TYPE OF ASSIGNMENT: Project Report

“NESTLE MILKPAK”

Prepared by: Osama Hussain

Registration no: 1935112

Class: MBA-36 (2)

Submit to:
Sir DR: Ghulam Murtaza Shah
SZABIST, HYDERABAD CAMPUS

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 TABLE OF CONTENTS

s.no PAGE
NO:
1 Introduction 4

2 Vision and Mission Statement: 4

3 Nestle core value 4

4 Nestle divisions 5

5 Nestle products offer in Pakistan 5

6 Nestle ambient dairy 7

7 Nestle milkpak slogan 7

8 Nestle milkpak competitors 8

9 Olpers study 11

10 Customer market share of nestle milkpak 12

11 Nestle milkpak offered benefits 12

12 Nestle milkpak relationship strategy with customer 13

13 Customer data base maintenance in database 14

14 Recruitment & training programs in nestle 15

15 Communication strategy for customers 16

16 Market segmentation 16

17 Milkpak target market 18

18 Way to promote customer relationship 18

19 Way to attract new customers 19

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20 Way to handle disturbing customers 20

21 Way to handle customer complaints 20

22 Recommendations 22

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INTRODUCTION:
It is the largest food company in the world measured by revenues, and it is founded by HenriNestlein
1866, headquartered in Switzerland. Nestle has 447 factories, operations in 194 companies and
employees around 339000 peoples. "Good Food, Good Life" is the promise that Nestle commits to
everyday, everywhere to enhance lives, throughout life, with good food and beverages.

Nestle Pakistan today is the leading Food & Beverages Company in Pakistan with key focus on
Nutrition, Health and Wellness and reaching the remotest of locations throughout Pakistan to serve the
consumers. Nestle Pakistan also prides itself in being the leaders in Nutrition, Health & Wellness. Ever
since 1867, when Henri Nestle invented the first infant food, nutrition has been in our DNA. Today
more and more consumers mirror our emphasis on nutrition, as they realize that food choices affect their
health and quality of life.

Vision and Mission Statement:

Vision
The Nestle global vision is to be the leading health, wellness, and Nutrition Company in the world.
Nestle Pakistan subscribes fully to this vision.

Mission Statement
NESTLE to be the “Beverage Wellness Champion” offering consumers healthy and refreshing pleasures
of life through a variety of premium juices and nectars”

NESTLE CORE VALUES:

The Nestle Core values are as follows.

They focus on to develop a workforce which is highly motivated and can perform well in the
workplace.

They focus to meet the requirements and needs of their consumer which comprises of all age groups.
They can be from small infant to older age. They focus on creating high quality products and provide
services which are helpful in capturing great customer value.

They also focus on maintaining the shareholder’s wealth but keeping in mind that to perform their
operations well with environmental and social responsibilities.

Their brands are preferred in comparison of High quality food and Beverage products.

They Communicate with their customer and provide them with the relevant information they need.

They promote their employees and motivate them to compete and to become specialized in their
work.

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 They also have milk collection services which help to develop dairy sector in the rural areas of
Pakistan.

The organization follows proactive approach which helps them to compete in the market.

Keeping all the above mentioned points in mind these points help the Organization to maintain and run
their daily operations in way which is best for both the organization and the Share Holder’s and also
keeping and running their customer trust in the long run.

NESTLE PAKISTAN:
Nestle Pakistan Ltd is a subordinate of Nestle S.A. It is scheduled on the Karachi and Lahore stock
exchanges and it is functioning in Pakistan since 1988 under a joint venture with Milk Pak ltd and took
over management in 1992.Nestle is headquartered in Lahore; and operates four production facilities.
Two of its factories in Sheikhupura and Kabirwala are multi product factories. One factory is in
Islamabad and one in Karachi which is producing bottled water. Through its effective marketing and a
vast sales and distribution network throughout the country, it ensures that its products are made available
to consumers whenever, wherever and however. Nestle Pakistan operates in many ways but people,
products and brands are the main flag bearers of the Company’s image.
Nestle believes in creating shared value and is committed to the communities it works and lives with. In
Pakistan, the company is working closely with the communities in areas related to Nutrition, Water and
Rural Development, and continues to enhance the quality of life of people throughout its value chain.

