market segmentation {ekta}

MARKET SEGMENTATION OF MAGGI

1

A PROJECT REPORT ON


BACHELOR OF MANAGEMENT STUDIES

SEMESTER V

(ACADEMIC YEAR – 2010-11)

SUBMITTED TO THE UNIVERSITY 0F MUMBAI IN PARTIAL

REQUIREMENT LEADING TO A DEGREE IN BACHELOR OF

MANAGEMENT STUDIES

UNDER THE GUIDANCE OF

PROF. Mr. VIVEK . .SINGH.

SUBMITTED BY

EKTA . N. MANJREKAR

ROLL NO. / SEAT NO. 1234

TYBMS SEM - V

BHAVNA TRUST’S JUNIOR & DEGREE COLLEGE OF COMMERCE & SCIENCE

DEONAR MUMBAI – 400088

2010-2011

DEPARTMENT OF MANAGEMENT STUDIES


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CertificateCertificateCertificateCertificate

I hereby certify that ---------------------

Of Bhavna trust’s Degree College of Science & Commerce of TYBMS(Sem-V) has successfully completed project on ------------------------------------------------------------------ in the academic year 2010-2011. The information submitted is true and original to the best of my knowledge.

Signature of Principal Signature of project

Co-ordinator

Name& sign. of BMS Course

Co-ordinator Name & sign.of External Examiner


3

DECLARATION CERTIFICATE

I of Bhavna trust’s Junior & Degree College of

Science & Commerce of TYBMS(Sem-V) hereby declare that I

have completed this project on --------------------------------------------

------------------- in the academic year 2010-2011. The information

submitted by me is true and original to the best of my knowledge.

Signature of student


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MARKET

SEGMENTATION

OF

MAGGI


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TABLE OF CONTENT

CHAP

TER

NO.

PARTICULARS PAGE

NO.

ACKNOWLEGEMENT

EXECUTIVE SUMMARY

OBJECTIVE

1. OVERVIEW OF INDUSTRY

2. 2.1 INTRODUTION TO NESTLE

2.2 INTRODUCTION TO MAGGI

3. THEORTICAL PERSPECTIVE

3.1 WHAT IS MARKET SEGMENTATION

3.2 DEFINITION

3.3 IMPORTANCE

4. RESEARCH METHODOLOGY

5. MARKETING STRATEGY OF MAGGI

6. PRESENT MARKET CONDITION OF MAGGI

7. SWOT AND STPD ANALYSIS

8. DEVELOPMENT OF NESTLE

9. DATA PRESENTATION & ANALYSIS

10. RECOMMENDATION

11. CONCLUSION

12. BIBLIOGRAPHY

ACKNOWLEDGEMENT


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On the successful completion of this project I would like to express gratitude to all the

people who have helped me in completion of this project. I wish to extend my deep and

sincere gratitude to,………....to take out time from their busy schedules to provide me

with their able guidance at the time of need and who also helped me whole heartedly to

achieve the ultimate goal of the study. I would also like thank………..for providing me

guidance for understanding the importance of market segmentation.

Finally would like to express my gratitude to ………….. Management Studies and its

faculty for providing me with this learning opportunity.

EXECUTIVE SUMMARY


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OBJECTIVES

• To know marketing strategy adopted by maggi.

• To know present market condition in indian market and overseas market.

• To make SWOT and STPD analysis of maggi.

• To study the development of nestle.


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CHAPTER :- 1

OVERVIEW OF NESTLE

Nestlé’s relationship with India dates back to 1912, when it began trading as The

Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and

selling finished products in the Indian market.

After India’s independence in 1947, the economic policies of the Indian Government

emphasized the need for local production. Nestlé responded to India’s aspirations

by forming a company in India and set up its first factory in 1961 at Moga, Punjab,

where the Government wanted Nestlé to develop the milk economy. Progress in

Moga required the introduction of Nestlé’s Agricultural Services to educate, advise

and help the farmer in a variety of aspects. From increasing the milk yield of their

cows through improved dairy farming methods, to irrigation, scientific crop

management practices and helping with the procurement of bank loans. Nestlé set

up milk collection centers that would not only ensure prompt collection and pay fair

prices, but also instill amongst the community, a confidence in the dairy business.

