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In the Name of Allah the

All Merciful, the Most


Merciful.

Acknowledgment:
We are very grateful to many people
for their help and encouragement
during the project & writing of this
report. We especially want to thank
Sir M. Mubashir Hussain A wan for
giving us & helping us in this project.

Good Food, Good Life


TABLE OF CONTENTS:
MISSION STATEMENT

STORY OF NESTLE

DYNAMIC EXPANSION

BRANDS OF NESTLE

BOARD OF DIRECTORS

AUDIT COMMITTEE

NESTLES OBJECTIVES

MARKETING AND SALES

MARKET POSITION

NESTLE EVERYDAY

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RESEARCH AND DEVELOPMENT

MARKETING MIX

PROBLEMS FACED BY NESTLE

RECOMMENDATIONS

SWOT ANALYSIS

FUTURE OF NESTLE

NESTLE STORY:
Nestle Pakistan is a subsidiary of nestle S.A a company of Swiss origin
headquartered in Vevey, Switzerland. It is a food processing company,
registered on the Karachi and Lahore stock exchanges. For 5 years in a row,
the company has won a place among the top 25 companies of the Karachi
stock exchange.

Headquartered in Lahore the company operates 5 production facilities. Two


of its factories in Sheikhupura and Kabirwala are multi products factories.
One factory in Islamabad and 2 in Karachi produce bottled water. Through
its effective marketing and vast sales and distribution network throughout
the country, it ensures that its products are made available to consumers
whenever, wherever and however.

In the line with Nestls global philosophy, Nestle Pakistan is proud of its
commitment to excellence in product and safety and quality and providing

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value and services to its consumers. On the social front it is very responsible
when it comes to environmentally sound business practices and corporate
social responsibility.
Nestle Pakistan operates in many ways but people products and brands are
the main flag bearers of the companys image.

INTRODUCTION TO
NESTLE:
Today, Nestle is the world leading Food Company. Nestle
headquarters is in Switzerland. Its international R&D network supports the
products made in more than 500 factories in 86 countries. The Nestle
factories are operating in the region of:

1. Africa
2. America
3. Asia
4. Europe
5. Oceania

Being a company dedicated to food from the beginning, Nestle


remains sensitive to culinary and eating habits, and responds to specific
nutritional problems, whilst also setting and matching new trends such as
growing out-of-home consumption and caring about the well being of its
consumers.

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MEANING OF NESTLE:
Henri Nestl endowed his company with the symbol derived from his name.
His family coat of arms, the nest with a mother bird protecting her young,
became the Company's logo and a symbol of the Company's care and
attitude to life-long nutrition. The Nestl nest represents the nourishment,
security and sense of family that are so essential to life.

HISTORY OF NESTLE:
1866 -1905

In the 1860s Henri Nestl, a pharmacist, developed a food for babies who
were unable to breastfeed. His first success was a premature infant who
could not tolerate his mother's milk or any of the usual substitutes. People
quickly recognized the value of the new product, after Nestl's new formula
saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in
much of Europe.

1905-1918

In 1905 Nestl merged with the Anglo-Swiss Condensed Milk Company. By


the early 1900s, 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, Nestl's
production had more than doubled.

1918 -1938

After the war Government contracts dried up and consumers switched back
to fresh milk. However, Nestl's management responded quickly,
streamlining operations and reducing debt. The 1920s saw Nestl's first
expansion into new products, with chocolate the Company's second most
important activity

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1938 -1944

Nestl felt the effects of World War II immediately. Profits dropped from
$20 million in 1938 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. Nestl's production and sales rose in the
wartime economy.

1944 -1975

The end of World War II was the beginning of a dynamic phase for Nestl.
Growth accelerated and companies were acquired. In 1947 came the merger
with Magi seasonings and soups. Crosse & Blackwell followed in 1950, as
did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification
came with a shareholding in L'Oral in 1974.

1975 -1981

Nestl's growth in the developing world partially offset a slowdown in the


Company's traditional markets. Nestl made its second venture outside the
food industry by acquiring Alcon Laboratories Inc...

1981 -1996

Nestl divested a number of businesses1980 / 1984. In 1984, Nestl's


improved bottom line allowed the Company to launch a new round of
acquisitions, the most important being American food giant Carnation.

1996+

The first half of the 1990s proved to be favorable for Nestl: trade barriers
crumbled and world markets developed into more or less integrated trading
areas. Since 1996 there have been acquisitions including San Pellegrino
(1997), Spillers Pet foods (1998) and Ralston Purina (2002). There were two
major acquisitions in North America, both in 2002: in July, Nestl merged its
U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn
acquisition was announced of Chef America, Inc.

