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TABLE OFCONTENTS:

MISSION STATEMENT STORY OF NESTLE DYNAMIC EXPANSION

BRANDS OF NESTLE BOARD OF DIRECTORS AUDIT COMMITTEE NESTLES OBJECTIVES MARKETING AND SALES MARKET POSITION NESTLE EVERYDAY 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 foodprocessing company, registered on the Karachi andLahorestock exchanges. For 5 years in a row, the company has won a place among the

top 25 companies of the Karachi stockexchange.Headquartered in Lahore the company

operates 5 productionfacilities. Two of its factories in Sheikhupura and Kabirwalaare

multi products factories. One factory in Islamabad and 2in Karachi produce bottled

water. Through its effectivemarketing and vast sales and distribution networkthroughout

the country, it ensures that its products aremade available to consumers whenever,

wherever andhowever.In the line with Nestls global philosophy, Nestle Pakistan

isproud of its commitment to excellence in product and safetyand quality and providing

value and services to itsconsumers. On the social front it is very responsible when

itcomes to environmentally sound business practices andcorporate socialresponsibility.Nestle Pakistan operates in many ways but people productsand brands

are the main flag bearers of the companysimage.

INTRODUCTION TONESTLE:Today, Nestle is the world leading Food Company.Nestle headquarters is in

Switzerland.Its international R&Dnetwork supports the products made in more than500factories in 86 countries. The Nestle factories are operatingin the region of:


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1 . A f r i c a 2 . A m e r i c a3 . A s i a

4 . E u r o p e5 . O c e a n i a

Being a company dedicated to food from thebeginning, Nestle remains sensitive toculinary and eatinghabits, and responds to specific nutritional problems, whilstalsosetting and matching new trends such as growing out-of-home consumption and caringabout the well being of itsconsumers.MEANING OF NESTLE:Henri Nestl endowed his company with the symbol derivedfrom his name. His familycoat of arms, the nest with amother birdprotecting her young, became the Company'slogo and a symbol of theCompany's care

and attitude tolife-long nutrition. The Nestl nest represents thenourishment, securityand sense of family that are soessential to life.

HISTORY OF NESTLE:1866 -1905In the 1860s Henri Nestl, a pharmacist, developed a foodfor babies who were unable

to breastfeed. His first successwas a premature infant who could not tolerate his

mother's milk or any of the usual substitutes. People quicklyrecognized the value of the

new product, after Nestl's newformula saved the child's life, and soon, Farine Lacte

HenriNestl was being sold in much of Europe.1905-1918In 1905 Nestl merged with the Anglo-Swiss Condensed MilkCompany. By the early

1900s, the company was operatingfactories in the United States, Britain, Germany andSpain.World War I created new demand for dairy products in theform of governmentcontracts. By the end of the war,Nestl's production had more than doubled.1918 -1938After the war Government contracts dried up and consumersswitched back to freshmilk. However, Nestl's managementresponded quickly, streamlining operations andreducingdebt. The 1920s saw Nestl's first expansion into newproducts, with chocolatethe Company's second mostimportant activity

1938 -1944Nestl felt the effects of World War II immediately. Profitsdropped from $20 millionin 1938 to $6 million in 1939.Factories were established in developingcountries,particularly Latin America. Ironically, the war helped with theintroduction of theCompany's newest product, Nescafe,which was a staple drink of the US military.Nestl'sproduction and sales rose in the wartime economy.

1944 -1975
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The end of World War II was the beginning of a dynamicphase for Nestl. Growth

accelerated and companies wereacquired. In 1947 came the merger with Magi

seasoningsand soups. Crosse & Blackwell followed in 1950, as didFindus (1963),

Libby's (1971) and Stouffer's (1973).Diversification came with a shareholding in L'Oral

in 1974.

1975 -1981Nestl's growth in the developing world partially offset aslowdown in the Company's

traditional markets. Nestl madeits second venture outside the food industry byacquiringAlcon Laboratories Inc...1981 -1996Nestl divested a number of businesses1980 / 1984. In 1984,Nestl's improved bottom

line allowed the Company tolaunch a new round of acquisitions, the mostimportantbeing American food giant Carnation.1996+

The first half of the 1990s proved to be favorable for Nestl:trade barriers crumbled

and world markets developed intomore or less integrated trading areas. Since 1996there havebeen acquisitions including San Pellegrino (1997), SpillersPet foods (1998)and Ralston Purina (2002). There were twomajor acquisitions in North America, both in2002: in July,Nestl merged its U.S. ice cream business into Dreyer's, andin August, aUSD 2.6bn acquisition was announced of Chef America, Inc.

