I Javed khan bearing reg. no 10B6CMA019 do hereby declare That the information presented here is true to the best of my knowledge. Also, the report has not been published anywhere else.

Place : Bangalore Date :




ACKNOWLEDGEMENT The project of this magnitude would not have been completed singly. Firstly I want to give my hearty thanks to all mighty who made the world and me also. There are many other people without whom the completion of the project would not have been possible. Some have contributed towards this directly while other have provided indirectly. It gives me immense pleasure to thank Mr. Satyendra Tiwary (sr. executive HR) Cadbury, for providing me training in this reputed organization and giving me a chance to have the experience of actual retail operations. I am indebted to Prof.Sarita (KRUPANIDHI DEGREE COLLEGE), for her guidance and cooperation in completing this project. Last but not the least I would like to convey my heartiest gratitude to all Members of CADBURY who helped a lot during my training.



BCG matrix has also been included in this report to know about the current standing of brand in Pakistani culture. competitors at national level. there is a briefing about the internship project that was assigned during the required internship to me. It gives a briefing about all the brands of Nestlé. All the 4P’s of marketing mix for the product has been discussed and explained to reveal the significance of its pricing. It gives a detail about the supporting department that has helped the business in their daily working. policies of the organization along with their. product. There are also some suggestions/recommendations for the business. This report also includes the market mix of the product. Also it discusses the objectives. It starts with an introduction about Nestlé followed by the history of Nestlé. The report shows an internal architecture of the working of the Nestlé confectionary business. Polo and fox Candies. In the end.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT BACKGROUND OF HOST ORGANIZATION EXECUTIVE SUMMARY This is an internship report regarding the Confectionary Products of Nestlé including Kit Kat. placing and promotional activities along with the strength and weaknesses of the organization. 4 .

however. The attractive tastes and textures of chocolate and candies delight the senses of all ages. In Pakistan. It became 'Kit Kat' in 1937. This blue packaging was withdrawn in 1947 when the standard milk chocolate Kit Kat was reintroduced. These are one of life's little pleasures. Polo and Fox candies are also well known and favorite products for refreshment. a position that it has maintained ever since. As far as Nestle chocolate Kit Kat is concerned. It did. the product developed as Wafer Crisp. change to a blue wrapper in 1945. For most of its life Rowntree Kit Kat has appeared in the well-known red and white wrapper. Within two years of launch Kit Kat was established as Rowntree's leading product. two years before the Second World War. from which Nestle fruit Fox is the most saleable and demanding candy.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT INTRODUCTION Chocolates and candies are one of the best-loved foods everywhere in the world. Polo is now being imported from china after one year gap. UK in September 1935 as Rowntree's Chocolate Crisp. was initially launched in London. when it was produced with a plain chocolate covering due to a shortage of milk following the war. Nestle Pakistan is producing Polo in china with lighter weight than before. During the Second World War Rowntree Kit Kat was seen as a valuable wartime food and advertising described the brand as 'What active people need'. 5 . Fox candies are available in six different flavors.

then Nestlé decided to set up production plants around the globe to ensure the growth of the organization and to become multinational. In 1905. Nestlé means ‘little nest’ in Swiss German. wheat flour and sugar and name it Farine Lactee Nestlé. Such factors are as follows  The availability of raw material  Cost factor  Economic climate  Consumer purchasing power  Consumer tastes 6 . Jules Monnerat purchased Nestlé and collectively they launched a condensed milk product of its own. as there are various factors that effect the growth of the organization and turns out to be a loss for the company. Thus. which was the first product of Nestlé being marketed in Europe. In 1974. The decision to set up industrial operation in new market needs a lot of research.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT HISTORY Henri Nestlé founded Nestlé in 1866 in Switzerland. Nestlé got merged with Anglo-Swiss condensed milk. Henri’s ultimate goal was to help fight the problem of infant mortality due to malnutrition for which he developed a product combining various cow’s milk. when Nestlé got fully established and all its operation were properly functioning in Europe and was gaining fame around Europe. Nestlé first customer was a premature infant who could tolerate neither his mother’s milk nor any other conventional substitute. After some time.

Over the course of the years. this enabled it to broaden its range of products and diversify its operations. while at the same time strengthening the economic foundations of the company. Australia. Amongst the most important acquisitions were Carnation in Los Angeles (milk. culinary products and pet foods) and more recently Rowntree Mackintosh in York (chocolate and confectionery). 7 . Pakistan. Italy. England. Buitoni in Perugia (pasta) as well as Perrier in France(mineral water). Belgium. which does 98% of its business outside Switzerland. India. Hungary. France. DYNAMIC EXPANSION The history of Nestle includes the development of many different products as well as acquisitions. Nestle. mainly abroad. Brazil. in cosmetics (a large share holding in L'Oreal) and ophthalmic products (acquisition of Alcon Laboratories Inc. also has interests in non-food sectors. mergers and the purchasing of shares in companies.) while continuing to give priority to food products.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT The decision to become multinational turned fruitful for Nestlé and today Nestlé has its own operations and products in America. Spain and various other countries around the globe.

Much attention is devoted to professional training and to the integration of the Company in its economic and social environment.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT NESTLE TODAY Nestle is now the world's largest food company. employs personnel from the country concerned and relies on indigenous raw materials. Wherever possible. 8 . The Company owes its current status to the pioneering spirit inherited from its founders which continues to inspire it. it sets up factories locally. to its concern with quality and to its constant search for new ways of satisfying man's nutritional needs.7 billion Swiss francs. Its agricultural services provide assistance to improve the quality and yield of the raw materials it uses. runs 509 factories in 83 countries and employs about 231. has an annual turnover of 74.000 people the world over. It is present on all five continents.

