By: Fei Lu, Yicun Chen, Jayne Ridl, Josh Teigen. Nestle IntroductionIntroduction HistoryHistory Best Chocolate (Demo)Best Chocolate (Demo) Water Global.

By:By:

Fei Lu, Fei Lu,

Yicun Chen,Yicun Chen,

Jayne Ridl,Jayne Ridl,

Josh TeigenJosh Teigen

NestleNestle

• IntroductionIntroduction• HistoryHistory• Best Chocolate (Demo)Best Chocolate (Demo)• Water Global MarketWater Global Market• Chocolate Global MarketChocolate Global Market• Corporate MissionCorporate Mission• SWOTSWOT• Financial AnalysisFinancial Analysis• RecommendationsRecommendations

IntroductionIntroduction

Corporate MissionCorporate Mission

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

FUN FACT FUN FACT

According to a survey of According to a survey of sex shop owners, chocolate sex shop owners, chocolate is the least popular flavor is the least popular flavor of eatable underwear.of eatable underwear.

QUIZQUIZ

Chocolate HistoryChocolate History

• 66thth Century AD Century AD

• CacahuaquchtlCacahuaquchtl

• XocoatlXocoatl

Chocolate HistoryChocolate History

• Columbus’s GiftColumbus’s Gift

• Currency of beansCurrency of beans

• English English BuccaneersBuccaneers

• Chocolate MarketChocolate Market

Marquis de SadeMarquis de Sade

CasanovaCasanova

Madame de PompadourMadame de Pompadour

Viewer Discretion Viewer Discretion AdvisedAdvised

Madame du BarryMadame du Barry

Chocolate DiscoveriesChocolate Discoveries

• 1755 America

• 1780 Spain

• 1800 History

• 1819 Swiss

DEMODEMO

• Hand out chocolate barsHand out chocolate bars

Best ChocolateBest Chocolate

• AppearanceAppearance

• SnapSnap

• AromaAroma

• Mouth FeelMouth Feel

• TasteTaste

Nestle HistoryNestle History

• 1860 Founded1860 Founded

• 1875 Nestle 1875 Nestle ChocolateChocolate

• 1905 – 1918 1905 – 1918 Condensed MilkCondensed Milk

• Swiss Chocolate Swiss Chocolate RuleRule

Nestle HistoryNestle History

• 1947 – 1988 1947 – 1988

• 1992 Nestle water1992 Nestle water

• Chocolate WarChocolate War

FUN FACTFUN FACT

Despite the popular, myth chocolate does not cause acne. Acne is usually do to an improper diet or a body chemical imbalance.

Bottled Water Bottled Water Market StatusMarket Status

●●EuropeEurope AquarelAquarel●● FranceFrance Perrier & VittelPerrier & Vittel●● ItalyItaly VeraVera●● North AmericaNorth America

StrategyStrategy

Two kindsTwo kinds

●● Northern hemisphereNorthern hemisphere

■■ West--health, pleasure, wellnessWest--health, pleasure, wellness

■■ East—new productsEast—new products

innovative packaginginnovative packaging

■■ North America North America

●● Southern hemisphere– safe waterSouthern hemisphere– safe water

ChocolateChocolate

Major 5 companiesMajor 5 companies MarsMars NestleNestle Hershey’sHershey’s

KraftKraft

CadburyCadbury

KitKatKitKat

Strategy—varietyStrategy—variety

FUN FACTFUN FACT

In a recent survey, 70% of female respondents said they would rather have chocolate than sex.

STRENGTHSTRENGTH

• Brand-diversified brands but Brand-diversified brands but distinctivedistinctive

• Leadership-being the first globallyLeadership-being the first globally• Research center-ensure the productResearch center-ensure the product• Adjustability-customize the productAdjustability-customize the product

WEAKNESSWEAKNESS

• Inventory-unsold products influenceInventory-unsold products influence• Supply chain-input selected Supply chain-input selected • Revenue declineRevenue decline

OPPORTUNITYOPPORTUNITY

• Health awareness-getting more Health awareness-getting more popularpopular– Jenny CregJenny Creg

• Eco-awarenessEco-awareness• Marketing potential-broaden the Marketing potential-broaden the

marketmarket

THREATTHREAT

• Unethical marketing-reputation Unethical marketing-reputation impairedimpaired

• Internal chaos-embezzlementsInternal chaos-embezzlements• Package cost-goes upPackage cost-goes up• CompetitorsCompetitors

FUN FACTSFUN FACTS

The average American eats about 10 lbs of chocolate per year. The Swiss average 20 lbs per year.

Financials of NestleFinancials of Nestle

Revenues

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

Nestle Hershey Kraft Foods Con-Agra

Brands

Mill

ions

of D

olla

rs

2003

2004

2005

2006

Financials of NestleFinancials of Nestle

Retained Earnings Profit for the Year

0

2

4

6

8

10

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Billio

ns of

dolla

rs

Financials of NestleFinancials of Nestle

Global Market Value and Growth in Confectionaries

1.8%2.2% 2.3% 2.2% 2.0% 1.9% 1.8% 1.8% 1.8%

80859095

100105110

Year

Billi

ons

of

Dolla

rs

0.0%0.5%1.0%1.5%2.0%2.5%

% o

f Gro

wth

$ Billion % Growth

Financials of NestleFinancials of Nestle

Candy Competitors in Sales

Mars, 10.9%

Nestle S.A., 9.8%

Cadbury, 9.1%

Private Lable, 4.9%Other, 65.3%

Financials of NestleFinancials of NestleGlobal Market Volume and Growth of Confectionaries

0.6%0.8%

1.3% 1.4% 1.3%1.2%

1.3%1.2% 1.2%

13

13.5

14

14.5

15

15.5

16

Year

Bill

ons

of K

g

0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%

% o

f Gro

wth

Kg Billions % Growth

Financials of NestleFinancials of Nestle

Global Bottled Water Market Value and Growth

9.1%8.3%

5.5%6.3% 5.8% 5.9%

5.2% 4.7%5.3%

01020304050607080

Year

Bill

ions

of D

olla

rs

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

% o

f Gro

wth

$ Billion % Growth

Financials of NestleFinancials of Nestle

Global Bottled Water Market Segmentation

Sparkling Flavored

3.2%

Still Unflavored

66.5%

Sparkling Unflavored

29.0%

Still Flavored

1.3%

Financials of NestleFinancials of NestleGlobal Market Values and % of Growth of Bottled Water

8.6%9.3%

6.2%7.4%

6.6% 6.3%5.6% 4.9% 5.5%

0

50

100

150

200

Year

Billi

ons

of L

iters

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

% o

f Gro

wth

Liters Billion % Growth

RecommendationsRecommendations

• Increase Advertise MoreIncrease Advertise More– CouponsCoupons– 2 for 12 for 1– Less shelf lifeLess shelf life

• Introduce Low Fat Chocolate Introduce Low Fat Chocolate • Narrower Focus on ProductsNarrower Focus on Products• Special Contracts (US)Special Contracts (US)

Any QuestionsAny Questions