CEO: Laurent Freixe

Industry: Food processing

Founded : 1866; 159 years ago (for the Anglo-Swiss
Condensed Milk Company branch)

EXECUTIVE SUMMARY
Nestle is undoubtedly one of the most proficient food
companies in not only Pakistanbut all over the world. The
employees at Nestle have finagled to retain their standardsto the most high-pitched level possible in the
market. They make sure of the fact thatthe products of Nestle are definitely the BEST TO USE. Nestle has
an assortment ofproducts to offer and they all are the best of their [Link] this project our main
concern was to study the strategies followed by Nestle in
regard to the 4P’s of marketing. We got some information from internet about the
overall history and background of the company. About other information we visitedtheir Head Office
and met there with Mr. Dr. Usman Iqbal (Senior Group Brand ManagerNestle).It was quite nice of him to
provide us with all the relative information. We triedto cover all the main aspects of our course starting
from some basic concepts to thecomplex [Link] days for any company to progress in the market its
marketing strategies are ofsupreme importance and that is the reason we opted for Nestle to try and
cognize whatexceptional they were doing to maintain their top position in the market.
InFinding and Analysis
we have described the marketing techniques observed atNestle and then also did our analysis on these
observed [Link] the end we made some
recommendations based on our analysis to make themimprove their overall revenue [Link] lastly we
acknowledged all those people who helped us in pursuing this project

WORLDWIDE PRESENCE

Today, Nestlé SA is the world's largest Food and Beverages Company, and a globalleader in health,
nutrition and wellness. Consumers around the world, from villagesquares in Nigeria to the skyscrapers
of New York and Chicago, are united by the Nestlépromise of quality, taste, nutrition and
[Link] headquartered in Vevey, Switzerland, we now have 487 factories dotted aroundthe
globe, employing over 250,000 people in 86 countries. Our products are available inalmost every
country, and in 2005 our global sales reached $73 [Link] operations are spread across three global
zones covering Europe, the Americas,Asia, Oceania and Africa. Recognizing that every region has its
special needs, the threezones operate locally, but are united by a common vision and priorities. The
voices ofeven the smallest local markets are heard at our headquarters in Vevey, [Link]
immense popularity comes from our efforts to develop products that give qualityand nutritional benefits
at low prices, even in the most remote regions.
 Industary analysis

Nestlé operates primarily within the food processing industry, encompassing

various sub-categories like baby food, pet care, non-alcoholic beverages,
dairy products, prepared dishes, confectionery, and nutrition products, making
it a major player in the global consumer goods market with a strong focus on
branded, packaged food items across multiple categories; its key strength lies
in its diverse product portfolio, extensive distribution network, and well-
recognized brand names like Nescafe, KitKat, Maggi, and infant formula,
allowing it to cater to a wide range of consumer needs worldwide.
Key points about Nestlé's industry analysis:
 Market Leadership:
Nestlé holds a significant market share in most of the product categories it
operates in, often ranking as the top player globally due to its established
brand recognition and wide product range.
 Product Diversification:
The company's strategy of offering a diverse portfolio across different food
categories helps mitigate risks associated with fluctuations in demand for
specific products and allows them to cater to various consumer segments.
 Geographic Reach:
Nestlé has a strong presence in both developed and emerging markets,
allowing them to capitalize on diverse consumer trends and economic
conditions.
 Focus on Health and Wellness:
In recent years, Nestlé has been actively developing products focused on
health and wellness, including fortified foods and nutritional options,
responding to growing consumer demand for healthier choices.
 Innovation and R&D:
Continuous innovation and research and development play a crucial role in
Nestlé's strategy to introduce new products, improve existing ones, and
adapt to changing consumer preferences.
Major industry segments where Nestlé operates:
 Infant Nutrition: Baby formula, infant cereals
 Coffee and Beverages: Nescafe, instant coffee, bottled water
 Dairy Products: Milk, yogurt, cheese, cream
 Prepared Dishes and Cooking Aids: Maggi noodles, sauces
  Confectionery: KitKat, chocolate bars
 Pet Care: Purina pet food
 Nutrition Products: Nutritional supplements, medical nutrition
Challenges and considerations for Nestlé:
 Competition:
Intense competition from other large food companies like Unilever,
Mondelez, and Danone
 Health Concerns:
Increasing scrutiny over ingredients like sugar and salt in processed foods,
leading to pressure to reformulate products
 Sustainability Issues:
Concerns regarding environmental impact of production and sourcing
practices
 Emerging Markets Dynamics:
Adapting to diverse consumer needs and regulatory environments in rapidly
growing markets

