Nestle

MANAGEMENT THEORY AND PRACTICES ASSIGNMENT DIPLOMA IN PENGAJIAN PERNIAGAAN LECTURE NAME: MR.JAMALUDDIN

COMPANY LOGO

INTRODUCTION

Nestlé’s foundation was built in 1867 on humanitarian needs and social responsibility when Henri Nestlé, a trained pharmacist, developed a healthy and economical alternative source of infant nutrition to save the life of an infant who could not be breastfed. Today, more than 140 years later, Nestlé continues with its founder’s legacy to improve lives. Nestlé reaches out to the community everyday and in multitude ways. From helping single mothers to underprivileged children, nourishing budding athletes to mentoring programmers, and bringing nutrition awareness through various activities – Nestlé is firmly committed to its promise of Nourishing Malaysia.
Today, as it continues growing with the nation, Nestlé actively seeks avenues in which it can promote healthy lifestyles and wellness in Malaysia as part of its promise of Good Food, Good Life. As the world’s leading food company and with over 90 years of doing business in Malaysia, Nestlé has contributed towards the well-being of Malaysians not only through its high quality products, but has also played a role in social development and environment conservation. In line with the Nestlé position as “a trusted food, nutrition and wellness company”, we are focused on nourishing Malaysians to achieve overall wellness and deliver our promise to bring “Good Food, Good Life” to all members of society.
Nestlé's commitment to providing quality products to Malaysians dates back almost 100 years ago. Nestlé began in Malaysia in 1912 as the Anglo-Swiss Condensed Milk Company in Penang and later, growth and expansion made a move to Kuala Lumpur necessary in 1939.Since 1962, with its first factory in Petaling Jaya, Nestlé Malaysia now manufactures its products in 7 factories and operates from its head office in Mutiara Damansara.
The Company was publicly listed on the KLSE now known as Bursa Malaysia Berhad on 13 December, 1989. Today, the Company employs more than 5000 people and manufactures as well as markets more than 300 Halal products in Malaysia. Its brand name such has MILO®, NESCAFÉ®, MAGGI®, NESPRAY® and KIT KAT® have become trusted household names and enjoyed for generations.

COMPANY PROFILE

Key Facts
Nestle (Malaysia) Berhad

Head Office
Nestle House 422-1 22nd Floor Menara Surian1 Jalan PJU 7/3 Mutiara Damansara Petaling Jaya 47810 Selangor.

Phone
603 7965 6000.

Fax
603 7965 6767

Web Address http://www.nestle.com.my PROFILE MANAGING DIRECTOR

Peter R. Vogt
Managing Director of Nestlé (Malaysia) Berhad
Mr. Peter R. Vogt, a Swiss National, has been the Managing Director of Nestlé (Malaysia) Berhad and Regional Head of Nestlé Malaysia/Singapore since 16 September 2009.
A graduate in Accounting & Finance of Switzerland’s University St. Gallen, Mr. Vogt has over 30 years of management experience with Nestlé worldwide, the majority of which was in Asia including Japan, Hong Kong, Malaysia, Sri Lanka and Indonesia. During his last posting to Malaysia, he was Head of the Sales and Marketing Division of Nestlé Malaysia, a position he held from 1990 to 1994.
From 1996 to 2005, Mr. Vogt was heading various European Nestlé operations in Switzerland, Scandinavia and Germany before returning to Asia as CEO of Nestlé Indonesia from 2005 to 2009. He is married with two children.
Mr. Vogt is President of the Malaysian International Chamber of Commerce and Industry (MICCI), sits on the Federation of Malaysian Manufacturers (FMM) Council and is a member of the Swiss-Malaysian Business Association.

CORPORATE VALUE
Our corporate value of Trust, Respect, Involvement and Pride set the foundation for everything that we do at Nestlé’s and is prevalent throughout the company. The four core value shape our commitment to “A Heart For Excellence” which is pledge by our employees to always strive for excellence in all that we do, with care and respect.

* TRUST
We earn trust from each other, consumers and business partners with our competences, honesty and integrity.

