A marketing report and analysis of Nestle

A victualsstuffing report and analysis of NestleNestle is the leader in food and sw eachow industry with wide range of products which accompany consumers live from birth through adulthooh, from breakfast to dinner, at home and elsewhere. This, day by day, represents them as a great(p) responsibility and commitment to quality, taste and nutrion across either their products, to touch lives in a autocratic way and earn customers trust.They have joined into nutrion, health and wellness dodging with three fundamental tenetsPleasure and health Nutrion have great taste if it is a part of healthy equaliserd diet.Eating with moderation and balance Nestles products are designed to a variety of choices for every moment of the day and for all company members.Transparent conference Transparent is the best way to throw out customers trust. All ingredients used to produce Nestles products are included on the label.With long term commitment is to enable customer an informed choices about diets and lifestyle, helping them apprehension for themselves and their families, Nestle is really a leader in nutrion, health and wellness area. parentage generates the most revenueNutrion, Health and Wellness generates the most revenue for Nestle. In the recent year 2010, Nutrion, Health and Wellness confirms Nestles strategic direction, with main products is nutrient and Beverages creat 103.722 CHF millions in revenue equal to 94.53% in Total Revenue.Nestle, 2011, Strong 2010 performance vex release, http//www.nestle.com/Common/ NestleDocuments/Documents/Library/Events/2010-full-year-results/Press_Release_EN.pdfNutrion, Health and Wellness merchandise, which is ampere-second percent right as determining from Nestles Board of Management in 2007, is a massive market for growing. Over 5 year operating, the industry keep fastest growing rate and contribute most revenue for corporate.This industry has been opened for Nestle S.A in 2007 by Brabeck Letmathe Nestle Groups Chairman when he produce Nestle Roadmap a strategy to transform corperate from traditional business into Nutrion, Health and Wellness with catchword near Food, Good Life .Business generates the most profitNutrion, Health and Wellness is the area that brings in for corporation the most profit.In 2010, with EBIT rate of 13.4% equal to 13.898 CHF millions, Food and Beverages main range of products in Nutrion, Health and Wellness area creats main income in total for corperation.Nestle, 2011, Strong 2010 performance press release, http//www.nestle.com/Common/ NestleDocuments/Documents/Library/Events/2010-full-year-results/Press_Release_EN.pdfBusiness will drive grow in the following(a) decadeThese are 4 areas provide Nestle exciting prospect for continuos growing in the next decadeNutrition, Health and WellnessEmerging markets and PPPOut-of-home leadershipPremiumisationNestles SuccessfulTransformation from traditional business into a nutrion, health and wellness company, that brings them to No.2 player all over the world.Efficiently investing in value-added category.Stronger finance and credit.Flexible reaction to changing in strict health care warning and unfair competing.Their worldwide strategy and local execution help them reach almost targets in recent years.Corperate Responsibility.In recent years, to become a successful corperation nowadays, these are their springy programs, which have contributed not only for society but also for themself as listedEssential ProgramContextActionAchievementRural breedingCreat positive impact on argriculture area (provide local employment, technical transforming), and evironmental developmentProvide 200.000 local employmentsFor Nestle profitable result, better quality in barren material, raw material supplying stock warrantImprove standard of living, increase productivity in rural and economic in generalIn 2009, they provided microfinance in tote up of CHF 48 millionsFor Customer more than qualified and healthier products for consumerMinimize impact of climate change and sometime is social issuesFor Society graduate(prenominal)er quality for crop, more technical assistance, developping employment and environment, lower natural resources use, larger in yield help lower producing cost.Creating for themsef a stable, protected and qualified raw material to guarantee shareholder value-addedTechnical assistance and knowledge transferWater and environmental SustainabilityProduce tasting products that also have more and more lower environmental footprint by improving subroutineal efficiacyThey have already invested over CHF 220 millions in sustainable programs during 2009For Nestle compact risk concerning health care standard, reduce cost, creat long term availability of resources, profitable growthReduce use of water, some non-renewable energy and resources with target to reduce CO2 emissing performance and other evironmental affects send more projects to reduce greenhouse affect, eliminate waste in mo vementFor Society better standard of livingPromote with supplier to help them a sustainable practices in supply chainHuman Resources DovelopmentLong term investment in trainingOffer more comprehensive training, more opportunities for vocationFor Nestle skilled workforce, improve performanceContinuous improving environmental and occupational health and safety managementFor Society more employment, better standard of living, higher worhplace safety standard.Global and diversify Corperation developingImprove health and safety performanceIncrease Nestles engagement, employee health and well creation, reduce accident in body of workCreating an ethical and responsible workplaceClimate Change SolutionReinforce Nestles role and plan to reduce greenhouse gas emissionsDirectly controlling operationFor Society lower environment impactImprove through supply chainHelping Nestles consumerCrisis ManagementFood and beverage market is changing everyday, customers requirement put producers into ci rcumstance that whether they adapt to new trend or left behind on the race with other competitors.Nestle is an outstanding example in transforming their traditional managing operation into Health, Nutrion and Wellness management with Roadmap to Good Food, Good Life a unique flexible strategy that brings them to number 2 largest company all over the world.In Management and Strategic segment, I am pleased to express Strategy Nestle Roadmaps success and Nestles solution for Melamine incident in China.In the Crisis management, Melamine scandal in China is outstanding example. On March 15th,2008, Chinese authorities informed that their over 20 Chinese milk