Nestle Marketing Strategies and History

ACKNOWLEDGEMENT

We are greatly thankful to our Mrs. Preeti Rajpal Singh, our Marketing professor, who introduced us to the nuances of marketing. We are also grateful for her constant guidance and support during the making of the project.

Our efforts would not have culminated successfully without the kind cooperation of Mr Sanjay Dhaneja, Mr raj Sexsena at the Nestle India Head office at Gurgaon who responded to all our queries and satisfied all our requests regarding the company's functioning.

The project provided a great learning experience- not only about the company, Nestle but also about how the Marketing theories are actually applied in the Industry.

INTRODUCTION

Henri Nestlé was born in Frankfurt in 1814, and moved to Vevey in his twenties, a merchant and small-scale inventor. He slowly gravitated towards foods and foodstuffs, experimenting with various recipes for baby-food to help mothers who were unable to breastfeed, and eventually came up with a concoction he called farine lactée, based, as he put it, on "wholesome Swiss milk and a cereal component baked by a special process of my invention". In 1867, he fed this to a premature baby boy whose mother was dangerously ill herself; the boy survived, and Nestlé's reputation skyrocketed. The following year he opened an office in London to cope with the quantity of orders, and within five years was exporting to South America and Australia. In 1874 he sold his company for a million francs. Nestlé bought out Anglo-Swiss Condensed Milk in 1905, and chocolatemakers Peter, Cailler and Kohler - pioneers in making milk chocolate - in 1929; although it had always concentrated on milk alone, it started to diversify. Benefiting from massive surpluses of coffee beans in the 1930s, Nestlé launched the world's first instant coffee - Nescafé - in 1938. More takeovers followed, of processed-food manufacturer Maggi in 1947, Crosse & Blackwell in 1950, and frozen-food giant Findus in 1963, broadening the range even further. By the mid-1960s, Nestlé was Switzerland's biggest company, a huge multinational incorporating over 200 factories around the world, with global management still based in Vevey.

Today, having swallowed up cosmetic company L'Oréal in 1974 and British confectioner Rowntree's in 1991, Nestlé employs almost a quarter of a million people, and buys up more than ten percent of the world's entire crop of coffee and cacao beans. However, its most controversial product is, strangely, its original one: baby formula. With a marketing policy in developing-world countries that has been deemed by many to be aggressively profit driven at the expense of consumer health, Nestlé has been riding a storm of anger in recent years from children's organizations and health watchdogs in both the developed and the developing world. Many of these groups continue to lobby for boycotts of Nestlé products unless the company takes a role in helping educate mothers in developing-world countries to breastfeed whenever possible, and to buy formula only as a last resort. The company maintains its ads don't dissuade mothers from breastfeeding, and are merely offering them a choice. The dispute shows few signs of resolution and, frankly, little chance of toppling such a mighty global industrial entity as Nestlé.

BACKGROUND

Nestle was promoted by Nestle Alimentana, Switzerland, a wholly owned subsidiary of Nestle Holdings Ltd., Nassau, Bahama Islands

NESTLE-WORLDWIDE

Nestle S A Switzerland, is one of the leading companies in the global foods industry. The principal activities of the group encompass beverages (with Nescafe as the flagship brand), milk products, processed foods, cooking aids, bakery products, chocolates, confectioneries, pharmaceutical products (ophthalmic, surgical instruments etc).

Nestle has a presence in 83 countries worldwide. It has a total number of 509 factories out of which 220 are located in Europe, 153 in America and 136 in Africa, Asia and Oceania

Nestle headquarter , Switzerland

NESTLE INDIA

Nestle was incorporated as a limited company in 1959. In 1978, the Company issued shares to the Indian public to reduce its foreign holdings to 40%. Its name was changed from Foods Specialties Ltd. to the current name in 1981.The parent held 51% stake in the company as at 2003 end. It has FIPB approval to hike stake by 10% and has been gradually acquiring shares from the open market. Parent stake in the company as at 2003 end stood at 53.8%. The parent plans to continue hiking stake through open market purchases.

. Nestle is one of the oldest food MNC operating in India, with a presence of over a century. For a long time, Nestle India's operations were restricted to importing and trading of condensed milk and infant food. Over the years, the Company expanded its product range with new products in instant coffee, noodles, sauces, pickles, culinary aids, chocolates and confectionery, dairy products and mineral water

PLANT LOCATIONS

 Nestle started its manufacturing operations with Milkmaid in 1962 at Moga factory. Manufacturing of Nescafe started in 1964 at the same factory.

 Cherambadi in Tamil Nadu, for manufacture of infant foods, coffee etc.

 Nanjangad (Karnataka) factory in 1989

 Samlakha (Haryana) factory in 1992.

 The Ponda (Goa) factory started operations in 1995.

 Bicholim in Goa started operations in 1997