“In the Name of

Allah the All

Merciful, the Most
Merciful.”

Acknowledgment:
We are very grateful to
many people for their help
and encouragement during
the project & writing of this
report. We especially want
to thank Sir M.Mubashir

Good Food, Good Life

Hussain A ‘wan for giving us
& helping us in this project.

TABLE OF
CONTENTS:
❖ MISSION STATEMENT

❖ STORY OF NESTLE

❖ DYNAMIC EXPANSION

❖ BRANDS OF NESTLE

❖ BOARD OF DIRECTORS

❖ AUDIT COMMITTEE

Good Food, Good

 ❖ NESTLE’S OBJECTIVES

❖ MARKETING AND SALES

❖ MARKET POSITION

❖ NESTLE EVERYDAY

❖ RESEARCH AND DEVELOPMENT

❖ MARKETING MIX

❖ PROBLEMS FACED BY NESTLE

❖ RECOMMENDATIONS

❖ SWOT ANALYSIS

❖ FUTURE OF NESTLE

NESTLE STORY:
Nestle Pakistan is a subsidiary of nestle S.A a company of
Swiss origin headquartered in Vevey, Switzerland. It is a food
processing company, registered on the Karachi and Lahore
stock exchanges. For 5 years in a row, the company has won

Good Food, Good

 a place among the top 25 companies of the Karachi stock
exchange.

Headquartered in Lahore the company operates 5 production

facilities. Two of its factories in Sheikhupura and Kabirwala
are multi products factories. One factory in Islamabad and 2
in Karachi produce bottled water. Through its effective
marketing and vast sales and distribution network
throughout the country, it ensures that its products are
made available to consumers whenever, wherever and
however.

In the line with Nestlé’s global philosophy, Nestle Pakistan is

proud of its commitment to excellence in product and safety
and quality and providing value and services to its
consumers. On the social front it is very responsible when it
comes to environmentally sound business practices and
corporate social responsibility.
Nestle Pakistan operates in many ways but people products
and brands are the main flag bearers of the company’s
image.

INTRODUCTION TO
NESTLE:
Today, Nestle is the world leading Food Company.
Nestle headquarters is in Switzerland. Its international R&D
network supports the products made in more than 500
factories in 86 countries. The Nestle factories are operating
in the region of:

1. Africa

Good Food, Good

 2. America
3. Asia
4. Europe
5. Oceania

Being a company dedicated to food from the

beginning, Nestle remains sensitive to culinary and eating
habits, and responds to specific nutritional problems, whilst
also setting and matching new trends such as growing
out- of-home consumption and caring about the well being
of its consumers.

MEANING OF NESTLE:
Henri Nestlé endowed his company with the symbol derived
from his name. His family coat of arms, the nest with a
mother bird protecting her young, became the Company's
logo and a symbol of the Company's care and attitude to
life-long nutrition. The Nestlé nest represents the
nourishment, security and sense of family that are so
essential to life.

HISTORY OF NESTLE:
1866 -1905

In the 1860s Henri Nestlé, a pharmacist, developed a food

for babies who were unable to breastfeed. His first success
was a premature infant who could not tolerate his mother's

Good Food, Good

milk or any of the usual substitutes. People quickly
recognized the value of the new product, after Nestlé's new
formula saved the child's life, and soon, Farine Lactée Henri
Nestlé was being sold in much of Europe.

1905-1918

In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk

Company. By the early 1900s, the company was operating
factories in the United States, Britain, Germany and Spain.
World War I created new demand for dairy products in the
form of government contracts. By the end of the war,
Nestlé's production had more than doubled.

1918 -1938

After the war Government contracts dried up and consumers

switched back to fresh milk. However, Nestlé's management
responded quickly, streamlining operations and reducing
debt. The 1920s saw Nestlé's first expansion into new
products, with chocolate the Company's second most
important activity

1938 -1944

Nestlé felt the effects of World War II immediately. Profits

dropped from $20 million in 1938 to $6 million in 1939.
Factories were established in developing countries,
particularly Latin America. Ironically, the war helped with
the introduction of the Company's newest product, Nescafe,
which was a staple drink of the US military. Nestlé's
production and sales rose in the wartime economy.

1944 -1975

Good Food, Good

The end of World War II was the beginning of a dynamic
phase for Nestlé. Growth accelerated and companies were
acquired. In 1947 came the merger with Magi seasonings
and soups. Crosse & Blackwell followed in 1950, as did
Findus (1963), Libby's (1971) and Stouffer's (1973).
Diversification came with a shareholding in L'Oréal in 1974.

1975 -1981

Nestlé's growth in the developing world partially offset a

slowdown in the Company's traditional markets. Nestlé made
its second venture outside the food industry by acquiring
Alcon Laboratories Inc...