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Nestle In Pakistan:
Nestle have been serving Pakistani consumers since 1988, when our
parent company Switzerland based on Nestle first acquired share in
Milkpak.
Nestle acquires 40% share in Milkpak.
In 1990, Sheikhupura factory starts the production of Nido Milk
Powder cereals; a plant is acquired at Kabirwala.
1n 1992, Nestle takes over the running of company and begins to
develop its Milk collection network.
In 1996 Milkpak is renamed to Nestle Milkpak, Ltd.
In 1997, the Kabirwala plant becomes a fully owned unit of Nestle
Pakistan.
1n 1998, Nestle Milk collection system in Punjab matures and
company is able to buy all its Milk from Formers instead of relying on
contractors.
In 2005, Nestle Milkpak Ltd. Is renamed again Nestle Pakistan.

Nestls Vision:
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At Nestle, we believe that research can help us to make better food, so
that people live a better life.

Mission Statement:
Nestle is dedicated to providing the best foods to people
throughout their day, throughout their lives, throughout the
world. With our unique experience of anticipating
consumers' needs and creating solutions, Nestle contributes
to your well-being and enhances your quality of life.

Nestle is not only Switzerland's largest industrial company, but it is also the
World's Largest Food Company. The mission statement emphasizes on the
fact that Nestle products are available in nearly every country around the
world. Wherever one may live, only Nestle can provide the best and most
reliable food and beverage products to meet his/her needs throughout the
day, throughout the life. Especially, people on the move want to be able to
find good food wherever they are, whatever the time of day. They are often
reassured that they will find well-known brands out of home.
This statement also reflects the image of high quality products that
Nestle offers. Nestle has the advantage that it offers caterers, fast food chains
and other restaurants a complete range of high quality ingredients, base
products and meal components, as well as leading consumer brands such as
Nescafe. Quality is the cornerstone of the success of the Nestle Company.
Everyday, millions of people all over the world show their trust in the
company by choosing Nestle products. This trust comes from a quality
image that has been built up for over a century. Therefore, the quality of the
products ultimately enhances the quality of the consumers life.
In addition, the mission statement declares that Nestle has the ability
to anticipate consumers needs and create solutions. Nestle has

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proven this ability a number of times by introducing new products that were
required by consumers. Especially, the launch of Nestle Pure Life in
Pakistan proves the accuracy of this fact. In Pakistan, there was a need for
safe and healthy drinking water and Nestle responded to this consumer need
by introducing Nestle Pure Life.
Finally, it is quite evident that the organization has actually
implemented its mission statement in the business practices that it carries
out. Also, the mission statement has been an important guideline for any
SBU that the firm has started and this is portrayed by the success that each
SBU of Nestle enjoys.

How Nestle Define Marketing:


Building customer relationship based on customer value and satisfaction is
at the very heart of modern marketing. The two fold goals of Nestle
marketing is to attract new customers by providing superior value and to
keep and grow the current customers by delivering satisfaction. Nestle
defines marketing as:

A social and managerial process


where by individual & groups obtains
good food and good life through
creating and exchanging products and
values.

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Nestls Business Principle:
Nestl's business objective is to manufacture and market the
Company's products in such a way as to create value that can be
sustained over the long term for shareholders, employees,
consumers, and business partners.
Nestl does not favor short-term profit at the expense of successful
long-term business development.
Nestl recognizes that its consumers have a sincere and legitimate
interest in the behavior, beliefs and actions of the Company behind
brands in which they place their trust and that without its consumers
the Company would not exist.
Nestl believes that, as a general rule, legislation is the most effective
safeguard of responsible conduct, although in certain areas, additional
guidance to staff in the form of voluntary business principles is
beneficial in order to ensure that the highest standards are met
throughout the organization.
Nestl is conscious of the fact that the success of a corporation is a
reflection of the professionalism, conduct and the responsible attitude
of its management and employees. Therefore recruitment of the right
people and ongoing training and development are crucial.
Nestl continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.

