TABLE OFCONTENTS:

MISSION STATEMENT STORY OF NESTLE DYNAMIC EXPANSION BRANDS OF NESTLE BOARD OF DIRECTORS AUDIT COMMITTEE NESTLE’S 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 and Lahorestock 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 Nestlé’s 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 social responsibility.Nestle Pakistan operates in many ways but people productsand brands are the main flag bearers of the company’simage.

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 than 500factories in 86 countries. The Nestle factories are operatingin the region of:1 . A f r i c a

2 . A m e r i c a3 . A s i a4 . E u r o p e5 . O c e a n i a

Being a company dedicated to food from thebeginning, Nestle remains sensitive to culinary and eatinghabits, and responds to specific nutritional problems, whilstalso setting and matching new trends such as growing out-of-home consumption and caring about the well being of itsconsumers.MEANING OF NESTLE:Henri Nestlé endowed his company with the symbol derivedfrom his name. His family coat of arms, the nest with amother birdprotecting her young, became the Company'slogo and a symbol of theCompany's careand attitude tolife-long nutrition. The Nestlé nest represents thenourishment, security and sense of family that are soessential to life. HISTORY OF NESTLE:1866 -1905 In the 1860s Henri Nestlé, 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 Nestlé's newformula saved the child's life, and soon, Farine Lactée HenriNestlé was being sold in much of Europe.

1905-1918 In 1905 Nestlé merged with the Anglo-Swiss Condensed MilkCompany. By the early 1900s, the company was operatingfactories in the United States, Britain, Germany and Spain.World War I created new demand for dairy products in theform of government contracts. By the end of the war,Nestlé's production had more than doubled.1918 -1938 After the war Government contracts dried up and consumersswitched back to fresh milk. However, Nestlé's managementresponded quickly, streamlining operations and reducingdebt. The 1920s saw Nestlé's first expansion into newproducts, with chocolate the Company's second mostimportant activity1938 -1944 Nestlé felt the effects of World War II immediately. Profitsdropped from $20 million in 1938 to $6 million in 1939.Factories were established in developing countries,particularly Latin America. Ironically, the war helped with theintroduction of the Company's newest product, Nescafe,which was a staple drink of the US military. Nestlé'sproduction and sales rose in the wartime economy.1944 -1975 The end of World War II was the beginning of a dynamicphase for Nestlé. 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'Oréal in 1974.

1975 -1981 Nestlé's growth in the developing world partially offset aslowdown in the Company's traditional markets. Nestlé madeits second venture outside the food industry by acquiringAlcon Laboratories Inc...1981 -1996 Nestlé divested a number of businesses1980 / 1984. In 1984,Nestlé's improved bottom line allowed the Company tolaunch a new round of acquisitions, the most importantbeing American food giant Carnation.1996+  The first half of the 1990s proved to be favorable for Nestlé:trade barriers crumbled and world markets developed intomore or less integrated trading areas. Since 1996 there havebeen acquisitions including San Pellegrino (1997), SpillersPet foods (1998) and Ralston Purina (2002). There were twomajor acquisitions in North America, both in 2002: in July,Nestlé merged its U.S. ice cream business into Dreyer's, andin August, a USD 2.6bn acquisition was announced of Chef America, Inc.

Nestlé’s 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 throughout their day,throughout their lives, throughout the world.With our unique experience of anticipatingconsumers' needs and creating solutions,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's Largest Food Company. The missionstatement emphasizes on the fact that Nestle products 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 move want to be able to find good foodwherever they are, whatever the time of day. They are oftenreassured that they will find well-known brands out of home. This statement also reflects the image of high qualityproducts that Nestle offers. Nestle has the advantage that itoffers caterers, fast food chains and other restaurants acomplete range of high quality ingredients, base productsand meal components, as well as leading consumer brandssuch as Nescafe. Quality is the cornerstone of the success of the Nestle Company. Everyday, millions of people all overthe world show their trust in the company by 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 of theconsumer’s life.In addition, the mission statement declares that Nestlehas the ability to anticipate “…consumer’s needs and createsolutions….” Nestle has proven this ability a number of timesby introducing new products that were required byconsumers. Especially, the launch of Nestle Pure Life inPakistan proves the accuracy of this fact. In Pakistan, therewas a need for safe and healthy drinking water and Nestleresponded to this consumer need by introducing Nestle PureLife.Finally, it is quite evident that the organization hasactually implemented its mission statement in the businesspractices that it carries out. Also, the mission statement hasbeen an important guideline for any SBU that the firm hasstarted and this is portrayed by the success that each SBU of Nestle enjoys.

