Contents

1. INTRODUCTION.....................................................................................................................................
1.1. Brief History.......................................................................................................................................
1.2. Location of Offices & Factories..........................................................................................................
Registered & Corporate offices..............................................................................................................
Factories................................................................................................................................................
Regional Sales Offices............................................................................................................................
1.3. Number of Total employees...............................................................................................................
1.4. Nature of the Business.......................................................................................................................
1.5. Key Players or Corporate Governess..................................................................................................
2. MISSION & VISION STATEMENT.............................................................................................................
2.1. Mission Statement.............................................................................................................................
2.2. Vision Statement................................................................................................................................
3. GOALS & OBJECTIVES.............................................................................................................................
4. EXTERNAL (PESTLE) & INTERNAL ASSESSMENT.....................................................................................
4.1. PESTLE Analysis..................................................................................................................................
4.1.1. Political & Legal Forces...................................................................................................................
 Taxation Law..................................................................................................................................
 Labor Laws.....................................................................................................................................
 Laws on hiring & promotions.........................................................................................................
 Environmental Protection Laws.....................................................................................................
 Foreign trade Regulations..............................................................................................................
 Attitudes towards foreign companies............................................................................................
 Political instability..........................................................................................................................
4.1.2. Economic Forces............................................................................................................................
 Inflation Rate.................................................................................................................................
 Economic growth rate....................................................................................................................
4.1.3. Social Forces & Cultural.................................................................................................................
 Health Consciousness....................................................................................................................
 Demographic Trend........................................................................................................................
 Environmental concerns................................................................................................................
 Work life quality.............................................................................................................................
 Lifestyle Changes...........................................................................................................................
4.1.4. Technological forces.......................................................................................................................
 New Products.................................................................................................................................
 Product innovation........................................................................................................................
 Productivity improvement through automation............................................................................
 Total spending on R&D...................................................................................................................
 New communication technology...................................................................................................
4.2. SWOT Analysis...................................................................................................................................
4.2.1. STRENGTHS....................................................................................................................................
  Parent support...............................................................................................................................
 Company Image.............................................................................................................................
 High Quality Products....................................................................................................................
 Well-developed strategy................................................................................................................
 Market Share.................................................................................................................................
 Good marketing skills and services................................................................................................
 Brand strength...............................................................................................................................
 Research & Development Team.....................................................................................................
 Product innovation........................................................................................................................
 HR department..............................................................................................................................
4.2.2. WEAKNESSES.................................................................................................................................
 Less Proactive................................................................................................................................
 Limited Distribution Channel.........................................................................................................
 No outlets in Pakistan....................................................................................................................
 More concerned about profit........................................................................................................
4.2.3. OPPORTUNITES..............................................................................................................................
 Support from Foreign Investors.....................................................................................................
 Enhance Distribution Channel.......................................................................................................
 Changing Social Trend....................................................................................................................
 Health conscious............................................................................................................................
 Market growth...............................................................................................................................
4.2.4. THREATS.........................................................................................................................................
 Government Regulation.................................................................................................................
 Increase in Competition among Competitor..................................................................................
 No Entry Barrier.............................................................................................................................
 Inflation rate..................................................................................................................................
 Unfavorable Changes in Consumer Demand..................................................................................
 Loss of Market Share.....................................................................................................................
4.3. Porter’s five forces Analysis...............................................................................................................
4.3.1. Threat of New Entrants..................................................................................................................
4.3.2. Bargaining Power of Suppliers.......................................................................................................
4.3.3. Bargaining Power of Buyers...........................................................................................................
4.3.4. Threats from Substitutes................................................................................................................
4.3.5. Competitive Rivalry........................................................................................................................
5. Competitive Analysis or Competitors Analysis..........................................................................................
6. PROBLEM SECTION FOR NESTLE............................................................................................................

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7. STRATEGIC SOLUTION TO PROBLEMS....................................................................................................
8. FUTURE PREDICTION & IMPLEMENTATION PLAN..................................................................................
9. CONCLUSION & RECOMMENDATIONS...................................................................................................

3
GROUP MEMBERS

Khalique Ahmad Ansari

Shehroze Ali
Muhammad Umer Dogar
Shehzad Shafique
Samraan Bukhari

4
“ACKNOWLEDGEMENT”

“In the Name of Allah most Merciful and most Beneficent ’’

We are very thankful to Almighty Allah who gave us the opportunity, courage and insight
to explore more knowledge to complete this whole and for his blessings that have brightened in
all parts of our lives and our parents whose prayers always supported us in every task. In
scripting this project, we were guided by our experience, knowledge and interest in the subject
“Introduction to Ideas”. Beyond of all the material available we are thankful to our respected
resource person “Sir.Tariq Jasim’’ for giving us such a deep knowledge about the subject, which
made “Business Policy” very interesting subject. That is possible due to his unique and natural
style of teaching we ever experienced during our academics and through his motivational
behavior we’re able to complete this difficult task.

