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Nestle Marketing Strategy

Essay by   •  January 13, 2012  •  Case Study  •  10,742 Words (43 Pages)  •  2,885 Views

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Table of Content

Introduction 2

Nestle -Introduction 3

Human Resource Department 7

Introduction Qarshi 8

Chapter 2 12

Literature Review 12

Chapter 3 Findings 18

Nestlé FindingsHuman Resource Activities at Nestle 19

Human Resource Activities at Nestle 20

HR Recruitment 20

360 degree appraisal 31

Remuneration 32

HR Administration 34

Qarshi Findings 35

Chapter 4 45

Analysis 45

Analysis- Nestle 46

Qarshi Analysis 51

Recommendations 55

Nestle 56

Qarshi 57

References ...........................................................................................58


Nestle -Introduction

Nestlé, a transnational company, with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Sales at the end of 2005 were CHF 91 billion, with a net profit of CHF 8 billion. Nestle employ around 250,000 people and have factories or operations in almost every country in the world.

The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives.


In the 1860s Henri Nestlé, a pharmacist, developed a food for babies. People quickly recognized the value of the new product, after Nestlé's new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe.

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early 1900s, the company was operating factories in the United States, Britain, Germany and Spain. World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production had more than doubled. The 1920s saw Nestlé's first expansion into new products, with chocolate the Company's second most important activity

Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in 1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescafe, which was a staple drink of the US military. Nestlé's production and sales rose in the wartime economy.

In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oreal in 1974.

Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc.

The first half of the 1990s proved to be favourable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas. Since 1996 there have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998) and Ralston Purina (2002). There were two major acquisitions in North America, both in 2002: in July, Nestlé merged its U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn acquisition was announced of Chef America, Inc.

Business Principles

While our Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of our Company, and reflects the basic ideas of fairness, honesty, and a general concern for people.

Consumer Services

Nestlé is committed to offering consumers high-quality food products that are safe, tasty and affordable. The Nestlé Seal of Guarantee is a symbol of this commitment.

Nestle also believe in maintaining regular contact with its consumers. This applies both to how it presents its products and to how it addresses its consumers' questions and concerns.

Nestle Brands

 Baby Foods

 Dairy Products

 Breakfast Cereals

 Ice Cream

 Chocolate and Confectionary

 Prepared Foods

 Beverages

 Food Services

 Bottled Water

 Pet care

Major Joint Ventures

Major joint ventures

1981 Galderma

1990 Cereal Partners Worldwide

1991 Beverage Partners Worldwide (formerly CCNR)

2002 Dairy Partners Americas and Laboratories innéov

Nestle Human Resource Policy Overview

This policy encompasses those guidelines which constitute a sound basis for efficient and effective HR Management in the Nestlé Group around the world.

They are in essence flexible and dynamic and may require adjustment to a variety of circumstances. Therefore its implementation will be inspired by sound judgment, compliance with local market laws and common sense, taking into accounts the



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