Acknowledgment

I hereby take this opportunity to thank Institute of business and technology (BIZTEK) for providing me an opportunity to do a research project on Nestle Milkpak. I express my sincere gratitude to my mentor and guide, Miss Duria Hassan who always provided me with necessary inputs, guidance and direction to carry out this project. He provided me access to different domains of knowledge from where I collected inputs for this project.

TABLE OF CONTENT:

PURPOSE OF THIS REPORT:
 This report is to give a slight insight about what customers really wants about Milkpak  People prefer Nestle Milkpak  What should be the future trend  Is there any threat to the industry  On the basis of survey conducted various findings and conclusion have been explained after analysis.

RESEARCH PLAN:
• Data source: Primary data Secondary data • Research approaches: Survey has been conducted to gather the primary data.

Research instrument: Questionnaire

DESIGN OF QUESTIONNAIRE:
Designed in a structured manner keeping in mind all the basic steps for construction of a questionnaire Sample size: 50 People from thefollowing areas Makro Tariq road

LITERATURE REVIEW: Introduction to Nestlé Pakistan and Milkpak

Nestlé Pakistan Limited (NPL), formerly known as Nestlé Milkpak Limited is a company that manufactures, processes and sells food products and ancillary equipment. The food products include dairy, confectionery, infant nutrition and culinary products, coffee, beverages and drinking water. The major brands include Milkpak UHT, Nestle Everyday, Lactogen and Nescafe.

Milkpak was first introduced in the market by Milkpak Ltd. in 1981 and originated the packaged milk category by which they pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk from rural areas across Punjab, processing the milk through UHT (Ultra-High Temperature Processing) treatment, and selling it to consumers in uniquely colored triangular and rectangular packs designed to prolong the milk’s quality. It was a simple solution, but difficult in practice: importing the stainless steel chilled containers required was prohibitively expensive. By 1988, the company purchased 120 tons of milk a day from 26,000 farmers. However Milkpak’s “Milk Packs” were very well-received and the brand soon became synonymous with quality milk. Its first real competition came in the form of Haleeb, which introduced distinctively blue tetra packs to the market in 1986. Then in 1988, Switzerland-based Nestlé SA, acquired a share in Milkpak Ltd and immediately began investing in milk cooling tanks. Between 1988 and 1992, 100 milk tanks were installed. 1992 onwards, with full support from the Nestlé headquarters in Switzerland, reorganisation of the milk collection operation and the provision of agricultural technical assistance became top priorities. The investment paid off. Within a decade, Nestlé's purchase of fresh milk had quadrupled, and the number of small farmers selling milk to Nestlé tripled. In 2008 the market share of Nestlé Pakistan in the dairy milk category has been estimated at 40 percent.

Brand Image of and Consumers’ Attitude towards Milkpak

The Consumers consider Nestle as the best quality product manufacturer and the same is reflected in the introduction and launch of Nestle MilkPak. It established its brand image very soon and many other organizations later followed the same pattern to introduce their brands in the same market which has now become fiercely competitive. MilkPak is maintaining its quality image and has been voted as the best brand on the attribute of Quality. Familiarity has been rated as the second most sought after feature and indicates the superior quality of marketing and promotional communications which are more directed towards consumers’ awareness of the benefits of packaged milk. Availability has been rated as third in the sequence and definitely indicates potential for improvement. Affordability has been graded as last by consumer voting indicating consumers’ sensitivity to frequent upward pricing of essential commodities. Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led the dairy market in the world’s fourth largest milk producing country for nearly two decades—without any real sustained competition. Engro Foods, in contrast, had only recently been established by Engro—a traditional giant in

Pakistan's chemical and fertilizer (yes,chemical and fertilizer) industry. Branding experts could not imagine how Olper’s could distance itself from its parent company’s incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the end of 2006, sales for Olper’s Milk had reached Rs.1 billion (approximately US$ 15 million) and in 2008, the brand has a market share of close to 22 percent—second only to Milk Pak (estimated at 40 percent). The critics had to grudgingly accept that the new entrant to the multi-billion rupee packaged milk category meant business. The packaged milk category was originated in 1981 by (quaintly named) Milk Pak, which pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk from rural areas across Punjab, processing the milk through UHT (UltraHigh Temperature Processing) treatment, and selling it to consumers in uniquely colored triangular and rectangular packs designed to prolong the milk’s quality. Milk Pak’s “Milk Packs” were very well-received and the brand soon became synonymous with quality milk. Its first real competition came in the form of Haleeb, which introduced distinctively blue tetra packs to the market in 1986.

