Anglo-swiss Condensed Milk Company

1866 1867

Ste Henri Nestle

1874 1882

Nestle and Anglo-Swiss Merge

1905

1910 1921

1927

1932

MERGERS EXPANSION NEW PRODUCTS

MERGERS & ACQUISITIONS 1929 Merged with PETER- CAILLER-KOHLER

1939 Invented “Nescafe”

1945 Merged with Maggie

1960 Acquired Crosse & Blackwell

1961 Acquired Locatelli

1962 Acquired Findus

1970 Acquired Libby McNeill & Libby

1971 Acquired Ursina Franck

1973 Stouffer Corporation

1977 Alcon Laboratories

By 1982• 25th Largest International Co. outside US• Operations in 75 countries• 282 plants in 56 countries• 140,000 employees

Nestles ORGANIZATION STRUCTURE MULTIDOMESTIC

SWISS.

GERMANY MEXICO U.S

NESTLE STRUCTURE-1983

Product Dir. M arketing Svc.

Production M gr.

Financial M gr.

M arketing M gr.

Product 1 M gr. Product 2 M gr.

Large Country M anager

Production M gr.

Financial M gr.

M arketing M gr.

Sm all Country M anager

HQ

• Strategy: Standardized VS Localized– How standardized or localized should the

marketing program be?

• HQ Influence: Centralized Vs Decentralized– What is appropriate level of HQ intervention in

decision making : degree of centralization?

INTERNATIONAL MARKETING PROBLEMS

Elements No HQ Initiative

Cross-fertilization

HQ Persuasion

HQ Decision HQ Enforced

Marketing Strategy

Product positioning

Product characteristics

Branding

Packaging

Distribution

Trade promotion

Consumer promotion

Media advertisement

Nestles Marketing Integration

StrategyStandardized Localized

HQ Influence

Centralized

Decentralized

Packaging

Product

Promotion

Marketing Strategy

Advertisement

Branding

Distribution