Principles of marketing project report on Nestle Pakistan ltd. made for MBA PAF KIET Karachi.

1. Principles of Marketing
Report Presentation
Presented to : Sir Mudassir Hussain
Presented by : Abdul Rahman Adeel
Student ID : 59311

2. Getting to know Nestle
• Found in 1877 by the merger of “Anglo Swiss condenced
milk company” and “Farine Lactée Henri Nestlé”.
• A baby food mixture was the core product of Nestle
initially.
• Rose it’s production and sales during the last years of
second world war.
• Acquired a number of companies during the 1900s.
• Acquired the ice cream manufacturing company dreyer in
2005 and became the largest ice cream manufacturer of
the world.
• Today Nestle is known as the leading food and beverages
organization over the world.
• Operates in 194 countries, has 447 factories and
employees over 333000 people over the world.
• Has the major share in world’s largest cosmetics company
L’Oreal.
• Was ranked # 1 in the world’s most profitable
organizations in 2011 by the Fortune Global 500.

3. Nestle in Pakistan
• Arrived in Pakistan by a joint venture with Milkpak in
1988.
• Acquired the company in 1992.
• Subsidiary of Nestle SA ltd. Vevey, Switzerland.
• Operates as a public limited company in Pakistan, listed in
Karachi and Lahore stock exchanges.
• Has corporate head office in Lahore.
• Corporate resident office in Karachi.
• Regional sales offices in 9 cities.
• Employess over 3500 individuals.
• 4 production facilities.
• Started operations for Afghanistan as well.
• Signed the water stewardship agreement with WWF-Pakistan.
• Engages with 190’000 farmers.
• Won awards from Karachi stock exchange and Pakistan
center of philantrophy for it’s remarkable progress and
social responsibility.

4. Management Committee

5. Offices and Factories

6. Mission and Vision Statement
Mission Statement:
“To positively enhance the quality of life of the people of
Pakistan by all that we do through our people, our brands
and products and our CSV activities.”

7. Mission and Vision Statement
Vision Statement:
“Nestlé’s global vision is to be the recognized leading
Nutrition, Health and Wellness Company. Nestlé Pakistan
subscribes fully to this vision of being the number one
Nutrition, Health, and
Wellness Company in Pakistan.
In particular, we envision to;
• Lead a dynamic, motivated and professional workforce
proud of our heritage and positive about the future.
• Meet the nutrition needs of consumers of all ages from
infancy to old age, from nutrition to pleasure, through an
innovative portfolio of branded food and beverage
products of the highest quality.
• Deliver shareholder value through profitable longterm
growth, while continuing to play a significant and
responsible role in the social, economic, and environmental
sectors of Pakistan.”

8. Product Portfolio
Ambient Dairy
•Nestle Milkpak
•Nestle Nido
•Nestle Milkpak
Cream
•Nestle Nido
•Nestle Everyday
•Nesvita
Chilled dairy
•Nestle Chilled Latte
•Nestle yogurt
•Nestle riwayati maza
•Nestle Actiplus
yogurt
•Nestle Milkpak
Yogurt
•Nestle zeera Rait
•Nestle Podina Raita
Beverages
•Nestle fruita vitals
•Nestle Nesfruita
Bottled Water
•Nestle Pure life
Culinary and food
•Maggi Noodles
•Maggi Umda MAza
Baby Food
•Nestle Cerelac
•Lactogen
•NAN
Breakfast
Cereals
•Nestle Coco
crunch
•Nestle Milo
Cereals
•Nestle Corn Flakes
•Nestle Fitnesse
Coffee
•Nescafe Classic
•Nescafe Gold
•Nescafe 3 in 1
Confectionery
•Nestle Crunch
•Nestle Kitkat

9. BCG Matrix

10. BCG Matrix (Market shares in percentage)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Milkpak Nestle
Pure life
Juices Noodles
Nestle
Competitors

11. Ansoff Matrix
Market Penetration (MP)
Nestle Fruita vitals
Nesfruita
Nesvita
Market Development (MD)
Product Development (PD)
Nestle Crunch
Related diversification
(Baby Food, Dairy,
Bottled water,
confectionery)
Diversification (Div)

12. PEST Analysis
Political
•Instable political
environment
•Fluctuation of taxes
Economical
•High Inflation rate
•Low per person
capital income
•Low growth rate of
economy
•Decreasing value of
money
Social
•Rich and unique
culture
•Exclusive trends and
beliefs
•Society’s ability to
adapt
Technological
•Advances in
telecommunication
technology
•Strong media
industry

13. SWOT Analysis
Strengths
• Brand Image
• Growing sales and profits
• Marketing expertise
• Trusted quality
• Product availability (Distribution Channel)
• Strong Research and development
• Socially responsible image
Weaknesses
• Higher prices
• External sources of raw material
Opportunities
• Increasing demand for healthier food
• Market ready to adapt new trends
• Absense of matching competition
• Possibility to introduce area specific stuff
Threats
• Uncertain economic conditions
• Increasing competition
• Food contamination
• Raising prices of raw material
• Unsure law and order situation

14. Market Segmentation
Milk products
Nestle Pure life
Nesle Fruita Vitals
Geographic Segmentation
Demogeaphic Segmentation
Family life cycle
Age
Occupation
Income
Gender
Nesfruita
Maggi Umda Maza
Maggi Noodles
Breakfast Cereals
Nestle Nido
Nestle Cerelac
Nescafe
Nestle Crunch
Kitkat

15. Targeting
Undifferentiated/
Mass Marketing
•Nestle Milk Pak
•Nestle Pure Life
•Nestle Fruita Vitals
Differentiated/
Segmented
Marketing
•Nesfruita Juices
•Chilled dairy products
•Nesvita
•Maggi Noodles
•Maggi Umda Maza
•Baby Food
•Breakfast Cereals
•Coffee
•Confectionery

16. Positioning
More Healthy,
more
nutritious food
Trusted purity
Unmatched
Quality

17. Positioning

18. Product Life Cycle (PLC)
Introduction Growth Maturity Decline
Nesvita
Nestle
Chilled coffee
Nesfruita
Nestle Milo Cereals
Nestle Fitnesse
Nestle coco crunch-
Cereals
Nestle Crunch
Nestle Milkpak
Nestle Nido
Nestle Everyday
Nestle Fruita Vitals
Nestle Pure Life
Maggi Noodles
Nestle Cerelac
Lactogen and NAN
Nestle Corn flakes
Nescafe
Nestle Kitkat
Yogurt
Maggi Umda Maza
Nestle Meethay

19. Product Life Cycle (PLC)
12
10
8
6
4
2
0
Product Life Cycle of Nestle Pakistan
Introduction Growth Maturity Decline

20. Creating shared value and wealth

21. Conclusions
 Nestle has been earning well for itself and offering
ample returns to the society for over two decades now.
 Still growing it’s business and product portfolio as no
competitor has given matching competition yet.
 Positioned as the provider of healthiest and nutriest
food in the market.
 Has major products in good market strength.
 Nestle should focus on developing more new products
and exploring more new markets to retain it’s leading
position in the food industry of Pakistan.