1981 -1996

Nestlé divested a number of businesses1980 / 1984. In 1984,

Nestlé's improved bottom line allowed the Company to
launch a new round of acquisitions, the most important
being American food giant Carnation.

1996+

The first half of the 1990s proved to be favorable for Nestlé:

trade barriers crumbled and world markets developed into
more or less integrated trading areas. Since 1996 there have
been acquisitions including San Pellegrino (1997), Spillers
Pet foods (1998) and Ralston Purina (2002). There were two
major acquisitions in North America, both in 2002: in July,
Nestlé merged its U.S. ice cream business into Dreyer's, and
in August, a USD 2.6bn acquisition was announced of Chef
America, Inc.

Good Food, Good

Nestle In Pakistan:
 Nestle have been serving Pakistani consumers since
1988, when our parent company Switzerland based on
Nestle first acquired share in Milkpak.
 Nestle acquires 40% share in Milkpak.
 In 1990, Sheikhupura factory starts the production of
Nido Milk Powder cereals; a plant is acquired at
Kabirwala.
 1n 1992, Nestle takes over the running of company and
begins to develop its Milk collection network.
 In 1996 Milkpak is renamed to Nestle Milkpak, Ltd.
 In 1997, the Kabirwala plant becomes a fully owned unit
of Nestle Pakistan.
 1n 1998, Nestle Milk collection system in Punjab
matures and company is able to buy all its Milk from
Formers instead of relying on contractors.
 In 2005, Nestle Milkpak Ltd. Is renamed again Nestle
Pakistan.

Nestlé’s Vision:
Good Food, Good
 “At Nestle, we believe that research can help us to
make better food, so that people live a better life.”

Mission Statement:

“Nestle is dedicated to providing the best

foods to people throughout their day,
throughout their lives, throughout the world.
With our unique experience of anticipating
consumers' needs and creating solutions,
Nestle contributes to your well-being and
enhances your quality of life.”

Nestle is not only Switzerland's largest industrial company,

but it is also the World's Largest Food Company. The mission
statement emphasizes on the fact that Nestle products are
available in nearly every country around the world.
Wherever one may live, only Nestle can provide the best and
most reliable food and beverage products to meet his/her
needs throughout the day, throughout the life. Especially,
people on the move want to be able to find good food
wherever they are, whatever the time of day. They are often
reassured that they will find well-known brands out of home.
This statement also reflects the image of high quality
products that Nestle offers. Nestle has the advantage that it
offers caterers, fast food chains and other restaurants a
complete range of high quality ingredients, base products
and meal components, as well as leading consumer brands
such as Nescafe. Quality is the cornerstone of the success of
the Nestle Company. Everyday, millions of people all over
the world show their trust in the company by choosing

Good Food, Good

Nestle products. This trust comes from a quality image that
has been built up for over a century. Therefore, the quality
of the products ultimately enhances the quality of the
consumer’s life.
In addition, the mission statement declares that Nestle
has the ability to anticipate “…consumer’s needs and create
solutions….” Nestle has proven this ability a number of times
by introducing new products that were required by
consumers. Especially, the launch of Nestle Pure Life in
Pakistan proves the accuracy of this fact. In Pakistan, there
was a need for safe and healthy drinking water and Nestle
responded to this consumer need by introducing Nestle Pure
Life.
Finally, it is quite evident that the organization has
actually implemented its mission statement in the business
practices that it carries out. Also, the mission statement has
been an important guideline for any SBU that the firm has
started and this is portrayed by the success that each SBU of
Nestle enjoys.

➢ How Nestle Define

Marketing:
Building customer relationship based on customer value and
satisfaction is at the very heart of modern marketing. The
two fold goals of Nestle marketing is to attract new
customers by providing superior value and to keep and grow
the current customers by delivering satisfaction. Nestle
defines marketing as:

Good Food, Good

 “A social and managerial
process where by individual
& groups obtains good food
and good life through
creating and exchanging
products and values.”

Nestlé’s Business
Principle:
 Nestlé's business objective is to manufacture and
market the Company's products in such a way as to
create value that can be sustained over the long term
for shareholders, employees, consumers, and business
partners.
 Nestlé does not favor short-term profit at the expense
of successful long-term business development.
 Nestlé recognizes that its consumers have a sincere
and legitimate interest in the behavior, beliefs and
actions of the Company behind brands in which they
place their trust and that without its consumers the
Company would not exist.
 Nestlé believes that, as a general rule, legislation is the
most effective safeguard of responsible conduct,
although in certain areas, additional guidance to staff in

Good Food, Good

 the form of voluntary business principles is beneficial in
order to ensure that the highest standards are met
throughout the organization.
 Nestlé is conscious of the fact that the success of a
corporation is a reflection of the professionalism,
conduct and the responsible attitude of its
management and employees. Therefore recruitment of
the right people and ongoing training and development
are crucial.
 Nestlé continues to maintain its commitment to follow
and respect all applicable local laws in each of its
markets.

