Objectives
Production
• To optimise production costs while enhancing product quality so as to
make Nestle products even more competitive in the marketplace.

Sales and marketing

• To reach a sales turnover of 3000 crores by the year 2003
• To double the turnover every three years

People
• To help employees to retain a long-term perspective and integrate them
fully with the company’s business goals
• To retain a broad perspective while addressing individual needs
• To view growth as a continuous process
• To concentrate on attitudinal changes by developing leadership skills,
an appreciation of interdependence between units and the enhancement
of a sense of belonging to Nestle.

Finance
• To maintain profit levels above the average for the food industry in
India.

The Business Excellence and Common Application (BECA) initiative

essentially translates the spirit of the Journey towards excellence into an
organised, systematic and measurable approach. The aim is to aid the
achievements of the company’s key objectives of rapid growth by ensuring that
all operations incorporate the spirit of meaningful planning, effective cost
control and efficient implementation. BECA is about “planned improvement
in everything we do”
Factories
Nestle has 6 factories in India. These are
1. Moga (Punjab): The Nestle factory in Moga has the pride of being the first
and most comprehensive factory of Nestle India. Set up in1962, it represents
the core competence of Nestle India in the manufacture of milk products
(Everyday, Milkmaid), beverages, culinary products (Maggi sauces, noodles,
soups etc.), weaning cereals (Cerelac) and infant milk formulae.
2. Choladi (Tamil Nadu): The factory in Choladi started production in 1967.
Situated about 60 miles from Calicut, the factory today has 81 employees and
produces 1.5% of the total turnover of Nestle India. It isa 100 percent export-
oriented unit which processes freshly picked tealeaves into soluble instant tea.
3. Nanjagud (Karnataka): Production in this factory began in 1989with the
manufacture of Nestle instant coffee and Sunrise. Today in addition to instant
coffee the factory also manufactures health beverages. The plant to
manufacture MILO was also commissioned at this factory. This factory
employs 145 people and is cited as a model in terms of environment protection
for its installations to purify wastewater as well as for its provisions for
recycling coffee wastes.
4. Samalakha (Haryana): This factory was set up in 1993. Located
70kilometres from Delhi, it manufactures weaning cereals, culinary products,
health beverages and milk products. Recently the expansion of manufacturing
capacity for Milkmaid Dessert Mixes was undertaken at this factory as this
new and unique product category is viewed to have great potential in the
future.
5. Ponda (Goa): This Kit-Kat factory was set up in Goa in 1995 at a cost of Rs.
50 crores. It represented a major step by Nestle towards becoming the
Number 1 Chocolates and Confectionery Company in India.
6. Bicholim (Goa): The construction work at this new factory is progressing
with speed. This factory will soon commence the manufacture of culinary
products, which is a key thrust area for the company and will include latest
technological improvements relating to this category of products.
NEW PRODUCT LAUNCHES
To put all the product launches into perspective, Nestle now has80 products
including various flavours and variants this awesome list of 80 products for
most companies is an overfull palate. Nestle India Ltd. Still have a variety of
new products in the pipelines. It believes in slowly colonizing as much
territory as fast as it can, adapting to native conditions and then work at
“holding off the advancing herds”. Nestle products can be broadly classified
into 5 main ranges –
• Milk Products
• Chocolate and Confectionery
• Beverages
• Culinary
• Food Services

Milk Products
This category which comprises
of condensed milk, baby milk
foods, milk powders, acidified
infant food, and other milk
products, showed a slump in
1996 as sale of milk products fell
from Rs 31.4crores in 1995 to Rs 31.2 crores in the said year. Consumer
offtake remained depressed throughout this year as a consequence of high price
increases necessitated by substantial increases (+50%) in the cost of basic raw
materials (fresh milk), over the past two years.
However, Nestle retained its leadership in the infant food market with Cerelac,
Lactogen and Nestum and even introduced a new flavour of Cerelac - Cerelac
Rice in 1996.

