About History

Porter’s
Products 5
NESTLE Forces

Recent
News
CSR

References

Business Interaction Committee NITIE MUMBAI

ABOUT
• Nestlé is the one of the largest food and beverage company
globally.
• It operates in 189 nations across the globe and has more than
2000 brands which range from global icons to local favorites.
• Headquarter: Vevey, Switzerland
• Nestlé India head office: Gurgaon, Haryana
• Chairman of the Board of Directors: Suresh Narayanan
• CEO of Nestle: Mark Schneider

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ABOUT
CEO Headquarters –
Mark Schneid Vevey, Switzerland
Founder
Henri Nestlé
Competitors

Mondelez, MARS,
Revenue - $91.43
Kraft Foods, Danone,
billion &
Hershey’s, Heinz,
Net Income - $ 10.46
Unilever, General
billion
Mills.

Market Capitalization Global Presence

$346 Billion ~189 countries

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ABOUT
Nestle has defined three overarching ambitions for 2030 which guide their work and support the
achievement of the UN Sustainable Development Goals.
Ambition 1. Help 50 million children live healthier lives, 2. Help to improve 30 million livelihoods in
communities directly connected to our business activities, 3. Strive for zero environmental impact in
our operations

Nestlé's purpose is enhancing quality of life and contributing to a healthier future. We

want to help shape a better and healthier world. We also want to inspire people to live
Purpose healthier lives. This is how we contribute to society while ensuring the long-term success
of our company.

Nestle’s values are reflected in the way they do business, always acting legally and honestly
Values with respect both for their own people and those they do business with.

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HISTORY
Year of Establishment
1866, Vevey,
Switzerland
Mergers & Acquisitions
• 2009 Vitality Beverage business
• 2010 Nestle Acquire Kraft Pizza
• 2017- Nestlé S.A. acquired a majority stake of Blue
Bottle.
• 2017- Nestlé USA agreed to acquire Sweet Earth, a
California-based producer of plant-based foods, for
an undisclosed sum
• 2018- Nestlé USA announced it is selling its US
confectionary business to Ferrero, an Italian
chocolate and candy maker
• 2018- it was announced that Nestlé and Starbucks
struck a $7.15 billion distribution deal
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Milestones
• 2013 - Pamlab
• 2014 - Creation of Nestlé Skin Health
• 2015 - Global launch of Cailler as first super-premium chocolate
brand
• 2016 - Nestlé celebrates its 150 years, Froneri (joint venture with
R&R)
• 2017 - Chameleon Cold-Brew coffee, Blue Bottle Coffee
• 2018 - Atrium Innovations, Terrafertil, Nestlé and Starbucks close
deal for perpetual global license of Starbucks Consumer Packaged
Goods & Foodservice products, Nestlé & The Coca-Cola Company
end BPW joint venture
• 2019 - Inauguration of the Nestlé Institute of Packaging Sciences,
Sale of 60% stake of Herta and creation of a joint venture with
Casa Tarradellas, Strategic move to create global leader in ice
cream
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Nestle Strategy-After Maggi fiasco
Maggi noodles earned close to 30% of Nestle India’s total sales in 2014 and 80%
share of India’s noodles market, Maggi went down to zero in just a month.

Nestle shaped up as a three-year strategy to follow in India-

• Enter new categories, build a balanced portfolio to reduce dependence on a single product,
focus on health and nutrition, increase penetration in top towns, beef up advertising, and
communicate much more with the consumers directly

Nestle decided not to play the volume game anymore . It is set to enter new
product categories. These are: Nespresso (a coffee machine), Dolce Gusto (a
coffee capsule system), pet care, healthcare and skincare

Unlike Maggi noodles, it won’t be a volume game anymore. The Swiss company wants to
quickly leverage India’s rapid urbanization, tap the educated middle class and working
women, as well as benefit from rising health awareness. All this, with an eye on
maintaining profitability.

