You are on page 1of 47

“In the Name of Allah the

All Merciful, the Most
Merciful.”

Acknowledgment:
We are very grateful to many people
for their help and encouragement
during the project & writing of this
report. We especially want to thank
Sir M. Mubashir Hussain A ‘wan for
giving us & helping us in this project.

Good Food, Good Life

TABLE OF CONTENTS:
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

Good Food, Good Life

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 food processing company,
registered on the Karachi and Lahore stock exchanges. For 5 years in a row,
the company has won a place among the top 25 companies of the Karachi
stock exchange.

Headquartered in Lahore the company operates 5 production facilities. Two
of its factories in Sheikhupura and Kabirwala are multi products factories.
One factory in Islamabad and 2 in Karachi produce bottled water. Through
its effective marketing and vast sales and distribution network throughout
the country, it ensures that its products are made available to consumers
whenever, wherever and however.

In the line with Nestlé’s global philosophy, Nestle Pakistan is proud of its
commitment to excellence in product and safety and quality and providing

Good Food, Good Life

value and services to its consumers. On the social front it is very responsible
when it comes to environmentally sound business practices and corporate
social responsibility.
Nestle Pakistan operates in many ways but people products and brands are
the main flag bearers of the company’s image.

INTRODUCTION TO
NESTLE:
Today, Nestle is the world leading Food Company. Nestle
headquarters is in Switzerland. Its international R&D network supports the
products made in more than 500 factories in 86 countries. The Nestle
factories are operating in the region of:

1. Africa
2. America
3. Asia
4. Europe
5. Oceania

Being a company dedicated to food from the beginning, Nestle
remains sensitive to culinary and eating habits, and responds to specific
nutritional problems, whilst also setting and matching new trends such as
growing out-of-home consumption and caring about the well being of its
consumers.

Good Food, Good Life

Farine Lactée Henri Nestlé was being sold in much of Europe. However. the nest with a mother bird protecting her young. The 1920s saw Nestlé's first expansion into new products. Good Life . Nestlé's production had more than doubled. became the Company's logo and a symbol of the Company's care and attitude to life-long nutrition. after Nestlé's new formula saved the child's life. Nestlé's management responded quickly. Britain. By the end of the war. developed a food for babies who were unable to breastfeed. security and sense of family that are so essential to life. The Nestlé nest represents the nourishment. Germany and Spain. 1905-1918 In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. World War I created new demand for dairy products in the form of government contracts. 1918 -1938 After the war Government contracts dried up and consumers switched back to fresh milk. streamlining operations and reducing debt. and soon. People quickly recognized the value of the new product. By the early 1900s. MEANING OF NESTLE: Henri Nestlé endowed his company with the symbol derived from his name. the company was operating factories in the United States. HISTORY OF NESTLE: 1866 -1905 In the 1860s Henri Nestlé. a pharmacist. His family coat of arms. His first success was a premature infant who could not tolerate his mother's milk or any of the usual substitutes. with chocolate the Company's second most important activity Good Food.

Since 1996 there have been acquisitions including San Pellegrino (1997). Spillers Pet foods (1998) and Ralston Purina (2002). a USD 2. particularly Latin America. the most important being American food giant Carnation. Nestlé made its second venture outside the food industry by acquiring Alcon Laboratories Inc. Ironically. Crosse & Blackwell followed in 1950. Libby's (1971) and Stouffer's (1973). Factories were established in developing countries. as did Findus (1963). ice cream business into Dreyer's. Growth accelerated and companies were acquired. Good Life . In 1947 came the merger with Magi seasonings and soups. Profits dropped from $20 million in 1938 to $6 million in 1939. There were two major acquisitions in North America. 1996+ The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbled and world markets developed into more or less integrated trading areas..6bn acquisition was announced of Chef America. Nestlé merged its U. Nestlé's production and sales rose in the wartime economy. Inc.1938 -1944 Nestlé felt the effects of World War II immediately. the war helped with the introduction of the Company's newest product. and in August. Nescafe. which was a staple drink of the US military. 1944 -1975 The end of World War II was the beginning of a dynamic phase for Nestlé. both in 2002: in July. In 1984. 1975 -1981 Nestlé's growth in the developing world partially offset a slowdown in the Company's traditional markets. Good Food. Diversification came with a shareholding in L'Oréal in 1974.. 1981 -1996 Nestlé divested a number of businesses1980 / 1984.S. Nestlé's improved bottom line allowed the Company to launch a new round of acquisitions.