NESTLE DIVISIONS:
 NPL
 Food and Beverages
 Nutrition

NESTLE PRODUCTS OFFER IN PAKISTAN:

Nestle has many brands under one name. It serves almost every class and have product in every category. Nestle
has dairy products, bottled water, confectionery, baby food, culinary, breakfast cereals, juices, chilled dairy,
coffee, pet food and many more

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Business Portfolio

Nestle is committed to the following Business Principles in all countries, taking into account local
legislation, cultural and religious practices:

1. Ambient dairy
 Milkpak
 Nido
 Every day
2. Chilled dairy Nestle plain yogurt
 Nestle Dahi
 Nestle zeera raita
 Nestle podina raita
3. Bottled water
 Nestle pure life mineral water
4. Culinary and food
 Maggi
5. Baby food
 Cerelac
6. Breakfast cereal
 Nestle koko crunch
 Nestle milo
 Nestle corn flakes
 Nestle fitness
7. Coffee
 Nescafe classic
 Nescafe gold
 Nescafe 3in1 coffee
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 8. Confectionary
 Nestle crunch
 Nestle kitkat

NESTLE AMBIENT DAIRY:

Chosen Brand

Milkpak
Nestle was first introduced in the market by MILKPAK Ltd in our ambient dairy category.
MilkPak in 1981and originated the packaged milk category by which they pioneered TETRA Pack milk
in Pakistan. The supply chain involved collecting milk from rural areas across Punjab, processing the
milk through UHT (Ultra - High Temperature Processing) treatment, and selling it to consumers in
uniquely colored triangular and rectangular packs designed to prolong the milks quality. It was a simple
solution, but difficult in practice: importing the stainless steel chilled containers required was
prohibitively expensive. By 1988, the company purchased 120 tons of milk a day from 26,000 farmers.
However MILKPAK “Milkpaks” were very well-received and the brand soon became synonymous with
quality milk.

This product was launched in 1981. Backed by a very strong brand name, aggressive marketing
and distribution plan, consistent quality, and availability throughout the year, it has become quality milk.
In September 1999, MilkPak UHT milk was launched as Nestle MilkPak UHT milk. It is available in
1000, 500 and 250 ml sizes to complete your daily requirement one glass of Milkpak provides 41%
Calcium, 20% Iron, 18% Vitamin A and 20% of Vitamin C.

NESTLE MILK PAKSLOGAN:

“yehi hai Doodh ka khalis maza”

NESTLE MILK PAK COMPETITORS:

There are many competitors Milkpak but some major competitors is describe below:

 Olpers
 Good Milk
 Adam Milk
 Anhaar
 Noor pur Milk

Haleeb

In 1986 the commercial production process started with UHT liquid milk from May 21, 1986. The
liquid milk was the first product launched in the market. The company started its operations in 1985

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 having the state of the art plant in the entire dairy sector of Pakistan. Comprising an area of 32
Acres, this plant had a capacity of producing 80,000 liters per day of milk.

Good Milk

A known name in Pakistan milk industry and owned by Shakarganj.

Adam Milk

Adam’s Milk foods are a company with a wide range of dairy products including cheese and other
dairy products. It has gained a large number of customers.

Anhaar

Anhaar is Pakistani local brand which so far has introduced different range of milk including low fat
and whole cream etc.

But we take a Olpers Milk for detailed study, Because Olpers milk is second highest selling packaged
milk brand in Pakistan. It is owned by Engro foods in Pakistan.

OLPERS STUDY:
Olpers is Product of Engro food Limited Olpers is a larges selling milk brand in Pakistan. Olpers milk
introduced in 2006, flagship brand, is the leading UHT processed milk brand. Olper’s has gained
leadership position within a span of eleven years through the promise of wholesome nutrition and
through commitment to innovation, safety & convenience. The brand philosophy resonates well with
mothers who are constantly in the process of seeking superior nutrition for their children. It is available
in easy to open 6-layered Tetra Pak Brick Aseptic red packaging and comes with thee months shelf line.

Olper’s by Engro Foods siding the Nestle MilkPak and becoming the market leader of the
category.Brands like MilkPak (owned by Nestle) had led the dairy market in the world’s fifth largest
milk producing country for nearly two decades without any real sustained competition. Engro Foods, in
contrast, had only recently been established by Engro a traditional giant in Pakistan’s chemical and
fertilizer industry. Evidently, Olper’s has woken up the competition. MilkPak responded with campaigns
of its own to reaffirm the positive equity of its brand and has largely focused on a message of health,
vitality, and strength through quality milk. Despite dwindling market share Olper’s is very strong in
terms of consumer quality perception. Our monthly blind taste tests show that consumers rate Olper’s
significantly higher than MilkPak. Olper's continues to understand its consumers and follow through on
that knowledge. Engro Foods aims to become the only company to utilize all of the milk collecting areas
in Pakistan and also plans on developing the biggest dairy farm in the country. The company’s
reputation as a local giant actively involved with community welfare in remote areas has also been a
positive add-on for Engro Foods. Branding experts could not imagine how Olper’s could distance itself
from its parent company’s incredibly unappetizing, chemical-laden, and non-edible roots. Yet, by the
end of 2006, sales for Olper’s Milk had reached Rs.1 billion (approximately US$ 15 million) and in
2008, the brand has a market share of close to 22 percent second only to MilkPak (estimated at 40

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percent). The critics had to grudgingly accept that the new entrant to the multi-billion rupee packaged
milk category meant business.

