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  • 1. TABLE OFCONTENTS: MISSION STATEMENT STORY OF NESTLE DYNAMIC EXPANSION BRANDS OF NESTLE BOARD OF DIRECTORS AUDIT COMMITTEE NESTLE’S OBJECTIVES MARKETING AND SALES MARKET POSITION NESTLE EVERYDAY RESEARCH AND DEVELOPMENT MARKETING MIX PROBLEMS FACED BY NESTLE RECOMMENDATIONS SWOT ANALYSIS FUTURE OF NESTLENESTLE STORY:Nestle Pakistan is a subsidiary of nestle S.A a company of Swiss origin headquarteredin Vevey, Switzerland. It is a foodprocessing company, registered on the Karachi andLahorestock exchanges. For 5 years in a row, the company has won a place among thetop 25 companies of the Karachi stockexchange.Headquartered in Lahore the companyoperates 5 productionfacilities. Two of its factories in Sheikhupura and Kabirwalaaremulti products factories. One factory in Islamabad and 2in Karachi produce bottledwater. Through its effectivemarketing and vast sales and distribution networkthroughoutthe country, it ensures that its products aremade available to consumers whenever,wherever andhowever.In the line with Nestlé’s global philosophy, Nestle Pakistanisproud of its commitment to excellence in product and safetyand quality and providingvalue and services to itsconsumers. On the social front it is very responsible whenitcomes to environmentally sound business practices andcorporate socialresponsibility.Nestle Pakistan operates in many ways but people productsand brandsare the main flag bearers of the company’simage.INTRODUCTION TONESTLE: Today, Nestle is the world leading Food Company.Nestle headquarters is inSwitzerland. Its international R&Dnetwork supports the products made in more than500factories in 86 countries. The Nestle factories are operatingin the region of:
  • 2. 1 .Africa2 .America3 . A s i a4 .Europe5 .OceaniaBeing a company dedicated to food from thebeginning, Nestle remains sensitive toculinary and eatinghabits, and responds to specific nutritional problems, whilstalsosetting and matching new trends such as growing out-of-home consumption and caringabout the well being of itsconsumers.MEANING OF NESTLE:Henri Nestlé endowed his company with the symbol derivedfrom his name. His familycoat of arms, the nest with amother birdprotecting her young, became the Companyslogo and a symbol of theCompanys careand attitude tolife-long nutrition. The Nestlé nest represents thenourishment, securityand sense of family that are soessential to life.HISTORY OF NESTLE:1866 -1905 In the 1860s Henri Nestlé, a pharmacist, developed a foodfor babies who were unableto breastfeed. His first successwas a premature infant who could not tolerate hismothers milk or any of the usual substitutes. People quicklyrecognized the value of thenew product, after Nestlés newformula saved the childs life, and soon, Farine LactéeHenriNestlé was being sold in much of Europe.1905-1918 In 1905 Nestlé merged with the Anglo-Swiss Condensed MilkCompany. By the early1900s, the company was operatingfactories in the United States, Britain, Germany andSpain.World War I created new demand for dairy products in theform of governmentcontracts. By the end of the war,Nestlés production had more than doubled.1918 -1938 After the war Government contracts dried up and consumersswitched back to freshmilk. However, Nestlés managementresponded quickly, streamlining operations andreducingdebt. The 1920s saw Nestlés first expansion into newproducts, with chocolatethe Companys second mostimportant activity1938 -1944 Nestlé felt the effects of World War II immediately. Profitsdropped from $20 millionin 1938 to $6 million in 1939.Factories were established in developingcountries,particularly Latin America. Ironically, the war helped with theintroduction of theCompanys newest product, Nescafe,which was a staple drink of the US military.Nestlésproduction and sales rose in the wartime economy.1944 -1975
  • 3. The end of World War II was the beginning of a dynamicphase for Nestlé. Growthaccelerated and companies wereacquired. In 1947 came the merger with Magiseasoningsand soups. Crosse & Blackwell followed in 1950, as didFindus (1963),Libbys (1971) and Stouffers (1973).Diversification came with a shareholding in LOréalin 1974.1975 -1981 Nestlés growth in the developing world partially offset aslowdown in the Companystraditional markets. Nestlé madeits second venture outside the food industry byacquiringAlcon Laboratories Inc...1981 -1996 Nestlé divested a number of businesses1980 / 1984. In 1984,Nestlés improved bottomline allowed the Company tolaunch a new round of acquisitions, the mostimportantbeing American food giant Carnation.1996+ The first half of the 1990s proved to be favorable for Nestlé:trade barriers crumbledand world markets developed intomore or less integrated trading areas. Since 1996there havebeen acquisitions including San Pellegrino (1997), SpillersPet foods (1998)and Ralston Purina (2002). There were twomajor acquisitions in North America, both in2002: in July,Nestlé merged its U.S. ice cream business into Dreyers, andin August, aUSD 2.6bn acquisition was announced of Chef America, Inc.Nestlé’s Vision:“At Nestle, we believe that research can help us tomake better food,so that people live a better life.”Mission Statement:“Nestle is dedicated to providing the bestfoods to people throughouttheir day,throughout their lives, throughout the world.With ourunique experience of anticipatingconsumers needs and creatingsolutions,Nestle contributes to your well-being andenhances yourquality of life.”Nestle is not only Switzerlands largest industrial company,but it is also the WorldsLargest Food Company. The missionstatement emphasizes on the fact that Nestleproducts areavailable in nearly every country around the world.Wherever one may live,only Nestle can provide the best andmost reliable food and beverage products to meethis/herneeds throughout the day, throughout the life. Especially,people on the movewant to be able to find good foodwherever they are, whatever the time of day. They areoftenreassured that they will find well-known brands out of home. This statement alsoreflects the image of high qualityproducts that Nestle offers. Nestle has the advantagethat itoffers caterers, fast food chains and other restaurants acomplete range of highquality ingredients, base productsand meal components, as well as leading consumerbrandssuch as Nescafe. Quality is the cornerstone of the success of the Nestle