DYNAMIC EXPANSION :
The history of Nestle includes the development of many different
products as well as acquisitions, mergers and the purchasing of shares in
companies, mainly abroad. Over the course of the years, this enabled it to

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broaden its range of products and diversify its operations, while at the same
time strengthening the economic foundations of the company. Amongst the
most important acquisitions were Carnation in Los Angeles (milk, culinary
products and pet foods) and more recently Row tree Mackintosh in York
(chocolate and confectionery), Biotin in Perigee (pasta) as well as Perrier in
France (mineral water). Nestle, which does 98% of its business outside
Switzerland, also has interests in non-food sectors, in cosmetics (a large
share holding in L'Oreal) and ophthalmic products (acquisition of Alcon
Laboratories Inc.) while continuing to give priority to food products.

Marketing Mix:
Marketing Mix is defined as a set of controllable tactical marketing tools
that firm blends to produce the response it wants in the target market. The
marketing mix consists of every thing the firm can do to influence the
demand for its products. The many possibilities can be collected into four
groups of variables known as the four P's that are as follows:

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1- PRODUCT:
Product stands for goods and services that the company offers to target
market. Nestl kit Kat is in four sizes including K.K Chunky, while Polo is
in three sizes. The shape and the color of the Kit Kat and Polo are quite
attractive for the customers. The labeling, packaging of the Kit Kat and Polo
includes the Nestl brand and logo. The packaging includes an expiry date
and time along with a manufacture date. Second part of labeling includes the
quantity of product in grams along with ingredients and contents of
chocolates and candies.

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BRANDS IN PAKISTAN:

I. DAIRY PRODUCTS
NESTLE MILKPAK UHT MILK

Launched in 1981, it has become synonymous with quality milk. Backed by


a very strong brand name, aggressive marketing and distribution plans,
consistent quality and availability through out the year, MILKPAK UHT has
been extremely successful. In September 1999, MILKPAK UHT milk was
launched as NESTLE MILKPAK UHT MILK. NESTLE MILKPAK UHT
MILK is available in three pack sizes of 1000, 500 and 250 ml.

MILKPAK BUTTER
A continuous butter-making machine was commissioned at Kabirwala
factory in the year 2000 to produce high quality cultured butter. This new
butter was an improvement upon the earlier product and carries Nestle
branding that endorses its superior quality. It has an excellent taste and
aroma and is easy to spread.The new NESTLE BUTTER is available in two
pack sizes of 200g and 100g in new attractive packaging.

NESTLE PLAIN YOGURT

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Launched in November 2000 in Lahore, NESTLE Plain Yogurt is the latest
addition to Nestle Milkpak's dairy family. Its unique 'Stay Fresh seal and a
21-day shelf life gives the brand a formidable competitive advantage. The
brand provides valuable access to future product launches in the chilled
product category through a dedicated chilled distribution. In a very short
time the brand has gained a substantial market share. Through future
expansion into markets other than Lahore and a strong marketing and sales
support, NESTLE Plain Yogurt will undoubtedly grow into a strong brand
and, in time, will achieve the status of market leader.

MILKPAK UHT CREAM

MILKPAK UHT CREAM was introduced under the MILKPAK brand in


1986. It is available in 200-ml pack size in an attractive slim pack. The
consumer trust in the brand name and the product has ensured its dominant
share in the cream category.MILKPAK CREAM was also introduced in an
economical 1000ml pack size in the year 2000. This SKU has been
developed for Food Services to cover institutions using large quantities of
fresh cream.

MILKPAK DESl GHEE


MILKPAK DESI GHEE was introduced in 1986 in tin packaging. The
packaging was later changed to Tetra Pak. However, in line with the current
market trend, MILKPAK DESI GHEE was relaunched in 1Kg tin packaging
in the year2000. The product was also introduced in 16kg tin packing to tap
the huge potential of loose desi ghee.

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NESTLE EVERYDAY

To target the massive potential offered by the tea-whitening segment,


NESTLE EVERYDAY tea whitener was launched in 1992. Supported by
aggressive marketing using multi-media activities, focused distribution with
sampling drives and excellent consumer acceptance, the brand has shown
strong growth and holds good promise for the future.

NESTLE NIDO

NESTLE NIDO has been present in the Pakistan market since early 70's and
on account of the consumer confidence in its quality it has become a pillar of
Nestls success. Local production commenced in1990 and within a short
time the brand achieved market leader status in the full cream milk powder
category. Made from very superior quality milk and with the addition of
vitamins A and D, NESTLE NIDO is the best quality milk for growing
children. The brand has now launched a low unit priced SKU that offers half
a liter of quality milk at a very affordable price. NESTLE NIDO is well on
its way to becoming a mega brand.

