A. Background of the study
Nestle Company is known as a food-producing company which widely operates in Europe, Asia, Australia, America and Africa with 470 factories around the world. For the Philippines, Filipinos are very much familiar of Nestle as a company of food products which is part of their every day meal. Generally, Nestle Philippines produced so many products which marked Filipino daily meals such as NIDO, MILO, BEAR BRAND or even NESCAFE brand which helps in empowering their health and stamina. Our group decided to choose this company for we are very much familiar of this company as a food producing company. We are also interested on how this largest food producing company maintains its stability even though there are many factors that affect its operation since then. Today, Nestle Company (Nestle Philippines) is a robust, stable organization. It is proud of its role in bringing the best food throughout the stages of the Filipino consumers' lives. In fact it’s on its 100th year of service to the Filipinos which helped in strengthening their lives. Our group is also interested on the fact that they are helping so many Filipinos lives wherein they provide the Filipino Coffee Farmers livelihood jobs. As consumers of Nestle products, we are also concerned of its reliability and credibility of goods and services that they bring us locally or internationally. In order to fully understand the nature of this multinational company, our group had to learn deeper about its History, Management, Marketing Environment, Production, Pricing, and Places of Distribution and how it promotes its goods and services.
B. History of the company
Nestlé began in Switzerland in the mid 1860s when founder Henri Nestlé created one of the first baby formulas. Henri realized the need for a healthy and economical product to serve as an alternative for mothers who could not breastfeed their babies. Mothers who were unable to breastfeed often lost their infants to malnutrition. Henri’s product was a carefully formulated mixture of cow’s milk, flour and sugar. Nestlé’s first product was called Farine Lactée (“cornflour gruel” in French) Henri Nestlé. The product was first used on a premature baby who could not tolerate his mother’s milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henri’s new formula and it provided the nourishment that saved his life. Within a few years the first Nestlé product was marketed in Europe.
In 1874 the Nestlé Company was purchased by Jules Monnerat. Nestlé developed its own condensed milk to contend with its competitor, the Anglo-Swiss Condensed Milk Company. This Company made products like cheese and instant formulas. The two companies merged in 1905, the year after Nestlé added chocolate to its line of foods. The newly formed Nestlé and Anglo-Swiss Milk Company had factories in the United States, Britain, Spain and Germany. Soon the company was full-scale manufacturing in Australia with warehouses in Singapore, Hong Kong and Bombay, but most production still took place in Europe. Although Nestlé products were already available in the Philippines as far back as 1895, it was not until 1911 when The Nestlé and Anglo Swiss Condensed Milk Company was established in the country, with its first sales office in Calle Renta, Binondo. By the 1920s Nestlé was creating new chocolate and powdered beverage products. Adding to the product line once again, Nestlé developed Nescafé in the 1930s and Nestea followed. Nescafé, a soluble powder, revolutionized coffee drinking and became an instant hit. With the onset of the Second World War, profits plummeted. Switzerland was neutral in the war and became increasingly isolated in Europe....