1. Current Marketing Situation

Marketing research is an important step when a new product is to be launched into market especially for
an organization with no experience in the field. There are numerous risks associated with the new
product. so to reduce the risks, research is a very important step towards the launch.

The research uncovered that the food industry held the maximum promise and profits if on right track.
The statistics show that Pakistan is the third largest milk producing country in the world, with urban
consumption of about 7 billion liters annually. There is an overall growth in the PLM sector due to
awareness in health and hygiene, this coupled with an increasing dissatisfaction with the loose milk from
the local “doodhwala”. In Punjab loose milk costs between Rs. 46 and Rs. 50 while tetra packed milk
costs around 75, same is the case is in Sindh where the price difference between the fresh milk and
packed milk is around 20. These are a few problems which have to be solved in order to penetrate the
market to the full extent.

2. Demographic segmentation

Olper’s products are not bounded to any particular age, gender or lifecycle stage. The brand is meant for
all the users in higher upper or middle class families. Even though the brand calls for a small percentage
of an individual’s income but lower class wouldn’t want to buy the brand maybe because they are price
sensitive or because they believe lose milk is better than processed milk and has all the nutrients that the
processed milk lacks.

3. Market description

The milk sector consists of the consumers that have standardized preferences. All consumers that drink
either fresh or processed milk have homogeneous and similar preferences and wants. Keeping these
things in mind, it is very difficult for a new company to take on a challenge of producing on a large
scale, distributing it extremely effectively and massively promoting. The preferences that the consumers
want are nearly similar according to the survey. The inclination towards particular qualities milk should
attain is, the milk should be white, milk should not smell, hygienically processed and is good for health
and bones. Keeping these preferences Engro Foods introduced two more products besides Olper’s milk
and Olper’s cream

As previously mentioned, the preferences of all the consumers demanding or wanting milk are the same.
So segmentation is really a problem for the Engro Group but the preferences differ for a few consumers
that prefer skimmed milk. The segmentation was done according to demographics, psychographics and
behavior.

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 4. Product Review

Different packaging of all the three products: Olper’s milk, and Olper’s cream

Marketers have decided to position it as a product that can be used for all purposes that the fresh milk
does

UHT heated processor that means high quality of milk

6 layers of tetra pack for extra cleanliness and protecting the preserved milk from bacteria and germs

3 months of shelf life, that means that storage of milk, or consumers can buy cartons of milk without
worrying that the milk will get useless.

Milk that attains all the nutrients which the fresh milk has.

A product that helps weight conscious people to lose weight

Helping all users to have a chance to have healthy and strong bones

5. Positioning

The red color that has been chosen for the packaging of Olper’s milk is quite eye-catching and
distinctive than the colors that have been used in Pakistan in the milking sector till now. The product
will be positioned in a way that it conveys the message that it will fulfill all the purposes of a consumer
that the fresh milk does.

It will be positioned in a way that it will target people who are goal-oriented and focus on their careers.
This will also exhibit a image that this will help people remain fit and in the same shape without
worrying for the fat contents in the regular milk.

6. Product strategy

Olper’s milk along with theinclude all the features and core values that have been mentioned so as to
receive maximum consumer satisfaction. More will be given than promised so as to achieve customer
delight.

A massive advertisement campaign with Olper’s logo on every bill board, ads and newspapers. Every
marketing campaign will be utilized in order to let people know of the new product. There will be many
below the line activities including free tea using Olper’s milk will be provided to the potential buyers at
major departmental stores for testing purposes, so that people know what type of product they will be
using.
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 7. Future Plan

 Engro Foods Limited (EFL) announced its vision to emerge as a global player in the food

 Industry with a proposed initial spending of over $200 million. The vision announced at a press
conference in Karachi aims at transforming the company within the next five years into first
national food industry giant, then into a regional force and finally into a global player.

