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Nestle’s
This document provides information about Nestle Pakistan including: - It was founded in Switzerland in 1867 and merged with other companies to become the world's leading food company. - It offers milk products, foods, beverages, healthcare and nutrition products in Pakistan. - Its mission is to provide the best food to improve lives and its vision is to develop nutritious products through research. - It uses marketing strategies like advertising, pricing, placement and promotion to target various customer segments. - A SWOT analysis identifies strengths like its brand but also threats like economic conditions and new competition.
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Nestle’s
- 3. Group Members i. Samiur Rahman (Group leader) 52 ii. Haider Khan 72 iii. Rameez 16 iv. Kalsoom 42
- 4. Table of contents Introduction Companybrands Mission and vision statement 4P’s SWOT Analysis Customer driven strategies BCG Matrix Conclusion and Recomondation
- 5. INTRODUCTION Founded in1867 in switzerland by Henri Nestle’s (pharmasist) Developed a food for babies (save the child life’s) In 1950 Nestle’s merged with Anglo-swiss condensed milk company, which was opreating in US,Bartain,Germany & Spain Today, Nestle is the world leading Food Company Head quater in Switizerland, opreating companies in America, Africa, Asia, Oceania In 1988 Milkpak in Pakistan, merged with milk company in shikarpura, in same year ,lunched FROST juice Switzerland. It is a foodprocessing company, registered on the Karachi and Lahorestock exchanges. One factory in Islamabad and 2in Karachi produce bottled water.
- 6. COMPANY OFFERING Milkproducts Nestle Milkpak UHT Milk Milk pak Butter Milk pak cream Milk desi Ghee Foods products Baby foods Botteled water Cereals Ice cream Drinks Health care nutrition
- 7. Mission and Visionstatements Mission Nestle mission is to provide the best food to people throughout the world. Vision “At Nestle, we believe that research can help us to make better food, so that people live a better life.” Meet the nutrition needs of consumers of all ages Nestle pak ltd envision the company to develop an extreamly motivated and professionally trained workforce
- 8. Nestle’s 4P’s Product Productis something that is offered to the market. Nestle safe, pure, refreshing and healthy water is the product of Nestle. recently it has offered a 0.25 liter bottle of NPL in the market Nestle people say: “Quality is our more successful product and it is key to our success today and tomorrow.”
- 9. Place Placement isthe distribution of the product to its customers at right time, in right quantity, at right price and at right place. To ensure this, channel adopted by the Nestlé for distribution of NPL is as follows: according to distribution, pakistan is divided into three geographical zones and then in further regional offices: North zone: islamabad and north outstations, peshawer, jehlam Central zone: lahore, faisalabad, gujranwalw, multan, sahiwal South zone: karachi, hyderabad, quetta, sukker
- 10. Price Non-price competition:In Price strategy, Nestle has adopted the strategy of non-price competition It is offering one price for NPL to all cities of Pakistan It also keeps the check on distributors to maintain single price of NPL. It offers trade discounts to its distributors Nestle profit earning is main objective, but their profit margin is low Price= cost+profit Geographical pricing strategy Zone pricing
- 11. Promotion Advertisement isa tool to introduce the product in the market nestle pure life is concerned company use Telivision, Radio, Newspaper, Bill board To increase sales and gain profit the company has to provide proper sulppy of product in the market In stores and shops the pure life water is so placed that it is visible for the customers Personal selling: In june, july and August 1999 in lahore, A team of vendors, wearing T-shirts, caps and jackets with 0.5 L Public relations: organisation release annual reports, include financial statements aimed to stockholders, however public relation
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- 13. SWOT Analysis strengths Sociallyresponsible company NML’s products enjoy strong brand image and market pull Growing slaes and profits Major shareholders in the food industry of pakistan Aggressive marketing Efficient distribution network throughout the contry Quality products Solid financial position Strong supply chain network Qualified work force Commitment to high quality products Focus on research and development
- 14. Weaknesses Selective investmentdue to uncertain economic and political condition Feasibility of new products needs to be analysed e.g Nestea was lunched some years back but it failed because no customer demand for it esxisted. Lack of awarness among the target market. Its dependency on others (govt & sponsors) for the arrangement of events. The trarget market of nestle is upper middle and high class because lower middle and poor class cannot affort to buy UHT milk duce to its premimun price.
