1. TABLE OFCONTENTS:
MISSION STATEMENT
STORY OF NESTLE
DYNAMIC EXPANSION
BRANDS OF NESTLE
BOARD OF DIRECTORS
AUDIT COMMITTEE
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 foodprocessing company, registered on the Karachi and
Lahorestock exchanges. For 5 years in a row, the company has won a place among the
top 25 companies of the Karachi stockexchange.Headquartered in Lahore the company
operates 5 productionfacilities. Two of its factories in Sheikhupura and Kabirwalaare
multi products factories. One factory in Islamabad and 2in Karachi produce bottled
water. Through its effectivemarketing and vast sales and distribution networkthroughout
the country, it ensures that its products aremade available to consumers whenever,
wherever andhowever.In the line with Nestlé’s global philosophy, Nestle Pakistan
isproud of its commitment to excellence in product and safetyand quality and providing
value and services to itsconsumers. On the social front it is very responsible when
itcomes to environmentally sound business practices andcorporate social
responsibility.Nestle Pakistan operates in many ways but people productsand brands
are the main flag bearers of the company’simage.
INTRODUCTION TONESTLE:
Today, Nestle is the world leading Food Company.Nestle headquarters is in
Switzerland. Its international R&Dnetwork supports the products made in more than
500factories in 86 countries. The Nestle factories are operatingin the region of:

2. 1 .Africa
2 .America
3 . A s i a
4 .Europe
5 .Oceania
Being a company dedicated to food from thebeginning, Nestle remains sensitive to
culinary and eatinghabits, and responds to specific nutritional problems, whilstalso
setting and matching new trends such as growing out-of-home consumption and caring
about the well being of itsconsumers.
MEANING OF NESTLE:
Henri Nestlé endowed his company with the symbol derivedfrom his name. His family
coat of arms, the nest with a
mother bird
protecting her young, became the Company'slogo and a symbol of the
Company's care
and attitude tolife-long nutrition. The Nestlé nest represents thenourishment, security
and sense of family that are soessential to life.
HISTORY OF NESTLE:
1866 -1905
In the 1860s Henri Nestlé, a pharmacist, developed a foodfor babies who were unable
to breastfeed. His first successwas a premature infant who could not tolerate his
mother's milk or any of the usual substitutes. People quicklyrecognized the value of the
new product, after Nestlé's newformula saved the child's life, and soon, Farine Lactée
HenriNestlé was being sold in much of Europe.
1905-1918
In 1905 Nestlé merged with the Anglo-Swiss Condensed MilkCompany. By the early
1900s, the company was operatingfactories in the United States, Britain, Germany and
Spain.World War I created new demand for dairy products in theform 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 consumersswitched back to fresh
milk. However, Nestlé's managementresponded quickly, streamlining operations and
reducingdebt. The 1920s saw Nestlé's first expansion into newproducts, with chocolate
the Company's second mostimportant activity
1938 -1944
Nestlé felt the effects of World War II immediately. Profitsdropped from $20 million
in 1938 to $6 million in 1939.Factories were established in developing
countries,particularly Latin America. Ironically, the war helped with theintroduction of the
Company's newest product, Nescafe,which was a staple drink of the US military.
Nestlé'sproduction and sales rose in the wartime economy.
1944 -1975

3. The end of World War II was the beginning of a dynamicphase for Nestlé. Growth
accelerated and companies wereacquired. In 1947 came the merger with Magi
seasoningsand soups. Crosse & Blackwell followed in 1950, as didFindus (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 aslowdown in the Company's
traditional markets. Nestlé madeits second venture outside the food industry by
acquiringAlcon Laboratories Inc...
1981 -1996
Nestlé divested a number of businesses1980 / 1984. In 1984,Nestlé's improved bottom
line allowed the Company tolaunch a new round of acquisitions, the most
importantbeing American food giant Carnation.
1996+
The first half of the 1990s proved to be favorable for Nestlé:trade barriers crumbled
and world markets developed intomore or less integrated trading areas. Since 1996
there havebeen acquisitions including San Pellegrino (1997), SpillersPet foods (1998)
and Ralston Purina (2002). There were twomajor acquisitions in North America, both in
2002: in July,Nestlé merged its U.S. ice cream business into Dreyer's, andin August, a
USD 2.6bn acquisition was announced of Chef America, Inc.
Nestlé’s Vision:
“At Nestle, we believe that research can help us tomake better food,
so that people live a better life.”
Mission Statement:
“Nestle is dedicated to providing the bestfoods to people throughout
their day,throughout their lives, throughout the world.With our
unique experience of anticipatingconsumers' needs and creating
solutions,Nestle contributes to your well-being andenhances your
quality of life.”
Nestle is not only Switzerland's largest industrial company,but it is also the World's
Largest Food Company. The missionstatement emphasizes on the fact that Nestle
products areavailable in nearly every country around the world.Wherever one may live,
only Nestle can provide the best andmost reliable food and beverage products to meet
his/herneeds throughout the day, throughout the life. Especially,people on the move
want to be able to find good foodwherever they are, whatever the time of day. They are
oftenreassured that they will find well-known brands out of home. This statement also
reflects the image of high qualityproducts that Nestle offers. Nestle has the advantage
that itoffers caterers, fast food chains and other restaurants acomplete range of high
quality ingredients, base productsand meal components, as well as leading consumer
brandssuch as Nescafe. Quality is the cornerstone of the success of the Nestle

