In this report you can study about Marketing Mix of Nestle Company We are covering the following topics: Nestlé’s History, Shape of the Nestlé Logo, NESTLÉ – An Introduction, Mission Statement, Vision and Values, NESTLÉ TODAY, Major Competitors, BCG Growth Matrix, Product Life Cycle, Our progress, The Nestlé Policy on Environmental Sustainability, Nestlé Environmental Management System, Product life-cycle approach, Nestlé – Four “Ps”, Products, Variety, Quality, Packaging,, Services & Brand name, Price, Industry overview and performance in FY09, Financial performance (FY04-10), Profitability, Liquidity, Asset management, Debt management, Market ratios, Future outlook, Place, Distribution Channel, Coverage, Inventory, Logistics, Promotion, Modes of advertising, Direct Mail/SMS to Users, Outdoor Advertisement, Transit Advertising, Segmentation, Targeting and Positioning Of Nestlé, Market Strategies, Marketing Strategy of Nestlé in Pakistan, Market Segmentation, Target Marketing, Differentiation, SWOT Analysis, Strengths, Weaknesses, Opportunities, Threats, PEST Analysis, Political analysis, Economical Environment, Social analysis, Technological, General Recommendations by the Public, Conclusion

1. To be presented by:
- Saad Mubashar - Sara Hameed
- Hassan Habib - Umair Muneeb
- Maham Aslam - Hira Baig
- Rushan Shakur - Hafiz Zubair
- Hafiz Dabeer

2. What is Nestlé?
• Nestlé is a Swiss multinational food and beverage company.
• Nestlé’s products include baby food, bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen
food, pet foods, and snacks.
• It is the largest food company in the world measured by revenues.
• Nestlé Pakistan started in 1988 under a joint venture and took over
management in 1992.

3. Nestlé's Mission Statement
• Nestlé’s mission, in the words of our founder Henri Nestlé, is
to:
“...positively influence the social environment in which
we operate as responsible corporate citizens, with due
regard for those environmental standards and societal
aspirations which improve quality of life.”
Henri Nestlé, 1857.

4. Nestlé's Vision Statement
Nestlé's vision statement on its global website:
“To be a leading and competitive nutrition, health and
wellness company delivering improved shareholder value
by being a preferred corporate citizen, preferred
employer, preferred supplier selling preferred products.”
www.nestle.com/randd/ourvision

5. Nestlé – A very brief history
• 1866: The key factor which drove the early
history of the enterprise that would become
The Nestlé Company was Henri Nestlé's
search for a healthy, economical alternative to
breastfeeding for mothers.
• 1905: The Company formed by the merging was called the Nestlé and
Anglo-Swiss Milk Company.
• 1938-1944: The end of World War I brought with it a crisis for Nestlé.
• 1944-1975: The close of World War II marked the beginning of the
most dynamic phase of Nestlé's history.

6. Nestlé – A very brief history
• 1974: Agreement with L'Oréal in 1974,
Nestlé's overall position changed rapidly.
• 1981: Nestlé approached the 1980s with
renewed flexibility and determination.
• 2005: Chairman recognised that the eating habits of the world’s
population were changing and hence it began its own transformation.
• 2009: Held the first Creating Shared Value Forum in New York, with
leading experts in the areas of nutrition, water and rural development
coming together to discuss serious global challenges facing us in
these three areas and the role of business in helping to solve them.

7. Nestlé – History of Logo
The earliest Nestlé logo was introduced
by Henri Nestlé in 1868, based on the
meaning of his name in German, i.e. little
nest.
Later in 1938, the “Nestlé” name was
introduced to the traditional nest design.
However, in 1966, the design was again
altered with a few minor graphic tweaks.
In 1988, the worm in the beak of the
mother bird was taken out while an extra
fledgling was also removed.

8. Nestlé Today
• Operates in 194 countries.
• 447 factories in 89 countries.
• 2000+ brands worldwide.
• Employs almost 339,000 people.
• Sales in 2014 worth 95 Billion USD or 9.7 Trillion PKR.
• Largest R&D network of any food company, with 34 R&D facilities
and over 5,000 people involved in R&D.
• In 2011, Nestlé was listed No. 1 in the Fortune Global 500 as the
world’s most profitable corporation.

