nestlé was founded in 1866 by henri nestlé and is today the

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That's not to say that every operating company can do as it wishes. Headquarters in

Vevey sets the overall strategy and ensures that it is carried out. It's an approach that is

best summed up as: 'centralize what you must, decentralize what you can'.

Nestl is a company which is present in all over the world but It has difference and

unique motto to deal in all over the world. Nestl believes that they should think about

their organizations globally but they deal with people by interacting with them locally.

Thinking globally - acting locally

Evolution of Nestl: -

1867 Henri Nestl founded the company in Vevey, Switzerland.

1898 Nestl purchases its first factory outside of Switzerland - Viking Milk factory in

Norway.

1905 Nestl merges with Anglo-Swiss Condensed Milk Company.

1929 Nestl merges with Peter-Cailler-Kohler Chocolates Suisses S.A.

1938 Nestl launches Nescaf - the worlds first instant coffee.

1947 Nestl merges with Alimentana S.A. with the brand Maggi.1962 Nestl purchases Findus.

1974 Nestl becomes a significant shareholder in the Cosmetics Company LOral.

1977 Nestl purchases Alcon, manufacturer of eye care products and kits.

1985 Nestl purchases the Food Company Carnation.

1988 Nestl purchases the confectionary company Rowntree Mackintosh and the pasta

company Buitoni-Perugina.

1992 Nestl purchases the mineral water Company Perrier.

1998 Nestl purchases Spillers pet foods business.

2000 Nestl sells the Findus brand in all countries except for Switzerland.

2001 Nestl merges with Ralston Purina, the premier petfood company in North America,

and with unique expertise in the dry dog food are


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ment of its staff., t

Vision of Nestl

Nestl's vision of making good food central to enjoying a good healthy life for consumerseverywhere.This implies gaining a deeper understanding in many areas of nutrition andfood research and

transforming the scientific advances into applications for the company.

Having a broad vision the company is doing its best for their consumers to show the great

sense of responsibility.

Nestls aim is to meet the various needs of the consumer 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 companys manyyears of

knowledge in marketing, research and development, as well as continuity -consumers relate to this and

feel they can trust our products.


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hroughout their lives.

Vision of Nestl

Nestl's vision of making good food central to enjoying a good healthy life for consumerseverywhere.This implies gaining a deeper understanding in many areas of nutrition andfood research and

transforming the scientific advances into applications for the company.

Having a broad vision the company is doing its best for their consumers to show the great

sense of responsibility.

Nestls aim is to meet the various needs of the consumer 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 companys manyyears of

knowledge in marketing, research and development, as well as continuity -consumers relate to this and

feel they can trust our products.

High quality and collaboration


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Our objectives are to deliver the very best quality in everything we do, from primaryproduce, choice of

suppliers and transport, to recipes and packaging materials. Ouroperations and collaboration in the

Nordic countries gives us greater opportunities to beefficient and strategic and to function well as an

organization, both when it comes to thedistribution chain and to concentrating on joint product

launches and campaigns.

Focus on e-business and websites

Increased investments in the sphere of e-business give us swifter business and directcontact with trade.

Our website is a forum for consumers, students, future employees andthe media. We hope that through

a sincere approach and by conducting dialogues, we willbe able to improve, change and satisfy the

demands and wishes of the people of today


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History of Nestl: -

Nestl started its work as a multinational company in 1866. From that time they provided

their best to their customers and the history of the Nestl is given below:

1866 -1918

In the 1860s Henri Nestl, a pharmacist, developed a food for babies who were unable tobreastfeed. His

first success was a premature infant who could not tolerate his mother'smilk or any of the usual

substitutes. People quickly recognized the value of the newproduct, after Nestl's new formula saved

the child's life, and soon, Farine Lacte HenriNestl was being sold in much of Europe.

In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By the early1900s, the company

was operating factories in the United States, Britain, Germany andSpain. World War I created new


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demand for dairy products in the form of governmentcontracts. By the end of the war, Nestl's

production had more than doubled.

1918 -1944

After the war Government contracts dried up and consumers switched back to fresh milk.However,

Nestl's management responded quickly, streamlining operations and reducingdebt. The 1920s saw

Nestl's first expansion into new products, with chocolate theCompany's second most important activity

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History of Nestle

1866-1918

1918-1944

1944-1975

1975-1981

1981-1996

1996-Now

Food

Products

for babies

& Powder

Milk

Chocolate,

Coffee

and Fresh

Milk


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Fast Food

Maggi

Fast Food

Products

Yogurt

COMPETITIVE PRIORITIES

COMPETITIVE PRIORITIES

Quality

Quality

Everyday, millions of people all over the world shows their confidence innestle by choosing Nestl

products. This confidence is based on their qualityimage and a reputation for high standards that hasbeen built up over many years.

High performing design

High performing design Quality policy and principles, the mandatory


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standards and the recommended tools for implementation are laid down in the

Nestl Quality System, which is applicable throughout the group. Further

directions are given through instructions, norms and guidelines, often specific

to a product.

Nestle business products; such as raw material producers, packaging

suppliers, contract manufacturers and distributors are expected to share nestle

concern for Quality.

Consistent quality

Consistent quality A Nestl brand name on a product is a promise to the

customer that it is safe to consume, that it complies with all regulations and

that it meets high standards of quality.

Cost

Cost

Nestle provides high quality products to its customers at lower prices; prices

Nestle provides high quality products to its customers at lower prices; prices

that are affordable by people in order to get nutritious healthy products.

that are affordable by people in order to get nutritious healthy products.

