EXECUTIVE SUMMARY

Nestle
Nestle has been serving this world for over one hundred and thirty years.
It has differentiated itself through its high quality product mix and positioned
itself as health and Nutrition Company while targeting the health conscious
people throughout
throughout the world. Nestle
Nestle started
started its operations
operations in Pakistan
Pakistan back in
1988,
1988, by acquiri
acquiring
ng a diary
diary compan
companyy MILKPA
MILKPAK
K LTD,
LTD, when
when people
people of Pakist
Pakistan
an
actually needed it.
Since Pakistan is the fifth world’s largest milk producing country therefore nestle
deals mainly in dairy products. Moreover it also sells juices, chocolates, prepared
food
food like
like nood
noodle
les,
s, baby
baby food,
food, infa
infant
nt formu
formula
la milk
milk and
and breakf
breakfast
ast cerea
cereals
ls in
Pakistan.
Nestle is a low cost leader with its efficient operations hence it provides its
custo
custome
mers
rs with
with high
high qual
qualitityy produ
product
ctss and
and sell
sellss them
them at a prem
premiu
ium
m pric
price.
e.
Therefore it is earning good profits.
Nestle
Nestle has set its manufactu
manufacturin
ring
g plants
plants at in Karachi
Karachi,, Lahore,
Lahore, Islamabad
Islamabad and
Kabirwala. The milk processing plant at Kabirwala district is the Nestlé’s world
largest milk processing plant.
When nestle introduced its products in Pakistan people were neither aware nor 
accustomed to them. Therefore nestle ran an extensive marketing campaign to
educate people and create a need for its products.
Pakistan
Pakistan is a land where fresh eatables are readily
readily available.
available. Nestle should sell
the
the same
same qual
qualitityy of produ
product
ctss in Paki
Pakist
stan
an as it sell
sellss abroa
abroad.
d. It shoul
should
d also
also
introduce more brands in Pakistani market which it offers in other markets of the
world since consumers in Pakistan are becoming more demanding day by day.
 INTRODUCTION
Nestlé at a Glance
The story begins in 1867, when Henri Nestlé developed a baby formula that
save
saved
d a chil
child'
d'ss life
life and
and mark
marked
ed the
the begi
beginn
nnin
ing
g of Nest
Nestlé
lé's
's deca
decade
des-
s-ol
old
d
commitment to nutrition. In the 140 years since then, they have expanded around
the world and developed a range of products designed to suit every taste, need
and cultural preference. Their distinctive seal is recognized everywhere as a
guarantee of quality and healthfulness.
Nutrition, quality and convenience remain the keystones of their products and
even as they confront the new century's challenges, they feel it is their duty to
adapt to the changing needs of consumers. Their responsibility does not simply
lie in perfecting the products they develop at their R&D centers spanning four 
continents, but the role their products play in making lives well - both for their 
consumers and for communities in the countries they serve.
Worldwide Presence
Today, Nestlé SA is the world's largest Food and Beverages Company, and a
global leader in health, nutrition and wellness. Consumers around the world, from
village
village squares
squares in Nigeri
Nigeria
a to the skyscraper
skyscraperss of New York and Chicago,
Chicago, are
united by the Nestlé promise of quality, taste, nutrition and convenience.
Thoug
Though
h head
headqu
quart
artere
ered
d in Veve
Vevey,
y, Swit
Switzer
zerla
land,
nd, they
they now
now have
have 487
487 fact
factori
ories
es
dotted around the globe, employing over 250,000 people in 86 countries. Their 
products are available in almost every country.
 Nestlé International History

History of Nestlé
1866-1905
the key factor which drove the early history of the enterprise that would become
The
The Nestl
Nestlé
é Comp
Company
any was
was Henri
Henri Nest
Nestlé
lé's
's search
search for
for a healt
healthy
hy,, econom
economic
ical
al
alternative to breastfeeding for mothers who could not feed their infants at the
breast.
breast. Nestlé
Nestlé’s
’s first
first product
product was called
called Farine
Farine Lactée
Lactée (“corn
(“corn flour
flour gruel”
gruel” in
French) Henri Nestlé. Nestlé's first customer was a premature infant who could
tolerate neither his mother's milk nor any of the conventional substitutes, and had
been given up for lost by local physicians.
People quickly recognized the value of the new product, after Nestlé's new
formula saved the child's life and within a few years, Farine Lactée Nestlé was
being marketed in much of Europe.
The Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans
Charles and George Page, broadened its product line in the mid-1870s to include
cheese and infant formulas. The Nestlé Company, which had been purchased
from
from Henri
Henri Nest
Nestlé
lé by Jule
Juless Monn
Monnera
eratt in 1874,
1874, respo
respond
nded
ed by launch
launchin
ing
g a
conde
condens
nsed
ed milk
milk produ
product
ct of its
its own.
own. The
The two
two compa
compani
nies
es rema
remain
ined
ed fierc
fierce
e
competitors until their merger in 1905.
Some other important firsts occurred during those years. In 1875 Vevey resident
Daniel Peter figured out how to combine milk and cocoa powder to create milk
chocolate. Peter, a friend and neighbor of Henri Nestlé, started a company that
quickly became the world's leading maker of chocolate and later merged with