DYNAMIC
EXPANSION :
The history of Nestle includes the development of many
different products as well as acquisitions, mergers and the
purchasing of shares in companies, mainly abroad. 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.
Amongst the most important acquisitions were Carnation in
Los Angeles (milk, culinary products and pet foods) and
more recently Row tree Mackintosh in York (chocolate and
confectionery), Biotin in Perigee (pasta) as well as Perrier in
France (mineral water). Nestle, which does 98% of its

Good Food, Good

business outside Switzerland, also has interests in non-food
sectors, in cosmetics (a large share holding in L'Oreal) and
ophthalmic products (acquisition of Alcon Laboratories Inc.)
while continuing to give priority to food products.

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 marketing mix consists of
every thing the firm can do to influence the demand for its
products. The many possibilities can be collected into four
groups of variables known as the four P's that are as follows:

Good Food, Good

1- PRODUCT:
Product stands for goods and services that the company
offers to target market. Nestlé kit Kat is in four sizes
including K.K Chunky, while Polo is in three sizes. The shape
and the color of the Kit Kat and Polo are quite attractive for
the customers. The labeling, packaging of the Kit Kat and
Polo includes the Nestlé brand and logo. The packaging
includes an expiry date and time along with a manufacture
date. Second part of labeling includes the quantity of

Good Food, Good

product in grams along with ingredients and contents of
chocolates and candies.

➢ BRANDS IN PAKISTAN:

I. DAIRY PRODUCTS
✓ NESTLE MILKPAK UHT MILK

Launched in 1981, it has become synonymous with quality

milk. Backed by a very strong brand name, aggressive
marketing and distribution plans, consistent quality and
availability through out the year, MILKPAK UHT has been
extremely successful. In September 1999, MILKPAK UHT milk
was launched as NESTLE MILKPAK UHT MILK. NESTLE
MILKPAK UHT MILK is available in three pack sizes of 1000,
500 and 250 ml.

✓MILKPAK BUTTER
A continuous butter-making machine was commissioned at
Kabirwala factory in the year 2000 to produce high quality
cultured butter. 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

Good Food, Good

is easy to spread.The new NESTLE BUTTER is available in two
pack sizes of 200g and 100g in new attractive packaging.

✓NESTLE PLAIN YOGURT

Launched in November 2000 in Lahore, NESTLE Plain Yogurt

is the latest addition to Nestle Milkpak's dairy family. Its
unique 'Stay Fresh seal and a 21-day shelf life gives the
brand a formidable competitive advantage. 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. Through future expansion into
markets other than Lahore and a strong marketing and sales
support, NESTLE Plain Yogurt will undoubtedly grow into a
strong brand and, in time, will achieve the status of market
leader.

✓MILKPAK UHT CREAM

MILKPAK UHT CREAM was introduced under the MILKPAK

brand in 1986. It is available in 200-ml pack size in an
attractive slim pack. The consumer trust in the brand name
and the product has ensured its dominant share in the

Good Food, Good

cream category.MILKPAK CREAM was also introduced in an
economical 1000ml pack size in the year 2000. This SKU has
been developed for Food Services to cover institutions using
large quantities of fresh cream.

✓MILKPAK DESl GHEE

MILKPAK DESI GHEE was introduced in 1986 in tin packaging.
The packaging was later changed to Tetra Pak. However, in
line with the current market trend, MILKPAK DESI GHEE was
relaunched in 1Kg tin packaging in the year2000. The
product was also introduced in 16kg tin packing to tap the
huge potential of loose desi ghee.

✓ NESTLE EVERYDAY

To target the massive potential offered by the tea-whitening

segment, NESTLE EVERYDAY tea whitener was launched in
1992. Supported by aggressive marketing using multi-media
activities, focused distribution with sampling drives and
excellent consumer acceptance, the brand has shown strong
growth and holds good promise for the future.

✓ NESTLE NIDO

NESTLE NIDO has been present in the Pakistan market since

early 70's and on account of the consumer confidence in its

Good Food, Good

quality it has become a pillar of Nestlé’s success. 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, NESTLE NIDO is the
best quality milk for growing children. The brand has now
launched a low unit priced SKU that offers half a liter of
quality milk at a very affordable price. NESTLE NIDO is well
on its way to becoming a mega brand.