  • 4. Company. Everyday, millions of people all overthe world show their trust in the companyby choosingNestle products. This trust comes from a quality image thathas been built up for overa century. Therefore, the qualityof the products ultimately enhances the quality oftheconsumer’s life.In addition, the mission statement declares that Nestlehas the abilityto anticipate “…consumer’s needs and createsolutions….” Nestle has proven this abilitya number of timesby introducing new products that were requiredbyconsumers. Especially, the launch of Nestle Pure Life inPakistan proves theaccuracy of this fact. In Pakistan, therewas a need for safe and healthy drinking waterand Nestleresponded to this consumer need by introducing Nestle PureLife.Finally, it isquite evident that the organization hasactually implemented its mission statement in thebusinesspractices that it carries out. Also, the mission statement hasbeen an importantguideline for any SBU that the firm hasstarted and this is portrayed by the success thateach SBU of Nestle enjoys.How Nestle DefineMarketing:Building customer relationship based on customer value ands a t i s f a c t i o n i sat the very heart of m odern marketing.Thet w o f o l d g o a l s o f N e s t l e m a r k e t i n g i s t o at t r a c t n e w customers by providing superior value and to keep andgrowt h e c u r r e n t c u s t o m e r s b y d e l i v e r i n g s a t i s f a c t i o n . N e s t l e defines marketing as:“ A s o c i a l a n d m a n a g e r i a l process where by individual &groups obtains goodfood a n d g o o d l i f e t h r o u g h creatinga n d e x c h a n g i n g products and values.”N e s t l é ’ s B u s i n e s s Principle:•Nestlés business objective is to manufacture andmarket the Companys products insuch a way as tocreate value that can be sustained over the long termfor shareholders,employees, consumers, and businesspartners.•Nestlé does not favor short-term profit at the expenseof successful long-term businessdevelopment.•Nestlé recognizes that its consumers have a sincereand legitimate interest in thebehavior, beliefs andactions of the Company behind brands in which theyplace theirtrust and that without its consumers theCompany would not exist.•
  • 5. Nestlé believes that, as a general rule, legislation is themost effective safeguard ofresponsible conduct,although in certain areas, additional guidance to staff inthe form of voluntary business principles is beneficial inorder to ensure that the higheststandards are metthroughout the organization.•Nestlé is conscious of the fact that the success of acorporation is a reflection of theprofessionalism,conduct and the responsible attitude of itsmanagement and employees.Therefore recruitment of the right people and ongoing training and developmentarecrucial.•Nestlé continues to maintain its commitment to followand respect all applicable locallaws in each of itsmarketsDYNAMICEXPANSION : The history of Nestle includes the development of manyd i f f e r e n t p r o d u c t s a sw e l l a s a c q u i s i t i o n s , m e r g e r s a n d t h e purchasing of shares in companies,mainly abroad. Over thec o u r s e o f t h e y e a r s , t h i s e n a b l e d i t t o b r o a d e ni t s r a n g e o f products and diversify its operations, while at the sametimes t r e n g t h e n i n g t h e e c o n o m i c f o u n d a t i o n s o f t h e c o m p a n y . Amongstthe most important acquisitions were CarnationinL o s A n g e l e s ( m i l k , c u l i n a r y p r o d u c t s a n d p e t f o o d s ) a n d m o r er e c e n t l y R o w t r e e M a c k i n t o s h i n Y o r k ( c h o c o l a t e a n d confectionery),Biotin in Perigee (pasta) as well as PerrierinF r a n c e ( m i n e r a l w a t e r ) . N e s t l e , w h i c h d o e s 9 8 % o f itsbusiness outside Switzerland, also has interests in non -foods e c t o r s , i nc o s m e t i c s ( a l a r g e s h a r e h o l d i n g i n L O r e a l ) a n d ophthalmic products(acquisition of Alcon Laboratories Inc.) while continuing to give priority to foodproducts.Marketing Mix:M a r k e t i n g M i x i s d e f i n e d a s a s e t o f c o n t r o l l a b l e t a c t i c a l marketing tools that firm blends to produce the response it w a n t s i n t h e t a r g e tmarket. The marketing mix consists of every thing the firm can do toinfluence the demand for itsproducts. The many possi bilities can bec o l l e c t e d i n t o f o u r groups of variables known as the four Ps that are as follows:
  • 6. 1- PRODUCT:Product stands for goods and services that the companyo f f e rs t o t a r g e t m a r k e t . N e s t l é k i t K a t i s i n f o u r s i z e s including K.K Chunky, while Polo is in three sizes. The shapeand the color of theKit Kat and Polo are quite attractive fort h e c u s t o m e r s . T h e l a b e l i n g ,packaging of the Kit KatandP o l o i n c l u d e s t h e N e s t l é b r a n d a n d l o g o . T h e p a c k a g in g includes an expiry date and time along with amanufactured a t e . S e c o n d p a r t o f l a b e l i n g i n c l u d e s t h eq u a n t i t y o f product in grams along with ingredients and cont e n t s o f chocolates and candies2- PRICE: T h e a m o u n t o f m o n e y c h a r g e d f o r a p r o d u c t o r s e r v i c e , o r sums of thevalues that consumers exchange for thebenefitso f h a v i n g o r u s i n g t h e p r o d u c t o r s e r v i c e s . T h e p r i ce o f Nestlé Kit Kat and Polo varies increases with the increase in its size.3- PLACING:
  • 7. Placing stands for companys activities that make th e product available to the target consumer. Nestlédistributioni s u s i n g t h e d i r e c t d i s t r i b u t i o n c h a nn e l t o s u p p l y confectionary products weekly to the retailers.4- PROMOTION:Producing a quality product, pricing it attractively andmaking it available for the target consumer is not the onlyproblemcompanies need to solve. Modern era is the eraof c o m m u n i c a t i o n w i t h c u s t o m e r , a s s u r i n g c u st o m e r satisfaction, demands for personal and non-personalc o m m u n i c a t i o n w i t h t h e t a r g e t c u s t o me r t o b u i l d a relationship with them. In an area-storming activity,givingo u t p r o d u c t s f r e e , g i f t h a m p e r s , a t t r a c t s n e w c u s t o m e r s ; kites depending on the season (for existing andp o t e n t i a l customers) are given. The basic purpose is to exploret h e area that is being unexposed and to bring awareness in thepeople.Questionnaire:PRODUCT:Q: When was Nestle Instant Milk launched in the market?A: Nestle first launched its powder milk in the market in2003 and then came the liquidpowder.Q:W hat are the specific features of the product that makesit different from other similarproducts present in themarket?A: Nestle has introduced the milk powder which outshinedothers because of its greattaste, refrigeration, ready todrink, less volume, more stable shelf life.Q:Is the product manufactured locally or imported?A:The entire production of the Nestle Everyday is carriedout in Pakistan at Sheikhupuraand Kabianwala.Q: What is the role of Research and Developmentdepartment in the development of theproduct?A: At Nestle the Research and Development department iscalled as the “APPLICATIONGROUP”. No other companymatches the R&D presence of Nestle. No othercompanydedicates so many human and financial resources to R&D asNestle.
  • 8. Q:Is the technology in making the products also local?A: No the technology is imported and is latestQ:Did Nestle made any changes in the product or itsmanufacturing process since itslaunch?A:Yes, the factory mil powders spray drying capacity wasdoubled in 1999 withcommissioning of new evaporator.Q:When Nestle launched the product, do its sales excel orfell short of the company salestargets?A:the actual target is a company’s secret that will not bedisclosed. But we received anoverwhelming acceptance andliking of the product.Q: Is Nestle instant milk good for health; is it according tointernational healthstandards?A: Over many years company’s primary concern has been toimprove thequality and volume of milk for UHT processingand other milk based products.Q: Whatis the target market of product?A: The target market of the product is definitelyhe teadrinkers who have a choice and capacity for the best taste.Q: Did the companyever have some problems with theproduct?A: There was a problem of segmentation butit was quicklytaken into notice and the problem was readily removed.Q: Did the company have any special concept behindlaunching the product?A: Itis designed to be used in general but it is popularmostly in offices and cafés for teapurposes.Q: Did Nestle receive any complaints about the productever?A: yes, butnow the error rate has been reduced to zero.2004 --------------------------- 3complaints2005 --------------------------- 6 complaints2006 --------------------------- 4 complaints2007 ---------------------------- 2 complaintsQ: What is the current positionof the product in the market?A: Well the product is matchless in quality and hasnomatch. It has a sufficient name and place in the market.Q: Do the companydonate any money from its productsales?A: On the basis of profit margin Nestleseldom makedonations o non- profit organizations and charitableinstitutionsQ: How do you make sure that the cows which are milkedare disinfected?Nestle has itsown diary farms from which we collect milkand we have a special team of veterans whoregularly injectanimals against epidemic diseases.Q: what about the packing ofthe product, anyspecifications?A: Yes the Nestle logo is a must, other than thatthe productis made available in convenient sizes and attractive colors. The WHITE coloris the chief color to depict the color f milk.Q: Who are the major competitors
  • 9. of product?A: competitors are Olpers (Angro) and Halib milk.Q: Who are theindustrial consumers of Nestle Everydayinstant milk?A: PIA, MC-DONALDSand PEARL CONTINENTAL Pakistan.PRICE:Q: How do you set prices for your products?A: We set prices of our own becauseNestle is the trendsetter in the market.Q: What is the profit margin of the product?A: Theprofit margin is usually high because of the highquality of the product.Q: Does the pricesfluctuate or they remain stable?A: As the product is a diary product so its pricesgenerallytrend to fluctuate.Q: On what scale prices are fixed?A: The prices are fixed ona reasonable scale so thatmajority of public can afford.Q: Does competitorsprices bother your price policy?A: Not really, we set price of ourown.Q: Do you give price discounts?A: Not to the final consumers but it can beconsidered forthe he organizational