Progress involved the creation of prosperity on an on-going and sustainable basis

that has resulted in not just the transformation of Moga into a prosperous and

vibrant milk district today, but a thriving hub of industrial activity, as well. For

more on Nestlé Agricultural Services, click here.

Nestlé has been a partner in India's growth for over nine decades now and has built

a very special relationship of trust and commitment with the people of India. The

Company's activities in India have facilitated direct and indirect employment and

provides livelihood to about one million people including farmers, suppliers of

packaging materials, services and other goods.


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The Company continuously focuses its efforts to better understand the changing

lifestyles of India and anticipate consumer needs in order to provide Taste,

69Nutrition, Health and Wellness through its product offerings. The culture of

innovation and renovation within the Company and access to the Nestlé Group's

proprietary technology/Brands expertise and the extensive centralized Research and

Development facilities gives it a distinct advantage in these efforts. It helps the

Company to create value that can be sustained over the long term by offering

consumers a wide variety of high quality, safe food products at affordable prices.

Nestlé India manufactures products of truly international quality under

internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR,

MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the

Company has also introduced products of daily consumption and use such as

NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Fresh 'n' Natural Dahi and

NESTLÉ Jeera Raita.

Nestlé India is a responsible organization and facilitates initiatives that help to

improve the quality of life in the communities where it operates. Nestlé S.A. is the

largest consumer packaged gooads company in the world,[2] founded and

headquartered in Vevey, Switzerland. Nestlé originated in a 1905 merger of the

Anglo-Swiss Milk Company, which was established in 1866 by brothers George

Page and Charles Page, and the Farine Lactée Henri Nestlé Company, which was

founded in 1866 by Henri Nestlé. The company grew significantly during the First

World War and following the Second World War, eventually expanding its

offerings beyond its early condensed milk and infant formula products. Today, the

company operates in 86 countries around the world and employs nearly 283,000

people.


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Nestlé S.A.

Type Société Anonyme (SIX: NESN)

Industry Food processing

Founded Vevey, Switzerland (1866)

Founder(s) Henri Nestlé

Headquarters Vevey, Switzerland

Area served Worldwide

Key people Peter Brabeck-Letmathe (Chairman),

Paul Bulcke (CEO)

Products

Baby food, coffee, dairy products,

breakfast cereals, confectionery,

bottled water, ice cream, pet foods

(list...)

Revenue CHF 107.6 billion (2009)[1]

Operating

income CHF 15.70 billion (2009)[1]

Profit CHF 10.43 billion (2009)[1]

Total assets CHF 110.9 billion (2009)[1]

Total equity CHF 53.63 billion (2009)[1]

Employees 278,000 (2009)[1]

Website www.nestle.com

.


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Nestlé headquarters in Vevey.

The company dates to 1867, when two separate Swiss enterprises were founded that

would later form the core of Nestlé. In the succeeding decades the two competing

enterprises aggressively expanded their businesses throughout Europe and the United

States.

In August 1867 Charles A and George Page, two brothers from Lee County, Illinois,

USA established the Anglo-Swiss Condensed Milk Company in Cham. Their first British

operation was opened at Chippenham, Wiltshire in 1873.[3]

In September 1867, in Vevey, Henri Nestlé developed a milk-based baby food and soon

began marketing it. Henri Nestlé retired in 1875, but the company, under new ownership,

retained his name as Farine Lactée Henri Nestlé.

] History

Henri Nestlé.


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In 1877 Anglo-Swiss added milk-based baby foods to its products, and in the following

year the Nestlé company added condensed milk, so that the firms became direct and

fierce rivals.