4. Company. Everyday, millions of people all overthe world show their trust in the company
by choosing
Nestle products. This trust comes from a quality image thathas been built up for over
a century. Therefore, the qualityof the products ultimately enhances the quality of
theconsumer’s life.In addition, the mission statement declares that Nestlehas the ability
to anticipate “…consumer’s needs and createsolutions….” Nestle has proven this ability
a number of timesby introducing new products that were required
byconsumers. Especially, the launch of Nestle Pure Life inPakistan proves the
accuracy of this fact. In Pakistan, therewas a need for safe and healthy drinking water
and Nestleresponded to this consumer need by introducing Nestle PureLife.Finally, it is
quite evident that the organization hasactually implemented its mission statement in the
businesspractices that it carries out. Also, the mission statement hasbeen an important
guideline for any SBU that the firm hasstarted and this is portrayed by the success that
each SBU of Nestle enjoys.
How Nestle DefineMarketing:
Building customer relationship based on customer value ands a t i s f a c t i o n i s
at the very heart of m odern marketing.
Thet w o f o l d g o a l s o f N e s t l e m a r k e t i n g i s t o a
t t r a c t n e w customers by providing superior value and to keep and
growt h e c u r r e n t c u s t o m e r s b y d e l i v e r i n g s a t i s f a c t i o n . N e s t l e defi
nes marketing as:
“
A s o c i a l a n d m a n a g e r i a l process where by individual &
groups obtains good
food a n d g o o d l i f e t h r o u g h creating
a n d e x c h a n g i n g products and values
.”
N e s t l é ’ s B u s i n e s s Principle:
•
Nestlé's business objective is to manufacture andmarket the Company's products in
such a way as tocreate value that can be sustained over the long termfor shareholders,
employees, consumers, and businesspartners.
•
Nestlé does not favor short-term profit at the expenseof successful long-term business
development.
•
Nestlé recognizes that its consumers have a sincereand legitimate interest in the
behavior, beliefs andactions of the Company behind brands in which theyplace their
trust and that without its consumers theCompany would not exist.
•

5. Nestlé believes that, as a general rule, legislation is themost effective safeguard of
responsible conduct,although in certain areas, additional guidance to staff in
the form of voluntary business principles is beneficial inorder to ensure that the highest
standards are metthroughout the organization.
•
Nestlé is conscious of the fact that the success of acorporation is a reflection of the
professionalism,conduct and the responsible attitude of itsmanagement and employees.
Therefore recruitment of the right people and ongoing training and developmentare
crucial.
•
Nestlé continues to maintain its commitment to followand respect all applicable local
laws in each of itsmarkets
DYNAMICEXPANSION :
The history of Nestle includes the development of manyd i f f e r e n t p r o d u c t s a s
w e l l a s a c q u i s i t i o n s , m e r g e r s a n d t h e purchasing of shares in companies,
mainly abroad. Over thec o u r s e o f t h e y e a r s , t h i s e n a b l e d i t t o b r o a d e n
i t s r a n g e o f products and diversify its operations, while at the same
times t r e n g t h e n i n g t h e e c o n o m i c f o u n d a t i o n s o f t h e c o m p a n y . Amongst
the most important acquisitions were Carnation
inL o s A n g e l e s ( m i l k , c u l i n a r y p r o d u c t s a n d p e t f o o d s ) a n d m o r e
r e c e n t l y R o w t r e e M a c k i n t o s h i n Y o r k ( c h o c o l a t e a n d confectionery),
Biotin in Perigee (pasta) as well as Perrier
inF r a n c e ( m i n e r a l w a t e r ) . N e s t l e , w h i c h d o e s 9 8 % o f
its
business outside Switzerland, also has interests in non -foods e c t o r s , i n
c o s m e t i c s ( a l a r g e s h a r e h o l d i n g i n L ' O r e a l ) a n d ophthalmic products
(acquisition of Alcon Laboratories Inc.) while continuing to give priority to food
products.
Marketing Mix:
M a r k e t i n g M i x i s d e f i n e d a s a s e t o f c o n t r o l l a b l e t a c t i c a l market
ing tools that firm blends to produce the response it w a n t s i n t h e t a r g e t
market. The marketing mix consists of every thing the firm can do to
influence the demand for itsproducts. The many possi bilities can be
c o l l e c t e d i n t o f o u r groups of variables known as the four P's that are as follows:

