Group 4_Nestle Origins and Evolution of Nestlé

Nestlé is one of the world’s largest food and beverage companies, with a rich history dating back to 1867 when its founder, Henri Nestlé, developed the first infant cereal. Over the decades, the company has grown into a global giant, offering a wide array of products from dairy, nutrition, bottled water, and pet care to coffee, frozen foods, and confectionery. Nestlé's presence in over 190 countries highlights its central role in the global food industry, catering to diverse consumer needs and preferences.

### 1. **Origins and Evolution of Nestlé**

Nestlé’s story began in the 19th century in Vevey, Switzerland. Henri Nestlé, a trained pharmacist, created a breakthrough infant food formula called *Farine Lactée* as an alternative for mothers who couldn't breastfeed. This invention saved the life of a premature baby, catapulting Nestlé's brand into public attention. Over time, the company expanded into the dairy and chocolate industries by merging with Anglo-Swiss Condensed Milk Company in 1905.

By the 20th century, Nestlé was well-established in Europe, and after World War I, it made aggressive expansions into the United States, Latin America, and Asia. During World War II, Nestlé’s powdered milk and instant coffee (*Nescafé*, launched in 1938) became staples for soldiers, laying the foundation for the company’s post-war growth.

### 2. **Diversification and Global Expansion**

Nestlé’s commitment to innovation and diversification has allowed it to stay at the forefront of the food industry for over 150 years. The company continuously broadened its product portfolio through strategic acquisitions and internal R&D. Some significant milestones in Nestlé’s expansion include:

- **1974:** Acquired a stake in L'Oréal, signaling Nestlé's move beyond food.
- **1984:** Purchased the U.S.-based Carnation Company, giving Nestlé a strong foothold in the dairy and pet food markets.
- **2002:** Acquired Purina, cementing its dominance in the global pet care industry.
- **2010s:** Nestlé deepened its focus on health, nutrition, and wellness with the acquisition of brands like Pfizer Nutrition, and expanded into plant-based foods, further aligning with trends in healthier eating.

Nestlé’s global operations stretch from Europe and the Americas to Africa, Asia, and the Middle East, reflecting its ability to adapt to local markets while maintaining global standards.

### 3. **Sustainability and Corporate Responsibility**

As a global food producer, Nestlé has committed to addressing key sustainability and social responsibility challenges. Its initiatives include:

- **Environmental Stewardship:** Nestlé strives to reduce its carbon footprint, improve water conservation, and transition to more sustainable packaging. The company aims to achieve net-zero greenhouse gas emissions by 2050, emphasizing its dedication to reducing plastic waste and promoting recycling. Nestlé’s bottled water brands,

1. Group 4
EXPORTING
Nestlé

3. .
01
03
02
Discover how exporting boosts revenue, creates
jobs, and fuels innovation for businesses.
Explore the world of exporting, a key driver of
the global economy.
Uncover the types, processes, challenges, and
successful strategies behind exporting.

4. MAIN
CONTENT
04
03
02
Definition of exporting &
classification of exports
Advantages and disadvantages
of Market Entry
Forms of Export
A case study of Nestlé's
exporting practices

5. Definition of exporting01
Export of goods means taking goods out of
the territory of Vietnam or bringing them into
a special area within the territory of Vietnam
that is considered a separate customs area as
prescribed by law
=> Exporting is considered the least risky and
lowest-cost method, or simply the easiest way,
to enter international markets.
According to Article 28 of the Vietnam Commercial Law

6. Forms of Export02
Direct Export: This form involves companies selling
their products directly to buyers in the target market.
Indirect Export: This form involves companies selling
their products to trade intermediaries, who then resell
the products to buyers in the target market.

7. 1.
Identifying
Target
Markets
2. Market
Research
3. Finding
Customers
7. Post-
Export
Activities
4.
Determining
Price and
Payment
Terms
6.
Transportation
and Delivery
5. Preparing
Goods and
Export
Documents
Export process

8. Advantages and Disadvantages 03

9. 1. Advantages
-Increase in sales, market share and
create higher profit margins compared
to domestic markets
-Stabilize revenue fluctuations
due to economic cycles and
seasonal demand
-Minimize risk and Maximize flexibility
-Low Market Entry Cost

10. 2. Disadvantages
-Firstly, since no foreign
representative is needed (unlike
FDI), businesses have very few
opportunities to consult with
customers, learn from competitors,
and understand the unique
characteristics of the market.

11. 2. Disadvantages
-Secondly, compared to other
methods, exports are more
sensitive to tariffs and other trade
barriers, as well as exchange rate
fluctuations.

12. 2. Disadvantages
-Thirdly, if high transportation costs or the low value of
shipments do not cover export costs, choosing the export
method is not feasible.
-Lastly, exporting from the home market is not suitable
when a business finds a lower-cost location abroad to set
up a production base.

13. 04
A case study of Nestlé's
exporting practices

14. Established over 150 years ago, Nestlé is the
world’s largest, most diversified food and
beverage company.
They sell everything from baby food and
bottled water to cereal and healthcare
nutrition products. Their biggest brands
include Nescafé, KitKat, Nespresso, Maggi,
Häagen-Dazs, Toll House, and Milo.
Nestlé company
Henri Nestlé

15. •Global Presence
•Product Variety
•Market Penetration
•Supply Chain Management
•Corporate Social Responsibility
Why do we choose this enterprise to illustrate?