II. CHOCOLATE DRINKS

✓MILO POWDER

To provide convenience to consumers, NESTLE MILO was

launched in its new 130gm. SKU in an attractive airtight jar
in February2000. 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 trend of consumer preference for imported MILO
or similar products over local MILO. Consumer response to
the new initiative has been very positive.

Good Food, Good

 ✓MILO RTD

To cater for consumer convenience, MILO RTD (ready to

drink) was launched in 1995 and is now available in an
attractive 180ml slim pack. Popular with all age groups,
especially among the growing segment of nutrition
conscious consumers, it is an excellent substitute for cold
drinks.

III. COFFEE
✓NESCAFE CLASSIC
NESCAFE, Nestlé’s international flagship brand, is locally
repacked and marketed in 2gm. and25gm. Sachet, 75gm.
bottles and 500gm. Soft packs. The brand enjoys a special
position in the country's coffee consuming segment.

✓NESCAFE FROTHE

NESCAFE Frothe (Original), a premix in 18gm. single serve

sachet, was launched in January 2000. The product profile

Good Food, Good

was developed through consumer research and was
accordingly offered as a sweet, creamy and foamy coffee.
Encouraged by extremely good consumer response to this
cappuccino style coffee, 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
To promote summer consumption of coffee and to change
consumer perception that coffee is only a winter beverage,
NESCAFE Frappe was launched in June 3000. This iced,
creamy, ready-to-drink coffee in180ml slim pack was
positioned to appeal to the youth and gain a strong share
from other summer beverages. The launch was extensively
supported by promotional programs in major towns and the
product is fast gaining in popularity.

IV. FRUIT DRINKS

✓FROST
A well-known brand, FROST was introduced in 1986 and has
the largest share of the countrywide market. Positioned as a

Good Food, Good

cold drink and alternate to cola drinks, its strength lies in the
convenience attached to its usage.

✓ NESTLE JUICES

Encouraged by the consumer response to NESTLE ORANGE

JUICE that was launched in 1996, the category of NESTLE
juices was expanded with the introduction of Mango-Orange
and Mango flavors in the year 2000. This has further
strengthened the position of Nestle as leader in the value
added/premium drinks market. Consumer to gain further.

V. DIETETIC & INFANT PRODUCTS

✓LACTOGEN

LACTOGEN 1 and LACTOGEN 2 are infant and follow-up

formulae launched in 1991 and are available in two sizes.
The brands provide both affordability and quality.

✓ CERELAC

Good Food, Good

Launched in 1989, CERELAC is the dominant player in the
growing infant cereal market. Available in 5 flavors, the
brand provides balanced nutrition to infants from 4 months
onwards

✓NESTLE RICE
An affordable starter weaning cereal, NESTLE RICE offers the
flexibility of preparation with a variety of meals. Gluten free,
the brand is available in 125 gm. packs and is specially
suited to the needs of infants from 4 months onwards. It was
launched in 1994.

✓NESTLE WHEAT

NESTLE WHEAT is a wheat-based infant cereal without milk,

for infants of 4 months and above. It was launched in 1997
and is available in packs of 125 and 250 gm.

✓NESLAC

NESLAC is a growing-up milk, formulated specially for 1 to 4

year olds. It contains just the right balance of proteins,
calcium, iron, vitamins and essential minerals in order to

Good Food, Good

cater to the nutritional needs of a growing child during this
special age. The product was launched in 1994.

VI. CULINARY PRODUCTS

✓MAGGI 2-MINUTE NOODLES

Fast to cook, good to eat - MAGGI 2-MINUTE NOODLES were

launched with local production in 1992 and in doing so
Nestle pioneered the category of instant noodles in Pakistan.
MAGGI 2-MINUTE NOODLES have special appeal for children,
are fun to eat and offer a range of interesting flavors,
namely: Chicken, Masala, Chilly and Chatkhara. Affordably
priced and backed by focused marketing activities, MAGGI
NOODLES have shown good progress in 2000.

✓MAGGI COLD SAUCES

Nestle entered the Cold Sauces' category in 1999 with

the launch of MAGGI Ketchup, MAGGI Mirch Maza and MAGGI
Khatti Meethi - the first Imli sauce in Pakistan. The innovative
taste of Khatti Meethi together with the more traditional
tastes of Ketchup and Mirch Maza, were received well by the
consumers.

