The Successful Operation of Nestle in China

In China, whenever Nestle is mentioned, the excellent advertising word "delicious" will blurt out immediately, and the sweet taste of Nestle food will immediately come to mind. The name, goods, brand and advertisement of a Swiss multinational company are so well-known in China with 65.438+25 billion consumers. Needless to say, we can see how impressive Nestle's achievements and success in China are.

Nestle struggled to start a business in China.

As early as 1908, after Nestle entered the European and American markets, it extended its reach to Asia and established trade relations with China. However, at that time, only a few people in China's upper class could taste the delicious food of Nestle, while most ordinary people didn't know what Nestle was. This situation has lasted for 70 years. 1978, a minister from China visited a factory of Nestle Group. After tasting the exquisite food there, he was deeply touched, and had the idea of letting China people enjoy Nestle food, so he suggested that Nestle invest and build a factory in China. Unfortunately, due to the special policy environment and different economic and cultural backgrounds at that time, this beautiful wish was frozen for nearly 10 years. Finally, 1987, Nestle Company obtained the right to set up a factory in Shuangcheng City, Heilongjiang Province after arduous negotiations with Chinese government departments. Although the factory is located in the coldest and simplest town in the northernmost part of China, Nestlé people regard this action as a test platform for the company to enter the big market in China. In the 1980s, Shuangcheng was still a very backward town with no decent road. The telephone is a manually operated machine, so it is difficult to communicate with the outside world. It took three weeks to open an account in the bank. Outsiders will think that Nestle is a well-known multinational company, and it is incredible how it chose such a rustic and backward place to set up a factory and start a business. However, Nestle people have a far-sighted vision. Considering the particularity of the China market at that time, and they waited for decades to enter the China market, compared with the expectations of these decades, such a start was hard-won.

Pursuit of goals and performance of success

For a long time, Nestle has always adhered to the principle that "the business activities of any country and city must be in line with local interests at the same time". China is no exception. Nestle people have a good purpose, that is, to seek economic benefits for local people. While pursuing long-term and stable economic growth goals, they have been making due contributions to improving the income and quality of life of local residents who set up factories in China. At first, the people in these two cities were indifferent to Nestle's plan to build a factory on this black land, but when they learned that their milk would be acquired by the company and their income would increase, the whole region was in jubilation and people rushed to tell each other. In the following days, a group of experts from Nestle often came and went to buy milk from various dairy households, and the enthusiasm of dairy households was fully mobilized. During the first 12 years of factory operation, the annual purchase of local fresh milk continued to increase, reaching nearly 300,000 tons in 200 1 year, making Nestle Twin Cities the largest dairy factory in China. Nestle provides a stable daily income for local farmers, and the lives of about 65,438+07,000 farmers, their families and many people in local communities have been fundamentally improved. In 200 1 year, the average income per person per day is 78 yuan RMB, which does not include their other agricultural income. The living conditions and infrastructure of farmers in this area have also been greatly improved. The company also provides attractive jobs and training for more than 900 full-time employees. By the end of 200 1, Nestle Group has contributed more than 850 million yuan to the local economy, including the purchase of fresh milk, the purchase of raw materials, energy and services, and the wages paid to employees in Shuangcheng. The company has truly built a factory for the benefit of one party. Under such difficult conditions in remote small towns in China, Nestle people can create such impressive achievements. Since then, they have naturally pushed into the markets of large and medium-sized cities in China. After more than ten years' development, we have grasped the demand of China, studied the advantages of dairy products, other product resources and human resources in this market, and obtained inexhaustible human and raw material resources. In addition, the company's own abundant capital and technical and management advantages have enabled Nestle to achieve its goal in the China market, and its business in China has entered a track of sustained profitability. By 200 1, Nestle's direct investment in China totaled 6.7 billion yuan. Set up 18 factory, all of which are managed and operated in a modern way. The total sales of this 18 factory has reached 7.5 billion yuan, of which about 800 million yuan has been turned over to the China Municipal Government.

Strategies for Developing China Market

1. Paying attention to brand promotion, promotion and penetration is one of Nestle's successful strategies in China. Make full use of various media (TV, radio, newspapers and magazines) to promote the company's products, and make Nestle one of the most well-known and trusted foreign brands in China. In China, this product covers a series of products manufactured according to the highest international quality standards, including: baby rice flour and wheat flour, sweetened condensed milk, baby milk powder, breakfast cereal, instant coffee, coffee skimmed milk powder, ice cream, chocolate and candy, bottled water, beverages, soups and cooking products. Alcon, a subsidiary of Nestle Group, also manufactures and sells glasses products in China. Nestle started with a single dairy product in China market, and now more and more products are on the market. When consumers in China see any products of Nestle brand, they will immediately think of high quality, safety and reliability. It shows that the company's brand has achieved the best effect in China.