 For the year 2007, the Board of the Company has already approved Rs 2.0 billion investments in
capacity expansion and marketing, including setting up of a plant in Central Punjab.

 While unfurling its future plans, ENGRO Foods CEO Sarfraz Rehman stated, "Our vision is to
become a fast expanding mega foods company. To achieve our vision, the company will initially
focus on dairy by investing a substantial amount in plant, milk collection capability and
marketing. We firmly believe that there is a big dairy opportunity available and with our strong
entry in UHT milk category, with Olper’s milk, we have placed ourselves ahead of others in
terms of quality and consumer-understanding. It is our belief that we can get the maximum out of
this opportunity by focusing on innovation and quality.

Marketing mix of olpers:

Product:
The Engro foods packages its milk Olper’s into packs of sizes 1500ml, 1000ml, 500ml and 250ml.
Engro goods is the most well-known trademark, recognized by 94% of Pakistan’s population. The
business is very successful and holds a very good reputation. Olper’s milk is a fast growing food
company. By its unique techniques in a short time it becomes very famous in market. But it is in growth
stage yet. Because due to its distribution it is not available.

Price:
The prices of olper’s vary according to the size. The prices of available olpers packs. Engro foods is
pursuing the competitive pricing strategy for its products. In competitive pricing the price of product is
considering the price of major competitors like Haleeb and Nestle etc.

Place:
This department ensures timely and effective distribution of the product to the shops and stores spread
all across Pakistan. From transportation management to obtaining route permits and approvals, is done
by this department.

Promotion:
Advertisement
 TV Bloopers
 Sponsoring of TV shows
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  Madison an Vine technique
 Print ads.
CUSTOMER MARKET SHARE OF NESTLE MILPAK:

Market share of the size of slice shows the 45 percent of Milk Pak, 22 percent of Haleeb, 17
percent Olpers, 9 percent of Dairy Queen, 4 percent of NurPur, 1 percent of Good Milk,and 2 percent
Other..

Pakistan is the one of the largest milk producing country in the world and has a huge potential to grow
and contribute to the economy as far as dairy milk is concerned. The annual production is 33 billion
liters of milk, which is worth Rs 177 billion. Interestingly, 97% of this production is concentrated in
what is known as the informal sector. This means that the milk is produced by animals in the villages,
and consumed both in the village and the cities. This is also called “open milk” or “fresh milk”. There is
no branding or formal packaging here. But at the same time, there are also no preservatives involve,
hence the term “fresh milk or unpackaged milk” readily available from numerous milk retail outlets
across the country.

NESTLE MILPAK OFFERED BENIFTS:

Guaranteed by Nestle's quality systems and dairy expertise, NESTLE MILKPAK provides wholesome
nourishment through Proteins, Calcium, Minerals, and Vitamins. Calcium & Vitamin D help keep bones
& teeth healthy while Vitamin A plays an important role in good vision and supports skin health. As
well as nestle milkpak is available anywhere customer are assess easily. If customers forget use Nestle
Milkpak till expire date nestle is give a exchange policy for without any extra charges & give a fresh
peace. This type of service is cannot provide any other Dairy firms. One more opportunity give a nestle
milkpak for our customer, if incase any customer is not satisfy Milkpak production & packaging process
Nestle Milkpak Give a opportunity for visit Dairy farm, production process department, packaging
department and look own eyes for increase our satisfaction level. As well as give a two types of benefits
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Performance base & non performance base benefits, performance basis benefits give a extra discounts in
religion festival and non performance base benefits give a gifts like (tea cup, toys, shopping vouchers,
restaurant vouchers) etc.

For a company to survive the company must maintain and sustain its advantages. So, these are the major
reasons why Nestle Milkpak Pakistan is still competing and is successful.
Nutrition, Health and Wellness: Nestle’s core aim is to enhance the quality of consumer’s lives every
day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy
lifestyle. Nestle express this via their corporate proposition ‘Good Food, Good Life’. Nestle Nutritional
Profiling System
Quality Assurance and product safety: Everywhere in the world, the Nestle name represents a
promise to the consumer that the product is safe and of high standard. Nestle Quality Policy
Nestle’s success is based on Nestle people:Nestle treat each other with respect and dignity and expect
everyone to promote a sense of personal responsibility. The Company recruits competent and motivated
people who respect their values, provide equal opportunities for their development and advancement,
protect their privacy and do not tolerate any form of harassment or discrimination.
Safety and health at work:Company iscommitted to prevent accidents, injuries and illness related to
work, and to protect employees, contractors and others involved along the value chain.
Environmental sustainability: The Company is committed to environmental sustainability. At all
stages of the product life cycle they strive to use natural resources efficiently, favor the use of
sustainably-managed renewable resources, and target zero waste.

