CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled “ NESTLE INDIA LIMITED” submitted to K. V. Pendharkar College for the Award of Bachelor f !anagement "tudies #B!" "em$V% is original research work carried out by him under my super&ision. This report has not been submitted either partly or fully to any other 'ni&ersity or (nstitute for award of any degree or diploma.
")'B)A! "(*+)
#,-$//%
Professor 0 )ead1 K. V. Pendharkar College1 !umbai 'ni&ersity 'n i&ersity.. 2ombi&li. 2ate3 Place3 2ombi&li
CANDIDATE’S STATEMENT
( hereby declare that the work incorporated in this report entitled “ NESTLE INDIA LIMITED 4 in partial fulfilment of the re5uirements for the award of Bachelor of !anagement "tudies #"em.$V% is the outcome of original study undertaken by me and it has not been submitted earlier to any other 'ni&ersity or (nstitution for the award of any 2egree or 2iploma.
*ame ")'B)A! "(*+)
2ate3 Place3 2ombi&li
67am *o. #,-$//%
"ign8
PREFACE
As a part of the B!" curriculum and in order to gain practical knowledge in the field of management1 ( was re5uired to make a report on any management related topic.
ne can deny for the importance of the practical e7posure of the problem for its better understanding and better grip of coming out with an industrially acceptable solution.
The basic ob9ecti&e behind doing this report is to gain the knowledge about the Attitude 0 perception of mobile marketing among youngsters and to interpret its &arious implications. :e ha&e selected this topic.
*ow a day1 management is an art1 which we should learn by heart1 and we belie&e that art by studying it practically rather than reading the books. !anagement is must for e&ery company1 e&ery organi;ation1 not only this but also it is must for e&ery person.
The Bachelor f !anagement "tudies is a professional course1 which de&elops a new le&el of knowledge 0 skills and sets 0 prepares those seeking challenging carriers in the new era of
(n B!" "emester$V1 we are re5uired to prepare a report on to fulfil this re5uirement of the syllabus= ( ha&e prepared a report on “NESTLE INDIA LIMITED”
ACKNOWLEDGEMENT
Knowledge is itself a continuous process. But at this moment of our substantial enhancement we find no words to e7press my gratitude to those who had helped me directly or indirectly in making this report a success. :e are indebted and thankful for the assistance recei&ed from &arious indi&iduals.
(t is indeed of great moment to pleasure to e7press our sense of per found gratitude and ineptness to all the people who ha&e been instrumental in making our learning a rich e7perience. ( got the opportunity to do a challenging pro9ect. The pro9ect is the important part of our study and gi&es us a practical e7posure to management research its implementation and it is almost impossible to do the same without the guidance of people in and around us.
( hereby take the pleasure of thanking all who ha&e contributed to the making of this report. >irstly ( would like to thank Prof. San!!"a H#r$a%&ar' Prof. D!(an Nan)o$a' :ho ha&e pro&ided us full liberty1 co?operation during our @eport and sharing knowledge of his field with me always with a smile.
( am greatly thankful to my parent1 seniors1 friends and colleagues for their kind and constant inspiration and lo&ing support through many days when they wondered where the priorities lay.
NESTEL PRO*ECT
S!r#a$ No
Par"#+,$ar-
1.
Acknowledgement
2.
Introduction to Nestle
3.
Histor o! Nestle
4.
"ision o! Nestle
5.
#ission $t%tement & '()ecti*e
6.
'rg%ni+%tion%l c,%rt
7.
-r%nds
8.
%rning
9.
$/'
10.
#%rketing
11.
$tr%tegies Adoted - Nestle
12.
om%n n*ironment
13.
