CERTIFICATE BY THE GUIDE

This is to certify that the contents of this report entitled “NESTLE INDIA LIMITED” submitted to
K. V. Pendharkar College for the Award of Bachelor Of Management Studies (BMS Sem-V) is
original research work carried out by him under my supervision. This report has not been submitted
either partly or fully to any other University or Institute for award of any degree or diploma.

SHUBHAM
SINGH (16-8822)

Professor & Head,

K. V. Pendharkar College,
Mumbai University.

Dombivli.

Date:

Place: Dombivli
 CANDIDATE’S STATEMENT

I hereby declare that the work incorporated in this report entitled “NESTLE INDIA LIMITED” in
partial fulfilment of the requirements for the award of Bachelor of Management Studies (Sem.-V) is
the outcome of original study undertaken by me and it has not been submitted earlier to any other
University or Institution for the award of any Degree or Diploma.

Name Exam No. Sign…

SHUBHAM
SINGH (16-8822)

Date:

Place: Dombivli
 PREFACE

As a part of the BMS curriculum and in order to gain practical knowledge in the field of
management, I was required to make a report on any management related topic.

One can deny for the importance of the practical exposure of the problem for its better
understanding and better grip of coming out with an industrially acceptable solution.

The basic objective behind doing this report is to gain the knowledge about the Attitude &
perception of mobile marketing among youngsters and to interpret its various implications.
We have selected this topic.

Now a day, management is an art, which we should learn by heart, and we believe that art by
studying it practically rather than reading the books. Management is must for every company,
every organization, not only this but also it is must for every person.

The Bachelor Of Management Studies is a professional course, which develops a new level
of knowledge & skills and sets & prepares those seeking challenging carriers in the new era
of Liberalization, and Globalization. BMS Programme imparts the knowledge of concept &
application skills of management.

In BMS Semester-V, we are required to prepare a report on to fulfil this requirement of the
syllabus; I have prepared a report on “NESTLE INDIA LIMITED”
 ACKNOWLEDGEMENT

Knowledge is itself a continuous process. But at this moment of our substantial enhancement
we find no words to express my gratitude to those who had helped me directly or indirectly in
making this report a success. We are indebted and thankful for the assistance received from
various individuals.

It is indeed of great moment to pleasure to express our sense of per found gratitude and
ineptness to all the people who have been instrumental in making our learning a rich
experience. I got the opportunity to do a challenging project. The project is the important part
of our study and gives us a practical exposure to management research its implementation
and it is almost impossible to do the same without the guidance of people in and around us.

I hereby take the pleasure of thanking all who have contributed to the making of this report.
Firstly I would like to thank Prof. Sangeeta Hirlaykar, Prof. Devang Nandola, Who have
provided us full liberty, co–operation during our Report and sharing knowledge of his field
with me always with a smile.

I am greatly thankful to my parent, seniors, friends and colleagues for their kind and constant
inspiration and loving support through many days when they wondered where the priorities
lay.
 NESTEL PROJECT

Serial No Particulars

1. Acknowledgement

2. Introduction to Nestle

3. History of Nestle

4. Vision of Nestle

5. Mission Statement & Objective

6. Organizational chart

7. Brands

8. Earning

9. SWOT

10. Marketing

11. Strategies Adopted By Nestle

12. Company Environment

13. CO-OPERATIVE GOVERNANCE

14. Porter Five Force Analysis of Nestle

15. Conclusion
 Introduction

Nestle was founded in 1867 by pharmacist Henri Nestle on the shores of Lake Geneva in
vevey, Switzerland. One hundred and thirty – four years later, our headquarter are still in
vevey, surrounded by the swiss alps in one of the world’s best – preserved environment
settings, as they have grown from humble beginning into the world’s largest food company
,they have attempted to take the fundamental cultural values of environmental reservation and
cleanliness into every country where they operate. Company has 486 nestle factories
currently in operations. Companies factories reflects the environmental value basic to nestle
companies, Top management follow the company’s environmental performances. Nestle
environmental advisory group meets regularly to review current environmental issues and to
anticipate potential concerns. This allows them to maximize control over their activities and
contribute to sustainable development in the countries where they operate.The nestle
environment progress report 2000 describe the results to continuous improvement in its
environmental practices and being a leader in environmental performances.
 History

1866 – 1995

In the 1860s Henri Nestle a pharmacist developed a food for babies who were unable to
breastfeed. His first success was a premature infant who could not tolerate his mother’s milk
or any of the usual substitutes. People quickly recognized the value of the new products after
Nestle new formula saved the child’s life and soon fa rine lactee Henri Nestle was being sold
in much of Europe.