Chocolates and Confectionery

Nestle pursues the objective of
accounting for one in every three
rupees in its sales figures through
chocolates and confectionery. This has
thus been one of the thrust areas in Nestle. Nestle this year widened its range
of flavours in POLO, backed by its tremendous success in the Indian Market
by adding POLO Spearmint to its Portfolio. This new flavour has also received
an encouraging response in the market according to market analysts.
Milky bar also retained its position as the number one white chocolate brand
in India, however it did not record a significant increase in sales as a majority
of Indian tastes still do not accept this flavour.
This year however, was a year of tremendous success for KitKat. This
internationally renowned brand gained a large increase in the Market share in
the past year and Nestle officials are hopeful that this will further increase in
the coming years. However, this Brand along with-it success has brought with
it its share of Controversy as the Union of India has launched a Litigation
against the Kit Kat family pack.
In 1997 Nestle added to its range of confectionery by introducing SPLASH, “A
soft hearted, hard boiled sweet” this is being promoted as a sweet unique to
India and is positioned to a target audience in the age group of 4 to 12 years
and “anyone with a soft heart” is a potential customer. Priced at Rs. 1 for a 7.5-
gram candy splash has been introduced selectively in the South and has been
speculated to repeat Polo’s performance. Nestle’s officials claim that this candy
has the potential to grab a quarter of the 700 crores confectionery market.
The most recent of Nestle affairs with the confectionery market has been the
introduction of Mithai Magic which is “a little Mithai, a little magic “. This
new product was launched in September 1997 ,intime for the Diwali purchases
of sweets . This brand has been positioned somewhere between chocolates and
traditional sweets and the company is employing a push strategy to promote
this brand.

Beverages
This year has been very successful in the
beverages market for Nestle. The sales of
beverages have increased from Rs 323.3
crores in2002 to Rs 398.8 crores in 2003.
Nestles Flagship Nescafe which was
pegged at Rupees 1040per Kilogram before
the launch of Tata Café, met with stiff
competition from Tata Café priced at Rupees 550 per Kg once it was
introduced. Tata café claimed to have garnered a market share of 17% by
December 1996. This forced Nestle to cut prices of Nescafe to Rupees840 per
Kg. However, Nescafe still retains 83% market share in the Rs177 Crores
market for pure instant coffee.
Nestle Sunrise also showed an increase in sales and captured20 % of the Rs 253
crores market in Mixed instant coffee.
This year Nestle also launched MILO, an internationally renowned chocolate
energy drink, and the response for this has been encouraging.
Nestle has also introduced Tasters Choice tea bag pitched against Taj Mahal
tea bags.

Culinary Products
The market in culinary products
had witnessed a high growth
consequent to aggressive pricing
decisions on existing products and
the introduction of a variety of new
products to match the needs of the Indian Housewife. Encouraged by this
success Nestle launched Maggi Macaroni Snack in three flavours – Chicken,
Masala and Tomato. Nestle officials’ say that this would consolidate Maggi’s
position as the number 1 culinary brand in India. The product focuses on
convenience and innovation as its Unique Selling Proposition. This snack has
opened a new segment for the Maggi brands. The brand is positioned as
youthful land is represented by the twists and curls of the macaroni snack. It is
speculated to be introduced in a phase manner nation-wide to be placed in the
7.5 lakh outlets that Maggi noodles sells in.
In the spirit of catering to Indian tastes Maggi introduced Maggi pickles in
five variants benchmarked to give the “ghar ka swad”. Maggi Dosa Mix was
also introduced to offer superior quality and added convenience. Apart from
this Milkmaid Kalakand Mix, a traditional north Indian sweet of premium
quality was added to the milkmaid dessert mixes. Maggi soup also launched
three new variants. Maggi Rassam in particular was noticeable as yet another
attempt to make traditional Indian cooking a little bit easier.

Food Service
Food service items basically deal with the out of home segments, which would
include vending machines. Nestle’s foodservice business is poised for rapid
expansion to meet the growing need for such a reliable, time saving and cost-
effective service in this modern age.
Nestle wants to sell 500 million cups of tea and coffee through its vending
machines in the year 2003. It currently has 3500 vending machines at assorted
locations (both public and private). In 1995Nestle food service did well to vend
40 million cups of Nescafe and Tasters Choice tea. Its 2003 sales were placed
at 59 million cups of Nescafe and 36 million cups of tea, this figure was
however way below the expected sales for the year.
Nestle’s Target Audience
Nestle India has positioned its wide range of product offerings in such a way
that it covers audiences beginning from 2-year-olds to working-class
professionals.

