GOOD FOOD ……. GOOD LIFE
LEARNING TODAY ….. LEADING TOMORROW
Learning today……………….Leading tomorrow
Hallar Ali Mahesar (Group Leader) (30)
Toufique Ahmed Mangi (Co-ordinator) (88)
Group Members
1). Shakeel Ahmed Khoso (77)
2). Ghulam Ali Khoso (27)
3). Aazad Ali Khoso (23)
4). Naseem Ahmed Khuhro (60)
5). Syed Azmatullah Shah Bukhari (71)
6). Syed Sarfraz Shah Bukhari (96)
7). Ayaz Ahmed Noonari (22)
8). Muneer Ahmed Gambir (122)
9). Muhammad Saleem Mino (54)
10). Kamran Ali Mallah (40)
CASE STUDY
DEMAND FOR NESTLE JUICE
Nestle company is a multinational company continuously producing
many varieties of products, has a large number of markets in different
countries, the same like in Pakistan. It introduced juice product which
is Nestle Fruit Vitals. Before this the Shezan juice product by
Shahnawaz Group was highly demanded as a domestic product. It has
a self-marketing benefit, so when newly entering of Nestle in markets
was less demanded overall than Shezan, after some time by its Quality
about health and Slogan as “GOOD FOOD…GOOD LIFE” and producing
more flavor a with same real taste in its tetra packets. Its initial price
starts from 20 rupees at the same time Shezan was offering the same
quantity pack in 15 rupees, but people prefer Nestles and demand of
Nestle, as new product, increased day by day. Its demand got positive
shift and company introduced new shape, flavors including, Red
Grapes, Orange, Mango, Apple, with new slogan “100% REAL”. By
these changes Nestle has increased their price of 250ml pack from 20
TO 25 and Shezan also realize to bring some change accordance with
consumer behavior. Then Shezan just changed its packing shape and
increased its price from 15 to 20, but not advertise fully, as its new
packing and price brings Shift with decreased demand, its new packing
idea was not good, the new packing looks strange as duplicate for
changing of packet and price brings decrease in Shezan demand.
However, Nestle’s demand increased. So Nestle as being most
demanded product has increased its price from 25 TO 30. The
Shahnawaz group brand Maza is also demanded in less develop areas,
like villages, due to low income of people and somehow poor
advertisement of Nestle.
Acknowledgement
In performing our assignment, we had to seek help and guideline of
respected person, who deserve our greatest gratitude. The
completion of this assignment gives us much Pleasure. We would like
to show our gratitude to Professor Sir, Mumtaz Ali Junejo, for giving us
helpful guideline regarding assignment through numerous
consultations. Who introduced us to the Methodology of work, and whose
passion for the “underlying structures” had lasting effect.
We would also like to expand our deepest gratitude to all those who
have directly and indirectly guided us in writing this assignment.
Many people, especially our group and team members themselves
have made valuable suggestions on this proposal which gave us an
inspiration to improve our assignment. We thank all the people for
their help directly and indirectly to complete our assignment.
(B.COM-III)
TABLE OF CONTENTS
1. HISTORY……………………………………………………………………………….01
2. INTRODUCTION........................................................................................... …02
3. NESTLE INTER IN PAKISTAN…………………………………………………………...03
4. BRANCHES IN PAKISTAN .................................................................................. …03
5. COMPANY STRUCTURE ……………………………………………………………….03
6. FACTORIES IN PAKISTAN.................................................................................. …04
7. NESTLE PRODUCTS ......................................................................................... …04
8. HISTORY OF NESTLE JUICES ............................................................................ …06
9. MISSION.......................................................................................................... …09
10. VISION .......................................................................................................... …09
11. FRUIT JUICE PRODUCT PROCESS................................................................... …10
12. PACKING AND LABELLING………………………………………………………..…10
13 COMPETITOR ……………………………………………………………………... …11
14. SWOT ANALYSIS SHEZAN............................................................................. …14
15. SWOT ANALYSIS NESTLE ............................................................................. …15
16. MANAGERIAL TECHNIQUES.............................................................................. …18
17. DEMAND ANALYSIS......................................................................................... …20
18. MANAGERIAL TECHNIQUES RECOMMENDATIONS ............................................. …24
19. CONCLUSION ................................................................................................ …25
20. REFERENCES ................................................................................................ …26
History Of the Nestle Juice Company
In 1860’s Henri Nestle a Pharmacist a development a food for
babes whose were unable to breastfeed Nestlé’s products include baby
food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy
products, ice cream, food, pet, and snacks. Twenty-nine of Nestlé’s brands have
annual sales of over billion (about us $1.1 billion), including
espresso, Nescafe, Kit kat, smartest, Naquin, Stouffer’s, vital, and magi. Nestle
has 447 factories, operates in 194 countries, and employs around 333,000
people. It is one of the main shareholders of L’Oreal, the world’s
largest cosmetics company.
Nestle was formed in 1905 by the merger of the Anglo-
Swiss milk company, established in 1866 by brothers George page and Charles
page, and ferine lacteal henrys nestle, founded in 1866 by Henri Nestlé. The
company grew significantly during the First World War and again following
the Second World War, expanding its offerings beyond its early condensed milk
and infant formula products. The company has made a number of corporate
acquisitions, including Blackwell in 1950, Findus in 1963, Libby’s in 1971, row
tree in 1988, and Gerber in 2007.
Nestle has a primary listing on the six Swiss exchange and
is a constituent of the Swiss market index. It has a secondary listing on euro next.
In 2011, nestle was listed no. 1 in the fortune global 500 as the world’s most
profitable corporation. With a market capitalization of us$233 billion, nestle
ranked no. 9 in the global 500 2013.
HENRI NESTLE
Introduction
Nestlé is a multinational packaged food company. Its head quarter
is in Switzerland.It resulted from a merger in 1905 between the Anglo-S
wiss Milk Company for milk products.Established in 1866 and the Farine
Lactée Henri NestléCompany set up in 1867.The Company is engaged n
manufacturing, processing and sale of food produccts in Pakistan.
