1 History of the Nestle

Nestl headquarters in Vevey.

The company dates to 1867, when two separate Swiss enterprises were ounded that would
later orm the core o Nestl. !n "u#ust o that year, $harles ". and %eor#e &a#e, 'rothers
rom (ee $ounty, !( in the )nited States, esta'lished the "n#lo*Swiss $ondensed +il,
$ompany in $ham. !n Septem'er, in Vevey, -enri Nestl developed a mil,*'ased 'a'y
ood and soon 'e#an mar,etin# it. !n the succeedin# decades 'oth enterprises a##ressively
[Link] their 'usinesses throu#hout /urope and the )nited States. 0-enri Nestl retired
in 1871, 'ut the company, under new ownership, retained his name as 2arine (acte -enri
Nestl.3 !n 1877 "n#lo*Swiss added mil,*'ased 'a'y oods to its products, and in the
ollowin# year the Nestl company added condensed mil,, so that the irms 'ecame direct
and ierce rivals.
-enri Nestl.
!n 1451, however, the companies mer#ed to 'ecome the Nestl and "n#lo*Swiss
$ondensed +il, $ompany, retainin# that name until 1467, when the name Nestl
"limentana S" was ta,en as a result o the acquisition o 2a'rique de &roduits +a##i S"
0ounded 18863 and its holdin# company, "limentana S" o 7empttal, Swit8erland.
+a##i was a ma9or manuacturer o soup [Link] and related oodstus. The company:s
current name was adopted in 1477. ;y the early 1455s, the company was operatin#
actories in the )nited States, )nited 7in#dom, %ermany and Spain. <orld <ar ! created
new demand or dairy products in the orm o #overnment contracts= 'y the end o the war,
Nestl>s production had more than dou'led.
"ter the war, #overnment contracts dried up and consumers switched 'ac, to resh mil,.
-owever, Nestl>s mana#ement responded quic,ly, streamlinin# operations and reducin#
de't. The 14?5s saw Nestl>s irst [Link] into new products, with chocolate the
company>s second most important activity.
&a#e 1 o 25

Nestle Quality Policy
@uality is the oundation o our ood, nutrition, -ealth and <ellness $ompany.
" Nestle 'rand name on product is a promise to the customers that A
!t is sae to consume.
!t complies with all relevant laws and re#ulation.
@uality is to win consumers trust and preerence.
<e are committed to oerin# products and services to all customers that meat their
needs.
@uality is every 'ody:s commitment.
Bur mana#ement ta,es the lead, sets the o'9ectives and demonstrates its
commitment towards quality.
"ll Nestle unctions across our value chain are ully responsi'le to ollow
mandatory norms.
@uality is to strive or Cero deect and no waste.
<e ocus on acts and results and we strive or Cero deect and [Link] in every
thin# we do.
<e adopt DNo wasteE and we constantly loo, or competitiveness and
opportunities or continuous improvement o the quality standards delivered to our
customers.
@uality is to %uarantee, ood saety and ull compliance.
<e enorce ood saety, re#ulatory and quality requirements in every step o our
value chain.
&a#e 2 o 25
2 Business of the Nestle
Nestle is the lar#est ood company in the world. !t is present in all ive continents, has an
annual turnover o 76.7 'illion Swiss 2rances. There are 154 actories are runnin# in 8F
countries, havin# ?F1,555 employs
Company Mission

At Nestle, we beliee that research can help us to ma!e better foo", so that people
lie a better life#
%ood ood is the primary source o #ood health, so we are tryin# to ma,e #ood ood.
To provide resh and pure products to the customers, we introduced 0S-/3 Saety, -ealth
and environment policy to protect health o our employs and ,eep clean our surroundin#
environment
Company $ision

Vision o Nestle +il,pa, $ompany is to [Link] 'usiness accordin# to the
increasin# demand o mar,et.
"s per our company vision in ?5?5 production capacity o all plants wor,in# in
&a,istan is 'ein# increased.
2#1 %n"ustry&'ector
Nestl is conscious o the act that the success o a corporation is a relection o the
proessionalism, conduct and the responsi'le attitude o its mana#ement and
employees. Thereore recruitment o the ri#ht people and on#oin# trainin# and
development are crucial.
Nestl continues to maintain its commitment to ollow and respect all applica'le
local laws in each o its mar,ets.
G Bur products are manuactured in ive acilities scattered around the
country, rom !slama'ad in the north, to 7arachi in the south.