A Demographics-wise Breakdown of Nestle’s Offerings

Demographics Products

Kids Ceregrow, Koko Krunch, Lactogrow

Working Professionals and above Nescafe, Sunrise, Protein Products

General Audience KitKat, Maggi, Milkmaid

Nescafe has been a hit among the working professionals as Nestle has
promised Nescafe to be the coffee that would keep them fresh throughout the
day and who would not want to be fresh?
Parents have been tempted to feed their little ones with ‘Ceregrow’, a product
from Nestle which contains cereals to keep young children healthy. It also has
ever-popular products such as Maggi, KitKat, Milkmaid which are targeted
towards the general audience.
This is how Nestle has designed its targeting strategy in India and let’s now
understand what it has done to market itself and its offerings in the coming
section.
Nestle’s Digital Marketing Strategies
By now, you are aware of the fact that Nestle is the world’s largest food and
beverage company by revenue. This might also come as very basic information
for you.
But what if I tell you that Nestle has always been one step ahead when it
comes to its marketing policies and tactics. It has always worked on the most
up-to-date marketing methods be it offline or digital marketing strategies,
which matter the most in today’s day and age.

Nestle’s Social Media Marketing Strategy

Nestle India is active on all three major social media platforms like Instagram,
Facebook, and Twitter. Here’s an overview of the same.

Nestle Social Media Overview

Facebook Twitter Instagram

About 11 Million people

It enjoys about 23.3K Nestle has about 21K
like Nestle’s Facebook
followers on Instagram followers on Instagram
Page

Facebook and Instagram

Nestle India has designed its Facebook and Instagram profiles moreover the
same. It shares posts related to what Nestle India is currently up to. It also
announces its new launches, talks about its corporate social responsibility
(CSR) measures, etc.
It maintains separate pages for its brands such as Maggi, Kit Kat, Nescafe,
Koko Krunch, etc. which also have an insane number of followers on both
Instagram and Facebook.

Nestle’s Facebook Pages

To put it in a gist, Maggi has around 16 million followers. Nescafe has 36

million followers and Kit Kat has about 11 million followers on Facebook.

Nestle’s Instagram Pages

On Instagram, Maggi has around 53K followers. Nescafe has 30K followers
and KitKat has about 1 million followers.
Having separate social media profiles for its various brands, helps them
organize marketing campaigns effectively and thus resulting in a strong brand
connection with its customers.

Nestle on Twitter
Nestle India has been maintaining its Twitter profile as a medium of
communication between the company and its audience. It also solves queries
related to its products by replying to every comment and mentions done by
the general public on the platform.
 Nestle’s Twitter handles

Just like Facebook and Instagram, Nestle on Twitter too has maintained
separate profiles for its various brands. This helps them promote their
products effectively.

Nestle on YouTube

Nestle India’s YouTube channel has about 95K subscribers. On this platform,
they post all the advertisements of their brands. However, Nestle maintains
the same strategy of maintaining a separate profile for its various brands.

Nestle’s YouTube Channels

Now that you have a complete overview of Nestle’s social media presence.
Let’s have a look at some of the campaigns rolled out by Nestle’s brands and
along with a few creatives under their marketing campaigns which have helped
them to maintain the attention of Indian consumers.
Marketing Campaigns of Nestle
Nestle has rolled out several campaigns all these years but here are the few
marketing campaigns that have left a lasting impression on the Indian
audience.

1. A Campaign for the Youth: Karne Se Hee Hona Hai

The Covid-19 pandemic has changed a lot of things for everyone, especially
the millennials who were accustomed to doing certain things in a certain way.
This campaign by Nescafe was launched in July 2020 as India was preparing to
come out of its series of lockdowns and begin life in the “new normal”.

Nescafe, in the above advertisement, encouraged the youth of the country to

dream, act, and achieve their life goals.
And in the process, Nestle also highlighted to millennials that “It all starts with
a Nescafe”. Thus, promoting Nescafe and once again establishing that Nescafe
plays a vital role in keeping the youth alive and fresh.

2. A Caring Campaign: Poora Poshan Poori Tasalli

Poora Poshan Poori Tasalli: This campaign was initiated by Nestle Ceregrow
in 2019 targeting urban couples who had children between the age of 2-5
years.
In a country like India where parents pay a lot of attention to their child’s
health and proper nourishment right away from the child’s birth.
Nestle very smartly portrayed how Indian mothers are worried about their
child’s proper nourishment. The brand showcased its product and
communicated that Ceregrow not only fulfils the child’s hunger but also
provides the right kind of nutrients for the child’s immunity and overall
development and nourishment.
You can watch this short 45-second video by Nestle Ceregrow which delivers
the message beautifully and convinces the urban parents why Ceregrow is a
must-have for their growing toddler.