The company offers milk, dairy, and chilled dairy products, including
milk, yogurt, ghee, and
cream;Beverages, such as coffee, juices, and instant drinks; And
bottled water in non-returnable and bulk bottles for home
and office delivery. It also offers
infant cereals;Prepared meals, such as noodles; Breakfast
cereals; And mints, chocolates
andconfectionery and culinary products.The company, formerly known a
s Nestle Milkpak, Ltd., was founded in 1979 and is based in
Lahore, Pakistan.
Nestle Pakistan Limited is a subsidiary of Nestle S.A. It operates i
n Sheikhupura, Kabariwala, Islamabad and Karachi in the world from
that office.
Nestle Entrance in Pakistan
Nestle started its operation in Pakistan back in 1988, by acquiring diary
company MILKPAK Ltd.
Butter, Cream, Dasi-Ghee , under brands name Milk Pak.
Juice drink under brand name FROST.
 1990 it start producing NIDO, EVERYDAY, CRELAC.
 1991 Lactogenic 1 & 2.
 1994 Milo and Nescafe 3 in 1.
 1998 Sweet street’s (POLO).
 1999 Fruit Drops, NESTLE PURE LIFE.
NESTLE FRUITA VITAL BRANCHES IN PAKISTAN
Nestle in Pakistan has its branches following major cities.
 Lahore
 Islamabad
 Faisalabad
 Sheikhupura (Factory)
 Karachi
COMPANY STRUCTURE
Nestle Head Office in Pakistan is in Lahore, it also has registration in Lahore.
Nestle has divided the whole Pakistan in three Zones
 Northern Zone
 Central Zone
 Southern Zone
Nestle has 8 regional offices in all over Pakistan, these offices work under their
respective zonal offices.
FACTORIES in Pakistan
Nestle has two factories in Pakistan for the product of Juice items
One near Sheikhupura , near Lahore (29 kilometers on Lahore Sheikhupura).
Second in Kabirwala, Multan (Khanewala Road District kabirwala).
Products
Milk, Dairy and Chilled Dairy:
Nido
Neslace
Everyday
Yogurt
Fruit Yogurt
Raita
Milk Pak Cream
Milk Pak Desi Ghee
Nestle Beverages
Bottle Water
Nestle pure life
Nestle Juice
Fruita vital Guava Chonsa (mango)
Mango-orange Mango Red Grape Pineapple
Baby Food
Cerelac
Prepared Meal
Maggie 2Minutes Noodles
Break Fast Cereals
Nestle Cornflakes
Nestle CoCocrunch
Nestle Honey Stars2
Chocolates & Confectionary
Nestle KitKat and KitKat Chunky.
The main aim of Nestle is to reach every single Pakistani. Nestle currently launc
hed a new flavored juice in Pakistan that is Nestle Guvava in 2008.
The profit and net profit margin remained stable. Overall profit margin
showed a slight increase but a slight decline in gross
profit margin was witnessed.
History of Nestle Juices
A well-known brand, FORST was introduced in 1986 and has the largest share of
the worldwide market. Position as a cold drink and alternate to cola drinks, its
strengthen lies in convenience attached to its usage.
NESTLE JUICES
Encouraged by the consumer response to NESTLE ORANGE JUICES that was
launched in 1996, the category of NESTLE juices was expanded with the
introduction of Mango-Orange and Mango flavors in the year 2000. This has
further strengthened the position of nestle as leader in the value
added/premium drinks market. Consumer response to these new flavors has
been very upbeat and is expected to gain further. Now nestle company have
launch following juice brand in Pakistan.
Indulge in the pure pleasure of a healthy life!
Nestle brings you a range of juices that will scintillate your taste-buds and add
variety to suit every moment.
NESTLE Pure Orange Juice
Orange are in demand not only for their divine juicy
flavor but equally celebrated for their health benefits.
They are naturally low in calories and an excellent
source of Fiber and Vitamin C.
Squeezed from the finest hand-picked
oranges, 100% pure nestle pure orange juice has no
added sugar and is a good source of Vitamin C. having
orange juice every day is a great way of strengthening
the body resistance against infection and diseases and
maintaining healthy life style.
NESTLE Clear Apple Nectar
Apples have no fat and are cholesterol free
nestle clear Apple nectar is made from the finest
apples and is 100% clear.
As irresistible as in sin itself give in to the amber kick of
NESTLE clear apple nectar.
NESTLE Red Grape Nectar
Grapes also called the (Queen of fruits) are now
for their great internal body cleansing properties. They are a god
source of Vitamin C and Potassium that plays an important
role in proper heart functioning by regulating blood pressure
and heart beat. Relish the full bodies, smooth flavor of
nestle red grapes nectar and let your test buds soak in
sensuous richness of red grapes.
NESTLE PINEAPPLE NECTAR
Pineapple are god source of Vitamin C, an antioxidant that helps fight against
free radicals, one of the main reason for aging. Made from premium Pineapple.
Nestle Pineapple nectar brings you the exotic taste of Pineapple with a
refreshing tropical flavor and is a good source of Vitamin C.
NESTLE Mango-Orange
Sink in to fruity refreshment feel the burst of fruity
fun and discover the flavors of Nestle Mango and
Nestle Mango-Orange fruit drink made with the juiciest,
sweetest Mangos and racy , Sharpe Oranges to sass up
your taste buds.
NESTLE Chaunsa nectar
Nestle chaunsa nectar is prepared from the finest quality
Chaunsa mangoes that are procured from the best
fruit farms. The 100% rich mangoes nectar is
nutritious,
refreshing and wonderfully delicious. It helps to
replenish
the lost vigor during work outs and enhances our
fitness by
providing fortified energy endowed with dietary
fiber, Vitamin A C & E.
NESTLE Guava Nectar
A chilled glass of pink nestle Guava Nectar is not only
great tasting but is also wholesome in antioxidants
making it very nutritious.
