Nestle

Presented By:
Hafsa Zaki
&
Kamran Khan
Introduction
History
Objectives and Goals
Vision and Mission
Reasons
4 Ps of nestle
Market Growth and Market Share
BCG Matrix
Conclusion
Recommendation

Industry Food processing
Founded Anglo-Swiss Condensed Milk Company
(1866)
Henri Nestl
(1867)
Nestl and Anglo-Swiss Condensed Milk Company
(1905)
Founder(s) Henri Nestl, Charles Page, George Page
Headquarters Vevey, Switzerland
Area served Worldwide
Key people Peter Brabeck-Letmathe (Chairman)
Paul Bulcke (CEO)
Wan Ling Martello (CFO)
Products Baby food, coffee, dairy products, breakfast cereals, bottled water, ice
cream, pet foods (list...)
Nestl's products include baby food, bottled
water, breakfast cereals, coffee, dairy products, ice
cream, pet foods etc.
29 of Nestl's brands have annual sales of over 1 billion.
It is one of the main shareholders of L'Oreal, the world's
largest cosmetics company.


In the 1860s Henri Nestl, 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 sold in much
of Europe.
Although less than 2% of there sales are generated
in Switzerland, Nestl is a Swiss company.
There organization is effective, reliable, hard
working.
They are committed to creating value over the
long term not only for there shareholders, but also
for all those communities around the world where
we market our products.
To build mutual trust with consumers.
To ensure continuous improvement of nestles
environmental performance.
To establish the benchmark for good business practice.
Measuring the cost and benefits to business of its
activities.

Nestle 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.
Nestls mission is to provide the best food to
people throughout the world.
Their all foods and beverages are enjoyable and
play an important role in a balanced and healthy
diet and lifestyle.
They work to ensure the same level of
commitment to quality, taste and nutrition across
all their products.

Ps of Marketing Mix are divided into 4 different
Parts.
1:- Product
2:- Place
3:- Price
4:- Promotion
In Marketing a product is anything that can be offered
to a market that may satisfy a need or want.
Nestle Product
Nestle is the world's largest food manufacturer,
operating in 86 countries with 487 factories.
Naturally, Nestls range of products varies greatly
from one area of the world to another.
Nestle has spread world wide.
Nestle when entering a new market does not
going alone but it looks for partners and mergers.
Nestle has collaborated with companies many
MNCs etc.
Promotion is one of the four aspects of marketing.
Promotion comprises four subcategories:
1:Advertising
2:Personal selling
3:Sales promotion
4:Publicity and public relations
Nestle decides it price on the basis of competition.
The best think about the company nestle is that it is
very flexible and it can come down with the price
very quickly.
The company is renowned to bring the price down
even up to half if needed.
In the first nine months of 2013, Nestls
sales increased by 4.0% to CHF 68.4 billion,
impacted by negative foreign exchange of 2.5%
BUSINESS GROWTH:


ORGANIC GROWTH AND REAL INTERNAL GROWTH:

Developed Markets 1.1%
Emerging Markets 8.8%
Country Names Organic
Growth
Real Internal Growth
America 5.1% 2.0%
Europe 0.9% 1.9%
Asia 6.9% 5.8%
Africa 6.9% 5.8%
The market price of one share of the par value of Rs10
in Nestle Pakistan stands at an incredible Rs.4,844!
It makes the stock, the most expensive among the 639
listed on the Karachi Stock Exchange.
The number of paid-up shares in Nestle is 45.4 million,
which values the company at Rs.220 billion.


By: Kamran Khan
BCG MATRIX
In the late 1960s the Boston Consulting Group, a leading
management consulting company, designed a four-cell
matrix known as BCG Growth/Share Matrix.
This tool was developed to aid companies in the
measurement of all their company businesses according to
relative market share and market growth.
The matrix provides a composite picture of the strategic
position of each separate business within a company so
that the management can determine the strengths and the
needs of all sectors of the firm.

Positioning = the company has to place each of its
products/services on the matrix. Thus it is able to
obtain information on the market share of the
product or service and the market growth.
Creating long-term value = the company should
have a product portfolio that includes products
with high growth where it is necessary to inject
cash and products where growth is weaker but
which generate a lot of cash.
Question marks:
They do not generate profits unless the company
decides to invest resources to maintain and even
increase the market share (become potential stars).
They have a high demand for liquidity .

Stars:
These are promising products for the company, they
even can be considered as leaders of the industry.
The strategy is to boost these products by
appropriate investments to monitor the growth and
maintain a position of strength.
These products require a large amount of cash but
also contribute to the company's profitability.
They are becoming progressively cash cows with
market saturation.

Cash Cows:
These are products or services which are mature and
which generate interesting profits and cash, but
need to be replaced because the future growth will be
lower.
They must therefore be profitable because they can
finance other activities in progress (including stars
and question marks .

Dogs :
These products are positioned in a declining market
and highly competitive and that the company wants
to get rid of soon as they become to expensive to
maintain.
The company must minimize the dogs .
The company must decide whether it still injects
liquidity, otherwise it will eliminate the dogs in the
near future.
PROBLEM CHILD : Maggi sauce, Nestle butter
STAR : Nescafe, Ceralac, Nestle Milk
CASH COWS : Maggi noodles
DOGS : Nestle dahi, Nestea
Position: Question Mark
Product: Maggi Sauce

The ketchup market in India is estimated to be
around Rs 220 crore
Maggi sauce has a market share of 47% as compared
to its competitor kissan with 26%
Maggi Sauce highlighted with top television
celebrities but there was a considerable time lag in
promotion

Product: Kit Kat
Kit Kat has an upper edge over its competitors
Rise of competitors, especially Perk, Kit Kat seems to
have loosened up its grip in the market
Nestles market share in Kit Kat chocolate is 19% and
the market growth is 34%.
5

Product : NESCAFE

Leading coffee brands in
Pakistani market
Nestle Milk market share is
21% where the market growth
is 39%



Position: Star
Nescafe market share in the instant coffee segment
is 52% compared to Bru which has 43% of market
share.
Product : CERELAC
One of the leading baby food products
Long hold in its market share almost more than
one & a half decade
Nestle has 80% market share in baby food segment
It is a contributor for Nestle Pakistans revenues
with 31.2% market share.
Product : Maggi Noodles
High market share but market growth rate is not very
high.
80% market share in the Rs.1300 crore instant noodles
segment
Maggi noodles has a market share of 18.76% and the
market growth is 64%.
Position: Cash Cow
Product: Nestle Dahi
Majority of the consumers are unaware that Nestle
offers a Dahi
Market share of Nestle Dahi is 3% and the market
growth is 12%.Nestle Dahi to be placed in as a Dog

Its price is against its competitors but it matches
its quality with the competitors.
Nestle is using its brand name to promote its
products and its very popular as compared to its
competitors.
Due to its Advertisement, nestle attracts more
customers.
It has always maintained the quality of its
products.

T h a n k y o u