Professional Documents
Culture Documents
DEPARTMENT: BBA
SECTION: B
SEMESTER: 2th
1. Objective
Nestlé Pakistan introduction
Nestlé Pakistan Ltd It is a food processing company, registered on the Karachi
and Lahore stock exchanges and operating in Pakistan since 1988 under a joint
venture with Milk Pak ltd and took over management in 1992.
Marketing concept of Nestlé?
Nestle benefits from its large product line by employing a product mix strategy. It
often releases buy-one-get-one price promotions, special offers, discounts, deals,
and giveaways. Bundle deals are perfect for introducing a product or marketing
unpopular items.
Quality Passion for the best consumer experience Quality and food safety are the
cornerstones of Nestlé’s Corporate Business Principles. We strive for the best consumer
experience. Value chain activities are designed focusing on this vision.
To be a leading, competitive, Nutrition, Health and Wellness Company delivering
improved shareholder value by being a preferred corporate citizen, preferred employer,
preferred supplier selling preferred products.
Nestle Pakistan uses Discount and Allowance pricing strategy as a price adjustment
strategy by giving discounts to retailers and customer on bulk buying and for promoting
the product by retailers and supermarkets.
Nestle benefits from its large product line by employing a product mix strategy. It often
releases buy-one-get-one price promotions, special offers, discounts, deals, and
giveaways. Bundle deals are perfect for introducing a product or marketing unpopular
items.
he company is continually seeking new and innovative ways to improve its products and
processes, and has a culture of experimentation and risk-taking. This focus on innovation
helps Nestle to stay ahead of its competitors and to anticipate and meet changing
consumer preference
2. Goal
Mission and vision
Your mission statement is what your company is doing right now, while your vision
statement is what you hope to achieve in the future
Our mission of "Good Food, Good Life" is to provide consumers with the best tasting,
most nutritious choices in a wide range of food and beverage categories and eating
occasions, from morning to night.
Nestlé Pakistan reported its full year results for 2022, recording an increase of 21.9% in
its revenue as compared to the same period last year
These financial statements have been prepared in accordance with approved accounting
standards as applicable in Pakistan. Approved accounting standards comprise of such
International Financial Reporting Standards
Nestlé Pakistan is committed to enhancing it's product base by diversifying into low cost
high quality products with good financial returns, that we call “Popularly Positioned
Products (PPP)”, which focuses on creating products that are both highly nutritious and
affordable on a daily basis for lower income consumers
Our approach is holistic and interconnected, built on our commitment to achieving net
zero greenhouse gas emissions by 2050 at the latest, while putting people at the center of
everything we do.
2. Outcomes:
Financial information can be found on the company's web page in Investor
Relations where Securities and Exchange Commission (SEC) and other company
reports are often kept.
Financial status of Nestle
Winning with Shoppers There was a strong focus on creating better and bolder engaging
shopper activations and strong visibility in trade. Highlights of the year were our shopper centric
in-store executions, town storming in 100 locations across the country, a complete 360-degree
activation tourist engagement drive during the summer in northern Pakistan and participation in
over 100 Ramadan Bazars to leverage high consumption moments. Best in class execution of
consumer promotions and multiple new launches were carried out across channels to engage
with shoppers and improve purchase consideration at trade level. All priority channels as a result,
such as Pharmacies, continued their strong growth trajectory.
Winning with Customers The expansion of international and local modern trade continued in
2022 with customers expanding their reach to new geographical locations, introducing new store
formats. This provided Nestlé with an excellent opportunity to collaborate with these customers
to drive strong shopper-centric activities while creating winning long-term partnerships.
Week 1: Company Selection and Data Collection:
Income statement
Balance sheets
ASSETS
Non-current assets
Property, plant and equipment 29,386,433 29,274,553 28,679,851
49,629,781/51,443,500 = 0.96
Interpretation
The gross profit less then total net assets so that company position is well good.
2. liquidity ratios,: Quick asset / current liabilities
51,443,500/613,100 43,=83.90
Interpretation: the quick assets then then current liability so that company position is normal
2,282,490/ 32 631,543=0.069
Interpretation
The non-interest expense less than net interest income that position of company are good.