Milk Pak, however, further grew in stature when Nestle used it to break into Pakistan's marketplace. By 2006, the dairy milk category was growing at 20 percent annually, and Milk Pak and Haleeb were well-entrenched brands with distinctive colors and brand promises of providing high quality, natural and healthy milk. Milk Pak was identified by its green and white packaging —the colors of the country—and offered a brand backed with the strong equity of Nestle, coupled with its own traditional heritage. Haleeb was recognized as the blue brand, and professed to have the "naturally thickest" milk. With the market dominated by two strong, familiar, and widely respected brands, the marketplace appeared completely impervious to newcomers. Milk Pak, however, further grew in stature when Nestle used it to break into Pakistan's marketplace. By 2006, the dairy milk category was growing at 20 percent annually, and Milk Pak and Haleeb were well-entrenched brands with distinctive colors and

brand promises of providing high quality, natural and healthy milk. Milk Pak was identified by its green and white packaging —the colors of the country—and offered a brand backed with the strong equity of Nestle, coupled with its own traditional heritage. Haleeb was recognized as the blue brand, and professed to have the "naturally thickest" milk. With the market dominated by two strong, familiar, and widely respected brands, the marketplace appeared completely impervious to newcomers.

RESEARCH RESULTS:
1. Do you buy open milk or tetra pack? o Open milk o Tetra pack milk o Combination of both

24%

28%
OPEN MILK TETRA PACK MILK COMBINATION OF BOTH

48%

This shows that out of 50 sample size half of the people like tetra milk
2. If you buy tetra milk then do you prefer Nestle MilkPak?

o Yes o No o Up to some extent

17% YES NO 23% 60% UP TO SOME EXTENT

This shows that 60% of people like MilkPak who use tetra milk pack.
3. Are you satisfied with MilkPak quality?

o Yes o No

9%

YES NO

91%

This shows that 69% of people are satisfied from MilkPak quality
4. Is there a need of improvement in MilkPak?

o Yes

o No

9%

YES NO

91%

This shows that few people want improvement in MilkPak

5. Is the taste of MilkPak good as compared to other tetra pack milk?

0% 23% 31%
very bad Bad Moderate Good Very Good

46%

This shows that taste of good milk is better than the other tetra milk.
6. Is the price of Milk Pak reasonable?

o Yes o No

14%

YES NO

86%

This shows that price of MilkPak is reasonable and people are willing to buy on this price.

7. Is MilkPak is easily available to you?

o Yes o No

14%

YES NO

86%

This show that Milkpak is easily available in market
8. Which tetra pack you will buy if MilkPak is not available to

you?

o Olper’s o Haleeb

o Good milk o ANY , Please specify______________________

14%

14%

41%

OLPER'S HALEEB GOOD MILK ANY OTHER

31%

This shows that people most like Olper’s in absent of MilkPak

CONCLUSION:
From our research we draw the conclusion that overall Nestlé MilkPak is doing quite well in the market. It has a good image among the consumers. It is renowned for its quality and being the pioneer of safe and good quality milk. It is selling well. The marketing of it is also being done quite well so there is no such need for Nestlé to do anything else. They also should be careful and not underestimate Olper’s as it has managed to provide stiff competition to MilkPak and Haleeb who are well established even though it was launched some time back.

BIBLIOGRAPHY:
http://www.nestle.pk/brands/nestle-milkpack.aspx http://www.brandsaward.com/2008/survey-nestle-milkpak.html www.scribd.com/doc/10125783/Marketing-Research-Reporton-Watch-industry?autodown=ppt http://www.brandchannel.com/features_effect.asp?pf_id=445 http://www.scribd.com/doc/13352395/MBA-Marketing-ProjectReport-on-Westside?autodown=doc Search engine used www.google.com

APPENDIX:
QUESTIONNAIRE PREFERENCE OF NESTLE MILKPAK 1. Do you buy open milk or tetra pack? o Open milk o Tetra pack milk o Combination of both 2. If you buy tetra milk then do you prefer Nestle Milk Pak? o Yes o No o Up to some extent 3. Are you satisfied with Milk Pak quality? o Yes o No

4. Is there a need of improvement in Milk Pak?

o Yes o No 5. Is the taste of MilkPak is good as compared to other tetra milk pack? o o o o o Very bad Bad Moderate Good Very good

6. Is the price of Milk Pak reasonable?

o Yes o No

7. Is Milk Pak is easily available to you?

o Yes o No
8. Which tetra pack you will buy if Milk Pak is not available

to you? o Olper’s o Haleeb o Good milk o ANY , Please specify______________________

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