Good Food, Good

Other Brands Of
Nestle:
Quality is an essential ingredient in all the Nestlé brands and
also Nestlé brands maintain nutritional balance in a fast pace
world, that is why people around the globe choose. The
detail of the Nestlé brand is as follows:

❖ Baby foods (Nestlé Cerelac, NAN)

❖ Breakfast cereals (Nestlé Cereals)

❖ Dairy products (Milkpak, NIDO, Nespray, Nestlé Yogurts,

Everyday)

❖ Ice-creams (Movenpick, Dreyer’s)

❖ Chocolate confectionary (Kit Kat, Smarties, Toffo)

❖ Beverages (Nescafe, Milo, Nestlé juices)

❖ Food service (Nestlé Jumbo Bottle)

❖ Prepared foods (Maggi, Powered Soups)

❖ Bottled water ( Nestlé Pure Life, Nestlé Aquarral)

Good Food, Good

❖ Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow,

Cat Chow, Felix, Alpo)

❖ Pharmaceuticals (Ophthalmic drugs, lens-care solutions

& optical surgical Instruments)

Good Food, Good

Good Food, Good
2- PRICE:
The amount of money charged for a product or service, or
sums of the values that consumers exchange for the benefits
of having or using the product or services. The price of
Nestlé Kit Kat and Polo varies increases with the increase in
its size.

3- PLACING:
Placing stands for company's activities that make the
product available to the target consumer. Nestlé' distribution
is using the direct distribution channel to supply
confectionary products weekly to the retailers.

4- PROMOTION:

Good Food, Good

Producing a quality product, pricing it attractively and
making it available for the target consumer is not the only
problem companies need to solve. Modern era is the era of
communication with customer, assuring customer
satisfaction, demands for personal and non-personal
communication with the target customer to build a
relationship with them. In an area-storming activity, giving
out products free, gift hampers, attracts new customers;
kites depending on the season (for existing and potential
customers) are given. The basic purpose is to explore the
area that is being unexposed and to bring awareness in the
people.

➢ Questionnaire:

PRODUCT:
Q: When was Nestle Instant Milk launched in the market?
A: Nestle first launched its powder milk in the market in
2003 and then came the liquid powder.

Good Food, Good

Q: W hat are the specific features of the product that makes
it different from other similar products present in the
market?

A: Nestle has introduced the milk powder which outshined

others because of its great taste, refrigeration, ready to
drink, less volume, more stable shelf life.

Q: Is the product manufactured locally or imported?

A: The entire production of the Nestle Everyday is carried
out in Pakistan at Sheikhupura and Kabianwala.

Q: What is the role of Research and Development

department in the development of the product?
A: At Nestle the Research and Development department is
called as the “APPLICATION GROUP”. No other company
matches the R&D presence of Nestle. No other company
dedicates so many human and financial resources to R&D as
Nestle.

Q: Is the technology in making the products also local?

A: No the technology is imported and is latest.

Good Food, Good

Q: Did Nestle made any changes in the product or its
manufacturing process since its launch?
A: Yes, the factory mil powders spray drying capacity was
doubled in 1999 with commissioning of new evaporator.

Q: When Nestle launched the product, do its sales excel or

fell short of the company sales targets?
A: the actual target is a company’s secret that will not be
disclosed. But we received an overwhelming acceptance and
liking of the product.

Q: Is Nestle instant milk good for health; is it according to

international health standards?
A: Over many years company’s primary concern has been to
improve the quality and volume of milk for UHT processing
and other milk based products.

Q: What is the target market of product?

A: The target market of the product is definitely he tea
drinkers who have a choice and capacity for the best taste.

Q: Did the company ever have some problems with the

product?
A: There was a problem of segmentation but it was quickly
taken into notice and the problem was readily removed.

Good Food, Good

Q: Did the company have any special concept behind
launching the product?
A: It is designed to be used in general but it is popular
mostly in offices and cafés for tea purposes.

Q: Did Nestle receive any complaints about the product

ever?
A: yes, but now the error rate has been reduced to zero.
2004
3 complaints
2005
6 complaints
2006 --------------------------- 4 complaints
2007 ---------------------------- 2 complaints

Q: What is the current position of the product in the market?

A: Well the product is matchless in quality and has no
match. It has a sufficient name and place in the market.

Q: Do the company donate any money from its product

sales?
A: On the basis of profit margin Nestle seldom make
donations o non- profit organizations and charitable
institutions.

Good Food, Good

Q: How do you make sure that the cows which are milked
are disinfected?
Nestle has its own diary farms from which we collect milk
and we have a special team of veterans who regularly inject
animals against epidemic diseases.

Q: what about the packing of the product, any

specifications?
A: Yes the Nestle logo is a must, other than that the product
is made available in convenient sizes and attractive colors.
The WHITE color is the chief color to depict the color f milk.

Q: Who are the major competitors of product?

A: competitors are Olpers (Angro) and Halib milk.

Q: Who are the industrial consumers of Nestle Everyday

instant milk?
A: PIA, MC-DONALDS and PEARL CONTINENTAL Pakistan.