''AI" '"NAN
14.
orter i*e orce An%lsis o! Nestle
15.
onclusion
In"ro),+"#on *estle was founded in ,- by pharmacist )enri *estle on the shores of
H#-"or% /00 1 223
(n the ,-Ds )enri *estle a pharmacist de&eloped a food for babies who were unable to breastfeed. )is first success was a premature infant who could not tolerate his mothers milk or any of the usual substitutes. People 5uickly recogni;ed the &alue of the new products after *estle new formula sa&ed the childs life and soon fa rine lactee )enri *estle was being sold in much of 6urope. 243 5 2/
(n ,EDF *estle merged with the A*+< ":("" condensed milk company. By the early ,EDDs1 the company was operating factories in the 'nites "tate1 Britain +ermany and "pain. :orld :ar ( created new demand for dairy products in the forms of go&ernment contracts. By the end of the war *estle production had more than doubled. 2/ 5 26/
(n ,E, After the war go&ernment contracts dried up and consumers switched back to fresh milk. )owe&er1 *estle management responded 5uickly1 streamlining operations and reducing debt. The ,E/Ds saw *estle first e7pansion into new chocolate the companys second most important acti&ity. 26/ 5 277
*estle felt the effects of :orld :ar / immediately. Profits dropped from G/D million in ,EH to G - million in ,EHE. >actories were established in de&eloping countries particularly
The end of :orld :ar / was the beginning of a dynamic phase for *estle. +rowing accelerated and companies were ac5uired. (n ,E came the merge with !aggi seasoning and soups. Crosse 0 Blackwell followed in ,E-Ds as did >indus ? ,E-H
*estlIs growth in the de&eloping :orld partially offset a slowdown in the company traditional markets. *estle made its second &enture outside the food industry by ac5uiring Alcon
*estle di&ested a number of business ,ED J ,E in ,E1 *estle impro&ed bottom line allowed the companys to launch a new round of ac5uisitions the most important being American food giant carnation. 220 5 9449
The first half of the ,EEDs pro&ed to be fa&ourable for *estle trade barriers crumble and world markets de&eloped into more or less integrated trading areas. "ince ,EE- there ha&e been ac5uisitions including "an Pellegrino ,EE spillers pet foods ,EE and @alston Purina. There were two ma9or ac5uisitions in *orth America both in /DD/ in uly *estle merged its '.". ice cream business into dryers and iEin August a '"2 /.-bn ac5uisition was announced of chef American. 9446 1 Pr!-!n"-
The year /DDH started well with the ac5uisitions of mo&enpick ice cream enhancing *estle positions as one of the world market leaders in this products category in /DD- enny Craig and 'ncle Todays were added to the *estle portfolio and /DD saw *o&artis !edical *utrition1 +erber and )ennie; 9oin the company.
:#-#on *estle aim to meet the &arious needs of the consumers e&ery day by marketing and selling food of a consistently high 5uality the confidences that consumers ha&e in our brands is a result of our companys many years of knowledge in marketing research and de&elopment as well as continuity ? consumers relate to this and feel they can trust our products. high 5uality and collaboration our ob9ecti&es are to deli&er the &ery best 5uality in e&erything we do1 from primary produce choice of suppliers and transport1 to recipes and packaging materials. ur operations and collaboration in the *ordic countries gi&es us greater opportunities to be efficient and strategic and to function well as an organi;ation both when it comes to the distribution chain and to concerting on 9oint product launches and campaigns. Vision statements of *estle !ilkpak. The strategic priorities of *estle !ilkpak are focused on deli&ering shareholder &alue through the achie&ement of sustainable capital efficient and profitable long terms growth impro&ements in profitability will be achie&ed while respecting 5uality and safety standards at all time. (n line with this ob9ecti&es *estle !ilkpak en&isions to grow in the shortest possible time into the number one food company in Pakistan with the uni5ue ability to meet the needs of consumers of e&ery age group ? from infancy to old age1 for nutrition and pleasure1 through de&elopment of a large &ariety of food categories of the highest 5uality. *estle milkpak en&isions the company to de&elop an e7tremely moti&ated and professionally trained work force1 which would dri&e growth through inno&ation and reno&ation. (t aspires as a respected corporate citi;en to continue playing a significant role in the social and en&ironmental sectors of the country.
CORPORATE “MISSION” *estle brands and products are the focus of continual inno&ation and reno&ation so that they meet and e7ceed our consumers e7pectation. :e seek to ensure that our products are a&ailable whene&er1 where&er and howe&er our consumers want them.
