1

NAME & I.D. OF THE GROUP MEMBERS

SL NO. NAME OF THE STUDENT IDENTITY NUMBER

1 K.M.ASIF IQBAL 131-087-0-135

2 MD.RIYAD SHEIKH 131-091-0-135

3 S.M.NAZMUL ALAM 131-092-0-135

4 MD.HASAN MOLLA 131-093-0-135

5 SOHAG REZA 131-094-0-135

REPORT SUBMISSION DATE

12TH FEBRUARY 2014

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Selection of Company
According to the advise of our honurable teacher Salman Hasan,We have to
select two multinational company.

1.Unilever Group

2.Nestle Internetional Ltd.

And finally by the the discuss of our group member we have to selected the
worlds no 1 company-NESTLE
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Origin of the Report:

To expand the practical knowledge by implementing theoretical knowledge through
the analysis program that would make a student to become a competitive with the
world’s marketing sector. This program not only increases the knowledge but also give
the idea about organizational activities before entering into an organization.BGMEA
University of Fashion & Technology is one of the reputed private university in
Bangladesh, has designed the curriculum of AMT,KMT & FDT course such way that
international graduates will be produced. The report has been prepared as a
mandatory requirement of our course MKT-1203(Principle of Marketing). It is the
summarized outcome of what we have learned till now in the sectors Principle of
Marketing.
This summary presents a clear vision of the report with different titles. After we
identify an existing company, which is Nestle, International Ltd. In our report we
mainly deal with the new product line and deigned the packaging and leveling of the
fruit juice. This report will help us to determine the in-depth information and stand
out position in the market.
We sum this philosophy up in four simple words – Good Food, Good Life - reflecting
in everything we do and extending beyond what we make. On our path to being the
leading food, nutrition, health and wellness company, we will continue to ensure that
we do everything we can to build, nurture and develop family and community
wherever we are.
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Main Contents Of the Report

SL No Name of Topic Page No

1 Introduction 4
2 Evolution of Nestle 5
3 General Principles of Nestle 6
4 Organizational Principles of Nestle 6
5 Major 10 Principles of Nestles Business Operation 7
6 Nestles Roadmap to Good Food Good Life 10
7 Brands & Products of Nestle 13
8 The Most Favourite Milkbar Range 21
9 Marketing Strategy & Segmentation Of Nestle 22
10 Marketing Mix of Nestle 28
11 Organizational Structure of Nestle 30
12 Competitors With Nestle 34
13 Quality & Safety 36
14 Nestle Quality Management System 37
15 Vision of Nestle 38
16 Conclution 40
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Introduction of Nestle
NESTLE, is one of the top class & leading products manufacturing company in worlds,
which starts it’s operation in 1866 by Henri Nestlé and is today theworld's biggest
food and beverage company. Nestlé employ around 250,000 people from more than
86 countries and have factories or operations in almost every country in the
world.The history of Nestlé began in Switzerland in 1867 . Henry Nestle, a chemist
from Frankfurt who had settled in Vevey, became interested in infant feeding. To
satisfy a clear need , he developed and produced a milk-based food for babies whose
mothers could not nurse them. The new product soon became well-known worldwide
under the name of “Farine Lactee Nestle ( Nestle Milk Food )”.In order to expand into
a broader category and meet more people’s needs, the Nestle Company’s first
diversification occurred in 1905 when it merged with the Anglo- Swiss Condenced
Milk Company (1866). Today, processing milk food is still the company’s chief activity
together with the other products of Nestle family such as chocolates, instant milk-
based drinks culinary products, frozen foods, ice cream, dairy products and infant
foods. Nestle is still primarily concerned with the field of nutrition, but it has also
acquired interest in pharmaceuticals and cosmetics industries. As a result of the
company’s initiative and bold activity, it has grown into a huge organization, nearly
500 factories worldwide. Nestle products are now widely distributed on all continents
and sold in more than 100 countries.
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Evolution of Nestlé: -

1867: Henri Nestle founded the company in vevey, Switzerland.

1898: Nestle purchases its first factory outside of Switzerland- viking Milk factory in
Norway.

