Nestlé

COMPANY’S PROFILE
Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. The Company's strategy is guided by several fundamental principles. Nestlé's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. The company succeeded in achieving sustainable profitable growth during the year under the view driven by successful marketing and sales strategies and focus on key initiatives. Consumer confidence in the company’s brand has further strengthened and the trade remains confident as ever in doing business with it. Innovation and renovation remained the key to development of new products. In the shed of Nestlé 247,000 people are working in almost every country in the world. From which almost 8,000 employees are working in Pakistan. Headquarters in Lahore, the company operates five production facilities. Two of its factories in Sheikhupura and Kabirwala and 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. Nestlé company is registered in Pakistan under the company ordinance 1984. As it’s a public company but still not registered in any Stock Exchange in PAKISTAN Over all company market share is 67%. Nestlé share as compared to nur pur,Haleeb and other are moves around 20to 30%.Total turnover:- 13.5 Billion Rupees

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to continue playing a significant role in the social and environmental sectors of the country. -2- . for nutrition and pleasure. capital efficient and profitable long term growth. We aspire. While maximizing stakeholder value VISION The strategic priorities of Nestlé milkpak are focuses on delivering shareholder value through the achievement of sustainable. In line with this objective. as a respected corporate citizen.Nestlé MISSION Build branded food business to improve quality of life by offering tasty.from infancy to old age. Most innovative and fastest growing food company offering Products enjoyed in “Every home every day” GOALS  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. through development of a large variety of food categories of the highest quality.  Nestlé does not favor short-term profit at the expense of successful long-term business development. we envision Nestlé milkpak to grow in the shortest possible time into the number one food company in Pakistan with unique ability to meet the needs of consumers of every age group. and business partners. consumers. Improvements in profitability will be achieved while respecting quality and safety standards at all times. We envision the company to develop an extremely motivated and professionally trained Innovation and renovation. employees. affordable and highly nutritional product to our consumer.

 Nestlé believes that. beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist. as a general rule. conduct and the responsible attitude of its management and employees. legislation is the most effective safeguard of responsible conduct. 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. Therefore recruitment of the right people and ongoing training and development are crucial.Nestlé  Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior. -3- .  Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism. although in certain areas.

1. Nestlé neslac  1996 Nestlé juices. polo mint. caution -4- . Nestlé pure life  2000 Nestlé plain yogurt  2001 Nestlé fruit yogurt . Nescafe classic  1997 Nestlé kit Kat  1998 Nestlé toffo .2  2002 Nestlé everyday liquid  2003 Nestlé buddy.Nestlé PRODUCT LINE “Build branded food improve quality of life by offering tasty. Nestlé hi-calcium low fat yogurt  2004 Nestlé raita. frost  1990 Nestlé nido. hygienic and nutritional products. Nestlé nan. Gloria magi  1994 Nestlé Milo. Nestlé nan. Nestlé soothers. Nestlé cerelac  1991 Nestlé rice.”  Nestlé products  Juices  1981 Nestlé milk pak  1983 Nestlé butter  1986 milkpak uht. Nestlé lactogen1  1992 Nestlé everyday. cream desi ghee.

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a grown up or an old aged person.” Marketing Management Philosophy followed by the NESTLÉ Societal Orientation / Societal Marketing It is clear from the Haleeb Foods Ltd. NEED As the milk is been a basic need of every individual whether its an infant. milk is a need of every one whether its in shape of plane milk or to be used in tea or coffee.Nestlé KEY OBJECTIVES “Build branded food improve quality of life by offering tasty. They want to improve the quality of life of the community by providing quality food products at affordable prices. mission statement that the organization is not only selling products to maximize its profit but also wants to provide a healthy and safe environment to the community. WANT But now a days people are much more conscious about there health and hygiene so regarding the need of milk a -6- . hygienic and nutritional products. DEMAND As the people buying power is raising this want of packed milk is converted into demand of the people and as far as Nestlé is concerned it is a want of middle class and some time demand of the lower middle class.

VALUES  Enterprise  Empowerment  Accountability  Team work -7- . pasteurized and ultra heat treated healthy milk.Nestlé want has come into being in shape of packed.

Promise & Support: BEST MILK FOR DRINKING & TEA. Marketing Strategy Used:Penetration strategy supported by product differentiation .  Haleeb  Nurpur  Engro foods Competitive Analysis Major competitors include NURPUR& HALEEB Others are:ENGRO FOODS & raw & open milk sold by Dodhi (milkman) Same prices of milk offered by them Advertising:Media opted for: Slogan: Theme: Push VS Pull: Television. Bill Boards and Print Media. Some known competitors of Nestlé’ are.COMPETITORS As the Nestlé is market leader in milk producing so its keenly observe its competitor and try to improve its quality and variety of products day by day by doing continuous enhancement. Value Preposition: Best value for money. Good life” MILK FOR EVERY ONE At some stores there is push strategy for the product where as at some stores its pull. “Good food.

