Nestle Product Startegies

Topics: Maggi, Milk, Nestlé Pages: 6 (1225 words) Published: January 24, 2011

• Nestlé’s relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. • After India’s independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestlé responded to India’s aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, and transformed into a prosperous and vibrant milk district. • Nestlé has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India.

• Nestlé India is a subsidiary of S.A. of Switzerland.


• With seven factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards.

Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita

The company broad product portfolio includes Milk Products & Nutrition, Beverages, Prepared Dishes & Cooking Aids and Chocolates & Confectionary. Milk Products & nutrition The Milk Market in India is Rs. 1 lakh Crore. The company milk products & nutrition portfolio encompasses a wide range of products that includes milk, skimmed milk, value added products like condensed milk, curd, ghee, yogurt, cheese and raita. These products are sold under various popular brands - Nestle Everyday, Nestle Milkmaid, Nestle Milk, Nestle Fresh n Natural, etc. The Milk products and Nutrition division contributes more than 46 per cent to the company’s revenues. Use supply Chain Management for the strong distribution channel establishment in the dairy products. If they invest in cheese and butter the might fall flat as this market has high penetration Beverages Indian beverage market is Rs. 7500 Crore.Under the beverages segment, the company mainly sells instant coffee.It is the largest coffee company in India, commanding market share of more than 11 per cent. Besides, it sells a malted chocolate drink, Nestle Milo. The beverages division contributes around 17 per cent to the company's revenues. Beverages contribute a major portion in the total export market. The company exports instant coffee to various countries such as Russia and Japan. Besides, it also exports some of its other products.

Prepared Dishes & Cooking Aids Prepared Dishes Market in India is 2900 crores. Nestle's Maggi 2 -Minute Noodles has become an almost synonymous name for instant noodles in India. The company later extended culinary products such as sauces, pizza sauce, healthy soups and magic spice cubes. The company also introduced new variants of noodles such as Vegetable Atta Noodles, Dal Atta Noodles and Rice Noodles Mania under its Maggi Noodles umbrella in the last few years. This division contributes 23 per cent to the company's revenues.

Chocolates & Confectionary The Chocolate & Confectionery Market is Rs. 2000 Crore. The company also has a strong presence in the chocolates & confectionary business. With a more than 18 per cent market share, it is the second largest confectionary company in India. The company sells its world famous Kit Kat brand in India along with some other brands such as Nestle Munch (wafer chocolate), Nestle Milkibar, Polo (mint confectionary) etc. The Chocolates & Confectionary division contributes 14 per cent to the company's revenues.

Company's Revenues

14 % 600 Crores 23 % 990 Crores

46% 1900 Crores

17 % 730 Crores

Milk Products & Nutrition Beverages Prepared Dishes & Cooking Aids Chocolates & Confectionery

Product mix strategy Product mix...
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