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MILKPAKAK

Milk Pack was the first tetra pack introduced in Pakistan in 1981 with green and white packaging that is associated with Pakistan s flag. It was a brand that promised natural and healthy milk. It further gained strength when it was backed by Nestle Switzerland a well established and reputable international brand that bought in to it and expanded its scope and activities. It has recently highlighted the use of iron that has been added to the milk and communicated this in its advertising and packaging. The tag line also reads as making a stronger household .

Milk Collection The core raw material of Nestle MilkPak is milk. Over the last Twenty Eight years, the company's prime concern has been to improve the quality and volume of milk for UHT processing and for other milk based products. the company successfully established its own collection system and expanded its operations over a very large milk shed area in Punjab. Owing to this tremendous growth in the volume of an extremely high quality raw milk, Nestle MilkPak now produces a superior quality and better tasting UHT milk, with longer shelf life.

Today, Nestle MilkPak can boast of the largest milk collection network in the country, unmatched in size, productivity and efficiency. Milk is collected through a vast network of village milk centers (VMCs), subcenters and centers. At these centers, chillers have been installed to lower milk temperature to 4C for preventing bacteria development during long hauls to the factories, which are undertaken by a large fleet of specially insulated tankers.

Nestle gathers High Quality milk through a comprehensive strategy, intensive education program for the farmers and the milk collection staff, up gradation of milk loading and transportation system, increase in the chilling capacity and above all, adherence to the highest acceptance standards at all milk collection points, including the factories.

Present image in the mind of customers is given below: COMPANY QUALITY OF PRODUCT Nestl Haleeb Halla Better Normal Good Excellent Normal Normal Excellent Normal Good Good Normal Average SERVICES LOCTION EXTRA FACILITY

In last two decades Nestl Pakistan Ltd. has re-positioned itself by improving the elevations by its products and allocating better customer services; because of it has the best position in the mind of the customers among three companies. It also proves from the increasing market size of Nestl.

Needs Based Segmentation


Milk Pack has made different sizes of tetra packs which can match the needs of buyers, ranging from 0.25 liters to 1.5 liter. Buyers can buy according to there need between these quantities.

SWOT analysis A SWOT Analysis is conducted by the company so that it is able to position itself to take advantage of particular opportunities in the environment and to avoid or minimize environmental threats. In doing so, the organization attempts to emphasize its strengths and moderate the impact of weaknesses. The analysis is also useful for uncovering strengths that have not been fully utilized and in identifying weaknesses that can be corrected. Matching information about the environment with the organization's capabilities enables management to formulate realistic strategies for attaining its goals. A SWOT Analysis of Nestl MilkPak is as follows:

Internal analysis

Strengths
Socially Responsible Company. NML s products enjoy strong brand image and market pull. Innovative and constantly growing product line. NML launched 17 new products, including variants of existing products in recent past. Sales force is the major resource strength in terms of physical resources of the company. Marketing strategies established by the company are innovative and lure customers. Financial, marketing and sales strategies are formulated by gauging the customer demands. Periodic research carried out to judge market trends. It is a large scale organization, with abundant funds and has the capability of acquiring weaker firms by throwing them out of competition. The recent acquisition of the water brands Aqua and Fontalia provide an example for this strength of the company. Multinational. Growing Sales and profits. Major shareholder in the food industry of Pakistan. Aggressive Marketing. Efficient Distribution networks through out the country. Quality Products. Environment Friendly. Skilled labor. Educated staff. Large number of offerings. Pre purchase virtual display. Arrangement of events. Good background of the company. Easy to approach outlets. Physical evidence Strong Brand image Quality product

Solid Financial position Strong supply chain network Qualified work force Commitment to High Quality Products Focus on research and development Estimations of UHT Milk Production and Consumption up to 2008 09 Year Annual Production (million liters) Annual Consumption (million liters) 2008-09 => 648.43 353.71 2009-10 => 753.89 372.05