It developed more of its new products based on local consumer insights, unlike
earlier when more than 60% of its products had significant global interventions
PRODUCT MIX
Dairy • Milkmaid, Everyday, Grekyo, A+ dahi

Infant Nutrition • Cerelac, Lactogen, Nestum

Chocolate • Kitkat, Munch, Alipino, BarOne, Milkybar

Confectionary • Eclairs, POLO

Culinary • Maggi – Noodles, Chicken noodles, Pasta, Oats, Sauce, Ketchup

Beverages • Nescafe, Nescafe Sunrise, Nestea, Nescafe RTD, MILO, Nesquick

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NESTLE Value Chain
Agriculture & Environment,
Products &
Rural Manufacturing
Consumers
Development & People

Expertise & support Providing R&D and Investing in local Building brands Increasing value &
for farmers expertise for suppliers manufacturing plants through responsible volume sales
marketing
Improving Achieving
Securing Supplies Lowering
Value for of high quality raw
community
manufacturing &
Entering new & competitive
Nestle relationships & emerging markets shareholder
material distribution cost
product quality returns

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Widening access to
Value for Reducing Generating local
Improved yields & Creating jobs in nutritional
consumption of investment &
Society increased incomes local communities products that
natural resources economic growth
customers prefer
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Porter’s 5 Forces
THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTE GOODS
Nestle has been the leader of market for a century As the product is very common and daily use
almost so now it has become a very big challenge for product so the threat of substitutes is very high
the new entrants to not only work over their quality here. So Nestle has to innovate its products
but they also have to cut the share of Nestle to tremendously to stay in the market and to work
survive efficiently for removing the threat of substitutes.
COMPETITIVE RIVALRY
Nestle has a very strong position in the food processing industry but few
major rivals do exist in the industry like Kraft Foods and Groupe Danone.
Competition is violent in the food processing industry, and this is a plus point
for consumers.
BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF CUSTOMERS
Although a lot of substitute products and
Nestle is known for strong relations with the
competitors Nestle customers have very influential
suppliers around the globe due to its immense
choices but still the quality that has been
buying power. It cares of its suppliers which I return
maintained by Nestle has made it very successful
pays them off in the form of quality products.
among the users.

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RECENT NEWS
Nestle India Q1 profit rises 11% to Rs 486.60 cr; net sales up 1.96%
https://www.business-standard.com/article/companies/nestle-india-q1-profit-rises-11-to-rs-486-60-cr-net-sales-up-1-96-
120072801411_1.html

Nestlé to acquire Aimmune Therapeutics

https://www.nestle.com/media/pressreleases/allpressreleases/nestle-to-acquire-aimmune-therapeutics

Nestlé increases transparency through public breastmilk substitutes marketing practices reporting
https://www.nestle.com/media/news/nestle-transparency-improved-breastmilk-substitutes-marketing-practices-reporting

Nestlé enters market for plant-based seafood alternatives

https://www.nestle.com/media/news/plant-based-seafood-alternatives-vegan-tuna

Nestlé Health Science agrees to acquire IM HealthScience

https://www.nestle.com/media/news/nestle-health-science-to-acquire-im-healthscience

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CSR ACTIVITIES
Corporate Social Responsibility (CSR) Policy
Nestlé India Limited (the ‘Company’) is a leading Nutrition, Health and Wellness Company. As a responsible Company, it has
since its inception, participated in business activities which help in improving the quality of life for the communities where it
operates. This also includes creating better livelihood opportunities. In consultation with stakeholders, the Company has
decided to focus its activities on the following areas, where it is in a position to create maximum value. These focus areas are:

• Nutrition: A large part of our population is impacted by the double burden of malnutrition. Improving nutrition awareness of
communities is a focus area.
• Water and Sanitation: India is among the world’s most water stressed regions. Additionally, safe drinking water is a concern in
many parts of the country. The Company would focus on helping farmers reduce water usage in agriculture, raising awareness
on water conservation and providing access to water and sanitation.
• Rural Development: Supporting the sustainable development of farmers will be the third focus area.
• Livelihood: Unemployment is a major issue impacting development and health outcomes. The Company would focus on
livelihood enhancement through trainings.
• Education: The Company would focus on supporting education, with a special focus on education for the girl child.

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References
• https://www.nestle.in/csv
• https://www.nestle.com/
media/news

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 Thank You !

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