SWOT analysis is one of the essential marketing analysis tools. It is employed to understand a
company’s position in the external environment and its inner capabilities. I will be taking you
through the detailed SWOT analysis of Nestle, which will tell us why is Nestle so successful.
With the help of the SWOT matrix, we will try to understand the rationale behind their strategic
decisions. Let us first revise our concepts on SWOT analysis.
Every major strategic decision is made after accessing one’s capabilities and position in the
environment where the decision will have a significant impact. The assessment helps one to
make an informed decision and be better prepared for any contingencies.
Identify the company's strengths, weaknesses, opportunities, and threats based on the
financial analysis.
Here is a glance of some of the strengths, weakness, opportunities and threats of the Nestle
Company.
We can get a clear picture of what is the SWOT analysis of Nestle company and how they use it
to make major strategic decisions. We will be taking a few examples here as well.
Strengths of Nestle
Nestle’s continuous presence over the years is attributable to numerous internal factors. These
factors form the strengths of the Nestle group, and here I will be taking you through what are the
strengths of Nestle briefly:
Global Presence: Nestle’s active presence in 187 countries is advantageous to its undivided
growth. The presence in some countries is over 150 years, establishing the brand in the local
environment. This means that their product is available to the people in these many countries,
and it creates a long-lasting impact on people as well.
Increasing Cash flows: Nestle cash flows increased by 10.9% to CHF 11.9 billion in 2019.
This means that the group’s finances are healthy and they can invest more money and can
expand quickly.
Strong Supply Chain operations: The nestle group encourages innovations at the local
levels, incorporates technology and is increasing the traceability of the sources of the raw
materials of its products. This enables the group to achieve substantial operational
efficiencies.
Fast Innovation: Application of science across all platforms and innovating through
collaboration with the local players allows Nestle to innovate faster and according to local
demands. For example, in 2019, Nestle could achieve shortened timelines of science into
technology on average by 30% and saw additional 50 fast-tracked projects which will launch
within 6 to 12 months.
Digital Transformation: Nestlé’s investment in digital transformation across fields like
marketing, social media, e-commerce, manufacturing and supply chain has helped them
become data-driven. This enables them to personalize their consumer’s needs and achieve
higher satisfaction. In 2019 Nestle has transformed 70 ecosystems by the help of artificial
intelligence and personalized 20% of their consumer’s contacts.
Weaknesses of Nestle
Nestle core competencies lie in its strengths, but the global giant also faces numerous internal
weaknesses. Here, we can easily understand what are the weaknesses of Nestle:
Problems in product marketing: Nestle has time and again faced a massive backlash from
people across the globe for not correctly positioning and marketing their products. One classic
example is the marketing of breastfeeding baby formula to people in poorer nations.
Uneducated mothers were using the product with contaminated water, causing high cases of
sickness from the same.
Organizational Structure: Nestle’s current organizational structure is divided based on its
product portfolio and not based on its geographical operations. This creates vast power
distance when it comes to decision making and prevents agility in operations. In expanding its
operations, this always proves to be a major hurdle.
High dependence on advertising: Nestle is majorly dependent on advertising to promote its
products; it increases the marketing costs and consequently, a high risk associated with the
returns. With disruptions coming up, this strategy will not sustain Nestle in the long run.
Opportunities of Nestle
The dynamic environment is now more connected than ever. It provides numerous opportunities
for the group to thrive and grow. I have listed some of them for your understanding:
Increasing Transparency: The present consumer holds more information than ever. With
the growing presence on the internet, it will be favorable to increase transparency. Increasing
transparency would mean that consumer knows where the raw materials are sourced from,
when they are sourced and who sourced them. The consumer feels more connected and is
trusting the brand more.
Sustainability: Integration and operating sustainably will help the group to reduce costs,
increase efficiency and utilize labor properly. Local integration and production will make
operations lean, which will reduce long term expenses.
Increasing disposable Income: Increase in the average household income in Asia, Oceania
and Sub-Saharan regions is an excellent opportunity for Nestle to expand its operations.
Introduction of new or existing products can be taken up to increase its product portfolio and
hence, increased presence and profits.