How Nestle DefineMarketing:Building customer relationship based on customer value andsa t i s fac t ion i s a t the very hear t o f modern marke t ing . The t 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  a t t r a c t   n e w customers by providing superior value and to keep and growt 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 g  a n d   e x c h a n g i n g  products and values

.”

 N e s t l é ’ s   B u s i n e s s Principle:•Nestlé's business objective is to manufacture andmarket the Company's products in such a way as tocreate value that can be sustained over the long termfor shareholders, employees, consumers, and businesspartners.•Nestlé does not favor short-term profit at the expenseof successful long-term business development.•Nestlé recognizes that its consumers have a sincereand legitimate interest in the behavior, beliefs andactions of the Company behind brands in which theyplace their trust and that without its consumers theCompany would not exist.•Nestlé believes that, as a general rule, legislation is themost effective safeguard of responsible 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.•Nestlé is conscious of the fact that the success of acorporation is a reflection of the professionalism,conduct and the responsible attitude of itsmanagement and employees. Therefore recruitment of the right people and ongoing training and developmentare crucial.•Nestlé continues to maintain its commitment to followand respect all applicable local laws in each of itsmarketsDYNAMICEXPANSION : The history of Nestle includes the development of manyd i f fe ren t p roduc ts as we l l as acqu is i t i ons , mergers and the purchasing of shares in companies, mainly abroad. Over thecourse o f the years , th i s enab led i t to b roaden i t s range o f  products and diversify its operations, while at  the same times t reng then ing   the  economic   founda t ions  o f   the  company .Amongst the most important acquisitions were Carnation inL 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 more recen t l y Row t ree Mack in tosh in York (choco la te and confectionery), Biotin in Perigee (pasta) as well as Perrier inF 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-foodsec to rs , in cosmet ics (a la rge share ho ld ing in L 'Orea l ) and ophthalmic products (acquisition of Alcon Laboratories Inc.)while continuing to give priority to food products.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 itwan ts in the ta rge t marke t . The marke t ing mix cons is ts o f  every th ing the f i rm can do to in f luence the demand fo r i t sp roduc ts . The many poss ib i l i t i es can be co l lec ted in to four groups of variables known as the four P's that are as follows:

1- PRODUCT:P r o d u c t   s t a n d s   f o r   g o o d s   a n d   s e r v i c e s   t h a t   t h e  c o m p a 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 é   k i t   K a t   i s   i n   fo u r   s i z e s including K.K Chunky, while Polo is in three sizes. The shapeand the color of the Kit Kat and Polo are quite attractive for the cus tomers . The labe l ing , packag ing o f the K i t Ka t andP o l o   i n c l u d e s   t h e   N e s t l é   b r a n d   a n d   l o g o .   T h e  p a c k a g i n g includes an expiry date and time along with a manufactured 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 e  q u a n t i t y   o f   p r o d u c t   i n   g r a m s   a l o n g   w i t h   i n g r e d i e n t s   a n d   c o n te n t s   o f   chocolates and candies

2- PRICE: The amount o f money charged fo r a p roduc t o r se rv ice , o r sums of the values that consumers exchange for the benefitso 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 c e   o f   Nestlé Kit Kat and Polo varies increases with the increase in its size.3- PLACING:

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  t h e product available to the target consumer. Nestlé' 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 n n 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 lab le fo r the ta rge t consumer i s no t the on lyprob lem compan ies need to so lve . Modern e ra i s the e ra o 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 s t 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 on - 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 m e r   t o   b u i l d   a relationship with them. In an area-storming activity, givingo 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 ; k i 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 d p o t e n t i a l cus tomers ) a re g iven . The bas ic purpose i s to exp lo re thearea 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 liquid powder.

