The Launch

Nestlé: Good Food, Good Life

Nestlé is a Swiss multinational food and beverage processing conglomerate

corporation headquartered in Vevey, Switzerland. Nestlé has 447 factories,
operates in 191 countries around the world with employs around 352,000
people and, it is the world's largest Consumer Food Products industry, measured in terms
of revenues (CHF10.46 billion) and other metrics, since 2014. It ranked No. 64 on the
Fortune Global 500 in 2017 and No. 33 on the 2016 edition of the Forbes Global 2000 list
of largest public companies.
The word Nestlé is an intransitive verb, which means to settle down comfortably and
snugly... Nestlé runs with the ultimate objective of Unlocking the power of food to enhance
the quality of life for everyone, today and for generations to come, and it taking good steps
to achieve the ultimate objective. It is one of the main shareholders of L’Oréal, the world's
largest cosmetics company. The company grew significantly during the First World War and
again following the Second World War, expanding its offerings beyond. The company has
made a number of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in
1963, Libby's in 1971, Rowntree Mackintosh in 1988, Klim in 1998, and Gerber in 2007.The
company also taking care of CSR (Corporate Social Responsibility) with the motive of creating
better livelihood opportunities for the stakeholders. The Company follows a structured
governance procedure to monitor CSR activities in India.

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Corporate Social Responsibility (CSR) Policy:
 Nutrition: A large part of our population is impacted by the double burden of
malnutrition. Improving nutrition awareness of communities is a focus area.
 Water and Sanitation: India is among the world’s most water-stressed regions.
Additionally, safe drinking water is a concern in many parts of the country. The
Company would focus on helping farmers reduce water usage in agriculture, raising
awareness on water conservation, and providing access to water and sanitation.
 Rural Development: Supporting the sustainable development of farmers will be the
third focus area.
 Livelihood: Unemployment is a major issue impacting development and health
outcomes. The Company would focus on livelihood enhancement through a piece of
trainings.
 Education: The Company would focus on supporting education, with a special focus
on education for the girl child.

Nestlé industry is currently working on the cause of pollution control by adopting new methods
of packaging under the scheme, #SustainablePackaging #BeatPlasticPollution.

History:
Henri Nestlé, a German-born Swiss confectioner, was the founder of Nestlé
in 1867 in Vevey, Switzerland. Nestlé's origins date back to the 1860s,
when two separate Swiss enterprises were founded that would later form
Nestlé. In the following decades, the two competing enterprises expanded
their businesses throughout Europe and the United States.

Henri Nestlé
Nestlé India Limited:
Nestle India is a subsidiary of Nestle S.A. of Switzerland. The company has presence across
India with 8 manufacturing facilities and four branch offices spread across the Golden
quadrants of India, they are Delhi, Mumbai, Chennai and Kolkata. These four branch
offices in the country help facilitate the sales and marketing of its products. Twenty-nine of
Nestlé's brands have annual sales of over CHF1 billion (about US$1.1 billion), including
Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and our all-time

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favourite Maggi under its name. The company has seen various criticism over its marketing of
baby formula as an alternative to breastfeeding in developing countries, its reliance on child
labour in cocoa production. Nestlé's products include baby food, medical food, breakfast
cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods,
and snacks.
Although the company has established itself strongly in the country with the presence of a
plethora of varieties of food, we tend to associate the name ‘Nestlé’ only with snacks and short-
eats, and not meals in itself. Realizing this, and seeing this as a business opportunity, the
company has devised a plan to overcome the said situation.
Seeing this situation as a business opportunity as well as with the advent of increase in the
number of working professionals, especially in the metropolitan cities of the country, Nestlé
India Limited eyeing a launch on pre-packed, pre-cooked, frozen meals to ensure the
unassailable growth and market share in the country.

Product: Chef o Matic

 Veg-meals: Dal Makhani and American Cheese sandwich with Apple-Cabbage Slaw.
 Premium pack: Pepper Chicken with Corn Stir-Fry and Ghee rice bowl.
 Vegan pack: Veg Pulao and aloo kofta with lactose-free coconut milkshake.