G Two state*o*the*art multipurpose actories are located in the a#ricultural
heartland o the &un9a', and the remainin# three are dedicated to producin#
our trusted 'rands o 'ottled water.
&a#e ( o 25
G "s citi8ens o &a,istan, we consider it our duty to ma,e sure that our
manuacturin# processes are clean, hy#ienic and sae.
G <e are constantly wor,in# to reduce emissions at our actories, reducin#
and treatin# wastewater, and ma,in# our pac,a#in# environmentally
riendly. He#ular audits have conirmed that our actories> environmental
mana#ement meets the Nestl international standard.
G "s is the Nestl policy around the world, we care or our people. <e
uphold the principles o the )N %lo'al $ompact and encoura#e women to
participate.
G !n 1445, Nestl +il,pa, acquired the 7a'irwala actory, located in
7hanewal district o the &un9a', as a su'sidiary. ;y 1447 it was a ully
owned unit o Nestl &a,istan (td.
G Soon ater it was acquired, we 'e#an up#radin# its capacity. !n 144? we
added a +"%%!I Noodles plant was added and 1446 saw an additional o
a mil, powder.
G Bver the years, the 7a'irwala actory was constantly enhanced. N/ST(JI
/V/HKL"KI tea whitenin# powder was introduced in ?55? and
revolutionised tea and coee drin,in# in homes and oices around the
country.
G !n ?551, the actory continued to ma,e nota'le achievements.
G ?556 has seen the commencement o 7a'irwala /.tension &ro9ect that
would 'e completed in "pril ?557 at a cost o a'out Hs. 6.5 'illion. The
pro9ect has seen [Link] o mil, processin# capacity to triple its current
si8e, 'oth or powder and liquid.
G !n ?551 we acquired the "V"I water actory in !slama'ad. !t 'ecame a ully
owned unit in ?55F, and we immediately instituted a pro#ramme o ma9or
improvement to 'rin# the acility on par with international standards.
G Bver the years, 'etter and more eicient machinery has 'een introduced. This has
helped us speed up production, and provide our consumers with their avourite
'rands o 'ottled water in convenient pac,a#e si8es.
G <e are proud that the !slama'ad actory has made eorts to 'rin# &a,istani
women into the wor,orce, 'y providin# a comorta'le and ena'lin# wor,
environment.
&a#e ) o 25
2#2 'cope of *ra"e +National&%nternational,
&a,istan is an a#ricultural country. "ccordin# to +inistry o 2ood, "#riculture and
livestoc,, a#riculture accounts or ?5.4 percent o the %L&. Lairy industry contri'utes
64M to the a#riculture value and 11M to the %L&. "nnual production o mil, is F1.?1
;illion liters in the country= ;ut the &rocessed mil, is only 6M o the total production.
(i,e other countries Lairy is not a dedicated proession o the people, armers is
associated with dairy and a#riculture at the same time, &roita'ility or the armers is very
less. !nrastructure is not developed, coolin# tan,s and other acilities are not availa'le,
and the lar#e part o mil, production is wasted. There is a multi*hierarchal distri'ution
system o the mil,= the armers are not #ettin# reward o their wor,. "ll these actors are
ma,in# this industry unattractive or the armers and the industry is no developin# up to
mar,.
Bnly 6M o the total mil, production is processed and used in ur'an areas o the country.
Nestle +il,pa, have a #reat share in the dierent multinational companies. !t is
statistically calculated that Nestle +il,pa, have 15M share in the Nestle company and
now Nestle 'ecome the leader o all multinational companies in ood products and
'evera#es. Nestle is operatin# in all 'i# cities in &a,istan and try 'est to provide its
&roducts to other small cities and towns.
"ccordin# to &a,istan Lairy Levelopment "uthority
( Mana-ement Proce"ures
The [Link] 'oard, a distinct entity rom the 'oard o directors, includesA
&aul ;ulc,e , Nestl $/B
Nohn N. -arris, /V&, $hairman, and $/B o Nestl <aters
2rits van Li9,, /V& o "sia, Bceania, "rica, +iddle /ast divisions
&etraea -eyni,e, /V& o Strate#ic ;usiness )nits and +ar,etin#
2rancisco $astaOer, /V& o &harmaceutical and $osmetic &roducts, (iaison with
(>Bral, -uman Hesources
+ichael &owell, /V& o )nited 7in#doms Livision
&a#e 5 o 25
Names Sin#h, /V& o 2inance, $ontrol, (e#al, Ta., &urchasin#, /.port
(uis $antarell, /V& o /urope divisions
Hichard T. (au'e, Leputy /V& o Nutrition Strate#ic ;usiness units
<erner N. ;auer, /V& o Hesearch and Levelopment, Technical, &roduction,
/nvironment.