II. CHOCOLATE DRINKS

MILO POWDER

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To provide convenience to consumers, NESTLE MILO was launched in its
new 130gm. SKU in an attractive airtight jar in February2000. This was
done with a view to bring our packaging in line with the industry practice of
making milk fortifiers and modifiers available in jars and tins and to reverse
the trend of consumer preference for imported MILO or similar products
over local MILO. Consumer response to the new initiative has been very
positive.

MILO RTD

To cater for consumer convenience, MILO RTD (ready to drink) was


launched in 1995 and is now available in an attractive 180ml slim pack.
Popular with all age groups, especially among the growing segment of
nutrition conscious consumers, it is an excellent substitute for cold drinks.

III. COFFEE
NESCAFE CLASSIC
NESCAFE, Nestls international flagship brand, is locally repacked and
marketed in 2gm. and25gm. Sachet, 75gm. bottles and 500gm. Soft packs.

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The brand enjoys a special position in the country's coffee consuming
segment.

NESCAFE FROTHE

NESCAFE Frothe (Original), a premix in 18gm. single serve sachet, was


launched in January 2000. The product profile was developed through
consumer research and was accordingly offered as a sweet, creamy and
foamy coffee. Encouraged by extremely good consumer response to this
cappuccino style coffee, French Vanilla and Mocha flavors were introduced
in November to offer a wider choice and to enhance the young and
fashionable image of this mixes category.

NESCAFE FRAPPE
To promote summer consumption of coffee and to change consumer
perception that coffee is only a winter beverage, NESCAFE Frappe was
launched in June 3000. This iced, creamy, ready-to-drink coffee in180ml
slim pack was positioned to appeal to the youth and gain a strong share from
other summer beverages. The launch was extensively supported by
promotional programs in major towns and the product is fast gaining in
popularity.

IV. FRUIT DRINKS


FROST

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A well-known brand, FROST was introduced in 1986 and has the largest
share of the countrywide market. Positioned as a cold drink and alternate to
cola drinks, its strength lies in the convenience attached to its usage.

NESTLE JUICES

Encouraged by the consumer response to NESTLE ORANGE JUICE 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 to gain further.

V. DIETETIC & INFANT PRODUCTS

LACTOGEN

LACTOGEN 1 and LACTOGEN 2 are infant and follow-up formulae


launched in 1991 and are available in two sizes. The brands provide both
affordability and quality.

CERELAC

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Launched in 1989, CERELAC is the dominant player in the growing infant
cereal market. Available in 5 flavors, the brand provides balanced nutrition
to infants from 4 months onwards

NESTLE RICE
An affordable starter weaning cereal, NESTLE RICE offers the flexibility of
preparation with a variety of meals. Gluten free, the brand is available in 125
gm. packs and is specially suited to the needs of infants from 4 months
onwards. It was launched in 1994.

NESTLE WHEAT

NESTLE WHEAT is a wheat-based infant cereal without milk, for infants of


4 months and above. It was launched in 1997 and is available in packs of
125 and 250 gm.

NESLAC

NESLAC is a growing-up milk, formulated specially for 1 to 4 year olds. It


contains just the right balance of proteins, calcium, iron, vitamins and
essential minerals in order to cater to the nutritional needs of a growing child
during this special age. The product was launched in 1994.

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VI. CULINARY PRODUCTS

MAGGI 2-MINUTE NOODLES

Fast to cook, good to eat - MAGGI 2-MINUTE NOODLES were launched


with local production in 1992 and in doing so Nestle pioneered the category
of instant noodles in Pakistan. MAGGI 2-MINUTE NOODLES have special
appeal for children, are fun to eat and offer a range of interesting flavors,
namely: Chicken, Masala, Chilly and Chatkhara. Affordably priced and
backed by focused marketing activities, MAGGI NOODLES have shown
good progress in 2000.

MAGGI COLD SAUCES

Nestle entered the Cold Sauces' category in 1999 with the launch of
MAGGI Ketchup, MAGGI Mirch Maza and MAGGI Khatti Meethi - the
first Imli sauce in Pakistan. The innovative taste of Khatti Meethi together
with the more traditional tastes of Ketchup and Mirch Maza, were received
well by the consumers.