OB*ECTI:E *estle purpose is to offer safe1 tasty1 con&enient and nutritions foods to impro&e heath and well ? being of consumers of all ages all o&er the world. To meet the needs and desires of todays and tomorrows consumers *estle is strongly committed to research and de&elopment to impro&e e7isting products and de&elopment new foods with specific health benefits.
Oran#;a"#ona$ +ood 0 Be&erages 6urope Lone A!" >ood 0 Be&erages American3 united "tates of America1 Canada1 ood 0 Be&erages Asia1 ceania1 African and !iddle 6ast *estle :aters The water business is managed on a global basis. *estle *utrition The nutritions business is managed on a global basis. *estle professional "trategic business di&ision >inance 0 control
+roup control 1 group accounting 0 reporting 1 legal 1 intellectual property1 ac5uisitions 0 business de&elopment 1 pensions 0 group risk ser&ices 1 treasury 1 in&estor relations 1 audit 1 ta7 1 global nestle business ser&ices #+*B"% 1 >0C business e7cellence.
S"ra"!#+ B,-#n!-- Un#"’- =SUB’-> ? Mar&!"#n. "trategic +enerating 2emand 'nit1 business e7cellence +enerating demand 1 corporate wellness units 2airy "B'1 coffe 0 Be&erages "'B1 chocolate1 confectionery 0 biscuits "'B 1 ice creams "'B 1 food "'B P6T CA@6 1 "'B 1 *espresso 1 nescafe 1
RTD
(nno&ation Technology 1 @02 science 0 research regulatory1 PTCs and @02 inno&ation acceleration teams technology intellectual property inno&ation partnership management packaging 0 design business e7cellence @02 nestle waters @02 nutritions 1 @02 nestle Purina.
O@!ra"#on-
Procurement production supply chain engineering 5uality management safet y health 0 en&ironment agriculture operations performance business e7cellence operations technical personnel coordination +<B6 0 business e7cellence. PharmaJ cosmetics human resources pharmaceutical and cosmetics products liaison with < real human resources corporate media relations public affairs economic and international relations corporate go&ernances 1 compliances and corporate ser&ices. Center counsel group compliance1 general secretarial group go&ernances.
BRAND’S Today nestle presents in different markets with the following main brands Coffee *escafe 1 *espresso1 Tasters choice 1 @icore 1 @icoffy1 Bonka1
Lephyrhills1 *estle A5urel 1 )epar 1 Ac5ua panna ther Be&erages *estle *es5uik1 *escau1 !ilo1 carnation1
B@A*21 C>>66 ? !AT6 2airy ? chilled *estle s&eltesse1 ski 1 yoco 1 s&elty 1 molico 1 lc chi5uitin. (C6 C@6A! *estle1 Antica +elateria del corso 1 dreyes 1 eddys 1 nonstop1 delta. (*>A*T *'T@(T(* *estle *an 1
)6Ariskies1 >ancy 1 >east 1 Alpo 1 +ourmet 1 !on Petit 1 >eli 7 1 2og Chow 1 cat chow 1 pro plan 1 Purina *6 1 Beneful 1 Tidy cats
EARNING (n /DDH1 consolidated sales were C)> .EE billion and net profit was C)> -./,H billion research and de&elopment in&estment was C)> ,./DF billion. "ales by acti&ity breakdown /M from drink /-M from dairy and food products ,M from ready ? prepared dishes and ready ? cooked dishes ,/M from chocolate1 ,,M from pet products -M from pharmaceutical products. "ales by geographic area breakdown H/M from 6urope H,M from Americas /-M from us ,-M from A"(A /,M from rest of the world.
SWOT ANALYSIS STRENGH
(ts a company that does not depend on the personalities.
WEAKNESS
"upply chain1 e7ports
OPPORTUNITY
)igh credibility A&ailable means for e7pansion (mpro&ing trends (ndustry leadership Consumer preference >ewer competitors 2edicated workforce
'ntapped rural market.
THREATS
)ighly competiti&e market companies are &ery organi;ed and financially strong (ncreasing prices of raw materials. Competitors like haleeb halla askari pure water nurpur dairies and prime yogurt.