* RESPECT
We respect and care for our people and their diverse cultures, religions and traditions.

* INVOLVEMENT
We are enthusiastically involved in proactive change to create sustainable and profitable growth.

* PRIDE
We feel proud in passionately building successful brand through our people and the quality of all our activities and products.

MOTTO

"Good Food, Good Life" is the Nestlé motto to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

Meaning of nestle motto:
Insufficient access to good food could result in nutritional deficiencies, malnutrition and other complex issues, which are why Nestle believes that Good Food is the foundation of Good Life.In addition to being the recognized leading Food, Nutrition, Health and Wellness Company, Nestle also aim to be the reference for financial performance and trusted by all stakeholders.
Meaning to the pride of nestle (“nest”)
Henri Nestle adopted his coat-of-arms as a trademark in 1867.Nestle, which means “little nest” is universally understood to represent warmth, security, nourishment, family togetherness, nurturing and caring values.

Objective of Nestle

“ Nestle business objective is to manufacture and market its products in a way that creates value that can be sustained over the long term for shareholders, employees, consumers, business partners and national economies in which Nestlé operates”. The aim of the creating values for the company include with improve business condition for the firm. To obtain more reliable and high qualify source of raw materials, improved government functioning and regulatory, employed skill and loyal workforce and superior quality products which successfully complete.

Corporate Philosophy * Be the leading multinational company in food, nutrition, health and wellness. * Manufacture and produce world-class products of the highest consistent quality, reliability and convenience based on business excellence principles throughout our operations. * Maximize the use of good quality local raw materials. * Be an exemplary employer with a progressive human resource and social policy; with a management style that is based on "Management Commitment and People Involvement" * Be a responsible corporate citizen, fulfilling all obligations to Government, shareholders, customers, communities and consumers. * Protect the environment by being committed to environmentally sound business practices and taking into account the need to preserve natural resources and save energy. * Guarantee that all products manufactured, imported and distributed by Nestlé Malaysia are certified HALAL by authorized Islamic certification bodies. * Deliver shareholder value through the achievement of sustainable and profitable long-term growth.

Creating Shared Value – The Concept
Creating Shared Value (CSV) is a fundamental part of Nestlé’s way of doing business that focuses on specific areas of the Company’s core business activities where value can best be created both for society and shareholders. Creating Shared Value says that for our business to be successful in the long run, it must consider the needs of two primary stakeholders at the same time: the people in the countries where we operate and our shareholders. Any business that thinks longterm and follows sound business principles creates value for society and shareholders through its activities, e.g. in terms of jobs for workers, taxes to support public services, and economic activity in general. But Creating Shared Value goes one step further. A company consciously identifies areas of focus, where shareholders’ interest and society’s interest strongly intersect, and where value creation can be optimised for both. As a result, the company invests resources, both in terms of talent and capital, in those areas where the potential for joint value creation is the greatest, and seeks collaborative action with relevant stakeholders in society.

Creating Shared Value Focus Areas.
At Nestlé, we have analyzed our value chain and determined that the areas of greatest potential for joint value optimization with society are Nutrition, Water and Rural Development. These activities are core to our business strategy and operations, and vital to the welfare of the people in the countries where we operate. We actively seek engagement and partnerships with outside stake holders that optimize positive impact in these areas of focus. However, Creating Shared Value is not about philanthropy. It is about leveraging core activities and partnerships for the joint benefit of the people in the countries where we operate and of our shareholders. We have joint programmers with over 100 organizations around the world in these three areas:

* Nutrition: because food and nutrition are the basis of health and of our business – it’s the reason why we exist. * Water: because the ongoing quality and availability of it is critical to life, the production of food and to our operations. * Rural development: because the overall wellbeing of the farmers, rural communities, workers, small entrepreneurs and suppliers are intrinsic to our ability to continue to do business in the future.
These three areas are fundamental to our overall business goal, which is “To become the recognized leader in Nutrition, Health, and Wellness, trusted by all stakeholders”.