Diversifying its product portfolios: Nestle has a great opportunity in introducing products
into sectors other than food and beverages. Merging through strategic alliances can help
Nestle to diversify and tap into markets other than food and beverages. For example, the
technology industry is slated to grow at a rate of 5% CAGR in 2024.
Identify potential investment opportunities and risks within the industry
Risk Analysis of Nestle
Nestle S.A. shows a Risk Score of 9.00. The Risk Score for Nestle S.A. is significantly higher
than its peer group's. This means that Nestle S.A. is significantly less risky than its peer group
Justify your investment strategy with supporting evidence and reasoning
The company is continually seeking new and innovative ways to improve its products
and processes, and has a culture of experimentation and risk-taking. This focus on
innovation helps Nestle to stay ahead of its competitors and to anticipate and meet
changing consumer preferences.
Justify your investment strategy with supporting evidence and reasoning.
Strategy
;Nestle Pakistan uses Discount and Allowance pricing strategy as a price adjustment strategy
by giving discounts to retailers and customer on bulk buying and for promoting the product by
retailers and supermarkets.
Reasoning:
Nestlé Pakistan, have strived to bring high quality products that have won the hearts of all
Pakistanis. Our bedrock values of respect, trust, integrity and teamwork have helped us
become the premier Nutrition, Health and Wellness Company.
Week 3: Business Plan Development
Importance of Business Plan
Clarifying Your Vision and Strategy: A business plan helps you define your company’s vision,
mission, and values, and outlines the strategies you’ll use to achieve your goals. By clarifying
your vision and strategy, you’ll be better positioned to make informed decisions about your
business and stay on track for success.
Identifying Opportunities and Risks: A business plan should include a thorough analysis of
your industry, competitors, and market trends. This analysis can help you identify potential
opportunities for growth and innovation, as well as potential risks and challenges that you’ll need
to navigate.
Attracting Investors and Financing: If you’re looking to secure funding or attract investors, a
solid business plan is essential. Potential investors will want to see that you have a well-defined
strategy, a clear understanding of your market, and realistic financial projections.
Guiding Your Operations and Decision-Making: A business plan serves as a roadmap for
your company, outlining your goals, strategies, and operations. By following your plan and
regularly revisiting and updating it as needed, you’ll be better positioned to make informed
decisions that support your long-term success.
Measuring Your Progress and Performance: Finally, a business plan provides a benchmark
for measuring your progress and performance over time. By regularly tracking your results and
comparing them to your original projections, you’ll be better positioned to identify areas where
you need to make adjustments and capitalize on areas of strength.
Business plan :
Nestle Pakistan's management has planned to invest an amount of Rs. 3.4 billion
in Pakistan to scale up its operations and business in 2021.
Source: Nestle.com
Threats to Nestle
The same dynamic environment provides numerous threats owing to its ever-changing
environment. Frequent disruptions, emerging technology and continuous innovations drive the
changes. Nestle, to sustain has to focus on these parameters to grow continuously:
Climate Impact: Changes in the climate and its subsequent impact can be seen on numerous
Nestle products’ raw materials. Raw materials like coffee, wheat and dairy are affected by
climate change. They are highly likely to affect Nestlé’s growth over a while.
Strategic Investment choices: Investment choice’s failure to align with such a diverse
product run group is exceptionally high. The group runs a higher risk of losing brand presence
and a potential sum of money.
Product Quality and Safety: Nestle, in the past, faced much negative effect on its reputation
and consumer trust after non-compliance of food safety. The best example is of Maggi in
India, which failed to comply with one of the laboratory tests and lost a massive share in the
market.
Rising Competition: Nestlé’s product portfolio competes with various multi-national players
and numerous local players. With the advent of more technology and constant disruptions in
the industry, nestle is always at a risk of losing its existing consumer base.
1. Include the following components in the business plan:
1. Nutrition, Health and Wellness ·
2. Quality Assurance and product safety ·
3. Consumer Communication ·
4. Human rights
2. Company Description
Nestlé Pakistan, have strived to bring high quality products that have won the hearts of all
Pakistanis. Our bedrock values of.
segmentation variables refer to the factors marketers use to categorize their audience into
different groups.
