Planning strategy of Nestle with special reference to present scenario

1. SUBMITTED TO- Dr. Richa N. Agarwal
SUBMITTED BY-
Tarun Aggarwal (BM-016260)
Ujjwal shakti verma (BM-016264)
Vishad Sharma (BM-016270)
Vivek Singh (BM-016281)
Vivek Tyagi (BM-016282)

2.  The purpose of this presentation is to
evaluate Nestle Company industry and how
the company plan their strategic intent for
their business organizations following the
analysis of external and internal business
environments. we will analyze the strategic
management process as firm used to
achieve strategic competitiveness and earn
above-average returns. We will discuss the
strategy formulation that includes
business-level strategy and corporate-level
strategy

3.  Nestlé is a Swiss transnational food and drink company
headquartered in Vevey, Vaud, Switzerland. It is the
largest food company in the world measured by revenues,
and ranked #72 on the Fortune Global 500 in 2014.
 Nestlé’s products include baby food, medical food, bottled
water, breakfast cereals, coffee and tea, confectionery,
dairy products, ice cream, frozen food, pet foods, and
snacks. Twenty-nine of Nestlé’s brands have annual sales
of over US$1.1 billion), including Nespresso, Nescafé, Kit
Kat, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi.
Nestlé has 447 factories, operates in 194 countries, and
employs around 339,000 people. It is one of the main
shareholders of L’Oreal, the world’s largest cosmetics
company.

4. Name Nestle
Industry Food Processing
Founded 1866
Founder Henri Nestle
Headquarters Vevey, vaud, Switzerland
Area served Worldwide
Products (total 17) Baby food, Dairy product, Coffee, Ice
cream, Pet foods, etc.
No. of Employees 3,35,000

6.  Planning (also called forethought) is the
process of thinking about an organizing the
activities required to achieve a desired
goal. It involves the creation and
maintenance of a plan, such as
psychological aspects that require
conceptual skills. There are even a couple
of tests to measure someone’s capability of
planning well. As such, planning is a
fundamental property of intelligent
behavior.

7.  (i) Setting goals: It involves the identification
of the aim for the fulfillment of which the plan
is being formulated. If a new plan is require or
the modification of an existing plan could help in
achieving these aims.
 (ii) Gathering Data: An effective plan needs
complete knowledge of the activities involved
and their effect on other external and internal
activities.
 (iii) Analysis Data: This information is then
analysed minutely and the information related
with similar subjects is classified so that
similar type of data can be kept together.

8.  (iv) Create plan: At this stage the plan which is
acceptable to the operating personnel is
proposed. The adaptability and the cost of the
plan are also taken into consideration.
 (vi) Implementation of Plans: The planning
should be put into action so that business
objectives may be achieved. The implementation
will require establishment of policies,
procedures, standards and budgets. These tools
will enable a better implementation of plans.
 (vi) Monitor plan: The provisions are made for
the follow up of the plan as the success of any
plan can be measured by the results only.

9. “Nestle stives to be the full line
provider of nutrition, health and
wellness to every country in the world to
assist consumers in their everyday life.
Our mission of “Good food, Good life” is
to meet the ever changing needs of
consumer and pets alike by continually
doing research and development.”

10. Enrich lives of customers
Excellence in operations
Financial gains
Motivation of growth
Expand Nestlé’s pet care market by 10%
by the end of 4 years.
Increase shareholders return by 25% in
the next 5 years.
Goals and Objectives:-

11.  NEW PRODUCTS LAUNCHES:- With the
company recovering from the ban of its instant
noodles product, Maggi, last year, Nestle India is
hoping to rejuvenate its existing brands as well as
launch new products to target several age groups
in the market. Speaking to PTI regarding the new
product launches, Suresh Narayanan, Director of
Nestle India, said,”There are about 20-25 product
launches, some of them have happened, some are
happening and some will happen in four to six
weeks time. This is probably the single largest
window of new product launches in a long time.”

12.  The new product launches from the company
include a new variant of Maggi called ‘Hot
Heads’ catering to the young adult population,
as well as ‘Grekyo’ a Greek yogurt brand and
‘Pro-Go’, a protein growth brand. There will also
be several new products among the chocolate
and confectionary and coffee and tea
categories in the company’s portfolio. The
product launches is specifically targeting an
increase in Nestle’s market share, which
currently is at 55 percent, compared to the 77
percent before the ban on Maggi Noodles last
year.

13.  The company is also facing fierce competition
from local brands like Patanjali and ITC.
Speaking specifically about Patanjali as a brand,
Narayanan said, “That is the kind of competition
we would positively call disruptive competition.
They come and redefine the rules of the game.
I have said that script for the future will be
written by redefining the rules of the past.”
The company is currently facing stringent
competition in its instant noodles category from
ITC’s Yippee, Chaudhary group’s Wai Wai and
Patanjali Noodles.

14.  Nestlé strategic leadership is to force the
business to become more efficient, to create a
regional manufacturing network, integrate the
company’s business on a global scale and to
reduce marketing expenditures by exploiting
the synergies between brands. Their strategy
to develop R&D network by improving existing
products and creating tomorrow’s nourihsments,
two third of company’s R&D activities are
dedicated to renovating existing products, the
remaining third is reserved for radical product
innovations, improve on operational level and a
number of organisational changes.

15.  Nestlé’s objectives are to be recognized as the world
leader in Nutrition, Health and Wellness, trusted by
all its stakeholders, and to be the reference for
financial performance in its industry. The Nestlé
Roadmap is intended to create alignment for their
people behind a cohesive set of strategic priorities
that will accelerate the achievement of their
objectives. These objectives demand from their
people a blend of long-term inspiration needed to build
for the future and short-term entrepreneurial
actions, delivering the necessary level of performance.
They are seeking to achieve leadership and earn that
trust by satisfying the expectations of consumers,
whose daily choices drive their performances, of
shareholders, of the communities in which they
operate and of society as a whole.

16.  Nestlé Company is an international company which
came to the stage it is today by gaining superior
competitive advantage over its rivals. The focus
product differentiation strategy has been very
successful although it may not work for other
firms. The company is able to create and deliver
value not only by offering distinguished products
but also gaining effectiveness and efficiency by
reengineering its business processes. By doing all
recommendations and follow all these steps of
strategic management processes, WE are sure
that Nestlé Company will do better in the future
than their competitors and might be the new
trendsetter in some criteria and also gain its
above-average returns to their company.