1. Mr.Babr 2. S.M Junaid 3. Tahir 4. Asim 5.

Atique

1. Mr.Babr

Nestl is a Swiss-German word which means Little Nest which is its trademark.

Nestl is the worlds number one food company, founded by Henry Nestle in 1866 at Switzerland. 5th largest company of the world according to its turn over. 2 million 31 thousand people employed from all over the world. Present in 81 countries of the globe having 522 factories. Over 700 products renovated or innovated in the past five years, with wellness in mind. Henri Nestl established Nestl in 1867 in Switzerland (Vevey HQ) His first product was lactogen formula for infants by the

 Nestl has been serving Pakistani consumers since 1988, when its parent company first acquired 40% shares in Milkpak Ltd. Then in 1990 the Sheikhupura factory starts the production of NESTLE NIDO milk powder and cereals. A milestone was achieved in 1998 when NESTLE PURE LIFE bottled water was premiered in Pakistan. Within a few years it becomes one of the worlds leading brands of bottled water.

In 2005 the GLOBE project is successfully launched, and is intended to further cooperation and information sharing with Nestl companies around the world.
Today Nestl is fully integrated in Pakistani life, and are recognized as producers of safe, nutritious and tasty food.

We envision Nestl to grow in the shortest possible time into the number one food company in Pakistan with the unique ability to meet the needs of consumers of every age group from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of the highest quality. We envision the company to develop an extremely motivated and professionally trained workforce, which would drive growth through innovation and renovation. We aspire, as a respected corporate citizen, to continue playing our due role in the social and environmental sectors of the country.

In analyzing an organization it is very important to begin with what the organization stands for and why it exists, thus leading us to the mission statements of Nestle, which states; Nestl 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, Nestl contributes to your well-being and enhances your quality of life.

MR. S.M Junaid Hassan

 Nestle is operating in a very large society. There are many forces which can influence the functioning of nestle in many ways. The external environment elements are directly related to Nestle in conducting its daily operations and the forces that may create uncertainties. Following are the components of Nestl's general environment: Political Economic Social Technological and International

Political situation (instability) within a country may favor or oppose the companys growth. The restraints and the objections that the Pakistan Government has placed on Nestle on the way it conduct its business in the country. Taxes (production, sales import/export duty, income tax) Placing quotas on the amount of products that it can supply, which will limit the amount of revenue that nestle can generate. tax that nestle pays to the government in order to conduct the business and this may have a resulting impact on the consumers of nestle products in the shape of higher prices. Laws ( Labor, recruitment, environmental protection)

 The economical factor, which controls the production, consumption and distribution. Nestle makes a significant contribution to the economic sector of Pakistan through generation of tax revenue, import substitution of milk powder, export and infusion of over 2.3 billion rupees in the rural economy through milk purchases, the company plays an active role in promoting economic growth. The capitalist economic system consists of firms owned privately by individuals or by corporations. In such an economy there is a great scope for the company to take favorable decisions and move towards a better organizational environment. Social economic structure, then the rights of owner ship and decision making (policy making) will be transferred to the state (government) and the company will have a lower scope and less favorable environment, in this manner the political and economical elite will operate the organization according to their own will. Inflation rate Economic growth rate

 In analyzing the social factors that can influence Nestls course of business activities in Pakistan, we come across the demographical statistic of Pakistan which includes, gender specification, age specification and religious specification, how a social and cultural values of a certain geographical area can influence the important shifts in the demand of the product, which may result in nestle changing some of its strategies accordingly in order to maintain its sales in Pakistan. Nestle lays a great emphasis in penetrating into the market by keeping the cultural and traditional values of the geographic area in which it is conducting its operation. Before nestle begins its operations in any country its main emphasis is on studying the cultural values of that country, in order to get its products warmly welcomed and make it highly preferred among other companys operating at the same level.

 At nestle technological factor is of vital importance. Heavy spending in R&D for acquiring better techniques and technologies. If rivals are upgrading there technology so Nestle also has to use latest technology to be at par with the rivals. Otherwise it will lose its market share. Overall technological revolution. Technology Obsolete.

 This includes the fluctuation in the foreign currency rates

The relationship between the countries. Favorable trade agreement with the countries The free trade zones, government rebates, tax free zones and a better infrastructure.