Weaknesses
Selective investment due to uncertain economic and political conditions. Feasibility of new products needs to be analyzed, e.g. Nestea was launched some years back but it failed because no customer demand for it existed. Relatively a new company in comparison to its rivals e.g. Lever Brothers. Low levels of inventory maintained can be dangerous. No credit sales. Low sales margins due to highly value added products. They cannot launch many of its expensive international brands due to the lower income groups. Physically impossibility to have target market. There is weak marketing of MilkPak as there is no advertisement of MilkPak on official website. Lack of awareness among the target market. It Dependency on others (govt. & sponsors) for the arrangement of events. The target market of Nestle MilkPak is upper middle and high class because lower middle and poor class cannot afford to buy UHT milk due to its premium price. It is a main weakness of MilkPak that there are different companies of milk but the name of

nestle MilkPak is always stand in the last because of low advertising and marketing.

External analysis
Opportunities Pakistan is the seventh largest producer of milk in the world with annual output of over 22 billion liters. There are substantial growth opportunities considering the average yield of Pakistani animals at only 1,100 liters/annum as compared to 6,000 liters/annum for animals in Europe and USA. There are nearly 20 million milk producing animals in the country, mostly in Punjab (80%). The overall milk market in Pakistan is 20 billion liters, out of which processed milk contributes only 3 million liters. Nestl MilkPak along with other processed milk businesses contribute only 2% to this large market. Nestl MilkPak has expanded its product range by entering the cold dairy market recently by launching Nestl plain yogurt and now fruit yogurt is also added to it. To expand the cold dairy products range, Nestl fruit yogurt is the latest addition to this group. The cold dairy market offers many opportunities for the company which can capitalize these products by banking on its superior quality milk. The coffee brand also offers many opportunities for the company to expand by tuning the taste of the masses towards coffee. Credit policy can be adopted to increase sales.

Threats
Price fluctuations due to rupee devaluation as raw material are imported. The uncertainty of economic conditions poses a great threat as the major funds invested in the country come from outside Pakistan. The present economic crisis in the world, led to the withdrawal of foreign management from the company and the investment has come to a halt. Competition with Nestl s owns smuggled brands.

Effect of Seasonality s upon sales. Imported raw material, in some of the company s products. Major player may enter target market Legal and ethical issues. Market segment growth could attract new entrants. Economic slow down can reduce demand. Two main competitors Haleeb and Olpers are main threat for MilkPak especially the Olpers is growing very fast. Inflation is getting higher and higher so the purchasing power of the people is decreasing day by day. There is no entry barrier for new entrants as the Olpers has come in the market. Taste of consumer has already developed which is hard to change. Current market situation Today, Nestl MilkPak produces in over 81 countries and achieves 98% of its turnover outside Europe. Nestl MilkPak is the world s largest milk company, which does 98% of its business. It has an annual turnover of 70 billion Swiss francs, 522 new factories in 81 countries, 200 operating companies, 1 basic research outer and 20 technological development groups, has more than 231,000 employees and more than 8000 products around the globe. There are three companies co-ordinate the activities of some 200 operating companies around the globe. Their functions and details are as follows: The first, Nestl MilkPak, holds the financial shares in the allied companies. It also checks the profitability of these companies and to ensure the profitability of the group as whole. The second, Nestl MilkPak, has two areas of activities that are as follows: Research and technological development, Technical assistance Beside this, it provides know-how in engineering, marketing, production, organization, management and personnel training on a continuous basis. The third company is Nestl World Trade Corporation that oversees the import and export of merchandise worldwide.

SUGGESTIONS
Nestle Milk Pack should concentrate on all age groups (by showing its benefits) instead of concentrating just on child growth. They should try to create strong brand loyalty among customers. They should keep in mind the competing environment while designing their strategies. They should concentrate on customer retention. They should improve their customer services. They should try to exploit the loopholes of their competitor s products. Should try to cater the mind of the customer by creating some attractive jingle like Haleeb: Chai banaye khoob haleeb ..