Nest
Nestlé
lé.. In 1882
1882 Swis
Swisss mill
miller
er Juli
Julius
us Maggi
Maggi creat
created
ed a food
food produ
product
ct util
utiliz
izin
ing
g
legumes that was quick to prepare and easy to digest.
His instant pea and bean soups helped launch Maggi & Company..
 1905-1918
The Company formed by the 1905 merger was called the Nestlé and Anglo-
Swiss Milk Company. By the early 1900s, the Company
Company was operating factories
factories
in the
the Unit
United
ed Stat
States
es,, Brit
Britai
ain,
n, Germ
German
anyy and
and Spai
Spain.
n. In 1904
1904,, Nest
Nestlé
lé adde
added
d
chocolate to its range of food products after reaching an agreement with the
Swiss General Chocolate Company.
Condens
Condensed-m
ed-milk
ilk exports
exports increas
increased
ed rapidl
rapidlyy as the Company
Company replaced
replaced sales
sales
agents with local subsidiary companies. In 1907, the Company began full-scale
manufacturing in Australia, its second-largest export market. Warehouses were
built in Singapore, Hong Kong, and Bombay to supply the rapidly growing Asian
markets.
Most production facilities remained in Europe, however, and the onset of World
War I brought
brought severe
severe disrupt
disruptions
ions.. Acquiri
Acquiring
ng raw materia
materials
ls and distrib
distributi
uting
ng
products
products became increasingly
increasingly difficult.
difficult. Fresh-milk shortages throughout
throughout Europe
forced factories to sell almost all their supplies to meet the needs of local towns.
Nevert
Neverthele
heless,
ss, the war create
created
d tremen
tremendous
dous new demand
demand for dairy
dairy product
products,
s,
largely in the form of government contracts. To keep up, Nestlé purchased
several existing factories in the United States. By war's end, the Company had
40 factories, and its world production had more than doubled since 1914.
1918-1938
The end of World War I brought with it a crisis for Nestlé. Government contracts
dried up following the cessation of hostilities, and civilian consumers who had
grown accustomed to condensed and powdered milk during the war switched
back to fresh milk when
it became available again. In 1921, the Company recorded its first loss. Nestlé's
management responded quickly, bringing in Swiss banking expert Louis Dapples
to reorganize the Company.
1938-1944
The effects of the onset of World War II were felt immediately by
Nestlé. Profits dropped from $20 million in 1938 to $6 million in 1939.
 Neutral Switzerland became increasingly isolated in a Europe at war,
and the Company transferred many of its executives to offices in
Stamford,
The first truly global conflict ended forever the traditional Company structure. To
overcome distribution problems in Europe and Asia, factories were established in
developing countries, particularly in Latin America.
Ironically, World War II helped speed the introduction of the Company's newest
product, Nescafé. After the United States entered the war, Nescafé became a
staple beverage of American servicemen serving in Europe and Asia. Annual
production levels reached one million cases by 1943.
As in World War I, production and sales rose in the wartime economy: Nestlé's
total sales jumped from $100 million in 1938 to $225 million in 1945. As the end
of the war approached, Nestlé executives found themselves unexpectedly
heading up a worldwide coffee concern, as well a company built upon Nestlé's
more traditional businesses.
1944-1975
The close of World War II marked the beginning of the most dynamic phase of 
Nestlé's history. Throughout this period, Nestlé's growth was based on its policy
of diversifying within the food sector to meet the needs of consumers. Dozens of 
new products were added as growth within the Company accelerated and
outside companies were acquired.

In 1947, Nestlé merged with Alimentana S.A., the manufacturer of Maggi

seasonings and soups, becoming Nestlé Alimentana Company. The acquisition
of Crosse & Blackwell, the British manufacturer of preserves and canned foods,
followed in 1960, as did the purchase of Findus frozen foods (1963), Libby's fruit
 juices (1971) and Stouffer's frozen foods (1973).
Meanwhile, Nescafé continued its astonishing rise. From 1950 to 1959, sales of 
instant coffee nearly tripled, and from 1960 to 1974, they quadrupled..
1975-1981
After the agreement with L'Oréal in 1974, Nestlé's overall position changed
rapidly. For the first time since the 1920s, the Company's economic situation
deteriorated as the price of oil rose and growth in the industrialized countries
slowed. In addition, foreign exchange rates deteriorated with the French franc,
dollar, pound sterling, and mark all losing value relative to the Swiss franc.
Finally, between 1975 and 1977, the price of coffee beans quadrupled, and the
price of cocoa tripled. As in 1921, the Company was forced to respond quickly to
a radically changed marketplace.
Nestlé's rapid growth in the developing world partially offset a slowdown in the
Company's traditional markets, but it also carried with it the risks associated with
unstable political and economic conditions. To maintain a balance, Nestlé made
its second venture outside the food industry by acquiring Alcon Laboratories,
Inc., a U.S. manufacturer of pharmaceutical and ophthalmic products.
Taking such a step in a time of increased competition and shrinking profit
margins required boldness and vision. Even more than the L'Oréal move, Alcon
represented a leap into unknown waters for Nestlé. But, as Group Chairman
Pierre Liotard-Vogt noted, "Today we find ourselves with a very wide range of 
activities, all of which have one thing in common: they all contribute to satisfying
the requirements of the human body in various ways."
1981-1995
Under a new Chief Executive Officer, Helmut Maucher, Nestlé approached the
1980s with a renewed flexibility and determination to evolve. The Company's
strategy for this period was twofold: improve its financial situation through
internal adjustments and divestments, and continue its policy of strategic
acquisitions.
Thus, between 1980 and 1984, the Company divested a number of non-strategic
or unprofitable businesses. At the same time, Nestlé managed to put an end to a
serious controversy over its marketing of infant formula in the Third World. This
debate had led to a boycott of Nestlé products by certain lay and religious
organizations. This issue is still alive in some quarters, but there is no longer any
significant boycott activity.
In 1984, Nestlé's improved bottom line allowed the Company to launch a new
round of acquisitions, including a public offer of $3 billion for the American food
1996-2002
The first half of the 1990s proved to be a favorable time for Nestlé: trade barriers
crumbled and world economic markets developed into a series of more or less
integrated trading areas. The opening of Central and Eastern Europe, as well as
China, and a general trend towards liberalization of direct foreign investment was
good news for a company with interests as far-flung and diverse as Nestlé. While
progress since then has not been as encouraging, the overall trends remain
positive.
In July 2000, Nestlé launched a Group-wide initiative called GLOBE (Global
Business Excellence), aimed at harmonizing and simplifying business process
architecture; enabling Nestlé to realize the advantages of a global leader while
minimizing the drawbacks of size.
There were two major acquisitions in North America in 2002: in July, Nestlé
announced that the U.S. ice cream business was to be merged into Dreyer's, and
in August, a USD 2.6bn acquisition was announced of Chef America, Inc. , a
leading U.S.-based hand-held frozen food product business.
Also in 2002, the joint venture Dairy Partners Americas was set up with Fonterra;
and Laboratoires innéov was set up, another joint venture, this time with L'Oréal.
2003 +
The year 2003 started well with the acquisition of Mövenpick Ice Cream,
enhancing Nestlé's position as one of the world market leaders in this product
category. The years that followed saw consistent business growth through
innovation and renovation of the products.
In 2006, Jenny Craig, the USA weight management company and Uncle Toby's
were acquired as well as Delta Ice Cream.
Nestlé made three significant acquisitions in 2007. The first was Novartis Medical
Nutrition which put Nestlé in a a strong number two position globally for 
healthcare nutrition. Gerber, the iconic US baby food brand was the second
 • Nestlé does not favor short-term profit at the expense of successful long-
term business development.
• Nestlé recognizes that its consumers have a sincere and legitimate
interest in the behavior, beliefs and actions of the Company behind brands
in which they place their trust, and that without its consumers the
Company would not exist.
• Nestlé believes that, as a general rule, legislation is the most effective
safeguard of responsible conduct, although in certain areas, 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 is conscious of the fact that the success of a corporation is a
reflection of the professionalism, conduct and the responsible attitude of 
its management and employees. Therefore recruitment of the right people
and ongoing training and development are crucial.
• Nestlé continues to maintain its commitment to follow and respect all
applicable local laws in each of its markets.

