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Acknowledgment

I hereby take this opportunity to thank Institute of business


and technology (BIZTEK) for providing me an opportunity to
do a research project on Nestle Milkpak.
I express my sincere gratitude to my mentor and guide,
Miss Duria Hassan who always provided me with necessary
inputs, guidance and direction to carry out this project. He
provided me access to different domains of knowledge from
where I collected inputs for this project.
TABLE OF CONTENT:

PURPOSE OF THIS REPORT:

 This report is to give a slight insight about what


customers really wants about Milkpak
 People prefer Nestle Milkpak
 What should be the future trend
 Is there any threat to the industry
 On the basis of survey conducted various findings and
conclusion have been explained after analysis.

RESEARCH PLAN:

• Data source:
Primary data
Secondary data

• Research approaches:
Survey has been conducted to gather the
primary data.

• Research instrument:
Questionnaire
DESIGN OF QUESTIONNAIRE:

Designed in a structured manner keeping in


mind all the basic steps for construction of a questionnaire

Sample size:
50 People from thefollowing areas
Makro
Tariq road

LITERATURE REVIEW:

Introduction to Nestlé Pakistan and Milkpak

Nestlé Pakistan Limited (NPL), formerly known as Nestlé


Milkpak Limited is a company that manufactures, processes
and sells food products and ancillary equipment. The food
products include dairy, confectionery, infant nutrition and
culinary products, coffee, beverages and drinking water. The
major brands include Milkpak UHT, Nestle Everyday, Lactogen
and Nescafe.
Milkpak was first introduced in the market by Milkpak Ltd. in
1981 and originated the packaged milk category by which they
pioneered tetra pack milk in Pakistan. The supply chain
involved collecting milk from rural areas across Punjab,
processing the milk through UHT (Ultra-High Temperature
Processing) treatment, and selling it to consumers in uniquely
colored triangular and rectangular packs designed to prolong
the milk’s quality.

It was a simple solution, but difficult in practice: importing the


stainless steel chilled containers required was prohibitively
expensive. By 1988, the company purchased 120 tons of milk
a day from 26,000 farmers.

However Milkpak’s “Milk Packs” were very well-received and


the brand soon became synonymous with quality milk. Its first
real competition came in the form of Haleeb, which introduced
distinctively blue tetra packs to the market in 1986.

Then in 1988, Switzerland-based Nestlé SA, acquired a share


in Milkpak Ltd and immediately began investing in milk cooling
tanks. Between 1988 and 1992, 100 milk tanks were installed.

1992 onwards, with full support from the Nestlé headquarters


in Switzerland, reorganisation of the milk collection operation
and the provision of agricultural technical assistance became
top priorities.

The investment paid off. Within a decade, Nestlé's purchase of


fresh milk had quadrupled, and the number of small farmers
selling milk to Nestlé tripled.

In 2008 the market share of Nestlé Pakistan in the dairy milk


category has been estimated at 40 percent.

Brand Image of and Consumers’ Attitude


towards Milkpak
The Consumers consider Nestle as the best quality product
manufacturer and the same is reflected in the introduction and
launch of Nestle MilkPak. It established its brand image very
soon and many other organizations later followed the same
pattern to introduce their brands in the same market which
has now become fiercely competitive.

MilkPak is maintaining its quality image and has been voted as


the best brand on the attribute of Quality. Familiarity has been
rated as the second most sought after feature and indicates
the superior quality of marketing and promotional
communications which are more directed towards consumers’
awareness of the benefits of packaged milk. Availability has
been rated as third in the sequence and definitely indicates
potential for improvement. Affordability has been graded as
last by consumer voting indicating consumers’ sensitivity to
frequent upward pricing of essential commodities.

Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from
Haleeb Foods) had led the dairy market in the world’s fourth
largest milk producing country for nearly two decades—without
any real sustained competition. Engro Foods, in contrast, had
only recently been established by Engro—a traditional giant in
Pakistan's chemical and fertilizer (yes,chemical and fertilizer)
industry.
Branding experts could not imagine how Olper’s could distance
itself from its parent company’s incredibly unappetizing,
chemical-laden, and non-edible roots. Yet, by the end of 2006,
sales for Olper’s Milk had reached Rs.1 billion (approximately
US$ 15 million) and in 2008, the brand has a market share of
close to 22 percent—second only to Milk Pak (estimated at 40
percent). The critics had to grudgingly accept that the new
entrant to the multi-billion rupee packaged milk category
meant business.
The packaged milk category was originated in 1981 by
(quaintly named) Milk Pak, which pioneered tetra pack milk in
Pakistan. The supply chain involved collecting milk from rural
areas across Punjab, processing the milk through UHT (Ultra-
High Temperature Processing) treatment, and selling it to
consumers in uniquely colored triangular and rectangular
packs designed to prolong the milk’s quality. Milk Pak’s “Milk
Packs” were very well-received and the brand soon became
synonymous with quality milk. Its first real competition came
in the form of Haleeb, which introduced distinctively blue tetra
packs to the market in 1986.