when our parent company Switzerland based on Nestle first acquired share in Milkpak. Sheikhupura factory starts the production of Nido Milk Powder cereals.  In 2005.  In 1997. Nestle takes over the running of company and begins to develop its Milk collection network.  In 1990. Nestle Milk collection system in Punjab matures and company is able to buy all its Milk from Formers instead of relying on contractors.  In 1996 Milkpak is renamed to Nestle Milkpak. Nestlé’s Vision: Good Food.  1n 1998. Is renamed again Nestle Pakistan.  1n 1992. Ltd. a plant is acquired at Kabirwala.  Nestle acquires 40% share in Milkpak. Nestle Milkpak Ltd. the Kabirwala plant becomes a fully owned unit of Nestle Pakistan. Good Life .Nestle In Pakistan:  Nestle have been serving Pakistani consumers since 1988.

people on the move want to be able to find good food wherever they are. This statement also reflects the image of high quality products that Nestle offers.” Mission Statement: “Nestle is dedicated to providing the best foods to people throughout their day. the quality of the products ultimately enhances the quality of the consumer’s life. Especially. This trust comes from a quality image that has been built up for over a century. we believe that research can help us to make better food. throughout their lives. Nestle has the advantage that it offers caterers.” Nestle has Good Food. fast food chains and other restaurants a complete range of high quality ingredients.” Nestle is not only Switzerland's largest industrial company. Everyday. the mission statement declares that Nestle has the ability to anticipate “…consumer’s needs and create solutions….“At Nestle. base products and meal components. but it is also the World's Largest Food Company. only Nestle can provide the best and most reliable food and beverage products to meet his/her needs throughout the day. In addition. Nestle contributes to your well-being and enhances your quality of life. Good Life . throughout the life. so that people live a better life. as well as leading consumer brands such as Nescafe. With our unique experience of anticipating consumers' needs and creating solutions. Quality is the cornerstone of the success of the Nestle Company. They are often reassured that they will find well-known brands out of home. throughout the world. The mission statement emphasizes on the fact that Nestle products are available in nearly every country around the world. Wherever one may live. Therefore. millions of people all over the world show their trust in the company by choosing Nestle products. whatever the time of day.

Finally. Nestle defines marketing as: “A social and managerial process where by individual & groups obtains good food and good life through creating and exchanging products and values. Good Life . the mission statement has been an important guideline for any SBU that the firm has started and this is portrayed by the success that each SBU of Nestle enjoys. Especially. the launch of Nestle Pure Life in Pakistan proves the accuracy of this fact. it is quite evident that the organization has actually implemented its mission statement in the business practices that it carries out. The two fold goals of Nestle marketing is to attract new customers by providing superior value and to keep and grow the current customers by delivering satisfaction.proven this ability a number of times by introducing new products that were required by consumers. Also.” Good Food. In Pakistan.  How Nestle Define Marketing: Building customer relationship based on customer value and satisfaction is at the very heart of modern marketing. there was a need for safe and healthy drinking water and Nestle responded to this consumer need by introducing Nestle Pure Life.

Over the course of the years. DYNAMIC EXPANSION : The history of Nestle includes the development of many different products as well as acquisitions. Good Life . as a general rule.  Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets. beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. and business partners. conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.  Nestlé does not favor short-term profit at the expense of successful long-term business development. although in certain areas. employees. legislation is the most effective safeguard of responsible conduct.  Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior. mainly abroad.  Nestlé believes that. consumers.  Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism. this enabled it to Good Food. additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.Nestlé’s Business Principle:  Nestlé's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders. mergers and the purchasing of shares in companies.

Nestle. The many possibilities can be collected into four groups of variables known as the four P's that are as follows: Good Food. in cosmetics (a large share holding in L'Oreal) and ophthalmic products (acquisition of Alcon Laboratories Inc. Good Life .) while continuing to give priority to food products. The marketing mix consists of every thing the firm can do to influence the demand for its products. Amongst the most important acquisitions were Carnation in Los Angeles (milk.broaden its range of products and diversify its operations. culinary products and pet foods) and more recently Row tree Mackintosh in York (chocolate and confectionery). also has interests in non-food sectors. while at the same time strengthening the economic foundations of the company. Biotin in Perigee (pasta) as well as Perrier in France (mineral water). Marketing Mix: Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to produce the response it wants in the target market. which does 98% of its business outside Switzerland.