1905: Nestle merges with Anglo – Swiss condensed Milk company.

1929: Nestle merges with peter-Cailler kohler chocolates Suisses S.A.

1938: Nestle launches Nescafe – the world’s first instant coffee.

1947: Nestle merges with Alimentana S.A. with the brand Maggi.

1962: Nestle purchases Findus.

1974: Nestle becomes a significant shareholder in the cosmetics company L’Oreal.

1977 :Nestle purchases Alcon , manufacture of eye care products and kits.

1985 :Nestle purchases the food company carnation.

1988: Nestle purchases the confectionary company Rowntree Mackintosh and pasta
company Buitoni –Perugina.

1992: Nestle purchases the minarel water company Perrier.

1998: Nestle purchases Spillers pet foods business.

2000: Nestle sells the findus brand in all countries except for Switzerland.

2001: Nestle merges with Ralston Purina, the premier petfood company in North
America, and with unique expertise in the dry dog food area.
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General Principles Of Nestle’

 Nestle is more people and product oriented than systems oriented. Systems are
necessary and useful but should never be an end in themselve. Nestle is committed
to create value for its shareholders. However, Nestle does not favour short-term
profit and shareholder value maximization at the expense of long-term successful
business development. But Nestle remains conscious of the need to generate a
reasonable profit each year.
 Nestle is as decentralized as possible within the limits imposed by basic policy and
strategy decisions, as well as the group-wide need for co-ordination and
management development.
 Nestle is committed to the concept of continuous improvement of its activities,
thus avoiding more dramatic one-time changes as much as possible.

Nestle organizational principles

Nestle is in favour of :
 Flat organizations with few levels of management and broad spans of control,
including project teams and task forces. Networking and horizontal
communication are encouraged without blurring the authority of the managers in
the decision-making process. These principles aim to make the organizational
structure and working methods more flexible and efficient, without undermining
the basic hierarchy.
 Clear levels of responsibility in the management structure. It is to avoid too many
hierarchical levels and limit staff work to those tasks necessary for the support of
line management.
 Well defined ling and function responsibilities and their inter-linked character.
Nestle gives line responsibility the edge over functions in order to assure
operational speed and responsibility. However, if functional departments are
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overruled and feel strongly about a line decision, both parties should discuss the
question or refer it to the next higher level for resolution.
 Having at every level of the organization a team with a leader and not a team as a
leader (teamwork with responsible leadership).

The 10 Principles of Nestles Business Operations

Consumers
1 Nutrition, Health and Wellness 2 Quality assurance and product safety

3 Consumer communication 4 Human rights in our business activities

People of Nestle
5 Leadership and personal responsibility 6 Safety and health at work

Suppliers and customers

7 Supplier and customer relations 8 Agriculture and rural development

The environment
9 Environmental sustainability 10 Water

Details of This 10 major Principles

1Nutrition, Health and Wellness

The core aim of Nestle is to enhance the quality of consumers’ lives every day,
everywhere by offering tastier and healthier food and beverage choices and
encouraging a healthy lifestyle. This company express this via our corporate proposition
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2Quality assurance and product safety

Everywhere in the world,the Nestlé name represents a promise to the consumer that
the product is safe and of high standard

3Consumer communication
Nestle is committed to responsible, reliable consumer communication that empowers
consumers to exercise their right to informed choice and promotes healthier diets. It
respect consumer privacy.

4Human rights in our business activities

Nestle is fully support the United Nations Global Compact’s (UNGC) guiding principles on
human rights and labour and aim to provide an example of good human rights and
labour practices throughout our business activities.

5Leadership and personal responsibility

The success of Nestle is based on its People people. They treat each other with respect
and dignity and expect everyone to promote a sense of personal responsibility. They
recruit competent and motivated people who respect our values, provide equal
opportunities for their development and advancement, protect their privacy and do not
tolerate any form of harassment or discrimination
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6Safety and health at work

Nestle is committed to preventing accidents, injuries and illness related to work, and to
protect employees, contractors and others involved along the value change.

7Supplier and customer relations

Nestle requires its suppliers, agents, subcontractors and their employees to
demonstrate honesty, integrity and fairness, and to adhere to the non-negotiable
standards. In the same way, Nestle committed to its own customers.