6. 1- PRODUCT:
Product stands for goods and services that the companyo f f e r
s t o t a r g e t m a r k e t . N e s t l é k i t K a t i s i n f o u r s i z e s incl
uding K.K Chunky, while Polo is in three sizes. The shapeand the color of the
Kit Kat and Polo are quite attractive fort h e c u s t o m e r s . T h e l a b e l i n g ,
packaging of the Kit Kat
andP o l o i n c l u d e s t h e N e s t l é b r a n d a n d l o g o . T h e p a c k a g i
n g includes an expiry date and time along with a
manufactured a t e . S e c o n d p a r t o f l a b e l i n g i n c l u d e s t h e
q u a n t i t y o f product in grams along with ingredients and con
t e n t s o f chocolates and candies
2- PRICE:
T h e a m o u n t o f m o n e y c h a r g e d f o r a p r o d u c t o r s e r v i c e , o r sums of the
values that consumers exchange for the
benefitso f h a v i n g o r u s i n g t h e p r o d u c t o r s e r v i c e s . T h e p r i c
e o f Nestlé Kit Kat and Polo varies increases with the increase in its size.
3- PLACING:

7. Placing stands for company's activities that make t
h e product available to the target consumer. Nestlé'
distributioni s u s i n g t h e d i r e c t d i s t r i b u t i o n c h a n
n e l t o s u p p l y confectionary products weekly to the retailers.
4- PROMOTION:
Producing a quality product, pricing it attractively andm
aking it available for the target consumer is not the onlyproblem
companies need to solve. Modern era is the era
of c o m m u n i c a t i o n w i t h c u s t o m e r , a s s u r i n g c u s
t o m e r satisfaction, demands for personal and non-
personalc o m m u n i c a t i o n w i t h t h e t a r g e t c u s t o m
e r t o b u i l d a relationship with them. In an area-storming activity,
givingo u t p r o d u c t s f r e e , g i f t h a m p e r s , a t t r a c t s n e w c u s t o m e r s ; k
ites depending on the season (for existing and
p o t e n t i a l customers) are given. The basic purpose is to explore
t h e area that is being unexposed and to bring awareness in thepeople.
Questionnaire:
PRODUCT:
Q
: When was Nestle Instant Milk launched in the market?
A
: Nestle first launched its powder milk in the market in2003 and then came the liquid
powder.
Q:
W hat are the specific features of the product that makesit different from other similar
products present in themarket?
A
: Nestle has introduced the milk powder which outshinedothers because of its great
taste, refrigeration, ready todrink, less volume, more stable shelf life.
Q:
Is the product manufactured locally or imported?
A:
The entire production of the Nestle Everyday is carriedout in Pakistan at Sheikhupura
and Kabianwala.
Q
: What is the role of Research and Developmentdepartment in the development of the
product?
A
: At Nestle the Research and Development department iscalled as the “APPLICATION
GROUP”. No other companymatches the R&D presence of Nestle. No other
companydedicates so many human and financial resources to R&D asNestle.

8. Q:
Is the technology in making the products also local?
A
: No the technology is imported and is latest
Q:
Did Nestle made any changes in the product or itsmanufacturing process since its
launch?
A:
Yes, the factory mil powders spray drying capacity wasdoubled in 1999 with
commissioning of new evaporator.
Q:
When Nestle launched the product, do its sales excel orfell short of the company sales
targets?
A:
the actual target is a company’s secret that will not bedisclosed. But we received an
overwhelming acceptance andliking of the product.
Q
: Is Nestle instant milk good for health; is it according tointernational health
standards?A: Over many years company’s primary concern has been toimprove the
quality and volume of milk for UHT processingand other milk based products.Q: What
is the target market of product?A: The target market of the product is definitely
he teadrinkers who have a choice and capacity for the best taste.Q: Did the company
ever have some problems with theproduct?A: There was a problem of segmentation but
it was quicklytaken into notice and the problem was readily removed.
Q: Did the company have any special concept behindlaunching the product?A: It
is designed to be used in general but it is popularmostly in offices and cafés for tea
purposes.Q: Did Nestle receive any complaints about the productever?A: yes, but
now the error rate has been reduced to zero.2004 --------------------------- 3
complaints2005 --------------------------- 6 complaints2006 ---------------------------
4 complaints2007 ---------------------------- 2 complaintsQ: What is the current position
of the product in the market?A: Well the product is matchless in quality and has
nomatch. It has a sufficient name and place in the market.Q: Do the company
donate any money from its productsales?A: On the basis of profit margin Nestle
seldom makedonations o non- profit organizations and charitableinstitutions
Q: How do you make sure that the cows which are milkedare disinfected?Nestle has its
own diary farms from which we collect milkand we have a special team of veterans who
regularly injectanimals against epidemic diseases.Q: what about the packing of
the product, anyspecifications?A: Yes the Nestle logo is a must, other than that
the productis 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