COMPLIANCE OR SUSTAINABILITY
Creating Shared Value should also not be confused with compliance or sustainability. Creating Shared Value is built on the foundation of a strong compliance culture and commitment to sustainability. But Creating Shared Value goes beyond compliance and sustainability, and aims to create new and greater value for society and our shareholders within the areas of focus.
In doing so, Nestlé maintains a very long term perspective on business development and welcomes dialogue with external stakeholders who are committed to principled behavior and constructive engagement. This includes government and regulatory authorities, intergovernmental organizations, non-governmental organizations, academic and professional bodies, and local communities.

Halal Policy

Providing the HALAL assurance
Nestlé Malaysia was the first multinational to voluntarily request for Halal Certification of all its food products when it was first introduced in 1996. This does not imply that Nestlé products in Malaysia were not halal prior to that.
The certified Halal status for all Nestlé Malaysia products provides assurance that Nestlé products are manufactured, imported and distributed under the strictest hygienic and sanitary condition in accordance to the Islamic faith. Halal Benefits Everyone
All products manufactured, imported and distributed by Nestlé Malaysia are certified Halal. Products and premises for manufacturing have been inspected and have earned Halal certification by recognized Islamic bodies. The Halal logo included in all our packaging indicates that the products are prepared according to stringent Islamic requirements, whilst assuring that our production adheres to the strictest quality and non-Muslims will appreciate.

Nestlé Malaysia's Halal Policy * As a responsible corporate citizen of Malaysia, we are extremely mindful of our obligations to the country and its consumers. * We therefore produce, import and distribute only products which have been certified Halal by the Department of Islamic Development Malaysia (JAKIM). * We have set up the Nestlé Halal Committee comprising of senior Muslim executives from various disciplines to be responsible for all matters pertaining to Halal certification. * We are subject to regular inspections by the Department of Islamic Development Malaysia to ensure that the right conditions are maintained. * We are ultimately committed to ensuring the peace of mind of our Muslim consumers.

Nestlé Malaysia Halal Facts * Manufactures imports and distributes only products which have been certified Halal by authorized Islamic certification bodies. * Established an internal Halal Committee in the 1980s comprising of senior Muslim executives from multi-disciplines, responsible for all matters pertaining to Halal compliance. * Currently the biggest Halal producer in the Nestlé world, warranting its appointment as the Halal Centre of Excellence for Nestlé worldwide. * Exports its products to more than 50 countries worldwide with export sales of over RM689 million in 2009. * Imports Halal products from the 85 Nestlé factories worldwide which are certified Halal

ENVIRONMENTAL INFLUENCE AND ANALYSIS
Defining The External Environment
The term external environment refers to forces and institution outside the organization that potentially can affect the organization’s performance. The external environment is made up of two components.

* THE SPECIFIC ENVIRONMENT
Includes those external forces that have a direct and immediate impact on manager’s decision and actions and are directly relevant to the achievement of the organization’s goal.

a) CUSTOMERS
Organizations exist to meet the needs of customers who absorbs the organization out put. Consumer are becoming more price aware and tend to spend less while demanding at the same time for customization, product differentiation and specialization Logically, in these markets the consumer behavior, macroeconomic environment and cultural habits are different in contrast to western economies. Most of these markets are yet in a growth cycle and this clearly generates an opportunity because they are emerging markets and “untouched”.

b) SUPPLIERS

The competitive pressure from suppliers and supplier-seller collaboration is to analysis whether supplier-seller relationship represents a weak or strong competitive force depends on supplier –seller collaboration in the industry. When you think of an organization supplier, you typically think in terms of organizations that provide materials and equipment.

c) COMPETITORS

All organizations have one or more competitors. There are two types of competitors that is Direct Competitor and Indirect Competitor.

Direct Competitor

* Cadbury
Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. The ranges of products are mainly in Chocolates, gum and candies, and also dairy products such as chocolate instant drinks and many more.