consumers like Nestle has givendiscounts toPIA.Q: Do you have any price refund policy?A: No, we never return the paid money back. If the claim isvalid then we can replace theproducts.PROMOTION:Q: What are the channels adopted for promotion?A: TV, News papers, magazines anddoctors.Q: What is the advertisement budget of the company?A: It is preplanned b thestart of financial year. It is keptsecret b the company.Q: Who are the sponsors ofthe company?A: Nestle does not have any sponsors.Q: Does Nestle have any brandambassador?A: No, Nestle has no brand ambassador.Q: What is the share ofpromotion in overall project?A: It varies every year. Usually it is 40% of theproduct.Q: What is the nature of marketing for the product?A: The product is marketedaggressively in the marketQ: Is there any online promotion methods?A: In Pakistan, not really.PLACEMENT:Q:Whereare the outlets of product located?A:These are located all over in Pakistan regardless of bigand small cities.Q:Does the product is sold directly to the consumers or viadistributors?A:The product is not sold directly t the customers becauseof the extensive consumergroups.Q: What are the insurance policies of companies?A: Insurance policies aremaintained but they are highlyconfidential.Q: What is the warehousing facilitationof company?A: Nestle has its own warehouses for the storage of products as well as ithas also hired some warehouses.
  • 10. Q: What are the transportation modes of the product?A: Usually mode of transportationis road.Q: Did customers or suppliers ever complaint aboutshortage of Instant Milk inmarket?A: No we have a well defined system to ensure thatproducts at right time are atright place.Q: Does the company uses any E-distribution for theproduct?A: Due to thedistribution problems that a number of onlinefirms face Nestle until now has no plans forE – distribution.STRATEGIES FORCOMPETIOTIVEADVANTAGES:Every product on the shelf, every service and everycustomer contact helps to shape thisimage. A Nestlé brandname on a product is a promise to the customer that it issafe toconsume, that it complies with all regulations andthat it meets high standards of quality.Customers expect usto keep this promise every time. Under no circumstances willwecompromise on the safety of a product and every effort must be made to avoid hazardsto health.Likewise, compliance with all relevant laws and regulations isa must and is notnegotiable. People, equipment andinstruments are made available to ensure safetyandconformity of Nestlé products at all times. The effort is worthit. Companies with hugequality standards make fewermistakes, waste less time and money and aremoreproductive. They also make higher profits. Quality is ourmost successful product. Itis the key to our success, todayand tomorrow.The customer comes firstWe want to win and keep customers: distributors,supermarkets, hotels, shopkeepersand the final consumers. They have very different requirements. Tradecustomersexpect excellent service, correct information and timelydelivery. Consumersconsider taste, appearance and pricewhen they make their choice. Our task is tounderstand whatcustomers want and respond to their expectations rapidlyandeffectively. We serve various groups of consumers andthere is demand for products atdifferent levels of perceivedquality and price. All customers, however, expect valuefortheir money – good quality at a reasonable price. Whenoffering quality to customerswe also mean environmentalquality. Nestlé shares society’s concern for theenvironmentand is committed to environmentally sound businesspractices throughoutthe world.Customers are central to our business and we must alwaysrespect theirneeds and preferences.Quality is a competitiveadvantageWe live in a competitive world and must never forget thatour customers have a choice.If they are not reverent of quality and reduction cost. Success can never be takenforgranted. We must watch and learn from our competitors. If they do something better,we must improve our ownperformance. We can achieve competitive advantagethroughQuality.Quality is a joint effortOperating companies are fully responsible for maintainingagreed quality standards. Notonly Production units, but alsoMarketing, Purchasing, Distribution and Sales have avitalrole to play in providing quality to customers. This implies athorough knowledge ofthe products and services we offer.Quality units at different levels of the organization
  • 11. providespecific support, promote quality awareness, assumeguardianship and audit thesystem. Quality departmentsmonitor operations against agreed standards andmustintervene in case of non-conformity. Quality policy andprinciples, the mandatorystandards and the recommendedtools for implementation are laid down in the NestléQualitySystem that is applicable throughout the group. Furtherdirections are giventhrough instructions, norms andguidelines, often specific to a product. Ourbusinessproducts, such as raw material producers, packagingsuppliers, contractmanufacturers and distributors areexpected to share our concern for Quality. They toomust setup an adequate quality system, so as to meet ourrequirementsconsistently.Every function and department in the company as well asour businesspartners must share the quality efforts.Quality is made by peopleAdequate equipment, procedures and systems are needed tom a k e Q u a l i t y ; s o a r einvolved and dedicated people.Eacha n d e v e r y N e s t l é e m p l o y e e m u s t d o h i s b e s t t o p r o v id e quality products and services. Training and teamworkarec r u c i a l t o t h e s u c c e s s f u l i m p l e m e n t a t i o n o f h i g h q u a l i t y s t andards. Continuous