9. What is Marketing Mix?
The marketing mix is often
associated with the four P's.
They include:
 Price
 Product
 Promotion
 Place
The marketing mix is a
business tool used
in marketing and by marketers.

10. PRODUCT
 Broadly products have been classified into 4 major types
 1 beverages e.g.: Nestea
 2 milk and milk products e.g.; nestle everyday
 3 prepared dishes and cooking aides e.g. : Maggi noodles
 4 chocolates e.g.; KIT KAT , Éclairs
 Its product portfolio includes 8 of the 30 top selling
confectionary brands e.g. smarties , polo, aero ,milky etc.

11. BRAND NAME
 Nestle has captivated a loyal customer base through its focus on nutrition
and health requirements and consumer preferences at a competitive price
and it has enhanced the reputation of the company.
 “A Nestle brand name on a product is a promise to the customer that it is
safe to consume, at it complies with all regulations and that it meets high
standards of quality”

12.  On 17th march GREENPEACE attacked on KIT KAT that the palm oil is
obtained from SINAR MAS which is unsustainable it started decreasing the
brand name
 To tackle with this problem they chose FOREST TRUST company to audit
the suppliers.
 So by using good strategy nestle retained its brand name

13. VARIETY
 Nestle offers a wide product mix that comprises of food, health and
nutrition products to meet the customer needs. Nestle offers its products
in the following categories: Bottled water, Baby foods, Breakfast
cereals, Chocolate and confectionery, Coffee, Dairy products, Drinks,
Ice cream, In the Kitchen, Nestle Professional, Nutrition and Health,
Pet care.

14. QUALITY
 Quality: Nestle is well known for the quality and taste of its products.
Nestle Believes that “Success is built on Quality’’

15.  The NQMS is composed of three main elements:
 The Quality Standards capture the knowledge and expertise of
Nestlé professionals to ensure a consistent application of what we
know. Quality standards incorporating centrally established generic
and product-specific requirements are managed through locally
defined operating quality manuals. Country specific standards,
based upon local regulatory requirements, are incorporated at the
local level.
 A Continual Improvement Management Cycle to ensure an
effective and efficient management of Quality processes, to measure
performance, and drive the enhancement of our Quality culture.

16.  A Process-Based Management System compassing the whole value
chain in which all functions are responsible to define and manage the
processes they own which can impact on product safety, compliance and
consumer delight. Support Functions provide assistance, expertise and
tools in order to meet the NQMS requirements and to achieve the quality
objectives.

17. DESIGN
 As its variety range, Nestle also has a greater range of design. Nestle make
sure all their new products look different and attractive.

18. FEATURES
 Nestle have made sure that all their products have special features to
make it more attractive to the customers. For example: In case of their ice
creams, they have tried to include the special feature that is the low fat and
sugar content

19. PACKAGING
 Nestle uses very attractive packaging as one of their main marketing
strategies.
 For its efforts, Nestle has won several accolades such as the Silver Star and
“Best in category” as “Best Packaging Innovation leading to a significant
reduction in household waste” by the British Institute of Packaging for the
Dairy Box biodegradable tray which is manufactured by using renewable
resources.

20.  Nestle use heavier gram mage of recycled materials to guarantee
our standards.

21. Price
“The sum of all the values consumers give up in order to gain the
benefits of having or using a product or service.”
 Price is the one, which creates sales revenue – all other parts of
marketing mix are cost.

22. FACTORS
There are following factors that influenced
pricing decisions.
 Changes in technology
 Effect of suppliers
 Competitive pressure
 Increasing price sensitivity of the customers

23. Pricing of the Product
According to David Jobber, pricing of a product
mainly depends on 3 factors:
 COST ORIENTED PRICING
 COMPETITOR ORIENTED PRICING
 Market oriented pricing

24. Pricing strategies
 There are following pricing strategies:
 Penetration pricing
 Psychological
 Bundling
 Price discrimination
 Price flexibility
 Negotiating margins

25. Penetration pricing
Penetration pricing is the pricing
technique used by the firm in
which offering a low price for a
new product in order to attract
more customers away from the
competitors.