* Mamee Double Decker
Mamee Double Decker was incorporated in 1971. The range of products are household names, including Mamee Monster; Mamee Instant and Sllrrrp! Noodles; Double Decker and Smax cracker snacks; Mister Potato Chips; Mister Potato Crisp; Cheers Beverage; Nicolet Swiss Herb Candy and the most recent additions, Nutrigen Cultured Milk Drink, Yogurt and IQ3.

* Dutch Lady
Dutch Lady Milk Industries Berhad (“DLMI”) is a leader in the quality branded dairy business in Malaysia. It was incorporated in 1963, and was the first milk company in Malaysia to be listed on Bursa Malaysia, the local Stock Exchange in 1968. Its holding company is Royal Friesland Foods, a Dutch multinational corporation and one of the largest milk companies in the world. The ranges of products are mainly on dairy and milk products such as Dutch Lady Milks for children’s, family and also for the young adults.

Indirect Competitor

* Starbucks [ Coffee shop ] * Coffee Bean [ Coffee Shop ] * Propter amp amp Gamble [ They supply canned coffee drinks ]

FORMULATING PRODUCT-MARKET STRATEGIES

* Marketing mix (4P’S) * SWOT analysis * PEST analysis * Social Responsibility

* MARKETING MIX (4P’S)

1. Product

Product item
Nestlé seeks to earn consumers’ confidence and preference and to follow and anticipate consumer trends, creating and responding to demand for its
Products. Therefore Nestlé is driven by an acute sense of performance, adhering to and favoring the rules of free competition within a clear legal framework.

* Milk
NESTLÉ Low Fat Milk - Enjoy great-tasting milk, minus the fat. NESVITA CALCIPLUS high calcium milk with CALCILOCK, a specially formulated bone cocktail by the Nestlé Research Center. NESVITA OMEGA PLUS milk, the only high calcium milk that contains ACTICOL with added plant sterols, scientifically proven to lower cholesterol.

* Breakfast Cereals
NESTLÉ KOKO KRUNCH is a delicious cereal with a rich chocolate taste that kids love. Made with the goodness of whole grain, NESTLÉ KOKO KRUNCH cereal provides eight essential minerals, plus iron and calcium. NESTLÉ KOKO KRUNCH DUO is a great combination of delicious white chocolate and delicious chocolate. NESTLÉ MILO cereals with its great NESTLÉ MILO taste give you the confidence, energy and spirit to take on the day. NESTLÉ MILO cereal made with the goodness of whole grain provides eight essential minerals, plus iron and calcium.

* Hot Cereals
NESTUM, a brand that has been in Malaysia for more than 50 years, is known to provide nutritious breakfast/snack to Malaysian - young and old alike. NESVITA 3 in 1 Nutritious Cereal Drinks - For those with fast paced lifestyles with little time for breakfast, NESVITA 3 in 1 is the answer for them as it is very convenient.

* Beverages
MILO is action packed with the natural goodness of malt, skimmed milk and cocoa for that great chocolate taste. MILO Can - Original, Mocha and Hi-Cal - Chill out with the great taste of Ready-to-Drink (RTD) MILO in Can, on the go. MILO FUZE 3 in 1 offers the great taste of MILO in a more convenient format. Just add hot water to enjoy the familiar MILO taste that you love. Perfect fit for your busy lifestyle. Get a taste that’s true to the original MILO van drink in every stick pack of MILO SEJUK. MILO with the same energy-packed, rich & chocolate taste also comes in handy ready to drink packs. Just right for your little ones whenever and wherever. Enjoy the goodness of refreshing New NESTEA, with tea, lemon flavor and Vitamin C. Sure to be loved by your whole family!