training ensures that everyoneunderstands his tasks and has the necessary skills to carrythem out.Teamwork allows us to achieve results thatareg r e a t e r t h a n t h e s u m o f i n d i v i d u a l e f f o r t s . W e m o t i v a te employees by demonstrating management commitment to Quality, by settingchallenginggoalsa n d b y g i v i n g t h e m r e s p o n s i b i l i t y a n d r e c o g n i t i o n . I ti s through employee involvement that goals and targets can beachieved in theshortest time. Quality must be a way of life for everyone in the company.Quality is actionQuality is the result of deliberate action. It is theresponsibility of senior managers tocommunicate the qualityobjectives and to provide the resources necessary fortheirimplementation. It is then up to all employees to makeQuality happen throughoutthe company. Progress isfollowed by listening to our customers and by measuringourperformance. Shortcomings and mistakes must be analyzedand corrected. Problemsmust be anticipated and preventedbefore they occur. We also must identify and takeadvantageof opportunities. To stand still is to fall behind. So we muststrive forcontinuous improvement in every area. It is through many small improvements as wellas through majorbreakthroughs that we will achieve excellence.MARKETSEGMENTATION: To occupy a clear distinctive & desirable place related tocompeting mineral water in theminds of the targetcustomers Nestle Pure Life segments its market on twobases:•Geographic segmentation•
  • 12. Demographic segmentationGEOGRAPHICALSEGMENTATION: The Company segments its market geographically ondivisional basis. They divide eachdivision in different zonesand every distributor is restricted to sale its products only inhis own zone.E.g. Lahore isdivided into five zones like East, West, South,North, and South west.DEMOGRAPHICAL FACTOR:If we look nestle pure lifes demographic segmentation thanwe will find that our productis for every one. People fromany area, any culture, any age, any sex, any belief andanyincome will drink water. It is not any luxury item which isused by a specific people.Targeting:A specific demographic target market was not chosen forNestle Pure Life; instead thegoal was to develop a productto be used by consumers of all ages - from infants toseniors.It was intended as a family product especially for familiesliving in large, pollutedurban agglomerations thatexperience increasing difficulties finding safe, healthydrinkingwater. In fact, Nestle Pure Lifes 0.5 L bottle istargeting to be also an alternative to softdrinks. Basicallythe target market of nestle water is those areas where theconsumershaving more awareness about pure life. As thepeople in villages having less informationabout Nestle Pure Life. So targeting marketingdepends on the awareness of theconsumers.SELETING TARGET MARKETTarget Market StrategiesUndifferentiatedmass market.Differentiated Segmented Marketing.ConcentrateMarketing.Micro marketing or Individual Marketing.PRODUCT LIFECYCLE:If we look nestle pure life water in product life cycle than iteasy to judge that it is atintroduction stage. Because Nestleis the market pioneer and at this stage its profit isnegativeor low due to low sale and high distribution and promotionexpenses. Othermajor reason to be at introduction stage isunawareness in rural areas. The people arenot aware to thepure life water that’s why their sale is low. They can bringchange inproduct life cycle by effective promotion, byformulating new price strategies etcMARKETINGENVIRONMENTInternal environmentMicro environmentMacro environment
  • 13. Internal Environment:In Nestle Internal environment ensures•Employees are on side with the goals of anorganization.• They have direct impact on product quality,dependability and overall productivity.• They are internal market, which impact everydepartment within an organization; asatisfied internalmarket will be better able to satisfy external market. Nestle under thesupervision of top management runs thedepartments of finance, operations, accounting,sales andmarketing, research and development to achieve the goalsof organization.Micro Environment:In Nestle microenvironment includes:a)Suppliers:
  • 14. Suppliers provide the resources like labor and materialresources to produce goods andservices. They add tocustomer overall value delivery system.Labor supplies includehandling of•Quantity of labor•Quality of labor•Labor strikes•Labor relationsMaterial supplies deals with the•Quantity of material•Quality of material•Price of material•Stability of material inputs•Delivery delaysNestle efficiently handles the quality, quantity, price andstability of both material andlabor supplies. Managementmaps out the strategies for labor strikes, supplyshortagesand delays to avoid increasing the cost of production,which can badly affectsales in short run and customersatisfaction in long run.b) Marketing Intermediaries:It includes the firms that help the company to promote,sell and distribute its goods tofinal buyers.• The physical distribution firms determine the ways tostore and ship goods to reach theirdestination.•Marketing service agencies including marketingresearch firms, advertising agencies andmedia firmsare also hired to target and promote product to rightmarket.•Financial intermediaries like banks, insurancecompanies helps to finance transactionsand insureagainst risks associated with buying and selling of goods.Nestle works incoordination with marketingintermediaries to make its product Pure Life Wateravailableand visible to its valuable customers.c)Customers:Nestle deals with the reseller customers who buy theproduct Pure Life to resell at areasonable profit.