In 1905 the companies merged to become the Nestlé and Anglo-Swiss Condensed Milk

Company, retaining that name until 1947, when the name Nestlé Alimentana SA was

taken as a result of the acquisition of Fabrique de Produits Maggi SA (founded 1884) and

its holding company, Alimentana SA of Kempttal, Switzerland. Maggi was a major

manufacturer of soup mixes and related foodstuffs. The company’s current name was

adopted in 1977. By the early 1900s, the company was operating factories in the United

States, United Kingdom, Germany and Spain. World War I created new demand for dairy

products in the form of government contracts; by the end of the war, Nestlé's production

had more than doubled.

After the war, government contracts dried up and consumers switched back to fresh milk.

However, Nestlé's management responded quickly, streamlining operations and reducing

debt. The 1920s saw Nestlé's first expansion into new products, with chocolate the

company's second most important activity.

Nestlé's logo used until 1970s.

Nestlé felt the effects of World War II immediately. Profits dropped from US$20 million

in 1938 to US$6 million in 1939. Factories were established in developing countries,

particularly Latin America. Ironically, the war helped with the introduction of the

company's newest product, Nescafé, which was a staple drink of the US military. Nestlé's

production and sales rose in the wartime economy.

The end of World War II was the beginning of a dynamic phase for Nestlé. Growth

accelerated and companies were acquired. In 1947 came the merger with Maggi

seasonings and soups. Crosse & Blackwell followed in 1950, as did Findus (1963),

Libby's (1971) and Stouffer's (1973). Diversification came with a shareholding in L'Oréal

in 1974. In 1977, Nestlé made its second venture outside the food industry by acquiring

Alcon Laboratories Inc.


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In 1984, Nestlé's improved bottom line allowed the company to launch a new round of

acquisitions, notably American food giant Carnation and the British confectionery

company Rowntree Mackintosh in 1988, which brought the Willy Wonka Brand to

Nestlé.

The Brazilian president, Lula da Silva, inaugurates a factory in Feira de Santana (Bahia),

February, 2007.

The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and

world markets developed into more or less integrated trading areas. Since 1996 there

have been acquisitions including San Pellegrino (1997), Spillers Petfoods (1998), and

Ralston Purina (2002). There were two major acquisitions in North America, both in

2002: in June, Nestlé merged its U.S. ice cream business into Dreyer's, and in August a

US$2.6 billion acquisition was announced of Chef America, the creator of Hot Pockets.

In the same time frame, Nestlé came close to purchasing the iconic American company

Hershey's, though the deal fell through.[4] Another recent purchase includes the Jenny

Craig weight loss program for US$600 million.

In December 2005 Nestlé bought the Greek company Delta Ice Cream for €240 million.

In January 2006 it took full ownership of Dreyer's, thus becoming the world's biggest ice

cream maker with a 17.5% market share.[5]

In November 2006, Nestlé purchased the Medical Nutrition division of Novartis

Pharmaceutical for $2.5B, also acquiring in 2007 the milk flavoring product known as

Ovaltine. In April 2007 Nestlé bought baby food manufacturer Gerber for $5.5

billion.[6][7][8]


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In December 2007 Nestlé entered in a strategic partnership with a Belgian chocolate

maker Pierre Marcolini.[citation needed] Nestlé agreed to sell its controlling stake in

Alcon to Novartis on 4 January 2010. The sale forms part of a broader US $39.3 billion

offer by Novartis to fully acquire the world’s largest eye-care company.[9]

[edit] Products

Main article: List of Nestlé brands

Nestlé has 6,000 brands,[10] with a wide range of products across a number of markets

including coffee (Nescafé), bottled water, other beverages (including Aero (chocolate) &

Skinny Cow), chocolate, ice cream, infant foods, performance and healthcare nutrition,

seasonings, frozen and refrigerated foods, confectionery and pet food.