MARKETING *estle hold strongly reputation for high 5uality brands. (n ma9or markets trade marketers are fre5uently rated highly in customers sur&ey on professionalism and ser&ices. They dont belie&e in one brand fits all but with a strong di&ersified global portfolio well focused and defined offers a brand for all key consumers and market sectors. They aim to satisfy consumers demand better and more profitably than their competitors. STRATEGIES ADOPTED BY NESTLE
Business principle3 nestle is committed to the following business principles in all countries taking into account local legislation cultural and religious practices1 nestle business ob9ecti&es is to manufacture and market the companys products in such a way as to create &alue that can be sustained o&er the long term for shareholders employees consumers and business partners. *estle does not fa&our short term profit at the e7pense of successful long business de&elopment. *estle recogni;es that its consumers ha&e a sincere and legitimate interest in the beha&iour belief and actions of the company behind brands in which they places their trust and that without its consumers the company would not e7ists. *estle belie&es that as a general safeguard of responsible conduct although in certain areas additional guidance to staff in the form of &oluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organi;ation.
*estle is conscious of the fact that the success of a corporation is a reflection of the professionalism conduct and the responsible attitude of its management and employees. Therefore recruitment and de&elopment are crucial. *estle continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. Consumers perceptions and the future needs of society as a global food manufacturer and marketer *estle takes into consideration local needs cultural differences and consumers preferences as well as attitude concerning the use of ingredients crops. *estle will continue to use ingredients deri&ed from genetically modified crops where&er appropriate.
G$oa$ +o#"!n"
*estle firmly supports the principles of the united nation global compact and is committed to reflecting these in its business principles and practices. "earch for trust1 nestle is the worlds leading food and be&erage company with sales of about C)> / billion. (t has /HD1DDD employees world ? wide and operates F/D factories in / countries. (ts products are a&ailable uni&ersally including such remote market as *orth Korea and they are sold under a number of brands such as *estle1 *estle cafe1 *estea1 !aggie Company belongs to more than /DD1DDD shareholders1 and today *estle is about twice the si;e of its nearest competitors in the food and be&erage sectors. The company is in business for o&er ,HD years since the days of its founder brands ha&e been mainstay of companys de&elopment and its management strongly belie&es that is one of the key elements of company success. A basic reason company has grown to be the worlds largest food company is that consumers ha&e learned to trust its brands. The nestle challenge was the establishment of a clear hierarchy of &ery few corporate strategic global brands that now co&er almost all products as well as the parallel usage of regional and local products brands and products denominations.
ADDITIONAL INTRODUCED BY NESTLE
*estle seal guarantee and emphasi;ed corporate logo. This seal of guarantee is a &isible sign of companys corporate responsibility for the safety and 5uality of e&ery products which leads to maintain consumer confidence and trust in this corporation. (n order to be able to gi&e this 5uality and safety assurance1 company de&eloped a *estle 5uality management system which collects the e7perience of our research and de&elopment on which we spend C)> DD million a years for a company such *estle economics success depend on wining the publics where our products are sold. The ha&e always belie&e strongly that tobacco should ne&er be marketed to youth. (t should only be marketed to adult smokers1 in an appropriate way that takes account of the risks posed to health.
NESTLE COMPANY’S SUCCESS BUILT ON UALITY ,a$#"% is the cornerstone of companys success. 6&eryday millions of people all o&er the
world show their confidence in company by choosing *estle products this confidence is based on our 5uality image and a reputation for high standards that has been built o&er many years. 6&ery products on the shelf e&ery ser&ices and e&ery customers contract help to shape this image. A *estle brand name on a products is a promise to the customer that it is safe to consumer that it meets high standards of 5uality. Customers e7pects company to keep this promise e&ery time under no circumstances company compromises on the safety to a products and e&ery effort must be made to a&oid ha;ards to health people e5uipment and instrument are made a&ailable to ensure safety and conformity of *estle products at all time.
UALITY UNITS AT DIFFERENT LE:EL OF THE NESTLE
Pro&ides specific support1 promotes 5uality awareness assume guardianship and audit the system. Nuality department monitors operations against agreed standards and must inter&ene in case of non ? conformity. Training and networking are crucial to the successful implementation of high 5uality standards. Continuous training ensures that e&eryone understands his tasks and has the necessary skill to carry them out. Teamwork allows us to achie&e results that are greater than the sum of indi&idual efforts. :e moti&ate employees by demonstrating management commitment to 5uality by setting challenging goals and by gi&ing them responsibility and recognition its through employee in&ol&ement that goals and targets can be achie&ed in the shortest time.