Nestle Guava Nectar is rich in vitamin A, B, C, & Niacin
and due to excessive fiber content it is an effective fat burner.
NESTLE Mango
Fell the burst of fruity fun and discover Nestle Mango fruit drink made with the
juiciest, sweetest mangoes to sass up your taste buds.
Now that is a sweet deal.
MISSION STATEMENT NESTLE JUICES
Good food, Good Life
Build Branded food and juice business to improve quality of life by offering
taste, affordable and highly nutritional products to our consumers while
maximizing stake holder value.
VISION
Explore all over the world from backer to babies, parents to pet owners single
servings to catering providing for all their needs always with the assurance of
outstanding quality.
In the following pages the process flow chart and brief description of the
various processes involved in the fruit juice production are outlined.
FRUIT JUICE PRODUCTION PROCESS
Fruit boiler where it is cooked and shifted to the
plate heat exchanger. Then stored in the storage tank. Then supplied to the
mixing tank in the desired quantity while in mixing tanks. Any additives that they
are made at this stage before it is pumped to syrup storage tanks. Blended juice
is then pumped through pasteurizer. Where it is he heated to 90 0 C to inactivate
enzymes and living organism. After pasteurization the juice passes through final
filtration, before loading It in to a juice storage tank. Juice from the tank is ready
for packaging.
PACKING AND LABELING THAN STORAGE
The juice will be packed in the quantities demanded by the market. Consumer
packs as like , 200 ml and 1000 ml tetra pack and then label the nestle juices.
Product will be in cool dry store.
Juice storage tank
Filling and packaging
Cooling and storage
All Products Of Nestle
Competitor’s analysis
Competitor analysis in marketing management is an
assessment of the strengths and weakness of current and potential competitors.
This analysis provides both an offensive management context through which to
identify opportunities and threats. Competitor profiling coalesces all of the
relevant sources of competitor’s analysis into one framework in the support of
efficient and effective management formulation, monitoring and adjustment.
In order to evaluate the competitive position we
have to take a look on the competitors of Nestle juices in JUICE CATEGORY.
Competitor in market
 Polly
 Shezan
 Slice
Polly is the main competitor of Nestle juice, nestle
juice compete their customer on quality basis because In Pakistan there is only
big name in pure fruit juices, nestle provide their customer pure fruit juices.
SHEZAN:
Short introduction of shezan
The shezan international limited was in cooperated on May
30, 1964 as a private limited company. Shezan international limited was
conceived as a joint venture by the shahnawaz group. Pakistan and Alliance
industrial development corporation, U.S.A in 1964. Shezan is the largest food
processing unit having developed and installed the capacity to meet the
country’s local as well as export needs. In 1971, shahnawaz group purchased all
the shares of alliance industrial development corporation with the permission
of the government of Pakistan. In 1980-81 a separate unit was installed plant in
Karachi which now cares for Karachi, send export demand. A bottle filling plant
was set in 1983 in Lahore, Punjab. An independent tetra drink plant was
commissioned in 1987. In the year 1990 it was decided to install a juice factory
at the Hattar in Khyber Baktun Khwa of Pakistan. Shezan international’s head
office Located in Lahore, Pakistan. In Canada, target food, is the authorized
distributer for all shezan product s. they carry all the export quality juices, James,
Pickles, Chutneys, Sauces, Syrups and Squashes.
The products of company include tetra pack juice, mango juice,
pickles, custards, vegetables, jellies and James. The company distributes the
products under the shezan brand name. Strong local name in the juice and
drinks range.
-Launched
Shezan Orange
-Launched Twist (nectar) 2003
Aggressive marketing campaign print, electronic
-Shezan All Pure 2004
-No trial generation activates
No consumer reward/loyalty CPs
Available Packaging options
 -Shezan All Pure
 -Nectar
 Twist
SHEZAN ALL JUICE PRODUCTS
SWOT Analysis Of Shezan Juices
Strengths:
1. Shezan has its own fruit form.
2. Shezan juices operate in market earlier than nestle juices.
3. Butter knowing the culture of country.
4. Shezan juices have best distribution channel in all over the Pakistan.
5. Offer good quality products especially nectars juices in market.
6. Shezan juices have good positioning in customer mind.
Weakness:
1. Less product awareness in customer mind.
2. Rising manufacturing cost.
3. Inadequate human resources.
Opportunities:
1. Shezan juices have great perception value in minds of customers while as
Pakistan organization.
2. Increase juices market very fast.
3. The concentric diversification in different juices products.
4. Backward integration can use in juice products of company.
5. Decreasing economy condition.
Threats:
1. There is strong competition in juices market.
2. Different strategies adopted by competitors Nestle in juices products.
3. New product advancement by different competitors.
4. Increase inflation rate (23.3% 2014).
5. Rising labor cost.
SWOT Analysis of Nestle Juices
SRTENGTHS:
1. Company images - Nestle company has a great image in the mind
of people. Nestle company has worldwide reputation.
2. Quality conscious - Nestle produce a good quality product. It can’t
compromise on quality.
3. Well-developed strategy - Nestle has recognizes there is a right
time and place for their product, therefore, their strategy makes
room for adjustments.
4. Market share - Nestle juices has a highest market share i.e 60% in
juices market.
5. Good marketing skills and services - Nestle is now a days working
on this concept because they want to increase their market share.
They are providing quality products to the customers that include
there services and products.
6. Brand strength - In Pakistan nestle has some very strong brands like
Nescafe and Nestle Juice, Maggi Cerelac, Nestle water and these
brands are almost generic to their product categories.
7. Research and Development - Research and development
department keeps nestle in continuous knowledge about itself and
competitors. It has a competitor advantage because many local
juices have no research and development department.
8. Product innovation - The company have been continuously
introducing new products thus expending its product offerings.
9. HR DEPARMENT - Nestle company has a strong HR department.
WEAKNESS:
1. Storage ability - Nestle juice not store able for long time.
Opportunities:
1. Support foreign investors - Government support foreign
investors to invest in Pakistan.
