Nestlé USA Come for the Opportunity. Stay for the People.

WE’RE LOOKING FOR THE VERY BEST! For OPERATIONS MANAGEMENT DEVELOPMENT PROGRAM

Business: Operations, Industrial, Manufacturing, Production, food Industry and Supply Chain Management Agriculture: Food Science, Food Processing, Food Manufacturing Engineering: Industrial, Mechanical, Chemical, Electrical, Biosystems, and Agricultural Engineering *Applicants must be US citizens or permanent residents

Nestlé Information Session Thursday, Oct. 06 @ 6:00 p.m.-7:30 p.m. MU 219 Navajo Refreshments and Snacks

Deadline for resume submission is 10/10/2005. All resumes must be submitted via the ASU Career Services Website. Info Session for preselected applicants will take place on Monday October 17th, with interviews the following day.

Please contact your Office of Career Services for details on how to sign-up for interviews. To learn more about Nestlé USA, please visit: www.nestleusa.com

ASU – OMT – F05 RANKING FORTUNE 500: NESTLE IS RANKED AS 48TH COMPANY

BEST GLOBAL BRANDS: NESCAFE IS PLACED AT 26TH RANK NESTLE FOODS IS PLACED AT 58TH RANK HISTORY

• Nestle began in Switzerland in mid 1860s by HENRI NESTLE. • It’s first product was FARINE LACTEE (“Cornflour Gruel” in French). It was a baby product. • In 1874 the Nestle Co. was purchased by Jules Monnerat, enters the condensed milk market. • In 1905 it merged with its biggest competitor Anglo-Swiss Condensed Milk company. (cont’d)

• Nescafe was developed in 1930 and it became a main beverage for the American serving in Europe and Asia. • Total sales increased by $125 million from 1938 to 1945. • It expand it’s product line outside food market and acquire L’Oreal the cosmetic company in 1974. Presently it holds 26.4% share in the company. MISSION

Nestle is dedicated to providing the best foods to people throughout their day,throughout their lives,throughout the world.With our unique experience of anticipating consumers’ needs and creating solutions.Nestle contributes to your well being and enhances your quality of life. VISION

To be the leading food and beverage compay in the world providing customers with healthy food at affordable prices. PRODUCT LINE

• Coffee • Soups, seasonings, • Water and other pasta, sauces. beverages • Refrigerated products • Dairy products • Chocolate, • Ice cream confectionary goods and biscuits. • Infant nutrition • Nestle professionals

• Pet care. COMPETITIVE ADVANTAGE

UNMATCHED PRODUCT PORTFOLIO

PEOPLE, UNMATCHED CULTURE,VALUE NESTLE R&D AND ATTITUDE

UNMATCHED GEOGRAPHIC PRESENCE SALES AND GROWTH PRODUCT CATEGORY SALES ORGANIC (CHF BILLION) GROWTH POWERED AND LIQUID BEVERAGES 18,885 12.8% NESTLE WATERS 9,589 -1.6% MILK PRODUCTS AND ICE CREAM 20,561 9.2% NESTLE NUTRITION 10,375 7.7%

PREPARED DISHES AND COOKING AIDS 18,117 6.1% CONFECTIONERY 12,370 8.0% PET CARE 12,467 12.1%

PHARMACEUTICAL PRODUCTS 7,544 8.8%

OVERALL GROWTH RATE OF NESTLE IS 8.3% GROWTH RATE OF VARIOUS BRANDS NESTLE BABY PRODUCTS NESTLE GOOD START

Good Start Infant Formulas are specially designed to be easier to digest for baby's still-developing tummy because they're made with 100% partially hydrolyzed (broken down) GERBER 1st FOOD • It is for babies who are 6+ months of age • Comes in fruit and vegetable flavors

GERBER GRADUATE LIL ENTREES • It is for babies between the age group of 12-36 months • Real vegetables, wholesome pastas, and tender meats

GERBER GRADUATES SNAKES • It is for babies between the age group of 9-24 months • Real fruit and whole grains • A source of vitamins and minerals

• OTHER BRANDS

MARKET SHARE OF NESTLE

MARKET SHARE OF NESTLE AS A % OF COUNTRY TOTAL BABY FOOD MARKET USA 12

CHINA 30

RUSSIA 16.3

INDIA 80 COMPETITORS

HEINZ: • It has a worldwide share of 17% in baby food. • Best Global Brand: 48th rank.