1905 - 1918

In 1905 Nestle merged with the ANGLO SWISS condensed milk company. By the early
1900s, the company was operating factories in the Unites State, Britain Germany and Spain.
World War I created new demand for dairy products in the forms of government contracts. By
the end of the war Nestle production had more than doubled.

1918 - 1938

In 1918 After the war government contracts dried up and consumers switched back to fresh
milk. However, Nestle management responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestle first expansion into new chocolate the company’s second most
important activity.

1938 - 1944
Nestle felt the effects of World War 2 immediately. Profits dropped from $20 million in 1938
to $ 6 million in 1939. Factories were established in developing countries particularly Latin
America. Ironically the war helped with the introduction of the company’s newest products
Nescafe which was a staple drink of the US military. Nestles products and sales rose in the
wartime economy.

1944 - 1975

The end of World War 2 was the beginning of a dynamic phase for Nestle. Growing
accelerated and companies were acquired. In 1947 came the merge with Maggi seasoning and
soups. Crosse & Blackwell followed in 1960s as did Findus – 1963 Libby’s – 1971 and
Stouffer’s 1973 diversification came with a shareholding In L’OREAL in 1974.

1975 – 1981

Nestlé’s growth in the developing World partially offset a slowdown in the company
traditional markets. Nestle made its second venture outside the food industry by acquiring
Alcon LABORATORIES Inc.

1981 – 1995

Nestle divested a number of business 1980 / 1984 in 1984, Nestle improved bottom line
allowed the company’s to launch a new round of acquisitions the most important being
American food giant carnation.

1996 - 2002

The first half of the 1990s proved to be favourable for Nestle trade barriers crumble and
world markets developed into more or less integrated trading areas. Since 1996 there have
been acquisitions including San Pellegrino 1997 spiller’s pet foods 1998 and Ralston Purina.

There were two major acquisitions in North America both in 2002 in July Nestle merged its
U.S. ice cream business into dryers and i9in August a USD 2.6bn acquisition was announced
of chef American.

2003 – Presents

The year 2003 started well with the acquisitions of movenpick ice cream enhancing Nestle
positions as one of the world market leaders in this products category in 2006 Jenny Craig
and Uncle Todays were added to the Nestle portfolio and 2007 saw Novartis Medical
Nutrition, Gerber and Henniez join the company.
 Vision
Nestle aim to meet the various needs of the consumers every day by marketing and selling food of a
consistently high quality the confidences that consumers have in our brands is a result of our
company’s many years of knowledge in marketing research and development as well as continuity –
consumers relate to this and feel they can trust our product’s. high quality and collaboration our
objectives are to deliver the very best quality in everything we do, from primary produce choice of
suppliers and transport, to recipes and packaging materials. Our operations and collaboration in the
Nordic countries gives us greater opportunities to be efficient and strategic and to function well as an
organization both when it comes to the distribution chain and to concerting on joint product launches
and campaigns.

Vision statements of Nestle Milkpak. The strategic priorities of Nestle Milkpak are focused on
delivering shareholder value through the achievement of sustainable capital efficient and profitable
long terms growth improvements in profitability will be achieved while respecting quality and safety
standards at all time.

In line with this objectives Nestle Milkpak envisions to grow in the shortest possible time into the
number one food company in Pakistan with the unique ability to meet the needs of consumers of
every age group – from infancy to old age, for nutrition and pleasure, through development of a large
variety of food categories of the highest quality. Nestle milkpak envisions the company to develop an
extremely motivated and professionally trained work force, which would drive growth through
innovation and renovation. It aspires as a respected corporate citizen to continue playing a significant
role in the social and environmental sectors of the country.
 CORPORATE “MISSION”
Nestle brands and products are the focus of continual innovation and renovation so that they meet and
exceed our consumer’s expectation. We seek to ensure that our products are available whenever,
wherever and however our consumers want them.
 OBJECTIVE
Nestle purpose is to offer safe, tasty, convenient and nutrition’s foods to improve heath and well –
being of consumers of all ages all over the world. To meet the needs and desires of todays and
tomorrow’s consumer’s Nestle is strongly committed to research and development to improve existing
products and development new foods with specific health benefits.
 Organizational chart
Details of activities / responsibilities which are included in the different departments shown in the
general organizational chart.