2. Scientifically gas - This is great opportunities for nestle company.
Because in coming future nestle take the benefits of uses the
scientifically gas.
3. Changing social trend - Consumers in urban areas drink
functional drinks on a regular basis as they increasingly and adopt
western life styles, especially the younger-generation which is
hugely influenced by the western media. Younger-consumers
tend to follow western eating and drinking habits. They was an
increase demand for functional drinks over the review period.
4. Health conscious - Increasing health and hygiene awareness
among Pakistanis has greatly increase sales of fruit/vegetable.
Both the government and the media have started health
awareness campaigns to make Pakistanis reliance that
consumption of fruit/juice is has essential and eating food.
Fruit/juices are doing very well in both Urban and Rural areas.
5. Global hub - Since manufacturing of some products is cheaper in
Pakistan than in other South East Asian countries.
6. Market growth - Juices market expends very fast. A new research
proves that in future (2016) every person use 85.5 litters juices
per year.
7. Limited offers options in real fruits juices - Limited options in
locally produced real fruit juices.
THREATS:
1. Government regulation - They face problem if government employ
taxes on them which force them to raise the price of their products.
2. Increase in competition - There is large competition in juices
market.
3. Entry barrier - There are no many entry barriers so a large numbers
of local juices inter in juices market.
4. Labour coast - Increase labour cost.
5. Inflation rate - Increase inflation rate very fast. In 2014 expected
inflation rate 23.3%.
Managerial Techniques
To perform well; managers rely on four types of techniques;
 Conceptual techniques
 Interpersonal techniques
 Technical techniques
 Decision making techniques
Conceptual techniques
The ability to understand the relationship among the various tasks of a firm.
Interpersonal techniques
The interpersonal techniques necessary to communicate with customers and
employee.
Technical techniques
The techniques to perform specific day-to-day tasks.
Decision making techniques
Techniques for using existing information to determine how the firm’s
resources should be allocated.
ANALYSIS OF DEMAND
When Nestle juices entered in the market its initial price was 20
rupees and its competitor Shezan was of 15 rupees. Consumers were demanding
nestle juices as being multi-national company brand, whereas sheezan was
domestic company’s brand. People prefer Nestle juice and at the same time
demand of Sheezan lower down. As time passed, nestle continuously advertised
its brand nestle juice. Nestle juice increased its reputation and quality among
the people. On this stage, consumers good behavior towards nestle juices,
nestle brought changes in its packaging style which attract more consumers
input shifts in demand of nestle juices. Its price increase along with demand.
They settled price 22 to 25 rupees per 250 ml tetra pack.
As continuous demand of Nestle make realize Shezan to improve the quality
of their products as for this they had taken step to bring changes in packing style
and taste which differ from the previous one. The management decided to
increase the price from 15 to 20 rupees. Actually its new packing looks consumer
as a duplicate pack and failed in strategy to attract the customers. Buyers avoid
to buy Shezan products. Nestles demand automatically jumped-up. The
rightward shift of demand in
Nestle juices has given bonus by shezan because their ideas of changing in
product failed.
When the nestle realized that they are public’s first choice in market of juices
then they had brought changes that mostly people like, that was improving and
introducing new flavors of Nestle juices, like in Nectar shape in flavors of Red
Grapes, Apple And Orange with new slogan 100% Real juices. These changes
influences prices of Nestles juice 25 to 30 rupees.
The improvement adopted by management is liked by public and a good
behavior of demanders towards Nestle juices put a rightward shift in demand.
Managerial Techniques and Some Recommendations
Techniques that can be applied to analysis demand.
1. Nestle as costly product then its other substitute
By adopting these methods manager can analyze or increase their
products demand more by reducing its price, but price can be reduced
when its input cost become less and for this they have to decrease
packing cost then its price can be reduced, after that it will be affordable
for low income people.
2. Competitor Shezan is more demanded in rural areas
By applying some techniques like this, the price of product should be
according to the areas or to introduce new product for specially those
areas with some low price and quantity but quality should remain same
or promote more its brands there for gaining familiarity among the
people of rural areas.
3. Change in its packing
Make changes in its packaging, style and its packing as international
standard. They should bring changes in its packaging time to time
because it attract more to consumers.
4. Addition of new flavors
Nestle should have to bring some new flavors in juices as to maintain its
reputation. Because people’s are social animals and they always wants
change and new something.
5. Improving taste
As change in flavors, nestle has to bring some new changes in its taste
along with the old taste.
6. Always being aware of competitors
Nestle as leading juices brand but it should also have, keep a hawk eye
on their competitors and their brands, consumers, prices, quality and
their marketing or supply way.
7. Way to promote
Nestle should have to set a strong advertisement sell, Via, T. v channels,
magazines, sign boards and also through arranging music shows.
CONCLUSION
Nestle juice is most demanded in Pakistan for being an international
product and ensure public for healthy juice (food) and giving their
competitors tough challenge in the market. Nestle always care for
people’s want and according to demand they brings changes
continuously in its products and make it better according to
consumers expectations and sets a reasonable price which
always match with demand. The price, as compare to of Nestle
with shezan and other competitors, is much high because
management is not ready to compromise on quality and input
costs that maintain it as a pure juice. The management of Nestle
can apply such techniques to increase its demand and value all
over the country, being as costly product than other substitutes,
for this they have to introduce new product with its low cost of
packing and quantity. If somewhere demand of competitors is
high then it should promote high advertisement for awareness
among people t0 take full advantage. The management has to
continuously make changes in flavor, taste and packing. The
management should have to carry on the Nestle juice new
slogan as in current 100% REAL and GOOD FOOD…GOOD
LIFE.