NESTLE MILKPAK RELATIONSHIP STRATEGY WITH CUSTOMER:

Nestle Milkpak will build profitable customer relationship by providing them best taste best health at
very best price. We are going to produce a Milkpak with number of important vitamins, iron, nutrition
and lot and lots of health and taste. We are going to give best taste which no one provides. We use good
food so in short we give them value and satisfactions to build a profitable customer relationship by
letting them feel ‘we care’. Nestle is always first focus over customer and give a many benefit like
discount, transportation services, feedback policy, as well as nestle company set out annual budget our
customer for give a benefit perspective.

Customer Relationship Management is the system of managing a company’s interactions with current
and future customers. It often involves using technology to organize, automate and coordinate sales,
marketing, customer and technical support. Customer Relationship Management is the key to success to
any organization. Many organizations fail due to the bad practices of the Customer Relationship
Management. If the customer is satisfied with the services of the company, the customer will be willing
to purchase more often the product which the organization is offering. Nestle have developed deep
relationships with the farmers. Due to which Nestle MILKPAK is competing effectively in the market.
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 Nestle company follows the CRM to provide best quality of products to its customer to
make them feel satisfy. This helps a lot Nestle as the feedback of the customers lead the company to
judge what is good for the betterment of Nestle.CRM involves Marketing, Sales, Order and Support.
Starting from the marketing and advertising of product/service help the target market to know what’s
new in the market to purchase or fulfill the needs. A sale somehow depends on the marketing strategy.
Demands and sales of the product show the interest of target market towards the Nestle brand.
Conclusion of CRM depends upon the feedback or support gained by the customers of Nestle. Nestle
analyzes the customer feedback and detect the defects or flaws or even the factors which are affecting
the brand image positively or negatively.

CUSTOMER DATA BASE MAINTENANCE IN DATABASE:

Nestle Pakistan Limitedand its group companies is committed to safeguarding your privacy and ensuring
that you continue to trust Nestle with your personal data. When you interact with us, you may share
personal information with us which allows identification of you as an individual (e.g. name, email
address, address, and telephone number). This is known as “personal data”.

Nestle websites, mobile applications, text messaging programs or through Nestle branded pages or
applications on third party social networks (e.g. Facebook) (Nestle Sites) or by giving us your personal
data, you accept the practices described in this Privacy Notice. If you do not agree to this Privacy
Notice, please do not use Nestle Sites or give us any personal data.
Nestle all distributor use NPDMS software for collecting and keeping Retailer and consumer data. This
software are use only for authorize person with the help of this software we can keep all data in one
secure platform. After collecting all consumer of customer data via mail, online, offline and other
sources after collecting a data we use NPDMS software for managing and take a right decision in right
time
Nestle reserves the right to make changes to this Privacy Notice at any time. We encourage you to
regularly review this Privacy Notice to make sure you are aware of any changes and how your personal
data may be used.
Nestle may collect personal data about you from a variety of sources, including through:

 Online and electronic interactions with us, including via Nestle Sites;

 Offline interactions with us, including via direct marketing campaigns, hard copy registration
cards, competition entries and contacts through Nestle consumer services call centers; and

 Your interaction with online targeted content (such as advertisements) that Nestle, or service
providers on our behalf, provide to you via third party websites or applications.

This is data that you provide to us with your consent for a specified purpose, including:

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  Personal contact information, including any information allowing Nestle to contact you in person
(e.g. name, home or (e)mail address, and phone number);

 Demographic information, including date of birth, age, gender, location (e.g. zip code, city and
state and geo-location), favorite products, hobbies, interests, and household or lifestyle
information;

 Payment information, including to make purchases (e.g. credit card number, expiration date,
billing address

 Account login information, including any information that is required for you to establish a user
account with Nestle (e.g. login ID/email, user name, password and security question/answer);

 Consumer feedback, including information that you share with Nestle about your experience in
using Nestle products and services (e.g. your comments and suggestions, testimonials and other
feedback related to Nestle products); and

 Consumer-generated content, including any content (e.g. photos, videos and personal stories)
that you create and then share with Nestle (and perhaps others) by uploading it to a Nestle Site.