16. -Nestlé to tailor its export strategy to different
markets and consumer preferences worldwide.
-Nestlé adapts the design and taste of its
products to the demands of local communities.
Analysis of Nestlé’s export strategy

17. One way that Nestle adapts to local
markets is by developing products
that are tailored to local tastes and
preferences.
Nestle also works closely with local
suppliers and distributors to ensure
that its products are available and
affordable in each market.
Analysis of Nestlé’s export strategy

18. Affordability is one of the
qualities necessary for achieving
that goal. It ties in with location
strategy, as producing cheaper
goods domestically means a
lower price for the local markets.
Analysis of Nestlé’s export strategy

19. As Nestle seeks to collaborate and establish joint
ventures rather than suppress the local
competition.
The company shows a clear orientation for
long-term gains, as it establishes alliances and
builds factories in promising markets..
Analysis of Nestlé’s export strategy

20. The company uses partnership arrangements with third-party
logistic service providers to transport and distribute its
products.
•Using the best distribution routes planning networks in its
operations
•Improving the transportation facilities and using less
harmful fuel-oriented transport modes
•Training the drivers in handling safety and environmental
issues
Analysis of Nestlé’s export strategy

21. Nestle is working on its
route planning to optimize
its fleet operations. The
company is adopting the
faster mode of transport
like sea and rail instead of
road transport.
Analysis of Nestlé’s export strategy

22. 7,642
7,102
7,527 7,477
7,053
6,365 6,267 6,362
6,031 5,930
5,265
5,716
6,139 6,208
938
866
1,310
1,230
1,148
1,130
1,111
1,098
812
722
585
651
661
676
1,155
1,097
1,604
1,576
1,568
1,375
1,301
1,339
1,280
1,236
1,125
1,147
1,318 1,223
0
2,000
4,000
6,000
8,000
10,000
12,000
2010* 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sales of Nestlé's confectionery sector worldwide from 2010 to 2023, by segment
(in million CHF)
ChocolateSugar confectioneryBiscuits

23. -Nestlé leverages its extensive
portfolio of brands and products
to effectively penetrate and
expand into diverse international
markets.
Analysis of Nestlé’s export strategy
-Nestlé's export strategy in Vietnam
reflects its strategic approach to
tapping into the country's growing
market potential and enhancing its
regional presence.

24. -Exports of coffee products under the
NESCAFÉ brand of Nestlé in 2020
have increased by 20% over the
same period last year.
What have Nestlé achieved?

25. -Every year, Nestlé purchases 20 -
25%of Vietnam’s coffee volume for
processing for domestic consumption
and exports, with a total average
amount reaching US$ 600 -700
million, maintaining its position as
Vietnam’s largest coffee buyer.
What have Nestlé achieved?

26. -One significant challenge is navigating
complex international trade regulations and
tariffs imposed by different countries, which
can increase costs and complicate logistics.
What obstacles does Nestlé face?
-Cultural differences and varying consumer
preferences also pose hurdles, necessitating
tailored marketing strategies and product
adaptations to suit local tastes.

27. -Competition from local brands and
global competitors demands continuous
innovation and competitive pricing
strategies to sustain market share and
consumer loyalty.
What obstacles does Nestlé face?

28. -Nestlé should be able to make its product
available to the end consumer through its
extensive network of distribution.
-Nestlé’s Chairman and CEO should set Nestlé
on the path of achieving worldwide sustainable
competitiveness through the following strategic
pillars
-Nestlé should organize that focused on
leveraging its global reach to achieve operational
efficiencies
Recommendation

29. 01
02
These achievements underscore the immense
potential of exporting for other brands. Strategic
market selection, aligned with brand potential, is
crucial. Additionally, cultural sensitivity is
paramount for international success.
Exporting demonstrably propels corporate growth
and achievement, as evidenced by Nestlé's
success. Their global reach and brand recognition,
demonstrably fostered by exporting, solidify their
market leadership.

30. Group Members
Nguyễn Phương Hoa (22051042): Check out and Support (Content and
slide), Mini game Creator.
Phạm Hoàng Phương Linh (22051102) Part 1,2
Vũ Phương Thảo (22051121) Part 3
Hoàng Bằng Linh (22051085) Introduction, Conclusion, Presenter
Trần Thị Hoàng Minh (22051136) Part 4, Presenter
Cấn Trung Kiên (22051074) Slide

31. Reference
•Akinsipe Olasunkanmi, M. G. (2021). The economic effectiveness of
international companies on the markets of the host countries (based on
materials of Nestlé SA) (Doctoral dissertation).
•IvyPanda. (2021, June 23). International Business Strategy: Nestlé S.A.
Calvelli, A., Cannavale, C., Calvelli, A., & Cannavale, C. (2019). Market
Entry Strategy. Internationalizing Firms: International Strategy, Trends and
Challenges, 59-110.
•Charles W.L.Hill (2009), International Business: Competing in the
globalmarketplace, 7th edition, McGraw-Hill International Edition
•Jaelynn, W. (2019), Managing Change in Organization: The Nestle Case
Study Report

32. THANK YOU!