Q:W hat are the specific features of the product that makesit different from other similar products present in themarket?A: Nestle has introduced the milk powder which outshinedothers because of its great taste, 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 the product?A

: At Nestle the Research and Development department iscalled as the “APPLICATION GROUP”. No other companymatches the R&D presence of Nestle. No other companydedicates so many human and financial resources to R&D asNestle.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 its launch?A:Yes, the factory mil powders spray drying capacity wasdoubled in 1999 with commissioning of new evaporator.Q:When Nestle launched the product, do its sales excel orfell short of the company sales targets?A:the actual target is a company’s secret that will not bedisclosed. But we received an overwhelming acceptance andliking of the product.Q: Is Nestle instant milk good for health; is it according tointernational health standards?A: Over many years company’s primary concern has been toimprove the quality and volume of milk for UHT processingand other milk based products.Q: What is the target market of product?A: The target market of the product is definitely he teadrinkers who have a choice and capacity for the best taste.Q: Did the company ever have some problems with theproduct?A: There was a problem of segmentation but it was quicklytaken into notice and the problem was readily removed.

Q: Did the company have any special concept behindlaunching the product?A: It is designed to be used in general but it is popularmostly in offices and cafés for tea purposes.Q: Did Nestle receive any complaints about the productever?A: yes, but now the error rate has been reduced to zero.2004 --------------------------- 3 complaints2005 --------------------------- 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 has nomatch. It has a sufficient name and place in the market.Q: Do the company donate any money from its productsales?A: On the basis of profit margin Nestle seldom 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 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 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 keptsecret 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?A: The product is marketed aggressively 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 consumer groups.Q: What are the insurance policies of companies?A: Insurance policies are maintained but they are highlyconfidential.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?A: Usually mode of transportation is road.Q: Did customers or suppliers ever complaint aboutshortage of Instant Milk in market?A: No we have a well defined system to ensure thatproducts at right time are at right place.Q: Does the company uses any E-distribution for theproduct?A: Due to the distribution 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 Nestlé 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 Nestlé products at all times. The effort is worthit. Companies with huge quality standards make fewermistakes, waste less time and money and are moreproductive. 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, shopkeepers and the final consumers. They have very different requirements. Trade customersexpect excellent service, correct information and timelydelivery. Consumers consider taste, appearance and pricewhen they make their choice. Our task is to understand whatcustomers want and respond to their expectations rapidlyand effectively. We serve various groups of consumers andthere is demand for products at different levels of perceivedquality and price. All customers, however, expect value fortheir money – good quality at a reasonable price. Whenoffering quality to customers we also mean environmentalquality. Nestlé shares society’s concern for the environmentand is committed to environmentally sound businesspractices throughout the world.Customers are central to our business and we must alwaysrespect their needs 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 advantagethrough Quality.Quality is a joint effort

Operating companies are fully responsible for maintainingagreed quality standards. Not only Production units, but alsoMarketing, Purchasing, Distribution and Sales have a vitalrole to play in providing quality to customers. This implies athorough knowledge of the products and services we offer.Quality units at different levels of the organization providespecific support, promote quality awareness, assumeguardianship and audit the system. Quality departmentsmonitor operations against agreed standards and mustintervene in case of non-conformity. Quality policy andprinciples, the mandatory standards and the recommendedtools for implementation are laid down in the Nestlé QualitySystem that is applicable throughout the group. Furtherdirections are given through instructions, norms andguidelines, often specific to a product. Our businessproducts, such as raw material producers, packagingsuppliers, contract manufacturers and distributors areexpected to share our concern for Quality. They too must setup an adequate quality system, so as to meet ourrequirements consistently.Every function and department in the company as well asour business partners must share the quality efforts.