PRICE:

Good Food, Good

 Q: How do you set prices for your products?
A: We set prices of our own because Nestle is the trend
setter in the market.

Q: What is the profit margin of the product?

A: The profit margin is usually high because of the high
quality of the product.

Q: Does the prices fluctuate or they remain stable?

A: As the product is a diary product so its prices generally
trend to fluctuate.

Q: On what scale prices are fixed?

A: The prices are fixed on a reasonable scale so that
majority of public can afford.

Q: Does competitors prices bother your price policy?

A: Not really, we set price of our own.

Q: Do you give price discounts?

A: Not to the final consumers but it can be considered for
the he organizational consumers like Nestle has given
discounts to PIA.

Q: Do you have any price refund policy?

Good Food, Good

A: No, we never return the paid money back. If the claim is
valid then we can replace the products.

PROMOTION:
Q: What are the channels adopted for promotion?
A: TV, News papers, magazines and doctors.

Q: What is the advertisement budget of the company?

A: It is preplanned b the start of financial year. It is
kept secret b the company.

Q: Who are the sponsors of the company?

A: Nestle does not have any sponsors.

Q: Does Nestle have any brand ambassador?

A: No, Nestle has no brand ambassador.

Q: What is the share of promotion in overall project?

A: It varies every year. Usually it is 40% of the product.

Q: What is the nature of marketing for the product?

A: The product is marketed aggressively in the market.

Good Food, Good

Q: Is there any online promotion methods?
A: In Pakistan, not really.

PLACEMENT:
Q: Where are the outlets of product located?
A: These are located all over in Pakistan regardless of big
and small cities.

Q: Does the product is sold directly to the consumers or via

distributors?
A: The product is not sold directly t the customers
because of the extensive consumer groups.

Q: What are the insurance policies of companies?

A: Insurance policies are maintained but they are highly
confidential.

Q: What is the warehousing facilitation of company?

A: Nestle has its own warehouses for the storage of

products as well as it has also hired some warehouses.

Good Food, Good

Q: What are the transportation modes of the product?
A: Usually mode of transportation is road.

Q: Did customers or suppliers ever complaint about

shortage of Instant Milk in market?
A: No we have a well defined system to ensure that
products at right time are at right place.

Q: Does the company uses any E-distribution for the

product?
A: Due to the distribution problems that a number of online
firms face Nestle until now has no plans for E – distribution.

STRATEGIES FOR
COMPETIOTIVE
ADVANTAGES:
Every product on the shelf, every service and every
customer contact helps to shape this image. A Nestlé brand
name on a product is a promise to the customer that it is
safe to consume, that it complies with all regulations and
that it meets high standards of quality. Customers expect us
to keep this promise every time. Under no circumstances will
we compromise on the safety of a product and

Good Food, Good

every effort must be made to avoid hazards to health.
Likewise, compliance with all relevant laws and regulations is
a must and is not negotiable. People, equipment and
instruments are made available to ensure safety and
conformity of Nestlé products at all times. The effort is worth
it. Companies with huge quality standards make fewer
mistakes, waste less time and money and are more
productive. They also make higher profits. Quality is our
most successful product. It is the key to our success, today
and tomorrow.

The customer comes first

We want to win and keep customers: distributors,
supermarkets, hotels, shopkeepers and the final consumers.
They have very different requirements. Trade customers
expect excellent service, correct information and timely
delivery. Consumers consider taste, appearance and price
when they make their choice. Our task is to understand what
customers want and respond to their expectations rapidly
and effectively. We serve various groups of consumers and
there is demand for products at different levels of perceived
quality and price. All customers, however, expect value for
their money – good quality at a reasonable price. When
offering quality to customers we also mean environmental
quality. Nestlé shares society’s concern for the environment
and is committed to environmentally sound business
practices throughout the world.
Customers are central to our business and we must always
respect their needs and preferences.

Good Food, Good

Quality is a competitive
advantage
We live in a competitive world and must never forget that
our customers have a choice. If they are not reverent of
quality and reduction cost. Success can never be taken for
granted. We must watch and learn from our competitors. If
they do something better, we must improve our own
performance. We can achieve competitive advantage
through Quality.

Quality is a joint effort

Operating companies are fully responsible for maintaining
agreed quality standards. Not only Production units, but also
Marketing, Purchasing, Distribution and Sales have a vital
role to play in providing quality to customers. This implies a
thorough knowledge of the products and services we offer.
Quality units at different levels of the organization provide
specific support, promote quality awareness, assume
guardianship and audit the system. Quality departments
monitor operations against agreed standards and must
intervene in case of non-conformity. Quality policy and
principles, the mandatory standards and the recommended
tools for implementation are laid down in the Nestlé Quality
System that is applicable throughout the group. Further
directions are given through instructions, norms and
guidelines, often specific to a product. Our business
products, such as raw material producers, packaging
suppliers, contract manufacturers and distributors are
expected to share our concern for Quality. They too must set
up an adequate quality system, so as to meet our
requirements consistently.
Every function and department in the company as well as
our business partners must share the quality efforts.