Nestle entered the export market in 1993 with the export of infant Cereals to Afghanistan. In 1994 export to Afghanistan was expanded to products to urban consumers.
Nestle provides different range of products in the different countries.

 Moving towards the second type of external environment of nestle, which is categorized as the task external environment, it includes the specific elements outside the organizations environment with which the organization interfaces while it conducts the course of its business.
Following are elements included in Nestls task environment; Competitors Customers Supplier.

 Nestle has an extensive marketing network to figure out the target customers, it has marketing specialist to understand the market place and the customer needs, secondly to is spending a lot to figure out the customers preferences regarding the substitutes of its products in order to bring the customers on board and retain them. Nestle has an extensive market share, due to the reason that its customers are brand loyal and do not compromise over quality and same is the case with the companys quality assurance (QA) team.

One of the principle strategies that nestle utilizes is to produce differentiated products for each age group in order to get a high market share and preferences over other

Competitors play a vital role in effecting the way in which the organization operates. competitors are basically the rival firms in the same market which are providing the same product, in the case of nestle the are many competitors since there is a wide range of products offered by nestle in Pakistan. Nestle face increased competition from different competitors in different areas. Nestle may have to change prices of products and demand of a certain product may increase or decrease due to competition.

High spending in R&D.

Bad word (trying to distort companys GOOD WILL or image in the market) about company or some product in the market. Example: Nestle Nesvita lahore case. Olpers came after nestle with a brand new strategy in order to attract new customers and some of the customers from nestle but did not manage to accomplish it completely since nestle had already gained and retained many of its customers and faces a relative low level of competition. Sheezan, Haleeb, Good milk, Olpers, Country, Kinley, Slice Juices & Cold drinks

 Suppliers provide resources required by a company to conduct and maintain its operations in order to produce an ever lasting range of goods and services in which organizations/companies specializes. Nestle has an extensive network of suppliers like: Packaging suppliers Labor supplier Vendors that over looks after its machinery Specialized people like engineers Policy makers that helps to run the business most efficiently at the minimum cost.

Mr.Asim

There are many factors that are included in the internal environment of nestle and the ways that they effect the company is also analyzed. Nestls internal environment consists all the elements with in the company, particularly the employees, management and the corporate culture, that defines employee behavior. Although some elements affect the organization as a whole, others affect only the manager. A manager's philosophical or leadership style directly impacts employees. Traditional managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions.

 This may include how the employees at nestle are to behave and the way they communicate within the organization and outside the organization. Managerial policy guidelines are made in consultation with the senior executives of the company. "A Policy and Procedure Forum" is held for the line managers who are responsible to implement the policies approved in their respective departments. If any changes are made regarding the policies or procedures of Nestle, it is the responsibility of the Human Resources Manager to convey the change to the line managers.

Quetta Region at a Glance

Area 3,47,190 Sq km Population 5.27 Millions* 127 million 51% / 49% Average Turnover (2009) Powder & Liquid Business

Geographical Boundaries Zhob N Punjab

Quetta Region

ZHOB 400KM

Taftan W

QUETTA

SUI E

TAFTAN 630KM

SUI 550KM

C.Belt

Sorab

SORAB 235KM

Powder 49.9%

Nido NNS 2% Cerelac 10%

Nido Bunyad Juices 0% 3%

Nescafe 0%

Milkpak UHT 34%

Liquid 50.1%

Lactogen 21%

Nutrition, 32.4%

Everday Pow 2% Nido 13%

Fats 9%

Everyday UHT 6%

F & B, 67.6%

OUT STATION 50.0%

CITY 50.0%

Nido NNS 1% Cerelac 19%

Nido Bunyad 1%

Juices 1%

Nescafe 0% Milkpak UHT 33%

Powder 63.2%

Liquid 36.8%

Lactogen 25%

Everyday UHT Nutrition, 44.4% 1% Fats 2% Nido 16%

F & B, 55.6%

Everday Pow 1%

Cerelac 7%

Nido NNS Nido Bunyad Juices 1% 0% 1%

Nescafe 0%

Powder 39.7%

Milkpak UHT 39% Lactogen 23%

Liquid 60.3%

Everday Pow 0% Nido 7% Fats 15%

Nutrition, 31.5%

Everyday UHT 7%
F & B, 68.5%

Number of Merchandisers Supervisor (Reporting to RSM) Routes Allocated shops

5 1

5 860

Merchandisers responsibilities : Shelf/Racks displays for all products POPs Availability Display at eye catching level High traffic All our SKUs to be present FIFO to be maintained Chillers to be filled with Juices, Water Chiller maintenance feedback on regular basis and as and when required to supervisor

