A BRIEF PROFILE OF NESTLE

EXECUTIVE SUMMARY ON
NESTLE Nestle
was founded in 1866 by HENRI NESTLE. It
started off with one man’s initiative to produce
infant formula (for infant who are intolerant to
their mother’s milk) and grew into a multi-
national cooperative worldwide. NESTLE has
more than 250,000 employees worldwide and
factories all around globally.
The infant product was so successful that it
created demand all over europe eventually this
success brought in many business joint
ventures and the company under want many
name changes along the way. Nestle stated to
enhance its product varieties , bottled drinks,
 NESTLE VISION AND MISSION
Vision
To bring consumers foods that are safe , of high quality and provide optimal
nutrition to meet physiological needs. In addition to nutrition, health and
wellness. Nestle products brings consumers the vital ingredients of taste and
pleasure.

Mission

In all their activities we seer to display some unchanging, fundamental

qualities-intefrity, honesty pegling, treating everyone with respect and dignity,
striving for mutual advantage and contributing to human progress.
 OBJECTIVE OF NESTLE
Marketing objectives are international with the overall corporate objective of NESTLE

ITS CHIEF OBJECTIVES ARE;

• To achieve compatibility with international voluntary standards on environmental
management systems.
• To built mutual trust with consider, governmental authorities & business partners.
• To ensure continious improvement of nestle environmental performance.
• Conservation of natural resources and minimization of waste.
• Total compliance with the laws.
• To establish the benchmark for good business practice.
• Employing new technology and processing.
• By committing to resources, both human and financial.
• Measuring the lost and benefits to business of its activities.
 PESTLE ANALYSIS OF NESTLE
• Nestle is a massive company with ties to 194
countries. It has the funds and presence to
impact governments. Its also on a profit
upswing, despite the major controversies
about NESTLE ownership and views about
water rights.
 POLITICAL FACTORS
Nestle servers in several countries. The rules and regulations
set by the government are different in different regions.
Nestle should focus on these political dynamics like taxation,
import export excise duties, government permission to enter
into the target segment and also to introduce hygiene
products allowed by the regulated bodies. Moreover in the
contemporary trends keeping in view the government
stability, NESTLE should consider and recognize all the related
risks that could be envolved. Nestle should also consider the
changing global regulations which are yet to adopt by the
company. Albeit nestle such an organization which in real
sense promote the government health policies by maintain
the quality standards and rules and regulations.
 ECONOMIC FACTORS

Different countries have different level of development.