Philosophy of Nestlé
Nestlé‘s philosophy is summed up in four words:
Good Food, Good Life.
In their quest to become the world's leading health, nutrition and wellness
company, they do everything they can to help people live more fulfilling lives.

Good Food, Good Life

Henri Nestlé chose his own coat of arms to represent the company's philosophy:
a bird's nest, with a mother feeding her young.
The image represents Nestlé core values: care, family values, nutrition, healthy
growth, safety and comfort. It is a guarantee of quality and a commitment to
responsibilities as a food company and experts in nutrition.
Over the years Nestlé has reaffirmed its commitment to wellness, helping
consumers to live longer, healthier, and more productive lives, no matter their 
age, gender or socioeconomic status.
Good Ingredients
Three vital ingredients lie at the heart of Nestlé and come together in their 
brands: Their  people, their research and development, and their 
commitment to quality.
The 250,000 dedicated people who make up the Nestlé family are their source of 
strength and energy. Realizing this, Nestlé offer them constant professional
development, and feel their cultural diversity is one of greatest assets.
Nestlé Pakistan History
Nestlé Pakistan
Nestlé has been serving Pakistani consumers since 1988, when their parent
company, the Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd.
Today they are fully integrated in Pakistani life, and are recognized as producers
of safe, nutritious and tasty food, and leaders in developing and uplifting the
communities in which they operate. Nestlé Pakistan ensures that their products
are made available to consumers wherever in the country they might be.
Convenience is at the heart of the Nestlé philosophy, and their aim is to bring
products to people's doorsteps.
A History of Service
In line with the parent company's global philosophy, Nestlé is proud of their 
commitment to excellence in product safety, quality, and value. Their products
cater to human needs, and Nestlé is active in the communities they serve.
From spreading awareness about nutrition and wellness to digging wells in the
Thar Desert and succoring earthquake victims, they are committed to serving the
country and its people.
The consumer's voice is key to Nestlé Pakistan's vision and working. Whether 
you live in the remotest village or the metropolis of Karachi, their consumer 
services team stands ready to listen to your concerns and provide answers about
their products and guidance on matters of health and wellness
breakfast cereals with the highest levels of sugar, fat and salt were Nestlé
products.
Powdered milk:
The Zhejiang Administration for Industry and Commerce (ZAIC) in China
conducted a routine quality test on Nestlé powdered milk products and found that
iodine content in 91.7 percent of the sample exceeded the legal limit set by the
Ministry of Health. When provincial governments called for removal of the
product from store shelves, a Nestlé representative admitted that the company
knew its product was over the local iodine limit, but instead chose to comply with
international standards that set no cap on iodine levels. Nestlé issued a recall of 
the milk product ten days after the government warning over iodine content;
however the company refused to reimburse customers for their purchase and
would only allow the exchange of powdered milk for another Nestlé product.
Milk:

According to South Africa-based global anti-poverty group, ActionAid

International, approximately 50,000 Brazilian dairy farmers have been forced out
of business as a result of aggressive takeovers by Nestlé and Parmalat.
In Peru, Nestlé controls 80 percent of the nation's milk production
Though such lawsuit haven’t been witnessed in Pakistan yet but nestle has taken
over much of the milk production in southern Punjab which is the largest milk
production region in Pakistan. All this has led the shortage of milk for the local
poor people who can not afford nestle products at all.
Water:

A 2006 report by the Connecticut-based Container Recycling Institute which is a

nonprofit dedicated to increasing recovery and recycling of beverage containers
and San Francisco-based nonprofit As You Sow which aims to promote
corporate accountability, grades America’s top beverage companies on their 
efforts to use recycled content, increase recovery and recycling, and reduce the
 amount of material used in beverage containers. Nestlé Waters earned F’s in
every area surveyed. Nestlé Waters scored an F grade overall, with a GPA of 0.1
(on a 4.0 scale).
Ailments caused by the consumption of products:
A lot of adverse medical conditions have been witnessed in Pakistan among the
continuous consumers of nestle products, which include:
hair fall due to the consumption of nestle PURE LIFE
yellow teeth caused by consuming EVERYDAY tea whitener 
stomach problems such as acidity caused by consuming nestle NIDO
Lack of innovation at nestle Pakistan:
The fact that they are the market leader in the Pakistan may be hindering them
from innovation. Since the nestle targeted customers in Pakistan are less in
number as people belonging to middle class in Pakistan can not simply afford
nestle products for daily use customers in Pakistan are neither much demanding
nor there are strong competitors, therefore nestle has been producing same old
products in Pakistan for years without any innovation.
Discriminatory acts:
Lower pays for milkmen in third world countries:
Nestlé pays 15 cents for every liter of milk produced in developing countries,
compared to wages of 48 cents per liter received by dairy farmers in Europe.
However, the origin of milk accounts for little to no difference in its retail price.
The price of milk from developing countries and Europe are virtually the same in
supermarkets everywhere.

Genetically engineered foods:

Nestlé continues to employ a double standard for incorporating genetically
engineered food in its products. Nestlé refrains from using genetically engineered
products wherever they are required to bear identifying labels. However,
genetically engineered foods are used in a variety of Nestlé products in countries
 where no such regulations exist. Concerns have been raised about the safety of 
genetically engineered foods, particularly as they could cause health issues such
as antibiotic resistance, allergic reactions and toxin development.
Substandard products for third world countries:
Nestle products available in the first world countries are far better in quality as
compared to the nestle products available in the third world countries like
Pakistan. While nestle is charging same international prices from all the
consumers.
Since nestle is a huge company with its headquarters based in Switzerland,
therefore whenever a new venture has to be started in its any subsidiary a long
procedure is involved for getting permission from the headquarters which is
quite time consuming.
Nestle has positioned itself as health and nutrition company while it is selling the
processed food which contain food additives and preservatives not good for 
health. This weakness of nestle leads health conscious people avoid using nestle
products.
Water related issues:
Ruthless water privatization an attack on humanity:
Nestlé, Coke, Danone and Pepsi are the major targets of a Polaris Institute
report exposing the dark side of the water industry. “Inside the Bottle: An Exposé
of the Bottled Water Industry” highlights the abuses of these corporations,
including fraudulent advertising, ruthless water privatization, and the distribution
of unsafe water. These four companies dominate the world’s bottled water 
market.
"Drinking Water Crisis in Pakistan and the Issue of Bottled Water: The Case
of Nestlé's 'Pure Life'" (April 2005).
Nestlé has been criticized for its bottled water operations in Pakistan:
The population of Pakistan suffers from water scarcity and limited potable water, with 40
percent of urban residents and as much as 90 percent of rural residents lacking
access to water for their daily needs. Nestlé's water extraction has put the
to stuff their bodies with preservatives and food additives which are present in
the processed food. Pakistan is a land where fresh eatables are readily available,
and those who can actually afford nestle products can also easily afford fresh
fruits and vegetables. Over the past ten year awareness regarding to the health
issues among the people has increased dramatically and this awareness has
induced a negative attitude towards the processed food. Hence for nestle
Pakistani market is a tough one to deal with when it comes to the processed food
because people do not need it when fresh eatables are available in abundance.
Therefore nestle has to create the need before introducing a new product in
Pakistani market.
Fake nestle products:
One of the threats that nestle faces in the Pakistani market is the availability of 
fake nestle products for sale, hence customers are deceived when they consume
the substandard products consequently they loose trust and stop the
consumption of the nestle products.
Discontentment due to the discriminatory acts:
Much discontentment prevails in the Pakistani market due to the fact that nestle
products available in Pakistani market are of inferior quality as compared to
similar nestle products available in the markets of first world countries, while they
are charging the same international prices from the consumers of all countries.

Milk production and human rights:

Since Nestle has opened a milk processing plant in Kabirwala, Punjab in
Pakistan. The plant is reportedly Nestlé’s largest milk reception facility in the
world, and has a processing capacity of 2 million liters per day. This is expected
to rise to more than 3 million liters in the coming years, the company said. This
has led the human rights Ngoc’s working in Pakistan to rally against nestle
regarding to the fact that local people are being deprived of milk because of 
Nestlé’s such act.
Competitors:
 A threat prevailing in the Pakistani market is coming from the competitors, local
as well as multinational competitors. Local competitors like Shezan and Haleeb
are producing the similar products and selling them for lower prices. Companies
like coca cola and Pepsi are tough competitors to beat specifically when coke
has got a far better distribution system in the market.
Allergic reactions:
Due to the following allergic reactions caused by the consumption of nestle
products consequently people are becoming more and more dissatisfied and
hence lower level of sales.
Allergic reactions caused by the consumption of nestle products:
A lot of adverse medical conditions have been witnessed in Pakistan among the
continuous consumers of nestle products, which include:
hair fall due to the consumption of nestle PURE LIFE
yellow teeth caused by consuming EVERYDAY tea whitener 
Stomach problems such as acidity caused by consuming nestle NIDO.

Nestlé is a multinational packaged food company founded and headquartered in

Vevey, Switzerland. It resulted from a merger in 1905 between the Anglo-Swiss
Milk Company for milk products established in 1866 by the Page Brothers in
Cham, Switzerland and the Farine Lactée Henri Nestlé Company set up in 1867
by Henri Nestlé to provide an infant food product. Several of Nestlé's brands are
globally renowned, which made the company a global market leader  in many
product lines, including milk, chocolate, confectionery, bottled water , coffee, ice
cream, food seasoning and pet foods. The company stock is listed on the SWX
Swiss Exchange.
Much of the company's public image has been dominated by the world-wide
media furore that surrounded the manner in which it sold its breastmilk substitute
to developing countries, which led to the Nestlé boycott from 1977. Although the
company has taken serious measures to combat the damage that this caused to
its brand, it is still widely associated with questionable business ethics especially
with regards to the developing world.