Strategic Groups within the Food and Beverage Industry where Nestlé
competes:
 Premium Healthy Food & Beverages:
Nestlé's premium brands like "Nestlé Pure Life" water, "Nestlé Wellness" nutritional
supplements, and "Yoghurt" products target health-conscious consumers willing to pay
a premium for perceived quality and nutritional value.
 Mass Market Staple Foods:
Products like "Maggi" noodles, "Nesquik" chocolate drink, and "Milkmaid" condensed
milk cater to a broader consumer base with a focus on affordability and familiar taste
profiles.
 Specialty Coffee & Beverages:
Brands like "Nespresso" and "Starbucks at Home" cater to the high-end coffee market
with a focus on convenience and premium taste experience.
 Past 5 years sales data of the product group of Nestle
(Class – Wise details) sales data

Product FY 2022 FY 2021 FY 2020 FY 2019 FY 2018

Group
(Rs. Inmillion) (Rs. Inmillion) (Rs. Inmillion) (Rs. Inmillion) (Rs. Inmillion)

Milk Product 69157.3 62686.3 61487.8 56518.1 51876.3

and Nutrition

Prepared 53005.7 45813.1 39108.2 34981.8 31052.5

dishes
andCooking
Aids

Powdered 20187.8 16918.2 14762.5 15017.9 15226.1

andLiquid
Beverages
Confectionery 26544.5 21231.4 17543.1 16434.9 14007.4

Total sales 167,895.3 416,649.0 132,901.6 122,952.7 112,162.3

Double-Digit Growth Across All Categories
14.8% D omestic Sales Growth
Exhibit : Domestic sales grew 14.8%

Volumes plunged sharply in CY15 due to the Maggi crisis. Volume growth in CY16 and
CY17 maybe aributed to the recovery from the trough of CY15 (the company started
emergingcompletely out of the crisis only in 2HCY16). Amid a weak operang
environment, NEST’s 5.2%volume growth in CY22 (despite a high base of 10.2%
growth) is rather commendable

Exhibit : sales of prepared dishes grew 15.7%

 Exhibit : Milk and Nutrition sales grew 7.8%

Exhibit : sales of chocolates and confectionery grew 25%

Exhibit sales of Beverages grew 19.3%

 Market Share of the Product Groups of Nestle

As you can see from the table above, Nestle has the largest relative market share in th
epowdered and liquid beverages category, followed by milk products and nutrition. Thecompany has
a smaller relative market share in the prepared dishes and cooking aids andconfectionery
categories, but it is still a major player in these markets.

Overall, Nestle is a global leader in all of the product categories listed above. The company'sstrong
market share is due to a number of factors, including its wide range of products,
itsstrong brand recognition, and its global distribution network.
Nestle has a number ofstar products with top market share in world. Some of
these products include:

Maggi has a market share of over 60% in the world instant noodles market. Its closestcompetitor, ITC's
Yippee, has a market share of around 20%

• KitKat is the leading chocolate brand in world, with a market share of over 20% . Its
closestcompetitor, Mondelez's Cadbury Dairy Milk, has a market share of around 15%

• Nescafe is the leading coffee brand in India, with a market share of over 60%.Its
closestcompetitor, Hindustan Unilever's Bru, has a market share of around 20%

•Cerelac is the leading infant cereal brand in India, with amarket share of over 90%.
Its closestcompetitor, Abbott's Similac Infant Cereal, has a market share of around 5%

•Lactogen is the leading infant formula brand in India, witha market share of over 20%.
Itsclosest competitor, Abbott's Similac Infant Formula, has a market share of around 15%
Sales Forecasting from last 5 years