$urrent mem'ers o the 'oard o directors o Nestl areA &eter ;ra'ec,*(etmathe
0chairman3, &aul ;ulc,e, "ndreas 7oopmann, Hol -Pn##i, Nean*Hen 2ourtou, Laniel
;orel, Nean*&ierre +eyers, "ndr 7udels,i, $arolina +Qller*+Rhl, Steven -och, NaSna
(al 7idwai and ;eat -ess. The Secretary to the ;oard is Lavid 2ric,.
.oint entures
Nestl holds ?6.6M o the shares o (>Bral, the world>s lar#est company in cosmetics and
'eauty. The Laboratoires Inneov is a 9oint venture in nutritional cosmetics 'etween Nestl
and (>Bral, and Galderma a 9oint venture in dermatolo#y with (>Bral. Bthers include
$ereal &artners <orldwide with %eneral +ills, ;evera#e &artners <orldwide with $oca*
$ola, and Lairy &artners "mericas with 2onterra.
(#1 /r-ani0ation 'tructure of the /r-ani0ation

&roduct T Services oered 'y the Br#ani8ation
Nestle &a,istan has 'ein# at the oreront o development o dairy sector in &a,istan as
ma9or industrial sta,e holder or a while .internal eorts and some initiatives with
#overnment have 'ein# #oin# on since lon# in order to ma.imi8e the development o the
sector .still, a need or sector wise coordination and com'ine eorts was there to ensure
utili8ation o all availa'le resources to move orward in the direction.
Throu#h the a#ric*services department nestle has 'ein# involved with various
inrastructure and support related initiatives such as development o model arms, setup o
mil, chiller and import o "ustralian cow to 'oost mil, production .nestle is also wor,in#
towards settin# up me#a dairy arms to [Link] 'est arm practices and ways to 'oost
mi,e production
&a#e 1 o 25
4. Product & Services offered by the Organization

Nestle %ood Start %entle &lus &owder 2ormula, 15 $ans U614.44
Nestle -ot $ocoa +i., Hich $hocolate, No Su#ar "dded, 8*$ount /nvelopes
$oee*+ate 2rench Vanilla Non*Lairy $reamer, Shel Sta'le,
Visit Store N/ST(/ N/S758?1 $oee $SN Bice
Visit Store ;a'y Huth ?6 V ?.1 B8 ;a'y Huth ?6 V ?.1 B8
Visit Store ;it*o*-oney, 1.7 o8 F6 ct ;it*o*-oney, 1.7 o8 F6 ct
&a#e 2 o 25
6 &ac,*F? B8. $ansW Nestle %ood Start...
Nestle +il, $hocolate ;ar ?6ct
Nestle $erelac Tri#o con (eche
Nestle %BBL ST"HT Supreme !nant...
N/ST(/ ... N/ST(/ N/S?6F55
&a#e 3 o 25
N/ST(/ ... N/ST(/ N/S46155 <on,a
Nestle -ot $ocoa +i., Hich $hocolate,...
Nestle Nips $andy $oee 6 o8
Nestle "ero Lar, ?6 V 6?# ;ars
Nestle Lar, Haisinets $hocolate...
&a#e 4 o 25
Bran" Name of 5ach Pro"uct 6 'erice /ffere"
Nestle Nuices
Nestle Nesvita
Nestle yo#urt
;ottled <ater
$hocolate
;a'y 2ood
+a##i noodles
Nescae
&a#e 17 o 25
"t Nestl, our chie commitment is to our consumers, and we ma,e every eort to ma,e
sure that their voices are heard.
<hen -enri Nestl prepared his irst '[Link] o inant ormula or sale, he put his address
on the pac,a#es. Today, our $onsumer Helationship &anel [Link] people to XTal, to
NestlX, [Link]# the same 'elie in openness and accessi'ility.
Bur consumer services department is staed 'y [Link] in every area related to our
products and wellness, and is poised to provide prompt and relevant service to our
consumers.
<e 'elieve that consumer services requires us to tal, to consumers and also, a'ove all, to
listen to them.
Bnly 'y listenin# to what people say can we understand what they want and need. Bnly 'y
understandin# their needs can we serve our consumers to the ullest.