26. The new products introduce by Nestle last two years
is the Maggi new flavor of the instant noodles. So, they
are sold in a lower price which is Rs 18 in order to attract
new customers. Nestle want to attract more customer away
from their competitor which also produce the similar flavor
which sold at rs20. However, the price of this product
increased to around rs19. This is because they had gained
larger market share and customer base.
Example

27. Psychological pricing
 Psychological pricing is a pricing strategy that helps to
create a positive psychological impact on the buyers and
tempts then to purchase a product.
 The selling price of the products are often expressed as
“odd price” which a little less than a round number.
 Most of the Nestle Company’s products are using this
psychological pricing strategy

28. Example
 Nestle Bliss which is one of the chilled diary product
produced by Nestle sold at rm3.95. Consumer will have a
positive perspective on the price which they feel like this
product is selling at rm3 rather than rm4. Therefore, they
will feel the price is cheap, and will buy it.

29. Bundling
 Bundling (package tie-in sale) is a type of tie-in sale in
which two goods are combined so that customers cannot
buy either good separately.
 Nestle company usually use mix bundle rather than pure
bundle

30. Example
Nestle always do the promotion in supermarket like purchase
2 bottles of Nestle Bliss at rm7.50 only. Original price of 1
bottle costs rm3.99. If consumer purchase 2, it is much
cheaper. As a rational consumer, we normally ss purchase 2
bottles rather than 1, because we feel like it is much cheaper.
Therefore, this pricing strategy can increase sales volume and
maximize profit very efficiently in both short-term and long-
term

31. Price discrimination
 It is refers to practice in which a firm charges consumers
different prices for the same good.
There are three types of price discrimination
 Perfect price discrimination
 Quantity price discrimination
 Multimarket price discrimination

32. Perfect price discrimination
 Perfect price discrimination happens when firm
charges each individual customer his reservation
price. Reservation price means the maximum price
that the customer willing to pay for a good.
Nestle as a food and beverage company is not suitable to practice this
type of price discrimination because it is hard for Nestle to prevent resale.
Therefore, imperfect price discrimination is not applicable for Nestle company

33. Quantity price discrimination
 Most of the customers are willing to pay more for the first few units of good
they purchase, but as the unit of purchase increase, their reservation price will
start to decline. Therefore, in this situation, firm may choose to discriminate
the price base on the quantity. This type of price discrimination is called
quantity price discrimination
 Normally, this type of price discrimination is applied by company that provides
utilities to consumer. Hence, this type of price discrimination is not applicable
to Nestle because Nestle usually has a fixed price for its good and service

34. Multimarket price discrimination
 Multimarket price discrimination occurs when firm divide
its customer into several groups and charges different
price for each group of customer provided that each
group have different elasticity of demand curve
 , Nestle can practice multimarket price discrimination in
order to gain more profit

35. Example
 , the demand for Milo in Malaysia and Pakistan is different. In Malaysia,
people demand more for Milo, therefore, when the price of Milo
increase, the quantity demanded will not change a lot, whereas, in
Pakistan, the demand of Milo lesser, therefore, when the price of Milo
increase, people will tend to change to other drinks like coffee

36. NEGOTIATING MARGINS
 In certain market customer expects a price reduction in some
products. Competitive discounts, fast payment discounts an annual
volume bonus and other promotional allowances come under this
category.
 Nestle and its negotiations with its suppliers made them to gain a
good reasonable margin in all its goods.

37. Price flexibility
 Flexible prices are the key factor of success of
nestle in global markets
 For example:
MilkPak being the largest selling brand is
being sold out at the same price as that of other
low quality products while maintaining its quality.

38. Conclusion
 Tie-in sales is the best pricing strategy to be used by
Nestle in order to maximize the profits of the firm. This is
because this strategy in which the purchase of one
product is made the condition of sales for another
product.

39. Place(Distribution)
NESTLÉ'S EXCELLENCE IN PROVIDING CONVENIENCE TO
CUSTOMERS

40. Place
“Product distribution (or place) is one of the four elements of the marketing
mix. Distribution is the process of making a product or service available for
use or consumption by a consumer or business user, using direct means, or
using indirect means with intermediaries.”
Just like Nestlé's eminence in other 3 marketing Ps, she has excellent means
to distribute products within Pakistan, distribute its global products to
Pakistan and across the globe.

