Introduction to Management Project

1. Nestle Company Profile: Nestlé was founded in 1866 by Henri Nestlé with headquarters in Vevey, Switzerland. It has employed around 250,000 people and has factories or operations in almost every country in the world. Nestle is the world's leading nutrition, health and wellness company today. Being the world's leading bottled water company is based on a solid economic model: strong brands, global presence, innovation capacity, environmental stewardship and passionate people. 2. Mission Statement: Nestlé is dedicated to providing the best foods to people throughout their day, throughout their lives, throughout the world. With our unique experience of anticipating consumers needs and creating solutions, Nestlé contributes to your well-being and enhances your quality of life. 3. Top Management and Organization Structure

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Introduction to Management Project Nestle in Pakistan Nestlé has been serving Pakistani consumers since 1988, when the parent company, the Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd. Today Nestle is fully integrated in Pakistani life, and are recognised as producers of safe, nutritious and tasty food, and leaders in developing and uplifting the communities in which it operates. Nestlé Pakistan ensure that its products are made available to consumers wherever in the country they might be. Convenience is at the heart of the Nestlé philosophy, and its aim is to bring products to people's doorsteps. Nestle Purelife: In regard to the dynamic prospects of Pakistan s bottled water market, Nestlé wanted to take shares of it. In its mission statement, Nestlé concludes that its brand Pure Life is base of operations to meet the need of the continent's emerging nations for clean, good-tasting water in convenient sizes and packages to satisfy a family's daily requirements . The development of Nestlé s market share, in the bottled water market in Asia, is closely linked to its leading worldbrand Pure Life . Now available in 17 countries and highly successful in Uzbekistan, Turkey, Jordan, Thailand and the Philippines and Argentina. In 1998, Nestle Purelife was launched in Pakistan. a. Key Product Categories:

At Nestlé, the products are developed keeping our consumers, their preferences and health in mind. Millions of consumers the world over trust Nestlé products for good reason: when they choose a Nestlé product they have the satisfaction of choosing quality, taste, variety, convenience and the good nutrition. With over 140 years of experience and expertise, Nestle takes great pride in bringing us a portfolio of health and wellness because happy, healthy consumers are important to them.

Key Product Categories MILK, DAIRY AND CHILLED DAIRY BEVERAGES BOTTLED WATER BABY FOOD FOOD BREAKFAST CEREALS CHOCOLATE & CONFECTIONARY
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Brands in Each Product Categories Milkpak / Nesvita / Nido / Everyday / Nestle Dahi / Nestle Fruit Yogurt / Nestle Raita / Milkpak Cream / Milkpak Desi Ghee Nescafe / Milo / Nestle Fruita Vitals / Nestle Pure Life Cerelac Maggi 2 Minute Noodles Nestle Cornflakes, Nestle Kokocrunch Kitkat / Kitkat Chunky

Introduction to Management Project

Bottled Water Industry Analysis b. Industry Standing: Bottled Water is in its growth stage and there is a lot more potential in the market as there is a major part of the target market which is still untapped. c. Competition Intensity: Major players of the market are Aquafina, Kinley, Sufi and Gourme (Lahore only) etc. d. Regulatory Authorities Pakistan Standards & Quality Control Authority (PSQCA) As the national member body of the ISO, IEC and OIML, the PSQCA is monitoring and implementing the ISO guidelines and other national quality benchmarks Pakistan Council of Research in Water Resources (PCRWR) Pakistan Council for Research in Water Resources 4. Nestle Purelife a. Introduction: In 1992, Nestlé was the first company to dare to launch a mineral water, Valvert. Today Nestlé Water is established in 130 countries and markets about 70 different brands. In 1998, for the first time in its history, Nestlé associated its name with bottled water Nestlé Pure Life . Today the Nestle Pure Life brand is present in 20 countries around the world, across all continents - Asia, Near East, South and North America and Europe. b. Manufacturing Facility (Production & Operations) Nestle is currently operating five factories in Pakistan which are: 1. Sheikhupura Factory (Multiline products, biggest unit) 2. Kabirwala Factory (Multiline products but smaller than Sheikhupura Factory) 3. Islamabad Factory (Water Company) 4. Two factories in Karachi (Water Companies) All of the above mentioned factories have water plants except Kabirwala factory. a. Marketing: i. Target Market y Targeting Strategy Of Nestle Pure Life Is Differentiated Marketing y Nestle Pure Life Targets Both Genders y Targets the Upper And Middle Class People Who Are Health Conscious y Tourists Are Also the Target Market Of Nestle Pure Life ii. Marketing Strategy
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Introduction to Management Project Nestle Purelife is following Differentiation Strategy as they have developed a very visible image of their water that it is safe and healthy and is PURE LIFE in true sense. iii. Marketing Mix (4Ps) a. Product: Nestle is providing wide range of food products, dairy products, beverages products. Nestle is playing with Nestle Purelife brand in Bottled Waters. b. Price Prices of Nestle Pure Life are relatively higher than their competitors. Market prices of individual consumables 0.5l are Rs.13. The price of family size bottle (1.5l) is Rs.25 and of large bottles of 5 gallons (18.9l) is Rs 130. c. Place (Coverage & Distribution Channels) Nestle has got widespread distribution network and is enjoying availability in Point of Sales from Super Stores and Hyper Stores to small retailers. In 2000, NESTLÉ Pure Life established a successful Home and Office (H&O) delivery service in Lahore, which has substantially grown ever since and has come to dominate the 5- gallon market. d. Promotion Nestle Pure-Life is using television and radio advertisements in electronic media. In print media they are using billboards, newspapers, pole signs, streamers and posters. In big departmental stores they have display corner in which Nestle Pure Life is refrigerated. Moppies are also used for advertisement in these stores. In summers direct marketing is used for promotion by providing cool points of Nestle Pure Life where chilled Nestle Pure Life is available for instant drinking. iv. Current Positioning & Brand Image: Nestle Purelife today is synonymous to quality, safety and trust in the eyes of its customers. The company has got its own quality management system namely NQMS (Nestle Quality Management System). Nestle Purelife is reknowned by its customers as a socially responsible and consistent quality provider. Sales Nestle is a sales driven company for which company s major emphasis has always been on its sales. The company has been generating huge revenue with a tremendous growth in each successive year. As you