*ransaction 8etails
2requency,
amount and timin# o purchases,
items 'ou#ht,
prices paid,
)se o cash or credit.
Ac9uisitions 8etails
+ar,etin# channel,
&romotion type, and
"ddressWcity.
Bran" Ambassa"ors of /r-ani0ation&Pro"ucts
Nune 18, ?558 0Saw News3 * Nestle has dropped ;ollywood star Hani +u,er9i as 'rand
am'assador or its chocolate 'rand, Nestle +unch, 'ecause she has ceased to 'e a youth
icon.
&a#e 11 o 25
Hani had endorsed the product or the last our years, and eatured in many Television
commercials promotin# the 'rand.
" ew months earlier, Hani was dropped rom 2anta commercials, and replaced 'y risin#
South star "sin, "amir 7han>s %ha9ini co*star.
" top &H oicial o Nestle !ndia, 'ased in %ur#aon, tal,ed to us on condition o
anonymity.
XBur contract with Hani +u,her9ee was due to #et over and we were in the midst o
plannin# new mar,etin# strate#ies or our 'rand. !t is then that we decided that we won>t
'e renewin# our contract with her,X the oicial told us. XBur new strate#ies include
tar#etin# the youth and Hani ceases to 'e any ,ind o a youth icon anymore. -er ilms
haven>t really wor,ed out at the 'o. oice and we are loo,in# out or someone who is
very popular in this cate#ory. <e are wor,in# out on a ew options and a inal
announcement shall 'e made very soon.X
" source close to Hani conirmed the development, tellin# us, XHani is [Link]
disappointed 'y Nestle>s unproessionalism. They ,new well that once the contract came
up or renewal, Hani would increase her price. They wanted to #o in or someone cheaper
perhaps. They should 'e than,ul that Hani has #ot their product noticed in last our
years.X
Nestle>s action seems to relect the ilm industry>s perception that Hani is no more the 'o.
oice draw that she once was.
Hani>s stoc, in the industry has dropped ollowin# the poor 'o. oice response to her
recent ilms li,e Saawariya 0?5573, (aa#a $hunari +ein Laa# 0?5573, Ta Ha Hum &um
0?5573, and ;a'ul 0?5563. She is also perceived to 'e too closely ali#ned to the Kash Ha9
2ilms 'anner 'y other ilmma,ers.
/ven her >riends> in the industry are not ready to 'et on her anymore.
<hen 7a9ol vacillated over si#nin# up or +y Name is 7han, the ilm>s producer and
director, 7aran Nohar, a close riend o Hani, surprised industry watchers 'y announcin#
that he would #o with 7areena instead, even thou#h Hani comes throu#h as a more natural
7a9ol replacement.
&a#e 12 o 25
1. Human :esource 8eelopment Policies
-H is dedicated to our employees, and ensures that we have all the ri#ht people with the
ri#ht s,ills, in the ri#ht places at the ri#ht time.
)nderstandin# that our people are the 'edroc, o all our 'usiness strate#ies, it is our
mandate to enhance their s,ills with cuttin#*ed#e trainin# and provide them with world*
standard acilities.
<e select le.i'le, innovative people who are ready to conront new challen#es and ma,e
a dierence. Bur #round'rea,in# +ana#ement Trainee &ro#ramme aims to develop
talented youn# men and women and help them achieve their potential in a dynamic and
ena'lin# environment.
Bver a hundred people travel out o the country every year to ta,e advanta#e o our
international trainin# and development events
5#1 :ecruitment 6 'election Proce"ures
/mployees, people and products are more important at Nestl han systems. Systems and
methods, while necessary and valua'le in runnin# a comple. or#ani8ation, should remain
mana#erial and operational aids 'ut should not 'ecome ends in themselves. !t is a question
o priorities. " stron# orientation toward human 'ein#s, employees and [Link] is a
decisive, i not the decisive, component o lon#*term success.
5#2 *rainin- 6 8eelopment Proce"ures
There are a num'er o ways you can 9oin us. <e li,e to recruit people into real 9o's, and
when a position 'ecomes availa'le, we will select the 'est person or it. Bur recruitment
and selection practices and procedures are transparent, air, and comply with le#al
requirements. +a,in# use o selection panels that are utilised or all vacancies ensures
transparency. The persons involved in the selection panels airly represent a diverse #roup.