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

Mission Statement:Nestle is dedicated to providing the bestfoods to people throughouttheir day,throughout their lives, throughout the world.With ourunique experience of anticipatingconsumers' needs and creatingsolutions,Nestle contributes to your well-being andenhances your

quality of life.Nestle is not only Switzerland's largest industrial company,but it is also the World'sLargest Food Company. The missionstatement emphasizes on the fact that Nestleproducts areavailable in nearly every country around the world.Wherever one may live,only Nestle can provide the best andmost reliable food and beverage products to meet

his/herneeds throughout the day, throughout the life. Especially,people on the movewant to be able to find good foodwherever they are, whatever the time of day. They areoftenreassured that they will find well-known brands out of home. This statement alsoreflects the image of high qualityproducts that Nestle offers. Nestle has the advantagethat itoffers caterers, fast food chains and other restaurants acomplete range of highquality ingredients, base productsand meal components, as well as leading consumerbrandssuch as Nescafe. Quality is the cornerstone of the success of the Nestle
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Company. Everyday, millions of people all overthe world show their trust in the companyby choosing

Nestle products. This trust comes from a quality image thathas been built up for over

a century. Therefore, the qualityof the products ultimately enhances the quality oftheconsumers life.In addition, the mission statement declares that Nestlehas the abilityto anticipate consumers needs and createsolutions. Nestle has proven this abilitya number of timesby introducing new products that were requiredbyconsumers. Especially, the launch of Nestle Pure Life inPakistan proves theaccuracy of this fact. In Pakistan, therewas a need for safe and healthy drinking waterand Nestleresponded to this consumer need by introducing Nestle PureLife.Finally, it isquite evident that the organization hasactually implemented its mission statement in thebusinesspractices that it carries out. Also, the mission statement hasbeen an importantguideline for any SBU that the firm hasstarted and this is portrayed by the success thateach SBU of Nestle enjoys.

How Nestle DefineMarketing:Building customer relationship based on customer value andsa ti sf ac ti on isa t t he very hear t o f modern ma rke t ing .Thet w o f o l d g o a l s o f N e s t l e m a r k e t i n g i s t o at t r a c t n e w customers by providing superior value and to keep andgrowt h e c u r r e n t c u s t o m e r s b y d e l i v e r i n g s a t i s f a c t i o n . N e s t l e defines marketing as:

A s o c i a l a n d m a n a g e r i a l process where by individual &

groups obtains good

food a n d g o o d l i f e t h r o u g h c r e a t i n ga n d e x c h a n g i n g products and values

.

N e s t l s B u s i n e s s Principle:Nestl's business objective is to manufacture andmarket the Company's products insuch a way as tocreate value that can be sustained over the long termfor shareholders,employees, consumers, and businesspartners.

Nestl does not favor short-term profit at the expenseof successful long-term businessdevelopment.Nestl recognizes that its consumers have a sincereand legitimate interest in thebehavior, beliefs andactions of the Company behind brands in which theyplace theirtrust and that without its consumers theCompany would not exist.


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Nestl believes that, as a general rule, legislation is themost effective safeguard ofresponsible conduct,although in certain areas, additional guidance to staff in

the form of voluntary business principles is beneficial inorder to ensure that the highest

standards are metthroughout the organization.Nestl is conscious of the fact that the success of acorporation is a reflection of theprofessionalism,conduct and the responsible attitude of itsmanagement and employees.Therefore recruitment of the right people and ongoing training and developmentarecrucial.Nestl continues to maintain its commitment to followand respect all applicable locallaws in each of itsmarkets

DYNAMICEXPANSION :The history of Nestle includes the development of manydi f fe ren t p roduc ts as

wel l as acquisi t ions, mergers and thepurchasing of shares in companies,mainly abroad. Over thecou rse of t he yea rs, th is ena bled i t to bro ade nits range of products and diversify its operations, while at the samet imest rengthening the economic foundat ions of the company.Amongstthe most important acquisitions were CarnationinL o s A n g e l e s ( m i l k , c u l i n a r y p r o d u c t s a n d p e t f o o d s ) a n d m o rerece nt ly Ro w t ree Mackin tosh in Yor k (c hocola te an d confect ionery),Biotin in Perigee (pasta) as well as PerrierinF r a n c e ( m i n e r a l w a t e r ) . N e s t l e , w h i c h d o e s 9 8 % o f

i t sbusiness outside Switzerland, also has interests in non-foodsectors, incosme t ics (a large share hold in g i n L 'Oreal ) a nd ophthalmic products(acquisit ion of Alcon Labora tor ies Inc.) while continuing to give priority to foodproducts.Marketing Mix:M a r k e t i n g M i x i s d e f i n e d a s a s e t o f c o n t r o l l a b l e t a c t i c a l marketing tools that firm blends to produce the response itwa nt s in th e ta rg etmarke t . The marke t ing m ix cons is t s o f every th ing the f i rm can do toin f l uence the demand fo r i t sp roduc ts . The many poss ib i l i t i es can beco l lected in to fourgroups of variables known as the four P's that are as follows:


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1- PRODUCT:P r o d uc t s t a n ds f o r g o o d s a n d s e rv i c e s t ha t t h e c o m pa n y o f f e r s t o t a r g e t m a r k e t . N e s t l k i t K a t i s i n f o u r s i z e s including K.K Chunky, while Polo is in three sizes. The shapeand the color of theKit Kat and Polo are quite attractive forth e cu sto me rs . Th e lab el in g,packag ing o f t he K i t Ka tandP o l o i n c l u d e s t h e N e s t l b r a n d a n d l o g o . T h e p a c k a g in g includes an expiry date and time along with amanufactured a t e . S e c o n d p a r t o f l a b e l i n g i n c l u d e s t h eq u a n t i t y o f p r o du c t i n g r am s a l on g wi t h i n g r e d i e n t s a n d c o nt e n t s o f chocolates and candies

2- PRICE:The amount o f money charge d f or a produ ct or serv i ce, or sums of the

values that consumers exchange for thebenefitso f h a v i n g o r u s i n g t h e p r o d u c t o r s e r v i c e s . T h e p r i ce o f Nestl Kit Kat and Polo varies increases with the increase in its size.

3- PLACING:


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P l a c i n g s t a n d s f o r c o m p a n y ' s a c t i v i t i e s t h a t m a k e th e product available to the target consumer. Nestl'distributioni s u s i n g t h e d i r e c t d i s t r i b u t i o n c h a nn e l t o s u p p l y confectionary products weekly to the retailers.4- PROMOTION:

P r o d u c i n g a q u a l i t y p r o d u c t , p r i c i n g i t a t t r a c t i v e l y a n d mak ing i t ava i l ab le fo r the ta rge t consumer i s no t the on lyprob lemcompan ies need to so lve . Modern e ra i s the e rao f c o m m u n i c a t i o n w i t h c u s t o m e r , a s s u r i n g c u st o m e r s a t i s f a c t i o n , d e m a n d s f o r p e r s o n a l a n d n o n -p e r s o n a l c o m m u n i c a t i o n w i t h t h e t a r g e t c u s t o me r t o b u i l d a rela tionsh ip with them. In an a rea-sto rm ing acti vit y,g i v i n g o u t p r o d u c t s f r e e , g i f t h a m p e r s , a t t r a c t s n e w c u s t o m e r s ; ki t e s d e p e n d i n g o n t h e s e a s o n ( f o r e x i s t i n g a n dp o t en t i a l cus t omers ) a re g i ven . The bas i c pu rpose i s t o exp lo rethearea that is being unexposed and to bring awareness in thepeople.

Questionnaire:PRODUCT:Q: When was Nestle Instant Milk launched in the market?A: Nestle first launched its powder milk in the market in2003 and then came the liquidpowder.

Q:W hat are the specific features of the product that makesit different from other similarproducts present in themarket?A: Nestle has introduced the milk powder which outshinedothers because of its greattaste, refrigeration, ready todrink, less volume, more stable shelf life.Q:Is the product manufactured locally or imported?A:The entire production of the Nestle Everyday is carriedout in Pakistan at Sheikhupura

and Kabianwala.Q: What is the role of Research and Developmentdepartment in the development of theproduct?A: At Nestle the Research and Development department iscalled as the APPLICATIONGROUP. No other companymatches the R&D presence of Nestle. No othercompanydedicates so many human and financial resources to R&D asNestle.


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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 itsmanufacturing process since itslaunch?A:Yes, the factory mil powders spray drying capacity wasdoubled in 1999 withcommissioning of new evaporator.Q:When Nestle launched the product, do its sales excel orfell short of the company salestargets?

A:

the actual target is a companys secret that will not bedisclosed. But we received anoverwhelming acceptance andliking of the product.Q: Is Nestle instant milk good for health; is it according tointernational healthstandards?A: Over many years companys primary concern has been toimprove thequality and volume of milk for UHT processingand other milk based products.Q: Whatis the target market of product?A: The target market of the product is definitelyhe teadrinkers who have a choice and capacity for the best taste.Q: Did the companyever have some problems with theproduct?A: There was a problem of segmentation butit was quicklytaken into notice and the problem was readily removed.

Q: Did the company have any special concept behindlaunching the product?A: Itis designed to be used in general but it is popularmostly in offices and cafs for teapurposes.Q: Did Nestle receive any complaints about the productever?A: yes, butnow the error rate has been reduced to zero.2004 --------------------------- 3complaints2005 --------------------------- 6 complaints2006 ---------------------------4 complaints2007 ---------------------------- 2 complaintsQ: What is the current position

of the product in the market?A: Well the product is matchless in quality and hasnomatch. It has a sufficient name and place in the market.Q: Do the companydonate any money from its productsales?A: On the basis of profit margin Nestleseldom makedonations o non- profit organizations and charitableinstitutions

Q: How do you make sure that the cows which are milkedare disinfected?Nestle has its

own diary farms from which we collect milkand we have a special team of veterans who

regularly injectanimals against epidemic diseases.Q: what about the packing of

the product, anyspecifications?A: Yes the Nestle logo is a must, other than that

the productis 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


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of product?A: competitors are Olpers (Angro) and Halib milk.Q: Who are the

industrial consumers of Nestle Everydayinstant milk?A: PIA, MC-DONALDS

and PEARL CONTINENTAL Pakistan.