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NESTLE PAKISTAN

INTRODUCTION

Nestle is the world's leading nutrition, health and wellness company today and was founded
in 1866 by Henri Nestlé. It has employed around 250,000 people and has factories or operations
in almost every country in the world. Nestle is the world's leading nutrition, health and
wellness company today. Being the world's leading bottled water company is based on a firm
economic model: strong brands, global presence, innovation capacity, environmental
stewardship and passionate people.

Brief History

Henri Nestlé, a pharmacist, developed a food for babies who were unable to breastfeed.
His first success was a premature infant who could not tolerate his mother's milk or any of the
usual substitutes which eventually became the first Nestle’s customer. After Nestlé's new
formula saved the child's life and soon, Farine Lactée was being sold in much of Europe.

After the major invention in 1874, Jules Monnerat purchased Nestle and collectively they
launched the condensed milk. In 1905 Nestle merged with Anglo-Swiss which was an condensed
milk company. Soon after Nestle established its roots all over Europe to cater the need of the
customers of Europe, as Nestle fame was on the top so Nestle thought to start the production
function all over the world to increase the customer demand and meet or capture more
markets.

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 Decision to go multinational was a fruitful idea, so as now nestle has operations in
America, India, England, Brazil, Australia, Pakistan, Hungary, France, Belgium, Italy, Spain and
various other countries around the globe. Nestle are now in all seven continents & having more
than 522 factories in 83 countries.

Location of Offices & Factories

Registered & Corporate offices

Nestle Pakistan Ltd.

308 – Upper Mall, Lahore 54000,

Pakistan

Factories

Sheikupura

29th kilometer, Lahore-sheikupura Road,

Sheikupura Punjab.

Kabirwala

10th kilometer, Khanewal-kabirwala Road,

Khanewal Pakistan.

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Islamabad

Plot No. 32, sector (1-10/3),

Industrial Area, Islamabad

Karachi

Plot No. A-23, Northwestern,

Industrial Zone, Port Qasim,

Karachi

Regional Sales Offices

North Zone:

Islamabad, Jehlum & Peshawar

Central Zone:

Lahore, Gujrawala, Faisalabad & Multan

South Zone:

Karachi, Quetta & Hyderabad

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 Number of Total employees

Nestle have more than 231,000 employees worldwide but however have more than
2500 employees in Nestle Pakistan. Nestle’s Pakistan is the best in its HR systems and which has
approximately 2435 employees.

Nestle’s performance is the result of professionally integrated management, investment

& technology & mostly the commitment of our workforce & employees, bonded together with
trust & integrity.

Nature of the Business

Nestle Pakistan is the FMCG company which has major industry to cater food &
beverages. Which has sub industry of Diversified goods for food and its major industry is FMCG
industry.

Major Industry: Food & Beverages

Sub Industry: Diversified food

Key Players or Corporate Governess

Success of Nestle Pakistan is due to the key people running the organization, the
organization works in team structure so that they can achieve the desired results. They form a
team every year to achieve the yearly milestones.

Top Management:

Syed Yawar Ali (Chairman)

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 Ian J. Donald (Managing director)

Syed Babr Ali (Director)

Syed Hyder Ali (Director)

Management Committee:

Khurram Zia (Business Executive Manager “Ambient Dairy”)

Uzma Qaiser Butt (Head of Human Resource)

Khurram Javed Maqbool (Business Manager “Chilled Dairy”)

Zafar Hussain (Head of Sales)

Due to this highly committed management personnel Nestle Pakistan achieved high
standards of quality & wellness.

MISSION & VISION STATEMENT

Mission Statement

“Nestlé is dedicated to providing the best foods to people throughout their day,
throughout their lives, throughout the world. With our unique experience of anticipating
consumers’ needs and creating solutions, Nestlé contributes to your well-being and enhances
your quality of life.”

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 Vision Statement

“The Nestlé global vision is to be the leading health, wellness, and Nutrition Company in
the world. Nestlé Pakistan subscribes fully to this vision. In particular, we envision to:

Lead a dynamic motivated and professional workforce – proud of its heritage and
bullish about the future.