NESTLE PRODUCTS
Nestlé has a wide range of products across a number of markets including coffee
(Nescafé), Water , other  Beverages, Ice cream, Infant foods, performance and
healthcare nutrition, seasonings, frozen and refrigerated foods, confectionery
and pet food.
DEFINITION OF PRODUCT:
“Anything that is produced, whether as the result of generation, growth, labor, or thought, or by
the operation of involuntary causes; as, the products of the season, or of the farm; the products of 
manufactures; the products of the brain.”

”The word product qualifies a marketing concept. A product is more than a

person, place or thing. Nothing is more important to a marketing strategy than
the "product concept”.
Aggressive marketers believe that continuous product development is the most
important of all strategic marketing activities.
WHAT IS PRODUCT MARKETING?
An organization must properly define the function of strategic product marketing
before it can be effective. For example, one common mistake is thinking that
marketing is advertising, another is that marketing is gathering information or 
finding new prospects. While these objectives are certainly key parts of 
marketing, the successful strategic marketer will seek additional objectives.
Detailss of  produc
Detail products
ts attrib
attributes
utes,, brands
brands and packag
packaging
ing of sever
several
al nest
nestle
le
products available in pakistani market given below.

Pure, rich and delicious NESTLÉ® MILKPAK® standardized UHT milk benefits
from Nestlé’s expertise in bringing you the very best life has to offer and benefits
from 140 years of consumer trust.
Our extensive milk collection system ensures that the milk you get is of the finest
quality.
Encourage your family to exercise regularly, eat a healthy, well-balanced diet
and drink pure, nutritious milk for good health. Milk is a must-drink for your 
chi
childre
ldren
n as it is a ric
rich sour
source
ce of Calc
Calciu
ium
m that
hat helps
elps in the grow
growtth and
and
development of strong bones and teeth. It is equally beneficial in keeping grown-
ups bones strong. So live to the fullest and enjoy the pure, wholesome goodness
of milk with

Low Fat Hi-Calcium Milk & Yogurt

Stronger Bones, Smarter You!
Did you know that your body loses a certain amount of Calcium every day that
must be replenished on a daily basis? Since your body cannot produce Calcium,
you must ensure that you get enough of it in your daily diet.
If you are set for an active and healthy lifestyle then you need to get the strength
your bones.
NESTLÉ® NESVITA® Milk is available in two handy sizes: 1000ml
and 200ml. NESTLÉ® NESVITA® Yogurt is available in a 450g tub
packaging.
*Source: Food & Nutrition Board, National Research Council Recommended
Dietary Allowances (Revised 1989)
One glass is 250 ml One serving is of 125 gms

Sehatmand bachay, sehatmand mustakbil!

Healthy kids, healthy future!
Children grow very quickly and so do their developmental needs. That is exactly
why
why Nest
Nestlé
lé has
has deve
develo
lope
ped
d NIDO
NIDO®
® Nutr
Nutrititio
ion
n Syst
System
em that
that under
underst
stan
ands
ds the
the
nutritional needs of your children at all stages of growth.
NIDO® Nutrition System
As a part of the NIDO® Nutrition System, NESTLÉ® NIDO® 1+, 3+, 6+ and
NIDO® Fortified comprise a series of Nestlé’s milk powders that address the
deve
develo
lopm
pmen
enta
tall need
needss of chil
childr
dren
en acco
accord
rdin
ing
g to thei
theirr age
age and
and nutr
nutrititio
iona
nall
requirements.
NIDO
NIDO®
® 1+ is deve
develo
loped
ped for
for child
children
ren NIDO® 3+ with Prebio 3™ is designed
aged 1-3 years. It contains Prebio 1™ to supp
suppor
ortt your
your chil
child’
d’ss ment
mental
al and
and
that helps maintain a healthy digestive physic
physical
al develo
developme
pment
nt as well
well as aid
syste
stem and prot
rotect
ects from
rom upse
pset healthy digestion.
tummies.

NIDO® 6+ is for yourour 6 year old’s d’s NIDO® Fortified is for children between
stronger bones and teeth. It is focused 4-12 years of age who are growing up
on children who are in an increasingly competitive
expe
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activity. It contains
contains Calci-N™,
Calci-N™, Nestlé’s
Nestlé’s extra to ensure success on the playing
natural Calcium source from milk which field and in the classroom. It is
has Calcium and Vitamin D that help enri
enrich
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with iron,
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vitamin
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lock calcium in their bones. minerals, which are essential for your 
child's growth.

Growing-up Milk for 1, 2 & 3 years of age

As a mother you want the best for your child and almost always worry about
his/her health. But are you completely sure if your child is getting sufficient
nutrition for his or her good health
h ealth and development?
Many of you may not be so sure. Children between 1 to 3 years of age
exper
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nutritional requirements unique.
That's why we have NESTLÉ® NESLAC®, growing-up milk for children 1-3 years
of age. NESTLÉ® NESLAC® provides the right vitamins and minerals in the right
proportions that your little one needs at this particular age.
NESTLÉ® NESLAC® is available in Honey flavour and is enriched with the right
balance of Protein, Iron, Calcium and Multivitamins to help give your child a
strong and healthy foundation for life!

Mazaidar chai har bar 

Perfect cup of tea, every time
We love tea; our day doesn’t begin without it!
When it comes to choosing the milk for your favourite cup of tea why should you
settle for any ordinary milk?

NESTLÉ® EVERYDAY® dairy tea whiter, made from pure fresh milk gives you
that perfect rich taste that only specialized milk can, so you can enjoy the same
delicious cup of tea each time!