PRICE:

Q: How do you set prices for your products?A: We set prices of our own because

Nestle is the trendsetter in the market.Q: What is the profit margin of the product?A: The

profit margin is usually high because of the highquality of the product.Q: Does the prices

fluctuate or they remain stable?A: As the product is a diary product so its prices

generallytrend to fluctuate.Q: On what scale prices are fixed?A: The prices are fixed on

a reasonable scale so thatmajority 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 forthe he organizational consumers like Nestle has givendiscounts to

PIA.Q: Do you have any price refund policy?

A: No, we never return the paid money back. If the claim isvalid then we can replace theproducts.

PROMOTION:Q: What are the channels adopted for promotion?A: TV, News papers, magazines anddoctors.Q: What is the advertisement budget of the company?A: It is preplanned b thestart of financial year. It is keptsecret b the company.Q: Who are the sponsors ofthe company?A: Nestle does not have any sponsors.Q: Does Nestle have any brandambassador?A: No, Nestle has no brand ambassador.Q: What is the share ofpromotion 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?A: The product is marketedaggressively in the marketQ: 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 bigand small cities.Q:

Does the product is sold directly to the consumers or viadistributors?A:The product is not sold directly t the customers becauseof the extensive consumergroups.Q: What are the insurance policies of companies?A: Insurance policies aremaintained but they are highlyconfidential.Q: What is the warehousing facilitationof company?A: Nestle has its own warehouses for the storage of products as well as ithas also hired some warehouses.


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Q: What are the transportation modes of the product?A: Usually mode of transportationis road.Q: Did customers or suppliers ever complaint aboutshortage of Instant Milk inmarket?A: No we have a well defined system to ensure thatproducts at right time are atright place.Q: Does the company uses any E-distribution for theproduct?A: Due to thedistribution problems that a number of onlinefirms face Nestle until now has no plans for

E distribution.STRATEGIES FORCOMPETIOTIVEADVANTAGES:Every product on the shelf, every service and everycustomer contact helps to shape this

image. A Nestl brandname on a product is a promise to the customer that it issafe to

consume, that it complies with all regulations andthat it meets high standards of quality.

Customers expect usto keep this promise every time. Under no circumstances willwe

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 isa must and is not

negotiable. People, equipment andinstruments are made available to ensure safety

andconformity of Nestl products at all times. The effort is worthit. Companies with huge

quality standards make fewermistakes, waste less time and money and aremoreproductive. They also make higher profits. Quality is ourmost successful product. It

is the key to our success, todayand tomorrow.

The customer comes firstWe want to win and keep customers: distributors,supermarkets, hotels, shopkeepersand the final consumers. They have very different requirements. Tradecustomersexpect excellent service, correct information and timelydelivery. Consumersconsider taste, appearance and pricewhen they make their choice. Our task is tounderstand whatcustomers want and respond to their expectations rapidlyandeffectively. We serve various groups of consumers andthere is demand for products at

different levels of perceivedquality and price. All customers, however, expect valuefortheir money good quality at a reasonable price. Whenoffering quality to customerswe also mean environmentalquality. Nestl shares societys concern for theenvironmentand is committed to environmentally sound businesspractices throughoutthe world.Customers are central to our business and we must alwaysrespect theirneeds and preferences.

Quality is a competitiveadvantageWe live in a competitive world and must never forget thatour customers have a choice.If they are not reverent of quality and reduction cost. Success can never be taken

forgranted. We must watch and learn from our competitors. If they do something better,we must improve our ownperformance. We can achieve competitive advantagethroughQuality.Quality is a joint effortOperating companies are fully responsible for maintainingagreed quality standards. Notonly Production units, but alsoMarketing, Purchasing, Distribution and Sales have avitalrole to play in providing quality to customers. This implies athorough knowledge ofthe products and services we offer.Quality units at different levels of the organization


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providespecific support, promote quality awareness, assumeguardianship and audit thesystem. Quality departmentsmonitor operations against agreed standards andmustintervene in case of non-conformity. Quality policy andprinciples, the mandatorystandards and the recommendedtools for implementation are laid down in the NestlQualitySystem that is applicable throughout the group. Furtherdirections are given

through instructions, norms andguidelines, often specific to a product. Ourbusinessproducts, such as raw material producers, packagingsuppliers, contractmanufacturers and distributors areexpected to share our concern for Quality. They toomust setup an adequate quality system, so as to meet ourrequirementsconsistently.Every function and department in the company as well asour businesspartners must share the quality efforts.

Quality is made by peopleAdequate equipment, procedures and systems are needed tom ake Qua l i t y ; so a reinvo lved and ded ica ted peop le .