REFRENCES:
 www.nestle.com.pk
 www.cia.gov
 www.finance.gov.pk
 www.nestle.com.
 www.scribd.com
 www.slideshare.net
 www.shezan.biz
 www.simbaentp.com/shezan
 www.beveragedaily.com
 ABDUL BASIT (Distributor Khairpur Mir’s)
 HAQ NAWAZ (Distributor Naushahro Feroze)
 SAFDAR ALI (Distributor Shahdadkot)
 JAWAD AHMED (Distributor Shikarpur)
 MUNEER AHMED (Distributor Sukkur)

Demand for nestle juices(case +with report)

  • 1.
    GOOD FOOD …….GOOD LIFE LEARNING TODAY ….. LEADING TOMORROW
  • 2.
    Learning today……………….Leading tomorrow HallarAli Mahesar (Group Leader) (30) Toufique Ahmed Mangi (Co-ordinator) (88) Group Members 1). Shakeel Ahmed Khoso (77) 2). Ghulam Ali Khoso (27) 3). Aazad Ali Khoso (23) 4). Naseem Ahmed Khuhro (60) 5). Syed Azmatullah Shah Bukhari (71) 6). Syed Sarfraz Shah Bukhari (96) 7). Ayaz Ahmed Noonari (22) 8). Muneer Ahmed Gambir (122) 9). Muhammad Saleem Mino (54) 10). Kamran Ali Mallah (40)
  • 3.
    CASE STUDY DEMAND FORNESTLE JUICE Nestle company is a multinational company continuously producing many varieties of products, has a large number of markets in different countries, the same like in Pakistan. It introduced juice product which is Nestle Fruit Vitals. Before this the Shezan juice product by Shahnawaz Group was highly demanded as a domestic product. It has a self-marketing benefit, so when newly entering of Nestle in markets was less demanded overall than Shezan, after some time by its Quality about health and Slogan as “GOOD FOOD…GOOD LIFE” and producing more flavor a with same real taste in its tetra packets. Its initial price starts from 20 rupees at the same time Shezan was offering the same quantity pack in 15 rupees, but people prefer Nestles and demand of Nestle, as new product, increased day by day. Its demand got positive shift and company introduced new shape, flavors including, Red Grapes, Orange, Mango, Apple, with new slogan “100% REAL”. By these changes Nestle has increased their price of 250ml pack from 20 TO 25 and Shezan also realize to bring some change accordance with consumer behavior. Then Shezan just changed its packing shape and increased its price from 15 to 20, but not advertise fully, as its new packing and price brings Shift with decreased demand, its new packing idea was not good, the new packing looks strange as duplicate for changing of packet and price brings decrease in Shezan demand. However, Nestle’s demand increased. So Nestle as being most demanded product has increased its price from 25 TO 30. The Shahnawaz group brand Maza is also demanded in less develop areas, like villages, due to low income of people and somehow poor advertisement of Nestle.
  • 4.
    Acknowledgement In performing ourassignment, we had to seek help and guideline of respected person, who deserve our greatest gratitude. The completion of this assignment gives us much Pleasure. We would like to show our gratitude to Professor Sir, Mumtaz Ali Junejo, for giving us helpful guideline regarding assignment through numerous consultations. Who introduced us to the Methodology of work, and whose passion for the “underlying structures” had lasting effect. We would also like to expand our deepest gratitude to all those who have directly and indirectly guided us in writing this assignment. Many people, especially our group and team members themselves have made valuable suggestions on this proposal which gave us an inspiration to improve our assignment. We thank all the people for their help directly and indirectly to complete our assignment. (B.COM-III)
  • 5.
    TABLE OF CONTENTS 1.HISTORY……………………………………………………………………………….01 2. INTRODUCTION........................................................................................... …02 3. NESTLE INTER IN PAKISTAN…………………………………………………………...03 4. BRANCHES IN PAKISTAN .................................................................................. …03 5. COMPANY STRUCTURE ……………………………………………………………….03 6. FACTORIES IN PAKISTAN.................................................................................. …04 7. NESTLE PRODUCTS ......................................................................................... …04 8. HISTORY OF NESTLE JUICES ............................................................................ …06 9. MISSION.......................................................................................................... …09 10. VISION .......................................................................................................... …09 11. FRUIT JUICE PRODUCT PROCESS................................................................... …10 12. PACKING AND LABELLING………………………………………………………..…10 13 COMPETITOR ……………………………………………………………………... …11 14. SWOT ANALYSIS SHEZAN............................................................................. …14 15. SWOT ANALYSIS NESTLE ............................................................................. …15 16. MANAGERIAL TECHNIQUES.............................................................................. …18 17. DEMAND ANALYSIS......................................................................................... …20 18. MANAGERIAL TECHNIQUES RECOMMENDATIONS ............................................. …24 19. CONCLUSION ................................................................................................ …25 20. REFERENCES ................................................................................................ …26
  • 6.
    History Of theNestle Juice Company In 1860’s Henri Nestle a Pharmacist a development a food for babes whose were unable to breastfeed Nestlé’s products include baby food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, food, pet, and snacks. Twenty-nine of Nestlé’s brands have annual sales of over billion (about us $1.1 billion), including espresso, Nescafe, Kit kat, smartest, Naquin, Stouffer’s, vital, and magi. Nestle has 447 factories, operates in 194 countries, and employs around 333,000 people. It is one of the main shareholders of L’Oreal, the world’s largest cosmetics company. Nestle was formed in 1905 by the merger of the Anglo- Swiss milk company, established in 1866 by brothers George page and Charles page, and ferine lacteal henrys nestle, founded in 1866 by Henri Nestlé. The company grew significantly during the First World War and again following the Second World War, expanding its offerings beyond its early condensed milk and infant formula products. The company has made a number of corporate acquisitions, including Blackwell in 1950, Findus in 1963, Libby’s in 1971, row tree in 1988, and Gerber in 2007. Nestle has a primary listing on the six Swiss exchange and is a constituent of the Swiss market index. It has a secondary listing on euro next. In 2011, nestle was listed no. 1 in the fortune global 500 as the world’s most profitable corporation. With a market capitalization of us$233 billion, nestle ranked no. 9 in the global 500 2013. HENRI NESTLE
  • 7.