8Agriculture and rural development

Nestle contribute to improvements in agricultural production, the social and economic
status of farmers, rural communities and in production systems to make them more
environmentally sustainable.

9Environmental sustainability
Nestle commit itselves to environmentally sustainable business practices. At all stages of
the product life cycle its strive to use natural resources efficiently, favour the use of
sustainably-managed renewable resources, and target zero waste.
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10Water
Finaly it committed to the sustainable use of water and continuous improvement in
water management. It recognise that the world faces a growing water challenge and
that responsible management of the world’s resources by all water users is an absolute
necessity.

Nestlé Roadmap to Good Food, Good Life

Nestlé’s objectives are to be recognised as the

world leader in Nutrition, Health and Wellness,
trusted by all its stakeholders, and to be the
reference for financial performance in its industry.

This company believe that leadership is not just

about size; it is also about behaviour. Trust, too, is
about behaviour; and it recognise that trust is earned only over a long period of time by
consistently delivering on its promises. These objectives and behaviours are
encapsulated in the simple phrase, “Good Food, Good Life”, a phrase that sums up our
corporate ambition.

The Nestle Roadmap is intended to create alignment for our people behind a cohesive
set of strategic priorities that will accelerate the achievement of our objectives. These
objectives demand from our people a blend of long-term inspiration needed to build for
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the future and short-term entrepreneurial actions, delivering the necessary level of
performance.

Watch a short animation highlighting the company’s performance over the past year
and outlining Nestlé’s ambitions for the future:

Competitive advantages

 Unmatched product and True competitive advantage comes from a

brand portfolio combination of hard-to-copy advantages throughout
 Unmatched R&D capability the value chain, built up over decades.
 Unmatched geographic There are inherent links between great products and
presence strong R&D, between the broadest geographic
 People, culture, values and presence and an entrepreneurial spirit, between
attitude great people and strong values.

Growth drivers

 Nutrition, Health and These four areas provide particularly exciting

Wellness prospects for growth. They are applicable across all
 Emerging markets and our categories and around the world.
Popularly
Positioned Products Everything we do is driven by our Nutrition, Health
 Out-of-home and Wellness agenda, Good Food, Good Life, which
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 Premiumisation seeks to offer consumers products with the best

nutritional profile in their categories

Operational pillars

Nestlé must excel at each of these four inter-related

 Innovation & Renovation core competences. They drive product development,
 Wherever, whenever, renewal and quality, operational performance,
however interactive relationships with consumers and other
 Consumer engagement stakeholders and differentiation from our
 Operational efficiency competitors.

If we excel in these areas we will be consumer-

centric, we will accelerate our performance in all key
areas and we will achieve excellence in execution.

We are seeking to achieve leadership and earn that trust by satisfying the expectations
of consumers, whose daily choices drive our performance, of shareholders, of the
communities in which we operate and of society as a whole. We believe that it is only
possible to create long- term sustainable value for our shareholders if our behaviour,
strategies and operations are also creating value for the communities where we
operate, for our business partners and, of course, for our consumers. We call this
“Creating Shared Value”.

We are investing for the future to ensure the financial and environmental sustainability
of our actions and operations: in capacity, in technologies, in capabilities, in people, in
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brands, in R&D. Our aim is to meet today’s needs without compromising the ability of
future generations to meet their needs, and to do so in a way which will ensure
profitable growth year after year and a high level of returns for our shareholders and
society at large over the long-term.

Brands & Products of Nestle:

Most people know us through our brands. Our portfolio covers almost every food and
beverage category – giving consumers tastier and healthier products to enjoy at every
eating occasion and throughout life’s stages including times of special nutritional need.
Here is a sample of some of our brands.