Second part of labeling includes the quantity of product in grams along with ingredients and contents of chocolates and candies. while Polo is in three sizes. Nestlé kit Kat is in four sizes including K. packaging of the Kit Kat and Polo includes the Nestlé brand and logo. The packaging includes an expiry date and time along with a manufacture date. The labeling. Good Life .PRODUCT: Product stands for goods and services that the company offers to target market.1. Good Food. The shape and the color of the Kit Kat and Polo are quite attractive for the customers.K Chunky.

NESTLE MILKPAK UHT MILK is available in three pack sizes of 1000. DAIRY PRODUCTS  NESTLE MILKPAK UHT MILK Launched in 1981. MILKPAK UHT has been extremely successful. MILKPAK UHT milk was launched as NESTLE MILKPAK UHT MILK. 500 and 250 ml. it has become synonymous with quality milk. BRANDS IN PAKISTAN: I. Good Life . consistent quality and availability through out the year. aggressive marketing and distribution plans. This new butter was an improvement upon the earlier product and carries Nestle branding that endorses its superior quality. Backed by a very strong brand name. It has an excellent taste and aroma and is easy to spread.The new NESTLE BUTTER is available in two pack sizes of 200g and 100g in new attractive packaging.  NESTLE PLAIN YOGURT Good Food.  MILKPAK BUTTER A continuous butter-making machine was commissioned at Kabirwala factory in the year 2000 to produce high quality cultured butter. In September 1999.

Good Life . will achieve the status of market leader.MILKPAK CREAM was also introduced in an economical 1000ml pack size in the year 2000. However. Its unique 'Stay Fresh seal and a 21-day shelf life gives the brand a formidable competitive advantage. The consumer trust in the brand name and the product has ensured its dominant share in the cream category. in line with the current market trend. NESTLE Plain Yogurt will undoubtedly grow into a strong brand and. Through future expansion into markets other than Lahore and a strong marketing and sales support. In a very short time the brand has gained a substantial market share. The packaging was later changed to Tetra Pak. The product was also introduced in 16kg tin packing to tap the huge potential of loose desi ghee. This SKU has been developed for Food Services to cover institutions using large quantities of fresh cream. NESTLE Plain Yogurt is the latest addition to Nestle Milkpak's dairy family. in time.Launched in November 2000 in Lahore.  MILKPAK UHT CREAM MILKPAK UHT CREAM was introduced under the MILKPAK brand in 1986.  MILKPAK DESl GHEE MILKPAK DESI GHEE was introduced in 1986 in tin packaging. Good Food. It is available in 200-ml pack size in an attractive slim pack. MILKPAK DESI GHEE was relaunched in 1Kg tin packaging in the year2000. The brand provides valuable access to future product launches in the chilled product category through a dedicated chilled distribution.

The brand has now launched a low unit priced SKU that offers half a liter of quality milk at a very affordable price.  NESTLE NIDO NESTLE NIDO has been present in the Pakistan market since early 70's and on account of the consumer confidence in its quality it has become a pillar of Nestlé’s success. NESTLE NIDO is well on its way to becoming a mega brand. II. CHOCOLATE DRINKS  MILO POWDER Good Food. NESTLE NIDO is the best quality milk for growing children. NESTLE EVERYDAY tea whitener was launched in 1992. the brand has shown strong growth and holds good promise for the future. Supported by aggressive marketing using multi-media activities. Local production commenced in1990 and within a short time the brand achieved market leader status in the full cream milk powder category. Made from very superior quality milk and with the addition of vitamins A and D. NESTLE EVERYDAY To target the massive potential offered by the tea-whitening segment. focused distribution with sampling drives and excellent consumer acceptance. Good Life .

it is an excellent substitute for cold drinks. SKU in an attractive airtight jar in February2000. is locally repacked and marketed in 2gm. This was done with a view to bring our packaging in line with the industry practice of making milk fortifiers and modifiers available in jars and tins and to reverse the trend of consumer preference for imported MILO or similar products over local MILO.  MILO RTD To cater for consumer convenience. Popular with all age groups. Soft packs. MILO RTD (ready to drink) was launched in 1995 and is now available in an attractive 180ml slim pack. and25gm. especially among the growing segment of nutrition conscious consumers. COFFEE  NESCAFE CLASSIC NESCAFE. Consumer response to the new initiative has been very positive. bottles and 500gm.To provide convenience to consumers. III. Nestlé’s international flagship brand. Sachet. Good Life . Good Food. NESTLE MILO was launched in its new 130gm. 75gm.