with a worldwide network of centers in 17 locations on four continents. in order to meet the needs and desires of consumers around the world. is also the global leader in the industry with regard to Research and Development (R&D). health and well being. convenience. Year after year. No other food company matches the R&D presence of Nestle.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT RESEARCH & DEVELOPMENT Nestle. for pleasure. No other food company dedicates so many human and financial resources to R&D: an international staff of 3500 engaged in the search for innovative new products and the renovation of existing ones. 9 . Nestle invests some 800 million Swiss francs into R&D as a major driving force of its double strategy: to strengthen the Company's brands worldwide and to continue to support future long.term growth and competitiveness through innovation and renovation. Nestlé’s objective is to consolidate and strengthen its leading position at the cutting edge of innovation in the food area. At the threshold of this new millennium. the world's biggest food Group.

intensive education program for the farmers and the milk collection 10 . In terms of quality. the Company's prime concern has been to improve the quality and volume of milk for UHT processing and for other milk based products. unmatched in size. chillers have been installed to lower milk temperature to 4°C for preventing bacteria development during long hauls to the factories. Over the last twelve years. Milk is collected through a vast network of village milk centers (VMCs). the milk collected by Nestle Milkpak is low in sodium. stated simply. Owing to this tremendous growth in the volume of an extremely high quality raw milk. Today. which are undertaken by a large fleet of specially insulated tankers. Driven by its commitment to quality and having realized that only self collection could eliminate its dependence on poor quality milk available from outside sources. the Company successfully established its own collection system and expanded its operations over a very large milk shed area in Punjab. At these centers. productivity and efficiency.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT BUSINESS REVIEW MILK COLLECTION The core raw material of Nestle Milkpak is milk. with longer shelf life. This was achieved through a comprehensive strategy and sustained efforts to overhaul the milk collection process. Nestle Milkpak now produces a superior quality and better tasting UHT milk. high in fat and solid-non fats (SNF) and very low in Total Plate Count (TPC) which. sub-centers and centers. means the bacteria count. Nestle Milkpak can boast of the largest milk collection network in the country.

up gradation of milk loading and transportation system. Nestle Milkpak has created a mutually beneficial relationship with the farmers. Nestle Milkpak has established an Extension Service. adherence to the highest acceptance standards at all milk collection points. including the factories. Nestle Milkpak is successfully promoting the use of molasses to enrich the fodder and has arranged its distribution to farmers at cost. coupled with incentives and a good and prompt return for their milk. To promote milk production. 11 . which translates into opportunities of economic uplift for the rural population. staffed by qualified veterinary doctors. who assist them in vaccination and treatment of livestock. As a service to farmers. By taking professional help and guidance to their doorsteps. improved breeding.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT staff. increase in the chilling capacity and above all. which they otherwise find difficult to access. provision of high yield fodder seed etc. good animal husbandry practices.

Nestle Milkpak's first confectionery plant of POLO Mint was installed and the production of NESTLE PURE ORANGE JUICE commenced. cream. Packaging of coffee under the brand name of NESCAFE CLASSIC was undertaken the same year.A. of Switzerland and Milkpak Ltd. This was followed by LACTOGEN 1 & 2 in 1991. Local packing of imported coffee under the name of NESCAFE 3 in 1 commenced the same year. In 1996. desi ghee . in 1988. 12 .an internationally recognized brand of infant cereal. it had expanded its operation and was also producing butter.all under the brand name of MILKPAK and juice drinks under the brand name FROST.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT PRODUCTION As a consequence of joint venture arrangement between Nestle S. The Milkpak Sheikhupura factory commenced operations in 1981 as a producer of UHT milk. The first to come was a milk powder plant. MILO and NESLAC came under production in 1994 and MILO RTD in 1995. With the installation of the roller dryer in 1990. The year 1992 saw the introduction of tea whitener EVERYDAY and milk powder in bulk packing named GLORIA. which not only began producing NIDO in 1990 but was also critical to the production of several milk-based products in the future. To meet the demands of the large food market that Pakistan offered. the first such product to come was CERELAC . the existing production facility of Milkpak in Sheikhupura became a part of Nestle Milkpak. By 1988. Nestle Milkpak reorganized and reinforced the production of existing brands and gave shape to new production lines.

The year 2000 saw the production of some exciting products. Based on the latest water treatment and bottling technology. First came NESCAFE Frothed Original. Nestle Milkpak also contracted to supply dairy mixes to McDonald's. Strawberry and Orange were introduced. A new variant Lemony was added to the range of popular FROST fruit drink flavors and a new 1-liter packing of FROST was introduced. And to top it all. this marked the entry of Nestle Milkpak in the Pakistan water market and that of Nestle in the world water market. increased the number of POLO variants to five. MILO RTD and UHT Cream were also shifted over to this new format. the most prestigious project.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT In 1997 NESTLE WHEAT and two variants of POLO viz. followed by its two other flavors: Mocha and 13 .ERS' Menthol Eucalyptus and Honey Lemon. A new flexible confectionery line enabled the manufacture of a wide range of high and low boiled sweets and toffees. SWEET TREETS were launched in early 1998. NESTLE PURE LIFE was also commissioned in December. The expansion of high boiled sweet line continued in 1999 with the introduction of Fruit Drops and BUTTERSCOTCH. including TOFFO and two variants of SOOTH. The addition of two flavors of POLO: Blackcurrant and Strong Mint. for its popular soft serves and milk shakes. In 1998 a substantial capital investment was made to launch several products and install two new state-of-the-art technologies. Flavored milks under the brand FRESH & FRUITY came under production on the new Tetra Filling Machine equipped with the modern "slim" format.

On the confectionery side. 14 . NESCAFE Frappe RTD was to come next. To meet the needs of safe and quality storage for the ever expanding product range and their volumes. a National Distribution Center (NDC) was completed and became functional in June. The success of NESTLE PURE LIFE in PET bottles encouraged the commissioning of 5-gallon bottles production line for home and office in June.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT French Vanilla. 2000.Mango Mix. it has the capacity to store up to 8300 pallets (approximately 8000 tons). Tutti Fruiti was added under the umbrella of POLO and Wild Cherry was added to the SOOTHERS range. a high quality product with special Stay-Fresh Seal. Spread over 6614 square meters. The fruit juice range was expanded by the production of Mango and Orange. And the last product line of the year to be commissioned in November was that of NESTLE Plain Yogurt.