9. of product?A: competitors are Olpers (Angro) and Halib milk.Q: Who are the
industrial consumers of Nestle Everydayinstant milk?A: PIA, MC-DONALDS
and PEARL CONTINENTAL Pakistan.
PRICE:
Q: How do you set prices for your products?A: We set prices of our own because
Nestle is the trendsetter in the market.Q: What is the profit margin of the product?A: The
profit margin is usually high because of the highquality of the product.Q: Does the prices
fluctuate or they remain stable?A: As the product is a diary product so its prices
generallytrend to fluctuate.Q: On what scale prices are fixed?A: The prices are fixed on
a reasonable scale so thatmajority 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 forthe he organizational consumers like Nestle has givendiscounts to
PIA.Q: Do you have any price refund policy?
A: No, we never return the paid money back. If the claim isvalid 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 keptsecret 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
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 bigand small cities.
Q:
Does the product is sold directly to the consumers or viadistributors?
A:
The product is not sold directly t the customers becauseof the extensive consumer
groups.Q: What are the insurance policies of companies?A: Insurance policies are
maintained but they are highlyconfidential.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.

10. Q: What are the transportation modes of the product?A: Usually mode of transportation
is road.Q: Did customers or suppliers ever complaint aboutshortage of Instant Milk in
market?A: No we have a well defined system to ensure thatproducts at right time are at
right place.Q: Does the company uses any E-distribution for theproduct?A: Due to the
distribution problems that a number of onlinefirms face Nestle until now has no plans for
E – distribution.
STRATEGIES FORCOMPETIOTIVEADVANTAGES:
Every product on the shelf, every service and everycustomer contact helps to shape this
image. A Nestlé brandname on a product is a promise to the customer that it issafe to
consume, that it complies with all regulations andthat it meets high standards of quality.
Customers expect usto keep this promise every time. Under no circumstances willwe
compromise on the safety of a product and every effort must be made to avoid hazards
to health.Likewise, compliance with all relevant laws and regulations isa must and is not
negotiable. People, equipment andinstruments are made available to ensure safety
andconformity of Nestlé products at all times. The effort is worthit. Companies with huge
quality standards make fewermistakes, waste less time and money and are
moreproductive. They also make higher profits. Quality is ourmost successful product. It
is the key to our success, todayand 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
customersexpect excellent service, correct information and timelydelivery. Consumers
consider taste, appearance and pricewhen they make their choice. Our task is to
understand whatcustomers want and respond to their expectations rapidlyand
effectively. We serve various groups of consumers andthere is demand for products at
different levels of perceivedquality and price. All customers, however, expect value
fortheir money – good quality at a reasonable price. Whenoffering quality to customers
we also mean environmentalquality. Nestlé shares society’s concern for the
environmentand is committed to environmentally sound businesspractices throughout
the world.Customers are central to our business and we must alwaysrespect their
needs and preferences.
Quality is a competitiveadvantage
We live in a competitive world and must never forget thatour customers have a choice.
If they are not reverent of quality and reduction cost. Success can never be taken
forgranted. We must watch and learn from our competitors. If they do something better,
we must improve our ownperformance. We can achieve competitive advantagethrough
Quality.
Quality is a joint effort
Operating companies are fully responsible for maintainingagreed quality standards. Not
only Production units, but alsoMarketing, Purchasing, Distribution and Sales have a
vitalrole to play in providing quality to customers. This implies athorough knowledge of
the products and services we offer.Quality units at different levels of the organization