Encouraged by extremely good consumer response to this cappuccino style coffee. creamy and foamy coffee. French Vanilla and Mocha flavors were introduced in November to offer a wider choice and to enhance the young and fashionable image of this mixes category. IV. NESCAFE Frappe was launched in June 3000. a premix in 18gm.  NESCAFE FROTHE NESCAFE Frothe (Original). The product profile was developed through consumer research and was accordingly offered as a sweet. single serve sachet. This iced. ready-to-drink coffee in180ml slim pack was positioned to appeal to the youth and gain a strong share from other summer beverages.The brand enjoys a special position in the country's coffee consuming segment. The launch was extensively supported by promotional programs in major towns and the product is fast gaining in popularity. was launched in January 2000. creamy. Good Life .  NESCAFE FRAPPE To promote summer consumption of coffee and to change consumer perception that coffee is only a winter beverage. FRUIT DRINKS  FROST Good Food.

DIETETIC & INFANT PRODUCTS  LACTOGEN LACTOGEN 1 and LACTOGEN 2 are infant and follow-up formulae launched in 1991 and are available in two sizes. Consumer to gain further.  CERELAC Good Food. Good Life .  NESTLE JUICES Encouraged by the consumer response to NESTLE ORANGE JUICE that was launched in 1996. V. Positioned as a cold drink and alternate to cola drinks. the category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavors in the year 2000. FROST was introduced in 1986 and has the largest share of the countrywide market. its strength lies in the convenience attached to its usage. This has further strengthened the position of Nestle as leader in the value added/premium drinks market.A well-known brand. The brands provide both affordability and quality.

iron.  NESTLE WHEAT NESTLE WHEAT is a wheat-based infant cereal without milk. NESTLE RICE offers the flexibility of preparation with a variety of meals. Good Food. The product was launched in 1994. It was launched in 1997 and is available in packs of 125 and 250 gm. packs and is specially suited to the needs of infants from 4 months onwards. the brand provides balanced nutrition to infants from 4 months onwards  NESTLE RICE An affordable starter weaning cereal.  NESLAC NESLAC is a growing-up milk. the brand is available in 125 gm. Good Life . vitamins and essential minerals in order to cater to the nutritional needs of a growing child during this special age. It contains just the right balance of proteins. Available in 5 flavors. CERELAC is the dominant player in the growing infant cereal market. It was launched in 1994. for infants of 4 months and above. formulated specially for 1 to 4 year olds. Gluten free. calcium.Launched in 1989.

MAGGI Mirch Maza and MAGGI Khatti Meethi . good to eat . Masala.VI. MAGGI 2-MINUTE NOODLES have special appeal for children. CULINARY PRODUCTS  MAGGI 2-MINUTE NOODLES Fast to cook. Good Food. were received well by the consumers.  MAGGI COLD SAUCES Nestle entered the Cold Sauces' category in 1999 with the launch of MAGGI Ketchup.MAGGI 2-MINUTE NOODLES were launched with local production in 1992 and in doing so Nestle pioneered the category of instant noodles in Pakistan. Affordably priced and backed by focused marketing activities. MAGGI NOODLES have shown good progress in 2000. Good Life . The innovative taste of Khatti Meethi together with the more traditional tastes of Ketchup and Mirch Maza.the first Imli sauce in Pakistan. Chilly and Chatkhara. namely: Chicken. are fun to eat and offer a range of interesting flavors.

that is why people around the globe choose. The detail of the Nestlé brand is as follows:  Baby foods (Nestlé Cerelac. NAN)  Breakfast cereals (Nestlé Cereals)  Dairy products (Milkpak. Dreyer’s)  Chocolate confectionary (Kit Kat. Nestlé juices)  Food service (Nestlé Jumbo Bottle)  Prepared foods (Maggi. Nestlé Aquarral) Good Food.Other Brands Of Nestle: Quality is an essential ingredient in all the Nestlé brands and also Nestlé brands maintain nutritional balance in a fast pace world. NIDO. Nestlé Yogurts. Good Life . Toffo)  Beverages (Nescafe. Smarties. Powered Soups)  Bottled water ( Nestlé Pure Life. Milo. Everyday)  Ice-creams (Movenpick. Nespray.