[edit] Business

Japan headquarters


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The Nestlé Tower in Croydon. This serves as their headquarters in the United Kingdom.

[edit] Management

The executive board, a distinct entity from the board of directors, includes:

Peter Brabeck, Chairman of the Board of Directors, Nestlé S.A.

Paul Bulcke, Chief Executive Officer, Nestlé S.A.

Werner Bauer, Executive Vice President, Nestlé S.A., Chief Technology Officer, Head of

Innovation, Technology, Research & Development

Friz van Dijk, Executive Vice President, Nestlé S.A. Asia, Oceania, Africa, Middle East

Luis Cantarell, Executive Vice President, Nestlé S.A. United States of America, Canada,

Latin America, Caribbean

José Lopez, Executive Vice President, Nestlé S.A. Operations, GLOBE

John J. Harris, Executive Vice President, Nestlé S.A. Chairman & CEO of Nestlé Waters

Nandu Nandkishore, Executive Vice President, Nestlé S.A. CEO of Nestlé Nutrition

James Singh, Executive Vice President, Nestlé S.A. Finance and Control, Legal, IP, Tax,

Global Nestlé Business Services

Laurent Freixe, Executive Vice President, Nestlé S.A. Europe

Petraea Heynike, Executive Vice President, Nestlé S.A. Strategic Business Units,

Marketing, Sales and Nespresso


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Marc Caira, Deputy Executive Vice President, Nestlé S.A. Head of Nestlé Professional

Strategic Business Division

Jean-Marc Duvoisin, Deputy Executive Vice President Nestlé S.A. Head of Human

Resources and Centre Administration

David P. Frick, Senior Vice President and ex officio Member of the Executive Board

According to a 2006 global survey of online consumers by the Reputation Institute,

Nestlé has a reputation score of 70.4 on a scale of 1–100.[11]

[edit] Earnings

In 2009, consolidated sales were CHF 107.6 billion and net profit was CHF 10.43 billion.

Research and development investment was CHF 2.02 billion.[1]

Sales by activity breakdown: 27% from drinks, 26% from dairy and food products, 18%

from ready-prepared dishes and ready-cooked dishes, 12% from chocolate, 11% from pet

products, 6% from pharmaceutical products and 2% from baby milks.

Sales by geographic area breakdown: 32% from Europe, 31% from Americas (26% from

US), 16% from Asia, 21% from rest of the world.

[edit] Joint ventures

Nestlé holds 26.4% of the shares of L'Oréal, the world's largest company in cosmetics

and beauty. The Laboratoires Inneov is a joint venture in nutritional cosmetics between

Nestlé and L'Oréal, and Galderma a joint venture in dermatology with L'Oréal. Others

include Cereal Partners Worldwide with General Mills, Beverage Partners Worldwide

with Coca-Cola, and Dairy Partners Americas with Fonterra.

[edit] Ethical and sustainable efforts

In 2000 Nestlé and other chocolate companies formed the World Cocoa Foundation. The

WCF was set up specifically to deal with issues facing cocoa farmers (disease had wiped

out much of the cocoa crop in Brazil) including ineffective farming techniques and poor

environmental management. The WCF focuses on boosting farmer income, encouraging

sustainable farming techniques and environmental and social programmes.[12]

Nestlé is a founding participant in the International Cocoa Initiative (ICI), an independent

foundation set up in 2002 and dedicated to ending child and forced labour in cocoa

growing, and eliminating child trafficking and abusive labour practices.[13]


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In October 2009 Nestlé announced its Cocoa Plan. The company will invest CHF 110

million in the Plan over ten years to achieve a sustainable cocoa supply. On the 23rd

October 2009 Nestlé and CNRA, the Ivorian National Centre for Plant Science Research,

signed a frame agreement for cooperation in plant science and propagation, with a target

of producing 1 million high-quality, disease-resistant cocoa plantlets a year by 2012. The

aim is to replace old, less productive trees with healthier new ones.[14][15]

Nestlé is launching a Fair Trade branded Kit Kat in the UK and Ireland from January

2010.[16]

[edit] Controversy and criticism

[edit] Marketing of formula

Main articles: infant formula and Nestlé boycott

One of the most prominent controversies involving Nestlé concerns the promotion of the

use of infant formula to mothers across the world including developing countries, an

issue that attracted significant attention in 1977 as a result of the Nestlé boycott which is

still ongoing.[17] Nestle continues to draw criticism that it is in violation of a 1981 World

Health Organization code [18] that regulates the advertising of breast milk formulas.