41. Nestle corporation uses wide-variety of effective and efficient
DISTRIBUTION MIXES and SUPPLY CHAIN to make their
products available to their customers which includes the
use of;
Warehouses & Distribution centres
fair-priced shops
wholesalers
retailers
small grocery shops

42. Warehouses & Distribution
Centres
Nestlé Corporation have large and specialised distribution
centres and warehouses where it stores all other food
items and store Nestlé Milk Pak and Nestlé yogurt in
chilled environment from where they transported in chilled
containers to maintain the hygiene standards

43. Fair Price Shops ,Wholesaler
and Retailer
Nestle Corporation dispatch their products from distribution centres to its fair
price shops near or inside its factories where it sell its products at relatively
lower price compared with its price in market.
Nestle corporation sell its products by giving them large bulk discounts and
then send its products directly from its warehouses or distribution centres to
the wholesale corporate customers which such as Hyperstar, Metro in Pakistan,
Tesco and ASDA in UK and Walmart in USA
Despite the fact that nestle is a huge multinational giant it also sell its products
directly to small retailers, grocery and sometimes to even individual customers
depending on special orders.

44. Inventory Management
Nestle Corporation have a very strong inventory management of its raw
materials, goods in progress and finished good. According to Musa Bin Nisar
Nestle Pakistan’s brand manager Nestle have the record in its system of each
and every product its produced, where it is currently and how much time it
took to reach the final customer and much more…………

45. 
 Promotion refers to raising customer awareness of a product or brand,
generating sales, and creating brand loyalty. It is one of the four basic
elements of the marketing mix.
PROMOTION (4th P of marketing
mix)

46. 
 Advertisement of a product
 Increase selling
 Increase Public relations
 Brand loyalty
 Brand image
 Awareness of a product
Purposes of Promotion

47. 
 Brand and sales promotion
The brand and sales promotion
teams of the North Zone had put
together an effective outdoor
campaign. As we all know that in
summers there are large number
of people who visits the Northern
area especially Muree Hills, For
those people Nestle is doing an
effective campaign for promotion
of his water.
PROMOTION of Nestle

48. The road to Murree was
overprovided with billboards, shop
boards, brand umbrellas, stands, wall
paintings, cross road signs, product
sampling and sticker sampling.
The activity created a remarkable
impact and the visitors were
impressed, And in this way Nestle is
doing an effective promotion for his
water.
NESTLE PURE LIFE

49. 
Nestle has a team of vendors, who are dressed in branded T-shirts, caps
and jackets, sold chilled 0.5 liter bottles to travelling customers on all major
intersections. The brand got great mileage out of this innovative idea of
personal selling in terms of brand awareness, paid trial, image as well as
real sales.
Promotion of Nestle through
Personal selling

50. 
 Billboards
 Shops boards
 Brand umbrellas
 Stands
 Wall paintings
 Cross road signs
 Product sampling
 Sticker sampling
Promotion of Nestle through
Advertisement

51. As far as the public relations are concerned, the organization
releases an annual report which includes the company's financial
statements along with the sales of all product categories. The
annual report is mainly aimed at the stockholders. However,
another very important form of public relations are the
newsletters and bi-monthly magazines issued by the
organization. A huge amount of information is found in these
regarding the products and their promotion.
Promotion of Nestle through Public
relations

52. 
The Re-launching of MILKPAK
 In 2008 when all the Milk
industries faced huge loses,
Nestle also faced a huge loss in
the form of MILKPAK flop
performance. Then Nestle re-
launched his milk in new
packaging design and promote
its milk product through
packaging.
Promotion of Nestle through
Packaging of Products

53. 
ATV campaign was developed to
focus on key message e.g.,
Nestlé is behind MILKPAK, assurance
is purity through Nestle and Nestle
being No.1 Food Company with 130
years of milk experience.
The campaign was supported through
temporary hoarding, street banners, and
shop banners, posters, buntings and
trade letters.
The Re-launching of
MILKPAK and ATV campaign

54. 
Nestle Invite housewives to send new innovative recipes made from
Maggi. Organizing contests, games, industrial visit for school kids.
And by these different ways nestle promote his products.
Promotion of Nestle by
other ways