UALITY MUST BE A WAY OF LIFE FOR E:ERYONE IN THE COMPANY
Progress is followed by listening to our customers and by measuring our performance. *estle position on +ene Technology from its inception more than ,HD years ago1 *estle has built its business on successfully applying scientific breakthroughs and technological inno&ations while taking full responsibility products. Throughout these years *estle has been manufacturing and marketing products tailored to meet the di&erse need and preferences of consumers all o&er the world.*estle has always stri&ed to respect these differences and to take them into account in its acti&ities. *estle supports a responsible application of gene technology for food production based on sound scientific research.
CONSUMER INFORMATION AND LABELING
Consumers confidence in the food they are buying is supported by ha&ing access to information. *estle consumer ser&ices are well e5uipped to pro&ide this access and thus are the first source of information crop1 in including the use of ingredients deri&ed from genetically modified crops1 in *estle products. !any go&ernment now ha&e implemented or are considering regulations for the use and labelling of these ingrediennts.in the absence of a global agreement on the labelling of ingredients deri&ed from genetically modified crops1 and recogni;ing go&ernments responsibility for the regulatory process1 *estle strictly adheres to national laws and regulations regarding their labelling.
EN:IRMENT OF THE COMPANY MANAGEMENT
The e7ecuti&e board a distinct entity from the board of directors1 includes. Peter Bra beck ? rancisco Castaner 1 6VP of pharmaceutical and cosmetic products
Cor@ora"! Go(!rnan+!
*estle commitment to sound corporate go&ernance goes back to its &ery early days. This commitment is reflected and e7plained in se&eral publication such as the corporate go&ernances report Articles of association committee charters etc. it is also &isible in *estle da gy to day business beha&iour. The corporate go&ernance report co&ers the following areas. +roup structure and shareholders Capital structure Board of 2irectors Compensation1 shareholdings and loans "hareholders participations. Changes of control and defence measures auditors information policy.
PORTER’S FI:E FORCES ANALAYSIS
>i&e >orce Analysis help us to contract a competiti&e en&ironment. :e analyse these fi&e forces for *estle fi&e forces analysis looks at fi&e key areas namely. Threat of 6ntry The power of buyers The power of suppliers The threat of substitutes Competiti&e @i&alry
Con+$,-#on(t is from the case presented that the reputation of a company is decided not in terms of its sales or profits ma7imi;ation but in terms of the good will it earns by adopting morals and &alues in its marketing and pricing. The products and marketing should not &iolate the society standards "hould not promotes or undermine breastfeeding. The organi;ation is responsible for any happening or conse5uences in the society. The issue of mi7ed feeding before si7 months should be in&estigated and discouraged through sensiti;ation programs at the community le&el not only at the facility le&el. The breastfeeding ad&ocacy should ade5uately reflect the need for continuous breastfeeding after the si7 months period as well as the timely and appropriate introduction of feeding bottles teats and condensed milks. To be effecti&e the regulations must be ade5uately disseminated beside there is the need for health workers particularly nurses who manage heath facilities in the rural areas to understand the circumstances under which infant formula could be used since under some conditions it becomes &ery rele&ant to offer artificial formula sa&e a life. 67pression of breast milk should also be made part of antenatal grooming rather than the case to case basis. (n response to the contro&ersies mentioned abo&e *estle has affirmed that in order to continually impro&e our practises we call on our stakeholders and the general public to
directly communicate to us in detail any concern or allegation of non ? complaints with our commitment. :e commit to in&estigate and respond to all concern raised by e7ternal stakeholders directly with us pro&ided that we recei&e enough information to carry out an in&estigation. This interaction with our e7ternal stakeholders help u impro&e our monitoring of our who code compliance and through this e7ternal report we aim at pro&iding to those stakeholders a feedback on their concern as well as gi&ing to the general public better insights into our code compliance records.