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Other Brands Of Nestle:
Quality is an essential ingredient in all the Nestl brands and also Nestl
brands maintain nutritional balance in a fast pace world, that is why people
around the globe choose. The detail of the Nestl brand is as follows:

Baby foods (Nestl Cerelac, NAN)

Breakfast cereals (Nestl Cereals)

Dairy products (Milkpak, NIDO, Nespray, Nestl Yogurts, Everyday)

Ice-creams (Movenpick, Dreyers)

Chocolate confectionary (Kit Kat, Smarties, Toffo)

Beverages (Nescafe, Milo, Nestl juices)

Food service (Nestl Jumbo Bottle)

Prepared foods (Maggi, Powered Soups)

Bottled water ( Nestl Pure Life, Nestl Aquarral)

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Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow,

Felix, Alpo)

Pharmaceuticals (Ophthalmic drugs, lens-care solutions & optical

surgical Instruments)

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2- PRICE:
The amount of money charged for a product or service, or sums of the values
that consumers exchange for the benefits of having or using the product or
services. The price of Nestl Kit Kat and Polo varies increases with the
increase in its size.

3- PLACING:
Placing stands for company's activities that make the product available to the
target consumer. Nestl' distribution is using the direct distribution channel
to supply confectionary products weekly to the retailers.

4- PROMOTION:
Producing a quality product, pricing it attractively and making it available
for the target consumer is not the only problem companies need to solve.

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Modern era is the era of communication with customer, assuring customer
satisfaction, demands for personal and non-personal communication with the
target customer to build a relationship with them. In an area-storming
activity, giving out products free, gift hampers, attracts new customers; kites
depending on the season (for existing and potential customers) are given.
The basic purpose is to explore the area that is being unexposed and to bring
awareness in the people.

Questionnaire:

PRODUCT:
Q: When was Nestle Instant Milk launched in the market?
A: Nestle first launched its powder milk in the market in 2003 and then
came the liquid powder.

Q: W hat are the specific features of the product that makes it different from
other similar products present in the market?

A: Nestle has introduced the milk powder which outshined others because of
its great taste, refrigeration, ready to drink, less volume, more stable shelf
life.

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Q: Is the product manufactured locally or imported?
A: The entire production of the Nestle Everyday is carried out in Pakistan at
Sheikhupura and Kabianwala.

Q: What is the role of Research and Development department in the


development of the product?
A: At Nestle the Research and Development department is called as the
APPLICATION GROUP. No other company matches the R&D presence
of Nestle. No other company dedicates so many human and financial
resources to R&D as Nestle.

Q: Is the technology in making the products also local?


A: No the technology is imported and is latest.

Q: Did Nestle made any changes in the product or its manufacturing process
since its launch?
A: Yes, the factory mil powders spray drying capacity was doubled in 1999
with commissioning of new evaporator.

Q: When Nestle launched the product, do its sales excel or fell short of the
company sales targets?
A: the actual target is a companys secret that will not be disclosed. But we
received an overwhelming acceptance and liking of the product.

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Q: Is Nestle instant milk good for health; is it according to international
health standards?
A: Over many years companys primary concern has been to improve the
quality and volume of milk for UHT processing and other milk based
products.

Q: What is the target market of product?


A: The target market of the product is definitely he tea drinkers who have a
choice and capacity for the best taste.

Q: Did the company ever have some problems with the product?
A: There was a problem of segmentation but it was quickly taken into
notice and the problem was readily removed.

Q: Did the company have any special concept behind launching the
product?
A: It is designed to be used in general but it is popular mostly in offices and
cafs for tea purposes.

Q: Did Nestle receive any complaints about the product ever?


A: yes, but now the error rate has been reduced to zero.
2004 --------------------------- 3 complaints
2005 --------------------------- 6 complaints
2006 --------------------------- 4 complaints
2007 ---------------------------- 2 complaints

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Q: What is the current position of the product in the market?
A: Well the product is matchless in quality and has no match. It has a
sufficient name and place in the market.

Q: Do the company donate any money from its product sales?


A: On the basis of profit margin Nestle seldom make donations o non-
profit organizations and charitable institutions.

Q: How do you make sure that the cows which are milked are disinfected?
Nestle has its own diary farms from which we collect milk and we have a
special team of veterans who regularly inject animals against epidemic
diseases.

Q: what about the packing of the product, any specifications?


A: Yes the Nestle logo is a must, other than that the product is made
available in convenient sizes and attractive colors. The WHITE color is the
chief color to depict the color f milk.

Q: Who are the major competitors of product?


A: competitors are Olpers (Angro) and Halib milk.

Q: Who are the industrial consumers of Nestle Everyday instant milk?


A: PIA, MC-DONALDS and PEARL CONTINENTAL Pakistan.