11. providespecific support, promote quality awareness, assumeguardianship and audit the
system. Quality departmentsmonitor operations against agreed standards and
mustintervene in case of non-conformity. Quality policy andprinciples, the mandatory
standards and the recommendedtools for implementation are laid down in the Nestlé
QualitySystem that is applicable throughout the group. Furtherdirections are given
through instructions, norms andguidelines, often specific to a product. Our
businessproducts, such as raw material producers, packagingsuppliers, contract
manufacturers and distributors areexpected to share our concern for Quality. They too
must setup an adequate quality system, so as to meet ourrequirements
consistently.Every function and department in the company as well asour business
partners must share the quality efforts.
Quality is made by people
Adequate equipment, procedures and systems are needed tom a k e Q u a l i t y ; s o a r e
involved and dedicated people.
Eacha n d e v e r y N e s t l é e m p l o y e e m u s t d o h i s b e s t t o p r o v i
d e quality products and services. Training and teamwork
arec r u c i a l t o t h e s u c c e s s f u l i m p l e m e n t a t i o n o f h i g h q u a l i t y s t a
ndards. Continuous training ensures that everyoneu
nderstands his tasks and has the necessary skills to carrythem out.
Teamwork allows us to achieve results that
areg r e a t e r t h a n t h e s u m o f i n d i v i d u a l e f f o r t s . W e m o t i v a t
e employees by demonstrating management commitment to Quality, by setting
challenging
goalsa n d b y g i v i n g t h e m r e s p o n s i b i l i t y a n d r e c o g n i t i o n . I t
i s through employee involvement that goals and targets can beachieved 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 theresponsibility of senior managers to
communicate the qualityobjectives and to provide the resources necessary for
theirimplementation. It is then up to all employees to makeQuality happen throughout
the company. Progress isfollowed by listening to our customers and by measuring
ourperformance. Shortcomings and mistakes must be analyzedand corrected. Problems
must be anticipated and preventedbefore they occur. We also must identify and take
advantageof opportunities. To stand still is to fall behind. So we muststrive for
continuous improvement in every area. It is through many small improvements as well
as through majorbreakthroughs that we will achieve excellence.
MARKETSEGMENTATION:
To occupy a clear distinctive & desirable place related tocompeting mineral water in the
minds of the targetcustomers Nestle Pure Life segments its market on twobases:
•
Geographic segmentation
•

12. Demographic segmentation
GEOGRAPHICALSEGMENTATION:
The Company segments its market geographically ondivisional basis. They divide each
division in different zones
and every distributor is restricted to sale its products only inhis 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 thanwe will find that our product
is for every one. People fromany area, any culture, any age, any sex, any belief and
anyincome will drink water. It is not any luxury item which isused by a specific people.
Targeting:
A specific demographic target market was not chosen forNestle Pure Life; instead the
goal was to develop a productto be used by consumers of all ages - from infants to
seniors.It was intended as a family product especially for familiesliving in large, polluted
urban agglomerations thatexperience increasing difficulties finding safe, healthydrinking
water. In fact, Nestle Pure Life's 0.5 L bottle istargeting to be also an alternative to soft
drinks. Basicallythe target market of nestle water is those areas where theconsumers
having more awareness about pure life. As thepeople in villages having less information
about Nestle Pure Life. So targeting marketingdepends on the awareness of the
consumers.
SELETING TARGET MARKETTarget Market StrategiesUndifferentiated
mass market.Differentiated Segmented Marketing.Concentrate
Marketing.Micro marketing or Individual Marketing.
PRODUCT LIFECYCLE:
If we look nestle pure life water in product life cycle than iteasy to judge that it is at
introduction stage. Because Nestleis the market pioneer and at this stage its profit is
negativeor low due to low sale and high distribution and promotionexpenses. Other
major reason to be at introduction stage isunawareness in rural areas. The people are
not aware to thepure life water that’s why their sale is low. They can bringchange in
product life cycle by effective promotion, byformulating new price strategies etc
MARKETINGENVIRONMENT
Internal environment
Micro environment
Macro environment

13. 
Internal Environment:
In Nestle Internal environment ensures
•
Employees are on side with the goals of anorganization.
•
They have direct impact on product quality,dependability and overall productivity.
•
They are internal market, which impact everydepartment within an organization; a
satisfied internalmarket will be better able to satisfy external market. Nestle under the
supervision of top management runs thedepartments of finance, operations, accounting,
sales andmarketing, research and development to achieve the goalsof organization.

Micro Environment:
In Nestle microenvironment includes:
a)Suppliers:

14. Suppliers provide the resources like labor and materialresources to produce goods and
services. They add tocustomer overall value delivery system.Labor supplies include
handling of
•
Quantity of labor
•
Quality of labor
•
Labor strikes
•
Labor relationsMaterial supplies deals with the
•
Quantity of material
•
Quality of material
•
Price of material
•
Stability of material inputs
•
Delivery delays
Nestle efficiently handles the quality, quantity, price andstability of both material and
labor supplies. Managementmaps out the strategies for labor strikes, supply
shortagesand delays to avoid increasing the cost of production,which can badly affect
sales in short run and customersatisfaction 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 tostore and ship goods to reach their
destination.
•
Marketing service agencies including marketingresearch firms, advertising agencies and
media firmsare also hired to target and promote product to rightmarket.
•
Financial intermediaries like banks, insurancecompanies helps to finance transactions
and insureagainst risks associated with buying and selling of goods.Nestle works in
coordination with marketingintermediaries to make its product Pure Life Wateravailable
and visible to its valuable customers.
c)Customers:
Nestle deals with the reseller customers who buy theproduct Pure Life to resell at a
reasonable profit.