Eacha n d e v e r y N e s t l e m p l o y e e m u s t d o h i s b e s t t o p r o v id e qua l it y p roduc t s and se rv i ces . T ra in i ng and t eamworka re c ru c i a l t o t h e s u c c e s s f u l i m p l e m e n t a t io n o f h i g h q u a l i t y s t an d a r d s . C o n t i n u o u s t r a i n i n g e n s u r e s t h a t e v e r y o n e unders tands h i s tasks and has the necessary sk i l l s t o car ry them out .Teamwork a l l ows us to ach ieve resu l t s tha ta reg r e a t e r t h a n t h e s u m o f i n d i v i d u a l e f f o r t s . W e m o t i v a te employees by demonst rating management commitment toQuality, by settingchallenginggoalsa n d b y g i v i n g t h e m r e s p o n s i b i l i t y a n d r e c o g n i t i o n . I ti s through employee involvement that goals and targets can beachieved in theshortest time. Quality must be a way of lifefor everyone in the company.Quality is actionQuality is the result of deliberate action. It is theresponsibility of senior managers to

communicate the qualityobjectives and to provide the resources necessary for

theirimplementation. It is then up to all employees to makeQuality happen throughout

the company. Progress isfollowed by listening to our customers and by measuring

ourperformance. Shortcomings and mistakes must be analyzedand corrected. Problems

must be anticipated and preventedbefore they occur. We also must identify and take

advantageof opportunities. To stand still is to fall behind. So we muststrive for

continuous improvement in every area. It is through many small improvements as well

as through majorbreakthroughs that we will achieve excellence.

MARKETSEGMENTATION:To occupy a clear distinctive & desirable place related tocompeting mineral water in the

minds of the targetcustomers Nestle Pure Life segments its market on twobases:Geographic segmentation


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Demographic segmentation

GEOGRAPHICALSEGMENTATION:The Company segments its market geographically ondivisional basis. They divide each

division in different zonesand every distributor is restricted to sale its products only inhis own zone.E.g. Lahore is

divided into five zones like East, West, South,North, and South west.DEMOGRAPHICAL FACTOR:If we look nestle pure life's demographic segmentation thanwe will find that our productis for every one. People fromany area, any culture, any age, any sex, any belief andanyincome will drink water. It is not any luxury item which isused by a specific people.

Targeting:A specific demographic target market was not chosen forNestle Pure Life; instead the

goal was to develop a productto be used by consumers of all ages - from infants to

seniors.It was intended as a family product especially for familiesliving in large, polluted

urban agglomerations thatexperience increasing difficulties finding safe, healthydrinking

water. In fact, Nestle Pure Life's 0.5 L bottle istargeting to be also an alternative to soft

drinks. Basicallythe target market of nestle water is those areas where theconsumers

having more awareness about pure life. As thepeople in villages having less information

about Nestle Pure Life. So targeting marketingdepends on the awareness of the

consumers.

SELETING TARGET MARKETTarget Market StrategiesUndifferentiated

mass market.Differentiated Segmented Marketing.ConcentrateMarketing.Micro marketing or Individual Marketing.PRODUCT LIFECYCLE:If we look nestle pure life water in product life cycle than iteasy to judge that it is at

introduction stage. Because Nestleis the market pioneer and at this stage its profit isnegativeor low due to low sale and high distribution and promotionexpenses. Othermajor reason to be at introduction stage isunawareness in rural areas. The people arenot aware to thepure life waterthats why their sale is low. They can bringchange inproduct life cycle by effective promotion, byformulating new price strategies etc

MARKETINGENVIRONMENT


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Internal Environment:In Nestle Internal environment ensuresEmployees are on side with the goals of anorganization.They have direct impact on product quality,dependability and overall productivity.

They are internal market, which impact everydepartment within an organization; a

satisfied internalmarket will be better able to satisfy external market. Nestle under the

supervision of top management runs thedepartments of finance, operations, accounting,sales andmarketing, research and development to achieve the goalsof organization.

Micro Environment:In Nestle microenvironment includes:a)Suppliers:


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Suppliers provide the resources like labor and materialresources to produce goods andservices. They add tocustomer overall value delivery system.Labor supplies includehandling ofQuantity of labor

Quality of laborLabor strikesLabor relationsMaterial supplies deals with theQuantity of materialQuality of material

Price of materialStability of material inputsDelivery delays

Nestle efficiently handles the quality, quantity, price andstability of both material andlabor supplies. Managementmaps out the strategies for labor strikes, supplyshortagesand delays to avoid increasing the cost of production,which can badly affectsales in short run and customersatisfaction in long run.

b) Marketing Intermediaries:It includes the firms that help the company to promote,sell and distribute its goods tofinal buyers.The physical distribution firms determine the ways tostore and ship goods to reach their

destination.Marketing service agencies including marketingresearch firms, advertising agencies andmedia firmsare also hired to target and promote product to rightmarket.Financial intermediaries like banks, insurancecompanies helps to finance transactionsand insureagainst risks associated with buying and selling of goods.Nestle works incoordination with marketingintermediaries to make its product Pure Life Wateravailableand visible to its valuable customers.c)Customers: Nestle deals with the reseller customers who buy theproduct Pure Life to resell at areasonable profit.


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Macro Environment:Macro environment include political, cultural, economicalfactors but as for as NestlePure Life Water is concern noneof above factors affect on it. Because it is not at luxuryitemthey are selling necessities of life which can never beaffected.