Mana-ement *rainee Pro-ramme! you>re youn#, 'ri#ht and hard wor,in#, the
+ana#ement Trainee &ro#ramme may 'e the place or you.<e hire resh #raduates as
potential mana#ers to develop new competencies and s,ills throu#h on*the*9o'
[Link]>ll 'e hired in one o various departments at inductee level on a 1?*month
trainin# pro#ramme. Bnce you>ve completed the pro#ramme, you will 'e assi#ned
independent responsi'ilities supportin# the company>s 'usiness needs. <e 'e#in sourcin#
+ana#ement Trainees in Nanuary. &reliminary interviews and screenin# is or#anised
accordin# to the #raduation schedules o &a,istani and orei#n universities, and are
&a#e 1( o 25
ollowed 'y interviews with senior mana#ement.! you have any queries a'out the
+ana#ement Trainee &ro#ramme, and drop us an emailY%nternships!nternships are a #reat
way to apply the ,nowled#e and s,ills you are developin# at university and #et [Link]
in a leadin# corporation. <e oer pro9ect*'ased internship positions in various
departments at Nestl &a,[Link] may 'e hired as an intern at various points durin# your
academic careerA durin# under#raduate study or #raduate school. +ost internship
assi#nments are oered durin# the summer months and #enerally run or 6 to 8 wee,s. "t
the end o the internship you will 'e required to su'mit a pro9ect or pro#ramme report to
the company on the topic assi#ned to you at the 'e#innin# o the internship pro#ramme. !
you impress us with your talent T hard wor,, you may 'e considered or employment
opportunities ater you have completed your studies.&lease contact us i you have any
queries a'out our internship pro#ramme.
6. Mar!etin- 'trate-y
Bur mission is toA
Z Bptimise and consolidate resources and processes or a low*cost 'ut eicient
Z Levelop and mana#e simpliied and eective supply networ, to achieve a hi#h
level o service
Z $reate a continuous improvement culture driven 'y perormance measures and reward
Today, Nestl +il,pa, produces in over 81 countries and achieves 48M o its turnover
outside /urope. Nestl mil,pa, is the world:s lar#est mil, company, which does 48M o
its 'usiness. !t has an annual turnover o 75 'illion Swiss rancs, 1?? new actories in 81
countries, ?55 operatin# companies, 1 'asic research outer and ?5 technolo#ical
development #roups, has more than ?F1,555 employees and more than 8555 products
around the #lo'e. There are three companies co*ordinate the activities o some ?55
operatin# companies around the #lo'e. Their unctions and details are as ollowsA The
irst, Nestl mil,pa,, holds the inancial shares in the allied companies. !t also chec,s the
proita'ility o these companies and to ensure the proita'ility o the #roup as whole.
The second, Nestl mil,pa,, has two areas o activities that are as ollowsA
Hesearch and technolo#ical development,
Technical assistance ;eside this, it provides ,now*how in en#ineerin#, mar,etin#,
production, or#ani8ation, mana#ement and personnel trainin# on a continuous
&a#e 1) o 25
'asis. The third company is Nestl <orld Trade $orporation that oversees the
import and [Link] o merchandise worldwide.
Mar!et se-mentation an" tar-et strate-y inclu"in- consumer profilin-
!t is really a 'i# mar,et and it is always diicult to se#ment the 'i# mar,et. There are
many uses or se#mentation.
Nee"s Base" 'e-mentation
+il, &ac, has made dierent si8es o tetra pac,s which can match the needs o 'uyers,
ran#in# rom 5.?1 liters to 1.1 liter. ;uyers can 'uy accordin# to there need 'etween these
quantities.
&a#e 15 o 25
Pro"uct 'e-mentation
+anuacturers diversiy products within each needs 'ase to appeal to 'uyers with dierent
tastes and wealth.
1#1 %nte-rate" Mar!etin- Communication +%MC,
$ompany have a complete imc plan in which they that how can the
company will inorm their consumer a'out the new, upcomin# product and value added
services to the [Link]# product. The sources which can use 'y the company to inorm
their consumers are print, electronic as well as throu#h their we'sites.
"s a mother you want the 'est or your child and almost always [worry a'out hisWher
health. ;ut are you completely sure i your child is #ettin# suicient nutrition or his or
her #ood health and development\
+any o you may not 'e so sure. $hildren 'etween 1 to F years o a#e [Link] rapid
#rowth and stron# hei#ht and wei#ht #ains ma,in# their nutritional requirements unique.
That>s why we have N/ST(J N/S(", #rowin#*up mil, or children 1*F years o a#e.
