Lejano, Mark Albert
Basa, Carol Belle
Current Marketing Situation Analysis
Nearly a hundred years after it first started operations in the country, Nestlé Philippines, Inc. (NPI) today is a robust and stable organization, proud of its role in bringing the best food and beverage throughout the stages of the Filipino consumers’ lives. The Company employs more than 3,200 men and women all over the country. It is now among the top companies in the entire Nestlé world, and is among the country’s Top 10 Corporations. Its products are No. 1 or strong No. 2 brands in their respective categories. The Early Years. 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. The Company was forced to suspend its operations during World War II, but soon made a comeback after Liberation, under a new name: Filipro, Inc. It continued to import products such as MILO, NIDO powder milk, MILKMAID and NESCAFÉ from other countries. In the early 1950’s, Filipro encountered difficulties when the Philippine government imposed import control. Due to lack of imported products to sell, it was forced to become a distributor of peanut butter, napkins, fruit preserves, and patis (fish sauce) just to keep its operations going. Local Production. In 1960, Nestlé S.A.and San Miguel Corporation entered into a partnership resulting in the formation of Nutritional Products, Inc. (Nutripro). In 1962, Nutripro’s first factory started operations in Alabang, Muntinlupa to manufacture NESCAFÉ. In 1977, Filipro, Inc. and Nutripro Inc. merged under the name Filipro, Inc. In 1986, Filipro, Inc. changed to its present name as Nestlé Philippines, Inc. Nestle now has manufacturing facilities in Cabuyao (Laguna), Cagayan de Oro, Lipa (Batangas), and Pulilan (Bulacan) to meet the growing demand for Nestlé products in the country. Soon to rise is another factory in Tanauan, Batangas. Growth and Diversification. In 1991, Nestlé pioneered the AIJV (ASEAN Industrial Joint Venture), a regional complementation program. The Company participated in this program with the production of breakfast cereals at the Nestlé Lipa Factory, for export to ASEAN markets. Today, three of the Nestle factories in the Philippines – Lipa, Cabuyao, and Cagayan de Oro -- serve as ASEAN Supply Centers to meet the requirements of Nestle markets in the region. In late 1998, Nestlé Philippines became a wholly owned subsidiary of Nestlé S.A., following the latter’s purchase of all of San Miguel Corporation’s equity shareholding in the Company. Driven by its mission to nurture generations of Filipino families, Nestlé today produces and markets products under some of the country’s well-known brands such as NESCAFÉ, NIDO, MILO, NESTEA, MAGGI, BEAR BRAND, NESTLÉ, and PURINA, among others. Its product range has expanded to include coffee, milk, beverages, non-dairy creamer, food, infant nutrition, ice cream and chilled dairy, breakfast cereals, confectionery, and pet-care. Source: http://nestle.com.ph/AboutUs/Pages/History.aspx
B.Current Product/Brand Situation
Nescafe is a combination of Nestle and cafe. First Nescafe was introduced in Switzerland, on April 1st for the first half of the next decade; however, World War II hindered sit success in Europe. Nescafe was soon exported to France, Great Britain and the USA. For a business to be successful in the long term it has to create value, not only for its shareholders but also for society. We call this Creating Shared Value. It is not philanthropy or an add-on, but a fundamental part of our business strategy. NESCAFÉ is the world’s leading coffee brand, with sales of over CHF 10 billion in 2009. Around 4,600 cups of NESCAFÉ are consumed every second.
Over the past few years,...