BRANDS

I . D A I R Y P R O D U C T S

NESTLE MILKPAK UHT MILKLaunched in 1981, i t has become synon ymous w i thqua l i t ym i l k . B a c k e d b y a v e r y s t r o n g b r a n d n a m e , a g g r e s si v e m a r k e t i n g a n d d i s t r i b u t io n p l a n s , c o n s i s t e n t q u a l i t y a n d a vai l a b i l i t y t h r o u g h o u t t h e y e a r , M I L K P A K U H T h a s b e e n extremely

successful. In September 1999, MILKPAK UHTmilkw a s l a u n c h e d a s N E S T L E M I L K P A K U H T M I L K .N E S T L E MILKPAK UHT MILK is avai lable in three pack sizes of 1000,500and 250 ml.

MILKPAK BUTTERA continuous bu tter-making machine was commissioned atKab i rwa lafactory in the year 2000 to produce high qual i tycul tured but ter. Thisnew but ter was an improvement uponthe earlier product and carries Nestlebranding that endorsesits super ior qual ity. It has an excellent taste and aromaand

is easy to spread.The new NESTLE BUTTER is available in twopack sizes of 200g and100g in new attractive packaging.

NESTLE PLAIN YOGURTLaunched in November 2000 in Lahore, NESTLE PlainYogurti s t h e l a t e s t a d d i t i o n t o N e s t l e M i l k p a k ' s d a i r y f a m i l y . I t su n i q u e ' S t a y F r e s h s e a l a n d a 2 1 - d a y s h e l f l i f e g i v e st he b r a n d a f o r m i d a b l e c o m p e t i t i v e a d v a n t a g e . T h e b r a n dprov ides va luab le access to fu tu re p roduc t l aunches in

the c h i l l e d p r o d u c t c a t e g o r y t h r o u g h a d e d i c a t e d c h i ll e d d i s t r i b u t io n . I n a ve r y s h o r t t im e t h e b r an d h a s g a i n e da s u b s t a n t i a l m a r k e t s h a r e . T h r o u g h f u t u r e e x p a n s i o n i n t o markets other than Lahore and a strong marketing and salessu ppo r t , NESTLE P la inYog urt wi l l und oub ted ly gro w into astrong brand and, in t ime, wi llachieve the s tatus o f marketleader.

MILKPAK UHT CREAM


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M I L K P A K U H T C R E A M w a s i n t ro d u c e d u n d e r t h e M I L K P A K b r an d i n 1 9 8 6 . I t i s a v a i l a b l e i n 2 0 0 -m l p a c k s i z e i n a n att ract ive slim pack. The consumer t rust in the brandnamea n d t h e p r o d u c t h a s e n s u r e d i t s d o m i n a n t s h a r e i n th e

cream category.MILKPAK CREAM was also int roduced in aneconomical1000ml pack size in the year 2000. This SKU hasbeen developed for FoodServices to cover institutions usinglarge quantities of fresh cream.

MILKPAK DESl GHEEMILKPAK DESI GHEE was introduced in 1986 in tin packaging. The packaging waslater changed to Tetra Pak. However, inline with the current market trend,MILKPAK DESI GHEEwasr e l a u n c h e d i n 1 K g t i n p a c k a g i n g i n t h e y e a r 2 0 0 0 .

T h e produc t was a l so in t roduced in 16kg t i n pack ing to tap thehugepotential of loose desi ghee.

NESTLE EVERYDAYTo target the massive potential offered by the tea-whiteningse gm en t,

NESTLE EVERYDA Y te a whi tene r wa s la unche d in 1992. Supportedby aggressive marketing using multi-mediaa c t i v i t i e s , f o c u s e d d i s t r i b u t i o n w i t h s a m p l i n g d r i v e s a n d excellent consumer acceptance, the brand has shown stronggrowth and holds goodpromise for the future.

NESTLE NIDONESTLE NIDO has been present in the Pakistan market sinceearly 70's andon account of the consumer confidence in itsq u a l i t y i t h a s b e c o m e a p i l l a r o f N e s t l s s u c c e s s . L o c a lp roduc t ion commenced in1990 and w i th in a sho r t t ime thebrandachie ved m arket leader s ta tus in the fu l l c ream mi lk powder category.Made from very superior quali ty mi lk andwit h th e ad di t io n of vi t am in s Aand D, NESTLE NIDO i s thebes t qua l i t y m i l k fo r g row ing ch i l d ren .The b rand has now l a u n c h e d a l o w u n i t p r i c e d S K U t h a to f f e r s h a l f a l i t e r o f qualit y m ilk at a very a ffo rdable p rice. NESTLENIDO is wellon its way to becoming a mega brand.