Merger with Peter-Cailler-Kohler Chocolates Suisse S. Nestlé Pure Life 1. 1998 1999 Divestiture of Findus brand (except in Switzerland and its parts of Nestlé’s frozen food business in Europe.A. MJB and Chase & Sanborn roast ground coffee brands (USA). Acquisition of Perrier (France). expands its min activities with the outright acquisition of San Pellegrino. including the famous “Mozartkugeln”. Austria’s oldest confectionary. Nestlé. Nestlé acquires Spillers Petfoods of the UK and strengthen in the petfood business which began in 1985 with the Carnation Friskies brand & introduced Nestlé Pure Life.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT HISTORICAL DEVELOPMENT 1866 1905 1929 1947 1971 1985 1988 1988 1992 1995 1997 1998 Company’s foundation.. Acquisition of Rowntree (GB). Divestiture of Hills Bros.5 . Merger with Alimentana S. Merger between Nestlé & Anglo-Swiss Condensed Milk. Nesle Pure Life Jumbo Service (5 Gallon) was introduced.A. 2000 15 . Acquisition of Buitoni-Perugina (Italy). Merger with Ursine-Franck (Switzerland).liter bottle was introduced in Pakistan. Nestlé acquires Victor Schmidt & Sohne. Acquisition of Carnation (USA). through the Perrier Vittel Group. (Maggi).

It has an annual turnover of 70 billion Swiss francs. 16 . 522 new factories in 81 countries. it provides know-how in engineering. holds the financial shares in the allied companies.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT CURRENT STATUS Today. The second. It also check the profitability of these companies and to ensure the profitability of the group as whole. 200 operating companies. has more than 231. marketing. production. Their functions and details are as follows: The first. There are three companies co-ordinate the activities of some 200 operating companies around the globe. has two areas of activities that are as follows:  Research and technological development   Technical assistance Beside this. Nestlé produces in over 81 countries and achieves 98% of its turnover outside Europe. which does 98% of its business. organization.000 employees and more than 8000 products around the globe. Nestlé is the world’s largest food company. Nestlé. management and personnel training on a continuous basis. Nestlé. 1 basic research outer and 20 technological development groups.

that is why people around the globe choose.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT The third company is Nestlé World Trade Corporation that oversees the import and export of merchandise worldwide. NESTLE BRANDS Quality is an essential ingredient in all the Nestlé brands and also Nestlé brands maintain nutritional balance in a fast pace world. The detail of the Nestlé brand is as follows: 17 .

Everyday)  Ice-creams (Movenpick. Powered Soups)  Bottled water ( Nestlé Pure Life. Cat Chow. Nespray. ONE. Fancy feast.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT  Baby foods (Nestlé Cerelac. Felix. Nestlé Aquarral)  Pet care (Pro Plan. NIDO. lens-care solutions & optical surgical Instruments) OUR MISSION “To continuously exceed our customer expectation for quality products and services” 18 . Nestlé Yogurts. NAN)  Breakfast cereals (Nestlé Cereals)  Dairy products (Milkpak. Nestlé juices)  Food service (Nestlé Jumbo Bottle)  Prepared foods (Maggi. Alpo)  Pharmaceuticals (Ophthalmic drugs. Dreyer’s)  Chocolate confectionary (Kit Kat. Dog Chow. Purine. Milo. Smarties)  Beverages (Nescafe.

In addition to nutrition. We strive to bring consumers foods that are safe. health and wellness. OBJECTIVE “Making our customers winners by constantly exceeding their expectations.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT Our goal is to offer top quality brands and innovative packaging to meet the individual needs of consumer all over the world. wherever and however.” 19 . We know there is still much to discover about health. our research makes it possible for everyone to enjoy better food for a better life. Nestlé helps provide selections for all individual taste and lifestyle preferences. Nestlé products bring consumers the vital ingredients of taste and pleasure. and we continue to search for answers to bring consumers Good Food for Good Life. of high quality and provide optimal nutrition to meet physiological needs. As consumers continue to make choices regarding foods and beverages they consume. Good Food is the primary source of Good Health throughout life. wellness and the role of food in our lives. At Nestlé. Research is a key part of our heritage at Nestlé and an essential element our future. whenever.

taking into account local legislation. 20 . consumers. honesty and a general concern for people. Nestlé’s is conscious of the fact that the success of a corporation is a reflection of the professionalism. Therefore recruitment of the right people and ongoing training and development are crucial. although in certain areas. Nestlé’s recognize that its consumers have a sincere and legitimate interest in the behavior. and reflects the basic ideas of fairness. Nestlé is committed to the following business policies in all countries. Nestlé’s does not favor short-term profit at the expense of successful long-term business development. beliefs and actions of the company behind brands in which they place their trust. Nestlé’s business objective is to manufacture and market the company’s product in such a way as to create value that can be sustained over the long term for shareholders. Nestlé’s believes that. our basic foundation is unchanged. employees. conduct and the responsible attitude of its managements and employees. and that without its consumers of the company would not exist. as a general rule. cultural and religious practices. additional guidance to staff in the form of voluntary business policies is beneficial in order to ensure that the highest standards are met throughout the organization. The time of origin of our company. legislation is the most effective safeguard of responsible conduct.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT OUR POLICIES Business policies will continue to evolve and adapt to a changing world. and business partners.

the capacity and willingness to apply these policies are the main criteria for progressing in the organization. At the forefront of all research activities is Nestlé’s commitment to the utmost safety and quality. The scientific departments currently at NRC include:  Bio Analytical Science  Food Science  Food/Consumer Interaction   Plant Science  Nutrition and Health  Consumer Trust  Pet Basic Research  Scientific and Nutrition Support 21 . The Nestlé brands follow these above mentioned policies and does not make there own policies. its culture and its policies. regardless of origin. The policies formed by the Nestlé are for every employee of Nestlé around the world. A diverse selection of scientific disciplines is necessary for this global approach to nutrition research. race. gender or age. nationality. religion. SCIENTIFIC DEPARTMENTS Research at the Nestlé Research Center encompasses the sensory and nutritional value of products along with consumer behavior. Members of Nestlé are strongly committed to the company. nutrition needs and social desires for foods and beverages. its development. Apart from professional skills and insight.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT Nestlé’s continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.