3. A Campaign for Maggi lovers: Meri Maggi

Meri Maggi has been one of the most successful mass campaigns led by any
brand in India. The Meri Maggi campaign started with the motive to promote
Maggi as a snack.
In this campaign, Nestle also encouraged its consumers to personalize Maggi
as per their wants and taste and share it on social media pages to get featured
on Maggi’s official Facebook page.

Nestle started posting pictures of Maggi with different captions to make it

relatable for different sets of audiences. Be it a Pyjama Party or a Break after
Long Lectures in the college, Maggi made sure it relates to everyone and at
the same time creating a strong brand engagement.
It did not stop here! Maggi then asked its followers to write back to them
about their “Meri Maggi” and people started sharing their versions of Maggi
and when they would have it. What’s your version of “Meri Maggi”?
Watch the Meri Maggi Ad campaign here,

This is how Nestle India strategically uses its social media as a tool for its
marketing and campaign-related activities. Let us now examine how it is doing
on its website in the next section.

Nestle’s Website Overview

Nestle has a very strong website presence compared to its competitors. It has
separate websites for its brands as well which helps Nestle to rank itself better
on Google Search.
In today’s world where brands are working on spreading awareness via social
media, Nestle has gone one step ahead and made its audience visit its websites
by releasing various campaigns.

Ask Nestle Campaign

In this campaign, Nestle India introduced a digital tool, NINA (Nestlé India
Nutrition Assistant) on AskNestle.in which uses artificial intelligence to
provide real-time nutritional information on the foods we intake. This helped
Indian parents to create a nutritious custom meal plan for their children below
12 years of age.
AskNestle’s NINA was dubbed as India’s first artificially intelligent assistant
that allows you to find nutritional information for children. So this is how
Nestle India played its cards on digital fronts to drive organic website traffic
growth and better overall engagement compared to its competitors.
With this our Nestle Case study comes to an end, Let’s now conclude the case
study in the final section.
Advertising Strategy
Nestle, a cash rich company has plenty of marketing prowess. This can be
credited to a strong and sound advertising strategy.
Nestle in the year 2002 had an advertisement spending of Rs43.3 crores (net).
Tracing Nestles advertising responses the ad campaign by HTA of ‘Hot and
Sweet’ was a runway success this ad was actually meant to fend off a challenge
from H.J Heinz. The Maggi ranges of sauces were introduced in 1985 but sales
didn’t catch up until 1990 but till 2003 it got considerable market share. At
this point the popular and memorable campaign of Javed Jaffrey and Pankaj
Kapoor was launched by Producer Pralad Kakkar. This commercial was an
instant success. The volume of sales kept rising from an initial growth of 13%
to 20% in the next year. Today the sales figure for Maggi Sauces is growing at
a steady 6% per year.
Another noteworthy campaign was that of POLO (the mint with a hole),
devised by Mudra advertising agency. This campaign was awarded 11 industry
ad awards.
In 2002 the advertisement budget has been approximately Rs56 crores where
again innovation was the main focus. The new nation-wide product launch of
Maggi Macaroni Snack and Mithai Magic have been designed by Mudra. The
Macaroni ad with its use of “English “and a catchy beat (which is the latest
trend amongst the Indian Advertisers) appeals well to the target audience and
the Mithai Magi commercial does keep the secret of the contents in the box,
intact.
Recruitment Policy
Recruitment of fresh management trainees and sales officers is done every
April-May. These graduates are generally selected from the best institutes in
the country through a series of interviews. They are then put through a
probation period of 12-18 months. Although Nestle does not offer some of the
highest pay packets in the industry, it is considered a growth oriented
company.