MEAD JOHNSON: (Acquired Bristol myers,squibb) • Biggest competitor in US, • It has a market share of 52% in US

STRATEGY IN BABY FOOD MARKET

• Concentrate more on GDP Growth: 7.09% Birth Rate:21/1000 • Concentrate in US market.(Because of low share market) Birth Rate:13/1000

• Capture the African,China and Hong Kong market. • Less focus on and Romania as they have – ve population growth.

NESCAFE

COFFEE PRODUCTION

SOLUBLE COFFEE VARIETIES

• Decaffe • Everyday Choice • Café Menu • Super premium • Dolco Gusto Nescafe , skinny smooth, creamy flavour and Café Menu rich, milky froth,Vanilla, Hazelnut or Caramel Cappuccino. Skinny(low fat alternative),foaming

Nescafe Classic The world's favourite coffee! Every Day You will find it in just about every country around the globe.

multi-coffee capsule system Premium that will change the way you make, drink and think about coffee.

Nescafe Gold Blend golden roasted beans Decaffe Arabica and robusta ,exquisite rich aroma , smooth coffee taste Nescafe Green Blend Unroasted green coffee Every day Choice beans ,rich in polyphenol antioxidents, aroma fresh and smooth

Nescafe original Rich blend of Arabica and Every day choice robusta beans, Medium Dark Roasted , Non foaming

Nescafe 100% Arabican , fully roasted Premium , Nescafe Frappe A Refreshing cold coffee , Premium targeted at young adults

Nescafe Tasters choice Flavoured Coffee Only for US Market

Nescafe Alta rica All the dark-roasted qualities Premium of Alta Rica without all the caffeine.

Powdered and Liquid Beverages had an excellent year, with organic growth of 12.8% 2007 2008 ZONES IN MILLION CHF IN MILLION CHF GROWTH RATE

Europe 6168 6254 22

America 4007 4115 12.4

Asia, Africa 5685 6019 35.1

Soluble Coffee 10371 10688 37.5 MULTI TIER STRATEGY

Covers Major PPP Premurisation segment of Population EXPECTED GROWTH IN COFFEE MARKET

CRISIL Research (world wide) Per capita consumption CAGR of 3.5% between 2002 and 2007, Expected CAGR of 4.5% during 2008-2012. COMPETITORS

• China

Kraft(20% Market Share) President Coffee Co. ( joint venture between and the Taiwan based company Uni-President)90 outlets Blenz Coffee(Canadian chain) Shanghai Xing bake Nestle Has 46% Market Share Coffee Market Expected to grow by 70 % from 2008 to 2012. The popularity of instant coffee can also be attributable to its convenient preparation. This appeals particularly to white-collar workers who have busy lifestyles and cannot afford the time to prepare fresh coffee. Price-wise, fresh coffee is expensive when compared with instant coffee. USA Nescafe has small Market Share People like Roast and ground flavour Competitors : • Folgers(J M Smucker Co.) (38% Market Share) • Maxwell coffee house(Krafts Food) (33% Market Share) • Superior Coffee, Douwe-Egberts (coffee)(Yuban and Sara Lee)(10% Market Share) • Starbucks(5.6 billion in 2009) has major share • Mcdonald coffee (1.4 billion in 2009) -Nescafe Classico is the most trusted brand

UK • Starbucks Via Ready Brew(Recently launched in london) • Jacobs(Krafts food) • Folgers Instant Crystal

India • HUL Bru(44% Market Share) • Nestle (52.6%) • Australian instant coffee market is worth about $425M a year • Nescafe is the instant coffee market leader with around 70% market share • Decaff coffees are more popular

BEVERAGE MARKET (Share of Different Products as a %age of sales)

28.80% 37.50% SOLUBLE COFFEE WATERS OTHERS

33.70% NESTLE CHOCOLATE NESTLE PRODUCTS

• • KitKat • Butterfinger • • Wonka • • Callier Hershey Products

• Hershey, Pennsylvania, USA • Hershey’s cookies and creamy candy bar. • KitKat wafer bar. • Hershey’s kisses brand chocolate. • Hershey’s chocolate. • Hershey’s chocolate bar with almonds. • Hershey’s Mr.Good Bar chocolate bar. • Reese’s peanut buttercups. • Reese’s pieces candy. • Skor Toffee Bar. • Hershey’s special dark chocolate bar. Kraft Foods

Northfield, Illinois, USA • Chocolate orange • Toblerone • Cote d’Or • All Gold • Daim Chocolate Loving Nations