* Ice Cream
MAT KOOL - MAT KOOL is every kid’s friend who is always surprising with refreshing and delicious ice cream. NESTLÉ AIS POTONG - Enjoy the goodness of authentic Potong stick with new AIS POTONG from NESTLÉ! Bite into one and discover a savory core of crunchy Red Beans. NESTLÉ DRUMSTICK classic range with new improved recipes, new packaging and a revamped logo as well as introduced a new flavor “Almond Thrill”. NESTLÉ DRUMSTICK Size M Vanilla Chocolate - DRUMSTICK now come in Size M. A Mid-size cone that is great for smaller snack less calories intake. A different size for different occasions. NESTLÉ MILO CUP - Delicious taste of MILO chocolate malt flavored frozen confection fortified with ACTIGEN-E. NESTLÉ MULTIPACKS - NESTLÉ SMARTIES CUP - Delicious vanilla flavored frozen confection with milk chocolate and crunchy bits of SMARTIES.

* Confectionery & Chocolate
KIT KAT - "Have a Break, Have a KIT KAT" has become a familiar phrase. MILO CHOCO BAR - Enjoy the delicious taste of MILO with NUGGETS and CHOCO BAR range now. NESTLÉ CRUNCH - Say goodbye to a quiet day! Enjoy the new, improved recipe from CRUNCH. NESTLÉ MILKYBAR - NESTLÉ MILKYBAR is about goodness, wholesomeness and the innate purity of milk.

2. Place

Place relates to decisions about the storing and transporting of products, and also about selecting the products channel of distribution. These decisions are critical to the success of an organization. Effective inventory management drives down costs and enhances product quality. Choosing the right distribution channel (i.e. should we sell through middleman firms or should we sell directly to the end-user) Direct energy cost pressures have eased in recent months. The major distribution channel include with geographically consideration with the manufacturing place situated. It’s very cost effective way for the firm’s expenses in distribution its products to targeted market

PICTURE OF NESTLE SHOPS

3. Promotion

Few good or services, no matter how well developed, priced or distributed, cannot survive in the marketplace without effective promotion which is a communication by marketers that informs, persuades and reminds potential buyers of a product in order to influence their opinion. Promotional strategy is a plan of optimal use of the elements of promotions that is used by Nestle to promote Nestle products. The main function of Nestle promotional strategy is to convince target customers that their goods and services offered provide a differential advantage over the competition. A differential advantage is a set of unique features of a company and its product that are perceived by the target market as significant and superior to the competition. As example, Milo convinced their customer that children will be more energetic if they consume Milo. They also effectively communicate this differential advantage through advertising featuring Malaysia top national athlete such as Datuk Nicol Ann David.

The EXPLAINATION below show some example on how
Milo’s promote their products to the customer;

* Buy Milo 1 Kg free 1 Juara Cup
This is the second example on how Milo’s promote their product. If the customers buy 1 KG pack of Milo, they will get 1 Juara Cup. This kind of promotion will attract all the kids and even the adult to buy it.

* Buy MILO 400g free 50g
This promotion is for customer that likes to save their money. This is because Milo’s have make a promotion which is they will get free 50gm with every purchased of Milo 400gm pack.

Advertising
Advertising is defined as any paid form of product information that is delivered to potential customers in a non-personal way (such as through newspapers, magazines, television, radio, billboards, or the Internet). The communication is not just about advertising only and the communication often create a creative slogan in order to make sure consumer will remember Nestle products.

4. Price

The firm has several options for addressing the price. Domestically Nestlé’s Milo manufactured finished products may be force to switch to offshore sourcing of certain component to keep costs and prices competitive. Another factor is a through audit of the distribution structure in the target markets. An extension or ethnocentric pricing policy describe that the per-unit price of an item to be the same no matter where in the world the buyer is situated. Nestlé’s executive level monitor consciously on the freight and import duties according to the Malaysia market. Adaptation or polycentric pricing policy allows subsidiary or affiliate managers or independent distributors to establish whatever price they feel is most desirable in their circumstances. The firm utilizing independent distributors were the most likely to apply polycentric pricing. This type of approach is sensitive to the local market. The disadvantage facing in the company is local managers are free to price in the way they see fit, they did not fully informed about company experience when they set prices. The price harmonization from headquarter is necessary in dealing with international accounts. The management level consciously and systematically seeks to ensure that accumulated national pricing experience is influenced and applied wherever relevant. The organizations revenue represented that the food and beverage like Milo’s product gain more return on investment than other. It represent that the potential sustainable growth market for the firm.