55. 
Q: What are the main channels adopted for promotion?
A: TV, News papers, magazines and doctors.
Q: What is the advertisement budget of the company?
A: It is preplanned by the start of financial year. It is kept secret
by the company.
Q: Who are the sponsors of the company?
A: Nestle does not have any sponsors.
Question and answer

56. 
Q: Does Nestle have any brand ambassador?
A: No, Nestle has no brand ambassador.
Q: What is the share of promotion in overall project?
A: It varies every year. Usually it is 40% of the product.
PROMOTION (4P’s)

58. Marketing Strategies
 The Strategic plan provides the company’s overall mission
and objective to achieve company’s views. Through market
segmentation, targeting and positioning the company takes
decisions which customers it will provide and how.

59. Basic Strategy of Nestlé in Pakistan
 That’s why they are doing their activities in main cities of
Pakistan. They want to put babies and children healthy and
ensure their sufficient nutrition. They also target new age
generation to build a strong relationship by providing various
eatable products. Nestlé ensures there is no compromise on
quality, no matter how much the cost is.

60. Market Segmentation
“Divide a market into smaller groups with distinct needs, characteristics or
behaviors that might require separate marketing strategies or mixes “

61. Market Segmentation(Cont…)
 Bases for Segmentation:
Users markets can be divided on the basis of
these customer characteristics.
1. Geographically
2. Demographically
3. Psychographically
4. Behaviorally

62. Geographic segmentation
“Divide a market into different geographical units such as
nations,states,regions,countries,cities or neighborhoods”
Nestlé Pakistan segmented its market for Nescafe Ice
depends on the geographic weather: warm hot and cold.

63. Demographic segmentation
“Divide the market into groups based on variables such
as age ,gender, family
size,income,occupation,education,religion, race, generation
and nationality”

64. Demographic
segmentation(cont…)
Nestlé segmented market area for its main products based on the
generation. For the products Cerelac, Lectogen, Koko Krunch, Nido,
Nestlé divided the market area segment for new born baby and
children of different ages.
 Nido
 Cerelac
 Nesquick, Koko Krunch
 Lactogen

65. Psychographic segmentation
“Divides buyer into different groups based on social class ,
lifestyle, or personality characteristics”
 Nestlé Pakistan provides KIT KAT these people who
really want to taste and enjoy chocolate. Nestlé Nescafe
3 in 1 is for specially those users and customers who are
really engaged in activity and do not have more time.

66. Behavioral segmentation
“Divides buyer into groups based on their knowledge, attitude, or
response to product”
 Based on benefits Nestlé Pakistan segmented their market in an
efficient way. So they make available Cerelac for those customers
who want more profit from the product. Cerelac includes a high
nutrition for baby’s whose age is less than 1 year. Two very
important things rice and milk remain added in cerelac

67. TARGETING
 Target marketing:
“A set of buyer sharing common needs or
characteristics that company needs to
serve”

68. Target marketing:
 In this case, we found out Nestle focuses on
urban areas rather than rural areas. The
consumption of Nestle products is often in
cities as compared to villages. This may be
due to income and educational level.

69. Target marketing:
 Nestle distributes their target market because of
having unique requirements and wants. Nestle
Pakistan selected their target market into two market
coverage policy:
1) Differentiated marketing
2) Concentrated marketing

70. Target marketing:
 Differentiated marketing:
Nestle choose the differentiated marketing. He
provides different product for many segments based on
different ages, occupation, season and climate of Pakistan.
 For example:
 Nescafe 3 in 1
 Koko Krunch, Nesquick
 Nescafe Ice

71. Target marketing:
 Concentrated marketing:
Through concentrated marketing, Nestlé earned
a strong market position because of its very good
knowledge of consumer requirement.
 For example:
Nestlé offers nutritious milk powder. Lectogen 1
for babies whose age is less than 7 months and lectogen 3
for babies whose age is not more than 12month. It also make
available baby nutrition cerelac for baby more than 12
months.

72. Target marketing(cont….)
 For segmentation by income level
Nestle has been targeting on those consumer who earn middle income
and high income. People will purchase healthy and nutritious food and
beverages when they have enough monetary resources to back up them.