Milk Pak, however, further grew in stature when Nestle used it


to break into Pakistan's marketplace. By 2006, the dairy milk
category was growing at 20 percent annually, and Milk Pak and
Haleeb were well-entrenched brands with distinctive colors and
brand promises of providing high quality, natural and healthy
milk. Milk Pak was identified by its green and white packaging
—the colors of the country—and offered a brand backed with
the strong equity of Nestle, coupled with its own traditional
heritage. Haleeb was recognized as the blue brand, and
professed to have the "naturally thickest" milk. With the
market dominated by two strong, familiar, and widely
respected brands, the marketplace appeared completely
impervious to newcomers.

Milk Pak, however, further grew in stature when Nestle used it


to break into Pakistan's marketplace. By 2006, the dairy milk
category was growing at 20 percent annually, and Milk Pak and
Haleeb were well-entrenched brands with distinctive colors and
brand promises of providing high quality, natural and healthy
milk. Milk Pak was identified by its green and white packaging
—the colors of the country—and offered a brand backed with
the strong equity of Nestle, coupled with its own traditional
heritage. Haleeb was recognized as the blue brand, and
professed to have the "naturally thickest" milk. With the
market dominated by two strong, familiar, and widely
respected brands, the marketplace appeared completely
impervious to newcomers.

RESEARCH RESULTS:

1. Do you buy open milk or tetra pack?

o Open milk
o Tetra pack milk
o Combination of both

24%
28%

OPEN MILK

TETRA PACK
MILK
COMBINATION
OF BOTH

48%

This shows that out of 50 sample size half of the people


like tetra milk

2. If you buy tetra milk then do you prefer Nestle MilkPak?


o Yes
o No
o Up to some extent

17%

YES

NO

23%
60% UP TO SOME
EXTENT

This shows that 60% of people like MilkPak who use tetra
milk pack.

3. Are you satisfied with MilkPak quality?

o Yes
o No

9%

YES
NO

91%

This shows that 69% of people are satisfied from MilkPak


quality

4. Is there a need of improvement in MilkPak?

o Yes
o No

9%

YES
NO

91%

This shows that few people want improvement in MilkPak

5. Is the taste of MilkPak good as compared to other tetra


pack milk?

0%
23%
31%
very bad
Bad
Moderate
Good
Very Good

46%

This shows that taste of good milk is better than the other
tetra milk.

6. Is the price of Milk Pak reasonable?

o Yes
o No
14%

YES
NO

86%

This shows that price of MilkPak is reasonable and people


are willing to buy on this price.

7. Is MilkPak is easily available to you?

o Yes
o No

14%

YES
NO

86%

This show that Milkpak is easily available in market

8. Which tetra pack you will buy if MilkPak is not available to


you?
o Olper’s
o Haleeb
o Good milk
o ANY , Please specify______________________

14%

41% OLPER'S
14%
HALEEB
GOOD MILK
ANY OTHER

31%

This shows that people most like Olper’s in absent of MilkPak

CONCLUSION:

From our research we draw the conclusion that overall Nestlé


MilkPak is doing quite well in the market. It has a good image
among the consumers. It is renowned for its quality and being
the pioneer of safe and good quality milk. It is selling well. The
marketing of it is also being done quite well so there is no such
need for Nestlé to do anything else.

They also should be careful and not underestimate Olper’s as it


has managed to provide stiff competition to MilkPak and
Haleeb who are well established even though it was launched
some time back.
BIBLIOGRAPHY:

http://www.nestle.pk/brands/nestle-milkpack.aspx

http://www.brandsaward.com/2008/survey-nestle-milk-
pak.html
www.scribd.com/doc/10125783/Marketing-Research-Report-
on-Watch-industry?autodown=ppt

http://www.brandchannel.com/features_effect.asp?pf_id=445

http://www.scribd.com/doc/13352395/MBA-Marketing-Project-
Report-on-Westside?autodown=doc

Search engine used www.google.com


APPENDIX:

QUESTIONNAIRE
PREFERENCE OF NESTLE MILKPAK

1. Do you buy open milk or tetra pack?

o Open milk
o Tetra pack milk
o Combination of both

2. If you buy tetra milk then do you prefer Nestle Milk Pak?

o Yes
o No
o Up to some extent

3. Are you satisfied with Milk Pak quality?

o Yes
o No
4. Is there a need of improvement in Milk Pak?

o Yes
o No

5. Is the taste of MilkPak is good as compared to other tetra


milk pack?

o Very bad
o Bad
o Moderate
o Good
o Very good

6. Is the price of Milk Pak reasonable?

o Yes
o No

7. Is Milk Pak is easily available to you?

o Yes
o No

8. Which tetra pack you will buy if Milk Pak is not available
to you?
o Olper’s
o Haleeb
o Good milk
o ANY , Please specify______________________

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