Zone EUR

Food & Beverages Europe

Zone AMS

Food & Beverages American: united States of America, Canada, Latin America and Caribbean

Zone AOA

Food & Beverages Asia, Oceania, African and Middle East

Nestle Waters

The water business is managed on a global basis.

Nestle Nutrition

The nutrition’s business is managed on a global basis.

Nestle professional

Strategic business division

Finance & control

Group control , group accounting & reporting , legal , intellectual property, acquisitions & business
development , pensions & group risk services , treasury , investor relations , audit , tax , global nestle
business services (GNBS) , F&C business excellence.

Strategic Business Unit’s (SUB’s) & Marketing.

Strategic Generating Demand Unit, business excellence Generating demand , corporate wellness
unit’s Dairy SBU, coffe & Beverages SUB, chocolate, confectionery & biscuit’s SUB , ice cream’s
SUB , food SUB PET CARE , SUB , Nespresso , nescafe ,

RTD

Innovation Technology , R&D science & research regulatory, PTCs and R&D innovation acceleration
teams technology intellectual property innovation partnership management packaging & design
business excellence R&D nestle water’s R&D nutrition’s , R&D nestle Purina.

Operations

Procurement production supply chain engineering quality management safety health & environment
agriculture operations performance business excellence operations technical personnel coordination
GLOBE & business excellence. Pharma/ cosmetics human resources pharmaceutical and cosmetics
products liaison with L’ Oreal human resources corporate media relation’s public affairs economic
and international relations corporate governances , compliances and corporate services. Center
counsel group compliance, general secretarial group governances.
 BRAND’S
Today nestle present’s in different markets with the following main brands

 Coffee
 Nescafe , Nespresso, Taster’s choice , Ricore , Ricoffy, Bonka, Loumidis.
 WATER
 Poland Spring, nestle pure life,
 Arrowhead vittel deer park ,levissima , Perrier, s.pellegrino, Ozarka , contrex , ice mountain ,
Zephyrhills, Nestle Aqurel , Hepar , Acqua panna
 Other Beverages
Nestle Nesquik, Nescau, Milo, carnation, Libby’s caro , nest malt, Nestle
 Dairy – shelf stable
Nestle , Nido , Nespray , Ninho , carnation, milkmaid , La Lechera , Moca, klim, Gloria ,
svelty, Molico, Nestle Omega Plus, Bear

BRAND, COFFEE – MATE

Dairy – chilled

Nestle sveltesse, ski , yoco , svelty , molico , lc chiquitin.

ICE CREAM

Nestle, Antica Gelateria del corso , dreyes , eddy’s , nonstop, delta.

INFANT NUTRITION

Nestle Nan , Lactogen, Baba , Nestogen , Cerelac, Nestum , Neslac , Guigoz , Good start
HEALTH CARE NUTRITION

Nutren , Clinutren , peptamen, Modulen Bouillons , soups , seasoning , pasta , sauces , Maggi ,
Buitoni , thomy, winiary , Torchin , Osem , Totole , Haoji.

Pet care

Purina , Friskies, Fancy , Feast , Alpo , Gourmet , Mon Petit , Felix , Dog Chow , cat chow , pro plan ,
Purina ONE , Beneful , Tidy cats

EARNING
In 2003, consolidated sales were CHF 87.979 billion and net profit was CHF 6.213 billion research
and development investment was CHF 1.205 billion. Sales by activity breakdown 27% from drink
26% from dairy and food products 18% from ready – prepared dishes and ready – cooked dishes 12%
from chocolate, 11% from pet products 6% from pharmaceutical products. Sales by geographic area
breakdown 32% from Europe 31% from Americas 26% from us 16% from ASIA 21% from rest of the
world.
 SWOT ANALYSIS

STRENGH

It’s a company that does not depend on the personalities. Leaders in dairy products long terms
experience. Innovative products designative packaging innovative planning and ideas wide
variety of brands.

WEAKNESS

Supply chain, exports

OPPORTUNITY

High credibility

Available means for expansion

Improving trends

Industry leadership

Consumer preference

Fewer competitors

Dedicated workforce
Untapped rural market.

THREATS

Highly competitive market companies are very organized and financially strong

Increasing prices of raw materials.

Competitors like haleeb halla askari pure water nurpur dairies and prime yogurt.