NESTLÉ CONFECTIONARY — INTERNSHIP REPORT CONSUMER CONFIDENCE The Consumer Confidence department is the scientific heart of the Nestlé Quality System.  Consumer preference that ensures our products demonstrate superior organoleptic and nutritional quality. Safety evaluation requires extensive scientific skills in the two areas of food safety: analytical method development and science-based risk assessment. operational and technical units and businesses. Our wide range of expertise is made available to R&D scientists.  Product compliance that combines all aspects related to the legal compliance of Nestlé products. Consumer confidence and trust has been fundamental to Nestlé's success for over 135 years. 22 . Leading edge packaging expertise also has a role to play in ensuring both quality and safety of Nestlé food products.  Occupational and environmental safety that combines all aspects related to the safety of workers and the environment. Ingredients also need to be analyzed for authenticity and allergens.  Consistent quality that involves all measures for the delivery of Nestlé products with a consistent level of quality. We cover five main areas:  Consumer safety that guarantees the delivery of safe products.

molecular basis of unit operations including extraction and refining of ingredients.. FOOD SCIENCE The Food Science Department focuses on the physical..NESTLÉ CONFECTIONARY — INTERNSHIP REPORT Anticipation of food safety issues is guaranteed through a systematic screening of scientific and technical literature and evaluation by our network of experts for case-adapted responses. Our research activities are targeted towards innovative and inventive new ways to combine the classical food ingredients like proteins. ingredients and food products. chemical and biotechnological aspects of food raw materials.  delivery of functionalities in food products: e. carbohydrates and fats to create new food structure concepts (e. 23 .g. structure forming properties of biopolymers. The Food Science Department assembles state-of-the-art knowledge in food ingredients. Our scientists in collaboration wit nutritionists provide the scientific basis for innovative food concepts which deliver consumer benefits in the areas of pleasure.  functionalities of macronutrients: e..g.  food processes: e. food materials. foams and mousses) with specific textures and functionalities. food colloids and processes.g. or biotransformation of raw materials and ingredients. we work on three main aspects of modern foods. For an innovative approach in the way we make food products. or ingredient interactions.g. health and Wellness. control of bioavailability of functional molecules through specific carrier systems. and food quality and safety.

in particular. bioinformatics and clinical studies. and gene expression (genomics and transcriptomics). from maintenance to defense and protection. BIOANALYTICAL SCIENCE The Bioanalytical Science Department at NRC is where scientists from a range of disciplines provide knowledge required for post genomic work. We want to understand how food molecules affect the complex life processes. and how this knowledge can benefit mankind. Core disciplines span from analytical chemistry and biochemistry to (bio)mathematics. The biological process is a complex interplay of relationships between protein sequences. protein function and signaling (proteomics) and metabolite control and regulation (metabonomics). We focus on developing advanced analytical tools and methodologies to support Nestlé research and.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT Our projects are multidisciplinary and are organized in close collaboration with the other departments of NRC including PTCs and R&D Centers as well as the external scientific world such as universities. Food is a complex mixture of molecules that play different roles in the body. . This process can be studied at several levels of bimolecular organization.. Understanding the fundamental biological process is key to deciphering the contribution of genetic variation among individuals to health and wellness compared to the effects of the environment and lifestyle. the Nutrition and Health program. which include genetic. structure dynamics and molecular recognition. Bioinformatics and mathematic modeling are 24 additionally needed to unify all of the “omics” science areas..

It extends the boundaries of consumer expectations and satisfaction beyond 25 .NESTLÉ CONFECTIONARY — INTERNSHIP REPORT We aim to be at the forefront of Bioanalytical developments and implement them to further the science of nutrition and health. INNOVATIONS AND PUBLICATIONS Achieving health and wellness through foods is a challenging adventure.

FOOD/CONSUMER INTERACTION In the context of health and wellness. Much groundbreaking scientific work has emerged from the Nestlé Research Center in the form of significant product innovations and recognized scientific publications. texture. taste. satiety is the reward derived from consuming a particular food. With expertise ranging from chemistry and biology to sensory and social sciences. These include the pleasure of anticipation. What is it about a food that makes the consumer like and chooses it? We study in detail aspects of pleasure derived from food before. Today’s discoveries provide the knowledge for tomorrow’s innovations. we are a natural bridge between Food Science and Nutrition and Health. But it is also strongly linked to signals that tell you to stop eating and feel happy. and texture. But beyond biology. taste and aroma. we not only need to understand the physiology of health but also to know and understand the consumer's relationship with food. In one sense.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT the classical sensory experience. We also investigate the feeling of satisfaction. during and after consuming it. The Department is truly multidisciplinary. 26 . as well as sight. psychology or sensory behavior. Physicists and chemists help us to understand how to deliver aroma. ethnic culture is also a key to understanding why a given consumer prefers certain foods over others.

Nestle Pakistan Limited . training and knowledge to assess and communicate the nutritional benefits of Nestlé products. The group collaborates with a wide network of nutritionists from around the world in our PTCs. Functional Ingredients. health and wellness is disseminated across the entire Nestlé R&D community and businesses. R&D centers and business markets. The core of nutrition. health and wellness knowledge within the Nestlé R&D community. Nutritional Assessment and Training. technologists. In addition. we supply information to our colleagues to allow efficient and timely responses to consumer health and wellness demands. focuses on traditional and functional ingredients. This group documents the strength of scientific efficacy evidence. provides support.Company Profile Snapshot Company Profile: Nestle Pakistan Limited 27 . nutrition. we support R&D innovation by providing the tools. supports the compilation of dossiers for regulatory approval. The third group. and proposes new nutrition concepts. The department is composed of three interlinked groups: the first group provides Competitive and Scientific Information and Intelligence to our scientist. The second group. tools and training to improve the nutritional profile of our products and to increase the nutrition knowledge of Nestlé employees.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT SCIENTIFIC AND NUTRITION SUPPORT The Nutrition and Scientific Support Department (SNS) ensures that research findings and the latest news on food. and to the management.

