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We are grateful to some prominent authors worldwide whose book I have consulted n the preparation of the assignment. We also thank to our course mates for their advice and comments to the success of the report. Thank You, old- 2010-3-13-059 On Behalf of the Group April 12, 2014 Shaft Aimed 43 Mikhail C/A, Dacha- 1212, Bangladesh. Subject: Submission of Assignment on “Marketing Strategy of Nestle. Dear Madam, With due respect, we are please to submit herewith the assignment on “Marketing Strategy of Nestle” that you are assigned us to prepare by August 4, 2011.
Thank you for assignment us such interesting topic. This assignment has enables us to apply our theoretical knowledge as enhanced our understanding of the subject. We look forward to carry out such studies in future also. Sincerely Yours, JahidhasanRaJiblshratAshrafI old- 2010-3-13-059. old- 2010-2-10-096. Table If Content old- 2011-1-10-439. old- 2010-2-10-345. Executive Summary Executive Summery Nestle foods was established in 1866. Since then it has continued to provide quality products to its customers with products and packaging innovations. Nestle Juices is world wide number one and fastest growing food company.
The company is trying their level best to differentiate themselves from other local companies and trying to in the competition in Juice industry by adopting the modern trends and technologies in both operational fields as well as in marketing of their products. In this detailed project we covered all most all the topics related to the marketing plan. First of all we presented the companies history and introduction which included the year of formation and certain steps the resulted in the today’s form of Nestle. We describes value chain analysis PEST analysis about nestle Juices and our brand competitor .
And the next step we do experiment about SOOT analysis who its effect on our brand . O we described MARKET analysis, competitor analysis, analysis buyer behavior , hierarchy of organization goals and the next step to STEP of nestle company we explain product strategy , price strategy and distribution strategy ,communication strategy and other things related to a marketing plan such as marketing budget and last of our project sale forecast for last 5 year.. Innovative technology, , Globalization, Matrices, , Financial Review, Porter’s five model, Industrial analysis, Five Was and Future Plans Of Company. 1. Introduction 1. Basic Information Regarding Nestle Nestles the largest food and nutrition company in the world, founded and headquartered in Bevy, Switzerland. Nestle originated in a 1905 merger of Anglo- Swiss Milk Company, established in 1867 by brothers George Page and Charles Page, and Fibrillatee Henry Nestle, founded in 1866 by Henry Nestle. The company grew significantly during the First World War and following the Second World War, eventually expanding its offerings beyond its early condensed milk and infant formula products. Today, the company operates in 86 countries around the world and employs nearly 283,000 people. AIM: Nestle (NEWS.
VS.) is aiming for long-term organic growth of 10 percent in its nutrition unit. The aim of manufacturing Nestleg’s product in global market will be earning maximum profit at minimum cost and capture the maximum share of the market. Goal: Nestles goal is to manufacture and market the company’s product 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 favor short term profit as the expense of successful long term business development. Market Growth: In 2009, consolidated sales were CHEF 107. 6 billion and net profit was CHEF 0. 43 billion.
Research and development investment was CHEF 2. 02 billion. Sales by activity breakdown: 27% from drinks, 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 and 2% from baby milks. Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from US), 16% from Asia, 21% from rest of the world. Objective and Issues: Taking an objective approach to an issue means having due regard for the known valid evidence (relevant facts, logical implications and viewpoints and human reposes) pertaining to that issue.
If relevant valid evidence is denied or falsified, an objective approach is impossible. An objective approach is particularly important in science, and in decision-making processes which affect large numbers of people. Capital issues: Nestle S. A. Has set up a new, wholly-owned subsidiary to manage the Group’s pension fund assets, which amounted to some CHEF 25 billion at the end of 2005. From 1 January 2007, Nestle Capital Advisers, the new Swiss-based company, will have a strategic advisory role and be a one-stop-shop for any services required by
Nestle pension funds around the world. Nestle Capital Advisers’ CEO will be Jean- Pierre Steiner, who will also continue as Nestleg’s corporate pension and risk director. Paul Pollen, SCOFF of Nestle S. A. , will serve as Chairman of the Board. In addition, Nestle Capital Advisers has established Nestle Capital Management, an operational asset management arm based in London, fully authorized and regulated by the UK Financial Services Authority. Nestle Capital Management will start operations from 1 January 2007, with 15 investment managers and a compliance officer. This new
Nestle asset management company will be able to provide cross-border investment and advisory services to any Nestle pension fund based in Europe or elsewhere. However, each individual Nestle pension fund will continue to be under the responsibility of the relevant local trustee board. Nestleg’s new, shared-services approach to Group pension fund management aims to lower costs and boost net asset performance while strengthening Nestle S. A. ‘s overview of Group pension assets. Key of Success: The quality, low price charging and marketing strategy will be the reason of working Enid to achieve success of Nestle.
Nestle has to focus on the mind of buyer and consumers by which their selling rate. Nestle will be able to achieve maximum profit. Besides taking some extra strategies the company will be able to reduce its cost of the product. 1. 2 History Of Nestle The company dates to 1867, when two separate Swiss enterprises were founded that would later form the core of Nestle. In the succeeding decades the two competing enterprises aggressively expanded their businesses throughout Europe and the United States. In August 1867 Charles A and George Page, two brothers from Lee
County, Illinois, USA established the Anglo-Swiss Condensed Milk Company in Champ. Their first British operation was opened at Chippendale Wiltshire in 1873. In September 1867, in Bevy, Henry Nestle developed a milk-based baby food and soon began marketing it. The following year, 1868, saw Daniel Peter begin seven years of work perfecting his invention, the milk chocolate manufacturing process; M. Nestleg’s was the crucial cooperation M. Peter needed to solve the problem of removing all the water from the milk added to his chocolate and thus preventing the product from developing mildew.