Nestlé's policy,[19] however, states that breastmilk is the best food for infants; however,

women who cannot or choose not to breast feed for whatever reason do need an

alternative to ensure that their babies are getting the nutrition they need.

[edit] Melamine in Chinese milk

Main article: 2008 Chinese milk scandal

In late September 2008, the Hong Kong government claimed to have found melamine in

a Chinese-made Nestlé milk product. The Dairy Farm milk was made by Nestlé's division

in the Chinese coastal city Qingdao.[20] Nestlé affirmed that all its products were safe

and were not made from milk adulterated with melamine. On October 2, 2008 the Taiwan

Health ministry announced that six types of milk powders produced in China by Nestlé

contained traces of melamine. Nestlé has announced that it will begin a recall of milk

products produced in China.[21][22]

[edit] Greenwashing


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A coalition of environmental groups filed a complaint against Nestlé to the Canadian

Code of Advertising Standards after Nestlé took out full page advertisements in October

2008 claiming that "Most water bottles avoid landfill sites and are recycled", "Nestlé Pure

Life is a healthy, eco-friendly choice" and that "Bottled water is the most

environmentally responsible consumer product in the world".[23][24][25] A

spokesperson from one of the environmental groups stated: "For Nestlé to claim that its

bottled water product is environmentally superior to any other consumer product in the

world is not supportable".[23] In their 2008 Corporate Citizenship Report, Nestlé

themselves stated that many of their bottles end up in the solid waste-stream and that

most of their bottles are not recycled.[24][26] The advertising campaign has been called

greenwashing.[24][26][25]

[edit] Zimbabwe farms

In late September 2009, it was brought to light that Nestlé was buying milk from

illegally-seized farms currently operated by Robert Mugabe's wife, Grace Mugabe.

Mugabe and his regime are currently subject to European Union sanctions.[27] Nestlé

later stopped buying milk from the dairy farms in question.[28]

[edit] Palm oil use

Rapid deforestation in Borneo and other regions to harvest hardwood and make way for

oil palm plantations sends massive amounts of carbon dioxide into the atmosphere.[29] In

particular, where peat swamp forests are cleared, destroying the habitat for many

threatened species of animals such as the orangutan, much public attention[30] has been

given to the environmental impact of palm oil and the role of multi-nationals such as

Nestlé in this.[31] There is ongoing concern by various NGOs including Greenpeace.[32]

Nestlé were met with "a deluge of criticism from consumers, after a large number of

Facebook users posted negative comments about the company's business practises."[33]

Nestlé's attempt to engage with the issue were met with criticism, including headlines

stating: "Nestlé fails at social media",[34] and "Nestlé Loses Face On Facebook".[33]

Nestlé Chairman, Peter Brabeck-Letmathe, in answer to a question from Greenpeace, told

the Company’s Annual General Meeting in Lausanne on April 15, 2010 that in 2009


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Nestlé used 320,000 tonnes of palm oil worldwide, comparing this with the 500,000

tonnes of palm oil used for biodiesel in Germany and Italy alone.[35]

In May 2010 Nestlé said it was inviting The Forest Trust, a not-for-profit group, to audit

its supply chain and promised to cancel contracts with any firm found to be chopping

down rainforests to produce the palm oil which it uses in KitKat, Aero and Quality Street.