Baby foods : Cerelac, Gerber, Gerber Graduates, NaturNes, Nestum

Bottled water : Nestlé Pure Life, Perrier, Poland Spring, S.Pellegrino
Cereals : Chocapic, Cini Minis, Cookie Crisp, Estrelitas, Fitness, Nesquik Cereal
Chocolate & confectionery :
Aero,Butterfinger, Cailler, Crunch, KitKat, Orion, Smarties, Wonka

Coffee : Nescafé, Nescafé 3 in 1, Nescafé Cappuccino, Nescafé Classic,Nescafé Decaff,

Nescafé Dolce Gusto, Nescafé Gold, Nespresso

Culinary, chilled and frozen food :

Buitoni, Herta, HotPockets, LeanCuisine, Maggi, Stouffer's, Thomy

Dairy : Carnation, Coffee-Mate, La Laitière, Nido

Drinks : Juicy Juice, Milo, Nesquik, Nestea
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Food service : Chef, Chef-Mate, Maggi, Milo, Minor’s, Nescafé, Nestea, Sjora,Lean
Cuisine, Stouffer's

Healthcare nutrition : Boost, Nutren Junior, Peptamen, Resource

Ice cream : Dreyer’s, Extrême, Häagen-Dazs, Mövenpick, Nestlé Ice Cream
Petcare : Alpo, Bakers Complete, Beneful, Cat Chow, Chef Michael’s Canine
Creations, Dog Chow, Fancy Feast, Felix, Friskies, Gourmet,Purina, Purina ONE, Pro Plan
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Infant Food :
The production of infant food goes mothers were going out to work, and
right back to the origins of the Nestlé had no time to breast feed.
Company. Henri Nestlé’s ‘Farine
Lactée’ was the first product to bear
the Nestlé name; it was the first
industrially-produced infant food,
based on ‘wholesome cow’s milk’
mixed with cereals. In the middle of
the nineteenth century, one in five
children born in Switzerland in the
working class died before the end of
their first year. Increasing numbers of

Nestle Breakfast Cereal:

Cereals have been a crucial part of

mankind’s morning meal since time
immemorial. It wasn’t until the
19thcentury that scientific research
and technological innovation, and the
influence of a group of American
health reformers, gave rise to the
crunchy foodstuff known as breakfast
cereal. Cereals and milk are still a firm
base for good nutrition.
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The First Cereal for Infants :

It was against this background that
Nestlé had developed his infant food
for young children. In 1867 for the
first time Nestle’s new infant food
was tested on a 15-day old boy who
was very ill. The boy was born
prematurely and was refusing his
mother’s milk and all other types of
nourishment. Nestlé’s new food
worked, and the boy survived. From
the very beginning, Nestlé’s product
was never intended as a competitor
for mother’s milk. Nestle believes that
during the first months, the mother’s
milk will always be the most natural
nutrient, and every mother able to do
so should herself suckle her children.”
By the end of nineteenth century the demand for infant food was so great that it was
soon being sold throughout Europe, Russia, USA and Australia. The factors that made
it a success then — quality and nutritional value — are still as valid today for the wide
range of infant formula, cereals and baby food manufactured by Nestlé. The World
Health Organization (WHO) recognizes that there is a legitimate market for infant
formula, when a mother cannot or chooses not to breast feed her child. Nestlé
conforms its infant food formula to the principles and aim of the WHO. Nestlé’s
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expertise as the world’s leading infant food manufacturer, gained over more than
125 years, is put at the disposal of health authorities, the medical profession and
mothers and children everywhere.

Snacks And Ice-Cream And Chocolate:

The story of chocolate began in the New World with the Mayans, who
drank a dark brew called cacahuaquchtl. Later, the Aztecs consumed chacahoua and
used the cocoa bean for currency. In 1523, they offered cocoa beans to Cortez and
introduced chocolate to the Old World, where it swiftly became a favorite food
among the rich and noble of Europe.

Milk and Dairy Products:

There is plenty of evidence that milk has always been one of mankind’s
essential food. But because milk is highly perishable, the storage and shipping of dairy
products was always a problem. An American, Gail Borden changed this concept
inventing sweetened condensed milk. Soon after,Henry Nestle launched his company
into condensed milk business. Nestle’s rival Anglo- Swiss company merged with
Nestle in 1905.
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Pet Care:
Nestle entered the pet care business with the purchase of “Carnation” in 1985
and consolidated its position in Europe with the acquisition of the “Spillers” brand in
1998. “Friskies” a product by
Carnation developed in USA since
1930 and in Europe and Asia since
1960’s. Nestle’s international network
in technology, distribution and
investment has helped expand the
Friskies brand in the international
market widely. Today Nestle’s global
market for cat and dog food exceeds
$25 billions.