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PRICE:
Q: How do you set prices for your products?
A: We set prices of our own because Nestle is the trend setter in the market.

Q: What is the profit margin of the product?


A: The profit margin is usually high because of the high quality of the
product.

Q: Does the prices fluctuate or they remain stable?


A: As the product is a diary product so its prices generally trend to fluctuate.

Q: On what scale prices are fixed?


A: The prices are fixed on a reasonable scale so that majority of public can
afford.

Q: Does competitors prices bother your price policy?


A: Not really, we set price of our own.

Q: Do you give price discounts?


A: Not to the final consumers but it can be considered for the he
organizational consumers like Nestle has given discounts to PIA.

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Q: Do you have any price refund policy?
A: No, we never return the paid money back. If the claim is valid then we
can replace the products.

PROMOTION:
Q: What are the channels adopted for promotion?
A: TV, News papers, magazines and doctors.

Q: What is the advertisement budget of the company?


A: It is preplanned b the start of financial year. It is kept secret b the
company.

Q: Who are the sponsors of the company?


A: Nestle does not have any sponsors.

Q: Does Nestle have any brand ambassador?


A: No, Nestle has no brand ambassador.

Q: What is the share of promotion in overall project?


A: It varies every year. Usually it is 40% of the product.

Q: What is the nature of marketing for the product?

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A: The product is marketed aggressively in the market.

Q: Is there any online promotion methods?


A: In Pakistan, not really.

PLACEMENT:
Q: Where are the outlets of product located?
A: These are located all over in Pakistan regardless of big and small cities.

Q: Does the product is sold directly to the consumers or via distributors?


A: The product is not sold directly t the customers because of the extensive
consumer groups.

Q: What are the insurance policies of companies?


A: Insurance policies are maintained but they are highly confidential.

Q: What is the warehousing facilitation of company?

A: Nestle has its own warehouses for the storage of products as well as it
has also hired some warehouses.

Q: What are the transportation modes of the product?

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A: Usually mode of transportation is road.

Q: Did customers or suppliers ever complaint about shortage of Instant Milk


in market?
A: No we have a well defined system to ensure that products at right time
are at right place.

Q: Does the company uses any E-distribution for the product?


A: Due to the distribution problems that a number of online firms face
Nestle until now has no plans for E distribution.
STRATEGIES FOR COMPETIOTIVE ADVANTAGES:
Every product on the shelf, every service and every customer contact helps
to shape this image. A Nestl brand name on a product is a promise to the
customer that it is safe to consume, that it complies with all regulations and
that it meets high standards of quality. Customers expect us to keep this
promise every time. Under no circumstances will we compromise on the
safety of a product and every effort must be made to avoid hazards to health.
Likewise, compliance with all relevant laws and regulations is a must and is
not negotiable. People, equipment and instruments are made available to
ensure safety and conformity of Nestl products at all times. The effort is
worth it. Companies with huge quality standards make fewer mistakes,
waste less time and money and are more productive. They also make higher
profits. Quality is our most successful product. It is the key to our success,
today and tomorrow.

The customer comes first


We want to win and keep customers: distributors, supermarkets, hotels,
shopkeepers and the final consumers. They have very different requirements.
Trade customers expect excellent service, correct information and timely
delivery. Consumers consider taste, appearance and price when they make

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their choice. Our task is to understand what customers want and respond to
their expectations rapidly and effectively. We serve various groups of
consumers and there is demand for products at different levels of perceived
quality and price. All customers, however, expect value for their money
good quality at a reasonable price. When offering quality to customers we
also mean environmental quality. Nestl shares societys concern for the
environment and is committed to environmentally sound business practices
throughout the world.
Customers are central to our business and we must always respect their
needs and preferences.

Quality is a competitive advantage


We live in a competitive world and must never forget that our customers
have a choice. If they are not reverent of quality and reduction cost. Success
can never be taken for granted. We must watch and learn from our
competitors. If they do something better, we must improve our own
performance. We can achieve competitive advantage through Quality.

Quality is a joint effort


Operating companies are fully responsible for maintaining agreed quality
standards. Not only Production units, but also Marketing, Purchasing,
Distribution and Sales have a vital role to play in providing quality to
customers. This implies a thorough knowledge of the products and services
we offer. Quality units at different levels of the organization provide specific
support, promote quality awareness, assume guardianship and audit the
system. Quality departments monitor operations against agreed standards
and must intervene in case of non-conformity. Quality policy and principles,
the mandatory standards and the recommended tools for implementation are
laid down in the Nestl Quality System that is applicable throughout the
group. Further directions are given through instructions, norms and
guidelines, often specific to a product. Our business products, such as raw
material producers, packaging suppliers, contract manufacturers and
distributors are expected to share our concern for Quality. They too must set
up an adequate quality system, so as to meet our requirements consistently.