For your convenience NESTLÉ® EVERYDAY® is available both in powder and

liquid forms:
NESTLÉ® Yogurt is simply nutritious and delicious! It is a popular and preferred
accompaniment to our rich desi cuisines and palate! It contains the dairy
goodness and benefits of milk with live cultures that help the digestive system
function smoothly.

Use NESTLÉ® Yogurt for making chilled lassi, to refresh yourself or help settle
your stomach or just enjoy its creamy taste on its own.

Moreover, use NESTLÉ® Yogurt to make some coleslaw, jazz up the typical
boring green salad with a spoonful or two or enjoy it straight ‘n simple as your 
breakfast accompaniment.
NESTLÉ® Yogurt is available in serves of 125g & 450g.
NESTLÉ® Fruit Yogurt, a mouth-watering treat with real fruit chunks in sweet
creamy yogurt, takes the yogurt experience up a few notches!

It is by far the delicious, healthier alternative to any other snacks – loved by kids
and grown-ups alike. It is easily digestible and a good source of Calcium too!

You can have it as a snack, as dessert, or even with your breakfast cereal but
most importantly you need not look for an excuse to enjoy this nutritious and
healthy treat any time you like!

NESTLÉ® Fruit Yogurt is available in 3 indulgent flavors: Mango, Peach and

Strawberry, in ready-to-serve 100g cups.

Pour it on pure ‘n thick for that soft, rich, velvety flavour that is MILKPAK®
Cream.

Its silky creamy texture is ideal with strawberries or mangoes! Some prefer to
give their coffee a swirl for that creamy finishing touch or put
a generous dollop on their naan (round flatbread).
MILKPAK® Cream is ideal for desserts, an assortment of toppings and to put a
rich spin on whatever you fancy!
If you weren’t happy with the raita (local Pakistani cuisine condiment) served last
that was anything but delicious or the one you had with the chicken tikka at a
dinner party had gone sour, take heart.

For reasons of health, convenience and hygiene, life should be simpler when it
can be made simpler: with NESTLÉ® Raita you can now indulge your taste buds
with the flavour that is just right to compliment your meal. Without the preparation
hassle and the worry of quality you can be assured that the raita you are having
is nothing but the very best from Nestlé.

NESTLÉ® Raita helps proper functioning of the digestive system, is easily

digestible and a good source of Calcium too! Life just got better!

Nestlé® Raita is available with cumin and podina (mint) to give you options to
choose from.

Har Ghar Ki Lazeez Rewaiat!

There's nothing like the rich traditional flavour of food cooked in desi ghee.
Whether it's the finest halva, tarqa on the daal or your grandmother's delicious
korma, MILKPAK® Desi Ghee adds the magnificence to your menu.
ReVitalize With Pure Vitamin Burst!

You are living life in a constant overdrive and your body needs to equip itself to fight
the daily wear out.
NESTLE® FRUITAVITALS™ mix fruit juice fortified with Vitamin A, B, C & D is a
delightful combination of Orange, Apple and Guava to give you the perfect hit of 
flavour and Vitamins to get you revitalized and in top gear. What’s more it has no
added sugar!

NESTLÉ® Limo (Lemon) & NESTLÉ® Malta (Orange) Instant Drinks provide
fruit-filled refreshment that quenches your thirst and energizes your body with an
instant citrus boost!

They are both available in 25g single-serve sachets that are convenient and
affordable. But what really hits the spot is that NESTLÉ® Instant Drinks are
packed with Vitamin C that provides immunity against diseases and helps put the
glow in your skin.
NESTLÉ® Limo (Lemon) gives you 36% RDA of Vitamin C and NESTLÉ® Malta
(Orange) gives you 24% RDA of Vitamin C. So get refreshed and invigorated
with NESTLÉ® Limo and NESTLÉ® Malta!

Now also available in a convenient 500g Jar packaging

Pakistan’s Favorite Water 

NESTLÉ® PURE LIFE™, is pure, safe and healthy drinking water for you and
your family.
Every bottle of NESTLÉ® PURE LIFE™ is produced with the Nestlé Safety
System and is carefully sealed with a proprietary seal. Purity of the highest
standards is matched by an optimal balance of essential minerals, enhancing the
health and wellbeing of your family.
No wonder its Pakistan’s favorite water because more people trust it than any
other brand.
For your convenience NESTLÉ® PURE LIFE™ is available in
non-returnable 330ml, 0.5 liter and 1.5 liter bottles at retail outlets and Bulk
bottles for Home & Office Delivery in 19 & 12 liter (12 liter is available at retail
outlets).
Be Good to Yourself 
Safety, convenience and value are just what you get from AVA ®, your source of 
pure, safe and healthy drinking water for you and your family.

AVA ® is packed and sealed in special sterilized bottles and caps to ensure the
highest standard of quality and safety, keeping clean of all suspended and
dissolved contamination.

AVA ® is available in two economical sizes of 12 and 19 Liter bottles. You can
get your 19 Liter bottle delivered free of cost through our home and office
delivery service. The 12 Liter take-home bottle can be conveniently collected
from any leading retail outlet by placing a refundable deposit.

For your convenience, AVA ® also offers different payment options that give you
more value for your money.

*Only available in Karachi

Bharpoor nashvonuma!
Sehatmand mustakbil ka behtrin aghaaz!
customer services tradition. Nestle listens to its customers carefully and try to
rectify the product related problems as soon as possible.
Foresight:
At present, the world faces daunting questions about its ability to provide enough
wholesome food for everyone. Malnutrition and poor eating habits are still
serious problems in many developing countries. By 2100, the world's population
will double. Will it be possible to feed a world with so many inhabitants? At
Nestlé, the big picture is all about feeding the world and providing food and
nutrition for an ever-growing population. Our response to this situation is to
intensify research, strive for innovations and improve quality.