Cooking Items:

The need for easy to prepare food was felt back more than a century. With industrial
revolution women got more involved in jobs and found they have less time to
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prepare meals. So an alternative was needed. Julius Maggi, an inventive and capable
businessman created a vegetables food product that was quick to prepare and easy
to digest. That product is widely known as ‘Maggi’ which proved to be the best -
known brand in the history of the food industry. Maggi merged with Nestle in1947.
Now Nestle is producing not

only powdered soups but also “Bouillon Cubes”, Sauces, flavorings and a wide variety
of condiments.

Mineral Water:

One of the recent additions to the Nestle Company is mineral water named “Perrier
Vittel S.A.” In fact, Perrier is not the first water associated with the Nestle name. The
products manufactured by the factory in 1843 were carbonated mineral water and
carbonated lemonade. For the production of this mineral water a spring at vergeze
had been utilized for more than two thousand years.
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Hot And Cold Beverage:

In 1937, after eight years of research, scientists at Nestlé’s research

laboratory formulated a powdered coffee product. It was introduced in 1938 under
the brand name Nescafé. It became so popular during World War II that for one full
year the entire output of the Nescafé plant in the USA (more than 1 million cases)
was reserved for military use only. Since then, Nescafé has become one of the world’s
best-known brands. With more than 3,000 cups consumed every second, Nescafé
has become the world’s leading coffee brand. In addition,
Nestlé is a major producer of chocolate-based and malted drinks. Its leading brands,
Nestlé Nesquik, Nestlé Milo and Nescau are very popular with a growing number of
young people in both developed and emerging markets. The Company’s other
beverage products include roasted coffees — for example Dallmayr, Zoegas and
Loumidis in Europe — as well as fruit juices. Nestlé’s ready-to-drink beverages Nestea
and Nescafé are sold in various forms (cans, bottles) frequently associated with the
Coca-Cola company.
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The Most Favourite Milkybar range

The Milkybar range consists of:

Milkybar bars – Small, Standard and Chunky
Milkybar Buttons – Small and Sharing bags

Maggie noddles range:

 Original Flavour  Laksa Lemak (discontinued)
 Chicken  Tom yam
 Curry (a healthier alternative is also  Chicken & Corn
sold in supermarkets)  Beef
 Kari Letup (“Explosive” Curry) in  Oriental
Malaysia
 Masala  Dal Atta noodles
 Prawn  Asam Laksa
 Dal Sambar (whole wheat noodles)
 Cheese  Sup Tulang (bone soup) (in
 Pizza (only in Saudi Arabia and Malaysia)
South Africa, was available for a
period of time in Australia)  Tomato
 Chatpata
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Marketing Strategy & Segmentation of Nestlé

The strategic plan defines the company’s overall mission and objective and hopes
to achieve company’s objectives.Through market segmentation , targeting and
positioning the company decides which customers it will serve & how.The
company also designs a marketing mix made up of factors under it control
product,price,place & promotion.

Nestle’s basic strategy is to cover all of the countries over the world.That’s why?
Because They want to keep babies & childerns healthy and ensure their proper
nutrition.That’s why majority of their products are baby food products.They also
target new generation to build a strong relationship by providing various food
products.

In the report , we are going to focus on Marketing Stratigies of Nestle is to

segment,target the potential customers & to positioning of their profit oriented
products. Their segmentations, targeting,positioning process are given below.

They want to move customers towards their products. That’s why they are offering
new products continuously. They also arrange many social competitions for babies
to entire their mind.

In this report we are going to focus Marketing Strategies of Nestle is to segment,

target the potential customers and to position of their profit oriented products.The
revelent information is given below.
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The marketing concept calls for understanding customers & satisfying their needs
better than competitors do.But different customers have different needs and it
rarely is possible to satisfy all customers by treating them alike.Market
segmentation is the identification of portions of the market thet are different from
one other.Segmentation allows the firm to better satisfy the needs of its potential
customers.