15. 
Macro Environment:
Macro environment include political, cultural, economicalfactors but as for as Nestle
Pure Life Water is concern noneof above factors affect on it. Because it is not at luxury
itemthey are selling necessities of life which can never beaffected.
BRANDS
I.DAIRY PRODUCTS

NESTLE MILKPAK UHT MILK
Launched in 1981, it has become synonymous with
qualitym i l k . B a c k e d b y a v e r y s t r o n g b r a n d n a m e , a g g r e s s
i v e marketing and distribution plans, consistent quality andava
i l a b i l i t y t h r o u g h o u t t h e y e a r , M I L K P A K U H T h a s b e e n extremely
successful. In September 1999, MILKPAK UHT
milkw a s l a u n c h e d a s N E S T L E M I L K P A K U H T M I L K .
N E S T L E MILKPAK UHT MILK is available in three pack sizes of 1000, 500
and 250 ml.

MILKPAK BUTTER
A continuous butter-making machine was commissioned atK a b i r w a l a
f a c t o r y i n t h e y e a r 2 0 0 0 t o p r o d u c e h i g h q u a l i t y cultured butter. This
new butter was an improvement uponthe earlier product and carries Nestle
branding that endorsesits superior quality. It has an excellent taste and aroma
and
is easy to spread.The new NESTLE BUTTER is available in twopack sizes of 200g and
100g in new attractive packaging.

NESTLE PLAIN YOGURT
Launched in November 2000 in Lahore, NESTLE Plain
Yogurti s t h e l a t e s t a d d i t i o n t o N e s t l e M i l k p a k ' s d a i r y f a m i l y . I t s
unique 'Stay Fresh seal and a 21 -day shelf life gives
theb r a n d a f o rm i d a b l e c o m p e t i t i v e a d v a n t a g e . T h e b r a n d
provides valuable access to future product launches in
thec h i l l e d p r o d u c t c a t e g o r y t h r o u g h a d e d i c a t e d c h i l
l e d distribution. In a very short time the brand has gained
a s u b s t a n t i a l m a r k e t s h a r e . T h r o u g h f u t u r e e x p a n s i o n i n t o market
s other than Lahore and a strong marketing and saless u p p o r t , N E S T L E P l a i n
Y o g u r t w i l l u n d o u b t e d l y g r o w i n t o a strong brand and, in time, will
achieve the status of marketleader.

MILKPAK UHT CREAM

16. MILKPAK UHT CREAM was introduced under the MILKPAK b r a
nd in 1986. It is available in 200-
m l p a c k s i z e i n a n attractive slim pack. The consumer trust in the brand
namea n d t h e p r o d u c t h a s e n s u r e d i t s d o m i n a n t s h a r e i n t
he
c r e a m c a t e g o r y . M I L K P A K C R E A M w a s a l s o i n t r o d u c e d i n a n economical
1000ml pack size in the year 2000. This SKU hasbeen developed for Food
Services to cover institutions usinglarge 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, inline with the current market trend,
MILKPAK DESI GHEE
wasr e l a u n c h e d i n 1 K g t i n p a c k a g i n g i n t h e y e a r 2 0 0 0 .
T h e p r o d u c t w a s a l s o i n t r o d u c e d i n 1 6 k g t i n p a c k i n g t o t a p t h e huge
potential of loose desi ghee.

NESTLE EVERYDAY
To target the massive potential offered by the tea -whitenings e g m e n t ,
N E S T L E E V E R Y D A Y t e a w h i t e n e r w a s l a u n c h e d i n 1992. Supported
by aggressive marketing using multi-
mediaa c t i v i t i e s , f o c u s e d d i s t r i b u t i o n w i t h s a m p l i n g d r i v e s a n d e
xcellent consumer acceptance, the brand has shown stronggrowth and holds good
promise for the future.

NESTLE NIDO
NESTLE NIDO has been present in the Pakistan market sinceearly 70's and
on account of the consumer confidence in its
quality it has become a pillar of Nestlé’s success. Local
production commenced in1990 and within a short time thebrand
a c h i e v e d m a r k e t l e a d e r s t a t u s i n t h e f u l l c r e a m m i l k powder category.
Made from very superior quality milk andw i t h t h e a d d i t i o n o f v i t a m i n s A
and D, NESTLE NIDO is thebest quality milk for growing children.
The brand has nowl a u n c h e d a l o w u n i t p r i c e d S K U t h a t
o f f e r s h a l f a l i t e r o f quality milk at a very affordable price. NESTLE
NIDO is wellon its way to becoming a mega brand.
II. CHOCOLATE DRINKS

MILO POWDER
T o p r o v i d e c o n v e n i e n c e t o c o n s u m e r s , N E S T L E M I L O w a s laun
ched in its new 130gm. SKU in an attractive airtight jar i n F e b r u a r y 2 0 0 0 .
T h i s w a s d o n e w i t h a v i e w t o b r i n g o u r packaging in line with the
industry practice of making
milkf o r t i f i e r s a n d m o d i f i e r s a v a i l a b l e i n j a r s a n d t i n s a n d

17. t o reverse the trend of consumer preference for imported MILO o r s i m i l a r
p r o d u c t s o v e r l o c a l M I L O . C o n s u m e r r e s p o n s e t o the new initiative has
been very positive.

