1. NESTLE
Strategic Management
Presented to:
PARAKHIYA VASANT

2. INTRODUCTION
Nestlé is a
Swiss company,
founded in 1866
by Henri Nestle.

3. Brands of Nestle…

4. Did you know …
 Nestlé markets its products in 130
countries across the world
 Nestlé manufactures around 10000
different products and employs some
250000 people
 Nestlé sells over a billion products
everyday

5. People, products,
brands
What makes Nestlé the
world’s largest food
company
are the millions of
consumers across the
globe who
put their trust in its
products, bite after
bite, sip after
sip, day after day.

6. Nestle India
 a subsidiary of Nestle S.A. of Switzerland
 Incepted in 1962
 manufactures a variety of food products such
as infant food, milk
products, beverages, prepared dishes & cooking
aids, and chocolates & confectionary
 Presently the world's largest and most
diversified food company

7. VISION
 Being the best in everything they
touch & handle

8. MISSION
 Continuously excel to achieve and maintain
leadership position in the chosen businesses;
and delight all stakeholders by making economic
value additions in all corporate functions

9. Competitive advantages
 A pool of qualified suppliers that understand and support
Nestlé’s commitment to excellence.
 A pool of qualified suppliers that are directly aligned with
underrepresented and emerging communities and can
promote positive relationships with our customers
 Better quality goods and services at a lower price as a
result of increased competition and an extended supply
base
 Access to new capabilities and innovations
 A competitive advantage as we seek government
contracts, and assurance that we are in compliance
with the diversity expectations of our public sector
contracts.

10. Major Competitors
AMUL
CADBURY
BRU

11. The Internal Assessment

13. Nestlé describes itself as a food, nutrition,
health, and wellness company.
Recently they created Nestlé Nutrition, a
global business organization designed to
strengthen the focus on their core nutrition
business.
They believe strengthening their leadership
in this market is the key element of their
corporate strategy.

14. In order to reinforce their competitive
advantage in this area, Nestlé created
Nestlé Nutrition as an autonomous global
business unit within the organization, and
charged it with the operational and profit
and loss responsibility for the claim-based
business of Infant Nutrition, HealthCare
Nutrition, and Performance Nutrition.

15. The Corporate Wellness Unit was
designed to integrate nutritional value-
added in their food and beverage
businesses.
This unit is responsible for coordinating
horizontal, cross-business projects that
address current customer concerns as well
as anticipating future consumer trends.

16. Nestlé’s competitive strategies
are associated mainly with foreign direct
investment in dairy and other food
businesses. Nestlé aims to balance sales
between low risk but low growth countries
of the developed world and high risk and
potentially high growth markets of Africa
and Latin America.

17. When operating in a developed market,
Nestlé strives to grow and gain economies
of scale through foreign direct investment in
big companies.
In the developing markets, Nestlé grows by
manipulating ingredients or processing
technology for local conditions, and employ
the appropriate brand.

18. Another strategy that has been successful
for Nestlé involves striking strategic
partnerships with other large companies. In
the early 1990s, Nestlé entered into an
alliance with Coca Cola in ready-to-drink
teas and coffees in order to benefit from
Coca Cola’s worldwide bottling system and
expertise in prepared beverages.

19. In Asia, Nestlé’s strategy has
been to acquire local companies in order to
form a group of autonomous regional
managers who know more about the culture
of the local markets than Americans or
Europeans.
Nestlé’s strong cash flow and comfortable
debt-equity ratio leave it with ample muscle
for takeovers.

20. Marketing
 Target Market  Male and Female;
 Have many brands and products to meat the
taste of each type of consumers.
 Have high allocation of advertising budget for
endorser contract, TVC, print ads, and
sponsorship activities.
 Have top endorsers who have a good image in
the soap industry.

21. Distribution
 Nestle has worldwide distribution line
 Nestle has good distribution line to retailer
 Nestle has new ordering system, named Futures
Ordering Program

23. STRENGTHS
 strong support from its parent company
 the world’s largest processed food and beverage
company
 a presence in almost every country
 strong brands like Nescafe, Maggi and Cerelac
 continuously introducing new products for its
Indian patrons on a frequent basis, thus
expanding its product offerings

24. WEAKNESSES
 complex supply chain management

25. OPPORTUNITIES
 Expansion- potential to expand to
smaller towns and other geographies
 Product offerings- The company has
the option to expand its product folio by
introducing more brands
 Global hub- Cheaper manufacturing
facility at India than in other parts of the
world

26.  Competition- immense competition from the
organized as well as the unorganized sectors
 Changing consumer trends- increased
consumer spending on consumer durables
resulting in lower spending on FMCG products
 Sectored woes- Rising prices of raw materials
and fuels, and interns, increasing packaging and
manufacturing costs

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