Good Food, Good

Quality is made by people
Adequate equipment, procedures and systems are needed to
make Quality; so are involved and dedicated people. Each
and every Nestlé employee must do his best to provide
quality products and services. Training and teamwork are
crucial to the successful implementation of high quality
standards. Continuous training ensures that everyone
understands his tasks and has the necessary skills to carry
them out. Teamwork allows us to achieve results that are
greater than the sum of individual efforts. We motivate
employees by demonstrating management commitment to
Quality, by setting challenging goals

and by giving them responsibility and recognition. It is

through employee involvement that goals and targets can be
achieved in the shortest time. Quality must be a way of life
for everyone in the company.

Quality is action
Quality is the result of deliberate action. It is the
responsibility of senior managers to communicate the quality
objectives and to provide the resources necessary for their
implementation. It is then up to all employees to make
Quality happen throughout the company. Progress is
followed by listening to our customers and by measuring our
performance. Shortcomings and mistakes must be analyzed
and corrected. Problems must be anticipated and prevented
before they occur. We also must identify and take advantage
of opportunities. To stand still is to fall behind. So we must
strive for continuous improvement in every area. It is

Good Food, Good

through many small improvements as well as through major
breakthroughs that we will achieve excellence.

MARKET
SEGMENTATION:
To occupy a clear distinctive & desirable place related to
competing mineral water in the minds of the target
customers Nestle Pure Life segments its market on two
bases:

 Geographic segmentation
 Demographic segmentation

GEOGRAPHICAL
SEGMENTATION:
The Company segments its market geographically on
divisional basis. They divide each division in different zones

Good Food, Good

and every distributor is restricted to sale its products only in
his own zone.
E.g. Lahore is divided into five zones like East, West, South,
North, and South west.

DEMOGRAPHICAL FACTOR:
If we look nestle pure life's demographic segmentation than
we will find that our product is for every one. People from
any area, any culture, any age, any sex, any belief and any
income will drink water. It is not any luxury item which is
used by a specific people.

Targeting:
A specific demographic target market was not chosen for
Nestle Pure Life; instead the goal was to develop a product
to be used by consumers of all ages - from infants to seniors.
It was intended as a family product especially for families
living in large, polluted urban agglomerations that
experience increasing difficulties finding safe, healthy
drinking water. In fact, Nestle Pure Life's 0.5 L bottle is
targeting to be also an alternative to soft drinks. Basically
the target market of nestle water is those areas where the
consumers having more awareness about pure life. As the
people in villages having less

Good Food, Good

information about Nestle Pure Life. So targeting marketing
depends on the awareness of the consumers.

SELETING TARGET MARKET

Target Market Strategies

Undifferentiated mass market.

Differentiated Segmented Marketing.

Concentrate Marketing.

Micro marketing or Individual Marketing.

PRODUCT LIFE
CYCLE:

Good Food, Good

If we look nestle pure life water in product life cycle than it
easy to judge that it is at introduction stage. Because Nestle
is the market pioneer and at this stage its profit is negative
or low due to low sale and high distribution and promotion
expenses. Other major reason to be at introduction stage is
unawareness in rural areas. The people are not aware to the
pure life water that’s why their sale is low. They can bring
change in product life cycle by effective promotion, by
formulating new price strategies etc.

Nestle Pure Life

Product Introduction growth maturity

decline
Development

MARKETING
ENVIRONMENT:
✓Internal environment
✓Micro environment

Good Food, Good

 ✓Macro environment

✓ Internal Environment:
In Nestle Internal environment ensures
 Employees are on side with the goals of an
organization.
 They have direct impact on product quality,
dependability and overall productivity.

Good Food, Good

  They are internal market, which impact every
department within an organization; a satisfied internal
market will be better able to satisfy external market.

Nestle under the supervision of top management runs the

departments of finance, operations, accounting, sales and
marketing, research and development to achieve the goals
of organization.