MARKETING

Nestle hold strongly reputation for high quality brands. In major markets trade marketers are
frequently rated highly in customer’s survey on professionalism and services. They don’t
believe in one brand fits all but with a strong diversified global portfolio well focused and
defined offers a brand for all key consumers and market sectors.

They aim to satisfy consumers demand better and more profitably than their competitors.

STRATEGIES ADOPTED BY NESTLE

Business principle: nestle is committed to the following business principles in all countries
taking into account local legislation cultural and religious practices, nestle business objectives
is to manufacture and market the company’s product’s in such a way as to create value that
can be sustained over the long term for shareholders employees consumers and business
partners.

Nestle does not favour short term profit at the expense of successful long business
development. Nestle recognizes that its consumers have a sincere and legitimate interest in
the behaviour belief and actions of the company behind brands in which they places their
trust and that without it’s consumers the company would not exists. Nestle believes that as a
general safeguard of responsible conduct although in certain areas additional guidance to staff
in the form of voluntary business principles is beneficial in order to ensure that the highest
standards are met throughout the organization.
Nestle is conscious of the fact that the success of a corporation is a reflection of the
professionalism conduct and the responsible attitude of its management and employees.
Therefore recruitment and development are crucial. Nestle continues to maintain its
commitment to follow and respect all applicable local laws in each of its markets.
Consumer’s perceptions and the future needs of society as a global food manufacturer and
marketer Nestle takes into consideration local needs cultural differences and consumers
preferences as well as attitude concerning the use of ingredients crops. Nestle will continue to
use ingredient’s derived from genetically modified crop’s wherever appropriate.

Global commitment

Nestle firmly supports the principles of the united nation global compact and is committed to
reflecting these in its business principles and practices. Search for trust, nestle is the world’s
leading food and beverage company with sales of about CHF 72 billion. It has 230,000
employees world – wide and operates 520 factories in 82 countries. Its products are available
universally including such remote market as North Korea and they are sold under a number
of brands such as Nestle, Nestle cafe, Nestea, Maggie Company belongs to more than
200,000 shareholders, and today Nestle is about twice the size of its nearest competitors in
the food and beverage sectors. The company is in business for over 130 years since the days
of its founder brands have been mainstay of company’s development and its management
strongly believes that is one of the key elements of company success. A basic reason
company has grown to be the world’s largest food company is that consumers have learned to
trust its brands. The nestle challenge was the establishment of a clear hierarchy of very few
corporate strategic global brands that now cover almost all product’s as well as the parallel
usage of regional and local product’s brands and products denominations.
 ADDITIONAL INTRODUCED BY NESTLE

Nestle seal guarantee and emphasized corporate logo. This seal of guarantee is a visible sign
of company’s corporate responsibility for the safety and quality of every product’s which
leads to maintain consumer confidence and trust in this corporation. In order to be able to
give this quality and safety assurance, company developed a Nestle quality management
system which collect’s the experience of our research and development on which we spend
CHF 800 million a year’s for a company such Nestle economics’ success depend on wining
the public’s where our products are sold. The have always believe strongly that tobacco
should never be marketed to youth. It should only be marketed to adult smokers, in an
appropriate way that takes account of the risks posed to health.
 NESTLE COMPANY’S SUCCESS BUILT ON QUALITY

Quality is the cornerstone of company’s success. Everyday millions of people all over the
world show their confidence in company by choosing Nestle product’s this confidence is
based on our quality image and a reputation for high standards that has been built over many
years. Every product’s on the shelf every service’s and every customer’s contract help to
shape this image. A Nestle brand name on a product’s is a promise to the customer that it is
safe to consumer that it meet’s high standards of quality.

Customers expects company to keep this promise every time under no circumstances
company compromises on the safety to a products and every effort must be made to avoid
hazards to health people equipment and instrument are made available to ensure safety and
conformity of Nestle product’s at all time.
 QUALITY UNITS AT DIFFERENT LEVEL OF THE NESTLE

Provides specific support, promotes quality awareness assume guardianship and audit the
system. Quality department monitor’s operation’s against agreed standards and must
intervene in case of non – conformity. Training and networking are crucial to the successful
implementation of high quality standards. Continuous training ensures that everyone
understands his tasks and has the necessary skill to carry them out. Teamwork allows us to
achieve results that are greater than the sum of individual efforts.