Quality is made by peopleAdequate equipment, procedures and systems are needed tomake Qua l i t y ; so a re invo lved and ded ica ted peop le . Eacha n d   e v e r y   N e s t l é   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 i d e qua l i t y p roduc ts and serv ices . T ra in ing and teamwork a rec r u 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 i o n   o f   h i g h  q u a l i t y s t a n 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 ve r y o n e unders tands h is tasks and has the necessary sk i l l s to ca r ry them ou t . Teamwork a l lows us to ach ieve resu l t s tha t a 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 t e employees by demonstrating management commitment toQuality, by setting challenging goalsa 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 t  i s through employee involvement that goals and targets can beachieved in the shortest time. Quality must be a way of life for 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•Demographic segmentationGEOGRAPHICALSEGMENTATION: 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 product is for every one. People fromany area, any culture, any age, any sex, any belief and anyincome 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.Concentrate Marketing.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 is negativeor low due to low sale and high distribution and promotionexpenses. Other major reason to be at introduction stage isunawareness in rural areas. The people are not aware to thepure life water that’s why their sale is low. They can bringchange in product life cycle by effective promotion, byformulating new price strategies etc

MARKETINGENVIRONMENT

Internal environmentMicro environmentMacro environment

Internal Environment:In Nestle Internal environment ensures•Employees 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:

Suppliers provide the resources like labor and materialresources to produce goods and services. They add tocustomer overall value delivery system.Labor supplies include handling of •Quantity of labor•Quality of labor•Labor strikes•Labor relationsMaterial 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 andstability of both material and labor supplies. Managementmaps out the strategies for labor strikes, supply shortagesand delays to avoid increasing the cost of production,which can badly affect sales 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 to final buyers.• The physical distribution firms determine the ways tostore and ship goods to reach their destination.•Marketing service agencies including marketingresearch firms, advertising agencies and media firmsare also hired to target and promote product to rightmarket.•Financial intermediaries like banks, insurancecompanies helps to finance transactions and insureagainst risks associated with buying and selling of goods.Nestle works in coordination with marketingintermediaries to make its product Pure Life Wateravailable and visible to its valuable customers.c)Customers:Nestle deals with the reseller customers who buy theproduct Pure Life to resell at a reasonable profit.

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

BRANDS

I . D A I R Y P R O D U C T SNESTLE MILKPAK UHT MILK Launched in 1981 , i t has become synonymous w i th qua 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 s i v e m a r k e t i n g   a n d   d i s t r i b u t i o n   p l a n s ,   c o n s i s t e n t   q u a l i ty   a n d a v a i 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 UHT milkw 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 available in three pack sizes of 1000,500 and 250 ml.MILKPAK BUTTERA continuous butter-making machine was commissioned atKab i rwa la fac to ry in the year 2000 to p roduce h igh qua l i t y cultured butter. This new butter was an improvement uponthe earlier product and carries Nestle branding that endorsesits superior quality. It has an excellent taste and aroma and   is easy to spread.The new NESTLE BUTTER is available in twopack sizes of 200g and 100g in new attractive packaging.NESTLE PLAIN YOGURTLaunched in November 2000 in Lahore, NESTLE Plain Yogurti 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 s u 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 s t h e 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 d prov ides va luab le access to fu tu re p roduc t launches in thec 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 l l e d d i s t r i b u t i o n . I n a v e r y s h o r t t i m e t h e b r a n d h a s g a i n e d a 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 salessuppor t , NESTLE P la in Yogur t w i l l undoubted ly g row in to a strong brand and, in time, will achieve the status of marketleader.MILKPAK UHT CREAMM I L K P A K   U H T   C R E A M   w a s   i n t r o d u c e d   u n d e r   t h e   M I L K P A K  b r a n 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 attractive slim pack. The consumer trust in the brand namea 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  t h e  c ream ca tegory .MILKPAK CREAM was a lso in t roduced in an economical 1000ml pack size in the year 2000. This SKU hasbeen developed for Food Services to cover institutions usinglarge quantities of fresh cream.MILKPAK DESl GHEEMILKPAK DESI GHEE was introduced in 1986 in tin packaging. The packaging was later changed to Tetra Pak. However, inline with the current market trend, MILKPAK DESI GHEE wasr 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 lso in t roduced in 16kg t in pack ing to tap the huge potential of loose desi ghee.NESTLE EVERYDAY  To target the massive potential offered by the tea-whiteningsegment , NESTLE EVERYDAY tea wh i tener was launched in 1992. Supported by 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 good promise for the future.NESTLE NIDONESTLE NIDO has been present in the Pakistan market sinceearly 70's and on 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 é ’ s   s u c c e s s .  L o c a l p roduc t ion commenced in1990 and w i th in a shor t t ime thebrand ach ieved marke t leader s ta tus in the fu l l c ream mi lk powder category. Made from very superior quality milk andwi th the add i t ion o f v i tamins A and D, NESTLE NIDO is thebes t qua l i t y m i l k fo r g row ing ch i ld 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 t o f f e r s h a l f a l i t e r o f   quality milk at a very affordable price. NESTLE NIDO is wellon its way to becoming a mega brand.II. CHOCOLATE DRINKSMILO POWDER  T 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 launched in its new 130gm. SKU in an attractive airtight jar i 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 packag ing in l i ne w i th the indus t ry p rac t i ce o f mak ing mi 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  t o reverse the trend of consumer preference for imported MILOor s im i la r