Backed by a very strong brand name.031.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT Ticker: Exchanges: 2007 Sales: Major Industry: Sub Industry: Country: Employees: NESTLE KAR 32. it has become synonymous with quality milk.000. aggressive marketing and distribution plans. 28 .000 Food & Beverages Diversified Food PAKISTAN 2174 BRANDS IN PAKISTAN DAIRY PRODUCTS NESTLE MILKPAK UHT MILK Launched in 1981.

In September 1999. MILKPAK UHT milk was launched as NESTLE MILKPAK UHT MILK. Through future expansion into markets other than Lahore and a strong marketing and sales support. will achieve the status of market leader. 29 . MILKPAK BUTTER A continuous butter-making machine was commissioned at Kabirwala factory in the year 2000 to produce high quality cultured butter. NESTLE MILKPAK UHT MILK is available in three pack sizes of 1000. The brand provides valuable access to future product launches in the chilled product category through a dedicated chilled distribution. In a very short time the brand has gained a substantial market share. in time. This new butter was an improvement upon the earlier product and carries Nestle branding that endorses its superior quality. It has an excellent taste and aroma and is easy to spread. The new NESTLE BUTTER is available in two pack sizes of 200g and 100g in new attractive packaging. 500 and 250 ml. NESTLE Plain Yogurt will undoubtedly grow into a strong brand and. Its unique 'Stay Fresh seal and a 21-day shelf life gives the brand a formidable competitive advantage.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT consistent quality and availability through out the year. NESTLE Plain Yogurt is the latest addition to Nestle Milkpak's dairy family. MILKPAK UHT has been extremely successful. NESTLE PLAIN YOGURT Launched in November 2000 in Lahore.

NESTLE EVERYDAY tea whitener was launched in 1992. MILKPAK CREAM was also introduced in an economical 1000ml pack size in the year 2000. MILKPAK DESl GHEE MILKPAK DESI GHEE was introduced in 1986 in tin packaging. in line with the current market trend. focused distribution with sampling drives and excellent consumer acceptance. MILKPAK DESI GHEE was relaunched in 1Kg tin packaging in the year2000. NESTLE EVERYDAY To target the massive potential offered by the tea-whitening segment. 30 . This SKU has been developed for Food Services to cover institutions using large quantities of fresh cream. the brand has shown strong growth and holds good promise for the future. Supported by aggressive marketing using multi-media activities. However. The consumer trust in the brand name and the product has ensured its dominant share in the cream category.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT MILKPAK UHT CREAM MILKPAK UHT CREAM was introduced under the MILKPAK brand in 1986. The packaging was later changed to Tetra Pak. It is available in 200-ml pack size in an attractive slim pack. The product was also introduced in 16kg tin packing to tap the huge potential of loose desi ghee.

NESTLE NIDO is the best quality milk for growing children. NESTLE MILO was launched in its new 130gm. SKU in an attractive airtight jar in February2000. The brand has now launched a low unit priced SKU that offers half a liter of quality milk at a very affordable price. CHOCOLATE DRINKS MILO POWDER To provide convenience to consumers. Local production commenced in1990 and within a short time the brand achieved market leader status in the full cream milk powder category. Made from very superior quality milk and with the addition of vitamins A and D. This was done with a view to bring our packaging in line with the industry practice of making milk fortifiers and modifiers available in jars and tins and to reverse the 31 .NESTLÉ CONFECTIONARY — INTERNSHIP REPORT NESTLE NIDO NESTLE NIDO has been present in the Pakistan market since early 70's and on account of the consumer confidence in its quality it has become a pillar of Nestle's success. NESTLE NIDO is well on its way to becoming a mega brand.

is locally repacked and marketed in 2gm. was launched in January 2000. Consumer response to the new initiative has been very positive. NESCAFE FROTHE NESCAFE Frothe (Original). creamy and foamy coffee. specially among the growing segment of nutrition conscious consumers. and25gm. bottles and 500gm. COFFEE NESCAFE CLASSIC NESCAFE. Popular with all age groups. Sachet. 75gm. a premix in 18gm. The product profile was developed through consumer research and was accordingly offered as a sweet. Encouraged by extremely good consumer response to this cappuccino style coffee. single serve sachet. it is an excellent substitute for cold drinks. Soft packs. MILO RTD (ready to drink) was launched in 1995 and is now available in an attractive 180ml slim pack. Nestlé’s international flagship brand.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT trend of consumer preference for imported MILO or similar products over local MILO. MILO RTD To cater for consumer convenience. French Vanilla and Mocha flavors were introduced in November to offer a wider choice and to enhance the young and fashionable image of this mixes category. NESCAFE FRAPPE 32 . The brand enjoys a special position in the country's coffee consuming segment.

its strength lies in the convenience attached to its usage. creamy.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT To promote summer consumption of coffee and to change consumer perception that coffee is only a winter beverage. FRUIT DRINKS FROST A well-known brand. This iced. This has further strengthened the position of Nestle as leader in the value added/premium drinks market. the category of NESTLE juices was expanded with the introduction of Mango-Orange and Mango flavors in the year 2000. DIETETIC & INFANT PRODUCTS LACTOGEN 33 . ready-to-drink coffee in180ml slim pack was positioned to appeal to the youth and gain a strong share from other summer beverages. Consumer to gain further. The launch was extensively supported by promotional programs in major towns and the product is fast gaining in popularity. Positioned as a cold drink and alternate to cola drinks. NESTLE JUICES Encouraged by the consumer response to NESTLE ORANGE JUICE that was launched in 1996. NESCAFE Frappe was launched in June 3000. FROST was introduced in 1986 and has the largest share of the countrywide market.

