Presentation of nastle milk company pakistan

1. Good Food, Good Life
SWOT ANALYSIS
STRENGTHS;
1. Brand Image:
brand image (describe the consumer’s belief and thought towards a specific
product) enhances the consumer’s trust and enables the company to differentiate its
services from other enterprises in the industry and to satisfy the consumers.
2. Market strategies:
Market strategy is a section of the business plan that’s outline the overall game plan
for how to find and attract clients or customers to business.
3. Quality Products:
Quality has no specific meaning unless related to specific function andor object.

2. 4. Growing Sales and profits:
Making your business more profitable involves looking at ways to increase sales revenue as
well as decreasing your costs and benchmarking your business to see where you can save money.
5. Market Share:
Nestle juices has a high market share almost in every SBU’s lines, such as in milk pack &
Nestle pure life.
6. Skilled labor:
Skilled labor is generally characterized by high education or expertise levels and high wages.
7. Parent support:
Nestle Pakistan has a strong support from its parent company , which is the world’s largest
processed food and beverage company, with a presence in almost every country.

4. WEAKNESS;
1. Target market:
Target market of any company should be well defined and match with
economic circumstance of the country. Price should be like that customers are
motivated to buy more.
2. Nestle Milkpak:
Milk pak was the first to introduce the packaged milk category, processing the
milk through UTH(Ultra-High Temperature Processing) treatment and offer quality
milk.
3. Lack of nutrition:
A number of Nestle’s products have faced criticism as a result of their
nutritional value.
4. Nestle Baby Milk:
It is one of the major weaknesses of Nestle is Nestle Baby Milk because those
babies who fed one a baby milk are become sick . And so many babies were died
because of nestle baby milk and then people boycott to buy nestle.

5. 5. Packaging:
Nestle is dependent on Tetra pack for packaging of its entire dairy products. It is the only
option for them as Tetra pack has monopoly in packaging sector. This cause higher production
costs.
6. Distribution cost :
The company has always reported higher distribution cost. The distribution cost is high as
compared to the competition in the local market.
7. Entering mature markets:
Entering into the markets that’s already mature and give a tough competition to new
entrants.

7. OPPORTUNITIES;
1. Intangible capabilities :
Intangible capabilities like leadership qualities tacit knowledge and skills, teamwork,
organization cultures, business processes, partnership , etc. can help Nestle in building
competitive edge over its competitors.
2. Enhance distribution channels :
Nestle should work on its distribution channel to make it efficient in order to maintain
supply of their products.
3. Awareness:
Extensive awareness programs for health and hygiene has created awareness among the
consumers for the benefits of processed milk . More and more consumers are shifting from loose
milk to processed milk . This is the great opportunity for growth and to gain more market.
4. Fifth largest producer of milk :
Pakistan is the 5th largest milk production country in the world , the country is blessed four
seasons and high- quality crops , good species of buffaloes and cows and largest canal system.
This is the good opportunity to increase production significantly by practices and modern
techniques.

9. THREATS;
1. Lower loyalty:
Higher levels of buyer power within the industry is fueled by greater choice and lower
loyalty.
2. Economics conditions of Pakistan :
Pakistan’s economy is another major threats to the company . Pakistan savings and
investment levels are woefully low.
3. Population growth :
ageing population shifting the demographics of the workforce.
4. Differentiated products:
Consumers are indifferent to buying Engro products or Nestle. It is a threat to Nestle that
consumers can easily shift to Engro products in case of any unfavorable condition.