1.Clearer understanding of the needs and wants of selected customer group.

2.More effective positioning.
3.Greater precision in selecting promotional vehicles and techniques.

Geographic:
Weather: Nestle segmented its market for Nesscafe Ice based on the geographic
weather ,hot and cold.

Nescafe Ice : A coffee which can be consume with ice.During hot season consumers
consume this coffee with normal or cold water with cube to bring freshness in their
mind.
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Lactogen : Nestle brings full cream milk powder in our world.It gives baby
proper nutrition . Lactogen 1 is for babies whose age less than 7 months and 4 is
for babies whose age is below 18 months.

Income: Nestle segmented their market based on customers income in an effective

way.
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Marketing Mix of Nestle

“Marketing is the process of planning and executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges
that satisfy individual and organizational goals. While strategy is the action
plan to do something and hence”

Marketing Strategy is the managerial process of developing and maintaining a viable fit
between the organization’s objectives, skills and resources and its changing market
opportunities. The aim of marketing strategy is to shape the company’s business and
products so that they yield targeted profit growth.

Marketing strategy include 4 P’s strategy i.e. Product, Price, Place and Promotion
strategies.

Product is something that is offered to the market. Nestle’s product strategy

studies show that they are positioning the product with respect to its attributes that is
safe, pure, refreshing and healthy water. Nestlé also does product line expansion;
recently it has offered a 0.25 liter bottle of Nestle in the market. It’s also using the
company name with its product name i.e. Nestlé Pure Life. NPL round shape and
elegance of the bottle are instantly recognizable. Quality is cornerstone of NPL success.
Nestle people say: “Quality is our more successful product and it is key to our success
today and tomorrow.”
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In Price strategy, Nestle has adopted the strategy of non-price competition. It is

offering one price for all over the world. It also keeps the check on distributors to
maintain single price of Nestle. It offers trade discounts to its distributors.

Placement is the distribution of the product to its customers at right time, in right
quantity, at right price and at right place. To ensure this, channel adopted by the Nestlé
for distribution of Nestle is as follows:

Producer Wholesaler Retailer Consumer

NPL comes under the category of FMCG, so for this the timely supply is very important
that’s why Nestlé is following intensive distribution strategy.

Promotion is the very important and crucial element of marketing strategy as

through it the company establishes its image in the minds of the customers. Nestle is
promoted by using different ways of promotion. Advertisement is done through TV,
radio, billboards, newspapers and magazines. Current advertising slogans are that is
trust, hope and happiness and ” Good Food,Good Life.” Nestlé also conducts the
tradeshows, concerts, events, sponsorships, and discounts for sales promotion. For
establishing public relations, Nestlé distributes its newsletters, annual reports, calendars
and diaries, lobbying, donation for charitable and civic events. For the victims of
8th October 2005 earthquake, Nestlé has donated 90 trucks, which were containing
different foods items, and was one of them which is around Rs. 2 Billion. The Nestle
organized its teams to distribute products to the effected areas and all employees
contributed from top to bottm.
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Organizational structure of Nestlé :

Sales Department
Sales department is a primary source of getting the information about the market.
Nestles workers are actually visit the market and find out that who are the competitors,
and what strategies they are adopting. They also collect the complaints of the
customers and make sure the availability of the product in the markets.
 32

Customer Service Department

For Every product there is customer service department. This is head office based
department i.e. every head office has its own department.

In this department, customer’s complaints are collected which are gathered through the
sales force or directly submitted by the customers. Then batch number is assigned to
these complaints and is transferred to the Marketing Department. If Marketing
Department can’t be able to solve the problem then these complaints moved to the
Quality Assurance Department, which is working in the Factory.

Nestlé believe in maintaining regular contact with their consumers. This applies both to
how it presents its products and to how it addresses its consumers' questions and
concerns. When Henri Nestlé prepared his first boxes of infant formula for sale, he put
his address on the packages so people would know where to go if they had questions.
Today, Nestlé’s Consumer Relationship Panel with the words "Talk to Nestlé" expresses
the same commitment.