73. Target marketing(cont….)
 For segmentation by educational level
Nestle tends to pay more attention to those consumers who has an
education background. They will be more concern of their health and they
will do more to maintain it.

74. Target marketing(cont….)
 Form personality segmentation
Nestle is targeting consumers who are more outgoing and outdoorsy. It is
because they require more energy and nutrition that they have lost during
their activities. By adapting nutritional input to physical needs, they can get
the most from their body

75. Target marketing(cont….)
 From the social class and lifestyle segments
Nestle is targeting consumers who are belong to the higher social classes.
They have high purchasing power so that they can afford more luxuries
such as Nestle’s products

76. POSITIONING
“POSITIONING REFERS TO THE PLACE AN OFFERING
OCCUPIES IN CONSUMER’S MINDS ON IMPORTANT
ATTRIBUTES RELATIVES TO COMPETITIVE PRODUCTS.’’

77. DIFFERENTIATION
Distinguishing a product or service from others,
to make it more attractive to a particular target
market. Nestle uses the following techniques:
 Market differentiation
 Product differentiation
 Channel differentiation
 Image differentiation
 People differentiation
 Service differentiation

78. MARKET DIFFERENTIATION
 provides different product for many segments based on different
ages, occupation, season and climate of Pakistan.

79. PRODUCT DIFFERENTIATION
 Nestle brings a many of product for target customers.

80. CHANNEL DIFFERENTIATION
 Nestle reach their products to the customers through their
experienced market salesman and transportation.

81. IMAGE DIFFERENTIATION
 Nestlé’s logo is totally different from others competitors that are
greatly choices by its users.

82. PEOPLE DIFFERENTIATION
 The company has a large number of manpower’s that are highly
educated and trained.

83. SERVICE DIFFERENTIATION
 Nestle provide 24x7 hot line service. High quality checking is
providing for its customer.

84. SWOT ANALYSIS OF NESTLE

85. SWOT ANALYSIS
 SWOT stands for Strengths, Weaknesses, Opportunities and
Threats. This evaluates the external and internal environment
affecting the company. The internal components of the company are
explored through the Strength and Weakness aspect, while the
external components are summarized through the Opportunities and
Threats aspect.

86. STRENGTHS
Let’s start with the first step to SWOT analysis of Nestle, which is
determining the brand’s strengths:
 Its annual earnings are more than $1 billion dollars from its 29
operating brands and with 8000 products under the belt, so its not
easy for any corporation to compete against nestle.
 Nestle provides quality products for the sake of their customer
satisfaction.
 The multinational company is successfully operating in more than
100 countries and has an unmatchable distribution channel around
the world.

87. STRENGTHS
 To maintain its leading position in the market, nestle has not only
been forming partnerships with other leading companies, but is also
acquiring several others, resulting in remarkable growth.
 Nestle is a reputable brand and is well-known almost everywhere ,
as its products are used by millions of people each day.
 Nestle has qualified workforce, skilled labor, provides large number
of offerings and friendly environment.

88. STRENGTHS
 Nestle has one of the most advanced R&D capabilities through
which they introduce new products every year giving the brand a
huge advantage over its competitors. Nestle invested more than $2
billion in R&D in 2011.
 It is a large scale organization, with abundant funds and has the
capability of acquiring weaker firms by throwing them out of
competition.

89. WEAKNESSES
The next step to SWOT analysis of Nestle is its weaknesses:
 Perhaps the biggest weakness is their inability to provide
consistency in the quality of their food products, as Nestle
often has to call in many products due to poor supplies or
contamination, hurting the image of the company.
 Nestle has faced a lot of criticism on a variety of issues, such
as the horsemeat scandal and child labor, which it has not been
able to avert.

90. WEAKNESSES
 The company has announced and is involved in many programs that
aim to make company more eco-friendly and improving the working
conditions of its suppliers. Still, Nestlé receives a lot criticism over
the effectiveness of its programs.
 It is a main weakness of MilkPak that there are different companies
of milk but the name of nestle MilkPak is always stand in the last
because of low advertising and marketing opportunities.

91. WEAKNESSES
 Due to the advanced technologies and a long list of formalities,
Nestle has to bear a lot of cost (upto 40% more than its local
competitors).
 Feasibility of new products needs to be analyzed, e.g. Nestea was
launched some years back but it failed because no customer demand
for it existed.

