Escolar Documentos
Profissional Documentos
Cultura Documentos
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 Hussain A wan for
giving us & helping us in this project.
STORY OF NESTLE
DYNAMIC EXPANSION
BRANDS OF NESTLE
BOARD OF DIRECTORS
AUDIT COMMITTEE
NESTLES OBJECTIVES
MARKET POSITION
NESTLE EVERYDAY
MARKETING MIX
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 a place among the top 25 companies of the Karachi
stock exchange.
In the line with Nestls global philosophy, Nestle Pakistan is proud of its
commitment to excellence in product and safety and quality and providing
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
2. America
3. Asia
4. Europe
5. Oceania
HISTORY OF NESTLE:
1866 -1905
In the 1860s Henri Nestl, 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 milk or any of the usual substitutes. People
quickly recognized the value of the new product, after Nestl's new formula
saved the child's life, and soon, Farine Lacte Henri Nestl was being sold in
much of Europe.
1905-1918
1918 -1938
After the war Government contracts dried up and consumers switched back
to fresh milk. However, Nestl's management responded quickly,
streamlining operations and reducing debt. The 1920s saw Nestl's first
expansion into new products, with chocolate the Company's second most
important activity
Nestl 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. Nestl's production and sales rose in the
wartime economy.
1944 -1975
The end of World War II was the beginning of a dynamic phase for Nestl.
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'Oral in 1974.
1975 -1981
1981 -1996
1996+
The first half of the 1990s proved to be favorable for Nestl: 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, Nestl merged its
U.S. ice cream business into Dreyer's, and in August, a USD 2.6bn
acquisition was announced of Chef America, Inc.
Nestls Vision:
Good Food, Good Life
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 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 consumers life.
In addition, the mission statement declares that Nestle has the ability
to anticipate consumers needs and create solutions. Nestle has
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
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:
I. DAIRY PRODUCTS
NESTLE MILKPAK UHT MILK
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 is easy to spread.The new NESTLE BUTTER is available in two
pack sizes of 200g and 100g in new attractive packaging.
NESTLE NIDO
NESTLE NIDO has been present in the Pakistan market since early 70's and
on account of the consumer confidence in its quality it has become a pillar of
Nestls 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.
MILO POWDER
MILO RTD
III. COFFEE
NESCAFE CLASSIC
NESCAFE, Nestls international flagship brand, is locally repacked and
marketed in 2gm. and25gm. Sachet, 75gm. bottles and 500gm. Soft packs.
NESCAFE FROTHE
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.
NESTLE JUICES
LACTOGEN
CERELAC
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
NESLAC
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.
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3- PLACING:
Placing stands for company's activities that make the product available to the
target consumer. Nestl' distribution is using the direct distribution channel
to supply confectionary products weekly to the retailers.
4- PROMOTION:
Producing a quality product, pricing it attractively and making it available
for the target consumer is not the only problem companies need to solve.
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.
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: 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 companys secret that will not be disclosed. But we
received an overwhelming acceptance and liking of the product.
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.
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
cafs for tea purposes.
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.
PROMOTION:
Q: What are the channels adopted for promotion?
A: TV, News papers, magazines and doctors.
PLACEMENT:
Q: Where are the outlets of product located?
A: These are located all over in Pakistan regardless of big and small cities.
A: Nestle has its own warehouses for the storage of products as well as it
has also hired some warehouses.
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 through many small
improvements as well as through major breakthroughs that we will achieve
excellence.
Geographic segmentation
Demographic segmentation
GEOGRAPHICAL
SEGMENTATION:
The Company segments its market geographically on divisional basis. They
divide each division in different zones 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:
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
Concentrate Marketing.
Pure Life
MARKETING
ENVIRONMENT:
Internal environment
Micro environment
Macro environment
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
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.
c) Customers:
Nestle deals with the reseller customers who buy the product Pure Life to
resell at a reasonable profit.
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
Exchanges: KAR
Country: PAKISTAN
Employees: 2174
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
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.
RECOMMENDATIONS:
There are few recommendations that are recommended if the project is to be
conducted again in future.
the organization.
market.
more differentiated.
FUTURE OF NESTLE:
Nestle is today the worlds 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.
www.nestle.com
By communicating with the employees