Price

Price is the only revenue generating element among the 4’ ps of marketing. Price
can be defined as:
“The amount of money charged for a product or service or the value exchanged
for the benefits of the product or service”
More broadly, Price is the sum of all the values that customers give up in
order to gain the benefits of having or using a product or service. It’s a very
powerful tool at the disposal of an organization to differentiate its offerings.

Pricing strategy:

Nestle pricing is an important strategic issue because it is related to product

positioning. Nestle is basically using psychological pricing strategy as they are
earning huge profits, approximately 30% on their products. People believe in
nestle hence this aspect gives nestle a competitive advantage being a market
leader to set its prices high. The main thing behind the success of nestle is they
keep an eye on their customers and accordingly they change the price. People
have trust in nestle that is the reason they are willing to buy nestle products
again and again. Nestle has always tried to enter the market with the right price
and then justifying it with high quality products and by communicating and
transferring the maximum value to the customers.
“Duniya Main Her Kemti Cheez Mehngi Nahe Hoti” 

This slogan by nestle proves its pricing approach.

In addition to this pricing approach nestle focuses on vide range of SKU’s in
order to capture greater market segment keeping in view their buying power.
This way nestle ensures their consumption in the entire segment of market.
Therefore nestle adopt “value base pricing”.
Nestle has been the low cost leader  through its extensive research and
efficient operations. The Nestle Group is in principle not directly involved in
primary production of raw materials and other food ingredients. In general nestle
use locally available raw materials and purchase them either directly from
producers or through existing trade channels. Nestle has differentiated itself as
health and nutrition company, therefore it targets health conscious people
throughout the world. In Pakistan nestle has positioned its brands as something
of supreme quality.
Therefore nestle has determined its prices a bit higher than the other local
brands available in Pakistan. It targets the people belonging to the upper middle
class and above who can afford nestle products for daily use.
In Asia, Nestlé’s strategy has been to acquire local companies in order to form a
group of autonomous regional managers who know more about the culture of the
local markets than Americans or Europeans. Nestlé’s strong cash flow and
comfortable debt-equity ratio leave it with ample muscle for takeovers. Recently,
Nestlé acquired Indoo, Indonesia’s largest noodle producer. Their focus will be
primarily on expanding sales in the Indonesian market, and in time will look to
export Indonesian food products to other countries.
Nestlé has employed a wide-area strategy for Asia that involves producing
different products in each country to supply the region with a given product from
one country. For example, Nestlé produces soy milk in Indonesia, coffee
creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal
in the Philippines, all for regional distribution.
All these strategies have helped nestle to keep its costs and consequently its
prices low, with the supreme quality products that it offers to its customers.
Nestle does not want to become either a conglomerate or a portfolio manager.
Nestle wants to operate only those businesses about which it has some special
knowledge and expertise.
Retail and wholesale selling at Nestle:

Nestle brings its customers with its products through distributors. Though nestle
does not involve itself in retail selling but still it provides its customers with the
free home and office delivery facility, but mostly it only go for the wholesale
selling.
DISCOUNTS 

Discount is the:
“A straight reduction in price on purchases during a stated period of time” 

The discount rate offered to the employees in very high. The main reason behind
the success of nestle is key consider themselves as a family and then change
the price. The discount they offers to their distributors are like 12+1 offer or buy
5000*24bottles and get free dispenser. The discount they give to the customers
is of JUMBO rewards for these brands that they sold directly JUMBO rewards are
basically the points per bottle earned.
Right now it is limited to the jumbo services. When you earn some points then
you can choose different things that are changed after every six months.

“The customers are very much satisfied with our brand and a product, so we
don’t wast time in thinking of discount offers, we focus to expand our brand”
In October 2005, the biggest natural calamity in our history struck Pakistan.
Thousands died and millions were left homeless after a massive earthquake hit
our mountainous northern areas.
In step with the rest of the nation, Nestlé Pakistan responded immediately,
putting its infrastructure and resources to work in the affected areas.
PLACEMENT
Placement : refers to how the product gets to the customer ; for example,
point of sale placement or  retailing. This fourth P has also sometimes been
called Place, referring to the channel by which a product or services is sold (e.g.
online vs. retail), which geographic region or industry, to which segment (young
adults, families, business people), etc. also referring to how the environment in
which the product is sold in can affect sales.
COMPANY NETWORK
Nestle is now the world's largest food company. It is present on all five
continents, has an annual turnover of 74.7 billion Swiss francs, runs 509 factories
in 83 countries and employs about 231,000 people the world over. The Company
owes its current status to the pioneering spirit inherited from its founders which
continues to inspire it, to its concern with quality and to its constant search for 
new ways of satisfying man's nutritional needs. Wherever possible, it sets up
factories locally, employs personnel from the country concerned and relies on
indigenous raw materials. Its agricultural services provide assistance to improve
the quality and yield of the raw materials it uses. Much attention is devoted to
professional training and to the integration of the Company in its economic and
social environment

NESTLÉ IN PAKISTAN
Headquarters in Lahore, the company operates five production factories. Two of 
its factories in Seikhupura and Kbirwala are multi product factories. One factory
in Islamabad and two in Karachi produce bottled water. Through its effective
marketing and a vast sales and distribution network thought out the country, it
ensures that its products are made available to consumers whenever, wherever 
and however 
Nestle value delivery network:
The Nestle Group is in principle not directly involved in primary production of raw
materials and other food ingredients. In general nestle use locally available raw
materials and purchase them either directly from producers or through existing
trade channels. In Asia, Nestlé’s strategy has been to acquire local companies in
order to form a group of autonomous regional managers who know more about
the culture of the local markets than Americans or Europeans.