- 15. Oppurtunities Pakistan isthe seventh largest producer of milk in the world with annual output of over 22 billion liters. The overall milk market in pakistan is 20 billion liters, out of which processed milk business contribute only 2% to this large market. Neastle milkpak has eexpanded its product range by entring the cold dairy market recently by lunching Nestle plain youghurt and now fruit youghurt is also added it. Credit policy can be adopted to increase sales.
- 16. Threats Price fluctionsdue to rupee devaluation as raw material are imported. The uncertainity of economic conditions posses a great threat as the major funds invested in the contry come from outside pakitan. The present economic crisis in the world, led to the withdrawl of forigen management from the company and the investment has come to a halt. Legal and ethical issues. Market segment growth could attract new entrants.
- 17. (cont) Economic slodowncan reduce demand. Inflation is getting higher and higher so the purchasing power of the people is decreasing day by day. Olpers and Haleeb growing day by day
- 18. CUSTOMER DRIVEN STRATEGY There isno age, sex, income and other kind of li,itations on use of NPL howevere Nestle’s customer driven stratigies are Geographic segmentation Region: middle east, china, India, Canada, Mexico, W.Europe, North America Contry: Provinvial capital then north, west, east and south aeras DEMOGRAPHICAL Age Under: 6; 6-11; 12-19; 20,34; 34-49; 49-64; Over 64 Family Size :1-2; 3-4; 5-6; 7 and Over Income Annual
- 19. (Cont) Under 12,000;12,000-20,000; 20,000-35,000; 60,000-100,000; 100,000-400,000; & over then 400,000 Occupation :Professional and Technical, Managers, Officials and Proprietors, Clerical staff, Crafts People, Foremen, Farmers and Students Education: Uneducated, School Going, College Going, University Students and Doctors. Religion: Muslim, Hindu, Jewish, Catholic and others
- 20. Market targeting and positioning After segmentation Nestle’s decide to target some of the selected markets Positioning: some competitive advantages are follows Nestle pure life is only pure water in market, their compititers are using mineral water, have chemicals Pure life use nestle brand name and logo of nestle pure life, care to consumer, enough to attract the customer Due to its brand name it is very easy to comunicate.
- 21. BCG Matrix QUESTION MARK NestleNoodles DOGs Pharmaceutical products, yoghurt STAR Nestle pure water CASH COW Milk pak/baby foods
- 22. BCG in Graphs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% stars (water) cashcow (lactogen) question mark noodels) dog ( pharma) Market growth Market share
- 23. Conclusion Nestle isa market leader due to different reasons. Its price is high against its competitors but it matches its quality with its competitors. Nestle is using its brand name to promote its products and it is very popular as compare to its competitors. Its packiging is good. We can easily find nestle from any retiler shop. Due to advertisement, nestle attract more customers It has always maintained the quality of its products.
- 24. (Cont) Despite ofall the facts, there need to maintain the condition of office and enhance the security. Behaviours of employees is not professional and every department should treat equality.
- 25. Recomondations They shouldincrease their prduct quality as now a days they are facing problem of impurity of their products. They have to improve the markting strategies. So that they can hold on markert and improve their sales. Nestle must state in writing that it accept that the international code and the subsequent revelent world health assembly resolution are minimum requirements for every contry. Nestle must state in writing that it will make required change to bring its baby foods.
- 26. (cont) Marketing policesand practices into line with national code and resolutions. They should improve thier customer retention. They should improve their customer services. They should try to exploit the loopholes of their competitors products. Long term agreements to be signed with governamental departments.
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- 28. Thank you Prepared by Samiur rahman MBA-2nd (Abdul wali khan university mardan)