This is why Nestlé have a worldwide Nestlé Consumer Services network devoted to
caring for consumers. The employees have expertise in a wide range of areas such as
nutrition, food science, food safety and culinary expertise. They provide the prompt,
efficient and high quality service that consumers expect from Nestlé. In addition,
employees are taught to talk with consumers and above all, to listen. Listening helps to
understand what people want. Nestlé uses the insights gained from relationships with
consumers to drive product development.

Nestlé cares for its consumers because its success depends on meeting their needs and
expectations. Through listening and understanding, it can make products that they will
want to use all through their lives.
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Research and Development Department

In Nestlé, R&D departments are localized. Its head office is in Switzerland. Nestlé has
divided the whole world into 3 zones each has its own R&D.

1. America

2. Europe

3. A.O.A. (Asia Oceania Africa)

The R&D in America Zone is in America itself, in Europe Zone, it is in France and in A.O.A.
Zone it is in Australia.

The customer complaints are forward to the R&D where research is conducted. The
results of the research and decisions are then transferred form R&D to localized offices.

Suppliers and distributors

To know about the market Nestlé has established the close relationship with their
suppliers who provide the raw material and the distributes who distribute the product
in the market. As these both have an up-to-date knowledge about the market as they
have a close interaction with the customers and also with the competitors.
 34

There is a chain of command that extends from upper organization levels to the lowest
levels and clarifies who reports to whom. The orders move from upward to downward
and suggestions move downward to upward direction. The continuous improvement
section is made for this purpose. It encourages employees to give their suggestions and
share the new ideas. The jobs are formalized; there are explicit job descriptions,
numerous organizational rules, and clearly defined procedures covering work
procedures. But in spite of formal rules and regulations, Nestlé keeps on changing to
keep a pace with the changing environment. So, it is strict but not rigid organization. In
effort to be more flexible and responsive, there has been distinct trend in this
organization toward decentralizing decision-making.
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COMPETITORS WiTH NEsTLE

Main Competitors – Competitive Analysis

Nestle Pure Life has two very strong competitors in the market, which are trying to
compete with Nestlé’s water brand using innovative strategies and approaches. These
are:

 Aquafina Water is bottled by the Pepsi Co.

 The other is Dasani which is bottled by Coca Cola Company.

Pepsi’s Aquafina’s purification of water involves the processes of charcoal filtration and
reverse osmosis. In an effort to have a competitive edge in the market they have
extended their brand to include six different varieties of fruit flavored flat water and
two varieties of carbonated water that are also fruit

flavored. Pepsi’s Aquafina water is also available in different countries with different
brand names. Pepsi has been striving hard to penetrate Nestle Pure Life’s market with
different strategies (Hanson, 2012).

9.

On the other hand, Coca Cola’s Dasani process their water through reverse osmosis
process, but once the contaminated or other materials are removed they add special
blend minerals to their water which gives its characteristic crisp flavor. They have other
flavored brands but the company has limited itself to four different flavors. Coca Cola’s
 36

bottle water is present in different countries with different brand names i.e. Kinley
water etc.

Although Nestle Waters bottles their product in polyethylene terephthalate (PET), this
material is 100% recyclable and does not have BPA (Bi-Sphenol A) which is known to be
organic compound used to make polycarbonate plastic. This has been declared as toxic.
In addition their bottles are an average of 30% lighter.

Nestle waters has so many brands that they can accommodate even the most
demanding customer. The line of Nestle Pure Life has flat water, flavored water and
carbonated water. Nestle Pure Life is quite different from the Aquafina and Dasani, and
Nestle has used different brand promotion strategies to promote their product. The
quality provided by Nestle Pure Life has built a strong trust and long lasting relationship
between company and consumers of its products.
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Quality and Safety

Our commitment to consumers

Quality and Safety for our consumers is Nestlé’s top priority. This applies to our entire
portfolio, from foods and beverages to all our systems and services.
Quality assurance and product safety is one of Nestlé’s 10 Corporate Business Principles
(pdf, 1 Mb), which form the foundation of all we do.