Deliver shareholder value through profitable long-term growth, while continuing to

play a significant and responsible role in the social, economic and environmental
sectors of the country.”

GOALS & OBJECTIVES

Goals & Objective of Nestle Pakistan is Simple & well designed with the core strategy to
meet the demand of the consumers & to fulfill the needs of the customers. The goals &
objectives are;

To be the best & quality brand in Pakistan

To meet the needs & requirements of the consumers

To capture the desired market share

To dwell in to the life of people & consumers

To be the number one nutritious company of Pakistan

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To be the leading FMCG company around the world as well as in Pakistan

To be the socially responsible company & be helpful in bad times.

Nestle aims to be proactive innovation and renovation culture, which is the key to
Nestle’s success in the marketplace.

Nestle aims to have fully integrated systems with suppliers & retailers so that every
single market can be tapped & focused.

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EXTERNAL (PESTLE) & INTERNAL ASSESSMENT

PESTLE Analysis

PESTLE analysis is a powerful tools to visualize your external surroundings, which enables
you to understand the external factors such as Political, Economical, Social, technological, Legal
& environmental affecting your business. So for understanding Nestle’s position in the market &
to visualize the Nestle’s position among its competitor Pestle analysis is the best technique to

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understand the external forces.

Political & Legal Forces

Taxation Law

If government imposes heavy taxes on the industry then it badly effects the industry
growth. The taxes impose is from government side and it varies from industry to industry.
FMCG’s have to pay heavy taxation, changes in any taxation system can badly effect Nestle’s
productivity & sales (profits). Nestle’s some product has like butter and cream which has more
taxes.

Labor Laws

Labor is being privileged here having all the laws. Nestle company also follow these law
like government announce minimum salaries of an employ Rs 6000. But if any labor laws
changes it will affect the Nestlé’s management all to gather because it’s difficult to get potential
labor now a days. Nestle’s main aim to or key potential factor is to keep their employees happy
& contended because as one said happy employees happy management & it leads to prosperity.

Laws on hiring & promotions

Hiring & promotion is followed by law. People with better capabilities are privileged
because they deserve it, for the betterment of the organization. As well as a well educated&
skilled experienced person is a precious asset for the company suit should be hired on better

14
term & conditions and be promoted on the basis of it capabilities.

Environmental Protection Laws

They do concern for environment and contribute more and more for the betterment of
environment. Nestle’s considers a lot about CSR, Nestle is worldwide a environmental company
so as Nestle Pakistan, Nestle care for poor & urban areas, in the start Nestle gave the concept
about friendly environment & to care for your environment.

Foreign trade Regulations

Foreign trade regulation does not affect the overall policy and the working of the Nestle
because they operate nationally not internationally. However it affect when the condition get so
worst. But as the last two years whole the world is suffering from great depression so any
economy of the world.

Political instability

The government stability also plays a great role for any industry. In Pakistan government
face lot of difficulty from the side of terrorism and also its activity that badly effect environment
of the country which is totally very upset. Recently in Punjab instability of government creates
lot of problem for the industry like shortage of electricity that badly affects the industry
operational process. Nestle have not much affect this condition but in future it may be face
some difficulty for operating.

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 Economic Forces

Inflation Rate

Now in Pakistan inflation rate is almost 22.3%, so if any increase in inflation rate then
increase in prices of Nestle products which eventually affects the Nestle Pakistan. So inflation
rate affect mostly everyone in the industry so as nestle but nestle by the great decision making
able to retain 55% of market share in Milk & Nestle Pure life.

Economic growth rate

Economy growth rate accelerate is 7% and plus which eventually affect the Nestle
productivity & sales.

Social Forces & Cultural

Health Consciousness

Today people are more health conscious so Nestle products by identifying this need of
the people they are also producing health conscious products with more elements of pure &
quality, which create the market for Nestle & trend of its products in the market. However when
launches it Milk in 1988 back then it was not so much popular but now a day’s people are more
health conscious.

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 Environmental concerns

About the environmental concerns of Nestle products are the symbol of good health &
nutrition no matter which product is under consideration. Nestle also consider a lot about the
environmental factors because they are very much socially responsible towards nature &
humans.

Work life quality

Quality of work life is very safer & environment friendly company of the world as every
MNC is maintaining the same standards abroad with a slight cultural changes.

Technological forces

New Products

Nestle focusing concentric and conglomerate diversification because in present era it is

not possible for any organization to exist in market for long run by providing just one product.
So Nestle are diversifying according to changing demand of customers and trends. Nestle wants

17
to diversify its portfolio with the change or need of market needs.

