Introduction

INTRODUCTION :
 Nestle India Limited is a subsidiary of the global food and beverage conglomerate, Nestle S.A.,
headquartered in Switzerland. Established in 1912, Nestle India is one of the leading players in the
Indian food and beverage industry, with a diverse product portfolio spanning several categories,
including milk products, beverages, prepared dishes, confectionery, and infant nutrition.
 The company operates eight manufacturing facilities and four branch offices across India, catering to
the diverse taste preferences and nutritional needs of consumers. Nestle India's product range
includes iconic brands such as Nescafé, Maggi, KitKat, Milky bar, Nestea, and Cerelac, among
others.Nestle India is a publicly listed company, with its shares traded on the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE).
 The company is known for its commitment to quality, innovation, and sustainable business practices,
adhering to stringent food safety and regulatory standards.Suresh Narayanan is the Chairman and
Managing Director of Nestle India, a company which commands a market capitalization of over
INR 1,70,000 crores. Narayanan is credited with seeing the company through some of its most
turbulent periods and turning around its fortunes.
BUSINESS MODEL OF NESTLE:
Nestle has managed to find a comfortable position in every family with its business approach to value
building and its rock-solid marketing mix. Naturally, since its inception, it has come a long way. And this
makes FMCG the world’s number one brand. Nestle has seven vertical businesses with health, nutrition, and
health goods. The stars in the BCG Matrix include dairy goods, powdered, and liquid drinks, ready dishes
and culinary aids, and clothing business sectors. So, here is the business model of Nestle.
1. Channels
 Retail Stores, Media, News, Website, Social Networks.
2. Key Activities
 Manufacturing and Production: Nestle maintains a robust manufacturing and

production network globally. This ensures they can deliver their products efficiently
and consistently to a vast consumer base.
 Logistics and Distribution: An effective logistics network is crucial for Nestle to get
their products from factories to store shelves around the world. They constantly
optimize their distribution channels for better reach and faster delivery.
 Research and Development (R&D): Nestle heavily invests in R&D to create
innovative new products, improve existing ones, and cater to evolving consumer
preferences. This focus on nutrition keeps them at the forefront of the food industry.
 Quality Control: Nestle prioritizes strict quality control measures throughout the
production process. This ensures food safety and upholds their reputation for high-
quality products.
 Marketing and Branding: Nestle utilizes powerful marketing and branding
strategies to build brand loyalty and awareness. Their iconic brands are recognized
globally.
3. Key Resources
Our agricultural raw materials are supported, mainly through trade channels, by coffee, cereals,
vegetables, fruit, herbs, sugar, and spices. All suppliers around the world have a large variety and must
comply with the quality standards of Nestle. The suppliers with which they operate are audited routinely
and raw materials are frequently checked to ensure that they continue to match these criteria.
4. Nestle’s Key Points of Business

 Ensures sustainable organic sale growth, enhanced margins, and consumer-relevant nutrition for all
regardless of the degree of income.
 Improvement of operational efficiency to raise the underlying earnings from trade.
 Discipline and clear priorities for allocation of resources and capital.
5. Revenue Model of Nestle

Net profit for the Nestle Group increased from approximately CHF 7 billion in 2017 to over CHF 12.2
billion in 2020. Nestle has more than 2000 brands in over 180 nations and is one of the largest food
and beverage companies in the world. In Vaud, Switzerland, Nestle is a worldwide food and drink
company. In 2019, Nestle’s largest market, the Swiss enterprise, accounted for almost 46% of its
global turnover in America. In Europe, the Middle East, and North Africa, almost 29 per cent was
earned that year. Powdered and liquid beverages, which amounted to 23 billion Swiss francs this year,
were the best-selling items of the Nestle Group based on global trade. in 2019. With a total of just
around 15 billion Swiss francs, Nutrition and Health Science came in second, yet in terms of organic
growth, it was the highest in the product category that year. The category increased in the measured
period by approximately four and a half per cent.
6. Services
Nestle will play a key role in establishing consumer loyalty with the pre-selling and post-sales services.
Post-sales services are seen by modern customers as crucial as marketing and promotion. In today’s
technologically advanced society, the force of negative e-WOM due to poor support services cannot be
undermined. To avoid damaging brand reputations, the company should analyze its support operations
and utilize them as a vehicle to promote a favorable word in its mouth because of fast, prompt, and
effective services of support.
7. Positioning
The placement procedure is to create the desired picture in the mind of a customer for a business and its
items. In terms of customers, Nestle KitKat has a competitive advantage over competitor chocolates.
Nestle’s name and emblem alone are brands that show customers that attract them to their products.
Thanks to the brand name, everybody knows that Nestle has a big quality mark for the client, which
makes it easy to convey.
8. Target Market of Nestle