Nestlé Quality Policy

Nestles actions to ensure quality and food safety are guided by the company’s Quality
Policy which describes our commitment to ------
 Build trust by offering products and services that match consumer expectation and
preference
 Comply with all internal and external food safety, regulatory and quality requirements
 Gain a zero-defect, no-waste attitude by everyone in our company
 Make quality a group-wide objective
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Nestlé Quality Management System

Our Quality Management System is the platform that we use globally to guarantee food
safety, compliance with quality standards and to create value for consumers. Our
internal Quality Management System is audited and verified by independent
certification bodies to prove conformity to internal standards, ISO norms, laws and
regulatory requirements.
From farm to fork : on farms. We have a
long history of working together with
farmers in rural communities to help
them improve the quality of their
produce and adopt environmentally
sustainable farming practices.

Our Quality Management System starts

The Quality Management System not only ensures our ongoing access to high quality
raw materials. It also enables farmers to protect or even increase their income. Often
the standard of living of entire rural communities is raised as a result. The system helps
address key global environmental and social issues.
Quality by design
Quality is built in during product development according to the requirements of the
consumers and following all food safety and regulatory requirements. Nestlé’s R&D
network applies in this “Quality by design” to all of our products.
Good Manufacturing Practices
We apply internationally recognized Good Manufacturing Practices (GMP) to ensure
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quality and food safety. GMP covers all aspects of manufacturing, including standard
operating procedures, people management and training, equipment maintenance, and
handling of materials.

Vision of Nestle :

DYNAMIC GLOBAL NETWORK: Behind every Nestlé product is a team of people

committed to creating safe products of the highest quality.

People understand that food is a source of nourishment and satisfaction, but also
pleasure, health, happiness and peace of mind. They are increasingly aware that their
food and beverage choices can impact their quality of life and affect the lives of others.
Innovation has been at the heart of our
company since its beginning. Ever since
Henri Nestlé invented Farine Lactée to
alleviate infant mortality, we have been
dedicated to enhance people’s lives.
Each day we strive to make our products
tastier and healthier choices that help
consumers care for themselves and their
families. This would not be possible
without our unmatched R&D capability,

We have the largest R&D network of any food company in the world, with 34 R&D
facilities (3 Science & Research centres and 31 Product Technology Centres
and R&D centres worldwide), and over 5,000 people involved in R&D.
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Behind every one of Nestlé’s products there is a team of scientists, engineers,

nutritionists, designers, regulatory specialists and consumer care representatives
dedicated to earn our consumers’ trust with safe products of the highest quality: at
Nestlé, safety and quality are non-negotiable.
Whether it is in terms of convenience, health or pleasure, we are able and committed to
create trustworthy products, systems and services that contribute to improving the
quality of consumers’ lives.

At Nestlé we are committed to delighting our consumers with healthy food and
beverages of the highest quality.

The role of R&D in quality and safety :

The R&D organisation includes a dedicated Quality and Food Safety Network. This has a
number of different elements such as:
 An Early Warning Network, which identifies and helps prevent potential safety issues
 A Microbiological Safety Network that provides fast and reliable microbiology safety
assessments.
 An Analytical Methods Network to develop and improve analytical standards
 A Global Analytical Laboratories Network. Nestlé has 29 regional testing labs that
provide analytical data and Quality Assurance support to operations and R&D.
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CONCLUTION
For a company that will turn one hundred in a decade, Nestle has almost tried all of
the strategies there can be. Nestle company has expanded internationally, helped
countries’ economies grow, be environmentally conscious and create joint ventures
with other companies in which enhanced Nestlé’s and these companies’ performance
positively. Followed are a couple of recommendations in which might enhance their
performance which are:1.Exploit lands in poor countries, 2.Avoid actions that are
bound to fail, 3.Invest on R&D, 4.Joint ventures.
Even though the future can’t be told by looking at numbers and financial performance,
companies should extrapolate what might happen and look at all the angles of
matters in both ways, positively or negatively. This action is crucial in the business
field in order to come up with a plan to overcome these obstacles and enhance their
strengths for a better performance in the market. This report outlaid, evaluated and
analyzed Nestlé’s performance in the market along with presenting recommendations
that might help the company upgrade their activities in the market.
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