Training and Development

Continuous development of skills and attitudes of employees is critical to the
achievement of excellence. At Nestle therefore training and development of
human resources is viewed as a long-term investment.
“If you are planning for one year, Plant wheat;
If you are planning for ten years, plant a tree;
If you are planning for life, train people.”
- Old Chinese proverb
This proverb goes with the organizations most enduring beliefs worldwide –
• That long term planning is the key to Nestles global success
• That Nestle’s most valuable assets are its people
• Nestle’s policy is to rely on a more decentralized form of management
by building in the habit to “Think Nestle”.
At Nestle India training and development is an integral part of the business
plan and strategy in line with the objectives for the year 2003 and aims to –
• Help employees to retain long term perspective and integrate them fully
with the company’s business goals
• View the growth of both the personnel and the company as a continuous
process.
• Concentrate on attitudinal changes by developing leadership skills, an
appreciation of interdependence between units and the enhancement of a
sense of belonging to Nestle.
In 2003 Nestle India benefited greatly from the training program offered at
the Rive Reine International Training Centre at Vevey, Switzerland. This
training program helped facilitate the transfer of common Knowledge
(technical, marketing, and finance) across the Nestle Group and ensure
interdisciplinary approach to learning and uniform progress with a tailor-made
approach for all.
Company Training needs –
• Analysis of training needs of Managers
• Self-development programs for staff at HO
• Programs for company orientation and information sharing
• Programs aimed at computer training and computerization
• Establishment of contact with leading management institutes with a
view to use the same for meeting local training requirements
Sustainability Throughout Nestlé
1. Promoting nutrition and health
For the second time running, Nestlé achieved first place in the global Access to
Nutrition Index (ATNI).

2. Climate action
They have put peak carbon behind them and aim to halve greenhouse gas
emissions by 2030.

3. Waste reduction
Their ambition is a future where none of their packaging ends up in landfill or
as litter.

4. Protecting nature
They will achieve and maintain 100% deforestation-free primary supply chains
by 2022 for meat, palm oil, pulp and paper, soya and sugar, and by 2025 for
coffee and cocoa.

5. Water stewardship
Nestlé Waters will advance the regeneration of the water cycle to help create a
positive water impact everywhere our waters business operates by 2025.

6. Human rights
By 2022 year-end, they will publicly launch action plans for each of their 10
salient issues in their Human Rights Framework and Roadmap and report
their progress against them by 2025.

7. Sustainably sourced raw materials

They aim for 100% of key raw material volumes to be produced sustainably by
2030.
 8. Taking care of people and communities
People must be at the heart of the transition to regenerative food systems.
They respect and encourage all their employees and value their potential, at
the same time they are working to boost the well-being of communities and
enabling a just transition to regenerative practices.

9. Ethical and responsible business practices

They continue working to generate trust as an ethical and sustainable
business: to inspire industry, collaborate with their peers and encourage
consumers to make changes that all help in the shift toward more regenerative
food systems.