CERELAC Launched in 1989. It was launched in 1994. iron.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT LACTOGEN 1 and LACTOGEN 2 are infant and follow-up formulae launched in 1991 and are available in two sizes. 34 . NESTLE RICE offers the flexibility of preparation with a variety of meals. It was launched in 1997 and is available in packs of 125 and 250 gm. vitamins and essential minerals in order to cater to the nutritional needs of a growing child during this special age. NESTLE WHEAT NESTLE WHEAT is a wheat-based infant cereal without milk. Available in 5 flavors. Gluten free. NESTLE RICE An affordable starter weaning cereal. The brands provide both affordability and quality. packs and is specially suited to the needs of infants from 4 months onwards. The product was launched in 1994. calcium. formulated specially for 1 to 4 year olds. CERELAC is the dominant player in the growing infant cereal market. NESLAC NESLAC is a growing-up milk. It contains just the right balance of proteins. the brand is available in 125 gm. for infants of 4 months and above. the brand provides balanced nutrition to infants from 4 months onwards.

BRANCHES IN PAKISTAN Nestlé Pakistan has its branches in the following major cities of Pakistan: 35 . Affordably priced and backed by focused marketing activities. The innovative taste of Khatti Meethi together with the more traditional tastes of Ketchup and Mirch Maza.the first Imli sauce in Pakistan. are fun to eat and offer a range of interesting flavors.MAGGI 2-MINUTE NOODLES were launched with local production in 1992 and in doing so Nestle pioneered the category of instant noodles in Pakistan. Chilli and Chatkhara. MAGGI NOODLES have shown good progress in 2000. namely: Chicken. good to eat . were received well by the consumers. MAGGI 2-MINUTE NOODLES have special appeal for children. Masala. MAGGI COLD SAUCES Nestle entered the Cold Sauces' category in 1999 with the launch of MAGGI Ketchup.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT CULINARY PRODUCTS MAGGI 2-MINUTE NOODLES Fast to cook. MAGGI Mirch Maza and MAGGI Khatti Meethi .

The mechanics of generating profit are low-cost production and high-price sales. 36 . MARKETING DEPARTMENT The Marketing Department is responsible for all sort of activities including the promotion.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT  Lahore  Islamabad  Faisalabad  Sheikhupura (factory)  Karachi Nestlé is a customer and profit oriented organization rather than system and strategy oriented. CCST DEPARTMENT The CCST department is a supporting department for both Sales and Marketing departments. let us discuss each of the departments separately. advertising and tools used for generating demand. It provides a linkage to both departments by connecting them in case of any demand from other department. Nestlé has different division. There are four departments in the Nestlé confectionary that are as follows:  CCST Department  Marketing Department  Sales Department  Distributor Now.

The area managers administer these territories. To conduct the sales efficiently and effectively. upper Mall  Gulberg. This helps in creating competition among the territories Like some territories covers these areas respectively. Cavalary  Defense  Model Town. Garden Town. there are some territories that have been assigned some area of Lahore. Township. After a stall activity finishes. in a month 4-5 such stalls are managed. Johar Town. Monthly. Thus. These stall activities remain active for around 4-5 days.  Interior Lahore. SALES DEPARTMENT The Sales Department is responsible for carrying out the sales of Nestlé confectionary covering the whole of Lahore.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT The Marketing department is also responsible for arranging stalls and functions for the promotional and official reasons respectively. Cantt. These stalls are conducted in different public places so that more of the people become aware of the importance of products that ensure quality. the Area Sales Managers are assigned with the targets by the upper management. the person who conducted the stall activity has to report to their seniors about the response they received from the public and the number of new customers they have been able to attract during their stall activity. Rehmanpura and Thokar Niaz baig 37 .

They are:  Driver  DSR  Loader For carrying out the transaction easily. For example. The distributor has various responsibilities/duties that are as follows: 38 . in winters. All this data is stored in the system thus. keeping the system updated. the DSR are provided with a handbook. DISTRIBUTOR For carrying out the daily working. Everyday. When it is the end of the month. At the start of the month. the monsoon season affects the sales of the candies and chocolates. the Nestlé delivery van drop confectionary products. the target for the sale of the confectionary is set and all the distributions have to achieve that target by the end of the month that helps in increasing the productivity.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT These four territories are further covered with a total of 20 routes. The handbook keeps records of the data of the retailers. some internally hired or external sources are acting as a distributor for Nestlé in Lahore. each covering a specified area of Lahore on daily basis. There are three people who go for sales. the sales of Confectionary products are more as it is in summers. Also. all the distributions submit in their report to the Sales and Distribution Manager that contains the percentage of the target achieved including the quantity sold by each route. The sales target varies with the season.


   

Procurement of Vehicle. Installation of Hood on Distribution vehicles. Paint of Hood & its maintenance. Maintenance of vehicles in good condition.

 Short listing of DSR’s for hiring.  Supervise DSR orientation & Training.  Daily supervision of DSR performance.  Ensure DSR’s working as per company direction.

 Delivery at customer premises on schedule day & routing time.  Ensuring delivery on special request forwarded by customer

 Attending all delivery related complaints in time.

 Procure a warehouse as per Nestlé Standard.  Ensure all Nestlé Quality Standard (FIFO, NQS, and QSM etc).  Maintain a clean environment.  Minimize store losses.

 Maintain audited accounts of the business.  Provide in time reports to Nestlé Management. 39


 Make claims as per company guidelines & verify data.  Ensure efficient operation.

 Adhere & act on all policies/decisions by Nestlé Management.  Close liaison with Sales Management for Target Achievement.