The objective market is the process of developing market coverage plans, which market segments offer
Clonard the best opportunities may fundamentally be shown by the group of clients that have the
fundamental requirement to buy the item from the organization.
Nestle KitKat is a product that everyone can love. However, when we launch this product, the market
targets should also be selected. KitKat’s main target market will be children aged 8-14 because their
children like chocolate very much. Youth aged 15-30 are the secondary focus. It is also possible to
target both men and women with higher salaries. In urban rather than rural locations, the KitKat can be
easily available. In the case of marketing initiatives, middle-sized people with good salaries, from
urban areas, should be targeted.
9. Value Proposition
The objective of Nestle is to improve the quality of life and contribute to healthy living and a
healthier future. To improve the livelihoods of 30 million communities directly related to their
operation.
 Nescafe: soluble coffee

 Nespresso: premium restaurant coffee and home education and growth of lifespan.
 Dolce Gusto: different beverage machines and capsules.
NESTLE’S PRESENCE IN INDIA
 After more than a century-old association with the country, today, NESTLE India has presence across
India with 8 manufacturing facilities and 4 branch offices.
 NESTLE India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by its
manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in 1989; Samalkha
(Haryana), in 1992; Ponda and Bicholim (Goa), in 1995 and 1997, respectively; and Pantnagar
(Uttarakhand), in 2006. In 2012, Nestle India set up its 8th manufacturing facility at Tahliwal
(Himachal Pradesh).
 The 4 Branch Offices located at Delhi, Mumbai, Chennai, and Kolkata help facilitate the sales and
marketing activities. The NESTLE India’s Head Office is in Gurgaon, Haryana.
COMPETITION
Recent Performances
 Nestle India shares drop over 5% to record worst day in 3 years.
 Shares of Nestle India on Thursday fell up to 5.4% to the day's low at Rs 2,409.55 on BSE after the
multinational FMCG major was found adding sugar to baby food products sold in India but not in
Europe and UK. Following the revelation, the health ministry was also said to be concerned about the
issue.
 Today's fall in shares of Nestle, regarded as a long-term compounding machine, was the worst single
day drop in the last 3 years.
Company Linkage
Nestle India Limited is the Indian subsidiary of Nestle which is a Swiss multinational company. The company
is headquartered Gurgaon, Haryana. The company's products include food, beverages, chocolate, and
confectioneries.
The company was incorporated on 28 March 1959 and was promoted by Nestle Alimenting S.A. via a
subsidiary, Nestle Holdings Ltd. As of 2020, the parent company Nestle owns 62.76% of Nestle India. The
company has production facilities in various locations across India.
Product category and operation segment:
Based on Nestle's 2021 Annual Review [Nestle Annual Review 2021], here's a breakdown of their product
category and operating segment performance:
Product Categories:
 High-growth categories: These categories, including coffee, pet care, nutrition,

water, and nutritional health science, represent a significant portion of Nestle's
business (63% of sales) and witnessed an impressive growth of 8.2%.
 Plant-based food products: This is a growing area for Nestle, with sales reaching
around CHF 800 million and organic growth of 16.8%.
 Established brands: Nestle boasts a portfolio of trusted brands, with 31 of them
generating over CHF 1 billion each in annual retail sales. These established brands
provide a solid foundation for the company's sales.
Operating Segments:
 E-commerce: This channel is gaining traction for Nestle, with e-commerce sales
representing 14.3% of total sales and growing by 15.1%. They're also investing
heavily in digital spending (51%).
 Direct-to-consumer: Direct sales to consumers are another growing segment,
accounting for 8.7% of sales with an 8.7% growth rate.
 Premium offerings: Premium products are a significant contributor, representing
35% of sales and experiencing a growth of 12%. This indicates a strong consumer
demand for Nestle's high-quality products.
 Emerging markets: These markets are crucial for Nestle's future growth,
representing 41% of sales and growing by 7.8%. The company is focusing on
affordable, accessible products with fortification in these regions, and this segment
saw a growth of 7.1%.

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INTRODUCTION :

BUSINESS MODEL OF NESTLE:

 Manufacturing and Production: Nestle maintains a robust manufacturing and

4. Nestle’s Key Points of Business

5. Revenue Model of Nestle

8. Target Market of Nestle

 Nescafe: soluble coffee

NESTLE’S PRESENCE IN INDIA

 High-growth categories: These categories, including coffee, pet care, nutrition,

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