  • 15. Macro Environment:Macro environment include political, cultural, economicalfactors but as for as NestlePure Life Water is concern noneof above factors affect on it. Because it is not at luxuryitemthey are selling necessities of life which can never beaffected.BRANDSI.DAIRY PRODUCTSNESTLE MILKPAK UHT MILKLaunched in 1981, it has become synonymous withqualitym i l k . B a c k e d b y a v e r y s t r o n g b r a n d n a m e , a g g r e s si v e marketing and distribution plans, consistent quality andavai l a b i l i t y t h r o u g h o u t t h e y e a r , M I L K P A K U H T h a s b e e n extremelysuccessful. In September 1999, MILKPAK UHTmilkw a s l a u n c h e d a s N E S T L E M I L K P A K U H T M I L K .N E S T L E MILKPAK UHT MILK is available in three pack sizes of 1000, 500and 250 ml.MILKPAK BUTTERA continuous butter-making machine was commissioned atK a b i r w a l af a c t o r y i n t h e y e a r 2 0 0 0 t o p r o d u c e h i g h q u a l i t y cultured butter. Thisnew butter was an improvement uponthe earlier product and carries Nestlebranding that endorsesits superior quality. It has an excellent taste and aromaandis easy to spread.The new NESTLE BUTTER is available in twopack sizes of 200g and100g in new attractive packaging.NESTLE PLAIN YOGURTLaunched in November 2000 in Lahore, NESTLE PlainYogurti s t h e l a t e s t a d d i t i o n t o N e s t l e M i l k p a k s d a i r y f a m i l y . I t sunique Stay Fresh seal and a 21 -day shelf life givestheb r a n d a f o rm i d a b l e c o m p e t i t i v e a d v a n t a g e . T h e b r a n dprovides valuable access to future product launches inthec h i l l e d p r o d u c t c a t e g o r y t h r o u g h a d e d i c a t e d c h i ll e d distribution. In a very short time the brand has gaineda s u b s t a n t i a l m a r k e t s h a r e . T h r o u g h f u t u r e e x p a n s i o n i n t o markets other than Lahore and a strong marketing and saless u p p o r t , N E S T L E P l a i nY o g u r t w i l l u n d o u b t e d l y g r o w i n t o a strong brand and, in time, willachieve the status of marketleader.MILKPAK UHT CREAM
  • 16. MILKPAK UHT CREAM was introduced under the MILKPAK b r and in 1986. It is available in 200-m l p a c k s i z e i n a n attractive slim pack. The consumer trust in the brandnamea n d t h e p r o d u c t h a s e n s u r e d i t s d o m i n a n t s h a r e i n thec r e a m c a t e g o r y . M I L K P A K C R E A M w a s a l s o i n t r o d u c e d i n a n economical1000ml pack size in the year 2000. This SKU hasbeen developed for FoodServices to cover institutions usinglarge quantities of fresh cream.MILKPAK DESl GHEEMILKPAK DESI GHEE was introduced in 1986 in tin packaging. The packaging waslater changed to Tetra Pak. However, inline with the current market trend,MILKPAK DESI GHEEwasr e l a u n c h e d i n 1 K g t i n p a c k a g i n g i n t h e y e a r 2 0 0 0 . T h e p r o d u c t w a s a l s o i n t r o d u c e d i n 1 6 k g t i n p a c k i n g t o t a p t h e hugepotential of loose desi ghee.NESTLE EVERYDAY To target the massive potential offered by the tea -whitenings e g m e n t ,N E S T L E E V E R Y D A Y t e a w h i t e n e r w a s l a u n c h e d i n 1992. Supportedby aggressive marketing using multi-mediaa c t i v i t i e s , f o c u s e d d i s t r i b u t i o n w i t h s a m p l i n g d r i v e s a n d excellent consumer acceptance, the brand has shown stronggrowth and holds goodpromise for the future.NESTLE NIDONESTLE NIDO has been present in the Pakistan market sinceearly 70s andon account of the consumer confidence in itsquality it has become a pillar of Nestlé’s success. Localproduction commenced in1990 and within a short time thebranda c h i e v e d m a r k e t l e a d e r s t a t u s i n t h e f u l l c r e a m m i l k powder category.Made from very superior quality milk andw i t h t h e a d d i t i o n o f v i t a m i n s Aand D, NESTLE NIDO is thebest quality milk for growing children.The brand has nowl a u n c h e d a l o w u n i t p r i c e d S K U t h a to f f e r s h a l f a l i t e r o f quality milk at a very affordable price. NESTLENIDO is wellon its way to becoming a mega brand.II. CHOCOLATE DRINKSMILO POWDER T o p r o v i d e c o n v e n i e n c e t o c o n s u m e r s , N E S T L E M I L O w a s launched in its new 130gm. SKU in an attractive airtight jar i n F e b r u a r y 2 0 0 0 .T h i s w a s d o n e w i t h a v i e w t o b r i n g o u r packaging in line with theindustry practice of makingmilkf o r t i f i e r s a n d m o d i f i e r s a v a i l a b l e i n j a r s a n d t i n s a n d
