Assignment On

“Marketing Plan of Nestle”

Assigned By:
Dr. Meher Niger
Associate Professor
Department of Marketing
Comilla University

Prepared by:
Susmita Saha
ID: 11507048
Session: 2018-2019
Registration No: 11507048
Department of Marketing
Masters of Business Administration (MBA)
Comilla University

Submitted on: 2nd November, 2020

Page | 1
 TABLE OF CONTENTS

EXECUTIVE SUMMARY: ………………………..…………………………….………… 3

MISSION & VISION………………………………………………………………………4-5

SWOT ANALYSIS……………………………………………….…………………………6-9

INTERNAL & EXTERNAL ENVIRONMENT OF NESTLE……………………………10

PORTFOLIO ANALYSIS…………………….……………….….…………………….11-13

FEEDBACK & CONTROL…………………………………………………………….14-18

Page | 2
 Executive Summary

Nestle - Company Overview: “Good Food, Good Life” – Nestlé is today world’s leading health,
nutrition and wellness company (Nestle, 2012). Nestlé’s mission is to provide the best tasting and
nutritious choices in extensive range of beverages and food categories to its consumers all over
the world. Today Nestle has 67 brands of bottled water, produced in 36 countries and its
distribution is made in 130 countries worldwide (Nestlé Waters, 2011).

Nestle traces its origin back in 1866 when Anglo-Swiss Condensed Milk Company opened the
first European condensed milk factory in Cham, Switzerland. One year later, a trained pharmacist,
Henri Nestle, introduced world’s first prepared cereals for infants in ‘Farine lactee’ in Switzerland.
Both of these companies merged in 1905 to be a company known as Nestle with headquarters
based in Swiss town of Vevey – where it started in the beginning. (Nestle, 2012). Nestlé’s first
customer was a premature infant who was unable to tolerate his mother’s milk as well as any other
conventional substitutes. Henri’s effort was to develop an alternative source of infant nutrition for
mothers who were unable to breast feed. Thus, the cereal was prepared with his experiments on
various combinations of cow’s milk, wheat flour and sugar (Nestle, 2012).

Today Nestle employs around 328,000 people and are managing different factories and/or
operations in almost every country of the World. Nestle sales for the year 2011 came to be almost
CHF 83.7 billion (Nestle, 2012). Nestle SA is a publicly owned company with subsidiaries across
the globe. Nestle UK and Ireland, is a subsidiary of Nestle SA (Nestle UK and Ireland, 2012).

Nestle has built its competitive advantage on the basis of its unmatched geographic presence
worldwide. Sprung from the Swiss cultures, the company grew and managed to establish a
presence in almost every country in the world today. Nestle has developed strong relationships
with farmers and other suppliers with the development of local management teams, R & D and
manufacturing (Nestlé, 2012).

Page | 3
 Mission & Vision

Nestle aim is to become global leader in Food and Nutrition Company in the world and sustain
that position. This objective of the company signifies that they need to work hard to stay ahead of
Cadbury which is recently being acquired by Kraft food. Kraft is world leader in today’s chocolate
business and food and nutrition business.

According to company perspective “Quality is the essential ingredient in all brands and the reason
why millions of people choose Nestlé products every day.” Nestles’ consumers have come to trust
in Nestlé’s commitment to excellence and turn to Nestlé brands to maintain nutritional balance in
a fast-paced world.

In today’s very competitive marketplace a strategy that ensures a consistent approach plays an
important role. It offers products and services to be competitive. However, marketing strategy must
have a well-defined methodology for the day to day process of implementing it. It is of little value
to have a strategy if there is lack either in resources or the expertise to implement it. Marketing
strategy must address some unique considerations. However, many are common to all marketing
strategies.

Nestle’s Marketing Plan start with the following framework:

• Purpose and Mission: Nestlé is the world's leading nutrition, health and wellness
company. Nestle’s 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. The main purpose of this marketing plan is to
analyze various aspects of product-line extension by Nestle.
• Vision: To be a leading, competitive, Nutrition, Health and Wellness Company delivering
improved shareholder value by being a preferred corporate citizen, preferred employer,
preferred supplier selling preferred products. “Nestlé Norden’s aim is to meet the various
needs of the consumer every day by marketing and selling food of a consistently high
quality.” To achieve this vision Nestle has two steps to follow, first is High quality and
collaboration, which is integral part of any food business to flourish and second is Focus
on e-business and websites. Nestle has started investing heavy in development of e business
and its promotion so as to capture clients in e business sphere also.