10. Performance and reporting

Transparent, public reporting on our activities, commitments and performance
is embedded
SWOT ANALYSIS OF NESTLE:
Nestle’s Strengths
1. Largest Food Company – With a market capitalization of $325 Billion,
Nestle has been one of the largest food companies in the world with the sales
of its Hot Pockets, Stouffer’s, DiGiorno, and Nespresso etc.
2. Reputed brand name – Nestle is the most renowned brand in the world.
It has developed a respected reputation in the food and beverages sector
offering high-quality products for everyday use across the globe.
3. Brand valuation – In 2021, with a brand value of $10.6 Billion, Nestle is
well positioned for growth.
4. Globally recognized brand – Through its effective advertising and
branding strategies, it has created significant awareness and developed a
successful brand image around the world. According to the Fortune Global
500, Nestle is among the world’s largest corporations and is ranked at 69th
position in 2018 list.
5. Highly diversified company – Nestle sells its products in 189 countries
Instead of relying on a few markets, it has captured the sizeable market in a lot
of developed and developing countries to earn most of its revenue. Its leading
markets include the US, China, France, and Brazil. In 2020, its sales increased
by 30% and had to increase production in nearly 70 factories to meet the
demand.
6. World’s most valuable brand – According to Forbes Global, Nestle is
among the top as the world’s most valuable company in regards to highest
revenue, profits, assets, and market value. In 2020, Nestle is ranked the 50th
most valuable brand in the world.
7. Extensive product portfolio – Nestle owns more than 2000 brands
globally and renovated over 8000 products for nutrition and health
considerations, according to its Annual Review 2017. It is one of the worlds’
biggest companies with the broadest product portfolio. In 2020, Nestle owns
some of the companies offering pet food, frozen foods, baby food, vitamins, and
many more. It also has a big Starbucks licensing deal.
8. Well-established relationships and popular brands – Nestle has some of
the world’s most recognized brands under its name such as Nescafe, Besides, it
has well-established relationships with other trusted and powerful brands like
Colgate Palmolive, Coca Cola, General Mills, and L’Oréal.
9. Efficient R&D system – Nestle has the world’s largest food and
nutrition research organization with 21 R&D centers Its research and
development capability are one of its key competitive advantages. There are
more than 5000 employees involved in R&D operations. It spent nearly 1.72
billion Swiss Franc on R&D in 2017. Nestle expanded its operations in the
Greater China Region to 3 R&D centers and 4 product innovation centers in
2020.
10. Environmental sustainability practices – Nestle puts substantial efforts
in environmental sustainability practices and take innovative initiatives in
improving its quality of products. It optimizes advanced solutions to reduce
waste, water usage, non-renewable energy use, and packaging material usage.
In 2017, 253 of Nestle factories reached zero waste production. The company
announced in January 2020 that it will invest $2.1 billion to tackle plastic
waste and aims to shift from virgin plastics to sustainable packaging.
11. Large distribution system – Nestle owns an extensive and diversified
distribution system that is not only penetrated in urban areas but also rural
regions. It has adapted local distribution methods and decentralized approach
to run the business efficiently in respective countries. Nestle has strong
relationships with suppliers, retailers, vendors, and distributors.
Nestle’s Weaknesses
1. Price fluctuations by retail giants – Nestlé’s grocery sales are achieved
majorly through huge retail giants like Walmart, Tesco, and Kroger. Any
reduction or increase in prices by these retailers can affect Nestlé’s sales.
2. Span of control and organizational structure – Nestlé is organized in a
matrix structure. That means a large number of brands are under the same
umbrella group which makes it somewhat challenging to manage the large
Administrating such a large number of individual brands can often result in
discord and conflict of interest.
3. Water controversy – Recently, Nestle was accused of illegally pumping
millions of litres of water in 6 nations where residents are deprived of drinking
water.
4. Social criticisms – Nestle has become a target of media attention many
times. The claim to privatize water, misleading labelling, and a lawsuit for
chocolate making using child and slave labour are some of the examples that
have to weaken its market reputation.
5. Maggi Noodles controversy – In 2017, Nestle failed to clear a laboratory
test in India. This created a publicity hype as people boycotted Nestle, leading
to the loss of 80% of market share in the country. Nestle claimed ‘No added
MSG’ in the Noodles packets. However, 1000 times more lead was found in the
product after testing.
6. Racially Insensitive Product Names – Nestle has been criticized for
perpetuating racism using racially insensitive names on its products. In
Australia, Nestle has been under pressure to stop advancing racism with its
sweets named Red Skins and Chicos and recently announced that it will
change the name of two confectionery products.
7. Unhealthy Products – Nestle’s history consists of a long list of products
that threatened life consumers, such as China Milk Scandal and tainted cookie
dough. Consumers distrust companies that have sold unhealthy products in the
past.
Nestle’s Opportunities
1. Venturing small food start-ups – Nestle has a fantastic opportunity to
grow the number of small food start-ups under its popular brand name. Nestle
can also collaborate with the new start-ups to promote its brand name.
2. Online shopping – Nestle has a remarkable opportunity to boost its e-
commerce sites and online shopping platform. A very few CPGs are offering
online services to make the shopping experience more comfortable and