  • 17. t o reverse the trend of consumer preference for imported MILO o r s i m i l a rp r o d u c t s o v e r l o c a l M I L O . C o n s u m e r r e s p o n s e t o the new initiative hasbeen very positive.MILO RTD To cater for consumer convenience, MILO RTD (ready tod r i nk ) w a s l a u n c h e d i n 1 9 9 5 a n d i s n o w a v a i l a b l e i n a n attractive 180ml slim pack. Popular with all age groups,e s p e c i a ll y a m o n g t h e g r o w i n g s e g m e n t o f n u t r i t i o n cons c i o u s c o n s u m e r s , i t i s a n e x c e l l e n t s u b s t i t u t e f o r c o l d drinks.III. COFFEENESCAFE CLASSICN E S C A F E , N e s t l é ’ s i n t e r n a t i o n a l f l a g s h i p b r a n d , i s l o c a l l y repacked and marketed in 2gm. and25gm. Sachet, 75gm.bottles and5 0 0 g m . S o f t p a c k s . T h e b r a n d e n j o y s a s p e c i a l position in the countryscoffee consuming segment.NESCAFE FROTHENESCAFE Frothe (Original), a premix in 18gm. single servesachet,was launched in January 2000. The product profilewas developed through consumer research and wa s accordingly offered as a sweet, creamy and foamycoffee.Encouraged by extremely good consumer response tot h i s c a p p u c c i n o s t y l e c o f f e e , F r e n c h V a n i l l a a n d M o c h a f l a v o r s wereintroduced in November to offer a wider choice andtoe n h a n c e t h e y o u n g a n d f a s h i o n a b l e i m a g e o f t h i s m i x e s category.NESCAFE FRAPPE T o p r o m o t e s u m m e r c o n s u m p t i o n o f c o f f e e a n d t o c h a n g e consumerperception that coffee is only a winterbeverage,N E S C A F E F r a p p e w a s l a u n c h e d i n J u n e 3 0 0 0 . T h is iced,creamy, read y-to -d r i n k c o f f e e i n 1 8 0 m l s l i m p a c k w a s positioned to appealt o t h e y o u t h a n d g a i n a s t r o n g s h a r e from other summer beverages. Thelaunch was extensivelysupported by promotional programs in major townsand theproduct is fast gaining in popularity.IV. FRUIT DRINKSFROSTA well-known brand, FROST was introduced in 1986 and hasthe largestshare of the countrywide market. Positioned as a
  • 18. cold drink and alternate to cola drinks, its strength lies in theconvenience attached to itsusage.NESTLE JUICESEncouraged by the consumer response to NESTLE ORANGE J U I C Et h a t w a s l a u n c h e d i n 1 9 9 6 , t h e c a t e g o r y o f N E S T L E juices wasexpanded with the introduction of Mango -Orangea n d M a n g o f l a v o r s i n t h e y e a r 2 0 0 0 . T h i s ha s f u r t h e r strengthened the position of Ne stle as leader in thev a l u e added/premium drinks market. Consumer to gain further.V. DIETETIC & INFANT PRODUCTSLACTOGENLACTOGEN 1 and LACTOGEN 2 are infant and follow-u p f o r m u l a e l a u n c h e d i n 1 9 9 1 a n d a r e a v a i l a b l e i n t w o s i z e s . Thebrands provide both affordability and quality.CERELACLaunched in 1989, CERELAC is the dominant player int h e g r o w i n g i n f a n t c e r e a l m a r k e t . A v a i l a b l e i n 5 f l a v o r s , t h e brand provides balanced nutrition to infants from 4 months onwardsNESTLE RICEAn affordable starter weaning cereal, NESTLE RICE offers theflexibility ofpreparation with a variety of meals. Gluten free,t h e b r a n d i sa v a i l a b l e i n 1 2 5 g m . p a c k s a n d i s s p e c i a l l y suited to theneeds of infants from 4 months onwards. It was launched in 1994.NESTLE WHEATNESTLE WHEAT is a wheat-based infant cereal without milk,for infants of 4months and above. It was launched in 1997 and is available in packs of 125 and250 gm.NESLACNESLAC is a growing-up milk, formulated specially for 1 to4y e a r o l d s . I t c o n t a i n s j u s t t h e r i g h t b a l a n c e o f p r o t e i n s, calcium, iron, vitamins and essential minerals in order toc a t e r t o t h e n u t r i t i o n a l n e e d s o f a g r o w i n g c h i l d d u r i n g t h i s special age.The product was launched in 1994.VI. CULINARY PRODUCTSMAGGI 2-MINUTE NOODLESFast to cook, good to eat - MAGGI 2-MINUTE NOODLESwerel a u n c h e d w i t h l o c a l p r o d u c t i o n i n 1 9 9 2 a n d i n d o i n gs o Nestle pioneered the category of instant noodles in Pakistan.MAGGI 2-MINUTENOODLES have special appeal for