ONE. Felix. Cat Chow. Pet care (Pro Plan. Alpo)  Pharmaceuticals (Ophthalmic drugs. Fancy feast. lens-care solutions & optical surgical Instruments) Good Food. Good Life . Dog Chow. Purine.

Good Food. Good Life .

PROMOTION: Producing a quality product. or sums of the values that consumers exchange for the benefits of having or using the product or services. The price of Nestlé Kit Kat and Polo varies increases with the increase in its size. Nestlé' distribution is using the direct distribution channel to supply confectionary products weekly to the retailers.PLACING: Placing stands for company's activities that make the product available to the target consumer.2. pricing it attractively and making it available for the target consumer is not the only problem companies need to solve. 4. Good Life . 3. Good Food.PRICE: The amount of money charged for a product or service.

gift hampers. Good Food. The basic purpose is to explore the area that is being unexposed and to bring awareness in the people. In an area-storming activity. giving out products free. refrigeration. ready to drink. Q: W hat are the specific features of the product that makes it different from other similar products present in the market? A: Nestle has introduced the milk powder which outshined others because of its great taste. demands for personal and non-personal communication with the target customer to build a relationship with them. less volume. assuring customer satisfaction. attracts new customers. kites depending on the season (for existing and potential customers) are given.  Questionnaire: PRODUCT: Q: When was Nestle Instant Milk launched in the market? A: Nestle first launched its powder milk in the market in 2003 and then came the liquid powder. more stable shelf life. Good Life .Modern era is the era of communication with customer.

No other company dedicates so many human and financial resources to R&D as Nestle.Q: Is the product manufactured locally or imported? A: The entire production of the Nestle Everyday is carried out in Pakistan at Sheikhupura and Kabianwala. But we received an overwhelming acceptance and liking of the product. Q: When Nestle launched the product. Q: Did Nestle made any changes in the product or its manufacturing process since its launch? A: Yes. No other company matches the R&D presence of Nestle. Good Food. Good Life . Q: What is the role of Research and Development department in the development of the product? A: At Nestle the Research and Development department is called as the “APPLICATION GROUP”. the factory mil powders spray drying capacity was doubled in 1999 with commissioning of new evaporator. Q: Is the technology in making the products also local? A: No the technology is imported and is latest. do its sales excel or fell short of the company sales targets? A: the actual target is a company’s secret that will not be disclosed.

Q: Did the company ever have some problems with the product? A: There was a problem of segmentation but it was quickly taken into notice and the problem was readily removed.6 complaints 2006 --------------------------.2 complaints Good Food.Q: Is Nestle instant milk good for health. Good Life . is it according to international health standards? A: Over many years company’s primary concern has been to improve the quality and volume of milk for UHT processing and other milk based products. 2004 --------------------------. Q: Did Nestle receive any complaints about the product ever? A: yes. Q: What is the target market of product? A: The target market of the product is definitely he tea drinkers who have a choice and capacity for the best taste.4 complaints 2007 ---------------------------. but now the error rate has been reduced to zero. Q: Did the company have any special concept behind launching the product? A: It is designed to be used in general but it is popular mostly in offices and cafés for tea purposes.3 complaints 2005 --------------------------.

MC-DONALDS and PEARL CONTINENTAL Pakistan. Q: what about the packing of the product. other than that the product is made available in convenient sizes and attractive colors.Q: What is the current position of the product in the market? A: Well the product is matchless in quality and has no match. The WHITE color is the chief color to depict the color f milk. Good Life . Q: Who are the industrial consumers of Nestle Everyday instant milk? A: PIA. It has a sufficient name and place in the market. Good Food. Q: Who are the major competitors of product? A: competitors are Olpers (Angro) and Halib milk. any specifications? A: Yes the Nestle logo is a must. Q: How do you make sure that the cows which are milked are disinfected? Nestle has its own diary farms from which we collect milk and we have a special team of veterans who regularly inject animals against epidemic diseases. Q: Do the company donate any money from its product sales? A: On the basis of profit margin Nestle seldom make donations o non- profit organizations and charitable institutions.

we set price of our own.PRICE: Q: How do you set prices for your products? A: We set prices of our own because Nestle is the trend setter in the market. Q: Does competitors prices bother your price policy? A: Not really. Good Food. Q: On what scale prices are fixed? A: The prices are fixed on a reasonable scale so that majority of public can afford. Q: Do you give price discounts? A: Not to the final consumers but it can be considered for the he organizational consumers like Nestle has given discounts to PIA. Good Life . Q: What is the profit margin of the product? A: The profit margin is usually high because of the high quality of the product. Q: Does the prices fluctuate or they remain stable? A: As the product is a diary product so its prices generally trend to fluctuate.

