Introduction

Nestlé is the world's leading nutrition, health and Wellness Company. Their mission of "Good

Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide

range of food and beverage categories and eating occasions, from morning to night. It is founded

1867. Its founder Henri Nestlé. Its headquarters Vevey, Switzerland. Its product area is

worldwide. Its revenue of 2012 is CHF 92.18 billion, Operating income CHF 14.44 billion, Total

profit CHF 10.61 billion, Total assets CHF 126.22 billion, Total equity CHF 62.60 billion and

Employees 339000. Nestlé Bangladesh Limited started its first commercial production in

Bangladesh in 1994. Our factory is situated at Sripur, 55 km north of Dhaka,

Nestlé's largest international competitors are Kraft Foods, Unilever and Mars Incorporated. It

also faces competition in local markets or specific product ranges from numerous companies,

including Sara Lee and DANONE.

Good Food,

Good Life

...is the promise they commit to everyday, everywhere – to enhance lives, throughout life, with

good food and beverages.

Brands portfolio

Their portfolio covers almost every food and beverage category – giving consumers tastier and

healthier products.

Their company is about long-term thinking. For over 140 years Nestlé has been dedicated to

providing nutrition for its consumers.

Business Principles

The foundation of their Corporate Business Principles reflects the ideas of fairness, honesty and

a concern for individuals and society.

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Products

Nestlé has some 8,000 brands, with a wide range of products across a number of markets,

including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant foods,

performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated

foods, and pet food.

Case of

Nestlé Expands Internationally

The Switzerland-based Nestle Corporation, once a Swiss chocolate maker, now is the world's

largest food company and the largest producer of coffee, powdered milk, and frozen dinners. The

company also became number one in candy after passing Mars. Nestle achieved its success

through intensive global expansion.

One of the first multinational corporations, Nestle has production facilities in more than 60

countries. Its products can be found almost everywhere around the globe. In Europe, where

Nestle has experienced the greatest success, sales of instant coffee, mineral water, yogurt, frozen

foods, cold cuts, candy, and cereal bars are roughly $10.2 billion. The company's sales in North

America are approximately $6.7 billion, for products such as Nescafe instant coffee, Carnation

Coffee-mate nondairy creamer, Friskies pet food, Nestle Crunch chocolates, and Stouffer frozen

foods. Other big markets for Nestle have been Asia, $3.1 billion; Latin America, $2.4 billion;

and Oceania (Australia, New Zealand, and other islands of the Pacific Ocean), $.6 billion.

One secret to Nestlé’s success is that many of its products, especially instant coffee, chocolates,

and frozen foods, appeal to consumers all over the world. For example, coffee is closing in on tea

as the favorite drink in Japan. Frozen dinners, long a hit in the United States, are catching on in

Europe. And of course, chocolate tastes the same in any language. Although these products have

to be adapted slightly to local tastes, they generally can be sold worldwide. Because of high

research and development costs, Nestle benefit*s greatly by offering products with global appeal.

After making large investments in its products, the company has been able to move brands from

one country to another with relative ease.

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Nestlé’s Lean Cuisine dinners illustrate well how the company expands internationally. Lean

Cuisine was introduced in the United States in 1981 and became a huge success. In 1985 Nestle

chief executive Helmut Maucher endorsed a plan to sell Lean Cuisine in Britain. In the

beginning, before the company's British frozen-food plant reached full production, products were

imported from a plant in Canada. The cost of shipping frozen dinners in refrigerated ships, in

addition to paying customs taxes, was extremely high. But Maucher was patient, and the venture

has paid off. In 1989, sales of frozen dinners in Britain reached $100 million, and Nestle has a 33

percent share of the market. Lean Cuisine has also been successfully introduced in France.

Now Nestle is looking to what Maucher thinks is the market of the future, the Third World.

Currently, 20 percent of the world's population consumes 80 percent of Nestlé’s products.

Maucher thinks his company's products will soon be seen in more parts of the world. The

company also will look to what Maucher considers the food of the, future—pasta. As he puts it,

"We can't feed the world on beefsteak. So noodles will conquer the world."

Most industry experts agree that Nestles is in the best position of any food company to expand

internationally. Most of its competitors, which have been concentrating on their domestic

markets, are scrambling to become involved in the profitable international trade.

Questions for Discussion

1. Would you classify Nestlé as a multinational corporation? Why or why not?

2. Does Nestle have to adapt its products for foreign markets?

3. Why is it so expensive for Nestle to sell a product like Lean Cuisine in other countries?

4. Will competitors be able to follow Nestle into foreign markets with the same degree of

success?

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Solution

Q. (1) would you classify nestle as a multinational corporation?

Ans. Yes, Nestle is one of the first multinational corporations. Because, nestle has production

facilities in more than 60 countries. Once nestle was a Swiss chocolate maker, now is the world’s

largest food company and the largest producer of coffee, powered milk, and frozen dinners. The

company also number one in candy after passing mars. Nestle achieved its success through

intensive global expansion.

Nestlé’s products can be found almost everywhere around the globe. In Europe, where nestle has

experienced the greatest success, sales of instant coffee, mineral water, yogurt, frozen foods, cold

cuts, candy, and cereal bars are roughly $10.2 billion. The company’s sales in North America are

approximately $6.7 billion, for products such as Nescafe instant coffee, carnation coffee-mate

nondairy creamer, Friskies pet food, nestle crunch chocolates, and Stouffer frozen foods. Other

big markets of nestle have been Asia, $3.1 billion; Latin America, $2.4 billion; and Oceania

(Australia, New Zealand, and other islands of the Pacific Ocean), $.6 billion.

One secret to Nestlé’s success is that many of its products, especially instant coffee, chocolates,

and frozen foods, appeal to consumer all of the world. For example, coffee is closing in on tea as

the favorite drink in Japan. Frozen dinners, long a hit in the united state are catching on in

Europe.

Q. (2) does nestle have to adapt its products for foreign markets?

Ans: yes, although these products have to be adapted slightly too local tastes, they can be sold

world-wide. Because of high research and development costs, nestle benefits greatly by offering

products with global appeal. After making large investments in its products, the company has

been able to move brands from one country to another with relative ease.

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Q. (3) why is it so expensive for nestle to sell a product like lean cuisine in other countries?

Ans: The products of lean cuisine were imported from a plant in Canada. That’s why to sell a

product like lean cuisine in other countries is son expensive.

Nestlé’s lean cuisine dinners illustrate well how the company expands internationally. Lean

cuisine was introduced in the United States in 1981 and became a huge success. In 1985 nestle

chief executive Helmut maucher endorsed a plan to sell lean in Britain. In the beginning, before

the company’s British frozen food plant reached full production, products were imported a plant

in Canada. The cost of shipping frozen dinners in refrigerated ships, in addition to paying

customs taxes, was extremely high.

But maucher was patient, and the venture has paid off. In 1989, sales of frozen dinners in Britain

reached $100 million, and nestle has a 33 percent share of the market. Lean cuisine has also been

successfully introduced in France.

Now nestle is looking to what maucher thinks is the market of the future, the third world.

Currently, 20 percent of the world’s population consumers 80 percent of Nestlé’s products.

Q. (4) will competitors be able to follow nestle into foreign markets with the same degree of

success?

Ans: competitors may be able to success. If they follow Nestlé’s food quality and other

techniques of nestle corporation. Most industry experts agree that nestle is in the best position of

any food company to expand internationally. Who are the competitors they must have work

ability, financial ability, and other ability same to nestle. Most of its competitors, which have

been concentrating on their domestic markets, are scrambling to become involved in the

profitable international trade.

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