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Nestle is a well known company all over the world. It fulfills the needs
of every age group. The famous products of Nestle are Chocolates, Cosmetics,
Milk Powder etc. Nestle make joint venture with Milkpak and serves the
consumers under the brand name of Milkpak Nestle. The head office of
their products.
international market of Nido are Millac and Dano. There is no local market
competitor of Nido. Nido has the excellent brand image in the minds of the
people. Nido is in the growth stage of their product life cycle. The price of the
Nido is according to its perceived quality. Nido have superb promotion mix
system. This report helps the readers to understand the marketing strategies
of Nido.
PAGE # 1
• ACKNOWLEDGEMENT
As the requirement of our course “Strategic Management of Marketing” we
We are greatly indebted to our resource person “Mr. Shahzad Alam” whose help
manner. His comprehensive teaching style also enabled us to understand the subject
of Marketing. Topics discuss with him would always remain in our minds.
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• INTRODUCTION OF THE
COMPANY NESTLE
NESTLE INTERNATIONAL
Nestle is the name which is very respectable among international and
multinational firm. NESTLE was born in the green plains and blue streams
its first product was Chocolate. The company has a 126 years old history and
milk, sweets, chocolates, cosmetics and many other products. In simple words
BRANCHES
product in more than 125 countries and the sales of the Nestle is among
NESTLE IN PAKISTAN
East Asia. For this motive in mind the first signed a venture with Indian
PAGE # 3
Milkpak is a company of Wazir Ali Group and is known for producing
finest quality products like Milkpak Dairy products e.g. Milkpak Milk,
Butter, Desi ghee, Cream etc. and also a market share leader in juices e.g.
than the company is serving consumers with the name Milkpak Nestle.
BOARD O F DIRECTORS
Syed Yawar Ali (Chairman)
A UDITOR S
(Chartered Accountant)
• COMPETITORS
PAGE # 4
• LOCAL MARKET COMPETITORS
NIDO has no local market competitors as there is no good powdered milk
locally produced available in the market and NESTLE MILKPAK is the only
firm producing good quality powdered milk. Secondly NESTLE is the only
firm producing powdered milk and is market share leader in all respects.
INTERNATIONAL COMPETITORS
At the time when NESTLE introduced NIDO in the Pakistan market it was
MILLAC
RED COW
SAFETY
DANO
KLIM
Major competitors among these were Millac and Dano at that time but span
of time NIDO with its quality overcomes them and become a market share
leader.
PAGE # 5
1)Creamy milk chocolate. 2 )Milk Sugar Free
PAGE # 6
• INTRODUCTION OF THE PRODUCT
DEFINITION
Product is a set of tangible and intangible attributes including
INTRODUCTION
Nido is not a new product in Pakistan. It was available in imported tin
packs from 1974, than the demand for Nido increased day by day and in 1989
the plant with the collaboration of Milkpak started working and the locally
and 3.5% in liquid form which qualifies it as a full cream milk powder. It is
PAGE # 7
INGRIDIENTS
NUTRITION INFORMATION
AVERAGE COMPOSITION PER 100 Gms PER SERVING
PAGE # 8
Calcium 930 Mq 302 Mq
OLD SIZE
When Nido was introduced in Pakistan the following sizes were
consumers are requesting for bigger packs of Nido. Milkpak Nestle fulfilling
SIZE R.PRICE
T.PRICE.
1 Kg Rs.250.00 Rs.227.50
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FUNCTIONS OF THE PRODUCT
Nido being full cream powder milk is a best substitute
for the fresh milk and can perform all the functions of the fresh milk. As the
fresh milk cannot be preserved for long and spilt milk is useless so the trend
is switching towards milk powder which is hygienic and can be preserved for
a long period.
2. It can be used for making desserts e.g. Kheer, Raberri, Firney, Rasmalai,
Khoia etc.
4. It is instant milk.
BRANDING
A brand is a name, term, symbol and / or special design that is
The brand name of the product is Nido. It itself does not mean
anything. The product has also its own grand mark. Its brand name and
brand mark are legally protected. The product is marketing under the
remember and thus has positive effect upon the marketing of the product.
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PACKAGING
It can be defined as all the activities of designing and producing the
to look. At the same time, there are three reasons for packaging:
sales persons.
• PRICE
They all are full cream milk powdered and with the arrival of NIDO
they start facing out and NIDO took there place and became market share
leader although NIDO has higher price then all other milk powders.
the market.
PAGE # 11
5. NIDO is offered in three different sizes to meet local competitive
(Nido Milk)
• PRICING
• MEANING OF PRICING
Price is the value placed on goods and services. Price is the
IMPORTANCE OF PRICING
Price is considered to be the key activities within the free enter price
system. A products price influences wages, rent, interest and profit. That is
the price of the product influence the price paid for the factors of production.
represents the firms competitive position and its market share. Its price has a
considerable bearing on the Nestlé’s revenue and net profit because it is only
PAGE # 12
RELATIONSHIP TO PRODUCT QUALITY
Consumers rely heavily on price as indicators of a products quality
especially when they must make purchase decision. The higher price of Nido
PRICING OBJECTIVES
The objectives of Nestle for pricing Nido are as follows:
• To maximize profit.