Reporting By Merchandisers Report about current drives Themes BTL Activities (Stall activity, Display activity, Merchandising drives, Shelf Marking/Glass shelves) POP availability report Current Activities LG Stores shelves locking drive Fruita Vital Top-shop or Grand Finale Sachet Carpet Drive Glass Shelf Project(35-40 shops) Sticker Pasting for Every-Day Powder 400gm(Rs.20 price off) Nido Shelves Locking Drive Noodles 3-packs (yoyo gift)

Charachteristic

Values

Established in Ave T.O. 2009 RIG 2009 OG 2009 National Share Zonal Share Customers Towns Shop Universe Coverage

1993 37.39 MIO 21.20% 35.90% 1.07% 3.61% 20 18 2544 59%

Business Contribution 52 million. 33% Business share In Region. Chamman Belt 31.72 Million Loralai Belt 20.28 Million

Chaman belt 61.2%

Loralai belt 38.8%

Division of Business Powder Business: 21.84 Mi Liquid Business:30.16 Mi

Nutrition 29%

Non-Dairy 1%

Dairy 70%

Powder 42%

Liquid 58%

Brand wise contribution

Nes cafe 0% Jui ces 1% Noodl es 0% C er el ac 7% Lact ogen 21% Mi l kpak UHT 38% Ot her s 6%

E v er day P ow 0% Ni do 7% C r eam 13% E v er y day UHT 7%

Nestle Staff: Handling Distributors: Sub-distributors: Total Town in Coverage:

02

03 17 20

Competition Standing
Killa Saifullah Company Uni Lever ( Detergents ) Uni Lever (Food) Racket Benkizer Colgate Palmolive Haleeb (Food) Olpers Good Milk Khanozai Hernai Loralai Turn Over Salesman Turn Over Salesman Turn Over Salesman Turn Over Salesman 0.5 1.1 0.25 0.3 1.2 0.92 0.5 1.00 0.01 0.03 4 1 1 3 2 2 2 1 1 0.6 0.2 2 1 0.5 1.1 0.25 0.3 1.2 0.92 0.5 1.00 0.01 0.03 4 1 1 3 2 2 2 1 1 0.5 1.1 0.25 0.3 1.2 0.92 0.5 1.00 0.01 0.03 4 1 1 3 2 2 2 1 1 -

Shezan
Nurpur Aquafina (Pepsi) Kinly (Coca Cola) Millac

Competition Standing
Pishin Company Uni Lever ( Detergents ) Uni Lever (Food) Racket Benkizer Colgate Palmolive Haleeb (Food) Olpers Good Milk Sehzan Nurpur Aquafina (Pepsi) Kinly (Coca Cola) Millac Turn Over 0.5 1.1 0.25 0.3 1.2 0.92 0.5 1.00 0.01 0.03 Vans Chaman O/Booker Salesman Turn Over 1 1 1 1 1 1 1 1 N/A 2 2 0.3 Do 0.35 0.5 0.1 0.1 N/A 0.2 N/A 0.02 0.03 N/A Vans O/Booker Salesman 1 1 1 1 N/A 1 N/A 1 2 N/A

2 1 2 1 1 1 Tri M/agele Tri M/agele 1 Tri M/agele N/A N/A 2 1 2 1 1

1 Do 1 1 N/A N/A 1 N/A N/A 1 02 m/agele N/A N/A

Competition Standing
Zhob Company Uni Lever ( Detergents ) Uni Lever (Food) Racket Benkizer Colgate Palmolive Haleeb (Food) Olpers Good Milk Sehzan Nurpur Aquafina (Pepsi) Kinly (Coca Cola) Millac Turn Over 0.05 0.3 0.15 0.1 0.4 0.2 0.3 0.3 0.2 0.08 Vans 1 Try Van Try Van Try Van Try Van O/Booker Salesman 2 2 2 1 1 1 1 1 -

Mr. Atiq Shah

Strengths
Experienced sales team. Strong associated distribution channel. Long association with sub-distributors. Strong Nestle Brand Portfolio. Infrastructure as per business needs. Strong trade relationships. Training & development of sales team. Global Nestle image. Strong infrastructure over competitors. Customer relationship. Strong re-distribution net work. Chiller management & key account handling.