Time

Time

Through its effective marketing and vast sales and distribution network


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Through its effective marketing and vast sales and distribution network

throughout the company, Nestle ensures that its products are available to

throughout the company, Nestle ensures that its products are available to

consumers whenever, wherever and however. They believe that getting the

consumers whenever, wherever and however. They believe that getting the

new product to market first gives the firm an edge on the competition that is

new product to market first gives the firm an edge on the competition that is

difficult to overcome in a rapidly changing business environment

difficult to overcome in a rapidly changing business environment

(

(Development speed

Development spee

Volume Flexibility

Nestle has the ability to accelerate and decelerate the rate of productionquickly to handle large

fluctuations in demand. For Nestle volume flexibilityis an important operating capability that supports

the achievement of theirother competitive priorities.

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Corporate wellness unit of Nestle Corporation

The Corporate Wellness Unit was designed to integrate nutritional value-added in their food and

beverage businesses. This unit will drive the nutrition,health and wellness organization across all their

food and beveragebusinesses. It encompasses a major communication effort, both internally

andexternally, and strives to closely align Nestls scientific and R&D expertisewith consumer benefits.This unit is responsible for coordinating horizontal,cross-business projects that address current

customer concerns as well asanticipating future consumer trends.

International strategy

1.Focus on Foreign Direct Investment

Nestl is a global organization. Knowing this, it is not surprising that international

strategy is at the heart of their competitive focus. Nestls competitive strategiesare associated mainly

with foreign direct investment in dairy and other foodbusinesses.

Nestl 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 andLatin America. Nestl

recognizes the profitability possibilities in these high-riskcountries, but pledges not to take unnecessary

risks for the sake of growth. Thisprocess of hedging keeps growth steady and shareholders happy.

2.Partnership with other large companies

Another strategy that has been successful for Nestl involves striking strategicpartnerships with other

large companies. In the early 1990s, Nestl entered into analliance with Coca Cola in ready-to-drink teas

and coffees in order to benefit fromCoca Colas worldwide bottling system and expertise in prepared

beverages.


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PRICE PLANNING:

Global pricing policies:

Apart from global coordination of prices on specific products and firms usually adopt

one of the three alternative pricing policies that cut across their product lines. these

are

1. Polycentric pricing

2. Geocentric pricing

3. Ethnocentric pricing

Nestle use geocentric pricing policy.

Nestle Products price planning

Nestle dairy products are priced keeping in view the buying power of middle-


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income and high-income social classes.

The cost includes the cost of manufacturing, labor, raw materials etc. The

industry sales growth is largely driven by population growth as well as theamount of advertising and

product innovation taking place in the industry. Thecompany has resorted to pricing discrimination

strategies to maximize the valueof consumer demand

Being a multinational brand, the pricing objective of Nestle is mainly to increase

sales as it has already penetrated the market. Their prices are not affected by pricechanges by

competitors, and they dont engage in price wars. Competition is metthrough innovation. The prices of

Nestle milk change as the product size ischanged of the Product Life Cycle. And Because of the contract

between theseller companies, they offer same price. So there is no skim based or penetrationbased

pricing by company.

The retail prices are different according to there size and brand. However prices

have been standardized throughout Pakistan and there is no differentiation basedon geographical areas.

There is no change in prices according to season. Itremains the same.

They adopt same strategy in international marketing as in local marketing. But the

prices are according to the international currency.

PROMOTION PLANNING

Promotion Planning of Dairy Products:

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Sales Throu

The promotion of Nestle Dairy product are no doubt the best of all. Its intense advertisinghas really

captured the minds of all categories of people besides media advertising; thecompany has signed

several agreements with different sports in order to promote. For theAdvertising, the company has a

policy that the commercial should best communicate itsmessage toward its target markets. The

promotional planning of Nestle milk has taken theemotions of youngsters quite successfully.


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Promotion is handled by the marketing department but campaigns are launched throughan agency.

Promotion is done through the electronic media, bil lboards and print media(press).

Promotion Objectives

To project sales of Nestle Dairy Products

To create awareness among the masses about any new product of Nestle

To achieve brand loyalty


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Sponsoring Major and Rural Sport Region

Another mode of promotion for nestle is sponsoring major and rural sport events.Milo a brand from

nestle always sponsors sporting events like badminton tobowling to the Commonwealth Games. This

kind of promotion will always leadto the awareness of our customers.

Packaging

Since packaging is an integral part of product, nestle propose new packaging inthis marketing plan that

is not only attractive and durable, but also functional too.Our innovative packaging strive to ensure

every product packaging guaranteesfreshness, safety, convenience and whenever possible

environmentally friendly

too. Since packaging is an integral part of our product, we propose new packagingin this marketing plan

that is not only attractive and durable, but also functionaltoo. Our innovative packaging strive to ensure

every product packagingguarantees freshness, safety, convenience and whenever possible

environmentallyfriendly too.

Beyond homes, Nestle supplies its product to hotels, airlines, vending machines,


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quick-serve restaurants, supermarket, and retailers.

Distribution Planning

They distribute there products nationally and internationally through out the world.

Nestle are distributed using an indirect channel, that is, dealers. Nestle milk is sent to

warehouses after manufacture.

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Dealer

Nestle

Retailer


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They use intensive distribution for marketing coverage. Because its goals are to have

wide market coverage, channel acceptance and high total sales and profits.

Distribution is made nationally and internationally through

Motor carriersWaterways

Airways

Railroads

Through outthe country in every city and village.

It includes suppliers and retailers

Supply chain:

There are various departments

Raw material department

Finished goods department

From the finished goods department the product goes to the warehouses

nestlé was founded in 1866 by henri nestlé and is today the

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