II. CHOCOLATE DRINKS

MILO POWDERT o p r o v i d e c o n v e n i e n c e t o c o n s u m e r s , N E S T L E M I L O w a s laun

ched in its new 130gm. SKU in an attractive airtight jari n F e b r u a r y 2 0 0 0 .T h i s w a s d o n e w i t h a v i e w t o b r i n g o u r p a ck ag in g i n l in e w it h t heindus t ry p rac t i ce o f mak ingm i l k f o r t i f i e r s a n d m o d i f i e r s a v a i l a b l e i n j a r s a n d t i n s a n d


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t o reverse the trend of consumer preference for imported MILOo r si mi la rpr od uc ts ov er lo ca l MIL O. Con su me r re sp on se to the new initiative hasbeen very positive.

MILO RTD

T o c a t e r f o r c o n s u m e r c o n v e n ie n c e , M I L O R T D ( r e a d y t o d r i nk ) w a s l a u n c h e d i n 1 9 9 5 a n d i s n o w a v a i l a b l e i n a n a t t r a ct i v e 18 0 m l s l i m p ac k . P op u l a r w i t h a l l ag e g r o u p s , e s p e c i a ll y a m o n g t h e g r o w i n g s e g m e n t o f n u t r i t i o n c onsciou s con sumers , i t i s an exce l lent s ubst i tu te fo r co ld drinks.III. COFFEE

NESCAFE CLASSICN E S C A F E , N e s t l s i n t e r n a t i o n a l f l a g s h i p b r a n d , i s l o c a l l y r e packed and marke ted in 2gm. and25 gm. Sachet , 75gm.bot t l es and50 0g m. So ft pa ck s. Th e br an d en jo ys a sp ec ia lposition in the country's

coffee consuming segment.

NESCAFE FROTHENESCAFE Fro the (Or ig ina l ) , a p remix in 18gm. s ing le ser vesachet ,was launched in January 2000. The produc t p ro f i l ew a s d e v e l o p e d t h r o u g h c o n s u m e r r e s e a r c h a n d wa s acco rd ing l y o ff e red as a sweet , c reamy and f oamycof fee .Encouraged by ex t remely good consumer response toth i scappucc ino s ty le co f fee , F ren ch Van i l l a and Mocha f l avors wereintroduced in November to offer a wider choice andt o e n h a n c e t h e y o u n g a n d f a s h i o n a b l e i m a g e o f t h i s m i x e s c a t e g o r

y.

NESCAFE FRAPPETo promote summer consumpt ion of cof fee and to changeconsumer

perception that coffee is only a winterbeverage,N E S C A F E F r a p p e w a s l a u n c h e d i n J u n e 3 0 0 0 . T h is i c e d , c r e a m y , r e a d y - t o -d r i n k c o f f e e i n 1 8 0 m l s l i m p a c k w a s pos i t i oned to appea lto the youth and gain a strong sharefrom other summer beverages. Thelaunch was extensivelysupported by promotional programs in major townsand theproduct is fast gaining in popularity.

IV. FRUIT DRINKS

FROSTA well -known brand, FROST was in troduced in 1986 and hasthe largestshare of the countrywide market. Positioned as a


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cold drink and alternate to cola drinks, its strength lies in theconvenience attached to itsusage.

NESTLE JUICESEncou raged by t he consumer response t o NESTLE ORANGE JU I C E

t h a t w a s l a u n c h e d i n 1 9 9 6 , t h e c a t e g o r y o f N E S T L E juices wasexpanded with the introduction of Mango-Orangea n d M a n g o f l a v o r s i n t h e y e a r 2 0 0 0 . T h i s ha s f u r t h e r s tr en gt he ne d t he p os it io n o f N e st le as le ad er in th evalueadded/premium drinks market. Consumer to gain further.V. DIETETIC & INFANT PRODUCTS

LACTOGENL A C T O G E N 1 a n d L A C T O G E N 2 a r e i n f a n t a n d f o l l o w -u p formulae launched in 1991 and are ava i lab le i n two s i zes . Thebrands provide both affordability and quality.

CERELACLaunched in 1989, CERELAC i s the dominant p layer i nt he g r o w i n g i n f a n t c e r e a l m a r k e t . A v a i l a b l e i n 5 f l a v o r s , t h e brand provides balanced nutrition to infants from 4 monthsonwards

NESTLE RICEAn affordable starter weaning cereal, NESTLE RICE offers theflex ib il it y ofpreparat ion with a variety of meals. Gluten free,t h e b r a n d i sa v a i l a b l e i n 1 2 5 g m . p a c k s a n d i s s p e c i a l l y suited to theneeds of infan ts from 4 months onwards. It was launched in 1994.

NESTLE WHEATNESTLE WHEAT is a wheat-based infant cereal without milk,for infants of 4months and above. It was launched in 1997 and is available in packs of 125 and250 gm.

NESLACNESLAC is a growing-up milk, formulated specially for 1 to4y e a r o l d s . I t c o n t a i n s j u s t t h e r i g h t b a l a n c e o f p r o t e i n s, ca lc ium, i ron , v i t amins and essent ia l m inera ls in o rder tocat er t o the nut r i t iona l nee ds o f a gr owin g ch i ld d ur i ng th is special age.