Sample of price.

* SWOT ANALYSIS
S.W.O.T Analysis SWOT analysis is to find out how effective is operating and what internal factors may influence its success. A SWOT analysis the internal factors that may influence the success of a business. The initials SWOT stand for:

* Strengths * Weaknesses * Opportunities * Threats

Here is a SWOT analysis on Nestle products: Strengths

* Unique selling point. * Big sales in other countries. * It is available in different sizes, shapes and type. * Value for money. * Promotion/advertising done in other countries. * Widely available. * Strong R&D Team . * Strong Brand Name and Local Brand Names Owned.

Weaknesses

* Too Much Products distract from Core business. * Large Workforce Difficult to Manage. * Subsidiaries Difficult to Manage. * Rising Prices of Raw Materials. * Packaging (design of tin + labeling).

Opportunities

* Increased media available(mobiles/internet)

* Increased fitness industry.

* Increase awareness of health and fitness.

* Sponsorship (through sporting events).

Threats

* Competitors (hot chocolate, energy drinks).

* Well known successful brands as competitors.

* Competitors could use aggressive marketing tactics cut prices/increase promotion.

* Competitors bring out similar products.

* Competitors have diversity in packaging (bottles, pouches, cans, etc.

* PEST ANALYSIS

We are going to produce a PEST analysis to find out what external influences may be affecting the Nestlé’s product and to what extent to which customers decide to buy them. The purpose of the PEST analysis is to analyze the organization (Nestle) operates and to identify how it may influence marketing decisions. A PEST analysis the external environment in which an organization operates and identifies how it should influence marketing decisions.

The initials P.E.S.T stand for: * Political * Economical * Strengths * Threats Political Factors
The actions of governments can have major effects on business and markets, including creating or reducing demand for particular products and services. Stay within the law (being aware of legislation health and safety, advertising standards, consumer protection, trades description Restriction on imports Government back ‘Nestlé’s product ’ as an healthy foods.

Economical Factors
Consumer spending may be controlled by a range of economic factors such as income levels, inflation, taxes, unemployment, exchange rates and mortgage rates. Exchange rates (what are they here/abroad, If your buying from another country and the rates differs, it changes the price you end up paying) .Taxes (if they go up so will the costs for consumers). Recession (people have less disposable income – would they buy Milo?).Inflation (prices go up for the company and for the consumer)

Social Factors
Social trends are important because they have a direct influence on the demand for particular types of product. Society more aware of healthy lifestyle/rise in fitness industry. More focus on leisure time. More disposable (can afford to buy luxury goods) income. Fashion (could Milo be the next fashionable drink)

Technological Factors Development in technology gives rise to new products and market opportunities, e.g. the rapid growing use of computerized reservations systems. Advanced in technology change product/packaging/flavors. Advance in science (add to Milo formula more energy/healthier). Improved media/communication internet/mobiles etc.
Advances in production technology (more efficient + better quality/ less staff required = cheaper for Nestle = cheaper for customers).

* SOCIAL RESPONSIBILTY
Social responsibility is the obligation of organization’s management to make decision and take actions that will enhance the welfare and interests of society as well as the organization. Social responsibility is therefore quite important to the society, organization and human. It can be said that social responsibility is not fixed and has to be related to pressure at a particular point of time.
Responsibility can be divided into 4 groups of beneficiaries. * Owners/shareholders * Employees * Customers/consumers * Community

* EMPLOYEES

The Nestlé’s company has a responsibility to provide Nutrition Quotient (NQ) Training, mandatory for all employees with the aim of giving them basic nutrition knowledge and understanding to empower them as our Nutrition, Health and Wellness (NHW) Ambassadors.

Nutrition knowledge is not enough and we encourage our employee to put into practice their nutrition knowledge and lead healthy lifestyles. We believe that a healthy workforce will lead to happy employees and improved productivity. To this end, employees can enjoy a host of initiatives and activities such as 100 Days Wellness Challenge, The Nestle Super meet as well as those organized by the Nestle Recreation Clubs and Sports commitment. In addition, employee benefits from health checks, nutrition advice and healthy recipes.