STYLE OF WORKING Nestlé is profit and customer oriented organization rather than system and strategy oriented. The products are manufactured at low-cost and sales are made at high price. All the departments of Nestlé are related to each other along with their independent working. In order, to improve their working and their level of service they provide to their customer, weekly and monthly meetings are held. These meetings discuss the following things:  Performance level of employees  Progress at territory level and as a whole  Sales of the organization  Where an improvement is required The working/activities of division include the following features:  Selling through proper transportation  Area storming for creating awareness  Stall activities  Rewards offering scheme  Taking feedback from the customers


 Providing service for chiller maintenance and technical problems

This activities/working of the organization involve the basic principles of marketing, client service, public relation, planning, organizing, leadership and communication whose brief description are as follows: The basic principle of Nestlé in marketing is to provide its customers with quality product at reasonable price. For communication at national and international level there are various ways to communicate that are as follows: Universal and direct telephone lines  Fax  Email  Letters


NESTLÉ CONFECTIONARY — INTERNSHIP REPORT ORGANIZATION STRUCTURE National Sales Manager Zonal Sales Manager Regional Sales Manager Customer Service Manager Area Managers System Support Executive Event Management Customer Service Officers Territory managers System Support Officers Sales Associates Event Management Chiller Technician DSR Officers 42 .

strategies adopted by Nestlé that have proved fruitful are as follows:  Consumer communication  Product availability and development CONSUMER COMMUNICATION With the help of electronic media. PRODUCT AVAILABILITY From time to time activities such as area storming. banners. brochures. handouts and by the stall activity of marketing department.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT Loaders MAIN STRATEGY OF NESTLE CONFECTIONARY Every organization has forms some strategy to follow. advertisements boards. 43 . Therefore. pamphlets. taste of the customer is developed and awareness is brought among people about the healthy living that can be achieved by healthy and delightful eating. making the distribution equally available everywhere. Thus. discovering new places or areas are being done. advertising on newspapers.

The competitors that Nestlé confectionary in Pakistan are as follows:  Cadbury  IBL  Mitchell’s  Candy land Even though there are competitors in the market but still Nestlé confectionary does not face a very tough competition.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT COMPETITORS OF NESTLE CONFECTIONARY Every organization or we can say that every business run by any company faces competition in a competitive market. There has been great competition faced by Nestlé confectionary as local companies try to compete with the multinational brand. 44 . Now lets see the competitors of one of the brands of Nestlé that is Nestlé confectionary in a local market. It has competitors in a global market and in a local market. Nestlé is a multinational company.

 Loyalty from customers is also the major strength for the company.  Company has the ability to compete in a dynamic environment.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT SWOT ANALYSIS OF NESTLE CONFECTIONARY STRENGHTS The strengths of Nestlé confectionary products including Kit Kat. Polo & Fox are as follows:  Company’s name Nestlé” signifies the quality image high standard and quality product. which strengthens its image.  Employees are also loyal due to the decentralized culture of company.  Being a multinational company it has the capability to attract more customer than the local companies.  The strength of Nestlé confectionary is its imported chocolates and candies.  They need to improve the facilities like chillers.  People trust on products due to the proper health and safety measures. WEAKNESSES The weaknesses are as follows:  There is not much margins for retailers to prefer it’s sales.  Company always adapts the new technology. 45 .

 They have the opportunity to offer snacks.  They can provide incentives to retailers to increase sales volume.  They can also capture the market of home appliances.  As compared to the local competitors. advertisement of confectionary products is not so better. 46 .  Company can enter in ice cream products.  Company mostly advertises its milk products. THREATS  Existing companies are increasing their product lines that can prove to be a threat in the coming years.  Company can open separate stores to eliminate retailers.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT  The distribution cost is high as compared to the competition in the local market. OPPORTUNITIES  They have an opportunity to expand or capture the market by adding its product line. our distributor cost is very high. they have created an opportunity for themselves by introducing chillers in the market.  Company like Cadbury is giving more discounts to retailers as compared to distributors due to which retailers prefer its products for sale.  Company is trying to open stores in universities.  Recently. As Nestlé confectionary Products has to maintain and obey the Nestlé standards.  Some companies are competing on the basis of cost.


CASH COWS The cash cows are their baby food items i. Nestle beverages i. Low 48 . because with the high quality and new designs which comes every now and then makes them more popular among the customers. because customer with upper class wants the quality and nestle offers the best quality food items. Company has to take measures to make these products as stars. nestle cerelace and other baby food products.e.e.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT BCG MATRIX Relative Market Growth Star Question Marks Cash Cows Dogs High STARS The stars are the high relative market share and high market growth. are somewhat the stars in their business.

COMPETITIVE EDGE OF NESTLE The companies all over the world get some competitive edge based on some features which other companies don’t have. QUESTION MARKS The question marks are the breakfast cereals. The company has to think on what it can do by improving the low share and growth market. as the Dell has the competitive edge over other computer manufacturer companies. They have high market growth but low market share. The company has to decide about which question mark they should try to build into the stars and which one of these should be phased out.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT DOGS The pharmaceutical products are nestle Dog. COMPETITIVE STRATEGY “WHAT MAKES COMPETITIVE” The hallmark of the nestle′ is the quality of the products which the company offers. For example. because they use Built-to-order Strategy while no other company in computer 49 . because it has lowshare business with low growth market especially when we talk about Pakistani market.

Similarly in Pakistan nestle has their Competitive edge based on these Strategies:  Product Differentiation  Customer Oriented PRODUCT DIFFERENTIATION STRATEGY Nestle is using the product differentiation strategy by providing the superior quality products. They bought shelve space in different departmental stores to attract the customers. Products are also verified by health and safety measures and international quality standards. 50 .NESTLÉ CONFECTIONARY — INTERNSHIP REPORT industry use this strategy. CUSTOMER ORIENTED Customer satisfaction is the focal point for the company. They tried to reach each group of people in which they have succeeded. They provide hygienic products to their customers. Their main focus is to keep the customers loyal.