Product innovation

Product innovation is becoming more necessary for the organization because of

globalization people are becoming aware about the changes being taken place around them so
in order tackle the situation nestle is focusing on product innovation by introducing new
products with help of technological factors.

Productivity improvement through automation

Automation doesn’t matter a lot but to some extent it contributes towards productivity
and improvement. Now by the help of technology Nestle maintain the efficient scale of
production which normally called economies of scale.

Total spending on R&D

Spending on R&D is long term investment for any organization. Nestle has R&D
department and Nestle total spending on R&D 70 millions. Because with true technological
changes this research & development cannot takes place. So with the help of technological
changes Nestle can enhance its products & diversify its portfolio of products.

New communication technology

All the modern as well as traditional ways of communication are being adopted by
Nestle including own emails, letters, faxes and monthly visit in different offices of Nestle for

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better communication among customers. Nestle has also established own web site which can
be visited any one for most recent news innovation and activities being taken in the
organization. With the technological change adoption the whole organization can be increased.

4.2. SWOT Analysis

4.2.1. STRENGTHS

 Parent support

Nestle Pakistan has a strong support from its parent company, which is the world’s
largest processed food and beverage company, with a presence in almost every country. The
company has access to the parent’s hugely successful global folio of products and brands.

 Company Image

Nestle company has a great image in the mind of people. Nestle company has worldwide
reputation which helps them to retain the market even in bad situations & unfavorable
conditions.

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 High Quality Products

Nestle produce a good quality products. Nestle cannot compromise on quality because
people are more quality conscious now a days, with the best quality they can attain customer
loyalty. Nestle being the worldwide renowned brand creates qualitative product to retain that
image.

Well-developed strategy

Nestle has recognizes there is a right time and place for their product; therefore, their
strategy makes room for adjustments, Nestle captured a market with great sweep with the
developed strategy.

Market Share

Nestle juices has a highest market share almost in every SBU’s line, such as in Milk pack
& Nestle pure life. High market share always depicts the quality of the firm & its strong
management decisions.

Good marketing skills and services

Nestle is now a days working on this concept because they want to increase their market
share. They are providing quality products to the customers that include their service and
product.

Brand strength

In Pakistan Nestle has some very strong brands like Nescafe, Maggie, Cereals, Nestle
water and these brands are almost generic to their product categories. So when a brand

20
becomes generic then it creates the feel of strong brand in the eyes of customers. Such as
Google.com etc.

Research & Development Team

Research and development department keeps Nestle in continuous knowledge about

itself and competitors. It has a competitor advantage because many local companies have no
research & development department.

Product innovation

The Company has been continuously introducing new products, thus expanding its
product offerings. With the extra ordinary technology adoption nestle able to produce
innovated products.

HR department

Nestle company has a strong HR department which depicts nestle’s strong committed
management of the company.

WEAKNESSES

Less Proactive

Nestle being a company is less proactive they create changes but usually unless
competitor doesn’t change they doesn’t adopt a change.

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 Limited Distribution Channel

Nestle’s major & bad factor is the limited distribution channel because they distributes
their products to whole seller in their own factory vehicles. As compare to their major
competitor they have limited distribution channel but they are maintaining to penetrate the
market as far.

No outlets in Pakistan

They don’t have direct outlets to whole sellers to create less burden on the factory
distribution channels however their competitors give them a major threat by this.

More concerned about profit

As being less proactive they are more concerned about profits, & their market share the
main objective of every company is to gain profits but as compare to competitors it’s a
drawback.

OPPORTUNITES

Support from Foreign Investors

Government support foreign investors to invest in Pakistan which eventually is the

opportunity for Nestle.

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 Enhance Distribution Channel

Nestle should be working on the distribution network to enhance the company’s

network against its competitor.

Changing Social Trend

Consumers in urban areas now adopt Western lifestyles, especially the younger
generation which is hugely influenced by the Western media. Younger consumers tend to follow
Western life style. There was an increase in demand for Nestle products over the review period.

Health conscious

Increasing health and hygiene awareness among Pakistanis has greatly increased sales of
nestle products. Both the government and the media have started health awareness campaigns
to make Pakistanis realizes that consumption of Nestle’s hygienic products is as essential as
eating food. Fruit/ juices & eatable products are doing very well in both urban and rural areas.