    Introduction Nestlé is amultinational packaged food company. Its head quarter is in Switzerland.It resulted from a merger in 1905 between the Anglo-S wiss Milk Company for milk products.Established in 1866 and the Farine Lactée Henri NestléCompany set up in 1867.The Company is engaged n manufacturing, processing and sale of food produccts in Pakistan. The company offers milk, dairy, and chilled dairy products, including milk, yogurt, ghee, and cream;Beverages, such as coffee, juices, and instant drinks; And bottled water in non-returnable and bulk bottles for home and office delivery. It also offers infant cereals;Prepared meals, such as noodles; Breakfast cereals; And mints, chocolates andconfectionery and culinary products.The company, formerly known a s Nestle Milkpak, Ltd., was founded in 1979 and is based in Lahore, Pakistan. Nestle Pakistan Limited is a subsidiary of Nestle S.A. It operates i n Sheikhupura, Kabariwala, Islamabad and Karachi in the world from that office.
  • 8.
    Nestle Entrance inPakistan Nestle started its operation in Pakistan back in 1988, by acquiring diary company MILKPAK Ltd. Butter, Cream, Dasi-Ghee , under brands name Milk Pak. Juice drink under brand name FROST.  1990 it start producing NIDO, EVERYDAY, CRELAC.  1991 Lactogenic 1 & 2.  1994 Milo and Nescafe 3 in 1.  1998 Sweet street’s (POLO).  1999 Fruit Drops, NESTLE PURE LIFE. NESTLE FRUITA VITAL BRANCHES IN PAKISTAN Nestle in Pakistan has its branches following major cities.  Lahore  Islamabad  Faisalabad  Sheikhupura (Factory)  Karachi COMPANY STRUCTURE Nestle Head Office in Pakistan is in Lahore, it also has registration in Lahore. Nestle has divided the whole Pakistan in three Zones  Northern Zone  Central Zone  Southern Zone Nestle has 8 regional offices in all over Pakistan, these offices work under their respective zonal offices.
  • 9.
    FACTORIES in Pakistan Nestlehas two factories in Pakistan for the product of Juice items One near Sheikhupura , near Lahore (29 kilometers on Lahore Sheikhupura). Second in Kabirwala, Multan (Khanewala Road District kabirwala). Products Milk, Dairy and Chilled Dairy: Nido Neslace Everyday Yogurt Fruit Yogurt Raita Milk Pak Cream Milk Pak Desi Ghee Nestle Beverages Bottle Water Nestle pure life Nestle Juice Fruita vital Guava Chonsa (mango) Mango-orange Mango Red Grape Pineapple Baby Food Cerelac Prepared Meal Maggie 2Minutes Noodles Break Fast Cereals Nestle Cornflakes Nestle CoCocrunch Nestle Honey Stars2 Chocolates & Confectionary Nestle KitKat and KitKat Chunky.
  • 10.
    The main aimof Nestle is to reach every single Pakistani. Nestle currently launc hed a new flavored juice in Pakistan that is Nestle Guvava in 2008. The profit and net profit margin remained stable. Overall profit margin showed a slight increase but a slight decline in gross profit margin was witnessed.
  • 11.
    History of NestleJuices A well-known brand, FORST was introduced in 1986 and has the largest share of the worldwide market. Position as a cold drink and alternate to cola drinks, its strengthen lies in convenience attached to its usage. NESTLE JUICES Encouraged by the consumer response to NESTLE ORANGE JUICES that was launched in 1996, the category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavors in the year 2000. This has further strengthened the position of nestle as leader in the value added/premium drinks market. Consumer response to these new flavors has been very upbeat and is expected to gain further. Now nestle company have launch following juice brand in Pakistan. Indulge in the pure pleasure of a healthy life! Nestle brings you a range of juices that will scintillate your taste-buds and add variety to suit every moment. NESTLE Pure Orange Juice Orange are in demand not only for their divine juicy flavor but equally celebrated for their health benefits. They are naturally low in calories and an excellent source of Fiber and Vitamin C. Squeezed from the finest hand-picked oranges, 100% pure nestle pure orange juice has no added sugar and is a good source of Vitamin C. having orange juice every day is a great way of strengthening the body resistance against infection and diseases and maintaining healthy life style.
  • 12.
    NESTLE Clear AppleNectar Apples have no fat and are cholesterol free nestle clear Apple nectar is made from the finest apples and is 100% clear. As irresistible as in sin itself give in to the amber kick of NESTLE clear apple nectar. NESTLE Red Grape Nectar Grapes also called the (Queen of fruits) are now for their great internal body cleansing properties. They are a god source of Vitamin C and Potassium that plays an important role in proper heart functioning by regulating blood pressure and heart beat. Relish the full bodies, smooth flavor of nestle red grapes nectar and let your test buds soak in sensuous richness of red grapes. NESTLE PINEAPPLE NECTAR Pineapple are god source of Vitamin C, an antioxidant that helps fight against free radicals, one of the main reason for aging. Made from premium Pineapple. Nestle Pineapple nectar brings you the exotic taste of Pineapple with a refreshing tropical flavor and is a good source of Vitamin C.
  • 13.
    NESTLE Mango-Orange Sink into fruity refreshment feel the burst of fruity fun and discover the flavors of Nestle Mango and Nestle Mango-Orange fruit drink made with the juiciest, sweetest Mangos and racy , Sharpe Oranges to sass up your taste buds. NESTLE Chaunsa nectar Nestle chaunsa nectar is prepared from the finest quality Chaunsa mangoes that are procured from the best fruit farms. The 100% rich mangoes nectar is nutritious, refreshing and wonderfully delicious. It helps to replenish the lost vigor during work outs and enhances our fitness by providing fortified energy endowed with dietary fiber, Vitamin A C & E.
  • 14.