2. Technological innovation and research and development are the main focuses of the company. Nestle Group has more than 130 years of history and experience in the research of nutrition, food, botany and food quality and safety. On this basis, the company has been committed to exploring and pursuing the latest knowledge and expertise in food processing. And use the obtained high technology to ensure the high quality of products. Nestle has been transferring its world-class know-how and rich expertise in nutrition and food processing to China since it invested in China. Nestle people are never conservative, because they are fully aware that helping others is helping themselves. In 2000, Nestle had 20 R&D centers on four continents, of which 17 was the R&D center for food and nutrition. In that year, the total R&D expenditure invested by the Group in China was RMB 565.438+0 billion.

3. People-oriented system management is the fundamental strategy of Nestle in an invincible position. "People and products are more important than the system" is the basic policy pursued by Nestle as a famous multinational company. In China, the company has always paid attention to the cultivation and use of human resources, and took the lead in implementing the localization strategy of talents. Branches and factories opened in various provinces and cities mainly recruit talents and employees from local areas. The company organically combines the development of employees with the development of enterprises, strives for synchronization and creates a good working atmosphere for employees. At the same time, we attach great importance to the cultivation of talents, and often invest a lot of money to train talents, production supervisors and sales managers, so as to provide employees with the greatest opportunities for exercise and promotion and create good conditions for communication among colleagues. Through these humanized management to build corporate culture, and finally implement systematic management. Nestle has always emphasized the management concept and leadership mode of "decentralized system", which is also a manifestation of its humanized management. Nestle Group's international headquarters and holding company are registered in Switzerland. How to centralize the headquarters and give branches the greatest freedom and independence is a problem that every multinational company like Nestle has to face and solve. However, Nestlé' s practice has always been to make major strategic and financial decisions at its headquarters, coordinate training for markets in all regions of the world, and draw up some basic principles to create 100% operational strength and flexible space for its branches in all regions of the world, and all regional branches strive to implement the unified policies of the headquarters with the smallest differences.

It is by using various flexible strategies that Nestle started late in China, but it started from a high point and developed rapidly. 1988, Nestle Company and Dongguan Sugar and Liquor Group Co., Ltd. successfully established Dongguan Nestle Co., Ltd., mainly producing instant coffee and related products. 1In the autumn of 1999, Nestle successfully acquired 80% of the shares of Taitaile Group, a well-known domestic seasoning food enterprise. It occupies a dominant position in the chicken essence market in China. The cooperation with Mrs Taylor diversified Nestle's business in China, which set a milestone for the development of its cooking business in China. Then, on 200 1, Nestle cooperated with Haoji Company, the second largest chicken producer in China, and established Sichuan Haoji Food Co., Ltd., a joint venture company of 1, which further enriched Nestle's fast-growing cooking business.

With the improvement of living standards of China residents, the bottled drinking water market has great development potential, and China has become a big consumer of bottled water in the world. Nestle's drinking water business has always been a strong point, covering more than 30 countries around the world, with more than 60 product brands. This time, the company sized up the situation and seized the great business opportunity. 1997 started to set foot in the drinking water market in China. According to China's vast territory, northerners like pure natural water, and southerners like to drink sweet and soft pure water. Nestle quickly and accurately divides the product types into north and south parts. At the foot of Panshan Mountain in Tianjin and Shanghai, two modern production bases of natural mineral water and pure water have been established respectively. After that, Nestle gradually increased its investment in drinking water business, using international advanced production technology and conceptual experience. The product quality and packaging design in China have reached the world-class level, and the sales volume has also shown a surge trend. Its business spread all over China and gained the market initiative. In order to further expand its scale, Nestle has also made innovations in bottled water business, formulated new marketing strategies, changed the traditional self-sales methods, cooperated with hundreds of distributors in China, and expanded its market share through cooperation with manufacturers of water dispensers.

Nestle has provided delicious food for the people of China, and at the same time, it has also made considerable profits. At this time, he has not forgotten the truth of taking it from the people and using it for the people. The company has been enthusiastically supporting various public welfare activities in China. Beijing's Olympic bid is an urgent task for China people to show themselves to the world, and Nestlé people also actively support it. From April to June of 20001year, Nestle cooperated with the office of the National Youth Working Committee to jointly hold the activity of "New Beijing, Great Olympics, Let's paint it together", and organized 65438+ in Beijing, Shanghai, Guangzhou and Chengdu. And sponsored six representatives of young pioneers of different nationalities to go to Switzerland, where the International Olympic Committee is located, to express the good wishes of Chinese sons and daughters to support Beijing's bid for the Olympic Games. Nestle Group also showed its determination to invest in China and take root in China with such actions, as well as its good wishes for China's sustainable development and increasing prosperity.