Nestle does not share your personal data with any third party that intends to use it for direct marketing
purposes, unless you have provided specific consent in relation to this.
Nestle may share your personal data with third parties for other purposes, but only in the following
circumstances
RECRUITMENT & TRAINING PROGRAMS IN NESTLE:
1. Recruitment

Recruitment and selection forms a core part of the central activities underlying human resource
management: namely, the acquisition, development and reward of workers. It frequently forms an
important part of the work of human resource managers – or designated specialists within work
organizations. However, and importantly, recruitment and selection decisions are often for good
reason taken by non-specialists, by the line managers. There is, therefore, an important sense in
which it is the responsibility of all managers, and where human resource departments exist, it may be
that HR managers play more of a supporting advisory role to those people who will supervise or in
other ways work with the new employee.

Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with
appropriate qualification, and encouraging them to apply for jobs with an organization.

2. Selection Process
 Preliminary interview

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  Receiving application
 Screening of Applications
 Employment Test
 Interview
 Reference Checking
 Medical Examination
 Final Selection

3. Training programs at Nestle

The willingness to learn is therefore an essential condition to be employed by Nestle. First and
foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each
manager and is crucial to make each one progress in his/her position. Formal training programs are
generally purpose-oriented and designed to improve relevant skills and competencies. Therefore they
are proposed in the framework of individual development programs and not as a reward.

Two-thirds of all Nestle employees work in factories, most of which organize continuous training to
meet their specific needs. In addition, a number of Nestle operating companies run their own
residential training centers. Virtually every national Nestle company organizes management training
courses for new employees with High school or university qualifications. But their approaches vary
considerably.

COMMUNICATION STRATGY FOR CUSTOMERS:

As discussed earlier, Nestle communicates to its customers through TV ads, radio podcasts, Facebook
pages, other social media handles and Flyers/Posters etc. In this regard, both online and offline means of
communication tools are used.

1. ONLINE

Facebook: https://www.facebook.com/NestleMILKPAK
Website: https://www.nestle.pk/brands/ambientdairy/nestle_milkpak
2. OFFLINE

 Posters (Branding).
 Price increase communication to be pasted at retail shops.
 Flyers for promotions to residential customer base etc

MARKET SEGMENTATION:
The marketing concept calls for understanding customers and satisfying their needs better than the
competitors do. But different customers have different needs and it rarely is possible to satisfy all

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customers by treating them alike. Market segmentation is the identification of portions of the market that
are different from one another. Segmentation allows the firm to better satisfy the needs of its potential
customers.

For getting the maximum market share and respect of the product in the minds of the consumer, as per
our observation and market survey we have concluded that Nestle MilkPak segmentation is based on
two points.

 Demographic Segmentation.
 In-Store Display Segmentation.

Demographic Segmentation

Family, Age & Income

Milk Pack has made different sizes of Tetra packs which can match the needs of buyers, ranging
from 0.25 liters to 1.5 liter. Buyers can buy according to their need between these quantities.

 1 liter of Nestle milkpak has the major 55% of total sales.

 250 ml of Nestle milkpak has 25% of sales.
 1.5 liter of Nestle milkpak has 10% of sales.
 500 ml of Nestle milkpak has 10% of sales.

In-Store Display Segmentation

Nestle have also segmented Milk Pack on the bases of In-Store display segmentation. I n this type of
segmentation the company have given different shelves in big stores and also given the chillers to
some of the agent having the Milk Pack sticker upon them but in Pakistan unfortunately the shop
keepers are not using the shelves properly and they have put other brand products on those shelves.

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MILPAK TARGTE MARKET:
Nestle examined the different type of market segments on the basis
of segment size and growth, segments, structural attractiveness, and Nestle objectives and resources and
decided to introduced their operation whole of Singapore country. Nestle distributes their target market
because of having unique requirements and wants. Nestle Singapore selected their target market into two
market coverage policy:

Geographic Segmentation

Geographic segmentation approach markets are divided into different units these units may include
nations states, countries or even may neighborhood consumer often have different buying habits
depending upon where thy reside Geographically Nestle has been very successful in targeting those
areas where its competitors are not easily available. So Nestle Delight will have an advantage over its
competitors in this case of all purpose milk. Nestle can use its current supply chain to deliver the milk
Fto its target markets. A large segment belongs to the northern and rural areas of Pakistan will be
covered by Nestle because of strong distribution network. There is a gap in the supply cycle of milk in
some critical situations when shortage occurs due to short of raw material supply

Behavioral Segmentation

Dividing consumer into groups according to their uses loyalties or buying responses to a product is
behaviorist segmentation for example product of brand usage degree of usage are combined with
demographics and psychographic criteria to develop profiles of market segments Nestle has an
advantage that they have already got a strong brand image. People are loyal to this brand, making use of
which Nestle can specially target this segment & offer them any new product or highlight any feature
into marketing campaign to sell more.