✓ Micro Environment:
In Nestle microenvironment includes:

a) Suppliers:
Suppliers provide the resources like labor and material
resources to produce goods and services. They add to
customer overall value delivery system.
Labor supplies include handling of
 Quantity of labor
 Quality of labor
 Labor strikes
 Labor relations
Material supplies deals with the

 Quantity of material
 Quality of material
 Price of material
 Stability of material inputs
 Delivery delays

Good Food, Good

 Nestle efficiently handles the quality, quantity, price and
stability of both material and labor supplies. Management
maps out the strategies for labor strikes, supply shortages
and delays to avoid increasing the cost of production,
which can badly affect sales in short run and customer
satisfaction in long run.

b) Marketing Intermediaries:
It includes the firms that help the company to promote,
sell and distribute its goods to final buyers.

 The physical distribution firms determine the ways to

store and ship goods to reach their destination.
 Marketing service agencies including marketing
research firms, advertising agencies and media firms
are also hired to target and promote product to right
market.
 Financial intermediaries like banks, insurance
companies helps to finance transactions and insure
against risks associated with buying and selling of
goods.

Nestle works in coordination with marketing

intermediaries to make its product Pure Life Water
available and visible to its valuable customers.

c) Customers:
Nestle deals with the reseller customers who buy the
product Pure Life to resell at a reasonable profit.

Good Food, Good

 ✓ Macro Environment:
Macro environment include political, cultural, economical
factors but as for as Nestle Pure Life Water is concern none
of above factors affect on it. Because it is not at luxury item
they are selling necessities of life which can never be
affected.

ORGANIZATION STRUCTURE:
Nestle Pakistan Limited - Company Profile
Snapshot

Company Nestle Pakistan Limited

Profile:
Ticker: NESTLE

Exchanges KAR
:

2007 32,031,000,000
Sales:

Major Food & Beverages

Industry:

Sub Diversified Food

Industry:

Good Food, Good

Country: PAKISTAN

Employee 2174
s:

SWOT Analysis Of
Nestle:
STRENGTHS ----------------- TO BUILD
ON
WEAKNESESS ----------------- TO COVE
ON
OPPORTUNITIES-------------------TO
CAPTURE
THREATS ----------------------- TO

DEFEND ON

Good Food, Good

STRENGHTS:
The greatest strength of nestle is that it includes a culture
that is team focused and an open door policy. Nestle focus
on collectivism and performance orientation attitude which
encourages employees to work harder. Another thing is high
level of market share and that people all over the world trust
and recognizes Nestle as a big brand name. Strength is that
people trust on Nestle. It looks at achieving higher volumes
by renovating existing products and innovating new
products. Strength is that they are low cost operators which
allow them to not only beat competition but also edging
ahead operating excellence, innovation, renovation, product
availability and communication are major strengths.

IT is an important aspect that people all around the world

are becoming more conscious about health, that’s why they
prefer Nestle.

Good Food, Good

  The only brand in the area maintaining its quality
and taste and having the same impact on its
customer
 Economical
 Pure Drinking Water in market (Free of chemicals)
 Strong Brand Name

WEAKNESESS:
One major weakness of Nestle is that it is entering into
markets that are already mature and can give a tough
competition to new entrants. Nestle Plain Yogurt has
proved to be a Nestle weakness because it has been unable
to make its market place in USA. But Nestle by analyzing
the sensitive areas can overcome its weaknesses.
 Communication is weak
 Lack of Awareness

Good Food, Good

OPPORTUNITIES:
Nestle in Pakistan has a great opportunity for expanding its
markets because in Pakistan there is a large ready market of
food and beverages due to trends of eating and the
increasing .I t also has opportunities largely in China and
India as well. Through proper marketing research Nestle can
cash on to these opportunities.
 Concentrating on these areas can
increase sales
 Increase in product line.

Threats:
Nestle is facing the threats by worldwide community due to
its violation of international marketing standards. Many
conferences and campaigns have been held against Nestle
in this regard which can damage the name and trust of its
customers. Another threat is due to the increasing popularity
of its competitor OLPERS in local and international markets.
 Segments are being shared by competitors
 Uncertain conditions will effect the sales
(diseases of animals)
 Under cutting by competitors.

Good Food, Good

RECOMMENDATIONS
:
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.

❖ 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.

❖ They should introduce creativity into the work, so that

the employees can do their work active mindedly.

❖ Employees should be given compensation in order to

keep them loyal.

❖ Employees should be more involved in decision making

to become more differentiated.

❖ Company should provide incentives to shop keepers.

Good Food, Good

FUTURE OF NESTLE:
Nestle is today the world’s largest food and beverage
company with its mission to provide healthier lifestyle. It has
launched many products in Pakistan the majority of which
are popular and among the market leaders. Nestle is
installing new plants and importing latest technologies to
improve. Moreover, innovation is one of its greatest
strengths so it has a bright future in Pakistan.

REFERENCES:
We have collected all the data from the
following sources,

Good Food, Good

❖www.nestle.com
❖By communicating with the employees

Good Food, Good