pleasant. Although Nestle has its online stores in a few countries, expanding
its online services to more areas will prove a rewarding decision for the
company.
3. Market penetration for breakfast cereals – Nestlé’s cereals and oats
market have shown fast growth in recent years. Thus, pretending this market
more would be highly lucrative for the company.
4. Expanding ready-to-drink tea and coffee market – The demand for tea
and coffee is continuously on the rise, rendering a profitable opportunity for
Nestle to groom this market more.
5. Partnerships – Strategic alliances with other food and beverage giants
are also a great opportunity for the company to increase its revenues and
profits.
6. Authentic labeling – Nestle has already been criticized for giving
misleading nutritional information on its labels. So, there’s an opportunity to
improve its practices by giving trustworthy information and accurately
labeling its products.
7. Expand through Acquisitions – In 2019, Nestle offloaded several low-
performing brands like Herta Charcuterie and is switching to acquisitions in
2020. The company’s acquisition of gastrointestinal medication brand Zenpep
was completed in January 2020 and it is the first of many more acquisitions
slotted for 2020. Expanding portfolio with high performing SMB acquisitions
offers immense opportunities for Nestle to grow.
8. Refocus on Profitable Ventures – Having too many brands can stretch a
company’s resources to the limit and undermine overall performance. Nestle
has been grappling under the weight of too many unprofitable brands and is
seeking to sell its North American water brands like Pure Life and shift focus
on strengthening the best and highly profitable brands in its portfolio.
Nestle’s Threats
1. Illegal rainforest destruction controversy – In 2017, Nestle was alleged
of involvement in the destruction of Sumatra’s last tract of rainforest. It faced
severe criticisms from NGOs and environmentalists in this regard.
2. Water scarcity – Nestlé’s production is highly dependent on water
usage. Accessing the clean water through less costly sources has become
difficult for the company due to many reasons. These include increasing
population, climate change, growing demand for food and water, increasing
pollution, water wastage, and overexploitation of resources.
3. Rising competition – Many CPG companies like Mondelez and Unilever
offer similar food and beverage products. It is hard for Nestle to compete in
such a situation where the substitute products are easily accessible.
4. Government regulations and prices – Government regulations can affect
the business operations of Nestle. Additionally, the increasing prices of
commodities force the company to increase the prices of its products. It will
lead to sales reduction as consumers can switch to other brands which are
available at low costs.
5. Economic Uncertainty – Even though Nestlé’s sales increased by 4.3%
and e-commerce jumped to over 10% of total sales in Q1 of 2020, the increase
is attributed to panic buying catalyzed by recent events. The company’s
revenue from commercial businesses like hotels and restaurants are threatened
by economic uncertainty in the global markets and can decrease as these
entities remain closed or collapse due to the crisis.
6. Haunting Dark Past – The US Supreme Court is reviewing whether to
open human rights probe against Nestle subsidiary for knowingly helping to
perpetuate slavery in cocoa farms in the African nation of Ivory Coast. Even
though the events occurred over a century ago, Nestlé’s racist past can haunt
the company and affect its sales, profitability, and growth for years to come.
in how they do business at Nestlé.
OVERVIEW
Although Nestle has been associated with India since the beginning of the
century through the importing and trading of infant food and condensed milk,
manufacturing in India only began with the setting up of the factory in Moga
in 1962. The first product to be manufactured was Milkmaid. In the last 35
years the company has shown rapid progress and has increased its product
range to 80 products as of October 1997. Nestle India Ltd. Now rank 22 nd
amongst India’s most valuable companies (Annexure B). Its gross revenue has
increased from Rs. 1001.1 crores to Rs. 1213.8 crores in1996. This remarkable
growth has been achieved through:
• Rapidly creating greater manufacturing capacity, both at factories as
well as with copackers.
• Taking measures to ensure availability and improved quality of key raw
materials-fresh milk in particular.
• Strengthening of the sales and distribution network (particularly in
smaller towns).
• Ambitious and cohesive manpower training and development programs
for the personnel of the company across all disciplines.
The company’s exports also resulted in a very successful year in this area as
exports grew by 27% to Rs. 250.8 crores in 1996. The main contributors to
this increase were the export of tea and coffee to USA, Japan, Russia, Hungary
and Taiwan. Nestle India Ltd. Wants to further increase its operations in India
and has started construction of its sixth Factory at Bicholim, Goa for the
manufacture of culinary products (a key thrust area) for this purpose.
Conclusion
The research on Nestle company in this Business Communication report has
definitely benefited me in knowledge. Nestle is the largest company which is in
the world’s leading food manufacturer and the market leader in both coffee and
mineral water, products including prepared dishes and cooking aids milk-based
products, cereal, instant coffee and baby food. Nestle is a market leader due to
different reasons. Its price is high against its competitors but if matches its
quality with its competitors. Its packing is good. It has always maintained the
quality of its products. We can easily find nestle from any retailer shop. Due to
advertisement, nestle attract more customers. Nestle is using its brand name
to promote its products and it is very popular as compared to its competitors.
References:
www.studymode.com
www.nestle.com
https://en.m.wikipedia.org
https://bstrategyhub.com/nestle