Nestlé’s strong
Cash flow and comfortable debt-equity ratio leave it with ample muscle for 
takeovers. Recently, Nestlé acquired Indofood,
Indonesia’s largest noodle producer. Their focus will be primarily on expanding
sales in the Indonesian market, and in time will look to export Indonesian food
products to other countries.
Nestlé has employed a wide-area strategy for Asia that involves producing
different products in each country to supply the region with a given product from
one country. For example, Nestlé produces soy milk in Indonesia, coffee
creamers in Thailand, soybean flour in Singapore, candy in Malaysia, and cereal
in the Philippines, all for regional distribution. Milk plant at Kabirwala is the
Nestlé’s world largest milk processing plant. Nestle pays the local milkmen for 
the continuous supply of milk to its plant, since Pakistan is the fifth largest milk
producing country.
FACTORIES
Sheikhupura
29th Kilometer, Lahore - Sheikhupura Road Sheikhupura, Punjab, Pakistan
Phone :(042) 6369321-6 ET 7228300
Fax :(042) 6368710

NESTLE ® MILKPAK® UHT milk, NESTLE® NESVITA® products, NESTLE®

PURE LIFE™ water, NESTLE® CERELAC® and yogurt.
Milkpak UHT milk, produce butter, cream and ghee
NESTLE® NIDO® milk powder 
Nestle NESTLE® PURELIFE™
Fruit yogurt, tea whitener, cream and raita, NESTLE® NESVITA®

Kabirwala
Khanewal - Kabirwala Road, Kabirwala District Khanewal, Punjab, Pakistan
Phone (06512) 411433-36
Fax (06512) 411432

Nestle Milkpak
MAGGI® noodles
NESTLE® EVERYDAY® tea whitening powder 

Islamabad
AVA® water factory in Islamabad
exceptionally friendly and most cooperative. The decision or we can say the
managerial style of Nestle’ is decentralized, it means that every employee can be
a part of the every decision they take.
SALES STRATEGIES
Real need is required for selling. Nestle products were a real need for the
citizens of Pakistan. The increasing number of diseases because of consumption
of substandard eatables was the time for Nestle to think of its customer’s health.
Government supported the company in launching of Nestle products. It became
easy for Nestle to market its goods.
DISTRIBUTION CHANNELS
Nestle uses indirect distribution channels to bring its products to the
customers Producers→ Distributors→ Retailers→ Consumers. Nestle does
not involve wholesalers in its distribution channel. Nestle products are distributed
to the customers mostly through distributors. They buy the distribution on
contractual bases. Nestle usually do not go for retail selling. Home delivery
service is also provided by Nestle Pure Life. You can buy Nestle Pure Life from
any shop in any area. Nestle uses vertical marketing system. Nestle distributes
its products through the strong supply chain management strategies and efficient
marketing logistics.
Nestle reasons for indirect selling methods:
• Distribution channels already established.
• Nestle uses its capital for further production.
• Too many consumers in a large area; difficult to reach.
• Direct on-selling advantages.
Reasons for bypassing wholesalers:
As stated earlier nestle does not involve wholesalers in its distribution channel,
the reasons are given below:
 • Limited storage facilities in Pakistan, since it’s a third world country
here the wholesalers are not well versed to handle products from such a
huge company.
• Retailers' preferences
• Wholesaler cannot promote products successfully
• Nestle’s desire for closer market contact
• Position of power 
• Cost of wholesalers' services
• Price stabilisation
• Need for rapid distribution
• Make more money
Nestle has following distribution objectives:
1. To reach the customer and better availability of the product to the
customer 
2. To capture more market shares as compare to the competitors.
3. Satisfying the changing needs of market.
NATURE OF PHYSICAL DISTRIBUTION
DISTRIBUTION CENTRE
A large highly automated ware house is designed to receive goods from plants
and suppliers, take orders, fill them efficiently and deliver goods to customers as
quickly as possible. Nestle has its distribution centers in Sheikhupura, Karachi,
Lahore and Islamabad. The increasing number of customers is forcing Nestle
Pure Life to increase its distribution centers.
.INVENTORY MANAGEMENT
Inventory management plays an important role in the satisfaction of the
customers. Here Nestle should maintain the delicate balance between carrying to
little inventory and carrying too much. Nestle Pure Life is running successfully
and its difficult for it to maintain its inventory.
TRANSPORTATION
Nestle uses all types of transportation. Usually Shehzore is used for 
transportation. Home delivery service is also provided with the same
transportation. Tracks are used for long transportation to minimize the cost.
Triwheelers are used to transport precious water to backward areas.
DISTRIBUTION AND TERMS OF CONTRACT
The distribution is mostly done through the distributors and the agreement is on
contractual bases. The terms and conditions changes with the passage of time
and the amount submitted as the security.
Retail and wholesale selling:
Nestle brings its customers with its products through distributors. Though nestle
does not involve itself in retail selling but still it provides its customers with the
free home and office delivery facility as direct marketing channel. Nestle products
are sold at all types of retail stores which are
1) specialty store
2) department store
3) supermarket
4) convenience store
5) Super store.
6) Chain stores.
RECOMMENDATIONS
Though nestle is an industry giant and doing a successful business around the
world, but still certain measures it should take in Pakistani market are
recommended below:
1) It should sell better quality products in Pakistani market also just
like it sells in first world countries because consumer in Pakistan is much
aware today than it was a decade ago. It would help to rectify the feelings
of discontent that prevail among the Pakistani consumers against nestle.
2) Nestle should bring other flavors in breakfast cereals like fruit and
nuts corn flakes to Pakistan since consumers are becoming more
demanding day by day. Moreover Kellogs is offering a wide range of 
breakfast cereals with far better quality.
3) Nestle should introduce its other chocolates like lion and butter 
finger in Pakistan, moreover it should also introduce libbys ketchup brand
in Pakistan since ketchup brands available in Pakistan are not of good
quality.
4) Nestle should increase the promotional campaigns magnitude since
strong competitors are takingover the industry especially in dairy products.
5) Nestle should introduce its LC-1 probiotic yoghurt in Pakistan since
people are becoming more health conscious.