produc ts over loca l MILO. Consumer response to the new initiative has been 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 i e n c e ,   M I L O   R T D   ( r e a d y  t o d r i n k )   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 na t t r a c t i v e   1 8 0 m l   s l i m   p a c k .   P o p u l a r   w i t h   a l l   a g e   g r o u p s , e s p ec i a l l 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 on consc ious consumers , i t i s an exce l len t subs t i tu te fo r co ld drinks.III. COFFEENESCAFE CLASSICN E S C A F E ,   N e s t l é ’ 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 repacked and marke ted in 2gm. and25gm. Sache t , 75gm.bo t t les and 500gm. So f t packs . The b rand en joys a spec 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 servesache t , was launched in January 2000 . The p roduc 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  w a s accord ing ly o f fe red as a sweet , c reamy and foamy co f fee .Encouraged by ex t reme ly good consumer response to th iscappucc ino s ty le co f fee , F rench Van i l l a and Mocha f lavors were introduced in November to offer a wider choice and toe 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 category.NESCAFE FRAPPE To p romote summer consumpt ion o f co f fee and to change consumer perception that coffee is only a winter beverage,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 i s   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 ioned to appea l to the you th and ga in a s t rong share from other summer beverages. The launch was extensivelysupported by promotional programs in major towns and theproduct is fast gaining in popularity.IV. FRUIT DRINKSFROSTA well-known brand, FROST was introduced in 1986 and hasthe largest share of the countrywide market. Positioned as a  cold drink and alternate to cola drinks, its strength lies in theconvenience attached to its usage.

NESTLE JUICESEncouraged by the consumer response to NESTLE ORANGE   J U 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 was expanded 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  h a s   f u r t h e r s t reng thened the pos i t ion o f Nes t le as leader in the va lueadded/premium drinks market. Consumer to gain further.V. DIETETIC & INFANT PRODUCTSLACTOGENL 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 fo rmu lae launched in 1991 and a re ava i lab le in two s izes .  The brands provide both affordability and quality.CERELACLaunched in 1989 , CERELAC is the dominan t p layer in theg 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 monthsonwardsNESTLE RICEAn affordable starter weaning cereal, NESTLE RICE offers theflexibility of preparation with a variety of meals. Gluten free,t h e b r a n d i s a 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 the needs of infants from 4 months onwards. It waslaunched in 1994.NESTLE WHEATNESTLE WHEAT is a wheat-based infant cereal without milk,for infants of 4 months and above. It was launched in 1997and is available in packs of 125 and 250 gm.NESLACNESLAC is a growing-up milk, formulated specially for 1 to 4y 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 tamins  and  essen t ia l  m inera ls   in  o rder   toca te r to the nu t r i t i ona l needs o f a g row ing ch i ld dur ing th is special age. The product was launched in 1994.VI. CULINARY PRODUCTSMAGGI 2-MINUTE NOODLESFast to cook, good to eat - MAGGI 2-MINUTE NOODLES werel 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 g  s o Nestle pioneered the category of instant noodles in Pakistan.MAGGI 2-MINUTE NOODLES have special appeal for 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 g  f l a v o r s , namely : Ch icken , Masa la , Ch i l l y and Chatkhara .