Page | 4
 • Situational Analysis: To bring new product, Nestle has applied a lot of innovation in their
existing production pattern keeping in view the tastes and preferences of target group
mainly kids and moms. Kids mainly prefer tasty food and moms want their kid to be
healthy. So, Nestle is a mix of both taste and health. Thus, Nestle’s product is creating
value to its target group.
• Marketing Strategy and Objectives: International Strategies adopted by Nestle. Nestlé’s
strategy has been to acquire local companies in order to form a group of autonomous
regional managers who know more about the culture of the local markets than Americans
or Europeans. Nestlé has employed a wide-area strategy for Asia that involves producing
different products in each country to supply the region with a given product from one
country. For example, Nestlé produces soy milk in Indonesia, coffee creamers in Thailand,
soybean flour in Singapore, candy in Malaysia, and cereal in the Philippines, all for
regional distribution.
Another strategy that has been successful for Nestlé involves striking strategic partnerships
with other large companies. In the early 1990s, Nestlé entered into an alliance with Coca
Cola in ready-to-drink teas and coffees in order to benefit from Coca Cola’s worldwide
bottling system and expertise in prepared beverages.
Nestle employ local staff. Local employees better know and understand the local culture
and business procedures. This can result in a more efficient way to respond adequately to
local demand conditions, therefore increasing the company’s market share and
profitability.

This marketing plan is aimed at highlighting one of the product line extensions of Nestles’. It
mainly focuses on the internal and external environment of Nestle. Apart from that, this plan
includes the marketing strategies, brand promotion strategies, marketing mix involved and
competitive strategies adopted by Nestle.

Page | 5
 SWOT Analysis

SWOT analysis helps in finding out the strengths and weaknesses of the organization. Apart from
that it helps the organization to have a deep knowledge about the opportunities and threats which
the organization is likely to face.

Strengths

• Nestle is a global food producer with presence in almost all countries. Nestle has been
consistently one of the world's largest food producers with sales of almost CHF 83.7 billion
in year 2011. Such a strong company’s brand image has positive influence and impact for
Nestle Pure Life (Nestle, 2012).
• Global food producer, located in over 100 countries. Consistently one of the world’s largest
producers of food products, with sales in the USA in 2008 of $10 billion; sales and earnings
in 2008 were better than expected, even in a downturned economy.
• Repeatedly ranked as the world’s largest bottled water company and have set up facilities
to operate water resources in a responsible manner.
• Nestlé was named one of “America’s Most Admired Food Companies” in Fortune
magazine for the twelfth consecutive year.
• Nestlé provides quality brands and products and line extensions that are well-known, top-
selling brands including:
➢ Lean Cuisine, Yoplait, Maggi, Dryer’s/Edy’s, Haagen-Dazs, Stouffer’s, Boost,
Dibs, Hot Pockets.
➢ Chocolate and Candy: Kit Kat, Toll House, Butterfinger, Baby Ruth, Crunch Bar,
the Willy Wonka Candy line.
➢ Pet Products: Purina, Alpo, Cat Chow, Fancy Feast, Friskies, Tidy Cat.
➢ Drinks: Carnation, Perrier, Nesquik, S. Pellegrino, Nescafe, CoffeeMate, Taster’s
Choice, Juicy Juice.
➢ General Mills: subsidiary which makes Betty Crocker, Bisquick, Hamburger
Helper, Pillsbury, Old El Paso, cereals, fruit snacks, frozen pizza, canned soups,
frozen vegetables, ready-made frozen meals.
➢ Gerber: baby formula, prepared baby foods, baby cereals, water, juice, yogurt,
foods for infants, toddlers and preschoolers.

Page | 6
 • Professional brands sold to restaurants, colleges, hotels, and food professionals including
Jenny Craig meals, Impact liquid meals for trauma patients, liquid meals for diabetics, and
Opti-Fast weight loss products.
• Successful due in part to their unquestionable ability to keep major brands consistently in
the forefront of consumer’s minds (and in their shopping carts) by renovating existing
product lines, keeping major brands from slipping into saturation/decline and having
superior access to distribution channels.

These brands become a source for the brand recognition of “Nestle Pure Life” and hence the brand
is known and associated along with its other well-known brands for different segments of the
markets.