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Every function and department in the company as well as our business
partners must share the quality efforts.

Quality is made by people


Adequate equipment, procedures and systems are needed to make Quality;
so are involved and dedicated people. Each and every Nestl employee must
do his best to provide quality products and services. Training and teamwork
are crucial to the successful implementation of high quality standards.
Continuous training ensures that everyone understands his tasks and has the
necessary skills to carry them out. Teamwork allows us to achieve results
that are greater than the sum of individual efforts. We motivate employees
by demonstrating management commitment to Quality, by setting
challenging goals and by giving them responsibility and recognition. It is
through employee involvement that goals and targets can be achieved in the
shortest time. Quality must be a way of life for everyone in the company.

Quality is action
Quality is the result of deliberate action. It is the responsibility of senior
managers to communicate the quality objectives and to provide the resources
necessary for their implementation. It is then up to all employees to make
Quality happen throughout the company. Progress is followed by listening to
our customers and by measuring our performance. Shortcomings and
mistakes must be analyzed and corrected. Problems must be anticipated and
prevented before they occur. We also must identify and take advantage of
opportunities. To stand still is to fall behind. So we must strive for
continuous improvement in every area. It is through many small
improvements as well as through major breakthroughs that we will achieve
excellence.

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MARKET
SEGMENTATION:
To occupy a clear distinctive & desirable place related to competing mineral
water in the minds of the target customers Nestle Pure Life segments its
market on two bases:

Geographic segmentation
Demographic segmentation

GEOGRAPHICAL
SEGMENTATION:
The Company segments its market geographically on divisional basis. They
divide each division in different zones and every distributor is restricted to
sale its products only in his own zone.
E.g. Lahore is divided into five zones like East, West, South, North, and
South west.

DEMOGRAPHICAL FACTOR:

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If we look nestle pure life's demographic segmentation than we will find that
our product is for every one. People from any area, any culture, any age, any
sex, any belief and any income will drink water. It is not any luxury item
which is used by a specific people.

Targeting:
A specific demographic target market was not chosen for Nestle Pure Life;
instead the goal was to develop a product to be used by consumers of all
ages - from infants to seniors. It was intended as a family product especially
for families living in large, polluted urban agglomerations that experience
increasing difficulties finding safe, healthy drinking water. In fact, Nestle
Pure Life's 0.5 L bottle is targeting to be also an alternative to soft drinks.
Basically the target market of nestle water is those areas where the
consumers having more awareness about pure life. As the people in villages
having less

information about Nestle Pure Life. So targeting marketing depends on the


awareness of the consumers.

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SELETING TARGET MARKET

Target Market Strategies


Undifferentiated mass market.

Differentiated Segmented Marketing.

Concentrate Marketing.

Micro marketing or Individual Marketing.

PRODUCT LIFE CYCLE:


If we look nestle pure life water in product life cycle than it easy to judge
that it is at introduction stage. Because Nestle is the market pioneer and at
this stage its profit is negative or low due to low sale and high distribution
and promotion expenses. Other major reason to be at introduction stage is
unawareness in rural areas. The people are not aware to the pure life water
thats why their sale is low. They can bring change in product life cycle by
effective promotion, by formulating new price strategies etc.

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Nestle

Pure Life

Product Introduction growth maturity decline


Development

MARKETING
ENVIRONMENT:
Internal environment
Micro environment
Macro environment

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Internal Environment:
In Nestle Internal environment ensures
Employees are on side with the goals of an organization.
They have direct impact on product quality, dependability and overall
productivity.
They are internal market, which impact every department within an
organization; a satisfied internal market will be better able to satisfy
external market.

Nestle under the supervision of top management runs the departments of


finance, operations, accounting, sales and marketing, research and
development to achieve the goals of organization.

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Micro Environment:
In Nestle microenvironment includes:

a) Suppliers:
Suppliers provide the resources like labor and material resources to
produce goods and services. They add to customer overall value delivery
system.
Labor supplies include handling of
Quantity of labor
Quality of labor
Labor strikes
Labor relations
Material supplies deals with the

Quantity of material
Quality of material
Price of material
Stability of material inputs
Delivery delays

Nestle efficiently handles the quality, quantity, price and stability of both
material and labor supplies. Management maps out the strategies for
labor strikes, supply shortages and delays to avoid increasing the cost of
production, which can badly affect sales in short run and customer
satisfaction in long run.

b) Marketing Intermediaries:
It includes the firms that help the company to promote, sell and distribute
its goods to final buyers.