N/ST(J N/S("$ provides the ri#ht vitamins and minerals in the ri#ht proportions that
your little one needs at this particular a#e.
N/ST(J N/S("$ is availa'le in -oney lavour and is enriched with the ri#ht 'alance o
&rotein, !ron, $alcium and +ultivitamins to help #ive your child a stron# and healthy
oundation or lieY
Mar!et Positionin-;
They will position our product as a hi#h quality product consumer ocused. +essa#es li,e
DThey ,nows your taste 'etter than usE, DNestle +il,pa, now at your door stepE= D"dd
additional lavors: to your lieE will help us portray our picture clearly and distinctly.
+il,pa, will position our product a#ainst the competitors and #ain competitive advanta#e
throu#h our eicient promotional methods, usin# innovations, and 'y reachin# closer to
our tar#et mar,et throu#h the arran#ement o events li,e ;"S"NT, V"(/NT!N/ L"K
&a#e 11 o 25
and etc. !n short consumers will view us as a product providin# hi#hly quality, in terms o
taste, customer ocused and, at the same time reasona'ly priced as compared to others.
1#2 Mar!et 'hare
Nestle steps up efforts to -row mar!et share
T-/ diicult operatin# conditions across the ast*movin# consumer #oods 02+$%3
industry have aected sales perormance o some products o Nestle !ndia last iscal.
Thou#h the company says that it has maintained its mar,et share in most o the product
cate#ories 'y ta,in# a ew measures, includin# mana#in# input costs and price points,
improvin# distri'ution networ, as well as mar,et penetration and ma,in# more eective
use o its supply chain, sales o some ,ey products remained 'elow [Link] in ?556.
Ta,e or [Link] liquid )-T 0lon# shel*lie3 mil,. The Nestle !ndia $hairman, +r
+artial %. Holland, said in the latest annual report that the mar,et perormance o this
product has 'een 'elow [Link] and a ull review is 'ein# underta,en. "nd even as
+a##i noodles continue to have the hi#hest sales volume in !ndia, amon# all Nestle
companies, +a##i sauces have perormed 'elow [Link] durin# ?556 due to
a##ressive competition, he added.
+il,maid Sweetened $ondensed +il, did not perorm as per plan, and +r Holland said
the company is ta,in# corrective action to improve the perormance o +il,maid Squee8y.
Similarly, in conectionery, Nestle $hocostic, is 'ein# reviewed, even as the company
said products such as Nestle +il,y'ar /clairs, Nestle /clairs and &olo lo8en#es have
perormed well.
!n the recent past, Nestle has 'een reviewin# the perormance o +ilo $hocolate /ner#y
2ood Lrin, and it launched +ilo with ];adam Sha,ti> in select cities o Tamil Nadu
durin# last iscal. The $hairman said perormance o the new variant is 'ein# monitored.
"mon# the products that continue to perorm well rom the Nestle sta'le are Nestle
+unch and Nestle 7it,at chocolates, Nescae instant coee and /veryday Lairy
<hitener.
&a#e 12 o 25
7. <inancial Proce"ures
"n employee in 2inance T $ontrol ensures we ma,e inancially sound 'usiness decisions
to meet our lon#*term proita'ility #oals. Nestl is a inancial leader in the consumer
products industry and one o the ew irms around the #lo'e with a """ credit ratin#.
<e>re loo,in# or employees with stron# analytical and communication s,ills, a
willin#ness to em'race chan#e and the discipline to meet inancial standards.
2#1 Metho"s for :aisin- <un"s
Ambi!a Cotton to issue pref shares to =*% enture fun"
" V/NT)H/ und promoted 'y )T! "sset +ana#ement $ompany has orayed into
[Link] account 'y choosin# to invest in the $oim'atore*'ased "m'i,a $otton +ills (td
0"$+3, a ,nown name in the premium se#ment cotton yarn production and [Link].
"$+>s 'oard o directors early this wee, decided to issue 8.71 la,h shares to )T!
!nvestment "dvisory Services (td, trustees o the )T!>s venture und ]"scent !ndia 2und>,
throu#h preerential issue route. "m'i,a $otton will #ive the preerence shares at a
premium o Hs 171 per share 0o ace value o Hs 15 each3 and the company stands to mop
up Hs 16.18 crore rom the preerential issue to 'uttress its capital 'ase.
To acilitate the preerential share allotment to the )T!, the "$+>s 'oard has also decided
to raise the company>s authorised capital rom Hs 1 crore 015 la,h equity shares o Hs 15
each3 to Hs 15 crore 0one crore equity shares o Hs 15 each3.
