INTRODUCTION

Hello everyone my name is Mukta Sagar . I hail from Modinagar and have done BBA from SRM university
in 2021. I have choosen an FMGC industry under which I have choosen nestle company.

Whether its dairy products, chocolates or juices, Nestle is always there in our everyday purchases. It’s
“Good Food, Good Life” slogan has served it right, touching millions of people worldwide, both
physically and literally.

There are numerous companies that have tried going international with no avail. Of the few that have
succeeded, many have been mired in international business controversies. For example, many food
companies have been accused of having hazardous effects on health. Other companies have been
accused of having poor quality in many of their other international branches. Nestle has neither
experienced nor been associated with such accusations. The ease with which the company has grown
since its inception is admirable. In addition, the company’s stand of high quality has allowed it to
become one of the largest food companies in the world.

Being a multinational company, it has branches all over the world. Saltmarsh (2010) identifies 447
factories of Nestle round the globe. These factories are situated in 194 countries, meaning that there are
countries that have more than one factory. In terms of employees, Nestle boasts of approximately
330,000 employees. It goes without saying that Nestle has managed to stay on the top of its competitors

Nestle is a multinational corporation that wholly focuses on food and beverages as its primary trade
commodities. The company’s headquarters is in Switzerland. Nestle is considered the largest food
company in the world, with reference to revenue measuresue to good customer relations, high-quality
products, and excellent returns.

NESTLE INDIA :- Nestle India Ltd is one of the biggest players in FMGC segment.

The company has its presence in India through various manufacturing units and branch offices spread
across the region. Its four branch offices are In delhi , Chennai, Kolkata and Mumbai

Over the years nestle has buit a relationship of trust and commitment with the people of india and
expects the same in its relationship. It is the most respected company in india and among the top
wealth creators of india.

The company continuously focuses its effort to understand the changing lifestyle of india and anticipate
consumer needs in order to provide taste, health and wellness through its products offered.

In the year 2020, Nestle India reported a net sales of over 132 billion Indian rupees, up from about 122
billion rupees in the previous year.

BRANDS :- Talking about its products it has more than 2000 brands ranging from global icons to local
favorites, and are present in 186 countries worldwide. this makes nestle most diversified food product
company.
COMPETITORS:- Nestle has spread their product lines and line extensions so broad that it is difficult to
find a competitor within all Nestle product lines in one go. In India it has many competitors like
Britannia, adani foods, Hindustan foods, tasty bits, LT bites and many more but Amul has always been
its top competitors because of its strong distribution strategy.

DISTRIBUTION STRATEGY:- Ppt wale points sbse phele toh

The company also promoted their products like giving free samples of the new products free with old
popular famous products. It always has a Tag line that excites people Ex in india its good food good life
In argentina change the day start within In Germany give yourself a break In us the smart choice

SWOT ANALYSIS

Strength

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.

Reputed brand name – 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.

Brand valuation – In 2021, with a brand value of $10.6 Billion, Nestle is well positioned for growth.

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.

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.

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. [3]

Extensive product portfolio – 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.

Well-established relationships and popular brands – Nestle has some of the world’s most recognized
brands under its name such as Nescafe, Kit Kat, Gerber, Milo, and Maggi.
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 is one of its key competitive advantages. There are
more than 5000 employees involved in R&D operations.

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. 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.

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.

WEAKNESS

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.

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.

Water controversy – Recently, Nestle was accused of illegally pumping millions of liters of water in 6
nations where residents are deprived of drinking water.

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.

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.

Opportunities

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.
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.

Market penetration for breakfast cereals – Nestlé’s cereals and oats market have shown fast growth in
recent years. Thus, penetrating this market more would be highly lucrative for the company.

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.

Partnerships – Strategic alliances with other food and beverage giants are also a great opportunity for
the company to increase its revenues and profits.

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.

THREATS

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.

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.

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.

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.

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.

BCG MATRIX
Boston Consulting group’s product portfolio matrix is designed to help with long term strategic planning,
to help a business consider growth opportunities. This is done by reviewing its portfolio of products to
decide where to invest, to discontinue or develop products

BCG matrix stands for Boston Consultant Growth Matrix and is also known as Growth share matrix.

Now, if you observe the BCG matrix diagram, it is divided into four different quadrants which will allow
you to find the role a product plays in your profit margin.

Low Growth, High Share: Firms should milk these “cash cows” for cash to reinvest

Cash Cows

Every marketer loves the products that fall into this category, they are the big-time revenue earners of
the company. They are the pillars that help the company to be recognized in the market.

Cash cow products require a very low investment in comparison to their returns and other products.
Usually, the profit earned from these products are reinvested by the companies into diversifying their
business and the question mark products.

The cash cow products have been able to sustain the period of growth and have also very well retained
their market share.

Their predominant nature does not demand higher returns however the companies are still advised to
manage these products to maintain their stability.

For Nestle, there are some products those have been undoubtedly the Cash Cows. They are- Nestle’s
Maggi Noodles, NesCafe and its popular chocolates like KitKat, Munch.

With a market share of 80-85 %, Maggi Noodles holds a pseudo-monopoly in the market and have a high
customer loyalty.

These products need very less investment. In fact, they are already available at every nook and cranny.
And loved my most of us.

High Growth, High Share: Firms must invest in these “stars” as they have high future potential.

STARS

The products that fall into this category are those that hold the best market share and generate the
most revenue for the company. Star products also require a lot of investment for gaining excess market
share.