Weaknesses

• Their LC-1 division was not as successful as they thought it would be in France. In the late
1980s, Dannon entered the market with a health-based yogurt, and become the top selling
brand of yogurt; Nestlé’s 1994 launch was behind the product life cycle curve in an already
mature market and could not compete against a strong, established brand.
• Growth in their organic food sales division was flat in 2008, even though the industry grew
8.9%.
• Since 2004 the breakfast cereal industry has been under fire from the FDA and the
American Medical Association, both of which say that false claims of “heart healthy” and
“lower cholesterol” need to be removed from packaging and advertising. They have also
been forced to reduce the amount of sugar in their products, as parent’s advocates groups
claimed they were contributing to the diabetes epidemic among American children.
• General Mills is an experienced, established brand and are the market leader in the USA,
however, they have been lacking in innovation, have not cashed in on the booming health
food craze and have been behind in creating new, niche products, especially in their yogurt
division, where Yoplait is the only brand making a profit.
• In 2008, although their products did not carry the recalled pistachios, several of their ice
cream brands, Dryer’s, Edy’s and Haagen-Dazs, were still plagued with bad PR and loss
of sales.

Page | 7
 • There is lack of awareness about using bottled water in the developing countries. Water is
thought to be basic need of human life readily available anywhere. Hence, bottled water is
not seen as a commercial product in the developing countries.
• In the developed countries, the branding and promotion of Pure Life Mineral water is not
extensive, therefore competitors get chance to penetrate in the market by fetching
substantial share of the market.

Opportunities

• In today’s health conscious societies, they can introduce more health-based products, and
because they are a market leader, they would likely be more successful.
• Provide allergen free food items, such as gluten free and peanut free.
• They launched a new premium line of higher cacao content chocolates dubbed Nestlé
Treasures Gold, in order to cash in on the “recession economy” in which consumers cut
back on luxury goods, but regularly indulge in candy and chocolate. Americans want
luxury chocolates, and high-end chocolate is immune to the recession (so far), because it
is an inexpensive indulgence.
• Opened Nestlé Café’s in major cities to feature Nestlé products.

Threats

• Any contamination of the food supply, especially e-coli. Their Toll House brand cookie
dough was recalled in March of 2009 because of e-coli. Outbreaks were linked to 28 states
and the product had to be recalled globally. Nestlé has yet to find out how this happened,
and is still investigating.
• They were affected by the pet food recall in 2007, in which 95 different brands of dog and
cat food was recalled due to contamination with rat poison. Also, in 2007, FDA learned
that certain pet foods were sickening and killing cats and dogs. FDA found contaminants
in vegetable proteins imported into the United States from China and used as ingredients
in pet food.
• Raw chocolate ingredient prices are soaring; dairy costs alone rose 50% in 2008, this cuts
heavily into their profit margins and often gets passed on to consumers, by shrinking the

Page | 8
 packaging in a way that is almost unnoticeable-therefore the consumer is paying the same
prices for less product.
• They have major competitors, like Hershey’s, Cadbury-Schweppes (owned by Pepsi),
Lindt and Ghirardelli, Kellogg’s, Post, Starbucks, Beech-Nut, Quaker, Kraft Foods,
Dannon, Del-Monte, Iams, Earth’s Best, Heinz, Frito-Lay (owned by Pepsi).

Figure 1: Nestle SWOT Analysis

Page | 9
 Internal & External Environment of Nestle

Nestle environment is very complex as the organization operates globally. The possible strengths
include strong brands, corporate brand, its structure, and cost advantage. While weaknesses
include barriers to entry, competition, complex structure, and minimal rewards. It has an
opportunity to venture into new markets due to its reputation and can also engage in a joint venture
to diversify its products. The company is also affected by changing consumer demands hence
buyer power. The major challenge that may impact on the effectiveness of the organization is to
retain workers in a globally competitive environment using its cost-cutting strategies and still add
value for shareholders. The threat of worker turnover due to poor performance management is
crucial and should be addressed.

Internal environment of Nestle

Nestle has well satisfied employees, who strives to attain the goals of the organization with
enthusiasm and hard work. They constitute a major part of internal environment of an organization.

Resources of Nestle have been efficiently employed to the maximum extent.

Nestle has created satisfaction among customer. Thus, it has a good reputation among customers.