Weaknesses
Distance from factories. Inconsistence availability of products. Bad road conditions within territorial boundaries Political instability in the region.

Opportunities
Awareness by increasing availability & visibility. Potential for bulk water, chilled dairy and bulk butter. Untapped out stations. SMD project. Mega development projects by Government Supplies to forces like Frontier corps

Threats
Product shortages. Seasonal brands pull because of shortages. Better Margin for retailers Heavy trade spends by competitors. Increasing competitors brand pull due to shortages.

Recommendations
Reducing Losses and Leakages Lifter should be there at every warehouse for loading and off-loading this is directly related with the security of our products and this will help us in reducing losses during offloading Leakages can be reduced by using online systems I am sure DMS (data base management sysetems) system will serve the purpose

Recommendations
Re-defining target markets
88% of Juices are sold out in city only 12% in outstation??? company should stretch as much as we can we should streamline the supplies of 250 ml MilkPak to grow this pillar of our as much as we can

Recommendations
Security Condition and Contingency Plan
Considering the security situation specifically at Saryab Road , Brewry Road and Joint Road company should develop other 6 routes decreasing reliance on them and increasing the wholesale share because shopkeepers of these areas are relying on wholesale to keep their business running.

Recommendations
Stimulating Team Work

Area Sales Managers for Liquid should visit one territory for Powders and ASM for Powders should visit one territory for Liquids and the objective is visit is specifically criticize and recommend once a week and next day after the visit the In charge ASM with distributors should meet to discuss the visit. Regional Sales Manager should verify by visiting once reported by distributor for his action.

Recommendations
Systemizing the Work
Proper organizational structure is recommended for distributions providing decentralization and healthy environment for employees and with defined responsibilities and authorities No paper environment is recommended Distributions should invest on their staff to upgrade them for up to date requirements and short courses for using day to day software should be conducted at least for supervisory level Order Booking system is highly recommended. Specified and regular trainings and refresher courses for Order Bookers at least one training a month should be conducted to make up the mind frame of Order Booker as per requirement. All distributors should be working on same standards and same internal systems although there are reservations and hurdles but this can be adopted as a long term objective but giving it a start today.

Mr. Tahir

Strategies & Recommendations for Brands Improvement

MILKPAK
Coaching and improvement of sales skills of sales force throughout the Region Availability to be enhanced in C-class Shops by defining specific strategy with the distributors throughout the Region Smart and effective utilization of TTS to get maximum market share for the brand. Addition of new towns in out stations. (like Ziarat is to be added) Market access for our brand is up to the mark.

FRUITA VITALS/JUICES
Maximize availability in selected shops Enhancing focus on in cold drink shops, outlets & hotels on the highway New chillers provision selected Out Station Exclusive order booking is always recommended Shelf locking is very important to keep your product properly positioned

NIDO Fortified/NNS
Best utilization of POP to counter loose powder milk and
competitors. Incentivizing sales staff of distributor to maintain their motivational levels.

Provision of Maximum number of stands/Hangers for Sachet availability and visibility .

Our prices are the most competitive for under discussion brands this should be communicated to purchaser through media campaigns.

EVERYDAY
USe of this product is providing convenience to teadrinkers. Areas like offices, tea stalls, hotels and households are the right target market for everyday Incentive to be diverted towards salesmen for maximum output.

CERELAC

Detailing team to be taken fully onboard with weekly meetings which can help them in highlighting areas/concerns for prescription. Increase stock/shelf depth in order to get more volume. Sachet coverage to be improved throughout the market. Incentive plans for business partners and sales staff.

MAGGI
Maximize availability.
Increase shelf share.
Strong Competition. Competitive TTS as offered by competitors & credit to the trade. Limited flavour range is our weakness ( Chiken , Chatkhara, lemon chaska) Product should be penetrated in C and D class shops. No specific consumer promotion/sampling activities for the region.

NESCAFE
Maximize shelf space Ensure availability as per market need. Inconsistent supplies need to be managed. Smuggled coffee with low price is available throughout. Seasonality (usually preferred in winters) Limited consumers taste not yet developed

Vision 2014

References
Mr. Umar Khalid Siddiqui (RSM) (Regional Office) Mr. Haji Mazhar Zaffar Traders (Distributer) Nestle Web site