Suppliers Company having their own milk collection centers in different sectors which not only take the milk from the farmers but also tell them about the modern techniques to improve the quality and quantity of milk. . Public As this one is a public company but not listed in the stock exchange yet Company is using both the printed and electronic media Company having keen interest in general public because they are the actual customer of the organization and try to design the product according to their expectations.MICRO ENVOIRMENT Company in Nestlé the owner have no concern with the company operation all the decisions are taken by the board of directors and pass on to the subordinates. Intermediaries Company hire the private distribution and whole seller to provide its product nation wide and internationally company keep a strict check on its distributors company had appoint an area manager on each distributor to keep an eye on its performance Customer Company keenly study the demand of the community as the poverty level of our country is high and most of the people are not in condition to afford the packed milk so company introduce a milk which is packed but price is almost same to the open or loose milk.

Differential Strategy Provide hygienic and nutritional products to the nation in an affordable price Key success factors:  Quality  Continuous System Enhancement  low and affordable price  Competitive Advantage  Thickest & Healthiest milk  Differentiation Strategy  Functional  Selling Preposition Unique:  Thickest milk with standard price. Media Graphically Electronic & Print media Customers Profile Females House wives b/w the age of 25-35 SEC1& SEC2 . Geographically National and International market. Segmentation & Target Market Demographically Gender wise & Income classes.

000 liters Monthly sales value: Rs.62% as per share. 30 crore Annual sales value: Rs.t last year. Nurpur & Engro Foods 17%.r.8 billion Sales Growth rate This is changed 12% w. Total Turnover:- . remaining portion is covering by Haleeb.MARKET SHARE Market Share 3% 7% 17% 67% 6% Nestle Haleeb Nurpur Engro Foods Empty Market Share The total market share of Nestlé’ during the year 2005-06 is 67%. 4. Sales Daily sales: 400. 7% and 3% respectively. 25% Dividend:22.

7. Nestlé Pakistan is trying their best to meet this empty 6% portion. 12.5 2005 -06 In 2001-02 the sales turn over of Nestlé is 9.13.5 Billion Rupees. with the help of their sales promotion department which is doing very effectively job for the achievement of this object. Beside this fact almost 6% market share remains empty. 13.7 billions more in the next year i.8 10.5 billions respectively. The sales turn over of last five years is showing the continuous increasing trend and clearly representing the struggle of the management of Nestlé.1 billions and it is increased by almost 0.) 9.e. 2004-05 and 2005-06 which is 10.8 billions in 2002-03. .This booming trend keeps on increasing continuously in the next three years 2003-04.200402 03 04 05 year Amount in (Billion Rs.2002.2003. Because of some crucial reasons of infrastructure such as transportation problem and other duties to deliver their products in far locations.9 9.7 13.9. it reached to 9.1 12. Nestlé Sales Turn Over Sales Turnover of Nestle' 15 10 5 0 2001.

7 1.2 0. 67% reached Rs.5 0. .Nestlé’ With Competitors 15 10 5 0 Nestle Haleeb Nurpur Engro Foods Others 2.5 billion .e. because of the major portion of Nestlé the market share i.3 13.Beside this contribution of other four companies combinely cannot compete the overall sales revenue of Nestlé.13.) ` In 2005-06.5 Billion (Rs.

T ANALYSIS STRENGTHS 24 milk collection centers equipped with latest quality assurance laboratories. . Etc THREATS Nestlé MilkPak. ISO 9001-2000 WEAKNESSES • • Un CONVINENT PACKING Unattractive and low media advertising OPPORTUNITIES There are number of milk importing countries like: • • • • • Bangladesh China Hong Kong Singapore Thailand.O.S. Rising exports of India. The whole Indian Nestlé industry because India is the largest producer of milk in the world. The only Nestlé Company in Pakistan with the following Certificates: • • • HACCP (in process safety controls) (better quality) ISO 14000 (environment friendly operations) Tubular indirect heat treatment system from Holland. which is one of the largest and most influential milk processing outfits in Pakistan Haleeb.W. The only Nestlé Company in Pakistan that undertakes 21 rigorous quality control tests. and raw milk Gawallas. NurPur.

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low share Build into Stars or phase out Require cash to hold market share High Star Nestlé High growth & share Profit potential May need heavy investment to grow Anticipated Growth .The BCG Matrix- Market Share High Low Question Marks High growth.

And finally as far as DOG (low growth . high share) because of Nestlé proper establishment they are successful to generate more revenues by selling their products continuously and producing cash in huge. As QUESTION MARK (high growth. low share) is concerned the company required cash to hold market share. successful Produce cash Dog Low growth & share Low profit potential In the BGC matrix of Nestlé STARS (high growth & share) are their heavy profit potentials and Nestlé can utilize these profits in grow of companies different investments. low share Build into Stars or phase out Require cash to hold market share High Star Nestlé High growth & share Profit potential May need heavy investment to grow Anticipated Growth Rate Cash Cows Low Low growth. high share Established.Market Share High Low Question Marks High growth. In CASH COWS (low growth.

Recommendations Transform the formula of milk because it gives a taste of powder milk Lower the price and reduce the packaging costs Conduct more advertising and change the style of add campaigns.& share) in BGC matrix of Nestlé are concerned if the company will not perform well their higher potential profits can be changed into dog. . Conclusion To put the pre-going discussion into nut-shell. It can safely be ventured to opine that Nestlé company has s much potential at that time but if Nestlé use the always differential strategy in proper manner we easily conclude that Nestlé will be able to lead the companies in the Pakistan and abroad. Sachet pack should be introduced so that a poor man too can afford it.

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