Henry Nestle retired in 1875, but the company, under new ownership, retained his name as Fibrillatee Henry Nestle. In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following year the Nestle Company added condensed milk, so that the firms became direct and fierce rivals. In 1905 the companies merged to become the Nestle and Anglo-Swiss Condensed Milk Company, retaining that name until 1947, when the name Nestle Aliment AS was taken as a result of the acquisition of Fabricate De Products Magi AS (founded 1884) and its holding company, Aliment AS of Kempt, Switzerland.
Magi was a major manufacturer of soup mixes and related foodstuffs. The company’s current name was adopted in 1977. By the early asses, the company was operating factories in the United States, United Kingdom, Germany and Spain. World War I created new demand for dairy products in the form of government contracts; by the end of the war, Nestleg’s production had more than doubled. After the war, government contracts dried up and consumers switched back to fresh milk. However, Nestleg’s management responded quickly, streamlining operations and reducing debt.
The sass saw Nestleg’s first expansion into new products, with chocolate the company’s second most important activity. Nestle felt the effects of World War II immediately. Profits dropped from IIS$20 million in 1938 to IIS$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 product, Nesses (“Nestleg’s Coffee”), which was a staple drink of the US military. Nestleg’s production and sales rose in the wartime economy. The end of World War II was the beginning of a dynamic phase for Nestle.
Growth accelerated and companies were acquired. In 1947 came the merger with Magi seasonings and soups. Crosser & Blackwell followed in 1950, as did Finds (1963), Lobby’s (1971) and Stouffer (1973). Diversification came with a shareholding in L’Orealal in 1974. In 1977, Nestle made its second venture outside the food industry by acquiring Alcoa Laboratories Inc. In 1984, Nestleg’s improved bottom line allowed the company to launch a new round of acquisitions, notably American food giant Carnation and the British confectionery company Renters Mackintosh in 1988, which brought the Wily Wonk Brand to Nestle.
The Brazilian president, Lull dad Silva, inaugurates a factory in Ferreira De Santa (Bah), in February of 2007. The first half of the asses proved to be favorable for Nestle: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pipelining (1997), Spillers Potatoes (1998), and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in June, Nestle merged its U. S. Ice cream business into Dryer’s, and in August a IIS$2. 6 billion acquisition was announced of Chef America, the creator of Hot Pockets.
In the same time frame, Nestle came close to purchasing the iconic American company Heresy’s, one of its fiercest confectionery competitors, though the deal fell through. Another recent purchase included the Jenny Craig weight loss program for IIS$600 million. In December 2005, Nestle bought the Greek company Delta Ice Cream for в?240 million. In January 2006, it took full ownership of Dryer’s, thus becoming the world’s biggest ice cream maker with a 17. 5% market share. In November 2006, Nestle purchased the Medical Nutrition division of Innovators Pharmaceutical for $2. 8, also acquiring in 007 the milk flavoring product known as Volatile. In April 2007, returning to its roots, Nestle bought US baby-food manufacturer Gerber for $5. 5 billion. In December 2007, Nestle entered in a strategic partnership with a Belgian chocolate maker Pierre Marooning. [8] Nestle agreed to sell its controlling stake in Alcoa to Innovators on 4 January 2010. The sale was to form part of a broader US$39. 3 billion offer, by Innovators, for full acquisition of the world’s largest eye-care company. On March 1, 2010, Nestle concluded the purchase of Karat’s North American frozen pizza business for $3. Billion. 1. Situation Analysis First of all nestle company want to know about the market situation. So the company collect information from the market. Market Description : All most all of the country consume the product of nestle. They are very careful about the quality and nutrition. There psalmist 6000 brand with a wide range of products. Like- they have baby foods (Nestle Cereals, NAN) breakfast cereals (Nestle Cereals) Dairy products (Milkman, INDO, Necessary, Nestle Yogurts, Everyday) Loco-creams (Movements, Dryer’s) Chocolate confectionery (Kit Kate, Smarmiest, Tofu) beverages (Ensnare, Mill, Nestle Juices)
Food service (Nestle Jumbo Bottle) Prepared foods (Magi, Powered Soups) bottled water ( Nestle Pure Life, Nestle Quarrel) Poet care (Pro Plan, Purina, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alp) Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical surgical Instruments) Competitor Review: MILLINER Nestles main international competitors include Milliner and Procter & Gamble. They also face competition in local markets or product ranges from companies such as Beresford, Contra, Deanne, General Mills, Hinkle, Mars, Inc. , Pepsico, Receipt Benefices and S. C. Johnson & Son. LANGUAGES:
Languages is the German Heartbreak subsidiary of the Anglo-Dutch company Milliner. They are the number one producer of ice cream products in Germany, and their main competitor is Nestle; a reflection of the relative positions of these two giants the global market. BRITANNIC INDUSTRIES: Britannic Industries Limited is an Indian company based in Kola that is famous for its Britannic and Tiger brands of biscuit, which are popular throughout the country. Britannic is has an estimated 38% market share. The Company’s principal activity is the manufacture and sale of biscuits, bread, Rusk, cakes and dairy products.
Despite this strong competition, Nestle can carve out a definite image and gain recognition among the targeted segments. The products what we are serving to our consumers is the critical point of differentiation for competitive advantage. 2. Marketing Segmentation 2. 1 Geographical Segmentation Nestle is the world’s largest food company that did marketing segmentation very well. They also base on the geographic segmentation. Here they consider the world region, country region and rural area. 1) World or country region:- Nestle understands the geographical different in needs and wants.