Nestle has good expertise who are capable of delivering their ideas which can achieves the
organizations goals and objectives.

External environment of Nestle

Competition: Nestle is facing competition largely. Nestle has played a good role in facing the
competition.

Market: Nestle has very efficiently managed the market demand by proper market research.

Technology: Nestle has adopted the best technology to produce its products.

Thus, all these above-mentioned aspects clearly indicate the internal and external environment in
which Nestle has been situated. While launching a new product Nestle has to keep in mind all
these environments. Nestle has to fore see the environment by adopting the opportunities which is
prevailing in the environment. Nestle has to put effort in converting its weaknesses into
opportunities and using strength to face the threats present in the environment.

Page | 10
 Portfolio Analysis

Boston Consulting Group Matrix (BCG Matrix) is a useful tool to understand the potential of
different business units being managed by an organization. The following section presents the
Product & Financial Portfolio analysis BCG Matrix of Nestle:

Cash Cows

The cash cow is denoted by a high market share; however, the growth rate of the industry is slow
as the market has grown to the point of maturity. As a result, the pace of growth has declined.
Despite the slowdown of market growth, the business units identified as cash cows continue to be
lucrative for the organization due to the large market share. The brand Nesquik can be regarded as
a cash cow as it is one of the leading milks flavor powder brands on a global scale. In 2014, the
brand was able to generate a sale of US$850 million, which indicates the market share captured
by this business unit (Lee, 2015). Along with the chocolate powder, the brand also offers other
flavors for consumers. Moreover, the brand has established a prominent position in the flavored
milk category as well. Even though the industry has grown over the years, reaching a point of
maturity, Nesquik continues to be a source of revenue for Nestle. Another product that can be
identified as a cash cow is the coffee brand, Nescafe which is being sold in a mature industry.
According to Gertler (2016), the coffee brand has illustrated a strong performance over the years,
with an increase in the sales in 2015.

Stars

The business units that are deemed as stars hold a large market share as well. However, the point
of difference between cash cow and star is that the industry has a faster growth rate and is still in
the phase of development. The mineral water packaged by Nestle is the business unit which is
operating in an industry that has the potential to grow further. Even though new mineral water
brands have been introduced by other companies, the mineral water produced by Nestle has
maintained a significant position. The brand Nestle pure life is currently being supplied to 40
regions across the globe (Nestle, 2015). It has been further mentioned that the bottled water is
likely to gain an increased market share in the coming years due to the rising number of consumers
purchasing mineral water. Therefore, it can be seen that the mineral water brand has to potential
to become a cash cow in the next 10 years. Since the rise in population and increased urbanization

Page | 11
leads to increased consumption, nestle water is expected to become a sustainable source of
earnings for the company. Another factor that has contributed in making it a star is the potential
for growth in the emerging markets, which offer significant growth opportunities to the business
on a global scale.

Question Marks

The business units that are identified as question mark are those who do not have a large market
share, despite the industry holding growth opportunities for the specific business segment. They
are not able to deliver the results that are expected in the high potential offered by the industry.
There is a great deal of uncertainty attached with these business segments as they can become stars
and cash cows if progress is made. On the other hand, they can decline and become a source of
liability for the company. Maggi noodles has become a question mark for Nestle as the negative
information pertaining to the brand has resulted in a decline in its sales. In 2015, the brand has
gained negative reputation due to the violation of food safety law, as the products was assumed to
contain significant amount of lead traces. The negative impact of this information had on the
company sales, as shown by the decrease of $302 million in the revenue. As a result of this news,
the company had to sustain significant losses due to recall of the Maggi noodles product from the
market. Moreover, the sales in the region have dropped up to 20% following the scandal about the
noodles. Based on this background, it can be stated that the Maggi noodles brand is operating as a
question mark. Nestle will have to work towards improving the brand reputation and restore the
consumer trust to regain its sales in this domain. Inability to handle the challenge in an effective
manner can lead to the noodles becoming a dog. Other brands can take benefit from this situation
and strive to gain a larger market share and highlight the food safety of their own products.

