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Nestle

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Nestle

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Nestle

  1. 1. NESTLE Presented by :: Javeria gul MSC 3rd
  2. 2. NESTLE  Nestle S.A. is a Swiss transnational food and beverage company headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world measured by revenues, and ranked #72 on the Fortune Global 500 in 2014.  Nestles products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestlé’s brands have annual sales of over CHF1 billion (aboutUS$1.1 billion) including Nespresso, Nescafé Kit kat, Smarties, Nesquik, Stouffer’s, Vittel, and Maggi. Nestlé has 447 factories, operates in 194 countries, and employs around
  3. 3. HISTORY
  4. 4.  In the 1860s Henri Nestlé, a pharmacist, developed a food for babies. People quickly recognized the value of the new product, after Nestlé’s new formula saved the child's life, and soon, Farine Lactée Henri Nestlé was being sold in much of Europe.  In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early1900s, the company was operating factories in the United States, Britain, Germany and Spain.  World War I created new demand for dairy products in the form of government contracts. By the end of the war, Nestlé's production had more than doubled.  The 1920s saw Nestlé’s first expansion into new products, with chocolate the Company's second most important activity. Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in1938 to $6 million in 1939. Factories were established in developing countries, particularly Latin America. Ironically, the war helped with the introduction of the Company's newest product, Nescafe, which was a staple drink of the US military. Nestlé’s production and sales rose in the wartime economy.  In 1947 came the merger with Maggi seasonings and soups. Crosse & Blackwell followed in 1960, as did Findus (1963), Libby's (1971) and Stouffer's
  5. 5. MAIN BRANDS OF NESTLÉ:
  6. 6. NESTLE PAKISTAN Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over management in 1992.  Nestle Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the consumers.  Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health & Wellness.  As a socially responsible corporate, company always focus on environment friendly operations, ethical business
  7. 7. SELECTION OF ONE PRODUCTI choose the dairy products for my report .and my main focus is on Nestle milk PAK because in Pakistan it is used everywhere. PRODUCTS MARKETED IN PAKISTAN Business Areas Products Marketed in Pakistan—Business Areas  Locally Produced Products A broad range of products is produced locally. These are grouped under the six broad categories listed below:
  8. 8. Dairy Products MILKPAK UHT MILK MILKPAK pioneered the UHT market in 1981. A major re-launch in 1997repositioned the brands the perfectly pure and natural milk. This enhanced its brand image, and simultaneously strengthened its leadership in the market. It is currently available in three different sizes: 250 ml, 500 ml, and 1000 ml. MILKPAK UHT BUTTER MILKPAK butter was launched in 1985.  It has an established consumer base, and a significant market share. It is available in two different sizes: l00g, and 200g.
  9. 9. MILKPAK DESI GHEE MILKPAK Desi Ghee was launched in 1986. It has gained a dominant market share due to its aroma, taste, and quality. And also by capitalizing on the MILK PAK brand name. It is available in a 1000ml tetra pack. EVERYDAY DAIRY WHITENER EVERYDAY, a spray dried instant dairy whitener was launched in 1992. To tap the potential offered by the large tea drinking consumer segment . And also to expand the overall powder milk market. EVERYDAY is available in three different sizes: 200g, 500g, and l000g.
  10. 10. NESTLE EVERYDAY UHT Nestle Everyday UHT was launched in October 2001 . It is a special milk for tea that enhances the tea taste like no other milk can. It is available in 375ml, 200ml, and 125ml pack sizes. NIDO Prior to local production commencing in 1990, NIDO had been imported for roughly two decades. NIDO had established itself as the market leader in the instant powdered, full cream 'vitaminized' milk (as it is enriched with vitamins A and D) category before 1990. Presently, major efforts are directed towards expanding the powder milk market that holds the potential to grow rapidly. NIDO is available in 200g (soft pack), 500g (soft pack), and l000g (pouch) sizes that are locally produced, whilst an 1800g tin is imported.
  11. 11. GLORIA Gloria full cream milk powder was launched in 1991. And is sold in bulk (25kg packs) to industrial consumers, and to end consumers per se. In 1997, GLORIA skimmed milk powder was also introduced under the GLORIA brand. NESTLE NESVETA  Nestle Nesvita Hi- calcium low fat milk was launched in sep 2003. It is available in sizes 500ml and 1000ml TBA slim. The main competitors and pioneer in the market is SKIMZ. It available in both powder and liquid form . It is a low fat milk less than 1% fat with no extra benefits and has an estimated 45% share of the market