In the case of Nestle, Nestle’s Mineral Water and Nestle’s Nescafe Coffee (like Nescafe Latte) fall in the
Star quadrant of the BCG Matrix of Nestle.
With the growing number of health-conscious customers, these products have the potential to produce
greater ROI later. Even though, it might take heavy investment to make Nestle-brand visible in that
market, they may turn to cash-cows pretty soon.

High Growth, Low Share: Firms should invest in or discard these “question marks,” depending on their
chances of becoming stars.

QUESTON MARK

The Question mark products, the ones that fall into this category require a lot of investment but they
give a comparatively lesser amount of returns.

Now usually you would find that question mark products are basically those products that are yet to be
established and accepted by the market. There is a lot of uncertainty around these products and
therefore the question mark.

Or, it could also be that these are the products are of those companies that are in process of branding
themselves even now.

These products require a lot of their investments in marketing and promotional activities.

Low Share, Low Growth: Firms should liquidate, divest, or reposition these “pets

DOGS

The products that fall into this category are basically the ones that are able to just reach the breakeven
sales, with no profit and no loss in hand.

These products are basically considered to be the cash trap for the company as their investments have
been tied up in these products and cannot be liquefied.

example Nestle Milo and Koko Crunch.

CSR

Like many other multinational companies, Nestle has also taken up the concept of corporate social
responsibility.

Nestle India has to focus its CSR activities majorly on nutrition, water and sanitation, and rural
development.

One such event is the World Cocoa Foundation, which is supported by numerous chocolate companies.
The foundation aims to help farmers who focus on cocoa farming. The farmers learn about better ways
of farming to ensure high-quality produce, leading to more income.

Nestle india is well recognized and awarded on several occasions by the Indian government for being
pivotal leaders in the field of csr.
Nestle healthy kids programme: Project Jagriti

it targets malnutrition amongst children, adolescents, pregnant women and lactating mothers. For this,
it has partnered with MAMTA Health Institute for Mother and Child.

It focuses on creating awareness through peer-to-peer support and with the help of ASHA workers:

About early initiation of breastfeeding, exclusive breastfeeding, and about improving the quality of
breastfeeding practices;

Menstrual and General Hygiene, improving mental and physical health; Gender equity norms, the
importance of family planning, sexual and reproductive health etc

A subset of this project was launched in 2009. The ‘Nestle Healthy Kids Programme’ promotes
adolescents’ nutrition, health and well-being. It promotes understanding the value of sports and
exercise, balanced diet, general hygiene etc

Project Serve Safe Food

Nestle has partnered with the National Association of Street Vendors of India (NASVI) and national and
local food authorities to launch Project ‘Serve Safe Food’. The project has been launched to train street
food vendors on maintaining general and food hygiene, clean and sustainable food storing techniques,
food handling tips, waste disposal management and entrepreneurial skills.

They are taught to inculcate the habit of regular washing of hands, usage of gloves and kitchen caps,
techniques of disinfecting utensils and storage boxes, proper washing of fruits and vegetables etc. After
the training is complete, they are given a hygiene kit and a certificate stamped by Nestle. These vendors
are also encouraged to propagate what they’ve learnt with fellow vendors and visiting customers. Till
now, over 20,000 vendors across 17 States/UTs have been benefited from this programme.

Project HILLDAARI (Plastic Waste Management Awareness Campaign)

It is one of the flagship initiatives by Nestle where it promotes a collective sense of responsibility and
ownership. The HILLDAARI movement is an initiative of Nestle India to promote cleaner and sustainable
hill towns especially the ones which receive high tourist footfall like Mussoorie, Nainital etc. Nestle
realised that one of its bestsellers is also a major pollutant in the hill stations i.e., empty Maggi packets
and took it upon themselves to clean it up. So, it motivated the citizens of the town to collect waste and
inhabit a culture of waste segregation, so that it can be recycled and reused.

This CSR project continued to function during the pandemic whereby people were trained in techniques
for safely disposing medical waste along with teaching them and encourage them to propagate
following of COVID-19 appropriate behaviour, like regular washing of hands, social distancing, usage of
masks, gloves and PPE kits, and methods of sanitization.
And some Water Conservation Programmes were also launched by nestle;

Nestle India is committed to saving water by making the best possible use and they believe that charity
begins at home. As a matter of fact, they’ve altered their production methods and reduced the
generation of waste water by 49% and water usage by about 53% per tonne of production.

Nestle has taken up the following initiatives to conserve water:

WASH pledge

The ‘WASH at the Workplace Pledge’ was launched by WBCSD in 2013. Nestlé is a founding member and
was among the first signatories to the WASH Pledge. As a co-chair of the Pledge, the company provides
strategic input and support to the WBCSD’s work programme on access to water, sanitation and basic
hygiene.

Good and Well-Planned Sanitation Programmes

Nestle believes that furthering the government’s cause of ‘Swachh Bharat Abhiyan’ is not only their duty
as being part of the responsible corporate citizenry of the country but an endeavour to provide access to
good health to the community. It is a way to give back to the people of India, who have always put
immense trust in the company.

To achieve their motive, they’ve launched various CSR initiatives which involve the construction of
proper toilets in public places, government schools, in and around their factory premises and in the
living quarters of their labourers.

Nestle India has taken wonderful and innovative CSR initiatives to work shoulder to shoulder with the
Indian Government to bolster the economy as well as well being of Indians. From cleanliness drives to
water conservation programmes to Nutrition help programmes. The company has done it all and
impeccably so.