Q: What is the share of promotion in overall project? A: It varies every year. Usually it is 40% of the product. It is kept secret b the company. PROMOTION: Q: What are the channels adopted for promotion? A: TV. Q: What is the nature of marketing for the product? Good Food. If the claim is valid then we can replace the products.Q: Do you have any price refund policy? A: No. we never return the paid money back. News papers. Q: Does Nestle have any brand ambassador? A: No. Q: Who are the sponsors of the company? A: Nestle does not have any sponsors. Good Life . magazines and doctors. Nestle has no brand ambassador. Q: What is the advertisement budget of the company? A: It is preplanned b the start of financial year.

Q: Does the product is sold directly to the consumers or via distributors? A: The product is not sold directly t the customers because of the extensive consumer groups. not really. Q: Is there any online promotion methods? A: In Pakistan. Q: What are the transportation modes of the product? Good Food. Good Life . Q: What are the insurance policies of companies? A: Insurance policies are maintained but they are highly confidential. PLACEMENT: Q: Where are the outlets of product located? A: These are located all over in Pakistan regardless of big and small cities. 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.A: The product is marketed aggressively in the market.

 The customer comes first We want to win and keep customers: distributors. Quality is our most successful product. It is the key to our success. compliance with all relevant laws and regulations is a must and is not negotiable. correct information and timely delivery. Customers expect us to keep this promise every time. Likewise. today and tomorrow. equipment and instruments are made available to ensure safety and conformity of Nestlé products at all times. A Nestlé brand name on a product is a promise to the customer that it is safe to consume. The effort is worth it.A: Usually mode of transportation is road. Consumers consider taste. STRATEGIES FOR COMPETIOTIVE ADVANTAGES: Every product on the shelf. Companies with huge quality standards make fewer mistakes. Good Life . supermarkets. hotels. They also make higher profits. waste less time and money and are more productive. They have very different requirements. that it complies with all regulations and that it meets high standards of quality. Q: Did customers or suppliers ever complaint about shortage of Instant Milk in market? A: No we have a well defined system to ensure that products at right time are at right place. Trade customers expect excellent service. People. appearance and price when they make Good Food. Q: Does the company uses any E-distribution for the product? A: Due to the distribution problems that a number of online firms face Nestle until now has no plans for E – distribution. shopkeepers and the final consumers. every service and every customer contact helps to shape this image. Under no circumstances will we compromise on the safety of a product and every effort must be made to avoid hazards to health.

We must watch and learn from our competitors. Quality policy and principles.  Quality is a competitive advantage We live in a competitive world and must never forget that our customers have a choice. Good Food. Further directions are given through instructions. so as to meet our requirements consistently. Quality departments monitor operations against agreed standards and must intervene in case of non-conformity. the mandatory standards and the recommended tools for implementation are laid down in the Nestlé Quality System that is applicable throughout the group. Not only Production units. Our business products. contract manufacturers and distributors are expected to share our concern for Quality. we must improve our own performance. Quality units at different levels of the organization provide specific support. Customers are central to our business and we must always respect their needs and preferences. They too must set up an adequate quality system. This implies a thorough knowledge of the products and services we offer. We can achieve competitive advantage through Quality. Our task is to understand what customers want and respond to their expectations rapidly and effectively. such as raw material producers. packaging suppliers. Purchasing. norms and guidelines. All customers. assume guardianship and audit the system. Success can never be taken for granted. When offering quality to customers we also mean environmental quality. Nestlé shares society’s concern for the environment and is committed to environmentally sound business practices throughout the world. but also Marketing. promote quality awareness. expect value for their money – good quality at a reasonable price. Distribution and Sales have a vital role to play in providing quality to customers. We serve various groups of consumers and there is demand for products at different levels of perceived quality and price. however. often specific to a product. If they are not reverent of quality and reduction cost. If they do something better. Good Life .  Quality is a joint effort Operating companies are fully responsible for maintaining agreed quality standards.their choice.