  • 19. children,a r e f u n t o e a t a n d o f f e r a r a n g e o f i n t e r e s t i n g f l a v o r s , namely: Chicken, Masala, Chilly and Chatkhara.Affordablypriced and backed by focused marketing activities,M A G G I NOODLES have shown good progress in 2000.MAGGI COLD SAUCESNestle entered the Cold Sauces category in 1999 with the launch of MAGGIKetchup, MAGGI Mirch Maza and MAGGIKhatti Meethi - the first Imli sauce in Pakistan.Theinnovativet a s t e o f K h a t t i M e e t h i t o g e t h e r w i t h t h e m o r e t r a d i t i o na l tastes of Ketchup and Mirch Maza, were received well by theconsumers.O t h e r B r a n d s O f Nestle:Quality is an essential ingredient in all the Nestlé brands andalso Nestlé brandsmaintain nutritional balance in a fastpacew o r l d , t h a t i s w h y p e o p l e a r o u n d t h e g l o b e c h o o s e . Th e detail of the Nestlé brand is as follows:Baby foods (Nestlé Cerelac, NAN)Breakfast cereals (Nestlé Cereals)Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts,Everyday)Ice-creams (Movenpick, Dreyer’s)Chocolate confectionary (Kit Kat, Smarties, Toffo)Beverages (Nescafe, Milo, Nestlé juices)Food service (Nestlé Jumbo Bottle)Prepared foods (Maggi, Powered Soups)Bottled water ( Nestlé Pure Life, Nestlé Aquarral)Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alpo)Pharmaceuticals (Ophthalmic drugs, lens-care solutions& optical surgical Instruments)SWOT Analysis Of Nestle:
  • 20. STRENGTHS ----------------- TO BUILDONWEAKNESESS -----------------TO COVEONOPPORTUNITIES---------------TOCAPTURETHREATS ----------------------- TODEFEND ONSTRENGHTS: The greatest strength of nestle is that it includes a culturethat is team focused and anopen door policy. Nestle focuson collectivism and performance orientation attitudewhichencourages employees to work harder. Another thing is highlevel of market shareand that people all over the world trustand recognizes Nestle as a big brand name.Strength is thatpeople trust on Nestle. It looks at achieving higher volumesby renovatingexisting products and innovating newproducts. Strength is that they are low costoperators whichallow them to not only beat competition but also edgingahead operatingexcellence, innovation, renovation, productavailability and communication are majorstrengths.IT is an important aspect that people all around the worldare becoming moreconscious about health, that’s why theyprefer Nestle.• The only brand in the area maintaining itsqualitya n d t a s t e a n d h a v i n g t h e s a m e i m p a c t o n i t s customer•Economical•Pure Drinking Water in market (Free of chemicals)•Strong Brand NameWEAKNESESS:One major weakness of Nestle is that it is entering intomarkets that are already matureand can give a toughcompetition to new entrants. Nestle Plain Yogurt has provedto be aNestle weakness because it has been unable to makeits market place in USA. ButNestle by analyzing thesensitive areas can overcome its weaknesses.•Communication is weak•Lack of AwarenessOPPORTUNITIES:Nestle in Pakistan has a great opportunity for expanding itsmarkets because in Pakistanthere is a large ready market of food and beverages due to trends of eating andtheincreasing .I t also has opportunities largely in China andIndia as well. Throughproper marketing research Nestle cancash on to these opportunities.•C o n c e n t r a t i n g o n t h e s e a r e a s c a n increase sales•Increase in product line.Threats:
  • 21. Nestle is facing the threats by worldwide community due toits violation of internationalmarketing standards. Manyconferences and campaigns have been held againstNestlein this regard which can damage the name and trust of itscustomers. Anotherthreat is due to the increasing popularityof its competitor OLPERS in local andinternational markets.•Segments are being shared by competitors•U n c e r t a i n c o n d i t i o n s w i l l e f f e c t t h e s a l e s (diseases ofanimals)•Under cutting by competitors.RECOMMENDATIONS: T h e r e a r e f e w r e c o m m e n d a t i o n s t h a t a r e r e c o m m e n d e d i f the project isto be conducted again in future.Employees should be trained according to the changingstandards of theorganization.Company should conduct survey from time to time toaccording tow h i c h c h a n g e s c a n b e i n t r o d u c e d i n t h e organization to stay updated in themarket. They should introduce creativity into the work, so that the employees can dotheir work active mindedly.E m p l o y e e s s h o u l d b e g i v e n c o m p e n s a t i o n i n o r d e r t o keep them loyal.Employees should be more involved in decision makingto become moredifferentiated.Company should provide incentives to shop keepers.FUTURE OF NESTLE:Nestle is today the world’s largest food and beveragecompany with its mission toprovide healthier lifestyle. It haslaunched many products in Pakistan the majority ofwhichare popular and among the market leaders. Nestle isinstalling new plants andimporting latest technologies toimprove. Moreover, innovation is one of itsgreateststrengths so it has a bright future in Pakistan.REFERENCES:W e h a v e c o l l e c t e d a l l t h e d a t a f r o m t h e followingBy communicating with the employees