We motivate employees by demonstrating management commitment to quality by setting

challenging goals and by giving them responsibility and recognition it’s through employee
involvement that goals and targets can be achieved in the shortest time.
 QUALITY MUST BE A WAY OF LIFE FOR EVERYONE IN THE COMPANY

Progress is followed by listening to our customers and by measuring our performance. Nestle
position on Gene Technology from its inception more than 130 years ago, Nestle has built its
business on successfully applying scientific breakthroughs and technological innovations
while taking full responsibility products. Throughout these years Nestle has been
manufacturing and marketing products tailored to meet the diverse need and preferences of
consumers all over the world.Nestle has always strived to respect these differences and to
take them into account in its activities. Nestle supports a responsible application of gene
technology for food production based on sound scientific research.
 CONSUMER INFORMATION AND LABELING

Consumers’ confidence in the food they are buying is supported by having access to
information. Nestle consumer services are well equipped to provide this access and thus are
the first source of information crop, in including the use of ingredients derived from
genetically modified crops, in Nestle products.

Many government now have implemented or are considering regulations for the use and
labelling of these ingrediennts.in the absence of a global agreement on the labelling of
ingredients derived from genetically modified crops, and recognizing government’s
responsibility for the regulatory process, Nestle strictly adheres to national laws and
regulations regarding their labelling.
 ENVIRMENT OF THE COMPANY

MANAGEMENT

The executive board a distinct entity from the board of directors, includes. Peter Bra beck –
Letmathe , chairman & CEO carlo donate EVP chairman and CEO of Nestle water’s first van
dijk , EVP of Asia Oceania, Africa, Middle East division Lars Olofsson EVP of strategic
business units and marketing Francisco Castaner , EVP of pharmaceutical and cosmetic
products Liaison with L’Oreal Human Resource Michael Powell ,EVP of united Kingdom’s
division.

Paul Bulcke ,EVP of Americas divisions Paul Polman EVP of finance control legal tax
purchasing export luis cantarell, EVP of Europe division Richard T. Laube, Deputy EVP of
Nutrition strategies business units werner J. bauer EVP of research and development ,
Technical , production Environment.

Current members of the board of directors of Nestle are Gunter Blobel , Peter Bockli,
secretary to the board Bernard Daniel.
 Corporate Governance

Nestle commitment to sound corporate governance goes back to its very early days. This
commitment is reflected and explained in several publication such as the corporate
governances report Articles of association committee charters etc. it is also visible in Nestle
da gy to day business behaviour.

The corporate governance report covers the following areas.

Group structure and shareholders

Capital structure

Board of Directors

Compensation, shareholdings and loans

Shareholder’s participations.

Changes of control and defence measures auditors’ information policy.

 PORTER’S FIVE FORCES ANALAYSIS

Five Force Analysis help us to contract a competitive environment. We analyse these five
forces for Nestle five forces analysis looks at five key areas namely.

Threat of Entry

The power of buyers

The power of suppliers

The threat of substitutes

Competitive Rivalry
 Conclusions

It is from the case presented that the reputation of a company is decided not in terms of its
sales or profit’s maximization but in terms of the good will it earns by adopting morals and
values in its marketing and pricing.

The products and marketing should not violate the society standards

Should not promotes or undermine breastfeeding.

The organization is responsible for any happening or consequences in the society. The issue
of mixed feeding before six months should be investigated and discouraged through
sensitization programs at the community level not only at the facility level.

The breastfeeding advocacy should adequately reflect the need for continuous breastfeeding
after the six months period as well as the timely and appropriate introduction of feeding
bottles teats and condensed milks.

To be effective the regulations must be adequately disseminated beside there is the need for
health workers particularly nurses who manage heath facilities in the rural areas to
understand the circumstances under which infant formula could be used since under some
conditions it becomes very relevant to offer artificial formula save a life.

Expression of breast milk should also be made part of antenatal grooming rather than the case
to case basis.

In response to the controversies mentioned above Nestle has affirmed that in order to
continually improve our practises we call on our stakeholders and the general public to
directly communicate to us in detail any concern or allegation of non – complaints with our
commitment.

We commit to investigate and respond to all concern raised by external stakeholders directly
with us provided that we receive enough information to carry out an investigation. This
interaction with our external stakeholders help u improve our monitoring of our who code
compliance and through this external report we aim at providing to those stakeholders a
feedback on their concern as well as giving to the general public better insights into our code
compliance records.