Customers Profile

Families, children, Females House wives between the ages of 25-35 who are conscious about health of
their children. NESTLE is focusing People as a whole regardless of demographic, psychographics and
geographic. The main target of the firm is PEOPLE. This can be seen from their media and hoardings.
Even on the packing design one can see the FAMILY, which focuses all the age group.

WAY TO PROMOTE CUSTOMER RELATIONSHIP

It encompasses a wide variety of communication efforts to contribute to generally favorable attitudes

and opinions toward an organization and its products. Unlike most advertising and personal selling, it
does not include specific sales message. The targets may be customers, stockholders, a government
agency, or a special-interest group. Public relations can take many forms, including newsletters, annual
reports, lobbying, and support of charitable and civic events.

Nestle is following all above mentioned public relations forms

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  It donates computers to schools for disadvantaged children run by NGOs and charitable
organizations.
 To support the spread of education in rural areas, it undertakes Refurbishment Program of Govt.
operated primary and middle schools.
 The Company regularly sponsors sports and cultural events, such as the International Polo
Tournament and SAF Games in the recent past.
 The company gives the extra gifts, calendars and diaries to the employees and customers for
public relations.
 The company has initiated a tube well and hand pump installation scheme in selected rural areas.

Publicity

Publicity is also a promotional method used by the Nestle. Publicity is specific form of public relations
that involves news stories about organization or its products. Like advertising, it consists of an
impersonal message that reaches a mass audience through the media. But several features distinguish
publicity from advertising.

The company does not pay for it and it has little or no control over this and it appears as news and
therefore has grater credibility than advertising. The company seeks for good publicity and frequently
provides the material for it in the form of news releases, press conferences, and photographs.

WAY TO ATTRACT NEW CUSTOMERS:

Marketing plays an important role in building brand awareness and at the same time creates interest in
the consumer’s mind to choose from a variety of brand assortments. Building a detailed and catchy
brand communication strategy has become essential for advertisers and challenge for advertising
agencies and media planners/buyers to use the media budget effectively to attain the top of the mind
recall. An integrated brand communication strategy is implemented by each packaged milk brands like,
Olpers, Milkpak, Haleeb, Good Milk etc. Through a mix and match of TV Commercial, Radio FM, Print
Ads, Billboard advertisements and brand activation. The basis of this research will also investigate that,
how the marketing campaigns are really helping Milk producing companies to attract the urban
consumers.

Nestle mostly focus the small Market Share as of 2011 Nestle 40% Olpers32.5 % Goodmilk,Haleeb and
others 27.5% 32 children who are the major portion of our society and milk and such kinds of Products
are basic requirement of grooming children that the reason Nestle launched Milk especially designed for
growing children because introduction of calcium diets in daily diet chart is basic requirement

Broadcast media

i) Television

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Nestle use 40% of their budget on the broadcast media. Television is the major medium used for the
advertisement. Nestle has been playing commercials on the TV since they have launched the Nestle
Milkpak. Their Ads cover all the lifestyles of the people. In their ads they have shown many situations.

 Friends sitting together

 Child playing
 Swimmer Families in good mode
 Younger generation in smiling energy form
 Family enjoying picnic etc.

ii) Radio

Nestle is not only advertising on Television but they are also advertising on radio. They play the vocal
ads on Fm 100 and 101. Advertising on radio is basically for the people who are on roads.

iii) Print Media

In the print media Nestle is using the following mediums to advertise.

iv) Magazines & Newspapers

Nestle advertise in both magazine and newspaper on weekly and monthly basis. Following is the list of
magazine and newspaper in which nestle advertise:

 The News
 Nation
 Dawn
 Sunday Magazine
 The Economist MAG, Etc.

v) Direct mail Advertisement

It is any form of advertising issued directly to the prospect, whether through the mail, fax, online
computer services, salesperson, dealers or other means rather than through traditional mass media.

WAY TO HANDLE DISTURBING CUSTOMERS:

Nestle always trust all customers are valuable and main asset of our organization so they have making
and developing a strategy about any time of customers. Nestle HR department is always give a proper
training and give a lecture regarding customer dealing. This training section is most important for every
those employee who directly & indirectly connect in your customers, in this training HR learn our
employee about keep patience, because Dealing with difficult customers can be well difficult, but it
doesn’t have to be. With the right attitude and action steps, you can effectively navigate these tricky

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customer situations and emerge (hopefully) unscathed. HR gives a daily exercise or task, and take a
assignments about “Keep Claim and listen to the customers”

We talked to Nestle managers, to discover how to manage difficult clients in a company through
practical customer management tips. These are:

 Stick to the words ‘Customer Is Always Right.’