Market growth

Nestle market expands very fast. A new research proves that in future (2012) every
person use 85.5 liters juices per years & uses more hygienic products because of the low
hygienic conditions of the environment.

THREATS

Government Regulation

They face problem if government employ taxes on them which force them to raise the
price of their product.

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 Increase in Competition among Competitor

Competition among competitors is major threat to Nestle which can be controlled by the
help to retaining more customers & making more loyal ones.

No Entry Barrier

There are no many entry barriers so a large numbers of local companies enter in various
Nestle’s product market.

Inflation rate

Increase inflation rate very fast .In 2008 expected inflation rate 23.3% so with the
increasing inflation rate the prices will go down which creates the market slump, so inflation is
very true bad factor which can affect Nestle.

Unfavorable Changes in Consumer Demand

With the increase in the competitors there will be a increase in the number of related
products which eventually harm the Nestle’s market. Due to which the consumers demand
pattern fluctuate.

Loss of Market Share

When the market saturates the loss of the market share of Nestle’s products is there
major threat to Nestle.

In a conclusion we can say that whether the company is international or local both of the
organizations have strengths & weaknesses which lead them to avail opportunities & remove
threats. So for nestle it important or recommended that they should pay more attention to their

24
weaknesses & threats in order to compete for a long time & maintain the sustainable
competitive advantage. Nestle is doing so far in a good way they compete with their competitor
with full & strong response. They are proactive but less reactive which is not good for the firms
or organizations that are reactive.

Porter’s five forces Analysis

Michael Potter's five forces framework can be used to determine whether the industry is
attractive enough to sustain a small or medium size enterprise. The five forces of Entry,
Rivalry, Substitutes, Buyers and Suppliers jointly determine the intensity of competition and
profit potential for a small and medium size firm in a given industry or market sector. In
analyzing each market force, the question is whether it is sufficiently strong to reduce or
eliminate industry profits. The focus at this stage is at the industry level because industry
dynamics and profits of necessity dictate profits of other firms that enter the industry.

Threat of New Entrants

The threat of new entrance means when any other company that is not operate in that
product category but operate in the other product market or the company that start it new
venture see a opportunity in this field like juices and they decided to enter in this market. So
the current company that is operating in the market has a Low threat for the new entrance.
New entry can raise the threat of competition. But however the Nestle is big organization
being it competitor is not an easy task. There is some barrier for stop the new entrance

Economies of Scale

Product Differentiation

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Capital Requirements

Switching Costs

Access to Distribution Channels

Cost Disadvantages Independent of Scale

Government Policy

If all these things present in the market then no company want to enter in that market
because they know there is no any opportunity for it.

Bargaining Power of Suppliers

The company needs raw material, labors, component and other supplies. These
requirement leads to buyers-suppliers relationships between industry and the suppliers.
Suppliers, if powerful can exert an influence on the producing industry, such as selling raw
materials at high price to capture some of the industry profits. Suppliers have great bargaining
power if the company cannot produce its raw materials or other ingredients. Suppliers have
weak bargaining powers, if in the market many suppliers and demand of raw material is low.

The bargaining power is low because Nestle doesn’t rely on any supplier they produce there
on raw material or import it from parent company, even they have no reliance on the
distributors they have their own factory trucks to supply the material.

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 Bargaining Power of Buyers

Buyer power is the most important factor of porter’s fiver forces model, because buyer are
the consumers of the product, for nestle it’s a major impact factor because the competition is
intense & competitors have the same products may differs in quality but providing the same
needs. For that particular reason we can say that Nestle have high bargaining power from
buyers. They can lose the customer if the prices & quality form the competitor meet their
products.

So if Nestle can control the factor of their competitors may be they eliminate this buyer
power all to gather. After all switching cost not as much high to engage in using another brand
however nestle with the time & quality became a Generic brand in Pakistan.

Threats from Substitutes

Substitute products refer to products in other industries. To the economist, a threat of

substitutes exists when a product demand is affected by the price change of a substitute
product. A products price elasticity is effected by substitute product – as more substitute
become available, demand becomes more elastic since customer have more alternative . A
close substitute products constrains the ability of firms in an industry to raise prices.

Nestle have a major threat from it substitute products from other competitor due to which
there product can lost the market share, there are many competitors so the threat from
substitutes product are high.

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 Competitive Rivalry

The big factors determining the strength of rivalry is how actively and aggressively are rivals
employing the various weapons of competition in jockeying for a stronger market position and
seeking bigger sales. In the market rival create a great threat. Many companies introduce same
products such as milk, water, cereals & many more items to hamper the nestle’s impact in
market and increase threat. Many local company enter in market, there is also great threat for
establish company. Nestle also face lot of HIGH competitor rivalry.