Every function and department in the company as well as our business partners must share the quality efforts. Good Life .  Quality is action Quality is the result of deliberate action. Each and every Nestlé employee must do his best to provide quality products and services. It is through many small improvements as well as through major breakthroughs that we will achieve excellence. so are involved and dedicated people. Continuous training ensures that everyone understands his tasks and has the necessary skills to carry them out. To stand still is to fall behind. It is then up to all employees to make Quality happen throughout the company. It is through employee involvement that goals and targets can be achieved in the shortest time. We motivate employees by demonstrating management commitment to Quality. We also must identify and take advantage of opportunities.  Quality is made by people Adequate equipment. by setting challenging goals and by giving them responsibility and recognition. Problems must be anticipated and prevented before they occur. It is the responsibility of senior managers to communicate the quality objectives and to provide the resources necessary for their implementation. procedures and systems are needed to make Quality. Shortcomings and mistakes must be analyzed and corrected. So we must strive for continuous improvement in every area. Teamwork allows us to achieve results that are greater than the sum of individual efforts. Training and teamwork are crucial to the successful implementation of high quality standards. Progress is followed by listening to our customers and by measuring our performance. Quality must be a way of life for everyone in the company. Good Food.

North.g. DEMOGRAPHICAL FACTOR: Good Food. South. Lahore is divided into five zones like East. West.MARKET SEGMENTATION: To occupy a clear distinctive & desirable place related to competing mineral water in the minds of the target customers Nestle Pure Life segments its market on two bases:  Geographic segmentation  Demographic segmentation GEOGRAPHICAL SEGMENTATION: The Company segments its market geographically on divisional basis. Good Life . and South west. They divide each division in different zones and every distributor is restricted to sale its products only in his own zone. E.

healthy drinking water.from infants to seniors. In fact. any belief and any income will drink water.If we look nestle pure life's demographic segmentation than we will find that our product is for every one.5 L bottle is targeting to be also an alternative to soft drinks. It was intended as a family product especially for families living in large. instead the goal was to develop a product to be used by consumers of all ages . Good Life . So targeting marketing depends on the awareness of the consumers. It is not any luxury item which is used by a specific people. Good Food. Targeting: A specific demographic target market was not chosen for Nestle Pure Life. People from any area. polluted urban agglomerations that experience increasing difficulties finding safe. As the people in villages having less information about Nestle Pure Life. Nestle Pure Life's 0. any sex. any culture. Basically the target market of nestle water is those areas where the consumers having more awareness about pure life. any age.

Micro marketing or Individual Marketing. Concentrate Marketing. The people are not aware to the pure life water that’s why their sale is low. Because Nestle is the market pioneer and at this stage its profit is negative or low due to low sale and high distribution and promotion expenses. SELETING TARGET MARKET Target Market Strategies Undifferentiated mass market. Differentiated Segmented Marketing. Other major reason to be at introduction stage is unawareness in rural areas. PRODUCT LIFE CYCLE: If we look nestle pure life water in product life cycle than it easy to judge that it is at introduction stage. by formulating new price strategies etc. Good Food. They can bring change in product life cycle by effective promotion. Good Life .

Nestle Pure Life Product Introduction growth maturity decline Development MARKETING ENVIRONMENT:  Internal environment  Micro environment  Macro environment Good Food. Good Life .

Good Food. accounting. which impact every department within an organization.  They are internal market. operations. research and development to achieve the goals of organization. Nestle under the supervision of top management runs the departments of finance.  They have direct impact on product quality. a satisfied internal market will be better able to satisfy external market. sales and marketing. Internal Environment: In Nestle Internal environment ensures  Employees are on side with the goals of an organization. Good Life . dependability and overall productivity.

supply shortages and delays to avoid increasing the cost of production. quantity. price and stability of both material and labor supplies. which can badly affect sales in short run and customer satisfaction in long run. They add to customer overall value delivery system. b) Marketing Intermediaries: It includes the firms that help the company to promote. Good Life . Management maps out the strategies for labor strikes. Good Food. Micro Environment: In Nestle microenvironment includes: a) Suppliers: Suppliers provide the resources like labor and material resources to produce goods and services. sell and distribute its goods to final buyers. Labor supplies include handling of  Quantity of labor  Quality of labor  Labor strikes  Labor relations Material supplies deals with the  Quantity of material  Quality of material  Price of material  Stability of material inputs  Delivery delays Nestle efficiently handles the quality.

