Nestle India Case Study

This systemic approach will engage the whole organization in efforts to avert the elongation of this crisis and at its best make sure to implement proactive and reactive management for the short-run and long-run. Since the company wasn’t properly prepared in advance of this crisis, different

They should use more methods such as advertising on the internet by using different kinds of websites which allows them to reach a bigger number of audience with better qualifications .

Think about noodles and the first name comes to the mind is: Maggi. At one point of time, it had a market share of 90%. But, in June 2015, it was reported that tests found high amounts of lead and MSG in Maggi noodles, the Food Safety and Standards Authority of India ordered country-wide withdraw and recall for all the variants of Maggi Instant Noodles and Oats Masala Noodles. What will Nestlé do to bring Maggi back and gain the trust of the consumers in Maggi, once again?

To: C. Tangeman, Vice President, PersonnelFrom: D. Gates, Media DivisionDate: October 25, 2017Subject: New Podcast for Rebel FMIntroduction and RecommendationDuring the October brainstorming session held last week, it was brought to the staff’s attentionthat we need a new platform to net viewership for the station. After two weeks of deliberation wefelt that we should maintain a platform like that of our existing radio station. The biggest hurdlewas deciding what would be both cost-effective and refreshing to newcomers and our currentaudience. The second concern was how to effectively fill the new space in the Houston studio,which is almost finished with the mandatory Harvey renovations. We thought it would be a gooduse of resources to solve both issues and create a

-Advertising. Getting our message out to the community will generate exposure and also interest in what we are doing.

Basic advertising: Frequently do some advertising/updates on products/services through social network websites/apps. This is to get in peoples’ mind and telling them what the company is doing. People will definitely think of them when they need those kinds of services/products.

Nestlé is a large international (191 countries worldwide) food and beverage company that is dedicated to shaping future generations into healthier people and improving the world as a whole. The company now known as Nestlé was founded in Switzerland as a result of the Anglo-Swiss Condensed Milk Company, founded in 1866, merging with Henri Nestlé’s company based on the infant food that he had developed, in 1905, after the two companies were rivals in the baby formula and condensed milk industry. After the merger in 1905 Nestlé was able to expand globally, with sales in Africa, Asia, Latin America, and Australia. Decreased availability of resources and goods in Europe during the outbreak of the First World War lead to Nestlé acquiring factories in the United States and Australia, furthering the company’s international development. In addition, the war was beneficial for Nestlé as condensed milk is non-perishable and therefore convenient to supply emergency rations; this caused a strong demand for the product during wartime. Nestlé, like many other companies, was impacted greatly by the depression era, but used this time as an opportunity to organize company operations and invent new products such as Nescafé. The outbreak of the Second World War brought fear of Nazi invasion in Switzerland and inspired Nestlé to open a second headquarters in the United States. Post-war prosperity was beneficial for the company, as it made it easier for many of their newer products such as Nestea

Kanpur Confectionaries Pvt. Lt. (KCPL) sale are declining with increasing competition. KCPL has to reduce the cost of production and increase its productivity to emerge as a market leader.

Instances of a product recall damaging brand equity. In 2013, Nestlé recalled KIT KAT as seven different people found plastic inside the chocolate. Maggi was recalled in India after high content of MSG and lead was found

The biggest problem facing Nestlé is declining growth due to increasing competition in the food and beverage markets it serves. Competition from new, healthier food options, increasing pressure from generics, and smaller food companies have pressured margins and top line growth. Many of Nestlé’s brands are centered around processed food products which have been falling out of favor with consumers seeking healthier choices. Coffee, a business where Nestlé is a clear global leader, is experiencing tremendous competitive pressure, especially in the United States. These challenges have initiated growing pressure from investors for Nestlé to find ways to increase margins and growth. The below chart demonstrates the stagnant sales volume for Nestlé since 2010.

NIL is Indian subsidiary of global FMCG major, Netle SA. Nil introduced Maggi brand to Indian consumers with the launch of Maggi 2 minutes noodle, an instant food product, in 1982. With launch of Maggi noodles, NIL created an entirely new food category- instant food- in Indian packaged food market. Nestle which world knows as a cautious and conservatory company is a swiss originated 140 years old Multinational company started by Carlo Donati. Nestle India’s business objective and that of its management and employees is to manufacture and market the company’s products in such a way as to create value that can be sustained over the long term for consumers, shareholders, employees, business partners. Product mix of NIL consists of milk products and baby products, beverages, processed foods, chocolates and confectionary. Nestle India is one of the leading companies in FMCG space in India and it is acknowledged among India’s most respected companies.

Managerial decision-making is very important for a company. The project is divided in these types

I will be focusing on the transnational food company ‘Nestle’ for my project in International Marketing MN313. Nestle is a Swiss food and drinks company that operates in over 195 countries supplying food, drinks and more products every single day. Nestle operates from a central headquarters based in Vevey, Switzerland where it was founded in 1905. I find it remarkable that they still operate and run their business from the same location it was founded over 100 years ago. Most business grow too large and need to move out of the area they were founded in as it can no longer offer them the required sustainability they need to expand and enter into new markets and become bigger players

Exporting will help keep sales healthy. But, hearing what has happened in India, people in other countries might prefer buying some other brand’s products. In the long run, Nestle can also come up with an alternative instant noodles with near about the same taste but with permissible amount of MSG and lead. The sales could be near about the same but due to the impression created by the ban on Maggi, people might not consider buying something from a defamed company.

In 1972, during Industrial Revolution in Switzerland, factory jobs were created for women. Thus, they had less time to prepare meals, and this became a wise spread problem. Julius Maggi (born on October 9, 1846; in Switzerland) took charge of his father’s mill, made a difference by creating packed food hat was quick and easy to prepare, and soon he became pioneer in industrial food production.