    NESTLE Guava Nectar Achilled glass of pink nestle Guava Nectar is not only great tasting but is also wholesome in antioxidants making it very nutritious. Nestle Guava Nectar is rich in vitamin A, B, C, & Niacin and due to excessive fiber content it is an effective fat burner. NESTLE Mango Fell the burst of fruity fun and discover Nestle Mango fruit drink made with the juiciest, sweetest mangoes to sass up your taste buds. Now that is a sweet deal.
  • 15.
    MISSION STATEMENT NESTLEJUICES Good food, Good Life Build Branded food and juice business to improve quality of life by offering taste, affordable and highly nutritional products to our consumers while maximizing stake holder value. VISION Explore all over the world from backer to babies, parents to pet owners single servings to catering providing for all their needs always with the assurance of outstanding quality.
  • 16.
    In the followingpages the process flow chart and brief description of the various processes involved in the fruit juice production are outlined. FRUIT JUICE PRODUCTION PROCESS Fruit boiler where it is cooked and shifted to the plate heat exchanger. Then stored in the storage tank. Then supplied to the mixing tank in the desired quantity while in mixing tanks. Any additives that they are made at this stage before it is pumped to syrup storage tanks. Blended juice is then pumped through pasteurizer. Where it is he heated to 90 0 C to inactivate enzymes and living organism. After pasteurization the juice passes through final filtration, before loading It in to a juice storage tank. Juice from the tank is ready for packaging. PACKING AND LABELING THAN STORAGE The juice will be packed in the quantities demanded by the market. Consumer packs as like , 200 ml and 1000 ml tetra pack and then label the nestle juices. Product will be in cool dry store. Juice storage tank Filling and packaging Cooling and storage All Products Of Nestle
  • 17.
    Competitor’s analysis Competitor analysisin marketing management is an assessment of the strengths and weakness of current and potential competitors. This analysis provides both an offensive management context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor’s analysis into one framework in the support of efficient and effective management formulation, monitoring and adjustment. In order to evaluate the competitive position we have to take a look on the competitors of Nestle juices in JUICE CATEGORY. Competitor in market  Polly  Shezan  Slice Polly is the main competitor of Nestle juice, nestle juice compete their customer on quality basis because In Pakistan there is only big name in pure fruit juices, nestle provide their customer pure fruit juices.
  • 18.
    SHEZAN: Short introduction ofshezan The shezan international limited was in cooperated on May 30, 1964 as a private limited company. Shezan international limited was conceived as a joint venture by the shahnawaz group. Pakistan and Alliance industrial development corporation, U.S.A in 1964. Shezan is the largest food processing unit having developed and installed the capacity to meet the country’s local as well as export needs. In 1971, shahnawaz group purchased all the shares of alliance industrial development corporation with the permission of the government of Pakistan. In 1980-81 a separate unit was installed plant in Karachi which now cares for Karachi, send export demand. A bottle filling plant was set in 1983 in Lahore, Punjab. An independent tetra drink plant was commissioned in 1987. In the year 1990 it was decided to install a juice factory at the Hattar in Khyber Baktun Khwa of Pakistan. Shezan international’s head office Located in Lahore, Pakistan. In Canada, target food, is the authorized distributer for all shezan product s. they carry all the export quality juices, James, Pickles, Chutneys, Sauces, Syrups and Squashes. The products of company include tetra pack juice, mango juice, pickles, custards, vegetables, jellies and James. The company distributes the products under the shezan brand name. Strong local name in the juice and drinks range. -Launched Shezan Orange -Launched Twist (nectar) 2003 Aggressive marketing campaign print, electronic -Shezan All Pure 2004 -No trial generation activates No consumer reward/loyalty CPs Available Packaging options  -Shezan All Pure  -Nectar  Twist
  • 19.
  • 20.
    SWOT Analysis OfShezan Juices Strengths: 1. Shezan has its own fruit form. 2. Shezan juices operate in market earlier than nestle juices. 3. Butter knowing the culture of country. 4. Shezan juices have best distribution channel in all over the Pakistan. 5. Offer good quality products especially nectars juices in market. 6. Shezan juices have good positioning in customer mind. Weakness: 1. Less product awareness in customer mind. 2. Rising manufacturing cost. 3. Inadequate human resources. Opportunities: 1. Shezan juices have great perception value in minds of customers while as Pakistan organization. 2. Increase juices market very fast. 3. The concentric diversification in different juices products. 4. Backward integration can use in juice products of company. 5. Decreasing economy condition. Threats: 1. There is strong competition in juices market. 2. Different strategies adopted by competitors Nestle in juices products. 3. New product advancement by different competitors. 4. Increase inflation rate (23.3% 2014). 5. Rising labor cost.
  • 21.
    SWOT Analysis ofNestle Juices SRTENGTHS: 1. Company images - Nestle company has a great image in the mind of people. Nestle company has worldwide reputation. 2. Quality conscious - Nestle produce a good quality product. It can’t compromise on quality. 3. Well-developed strategy - Nestle has recognizes there is a right time and place for their product, therefore, their strategy makes room for adjustments. 4. Market share - Nestle juices has a highest market share i.e 60% in juices market. 5. Good marketing skills and services - Nestle is now a days working on this concept because they want to increase their market share. They are providing quality products to the customers that include there services and products. 6. Brand strength - In Pakistan nestle has some very strong brands like Nescafe and Nestle Juice, Maggi Cerelac, Nestle water and these brands are almost generic to their product categories. 7. Research and Development - Research and development department keeps nestle in continuous knowledge about itself and competitors. It has a competitor advantage because many local juices have no research and development department. 8. Product innovation - The company have been continuously introducing new products thus expending its product offerings. 9. HR DEPARMENT - Nestle company has a strong HR department.
  • 22.