MILO RTD
To cater for consumer convenience, MILO RTD (ready tod r i n
k ) w a s l a u n c h e d i n 1 9 9 5 a n d i s n o w a v a i l a b l e i n a n attrac
tive 180ml slim pack. Popular with all age groups,e s p e c i a l
l y a m o n g t h e g r o w i n g s e g m e n t o f n u t r i t i o n con
s c i o u s c o n s u m e r s , i t i s a n e x c e l l e n t s u b s t i t u t e f o r c o l d drinks.
III. COFFEE

NESCAFE CLASSIC
N E S C A F E , N e s t l é ’ s i n t e r n a t i o n a l f l a g s h i p b r a n d , i s l o c a l l y repa
cked and marketed in 2gm. and25gm. Sachet, 75gm.bottles and
5 0 0 g m . S o f t p a c k s . T h e b r a n d e n j o y s a s p e c i a l position in the country's
coffee consuming segment.

NESCAFE FROTHE
NESCAFE Frothe (Original), a premix in 18gm. single servesachet,
was launched in January 2000. The product profile
was developed through consumer research and w
a s accordingly offered as a sweet, creamy and foamy
coffee.Encouraged by extremely good consumer response to
t h i s c a p p u c c i n o s t y l e c o f f e e , F r e n c h V a n i l l a a n d M o c h a f l a v o r s were
introduced in November to offer a wider choice and
toe n h a n c e t h e y o u n g a n d f a s h i o n a b l e i m a g e o f t h i s m i x e s categor
y.

NESCAFE FRAPPE
T o p r o m o t e s u m m e r c o n s u m p t i o n o f c o f f e e a n d t o c h a n g e consumer
perception that coffee is only a winter
beverage,N E S C A F E F r a p p e w a s l a u n c h e d i n J u n e 3 0 0 0 . T h i
s iced,creamy, read y-to -
d r i n k c o f f e e i n 1 8 0 m l s l i m p a c k w a s positioned to appeal
t o t h e y o u t h a n d g a i n a s t r o n g s h a r e from other summer beverages. The
launch was extensivelysupported by promotional programs in major towns
and theproduct is fast gaining in popularity.
IV. FRUIT DRINKS

FROST
A well-known brand, FROST was introduced in 1986 and hasthe largest
share of the countrywide market. Positioned as a

18. cold drink and alternate to cola drinks, its strength lies in theconvenience attached to its
usage.

NESTLE JUICES
Encouraged by the consumer response to NESTLE ORANGE J U I C E
t h a t w a s l a u n c h e d i n 1 9 9 6 , t h e c a t e g o r y o f N E S T L E juices was
expanded with the introduction of Mango -
Orangea n d M a n g o f l a v o r s i n t h e y e a r 2 0 0 0 . T h i s h
a s f u r t h e r strengthened the position of Ne stle as leader in the
v a l u e added/premium drinks market. Consumer to gain further.
V. DIETETIC & INFANT PRODUCTS

LACTOGEN
LACTOGEN 1 and LACTOGEN 2 are infant and follow-
u p f o r m u l a e l a u n c h e d i n 1 9 9 1 a n d a r e a v a i l a b l e i n t w o s i z e s . The
brands provide both affordability and quality.

CERELAC
Launched in 1989, CERELAC is the dominant player in
t h e g r o w i n g i n f a n t c e r e a l m a r k e t . A v a i l a b l e i n 5 f l a v o r s , t h e bran
d provides balanced nutrition to infants from 4 months onwards

NESTLE RICE
An affordable starter weaning cereal, NESTLE RICE offers theflexibility of
preparation with a variety of meals. Gluten free,t h e b r a n d i s
a v a i l a b l e i n 1 2 5 g m . p a c k s a n d i s s p e c i a l l y 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
4y e a r o l d s . I t c o n t a i n s j u s t t h e r i g h t b a l a n c e o f p r o t e i n s
, calcium, iron, vitamins and essential minerals in order to
c a t e r t o t h e n u t r i t i o n a l n e e d s o f a g r o w i n g c h i l d d u r i n g t h i s 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
werel a u n c h e d w i t h l o c a l p r o d u c t i o n i n 1 9 9 2 a n d i n d o i n g
s o Nestle pioneered the category of instant noodles in Pakistan.MAGGI 2-MINUTE
NOODLES have special appeal for

