Assignment on Performance dynamics of an industrial enterprise in Bangladesh- a case study of Nestle, Bangladesh

Nestle began in Switzerland in the mid 1860s when founder Henri Nestle created one of the first baby formulas. The start of World War I made it difficult for Nestlé to buy raw ingredients and distribute products. Fresh milk was scarce in Europe, and factories had to sell milk for the public need instead of using it as an ingredient in foods. Nestlé purchased several factories in the U.S. to keep up with the increasing demand for condensed milk and dairy products via government contracts. In 1874, The Anglo-Swiss Condensed Milk Company, founded by Americans Charles and George Page, merged with Nestlé after a couple of decades as fierce competitors to form the Nestlé and Anglo-Swiss Milk Company.
From 2003 to 2009 the acquisition of Mövenpick Ice Cream, Jenny Craigand Uncle Toby's enhanced Nestlé's position as one of the world market leaders in the super premium category. On the other hand Novartis Medical Nutrition, Gerber and Henniez join the Company in 2007. Meanwhile Nestlé entered into a strategic alliance with the Belgian Chocolatier PierreMarcolini at the end of 2009. 2010 to onward: In mid-2010 Nestlé finalized the sale of Alcon to Novartis; at the same time Nestlé bought Kraft’s frozen pizza business. Another important move in this period is launch of special. Tea machine system and the completion of the CHF 25 billion share buyback program.

Product profile

Globally the product line of Nestlé is very large but in Bangladesh currently there are only 12

products. Nestlé believes all foods and beverages can be enjoyable and play an important role in

a balanced and healthy diet and lifestyle; as a result no matter how short the product line may be

but it ensures the same quality in compare to the other countries.

Beverage-u Nescafe, Nestea, Nesfuta

Culinary- Maggi, Shade-Magic

Dairy- Nido, Coffee mate

Breakfast cereal- Comflex, Kokocranch

Nutrition- HunyGold, Lectozen, NAN, Cerelac

Star: These groups of products have got their popularity in market and in the growing stage.

Cash Cow: These groups have matured and bringing cash into the company.

Problem Child: Nestea is still trying to get customers attention, so there are huge investments in R&D for it. Nestle has brought TPM – Trade Promotion strategy for it. They attach Nestea minipack with Nescafe.