Af fo rdab lypr i ced and backed by focused marke t ing ac t i v i t i es , MAGGINOODLES have shown good progress in 2000.MAGGI COLD SAUCESNestle entered the Cold Sauces' category in 1999 with the launch of MAGGI Ketchup, MAGGI Mirch Maza and MAGGIKhatti Meethi - the first Imli sauce in Pakistan. The innovativet 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 n a 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 Nestlé brands andalso Nestlé brands maintain nutritional balance in a fast pacew 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 Nestlé brand is as follows:Baby foods (Nestlé Cerelac, NAN)Breakfast cereals (Nestlé Cereals)Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts,Everyday)Ice-creams (Movenpick, Dreyer’s)Chocolate confectionary (Kit Kat, Smarties, Toffo)Beverages (Nescafe, Milo, Nestlé juices) Food service (Nestlé Jumbo Bottle)Prepared foods (Maggi, Powered Soups)Bottled water ( Nestlé Pure Life, Nestlé 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:

STRENGTHS ----------------- TO BUILDONWEAKNESESS ----------------- TO COVEONOPPORTUNITIES---------------TOCAPTURETHREATS ----------------------- TODEFEND ON

STRENGHTS: The greatest strength of nestle is that it includes a culturethat is team focused and an open door policy. Nestle focuson collectivism and performance orientation attitude whichencourages employees to work harder. Another thing is highlevel of market share and 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 renovating existing products and innovating newproducts. Strength is that they are low cost operators whichallow them to not only beat competition but also edgingahead operating excellence, innovation, renovation, productavailability and communication are major strengths.IT is an important aspect that people all around the worldare becoming more conscious about health, that’s 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 customer•Economical•Pure Drinking Water in market (Free of chemicals)•Strong Brand NameWEAKNESESS:One major weakness of Nestle is that it is entering intomarkets that are already mature and can give a toughcompetition to new entrants. Nestle Plain Yogurt has provedto be a Nestle weakness because it has been unable to makeits market place in USA. But Nestle by analyzing thesensitive areas can overcome its weaknesses.•Communication is weak•Lack of AwarenessOPPORTUNITIES:Nestle in Pakistan has a great opportunity for expanding itsmarkets because in Pakistan there 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. Through proper marketing research Nestle cancash on to these opportunities.•C o n c e n t r a t i n g   o n   t h e s e   a r e a s   c a n increase sales•Increase in product line.Threats:

Nestle is facing the threats by worldwide community due toits violation of international marketing standards. Manyconferences and campaigns have been held against Nestlein this regard which can damage the name and trust of itscustomers. Another threat is due to the increasing popularityof its competitor OLPERS in local and international markets.•Segments are being shared by competitors•U 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: There a re few recommendat ions tha t a re recommended i f   the project is to be conducted again in future.Employees should be trained according to the changingstandards of the organization.Company shou ld conduc t su rvey f rom t ime to t ime toaccord ing to wh ich changes can be in t roduced in the organization to stay updated in the market. They should introduce creativity into the work, so that the employees can do their work active mindedly.Employees shou ld be g iven compensa t ion in o rder to keep them loyal.Employees should be more involved in decision makingto become more differentiated.Company should provide incentives to shop keepers.FUTURE OF NESTLE:Nestle is today the world’s largest food and beveragecompany with its mission to provide healthier lifestyle. It haslaunched many products in Pakistan the majority of whichare popular and among the market leaders. Nestle isinstalling new plants and importing latest technologies toimprove. Moreover, innovation is one of its greateststrengths 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.comBy communicating with the employees