The +ana#in# Lirector o the "$+, +r &.V. $handran, told Business Line that his
company had chosen the preerential issue route or its least cost proposition to stren#then
its capital 'ase, which is required to meet company>s [Link] pro9ect. -e said an [Link]*
ordinary #eneral meetin# o the mem'ers o the company has 'een called on +ay 16 to
see, the shareholders approval or the preerential allotment.
These investments would also result in enhancin# the company>s turnover rom the present
Hs 86 crore to Hs 165 crore on completion o the pro9ects. "m'i,a $otton is eyein#
/urope and the )S as emer#in# mar,ets or its yarn [Link].
"s per the present shareholdin# pattern o "$+, o the 15 la,h equity shares, the
promoters and their close relativesWassociates hold F6.11 la,h shares.
&a#e 13 o 25
8. Ma>or Competitors in the Mar!et
%N*5:NA? C/MP5*%*/:'
-alee' +il,
Blpers mil,
%ood +il,
Lairy @ueen +il,
5@*5:NA? C/MP5*%*/:'
L"NBN/
+!()&"
C/MP5*%*/:' A8$AN*AA5'
<e never compromise on quality and quantity
Bur [Link] mil, collection system ensures that the +il, you #et is o the inest
quality.
Bur products are availa'le in every city and town
4. 'B/* Analysis
Bne opportunity that Nestle has is that health*'ased products are 'ecomin# more popular
in the world, includin# in the )nited States. $onsumers are 'ecomin# more health
conscious, and reali8e that livin# lon#er isn:t only 'y luc, and #enetics. ($1 has not 'een
introduced in the )nited States yet. Nestle also has an opportunity o 'ein# even a lar#er
mar,et leader in %ermany with ($*1. <ithin two years o launchin# the product in
%ermany, they had captured 65M o the mar,et. This was due to the act that they
dierentiated the product, and %ermans simply preerred the taste. "nother opportunity o
($1 is that, 'ecause they are a mar,et leader, they can introduce more health*'ased
products in %ermany.
" threat to Nestle is the act that some mar,ets they are enterin# are already mature.
Lanone had an esta'lished leadership position in the yo#urt mar,et in 2rance. Since
&a#e 14 o 25
Lanone was the irst to arrive in the mar,et, they have always 'een the mar,et leader
there. "lso consumers in 2rance li,ed the taste o ($*1, 'ut researchers 'elieve they did
not repurchase the yo#urt 'ecause they preerred the taste o Lanone products 'etter.
"nother threat to Nestle is that there is intense competition in the )nited States yo#urt
mar,et. %eneral +ills: Koplait division is the leader in the yo#urt mar,et in the )nited
States. Koplait has 'een the leader or years and is constantly innovatin# new health
products.
%eneral +ills has 'een a stron# competitor o Nestle and they are not short o [Link]
and stren#th. Bne stren#th that they have is their 'rand reco#nition. Bne o their main
#oals has 'een to deliver 'rands that consumers trust and value and they have succeeded.
"nother stren#th they have is their distri'ution. Koplait is distri'uted to more stores in the
)nited States than any other 'rand o yo#urt. This is one o the reasons why they have
'een the mar,et leader in yo#urt or so lon#. "nother stren#th that %eneral +ills has is the
act that consumers simply ,now Koplait is healthy. Koplait is the only leadin# 'rand o
yo#urt to oer vitamin L and this vitamin is especially important or adult women.
0Koplait.com3 !t is not 9ust a coincidence that Koplait has vitamin L, 'ut they have
purposely added this vitamin to tar#et emale consumers.
%eneral +ills also has some wea,nesses. They act that they are the mar,et leader in the
)nited States may 'e hinderin# them rom innovation. They have 'een producin# Koplait
yo#urt or many years, and have oered a series o new products in the past ew years in
the nutrition department. +ost o these products however, are very common, and are
widely oered in the )nited States. The health ood industry in the )nited States has 'een
'oomin# and %eneral +ills does not oer enou#h products in the smaller niche mar,ets.
They have not entered into many un,nown areas 'ecause o their success in the yo#urt
mar,et.
"n opportunity %eneral +ills has is that its Koplait division is so successul. Koplait is the
only division o %eneral +ills that is currently earnin# a proit. They have a lar#e mar,et
share over their main competitors in the yo#urt mar,et. "nother opportunity that they
share with Nestle is that the health*'ased and nutritional ood mar,et is 'oomin#. They are
continually releasin# and mar,etin# new products in these mar,ets and they will continue
to do so while the mar,et continues to yield proits.