Economy of countries differs everywhere. So nestle has
to set different economic policies for different targeted
segments. The price of the product is an important
decision to take while strategizing the economic policies
according the inflation rate and the buying power of the
segment. Nestle company should made an analysis report
on frequent basic to get the knowledge of the inflation
rate and different income levels. Nestle is contributing a
lot in promoting the economic worth of farmers by
producing the product at a local level for the satisfaction
of the consumer.
 SOCIAL FACTORS
The shared thoughts and beliefs of the customers influence
the business operations. The culture, life style, norms and
values force Nestle to deliver the specific product to the right
segment. Nestle so far has considered the social perspective
well. The company has well understood the concept that
consumers changing attitude has immense importance.
People are now very much prone to health life style . Nestle
has made a good reputation of understanding and evaluating
the consumers behavior and the related dynamics. Nestle is a
global brand but the product has been produced locally in
order to sustain the quality. Adherence to the strong values
and principals has always been the priority of the company
that assists in building the trust on the company consumers.
 TECHNOLOGICAL FACTORS
Technology gives many opportunities for the development for
new product improvement of existing ones. New techniques
of marketing such as internet and e-commerce are important
to focus in this modern era. Therefore Nestle uses technology
in several business operations like to maintain the databases
with the help of software. The rampant use of social media
has narrowed the gap between the direct interaction of
consumers and the company. Nestle should follow such a
maxim that accelerate innovation with the help of
technological advancement. Nestle is already using the state
of the part technology for the production of various product,
they are meeting the global standards by installing the
contemporary plants.
 LEGAL FORMS
Legal factors involve the legal environment of a
company and its influence on the operation to
meet the demand and minimize the cost. For
instance, Nestle has to follow the health and
also to safety laws for their employees and also
to produce hygiene products for the costumers.
Nestle need to focus on these too while
operating in different regions of the world.
 ENVIRONMENTAL FACTORS
Today the world Is more conscious to have clean
environment. Nestle need to focus on these rules
and regulations also to produce healthy food with
environmental friendly operations. Several
countries set different rules, so to increase the
acceptance of the product by the targeted segment
the rules are significant to follow. Nestle has also
been taking into account the considerable attention
towards the social contribution. The other related
concerns are the realm of recycling and he issues
pertaining to the packing.
 NESTLE S.A (OTC: NSRGY)
Is amultinational packaged foods and beverage manufacturer
head quartered in switzerland.It is widely considered to be
the worlds largest food manufacterd with more than 2000
brands and operation in 197 countries.
Nestle reported revenues of $99.09 billion on december 31
2015, and estimated sales of $92.62 billion for the current
fiscal year.nestle had a market capitilazion of $245.71 billion
according to YCharts.com: because the company is based in
switzerland,it does not have to report its enterprise value like
an American company would.Depsite the threats,nestle owns
some of the wolds best recognize and most profitable food
brand.unfortunatley,it faces a dramatically-changing grocery
market in which traditional brands are losing much of their
effectiveness. Such brands are heavily dependent upon
traditional advertasing and marketing strategies such as
television commercial,which are often ineffective in today
world.
 strengths
• Nestle is a highly-diversified company aperation in many different markets and
sector of those markets
• The variety of brands gives nestle a strong ability to weather economics because it
serve
• It has well-establishing relationship with other powerful brands,including coca-cola
colgate palmolive and general mills
• Nestle own some of the world most recognize and trusted brands.some families
have used its products for generations. Gerber has historically been one of the
most trusted brands of baby food in the united states.
• It has strong research and development capabilities that are growing
• Nestle has strong relationship with retailer
• It includes well-establishing brand with a large amount of market share in some of
the largest national econoies including europe and the united states.
 Weaknesses
• Much of its sales depend upon a few well-recognize brands . This makes
the company vulnerable to any sudden changes in consumer behavior
• Grocery sales in some major market are increasing concentrated in the
hands of a few giant retailer such as Walmart and Kroger in the united
states and Tescto in the united kingdom. These companies have the ability
to force sharp reduction in price. Some of these retailer are intent on
supplementing name brand product with more-profitable house brands.
• Some of its brands. Such as cornation milk.are not tailored to modern
lifestyles and are seen as old-fashioned by some customers.
• The company is heavily dependent upon advertising to shape consumer
opinion and drive traditional sales. This can lead to high marketing costs
with a questionable return on investment.
• There is a high costs for launching new brands to supplement older. Less-
fashionable food products.
 Opportunities
• Growth in online retail could open up new distribution channels such as
Amazon prime that can bypass traditional retailers.
• Growing middle classes in national such as china and india create larger
and broader markets for Nestles products.
• Increased disposable income in countries like china could increase the
bottled water.ice cream and pet food
• Changes in life style such as onger work hours.more women in the
workforce.and more single-person households. Increase the demand for
prepackaged foods.
• Increase mability and car ownership increase the demand for candy,
bottled water and snack food in national like china
• Increase interest in, health and nutrition could increase demand for some
Nestle produts , such as energy drinks,
 Threats
-Retailers such as walmart kroger and aldi ae
increasingly promoting house brands , which
are more profitable for them ouse brands are
often sold at a lower price and given greater
visibility on shelves.Some retailers such as aldi
and trader joes emphasize house brands at
the expense of traditional products.
-There is pressure from large retailers such as
walmart to cut prices
-The growing use of new retail channels such as
amazon prime and dollar store may not favor