Features of the products:

 The mission of "Good Food, Good Life" is to provide consumers with the best tasting,
most nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
With the ultimate objective of fulfilling the mission statement the products have been designed
to serve the society with the benefits of taste and nutrition in a convenient mode of supply.
 The primary essence of each package is taste. Each package is gone through several
experiments and come up with a unique taste by our professional cooks.
# Delight in every bite.
 The products are the complete pack of a meal which provides protein, vitamins,
carbohydrates, fat, minerals such as calcium etc…
# More flavour for less.
 The product serves the soul of freshness in its each bite. We serve the food with good
quality of fresh inputs.

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 # Farm to fork
 Packaging is the pillar of marketing, but the purpose also serves the importance goal
of protecting the product. Since the food product is fragile we use tetra pack
protection packaging.
“Don’t design for brands, design for people interacting with brands.”
 Product units are packed in 6-layered Tetra pack brick aseptic.
 The pack designed with portions suited for one person, this will make the lives of
working professionals a lot easier, by reducing the time spent of food considerably.

Targeted audience:
The question begins with who does the product want to serve?
The main motive of the product to target and reach college and graduate students, government
sectors and especially IT sector working professionals in the metropolitan cities of India. This
product would really hep them in making the lives of working professionals a lot easier, by
reducing the time spent of food considerably. On the other hand, these foods like boxed entrees
and frozen dinners, reduce the investment of energy, time, or cooking skills needed for food
preparation.
Thus, if the product enters into a contractual basis in the educational and industries food
compartment it would realize high sales and revenue and the working population of the country
tends to buy more of the products.

Pricing strategies:
Pricing strategy usually changes as the product passes through its life cycle. So, the best-suited
strategy is a cost-based pricing strategy to tap into various markets in the world. The price
should be set at a moderate level in order to attract a large number of buyers and to gain a
large market share.
The competitive prices are compensated with high volumes of the products hence competition
and cost are the two major factors in deciding the pricing strategy of Chef o Matic. Nestle
strives to capture maximum market share with low prices and high-quality standards. As we
are trying to tap into all segments of income category we keep differential prices depending on
offerings since, offerings are available in wide variety of packages so that people can buy
according to their needs.

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 Price per individual pack in terms of Rupees (₹)
Basis of inputs Veg-meals Premium pack Vegan pack
Raw materials ₹20 ₹25 ₹25
Electricity ₹8 ₹10 ₹10
Packaging ₹10 ₹10 ₹10
Factory overhead ₹2 ₹5 ₹5
Miscellaneous ₹3 ₹5 ₹3
Retailer margin ₹2 ₹5 ₹2
Profit ₹5 ₹5 ₹5
Total MRP ₹50 ₹65 ₹60

In accordance to our strategy we have decided to offer the product to the customers at the price
of Rs.50, Rs.65, and Rs.60 respectively. The price is very much compatible and the offer is
substantial enough to attract a large percentage of market in very quick time.

Detailed budget for the product line:

The company is introducing a new product in the current market so, it should follow some
product development strategy for the particular product line to reduce the risk of loss and to
grab a great market share. Promotion is the first step that should be taken at most care to
make a good product and brand image in the mind of customers so that they will buy only our
product. Thus, the company has to spend on promotion, acquiring a new layout, staffing and
new employee salaries, day to day costs, fixed cost incurred on purchase of fixed assets,
raw materials, product distribution etc.…

Mode and criteria of promotion

a. Awareness.
b. Electronic media.
c. Print media.
d. Bill boards.

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 Mode of distribution

CONSUMER DISTRIBUTOR

RETAILER WHOLESALER

So, the company could spend more on various activities to ensure the profit on new product.
Thus, we have detailed budget;

Basis Description Amount (₹)

Cost of land The amount spent on acquiring the land, 2,50,00,000
Raw Materials Obviously we need inputs to produce the 50,00,000
product.
Electricity It is the ultimate need to produce the product. 5,00,000
Staff Salaries Company should pay the employees for their 10,00,000
work.
Promotional Expenses Spend to realize high sales. 6,50,000
Technology Upgradation in Production is necessary. 7,00,000
Distribution Expenses Product to should reach the ultimate 6,00,000
customers.

Rahul G
2010220
1 BCOM B

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