In a nutshell now we can conclude whether the company is MNC or local it will face the
tough competition from its competitors because competitive edge is the most volatile thing in
business world now-a-days companies are reactive & they react to the change. We can conclude
that the FMCG industry is unfavorable for the new entrant to enter in the market. However
existing firms can control these five forces & attain the edge over their competitors as nestle is
following a sound strategy.

Competitive Analysis or Competitors Analysis

Nestle Pakistan have many competitors in market to cut their market & capture the
market they have. These competitors are;

Haleeb Ltd.

Engro food Ltd.

Shezan Ltd.

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 Others

They have to face many hurdles in order to be the best & deliver because they cutthroat
competition with all of the competitors.

“Do not Compete with your Rivals just make them Irrelevant”

Haleeb Ltd

Strengths

1.The thickest milk

2.Taste

3.Nutritious

4.Hygienic

5.Packaging

Weaknesses

29
1.Focus Shifted form Main Product to other products

2.Lack of Research & Development

3.Weak distribution

4.Low spending on advertisement

Engro Foods LTD

Strenghts

1.PR with farmers

2.Positive response form customers

3.Strong consumer &products research

4.Third generation plant

5.Haing a good reputation in the market by strong brand name

30
 Weaknesses

1.Packaging

2.Milk collection & distribution costs

3.Narrow brand portfolio

4.Under utilization of the capacity

5.Not yet ISO certified

PROBLEM SECTION FOR NESTLE

According to the analysis we did nestle only have few problem otherwise company is doing

31
their best in the industry so far. They have attained the highest market share for their brands.
The only problem they can face is from “pressure groups” & “limited Distribution Channel”.

Pressure groups or religious groups are the major threats to the Nestle’s management &
their targets. So to control the threats from the pressure groups good marketing strategy can be
adopt to eliminate the threat. Nestle should work on the distribution channel & expands the
distribution channel to control the market & untapped areas, which eventually give them an
edge to increase the market share of Nestle.

STRATEGIC SOLUTION TO PROBLEMS

Nestle’s problem can be eliminated by strategically thinking & implementing some strategies
which can be effective in terms of both profit & growth. Solutions to the problems which have
been discussed before is that ; for eliminating the pressure groups threat they should include a
strong religious person for advertising their products which can easily arose the demand for the
product & people have less question to ask. This will eventually increase the market share &
profit of the company through extensive sales. Taking an example same strategic strategy was
implemented in Pepsi Co. for Lays.

Strategically speaking as nestle falls in aggressive strategy, so they should go joint ventures
with their distributors cut short their own tensions & make others to their job as Pepsi co. have
Riaz bottlers for their distribution which eventually gave them an edge. So if they go forward
integration then they might be able to have more market share & demand for the product can
be increased & more market can be taped.

These are two extensive solutions for the problem faced by the management of Nestle, &
this should be taken in to account for the more market share.

32
33
FUTURE PREDICTION & IMPLEMENTATION PLAN

Nestle is planning to enhance its investments in Pakistan and by the year 2014, its total
stakes would reach an aggregate of $374 million. The company has chalked out long-term
investment plan. Nestle is setting up a most modern and latest milk plant with the cost of $ 70
million which will be operative within next couple of months. Company would invest to the tune
of $209 million in five years period ending 2010. Nestle is investing $70 million in milk
production by increasing capacity of milk powder by 40,000 tons annually; $44 million would be
injected in Sheikhupura factory, $12 has been allocated for expanding milk collection, and $31
million in bottled water plants.

Nestle can enhance the production capacity to control the demand & increase the more
demand with help of pull strategy. Going on Globe strategy can help them to increase the
market share & profits for the company.

CONCLUSION & RECOMMENDATIONS

Nestle is international organization, being an multinational is always great because it is

always backed up by the parent company but however Nestle Pakistan is doing best in this
region because of the static demand & less portfolio. Nestle management is key success factor
of the company they are highly committed & they do not compromise on their tasks. Quality &
sustainability is another factor that is giving nestle an edge against its competitors & Nestle
Pakistan is at top because of high demand & promising quality they provide.

34
 Recommendations are these, that NPL should diversify its product portfolio & introduce ice
cream & some other products which can cut the competition of the major players in Pakistan.
Dog items should be back up by the cash generated by cash cows & renovate them. Nestle
should increase the distribution Network & diversified their portfolio.

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