The labeling. 4. Second part of labeling includes the quantity of product in grams along with ingredients and contents of chocolates and candies. 51 .NESTLÉ CONFECTIONARY — INTERNSHIP REPORT MARKETING MIX Marketing Mix is defined as a set of controllable tactical marketing tools that firm blends to produce the response it wants in the target market. The many possibilities can be collected into four groups of variables known as the four P's that are as follows: 1. packaging of the Kit Kat and Polo includes the Nestlé brand and logo. The marketing mix consists of every thing the firm can do to influence the demand for its products. 2. The packaging includes an expiry date and time along with a manufacture date. Nestlé kit Kat is in four sizes including K. The shape and the color of the Kit Kat and Polo are quite attractive for the customers. while Polo is in three sizes. 3.K Chunky. Product Price Place Promotion 1-PRODUCT Product stands for goods and services that the company offers to target market.

demands for personal and non-personal communication with the target customer to build a relationship with them. The price of Nestlé Kit Kat and Polo varies increases with the increase in its size. 3. assuring customer satisfaction. kites depending on the season (for existing and potential customers) are given. gift hampers.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT 2. The basic purpose is to explore the area that is being unexposed and to bring awareness in the people. pricing it attractively and making it available for the target consumer is not the only problem companies need to solve. Nestlé' distribution is using the direct distribution channel to supply confectionary products weekly to the retailers. In an area-storming activity. Modern era is the era of communication with customer. 4. or sums of the values that consumers exchange for the benefits of having or using the product or services.PLACING Placing stands for company's activities that make the product available to the target consumer.PROMOTION Producing a quality product. 52 . giving out products free.PRICE The amount of money charged for a product or service. attracts new customers.

for this reason Nestlé conducts training program every month to train its DSR in various areas because DSR are the delivery person and it is they who through their behavior and appearance develop the image of their company.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT TRAINING PROGRAM The training programs are conducted time to time according to the need of the organization. The training programs are conducted every month whereas the training programs for the employees are conducted from time to time according to the standard of the company. The training program for the DSR emphasize on the following features:  How to behave when they are dealing with the customers  What is expected from them  What are there duties  How to handle the situation if any problem arises. They made cross functional teams for training and the development of their employees. They are also providing technical training to their employees. there are different training programs held for the employees.  How to dress themselves  How to handle the retailer 53 . Thus. Thus. TRAINING PROGRAM FOR DSR An organization conducts a training program to provide better service to its customer.

and efficiently. the employees are given a chance to visit the Institute of Sales & Marketing in Lahore for one day training. They send their efficient workers and employees abroad for the improvement in their career. These training programs are offered to the employees once in a year to keep up the new building standards of the organization and to make them competitive. CAREER DEVELOPMENT Nestlé does give their employees a chance to discuss their career development for future accomplishments. which gives them chances to improve themselves where they lack and to handle the situation more confidently. They also conduct workshops and seminars for this purpose. This betterment in their performance enable them attain promotion for themselves which gives them more experience and motivates them to do well in future and develops their career as they go along.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT  Their personal attire TRAINING PROGRAMS FOR THE EMPLOYEES The training program for the employees involves different programs. they tend to learn new things and therefore show improvement in their performance. When employees are given specific training program. COMPENSATION SYSTEM 54 . According to the need.

55 . They have developed the performance appraisal system. They offer incentive pay and special bonuses to employees. They also provide disability benefits to their employees.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT Nestle has established a separate compensation department for its employees. Company has hired human resource professionals to develop a competitive compensation system.

EVER READY FOR CHALLENGES 56 . that is why nestle is achieving its target quite efficiently. During the internship I realized following duties.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT WHAT I HAVE LEARNED AT INTERNSHIP PERSONAL LEARNING Personal learning is a moral and ethical obligation set by a person to move in a mellow way to excel in present and future. • Cohesiveness • Ever Ready For Challenges • Broad vision • Learning From Cradle To Grave • Always Create Opportunities • Open Communication With The Boss • Appearance COHESIVENESS A team player can achieve more than an individual. During my internship I noticed that the degree of cohesiveness among the nestle employees is high. Good coordination and cooperation with peers and other staff members can impulse a person to perform better in difficult situations.

BROAD VISION “THINK BIG” Think positively to avoid any kind of discrepancy and hurdle in your task. Positive thinking and broad vision helps you to achieve some thing different and new. OPEN COMMUNICATION WITH YOUR BOSS 57 . success is yours. ALWAYS CREATE OPPORTUNITIES “Don’t wait for opportunities always create opportunities” “Time & Tide Waite for None” If you are able to create opportunities. he can grow especially in marketing field where every thing is presently dynamic . Sales department offers many new courses to the employees to upgrade their knowledge. by generating new and useful ideas for the organization. LEARNING FORM CRADLE TO GRAVE Latest researches and journals can be very helpful in order to generate new ideas. Now the question is how? The answer is very simple.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT If a person can handle problems and challenge adequately. At nestle.

communicate freely with him.  They should introduce creativity into the work. APPEARANCE “Treat your self as a product” Attractive appearance can be very useful to impress others. “People don’t leave the organizations they leave their bosses” So be friendly with your staff and boss and communicate freely to avoid organizational switching. RECOMMENDATION There are few recommendations that are recommended if the project is to be conducted again in future.  Employees should be trained according to the changing standards of the organization. so that the employees can do their work active mindedly. 58 .NESTLÉ CONFECTIONARY — INTERNSHIP REPORT To avoid any kind of misunderstanding with your boss. During my internship I analyzed that. A professional should be dressed up properly to influence others.  Company should conduct survey from time to time to according to which changes can be introduced in the organization to stay updated in the market.

NESTLÉ CONFECTIONARY — INTERNSHIP REPORT  Employees should be given compensation in order to keep them loyal.  Employees should be more involved in decision making to become more differentiated. THANK YOU 59 .  Company should provide incentives to shop keepers.

nestle.  www.NESTLÉ CONFECTIONARY — INTERNSHIP REPORT REFERENCES I have collected all the data from the following  By communicating with the employees 60 .


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