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Introduction to Management Project can see from the below mentioned sales statistics, the company enjoyed roughly 7% growth in sales volume from 2007 to 2008. Particulars Volume in Liters (000) Sales Strategy: The prime focus for Nestle Purelife Sales Strategy has been on strong distribution network nation-wide for its Pet Bottle Product Line ranging from 0.5l to 1.5l. The brand is right now focusing on increased consumer penetration introducing the first of its kind Home Delivery System in Pakistan. Nestle Purelife Jumbo Service, the pioneers of door-to-door drinking water delivery system has enabled every household to enjoy the benefits of having safe drinking water at their doorsteps. The brand has made its presence in all major metropolitan cities of Pakistan, efficiently providing door to door delivery service with a dedicated helpline, ordering system. b. SWOT Analysis Strengths: Weaknesses Dec 08 300,022 Dec 07 280,445

y y y y y y y y y y

y y y y

Pioneering Brand Brand Image Heavy Advertisement: Top of Mind Quality Perception: Taste Logistics & Distribution Customer Services: Helpline the lifestyle of the people is changing DEMAND is increasing day by day in the bottle Water High Quality Obtained By The Usage Of A Special Production Process. Own Industrial Laboratories That Perform Constant Control For Physical-chemical And Bacteriological Parameters. Daily Sensor Water Analysis for Flavor, Color And Odor. Great And Neutral Taste Which Suits All The Family Safety And Purity From The Source To The Consumer Produced Locally, Close To The Consumer.

y y

y

Lack of awareness and the poverty Lack of availability in the remote areas is also the strong reason High Price

Opportunities Threats y Anticipated Growth (Availability of Safe drinking y Emerging Local Brands and water) competitive price issue y People are becoming more health conscious y Low Entry Barrier y Water Is An Essential Part Of Life And Everyone y Economical Uncertainty
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Introduction to Management Project y Prefers To Drink Safe And Healthy Water. Nestle Is A Trusted Brand For Providing Good Quality Products.

5. Nestle Pure Life: A Success Story a. Consistent Quality Providers: Nestle Pure Life has been a consistent quality provider since more than a decade of the inception of their operations in Pakistan, setting a benchmark for all current and new aspiring players to enter this competitive and attractive market b. Educating Customers: Nestle Pure Life is promoting better family health standards in Pakistan by educating people and highlighting the importance of drinking sufficient amount of clean water resulting in better hydration nourishment for the whole family. 6. Conclusion a. Current Issues and Emerging Trends. Economic Instability, Growing Inflation, Health awareness and consciousness among masses and young generation b. Local Players (Gourmet and Sufi), International players (Aquafina and Kinley) and the impact on Nestle Purelife Sales volume 7. Recommendation a. They should introduce 0.20L water glass of Nestle Pure Life which should be provided on cool points in summer. b. They should set the price of their product in accordance with their competitor s price. c. Nestle Pure Life should further communicate and prevail the benefits of drinking safe water. d. Now a days, they are not advertising properly therefore they should focus on more advertisement so that they could create strong brand loyalty among customers.

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