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The physical distribution firms determine the ways to store and
ship goods to reach their destination.
Marketing service agencies including marketing research firms,
advertising agencies and media firms are also hired to target and
promote product to right market.
Financial intermediaries like banks, insurance companies helps to
finance transactions and insure against risks associated with buying
and selling of goods.

Nestle works in coordination with marketing intermediaries to make


its product Pure Life Water available and visible to its valuable
customers.

c) Customers:
Nestle deals with the reseller customers who buy the product Pure Life to
resell at a reasonable profit.
Macro Environment:
Macro environment include political, cultural, economical factors but as for
as Nestle Pure Life Water is concern none of above factors affect on it.
Because it is not at luxury item they are selling necessities of life which can
never be affected.

ORGANIZATION STRUCTURE:
Nestle Pakistan Limited - Company Profile Snapshot

Company Nestle Pakistan Limited


Profile:

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Ticker: NESTLE

Exchanges: KAR

2007 Sales: 32,031,000,000

Major Food & Beverages


Industry:

Sub Industry: Diversified Food

Country: PAKISTAN

Employees: 2174

SWOT Analysis Of Nestle:


STRENGTHS ----------------- TO BUILD ON
WEAKNESESS ----------------- TO COVE ON
OPPORTUNITIES---------------TO CAPTURE
THREATS ----------------------- TO DEFEND ON

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STRENGHTS:
The greatest strength of nestle is that it includes a culture that is team
focused and an open door policy. Nestle focus on collectivism and
performance orientation attitude which encourages employees to work
harder. Another thing is high level of market share and that people all over
the world trust and recognizes Nestle as a big brand name. Strength is that
people trust on Nestle. It looks at achieving higher volumes by renovating
existing products and innovating new products. Strength is that they are low
cost operators which allow them to not only beat competition but also
edging ahead operating excellence, innovation, renovation, product
availability and communication are major strengths.
IT is an important aspect that people all around the world are becoming
more conscious about health, thats why they prefer Nestle.
The only brand in the area maintaining its quality and taste and
having the same impact on its customer
Economical
Pure Drinking Water in market (Free of chemicals)
Strong Brand Name

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WEAKNESESS:
One major weakness of Nestle is that it is entering into markets that are
already mature and can give a tough competition to new entrants. Nestle
Plain Yogurt has proved to be a Nestle weakness because it has been unable
to make its market place in USA. But Nestle by analyzing the sensitive areas
can overcome its weaknesses.
Communication is weak
Lack of Awareness

OPPORTUNITIES:
Nestle in Pakistan has a great opportunity for expanding its markets because
in Pakistan there is a large ready market of food and beverages due to trends
of eating and the increasing .I t also has opportunities largely in China and
India as well. Through proper marketing research Nestle can cash on to these
opportunities.
Concentrating on these areas can increase
sales

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Increase in product line.

Threats:
Nestle is facing the threats by worldwide community due to its violation of
international marketing standards. Many conferences and campaigns have
been held against Nestle in this regard which can damage the name and trust
of its customers. Another threat is due to the increasing popularity of its
competitor OLPERS in local and international markets.
Segments are being shared by competitors
Uncertain conditions will effect the sales (diseases of
animals)
Under cutting by competitors.

RECOMMENDATIONS:
There are few recommendations that are recommended if the project is to be
conducted again in future.

Employees should be trained according to the changing standards of

the organization.

Company should conduct survey from time to time to according to

which changes can be introduced in the organization to stay updated in the

market.

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They should introduce creativity into the work, so that the employees

can do their work active mindedly.

Employees should be given compensation in order to keep them loyal.

Employees should be more involved in decision making to become

more differentiated.

Company should provide incentives to shop keepers.

FUTURE OF NESTLE:
Nestle is today the worlds largest food and beverage company with its
mission to provide healthier lifestyle. It has launched many products in
Pakistan the majority of which are popular and among the market leaders.
Nestle is installing new plants and importing latest technologies to improve.
Moreover, innovation is one of its greatest strengths so it has a bright future
in Pakistan.

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REFERENCES:
We have collected all the data from the following sources,

www.nestle.com
By communicating with the employees

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