Greenpeace welcomed the agreement promising to monitor it closely .[36][37][38]

[edit] E. Coli

In June 2009, an outbreak of E. Coli O157:H7 was linked to Nestlé's refrigerated cookie

dough originating in a plant in Danville, Virginia. In the USA, the caused sickness in at

least 69 people in 29 states, half of whom required hospitalization. Following the

outbreak, Nestlé voluntarily recalled 30,000 cases of the cookie dough. How the dough

became contaminated is unclear, because E. Coli is not known to live in any of its

constituent ingredients.[39]

[edit] External links

Official website

Article on ownership structure of Nestlé and L'Oréal

Nestlé S.A. concentrates trading of its shares on SWX Swiss Exchange

[show]

v • d • e

Nestlé

Corporate directors Günter Blobel · Peter Brabeck-Letmathe · Nobuyuki Idei ·

Henri Nestlé · Kaspar Villiger

Brands

Bottled water Aquapod · Aquarel · Arrowhead · Contrex · Deer Park · Ice

Mountain · Ozarka · Panna · Perrier · Poland Spring ·


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Powwow · Pure Life · San Pellegrino · Vittel · Zephyrhills

Baby foods Cerelac · Gerber (Gerber Life) · Nido

Baking Libby's Pumpkin · Toll House

Candies and sweets

100 Grand Bar · Abuelita · Aero · After Eight · Baby Ruth ·

Bertie Beetle · Big Turk · Bit-O-Honey · Breakaway ·

Butterfinger · Cailler · Caramac · Chico babies · Chokito ·

Chunky · Coffee Crisp · Crisp · Crunch · Goobers · Jelly

Tots · Kit Kat2 (not USA) · Lion Bar · Mackintosh's

Toffee · Matchmakers · Menier Chocolate · Milkybar ·

Mirage · Munchies · Nestle Fav*rites · Oh Henry!2 (not

Canada) · Orion · Peppermint Crisp · Perugina · Quality

Street · Raisinets · Rolo2 (not USA) · Rowntree's ·

Rowntree's Fruit Gums · Rowntree's Fruit Pastilles ·

Smarties · Sin Parar · Sno-Caps · Spree · Svitoch · Toffee

Crisp · Violet Crumble · Walnut Whip · The Willy Wonka

Candy Company · Yorkie

Dairy, coffee and drinks

Carnation · Caro · Coffee-Mate · Juicy Juice · KLIM · La

Lechera · Milo · Nescafé · Nespresso · Nesquik · Nestea ·

Ovaltine3 (malt only in USA) · Sjora

Ice cream Dreyer's/Edy's · Drumstick · Eskimo Pie · Häagen-Dazs1

(only USA/Canada) · Hjem-IS · Ice Screamers · La


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Cremeria · Maxibon · Mövenpick · Parlour

Prepared meals

Buitoni · California Pizza Kitchen · DiGiorno · Herta · Hot

Pockets · Lean Cuisine · Maggi (noodles) · Stouffer's ·

Thomy · Tombstone · Uncle Tobys

Nutrition and health Boost · Jenny Craig · Nutrament · PowerBar

Petcare Alpo · Beggin' Strips · Beneful · Dog Chow · Fancy Feast ·

Felix · Friskies · ONE · Tender Vittles

1 Brand owned by General Mills. 2 Local production rights owned by The Hershey

Company. 3 Local rights and specific trade dress owned by Nestlé, but not worldwide.

See also Nestlé boycott · International Code of Marketing of Breast-

milk Substitutes

Annual revenue 109,9 billion CHF (16% profit) (2008) · Employees 283,000 ·

Stock symbol SIX: NESN OTCBB: NSRGY · Website nestle.com


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CHAPTER:-2

2.1 - INTRODUCTION TO NESTLE

It was in the 1860s that Henri Nestlé, a pharmacist, developed a food specifically for

babies who could not breast feed. He first used this successfully on a premature infant

who couldn't tolerate his mother's breast milk. This product saved the child's life and

people soon began to see the value of it. Soon, Farine Lactée Henri Nestlé was being sold

all over Europe.

