In the Name of Allah the Most Beneficent, the

Most Merciful.

. MISSION STATEMENT

“AT NEWSTLE, WE BELIEVE THAT RESEARCH CAN HELP US MAKE BETTER FOOD SO THAT
PEOPLE LIVE A BETTER LIFE.”

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.

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 tge main flag bearers of the
company’s image.
Dynamic expansion

Nestle Pakistan has being at the forefront of development of dairy sector in Pakistan as major industrial stake
holder for a while .internal efforts and some initiatives with government have being going on since long in
order to maximize the development of the sector .still, a need for sector wise coordination and combine efforts
was there to ensure utilization of all available resources to move forward in the direction.

Through the agric-services department nestle has being involved with various infrastructure and support related
initiatives such as development of model farms, setup of milk chiller and import of Australian cow to boost
milk production .nestle is also working towards setting up mega dairy farms to exemplify best farm practices
and ways to boost mike production
.
Brands of Nestle
 Kit Kat
 Nescafe
 Nestle Milo
 Maggi
 Nestle water
 Nido
 Nestle milk pack
 Nestle cerelac
 Friskies
 Nestle yogurt
 Nestle pudina raita
 Nestle zeera raita
 Nestle flavors cream
 Nestle rice
 Nestle frost
 Polo
 Breakfast cereals
 Lactogen
 Milkpack desi ghee
 Milkpack uht cream

Objectives of nestle

Marketing objectives are compatible with the overall corporate objectives of nestle. Company’s objective is
to be the world’s largest and best branded food manufacturer while insuring that nestle name is synonymous
with the products of the highest quality.

Marketing and sales

During the year under review the company achieved sustainable profitable growth by capitalizing on the
opportunity presented by a positive business environment. This became possible through successful
marketing and sales strategies and focus on key initiatives.

Innovation and renovation remained the key to development of new products. In 2006 several new products
were introduced that included fruit vitals juice, NIDO 3+, podina raita, honey and banana flavored cream
for Afghanistan and new packaging for several products.

During the period under review we continued with our strategy to increase distribution penetration and
develop additional trade channels. Activities such as town storming, special distribution drives and
distributor training were extensively undertaken in second strata towns. Area-based territory management
continued to be strengthened and wider availability and visibility of products provided a competitive edge.

The key initiative of category sales development continued to effectively strengthen strategy planning with
respect to channels, customers and shoppers.

Nestle everyday

To target the large potential offered by the tea-creaming segment, nestle everyday tea-creamer was launched
in 1992. supported by integrated marketing, focused distribution with sampling drives and excellent
consumer acceptance, the brand has shown strong growth and holds great promise for the future. The brand
is available in a variety of pack sizes ranging from 40 to 1000 gm.
  Marketing mix of Nestle Instant Milk

PRODUCT

• Nestle first launched its powder milk in the market in 2003 and then came the liquid powder.

• Nestle has introduced the milk powder which outshined others because of its great taste,
refrigeration, ready to drink, less volume, more stable shelf life.
• The entire production of the Nestle Everyday is carried out in Pakistan at Sheikhupura and
Kabianwala.

• 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.

• The technology is imported and is latest.

• The factory mil powders spray drying capacity was doubled in 1999 with commissioning of
new evaporator.

• The actual target is a company’s secret that will not be disclosed. But we received an
overwhelming acceptance and liking of the product.
 • 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.

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

• Nestle is designed to be used in general but it is popular mostly in offices and cafés for tea
purposes.

• The current position of the product in the market is matchless in quality and has no match. It
has a sufficient name and place in the market.

• 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.

• 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 of milk.

• The main competitors of Nestle is Habib milk, olpers, Haleeb, and other short size
companies
• Industrial consumers of Nestle Everyday instant milk: PIA, MC-DONALDS and PEARL
CONTINENTAL Pakistan.

PRICE

• Price of product
Nestle sets prices of their products according to the market demand as low as possible because
nestle is the trend setter in the market.

• Profit margin of the product

The profit margin is usually high because of the high quality of the product.
 • Does the price fluctuate or they remain stable?
As the product is a diary product so its prices generally trend to fluctuate.

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

• Effect of competitors on prices

Nestle has no effect on prices by their competitors because they set their own.
• Price discounts
Not to the final consumers but it can be considered for the he organizational consumers like Nestle
has given discounts to PIA.

• Price refund policy

Nestle never returns the paid money back. If the claim is valid then they can replace the products.

PROMOTION

• Channels adopted for promotion

Nestle has adopted the channels for promotion through TV, News papers, magazines Doctors and
hoardings etc.

• Advertisement budget of the company

Nestle has preplanned to start the financial year but it is kept secret b the company.

• Sponsors of the company

Nestle does not have any sponsors.

• Share of promotion
Share of promotion in over all projects varies every year. Usually it is 40% of the product.

• Nature of marketing
The product is marketed aggressively in the market.
 • Online promotion methods
Nestle does not have yet adopted online promotion methods in Pakistan but in future it may be
possible.

PLACEMENT

• Outlets of product located

Nestlé’s products are located all over in Pakistan regardless of big and small cities.

• Directly sales to the consumers or via distributors

Nestlé’s products are not sold directly to the customers because of the extensive consumer groups. It
is the reason they use the sale the products through distributors for easiness of company.

• Insurance policies of companies

Nestlé’s insurance policies are maintained but they are highly confidential.

• Warehousing facilitation of company

Nestle has its own warehouses for the storage of products as well as it has also hired some
warehouses.

• Transportation modes of the product

Usually Nestlé’s mode of transportation is road.

Recommendations

Nestle must state in writing that it accepts that the international code and the subsequent relevant
World Health Assembly Resolutions are minimum requirements for every country.
Nestle must state in writing that it will make required changes to bring its Baby Food Marketing
policy and practice into line with International Code and Resolutions.

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.