2. Status quo-oriented:
• To stabilize prices.
• To meet competition.
they can set their pricing goals more independently of competition that can
other firms in the industry. Nestle has priced Nido to achieve a certain
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percentage return on its sales. Nestle has settled the price of Nido so that it
TO MAXIMIZE PROFIT
According to the economic theory or business practices there is
for Nestle is far more beneficial to it and also to the public if it is practiced
over the long run. To do this Nestle sometimes had to accept short run losses.
STATUS QUO-GOALS
The primary intention of Nestle is to adopt these goals to avoid any
form of price competition. Major reason for seeking the price stability is to
avoid price wars. This pricing policy gives the Nestle management an easy
DEMAND SCHEDULE
Different prices for Nido will produce different level of demand. The
inversely to demand.
PAGE # 14
SELECTING A PRICING METHOD
Nestle has adopted a cost plus pricing method for Nido. In which a
certain markup is added to the cost of the product. Nestle follow the popular
markup pricing on cost. Nestle charge a 15 % profit on the total cost of Nido.
Company has cut down the total cost of Nido by cutting down the
packing cost of Nido as in imported Nido tin is used which is expensive but in
locally manufactured Nido soft packing i.e. packing Nido into a sachet
FINAL PRICE
This is the price of Nido which is in agreement with different people
department.
The final price for Nido is Rs. 130 per 1000 gms. This price satisfies the
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PRICE ADJUSTEMENT STRATEGIES
GEOGRAPHICAL PRICING
Nido has a vast geographical market. In order to cover the long distances
and transportation it has to adjust its price. Therefore, it adjusts its price
transportation costs are measured and a uniform cost is charged from all the
customers to cover the average transportation cost. So in this strategy all the
customers of Nido will pay the same cost irrespective of their location.
• PLACING
NIDO has no individual distribution system. It is pushed
with other company’s product line. Company has appointed its distribution
KARACHI
MULTAN
PAGE # 16
Near Al-Shifa Poly Clinic, Chungi No. 1 Multan, Pakistan.
Phone: 515061
LAHORE
Phone : 5870887
ISLAMABAD
PESHAWAR
e.g. Wholesalers are agents of the company and they take commission to sell
Improve the displays and check the stock position. The Sales officer prepare a
daily sales report and also at the end of the month and submit it to the Head
office in Lahore. These Sales officers are guided by a Regional Sales Manager
PAGE # 17
given above. There are four distributors in Lahore and four Sales Officers
distributor.
• FUNCTIONS OF DISTRIBUTION
CHANNELS
The company’s distribution channel provides the following functions
1. Time Utility
2. Place Utility
6. Helps in negotiation.
INTENSITY OF DISTRIBUTION
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They are of three types:
1. Intensive distribution
2. Selective distribution
3. Exclusive distribution
• PROMOTION
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Promotion is the element in an organization marketing mix that
serves to inform persuade and remind the market of the organizations and /
or its products.
PROMOTIONAL MIX
The promotional mix is the combination of the personal selling,
1. ADVERTISEMENT
Advertisement is an essential part of moderate ad so much that it
2. SALES PROMOTION
It is designed to supplement advertising and coordinate personal
selling, Short term incentives are given to encourage quick sales e.g.
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appreciation about milk powder so that’s why MILKPAK NESTLE is doing
started and some ads are placed on TV but this is not done on permanent
getting results to its wishes, but now in the near future company has many
PROMOTIONAL BUDGET
Promotional budget is totally based on the budget available for
to promote NIDO.
healthy increase. The market share has improved because of the efficient staff
of MILKPAK.
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NESTLE is an innovative firm it keeps on bringing changes in NIDO
according to the changing trends. When NIDO was introduced it was a milk
powder which could be dissolved only in hot water, now NIDO is an instant
imported one is prepared by cows milk, so local NIDO is less expensive and
NIDO
NIDO is full cream powdered milk and is first instant milk in Pakistan
due to its taste and quality people are switching towards it. It has 28 % fats
BRAND
The brand name NIDO is easy to spell, pronounce and remember and
PACKAGIN
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NIDO has a beautiful packaging in the contrast of yellow, red and
really works as a silent sales person and has helped in increasing sales of
NIDO.
DISTRIBUTION
MILKPAK NESTLE has a good distribution plan for NIDO. It is
PROMOTION
The company is really trying to increase its promotional programs
among children by giving gift schemes, e.g. story books, geometry box, color
pencils etc.
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• CONCLUSION
MILKPAK NESTLE has started well and look forward to
a future of testing challenges and rewards. NIDO is going well and will
do on increasing its sales and will add to the reputation of the company.
The potential for growth of NIDO is bright but not immediate. The
The company has good hopes with NIDO and it is coming up to its
expectations.
REFRENCE:
Phone # 0300-4349374,0425117033.
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