insurance companies helps to finance transactions and insure against risks associated with buying and selling of goods.  Financial intermediaries like banks. cultural. c) Customers: Nestle deals with the reseller customers who buy the product Pure Life to resell at a reasonable profit. ORGANIZATION STRUCTURE: Nestle Pakistan Limited . Nestle works in coordination with marketing intermediaries to make its product Pure Life Water available and visible to its valuable customers.  The physical distribution firms determine the ways to store and ship goods to reach their destination. advertising agencies and media firms are also hired to target and promote product to right market. Good Life .  Macro Environment: Macro environment include political. economical factors but as for as Nestle Pure Life Water is concern none of above factors affect on it.  Marketing service agencies including marketing research firms.Company Profile Snapshot Company Nestle Pakistan Limited Profile: Good Food. Because it is not at luxury item they are selling necessities of life which can never be affected.

Good Life .TO DEFEND ON Good Food.TO BUILD ON WEAKNESESS ----------------.Ticker: NESTLE Exchanges: KAR 2007 Sales: 32.000 Major Food & Beverages Industry: Sub Industry: Diversified Food Country: PAKISTAN Employees: 2174 SWOT Analysis Of Nestle: STRENGTHS ----------------.031.TO COVE ON OPPORTUNITIES---------------TO CAPTURE THREATS ----------------------.000.

Another thing is high level of market share and that people all over the world trust and recognizes Nestle as a big brand name. Good Life . It looks at achieving higher volumes by renovating existing products and innovating new products. renovation. Nestle focus on collectivism and performance orientation attitude which encourages employees to work harder.STRENGHTS: The greatest strength of nestle is that it includes a culture that is team focused and an open door policy.  The only brand in the area maintaining its quality and taste and having the same impact on its customer  Economical  Pure Drinking Water in market (Free of chemicals)  Strong Brand Name Good Food. product availability and communication are major strengths. Strength is that people trust on Nestle. Strength is that they are low cost operators which allow them to not only beat competition but also edging ahead operating excellence. innovation. IT is an important aspect that people all around the world are becoming more conscious about health. that’s why they prefer Nestle.

Nestle Plain Yogurt has proved to be a Nestle weakness because it has been unable to make its market place in USA.  Communication is weak  Lack of Awareness OPPORTUNITIES: Nestle in Pakistan has a great opportunity for expanding its markets because in Pakistan there is a large ready market of food and beverages due to trends of eating and the increasing .WEAKNESESS: One major weakness of Nestle is that it is entering into markets that are already mature and can give a tough competition to new entrants.  Concentrating on these areas can increase sales Good Food. Good Life . Through proper marketing research Nestle can cash on to these opportunities. But Nestle by analyzing the sensitive areas can overcome its weaknesses.I t also has opportunities largely in China and India as well.

Good Food.  Company should conduct survey from time to time to according to which changes can be introduced in the organization to stay updated in the market. Good Life . RECOMMENDATIONS: There are few recommendations that are recommended if the project is to be conducted again in future.  Employees should be trained according to the changing standards of the organization. Many conferences and campaigns have been held against Nestle in this regard which can damage the name and trust of its customers. Increase in product line.  Segments are being shared by competitors  Uncertain conditions will effect the sales (diseases of animals)  Under cutting by competitors. Another threat is due to the increasing popularity of its competitor OLPERS in local and international markets. Threats: Nestle is facing the threats by worldwide community due to its violation of international marketing standards.

Good Food. Nestle is installing new plants and importing latest technologies to improve.  Employees should be more involved in decision making to become more differentiated. Good Life . Moreover. They should introduce creativity into the work. It has launched many products in Pakistan the majority of which are popular and among the market leaders.  Employees should be given compensation in order to keep them loyal. so that the employees can do their work active mindedly.  Company should provide incentives to shop keepers. FUTURE OF NESTLE: Nestle is today the world’s largest food and beverage company with its mission to provide healthier lifestyle. innovation is one of its greatest strengths so it has a bright future in Pakistan.

nestle.com  By communicating with the employees Good Food. Good Life .REFERENCES: We have collected all the data from the following sources.  www.