  12. 12. NESTLE MILK PAK LTD. (A BRIEF HISTORY) The joint venture between Milk Pak Ltd. And Nestle S.A. came about in 1988 and the company was renamed as Nestle Milk Pak Ltd. Prior to that, Milk Pak Ltd. Produced UHT milk, butter, cream, desi ghee and fruit drinks at Sheikhupura factory. 21 branded product lines were added during 1990 to 1998. Nestle Milk Pak operates the largest and an extremely efficient milk collection system in the country, which enables it to collect the highest quality milk for production of UHT and powder milks as well as other milk based products. The company voluntarily provides extension services of farmers in the area of animal husbandry and livestock breed improvement.
  13. 13. WHY NESTLE IS AN OLIGOPOLISTIC FIRM? Market in which nestle is operating In Pakistan is oligopolistic where as an oligopoly is a market dominated by a few large suppliers. Firms within an oligopoly produce branded products (advertising and marketing is an important feature of competition within such markets) and there are also barriers to entry. E.g. main competitor of nestle in Pakistan is Engro foods. Nestle produces brands of milk Pak or all pure where as Engro produces brands of Olpers or Olfrute. Nestle captures the market share of 51% and Olpers captures the market share of 38%. Both launches the strong advertisement campaigns for sales or promotion like OLpers shows religious affiliation with its customers (e.g. Ramadan sehri and aftari) respectively nestle launches different consumer awareness campaigns.
  14. 14. COMPETITORS OF NESTLE DAIRY PRODUCTS As nestle provide quality products , so it’s the leading company all over the world in all its products. It has also some competitors of its dairy products in Pakistan. Nestle dairy products Competitors Milk Pak Olpers and Nurpur Nestle butter Blue band butter Nestle cream Olpers cream Kit Kat Mars, sneakers and Cadbury
  15. 15. NESTLE SALES STRATEGIES Nestle foods was established in 1866. Nestle juices is worldwide number one and fastest growing food The company is trying their level best to differentiate themselves from local companies and trying to win the competition by adopting the and technologies in both operational fields as well as in marketing of products.  Nestle uses the following strategies which are the reason behind its sales.
  16. 16. MARKETING MIX Product: Nestle first launched its powder milk in the market in 2003 and then came powder. Nestle has introduced the milk powder which outshined others because of taste, refrigeration, ready to drink, less volume, more stable shelf life. The entire production of the Nestle Every day is carried out in Pakistan at Sheikhupura and Kabianwala. At Nestle the Research and Development department is called as the “APPLI NGROUP”. No other company matches the R&D presence of Nestle. No other company dedicates so many human and financial resources to R&D as The technology is imported and is latest The factory mil powders spray drying capacity was doubled in 1999 with commissioning of new evaporator. The actual target is a company’s secret that will not be disclosed. But we an overwhelming acceptance and liking of the product
  17. 17. PRICE Price of product: Nestle sets prices of their products according to the market demand as low possible because nestle is the trend setter in the market. Profit margin of the product: The profit margin is usually high because of the high quality of the Does the price fluctuate or they remain stable? As the product is a diary product so its prices generally trend to fluctuate. Scale of prices: The prices are fixed on a reasonable scale so that majority of public can
  18. 18. PROMOTION Channels adopted for promotion:  Nestle has adopted the channels for promotion through TV, Newspapers, magazines Doctors and hoardings etc. Advertisement budget of the company: Nestle has preplanned to start the financial year but it is kept secret b the company. Sponsors of the company:  Nestle does not have any sponsors. Share of promotion: Share of promotion in overall projects varies every year. Usually it is 40% product. Nature of marketing: The product is marketed aggressively in the market.
  19. 19. PLACEMENT Outlets of product located:  Nestlé’s products are located all over in Pakistan regardless of big and cities. Directly sales to the consumers or via distributors:  Nestlé’s products are not sold directly to the customers because of consumer groups. It is the reason they use the sale the products through distributors for company. Insurance policies of companies:  Nestlé’s insurance policies are maintained but they are highly Warehousing facilitation of company:  Nestle has its own warehouses for the storage of products as well as it
  20. 20. FINDINGS AND RECOMMENDATIONS  This is competitive world and must never forget that customers have a choice. If they are not satisfied with a Nestlé, they will switch to another brand. The pursuit of highest quality at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive advantage is gained from a balanced search for optimal value to customers. By simultaneous improvement of quality and reduction cost. Success can never be taken for granted. Nestlé must watch and learn from its competitors. If they do something better, Nestle must improve its own performance. Nestle can achieve competitive advantage through Quality.

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