The product was launched in 1994.VI. CULINARY PRODUCTS

MAGGI 2-MINUTE NOODLESFast to cook, good to eat - MAGGI 2-MINUTE NOODLESwerel a u n c h e d w i t h l o c a l p r o d u c t i o n i n 1 9 9 2 a n d i n d o i n gs o Nestle pioneered the category of instant noodles in Pakistan.MAGGI 2-MINUTENOODLES have special appeal for


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children,a r e f u n t o e a t a n d o f f e r a r a n g e o f i n t e r e s t i n gf l a v o r s , n a me ly : Ch ic k en , Ma s al a, C hi l l y an d Ch at kh a ra .

A f fo rdab lyp r iced and backed by f ocused marke t ing ac t i v i t ies ,MAGGINOODLES have shown good progress in 2000.

MAGGI COLD SAUCESNestle entered the Cold Sauces' category in 1999 with the launch of MAGGIKetchup, MAGGI Mirch Maza and MAGGIKhatti Meethi - the first Imli sauce in Pakistan.Theinnovativet a s t e o f K h a t t i M e e t h i t o g e t h e r w i t h t h e m o r e t r a d i t i o na l tastes of Ketchup and Mirch Maza, were received well by theconsumers.O t h e r B r a n d s O f

Nestle:Quality is an essential ingredient in all the Nestl brands andalso Nestl brandsmaintain nutritional balance in a fastpacew o r l d , t h a t i s w h y p e o p l e a r o u n d t h e g l o b e c h o o s e . T

h e 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)

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

Pharmaceuticals (Ophthalmic drugs, lens-care solutions& optical surgical Instruments)

SWOT Analysis Of Nestle:


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STRENGTHS ----------------- TO BUILDONWEAKNESESS -----------------

TO COVEONOPPORTUNITIES---------------TOCAPTURETHREATS ----------------------- TODEFEND ON

STRENGHTS:

The greatest strength of nestle is that it includes a culturethat is team focused and anopen door policy. Nestle focuson collectivism and performance orientation attitudewhichencourages employees to work harder. Another thing is highlevel of market shareand that people all over the world trustand recognizes Nestle as a big brand name.Strength is thatpeople trust on Nestle. It looks at achieving higher volumesby renovatingexisting products and innovating newproducts. Strength is that they are low costoperators whichallow them to not only beat competition but also edgingahead operatingexcellence, innovation, renovation, productavailability and communication are majorstrengths.IT is an important aspect that people all around the worldare becoming moreconscious about health, thats why theyprefer Nestle.

The only brand in the area maintaining its

qualitya n d t a s t e a n d h a v i n g t h e s a m e i m p a c t o n i t s customerEconomicalPure Drinking Water in market (Free of chemicals)Strong Brand NameWEAKNESESS:

One major weakness of Nestle is that it is entering intomarkets that are already matureand can give a toughcompetition to new entrants. Nestle Plain Yogurt has provedto be aNestle weakness because it has been unable to makeits market place in USA. ButNestle by analyzing thesensitive areas can overcome its weaknesses.Communication is weakLack of AwarenessOPPORTUNITIES:Nestle in Pakistan has a great opportunity for expanding itsmarkets because in Pakistanthere is a large ready market of food and beverages due to trends of eating and

theincreasing .I t also has opportunities largely in China andIndia as well. Throughproper marketing research Nestle cancash on to these opportunities.Co nc en t r a t i n g on t h es e a r ea s ca n increase salesIncrease in product line.Threats:


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Nestle is facing the threats by worldwide community due toits violation of internationalmarketing standards. Manyconferences and campaigns have been held againstNestlein this regard which can damage the name and trust of itscustomers. Anotherthreat is due to the increasing popularityof its competitor OLPERS in local andinternational markets.

Segments are being shared by competitorsU n c e r t a i n c o n d i t i o n s w i l l e f f e c t t h e s a l e s (diseases of animals)Under cutting by competitors.RECOMMENDATIONS:The re are few rec omme nda t ion s t hat are rec omme nde d i f the project is

to be conducted again in future.

Employees should be trained according to the changingstandards of theorganization.

Company shou ld conduct survey f rom t ime to t ime toaccord ing towh ic h ch an ge s ca n be in tr od uce d in th e organization to stay updated in themarket.

They should introduce crea tivity into the work, so that the employees can dotheir work active mindedly.

Emp loye es sho uld be give n comp ens at io n in ord er to keep them loyal.

Employees should be more involved in decision makingto become moredifferentiated.

Company should provide incentives to shop keepers.FUTURE OF NESTLE:Nestle is today the worlds largest food and beveragecompany with its mission toprovide healthier lifestyle. It haslaunched many products in Pakistan the majority ofwhichare popular and among the market leaders. Nestle isinstalling new plants andimporting latest technologies toimprove. Moreover, innovation is one of itsgreateststrengths so it has a bright future in Pakistan.

REFERENCES:

W e h a v e c o l l e c t e d a l l t h e d a t a f r o m t h e following sources

www.nestle.com

By communicating with the employees

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