A

PROJECT REPORT
ON NESTLE

FOR THE PARTIAL FULLFILLMENT OF MASTER OF BUSINESS

ADMINISTRATION

SAVITRIBAI PHULE PUNE UNIVERSITY DEPARTMENT ON MANAGEMENT

STUDIES (MBA)

SUBMITTED BY:
CHOUBEY ABHAY KAILASH
241359
241302 ADHAV GAURI RAJENDRA

PARASKAR ABHAY SHRIKRUSHNA

241303 241410 AWHALE ISHWARI ANIL

241317 SAWANT PRANJALI BALU

241414 PEDGAONKAR JIGISHA SANTOSHRAO

241322 AKSHAY VIJAY MHALASKAR

241425 KHUSHBOO BISEN

241348 KUMBHAR DARSHANA DATTATRAY

241434 LOKHANDE NISHA DATTATRAY

ASM’s Institute of Business Management and

Research
Savitribai Phule Pune University
PUNE, Maharashtra
2024-2025
DECLARATION

I hereby declare that the project work entitled

“NESTLE” is an authentic work carried out by
we for a practical fulfilment of the degree of
MBA and this has not been submitted anywhere
else for the award of any degree.

NAME OF STUDENT:

1. CHOUBEY ABHAY KAILASH

2. PARASKAR ABHAY SHRIKRUSHNA
3. SAWANT PRANJALI BALU
4. AKSHAY VIJAY MHALASKAR
5. KUMBHAR DARSHANA DATTATRAY
6. ADHAV GAURI RAJENDRA
7. AWHALE ISHWARI ANIL
8. PEDGAONKAR JIGISHA SANTOSHRAO
9. KHUSHBOO BISEN
10. LOKHANDE NISHA DATTATRAY
 INDEX
Sr. No. Particulars Page No.

1. Executive Summary 1

2. Introduction 2

3. Objective 4

4. Research Methodology 5

5. Company Profile 6

6. SWOT Analysis 26

7. Overview 31

8. Conclusion 32

9. References 33
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.

1
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.

2
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

3
 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.

4
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.

5
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.

6
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.

7
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”

8
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 exportoriented 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.

[Link] (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.

[Link] (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.
[Link] (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.

9
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.

10
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 7.5gram 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.

11
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.

12
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 costeffective 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.

13
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.

14
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

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

15
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.

16
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.

17
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.

18
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.

19
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.

20
Ask Nestle Campaign

In this campaign, Nestle India introduced a digital tool, NINA (Nestlé India
Nutrition Assistant) on [Link] 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.

21
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.

22
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

23
 • 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.

24
 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

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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

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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.

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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
ecommerce 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.

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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
lowperforming 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

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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.

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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 22nd 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.

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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.

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References:
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