92. OPPORTUNITIES
Starting with the externals to SWOT analysis of
Nestle, let’s take a look at the opportunities the
company has:
 The trend of buying and consuming only healthy
food products is a major shift in consumer tastes
and opens up an immense market for companies.
Currently, Nestlé tries to introduce more healthy
food products in response to the trend.
 Many new startups are forming and introducing
new products for well-being or revolutionizing the
ways those products are made. Startups are cheap
and can easily be acquired. Nestlé is focusing on
providing more well-being products and this is a
great opportunity to expand its portfolio.

93. OPPORTUNITIES
 Nestle is already engaged in partnerships with a number of major
companies, such as Coca-Cola, and several others, opening doors of
opportunities for the company.
 There are substantial growth opportunities considering the average
yield of Pakistani animals at only 1,100 liters/annum as compared to
6,000 liters/annum for animals in Europe and USA.

94. THREATS
And finally, the final part to completing SWOT analysis of Nestle is the
threats:
 The brand’s irresponsibility to run thorough quality assurance on its
products resulted in providing contaminated food and other products
on the market, which can hurt the reputation of the company and
lead to losses.
 Nestle is the leading supplier of chocolate and cocoa products. The
increasing trend towards healthy eating will result in major declines
in demand.
 Inflation is getting higher and higher so the purchasing power of the
people is decreasing day by day.

95. THREATS
 Economic slowdown can reduce demand. Two main competitors
Haleeb and Olpers are main threat for MilkPak especially the Olpers
is growing very fast.
 The growing number of supermarkets and other retailers are
introducing their own label products that cost less and can easily
compete with Nestlé’s product portfolio.
 The demand for raw food is expected to increase as population and
economy grows. As a result, Nestle will have to face higher costs
and tighter margins.

96. Conclusion
 So, after properly going through this SWOT analysis, we
have come to this conclusion that Nestle, without a doubt
is one of the most successful food brands out there.
However, they can maximize their potential by dealing
with the criticisms that have become synonymous with the
brand itself.

97. overview
 Competitor analysis
 Purposes
 Framework
 Competitor analysis of Nestle

98. Competitor analysis.
 Competitor analysis in marketing and strategic management, is an
assessment of the strengths and weaknesses of current and potential
competitors. The analysis provides both an offensive and defensive
strategic context to identify opportunities and threats.

99. Primary activities
 Competitor analysis has two primary activities:
1. Obtaining information about important competitors.
2. Using this information to predict competitor behavior.

100. Purposes of Competitor Analysis
 Purpose:
 Identify top competition
 Determine strengths/weaknesses of competition
 Develop strategies based on analysis to increase success

101. Competitor analysis framework
 Michael porter presented a framework for analyzing competitors. This framework is
based on the following four key aspects of a competitor.
 Competitors objectives
 Competitors assumptions
 Competitors strategy
 Competitors capabilities

103. Objectives Assumptions
Competitor’s Objectives & Assumptions
 Growth rate
 Market share
 Technology
 Finance
 Organizational Structure
 Past experience with a product
 Industry Trends
 Regional Factors

104. Strategies Capabilities & Resources
Competitor’s Strategies,
Capabilities & Resources
 What is the competitor currently
doing?
 Number of workers
 Current products and services
 Location of company
 Type of customers
 Advertising or marketing campaigns
 What is the competitor
capable of?
 What is it not capable of?

105. Competitor analysis of Nestle
 Competitor of Nestle in water industry
Kenley
Aquafina
Sufi
Gourmet

106. Analysis of Aquafina Water
 Weakness
less Taste
Also removes good bacteria that
has to be added afterwards
No presence in rural areas
• Strength
Brand name
Excellent
distribution and
availability
Environment
friendly plastic
bottle packaging
cheaper

107. Competitors analysis of Nestle
 Competitors of Nestle in milk industry
Haleeb Ltd.
Engro food Ltd.
Shezan Ltd.

108. Analysis of Engro Food Ltd.
Weakness
Packaging
Huge costs of Milk
collections and
distribution
Narrow brand
portfolio
• Strength
Personal relations
with farmers
Positive response
from customers
Strong customer&
product research
good reputation