In 1905 Nestlé merged with a condensed milk company. By the early 1900s they had

factories in the United States, Britain, Germany and Spain. With the outbreak of World

War I, there was a great demand for these products. By the end of the war Nestlé's

production more than doubled.

Unfortunately, after the war, contracts dried up and the buying public went back to

getting fresh milk. In response to this, Nestlé streamlined their operation and reduced

their debt. By the 1920s the company had expanded its operation with chocolate being its

number two selling product.

Then World War II broke out and Nestlé immediately felt the effects. Their profits

dropped from $20 million a year before 1938 to under $6 million a year by 1939. In spite

of this, Nestlé began setting up factories in developing countries expecting a turn around

by the war's end. Ironically, the war was responsible for Nestlé introducing one of its


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most popular products, Nescafé instant coffee, which was the number one drink of the

United States military.

The end of World War II, just as Nestlé predicted, was the beginning of a great phase of

growth for the company. Nestlé acquired many other companies during this time. In 1947

they merged with Maggi, Crosse & Blackwell in 1960, Libbys in 1971 and Stouffers in

1973.

By the mid 1970s, Nestlé's growth in the developing world offset their slowdown in the

more developed countries like the United States. By the mid 1980s they had acquired

several additional companies, the biggest of which was the American company,

Carnation.

After the mid 1990s, because of the breakdown of trade barriers, Nestlé enjoyed what

was probably their biggest growth in history. Their acquisitions included the giant

company Ralston Purina, which mainly sells pet food.

In spite of Nestlé's diversification, they are and will always be mostly known for their

ever popular chocolate bars and drinks such as Nestlé's Crunch Bar, which is now also

made into an ice cream bar, Nestlé's Quick, which is a chocolate flavored powder to put

in milk, Nestlé's Carnation, another popular chocolate drink, the Kit Kat Bar, Smarties,

Nestlé's Maxibon, Nestlé's Extreme and a host of other products, a list that would take

days to go through.

In closing, it should be pointed out that a lot of Nestlé's success was a stroke of good

luck. It seems that a man named Daniel Peter figured out exactly how to combine milk

and cocoa powder. The result was milk chocolate. Well, Peter just happened to be a good

friend of Henri Nestlé. Peter started the company, but ultimately Nestlé took it over as

was destined to happen.

Long History of Research


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With a research history of over 150 years, Nestlé has always been at the forefront of food

science and nutrition research. Our scientists have continuously driven the R&D effort

with world-changing innovations ranging from the first milk food for babies to instant

coffee and espresso.

1849. Henri Nestlé sets up a laboratory.

Henri Nestlé, a pharmacist's assistant from Frankfurt, Germany, settled in Vevey,

Switzerland, on the shores of Lake Geneva in the 1830s and installed his own personal

laboratory. He was both an inventor and an entrepreneur.

1867. Nestlé's first product.

The product that marked the beginning of Nestlé’s corporate history "Farine Lactée

Nestlé" (Nestlé's Milk Food) was the world's first infant food. It was also the direct result

of research. It met an urgent need at the time, since infant mortality was still very high in

Europe, and enjoyed immediate international success.

1875. Nestlé's first chemist.

When Henri Nestlé withdrew from active business life in 1875, he made sure that the

company which carried his name continued his scientific tradition. A chemist was hired

with the mission to devise analytical methods to check the quality of the Company's two

main raw materials: milk and cereals. As the Company expanded, similar laboratories

were installed in other Nestlé factories around the world. So the nucleus of today's

international R&D network existed long ago.

1929.

Nestlé acquired the traditional Swiss chocolate companies Cailler, Peter and Kohler. The

Company inherited Daniel Peter's milk chocolate, a breakthrough invention dating from

1875.

market segmentation {ekta}

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