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Muhammad Ali ishfaq Maf05111043

HISTORY IN PAKISTAN

FMCG Organization

HEAD OFFICE

Location of Office/Factory Nestl Headquarters Avenue Nestl 55 1800 Vevey, Switzerland


General Enquiries: (Tel) +41 21 924 1111 (Fax) +41 21 924 4800

REGIONAL OFFICE
Nestl Consumer Services 308 Upper Mall P. O. Box 874 Lahore, Pakistan Phone: (042) 111-Nestle (637853

NUMBER OF TOTAL EMPLOYEES


The total number of employees currently employed at Nestle Foods is approximately 3500.

NATURE OF BUSINESS The nature of business of Nestle Foods is FMCG that is focused in the dairy industry. It produces dairy products including UHT milk like Milkpak, Nesvita, Nido, Everyday, Milkpak cream and yogurts. TYPE OF OWNERSHIP Nestle Pakistan is a hundred percent subsidiary of Nestle and is a Private Limited company.

AUDITORS
KPMG Taseer Hadi & Co (Chartered Accountants) LEGAL ADVISOR Cheema & Ibrahim (Advocates)

MISION AND VISION STATEMENTS

VISION STATEMENT

Nestl aim is to meet the various needs of the consumer every day by marketing and selling food of a consistently high quality.

MISION STATEMENT At Nestl, we believe that research can help us make better food so that people live a better life. Good Food is the primary source of Good Health throughout life. We strive to bring consumers foods that are safe, of high quality and provide optimal nutrition to meet physiological needs.

GOALS AND OBJECTIVES

GOALS

The main goals of Nestle are: 1.To gain market leadership 2.To be the first Pakistani company to become a multi-national and expand its operations to the Middle-East and other areas.

OBJECTIVES
Some of the objectives of Nestle devised for the following years are: 1. To achieve a turnover of Rs.8 billion in sales in the dairy business by 2012. 2. To make the business profitable in 2013. 3. To become the expert in the processing of UHT milk by 2013.

4. To be the first Pakistani company to go international by 2013.

Competitors of nestle in PAKISTAN


Nestle competitors are following 1. Engro foods 2. Haleeb foods 3. The main strong competitor is Shezan

BCG Matrix

Nestle has so far introduced 7 dairy products which are as follows: Milkpak Nido and everyday Nesvita Milkpak cream Fresh n natural dahi Fruit Yogurt Raita

BCG Matrix
Now if we fit them into the BCG matrix according to their growth rate and market share then following will be the situation STAR QUESTION MARK Fruit yogurt and Raita recently introduced by Nestle is a question mark yet because every new dairy product takes time to make its place in the market
CASH COW

Milkpak milk by Nestle is a star as it has a high growth rate as well as high market share because it is so successful that it competes head on head with the major market players of milk industry like Engro, Good milk, Haleeb etc. DOG Nesvita low fat milk by Nestle is also a dog because it also has a low market share and growth rate as it failed to make a clear perception in the minds of customers and poor marketing campaign and so could not succeed.

Nido and Everyday is a cash cow because it has a high market share of about 75% and its growth is so low that it equals to almost zero. Milkpak cream is the cash cow of EFL.

Public sector portfolio matrix

A similar approach can be used to assess the different services provided by public sector organizations. The dimensions of the matrix are: Can the service can be provided effectively while giving value for money The desirability of the service - public support and funding attractiveness.

MARKETING STRATEGIES MARKET POSITIONING

CPM
CPM MATRIX
Engro Foods
Critical Success Factors
Milk Procurement Sales & Distribution Network

Nestle
Rating
4

Haleeb Foods
Rating
3

Weight
0.06

Rating
4

Weighted Score
0.24

Weighted Score
0.24

Weighted Score
0.18

0.08 0.1 0.04 0.08 0.11 0.07 0.08 0.06 0.04 0.07 0.06 0.07 0.08 1

3 4 3 4 4 4 3 3 3 3 2 3 3

0.24 0.4 0.12 0.32 0.44 0.28 0.24 0.18 0.12 0.21 0.12 0.21 0.24 3.36

4 3 4 3 4 4 4 4 3 4 4 4 4

0.32 0.3 0.16 0.24 0.44 0.28 0.32 0.24 0.12 0.28 0.24 0.28 0.32 3.78

2 2 2 1 2 2 2 2 3 2 2 1 2

0.16 0.2 0.08 0.08 0.22 0.14 0.16 0.12 0.12 0.14 0.12 0.07 0.16 1.95

Marketing Packaging Relations with Farmers Product Quality R&D Market Share Financial Position Price Competitiveness Management Team Production Capacity Customer Satisfaction Brand Image Total

FINANCIAL STRATEGIES

GROWTH IN SALES OF ENGRO FOODS LIMITED


8
7

6
5 4 3 2 BILLIONS

1 0
2010 2011 2012

2013

OTHER STRATEGIES

RESEARCH AND DEVELOPMENT (R&D) PROCUREMENT PRODUCTION

PROBLEM SECTION

MAIN PROBLEM ACCORDING TO THE MANAGEMENT DIFFICULTY TO COPE WITH INCREASING GROWTH MAIN PROBLEM ACCORDING TO OUR ANALYSIS MISPERCEIVED MARKET SHARE OF NESLAC BY THE MANAGEMENT WRONG POSITIONING OF FRUIT YOGURT

SUB PROBLEMS

INCORRECT BUDGET SETTING UNAVAILABILITY OF PRODUCTS LOW MARKET SHARE IN INTERIOR SINDH AND OTHER CITIES

STRATEGIC ALTERNATIVES

SOLUTIONS/ RECOMMENDATIONS TO SOLVE THE PROBLEMS: NEED TO ESTABLISH THE STRONG NEW PRODUCTS REPOSITIONING OF NESLAC AND NESTLE FRUIT YOUGART NESVITA CONSTANT STRUGGLE: PRODUCT AVAILABILITY:

CONCLUSION
Though it is a very successful in producing dairy products valuable to the customers but it has some strategic problems associated with its strategies especially with its new product. Proper importance must be given to solve these problems at strategic level, so that that NESTLE could reach to top position in dairy food industry.