19. children,a r e f u n t o e a t a n d o f f e r a r a n g e o f i n t e r e s t i n g
f l a v o r s , namely: Chicken, Masala, Chilly and Chatkhara.
Affordablypriced and backed by focused marketing activities,
M A G G I 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 MAGGIKhatti Meethi - the first Imli sauce in Pakistan.
The
innovativet a s t e o f K h a t t i M e e t h i t o g e t h e r w i t h t h e m o r e t r a d i t i o n
a l tastes of Ketchup and Mirch Maza, were received well by theconsumers.
O t h e r B r a n d s O f
Nestle:
Quality is an essential ingredient in all the Nestlé brands andalso Nestlé brands
maintain nutritional balance in a fast
pacew o r l d , t h a t i s w h y p e o p l e a r o u n d t h e g l o b e c h o o s e . T
h e 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)

Pet care (Pro Plan, Purine, ONE, Fancy feast, Dog Chow, Cat Chow, Felix, Alpo)

Pharmaceuticals (Ophthalmic drugs, lens-care solutions& optical surgical Instruments)
SWOT Analysis Of Nestle:

20. STRENGTHS ----------------- TO BUILDONWEAKNESESS -----------------
TO COVEONOPPORTUNITIES---------------TOCAPTURETHREATS -------
---------------- TODEFEND ON
STRENGHTS:
The greatest strength of nestle is that it includes a culturethat is team focused and an
open door policy. Nestle focuson collectivism and performance orientation attitude
whichencourages employees to work harder. Another thing is highlevel of market share
and that people all over the world trustand recognizes Nestle as a big brand name.
Strength is thatpeople trust on Nestle. It looks at achieving higher volumesby renovating
existing products and innovating newproducts. Strength is that they are low cost
operators whichallow them to not only beat competition but also edgingahead operating
excellence, innovation, renovation, productavailability and communication are major
strengths.IT is an important aspect that people all around the worldare becoming more
conscious about health, that’s why theyprefer Nestle.
•
The only brand in the area maintaining its
qualitya n d t a s t e a n d h a v i n g t h e s a m e i m p a c t o n i t s custo
mer
•
Economical
•
Pure Drinking Water in market (Free of chemicals)
•
Strong Brand Name
WEAKNESESS:
One major weakness of Nestle is that it is entering intomarkets that are already mature
and can give a toughcompetition to new entrants. Nestle Plain Yogurt has provedto be a
Nestle weakness because it has been unable to makeits market place in USA. But
Nestle by analyzing thesensitive areas can overcome its weaknesses.
•
Communication is weak
•
Lack of Awareness
OPPORTUNITIES:
Nestle in Pakistan has a great opportunity for expanding itsmarkets because in Pakistan
there is a large ready market of food and beverages due to trends of eating and
theincreasing .I t also has opportunities largely in China andIndia as well. Through
proper marketing research Nestle cancash on to these opportunities.
•
C o n c e n t r a t i n g o n t h e s e a r e a s c a n increase sales
•
Increase in product line.
Threats:

21. Nestle is facing the threats by worldwide community due toits violation of international
marketing standards. Manyconferences and campaigns have been held against
Nestlein this regard which can damage the name and trust of itscustomers. Another
threat is due to the increasing popularityof its competitor OLPERS in local and
international markets.
•
Segments are being shared by competitors
•
U n c e r t a i n c o n d i t i o n s w i l l e f f e c t t h e s a l e s (diseases of
animals)
•
Under cutting by competitors.
RECOMMENDATIONS:
T h e r e a r e f e w r e c o m m e n d a t i o n s t h a t a r e r e c o m m e n d e d i f the project is
to be conducted again in future.

Employees should be trained according to the changingstandards of the
organization.

Company should conduct survey from time to time toaccording to
w h i c h c h a n g e s c a n b e i n t r o d u c e d i n t h e organization to stay updated in the
market.

They should introduce creativity into the work, so that the employees can do
their work active mindedly.

E m p l o y e e s s h o u l d b e g i v e n c o m p e n s a t i o n i n o r d e r t o keep them loyal.

Employees should be more involved in decision makingto become more
differentiated.

Company should provide incentives to shop keepers.
FUTURE OF NESTLE:
Nestle is today the world’s largest food and beveragecompany with its mission to
provide healthier lifestyle. It haslaunched many products in Pakistan the majority of
whichare popular and among the market leaders. Nestle isinstalling new plants and
importing latest technologies toimprove. Moreover, innovation is one of its
greateststrengths so it has a bright future in Pakistan.
REFERENCES:
W e h a v e c o l l e c t e d a l l t h e d a t a f r o m t h e following sources
www.nestle.com

By communicating with the employees