The 4 main types of segmentation variables include demographic, geographic, psychographic,
and behavioral traits. For example, if you were to segment your audience based on their zip code,
you would be using the geographic variable.
In order to create an effective marketing strategy, it’s important to segment your audience. Not
only does segmentation ensure your target audience receives the most relevant content, but it
also increases the likelihood of success. Plus, splitting your customer base into various groups
allows you to use your resources more wisely.
If you’re interested in learning more about marketing segmentation variables, read on. We’ll
cover what they are and how you can use them in your organization to create more targeted
campaigns.
Nestle Pakistan Ltd (Nestle Pakistan), a subsidiary of Nestle SA, is a manufacturer and
exporter of food products and non-alcoholic beverages. The company's products portfolio
comprises milk, cream, coffee, juice, yogurt, ready-to-drink tea, baby food, instant drinks and
bottled water.
5. Marketing and Sales Strategy
Nestle's decision to expand its business in rural India is a strategic move to tap into the fast-
changing consumption patterns of customers in these areas. With a focus on providing tailor-
made products in various packages, Nestle aims to reach 120,000 villages with a population
of over 5,000.
6. Operations and Management Plan.
Based on science and Research and Development, the Company permanently innovate its
portfolio of food and beverages. The aim of the Company is to build strong ..
7. Financial Projections and Budgeting
Nestle S.A. shows a Risk Score of 9.00. The Risk Score for Nestle S.A. is significantly higher
than its peer group's. This means that Nestle S.A. is significantly less risky than its peer group.
The Risk Score is a relevant measure for the assessment of a stock attractiveness. Nestle
Pakistan Ltd. shows a Risk Score of N/A.
0 corresponds to a very high risk and 10 corresponds to a very low risk."
The Risk Score for Nestle Pakistan Ltd. is lower than its peer group's. This means that
Nestle Pakistan Ltd. is more risky than its peer group..
8. What is the strategic plan of Nestlé?
We have long believed that our company can only be successful in the long term by creating
value for both our shareholders and society. We create value through a persistent focus on
consumers, operational agility and executional excellence.
Report summarizing
Nestlé Pakistan is proud of its commitment to excellence in product safety and quality and to
providing value and aims to be the leading Nutrition, Health and Wellness Company. As a
socially responsible corporate, we always focus on environment friendly operations, ethical
business practices and our responsibility towards the communities.
Nestlé in Pakistan is operating since 1988 under a joint venture with Milk Pak ltd and took over
management in 1992.
The company’s strategy is guided by Nestlé’s Corporate Business Principles which are in line
with internationally accepted best practices and ethical performance culture. Nestlé’s existing
products grow through innovation and renovation while maintaining a balance in geographic
activities and product lines. Long-term potential is never sacrificed for short-term performance.
The Company’s priority is to bring the best and most relevant products to people, wherever they
are, whatever their needs are, and for all age groups. Nestlé 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. Nestlé Pakistan also prides
itself in being the leaders in Nutrition, Health & Wellness. Ever since 1867, when Henri Nestlé
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.
Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers
of the Company’s image, and we continue to enhance the quality of life of Pakistanis.
RECOMMENDATION
For a company that will turn one hundred in a decade, Nestle has almost tried all of the strategies
there can be. Nestle company has expanded internationally, helped countries’ economies grow,
be environmentally conscious and create joint ventures with other companies in which enhanced
Nestlé’s and these companies’ performance positively. Followed are a couple of
recommendations in which might enhance their performance which are:
Avoid actions that are bound to fail Even though there is no way that someone
can know the future, but a good management team should be able to extrapolate if
a plan they have might back fire such as the scandalous event resulting from their
oil practices, for cosmetics, activities mentioned earlier. They should’ve expected
that dealing with such activities might result in leakage and that they should’ve
taken precautions before head.
• Invest on R&D Nestle should concentrate on that in order to come up with new
products. Since the company started out to serve infants in need for nutrition,
Nestle should enhance and find way to enrich their product with substances and
vitamins that will provide children their daily needs of calcium and even mothers.
Because they should start from mothers’ health in order to provide infants’ health.
Especially now when children suffer diabetes amongst other things, they need
more care than before.
THE END