• Switzerland • Austria • Ireland • Germany • Norway Differential Basis of Nestle

Variety of customers. Variety of products. Global Market share of Chocolates & Confectionary

20% Nestle 34% Hershey

20% Kraft Foods

Others 26% CONFECTIONERY MARKET (Share Of Different Products as a %age of sales)

11.50% CHOCOLATE 9.30%

SUGAR CONFECTIONERY

BISCUITS 79.20% COMPETITIVE STRATEGY

• Nestle nutrition • Aims to balance the sales between low risk but low growth companies of the developed world and high risk and high risk markets of Africa and Latin America. • In developed markets, foreign direct investments in big companies. • In developing markets, nestle grows by manipulating ingredients & processing technologies according to local conditions and employ appropriate brand. • Our alliance with coca-cola • New markets and new businesses for growth • Acquiring Indofood

Planning to acquire Kraft foods frozen business • Business in U.S & Canada for USD 3.7 billion cash. • Includes brands as Digiomo, , Pizza kitchen, Jack’s & Delissio. • With total sales of 3 billion, Nestle will become the fastest growing frozen pizza category. • This acquisition will increase our presence in European Pizza market. • This will also enhance the EPS in the first full year of its ownership.

NEW R & D CENTRE

• On 5th Jan 2010, we opened a R&D centre in Santiago, Chile. • It focuses on biscuits and cereal based products. • It will help in innovation & renovation of products. Nestle to sell remaining Alcon shares to Novartis • It sells 156,076,263 shares in Alcon. • It represents 52% of outstanding share capital. • It is for USD 28 billion in cash. • The transaction will be completed around in the middle of 2010. • Steps of gradual divestment of ALCON: IPO of 23.25% in 2002. 24.8% in 2008. • This gradual divestment has insured that Nestle has achieved full and fair value of its shareholders.

NEW PRODUCT

• LC 1, powder mixed with foods & beverages. • It has probiotic cultures in this product. • Offered in Japan & Germany in the form of yogurt. • Not successful in European markets, UK and France. • Focuses on health conscious people. • We used print ads, direct mailing campaign & heavy internet advertising.

PROPOSED STRATEGY FOR LC 1

• Areas of food & beverage industry. • To educate the north American about the benefits of probiotics. • Strong advertising & marketing campaign. • To gain maximum market share. • To reinvest all profits,

COMPETITORS NAME OF THE LOCATION CATEGORY LEVEL OF COMPANY COMPETITION

Unilever Dutch company Packaged foods & International products for home competitor & personal care products. Kraft Foods U.S company Packaged food U.S based products competitor Hershey Foods U.S company Chocolate & sugar North America confectionary competitor products Groupe DANONE French company Packaged foods & International beverages competitor

Cadbury Schweppes U.K company Confectionary & International non alcoholic competitor beverages SALES BY GEOGRAPHIC AREA BREAKDOWN

Sales

32%, Europe

31%, america(26% from u.s) 16%,Asia

21%,rest of the world SALES BY ACTIVITY BREAKDOWN

Sales

27%, drinks

26%, dairy&food products

18%, ready prepared&cooked dishes 12%, chocolate

11%, pet products

6%, pharmaceutical products SIX principles for success

• Win all without fighting. • Avoid strength/attack weakness. • Deception& fore knowledge. • Shape your integration. • Speed and preparation. • Leadership, reinforcing success and starving failure.

Recmmendations • Focus on BRIC Countries

• Population growthConsumption rate- 0.55% China • Coffee is increasing 15% every year • Present population is 1325 Million

• Per Capita Coffee Consumption is 5.64kg • Population growth is .97% Brazil • Present Population is 191.97 Million • GDP growth rate-5.1% • Per Capita Consumption is 1.7kg • Present Population is 141.8 Russia Million • Population growth rate is 0.21

•Per Capita Consumption is 100gm •Population growth is 1.26% India •GDP growth rate is 7.9% FUNCTIONAL FOODS

• Intentionally modified to provide health benefits. • PricewaterhouseCoopers :Functional foods will grow in value from $78 billion in 2007 to $128 billion in 2013. • Incorporating healthier ingredients into its products . • These ingredients include live bacteria in yogurt, extra calcium • More easily absorbed by children’s bodies, and sterols (a kind of plant fat) that reduce blood cholesterol BCG MATRIX

Coffee Pizza MARKET GROWTH RATE Chocolates

RELATIVE MARKET SHARE