companies was launching products contained Melamine this toxic has caused at least 4 babiesdeath and other 1253 Chinese children have fallen ill.Suppliers have been believed to add Melamine to milk to conciliate it higher in protein. There was some ranges of Hong Kong Nestles products using Chinese milk powder.Source http//news.bbc .co.uk/2/hi/asia-pacific/7623037.stmAfter that, some press report in Hong Kong claimed a Nestle growing milk containing Melamine. Immediately, Hong Kong government requested Nestle to withdraw all their products that have been found to contain Melamine. The problem could have pushed them into a long-lasting d maketurn and other consequence concerning reputation. However, commented on this scandal, Peter Brabeck Letmathe Nestle Groups Chairman said Sales in China are rather being favouredIts rather positive than negative( Reporting by Devidutta Tripathy editing by Sue Thomas ) Ref Reuters Sep 26th, 2008http//www.reuters.com/article/2008/09/26/nestle-idUSDEL31014820080926 How did they react?Yes, it is wild that Nestle today, after 3 years from this scandal, did not failed and become the leader in food and beverage area, the number 2 largest corperation all over the world.The counterbalance step in chain of resolving incident was complying with authorities request in showing all in gredients and formular used to produce milk, they were also withdrawing some kinds of products in Hong Kong as authorities requests as in line with Nestles Corperate Business Principle.In the mean time, they sent their samples of milk to honour testing center like Hong Kong Standards and scrutiny Centre Ltd., Food Industry Research and Development in Taiwan, etc. This action was conducted at places where their products have presented.The third step, they announced governments reports and confirmation that their products have been 100 percent safe and exact with things printed on their products label.The final step in this chain, they have combine Research and Development department and Maeketing department in communication with consumer on their producing standards, products quality that 100 percent safe and good for health as confirm from authorities.With this action, they have been not only winning back customers belief on their products, but also underlining that Nestle is the N o.1 food and beverage producer all over the world with best quality and healthy products, as their slogan Good Food, Good Life .This is really a key turning-point to help Nestle successful as today.Strategy Nestle Roadmap.Source http//www.nestle.com/Common/NestleDocuments/Documents/About_Us/Nestle_Roadmap.pdfNestles strategy is being considerred the leader in Nutrion, Health and Wellness, and reference for financial performance. That is conspiracy between their opportunities competitive advantages, internal strength operational pillars, focused segment growth drivers. This is a simple but right-targetting product from Peter Brabeck Letmathe Nestle Groups Chairman.Three major elements in their strategy including Internal strength Operational pillarsInnovation and return ( from active and creative workforce )Wherever, whenever, however ( supplying capability )Consumer communication ( one of RD activity )Operational efficiencyThese areas will help accelerate Nestles operation in all key areas with excellent achievement in execution.Focused segment Growth driveNutrion, Health and Wellness Value-add ( a massive market for healthy product )Emerging markets and popularly positioned products the lower end. ( in 2011, growth scenaro in emerging market is around 170 billions US dollars )Out-of-home consumption DifferentationPremiumsation the high endThis areas provide exciting prospect for growing.Opportunities Competitive advantagesUnmatched product and brand portfolioUnmatched research and development capabilityUnmatched geographic front manPeople culture, values and attitudeThis competitive advantages come from the value chain over decades, the link between great products efficient RD, great people laborious value, broad geographic entrepreneurial spirit.This combination day by day is creating Nestles motivation on the road to leader in Food, Health and Wellness.In general, Roadmap is created from the combination between competitive advantages an d their own strength and a right targeting market. Roadmap is almost following three major steps in building strategy for corporate. analysis determining the current position ,situation, performance and aspirations of the organisation and its members. Herein, that is competitive advantages. It help them regconize potential opportunities, their right strength that would make drive growth for Nestle in the future.Choice determining possible courses of action, their possible consequences, problems and difficulties, benefits and advantages. Decision making is the most important step in every company, a wrong choice nitty-gritty a foresee failure. On roadmap, that is drivegrowth, corperate has been right when they choose emerging markets and popularly positioned products to be their motivation in growing in the next strategic years. effectuation committing the organisation to pursue one of the possible future courses of action. Herein, operation pillars is a group of process to implemen t a lack or a bitty failure in the overall strategy.Vision, Mission, Goal.Nestles Vision By bringing together all of its global RD resources, Nestle is able to provide high quality, safe food solutions for consumers worldwide whether this is in terms of nutrion, health, wellness, taste, texture or convenience. Above all, Nestle brings to consumers products that are of the highest quality. And safety is non-negotiable.Werner Bauer, Chief Technology Officer, Nestle S.A.Innovation, Technology and Research DevelopmentNestles Mission Their mission is creating value for shareholder and society.CREAT SHARED VALUEReduce Poverty + Improve Health + Empower PeopleSUSTAINABILITYProtect the future conformanceLaws, Business Principles, Codes of conductNestles Goals Being recognized the leader in Nutrion, Health Wellness, and the industry reference for financial performance.But how they have been motivating their employees over decades to be the leader.Performance ComplianceAll Nestles employe es have a good knowledge that here or there, we must have responsibility for down performance in the organization.Company have a good reward and recognization tied to performance.Culture BuildingSustaining a high performance environment.Maintaining and evolving Nestles culture based on their own principle.Source Creating successful future Jan 2008Comment.