 Train your staff to deal with various situations
 Always ask for a feedback
 Monitor your online reputation
 Always respond to complaints

WAY TO HANDLE CUSTOMR COMPLAINTS:

Nestle always first preference our customer complaint and as soon as possible resolve any issue
regarding about nestle product and services. They have maintained proper complain center or
department this department is only for work day and night for solving customer complain. They have
listened 24 hours complaint for valuable customers. They give a tool free telephone no: and email
address. Complain center department always active online & offline for solving customer
complaints.You can send an email through our contact form, selecting your country of residence. Your
local consumer services team will try to answer you within 48 hours.After solving problem customer
representative contact you, and ask about you complain. Nestle is always keep a long term relationship
with customers so this company is follow following steps for solving customer complaints. These step is
describe below:

1. Listen and acknowledge the problem

When confronted with a disgruntled customer, start off with a short introduction of yourself and politely
enquire the cause of their dissatisfaction. Listen closely to their feedback; understand the root of the
problem, and apologies sincerely. Always remember to keep a calm stance even though the customer
may be visibly upset - it’s important that you demonstrate a collected in order to tackle the issue with a
clear head.

2. Identifying the solution

There are two ways to go about this - either consult the customer on their preferred resolution to the
matter, or proactively offer an immediate solution. The first step is often reserved for tricky
circumstances such as situations involving a third party or guests who are already leaving the premises.

Be very careful not to make snap judgments - this reflects poorly on the establishment’s managerial
staff. Instead, gently enquire about their opinions. This gives the impression that feedback is valued,
even actively solicited, so there’s a higher chance for a return visit.
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 3. Take action

Complaints are best resolved while customers are still at the premises. Hence, efficiency is key in
dealing with situations like this. For example, if a customer is unhappy with an undercooked steak,
immediately offer a complimentary exchange and place the order on high priority to cut down waiting
time.

4. Damage control

Although discounts may seem like a convenient solution to appease disgruntled customers, try not to
resort to this unless necessary. There are plenty of recovery methods that you can employ as damage
control. For instance, a diner served an unsatisfactory meal could have that item removed from the final
bill.

If the customer is satisfied with the resolution of the complaint, exceed their expectations by offering a
complimentary dessert or discount coupon for the next visit. This generous gesture will leave a positive
impression that leads to the possibility of a return visit.

Encourage your team to follow a standard operating procedure in the event of a customer complaint.
Maintain a professional image at all times while working out the best possible solution. Be sure to share
such experiences with your employees so they are well-informed of ongoing matters in the restaurant
and how to resolve similar issues in the future. At the end of the day, feedback reflects an opportunity
for further improvement that will help improve the restaurant’s reputation over time.

RECOMMENDATION:

The target market needs be more improve, because there is great potential in C, D class particularly for
Dairy segment. The fact that lower middle class and lower class comprises the of more than 60% of the
population of the country and they have no afford Milkpak because Milkpak price is some high compare
to other local milks, so nestle try to reduce packaging and other unnecessary cost if they lower class
family want to buy purchase Milkpak they can easily purchase milkpak compare to local milk.

Nestle as costly product then its other substitute By adopting these methods manager can analyze or
increase their products demand more by reducing its price, but price can be reduced when its input cost
become less and for this they have to decrease packing cost then its price can be reduced, after that it
will be affordable for low income people. CompetitorOlpers is more demanded in rural areas By
applying some techniques like this, the price of product should be according to the areas or to introduce
new product for specially those areas with some low price and quantity but quality should remain same
or promote more its brands there for gaining familiarity among the people of rural areas. Change in its
packing Make changes in its packaging, style and its packing as international standard. They should
bring changes in its packaging time to time because it attracts more to consumers. Always being aware
of competitors Nestle as leading Milk brand but it should also have, keep a hawk eye on their
competitors and their brands, consumers, prices, quality and their marketing or supply way. Way to

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promote Nestle should have to set a strong advertisement sell, Via, T. v channels, magazines, and sign
boards and also through arranging music shows.

Nestle have also segmented Milk Pak on the bases of In-Store display segmentation. In this type of
segmentation the company have given different shelves in big stores and also given the chillers to some
of the agent having the Milk Pak sticker upon them but in Pakistan unfortunately the shop keepers are
not using the shelves properly and they have put other brand products on those shelves.

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