Dogs

The business units that are seen as Dogs are operating in an industry that has reached the stage of
maturity. These business units tend to hold a small market share in the industry and with the low
potential of growing into high market share businesses, an organization may decide to withhold
future investment in them. The last component in the BCG matrix of Nestle is brands that can be
identified as dogs. Nestle had launched a brand for people who were living an active life style and
engaged in sports. The brand-named Power-bar aimed to target this market and generate sales by
selling the products that were packed with the nutrition needed for such an active lifestyle

Page | 12
involving intense physical activity. The main product that was developed under the brand name
was an energy bar. The management expected the brand to gain market share with the passage of
time, however, the business unit was unable to deliver the expected level of performance. The
brand was not able to hold a significant amount of market share despite the marketing initiatives
taken on by the company. A viable course of action for brands that are under performing and show
no significant growth chances in the future is to liquidate them. Nestle has taken the decision to
sale the Power-bar business to Post Holdings in order to retreat from further investment in a
business unit that offered no significant growth.

Based on recent news sources and Nestle’s 2012 Annual Report, here is Nestle’s current BCG
Matrix for a selection of their brands:

Figure 2: BCG Matrix of Nestle.

Page | 13
 Feedback & Control

Nestlé S.A. is the largest nutrition and foods company in the world, founded and headquartered in
Vevey, Switzerland. Nestlé originated in a 1905 merger of the Anglo-Swiss Milk Company, which
was established in 1866 by brothers George Page and Charles Page, and the Farine Lactée Henri
Nestlé Company, which was founded in 1866 by Henri Nestlé. The company grew significantly
during the First World War and following the Second World War, eventually expanding its
offerings beyond its early condensed milk and infant formula products. Today, the company
operates in 86 countries around the world and employs nearly 283,000 individuals. Nestlé S.A. is
the largest food and beverage company in the world. With a manufacturing facility or office in
nearly every country of the world, Nestlé often is referred to as “the most multinational of the
multinationals.” Nestlé markets approximately 7,500 brands organized into the following
categories: baby foods, breakfast cereals, chocolate and confectionery, beverages, bottled water,
dairy products, ice cream, prepared foods, foodservice, and pet care.

Nestlé is often referred to as “the most multinational of the multinationals with a manufacturing
facility or office in nearly every country of the world. Nestlé markets approximately 7,500 brands
organized into the following categories: baby foods, breakfast cereals, chocolate and
confectionery, beverages, bottled water, dairy products, ice cream, prepared foods, foodservice,
and pet care. Nestle is a decentralized organization where responsibility for operating decisions is
delegated to local units, which have a high degree of autonomy concerning pricing, distribution,
marketing, etc. Nestle is organized into seven different worldwide strategic business units (SBU’s).
These have responsibility for high-level strategic decisions and engage in overall strategic business
development, including acquisitions and market entry strategy. There is a regional organization
that divides the world into five major geographical zones, such as Europe, North America, etc. The
regional organizations are responsible for developing regional strategies and assist in the overall
strategy development process. However, neither SBU nor regional manager gets involved in local
operating decisions. Research and Development department is rather important for the company.
Nestle spends around 1 percent of its annual sales revenue on R&D and has 3,100 employees
dedicated to this function. The R&D function comprises eighteen different groups, which operate
in eleven countries all over the world.

Page | 14
Nestlé’s strategy for business development

Nestle enters in an early stage the emerging markets, in order to establish a network, there before
competitors. Nestle simply purchases local brand names which the consumer is accustomed to.
This helps the company to overcome cultural barriers and customer resentments to foreign brands.
Nestles’ strategy is to establish a basis and then expand into more niches as demand rises.

Other strategies adopted by Nestle:

Nestlé established its “expatriate army” which is a group of about 700 managers who have a lot of
experience in doing management activities in foreign countries. These managers are highly
educated and trained in order to enable them a worldwide field of operations.

Another approach is to form SBU’s. These units formulate the high-level strategic decisions on a
worldwide basis, while each of these SBU’s focuses on a specific segment: chocolate, infant food,
cereals, coffee etc.

Overall strategy development such as acquisition and market entry strategy these SBU’s form an
important part of the company’s decision making and operating process.

Nestlé’s marketing mix includes the following:

• Product
• Price
• Promotion
• Place

Product

There are 4 different strategic business units within Nestle which are used to manage various food
products.

1. Beverages – One of the most known coffee brands Nescafe, belongs to the house of Nestle
and is one of the cash cows for Nestle. However, it is not the biggest cash cow. Nestle has
a worldwide distribution and has many different variants. Looking at India, Nestle has also
launched Nestea.