&a#e 27 o 25
The main threat that challen#es %eneral +ills is that there is intense competition amon#st
the top players in the yo#urt and related mar,ets. Nutrition and health is 'ecomin# more
and more important to consumers in the )nited States, and worldwide. "lon# with this
comes increased competition to #ain mar,et share. Simple supply and demand theories are
prevalent in these mar,ets. "nother threat %eneral +ills has is that smaller companies are
producin# similar products with the same or added nutritional 'eneits.
'tren-ths
S,illed la'or.
/ducated sta.
(ar#e num'er o oerin#s.
&re purchase virtual display.
"rran#ement o events.
%ood 'ac,#round o the company.
/asy to approach outlets.
&hysical evidence Stron# ;rand ima#e
@uality product
Solid 2inancial position
Stron# supply chain networ,
@ualiied wor, orce
$ommitment to -i#h @uality &roducts
2ocus on research and development /stimations o )-T +il, &roduction and
$onsumption up to ?558^ 54
Kear "nnual &roduction
0million liters3 "nnual $onsumption
0million liters3
&a#e 21 o 25
2773C74 DE 1)3#)( (5(#21
2774C17 DE 25(#34 (22#75
Bea!nesses
&hysically impossi'ility to have tar#et mar,et.
There is wea, mar,etin# o +il,pa, as there is no advertisement o +il,pa, on
oicial we'site.
(ac, o awareness amon# the tar#et mar,et.
!t Lependency on others 0#ovt. T sponsors3 or the arran#ement o events. The
tar#et mar,et o Nestle +il,pa, is upper middle and hi#h class 'ecause lower middle
and poor class cannot aord to 'uy )-T mil, due to its premium price.
!t is a main wea,ness o mil,pa, that there are dierent companies o mil, 'ut the
name o nestle mil,pa, is always stand in the last 'ecause o low advertisin# and
mar,etin#.
/pportunities
!ncreasin# interest o people
F1'illion customers are there in &a,istan or mil,. )pton now only 6 'illion
customers are 'ein# acilitated.?7 'illion customer mar,ets is still availa'le to 'e
penetrated.
2ew and wea, competitors
/stimations o )-T +il, &roduction and $onsumption up to ?558^ 54
Kear "nnual &roduction
2773C74 _` 1)3#)( (5(#21
2774C17 _` 25(#34 (22#75
The pro9ected values o )-T +il, consumption and production are o'tained rom
the "H!+" model.
+ore people are comin# towards processed mil, 'ecause loose mil, is dan#erous
or health due to a lot o contamination.
&a#e 22 o 25
%rowth o processed mil, is increasin# with ?5M annually so Nestle +il,pa, has
the opportunity to capture a lar#e share o mar,et.
&a#e 2( o 25
*hreats
+a9or player may enter tar#et mar,et
(e#al and ethical issues.
+ar,et se#ment #rowth could attract new entrants.
/conomic slow down can reduce demand. Two main competitors -alee' and
Blpers are main threat or +il,pa, especially the Blpers is #rowin# very ast.
!nlation is #ettin# hi#her and hi#her so the purchasin# power o the people is
decreasin# day 'y day.
There is no entry 'arrier or new entrants as the Blpers has come in the mar,et.
Taste o consumer has already developed which is hard to chan#e
15. Conclusion
Problems <ace" By Nestle
Nestle is acin# the pro'lem that is re#ardin# the quality o mill . it is 'ein# perceive that
inant or child 'elon#in# to poor amily who use low quantity o mil, then required in
daily use are #ettin# eected.
!t is hard to a#ree the customer to swich to pac, mil, 'ecause o taste which is huredel or
urther [Link]
:ecommen"ations
Nestle must state in writin# that it accepts that the international code and the su'sequent
relevant <orld -ealth "ssem'ly Hesolutions are minimum requirements or every
country.
Nestle must state in writin# that it will ma,e required chan#es to 'rin# its ;a'y 2ood
+ar,etin# policy and practice into line with !nternational $ode and Hesolutions.
&a#e 2) o 25
11. :eferences
www#nestle#com F Me"ia
wi!ipe"ia#or-&wi!i&NestlG
www#foo"an""rin!europe#com
www#foo"nai-ator#com
www#Aoo-le#com
www#share infoline#com
As!#com
share!hanCfirststep#com
&a#e 1 o 25