    WEAKNESS: 1. Storage ability- Nestle juice not store able for long time. Opportunities: 1. Support foreign investors - Government support foreign investors to invest in Pakistan. 2. Scientifically gas - This is great opportunities for nestle company. Because in coming future nestle take the benefits of uses the scientifically gas. 3. Changing social trend - Consumers in urban areas drink functional drinks on a regular basis as they increasingly and adopt western life styles, especially the younger-generation which is hugely influenced by the western media. Younger-consumers tend to follow western eating and drinking habits. They was an increase demand for functional drinks over the review period. 4. Health conscious - Increasing health and hygiene awareness among Pakistanis has greatly increase sales of fruit/vegetable. Both the government and the media have started health awareness campaigns to make Pakistanis reliance that consumption of fruit/juice is has essential and eating food. Fruit/juices are doing very well in both Urban and Rural areas. 5. Global hub - Since manufacturing of some products is cheaper in Pakistan than in other South East Asian countries. 6. Market growth - Juices market expends very fast. A new research proves that in future (2016) every person use 85.5 litters juices per year.
  • 23.
    7. Limited offersoptions in real fruits juices - Limited options in locally produced real fruit juices. THREATS: 1. Government regulation - They face problem if government employ taxes on them which force them to raise the price of their products. 2. Increase in competition - There is large competition in juices market. 3. Entry barrier - There are no many entry barriers so a large numbers of local juices inter in juices market. 4. Labour coast - Increase labour cost. 5. Inflation rate - Increase inflation rate very fast. In 2014 expected inflation rate 23.3%.
  • 24.
    Managerial Techniques To performwell; managers rely on four types of techniques;  Conceptual techniques  Interpersonal techniques  Technical techniques  Decision making techniques Conceptual techniques The ability to understand the relationship among the various tasks of a firm. Interpersonal techniques The interpersonal techniques necessary to communicate with customers and employee. Technical techniques The techniques to perform specific day-to-day tasks. Decision making techniques Techniques for using existing information to determine how the firm’s resources should be allocated.
  • 25.
    ANALYSIS OF DEMAND WhenNestle juices entered in the market its initial price was 20 rupees and its competitor Shezan was of 15 rupees. Consumers were demanding nestle juices as being multi-national company brand, whereas sheezan was domestic company’s brand. People prefer Nestle juice and at the same time demand of Sheezan lower down. As time passed, nestle continuously advertised its brand nestle juice. Nestle juice increased its reputation and quality among the people. On this stage, consumers good behavior towards nestle juices, nestle brought changes in its packaging style which attract more consumers input shifts in demand of nestle juices. Its price increase along with demand. They settled price 22 to 25 rupees per 250 ml tetra pack.
  • 26.
    As continuous demandof Nestle make realize Shezan to improve the quality of their products as for this they had taken step to bring changes in packing style and taste which differ from the previous one. The management decided to increase the price from 15 to 20 rupees. Actually its new packing looks consumer as a duplicate pack and failed in strategy to attract the customers. Buyers avoid to buy Shezan products. Nestles demand automatically jumped-up. The rightward shift of demand in
  • 27.
    Nestle juices hasgiven bonus by shezan because their ideas of changing in product failed. When the nestle realized that they are public’s first choice in market of juices then they had brought changes that mostly people like, that was improving and introducing new flavors of Nestle juices, like in Nectar shape in flavors of Red Grapes, Apple And Orange with new slogan 100% Real juices. These changes influences prices of Nestles juice 25 to 30 rupees.
  • 28.
    The improvement adoptedby management is liked by public and a good behavior of demanders towards Nestle juices put a rightward shift in demand.
  • 29.
    Managerial Techniques andSome Recommendations Techniques that can be applied to analysis demand. 1. Nestle as costly product then its other substitute By adopting these methods manager can analyze or increase their products demand more by reducing its price, but price can be reduced when its input cost become less and for this they have to decrease packing cost then its price can be reduced, after that it will be affordable for low income people. 2. Competitor Shezan is more demanded in rural areas By applying some techniques like this, the price of product should be according to the areas or to introduce new product for specially those areas with some low price and quantity but quality should remain same or promote more its brands there for gaining familiarity among the people of rural areas. 3. Change in its packing Make changes in its packaging, style and its packing as international standard. They should bring changes in its packaging time to time because it attract more to consumers. 4. Addition of new flavors Nestle should have to bring some new flavors in juices as to maintain its reputation. Because people’s are social animals and they always wants change and new something. 5. Improving taste As change in flavors, nestle has to bring some new changes in its taste along with the old taste. 6. Always being aware of competitors Nestle as leading juices brand but it should also have, keep a hawk eye on their competitors and their brands, consumers, prices, quality and their marketing or supply way. 7. Way to promote Nestle should have to set a strong advertisement sell, Via, T. v channels, magazines, sign boards and also through arranging music shows.
  • 30.
    CONCLUSION Nestle juice ismost demanded in Pakistan for being an international product and ensure public for healthy juice (food) and giving their competitors tough challenge in the market. Nestle always care for people’s want and according to demand they brings changes continuously in its products and make it better according to consumers expectations and sets a reasonable price which always match with demand. The price, as compare to of Nestle with shezan and other competitors, is much high because management is not ready to compromise on quality and input costs that maintain it as a pure juice. The management of Nestle can apply such techniques to increase its demand and value all over the country, being as costly product than other substitutes, for this they have to introduce new product with its low cost of packing and quantity. If somewhere demand of competitors is high then it should promote high advertisement for awareness among people t0 take full advantage. The management has to continuously make changes in flavor, taste and packing. The management should have to carry on the Nestle juice new slogan as in current 100% REAL and GOOD FOOD…GOOD LIFE.
  • 31.
    REFRENCES:  www.nestle.com.pk  www.cia.gov www.finance.gov.pk  www.nestle.com.  www.scribd.com  www.slideshare.net  www.shezan.biz  www.simbaentp.com/shezan  www.beveragedaily.com  ABDUL BASIT (Distributor Khairpur Mir’s)  HAQ NAWAZ (Distributor Naushahro Feroze)  SAFDAR ALI (Distributor Shahdadkot)  JAWAD AHMED (Distributor Shikarpur)  MUNEER AHMED (Distributor Sukkur)