Page | 15
 2. Milk and Milk products – Nestle everyday, Nestle slim and Nestle Milk maid are some of
the milk and milk based products from the house of Nestle.
3. Prepared dishes and cooking aides – Nestle has a third category of products which comes
into prepared dishes and cooking aides. The major cash cow of Nestle lies in this segment,
which is Maggi Noodles. Probably one of the most widely sold ready to cook noodle brands
is Maggi. Maggi has a fantastic taste and quality. Thus, it was not a surprise, that Nestle
expanded the Maggi brand to create an umbrella of different products like Maggi pasta,
Maggi sauce, Maggi cubes etc. The Maggi range contributes vastly to the bottom line of
Nestle.
4. Chocolates – Nestle has some popular chocolate products, most popular being Nestle
KitKat, Munch, Milky bar, Eclairs and Polo. The newly introduced Alpino is targeting the
gifting segment in response to various chocolates like Dairy milk and Bourneville by
Cadbury. The chocolates segment of Nestle is a star, where the competition is high and the
expense is high but at the same time the market size is huge as well.

Price

The price is dependent on the market of each individual products. For example, Nescafe and Maggi
being the clear leaders are priced with higher margins for the company as compared to competition.
This is because the product quality is good enough and a bit of skimming price will not cause the
customer to switch brands.

The strength of pricing for Nestle comes from its packaging or consumption-based pricing. For
Nescafe as well as Maggi, Nestle offers a lot of sizes and package options. In supermarkets, you
can even find a 16 packet Maggi whereas in small retail shops, you can find 5 Rs Maggi.

Thus, with the variety available, customer can make his own choice based on his consumption. In
other products like KitKat and Munch, due to tough competition from other companies, Nestle
offers competitive pricing. You will find that nestle will be similar priced to many of Cadbury’s
Products in the chocolate segment.

Page | 16
Promotion

One of the most widely known tunes is the Nescafe tune. It was one of the best advertising
campaigns and was launched at least 2 decades back. However, that campaign brought Nescafe
strongly in the market.

On the other hand, Nestle’s brand was pushed by the excellent product quality of Maggi and the
witty and innovative campaigns of Maggi. Where Nescafe focuses on value and the good things
in life, Maggi focuses on moments you had with your Maggi. The recent campaign was completely
focused on your Maggi story, where people had to come out with various innovative ways that
they had their Maggi.

Promotions for other products too is done smartly. KitKat focuses on “Take a break” and has done
some good marketing for the same. KitKat website too is very innovative and shows nothing but
asks the visitor to take a break and have a KitKat. The major push expected of a FMCG company
is in sales promotions at the ground level. This is where Nestle really rocks. Nestle focuses on its
strength which is Maggi, Nescafe and KitKat which are the most promoted brands in the market
on ground level.

Place

Nestle follows the FMCG strategy of distribution which involves breaking the bulk. The typical
distribution strategy of Nestle is as follows.

Manufacturing >> C & F agent >> Distributors >> Retailers >> Consumer

Manufacturing >> Bulk buyers >> Consumer

These are the two different forms of distribution which Nestle has. It is typical of any FMCG
company. However, the Nestle channel is known to be strong with a good marketing and sales
network for channel distribution.

On top of it, Nestle regularly introduces trade discounts and various tactics to keep the channel
motivated. The major challenge is in the distribution of Maggi which is the most in-demand
product along with Nescafe. Due to these two products, Nestle is able to drive other products in
the market as well. Thus, on purchase of one weak product, the distributor might get a discount on
the stronger product or vice versa.

Page | 17
The challenge for Nestle is in the chocolate segment where it faces stiff competition from Cadbury
and hence selling the chocolates becomes difficult. Kitkat might have its own brand positioning,
but it is not better than Dairy milk. Thus, converting retailers to sell Nestle instead of Cadbury is
the toughest task for Nestle. This is converted mainly through promotions.

Nestle has targeted almost all the areas including rural areas and urban areas. In almost all the
super-market and all other out-lets Nestle products are available. All the customers seem to be
very happy with the availability of Nestle product in the market.

So, Nestle can earn greater return from its distinctive competencies, i.e. unique strengths that allow
a company to achieve superior efficiency, quality, innovation and customer responsiveness. By
applying those competencies, and the products they produce, to foreign markets where indigenous
competitors lack similar competencies and products, Nestle can realize enormous returns.

Page | 18