As stated in the Nestle Policy on Health and Safety at work, our people are our most valued assets and priority is given to protect them. Our key safety performance indicator, the Lost Time Injury Frequency Rate (LTIFr), measures all absences from work of at least one day due to a work –related injury or illness – a widely accepted international standard that is based on the US-OSHA accident measurement standard.

* CONSUMERS

Nestlé’s consumers all over the world benefits from world-class manufacturing facilities, the best private R&D capability in food and nutrition, international quality and safety standard but with product catered to local preferences. As the world’s largest Nutrition, Health and Wellness company Nestlé’s has a responsibility to provide safe, good quality and value added products to help a wide range of people around the world meet their nutritional need to enjoy a healthy lifestyle.

Improving the nutrition knowledge of our consumers will empower them to make healthier choices, while for Nestlé’s we invest in products with nutritional benefits that can improve our long-term profitability through consumer demand. Other than that, Nestle also have the responsibility to protect consumers from the burden of product price increases.

Consumers trust has always been the key priority for Nestle and we aim to nurture this trust by improving our range of products and services through better consumers insight and stakeholders feedback.Futhermore,we want to offer our consumers peace of mind when they consume our products, not only by making sure all our products are safe and meet the highest quality standard but also with the assurance that all products manufactured , marketed , ,imported as exported by Nestle Malaysia are certified Halal by authorized organizations. Other than that, Nestlé’s company provide educational materials to improve consumers awareness on nutritional labeling , food safety and consumer rights to safe and quality foods.

* OWNERS / SHAREHOLDER

Nestle has had to face challenge and has experienced unforeseen external cost pressure as a result of fluctuating prices commodities and increasing cost of other input prices such as packaging materials. Our challenge is to balance the interest of all our shareholders, to provide good returns to our shareholders.

Company will not sacrifice long-term development for short-term gain to ensure business sustainability and fulfill out commitment to our shareholders.

* COMMUNITY

The true spirit of creating shared value is to build and shares our success with the community. Through our corporate responsibility initiatives, Nestlé’s has not only touched but also improved the lives of many underprivileged communities in Malaysia, which included the physically and mentally challenged.

Guided by the UN Millennium Development Goals, which priorities what is needed to address the most pressing needs of the society by focusing on poverty reduction, education and health issue, environmental sustainability and strategic partnership to desired results for our efforts.

In addition to agricultural related activities, Nestlé’s also support equal education opportunities, especially for communities in rural areas who lack basic facilities for education. Nestlé’s believes that education is a great enables which helps breaks the poverty cycle and aids in rural development and has embarked on many education initiatives for underprivileged children, single mothers and the disabled.

Nestlé’s also nourished those in need by providing monthly food aid and currently, 30 charitable organizations are beneficiaries of this programmed and receive basic nutrition for those in their care in particular the orphans, the aged and the underprivileged.

Conclusion

As the conclusion, we believe that the best way to research Nestle strategy in Malaysia is to try and contact Nestle and perhaps, brief interview should conduct withthe global brand such as Nestle, I think wider marketing strategy is universal across theglobe.But again we think it is differs from one region to another. Nestle is a brand, brand name for the company and family name for all nestle products in the market. It isalso an umbrella name for, for instance Nestle Milo or Nestle Nescafe. Unlike P&G or Uniliver, Nestle shares its name with all its products, like Maggi for example. This isinstance part of their branding and their wider marketing strategy.Nestle also is a product for everyone which suitable for all income level since theprice that set by the company is affordable and perhaps, cheap. It is very competitivesince the price is high in quality and most of the consumer does not thinking too muchabout the price.The marketing channels that have been used by Nestle to distributed Milo arealso one of the key successes of the product. The efficiency and high frequency indistributing Milo nationwide has been a convenience for consumer since they can buy iteasily at any store such as Mydin Mart, Carrefour and any convenience shop.

THANK YOU!